Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 27, 2013 | Oct. 21, 2013 | |
Entity Registrant Name | COCA COLA CO | |
Entity Central Index Key | 21344 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 27-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 4,415,922,733 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | ||||
NET OPERATING REVENUES | $12,030 | $12,340 | $35,814 | $36,562 | ||||
Cost of goods sold | 4,793 | 4,853 | 14,106 | 14,425 | ||||
GROSS PROFIT | 7,237 | 7,487 | 21,708 | 22,137 | ||||
Selling, general and administrative expenses | 4,424 | 4,630 | 12,991 | 13,308 | ||||
Other operating charges | 341 | 64 | 594 | 233 | ||||
OPERATING INCOME | 2,472 | 2,793 | 8,123 | 8,596 | ||||
Interest income | 136 | 118 | 381 | 345 | ||||
Interest expense | 90 | 102 | 314 | 302 | ||||
Equity income (loss) - net | 204 | 252 | 537 | 637 | ||||
Other income (loss) - net | 658 | 23 | 522 | 156 | ||||
INCOME BEFORE INCOME TAXES | 3,380 | 3,084 | 9,249 | 9,432 | ||||
Income taxes | 925 | 755 | 2,331 | 2,236 | ||||
CONSOLIDATED NET INCOME | 2,455 | 2,329 | 6,918 | 7,196 | ||||
Less: Net income attributable to noncontrolling interests | 8 | 18 | 44 | 43 | ||||
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $2,447 | $2,311 | $6,874 | $7,153 | ||||
BASIC NET INCOME PER SHARE (in dollars per share) | $0.55 | [1] | $0.51 | [1] | $1.55 | [1] | $1.58 | [1] |
DILUTED NET INCOME PER SHARE (in dollars per share) | $0.54 | [1] | $0.50 | [1] | $1.52 | [1] | $1.56 | [1] |
DIVIDENDS PER SHARE (in dollars per share) | $0.28 | $0.26 | $0.84 | $0.77 | ||||
AVERAGE SHARES OUTSTANDING (in shares) | 4,426 | 4,502 | 4,442 | 4,513 | ||||
Effect of dilutive securities (in shares) | 72 | 85 | 76 | 80 | ||||
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares) | 4,498 | 4,587 | 4,518 | 4,593 | ||||
[1] | Calculated based on net income attributable to shareowners of The Coca-Cola Company. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
CONSOLIDATED NET INCOME | $2,455 | $2,329 | $6,918 | $7,196 |
Other comprehensive income: | ||||
Net foreign currency translation adjustment | -466 | 285 | -1,447 | -514 |
Net gain (loss) on derivatives | -82 | -48 | 122 | 11 |
Net unrealized gain (loss) on available-for-sale securities | -92 | 182 | -66 | 348 |
Net change in pension and other benefit liabilities | 27 | 11 | 105 | 22 |
TOTAL COMPREHENSIVE INCOME | 1,842 | 2,759 | 5,632 | 7,063 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 11 | 20 | 72 | 77 |
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $1,831 | $2,739 | $5,560 | $6,986 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $11,118 | $8,442 |
Short-term investments | 6,139 | 5,017 |
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 17,257 | 13,459 |
Marketable securities | 3,202 | 3,092 |
Trade accounts receivable, less allowances of $57 and $53, respectively | 5,116 | 4,759 |
Inventories | 3,321 | 3,264 |
Prepaid expenses and other assets | 2,680 | 2,781 |
Assets held for sale | 0 | 2,973 |
TOTAL CURRENT ASSETS | 31,576 | 30,328 |
EQUITY METHOD INVESTMENTS | 10,385 | 9,216 |
OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES | 1,150 | 1,232 |
OTHER ASSETS | 4,270 | 3,585 |
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation of $9,853 and $9,010, respectively | 14,548 | 14,476 |
TRADEMARKS WITH INDEFINITE LIVES | 6,608 | 6,527 |
BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES | 7,426 | 7,405 |
GOODWILL | 12,412 | 12,255 |
OTHER INTANGIBLE ASSETS | 1,057 | 1,150 |
TOTAL ASSETS | 89,432 | 86,174 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 10,590 | 8,680 |
Loans and notes payable | 18,840 | 16,297 |
Current maturities of long-term debt | 3,194 | 1,577 |
Accrued income taxes | 418 | 471 |
Liabilities held for sale | 0 | 796 |
TOTAL CURRENT LIABILITIES | 33,042 | 27,821 |
LONG-TERM DEBT | 14,173 | 14,736 |
OTHER LIABILITIES | 4,445 | 5,468 |
DEFERRED INCOME TAXES | 5,307 | 4,981 |
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY | ||
Common stock, $0.25 par value; Authorized — 11,200 shares; Issued — 7,040 and 7,040 shares, respectively | 1,760 | 1,760 |
Capital surplus | 12,122 | 11,379 |
Reinvested earnings | 61,187 | 58,045 |
Accumulated other comprehensive income (loss) | -4,699 | -3,385 |
Treasury stock, at cost — 2,624 and 2,571 shares, respectively | -38,238 | -35,009 |
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 32,132 | 32,790 |
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 333 | 378 |
TOTAL EQUITY | 32,465 | 33,168 |
TOTAL LIABILITIES AND EQUITY | $89,432 | $86,174 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS Parentheticals (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, except Per Share data, unless otherwise specified | ||
Allowance for Doubtful Accounts | $57 | $53 |
Accumulated Depreciation | $9,853 | $9,010 |
Common Stock - Par Value | $0.25 | $0.25 |
Common Stock - Shares Authorized | 11,200 | 11,200 |
Common Stock - Issued | 7,040 | 7,040 |
Treasury Stock - Cost | 2,624 | 2,571 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 |
OPERATING ACTIVITIES | ||
Consolidated net income | $6,918 | $7,196 |
Depreciation and amortization | 1,444 | 1,469 |
Stock-based compensation expense | 155 | 254 |
Deferred income taxes | 179 | 156 |
Equity (income) loss - net of dividends | -270 | -338 |
Foreign currency adjustments | 140 | -106 |
Significant (gains) losses on sales of assets - net | -670 | -108 |
Other operating charges | 331 | 98 |
Other items | 137 | 61 |
Net change in operating assets and liabilities | -652 | -842 |
Net cash provided by operating activities | 7,712 | 7,840 |
INVESTING ACTIVITIES | ||
Purchases of investments | -11,451 | -11,759 |
Proceeds from disposals of investments | 9,601 | 4,428 |
Acquisitions of businesses, equity method investments and nonmarketable securities | -326 | -1,148 |
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 869 | 19 |
Purchases of property, plant and equipment | -1,625 | -1,971 |
Proceeds from disposals of property, plant and equipment | 64 | 73 |
Other investing activities | -115 | -41 |
Net cash provided by (used in) investing activities | -2,983 | -10,399 |
FINANCING ACTIVITIES | ||
Issuances of debt | 31,147 | 32,888 |
Payments of debt | -27,293 | -28,790 |
Issuances of stock | 1,079 | 1,319 |
Purchases of stock for treasury | -3,892 | -3,619 |
Dividends | -2,494 | -2,304 |
Other financing activities | 70 | 107 |
Net cash provided by (used in) financing activities | -1,383 | -399 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -670 | -230 |
CASH AND CASH EQUIVALENTS | ||
Net increase (decrease) during the period | 2,676 | -3,188 |
Balance at beginning of period | 8,442 | 12,803 |
Balance at end of period | $11,118 | $9,615 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 27, 2013 | |
Summary of significant accounting policies | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation | |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of The Coca-Cola Company for the year ended December 31, 2012. | |
When used in these notes, the terms "The Coca-Cola Company," "Company," "we," "us" or "our" mean The Coca-Cola Company and all entities included in our condensed consolidated financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 27, 2013, are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. Sales of our nonalcoholic ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters accounting for the highest sales volumes. The volume of sales in the beverage business may be affected by weather conditions. | |
Each of our interim reporting periods, other than the fourth interim reporting period, ends on the Friday closest to the last day of the corresponding quarterly calendar period. The third quarter of 2013 and 2012 ended on September 27, 2013, and September 28, 2012, respectively. Our fourth interim reporting period and our fiscal year end on December 31 regardless of the day of the week on which December 31 falls. | |
Effective January 1, 2013, the Company transferred our India and South West Asia business unit from the Eurasia and Africa operating segment to the Pacific operating segment. Accordingly, these and certain other amounts in the prior year's condensed consolidated financial statements and notes have been revised to conform to the current year presentation. | |
Advertising Costs | |
The Company's accounting policy related to advertising costs for annual reporting purposes, as disclosed in Note 1 of our 2012 Annual Report on Form 10-K, is to expense production costs of print, radio, television and other advertisements as of the first date the advertisements take place. All other marketing expenditures are expensed in the annual period in which the expenditure is incurred. | |
For interim reporting purposes, we allocate our estimated full year marketing expenditures that benefit multiple interim periods to each of our interim reporting periods. We use the proportion of each interim period's actual unit case volume to the estimated full year unit case volume as the basis for the allocation. This methodology results in our marketing expenditures being recognized at a standard rate per unit case. At the end of each interim reporting period, we review our estimated full year unit case volume and our estimated full year marketing expenditures in order to evaluate if a change in estimate is necessary. The impact of any changes in these full year estimates is recognized in the interim period in which the change in estimate occurs. Our full year marketing expenditures are not impacted by this interim accounting policy. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 9 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Acquisition and Divestures [Abstract] | ||||||||||||
Acquisition and Divestitures [Text Block] | ACQUISITIONS AND DIVESTITURES | |||||||||||
Acquisitions | ||||||||||||
During the nine months ended September 27, 2013, our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $326 million, which primarily included our acquisition of the majority of the remaining outstanding shares of Fresh Trading Ltd. ("innocent") and bottling operations in Myanmar. The Company previously accounted for our investment in innocent under the equity method of accounting. We remeasured our equity interest in innocent to fair value upon the close of the transaction. The resulting gain on the remeasurement was not significant to our condensed consolidated financial statements. | ||||||||||||
During the nine months ended September 28, 2012, our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $1,148 million, which primarily included investments in the existing beverage business of Aujan Industries Company J.S.C. ("Aujan"), one of the largest independent beverage companies in the Middle East, and our acquisition of bottling operations in Vietnam, Cambodia and Guatemala. | ||||||||||||
The Company transferred $815 million during the nine months ended September 28, 2012, under its definitive agreement with Aujan in exchange for an ownership interest of 50 percent in the Aujan entity that holds the rights to Aujan-owned brands in certain territories and an ownership interest of 49 percent in Aujan's bottling and distribution operations in certain territories. The Company's investments in Aujan are being accounted for under the equity method of accounting. | ||||||||||||
Coca-Cola Erfrischungsgetränke AG | ||||||||||||
In conjunction with the Company's acquisition of 18 German bottling and distribution operations in 2007, the former owners received put options to sell their respective shares in Coca-Cola Erfrischungsgetränke AG back to the Company on January 2, 2014, with notification to the Company required by September 30, 2013. During the nine months ended September 27, 2013, the Company received notice that 100 percent of the put options would be exercised. The total exercise price for the put options is approximately $492 million. | ||||||||||||
Divestitures | ||||||||||||
During the nine months ended September 27, 2013, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $869 million. These proceeds primarily included the sale of a majority ownership interest in our previously consolidated bottling operations in the Philippines ("Philippine bottling operations"), and separately, the deconsolidation of our bottling operations in Brazil ("Brazilian bottling operations"). See below for further details on each of these transactions. | ||||||||||||
During the nine months ended September 28, 2012, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $19 million. None of the disposals were individually significant. | ||||||||||||
Philippine Bottling Operations | ||||||||||||
On December 13, 2012, the Company and Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA"), an equity method investee, executed a share purchase agreement for the sale of a majority ownership interest in our consolidated Philippine bottling operations. This transaction was completed on January 25, 2013. The Company now accounts for our ownership interest in the Philippine bottling operations under the equity method of accounting. Following this transaction, we remeasured our investment in the Philippine bottling operations to fair value taking into consideration the sale price of the majority ownership interest. Coca-Cola FEMSA has an option to purchase our remaining ownership interest in the Philippine bottling operations at any time during the seven years following closing based on the initial purchase price plus a defined return. Coca-Cola FEMSA also has an option exercisable during the sixth year after closing to sell its ownership interest back to the Company at a price not to exceed the initial purchase price. | ||||||||||||
As of December 31, 2012, our Philippine bottling operations met the criteria to be classified as held for sale, and we were required to record their assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price. The Company recorded a total loss of $107 million, primarily during the fourth quarter of 2012, on the sale of our Philippine bottling operations. Refer to the table below for details of our Philippine bottling assets and liabilities that were classified as held for sale. | ||||||||||||
Brazilian Bottling Operations | ||||||||||||
On December 17, 2012, the Company entered into an agreement with several parties to combine our Brazilian bottling operations with an independent bottler in Brazil in a transaction involving a disposition of shares for cash and an exchange of shares for a 44 percent minority ownership interest in the newly combined entity which was recorded at fair value. This transaction was completed on July 3, 2013, and resulted in the deconsolidation of our Brazilian bottling operations. The Company recognized a gain of $615 million as a result of this transaction. The owners of the majority interest have the option to acquire from us up to 24 percent of the new entity's outstanding shares at any time for a period of six years beginning December 31, 2013. | ||||||||||||
As of December 31, 2012, our Brazilian bottling operations met the criteria to be classified as held for sale, but we were not required to record their assets and liabilities at fair value less any costs to sell because their fair value exceeded our carrying value. Refer to the table below for details of our Brazilian bottling assets and liabilities that were classified as held for sale. | ||||||||||||
Assets and Liabilities Held for Sale | ||||||||||||
The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our condensed consolidated balance sheet as of December 31, 2012 (in millions): | ||||||||||||
December 31, 2012 | ||||||||||||
Brazilian | Philippine Bottling Operations | Total Bottling Operations | ||||||||||
Bottling Operations | Held for Sale as of December 31, 2012 | |||||||||||
Cash, cash equivalents and short-term investments | $ | 45 | $ | 133 | $ | 178 | ||||||
Trade accounts receivable, less allowances | 88 | 108 | 196 | |||||||||
Inventories | 85 | 187 | 272 | |||||||||
Prepaid expenses and other assets | 174 | 223 | 397 | |||||||||
Other assets | 128 | 7 | 135 | |||||||||
Property, plant and equipment — net | 419 | 841 | 1,260 | |||||||||
Bottlers' franchise rights with indefinite lives | 130 | 341 | 471 | |||||||||
Goodwill | 22 | 148 | 170 | |||||||||
Other intangible assets | 1 | — | 1 | |||||||||
Allowance for reduction of assets held for sale | — | (107 | ) | (107 | ) | |||||||
Total assets1 | $ | 1,092 | $ | 1,881 | $ | 2,973 | ||||||
Accounts payable and accrued expenses | $ | 157 | $ | 241 | $ | 398 | ||||||
Loans and notes payable | 6 | — | 6 | |||||||||
Current maturities of long-term debt | 28 | — | 28 | |||||||||
Accrued income taxes | 4 | (4 | ) | — | ||||||||
Long-term debt | 147 | — | 147 | |||||||||
Other liabilities | 75 | 20 | 95 | |||||||||
Deferred income taxes | 20 | 102 | 122 | |||||||||
Total liabilities1 | $ | 437 | $ | 359 | $ | 796 | ||||||
1 | The assets and liabilities of our Philippine and Brazilian bottling operations were included in our Bottling Investments operating segment during the period(s) in which they were consolidated entities of the Company. Refer to Note 15. | |||||||||||
We determined that our Philippine and Brazilian bottling operations did not meet the criteria to be classified as discontinued operations, primarily due to the continued significant involvement we have in these operations following each transaction. |
Investments
Investments | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Investments [Abstracts] | ||||||||||||||
Investments | INVESTMENTS | |||||||||||||
Investments in debt and marketable equity securities, other than investments accounted for under the equity method, are classified as trading, available-for-sale or held-to-maturity. Our marketable equity investments are classified as either trading or available-for-sale with their cost basis determined by the specific identification method. Realized and unrealized gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in net income. Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in our condensed consolidated balance sheets as a component of accumulated other comprehensive income ("AOCI"), except for the change in fair value attributable to the currency risk being hedged. Refer to Note 5 for additional information related to the Company's fair value hedges of available-for-sale securities. | ||||||||||||||
Our investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. | ||||||||||||||
Trading Securities | ||||||||||||||
As of September 27, 2013, and December 31, 2012, our trading securities had a fair value of $314 million and $266 million, respectively, and consisted primarily of equity securities. The Company had net unrealized gains on trading securities of $28 million and $19 million as of September 27, 2013, and December 31, 2012, respectively. The Company's trading securities were included in the following line items in our condensed consolidated balance sheets (in millions): | ||||||||||||||
September 27, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Marketable securities | $ | 231 | $ | 184 | ||||||||||
Other assets | 83 | 82 | ||||||||||||
Total trading securities | $ | 314 | $ | 266 | ||||||||||
Available-for-Sale and Held-to-Maturity Securities | ||||||||||||||
As of September 27, 2013, available-for-sale securities consisted of the following (in millions): | ||||||||||||||
Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Available-for-sale securities:1 | ||||||||||||||
Equity securities | $ | 983 | $ | 389 | $ | (15 | ) | $ | 1,357 | |||||
Debt securities | 3,343 | 21 | (34 | ) | 3,330 | |||||||||
Total available-for-sale securities | $ | 4,326 | $ | 410 | $ | (49 | ) | $ | 4,687 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
As of December 31, 2012, available-for-sale securities consisted of the following (in millions): | ||||||||||||||
Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Available-for-sale securities:1 | ||||||||||||||
Equity securities | $ | 957 | $ | 441 | $ | (10 | ) | $ | 1,388 | |||||
Debt securities | 3,169 | 46 | (10 | ) | 3,205 | |||||||||
Total available-for-sale securities | $ | 4,126 | $ | 487 | $ | (20 | ) | $ | 4,593 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
The sale and/or maturity of available-for-sale securities resulted in the following realized activity during the three and nine months ended September 27, 2013, and September 28, 2012 (in millions): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Gross gains | $ | 2 | $ | 22 | $ | 10 | $ | 34 | ||||||
Gross losses | (9 | ) | (26 | ) | (19 | ) | (28 | ) | ||||||
Proceeds | 1,091 | 1,256 | 3,349 | 4,098 | ||||||||||
The Company uses one of its insurance captives to reinsure group annuity insurance contracts that cover the pension obligations of certain of our European pension plans. In accordance with local insurance regulations, our insurance captive is required to meet and maintain minimum solvency capital requirements. The Company elected to invest its solvency capital in a portfolio of available-for-sale securities, which are classified in the line item other assets in our condensed consolidated balance sheets because the assets are not available to satisfy our current obligations. As of September 27, 2013, and December 31, 2012, the Company's available-for-sale securities included solvency capital funds of $530 million and $451 million, respectively. | ||||||||||||||
The Company's available-for-sale securities were included in the following line items in our condensed consolidated balance sheets (in millions): | ||||||||||||||
September 27, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Cash and cash equivalents | $ | 76 | $ | 9 | ||||||||||
Marketable securities | 2,971 | 2,908 | ||||||||||||
Other investments, principally bottling companies | 993 | 1,087 | ||||||||||||
Other assets | 647 | 589 | ||||||||||||
Total available-for-sale securities | $ | 4,687 | $ | 4,593 | ||||||||||
The contractual maturities of these available-for-sale securities as of September 27, 2013, were as follows (in millions): | ||||||||||||||
Cost | Fair Value | |||||||||||||
Within 1 year | $ | 1,285 | $ | 1,267 | ||||||||||
After 1 year through 5 years | 1,574 | 1,580 | ||||||||||||
After 5 years through 10 years | 149 | 153 | ||||||||||||
After 10 years | 335 | 330 | ||||||||||||
Equity securities | 983 | 1,357 | ||||||||||||
Total available-for-sale securities | $ | 4,326 | $ | 4,687 | ||||||||||
The Company expects that actual maturities may differ from the contractual maturities above because borrowers have the right to call or prepay certain obligations. | ||||||||||||||
As of September 27, 2013, and December 31, 2012, the Company did not have any held-to-maturity securities. | ||||||||||||||
Cost Method Investments | ||||||||||||||
Cost method investments are initially recorded at cost, and we record dividend income when applicable dividends are declared. Cost method investments are reported as other investments in our condensed consolidated balance sheets, and dividend income from cost method investments is reported in other income (loss) — net in our condensed consolidated statements of income. We review all of our cost method investments quarterly to determine if impairment indicators are present; however, we are not required to determine the fair value of these investments unless impairment indicators exist. When impairment indicators exist, we generally use discounted cash flow analyses to determine the fair value. We estimate that the fair values of our cost method investments approximated or exceeded their carrying values as of September 27, 2013, and December 31, 2012. Our cost method investments had a carrying value of $157 million and $145 million as of September 27, 2013, and December 31, 2012, respectively. |
Inventories
Inventories | 9 Months Ended | ||||||
Sep. 27, 2013 | |||||||
Inventories | |||||||
Inventories | INVENTORIES | ||||||
Inventories consist primarily of raw materials and packaging (which include ingredients and supplies) and finished goods (which include concentrates and syrups in our concentrate operations and finished beverages in our finished product operations). Inventories are valued at the lower of cost or market. We determine cost on the basis of the average cost or first-in, first-out methods. Inventories consisted of the following (in millions): | |||||||
September 27, | December 31, | ||||||
2013 | 2012 | ||||||
Raw materials and packaging | $ | 1,683 | $ | 1,773 | |||
Finished goods | 1,297 | 1,171 | |||||
Other | 341 | 320 | |||||
Total inventories | $ | 3,321 | $ | 3,264 | |||
Hedging_Transactions_and_Deriv
Hedging Transactions and Derivative Financial Instruments | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Hedging Transactions and Derivative Financial Instruments | ||||||||||||||
Hedging Transactions and Derivative Financial Instruments | HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||
The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company's financial performance and are referred to as "market risks." When deemed appropriate, our Company uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. | ||||||||||||||
The Company uses various types of derivative instruments including, but not limited to, forward contracts, commodity futures contracts, option contracts, collars and swaps. Forward contracts and commodity futures contracts are agreements to buy or sell a quantity of a currency or commodity at a predetermined future date, and at a predetermined rate or price. An option contract is an agreement that conveys the purchaser the right, but not the obligation, to buy or sell a quantity of a currency or commodity at a predetermined rate or price during a period or at a time in the future. A collar is a strategy that uses a combination of options to limit the range of possible positive or negative returns on an underlying asset or liability to a specific range, or to protect expected future cash flows. To do this, an investor simultaneously buys a put option and sells (writes) a call option, or alternatively buys a call option and sells (writes) a put option. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. We do not enter into derivative financial instruments for trading purposes. | ||||||||||||||
All derivatives are carried at fair value in our condensed consolidated balance sheets in the following line items, as applicable: prepaid expenses and other assets; other assets; accounts payable and accrued expenses; and other liabilities. The carrying values of the derivatives reflect the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. These master netting agreements allow the Company to net settle positive and negative positions (assets and liabilities) arising from different transactions with the same counterparty. | ||||||||||||||
The accounting for gains and losses that result from changes in the fair values of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationships. Derivatives can be designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations. The changes in the fair values of derivatives that have been designated and qualify for fair value hedge accounting are recorded in the same line item in our condensed consolidated statements of income as the changes in the fair values of the hedged items attributable to the risk being hedged. The changes in the fair values of derivatives that have been designated and qualify as cash flow hedges or hedges of net investments in foreign operations are recorded in AOCI and are reclassified into the line item in our condensed consolidated statement of income in which the hedged items are recorded in the same period the hedged items affect earnings. Due to the high degree of effectiveness between the hedging instruments and the underlying exposures being hedged, fluctuations in the value of the derivative instruments are generally offset by changes in the fair values or cash flows of the underlying exposures being hedged. The changes in fair values of derivatives that were not designated and/or did not qualify as hedging instruments are immediately recognized into earnings. | ||||||||||||||
For derivatives that will be accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective and the strategy for undertaking the hedge transaction. In addition, the Company formally assesses, both at inception and at least quarterly thereafter, whether the financial instruments used in hedging transactions are effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. Any ineffective portion of a financial instrument's change in fair value is immediately recognized into earnings. | ||||||||||||||
The Company determines the fair values of its derivatives based on quoted market prices or pricing models using current market rates. Refer to Note 14. The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks described above. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange rates or other financial indices. The Company does not view the fair values of its derivatives in isolation, but rather in relation to the fair values or cash flows of the underlying hedged transactions or other exposures. Virtually all of our derivatives are straightforward over-the-counter instruments with liquid markets. | ||||||||||||||
The following table presents the fair values of the Company's derivative instruments that were designated and qualified as part of a hedging relationship (in millions): | ||||||||||||||
Fair Value1,2 | ||||||||||||||
Derivatives Designated as | Balance Sheet Location1 | September 27, | December 31, 2012 | |||||||||||
Hedging Instruments | 2013 | |||||||||||||
Assets | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 146 | $ | 149 | |||||||||
Foreign currency contracts | Other assets | 39 | — | |||||||||||
Interest rate contracts | Prepaid expenses and other assets | 47 | 7 | |||||||||||
Interest rate contracts | Other assets | 299 | 335 | |||||||||||
Total assets | $ | 531 | $ | 491 | ||||||||||
Liabilities | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 102 | $ | 55 | |||||||||
Foreign currency contracts | Other liabilities | 17 | — | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 1 | 1 | |||||||||||
Interest rate contracts | Other liabilities | — | 6 | |||||||||||
Total liabilities | $ | 120 | $ | 62 | ||||||||||
1 All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
The following table presents the fair values of the Company's derivative instruments that were not designated as hedging instruments (in millions): | ||||||||||||||
Fair Value1,2 | ||||||||||||||
Derivatives Not Designated as | Balance Sheet Location1 | September 27, | December 31, 2012 | |||||||||||
Hedging Instruments | 2013 | |||||||||||||
Assets | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 21 | $ | 19 | |||||||||
Foreign currency contracts | Other assets | 164 | 42 | |||||||||||
Commodity contracts | Prepaid expenses and other assets | 31 | 72 | |||||||||||
Other derivative instruments | Prepaid expenses and other assets | 2 | 6 | |||||||||||
Total assets | $ | 218 | $ | 139 | ||||||||||
Liabilities | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 27 | $ | 24 | |||||||||
Foreign currency contracts | Other liabilities | — | 1 | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 14 | 43 | |||||||||||
Commodity contracts | Other liabilities | 1 | 1 | |||||||||||
Interest rate contracts | Other liabilities | 3 | — | |||||||||||
Other derivative instruments | Accounts payable and accrued expenses | 2 | 2 | |||||||||||
Total liabilities | $ | 47 | $ | 71 | ||||||||||
1 All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
Credit Risk Associated with Derivatives | ||||||||||||||
We have established strict counterparty credit guidelines and enter into transactions only with financial institutions of investment grade or better. We monitor counterparty exposures regularly and review any downgrade in credit rating immediately. If a downgrade in the credit rating of a counterparty were to occur, we have provisions requiring collateral in the form of U.S. government securities for substantially all of our transactions. To mitigate presettlement risk, minimum credit standards become more stringent as the duration of the derivative financial instrument increases. In addition, the Company's master netting agreements reduce credit risk by permitting the Company to net settle for transactions with the same counterparty. To minimize the concentration of credit risk, we enter into derivative transactions with a portfolio of financial institutions. Based on these factors, we consider the risk of counterparty default to be minimal. | ||||||||||||||
Cash Flow Hedging Strategy | ||||||||||||||
The Company uses cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates, commodity prices or interest rates. The changes in the fair values of derivatives designated as cash flow hedges are recorded in AOCI and are reclassified into the line item in our condensed consolidated statement of income in which the hedged items are recorded in the same period the hedged items affect earnings. The changes in fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. The Company did not discontinue any cash flow hedging relationships during the nine months ended September 27, 2013, or September 28, 2012. The maximum length of time for which the Company hedges its exposure to future cash flows is typically three years. | ||||||||||||||
The Company maintains a foreign currency cash flow hedging program to reduce the risk that our eventual U.S. dollar net cash inflows from sales outside the United States and U.S. dollar net cash outflows from procurement activities will be adversely affected by fluctuations in foreign currency exchange rates. We enter into forward contracts and purchase foreign currency options (principally euros and Japanese yen) and collars to hedge certain portions of forecasted cash flows denominated in foreign currencies. When the U.S. dollar strengthens against the foreign currencies, the decline in the present value of future foreign currency cash flows is partially offset by gains in the fair value of the derivative instruments. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is partially offset by losses in the fair value of the derivative instruments. The total notional values of derivatives that were designated and qualified for the Company's foreign currency cash flow hedging program were $5,543 million and $4,715 million as of September 27, 2013, and December 31, 2012, respectively. | ||||||||||||||
The Company has entered into commodity futures contracts and other derivative instruments on various commodities to mitigate the price risk associated with forecasted purchases of materials used in our manufacturing process. These derivative instruments have been designated and qualify as part of the Company's commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of certain commodities. The total notional values of derivatives that were designated and qualified for the Company's commodity cash flow hedging program were $15 million and $17 million as of September 27, 2013, and December 31, 2012, respectively. | ||||||||||||||
Our Company monitors our mix of short-term debt and long-term debt regularly. From time to time, we manage our risk to interest rate fluctuations through the use of derivative financial instruments. The Company has entered into interest rate swap agreements and has designated these instruments as part of the Company's interest rate cash flow hedging program. The objective of this hedging program is to mitigate the risk of adverse changes in benchmark interest rates on the Company's future interest payments. The total notional values of these interest rate swap agreements that were designated and qualified for the Company's interest rate cash flow hedging program were $2,778 million and $1,764 million as of September 27, 2013, and December 31, 2012, respectively. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the three months ended September 27, 2013 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in Other | AOCI into Income | (Ineffective Portion and | ||||||||||||
Comprehensive | (Effective Portion) | Amount Excluded from | ||||||||||||
Income ("OCI") | Effectiveness Testing) | |||||||||||||
Foreign currency contracts | $ | (70 | ) | Net operating revenues | $ | 53 | $ | — | ||||||
Foreign currency contracts | (4 | ) | Cost of goods sold | 11 | — | |||||||||
Interest rate contracts | 4 | Interest expense | (3 | ) | — | |||||||||
Commodity contracts | — | Cost of goods sold | (1 | ) | — | |||||||||
Total | $ | (70 | ) | $ | 60 | $ | — | |||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the nine months ended September 27, 2013 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in OCI | AOCI into Income | (Ineffective Portion and | ||||||||||||
(Effective Portion) | Amount Excluded from | |||||||||||||
Effectiveness Testing) | ||||||||||||||
Foreign currency contracts | $ | 150 | Net operating revenues | $ | 123 | $ | 1 | |||||||
Foreign currency contracts | 31 | Cost of goods sold | 21 | — | ||||||||||
Interest rate contracts | 155 | Interest expense | (9 | ) | — | 2 | ||||||||
Commodity contracts | 1 | Cost of goods sold | (2 | ) | — | |||||||||
Total | $ | 337 | $ | 133 | $ | 1 | ||||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
2 Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the three months ended September 28, 2012 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in OCI | AOCI into Income | (Ineffective Portion and | ||||||||||||
(Effective Portion) | Amount Excluded from | |||||||||||||
Effectiveness Testing) | ||||||||||||||
Foreign currency contracts | $ | (82 | ) | Net operating revenues | $ | (6 | ) | $ | — | 2 | ||||
Foreign currency contracts | (7 | ) | Cost of goods sold | (4 | ) | — | ||||||||
Interest rate contracts | (11 | ) | Interest expense | (3 | ) | — | ||||||||
Commodity contracts | — | Cost of goods sold | — | — | ||||||||||
Total | $ | (100 | ) | $ | (13 | ) | $ | — | ||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
2 Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the nine months ended September 28, 2012 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in OCI | AOCI into Income | (Ineffective Portion and | ||||||||||||
(Effective Portion) | Amount Excluded from | |||||||||||||
Effectiveness Testing) | ||||||||||||||
Foreign currency contracts | $ | (11 | ) | Net operating revenues | $ | (32 | ) | $ | 2 | |||||
Foreign currency contracts | 5 | Cost of goods sold | (16 | ) | — | |||||||||
Interest rate contracts | (11 | ) | Interest expense | (9 | ) | — | ||||||||
Commodity contracts | (4 | ) | Cost of goods sold | — | — | |||||||||
Total | $ | (21 | ) | $ | (57 | ) | $ | 2 | ||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
As of September 27, 2013, the Company estimates that it will reclassify into earnings during the next 12 months approximately $93 million of gains from the pretax amount recorded in AOCI as the anticipated cash flows occur. | ||||||||||||||
Fair Value Hedging Strategy | ||||||||||||||
The Company uses interest rate swap agreements designated as fair value hedges to minimize exposure to changes in the fair value of fixed-rate debt that results from fluctuations in benchmark interest rates. The changes in fair values of derivatives designated as fair value hedges and the offsetting changes in fair values of the hedged items are recognized in earnings. The ineffective portions of these hedges are immediately recognized in earnings. As of September 27, 2013, such adjustments had cumulatively increased the carrying value of our long-term debt by $101 million. When a derivative is no longer designated as a fair value hedge for any reason, including termination and maturity, the remaining difference between the carrying value of the hedged item at that time and the par value of the hedged item is amortized to earnings over the remaining life of the hedged item, or immediately if the hedged item has matured. The total notional values of derivatives that related to our fair value hedges of this type were $6,750 million and $6,700 million as of September 27, 2013, and December 31, 2012, respectively. | ||||||||||||||
The Company also uses fair value hedges to minimize exposure to changes in the fair value of certain available-for-sale securities from fluctuations in foreign currency exchange rates. The changes in fair values of derivatives designated as fair value hedges and the offsetting changes in fair values of the hedged items are recognized in earnings. As a result, any difference is reflected in earnings as ineffectiveness. The total notional values of derivatives that related to our fair value hedges of this type were $985 million and $850 million as of September 27, 2013, and December 31, 2012, respectively. | ||||||||||||||
The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings during the three months ended September 27, 2013, and September 28, 2012 (in millions): | ||||||||||||||
Fair Value Hedging Instruments | Location of Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized in Income | Recognized in Income | |||||||||||||
September 27, | September 28, | |||||||||||||
2013 | 2012 | |||||||||||||
Interest rate swaps | Interest expense | $ | 4 | $ | 42 | |||||||||
Fixed-rate debt | Interest expense | 5 | (30 | ) | ||||||||||
Net impact to interest expense | $ | 9 | $ | 12 | ||||||||||
Foreign currency contracts | Other income (loss) — net | $ | 39 | $ | 8 | |||||||||
Available-for-sale securities | Other income (loss) — net | (45 | ) | (5 | ) | |||||||||
Net impact to other income (loss) — net | $ | (6 | ) | $ | 3 | |||||||||
Net impact of fair value hedging instruments | $ | 3 | $ | 15 | ||||||||||
The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings during the nine months ended September 27, 2013, and September 28, 2012 (in millions): | ||||||||||||||
Fair Value Hedging Instruments | Location of Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized in Income | Recognized in Income | |||||||||||||
September 27, | September 28, | |||||||||||||
2013 | 2012 | |||||||||||||
Interest rate swaps | Interest expense | $ | (147 | ) | $ | 111 | ||||||||
Fixed-rate debt | Interest expense | 181 | (81 | ) | ||||||||||
Net impact to interest expense | $ | 34 | $ | 30 | ||||||||||
Foreign currency contracts | Other income (loss) — net | $ | 32 | $ | 23 | |||||||||
Available-for-sale securities | Other income (loss) — net | (47 | ) | (21 | ) | |||||||||
Net impact to other income (loss) — net | $ | (15 | ) | $ | 2 | |||||||||
Net impact of fair value hedging instruments | $ | 19 | $ | 32 | ||||||||||
Hedges of Net Investments in Foreign Operations Strategy | ||||||||||||||
The Company uses forward contracts to protect the value of our investments in a number of foreign subsidiaries. For derivative instruments that are designated and qualify as hedges of net investments in foreign operations, the changes in fair values of the derivative instruments are recognized in net foreign currency translation gain (loss), a component of AOCI, to offset the changes in the values of the net investments being hedged. Any ineffective portions of net investment hedges are reclassified from AOCI into earnings during the period of change. The total notional values of derivatives that were designated and qualified for the Company's net investments hedging program were $1,691 million and $1,718 million as of September 27, 2013, and December 31, 2012, respectively. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as net investment hedges had on AOCI during the three and nine months ended September 27, 2013, and September 28, 2012 (in millions): | ||||||||||||||
Gain (Loss) Recognized in OCI | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Foreign currency contracts | $ | (22 | ) | $ | (100 | ) | $ | 8 | $ | (58 | ) | |||
The Company did not reclassify any deferred gains or losses related to net investment hedges from AOCI to earnings during the three and nine months ended September 27, 2013, and September 28, 2012. In addition, the Company did not have any ineffectiveness related to net investment hedges during the three and nine months ended September 27, 2013, and September 28, 2012. | ||||||||||||||
Economic (Nondesignated) Hedging Strategy | ||||||||||||||
In addition to derivative instruments that are designated and qualify for hedge accounting, the Company also uses certain derivatives as economic hedges of foreign currency, interest rate and commodity exposure. Although these derivatives were not designated and/or did not qualify for hedge accounting, they are effective economic hedges. The changes in fair values of economic hedges are immediately recognized into earnings. | ||||||||||||||
The Company uses foreign currency economic hedges to offset the earnings impact that fluctuations in foreign currency exchange rates have on certain monetary assets and liabilities denominated in nonfunctional currencies. The changes in fair values of economic hedges used to offset those monetary assets and liabilities are immediately recognized into earnings in the line item other income (loss) — net in our condensed consolidated statements of income. In addition, we use foreign currency economic hedges to minimize the variability in cash flows associated with fluctuations in foreign currency exchange rates. The changes in fair values of economic hedges used to offset the variability in U.S. dollar net cash flows are recognized into earnings in the line items net operating revenues and cost of goods sold in our condensed consolidated statements of income, as applicable. The total notional values of derivatives related to our foreign currency economic hedges were $3,630 million and $3,865 million as of September 27, 2013, and December 31, 2012, respectively. | ||||||||||||||
The Company also uses certain derivatives as economic hedges to mitigate the price risk associated with the purchase of materials used in the manufacturing process and for vehicle fuel. The changes in fair values of these economic hedges are immediately recognized into earnings in the line items cost of goods sold and selling, general and administrative expenses in our condensed consolidated statements of income, as applicable. The total notional values of derivatives related to our economic hedges of this type were $1,357 million and $1,084 million as of September 27, 2013, and December 31, 2012, respectively. | ||||||||||||||
The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the three and nine months ended September 27, 2013, and September 28, 2012, respectively (in millions): | ||||||||||||||
Three Months Ended | ||||||||||||||
Derivatives Not Designated | Location of Gain (Loss) | September 27, | September 28, | |||||||||||
as Hedging Instruments | Recognized in Income | 2013 | 2012 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | (2 | ) | $ | (2 | ) | |||||||
Foreign currency contracts | Other income (loss) — net | 47 | 18 | |||||||||||
Foreign currency contracts | Cost of goods sold | 2 | (3 | ) | ||||||||||
Interest rate contracts | Interest expense | — | — | |||||||||||
Commodity contracts | Net operating revenues | 2 | 5 | |||||||||||
Commodity contracts | Cost of goods sold | (3 | ) | 25 | ||||||||||
Commodity contracts | Selling, general and administrative expenses | 3 | 19 | |||||||||||
Other derivative instruments | Selling, general and administrative expenses | 9 | 3 | |||||||||||
Total | $ | 58 | $ | 65 | ||||||||||
Nine Months Ended | ||||||||||||||
Derivatives Not Designated | Location of Gain (Loss) | September 27, | September 28, | |||||||||||
as Hedging Instruments | Recognized in Income | 2013 | 2012 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | 2 | $ | (5 | ) | ||||||||
Foreign currency contracts | Other income (loss) — net | 120 | (54 | ) | ||||||||||
Foreign currency contracts | Cost of goods sold | 2 | — | |||||||||||
Interest rate contracts | Interest expense | (3 | ) | — | ||||||||||
Commodity contracts | Net operating revenues | 1 | 5 | |||||||||||
Commodity contracts | Cost of goods sold | (147 | ) | (19 | ) | |||||||||
Commodity contracts | Selling, general and administrative expenses | 1 | 12 | |||||||||||
Other derivative instruments | Selling, general and administrative expenses | 33 | 21 | |||||||||||
Total | $ | 9 | $ | (40 | ) | |||||||||
Debt_and_Borrowing_Arrangement
Debt and Borrowing Arrangements | 9 Months Ended | |
Sep. 27, 2013 | ||
Debt and borrowing arrangements | ||
Debt and Borrowing Arrangements | DEBT AND BORROWING ARRANGEMENTS | |
During the second quarter of 2013, the Company extinguished $1,254 million of long-term debt prior to maturity and recorded a charge of $23 million in the line item interest expense in our condensed consolidated statement of income. The general terms of the notes that were extinguished are as follows: | ||
• | $225 million total principal amount of notes due August 15, 2013, at a fixed interest rate of 5.0 percent; | |
• | $675 million total principal amount of notes due March 3, 2014, at a fixed interest rate of 7.375 percent; and | |
• | $354 million total principal amount of notes due March 1, 2015, at a fixed interest rate of 4.25 percent. | |
During the first quarter of 2013, the Company issued $2,500 million of long-term debt. The general terms of the notes issued are as follows: | ||
• | $500 million total principal amount of notes due March 5, 2015, at a variable interest rate equal to the three-month London Interbank Offered Rate minus 0.02 percent; | |
• | $1,250 million total principal amount of notes due April 1, 2018, at a fixed interest rate of 1.15 percent; and | |
• | $750 million total principal amount of notes due April 1, 2023, at a fixed interest rate of 2.5 percent. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 27, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES |
Guarantees | |
As of September 27, 2013, we were contingently liable for guarantees of indebtedness owed by third parties of $639 million, of which $287 million related to variable interest entities ("VIEs"). These guarantees are primarily related to third-party customers, bottlers, vendors and container manufacturing operations and have arisen through the normal course of business. These guarantees have various terms, and none of these guarantees were individually significant. The amount represents the maximum potential future payments that we could be required to make under the guarantees; however, we do not consider it probable that we will be required to satisfy these guarantees. | |
We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations. | |
Legal Contingencies | |
The Company is involved in various legal proceedings. We establish reserves for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be reasonably estimated. Management has also identified certain other legal matters where we believe an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made. Management believes that the total liabilities to the Company that may arise as a result of currently pending legal proceedings will not have a material adverse effect on the Company taken as a whole. | |
During the period from 1970 to 1981, our Company owned Aqua-Chem, Inc., now known as Cleaver-Brooks, Inc. ("Aqua-Chem"). During that time, the Company purchased over $400 million of insurance coverage, which also insures Aqua-Chem for some of its prior and future costs for certain product liability and other claims. A division of Aqua-Chem manufactured certain boilers that contained gaskets that Aqua-Chem purchased from outside suppliers. Several years after our Company sold this entity, Aqua-Chem received its first lawsuit relating to asbestos, a component of some of the gaskets. Aqua-Chem was first named as a defendant in asbestos lawsuits in or around 1985 and currently has approximately 40,000 active claims pending against it. In September 2002, Aqua-Chem notified our Company that it believed we were obligated for certain costs and expenses associated with its asbestos litigations. Aqua-Chem demanded that our Company reimburse it for approximately $10 million for out-of-pocket litigation-related expenses. Aqua-Chem also demanded that the Company acknowledge a continuing obligation to Aqua-Chem for any future liabilities and expenses that are excluded from coverage under the applicable insurance or for which there is no insurance. Our Company disputes Aqua-Chem's claims, and we believe we have no obligation to Aqua-Chem for any of its past, present or future liabilities, costs or expenses. Furthermore, we believe we have substantial legal and factual defenses to Aqua-Chem's claims. The parties entered into litigation in Georgia to resolve this dispute, which was stayed by agreement of the parties pending the outcome of litigation filed in Wisconsin by certain insurers of Aqua-Chem. In that case, five plaintiff insurance companies filed a declaratory judgment action against Aqua-Chem, the Company and 16 defendant insurance companies seeking a determination of the parties' rights and liabilities under policies issued by the insurers and reimbursement for amounts paid by plaintiffs in excess of their obligations. During the course of the Wisconsin insurance coverage litigation, Aqua-Chem and the Company reached settlements with several of the insurers, including plaintiffs, who have or will pay funds into an escrow account for payment of costs arising from the asbestos claims against Aqua-Chem. On July 24, 2007, the Wisconsin trial court entered a final declaratory judgment regarding the rights and obligations of the parties under the insurance policies issued by the remaining defendant insurers, which judgment was not appealed. The judgment directs, among other things, that each insurer whose policy is triggered is jointly and severally liable for 100 percent of Aqua-Chem's losses up to policy limits. The court's judgment concluded the Wisconsin insurance coverage litigation. The Georgia litigation remains subject to the stay agreement. The Company and Aqua-Chem continued to negotiate with various insurers that were defendants in the Wisconsin insurance coverage litigation over those insurers' obligations to defend and indemnify Aqua-Chem for the asbestos-related claims. The Company anticipated that a final settlement with three of those insurers (the "Chartis insurers") would be finalized in May 2011, but such insurers repudiated their settlement commitments and, as a result, Aqua-Chem and the Company filed suit against them in Wisconsin state court to enforce the coverage-in-place settlement or, in the alternative, to obtain a declaratory judgment validating Aqua-Chem and the Company's interpretation of the court's judgment in the Wisconsin insurance coverage litigation. In February 2012, the parties filed and argued a number of cross-motions for summary judgment related to the issues of the enforceability of the settlement agreement and the exhaustion of policies underlying those of the Chartis insurers. The court granted defendants' motions for summary judgment that the 2011 settlement agreement and 2010 term sheet were not binding contracts, but denied their similar motions related to the plaintiffs' claims for promissory and/or equitable estoppel. On or about May 15, 2012, the parties entered into a mutually agreeable settlement/stipulation resolving two major issues: exhaustion of underlying coverage and control of defense. On or about January 10, 2013, the parties reached a settlement of the estoppel claims and all of the remaining coverage issues, with the exception of one disputed issue relating to the scope of the Chartis insurers' defense obligations in two policy years. The trial court granted summary judgment in favor of the Company and Aqua-Chem on that one open issue and entered a final appealable judgment to that effect following the parties' settlement. On January 23, 2013, the Chartis insurers filed a notice of appeal of the trial court's summary judgment ruling. Whatever the outcome of that appeal, these three insurance companies will remain subject to the court's judgment in the Wisconsin insurance coverage litigation. | |
The Company is unable to estimate at this time the amount or range of reasonably possible loss it may ultimately incur as a result of asbestos-related claims against Aqua-Chem. The Company believes that assuming (a) the defense and indemnity costs for the asbestos-related claims against Aqua-Chem in the future are in the same range as during the past five years, and (b) the various insurers that cover the asbestos-related claims against Aqua-Chem remain solvent, regardless of the outcome of the coverage-in-place settlement litigation but taking into account the issues resolved to date, insurance coverage for substantially all defense and indemnity costs would be available for the next 10 to 15 years. | |
Tax Audits | |
The Company is involved in various tax matters, with respect to some of which the outcome is uncertain. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that it becomes uncertain based upon one of the following conditions: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the financial period in which the tax position was originally taken. For purposes of evaluating whether or not a tax position is uncertain, (1) we presume the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information; (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position; and (3) each tax position is evaluated without consideration of the possibility of offset or aggregation with other tax positions taken. A number of years may elapse before a particular uncertain tax position is audited and finally resolved or when a tax assessment is raised. The number of years subject to tax assessments varies depending on the tax jurisdiction. The tax benefit that has been previously reserved because of a failure to meet the "more likely than not" recognition threshold would be recognized in our income tax expense in the first interim period when the uncertainty disappears under any one of the following conditions: (1) the tax position is "more likely than not" to be sustained, (2) the tax position, amount, and/or timing is ultimately settled through negotiation or litigation, or (3) the statute of limitations for the tax position has expired. Refer to Note 13. | |
Risk Management Programs | |
The Company has numerous global insurance programs in place to help protect the Company from the risk of loss. In general, we are self-insured for large portions of many different types of claims; however, we do use commercial insurance above our self-insured retentions to reduce the Company's risk of catastrophic loss. Our reserves for the Company's self-insured losses are estimated using actuarial methods and assumptions of the insurance industry, adjusted for our specific expectations based on our claim history. Our self-insurance reserves totaled $539 million and $508 million as of September 27, 2013, and December 31, 2012, respectively. |
Comprehensive_Income
Comprehensive Income | 9 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Comprehensive Income | ||||||||||||
Comprehensive Income | COMPREHENSIVE INCOME | |||||||||||
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions): | ||||||||||||
Nine Months Ended September 27, 2013 | ||||||||||||
Shareowners of | Noncontrolling | Total | ||||||||||
The Coca-Cola Company | Interests | |||||||||||
Consolidated net income | $ | 6,874 | $ | 44 | $ | 6,918 | ||||||
Other comprehensive income: | ||||||||||||
Net foreign currency translation adjustment | (1,475 | ) | 28 | (1,447 | ) | |||||||
Net gain (loss) on derivatives1 | 122 | — | 122 | |||||||||
Net unrealized gain (loss) on available-for-sale securities2 | (66 | ) | — | (66 | ) | |||||||
Net change in pension and other benefit liabilities | 105 | — | 105 | |||||||||
Total comprehensive income | $ | 5,560 | $ | 72 | $ | 5,632 | ||||||
1 Refer to Note 5 for information related to the net gain or loss on derivative instruments classified as cash flow hedges. | ||||||||||||
2 Refer to Note 3 for information related to the net unrealized gain or loss on available-for-sale securities. | ||||||||||||
The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI (in millions): | ||||||||||||
Three Months Ended September 27, 2013 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (639 | ) | $ | 144 | $ | (495 | ) | ||||
Reclassification adjustments recognized in net income | 26 | — | 26 | |||||||||
Net foreign currency translation adjustments | (613 | ) | 144 | (469 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | (69 | ) | 25 | (44 | ) | |||||||
Reclassification adjustments recognized in net income | (60 | ) | 22 | (38 | ) | |||||||
Net gain (loss) on derivatives1 | (129 | ) | 47 | (82 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | (152 | ) | 53 | (99 | ) | |||||||
Reclassification adjustments recognized in net income | 7 | — | 7 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | (145 | ) | 53 | (92 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | (5 | ) | — | (5 | ) | |||||||
Reclassification adjustments recognized in net income | 49 | (17 | ) | 32 | ||||||||
Net change in pension and other benefit liabilities3 | 44 | (17 | ) | 27 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (843 | ) | $ | 227 | $ | (616 | ) | ||||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Nine Months Ended September 27, 2013 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (1,318 | ) | $ | 37 | $ | (1,281 | ) | ||||
Reclassification adjustments recognized in net income | (194 | ) | — | (194 | ) | |||||||
Net foreign currency translation adjustments | (1,512 | ) | 37 | (1,475 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | 333 | (128 | ) | 205 | ||||||||
Reclassification adjustments recognized in net income | (133 | ) | 50 | (83 | ) | |||||||
Net gain (loss) on derivatives1 | 200 | (78 | ) | 122 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | (108 | ) | 33 | (75 | ) | |||||||
Reclassification adjustments recognized in net income | 9 | — | 9 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | (99 | ) | 33 | (66 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | 20 | (9 | ) | 11 | ||||||||
Reclassification adjustments recognized in net income | 147 | (53 | ) | 94 | ||||||||
Net change in pension and other benefit liabilities3 | 167 | (62 | ) | 105 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (1,244 | ) | $ | (70 | ) | $ | (1,314 | ) | |||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Three Months Ended September 28, 2012 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | 236 | $ | 47 | $ | 283 | ||||||
Reclassification adjustments recognized in net income | — | — | — | |||||||||
Net foreign currency translation adjustments | 236 | 47 | 283 | |||||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | (101 | ) | 45 | (56 | ) | |||||||
Reclassification adjustments recognized in net income | 13 | (5 | ) | 8 | ||||||||
Net gain (loss) on derivatives1 | (88 | ) | 40 | (48 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | 248 | (70 | ) | 178 | ||||||||
Reclassification adjustments recognized in net income | 4 | — | 4 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 252 | (70 | ) | 182 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | (5 | ) | 2 | (3 | ) | |||||||
Reclassification adjustments recognized in net income | 22 | (8 | ) | 14 | ||||||||
Net change in pension and other benefit liabilities3 | 17 | (6 | ) | 11 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | 417 | $ | 11 | $ | 428 | ||||||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Nine Months Ended September 28, 2012 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (571 | ) | $ | 16 | $ | (555 | ) | ||||
Reclassification adjustments recognized in net income | 7 | — | 7 | |||||||||
Net foreign currency translation adjustments | (564 | ) | 16 | (548 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | (39 | ) | 15 | (24 | ) | |||||||
Reclassification adjustments recognized in net income | 57 | (22 | ) | 35 | ||||||||
Net gain (loss) on derivatives1 | 18 | (7 | ) | 11 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | 516 | (162 | ) | 354 | ||||||||
Reclassification adjustments recognized in net income | (6 | ) | — | (6 | ) | |||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 510 | (162 | ) | 348 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | (22 | ) | 2 | (20 | ) | |||||||
Reclassification adjustments recognized in net income | 66 | (24 | ) | 42 | ||||||||
Net change in pension and other benefit liabilities3 | 44 | (22 | ) | 22 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | 8 | $ | (175 | ) | $ | (167 | ) | ||||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
The following table presents the amounts and line items in our condensed consolidated statements of income where adjustments reclassified from AOCI into income were recorded during the three and nine months ended September 27, 2013 (in millions): | ||||||||||||
Amount Reclassified from | ||||||||||||
AOCI into Income | ||||||||||||
Description of AOCI Component | Location of Gain (Loss) | Three Months Ended September 27, 2013 | Nine Months Ended September 27, 2013 | |||||||||
Recognized in Income | ||||||||||||
Foreign currency translation adjustments: | ||||||||||||
Divestitures, deconsolidations and other | Other income (loss) — net | $ | 26 | $ | (194 | ) | 1 | |||||
Income before income taxes | $ | 26 | $ | (194 | ) | |||||||
Income taxes | — | — | ||||||||||
Consolidated net income | $ | 26 | $ | (194 | ) | |||||||
Derivatives: | ||||||||||||
Foreign currency contracts | Net operating revenues | $ | (53 | ) | $ | (123 | ) | |||||
Foreign currency contracts | Cost of goods sold | (10 | ) | (19 | ) | |||||||
Interest rate contracts | Interest expense | 3 | 9 | |||||||||
Income before income taxes | $ | (60 | ) | $ | (133 | ) | ||||||
Income taxes | 22 | 50 | ||||||||||
Consolidated net income | $ | (38 | ) | $ | (83 | ) | ||||||
Available-for-sale securities: | ||||||||||||
Sale of securities | Other income (loss) — net | $ | 7 | $ | 9 | |||||||
Income before income taxes | $ | 7 | $ | 9 | ||||||||
Income taxes | — | — | ||||||||||
Consolidated net income | $ | 7 | $ | 9 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Insignificant items | Other income (loss) — net | $ | — | $ | (1 | ) | ||||||
Amortization of net actuarial loss | * | 53 | 158 | |||||||||
Amortization of prior service cost (credit) | * | (4 | ) | (10 | ) | |||||||
Income before income taxes | $ | 49 | $ | 147 | ||||||||
Income taxes | (17 | ) | (53 | ) | ||||||||
Consolidated net income | $ | 32 | $ | 94 | ||||||||
* | This component of AOCI is included in the Company's computation of net periodic benefit cost and is not reclassified out of AOCI into a single line item in our condensed consolidated statements of income in its entirety. Refer to Note 12 for additional information. | |||||||||||
1 | Related to the disposition of our Philippine bottling operations in January 2013, the deconsolidation of our Brazilian bottling operations in July 2013 and the merger of four of the Company's Japanese bottling partners in July 2013. Refer to Note 2 and Note 10 for additional information related to these transactions. |
Changes_in_Equity
Changes in Equity | 9 Months Ended | |||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||
Changes in Equity [Abstract] | ||||||||||||||||||||||
Changes in Equity | CHANGES IN EQUITY | |||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to shareowners of The Coca-Cola Company and equity attributable to noncontrolling interests (in millions): | ||||||||||||||||||||||
Shareowners of The Coca-Cola Company | ||||||||||||||||||||||
Total | Reinvested | Accumulated | Common | Capital | Treasury | Non- | ||||||||||||||||
Earnings | Other | Stock | Surplus | Stock | controlling | |||||||||||||||||
Comprehensive | Interests | |||||||||||||||||||||
Income (Loss) | ||||||||||||||||||||||
December 31, 2012 | $ | 33,168 | $ | 58,045 | $ | (3,385 | ) | $ | 1,760 | $ | 11,379 | $ | (35,009 | ) | $ | 378 | ||||||
Comprehensive income (loss) | 5,632 | 6,874 | (1,314 | ) | — | — | — | 72 | ||||||||||||||
Dividends paid/payable to shareowners of | (3,732 | ) | (3,732 | ) | — | — | — | — | — | |||||||||||||
The Coca-Cola Company | ||||||||||||||||||||||
Dividends paid to noncontrolling interests | (54 | ) | — | — | — | — | — | (54 | ) | |||||||||||||
Contributions by noncontrolling interests | 1 | — | — | — | — | — | 1 | |||||||||||||||
Business combinations | 25 | — | — | — | — | — | 25 | |||||||||||||||
Deconsolidation of certain entities | (89 | ) | — | — | — | — | — | (89 | ) | |||||||||||||
Purchases of treasury stock | (3,820 | ) | — | — | — | — | (3,820 | ) | — | |||||||||||||
Impact of employee stock option and | 1,334 | — | — | — | 743 | 591 | — | |||||||||||||||
restricted stock plans | ||||||||||||||||||||||
September 27, 2013 | $ | 32,465 | $ | 61,187 | $ | (4,699 | ) | $ | 1,760 | $ | 12,122 | $ | (38,238 | ) | $ | 333 | ||||||
Significant_Operating_and_Nono
Significant Operating and Nonoperating Items | 9 Months Ended |
Sep. 27, 2013 | |
Significant Operating and Nonoperating Items | |
Significant Operating and Nonoperating Items | SIGNIFICANT OPERATING AND NONOPERATING ITEMS |
Other Operating Items | |
Cost of Goods Sold | |
In December 2011, the Company detected that orange juice being imported from Brazil contained residues of carbendazim, a fungicide that is not registered in the United States for use on citrus products. As a result, we began purchasing additional supplies of Florida orange juice at a higher cost than Brazilian orange juice and incurred charges of $7 million and $15 million during the three and nine months ended September 28, 2012, respectively. These charges were recorded in the line item cost of goods sold in our condensed consolidated statements of income. | |
Other Operating Charges | |
During the three months ended September 27, 2013, the Company incurred other operating charges of $341 million. These charges primarily consisted of $190 million due to the impairment of certain intangible assets described below; $97 million due to the Company's productivity and reinvestment program; and $45 million due to the Company's other restructuring and integration initiatives. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 14 for additional information on the impairment charges recorded. Refer to Note 15 for the impact these charges had on our operating segments. | |
During the nine months ended September 27, 2013, the Company incurred other operating charges of $594 million. These charges primarily consisted of $312 million due to the Company's productivity and reinvestment program; $190 million due to the impairment of certain intangible assets described below; and $86 million due to the Company's other restructuring and integration initiatives. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 14 for additional information on the impairment charges recorded. Refer to Note 15 for the impact these charges had on our operating segments. | |
During the three and nine months ended September 27, 2013, the Company recorded charges of $190 million related to certain intangible assets. These charges included $108 million related to the impairment of trademarks recorded in our Bottling Investments and Pacific operating segments. These impairments were primarily due to a strategic decision to phase out certain local-market value brands which resulted in a change in the expected useful life of the intangible assets. The charges were determined by comparing the fair value of the trademarks, derived using discounted cash flow analyses, to the current carrying value. Additionally, the remaining charge of $82 million related to goodwill recorded in our Bottling Investments operating segment. This charge was primarily the result of management's revised outlook on market conditions and volume performance. The total impairment charges of $190 million were recorded in our Corporate operating segment in the line item other operating charges in our condensed consolidated statements of income. | |
During the three months ended September 28, 2012, the Company incurred other operating charges of $64 million. These charges consisted of $59 million due to the Company's productivity and reinvestment program; $14 million due to the Company's other restructuring and integration initiatives; and $2 million due to costs associated with the Company detecting carbendazim in orange juice imported from Brazil for distribution in the United States. These charges were partially offset by a reversal of $6 million due to the refinement of previously established accruals related to the Company's 2008–2011 productivity initiatives as well as a reversal of $5 million due to the refinement of previously established accruals related to the Company's integration of Coca-Cola Enterprises Inc.'s ("CCE") former North America business. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 15 for the impact these charges had on our operating segments. | |
During the nine months ended September 28, 2012, the Company incurred other operating charges of $233 million. These charges consisted of $177 million due to the Company's productivity and reinvestment program; $44 million due to the Company's other restructuring and integration initiatives; $20 million due to changes in the Company's ready-to-drink tea strategy as a result of our U.S. license agreement with Nestlé S.A. ("Nestlé") terminating at the end of 2012; and $6 million due to costs associated with the Company detecting carbendazim in orange juice imported from Brazil for distribution in the United States. These charges were partially offset by a reversal of $9 million due to the refinement of previously established accruals related to the Company's 2008–2011 productivity initiatives as well as a reversal of $5 million due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 15 for the impact these charges had on our operating segments. | |
Other Nonoperating Items | |
Equity Income (Loss) — Net | |
During the three and nine months ended September 27, 2013, the Company recorded a net gain of $8 million and net charge of $34 million, respectively, in the line item equity income (loss) — net. These amounts represent the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. The net charge recorded during the nine months ended September 27, 2013, includes a charge incurred by an equity method investee due to the devaluation of the Venezuelan bolivar. Refer to Note 15 for the impact these items had on our operating segments. | |
During the three months ended September 28, 2012, the Company recorded a net charge of $10 million in the line item equity income (loss) — net. This net charge primarily represents the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 15 for the impact these items had on our operating segments. | |
During the nine months ended September 28, 2012, the Company recorded a net gain of $33 million in the line item equity income (loss) — net. This net gain primarily represents the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. In addition, the Company recorded a charge of $14 million due to changes in the structure of Beverage Partners Worldwide ("BPW"), our 50/50 joint venture with Nestlé in the ready-to-drink tea category. These changes resulted in the joint venture focusing its geographic scope on Europe and Canada. The Company accounts for our investment in BPW under the equity method of accounting. Refer to Note 15 for the impact these items had on our operating segments. | |
Other Income (Loss) — Net | |
During the three and nine months ended September 27, 2013, the Company recorded a gain of $615 million in the line item other income (loss) — net. This gain was due to the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. Refer to Note 2 for additional information on this transaction. Refer to Note 15 for the impact this gain had on our operating segments. | |
In 2012, four of the Company's Japanese bottling partners announced their intent to merge as Coca-Cola East Japan Bottling Company, Ltd. ("CCEJ"), a publicly traded entity, through a share exchange. The merger was completed effective July 1, 2013. The terms of the merger agreement included the issuance of new shares of one of the publicly traded bottlers in exchange for 100 percent of the outstanding shares of the remaining three bottlers according to an agreed upon share exchange ratio. As a result, the Company recorded a gain of $30 million during the three months ended September 27, 2013, based on the value of the shares it received on July 1, 2013. This gain partially offset a loss of $144 million the Company recorded during the second quarter of 2013 for those investments in which the Company’s carrying value was higher than the fair value of the shares expected to be received. In total, the Company recorded a net loss of $114 million during the nine months ended September 27, 2013, related to our investment in the entities that merged to form CCEJ. Refer to Note 15 for the impact these items had on our operating segments. | |
During the nine months ended September 27, 2013, the Company recorded a charge of $140 million in the line item other income (loss) — net due to the Venezuelan government announcing a currency devaluation. As a result of this devaluation, the Company remeasured the net assets related to its operations in Venezuela. Refer to Note 15 for the impact this charge had on our operating segments. | |
In addition, during the nine months ended September 27, 2013, the Company recognized a gain of $139 million due to Coca-Cola FEMSA issuing additional shares of its own stock at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company sold a proportionate share of its investment in Coca-Cola FEMSA. Refer to Note 15 for the impact this gain had on our operating segments. | |
During the nine months ended September 28, 2012, the Company recognized a gain of $92 million due to Coca-Cola FEMSA issuing additional shares of its own stock at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company sold a proportionate share of its investment in Coca-Cola FEMSA. Refer to Note 15 for the impact this gain had on our operating segments. |
Productivity_Integration_and_R
Productivity, Integration and Restructuring Initiatives | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Productivity and Reinvestment [Abstract] | ||||||||||||||||
Productivity, Integration and Restructuring Initiatives | PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES | |||||||||||||||
Productivity and Reinvestment | ||||||||||||||||
In February 2012, the Company announced a four-year productivity and reinvestment program which is designed to further enable our efforts to strengthen our brands and reinvest our resources to drive long-term profitable growth. This program is focused on the following initiatives: global supply chain optimization; global marketing and innovation effectiveness; operating expense leverage and operational excellence; data and information technology systems standardization; and further integration of CCE's former North America business. | ||||||||||||||||
As of September 27, 2013, the Company has incurred total pretax expenses of $582 million related to this program since the plan commenced. These expenses were recorded in the line item other operating charges in our condensed consolidated statements of income. Refer to Note 15 for the impact these charges had on our operating segments. Outside services reported in the tables below primarily relate to expenses in connection with legal, outplacement and consulting activities. Other direct costs reported in the tables below include, among other items, internal and external costs associated with the development, communication, administration and implementation of these initiatives; accelerated depreciation on certain fixed assets; contract termination fees; and relocation costs. | ||||||||||||||||
The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts as of and for the three months ended September 27, 2013 (in millions): | ||||||||||||||||
Accrued | Costs | Payments | Noncash | Accrued | ||||||||||||
Balance | Incurred | and | Balance | |||||||||||||
June 28, | Three Months Ended | Exchange | September 27, | |||||||||||||
2013 | September 27, | 2013 | ||||||||||||||
2013 | ||||||||||||||||
Severance pay and benefits | $ | 37 | $ | 30 | $ | (29 | ) | $ | 1 | $ | 39 | |||||
Outside services | 3 | 12 | (3 | ) | — | 12 | ||||||||||
Other direct costs | 12 | 55 | (50 | ) | (1 | ) | 16 | |||||||||
Total | $ | 52 | $ | 97 | $ | (82 | ) | $ | — | $ | 67 | |||||
The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts as of and for the nine months ended September 27, 2013 (in millions): | ||||||||||||||||
Accrued | Costs | Payments | Noncash | Accrued | ||||||||||||
Balance | Incurred | and | Balance | |||||||||||||
December 31, | Nine Months Ended | Exchange | September 27, | |||||||||||||
2012 | September 27, | 2013 | ||||||||||||||
2013 | ||||||||||||||||
Severance pay and benefits | $ | 12 | $ | 109 | $ | (83 | ) | $ | 1 | $ | 39 | |||||
Outside services | 6 | 49 | (43 | ) | — | 12 | ||||||||||
Other direct costs | 8 | 154 | (145 | ) | (1 | ) | 16 | |||||||||
Total | $ | 26 | $ | 312 | $ | (271 | ) | $ | — | $ | 67 | |||||
Integration of Our German Bottling and Distribution Operations | ||||||||||||||||
In 2008, the Company began an integration initiative related to the 18 German bottling and distribution operations acquired in 2007. The Company incurred expenses of $45 million and $85 million related to this initiative during the three and nine months ended September 27, 2013, respectively, and has incurred total pretax expenses of $525 million related to this initiative since it commenced. These charges were recorded in the line item other operating charges in our condensed consolidated statements of income and impacted the Bottling Investments operating segment. The charges recorded in connection with these integration activities have been primarily due to involuntary terminations. The Company had $108 million and $96 million accrued related to these integration costs as of September 27, 2013, and December 31, 2012, respectively. | ||||||||||||||||
The Company is currently reviewing other integration and restructuring opportunities within the German bottling and distribution operations, which, if implemented, will result in additional charges in future periods. However, as of September 27, 2013, the Company has not finalized any additional plans. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefit Plans | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Pension and Other Postretirement Benefit Plans | ||||||||||||||
Pension and Other Postretirement Benefit Plans | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | |||||||||||||
Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following during the three and nine months ended September 27, 2013, and September 28, 2012, respectively (in millions): | ||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||
Three Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 69 | $ | 88 | $ | 9 | $ | 8 | ||||||
Interest cost | 93 | 97 | 10 | 11 | ||||||||||
Expected return on plan assets | (163 | ) | (143 | ) | (2 | ) | (2 | ) | ||||||
Amortization of prior service cost (credit) | (1 | ) | (1 | ) | (3 | ) | (13 | ) | ||||||
Amortization of net actuarial loss | 50 | 34 | 3 | 2 | ||||||||||
Total cost (credit) recognized in statements of income | $ | 48 | $ | 75 | $ | 17 | $ | 6 | ||||||
Pension Benefits | Other Benefits | |||||||||||||
Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 207 | $ | 224 | $ | 27 | $ | 25 | ||||||
Interest cost | 282 | 292 | 31 | 33 | ||||||||||
Expected return on plan assets | (492 | ) | (431 | ) | (7 | ) | (6 | ) | ||||||
Amortization of prior service cost (credit) | (2 | ) | (2 | ) | (8 | ) | (39 | ) | ||||||
Amortization of net actuarial loss | 149 | 102 | 9 | 5 | ||||||||||
Total cost (credit) recognized in statements of income | $ | 144 | $ | 185 | $ | 52 | $ | 18 | ||||||
During the nine months ended September 27, 2013, the Company contributed $574 million to our pension plans, and we anticipate making additional contributions of approximately $60 million to our pension plans during the remainder of 2013. The Company contributed $992 million to our pension plans during the nine months ended September 28, 2012. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Income taxes | |||||||||||||||||
Income Taxes | INCOME TAXES | ||||||||||||||||
Our effective tax rate reflects the benefits of having significant operations outside the United States, which are generally taxed at rates lower than the U.S. statutory rate of 35 percent. As a result of employment actions and capital investments made by the Company, certain tax jurisdictions provide income tax incentive grants, including Brazil, Costa Rica, Singapore and Swaziland. The terms of these grants expire from 2015 to 2020. We expect each of these grants to be renewed indefinitely. In addition, our effective tax rate reflects the benefits of having significant earnings generated in investments accounted for under the equity method of accounting, which are generally taxed at rates lower than the U.S. statutory rate. | |||||||||||||||||
At the end of each interim period, we make our best estimate of the effective tax rate expected to be applicable for the full fiscal year. This estimate reflects, among other items, our best estimate of operating results and foreign currency exchange rates. Based on current tax laws, the Company's estimated effective tax rate for 2013 is 23.0 percent. However, in arriving at this estimate we do not include the estimated impact of unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax expense and income before income taxes. | |||||||||||||||||
The Company recorded income tax expense of $925 million (27.4 percent effective tax rate) and $755 million (24.5 percent effective tax rate) during the three months ended September 27, 2013, and September 28, 2012, respectively. The Company recorded income tax expense of $2,331 million (25.2 percent effective tax rate) and $2,236 million (23.7 percent effective tax rate) during the nine months ended September 27, 2013, and September 28, 2012, respectively. The following table illustrates the tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented (in millions): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Asset impairments | $ | — | 1 | $ | — | $ | — | 1 | $ | — | |||||||
Productivity and reinvestment program | (37 | ) | 2 | (21 | ) | 9 | (115 | ) | 2 | (65 | ) | 9 | |||||
Other productivity, integration and restructuring initiatives | 1 | 3 | 4 | 10 | 2 | 3 | 5 | 10 | |||||||||
Transaction gains and losses | 255 | 4 | — | 303 | 7 | 33 | 11 | ||||||||||
Certain tax matters | (20 | ) | 5 | 7 | 12 | (20 | ) | 5 | (26 | ) | 14 | ||||||
Other — net | 4 | 6 | (4 | ) | 13 | — | 8 | (18 | ) | 15 | |||||||
1 | Related to charges of $190 million due to the impairment of certain of the Company's intangible assets. Refer to Note 10 and Note 14. | ||||||||||||||||
2 | Related to charges of $97 million and $312 million during the three and nine months ended September 27, 2013, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
3 | Related to net charges of $43 million and $82 million during the three and nine months ended September 27, 2013, respectively. These charges were primarily due to the Company's other restructuring initiatives that are outside the scope of the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
4 | Related to a net gain of $585 million consisting of the following items: a gain of $615 million due to the deconsolidation of our Brazilian bottling operations upon their combination with an independent bottler; a gain of $30 million due to the merger of four of the Company's Japanese bottling partners; and charges of $60 million due to the deferral of revenue and corresponding gross profit associated with the intercompany portion of our concentrate sales to CCEJ and the newly combined Brazilian bottling operations until the finished beverage products made from those concentrates are sold to a third party. Refer to Note 2, Note 10 and Note 14. | ||||||||||||||||
5 | Related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. | ||||||||||||||||
6 | Related to a net charge of $3 million that consisted of a charge of $11 million associated with certain of the Company's fixed assets, partially offset by a net gain of $8 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | ||||||||||||||||
7 | Related to a net gain of $574 million that primarily consisted of the following items: a gain of $615 million related to the deconsolidation of our Brazilian bottling operations upon their combination with an independent bottler; a gain of $139 million the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment; a net loss of $114 million due to the merger of four of the Company's Japanese bottling partners; and charges of $60 million due to the deferral of revenue and corresponding gross profit associated with the intercompany portion of our concentrate sales to CCEJ and the newly combined Brazilian bottling operations until the finished beverage products made from those concentrates are sold to a third party. Refer to Note 2, Note 10 and Note 14. | ||||||||||||||||
8 | Related to charges of $205 million that primarily consisted of the following items: a charge of $23 million due to the early extinguishment of certain long-term debt; a charge of $149 million due to the devaluation of the Venezuelan bolivar; a net charge of $25 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees; and a charge of $11 million associated with certain of the Company's fixed assets. Refer to Note 6 and Note 10. | ||||||||||||||||
9 | Related to charges of $59 million and $177 million during the three and nine months ended September 28, 2012, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
10 | Related to charges of $3 million and $30 million during the three and nine months ended September 28, 2012, respectively. These charges were primarily due to the Company's other restructuring initiatives that are outside the scope of the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
11 | Related to a gain of $92 million the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. Refer to Note 10 and Note 14. | ||||||||||||||||
12 | Related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. | ||||||||||||||||
13 | Related to a charge of $19 million that consisted of a net charge of $10 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees and a charge of $9 million associated with the Company's orange juice supply in the United States. Refer to Note 10. | ||||||||||||||||
14 | Related to a net tax benefit primarily associated with the reversal of valuation allowances in the Company's foreign jurisdictions, partially offset by amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. | ||||||||||||||||
15 | Related to a net charge of $22 million that consisted of the following items: a charge of $20 million due to changes in the Company's ready-to-drink tea strategy as a result of our U.S. license agreement with Nestlé terminating at the end of 2012; a charge of $14 million due to changes in the structure of BPW; and a charge of $21 million associated with the Company's orange juice supply in the United States. These charges were partially offset by a net gain of $33 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS | |||||||||||||||||
Accounting principles generally accepted in the United States define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | ||||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
• | Level 2 — Observable inputs other than quoted prices included in Level 1. We value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | |||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||||
In accordance with accounting principles generally accepted in the United States, certain assets and liabilities are required to be recorded at fair value on a recurring basis. For our Company, the only assets and liabilities that are adjusted to fair value on a recurring basis are investments in equity and debt securities classified as trading or available-for-sale and derivative financial instruments. Additionally, the Company adjusts the fair value of long-term debt as a result of the Company's fair value hedging strategy. | ||||||||||||||||||
Investments in Trading and Available-for-Sale Securities | ||||||||||||||||||
The fair values of our investments in trading and available-for-sale securities using quoted market prices from daily exchange traded markets are based on the closing price as of the balance sheet date and are classified as Level 1. The fair values of our investments in trading and available-for-sale securities classified as Level 2 are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. Inputs into these valuation techniques include actual trade data, benchmark yields, broker/dealer quotes, and other similar data. These inputs are obtained from quoted market prices, independent pricing vendors or other sources. | ||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||
Derivatives classified as Level 1 consist of exchange-traded futures and listed options. The fair values of these instruments are based on quoted market prices on exchange markets. | ||||||||||||||||||
The fair values of our derivative instruments other than exchange-traded contracts are determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and therefore have been classified as Level 2. Inputs used in these standard valuation models for derivative instruments other than futures include the applicable exchange rates, forward rates, interest rates and discount rates. The standard valuation model for options also uses implied volatility as an additional input. The discount rates are based on the historical U.S. Deposit or U.S. Treasury rates, and the implied volatility specific to options is based on quoted rates from financial institutions. | ||||||||||||||||||
Included in the fair value of derivative instruments is an adjustment for nonperformance risk. The adjustment is based on the current one-year credit default swap ("CDS") rate applied to each contract, by counterparty. We use our counterparty's CDS rate when we are in an asset position and our own CDS rate when we are in a liability position. The adjustment for nonperformance risk did not have a significant impact on the estimated fair value of our derivative instruments. The following table summarizes those assets and liabilities measured at fair value on a recurring basis as of September 27, 2013 (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets | ||||||||||||||||||
Trading securities2 | $ | 139 | $ | 172 | $ | 3 | $ | — | $ | 314 | ||||||||
Available-for-sale securities2 | 1,357 | 3,216 | 114 | 3 | — | 4,687 | ||||||||||||
Derivatives4 | 20 | 729 | — | (144 | ) | 605 | 5 | |||||||||||
Total assets | $ | 1,516 | $ | 4,117 | $ | 117 | $ | (144 | ) | $ | 5,606 | |||||||
Liabilities | ||||||||||||||||||
Derivatives4 | $ | 5 | $ | 162 | $ | — | $ | (145 | ) | $ | 22 | 5 | ||||||
Total liabilities | $ | 5 | $ | 162 | $ | — | $ | (145 | ) | $ | 22 | |||||||
1 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. | ||||||||||||||||||
2 | Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. | |||||||||||||||||
3 Primarily related to long-term debt securities that mature in 2018. | ||||||||||||||||||
4 Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
5 The Company's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $103 million in the line item prepaid expenses and other assets; $502 million in the line item other assets; $8 million in the line item accounts payable and accrued expenses; and $14 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
The following table summarizes those assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets | ||||||||||||||||||
Trading securities2 | $ | 146 | $ | 116 | $ | 4 | $ | — | $ | 266 | ||||||||
Available-for-sale securities2 | 1,390 | 3,068 | 135 | 3 | — | 4,593 | ||||||||||||
Derivatives4 | 47 | 583 | — | (116 | ) | 514 | 5 | |||||||||||
Total assets | $ | 1,583 | $ | 3,767 | $ | 139 | $ | (116 | ) | $ | 5,373 | |||||||
Liabilities | ||||||||||||||||||
Derivatives4 | $ | 35 | $ | 98 | $ | — | $ | (121 | ) | $ | 12 | 5 | ||||||
Total liabilities | $ | 35 | $ | 98 | $ | — | $ | (121 | ) | $ | 12 | |||||||
1 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. | ||||||||||||||||||
2 | Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. | |||||||||||||||||
3 Primarily related to long-term debt securities that mature in 2018. | ||||||||||||||||||
4 Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
5 The Company's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $137 million in the line item prepaid expenses and other assets; $377 million in the line item other assets; $4 million in the line item accounts payable and accrued expenses; and $8 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
Gross realized and unrealized gains and losses on Level 3 assets and liabilities were not significant for the three and nine months ended September 27, 2013, and September 28, 2012. | ||||||||||||||||||
The Company recognizes transfers between levels within the hierarchy as of the beginning of the reporting period. Gross transfers between levels within the hierarchy were not significant for the three and nine months ended September 27, 2013, and September 28, 2012. | ||||||||||||||||||
Nonrecurring Fair Value Measurements | ||||||||||||||||||
In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records assets and liabilities at fair value on a nonrecurring basis as required by accounting principles generally accepted in the United States. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. The gains or losses on assets measured at fair value on a nonrecurring basis for the three and nine months ended September 27, 2013, and September 28, 2012, are summarized in the table below (in millions): | ||||||||||||||||||
Gains (Losses) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Intangible assets | $ | (190 | ) | 1 | $ | — | $ | (190 | ) | 1 | $ | — | ||||||
Valuation of shares in equity method investee | — | — | 139 | 3 | 92 | 3 | ||||||||||||
Exchange of investment in equity securities | 30 | 2 | — | (114 | ) | 4 | — | |||||||||||
Total | $ | (160 | ) | $ | — | $ | (165 | ) | $ | 92 | ||||||||
1 | The Company recognized a loss of $190 million due to impairment charges on certain intangible assets. The charges were primarily determined by comparing the fair value of the assets to the current carrying value. The fair value of the assets was derived using discounted cash flow analyses based on Level 3 inputs. Refer to Note 10. | |||||||||||||||||
2 | The Company recognized a gain of $30 million on the exchange of shares it previously owned in certain equity method investees for shares in CCEJ, a newly formed entity. The gain represents the difference between the carrying value of the shares the Company relinquished and the fair value of the CCEJ shares received as a result of the transaction. The gain and the initial carrying value of the Company's investment were calculated based on Level 1 inputs. The Company accounts for its investment in CCEJ under the equity method of accounting. Refer to Note 10. | |||||||||||||||||
3 | The Company recognized a gain of $139 million and $92 million during the nine months ended September 27, 2013, and September 28, 2012, respectively. These gains resulted from Coca-Cola FEMSA issuing additional shares of its own stock at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment in Coca-Cola FEMSA. These gains were determined using Level 1 inputs. Refer to Note 10. | |||||||||||||||||
4 | The Company recognized a net loss of $114 million on the exchange of shares it previously owned in certain equity method investees for shares in the newly formed entity CCEJ. CCEJ is also an equity method investee. The net loss represents the difference between the carrying value of the shares the Company relinquished and the fair value of the CCEJ shares received as a result of the transaction. The net loss and the initial carrying value of the Company's investment were calculated based on Level 1 inputs. Refer to Note 10. | |||||||||||||||||
Other Fair Value Disclosures | ||||||||||||||||||
The carrying amounts of cash and cash equivalents; short-term investments; receivables; accounts payable and accrued expenses; and loans and notes payable approximate their fair values because of the relatively short-term maturities of these instruments. | ||||||||||||||||||
The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for those or similar instruments. As of September 27, 2013, the carrying amount and fair value of our long-term debt, including the current portion, were $17,367 million and $17,764 million, respectively. As of December 31, 2012, the carrying amount and fair value of our long-term debt, including the current portion, were $16,313 million and $17,157 million, respectively. |
Operating_Segments
Operating Segments | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||||||||
Operating Segments | ||||||||||||||||||||||||||||
Operating Segments | OPERATING SEGMENTS | |||||||||||||||||||||||||||
Effective January 1, 2013, the Company transferred our India and South West Asia business unit from the Eurasia and Africa operating segment to the Pacific operating segment. Accordingly, all prior period segment information presented herein has been adjusted to reflect this change in our organizational structure. | ||||||||||||||||||||||||||||
Information about our Company's operations as of and for the three months ended September 27, 2013, and September 28, 2012, by operating segment, is as follows (in millions): | ||||||||||||||||||||||||||||
Eurasia | Europe | Latin | North | Pacific | Bottling | Corporate | Eliminations | Consolidated | ||||||||||||||||||||
& Africa | America | America | Investments | |||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 669 | $ | 1,232 | $ | 1,208 | $ | 5,715 | $ | 1,368 | $ | 1,811 | $ | 27 | $ | — | $ | 12,030 | ||||||||||
Intersegment | — | 188 | 22 | 4 | 128 | 21 | — | (363 | ) | — | ||||||||||||||||||
Total net revenues | 669 | 1,420 | 1,230 | 5,719 | 1,496 | 1,832 | 27 | (363 | ) | 12,030 | ||||||||||||||||||
Operating income (loss) | 231 | 742 | 720 | 803 | 575 | 22 | (621 | ) | — | 2,472 | ||||||||||||||||||
Income (loss) before income taxes | 228 | 755 | 719 | 805 | 585 | 214 | 74 | — | 3,380 | |||||||||||||||||||
Identifiable operating assets | 1,340 | 3,567 | 2,672 | 34,278 | 1,848 | 6,836 | 27,356 | — | 77,897 | |||||||||||||||||||
Noncurrent investments | 1,160 | 104 | 525 | 44 | 140 | 9,486 | 76 | — | 11,535 | |||||||||||||||||||
2012 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 698 | $ | 1,124 | $ | 1,171 | $ | 5,669 | $ | 1,470 | $ | 2,182 | $ | 26 | $ | — | $ | 12,340 | ||||||||||
Intersegment | — | 165 | 55 | 1 | 176 | 26 | — | (423 | ) | — | ||||||||||||||||||
Total net revenues | 698 | 1,289 | 1,226 | 5,670 | 1,646 | 2,208 | 26 | (423 | ) | 12,340 | ||||||||||||||||||
Operating income (loss) | 244 | 698 | 734 | 832 | 613 | 44 | (372 | ) | — | 2,793 | ||||||||||||||||||
Income (loss) before income taxes | 248 | 716 | 734 | 838 | 616 | 269 | (337 | ) | — | 3,084 | ||||||||||||||||||
Identifiable operating assets | 1,373 | 3,012 | 2,576 | 33,906 | 2,303 | 9,374 | 23,960 | — | 76,504 | |||||||||||||||||||
Noncurrent investments | 1,143 | 275 | 556 | 21 | 126 | 7,953 | 76 | — | 10,150 | |||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Identifiable operating assets | $ | 1,299 | $ | 2,976 | $ | 2,759 | $ | 34,114 | $ | 2,163 | $ | 9,648 | $ | 22,767 | $ | — | $ | 75,726 | ||||||||||
Noncurrent investments | 1,155 | 271 | 539 | 39 | 127 | 8,253 | 64 | — | 10,448 | |||||||||||||||||||
During the three months ended September 27, 2013, the results of our operating segments were impacted by the following items: | ||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, $53 million for North America, $2 million for Pacific, $45 million for Bottling Investments and $41 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $2 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Refer to Note 10 and Note 11. | |||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $615 million for Corporate due to a gain the Company recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. Refer to Note 2 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $30 million for Corporate due to a gain recognized on the merger of four of the Company's Japanese bottling partners in which we held equity method investments prior to their merger. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by a net $8 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | |||||||||||||||||||||||||||
During the three months ended September 28, 2012, the results of our operating segments were impacted by the following items: | ||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $48 million for North America, $1 million for Pacific, $14 million for Bottling Investments and $10 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $1 million for Pacific and $5 million for Corporate due to the refinement of previously established accruals related to the Company's 2008–2011 productivity initiatives. Operating income (loss) and income (loss) before income taxes were increased by $5 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Refer to Note 10 and Note 11. | |||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $9 million for North America due to costs associated with the Company detecting residues of carbendazim, a fungicide that is not registered in the United States for use on citrus products, in orange juice imported from Brazil for distribution in the United States. Refer to Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $1 million for Latin America, $1 million for North America, $2 million for Pacific and was increased by $1 million for Eurasia and Africa and $3 million for Europe due to changes in the structure of BPW, our 50/50 joint venture with Nestlé in the ready-to-drink tea category. Refer to Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by a net $10 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | |||||||||||||||||||||||||||
Information about our Company's operations as of and for the nine months ended September 27, 2013, and September 28, 2012, by operating segment, is as follows (in millions): | ||||||||||||||||||||||||||||
Eurasia | Europe | Latin | North | Pacific | Bottling | Corporate | Eliminations | Consolidated | ||||||||||||||||||||
& Africa | America | America | Investments | |||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 2,103 | $ | 3,545 | $ | 3,504 | $ | 16,306 | $ | 4,185 | $ | 6,047 | $ | 124 | $ | — | $ | 35,814 | ||||||||||
Intersegment | — | 520 | 169 | 13 | 431 | 61 | — | (1,194 | ) | — | ||||||||||||||||||
Total net revenues | 2,103 | 4,065 | 3,673 | 16,319 | 4,616 | 6,108 | 124 | (1,194 | ) | 35,814 | ||||||||||||||||||
Operating income (loss) | 845 | 2,261 | 2,209 | 1,875 | 2,024 | 186 | (1,277 | ) | — | 8,123 | ||||||||||||||||||
Income (loss) before income taxes | 868 | 2,318 | 2,213 | 1,879 | 2,042 | 677 | (748 | ) | — | 9,249 | ||||||||||||||||||
2012 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 2,041 | $ | 3,492 | $ | 3,381 | $ | 16,375 | $ | 4,423 | $ | 6,742 | $ | 108 | $ | — | $ | 36,562 | ||||||||||
Intersegment | — | 488 | 176 | 13 | 498 | 66 | — | (1,241 | ) | — | ||||||||||||||||||
Total net revenues | 2,041 | 3,980 | 3,557 | 16,388 | 4,921 | 6,808 | 108 | (1,241 | ) | 36,562 | ||||||||||||||||||
Operating income (loss) | 806 | 2,290 | 2,164 | 2,039 | 2,089 | 169 | (961 | ) | — | 8,596 | ||||||||||||||||||
Income (loss) before income taxes | 821 | 2,340 | 2,164 | 2,066 | 2,088 | 750 | (797 | ) | — | 9,432 | ||||||||||||||||||
During the nine months ended September 27, 2013, the results of our operating segments were impacted by the following items: | ||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $7 million for Europe, $190 million for North America, $16 million for Pacific, $86 million for Bottling Investments and $97 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $2 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Operating income (loss) and income (loss) before income taxes were increased by $1 million for Pacific and $1 million for Corporate due to the refinement of previously established accruals related to the Company's 2008–2011 productivity initiatives. Refer to Note 10 and Note 11. | |||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $615 million for Corporate due to a gain the Company recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. Refer to Note 2 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $9 million for Bottling Investments and $140 million for Corporate due to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method investee which has operations in Venezuela. Refer to Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $114 million for Corporate due to a loss related to the merger of four of the Company's Japanese bottling partners in which we held equity method investments prior to their merger. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $139 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock at a per share amount greater than the carrying value of the Company's per share investment. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by a net $25 million for Bottling Investments due to the Company’s proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $23 million for Corporate due to a charge the Company recognized as a result of the early extinguishment of certain long-term debt. Refer to Note 6. | |||||||||||||||||||||||||||
During the nine months ended September 28, 2012, the results of our operating segments were impacted by the following items: | ||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $157 million for North America, $1 million for Pacific, $45 million for Bottling Investments and $18 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $3 million for Europe, $1 million for Pacific and $5 million for Corporate due to the refinement of previously established accruals related to the Company's 2008–2011 productivity initiatives. Operating income (loss) and income (loss) before income taxes were increased by $5 million for North America due to the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Refer to Note 10 and Note 11. | |||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $21 million for North America due to costs associated with the Company detecting residues of carbendazim, a fungicide that is not registered in the United States for use on citrus products, in orange juice imported from Brazil for distribution in the United States. Refer to Note 10. | |||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $20 million for North America due to changes in the Company's ready-to-drink tea strategy as a result of our current U.S. license agreement with Nestlé terminating at the end of 2012. Refer to Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $92 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by a net $33 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $2 million for Eurasia and Africa, $3 million for Europe, $3 million for Latin America, $1 million for North America and $5 million for Pacific due to changes in the structure of BPW, our 50/50 joint venture with Nestlé in the ready-to-drink tea category. Refer to Note 10. |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 9 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Acquisition and Divestures [Abstract] | ||||||||||||
Disclosure of Assets and Liabilities Held-for-sale [Table Text Block] | The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our condensed consolidated balance sheet as of December 31, 2012 (in millions): | |||||||||||
December 31, 2012 | ||||||||||||
Brazilian | Philippine Bottling Operations | Total Bottling Operations | ||||||||||
Bottling Operations | Held for Sale as of December 31, 2012 | |||||||||||
Cash, cash equivalents and short-term investments | $ | 45 | $ | 133 | $ | 178 | ||||||
Trade accounts receivable, less allowances | 88 | 108 | 196 | |||||||||
Inventories | 85 | 187 | 272 | |||||||||
Prepaid expenses and other assets | 174 | 223 | 397 | |||||||||
Other assets | 128 | 7 | 135 | |||||||||
Property, plant and equipment — net | 419 | 841 | 1,260 | |||||||||
Bottlers' franchise rights with indefinite lives | 130 | 341 | 471 | |||||||||
Goodwill | 22 | 148 | 170 | |||||||||
Other intangible assets | 1 | — | 1 | |||||||||
Allowance for reduction of assets held for sale | — | (107 | ) | (107 | ) | |||||||
Total assets1 | $ | 1,092 | $ | 1,881 | $ | 2,973 | ||||||
Accounts payable and accrued expenses | $ | 157 | $ | 241 | $ | 398 | ||||||
Loans and notes payable | 6 | — | 6 | |||||||||
Current maturities of long-term debt | 28 | — | 28 | |||||||||
Accrued income taxes | 4 | (4 | ) | — | ||||||||
Long-term debt | 147 | — | 147 | |||||||||
Other liabilities | 75 | 20 | 95 | |||||||||
Deferred income taxes | 20 | 102 | 122 | |||||||||
Total liabilities1 | $ | 437 | $ | 359 | $ | 796 | ||||||
1 | The assets and liabilities of our Philippine and Brazilian bottling operations were included in our Bottling Investments operating segment during the period(s) in which they were consolidated entities of the Company. Refer to Note 15. |
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Investments [Abstracts] | ||||||||||||||
Schedule of trading securities | The Company's trading securities were included in the following line items in our condensed consolidated balance sheets (in millions): | |||||||||||||
September 27, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Marketable securities | $ | 231 | $ | 184 | ||||||||||
Other assets | 83 | 82 | ||||||||||||
Total trading securities | $ | 314 | $ | 266 | ||||||||||
Certain Debt and Marketable Equity Securities, Available-for-Sale and Held-To-Maturity Securities, Value and Maturities | As of September 27, 2013, available-for-sale securities consisted of the following (in millions): | |||||||||||||
Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Available-for-sale securities:1 | ||||||||||||||
Equity securities | $ | 983 | $ | 389 | $ | (15 | ) | $ | 1,357 | |||||
Debt securities | 3,343 | 21 | (34 | ) | 3,330 | |||||||||
Total available-for-sale securities | $ | 4,326 | $ | 410 | $ | (49 | ) | $ | 4,687 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
As of December 31, 2012, available-for-sale securities consisted of the following (in millions): | ||||||||||||||
Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Available-for-sale securities:1 | ||||||||||||||
Equity securities | $ | 957 | $ | 441 | $ | (10 | ) | $ | 1,388 | |||||
Debt securities | 3,169 | 46 | (10 | ) | 3,205 | |||||||||
Total available-for-sale securities | $ | 4,126 | $ | 487 | $ | (20 | ) | $ | 4,593 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
Schedule of Realized Gain (Loss) [Table Text Block] | The sale and/or maturity of available-for-sale securities resulted in the following realized activity during the three and nine months ended September 27, 2013, and September 28, 2012 (in millions): | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Gross gains | $ | 2 | $ | 22 | $ | 10 | $ | 34 | ||||||
Gross losses | (9 | ) | (26 | ) | (19 | ) | (28 | ) | ||||||
Proceeds | 1,091 | 1,256 | 3,349 | 4,098 | ||||||||||
Investments by Balance Sheet Grouping | The Company's available-for-sale securities were included in the following line items in our condensed consolidated balance sheets (in millions): | |||||||||||||
September 27, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
Cash and cash equivalents | $ | 76 | $ | 9 | ||||||||||
Marketable securities | 2,971 | 2,908 | ||||||||||||
Other investments, principally bottling companies | 993 | 1,087 | ||||||||||||
Other assets | 647 | 589 | ||||||||||||
Total available-for-sale securities | $ | 4,687 | $ | 4,593 | ||||||||||
Contractual maturity amounts of the investment securities | The contractual maturities of these available-for-sale securities as of September 27, 2013, were as follows (in millions): | |||||||||||||
Cost | Fair Value | |||||||||||||
Within 1 year | $ | 1,285 | $ | 1,267 | ||||||||||
After 1 year through 5 years | 1,574 | 1,580 | ||||||||||||
After 5 years through 10 years | 149 | 153 | ||||||||||||
After 10 years | 335 | 330 | ||||||||||||
Equity securities | 983 | 1,357 | ||||||||||||
Total available-for-sale securities | $ | 4,326 | $ | 4,687 | ||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||
Sep. 27, 2013 | |||||||
Inventories | |||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following (in millions): | ||||||
September 27, | December 31, | ||||||
2013 | 2012 | ||||||
Raw materials and packaging | $ | 1,683 | $ | 1,773 | |||
Finished goods | 1,297 | 1,171 | |||||
Other | 341 | 320 | |||||
Total inventories | $ | 3,321 | $ | 3,264 | |||
Hedging_Transactions_and_Deriv1
Hedging Transactions and Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Hedging Transactions and Derivative Financial Instruments | ||||||||||||||
Derivative instruments, fair value, designated as hedging instruments | The following table presents the fair values of the Company's derivative instruments that were designated and qualified as part of a hedging relationship (in millions): | |||||||||||||
Fair Value1,2 | ||||||||||||||
Derivatives Designated as | Balance Sheet Location1 | September 27, | December 31, 2012 | |||||||||||
Hedging Instruments | 2013 | |||||||||||||
Assets | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 146 | $ | 149 | |||||||||
Foreign currency contracts | Other assets | 39 | — | |||||||||||
Interest rate contracts | Prepaid expenses and other assets | 47 | 7 | |||||||||||
Interest rate contracts | Other assets | 299 | 335 | |||||||||||
Total assets | $ | 531 | $ | 491 | ||||||||||
Liabilities | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 102 | $ | 55 | |||||||||
Foreign currency contracts | Other liabilities | 17 | — | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 1 | 1 | |||||||||||
Interest rate contracts | Other liabilities | — | 6 | |||||||||||
Total liabilities | $ | 120 | $ | 62 | ||||||||||
1 All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table presents the fair values of the Company's derivative instruments that were not designated as hedging instruments (in millions): | |||||||||||||
Fair Value1,2 | ||||||||||||||
Derivatives Not Designated as | Balance Sheet Location1 | September 27, | December 31, 2012 | |||||||||||
Hedging Instruments | 2013 | |||||||||||||
Assets | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 21 | $ | 19 | |||||||||
Foreign currency contracts | Other assets | 164 | 42 | |||||||||||
Commodity contracts | Prepaid expenses and other assets | 31 | 72 | |||||||||||
Other derivative instruments | Prepaid expenses and other assets | 2 | 6 | |||||||||||
Total assets | $ | 218 | $ | 139 | ||||||||||
Liabilities | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 27 | $ | 24 | |||||||||
Foreign currency contracts | Other liabilities | — | 1 | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 14 | 43 | |||||||||||
Commodity contracts | Other liabilities | 1 | 1 | |||||||||||
Interest rate contracts | Other liabilities | 3 | — | |||||||||||
Other derivative instruments | Accounts payable and accrued expenses | 2 | 2 | |||||||||||
Total liabilities | $ | 47 | $ | 71 | ||||||||||
1 All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
Derivative instruments, designated as hedging instruments, gain (loss) in statement of financial performance | The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the three months ended September 27, 2013 (in millions): | |||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in Other | AOCI into Income | (Ineffective Portion and | ||||||||||||
Comprehensive | (Effective Portion) | Amount Excluded from | ||||||||||||
Income ("OCI") | Effectiveness Testing) | |||||||||||||
Foreign currency contracts | $ | (70 | ) | Net operating revenues | $ | 53 | $ | — | ||||||
Foreign currency contracts | (4 | ) | Cost of goods sold | 11 | — | |||||||||
Interest rate contracts | 4 | Interest expense | (3 | ) | — | |||||||||
Commodity contracts | — | Cost of goods sold | (1 | ) | — | |||||||||
Total | $ | (70 | ) | $ | 60 | $ | — | |||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the nine months ended September 27, 2013 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in OCI | AOCI into Income | (Ineffective Portion and | ||||||||||||
(Effective Portion) | Amount Excluded from | |||||||||||||
Effectiveness Testing) | ||||||||||||||
Foreign currency contracts | $ | 150 | Net operating revenues | $ | 123 | $ | 1 | |||||||
Foreign currency contracts | 31 | Cost of goods sold | 21 | — | ||||||||||
Interest rate contracts | 155 | Interest expense | (9 | ) | — | 2 | ||||||||
Commodity contracts | 1 | Cost of goods sold | (2 | ) | — | |||||||||
Total | $ | 337 | $ | 133 | $ | 1 | ||||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
2 Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the three months ended September 28, 2012 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in OCI | AOCI into Income | (Ineffective Portion and | ||||||||||||
(Effective Portion) | Amount Excluded from | |||||||||||||
Effectiveness Testing) | ||||||||||||||
Foreign currency contracts | $ | (82 | ) | Net operating revenues | $ | (6 | ) | $ | — | 2 | ||||
Foreign currency contracts | (7 | ) | Cost of goods sold | (4 | ) | — | ||||||||
Interest rate contracts | (11 | ) | Interest expense | (3 | ) | — | ||||||||
Commodity contracts | — | Cost of goods sold | — | — | ||||||||||
Total | $ | (100 | ) | $ | (13 | ) | $ | — | ||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
2 Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the nine months ended September 28, 2012 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in OCI | AOCI into Income | (Ineffective Portion and | ||||||||||||
(Effective Portion) | Amount Excluded from | |||||||||||||
Effectiveness Testing) | ||||||||||||||
Foreign currency contracts | $ | (11 | ) | Net operating revenues | $ | (32 | ) | $ | 2 | |||||
Foreign currency contracts | 5 | Cost of goods sold | (16 | ) | — | |||||||||
Interest rate contracts | (11 | ) | Interest expense | (9 | ) | — | ||||||||
Commodity contracts | (4 | ) | Cost of goods sold | — | — | |||||||||
Total | $ | (21 | ) | $ | (57 | ) | $ | 2 | ||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
Derivative instruments, fair value hedges, gain (loss) recognized in income | The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings during the three months ended September 27, 2013, and September 28, 2012 (in millions): | |||||||||||||
Fair Value Hedging Instruments | Location of Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized in Income | Recognized in Income | |||||||||||||
September 27, | September 28, | |||||||||||||
2013 | 2012 | |||||||||||||
Interest rate swaps | Interest expense | $ | 4 | $ | 42 | |||||||||
Fixed-rate debt | Interest expense | 5 | (30 | ) | ||||||||||
Net impact to interest expense | $ | 9 | $ | 12 | ||||||||||
Foreign currency contracts | Other income (loss) — net | $ | 39 | $ | 8 | |||||||||
Available-for-sale securities | Other income (loss) — net | (45 | ) | (5 | ) | |||||||||
Net impact to other income (loss) — net | $ | (6 | ) | $ | 3 | |||||||||
Net impact of fair value hedging instruments | $ | 3 | $ | 15 | ||||||||||
The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings during the nine months ended September 27, 2013, and September 28, 2012 (in millions): | ||||||||||||||
Fair Value Hedging Instruments | Location of Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized in Income | Recognized in Income | |||||||||||||
September 27, | September 28, | |||||||||||||
2013 | 2012 | |||||||||||||
Interest rate swaps | Interest expense | $ | (147 | ) | $ | 111 | ||||||||
Fixed-rate debt | Interest expense | 181 | (81 | ) | ||||||||||
Net impact to interest expense | $ | 34 | $ | 30 | ||||||||||
Foreign currency contracts | Other income (loss) — net | $ | 32 | $ | 23 | |||||||||
Available-for-sale securities | Other income (loss) — net | (47 | ) | (21 | ) | |||||||||
Net impact to other income (loss) — net | $ | (15 | ) | $ | 2 | |||||||||
Net impact of fair value hedging instruments | $ | 19 | $ | 32 | ||||||||||
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the pretax impact that changes in the fair values of derivatives designated as net investment hedges had on AOCI during the three and nine months ended September 27, 2013, and September 28, 2012 (in millions): | |||||||||||||
Gain (Loss) Recognized in OCI | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Foreign currency contracts | $ | (22 | ) | $ | (100 | ) | $ | 8 | $ | (58 | ) | |||
Schedule of Derivative Instruments Not Designated as Hedging Instruments Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the three and nine months ended September 27, 2013, and September 28, 2012, respectively (in millions): | |||||||||||||
Three Months Ended | ||||||||||||||
Derivatives Not Designated | Location of Gain (Loss) | September 27, | September 28, | |||||||||||
as Hedging Instruments | Recognized in Income | 2013 | 2012 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | (2 | ) | $ | (2 | ) | |||||||
Foreign currency contracts | Other income (loss) — net | 47 | 18 | |||||||||||
Foreign currency contracts | Cost of goods sold | 2 | (3 | ) | ||||||||||
Interest rate contracts | Interest expense | — | — | |||||||||||
Commodity contracts | Net operating revenues | 2 | 5 | |||||||||||
Commodity contracts | Cost of goods sold | (3 | ) | 25 | ||||||||||
Commodity contracts | Selling, general and administrative expenses | 3 | 19 | |||||||||||
Other derivative instruments | Selling, general and administrative expenses | 9 | 3 | |||||||||||
Total | $ | 58 | $ | 65 | ||||||||||
Nine Months Ended | ||||||||||||||
Derivatives Not Designated | Location of Gain (Loss) | September 27, | September 28, | |||||||||||
as Hedging Instruments | Recognized in Income | 2013 | 2012 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | 2 | $ | (5 | ) | ||||||||
Foreign currency contracts | Other income (loss) — net | 120 | (54 | ) | ||||||||||
Foreign currency contracts | Cost of goods sold | 2 | — | |||||||||||
Interest rate contracts | Interest expense | (3 | ) | — | ||||||||||
Commodity contracts | Net operating revenues | 1 | 5 | |||||||||||
Commodity contracts | Cost of goods sold | (147 | ) | (19 | ) | |||||||||
Commodity contracts | Selling, general and administrative expenses | 1 | 12 | |||||||||||
Other derivative instruments | Selling, general and administrative expenses | 33 | 21 | |||||||||||
Total | $ | 9 | $ | (40 | ) | |||||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 9 Months Ended | |||||||||||
Sep. 27, 2013 | ||||||||||||
Comprehensive Income | ||||||||||||
Comprehensive Income (Loss), Apportioned between Shareowners of the Coca-Cola Company and Noncontrolling Interests [Text Block] | The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions): | |||||||||||
Nine Months Ended September 27, 2013 | ||||||||||||
Shareowners of | Noncontrolling | Total | ||||||||||
The Coca-Cola Company | Interests | |||||||||||
Consolidated net income | $ | 6,874 | $ | 44 | $ | 6,918 | ||||||
Other comprehensive income: | ||||||||||||
Net foreign currency translation adjustment | (1,475 | ) | 28 | (1,447 | ) | |||||||
Net gain (loss) on derivatives1 | 122 | — | 122 | |||||||||
Net unrealized gain (loss) on available-for-sale securities2 | (66 | ) | — | (66 | ) | |||||||
Net change in pension and other benefit liabilities | 105 | — | 105 | |||||||||
Total comprehensive income | $ | 5,560 | $ | 72 | $ | 5,632 | ||||||
1 Refer to Note 5 for information related to the net gain or loss on derivative instruments classified as cash flow hedges. | ||||||||||||
2 Refer to Note 3 for information related to the net unrealized gain or loss on available-for-sale securities. | ||||||||||||
OCI attributable to the shareowners of The Coca-Cola Company | The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI (in millions): | |||||||||||
Three Months Ended September 27, 2013 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (639 | ) | $ | 144 | $ | (495 | ) | ||||
Reclassification adjustments recognized in net income | 26 | — | 26 | |||||||||
Net foreign currency translation adjustments | (613 | ) | 144 | (469 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | (69 | ) | 25 | (44 | ) | |||||||
Reclassification adjustments recognized in net income | (60 | ) | 22 | (38 | ) | |||||||
Net gain (loss) on derivatives1 | (129 | ) | 47 | (82 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | (152 | ) | 53 | (99 | ) | |||||||
Reclassification adjustments recognized in net income | 7 | — | 7 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | (145 | ) | 53 | (92 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | (5 | ) | — | (5 | ) | |||||||
Reclassification adjustments recognized in net income | 49 | (17 | ) | 32 | ||||||||
Net change in pension and other benefit liabilities3 | 44 | (17 | ) | 27 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (843 | ) | $ | 227 | $ | (616 | ) | ||||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Nine Months Ended September 27, 2013 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (1,318 | ) | $ | 37 | $ | (1,281 | ) | ||||
Reclassification adjustments recognized in net income | (194 | ) | — | (194 | ) | |||||||
Net foreign currency translation adjustments | (1,512 | ) | 37 | (1,475 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | 333 | (128 | ) | 205 | ||||||||
Reclassification adjustments recognized in net income | (133 | ) | 50 | (83 | ) | |||||||
Net gain (loss) on derivatives1 | 200 | (78 | ) | 122 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | (108 | ) | 33 | (75 | ) | |||||||
Reclassification adjustments recognized in net income | 9 | — | 9 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | (99 | ) | 33 | (66 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | 20 | (9 | ) | 11 | ||||||||
Reclassification adjustments recognized in net income | 147 | (53 | ) | 94 | ||||||||
Net change in pension and other benefit liabilities3 | 167 | (62 | ) | 105 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (1,244 | ) | $ | (70 | ) | $ | (1,314 | ) | |||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Three Months Ended September 28, 2012 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | 236 | $ | 47 | $ | 283 | ||||||
Reclassification adjustments recognized in net income | — | — | — | |||||||||
Net foreign currency translation adjustments | 236 | 47 | 283 | |||||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | (101 | ) | 45 | (56 | ) | |||||||
Reclassification adjustments recognized in net income | 13 | (5 | ) | 8 | ||||||||
Net gain (loss) on derivatives1 | (88 | ) | 40 | (48 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | 248 | (70 | ) | 178 | ||||||||
Reclassification adjustments recognized in net income | 4 | — | 4 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 252 | (70 | ) | 182 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | (5 | ) | 2 | (3 | ) | |||||||
Reclassification adjustments recognized in net income | 22 | (8 | ) | 14 | ||||||||
Net change in pension and other benefit liabilities3 | 17 | (6 | ) | 11 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | 417 | $ | 11 | $ | 428 | ||||||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Nine Months Ended September 28, 2012 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (571 | ) | $ | 16 | $ | (555 | ) | ||||
Reclassification adjustments recognized in net income | 7 | — | 7 | |||||||||
Net foreign currency translation adjustments | (564 | ) | 16 | (548 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | (39 | ) | 15 | (24 | ) | |||||||
Reclassification adjustments recognized in net income | 57 | (22 | ) | 35 | ||||||||
Net gain (loss) on derivatives1 | 18 | (7 | ) | 11 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | 516 | (162 | ) | 354 | ||||||||
Reclassification adjustments recognized in net income | (6 | ) | — | (6 | ) | |||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 510 | (162 | ) | 348 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | (22 | ) | 2 | (20 | ) | |||||||
Reclassification adjustments recognized in net income | 66 | (24 | ) | 42 | ||||||||
Net change in pension and other benefit liabilities3 | 44 | (22 | ) | 22 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | 8 | $ | (175 | ) | $ | (167 | ) | ||||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Income statement location of adjustments reclassified form AOCI into income | The following table presents the amounts and line items in our condensed consolidated statements of income where adjustments reclassified from AOCI into income were recorded during the three and nine months ended September 27, 2013 (in millions): | |||||||||||
Amount Reclassified from | ||||||||||||
AOCI into Income | ||||||||||||
Description of AOCI Component | Location of Gain (Loss) | Three Months Ended September 27, 2013 | Nine Months Ended September 27, 2013 | |||||||||
Recognized in Income | ||||||||||||
Foreign currency translation adjustments: | ||||||||||||
Divestitures, deconsolidations and other | Other income (loss) — net | $ | 26 | $ | (194 | ) | 1 | |||||
Income before income taxes | $ | 26 | $ | (194 | ) | |||||||
Income taxes | — | — | ||||||||||
Consolidated net income | $ | 26 | $ | (194 | ) | |||||||
Derivatives: | ||||||||||||
Foreign currency contracts | Net operating revenues | $ | (53 | ) | $ | (123 | ) | |||||
Foreign currency contracts | Cost of goods sold | (10 | ) | (19 | ) | |||||||
Interest rate contracts | Interest expense | 3 | 9 | |||||||||
Income before income taxes | $ | (60 | ) | $ | (133 | ) | ||||||
Income taxes | 22 | 50 | ||||||||||
Consolidated net income | $ | (38 | ) | $ | (83 | ) | ||||||
Available-for-sale securities: | ||||||||||||
Sale of securities | Other income (loss) — net | $ | 7 | $ | 9 | |||||||
Income before income taxes | $ | 7 | $ | 9 | ||||||||
Income taxes | — | — | ||||||||||
Consolidated net income | $ | 7 | $ | 9 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Insignificant items | Other income (loss) — net | $ | — | $ | (1 | ) | ||||||
Amortization of net actuarial loss | * | 53 | 158 | |||||||||
Amortization of prior service cost (credit) | * | (4 | ) | (10 | ) | |||||||
Income before income taxes | $ | 49 | $ | 147 | ||||||||
Income taxes | (17 | ) | (53 | ) | ||||||||
Consolidated net income | $ | 32 | $ | 94 | ||||||||
* | This component of AOCI is included in the Company's computation of net periodic benefit cost and is not reclassified out of AOCI into a single line item in our condensed consolidated statements of income in its entirety. Refer to Note 12 for additional information. | |||||||||||
1 | Related to the disposition of our Philippine bottling operations in January 2013, the deconsolidation of our Brazilian bottling operations in July 2013 and the merger of four of the Company's Japanese bottling partners in July 2013. Refer to Note 2 and Note 10 for additional information related to these transactions. |
Changes_in_Equity_Tables
Changes in Equity (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||||||
Changes in Equity [Abstract] | ||||||||||||||||||||||
Changes in Equity | The following table provides a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to shareowners of The Coca-Cola Company and equity attributable to noncontrolling interests (in millions): | |||||||||||||||||||||
Shareowners of The Coca-Cola Company | ||||||||||||||||||||||
Total | Reinvested | Accumulated | Common | Capital | Treasury | Non- | ||||||||||||||||
Earnings | Other | Stock | Surplus | Stock | controlling | |||||||||||||||||
Comprehensive | Interests | |||||||||||||||||||||
Income (Loss) | ||||||||||||||||||||||
December 31, 2012 | $ | 33,168 | $ | 58,045 | $ | (3,385 | ) | $ | 1,760 | $ | 11,379 | $ | (35,009 | ) | $ | 378 | ||||||
Comprehensive income (loss) | 5,632 | 6,874 | (1,314 | ) | — | — | — | 72 | ||||||||||||||
Dividends paid/payable to shareowners of | (3,732 | ) | (3,732 | ) | — | — | — | — | — | |||||||||||||
The Coca-Cola Company | ||||||||||||||||||||||
Dividends paid to noncontrolling interests | (54 | ) | — | — | — | — | — | (54 | ) | |||||||||||||
Contributions by noncontrolling interests | 1 | — | — | — | — | — | 1 | |||||||||||||||
Business combinations | 25 | — | — | — | — | — | 25 | |||||||||||||||
Deconsolidation of certain entities | (89 | ) | — | — | — | — | — | (89 | ) | |||||||||||||
Purchases of treasury stock | (3,820 | ) | — | — | — | — | (3,820 | ) | — | |||||||||||||
Impact of employee stock option and | 1,334 | — | — | — | 743 | 591 | — | |||||||||||||||
restricted stock plans | ||||||||||||||||||||||
September 27, 2013 | $ | 32,465 | $ | 61,187 | $ | (4,699 | ) | $ | 1,760 | $ | 12,122 | $ | (38,238 | ) | $ | 333 | ||||||
Productivity_Integration_and_R1
Productivity, Integration and Restructuring Initiatives (Tables) | 9 Months Ended | |||||||||||||||
Sep. 27, 2013 | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Productivity and Reinvestment costs [Table Text Block] | The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts as of and for the three months ended September 27, 2013 (in millions): | |||||||||||||||
Accrued | Costs | Payments | Noncash | Accrued | ||||||||||||
Balance | Incurred | and | Balance | |||||||||||||
June 28, | Three Months Ended | Exchange | September 27, | |||||||||||||
2013 | September 27, | 2013 | ||||||||||||||
2013 | ||||||||||||||||
Severance pay and benefits | $ | 37 | $ | 30 | $ | (29 | ) | $ | 1 | $ | 39 | |||||
Outside services | 3 | 12 | (3 | ) | — | 12 | ||||||||||
Other direct costs | 12 | 55 | (50 | ) | (1 | ) | 16 | |||||||||
Total | $ | 52 | $ | 97 | $ | (82 | ) | $ | — | $ | 67 | |||||
The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts as of and for the nine months ended September 27, 2013 (in millions): | ||||||||||||||||
Accrued | Costs | Payments | Noncash | Accrued | ||||||||||||
Balance | Incurred | and | Balance | |||||||||||||
December 31, | Nine Months Ended | Exchange | September 27, | |||||||||||||
2012 | September 27, | 2013 | ||||||||||||||
2013 | ||||||||||||||||
Severance pay and benefits | $ | 12 | $ | 109 | $ | (83 | ) | $ | 1 | $ | 39 | |||||
Outside services | 6 | 49 | (43 | ) | — | 12 | ||||||||||
Other direct costs | 8 | 154 | (145 | ) | (1 | ) | 16 | |||||||||
Total | $ | 26 | $ | 312 | $ | (271 | ) | $ | — | $ | 67 | |||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended | |||||||||||||
Sep. 27, 2013 | ||||||||||||||
Pension and Other Postretirement Benefit Plans | ||||||||||||||
Periodic benefit cost, pension and other postretirement benefit plans | Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following during the three and nine months ended September 27, 2013, and September 28, 2012, respectively (in millions): | |||||||||||||
Pension Benefits | Other Benefits | |||||||||||||
Three Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 69 | $ | 88 | $ | 9 | $ | 8 | ||||||
Interest cost | 93 | 97 | 10 | 11 | ||||||||||
Expected return on plan assets | (163 | ) | (143 | ) | (2 | ) | (2 | ) | ||||||
Amortization of prior service cost (credit) | (1 | ) | (1 | ) | (3 | ) | (13 | ) | ||||||
Amortization of net actuarial loss | 50 | 34 | 3 | 2 | ||||||||||
Total cost (credit) recognized in statements of income | $ | 48 | $ | 75 | $ | 17 | $ | 6 | ||||||
Pension Benefits | Other Benefits | |||||||||||||
Nine Months Ended | ||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Service cost | $ | 207 | $ | 224 | $ | 27 | $ | 25 | ||||||
Interest cost | 282 | 292 | 31 | 33 | ||||||||||
Expected return on plan assets | (492 | ) | (431 | ) | (7 | ) | (6 | ) | ||||||
Amortization of prior service cost (credit) | (2 | ) | (2 | ) | (8 | ) | (39 | ) | ||||||
Amortization of net actuarial loss | 149 | 102 | 9 | 5 | ||||||||||
Total cost (credit) recognized in statements of income | $ | 144 | $ | 185 | $ | 52 | $ | 18 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 27, 2013 | |||||||||||||||||
Income taxes | |||||||||||||||||
Schedule of tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented | The following table illustrates the tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented (in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 27, | September 28, | September 27, | September 28, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Asset impairments | $ | — | 1 | $ | — | $ | — | 1 | $ | — | |||||||
Productivity and reinvestment program | (37 | ) | 2 | (21 | ) | 9 | (115 | ) | 2 | (65 | ) | 9 | |||||
Other productivity, integration and restructuring initiatives | 1 | 3 | 4 | 10 | 2 | 3 | 5 | 10 | |||||||||
Transaction gains and losses | 255 | 4 | — | 303 | 7 | 33 | 11 | ||||||||||
Certain tax matters | (20 | ) | 5 | 7 | 12 | (20 | ) | 5 | (26 | ) | 14 | ||||||
Other — net | 4 | 6 | (4 | ) | 13 | — | 8 | (18 | ) | 15 | |||||||
1 | Related to charges of $190 million due to the impairment of certain of the Company's intangible assets. Refer to Note 10 and Note 14. | ||||||||||||||||
2 | Related to charges of $97 million and $312 million during the three and nine months ended September 27, 2013, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
3 | Related to net charges of $43 million and $82 million during the three and nine months ended September 27, 2013, respectively. These charges were primarily due to the Company's other restructuring initiatives that are outside the scope of the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
4 | Related to a net gain of $585 million consisting of the following items: a gain of $615 million due to the deconsolidation of our Brazilian bottling operations upon their combination with an independent bottler; a gain of $30 million due to the merger of four of the Company's Japanese bottling partners; and charges of $60 million due to the deferral of revenue and corresponding gross profit associated with the intercompany portion of our concentrate sales to CCEJ and the newly combined Brazilian bottling operations until the finished beverage products made from those concentrates are sold to a third party. Refer to Note 2, Note 10 and Note 14. | ||||||||||||||||
5 | Related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. | ||||||||||||||||
6 | Related to a net charge of $3 million that consisted of a charge of $11 million associated with certain of the Company's fixed assets, partially offset by a net gain of $8 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | ||||||||||||||||
7 | Related to a net gain of $574 million that primarily consisted of the following items: a gain of $615 million related to the deconsolidation of our Brazilian bottling operations upon their combination with an independent bottler; a gain of $139 million the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment; a net loss of $114 million due to the merger of four of the Company's Japanese bottling partners; and charges of $60 million due to the deferral of revenue and corresponding gross profit associated with the intercompany portion of our concentrate sales to CCEJ and the newly combined Brazilian bottling operations until the finished beverage products made from those concentrates are sold to a third party. Refer to Note 2, Note 10 and Note 14. | ||||||||||||||||
8 | Related to charges of $205 million that primarily consisted of the following items: a charge of $23 million due to the early extinguishment of certain long-term debt; a charge of $149 million due to the devaluation of the Venezuelan bolivar; a net charge of $25 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees; and a charge of $11 million associated with certain of the Company's fixed assets. Refer to Note 6 and Note 10. | ||||||||||||||||
9 | Related to charges of $59 million and $177 million during the three and nine months ended September 28, 2012, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
10 | Related to charges of $3 million and $30 million during the three and nine months ended September 28, 2012, respectively. These charges were primarily due to the Company's other restructuring initiatives that are outside the scope of the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
11 | Related to a gain of $92 million the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. Refer to Note 10 and Note 14. | ||||||||||||||||
12 | Related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. | ||||||||||||||||
13 | Related to a charge of $19 million that consisted of a net charge of $10 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees and a charge of $9 million associated with the Company's orange juice supply in the United States. Refer to Note 10. | ||||||||||||||||
14 | Related to a net tax benefit primarily associated with the reversal of valuation allowances in the Company's foreign jurisdictions, partially offset by amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. | ||||||||||||||||
15 | Related to a net charge of $22 million that consisted of the following items: a charge of $20 million due to changes in the Company's ready-to-drink tea strategy as a result of our U.S. license agreement with Nestlé terminating at the end of 2012; a charge of $14 million due to changes in the structure of BPW; and a charge of $21 million associated with the Company's orange juice supply in the United States. These charges were partially offset by a net gain of $33 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 27, 2013 | ||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||
Nonrecurring Fair Value Measurements [Table Text Block] | The gains or losses on assets measured at fair value on a nonrecurring basis for the three and nine months ended September 27, 2013, and September 28, 2012, are summarized in the table below (in millions): | |||||||||||||||||
Gains (Losses) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||
Intangible assets | $ | (190 | ) | 1 | $ | — | $ | (190 | ) | 1 | $ | — | ||||||
Valuation of shares in equity method investee | — | — | 139 | 3 | 92 | 3 | ||||||||||||
Exchange of investment in equity securities | 30 | 2 | — | (114 | ) | 4 | — | |||||||||||
Total | $ | (160 | ) | $ | — | $ | (165 | ) | $ | 92 | ||||||||
1 | The Company recognized a loss of $190 million due to impairment charges on certain intangible assets. The charges were primarily determined by comparing the fair value of the assets to the current carrying value. The fair value of the assets was derived using discounted cash flow analyses based on Level 3 inputs. Refer to Note 10. | |||||||||||||||||
2 | The Company recognized a gain of $30 million on the exchange of shares it previously owned in certain equity method investees for shares in CCEJ, a newly formed entity. The gain represents the difference between the carrying value of the shares the Company relinquished and the fair value of the CCEJ shares received as a result of the transaction. The gain and the initial carrying value of the Company's investment were calculated based on Level 1 inputs. The Company accounts for its investment in CCEJ under the equity method of accounting. Refer to Note 10. | |||||||||||||||||
3 | The Company recognized a gain of $139 million and $92 million during the nine months ended September 27, 2013, and September 28, 2012, respectively. These gains resulted from Coca-Cola FEMSA issuing additional shares of its own stock at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment in Coca-Cola FEMSA. These gains were determined using Level 1 inputs. Refer to Note 10. | |||||||||||||||||
4 | The Company recognized a net loss of $114 million on the exchange of shares it previously owned in certain equity method investees for shares in the newly formed entity CCEJ. CCEJ is also an equity method investee. The net loss represents the difference between the carrying value of the shares the Company relinquished and the fair value of the CCEJ shares received as a result of the transaction. The net loss and the initial carrying value of the Company's investment were calculated based on Level 1 inputs. Refer to Note 10. | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | The following table summarizes those assets and liabilities measured at fair value on a recurring basis as of September 27, 2013 (in millions): | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets | ||||||||||||||||||
Trading securities2 | $ | 139 | $ | 172 | $ | 3 | $ | — | $ | 314 | ||||||||
Available-for-sale securities2 | 1,357 | 3,216 | 114 | 3 | — | 4,687 | ||||||||||||
Derivatives4 | 20 | 729 | — | (144 | ) | 605 | 5 | |||||||||||
Total assets | $ | 1,516 | $ | 4,117 | $ | 117 | $ | (144 | ) | $ | 5,606 | |||||||
Liabilities | ||||||||||||||||||
Derivatives4 | $ | 5 | $ | 162 | $ | — | $ | (145 | ) | $ | 22 | 5 | ||||||
Total liabilities | $ | 5 | $ | 162 | $ | — | $ | (145 | ) | $ | 22 | |||||||
1 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. | ||||||||||||||||||
2 | Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. | |||||||||||||||||
3 Primarily related to long-term debt securities that mature in 2018. | ||||||||||||||||||
4 Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
5 The Company's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $103 million in the line item prepaid expenses and other assets; $502 million in the line item other assets; $8 million in the line item accounts payable and accrued expenses; and $14 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
The following table summarizes those assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets | ||||||||||||||||||
Trading securities2 | $ | 146 | $ | 116 | $ | 4 | $ | — | $ | 266 | ||||||||
Available-for-sale securities2 | 1,390 | 3,068 | 135 | 3 | — | 4,593 | ||||||||||||
Derivatives4 | 47 | 583 | — | (116 | ) | 514 | 5 | |||||||||||
Total assets | $ | 1,583 | $ | 3,767 | $ | 139 | $ | (116 | ) | $ | 5,373 | |||||||
Liabilities | ||||||||||||||||||
Derivatives4 | $ | 35 | $ | 98 | $ | — | $ | (121 | ) | $ | 12 | 5 | ||||||
Total liabilities | $ | 35 | $ | 98 | $ | — | $ | (121 | ) | $ | 12 | |||||||
1 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. | ||||||||||||||||||
2 | Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. | |||||||||||||||||
3 Primarily related to long-term debt securities that mature in 2018. | ||||||||||||||||||
4 Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
5 The Company's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $137 million in the line item prepaid expenses and other assets; $377 million in the line item other assets; $4 million in the line item accounts payable and accrued expenses; and $8 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. |
Operating_Segments_Tables
Operating Segments (Tables) | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 27, 2013 | Sep. 27, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments | Information about our Company's operations as of and for the three months ended September 27, 2013, and September 28, 2012, by operating segment, is as follows (in millions): | Information about our Company's operations as of and for the nine months ended September 27, 2013, and September 28, 2012, by operating segment, is as follows (in millions): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eurasia | Europe | Latin | North | Pacific | Bottling | Corporate | Eliminations | Consolidated | Eurasia | Europe | Latin | North | Pacific | Bottling | Corporate | Eliminations | Consolidated | |||||||||||||||||||||||||||||||||||||||
& Africa | America | America | Investments | & Africa | America | America | Investments | |||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net operating revenues: | Net operating revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Third party | $ | 669 | $ | 1,232 | $ | 1,208 | $ | 5,715 | $ | 1,368 | $ | 1,811 | $ | 27 | $ | — | $ | 12,030 | Third party | $ | 2,103 | $ | 3,545 | $ | 3,504 | $ | 16,306 | $ | 4,185 | $ | 6,047 | $ | 124 | $ | — | $ | 35,814 | |||||||||||||||||||
Intersegment | — | 188 | 22 | 4 | 128 | 21 | — | (363 | ) | — | Intersegment | — | 520 | 169 | 13 | 431 | 61 | — | (1,194 | ) | — | |||||||||||||||||||||||||||||||||||
Total net revenues | 669 | 1,420 | 1,230 | 5,719 | 1,496 | 1,832 | 27 | (363 | ) | 12,030 | Total net revenues | 2,103 | 4,065 | 3,673 | 16,319 | 4,616 | 6,108 | 124 | (1,194 | ) | 35,814 | |||||||||||||||||||||||||||||||||||
Operating income (loss) | 231 | 742 | 720 | 803 | 575 | 22 | (621 | ) | — | 2,472 | Operating income (loss) | 845 | 2,261 | 2,209 | 1,875 | 2,024 | 186 | (1,277 | ) | — | 8,123 | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 228 | 755 | 719 | 805 | 585 | 214 | 74 | — | 3,380 | Income (loss) before income taxes | 868 | 2,318 | 2,213 | 1,879 | 2,042 | 677 | (748 | ) | — | 9,249 | ||||||||||||||||||||||||||||||||||||
Identifiable operating assets | 1,340 | 3,567 | 2,672 | 34,278 | 1,848 | 6,836 | 27,356 | — | 77,897 | 2012 | ||||||||||||||||||||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent investments | 1,160 | 104 | 525 | 44 | 140 | 9,486 | 76 | — | 11,535 | Third party | $ | 2,041 | $ | 3,492 | $ | 3,381 | $ | 16,375 | $ | 4,423 | $ | 6,742 | $ | 108 | $ | — | $ | 36,562 | ||||||||||||||||||||||||||||
2012 | Intersegment | — | 488 | 176 | 13 | 498 | 66 | — | (1,241 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Third party | $ | 698 | $ | 1,124 | $ | 1,171 | $ | 5,669 | $ | 1,470 | $ | 2,182 | $ | 26 | $ | — | $ | 12,340 | Total net revenues | 2,041 | 3,980 | 3,557 | 16,388 | 4,921 | 6,808 | 108 | (1,241 | ) | 36,562 | |||||||||||||||||||||||||||
Intersegment | — | 165 | 55 | 1 | 176 | 26 | — | (423 | ) | — | Operating income (loss) | 806 | 2,290 | 2,164 | 2,039 | 2,089 | 169 | (961 | ) | — | 8,596 | |||||||||||||||||||||||||||||||||||
Total net revenues | 698 | 1,289 | 1,226 | 5,670 | 1,646 | 2,208 | 26 | (423 | ) | 12,340 | Income (loss) before income taxes | 821 | 2,340 | 2,164 | 2,066 | 2,088 | 750 | (797 | ) | — | 9,432 | |||||||||||||||||||||||||||||||||||
Operating income (loss) | 244 | 698 | 734 | 832 | 613 | 44 | (372 | ) | — | 2,793 | ||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 248 | 716 | 734 | 838 | 616 | 269 | (337 | ) | — | 3,084 | ||||||||||||||||||||||||||||||||||||||||||||||
Identifiable operating assets | 1,373 | 3,012 | 2,576 | 33,906 | 2,303 | 9,374 | 23,960 | — | 76,504 | |||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent investments | 1,143 | 275 | 556 | 21 | 126 | 7,953 | 76 | — | 10,150 | |||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Identifiable operating assets | $ | 1,299 | $ | 2,976 | $ | 2,759 | $ | 34,114 | $ | 2,163 | $ | 9,648 | $ | 22,767 | $ | — | $ | 75,726 | ||||||||||||||||||||||||||||||||||||||
Noncurrent investments | 1,155 | 271 | 539 | 39 | 127 | 8,253 | 64 | — | 10,448 | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 72 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2019 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 |
Investment in Aujan Industries [Member] | Aujan Industries Trademark owner [Member] | Aujan bottling and distribution company [Member] | PhilippinesBottlingOperations [Member] | Brazilian Bottling Operation [Member] | Brazilian Bottling Operation [Member] | CCEAG [Member] | Corporate | Corporate | ||||
Acquisition and investment activities | ||||||||||||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | $869 | $19 | ||||||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | 107 | |||||||||||
Acquisitions of businesses, equity method investments and nonmarketable securities | 326 | 1,148 | 815 | |||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 49.00% | 44.00% | |||||||||
Deconsolidation, Gain (Loss), Amount | 615 | 615 | 615 | 615 | ||||||||
Exercise of Options | 24.00% | 100.00% | ||||||||||
Put Option Exercise Price | $492 |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures (Details 2) (USD $) | Dec. 31, 2012 |
In Millions, unless otherwise specified | |
Total Bottling Operations Held for Sale [Domain] | |
Divestitures [Line Items] | |
Cash, cash equivalents and short-term investments | $178 |
Trade accounts receivable, less allowances | 196 |
Inventories | 272 |
Prepaid expenses and other assets | 397 |
Other Assets | 135 |
Property plant and equipment - net | 1,260 |
Bottlers' franchise rights with indefinite lives | 471 |
Goodwill | 170 |
Other Intangible Assets | 1 |
Allowance for reduction of assets held for sale | -107 |
Total assets | 2,973 |
Accounts payable and accrued expenses | 398 |
Loans and notes payable | 6 |
Current maturities of long term debt | 28 |
Accrued Income Taxes | 0 |
Long-term debt | 147 |
Other liabilities | 95 |
Deferred Income Taxes | 122 |
Total liabilities | 796 |
Philippine Bottling Operations [Member] | |
Divestitures [Line Items] | |
Cash, cash equivalents and short-term investments | 133 |
Trade accounts receivable, less allowances | 108 |
Inventories | 187 |
Prepaid expenses and other assets | 223 |
Other Assets | 7 |
Property plant and equipment - net | 841 |
Bottlers' franchise rights with indefinite lives | 341 |
Goodwill | 148 |
Other Intangible Assets | 0 |
Allowance for reduction of assets held for sale | -107 |
Total assets | 1,881 |
Accounts payable and accrued expenses | 241 |
Loans and notes payable | 0 |
Current maturities of long term debt | 0 |
Accrued Income Taxes | -4 |
Long-term debt | 0 |
Other liabilities | 20 |
Deferred Income Taxes | 102 |
Total liabilities | 359 |
Brazilian Bottling Operation [Member] | |
Divestitures [Line Items] | |
Cash, cash equivalents and short-term investments | 45 |
Trade accounts receivable, less allowances | 88 |
Inventories | 85 |
Prepaid expenses and other assets | 174 |
Other Assets | 128 |
Property plant and equipment - net | 419 |
Bottlers' franchise rights with indefinite lives | 130 |
Goodwill | 22 |
Other Intangible Assets | 1 |
Allowance for reduction of assets held for sale | 0 |
Total assets | 1,092 |
Accounts payable and accrued expenses | 157 |
Loans and notes payable | 6 |
Current maturities of long term debt | 28 |
Accrued Income Taxes | 4 |
Long-term debt | 147 |
Other liabilities | 75 |
Deferred Income Taxes | 20 |
Total liabilities | $437 |
Investments_Details
Investments (Details) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Trading Securities | ||
Trading Securities Unrealized Holding Gains (Losses) | $28 | $19 |
Marketable Securities | 231 | 184 |
Other Assets | 83 | 82 |
Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total trading securities | $314 | $266 |
Investments_Details_2
Investments (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Dec. 31, 2012 |
Available-for-sale securities, by type | ||
Available-for-sale Securities, Amortized Cost Basis | $4,326 | $4,126 |
Available-for-sale Securities, Gross Unrealized Gain | 410 | 487 |
Available-for-sale Securities, Gross Unrealized Losses | -49 | -20 |
Available-for-sale Securities Fair Value | 4,687 | 4,593 |
Equity Securities | ||
Available-for-sale securities, by type | ||
Available-for-sale Securities, Amortized Cost Basis | 983 | 957 |
Available-for-sale Securities, Gross Unrealized Gain | 389 | 441 |
Available-for-sale Securities, Gross Unrealized Losses | -15 | -10 |
Available-for-sale Securities Fair Value | 1,357 | 1,388 |
Debt Securities | ||
Available-for-sale securities, by type | ||
Available-for-sale Securities, Amortized Cost Basis | 3,343 | 3,169 |
Available-for-sale Securities, Gross Unrealized Gain | 21 | 46 |
Available-for-sale Securities, Gross Unrealized Losses | -34 | -10 |
Available-for-sale Securities Fair Value | $3,330 | $3,205 |
Investments_Details_4
Investments (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||||
Cash and cash equivalents | $11,118 | $9,615 | $11,118 | $9,615 | $8,442 | $12,803 |
Marketable securities | 3,202 | 3,202 | 3,092 | |||
Other investments, principally bottling companies | 1,150 | 1,150 | 1,232 | |||
Other assets | 4,270 | 4,270 | 3,585 | |||
Available-for-sale Securities Fair Value | 4,687 | 4,687 | 4,593 | |||
Proceeds from Sale of Available-for-sale Securities | 1,091 | 1,256 | 3,349 | 4,098 | ||
Available-for-sale Securities Gross Gains | 2 | 22 | 10 | 34 | ||
Available-for-sale Securities Gross Losses | -9 | -26 | -19 | -28 | ||
Available-for-sale Securities [Member] | ||||||
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||||
Cash and cash equivalents | 76 | 76 | 9 | |||
Marketable securities | 2,971 | 2,971 | 2,908 | |||
Other investments, principally bottling companies | 993 | 993 | 1,087 | |||
Other assets | 647 | 647 | 589 | |||
Available-for-sale Securities Fair Value | 4,687 | 4,687 | 4,593 | |||
Solvency capital | 530 | 530 | 451 | |||
Equity Securities [Member] | ||||||
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||||
Available-for-sale Securities Fair Value | $1,357 | $1,357 | $1,388 |
Investments_Details_5
Investments (Details 5) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investments [Abstracts] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $1,285 | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 1,267 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost Basis | 1,574 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value | 1,580 | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost Basis | 149 | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value | 153 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 335 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 330 | |
Available-for-sale Securities, Amortized Cost Basis | 4,326 | 4,126 |
Cost Method Investments [Abstract] | ||
Cost-method Investments, Aggregate Carrying Amount | 157 | 145 |
Held-to-maturity securities, by type | ||
Available-for-sale Securities Fair Value | 4,687 | 4,593 |
Equity Securities [Member] | ||
Investments [Abstracts] | ||
Available-for-sale Securities, Amortized Cost Basis | 983 | 957 |
Held-to-maturity securities, by type | ||
Available-for-sale Securities Fair Value | $1,357 | $1,388 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory balances | ||
Raw materials and packaging | $1,683 | $1,773 |
Finished goods | 1,297 | 1,171 |
Other | 341 | 320 |
Total inventories | $3,321 | $3,264 |
Hedging_Transactions_and_Deriv2
Hedging Transactions and Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 27, 2013 | Dec. 31, 2012 |
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, designated and qualified, part of hedging relationship, fair value | $531 | $491 |
Derivative instruments, liabilities, designated and qualified, part of hedging relationship, fair value | 120 | 62 |
Derivative instruments, assets, not designated and qualified, part of hedging relationship, fair value | 218 | 139 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 47 | 71 |
Derivative Instrument Detail [Abstract] | ||
Maximum length of time over which future cash flow exposures are hedged (in years) | 3 years | |
Foreign currency contracts | Cash Flow Hedging [Member] | ||
Derivative Instrument Detail [Abstract] | ||
Derivative, Notional Amount | 5,543 | 4,715 |
Foreign currency contracts | Net Investment Hedging [Member] | ||
Derivative Instrument Detail [Abstract] | ||
Derivative, Notional Amount | 1,691 | 1,718 |
Foreign currency contracts | Prepaid expenses and other assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, designated and qualified, part of hedging relationship, fair value | 146 | 149 |
Derivative instruments, assets, not designated and qualified, part of hedging relationship, fair value | 21 | 19 |
Foreign currency contracts | Other Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, designated and qualified, part of hedging relationship, fair value | 39 | 0 |
Derivative instruments, assets, not designated and qualified, part of hedging relationship, fair value | 164 | 42 |
Foreign currency contracts | Accounts payable and accrued expenses | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, designated and qualified, part of hedging relationship, fair value | 102 | 55 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 27 | 24 |
Foreign currency contracts | Other Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, designated and qualified, part of hedging relationship, fair value | 17 | 0 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 0 | 1 |
Commodity contracts | Cash Flow Hedging [Member] | ||
Derivative Instrument Detail [Abstract] | ||
Derivative, Notional Amount | 15 | 17 |
Commodity contracts | Prepaid expenses and other assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, not designated and qualified, part of hedging relationship, fair value | 31 | 72 |
Commodity contracts | Accounts payable and accrued expenses | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, designated and qualified, part of hedging relationship, fair value | 1 | 1 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 14 | 43 |
Commodity contracts | Other Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 1 | 1 |
Interest Rate Contracts | Cash Flow Hedging [Member] | ||
Derivative Instrument Detail [Abstract] | ||
Derivative, Notional Amount | 2,778 | 1,764 |
Interest Rate Contracts | Fair Value Hedging [Member] | ||
Derivative Instrument Detail [Abstract] | ||
Derivative, Notional Amount | 6,750 | 6,700 |
Interest Rate Contracts | Prepaid expenses and other assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, designated and qualified, part of hedging relationship, fair value | 47 | 7 |
Interest Rate Contracts | Other Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, designated and qualified, part of hedging relationship, fair value | 299 | 335 |
Interest Rate Contracts | Other Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, designated and qualified, part of hedging relationship, fair value | 0 | 6 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 3 | 0 |
Other derivative instruments | Prepaid expenses and other assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, not designated and qualified, part of hedging relationship, fair value | 2 | 6 |
Other derivative instruments | Accounts payable and accrued expenses | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $2 | $2 |
Hedging_Transactions_and_Deriv3
Hedging Transactions and Derivative Financial Instruments (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 |
Gains and (losses) related to derivative instruments | |||||
Anticipated gains (losses) cash flows hedges, estimated reclassification to earnings during next twelve months | $93 | ||||
Fixed-rate debt | |||||
Gains and (losses) related to derivative instruments | |||||
Increase (Decrease) in carrying value due to hedge adjustments | 101 | 101 | |||
Cash Flow Hedges | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -70 | -100 | 337 | -21 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 60 | -13 | 133 | -57 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 1 | 2 | |
Cash Flow Hedges | Interest Rate Swap [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 2,778 | 2,778 | 1,764 | ||
Cash Flow Hedges | Foreign currency contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 5,543 | 5,543 | 4,715 | ||
Cash Flow Hedges | Foreign currency contracts | Net operating revenues | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -70 | -82 | 150 | -11 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 53 | -6 | 123 | -32 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 1 | 2 | |
Cash Flow Hedges | Foreign currency contracts | Cost of goods sold | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -4 | -7 | 31 | 5 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 11 | -4 | 21 | -16 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | |
Cash Flow Hedges | Interest Rate Contract [Member] | Interest Expense [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 4 | -11 | 155 | -11 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -3 | -3 | -9 | -9 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | |
Cash Flow Hedges | Commodity contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 15 | 15 | 17 | ||
Cash Flow Hedges | Commodity contracts | Cost of goods sold | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | 0 | 1 | -4 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -1 | 0 | -2 | 0 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | |
Fair Value Hedges | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 3 | 15 | 19 | 32 | |
Fair Value Hedges | Other income (loss) - net | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -6 | 3 | -15 | 2 | |
Fair Value Hedges | Interest Expense [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 9 | 12 | 34 | 30 | |
Fair Value Hedges | Fixed-rate debt | Interest Expense [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 5 | -30 | 181 | -81 | |
Fair Value Hedges | Interest Rate Swap [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 6,750 | 6,750 | 6,700 | ||
Fair Value Hedges | Interest Rate Swap [Member] | Interest Expense [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 4 | 42 | -147 | 111 | |
Fair Value Hedges | Foreign currency contracts | Other income (loss) - net | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 39 | 8 | 32 | 23 | |
Fair Value Hedges | Available-for-sale Securities [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 985 | 850 | 985 | 850 | |
Fair Value Hedges | Available-for-sale Securities [Member] | Other income (loss) - net | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -45 | -5 | -47 | -21 | |
Net Investment Hedges | Foreign currency contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 1,691 | 1,691 | 1,718 | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -22 | -100 | 8 | -58 | |
Derivatives Not Designated as Hedging Instruments | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 58 | 65 | 9 | -40 | |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap [Member] | Interest Expense [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 0 | 0 | -3 | 0 | |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 3,630 | 3,630 | 3,865 | ||
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | Net operating revenues | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -2 | -2 | 2 | -5 | |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | Other income (loss) - net | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 47 | 18 | 120 | -54 | |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | Cost of goods sold | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 2 | -3 | 2 | 0 | |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 1,357 | 1,357 | 1,084 | ||
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Net operating revenues | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 2 | 5 | 1 | 5 | |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Cost of goods sold | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -3 | 25 | -147 | -19 | |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Selling, general and administrative expenses | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 3 | 19 | 1 | 12 | |
Derivatives Not Designated as Hedging Instruments | Other derivative instruments | Selling, general and administrative expenses | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $9 | $3 | $33 | $21 |
Debt_and_Borrowing_Arrangement1
Debt and Borrowing Arrangements (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Sep. 27, 2013 |
Long-term debt | ||||
Issuance of long term debt | $2,500 | |||
Extinguishment of long-term debt | 1,254 | |||
Gains (Losses) on Extinguishment of Debt | 23 | 23 | ||
Total principal notes due March 5,2015 | ||||
Long-term debt | ||||
Issuance of long term debt | 500 | |||
Basis spread on variable rate used (as a percent) | -0.02% | |||
Total principal notes due April 1, 2018 | ||||
Long-term debt | ||||
Issuance of long term debt | 1,250 | |||
Fixed interest rate (as a percent) | 1.15% | 1.15% | ||
Total principal notes due April 1, 2023 | ||||
Long-term debt | ||||
Issuance of long term debt | 750 | |||
Fixed interest rate (as a percent) | 2.50% | 2.50% | ||
Total principal notes due August 15, 2013 | ||||
Long-term debt | ||||
Fixed interest rate (as a percent) | 5.00% | 5.00% | ||
Extinguishment of long-term debt | 225 | |||
Total principal notes due March 3, 2014 | ||||
Long-term debt | ||||
Fixed interest rate (as a percent) | 7.38% | 7.38% | ||
Extinguishment of long-term debt | 675 | |||
Total principal notes due March 1, 2015 | ||||
Long-term debt | ||||
Fixed interest rate (as a percent) | 4.25% | 4.25% | ||
Extinguishment of long-term debt | $354 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 27, 2013 | Sep. 27, 2013 | Dec. 31, 1981 | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Guarantees of indebtedness owed by third parties | Pending Litigation [Member] | Pending Litigation [Member] | Risk Management Programs | Risk Management Programs |
Guarantees | |||||
Guarantees of indebtedness owed by third parties | $639 | ||||
VIEs maximum exposures to loss | 287 | ||||
Legal Contingencies | |||||
Insurance coverage insuring prior and future costs for certain product liability and other claims | 400 | ||||
Number of pending active claims' lawsuit | 40,000 | ||||
Approximate amount of out-of-pocket litigation-related expenses demanded as reimbursement by plaintiff | 10 | ||||
Number of plaintiff insurance companies filing declaratory judgment action against Aqua-Chem, the Company, and defendant insurance companies | 5 | ||||
Number of insurance companies included as defendants in declaratory judgment requested by plaintiff | 16 | ||||
Wisconsin trial court final declaratory judgment of each individual insurer's joint and several liability percentage of plaintiff's losses up to policy limits (as a percent) | 100.00% | ||||
Period for which defense and indemnity costs are in the same range (in years) | 5 | ||||
Low end of the range (in years) the Company believes that there will likely be little or no defense or indemnity costs that will not be covered by insurance | 10 | ||||
High end of the range (in years) the Company believes that there will likely be little or no defense or indemnity costs that will not be covered by insurance | 15 | ||||
Risk Management Programs | |||||
Self-insurance reserves | $539 | $508 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Comprehensive Income Disclosure | ||||
Consolidated net income | $2,455 | $2,329 | $6,918 | $7,196 |
Other comprehensive income: | ||||
Net foreign currency translation adjustment | -466 | 285 | -1,447 | -514 |
Net gain (loss) on derivatives | -82 | -48 | 122 | 11 |
Net unrealized gain (loss) on available-for-sale securities | -92 | 182 | -66 | 348 |
Net change in pension and other benefit liabilities | 27 | 11 | 105 | 22 |
TOTAL COMPREHENSIVE INCOME | 1,842 | 2,759 | 5,632 | 7,063 |
Foreign currency translation adjustments: | ||||
Translation adjustment arising during the period | -639 | 236 | -1,318 | -571 |
Reclassification adjustments recognized in net income | 26 | 0 | -194 | 7 |
Net foreign currency translation adjustments | -613 | 236 | -1,512 | -564 |
Derivatives: | ||||
Unrealized gains (losses) arising during the period | -69 | -101 | 333 | -39 |
Reclassification adjustments recognized in net income | -60 | 13 | -133 | 57 |
Net gain (loss) on derivatives | -129 | -88 | 200 | 18 |
Available-for-sale securities: | ||||
Unrealized gains (losses) arising during the period | -152 | 248 | -108 | 516 |
Reclassification adjustments recognized in net income | 7 | 4 | 9 | -6 |
Net change in unrealized gain (loss) on available-for-sale securities | -145 | 252 | -99 | 510 |
Pension and other benefits liabilities: | ||||
Net pension and other benefits arising during the period | -5 | -5 | 20 | -22 |
Reclassification adjustments recognized in net income | 49 | 22 | 147 | 66 |
Net change in pension and other benefitis liabilities | 44 | 17 | 167 | 44 |
Other Comprehensive Income (Loss) attributable to The Coca-Cola Company | -843 | 417 | -1,244 | 8 |
Amortization of prior period service cost (credit) | -4 | -10 | ||
Foreign currency translation adjustments: | ||||
Translation adjustment arising during the period | 144 | 47 | 37 | 16 |
Reclassification adjustments recognized in net income | 0 | 0 | 0 | 0 |
Net foreign currency translation adjustments | 144 | 47 | 37 | 16 |
Derivatives: | ||||
Unrealized gains (losses) arising during the period | 25 | 45 | -128 | 15 |
Reclassification adjustments recognized in net income | 22 | -5 | 50 | -22 |
Net gain (loss) on derivatives | 47 | 40 | -78 | -7 |
Available-for-sales securities: | ||||
Unrealized gains (losses) arising during the period | 53 | -70 | 33 | -162 |
Reclassification adjustments recognized in net income | 0 | 0 | 0 | 0 |
Net change in unrealized gain (loss) on available-for-sale securities | 53 | -70 | 33 | -162 |
Pension and other benefits liabilities: | ||||
Net pension and other benefits arising during the period | 0 | 2 | -9 | 2 |
Reclassification adjustments recognized in net income | -17 | -8 | -53 | -24 |
Net change in pension and other benefits liabilities | -17 | -6 | -62 | -22 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | 227 | 11 | -70 | -175 |
Foreign currency translation adjustments: | ||||
Translation adjustment arising during the period | -495 | 283 | -1,281 | -555 |
Reclassification adjustments recognized in net income | 26 | 0 | -194 | 7 |
Net foreign currency translation adjustments | -469 | 283 | -1,475 | -548 |
Derivatives: | ||||
Unrealized gains (losses) arising during the period | -44 | -56 | 205 | -24 |
Reclassification adjustments recognized in net income | -38 | 8 | -83 | 35 |
Net gain (loss) on derivatives | -82 | -48 | 122 | 11 |
Available-for-sale securities: | ||||
Unrealized gains (losses) arising during the period | -99 | 178 | -75 | 354 |
Reclassification adjustments recognized in net income | 7 | 4 | 9 | -6 |
Net change in unrealized gain (loss) on available-for-sale securities | -92 | 182 | -66 | 348 |
Pension and other benefit liabilities: | ||||
Net pension and other benefits arising during the period | -5 | -3 | 11 | -20 |
Reclassification adjustments recognized in net income | 32 | 14 | 94 | 42 |
Net change in pension and other benefit liabilities | 27 | 11 | 105 | 22 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | -616 | 428 | -1,314 | -167 |
Divestitures, deconsolidations and other [Member] | Other income (loss) - net | ||||
Foreign currency translation adjustments: | ||||
Reclassification adjustments recognized in net income | 26 | -194 | ||
Foreign currency contracts | Net operating revenues | ||||
Derivatives: | ||||
Reclassification adjustments recognized in net income | -53 | -123 | ||
Foreign currency contracts | Cost of goods sold | ||||
Derivatives: | ||||
Reclassification adjustments recognized in net income | -10 | -19 | ||
Interest Rate Contract [Member] | Interest Expense [Member] | ||||
Derivatives: | ||||
Reclassification adjustments recognized in net income | 3 | 9 | ||
Sale of securities | Other income (loss) - net | ||||
Available-for-sale securities: | ||||
Reclassification adjustments recognized in net income | 7 | 9 | ||
Insignificant items [Member] | Other income (loss) - net | ||||
Pension and other benefits liabilities: | ||||
Reclassification adjustments recognized in net income | 0 | -1 | ||
Amortization of net actuarial loss | ||||
Pension and other benefits liabilities: | ||||
Reclassification adjustments recognized in net income | 53 | 158 | ||
Shareowners of The Coca-Cola Company | ||||
Comprehensive Income Disclosure | ||||
Consolidated net income | 6,874 | |||
Other comprehensive income: | ||||
Net foreign currency translation adjustment | -1,475 | |||
Net gain (loss) on derivatives | 122 | |||
Net unrealized gain (loss) on available-for-sale securities | -66 | |||
Net change in pension and other benefit liabilities | 105 | |||
TOTAL COMPREHENSIVE INCOME | 5,560 | |||
Noncontrolling Interests | ||||
Comprehensive Income Disclosure | ||||
Consolidated net income | 44 | |||
Other comprehensive income: | ||||
Net foreign currency translation adjustment | 28 | |||
Net gain (loss) on derivatives | 0 | |||
Net unrealized gain (loss) on available-for-sale securities | 0 | |||
Net change in pension and other benefit liabilities | 0 | |||
TOTAL COMPREHENSIVE INCOME | 72 | |||
Total [Member] | ||||
Comprehensive Income Disclosure | ||||
Consolidated net income | 6,918 | |||
Other comprehensive income: | ||||
Net foreign currency translation adjustment | -1,447 | |||
Net gain (loss) on derivatives | 122 | |||
Net unrealized gain (loss) on available-for-sale securities | -66 | |||
Net change in pension and other benefit liabilities | 105 | |||
TOTAL COMPREHENSIVE INCOME | $5,632 |
Changes_in_Equity_Details
Changes in Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Changes in Equity | ||||
31-Dec-12 | $33,168 | |||
Comprehensive income (loss) | 1,842 | 2,759 | 5,632 | 7,063 |
Dividends paid / payable to shareowners of The Coca-Cola Company | -3,732 | |||
Dividends paid to noncontrolling interests | -54 | |||
Contributions by noncontrolling interests | 1 | |||
Business Combinations | 25 | |||
Deconsolidation of certain entities | -89 | |||
Purchases of treasury stock | -3,820 | |||
Impact of employee stock option and restricted stock plans | 1,334 | |||
27-Sep-13 | 32,465 | 32,465 | ||
Reinvested Earnings | ||||
Changes in Equity | ||||
31-Dec-12 | 58,045 | |||
Comprehensive income (loss) | 6,874 | |||
Dividends paid / payable to shareowners of The Coca-Cola Company | -3,732 | |||
Dividends paid to noncontrolling interests | 0 | |||
Contributions by noncontrolling interests | 0 | |||
Business Combinations | 0 | |||
Deconsolidation of certain entities | 0 | |||
Purchases of treasury stock | 0 | |||
Impact of employee stock option and restricted stock plans | 0 | |||
27-Sep-13 | 61,187 | 61,187 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Changes in Equity | ||||
31-Dec-12 | -3,385 | |||
Comprehensive income (loss) | -1,314 | |||
Dividends paid / payable to shareowners of The Coca-Cola Company | 0 | |||
Dividends paid to noncontrolling interests | 0 | |||
Contributions by noncontrolling interests | 0 | |||
Business Combinations | 0 | |||
Deconsolidation of certain entities | 0 | |||
Purchases of treasury stock | 0 | |||
Impact of employee stock option and restricted stock plans | 0 | |||
27-Sep-13 | -4,699 | -4,699 | ||
Common Stock [Member] | ||||
Changes in Equity | ||||
31-Dec-12 | 1,760 | |||
Comprehensive income (loss) | 0 | |||
Dividends paid / payable to shareowners of The Coca-Cola Company | 0 | |||
Dividends paid to noncontrolling interests | 0 | |||
Contributions by noncontrolling interests | 0 | |||
Business Combinations | 0 | |||
Deconsolidation of certain entities | 0 | |||
Purchases of treasury stock | 0 | |||
Impact of employee stock option and restricted stock plans | 0 | |||
27-Sep-13 | 1,760 | 1,760 | ||
Capital Surplus | ||||
Changes in Equity | ||||
31-Dec-12 | 11,379 | |||
Comprehensive income (loss) | 0 | |||
Dividends paid / payable to shareowners of The Coca-Cola Company | 0 | |||
Dividends paid to noncontrolling interests | 0 | |||
Contributions by noncontrolling interests | 0 | |||
Business Combinations | 0 | |||
Deconsolidation of certain entities | 0 | |||
Purchases of treasury stock | 0 | |||
Impact of employee stock option and restricted stock plans | 743 | |||
27-Sep-13 | 12,122 | 12,122 | ||
Treasury Stock | ||||
Changes in Equity | ||||
31-Dec-12 | -35,009 | |||
Comprehensive income (loss) | 0 | |||
Dividends paid / payable to shareowners of The Coca-Cola Company | 0 | |||
Dividends paid to noncontrolling interests | 0 | |||
Contributions by noncontrolling interests | 0 | |||
Business Combinations | 0 | |||
Deconsolidation of certain entities | 0 | |||
Purchases of treasury stock | -3,820 | |||
Impact of employee stock option and restricted stock plans | 591 | |||
27-Sep-13 | -38,238 | -38,238 | ||
Noncontrolling Interests | ||||
Changes in Equity | ||||
31-Dec-12 | 378 | |||
Comprehensive income (loss) | 72 | |||
Dividends paid / payable to shareowners of The Coca-Cola Company | 0 | |||
Dividends paid to noncontrolling interests | -54 | |||
Contributions by noncontrolling interests | 1 | |||
Business Combinations | 25 | |||
Deconsolidation of certain entities | -89 | |||
Purchases of treasury stock | 0 | |||
Impact of employee stock option and restricted stock plans | 0 | |||
27-Sep-13 | $333 | $333 |
Significant_Operating_and_Nono1
Significant Operating and Nonoperating Items (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Other Operating Items | |||||
Unusual or infrequent events charges | $3 | $205 | |||
Other Operating Charges | |||||
Other operating charges | 341 | 64 | 594 | 233 | |
Impairment of certain intangible assets | 190 | 0 | 190 | 0 | |
Impairment of Trademarks | 108 | 108 | |||
Goodwill impairment | 82 | 82 | |||
Equity Income (Loss) - Net | |||||
Our proportionate share of unusual or infrequent items recorded by equity method investees | -8 | 10 | 34 | -33 | |
Other Income (Loss) - Net | |||||
Deconsolidation, Gain (Loss), Amount | 615 | 615 | |||
Gains (losses) due to merger of bottling partners | -144 | ||||
Gain (loss) from issuance of additional shares by an equity investee | 0 | 0 | 139 | 92 | |
Corporate | |||||
Other Operating Charges | |||||
Impairment of certain intangible assets | 190 | 190 | |||
Productivity, integration and restructuring initiatives | 41 | 10 | 97 | 18 | |
Other Income (Loss) - Net | |||||
Deconsolidation, Gain (Loss), Amount | 615 | 615 | |||
Gains (losses) due to merger of bottling partners | 30 | 0 | -114 | 0 | |
Gain (loss) from issuance of additional shares by an equity investee | 139 | 92 | |||
Restructuring charges other than productivity and productivity and reinvestments initiatives [Member] | |||||
Other Operating Charges | |||||
Productivity, integration and restructuring initiatives | 45 | 14 | 86 | 44 | |
Productivity initiatives [Member] | |||||
Other Operating Charges | |||||
Productivity, integration and restructuring initiatives | -6 | -9 | |||
Productivity initiatives [Member] | Corporate | |||||
Other Operating Charges | |||||
Productivity, integration and restructuring initiatives | -5 | -1 | -5 | ||
Productivity and Reinvestment [Member] | |||||
Other Operating Charges | |||||
Productivity, integration and restructuring initiatives | 97 | 59 | 312 | 177 | |
Integration of CCE's North American Operations [Member] | |||||
Other Operating Charges | |||||
Productivity, integration and restructuring initiatives | -5 | -5 | |||
License Agreement with Nestle [Member] | |||||
Other Operating Charges | |||||
Other operating charges | 20 | ||||
Brazil Juice Expenses [Member] | |||||
Other Operating Items | |||||
Unusual or infrequent events charges | 9 | 21 | |||
Brazil Juice Expenses [Member] | Cost of goods sold | |||||
Other Operating Items | |||||
Unusual or infrequent events charges | 7 | 15 | |||
Brazil Juice Expenses [Member] | Other operating charges [Member] | |||||
Other Operating Items | |||||
Unusual or infrequent events charges | 2 | 6 | |||
BPW Nestle Joint Venture [Member] | |||||
Equity Income (Loss) - Net | |||||
Our proportionate share of unusual or infrequent items recorded by equity method investees | 14 | ||||
Venezuelan subsidiary | Corporate | |||||
Other Income (Loss) - Net | |||||
Remeasurement Charges on Subsidiary Assets | $140 |
Productivity_Integration_and_R2
Productivity, Integration and Restructuring Initiatives (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 27, 2013 | Dec. 31, 2008 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 27, 2013 |
Productivity and Reinvestment [Member] | Productivity and Reinvestment [Member] | Productivity and Reinvestment [Member] | Productivity and Reinvestment [Member] | Integration of German Bottling and Distribution Operation [Member] | Integration of German Bottling and Distribution Operation [Member] | Integration of German Bottling and Distribution Operation [Member] | Severance pay and benefits | Severance pay and benefits | Outside Services [Member] | Outside Services [Member] | Other direct costs [Member] | Other direct costs [Member] | |
Productivity and Reinvestment [Member] | Productivity and Reinvestment [Member] | Productivity and Reinvestment [Member] | Productivity and Reinvestment [Member] | Productivity and Reinvestment [Member] | Productivity and Reinvestment [Member] | ||||||||
Productivity, Integration and Restructuring Initiatives Disclosures | |||||||||||||
Accrued Balance, Beginning Balance | $52 | $26 | $96 | $37 | $12 | $3 | $6 | $12 | $8 | ||||
Cost incurred | 97 | 59 | 312 | 177 | 45 | 85 | 30 | 109 | 12 | 49 | 55 | 154 | |
Payments | -82 | -271 | -29 | -83 | -3 | -43 | -50 | -145 | |||||
Noncash and exchange | 0 | 0 | 1 | 1 | 0 | 0 | -1 | -1 | |||||
Accrued Balance, Ending Balance | 67 | 67 | 108 | 108 | 39 | 39 | 12 | 12 | 16 | 16 | |||
Restructuring and related costs incurred to date | $582 | $525 | |||||||||||
Number of German bottling and distribution operations for which integration initiatives began in 2008 | 18 |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefit Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 27, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Net periodic pension and other Postretirement benefit cost | ||||
Contributions to pension plan | $574 | $992 | ||
Pension plans, anticipated additional contributions for remainder of current fiscal year | 60 | |||
Pension Benefits | ||||
Net periodic pension and other Postretirement benefit cost | ||||
Service cost | 69 | 88 | 207 | 224 |
Interest cost | 93 | 97 | 282 | 292 |
Expected return on plan assets | -163 | -143 | -492 | -431 |
Amortization of prior service cost (credit) | -1 | -1 | -2 | -2 |
Amortization of net actuarial loss | 50 | 34 | 149 | 102 |
Total cost (credit) recognized in statements of income | 48 | 75 | 144 | 185 |
Other Benefits | ||||
Net periodic pension and other Postretirement benefit cost | ||||
Service cost | 9 | 8 | 27 | 25 |
Interest cost | 10 | 11 | 31 | 33 |
Expected return on plan assets | -2 | -2 | -7 | -6 |
Amortization of prior service cost (credit) | -3 | -13 | -8 | -39 |
Amortization of net actuarial loss | 3 | 2 | 9 | 5 |
Total cost (credit) recognized in statements of income | $17 | $6 | $52 | $18 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Income taxes | |||||
U.S. statutory rate (as a percent) | 35.00% | ||||
Effective tax rate estimated for 2013 (as a percent) | 23.00% | 23.00% | |||
Income tax expense | $925 | $755 | $2,331 | $2,236 | |
Effective tax rate (as a percent) | 27.40% | 24.50% | 25.20% | 23.70% | |
Tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented | |||||
Asset impairments | 0 | 0 | 0 | 0 | |
Productivity and reinvestment program | -37 | -21 | -115 | -65 | |
Other productivity, integration and restructuring initiatives | 1 | 4 | 2 | 5 | |
Transaction gains and losses | 255 | 0 | 303 | 33 | |
Certain tax matters | -20 | 7 | -20 | -26 | |
Other - net | 4 | -4 | 0 | -18 | |
Unusual and/or infrequent items [Abstract] | |||||
Impairment of certain intangible assets | 190 | 0 | 190 | 0 | |
Deconsolidation, Gain (Loss), Amount | 615 | 615 | |||
Charge for Deferred Revenue and Gross Profit | 60 | 60 | |||
Charge related to Company's fixed assets | 11 | 11 | |||
Gains (losses) due to merger of bottling partners | -144 | ||||
Gain (loss) from issuance of additional shares by an equity investee | 0 | 0 | 139 | 92 | |
Other Charges | 3 | 205 | |||
Gains (Losses) on Extinguishment of Debt | -23 | -23 | |||
Remeasurement and Translation loss due to currency devaluation | 149 | ||||
Other operating charges | 341 | 64 | 594 | 233 | |
Other infrequent or unusual charges net | -585 | 19 | -574 | 22 | |
Our proportionate share of unusual or infrequent items recorded by equity method investees | -8 | 10 | 34 | -33 | |
Impairment of Trademarks | 108 | 108 | |||
Goodwill impairment | 82 | 82 | |||
Productivity and Reinvestment [Member] | |||||
Unusual and/or infrequent items [Abstract] | |||||
Productivity, integration and restructuring initiatives | 97 | 59 | 312 | 177 | |
Restructuring Charges except for Productivity and Reinvestment Program [Member] | |||||
Unusual and/or infrequent items [Abstract] | |||||
Productivity, integration and restructuring initiatives | 43 | 3 | 82 | 30 | |
License Agreement with Nestle [Member] | |||||
Unusual and/or infrequent items [Abstract] | |||||
Other operating charges | 20 | ||||
BPW Nestle Joint Venture [Member] | |||||
Unusual and/or infrequent items [Abstract] | |||||
Our proportionate share of unusual or infrequent items recorded by equity method investees | 14 | ||||
Brazil Juice Expenses [Member] | |||||
Unusual and/or infrequent items [Abstract] | |||||
Other Charges | 9 | 21 | |||
Corporate | |||||
Unusual and/or infrequent items [Abstract] | |||||
Impairment of certain intangible assets | 190 | 190 | |||
Productivity, integration and restructuring initiatives | 41 | 10 | 97 | 18 | |
Deconsolidation, Gain (Loss), Amount | 615 | 615 | |||
Gains (losses) due to merger of bottling partners | 30 | 0 | -114 | 0 | |
Gain (loss) from issuance of additional shares by an equity investee | 139 | 92 | |||
Gains (Losses) on Extinguishment of Debt | -23 | ||||
Bottling investments [Member] | |||||
Unusual and/or infrequent items [Abstract] | |||||
Productivity, integration and restructuring initiatives | 45 | 14 | 86 | 45 | |
Our proportionate share of unusual or infrequent items recorded by equity method investees | ($8) | $10 | $25 | ($33) |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Available-for-sale securities | $4,687 | $4,593 |
Level 1 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 139 | 146 |
Available-for-sale securities | 1,357 | 1,390 |
Derivatives, assets | 20 | 47 |
Total assets | 1,516 | 1,583 |
Derivatives, liabilities | 5 | 35 |
Total liabilities | 5 | 35 |
Level 2 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 172 | 116 |
Available-for-sale securities | 3,216 | 3,068 |
Derivatives, assets | 729 | 583 |
Total assets | 4,117 | 3,767 |
Derivatives, liabilities | 162 | 98 |
Total liabilities | 162 | 98 |
Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 3 | 4 |
Available-for-sale securities | 114 | 135 |
Derivatives, assets | 0 | 0 |
Total assets | 117 | 139 |
Derivatives, liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Netting Adjustment | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Derivatives, assets | -144 | -116 |
Total assets | -144 | -116 |
Derivatives, liabilities | -145 | -121 |
Total liabilities | -145 | -121 |
Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 314 | 266 |
Available-for-sale securities | 4,687 | 4,593 |
Derivatives, assets | 605 | 514 |
Total assets | 5,606 | 5,373 |
Derivatives, liabilities | 22 | 12 |
Total liabilities | 22 | 12 |
Fair Value Measurements | Prepaid expenses and other assets | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, assets | 103 | 137 |
Fair Value Measurements | Other Assets | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, assets | 502 | 377 |
Fair Value Measurements | Accounts payable and accrued expenses | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, liabilities | 8 | 4 |
Fair Value Measurements | Other Liabilities | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, liabilities | $14 | $8 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 |
Nonrecurring fair value measurements | |||||
Asset Impairment Charges | ($190) | $0 | ($190) | $0 | |
Gain (loss) from issuance of additional shares by an equity investee | 0 | 0 | 139 | 92 | |
Gains (losses) due to merger of bottling partners | -144 | ||||
Nonrecurring gain (Loss) fair value adjustment | -160 | 0 | -165 | 92 | |
Corporate | |||||
Nonrecurring fair value measurements | |||||
Asset Impairment Charges | -190 | -190 | |||
Gain (loss) from issuance of additional shares by an equity investee | 139 | 92 | |||
Gains (losses) due to merger of bottling partners | $30 | $0 | ($114) | $0 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | Sep. 27, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other fair value disclosures | ||
Long-term debt, including the current portion, carrying amount | $17,367 | $16,313 |
Long-term debt, including the current portion, fair value | $17,764 | $17,157 |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 28, 2012 | Sep. 27, 2013 | Sep. 28, 2012 | Dec. 31, 2012 |
Net operating revenues: | ||||||
Third party | $12,030 | $12,340 | $35,814 | $36,562 | ||
Intersegment | 0 | 0 | 0 | 0 | ||
Total net revenues | 12,030 | 12,340 | 35,814 | 36,562 | ||
Operating Income (Loss) | 2,472 | 2,793 | 8,123 | 8,596 | ||
Income (loss) before income taxes | 3,380 | 3,084 | 9,249 | 9,432 | ||
Identifiable operating assets | 77,897 | 76,504 | 77,897 | 76,504 | 75,726 | |
Noncurrent investments | 11,535 | 10,150 | 11,535 | 10,150 | 10,448 | |
Unusual or infrequent events charges | 3 | 205 | ||||
Gain (loss) from issuance of additional shares by an equity investee | 0 | 0 | 139 | 92 | ||
Our proportionate share of unusual or infrequent items recorded by equity method investees | -8 | 10 | 34 | -33 | ||
Gains (Losses) on Extinguishment of Debt | -23 | -23 | ||||
Impairment of certain intangible assets | 190 | 0 | 190 | 0 | ||
Deconsolidation, Gain (Loss), Amount | 615 | 615 | ||||
Gains (losses) due to merger of bottling partners | -144 | |||||
Brazil Juice Expenses [Member] | ||||||
Net operating revenues: | ||||||
Unusual or infrequent events charges | 9 | 21 | ||||
BPW Nestle Joint Venture [Member] | ||||||
Net operating revenues: | ||||||
Our proportionate share of unusual or infrequent items recorded by equity method investees | 14 | |||||
Eurasia and Africa | ||||||
Net operating revenues: | ||||||
Third party | 669 | 698 | 2,103 | 2,041 | ||
Intersegment | 0 | 0 | 0 | 0 | ||
Total net revenues | 669 | 698 | 2,103 | 2,041 | ||
Operating Income (Loss) | 231 | 244 | 845 | 806 | ||
Income (loss) before income taxes | 228 | 248 | 868 | 821 | ||
Identifiable operating assets | 1,340 | 1,373 | 1,340 | 1,373 | 1,299 | |
Noncurrent investments | 1,160 | 1,143 | 1,160 | 1,143 | 1,155 | |
Productivity, integration and restructuring initiatives | 2 | |||||
Eurasia and Africa | BPW Nestle Joint Venture [Member] | ||||||
Net operating revenues: | ||||||
Our proportionate share of unusual or infrequent items recorded by equity method investees | -1 | 2 | ||||
Europe | ||||||
Net operating revenues: | ||||||
Third party | 1,232 | 1,124 | 3,545 | 3,492 | ||
Intersegment | 188 | 165 | 520 | 488 | ||
Total net revenues | 1,420 | 1,289 | 4,065 | 3,980 | ||
Operating Income (Loss) | 742 | 698 | 2,261 | 2,290 | ||
Income (loss) before income taxes | 755 | 716 | 2,318 | 2,340 | ||
Identifiable operating assets | 3,567 | 3,012 | 3,567 | 3,012 | 2,976 | |
Noncurrent investments | 104 | 275 | 104 | 275 | 271 | |
Productivity, integration and restructuring initiatives | 1 | 7 | ||||
Europe | BPW Nestle Joint Venture [Member] | ||||||
Net operating revenues: | ||||||
Our proportionate share of unusual or infrequent items recorded by equity method investees | -3 | 3 | ||||
Latin America | ||||||
Net operating revenues: | ||||||
Third party | 1,208 | 1,171 | 3,504 | 3,381 | ||
Intersegment | 22 | 55 | 169 | 176 | ||
Total net revenues | 1,230 | 1,226 | 3,673 | 3,557 | ||
Operating Income (Loss) | 720 | 734 | 2,209 | 2,164 | ||
Income (loss) before income taxes | 719 | 734 | 2,213 | 2,164 | ||
Identifiable operating assets | 2,672 | 2,576 | 2,672 | 2,576 | 2,759 | |
Noncurrent investments | 525 | 556 | 525 | 556 | 539 | |
Latin America | BPW Nestle Joint Venture [Member] | ||||||
Net operating revenues: | ||||||
Our proportionate share of unusual or infrequent items recorded by equity method investees | 1 | 3 | ||||
North America | ||||||
Net operating revenues: | ||||||
Third party | 5,715 | 5,669 | 16,306 | 16,375 | ||
Intersegment | 4 | 1 | 13 | 13 | ||
Total net revenues | 5,719 | 5,670 | 16,319 | 16,388 | ||
Operating Income (Loss) | 803 | 832 | 1,875 | 2,039 | ||
Income (loss) before income taxes | 805 | 838 | 1,879 | 2,066 | ||
Identifiable operating assets | 34,278 | 33,906 | 34,278 | 33,906 | 34,114 | |
Noncurrent investments | 44 | 21 | 44 | 21 | 39 | |
Productivity, integration and restructuring initiatives | 53 | 48 | 190 | 157 | ||
North America | License Agreement with Nestle [Member] | ||||||
Net operating revenues: | ||||||
Unusual or infrequent events charges | 20 | |||||
North America | Brazil Juice Expenses [Member] | ||||||
Net operating revenues: | ||||||
Unusual or infrequent events charges | 9 | 21 | ||||
North America | BPW Nestle Joint Venture [Member] | ||||||
Net operating revenues: | ||||||
Our proportionate share of unusual or infrequent items recorded by equity method investees | 1 | 1 | ||||
Pacific | ||||||
Net operating revenues: | ||||||
Third party | 1,368 | 1,470 | 4,185 | 4,423 | ||
Intersegment | 128 | 176 | 431 | 498 | ||
Total net revenues | 1,496 | 1,646 | 4,616 | 4,921 | ||
Operating Income (Loss) | 575 | 613 | 2,024 | 2,089 | ||
Income (loss) before income taxes | 585 | 616 | 2,042 | 2,088 | ||
Identifiable operating assets | 1,848 | 2,303 | 1,848 | 2,303 | 2,163 | |
Noncurrent investments | 140 | 126 | 140 | 126 | 127 | |
Productivity, integration and restructuring initiatives | 2 | 1 | 16 | 1 | ||
Pacific | BPW Nestle Joint Venture [Member] | ||||||
Net operating revenues: | ||||||
Our proportionate share of unusual or infrequent items recorded by equity method investees | 2 | 5 | ||||
Bottling investments [Member] | ||||||
Net operating revenues: | ||||||
Third party | 1,811 | 2,182 | 6,047 | 6,742 | ||
Intersegment | 21 | 26 | 61 | 66 | ||
Total net revenues | 1,832 | 2,208 | 6,108 | 6,808 | ||
Operating Income (Loss) | 22 | 44 | 186 | 169 | ||
Income (loss) before income taxes | 214 | 269 | 677 | 750 | ||
Identifiable operating assets | 6,836 | 9,374 | 6,836 | 9,374 | 9,648 | |
Noncurrent investments | 9,486 | 7,953 | 9,486 | 7,953 | 8,253 | |
Productivity, integration and restructuring initiatives | 45 | 14 | 86 | 45 | ||
Our proportionate share of unusual or infrequent items recorded by equity method investees | -8 | 10 | 25 | -33 | ||
Bottling investments [Member] | Venezuelan subsidiary | ||||||
Net operating revenues: | ||||||
Our proportionate share of unusual or infrequent items recorded by equity method investees | 9 | |||||
Corporate | ||||||
Net operating revenues: | ||||||
Third party | 27 | 26 | 124 | 108 | ||
Intersegment | 0 | 0 | 0 | 0 | ||
Total net revenues | 27 | 26 | 124 | 108 | ||
Operating Income (Loss) | -621 | -372 | -1,277 | -961 | ||
Income (loss) before income taxes | 74 | -337 | -748 | -797 | ||
Identifiable operating assets | 27,356 | 23,960 | 27,356 | 23,960 | 22,767 | |
Noncurrent investments | 76 | 76 | 76 | 76 | 64 | |
Productivity, integration and restructuring initiatives | 41 | 10 | 97 | 18 | ||
Gain (loss) from issuance of additional shares by an equity investee | 139 | 92 | ||||
Gains (Losses) on Extinguishment of Debt | -23 | |||||
Impairment of certain intangible assets | 190 | 190 | ||||
Deconsolidation, Gain (Loss), Amount | 615 | 615 | ||||
Gains (losses) due to merger of bottling partners | 30 | 0 | -114 | 0 | ||
Corporate | Venezuelan subsidiary | ||||||
Net operating revenues: | ||||||
Remeasurement Charges on Subsidiary Assets | 140 | |||||
Intersegment Eliminations [Member] | ||||||
Net operating revenues: | ||||||
Third party | 0 | 0 | 0 | 0 | ||
Intersegment | -363 | -423 | -1,194 | -1,241 | ||
Total net revenues | -363 | -423 | -1,194 | -1,241 | ||
Operating Income (Loss) | 0 | 0 | 0 | 0 | ||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | ||
Identifiable operating assets | 0 | 0 | 0 | 0 | 0 | |
Noncurrent investments | 0 | 0 | 0 | 0 | 0 | |
Productivity initiatives [Member] | ||||||
Net operating revenues: | ||||||
Productivity, integration and restructuring initiatives | -6 | -9 | ||||
Productivity initiatives [Member] | Europe | ||||||
Net operating revenues: | ||||||
Productivity, integration and restructuring initiatives | -3 | |||||
Productivity initiatives [Member] | Pacific | ||||||
Net operating revenues: | ||||||
Productivity, integration and restructuring initiatives | -1 | -1 | -1 | |||
Productivity initiatives [Member] | Corporate | ||||||
Net operating revenues: | ||||||
Productivity, integration and restructuring initiatives | -5 | -1 | -5 | |||
Integration of CCE's North American Operations [Member] | ||||||
Net operating revenues: | ||||||
Productivity, integration and restructuring initiatives | -5 | -5 | ||||
Integration of CCE's North American Operations [Member] | North America | ||||||
Net operating revenues: | ||||||
Productivity, integration and restructuring initiatives | ($2) | ($5) | ($2) | ($5) |