Document_and_Entity_Informatio
Document and Entity Information Document (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Feb. 25, 2013 | Jun. 29, 2012 | |
Entity Information [Line Items] | |||
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 | 8-K | ||
Document Period End Date | 31-Dec-12 | ||
Document Fiscal Year Focus | 2012 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 4,456,717,996 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $167,103,981,811 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||
NET OPERATING REVENUES | $48,017 | $46,542 | $35,119 | |||
Cost of goods sold | 19,053 | 18,215 | 12,693 | |||
GROSS PROFIT | 28,964 | 28,327 | 22,426 | |||
Selling, general and administrative expenses | 17,738 | 17,422 | 13,194 | |||
Other operating charges | 447 | 732 | 819 | |||
OPERATING INCOME | 10,779 | 10,173 | 8,413 | |||
Interest income | 471 | 483 | 317 | |||
Interest expense | 397 | 417 | 733 | |||
Equity income (loss) - net | 819 | 690 | 1,025 | |||
Other income (loss) - net | 137 | 529 | 5,185 | |||
INCOME BEFORE INCOME TAXES | 11,809 | 11,458 | 14,207 | |||
Income taxes | 2,723 | 2,812 | 2,370 | |||
CONSOLIDATED NET INCOME | 9,086 | 8,646 | 11,837 | |||
Less: Net income attributable to noncontrolling interests | 67 | 62 | 50 | |||
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $9,019 | $8,584 | $11,787 | |||
BASIC NET INCOME PER SHARE (in dollars per share) | $2 | [1] | $1.88 | [1] | $2.55 | [1] |
DILUTED NET INCOME PER SHARE (in dollars per share) | $1.97 | [1] | $1.85 | [1] | $2.53 | [1] |
AVERAGE SHARES OUTSTANDING (in shares) | 4,504 | 4,568 | 4,616 | |||
Effect of dilutive securities (in shares) | 80 | 78 | 51 | |||
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares) | 4,584 | 4,646 | 4,667 | |||
[1] | Calculated based on net income attributable to shareowners of The Coca-Cola Company. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
CONSOLIDATED NET INCOME | $9,086 | $8,646 | $11,837 |
Other comprehensive income | |||
Net foreign currency translation adjustment | -182 | -692 | -947 |
Net gain (loss) on derivatives | 99 | 145 | -120 |
Net urealized gain (loss) on available-for-sale securities | 178 | -7 | 102 |
Net change in pension and other benefit liabilities | -668 | -763 | 282 |
TOTAL COMPREHENSIVE INCOME | 8,513 | 7,329 | 11,154 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 105 | 10 | 38 |
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $8,408 | $7,319 | $11,116 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $8,442 | $12,803 |
Short-term investments | 5,017 | 1,088 |
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 13,459 | 13,891 |
Marketable securities | 3,092 | 144 |
Trade accounts receivable, less allowances of $53 and $83, respectively | 4,759 | 4,920 |
Inventories | 3,264 | 3,092 |
Prepaid expenses and other assets | 2,781 | 3,450 |
Assets held for sale | 2,973 | 0 |
TOTAL CURRENT ASSETS | 30,328 | 25,497 |
EQUITY METHOD INVESTMENTS | 9,216 | 7,233 |
OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES | 1,232 | 1,141 |
OTHER ASSETS | 3,585 | 3,495 |
PROPERTY, PLANT AND EQUIPMENT - net | 14,476 | 14,939 |
TRADEMARKS WITH INDEFINITE LIVES | 6,527 | 6,430 |
BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES | 7,405 | 7,770 |
GOODWILL | 12,255 | 12,219 |
OTHER INTANGIBLE ASSETS | 1,150 | 1,250 |
TOTAL ASSETS | 86,174 | 79,974 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 8,680 | 9,009 |
Loans and notes payable | 16,297 | 12,871 |
Current maturities of long-term debt | 1,577 | 2,041 |
Accrued income taxes | 471 | 362 |
Liabilities held for sale | 796 | 0 |
TOTAL CURRENT LIABILITIES | 27,821 | 24,283 |
LONG-TERM DEBT | 14,736 | 13,656 |
OTHER LIABILITIES | 5,468 | 5,420 |
DEFERRED INCOME TAXES | 4,981 | 4,694 |
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 | 11,379 | 10,332 |
Reinvested earnings | 58,045 | 53,621 |
Accumulated other comprehensive income (loss) | -3,385 | -2,774 |
Treasury stock, at cost — 2,571 and 2,514 shares, respectively | -35,009 | -31,304 |
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 32,790 | 31,635 |
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 378 | 286 |
TOTAL EQUITY | 33,168 | 31,921 |
TOTAL LIABILITIES AND EQUITY | $86,174 | $79,974 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parentheticals) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, except Per Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $53 | $83 |
Common stock, par value (in dollars per share) | $0.25 | $0.25 |
Common Stock, Shares Authorized | 11,200 | 11,200 |
Common stock, shares issued | 7,040 | 7,040 |
Treasury stock, shares | 2,571 | 2,514 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
OPERATING ACTIVITIES | |||
Consolidated net income | $9,086 | $8,646 | $11,837 |
Depreciation and amortization | 1,982 | 1,954 | 1,443 |
Stock-based compensation expense | 259 | 354 | 380 |
Deferred income taxes | 632 | 1,035 | 604 |
Equity (income) loss - net of dividends | -426 | -269 | -671 |
Foreign currency adjustments | -130 | 7 | 151 |
Significant (gains) losses on sales of assets - net | -98 | -220 | -645 |
Other significant (gains) losses - net | 0 | 0 | -4,713 |
Other operating charges | 166 | 214 | 264 |
Other items | 254 | -354 | 512 |
Net change in operating assets and liabilities | -1,080 | -1,893 | 370 |
Net cash provided by operating activities | 10,645 | 9,474 | 9,532 |
INVESTING ACTIVITIES | |||
Purchases of short-term investments | -9,590 | -4,057 | -4,579 |
Proceeds from disposals of short-term investments | 5,622 | 5,647 | 4,032 |
Acquisitions and investments | -1,535 | -977 | -2,511 |
Purchases of other investments | -5,266 | -787 | -132 |
Proceeds from disposals of bottling companies and other investments | 2,189 | 562 | 972 |
Purchases of property, plant and equipment | -2,780 | -2,920 | -2,215 |
Proceeds from disposals of property, plant and equipment | 143 | 101 | 134 |
Other investing activities | -187 | -93 | -106 |
Net cash provided by (used in) investing activities | -11,404 | -2,524 | -4,405 |
FINANCING ACTIVITIES | |||
Issuances of debt | 42,791 | 27,495 | 15,251 |
Payments of debt | -38,573 | -22,530 | -13,403 |
Issuances of stock | 1,489 | 1,569 | 1,666 |
Purchases of stock for treasury | -4,559 | -4,513 | -2,961 |
Dividends | -4,595 | -4,300 | -4,068 |
Other financing activities | 100 | 45 | 50 |
Net cash provided by (used in) financing activities | -3,347 | -2,234 | -3,465 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -255 | -430 | -166 |
CASH AND CASH EQUIVALENTS | |||
Net increase (decrease) during the year | -4,361 | 4,286 | 1,496 |
Balance at beginning of year | 12,803 | 8,517 | 7,021 |
Balance at end of year | $8,442 | $12,803 | $8,517 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY (USD $) | Total | TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | COMMON STOCK | CAPITAL SURPLUS | REINVESTED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | TREASURY STOCK | EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
In Millions, unless otherwise specified | ||||||||
Balance at beginning of year at Dec. 31, 2009 | $7,657 | $41,618 | ($838) | ($25,398) | $547 | |||
Balance at beginning of year (in shares) at Dec. 31, 2009 | 4,605 | |||||||
Common Stock | 1,760 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchases of treasury stock (in shares) | -98 | |||||||
Treasury stock issued to employees related to stock compensation plans (in shares) | 76 | |||||||
Stock issued to employees related to stock compensation plans | 855 | 824 | ||||||
Replacement share-based awards issued in connection with an acquisition | 237 | |||||||
Tax benefit (charge) from employees stock option and restricted stock plans | 48 | |||||||
Stock-based compensation | 380 | |||||||
Other activities | 0 | |||||||
Net income attributable to shareowners of The Coca-Cola Company | 11,787 | 11,787 | ||||||
Dividends (per share — $1.02, $0.94 and $0.88 in 2012, 2011 and 2010, respectively) | -4,068 | |||||||
Net other comprehensive income (loss) | -671 | -671 | ||||||
Purchases of treasury stock | -3,188 | |||||||
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 31,003 | |||||||
Net income attributable to noncontrolling interests | 50 | 50 | ||||||
Net foreign currency translation adjustment | -12 | |||||||
Dividends paid to noncontrolling interests | -32 | |||||||
Acquisition of interests held by noncontrolling owners | 0 | |||||||
Contributions by noncontrolling interests | 1 | |||||||
Increase due to business combinations | 13 | |||||||
Deconsolidation of certain variable interest entities | -253 | |||||||
Balance at end of year at Dec. 31, 2010 | 9,177 | 49,337 | -1,509 | -27,762 | 314 | |||
Balance at end of year (in shares) at Dec. 31, 2010 | 4,583 | |||||||
Common Stock | 1,760 | 1,760 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchases of treasury stock (in shares) | -127 | |||||||
Treasury stock issued to employees related to stock compensation plans (in shares) | 70 | |||||||
Stock issued to employees related to stock compensation plans | 724 | 830 | ||||||
Replacement share-based awards issued in connection with an acquisition | 0 | |||||||
Tax benefit (charge) from employees stock option and restricted stock plans | 79 | |||||||
Stock-based compensation | 354 | |||||||
Other activities | -2 | |||||||
Net income attributable to shareowners of The Coca-Cola Company | 8,584 | 8,584 | ||||||
Dividends (per share — $1.02, $0.94 and $0.88 in 2012, 2011 and 2010, respectively) | -4,300 | |||||||
Net other comprehensive income (loss) | -1,265 | -1,265 | ||||||
Purchases of treasury stock | -4,372 | |||||||
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 31,635 | |||||||
Net income attributable to noncontrolling interests | 62 | 62 | ||||||
Net foreign currency translation adjustment | -52 | |||||||
Dividends paid to noncontrolling interests | -38 | |||||||
Acquisition of interests held by noncontrolling owners | 0 | |||||||
Contributions by noncontrolling interests | 0 | |||||||
Increase due to business combinations | 0 | |||||||
Deconsolidation of certain variable interest entities | 0 | |||||||
Balance at end of year at Dec. 31, 2011 | 31,921 | 10,332 | 53,621 | -2,774 | -31,304 | 286 | ||
Balance at end of year (in shares) at Dec. 31, 2011 | 4,526 | |||||||
Common Stock | 1,760 | 1,760 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchases of treasury stock (in shares) | -121 | |||||||
Treasury stock issued to employees related to stock compensation plans (in shares) | 64 | |||||||
Stock issued to employees related to stock compensation plans | 640 | 786 | ||||||
Replacement share-based awards issued in connection with an acquisition | 0 | |||||||
Tax benefit (charge) from employees stock option and restricted stock plans | 144 | |||||||
Stock-based compensation | 259 | |||||||
Other activities | 4 | |||||||
Net income attributable to shareowners of The Coca-Cola Company | 9,019 | 9,019 | ||||||
Dividends (per share — $1.02, $0.94 and $0.88 in 2012, 2011 and 2010, respectively) | -4,595 | |||||||
Net other comprehensive income (loss) | -611 | -611 | ||||||
Purchases of treasury stock | -4,491 | |||||||
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 32,790 | |||||||
Net income attributable to noncontrolling interests | 67 | 67 | ||||||
Net foreign currency translation adjustment | 38 | |||||||
Dividends paid to noncontrolling interests | -48 | |||||||
Acquisition of interests held by noncontrolling owners | -15 | |||||||
Contributions by noncontrolling interests | 0 | |||||||
Increase due to business combinations | 50 | |||||||
Deconsolidation of certain variable interest entities | 0 | |||||||
Balance at end of year at Dec. 31, 2012 | $33,168 | $11,379 | $58,045 | ($3,385) | ($35,009) | $378 | ||
Balance at end of year (in shares) at Dec. 31, 2012 | 4,469 |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY (Parentheticals) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Dividends per share | $1.02 | $0.94 | $0.88 |
BUSINESS_AND_SUMMARY_OF_SIGNIF
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Description of Business | ||||||||||||
The Coca-Cola Company is the world's largest beverage company. We own or license and market more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. We own and market four of the world's top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite. Finished beverage products bearing our trademarks, sold in the United States since 1886, are now sold in more than 200 countries. | ||||||||||||
We make our branded beverage products available to consumers throughout the world through our network of Company-owned or -controlled bottling and distribution operations, bottling partners, distributors, wholesalers and retailers — the world's largest beverage distribution system. Of the approximately 57 billion beverage servings of all types consumed worldwide every day, beverages bearing trademarks owned by or licensed to us account for more than 1.8 billion servings. | ||||||||||||
On October 2, 2010, we acquired the former North America business of Coca-Cola Enterprises Inc. ("CCE"), one of our major bottlers, consisting of CCE's production, sales and distribution operations in the United States, Canada, the British Virgin Islands, the United States Virgin Islands and the Cayman Islands, and a substantial majority of CCE's corporate segment. Upon completion of the CCE transaction, we combined the management of the acquired North America business with the management of our existing foodservice business; Minute Maid and Odwalla juice businesses; North America supply chain operations; and Company-owned bottling operations in Philadelphia, Pennsylvania, into a unified bottling and customer service organization called Coca-Cola Refreshments ("CCR"). In addition, we reshaped our remaining Coca-Cola North America ("CCNA") operations into an organization that primarily provides franchise leadership and consumer marketing and innovation for the North American market. | ||||||||||||
Our Company markets, manufactures and sells: | ||||||||||||
• | beverage concentrates, sometimes referred to as "beverage bases," and syrups, including fountain syrups (we refer to this part of our business as our "concentrate business" or "concentrate operations"); and | |||||||||||
• | finished sparkling and still beverages (we refer to this part of our business as our "finished product business" or "finished product operations"). | |||||||||||
Generally, finished product operations generate higher net operating revenues but lower gross profit margins than concentrate operations. | ||||||||||||
In our concentrate operations, we typically generate net operating revenues by selling concentrates and syrups to authorized bottling and canning operations (to which we typically refer as our "bottlers" or our "bottling partners"). Our bottling partners either combine the concentrates with sweeteners (depending on the product), still water and/or sparkling water, or combine the syrups with sparkling water to produce finished beverages. The finished beverages are packaged in authorized containers bearing our trademarks or trademarks licensed to us — such as cans and refillable and nonrefillable glass and plastic bottles — and are then sold to retailers directly or, in some cases, through wholesalers or other bottlers. Outside the United States, we also sell concentrates for fountain beverages to our bottling partners who are typically authorized to manufacture fountain syrups, which they sell to fountain retailers such as restaurants and convenience stores which use the fountain syrups to produce beverages for immediate consumption, or to fountain wholesalers who in turn sell and distribute the fountain syrups to fountain retailers. | ||||||||||||
Our finished product operations consist primarily of the production, sales and distribution operations managed by CCR and our Company-owned or -controlled bottling and distribution operations. CCR is included in our North America operating segment, and our Company-owned or -controlled bottling and distribution operations are included in our Bottling Investments operating segment. Our finished product operations generate net operating revenues by selling sparkling beverages and a variety of still beverages, such as juices and juice drinks, energy and sports drinks, ready-to-drink teas and coffees, and certain water products, to retailers or to distributors, wholesalers and bottling partners who distribute them to retailers. In addition, in the United States, we manufacture fountain syrups and sell them to fountain retailers, such as restaurants and convenience stores who use the fountain syrups to produce beverages for immediate consumption, or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers. In the United States, we authorize wholesalers to resell our fountain syrups through nonexclusive appointments that neither restrict us in setting the prices at which we sell fountain syrups to the wholesalers nor restrict the territories in which the wholesalers may resell in the United States. | ||||||||||||
Summary of Significant Accounting Policies | ||||||||||||
Basis of Presentation | ||||||||||||
Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Furthermore, when testing assets for impairment in future periods, if management uses different assumptions or if different conditions occur, impairment charges may result. | ||||||||||||
We use the equity method to account for investments in companies, if our investment provides us with the ability to exercise significant influence over operating and financial policies of the investee. Our consolidated net income includes our Company's proportionate share of the net income or loss of these companies. Our judgment regarding the level of influence over each equity method investment includes considering key factors such as our ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions. | ||||||||||||
We eliminate from our financial results all significant intercompany transactions, including the intercompany transactions with consolidated variable interest entities ("VIEs") and the intercompany portion of transactions with equity method investees. | ||||||||||||
Effective January 1, 2012, the Company elected to change our accounting methodology for determining the market-related value of assets for our U.S. qualified defined benefit pension plans. The market-related value of assets is used to determine the Company's expected return on assets, a component of our annual pension expense calculation. The Company previously used a smoothing technique to calculate our market-related value of assets, which reflected changes in the fair value over no more than five years. However, we now use the actual fair value of plan assets to determine our expected return on those assets for all of our defined benefit plans. Although both methods are permitted under accounting principles generally accepted in the United States, the Company believes our new methodology is preferable as it accelerates the recognition of gains and losses in the determination of our annual pension expense. The Company's change in accounting methodology has been applied retrospectively, and we have adjusted all applicable prior period financial information presented herein as required. | ||||||||||||
On July 27, 2012, the Company's certificate of incorporation was amended to increase the number of authorized shares of common stock from 5.6 billion to 11.2 billion and effect a two-for-one stock split of the common stock. The record date for the stock split was July 27, 2012, and the additional shares were distributed on August 10, 2012. Each shareowner of record on the close of business on the record date received one additional share of common stock for each share held. All share and per share data presented herein reflect the impact of the increase in authorized shares and the stock split, as appropriate. | ||||||||||||
Any prior period amounts that were revised as a result of the changes described above have been labeled "as adjusted" herein. Certain other amounts in the prior years' consolidated financial statements and notes have been revised to conform to the current year presentation. | ||||||||||||
Principles of Consolidation | ||||||||||||
Our Company consolidates all entities that we control by ownership of a majority voting interest as well as VIEs for which our Company is the primary beneficiary. Generally, we consolidate only business enterprises that we control by ownership of a majority voting interest. However, there are situations in which consolidation is required even though the usual condition of consolidation (ownership of a majority voting interest) does not apply. Generally, this occurs when an entity holds an interest in another business enterprise that was achieved through arrangements that do not involve voting interests, which results in a disproportionate relationship between such entity's voting interests in, and its exposure to the economic risks and potential rewards of, the other business enterprise. This disproportionate relationship results in what is known as a variable interest, and the entity in which we have the variable interest is referred to as a "VIE." An enterprise must consolidate a VIE if it is determined to be the primary beneficiary of the VIE. The primary beneficiary has both (a) the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and (b) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||||||||||||
Our Company holds interests in certain VIEs, primarily bottling and container manufacturing operations, for which we were not determined to be the primary beneficiary. Our variable interests in these VIEs primarily relate to profit guarantees or subordinated financial support. Refer to Note 11. Although these financial arrangements resulted in us holding variable interests in these entities, they did not empower us to direct the activities of the VIEs that most significantly impact the VIEs' economic performance. Our Company's investments, plus any loans and guarantees, related to these VIEs totaled $1,776 million and $1,183 million as of December 31, 2012 and 2011, respectively, representing our maximum exposures to loss. The Company's investments, plus any loans and guarantees, related to these VIEs were not significant to the Company's consolidated financial statements. | ||||||||||||
In addition, our Company holds interests in certain VIEs, primarily bottling and container manufacturing operations, for which we were determined to be the primary beneficiary. As a result, we have consolidated these entities. Our Company's investments, plus any loans and guarantees, related to these VIEs totaled $234 million and $199 million as of December 31, 2012 and 2011, respectively, representing our maximum exposures to loss. The assets and liabilities of VIEs for which we are the primary beneficiary were not significant to the Company's consolidated financial statements. | ||||||||||||
Creditors of our VIEs do not have recourse against the general credit of the Company, regardless of whether they are accounted for as consolidated entities. | ||||||||||||
Assets and Liabilities Held for Sale | ||||||||||||
Our Company classifies long-lived assets (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset (disposal group); the asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups); an active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated; the sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset (disposal group) beyond one year; the asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. | ||||||||||||
We initially measure a long-lived asset (disposal group) that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset (disposal group) until the date of sale. We assess the fair value of a long-lived asset (disposal group) less any costs to sell each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset (disposal group), as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. | ||||||||||||
Upon determining that a long-lived asset (disposal group) meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale, respectively, in our consolidated balance sheet. | ||||||||||||
Risks and Uncertainties | ||||||||||||
Factors that could adversely impact the Company's operations or financial results include, but are not limited to, the following: obesity and other health concerns; water scarcity and poor quality; changes in the nonalcoholic beverage business environment and retail landscape; increased competition; increased demand for food products and decreased agricultural productivity; consolidation in the retail channel or the loss of key retail or foodservice customers; an inability to expand operations in developing and emerging markets; fluctuations in foreign currency exchange rates; interest rate increases; an inability to maintain good relationships with our bottling partners; a deterioration in our bottling partners' financial condition; increases in income tax rates, changes in income tax laws or unfavorable resolution of tax matters; increased or new indirect taxes in the United States or in other major markets; increased cost, disruption of supply or shortage of energy or fuels; increased cost, disruption of supply or shortage of ingredients, other raw materials or packaging materials; changes in laws and regulations relating to beverage containers and packaging; significant additional labeling or warning requirements or limitations on the availability of our products; an inability to protect our information systems against service interruption, misappropriation of data or breaches of security; unfavorable general economic conditions in the United States; unfavorable economic and political conditions in international markets; litigation or legal proceedings; adverse weather conditions; climate change; damage to our brand image and corporate reputation from negative publicity related to product safety or quality, human and workplace rights, obesity or other issues, even if unwarranted; changes in, or failure to comply with, the laws and regulations applicable to our products or our business operations; changes in accounting standards; an inability to achieve our overall long-term goals; continuing uncertainty in the global credit markets; one or more of our counterparty financial institutions defaulting on their obligations to us or failing; an inability to realize additional benefits targeted by our productivity and reinvestment program; an inability to renew collective bargaining agreements on satisfactory terms, or we or our bottling partners experience strikes, work stoppages or labor unrest; future impairment charges; future multi-employer plan withdrawal liabilities; an inability to successfully integrate and manage our Company-owned or -controlled bottling operations; and global or regional catastrophic events. | ||||||||||||
Our Company monitors our operations with a view to minimizing the impact to our overall business that could arise as a result of the risks and uncertainties inherent in our business. | ||||||||||||
Revenue Recognition | ||||||||||||
Our Company recognizes revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price charged is fixed or determinable, and collectibility is reasonably assured. For our Company, this generally means that we recognize revenue when title to our products is transferred to our bottling partners, resellers or other customers. In particular, title usually transfers upon shipment to or receipt at our customers' locations, as determined by the specific sales terms of the transactions. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part. | ||||||||||||
Deductions from Revenue | ||||||||||||
Our customers can earn certain incentives including, but not limited to, cash discounts, funds for promotional and marketing activities, volume-based incentive programs and support for infrastructure programs. The costs associated with these incentives are included in deductions from revenue, a component of net operating revenues in our consolidated statements of income. For customer incentives that must be earned, management must make estimates related to the contractual terms, customer performance and sales volume to determine the total amounts earned and to be recorded in deductions from revenue. In making these estimates, management considers past results. The actual amounts ultimately paid may be different from our estimates. | ||||||||||||
In some situations, the Company may determine it to be advantageous to make advance payments to specific customers to fund certain marketing activities intended to generate profitable volume and/or invest in infrastructure programs with our bottlers that are directed at strengthening our bottling system and increasing unit case volume. The Company also makes advance payments to certain customers for distribution rights. The advance payments made to customers are initially capitalized and included in our consolidated balance sheets in prepaid expenses and other assets and noncurrent other assets, depending on the duration of the agreements. The assets are amortized over the applicable periods and included in deductions from revenue. The duration of these agreements typically ranges from 4 to 10 years. | ||||||||||||
Amortization expense for infrastructure programs was $86 million, $90 million and $137 million in 2012, 2011 and 2010, respectively. The aggregate deductions from revenue recorded by the Company in relation to these programs, including amortization expense on infrastructure programs, were $6.1 billion, $5.8 billion and $5.0 billion in 2012, 2011 and 2010, respectively. | ||||||||||||
Advertising Costs | ||||||||||||
Our Company expenses 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. Advertising costs included in the line item selling, general and administrative expenses in our consolidated statements of income were $3.3 billion, $3.3 billion and $2.9 billion in 2012, 2011 and 2010, respectively. As of December 31, 2012 and 2011, advertising and production costs of $295 million and $349 million, respectively, were primarily recorded in the line item prepaid expenses and other assets in our consolidated balance sheets. | ||||||||||||
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. | ||||||||||||
Shipping and Handling Costs | ||||||||||||
Shipping and handling costs related to the movement of finished goods from manufacturing locations to our sales distribution centers are included in the line item cost of goods sold in our consolidated statements of income. Shipping and handling costs incurred to move finished goods from our sales distribution centers to customer locations are included in the line item selling, general and administrative expenses in our consolidated statements of income. As a result of our acquisition of CCE's former North America business, the amount of shipping and handling costs recorded in the line item selling, general and administrative expenses increased significantly in 2011 when compared to 2010. During the years ended December 31, 2012 and 2011, the Company recorded shipping and handling costs of $2.8 billion and $2.4 billion, respectively, in the line item selling, general and administrative expenses. Our customers do not pay us separately for shipping and handling costs related to finished goods. | ||||||||||||
Net Income Per Share | ||||||||||||
Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted net income per share is computed similarly to basic net income per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. Approximately 34 million, 32 million (as adjusted) and 77 million (as adjusted) stock option awards were excluded from the computations of diluted net income per share in 2012, 2011 and 2010, respectively, because the awards would have been antidilutive for the years presented. | ||||||||||||
Cash Equivalents | ||||||||||||
We classify time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor our credit risk concentrations. | ||||||||||||
Short-Term Investments | ||||||||||||
We classify time deposits and other investments that have maturities of greater than three months but less than one year as short-term investments. | ||||||||||||
Investments in Equity and Debt Securities | ||||||||||||
We use the equity method to account for our investments in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. We include our proportionate share of earnings and/or losses of our equity method investees in equity income (loss) — net in our consolidated statements of income. The carrying value of our equity investments is reported in equity method investments in our consolidated balance sheets. Refer to Note 6. | ||||||||||||
We account for investments in companies that we do not control or account for under the equity method either at fair value or under the cost method, as applicable. Investments in equity securities are carried at fair value if the fair value of the security is readily determinable. Equity investments carried at fair value are classified as either trading or available-for-sale securities 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 other income (loss) — net in our consolidated statements of income. Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in our consolidated balance sheets as a component of accumulated other comprehensive income (loss) ("AOCI"). Trading securities are reported as either marketable securities or other assets in our consolidated balance sheets. Securities classified as available-for-sale are reported as either marketable securities, other investments or other assets in our consolidated balance sheets, depending on the length of time we intend to hold the investment. Refer to Note 3. | ||||||||||||
Investments in equity securities that we do not control or account for under the equity method and do not have readily determinable fair values are accounted for under the cost method. Cost method investments are originally recorded at cost, and we record dividend income when applicable dividends are declared. Cost method investments are reported as other investments in our consolidated balance sheets, and dividend income from cost method investments is reported in the line item other income (loss) — net in our consolidated statements of income. | ||||||||||||
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. | ||||||||||||
Each reporting period we review all of our investments in equity and debt securities, except for those classified as trading, to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the fair value of each investment. When such events or changes occur, we evaluate the fair value compared to our cost basis in the investment. We also perform this evaluation every reporting period for each investment for which our cost basis exceeded the fair value in the prior period. The fair values of most of our investments in publicly traded companies are often readily available based on quoted market prices. For investments in nonpublicly traded companies, management's assessment of fair value is based on valuation methodologies including discounted cash flows, estimates of sales proceeds and appraisals, as appropriate. We consider the assumptions that we believe hypothetical marketplace participants would use in evaluating estimated future cash flows when employing the discounted cash flow or estimates of sales proceeds valuation methodologies. | ||||||||||||
In the event the fair value of an investment declines below our cost basis, management determines if the decline in fair value is other than temporary. If management determines the decline is other than temporary, an impairment charge is recorded. Management's assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the extent to which the market value has been less than our cost basis, the financial condition and near-term prospects of the issuer, and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. | ||||||||||||
Trade Accounts Receivable | ||||||||||||
We record trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the trade accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on our history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and our relationships with, and the economic status of, our bottling partners and customers. We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations. Activity in the allowance for doubtful accounts was as follows (in millions): | ||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||
Balance at beginning of year | $ | 83 | $ | 48 | $ | 55 | ||||||
Net charges to costs and expenses | 5 | 56 | 21 | |||||||||
Write-offs | (19 | ) | (12 | ) | (18 | ) | ||||||
Other1 | (16 | ) | (9 | ) | (10 | ) | ||||||
Balance at end of year | $ | 53 | $ | 83 | $ | 48 | ||||||
1 | Other includes acquisitions, divestitures, foreign currency translation and the impact of transferring the assets of our consolidated Philippine and Brazilian bottling operations to assets held for sale. | |||||||||||
A significant portion of our net operating revenues and corresponding accounts receivable is derived from sales of our products in international markets. Refer to Note 19. We also generate a significant portion of our net operating revenues by selling concentrates and syrups to bottlers in which we have a noncontrolling interest, including Coca-Cola Hellenic Bottling Company S.A. ("Coca-Cola Hellenic"), Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA") and Coca-Cola Amatil Limited ("Coca-Cola Amatil"). Refer to Note 6. | ||||||||||||
Inventories | ||||||||||||
Inventories consist primarily of raw materials and packaging (which includes 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. Refer to Note 4. | ||||||||||||
Derivative Instruments | ||||||||||||
Our Company, when deemed appropriate, 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. All derivatives are carried at fair value in our consolidated balance sheets in the line items prepaid expenses and other assets or accounts payable and accrued expenses, as applicable. The cash flow impact of the Company's derivative instruments is primarily included in our consolidated statements of cash flows in net cash provided by operating activities. Refer to Note 5. | ||||||||||||
Property, Plant and Equipment | ||||||||||||
Property, plant and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded principally by the straight-line method over the estimated useful lives of our assets, which are reviewed periodically and generally have the following ranges: buildings and improvements: 40 years or less; and machinery, equipment and vehicle fleet: 20 years or less. Land is not depreciated, and construction in progress is not depreciated until ready for service. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, including renewals that are deemed to be reasonably assured, or the estimated useful life of the improvement. Depreciation is not recorded during the period in which a long-lived asset (disposal group) is classified as held for sale, even if the asset (disposal group) continues to generate revenue during the period. Depreciation expense, including the depreciation expense of assets under capital lease, totaled $1,704 million, $1,654 million and $1,188 million in 2012, 2011 and 2010, respectively. Amortization expense for leasehold improvements totaled $19 million, $18 million and $16 million in 2012, 2011 and 2010, respectively. | ||||||||||||
Certain events or changes in circumstances may indicate that the recoverability of the carrying amount of property, plant and equipment should be assessed, including, among others, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present, we estimate the future cash flows expected to result from the use of the asset (or asset group) and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. We use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models, which are consistent with the assumptions we believe hypothetical marketplace participants would use. Refer to Note 7. | ||||||||||||
Goodwill, Trademarks and Other Intangible Assets | ||||||||||||
We classify intangible assets into three categories: (1) intangible assets with definite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their useful lives, generally ranging from 1 to 20 years. Refer to Note 8. | ||||||||||||
When facts and circumstances indicate that the carrying value of definite-lived intangible assets may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of sales volume and the resulting gross profit and cash flows. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount of the asset (or asset group) exceeds the fair value. We use a variety of methodologies to determine the fair value of these assets, including discounted cash flow models, which are consistent with the assumptions we believe hypothetical marketplace participants would use. | ||||||||||||
We test intangible assets determined to have indefinite useful lives, including trademarks, franchise rights and goodwill, for impairment annually, or more frequently if events or circumstances indicate that assets might be impaired. Our Company performs these annual impairment reviews as of the first day of our third fiscal quarter. We use a variety of methodologies in conducting impairment assessments of indefinite-lived intangible assets, including, but not limited to, discounted cash flow models, which are based on the assumptions we believe hypothetical marketplace participants would use. For indefinite-lived intangible assets, other than goodwill, if the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. | ||||||||||||
The Company has the option to perform a qualitative assessment of indefinite-lived intangible assets, other than goodwill, prior to completing the impairment test described above. The Company must assess whether it is more likely than not that the fair value of the intangible asset is less than its carrying amount. If the Company concludes that this is the case, it must perform the testing described above. Otherwise, the Company does not need to perform any further assessment. During 2012, the Company only performed qualitative assessments on less than 10 percent of our indefinite-lived intangible assets balance. | ||||||||||||
We perform impairment tests of goodwill at our reporting unit level, which is one level below our operating segments. Our operating segments are primarily based on geographic responsibility, which is consistent with the way management runs our business. Our operating segments are subdivided into smaller geographic regions or territories that we sometimes refer to as "business units." These business units are also our reporting units. The Bottling Investments operating segment includes all Company-owned or consolidated bottling operations, regardless of geographic location, except for bottling operations managed by CCR, which are included in our North America operating segment. Generally, each Company-owned or consolidated bottling operation within our Bottling Investments operating segment is its own reporting unit. Goodwill is assigned to the reporting unit or units that benefit from the synergies arising from each business combination. | ||||||||||||
The goodwill impairment test consists of a two-step process, if necessary. The first step is to compare the fair value of a reporting unit to its carrying value, including goodwill. We typically use discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those we believe hypothetical marketplace participants would use. If the fair value of the reporting unit is less than its carrying value, the second step of the impairment test must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The loss recognized cannot exceed the carrying amount of goodwill. | ||||||||||||
The Company has the option to perform a qualitative assessment of goodwill prior to completing the two-step process described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the two-step process. Otherwise, the Company will forego the two-step process and does not need to perform any further testing. During 2012, the Company only performed qualitative assessments on less than 10 percent of our consolidated goodwill balance. | ||||||||||||
Impairment charges related to intangible assets are generally recorded in the line item other operating charges or, to the extent they relate to equity method investees, in the line item equity income (loss) — net in our consolidated statements of income. | ||||||||||||
Contingencies | ||||||||||||
Our Company is involved in various legal proceedings and tax matters. Due to their nature, such legal proceedings and tax matters involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties and governmental actions. Management assesses the probability of loss for such contingencies and accrues a liability and/or discloses the relevant circumstances, as appropriate. Refer to Note 11. | ||||||||||||
Stock-Based Compensation | ||||||||||||
Our Company currently sponsors stock option plans and restricted stock award plans. The fair value of our stock option grants is estimated on the grant date using a Black-Scholes-Merton option-pricing model. The Company recognizes compensation expense on a straight-line basis over the period the grant is earned by the employee, generally four years. | ||||||||||||
The fair value of our restricted stock awards is the quoted market value of the Company's stock on the grant date less the present value of the expected dividends not received during the relevant holding period. In the period it becomes probable that the minimum performance criteria specified in the restricted stock award plan will be achieved, we recognize expense for the proportionate share of the total fair value of the award related to the vesting period that has already lapsed. The remaining cost of the award is expensed on a straight-line basis over the balance of the vesting period. In the event the Company determines it is no longer probable that we will achieve the minimum performance criteria specified in the plan, we reverse all of the previously recognized compensation expense in the period such a determination is made. Refer to Note 12. | ||||||||||||
Pension and Other Postretirement Benefit Plans | ||||||||||||
Our Company sponsors and/or contributes to pension and postretirement health care and life insurance benefit plans covering substantially all U.S. employees. We also sponsor nonqualified, unfunded defined benefit pension plans for certain associates and participate in multi-employer pension plans in the United States. In addition, our Company and its subsidiaries have various pension plans and other forms of postretirement arrangements outside the United States. Refer to Note 13. | ||||||||||||
Effective January 1, 2012, the Company elected to change our accounting methodology for determining the market-related value of assets for our U.S. qualified defined benefit pension plans. The market-related value of assets is used to determine the Company's expected return on assets, a component of our annual pension expense calculation. The Company previously used a smoothing technique to calculate our market-related value of assets, which reflected changes in the fair value over no more than five years. However, we now use the actual fair value of plan assets to determine our expected return on those assets for all of our defined benefit plans. Although both methods are permitted under accounting principles generally accepted in the United States, the Company believes our new methodology is preferable as it accelerates the recognition of gains and losses in the determination of our annual pension expense. | ||||||||||||
The Company's change in accounting methodology has been applied retrospectively, and we have adjusted all applicable prior period financial information presented herein as required. The cumulative effect of this change on retained earnings as of January 1, 2011, was an increase of $59 million, with an offset to AOCI. The impact of this change on the Company's income before income taxes was an increase of $4 million and $19 million and a decrease of $36 million during the years ended December 31, 2012, 2011 and 2010, respectively. The impact on the Company's earnings per share was not significant for any of the financial statement periods presented in this report. | ||||||||||||
Income Taxes | ||||||||||||
Income tax expense includes United States, state, local and international income taxes, plus a provision for U.S. taxes on undistributed earnings of foreign subsidiaries not deemed to be indefinitely reinvested. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the financial reporting basis and the tax basis of existing assets and liabilities. The tax rate used to determine the deferred tax assets and liabilities is the enacted tax rate for the year and manner in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company records taxes that are collected from customers and remitted to governmental authorities on a net basis in our consolidated statements of income. | ||||||||||||
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 14. | ||||||||||||
Translation and Remeasurement | ||||||||||||
We translate the assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars at the appropriate spot rates as of the balance sheet date. Generally, our foreign subsidiaries use the local currency as their functional currency. Changes in the carrying value of these assets and liabilities attributable to fluctuations in spot rates are recognized in foreign currency translation adjustment, a component of AOCI. Refer to Note 15. Income statement accounts are translated using the monthly average exchange rates during the year. | ||||||||||||
Monetary assets and liabilities denominated in a currency that is different from a reporting entity's functional currency must first be remeasured from the applicable currency to the legal entity's functional currency. The effect of this remeasurement process is recognized in the line item other income (loss) — net in our consolidated statements of income and is partially offset by the impact of our economic hedging program for certain exposures on our consolidated balance sheets. Refer to Note 5. | ||||||||||||
Hyperinflationary Economies | ||||||||||||
A hyperinflationary economy is one that has cumulative inflation of approximately 100 percent or more over a three-year period. Effective January 1, 2010, Venezuela was determined to be a hyperinflationary economy, and the Venezuelan government devalued the bolivar by resetting the official rate of exchange ("official rate") from 2.15 bolivars per U.S. dollar to 2.6 bolivars per U.S. dollar for essential goods and 4.3 bolivars per U.S. dollar for nonessential goods. In accordance with hyperinflationary accounting under accounting principles generally accepted in the United States, our local subsidiary was required to use the U.S. dollar as its functional currency. As a result, we remeasured the net assets of our Venezuelan subsidiary using the official rate for nonessential goods of 4.3 bolivars per U.S. dollar, which resulted in a loss of $103 million during the first quarter of 2010. The loss was recorded in the line item other income (loss) - net in our consolidated statement of income. We classified the impact of the remeasurement loss in the line item effect of exchange rate changes on cash and cash equivalents in our consolidated statement of cash flows. | ||||||||||||
In June 2010, the Venezuelan government introduced a newly regulated foreign currency exchange system known as the Transaction System for Foreign Currency Denominated Securities ("SITME"). This system, which was subject to annual limits, enabled entities domiciled in Venezuela to exchange their bolivars to U.S. dollars through authorized financial institutions (commercial banks, savings and lending institutions, etc.). | ||||||||||||
In December 2010, the Venezuelan government announced that it was eliminating the official rate of 2.6 bolivars per U.S. dollar for essential goods. As a result, the only two exchange rates available for remeasuring bolivar-denominated transactions as of December 31, 2010, were the official rate of 4.3 bolivars per U.S. dollar and the SITME rate. As discussed above, the Company remeasured the net assets of our Venezuelan subsidiary using the official rate for nonessential goods of 4.3 bolivars per U.S. dollar starting on January 1, 2010. Therefore, the elimination of the official rate for essential goods had no impact on the remeasurement of the net assets of our Venezuelan subsidiary. | ||||||||||||
Subsequent to December 31, 2012, the Venezuelan government devalued its currency further to an official rate of 6.3 bolivars per U.S. dollar. The government also announced that it was discontinuing the SITME foreign exchange system. As a result, the Company will remeasure the net assets of our local subsidiary and recognize the related gains or losses from remeasurement in the line item other income (loss) — net in our consolidated statement of income. Based on the carrying value of our assets and liabilities denominated in Venezuelan bolivar as of December 31, 2012, we anticipate recognizing a remeasurement loss of $100 million to $125 million during the first quarter of 2013. | ||||||||||||
The Company will continue to use the official rate to remeasure the net assets of our Venezuelan subsidiary. If the official rate devalues further, it would result in our Company recognizing additional foreign currency exchange gains or losses in our consolidated financial statements. As of December 31, 2012, our Venezuelan subsidiary held monetary assets of approximately $450 million and monetary liabilities of approximately $85 million. | ||||||||||||
In addition to the foreign currency exchange exposure related to our Venezuelan subsidiary's net assets, we also sell concentrate to our bottling partner in Venezuela from outside the country. These sales are denominated in U.S. dollars. If we are unable to utilize a government-approved exchange rate mechanism for future concentrate sales to our bottling partner in Venezuela, the amount of receivables related to these sales will increase. In addition, we have certain intangible assets associated with products sold in Venezuela. If the bolivar further devalues, it could result in the impairment of these intangible assets. As of December 31, 2012, the carrying value of our accounts receivable from our bottling partner in Venezuela and intangible assets associated with products sold in Venezuela was $216 million. | ||||||||||||
Recently Issued Accounting Guidance | ||||||||||||
In June 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2011-05 which requires companies to present net income and other comprehensive income in one continuous statement or in two separate, but consecutive, statements. In addition, ASU 2011-05 eliminates the option for companies to present the components of other comprehensive income as part of the statement of changes in shareowners' equity. In December 2011, the FASB issued ASU 2011-12 which deferred the requirement to present components of reclassifications of other comprehensive income on the face of the income statement. The Company adopted the non-deferred provisions of ASU 2011-05 as of January 1, 2012, which did not have a material impact on our consolidated financial statements. | ||||||||||||
In February 2013, the FASB issued ASU 2013-02 which requires companies to provide information about the amounts reclassified out of AOCI by component. In addition, companies are required to present, either on the face of the statement where net income is presented or in the accompanying notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, companies are required to cross-reference to other disclosures that provide additional detail on those amounts. ASU 2013-02 is effective prospectively for reporting periods beginning after December 15, 2012. |
ACQUISITIONS_AND_DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Acquisitions and Divestitures Disclosure [ | ||||||||||||
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES | |||||||||||
Acquisitions | ||||||||||||
During 2012, cash payments related to the Company's acquisition and investment activities totaled $1,535 million. These payments were primarily related to the following: our 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; our investment in Mikuni Coca-Cola Bottling Co., Ltd. ("Mikuni"), a bottling partner located in Japan; our acquisition of Sacramento Coca-Cola Bottling Co., Inc. ("Sacramento bottler"); and our acquisition of bottling operations in Vietnam, Cambodia and Guatemala. The Company's investment in Mikuni is being accounted for under the equity method of accounting. | ||||||||||||
The Company's investments in Aujan include 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 completed the transaction for $980 million in total value, of which $820 million was paid in cash by the Company and the remainder was composed of the Company's proportionate share of underlying debt in the acquired entities. The Company's investments in Aujan are being accounted for under the equity method of accounting. | ||||||||||||
During 2011, cash payments related to the Company's acquisition and investment activities totaled $977 million. These payments were primarily related to the acquisitions of Great Plains Coca-Cola Bottling Company ("Great Plains") and Honest Tea, Inc. ("Honest Tea"), and an additional investment in Coca-Cola Central Japan Company ("Central Japan"). In addition, the Company's acquisition and investment activities during 2011 included immaterial cash payments for the finalization of working capital adjustments related to our acquisition of CCE's former North America business. Refer to our discussion of this transaction below. | ||||||||||||
The Company acquired Great Plains on December 30, 2011. The total purchase price for the Great Plains acquisition was approximately $360 million, of which $321 million was paid at closing. The purchase price was primarily allocated to property, plant and equipment, identifiable intangible assets and goodwill. The Company finalized our purchase accounting for Great Plains during the fourth quarter of 2012. | ||||||||||||
During 2011, the Company also acquired the remaining ownership interest of Honest Tea not already owned by the Company. Prior to the Company acquiring the remaining ownership interest of Honest Tea, we accounted for our investment under the equity method of accounting. We remeasured our equity interest in Honest Tea to fair value upon the close of the transaction. The resulting gain on the remeasurement was not significant to our consolidated financial statements. The Company finalized our purchase accounting for Honest Tea during the fourth quarter of 2011. | ||||||||||||
In December 2011, the Company acquired an additional minority interest in Central Japan. As a result, the Company began to account for our investment in Central Japan under the equity method of accounting beginning in December 2011. | ||||||||||||
During 2010, cash payments related to the Company's acquisition and investment activities totaled $2,511 million. These payments were primarily related to the Company's acquisition of CCE's former North America business and the acquisition of certain distribution rights from Dr Pepper Snapple Group, Inc. ("DPS"). See the relevant sections below for further discussion of these transactions. | ||||||||||||
In addition to the transactions listed in the preceding paragraph, our acquisition and investment activities during 2010 also included the acquisition of OAO Nidan Juices ("Nidan"), a Russian juice company, and an additional investment in Fresh Trading Ltd. ("innocent"). Total consideration for the Nidan acquisition was approximately $276 million, which was primarily allocated to property, plant and equipment, identifiable intangible assets and goodwill. The Company finalized our purchase accounting for Nidan in the third quarter of 2011. Under the terms of the agreement for our additional investment in innocent, we have a series of outstanding put and call options with the existing shareowners of innocent for the Company to potentially acquire the remaining shares not already owned by the Company. The put and call options are exercisable in stages between 2013 and 2014. The Company anticipates acquiring the majority of the remaining outstanding shares in the second quarter of 2013. Currently, innocent's founders maintain operational control of the business, and we account for our investment under the equity method of accounting. | ||||||||||||
Acquisition of Coca-Cola Enterprises Inc.'s Former North America Business | ||||||||||||
Pursuant to the terms of the business separation and merger agreement entered into on February 25, 2010, as amended (the "merger agreement"), on October 2, 2010 (the "acquisition date"), we acquired CCE's former North America business. We believe this acquisition will result in an evolved franchise system that will enable us to better serve the unique needs of the North American market. The creation of a unified operating system will strategically position us to better market and distribute our nonalcoholic beverage brands in North America. Refer to Note 18 for information related to the Company's integration initiatives associated with this acquisition. | ||||||||||||
Under the terms of the merger agreement, the Company acquired the 67 percent of CCE's former North America business that was not already owned by the Company for consideration that included: (1) the Company's 33 percent indirect ownership interest in CCE's European operations; (2) cash consideration; and (3) replacement awards issued to certain current and former employees of CCE's corporate operations and former North America business. At closing, CCE shareowners other than the Company exchanged their CCE common stock for common stock in a new entity, which was renamed Coca-Cola Enterprises, Inc. (which is referred to herein as "New CCE") and which continues to hold the European operations held by CCE prior to the acquisition. At closing, New CCE became 100 percent owned by shareowners that held shares of common stock of CCE immediately prior to the closing, other than the Company. As a result of this transaction, the Company does not own any interest in New CCE. | ||||||||||||
As of October 1, 2010, our Company owned 33 percent of the outstanding common stock of CCE. Based on the closing price of CCE's common stock on the last day of trading prior to the acquisition date, the fair value of our investment in CCE was $5,373 million, which reflected the fair value of our ownership in both CCE's European operations and former North America business. We remeasured our equity interest in CCE to fair value upon the close of the transaction. As a result, we recognized a gain of $4,978 million, which was classified in the line item other income (loss) — net in our consolidated statement of income. The gain included a $137 million reclassification adjustment related to foreign currency translation gains recognized upon the disposal of our indirect investment in CCE's European operations. The Company relinquished its indirect ownership interest in CCE's European operations to New CCE as part of the consideration to acquire the 67 percent of CCE's former North America business that was not already owned by the Company. | ||||||||||||
Although the CCE transaction was structured to be primarily cashless, under the terms of the merger agreement, we agreed to assume $8.9 billion of CCE debt. In the event the actual CCE debt on the acquisition date was less than the agreed amount, we agreed to make a cash payment to New CCE for the difference. As of the acquisition date, the debt assumed by the Company was $7.9 billion. The total cash consideration paid to New CCE as part of the transaction was $1.4 billion, which included $1.0 billion related to the debt shortfall. In addition, the cash consideration paid to New CCE included amounts related to working capital adjustments which were finalized in 2011. | ||||||||||||
Under the terms of the merger agreement, the Company replaced share-based payment awards for certain current and former employees of CCE's corporate operations and former North America business. The following table provides a list of all replacement awards and the estimated fair value of those awards issued in conjunction with our acquisition of CCE's former North America business (in millions): | ||||||||||||
Number of | Fair Value | |||||||||||
Shares, Options | ||||||||||||
and Units Issued | ||||||||||||
As Adjusted | ||||||||||||
Performance share units | 3.3 | $ | 192 | |||||||||
Stock options | 9.6 | 109 | ||||||||||
Restricted share units | 1.6 | 50 | ||||||||||
Restricted stock | 0.4 | 12 | ||||||||||
Total | 14.9 | $ | 363 | |||||||||
The portion of the fair value of the replacement awards related to services provided prior to the business combination was included in the total purchase price. The portion of the fair value associated with future service is recognized as expense over the future service period, which varies by award. The Company determined that $237 million ($154 million net of tax) of the replacement awards was related to services rendered prior to the business combination. | ||||||||||||
Each CCE performance share unit ("PSU") replaced by the Company was converted at 100 percent of target into an adjusted PSU of The Coca-Cola Company, determined by multiplying the number of shares of each PSU by an exchange ratio (the "closing exchange ratio") equal to the closing price of a share of CCE common stock on the last day of trading prior to the acquisition date divided by the closing price of the Company's common stock on the same day. At the time we issued these replacement PSUs, they were subject to the same vesting conditions and other terms applicable to the CCE PSUs immediately prior to the closing date. However, in the fourth quarter of 2010, the Company modified primarily all of these PSUs to eliminate the remaining holding period, which resulted in $74 million of accelerated expense. Refer to Note 12 for additional information. | ||||||||||||
Each CCE stock option replaced by the Company was converted into an adjusted stock option of The Coca-Cola Company to acquire a number of shares of Coca-Cola common stock, determined by multiplying the number of shares of CCE common stock subject to the CCE stock option by the closing exchange ratio. The exercise price per share of the replacement awards was equal to the per share exercise price of the CCE stock option divided by the closing exchange ratio. All of the replacement stock options are subject to the same vesting conditions and other terms applicable to the CCE stock options immediately prior to the closing date. Refer to Note 12 for additional information. | ||||||||||||
Each CCE restricted share unit ("RSU") replaced by the Company was converted into an adjusted RSU of The Coca-Cola Company, determined by multiplying the number of shares of each RSU by the closing exchange ratio. All of the replacement RSUs are subject to the same vesting conditions and other terms applicable to the CCE RSUs immediately prior to the closing date. Refer to Note 12 for additional information. | ||||||||||||
Each share of CCE restricted stock replaced by the Company was converted into an adjusted share of restricted stock of The Coca-Cola Company, determined by multiplying the number of shares of CCE restricted stock by the closing exchange ratio. All of the replacement shares of restricted stock are subject to the same vesting conditions and other terms applicable to the CCE shares of restricted stock immediately prior to the closing date. Refer to Note 12 for additional information. | ||||||||||||
The following table reconciles the total purchase price of the Company's acquisition of CCE's former North America business, including adjustments recorded as part of the Company's purchase accounting (in millions): | ||||||||||||
October 2, | ||||||||||||
2010 | ||||||||||||
Fair value of our equity investment in CCE1 | $ | 5,373 | ||||||||||
Cash consideration2 | 1,368 | |||||||||||
Fair value of share-based payment awards3 | 154 | |||||||||||
Total purchase price | $ | 6,895 | ||||||||||
1 | Represents the fair value of our 33 percent ownership interest in the outstanding common stock of CCE based on the closing price of CCE's common stock on the last day the New York Stock Exchange was open prior to the acquisition date. The fair value reflects our indirect ownership interest in both CCE's European operations and former North America business. | |||||||||||
2 | Primarily related to the debt shortfall and working capital adjustments. | |||||||||||
3 | Represents the portion of the total fair value of the replacement awards associated with services rendered prior to the business combination, net of tax. | |||||||||||
The following table presents the final allocation of the purchase price by major class of assets and liabilities (in millions) as of the acquisition date, as well as adjustments made during 2011 (referred to as "measurement period adjustments"): | ||||||||||||
Amounts | Measurement | Amounts | ||||||||||
Recognized as of | Period | Recognized as of | ||||||||||
Acquisition Date1 | Adjustments2 | Acquisition Date | ||||||||||
(as Adjusted) | ||||||||||||
Cash and cash equivalents | $ | 49 | $ | — | $ | 49 | ||||||
Marketable securities | 7 | — | 7 | |||||||||
Trade accounts receivable3 | 1,194 | — | 1,194 | |||||||||
Inventories | 696 | — | 696 | |||||||||
Other current assets4 | 744 | (5 | ) | 739 | ||||||||
Property, plant and equipment4 | 5,385 | (682 | ) | 4,703 | ||||||||
Bottlers' franchise rights with indefinite lives4,5 | 5,100 | 100 | 5,200 | |||||||||
Other intangible assets4,6 | 1,032 | 45 | 1,077 | |||||||||
Other noncurrent assets | 261 | — | 261 | |||||||||
Total identifiable assets acquired | $ | 14,468 | $ | (542 | ) | $ | 13,926 | |||||
Accounts payable and accrued expenses4 | 1,826 | 8 | 1,834 | |||||||||
Loans and notes payable7 | 266 | — | 266 | |||||||||
Long-term debt7 | 9,345 | — | 9,345 | |||||||||
Pension and other postretirement liabilities8 | 1,313 | — | 1,313 | |||||||||
Other noncurrent liabilities4,9 | 2,603 | (293 | ) | 2,310 | ||||||||
Total liabilities assumed | $ | 15,353 | $ | (285 | ) | $ | 15,068 | |||||
Net liabilities assumed | (885 | ) | (257 | ) | (1,142 | ) | ||||||
Goodwill4,10 | 7,746 | 304 | 8,050 | |||||||||
$ | 6,861 | $ | 47 | $ | 6,908 | |||||||
Less: Noncontrolling interests | 13 | — | 13 | |||||||||
Net assets acquired | $ | 6,848 | $ | 47 | $ | 6,895 | ||||||
1 | As previously reported in the Notes to Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2010. | |||||||||||
2 | The measurement period adjustments did not have a significant impact on our consolidated statements of income for the years ended December 31, 2011, and December 31, 2010. Therefore, we did not retrospectively adjust the comparative 2010 financial information. | |||||||||||
3 | The gross amount due under receivables we acquired was $1,226 million, of which $32 million was expected to be uncollectible. | |||||||||||
4 | The measurement period adjustments were due to the finalization of appraisals related to intangible assets and certain fixed assets and resulted in the following: a decrease to property, plant and equipment; an increase to franchise rights; and a decrease to noncurrent deferred tax liabilities. The net impact of the measurement period adjustments and the payments made to New CCE that related to the finalization of working capital adjustments resulted in a net increase to goodwill. | |||||||||||
5 | Represents reacquired franchise rights that had previously provided CCE with exclusive and perpetual rights to manufacture and/or distribute certain beverages in specified territories. These rights have been determined to have indefinite lives and are not amortized. | |||||||||||
6 | Other intangible assets primarily relate to franchise rights that had previously provided CCE with exclusive rights to manufacture and/or distribute certain beverages in specified territories for a finite period of time, and therefore have been classified as definite-lived intangible assets. The estimated fair value of franchise rights with definite lives was $650 million as of the acquisition date. These franchise rights will be amortized over a weighted-average life of approximately eight years, which is equal to the weighted-average remaining contractual term of the franchise rights. Other intangible assets also include $380 million of customer relationships, which will be amortized over approximately 20 years. | |||||||||||
7 | Refer to Note 10 for additional information. | |||||||||||
8 | The assumed pension and other postretirement liabilities consisted of benefit obligations of $3,544 million and plan assets of $2,231 million. Refer to Note 13 for additional information related to pension and other postretirement plans assumed from CCE. | |||||||||||
9 | Primarily relates to deferred tax liabilities recorded on franchise rights. Refer to Note 14. | |||||||||||
10 | The goodwill recognized as part of this acquisition has been assigned to the North America operating segment, of which $170 million is tax deductible. The goodwill recognized in conjunction with our acquisition of CCE's former North America business is primarily related to synergistic value created from having a unified operating system that will strategically position us to better market and distribute our nonalcoholic beverage brands in North America. It also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. | |||||||||||
In a concurrent transaction, we agreed to sell all of our ownership interests in Coca-Cola Drikker AS ("Norwegian bottling operation") and Coca-Cola Drycker Sverige AB ("Swedish bottling operation") to New CCE at fair value. The divestiture of our Norwegian and Swedish bottling operations also closed on October 2, 2010. See further discussion of this divestiture below. In addition, we granted New CCE the right to negotiate the acquisition of our majority interest in our German bottling operation, Coca-Cola Erfrischungsgetränke AG ("CCEAG"), 18 to 39 months after the date of the merger agreement, at the then current fair value and subject to terms and conditions as mutually agreed. | ||||||||||||
The Company has incurred $84 million of transaction costs in connection with our acquisition of CCE's former North America business and the sale of our ownership interests in our Norwegian and Swedish bottling operations to New CCE since the transaction commenced. These costs were included in the line item other operating charges in our consolidated statements of income. Refer to Note 17 for additional information. In addition, the Company recorded charges of $265 million related to preexisting relationships during 2010. These charges were primarily related to the write-off of our investment in infrastructure programs with CCE. Our investment in these infrastructure programs with CCE did not meet the criteria to be recognized as an asset subsequent to the acquisition. In 2011, the Company recorded an additional charge of $1 million associated with these preexisting relationships. These charges were included in the line item other income (loss) — net in our consolidated statements of income. Refer to Note 6 for additional information. | ||||||||||||
CCE's former North America business contributed net revenues of approximately $3,637 million and net losses of approximately $122 million from October 2, 2010 through December 31, 2010. The following table presents unaudited consolidated pro forma information as if our acquisition of CCE's former North America business and the divestiture of our Norwegian and Swedish bottling operations had occurred on January 1, 2010 (in millions): | ||||||||||||
Unaudited | ||||||||||||
Year Ended December 31, | 2010 | |||||||||||
Net operating revenues1 | $ | 43,106 | ||||||||||
Net income attributable to shareowners of The Coca-Cola Company2,3 | 6,839 | |||||||||||
1 | The deconsolidation of our Norwegian and Swedish bottling operations resulted in a decrease to net operating revenues of approximately $433 million in 2010. | |||||||||||
2 | The deconsolidation of our Norwegian and Swedish bottling operations resulted in a decrease to net income attributable to shareowners of The Coca-Cola Company of approximately $387 million in 2010. | |||||||||||
3 | The 2010 pro forma information has been adjusted to exclude the gain related to the remeasurement of our equity interest in CCE to fair value upon the close of the transaction, the gain on the sale of our Norwegian and Swedish bottling operations, transaction costs and charges related to preexisting relationships in order to present the pro forma information as if the transactions had occurred prior to January 1, 2010. | |||||||||||
The unaudited pro forma financial information presented above does not purport to represent what the actual results of our operations would have been if our acquisition of CCE's former North America business and the divestiture of our Norwegian and Swedish bottling operations had occurred prior to January 1, 2010, nor is it indicative of the future operating results of The Coca-Cola Company. The unaudited pro forma financial information does not reflect the impact of future events that may occur after the acquisition, including, but not limited to, anticipated cost savings from operating synergies. | ||||||||||||
The unaudited pro forma financial information presented in the table above has been adjusted to give effect to adjustments that are (1) directly related to the business combination; (2) factually supportable; and (3) expected to have a continuing impact. These adjustments include, but are not limited to, the application of our accounting policies; elimination of related party transactions and equity income; and depreciation and amortization related to fair value adjustments to property, plant and equipment and intangible assets. | ||||||||||||
Dr Pepper Snapple Group, Inc. Agreements | ||||||||||||
In contemplation of the closing of our acquisition of CCE's former North America business, we reached an agreement with DPS to distribute certain DPS brands in territories where DPS brands had been distributed by CCE prior to the CCE transaction. Under the terms of our agreement with DPS, and concurrently with the closing of the CCE transaction, we entered into license agreements with DPS to distribute Dr Pepper trademark brands in the United States, Canada Dry in the Northeastern United States, and Canada Dry and C' Plus in Canada, and we made a net one-time cash payment of $715 million to DPS. Under the license agreements, the Company agreed to meet certain performance obligations in order to distribute DPS products in retail and foodservice accounts and vending machines. The license agreements have initial terms of 20 years, with automatic 20-year renewal periods unless otherwise terminated under the terms of the agreements. The license agreements replaced agreements between DPS and CCE existing immediately prior to the completion of the CCE transaction. In addition, we entered into an agreement with DPS to include Dr Pepper and Diet Dr Pepper in our Coca-Cola Freestyle fountain dispensers in certain outlets throughout the United States. The Coca-Cola Freestyle agreement has a term of 20 years. | ||||||||||||
Although these transactions were negotiated concurrently, they are legally separable and have distinct termination provisions and penalties, if applicable. As a result, the Company recorded an asset of $865 million related to the DPS license agreements and recorded deferred revenue of $150 million related to the Freestyle agreement. The DPS license agreements were determined to be indefinite-lived intangible assets and classified in the line item bottlers' franchise rights with indefinite lives in our consolidated balance sheet. The Company reached the conclusion that these distribution rights had an indefinite life based on several key factors, including, but not limited to, (1) our license agreements with DPS shall remain in effect for 20 years and shall automatically renew for additional 20-year successive periods thereafter unless terminated pursuant to the provisions of the agreements; (2) no additional payments shall be due for the renewal periods; (3) we anticipate using the assets indefinitely; (4) there are no known legal, regulatory or contractual provisions that are likely to limit the useful life of these assets; and (5) the classification of these assets as indefinite-lived assets is consistent with similar market transactions. The Company has been amortizing, and will continue to amortize, the deferred revenue related to the Freestyle agreement on a straight-line basis over 20 years, which is the length of the agreement. The amortization is included as a component of the Company's net operating revenues. | ||||||||||||
Divestitures | ||||||||||||
During 2012, proceeds from the disposal of bottling companies and other investments totaled $2,189 million. These proceeds resulted from the sale and/or maturity of investments associated with the Company's cash and risk management programs and were not related to the disposal of bottling companies. Refer to Note 3 for additional information. | ||||||||||||
In 2011, proceeds from the disposal of bottling companies and other investments totaled $562 million, primarily related to the sale of our investment in Coca-Cola Embonor, S.A. ("Embonor"), a bottling partner with operations primarily in Chile, for $394 million. Prior to this transaction, the Company accounted for our investment in Embonor under the equity method of accounting. Refer to Note 17. None of the Company's other divestitures were individually significant. | ||||||||||||
In 2010, proceeds from the disposal of bottling companies and other investments totaled $972 million, primarily related to the sale of all our ownership interests in our Norwegian and Swedish bottling operations to New CCE for $0.9 billion in cash on October 2, 2010. In addition to the proceeds related to the disposal of our Norwegian and Swedish bottling operations, our Company sold 50 percent of our investment in Leão Junior, S.A. ("Leão Junior"), a Brazilian tea company, for $83 million. Refer to Note 17 for information related to the gain on these divestitures. | ||||||||||||
Assets and Liabilities Held for Sale | ||||||||||||
On December 13, 2012, the Company and Coca-Cola FEMSA executed a share purchase agreement for the sale of a majority ownership interest in our consolidated bottling operations in the Philippines ("Philippine bottling operations"). As a result, 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 purchase price. Accordingly, we recorded a loss of $108 million, including $1 million of related transaction costs, in the line item other income (loss) — net in our consolidated statement of income. This transaction was completed in January 2013. | ||||||||||||
On December 17, 2012, the Company entered into an agreement with several parties which will result in the merger of our consolidated bottling operations in Brazil ("Brazilian bottling operations") with an independent bottler in Brazil. Upon completion of the transaction, we will deconsolidate our Brazilian bottling operations in exchange for cash and a minority ownership interest in the newly combined entity. As a result, our Brazilian bottling operations met the criteria to be classified as held for sale. 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 as of December 31, 2012. | ||||||||||||
The following table presents information related to the major classes of assets and liabilities of the Company's Philippine and Brazilian bottling operations, both of which are included in our Bottling Investments operating segment, as of December 31, 2012 (in millions): | ||||||||||||
Philippine Bottling Operations | Brazilian Bottling Operations | Total Bottling | ||||||||||
Operations | ||||||||||||
Held for Sale | ||||||||||||
Cash, cash equivalents and short-term investments | $ | 133 | $ | 45 | $ | 178 | ||||||
Trade accounts receivable, less allowances | 108 | 88 | 196 | |||||||||
Inventories | 187 | 85 | 272 | |||||||||
Prepaid expenses and other assets | 223 | 174 | 397 | |||||||||
Other assets | 7 | 128 | 135 | |||||||||
Property, plant and equipment — net | 841 | 419 | 1,260 | |||||||||
Bottlers' franchise rights with indefinite lives | 341 | 130 | 471 | |||||||||
Goodwill | 148 | 22 | 170 | |||||||||
Other intangible assets | — | 1 | 1 | |||||||||
Allowance for reduction of assets held for sale | (107 | ) | — | (107 | ) | |||||||
Total assets | $ | 1,881 | $ | 1,092 | $ | 2,973 | ||||||
Accounts payable and accrued expenses | $ | 241 | $ | 157 | $ | 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 | 20 | 75 | 95 | |||||||||
Deferred income taxes | 102 | 20 | 122 | |||||||||
Total liabilities | $ | 359 | $ | 437 | $ | 796 | ||||||
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 anticipate having in these operations following each transaction. |
INVESTMENTS
INVESTMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Investments Disclosure [Abstract] | ||||||||||||||||
INVESTMENTS | INVESTMENTS | |||||||||||||||
Investments in debt and marketable 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. 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. 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 consolidated balance sheets as a component of 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. | ||||||||||||||||
Trading Securities | ||||||||||||||||
As of December 31, 2012 and 2011, our trading securities had a fair value of $266 million and $211 million, respectively, and consisted primarily of equity securities. The Company had net unrealized gains on trading securities of $19 million as of December 31, 2012, and net unrealized losses of $5 million and $3 million as of December 31, 2011 and 2010, respectively. The Company's trading securities were included in the following captions in our consolidated balance sheets (in millions): | ||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||
Marketable securities | $ | 184 | $ | 138 | ||||||||||||
Other assets | 82 | 73 | ||||||||||||||
Total trading securities | $ | 266 | $ | 211 | ||||||||||||
Available-for-Sale and Held-to-Maturity Securities | ||||||||||||||||
As of December 31, 2012 and 2011, available-for-sale and held-to-maturity securities consisted of the following (in millions): | ||||||||||||||||
Gross | Estimated | |||||||||||||||
Unrealized | ||||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
2012 | ||||||||||||||||
Available-for-sale securities:1,2 | ||||||||||||||||
Equity securities | $ | 957 | $ | 441 | $ | (10 | ) | $ | 1,388 | |||||||
Debt securities | 3,169 | 46 | (10 | ) | 3,205 | |||||||||||
$ | 4,126 | $ | 487 | $ | (20 | ) | $ | 4,593 | ||||||||
Held-to-maturity securities: | ||||||||||||||||
Bank and corporate debt | $ | — | $ | — | $ | — | $ | — | ||||||||
2011 | ||||||||||||||||
Available-for-sale securities:1 | ||||||||||||||||
Equity securities | $ | 834 | $ | 237 | $ | — | $ | 1,071 | ||||||||
Debt securities | 332 | 1 | (3 | ) | 330 | |||||||||||
$ | 1,166 | $ | 238 | $ | (3 | ) | $ | 1,401 | ||||||||
Held-to-maturity securities: | ||||||||||||||||
Bank and corporate debt | $ | 113 | $ | — | $ | — | $ | 113 | ||||||||
1 | Refer to Note 16 for additional information related to the estimated fair value. | |||||||||||||||
2 | During 2012, the Company made a change to its overall cash management program. In an effort to manage counterparty risk and diversify our assets, the Company began to make additional investments in high-quality securities. These investments are primarily classified as available-for-sale securities. | |||||||||||||||
The sale and/or maturity of available-for-sale securities resulted in the following activity (in millions): | ||||||||||||||||
Years Ending December 31, | 2012 | 2011 | ||||||||||||||
Gross gains | $ | 41 | $ | 5 | ||||||||||||
Gross losses | (35 | ) | (1 | ) | ||||||||||||
Proceeds | 5,036 | 37 | ||||||||||||||
The Company did not sell any available-for-sale securities during 2010. | ||||||||||||||||
In 2012, the Company had investments classified as available-for-sale securities in which our cost basis exceeded the fair value of our investment. Management assessed each of these investments on an individual basis to determine if the decline in fair value was other than temporary. Management's assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the extent to which the market value has been less than our cost basis; the financial condition and near-term prospects of the issuer; and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. As a result of these assessments, management determined that the decline in fair value of these investments was not other than temporary and did not record any impairment charges. | ||||||||||||||||
In 2011 and 2010, the Company realized losses of $17 million and $26 million, respectively, due to other-than-temporary impairments of certain available-for-sale securities. These impairment charges were recorded in other income (loss) — net. Refer to Note 16 and Note 17. | ||||||||||||||||
During 2011, the Company began using 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 have been classified in the line item other assets in our consolidated balance sheets because the assets are not available to satisfy our current obligations. As of December 31, 2012, and December 31, 2011, the Company's available-for-sale securities included solvency capital funds of $451 million and $285 million, respectively. | ||||||||||||||||
The Company's available-for-sale and held-to-maturity securities were included in the following captions in our consolidated balance sheets (in millions): | ||||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||
Available- | Held-to- | Available- | Held-to- | |||||||||||||
for-Sale | Maturity | for-Sale | Maturity | |||||||||||||
Securities | Securities | Securities | Securities | |||||||||||||
Cash and cash equivalents | $ | 9 | $ | — | $ | — | $ | 112 | ||||||||
Marketable securities | 2,908 | — | 5 | 1 | ||||||||||||
Other investments, principally bottling companies | 1,087 | — | 986 | — | ||||||||||||
Other assets | 589 | — | 410 | — | ||||||||||||
$ | 4,593 | $ | — | $ | 1,401 | $ | 113 | |||||||||
The contractual maturities of these investments as of December 31, 2012, were as follows (in millions): | ||||||||||||||||
Available-for-Sale Securities | Held-to-Maturity Securities | |||||||||||||||
Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Within 1 year | $ | 1,003 | $ | 1,001 | $ | — | $ | — | ||||||||
After 1 year through 5 years | 1,590 | 1,598 | — | — | ||||||||||||
After 5 years through 10 years | 270 | 299 | — | — | ||||||||||||
After 10 years | 306 | 307 | — | — | ||||||||||||
Equity securities | 957 | 1,388 | — | — | ||||||||||||
$ | 4,126 | $ | 4,593 | $ | — | $ | — | |||||||||
The Company expects that actual maturities may differ from the contractual maturities above because borrowers have the right to call or prepay certain obligations. | ||||||||||||||||
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 consolidated balance sheets, and dividend income from cost method investments is reported in other income (loss) — net in our 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 December 31, 2012 and 2011. Our cost method investments had a carrying value of $145 million and $155 million as of December 31, 2012 and 2011, respectively. | ||||||||||||||||
In 2012, the Company recorded a charge of $16 million as a result of other-than-temporary declines in the fair values of certain cost method investments. This impairment was recorded in the line item other income (loss) — net in our consolidated statement of income. Refer to Note 16 for additional information related to this impairment. |
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Inventories [Abstract] | ||||||||
INVENTORIES | INVENTORIES | |||||||
Inventories consist primarily of raw materials and packaging (which includes 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): | ||||||||
December 31, | 2012 | 2011 | ||||||
Raw materials and packaging | $ | 1,773 | $ | 1,680 | ||||
Finished goods | 1,171 | 1,198 | ||||||
Other | 320 | 214 | ||||||
Total inventories | $ | 3,264 | $ | 3,092 | ||||
HEDGING_TRANSACTIONS_AND_DERIV
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||
Dec. 31, 2012 | |||||||||||||||
Hedging Transactions and Derivative Financial Instruments Disclosures [Abstract] | |||||||||||||||
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." Our Company, when deemed appropriate, 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 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 consolidated statements of income as the changes in the fair values of the hedged items attributable to the risk being hedged. The changes in 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 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 the 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 using standard valuation models. Refer to Note 16. 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, commodity 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 Hedging Instruments | Balance Sheet Location1 | December 31, | December 31, | ||||||||||||
2012 | 2011 | ||||||||||||||
Assets: | |||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 149 | $ | 170 | ||||||||||
Commodity contracts | Prepaid expenses and other assets | — | 2 | ||||||||||||
Interest rate contracts | Prepaid expenses and other assets | 7 | — | ||||||||||||
Interest rate contracts | Other assets | 335 | 246 | ||||||||||||
Total assets | $ | 491 | $ | 418 | |||||||||||
Liabilities: | |||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 55 | $ | 41 | ||||||||||
Commodity contracts | Accounts payable and accrued expenses | 1 | 1 | ||||||||||||
Interest rate contracts | Other liabilities | 6 | — | ||||||||||||
Total liabilities | $ | 62 | $ | 42 | |||||||||||
1 | All of the Company's derivative instruments are carried at fair value in our 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 16 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 | Refer to Note 16 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 Hedging Instruments | Balance Sheet Location1 | December 31, | December 31, | ||||||||||||
2012 | 2011 | ||||||||||||||
Assets: | |||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 19 | $ | 29 | ||||||||||
Foreign currency contracts | Other assets | 42 | — | ||||||||||||
Commodity contracts | Prepaid expenses and other assets | 72 | 54 | ||||||||||||
Other derivative instruments | Prepaid expenses and other assets | 6 | 5 | ||||||||||||
Total assets | $ | 139 | $ | 88 | |||||||||||
Liabilities: | |||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 24 | $ | 116 | ||||||||||
Foreign currency contracts | Other liabilities | 1 | — | ||||||||||||
Commodity contracts | Accounts payable and accrued expenses | 43 | 47 | ||||||||||||
Commodity contracts | Other liabilities | 1 | — | ||||||||||||
Other derivative instruments | Accounts payable and accrued expenses | 2 | 1 | ||||||||||||
Total liabilities | $ | 71 | $ | 164 | |||||||||||
1 | All of the Company's derivative instruments are carried at fair value in our 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 16 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 | Refer to Note 16 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 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 years ended December 31, 2012, 2011 and 2010. 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 changes 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 value of derivatives that have been designated and qualify for the Company's foreign currency cash flow hedging program was $4,715 million and $5,158 million as of December 31, 2012 and 2011, 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. The 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 value of derivatives that have been designated and qualify for this program was $17 million and $26 million as of December 31, 2012 and 2011, 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 value of these interest rate swap agreements that were designated and qualified for the Company's interest rate cash flow hedging program was $1,764 million as of December 31, 2012. The Company had no outstanding derivative instruments under this hedging program as of December 31, 2011. | |||||||||||||||
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 years ended December 31, 2012, 2011 and 2010 (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) | ||||||||||||||
2012 | |||||||||||||||
Foreign currency contracts | $ | 59 | Net operating revenues | $ | (46 | ) | $ | 2 | |||||||
Foreign currency contracts | 34 | Cost of goods sold | (23 | ) | — | ||||||||||
Interest rate contracts | 1 | Interest expense | (12 | ) | — | 2 | |||||||||
Commodity contracts | (4 | ) | Cost of goods sold | (1 | ) | — | |||||||||
Total | $ | 90 | $ | (82 | ) | $ | 2 | ||||||||
2011 | |||||||||||||||
Foreign currency contracts | $ | 3 | Net operating revenues | $ | (231 | ) | $ | — | 2 | ||||||
Interest rate contracts | (11 | ) | Interest expense | (12 | ) | (1 | ) | ||||||||
Commodity contracts | (1 | ) | Cost of goods sold | — | — | ||||||||||
Total | $ | (9 | ) | $ | (243 | ) | $ | (1 | ) | ||||||
2010 | |||||||||||||||
Foreign currency contracts | $ | (307 | ) | Net operating revenues | $ | (2 | ) | $ | (2 | ) | |||||
Interest rate contracts | — | Interest expense | (15 | ) | — | ||||||||||
Commodity contracts | 1 | Cost of goods sold | — | — | |||||||||||
Total | $ | (306 | ) | $ | (17 | ) | $ | (2 | ) | ||||||
1 | The Company records gains and losses reclassified from AOCI in income for the effective portion and ineffective portion, if any, to the same line items in our consolidated statements of income. | ||||||||||||||
2 | Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
As of December 31, 2012, the Company estimates that it will reclassify into earnings during the next 12 months gains of approximately $41 million 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. As of December 31, 2012, such adjustments increased the carrying value of our long-term debt by $273 million. Refer to Note 10. The changes in fair values of hedges that are determined to be ineffective are immediately recognized into earnings. The total notional value of derivatives that related to our fair value hedges of this type was $6,700 million and $5,700 million as of December 31, 2012 and 2011, respectively. | |||||||||||||||
During the first quarter of 2012, the Company began using 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. The changes in fair values of hedges that are determined to be ineffective are immediately recognized into earnings. The total notional value of derivatives that related to our fair value hedges of this type was $850 million as of December 31, 2012. The Company had no outstanding derivative instruments under this hedging program as of December 31, 2011. | |||||||||||||||
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 years ended December 31, 2012, 2011 and 2010 (in millions): | |||||||||||||||
Hedging Instruments and Hedged Items | Location of Gain (Loss) | Gain (Loss) | |||||||||||||
Recognized in Income | Recognized in Income | ||||||||||||||
(Ineffective Portion and | |||||||||||||||
Amount Excluded from | |||||||||||||||
Effectiveness Testing) | |||||||||||||||
2012 | |||||||||||||||
Interest rate contracts | Interest expense | $ | 89 | ||||||||||||
Fixed-rate debt | Interest expense | (42 | ) | ||||||||||||
Net impact to interest expense | $ | 47 | |||||||||||||
Foreign currency contracts | Other income (loss) — net | $ | 42 | ||||||||||||
Available-for-sale securities | Other income (loss) — net | (46 | ) | ||||||||||||
Net impact to other income (loss) — net | $ | (4 | ) | ||||||||||||
Net impact of fair value hedging instruments | $ | 43 | |||||||||||||
2011 | |||||||||||||||
Interest rate contracts | Interest expense | $ | 343 | ||||||||||||
Fixed-rate debt | Interest expense | (333 | ) | ||||||||||||
Net impact to interest expense | $ | 10 | |||||||||||||
2010 | |||||||||||||||
Interest rate contracts | Interest expense | $ | (97 | ) | |||||||||||
Fixed-rate debt | Interest expense | 102 | |||||||||||||
Net impact to interest expense | $ | 5 | |||||||||||||
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 value of derivatives under this hedging program was $1,718 million and $1,681 million as of December 31, 2012 and 2011, 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 years ended December 31, 2012, 2011 and 2010 (in millions): | |||||||||||||||
Gain (Loss) | |||||||||||||||
Recognized in OCI | |||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | ||||||||||||
Foreign currency contracts | $ | (61 | ) | $ | (3 | ) | $ | (15 | ) | ||||||
The Company did not reclassify any deferred gains or losses related to net investment hedges from AOCI to earnings during the years ended December 31, 2012, 2011 and 2010. In addition, the Company did not have any ineffectiveness related to net investment hedges during the years ended December 31, 2012, 2011 and 2010. | |||||||||||||||
Economic (Non-Designated) 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 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 value 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 value of economic hedges used to offset the monetary assets and liabilities are recognized into earnings in the line item other income (loss) — net in our consolidated statements of income. In addition, we use foreign currency economic hedges to minimize the variability in cash flows associated with changes in foreign currency exchange rates. The changes in fair value 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 consolidated statements of income. The total notional value of derivatives related to our foreign currency economic hedges was $3,865 million and $3,629 million as of December 31, 2012 and 2011, 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 net operating revenues, cost of goods sold, and selling, general and administrative expenses in our consolidated statements of income, as applicable. The total notional value of derivatives related to our economic hedges of this type was $1,084 million and $1,165 million as of December 31, 2012 and 2011, respectively. | |||||||||||||||
In connection with our acquisition of CCE's former North America business, the Company assumed certain interest rate derivatives. The Company did not designate these derivatives as hedges subsequent to the acquisition. These derivatives were originally recorded at fair value as of October 2, 2010. As of December 31, 2010, all interest rate derivatives acquired from CCE were settled and will have no additional impact on future earnings. In 2010, the Company recorded $5 million of losses related to these instruments in interest expense. | |||||||||||||||
The Company entered into interest rate locks that were used as economic hedges to mitigate the interest rate risk associated with the Company's repurchase of certain long-term debt. These hedges were not designated and did not qualify for hedge accounting but were effective economic hedges. The Company settled these hedges and recognized losses of $104 million in interest expense during 2010. As of December 31, 2010, there were no outstanding interest rate derivatives used as economic hedges. | |||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the years ended December 31, 2012, 2011 and 2010 (in millions): | |||||||||||||||
Gains (Losses) | |||||||||||||||
Derivatives Not Designated | Location of Gains (Losses) | Year Ended December 31, | |||||||||||||
as Hedging Instruments | Recognized in Income | 2012 | 2011 | 2010 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | (7 | ) | $ | 7 | $ | (15 | ) | ||||||
Foreign currency contracts | Other income (loss) — net | 24 | (37 | ) | (46 | ) | |||||||||
Foreign currency contracts | Cost of goods sold | — | (12 | ) | (9 | ) | |||||||||
Commodity contracts | Net operating revenues | 4 | — | — | |||||||||||
Commodity contracts | Cost of goods sold | (110 | ) | (42 | ) | 40 | |||||||||
Commodity contracts | Selling, general and administrative expenses | 9 | (11 | ) | — | ||||||||||
Interest rate swaps | Interest expense | — | — | (5 | ) | ||||||||||
Interest rate locks | Interest expense | — | — | (104 | ) | ||||||||||
Other derivative instruments | Selling, general and administrative expenses | 18 | 8 | 21 | |||||||||||
Total | $ | (62 | ) | $ | (87 | ) | $ | (118 | ) |
EQUITY_METHOD_INVESTMENTS
EQUITY METHOD INVESTMENTS | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
EQUITY METHOD INVESTMENTS [Abstract] | ||||||||||||
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS | |||||||||||
Our consolidated net income includes our Company's proportionate share of the net income or loss of our equity method investees. When we record our proportionate share of net income, it increases equity income (loss) — net in our consolidated statements of income and our carrying value in that investment. Conversely, when we record our proportionate share of a net loss, it decreases equity income (loss) — net in our consolidated statements of income and our carrying value in that investment. The Company's proportionate share of the net income or loss of our equity method investees includes significant operating and nonoperating items recorded by our equity method investees. These items can have a significant impact on the amount of equity income (loss) — net in our consolidated statements of income and our carrying value in those investments. Refer to Note 17 for additional information related to significant operating and nonoperating items recorded by our equity method investees. The carrying values of our equity method investments are also impacted by our proportionate share of items impacting the equity investee's AOCI. | ||||||||||||
We eliminate from our financial results all significant intercompany transactions, including the intercompany portion of transactions with equity method investees. | ||||||||||||
Coca-Cola Enterprises Inc. | ||||||||||||
On October 2, 2010, we completed our acquisition of CCE's former North America business and relinquished our indirect ownership interest in CCE's European operations. As a result of this transaction, the Company does not own any interest in New CCE. Refer to Note 2 for additional information related to this transaction. | ||||||||||||
We accounted for our investment in CCE under the equity method of accounting until our acquisition of CCE's former North America business was completed on October 2, 2010. Therefore, our consolidated net income for the year ended December 31, 2010, included equity income from CCE during the first nine months of 2010. The Company owned 33 percent of the outstanding common stock of CCE immediately prior to the acquisition. The following table provides summarized financial information for CCE for the nine months ended October 1, 2010 (in millions): | ||||||||||||
Nine Months Ended | ||||||||||||
October 1, 2010 | ||||||||||||
Net operating revenues | $ | 16,464 | ||||||||||
Cost of goods sold | 10,028 | |||||||||||
Gross profit | $ | 6,436 | ||||||||||
Operating income (loss) | $ | 1,369 | ||||||||||
Net income (loss) | $ | 677 | ||||||||||
The following table provides a summary of our significant transactions with CCE for the nine months ended October 1, 2010 (in millions): | ||||||||||||
Nine Months Ended | ||||||||||||
October 1, 2010 | ||||||||||||
Concentrate, syrup and finished product sales to CCE | $ | 4,737 | ||||||||||
Syrup and finished product purchases from CCE | 263 | |||||||||||
CCE purchases of sweeteners through our Company | 251 | |||||||||||
Marketing payments made by us directly to CCE | 314 | |||||||||||
Marketing payments made to third parties on behalf of CCE | 106 | |||||||||||
Local media and marketing program reimbursements from CCE | 268 | |||||||||||
Payments made to CCE for dispensing equipment repair services | 64 | |||||||||||
Other payments — net | 19 | |||||||||||
Syrup and finished product purchases from CCE represent purchases of fountain syrup in certain territories that have been resold by our Company to major customers and purchases of bottle and can products. Marketing payments made by us directly to CCE represent support of certain marketing activities and our participation with CCE in cooperative advertising and other marketing activities to promote the sale of Company trademark products within CCE territories. These programs were agreed to on an annual basis. Marketing payments made to third parties on behalf of CCE represent support of certain marketing activities and programs to promote the sale of Company trademark products within CCE's territories in conjunction with certain of CCE's customers. Pursuant to cooperative advertising and trade agreements with CCE, we received funds from CCE for local media and marketing program reimbursements. Payments made to CCE for dispensing equipment repair services represent reimbursement to CCE for its costs of parts and labor for repairs on cooler, dispensing or post-mix equipment owned by us or our customers. The other payments — net line in the table above represents payments made to and received from CCE that are individually insignificant. | ||||||||||||
Our Company had previously entered into programs with CCE designed to help develop cold-drink infrastructure. Under these programs, we paid CCE for a portion of the cost of developing the infrastructure necessary to support accelerated placements of cold-drink equipment. These payments supported a common objective of increased sales of Company Trademark Beverages from increased availability and consumption in the cold-drink channel. | ||||||||||||
Preexisting Relationships | ||||||||||||
The Company evaluated all of our preexisting relationships with CCE prior to the close of the transaction. Based on these evaluations, the Company recognized charges of $265 million in 2010 related to preexisting relationships with CCE. These charges were primarily related to the write-off of our investment in cold-drink infrastructure programs with CCE as our investment in these programs did not meet the criteria to be recognized as an asset subsequent to the acquisition. These charges were included in the line item other income (loss) — net in our consolidated statements of income and impacted the Corporate operating segment. Refer to Note 17. | ||||||||||||
Other Equity Method Investments | ||||||||||||
The Company's other equity method investments include our ownership interests in Coca-Cola Hellenic, Coca-Cola FEMSA and Coca-Cola Amatil. As of December 31, 2012, we owned approximately 23 percent, 29 percent and 29 percent, respectively, of these companies' common shares. As of December 31, 2012, our investment in our equity method investees in the aggregate exceeded our proportionate share of the net assets of these equity method investees by $2,241 million. This difference is not amortized. | ||||||||||||
A summary of financial information for our equity method investees in the aggregate, other than CCE, is as follows (in millions): | ||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||
Net operating revenues | $ | 47,087 | $ | 42,472 | $ | 38,663 | ||||||
Cost of goods sold | 28,821 | 26,271 | 23,053 | |||||||||
Gross profit | $ | 18,266 | $ | 16,201 | $ | 15,610 | ||||||
Operating income | $ | 4,605 | $ | 4,181 | $ | 4,134 | ||||||
Consolidated net income | $ | 2,993 | $ | 2,237 | $ | 2,659 | ||||||
Less: Net income attributable to noncontrolling interests | 89 | 99 | 89 | |||||||||
Net income attributable to common shareowners | $ | 2,904 | $ | 2,138 | $ | 2,570 | ||||||
December 31, | 2012 | 2011 | ||||||||||
Current assets | $ | 16,054 | $ | 13,960 | ||||||||
Noncurrent assets | 32,687 | 27,152 | ||||||||||
Total assets | $ | 48,741 | $ | 41,112 | ||||||||
Current liabilities | $ | 12,004 | $ | 10,545 | ||||||||
Noncurrent liabilities | 12,272 | 11,646 | ||||||||||
Total liabilities | $ | 24,276 | $ | 22,191 | ||||||||
Equity attributable to shareowners of investees | $ | 23,827 | $ | 18,392 | ||||||||
Equity attributable to noncontrolling interests | 638 | 529 | ||||||||||
Total equity | $ | 24,465 | $ | 18,921 | ||||||||
Company equity investment | $ | 9,216 | $ | 7,233 | ||||||||
Net sales to equity method investees other than CCE, the majority of which are located outside the United States, were $7.1 billion, $6.9 billion and $6.2 billion in 2012, 2011 and 2010, respectively. Total payments, primarily marketing, made to equity method investees other than CCE were $1,587 million, $1,147 million and $1,034 million in 2012, 2011 and 2010, respectively. In addition, purchases of finished products from equity method investees other than CCE were $392 million, $430 million and $205 million in 2012, 2011 and 2010, respectively. | ||||||||||||
If valued at the December 31, 2012, quoted closing prices of shares actively traded on stock markets, the value of our equity method investments in publicly traded bottlers would have exceeded our carrying value by $10.4 billion. | ||||||||||||
Net Receivables and Dividends from Equity Method Investees | ||||||||||||
Total net receivables due from equity method investees were $1,162 million and $1,042 million as of December 31, 2012 and 2011, respectively. The total amount of dividends received from equity method investees was $393 million, $421 million and $354 million for the years ended December 31, 2012, 2011 and 2010, respectively. Dividends received included a $35 million and $60 million special dividend from Coca-Cola Hellenic during 2012 and 2011, respectively. We classified the receipt of these cash dividends in cash flows from operating activities because our cumulative equity in earnings from Coca-Cola Hellenic exceeded the cumulative distributions received; therefore, the dividends were deemed to be a return on our investment and not a return of our investment. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Property Plant and Equipament [Abstract] | ||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT | |||||||
The following table summarizes our property, plant and equipment (in millions): | ||||||||
December 31, | 2012 | 2011 | ||||||
Land | $ | 997 | $ | 1,141 | ||||
Buildings and improvements | 5,307 | 5,240 | ||||||
Machinery, equipment and vehicle fleet | 16,203 | 15,504 | ||||||
Construction in progress | 979 | 1,266 | ||||||
23,486 | 23,151 | |||||||
Less accumulated depreciation | 9,010 | 8,212 | ||||||
Property, plant and equipment — net | $ | 14,476 | $ | 14,939 | ||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||||||||
INTANGIBLE ASSETS [Abstract] | ||||||||||||||||||||||||||||
Intangible Assets Disclosure [Text Block] | INTANGIBLE ASSETS | |||||||||||||||||||||||||||
Indefinite-Lived Intangible Assets | ||||||||||||||||||||||||||||
The following table summarizes information related to indefinite-lived intangible assets (in millions): | ||||||||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||||||
Trademarks | $ | 6,527 | $ | 6,430 | ||||||||||||||||||||||||
Bottlers' franchise rights1 | 7,405 | 7,770 | ||||||||||||||||||||||||||
Goodwill | 12,255 | 12,219 | ||||||||||||||||||||||||||
Other | 111 | 113 | ||||||||||||||||||||||||||
Indefinite-lived intangible assets2 | $ | 26,298 | $ | 26,532 | ||||||||||||||||||||||||
1 | The decrease in 2012 was primarily related to the Company's consolidated Philippine and Brazilian bottling operations being transferred to assets held for sale as of December 31, 2012. This decrease was partially offset by the acquisition of the Sacramento bottler in 2012 and the finalization of purchase accounting related to our 2011 acquisition of Great Plains. Refer to Note 2 for additional information related to each of these transactions. | |||||||||||||||||||||||||||
2 | The distribution rights acquired from DPS are the only significant indefinite-lived intangible assets subject to renewal or extension arrangements. Refer to Note 2. | |||||||||||||||||||||||||||
The following table provides information related to the carrying value of our goodwill by operating segment (in millions): | ||||||||||||||||||||||||||||
Eurasia & | Europe | Latin | North | Pacific | Bottling | Total | ||||||||||||||||||||||
Africa | America | America | Investments | |||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||
Balance as of January 1 | $ | 41 | $ | 695 | $ | 166 | $ | 9,861 | $ | 115 | $ | 787 | $ | 11,665 | ||||||||||||||
Effect of foreign currency translation | (6 | ) | 15 | (3 | ) | — | 2 | 11 | 19 | |||||||||||||||||||
Acquisitions1 | — | — | — | 195 | — | — | 195 | |||||||||||||||||||||
Adjustments related to the finalization | — | — | — | 304 | — | 5 | 309 | |||||||||||||||||||||
of purchase accounting1 | ||||||||||||||||||||||||||||
Divestitures, deconsolidations and other1 | — | — | — | 155 | — | (124 | ) | 31 | ||||||||||||||||||||
Balance as of December 31 | $ | 35 | $ | 710 | $ | 163 | $ | 10,515 | $ | 117 | $ | 679 | $ | 12,219 | ||||||||||||||
2012 | ||||||||||||||||||||||||||||
Balance as of January 1 | $ | 35 | $ | 710 | $ | 163 | $ | 10,515 | $ | 117 | $ | 679 | $ | 12,219 | ||||||||||||||
Effect of foreign currency translation | (1 | ) | (19 | ) | 5 | — | 6 | (4 | ) | (13 | ) | |||||||||||||||||
Acquisitions1 | — | — | — | 100 | — | 157 | 257 | |||||||||||||||||||||
Adjustments related to the finalization | — | — | — | (38 | ) | — | — | (38 | ) | |||||||||||||||||||
of purchase accounting1 | ||||||||||||||||||||||||||||
Divestitures, deconsolidations and other2 | — | — | — | — | — | (170 | ) | (170 | ) | |||||||||||||||||||
Balance as of December 31 | $ | 34 | $ | 691 | $ | 168 | $ | 10,577 | $ | 123 | $ | 662 | $ | 12,255 | ||||||||||||||
1 | Refer to Note 2 for information related to the Company's acquisitions and divestitures. | |||||||||||||||||||||||||||
2 | Relates to the transfer of goodwill associated with the Company's consolidated Philippine and Brazilian bottling operations to assets held for sale as of December 31, 2012. Refer to Note 2 for additional information related to this transaction. | |||||||||||||||||||||||||||
Definite-Lived Intangible Assets | ||||||||||||||||||||||||||||
The following table summarizes information related to definite-lived intangible assets (in millions): | ||||||||||||||||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||||||
Customer relationships | $ | 622 | $ | (166 | ) | $ | 456 | $ | 619 | $ | (126 | ) | $ | 493 | ||||||||||||||
Bottlers' franchise rights | 730 | (221 | ) | 509 | 668 | (119 | ) | 549 | ||||||||||||||||||||
Trademarks | 65 | (43 | ) | 22 | 99 | (70 | ) | 29 | ||||||||||||||||||||
Other | 129 | (77 | ) | 52 | 196 | (130 | ) | 66 | ||||||||||||||||||||
Total | $ | 1,546 | $ | (507 | ) | $ | 1,039 | $ | 1,582 | $ | (445 | ) | $ | 1,137 | ||||||||||||||
Total amortization expense for intangible assets subject to amortization was $173 million, $192 million and $102 million in 2012, 2011 and 2010, respectively. Based on the carrying value of definite-lived intangible assets as of December 31, 2012, we estimate our amortization expense for the next five years will be as follows (in millions): | ||||||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||||
Expense | ||||||||||||||||||||||||||||
2013 | $ | 161 | ||||||||||||||||||||||||||
2014 | 153 | |||||||||||||||||||||||||||
2015 | 148 | |||||||||||||||||||||||||||
2016 | 142 | |||||||||||||||||||||||||||
2017 | 90 | |||||||||||||||||||||||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES [Abstract] | ||||||||
Accounts Payable and Accrued Expenses Disclosure [Text Block] | ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |||||||
Accounts payable and accrued expenses consisted of the following (in millions): | ||||||||
December 31, | 2012 | 2011 | ||||||
Accrued marketing | $ | 2,231 | $ | 2,286 | ||||
Other accrued expenses | 2,711 | 2,749 | ||||||
Trade accounts payable | 1,969 | 2,172 | ||||||
Accrued compensation | 1,045 | 1,048 | ||||||
Sales, payroll and other taxes | 389 | 405 | ||||||
Container deposits | 335 | 349 | ||||||
Accounts payable and accrued expenses | $ | 8,680 | $ | 9,009 | ||||
DEBT_AND_BORROWING_ARRANGEMENT
DEBT AND BORROWING ARRANGEMENTS | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | ||||||||||||||
Debt and Borrowing Arrangements Disclosure [Abstract] | ||||||||||||||
DEBT AND BORROWING ARRANGEMENTS | DEBT AND BORROWING ARRANGEMENTS | |||||||||||||
Short-Term Borrowings | ||||||||||||||
Loans and notes payable consist primarily of commercial paper issued in the United States. As of December 31, 2012 and 2011, we had $16,204 million and $12,135 million, respectively, in outstanding commercial paper borrowings. Our weighted-average interest rates for commercial paper outstanding were approximately 0.3 percent and 0.2 percent per year as of December 31, 2012 and 2011, respectively. | ||||||||||||||
In addition, we had $7,768 million in lines of credit and other short-term credit facilities as of December 31, 2012, of which $854 million was related to the Company's consolidated Philippine bottling operations that were classified as held for sale. The Company's total lines of credit included $93 million that was outstanding and primarily related to our international operations. | ||||||||||||||
Included in the credit facilities discussed above, the Company had $6,314 million in lines of credit for general corporate purposes. These backup lines of credit expire at various times from 2013 through 2017. There were no borrowings under these backup lines of credit during 2012. These credit facilities are subject to normal banking terms and conditions. Some of the financial arrangements require compensating balances, none of which is presently significant to our Company. | ||||||||||||||
Long-Term Debt | ||||||||||||||
During 2012, the Company retired $1,250 million of long-term notes upon maturity and issued $2,750 million of long-term debt. The general terms of the notes issued are as follows: | ||||||||||||||
• | $1,000 million total principal amount of notes due March 14, 2014, at a variable interest rate equal to the three-month London Interbank Offered Rate ("LIBOR") minus 0.05 percent; | |||||||||||||
• | $1,000 million total principal amount of notes due March 13, 2015, at a fixed interest rate of 0.75 percent; and | |||||||||||||
• | $750 million total principal amount of notes due March 14, 2018, at a fixed interest rate of 1.65 percent. | |||||||||||||
During 2011, the Company issued $2,979 million of long-term debt. We used $979 million of this newly issued debt and paid a premium of $208 million to exchange $1,022 million of existing long-term debt that was assumed in connection with our acquisition of CCE's former North America business. The remaining cash from the issuance was used to reduce the Company's outstanding commercial paper balance and exchange a certain amount of short-term debt. | ||||||||||||||
The general terms of the notes issued during 2011 are as follows: | ||||||||||||||
• | $1,655 million total principal amount of notes due September 1, 2016, at a fixed interest rate of 1.8 percent; and | |||||||||||||
• | $1,324 million total principal amount of notes due September 1, 2021, at a fixed interest rate of 3.3 percent. | |||||||||||||
During the fourth quarter of 2011, the Company extinguished long-term debt that had a carrying value of $20 million and was not scheduled to mature until 2012. This debt was outstanding prior to the Company's acquisition of CCE's former North America business. In addition, the Company repurchased long-term debt during 2011 that was assumed in connection with our acquisition of CCE's former North America business. The repurchased debt included $99 million in unamortized fair value adjustments recorded as part of our purchase accounting for the CCE transaction and was settled throughout the year as follows: | ||||||||||||||
• | During the first quarter of 2011, the Company repurchased all of our outstanding U.K. pound sterling notes that had a carrying value of $674 million; | |||||||||||||
• | During the second quarter of 2011, the Company repurchased long-term debt that had a carrying value of $42 million; and | |||||||||||||
• | During the third quarter of 2011, the Company repurchased long-term debt that had a carrying value of $19 million. | |||||||||||||
The Company recorded a net charge of $9 million in the line item interest expense in our consolidated statement of income during the year ended December 31, 2011. This net charge was due to the exchange, repurchase and/or extinguishment of long-term debt described above. | ||||||||||||||
During 2010, in connection with the Company's acquisition of CCE's former North America business, we assumed $7,602 million of long-term debt, which had an estimated fair value of approximately $9,345 million as of the acquisition date. We recorded the assumed debt at its fair value as of the acquisition date. Refer to Note 2. | ||||||||||||||
On November 15, 2010, the Company issued $4,500 million of long-term notes and used some of the proceeds to repurchase $2,910 million of long-term debt. The remaining cash from the issuance was used to reduce our outstanding commercial paper balance. The repurchased debt consisted of $1,827 million of debt assumed in our acquisition of CCE's former North America business and $1,083 million of the Company's debt that was outstanding prior to the acquisition. The Company recorded a charge of $342 million in interest expense related to the premiums paid to repurchase the long-term debt and the costs associated with the settlement of treasury rate locks issued in connection with the debt tender offer. The general terms of the notes issued on November 15, 2010, were as follows: | ||||||||||||||
• | $1,250 million total principal amount of notes due May 15, 2012, at a variable interest rate of three-month LIBOR plus 0.05 percent; | |||||||||||||
• | $1,250 million total principal amount of notes due November 15, 2013, at a fixed interest rate of 0.75 percent; | |||||||||||||
• | $1,000 million total principal amount of notes due November 15, 2015, at a fixed interest rate of 1.5 percent; and | |||||||||||||
• | $1,000 million total principal amount of notes due November 15, 2020, at a fixed interest rate of 3.15 percent. | |||||||||||||
Subsequent to the repurchase of a portion of the long-term debt assumed from CCE, the general terms of the debt assumed and remaining outstanding as of December 31, 2010, were as follows: | ||||||||||||||
• | $2,594 million total principal amount of U.S. dollar notes due 2011 to 2037 at an average interest rate of 5.7 percent; | |||||||||||||
• | $2,288 million total principal amount of U.S. dollar debentures due 2012 to 2098 at an average interest rate of 7.4 percent; | |||||||||||||
• | $275 million total principal amount of U.S. dollar notes due 2011 at a variable interest rate of 1.0 percent; | |||||||||||||
• | $544 million total principal amount of U.K. pound sterling notes due 2016 and 2021 at an average interest rate of 6.5 percent; | |||||||||||||
• | $303 million principal amount of U.S. dollar zero coupon notes due 2020; and | |||||||||||||
• | $26 million of other long-term debt. | |||||||||||||
The Company's long-term debt consisted of the following (in millions, except average rate data): | ||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||
Amount | Average | Amount | Average | |||||||||||
Rate 1 | Rate1 | |||||||||||||
U.S. dollar notes due 2013–2093 | $ | 13,407 | 1.7 | % | $ | 12,270 | 1.9 | % | ||||||
U.S. dollar debentures due 2017–2098 | 2,207 | 3.7 | 2,482 | 4 | ||||||||||
U.S. dollar zero coupon notes due 20202 | 135 | 8.4 | 130 | 8.4 | ||||||||||
Other, due through 20983 | 291 | 4.4 | 584 | 4.8 | ||||||||||
Fair value adjustment4 | 273 | N/A | 231 | N/A | ||||||||||
Total5,6 | $ | 16,313 | 2.1 | % | $ | 15,697 | 2.3 | % | ||||||
Less current portion | 1,577 | 2,041 | ||||||||||||
Long-term debt | $ | 14,736 | $ | 13,656 | ||||||||||
1 | These rates represent the weighted-average effective interest rate on the balances outstanding as of year end, as adjusted for the effects of interest rate swap agreements as well as fair value adjustments, if applicable. Refer to Note 5 for a more detailed discussion on interest rate management. | |||||||||||||
2 | This amount is shown net of unamortized discounts of $36 million and $41 million as of December 31, 2012 and 2011, respectively. | |||||||||||||
3 | As of December 31, 2012, the amount shown includes $90 million of debt instruments that are due through 2022. | |||||||||||||
4 | Refer to Note 5 for additional information about our fair value hedging strategy. | |||||||||||||
5 | As of December 31, 2012 and 2011, the fair value of our long-term debt, including the current portion, was $17,157 million and $16,360 million, respectively. The fair value of our long-term debt is estimated based on quoted prices for those or similar instruments. | |||||||||||||
6 | The above notes and debentures include various restrictions, none of which is presently significant to our Company. | |||||||||||||
The carrying value of the Company's long-term debt included fair value adjustments related to the debt assumed from CCE of $617 million and $733 million as of December 31, 2012 and 2011, respectively. These fair value adjustments are being amortized over the number of years remaining until the underlying debt matures. As of December 31, 2012, the weighted-average maturity of the assumed debt to which these fair value adjustments relate was approximately 17 years. The amortization of these fair value adjustments will be a reduction of interest expense in future periods, which will typically result in our interest expense being less than the actual interest paid to service the debt. Total interest paid was $574 million, $573 million and $422 million in 2012, 2011 and 2010, respectively. | ||||||||||||||
Maturities of long-term debt for the five years succeeding December 31, 2012, are as follows (in millions): | ||||||||||||||
Maturities of | ||||||||||||||
Long-Term Debt | ||||||||||||||
2013 | $ | 1,577 | ||||||||||||
2014 | 2,633 | |||||||||||||
2015 | 2,451 | |||||||||||||
2016 | 1,705 | |||||||||||||
2017 | 1,439 | |||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Dec. 31, 2012 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||
Guarantees | ||||
As of December 31, 2012, we were contingently liable for guarantees of indebtedness owed by third parties of $671 million, of which $294 million was related to VIEs. Refer to Note 1 for additional information related to the Company's maximum exposure to loss due to our involvement with VIEs. Our 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 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; and, on or about January 10, 2013, the parties reached a settlement of the remaining coverage issues and the estoppel claims. The Chartis insurers have filed a notice of appeal with respect to certain issues that were the subject of summary judgment orders earlier in the case. 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. | ||||
Indemnifications | ||||
At the time we acquire or divest our interest in an entity, we sometimes agree to indemnify the seller or buyer for specific contingent liabilities. Management believes that any liability to the Company that may arise as a result of any such indemnification agreements will not have a material adverse effect on the Company taken as a whole. | ||||
Tax Audits | ||||
The Company is involved in various tax matters, with respect to some of which the outcome is uncertain. These audits may result in the assessment of additional taxes that are subsequently resolved with authorities or potentially through the courts. Refer to Note 14. | ||||
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 through actuarial procedures of the insurance industry and by using industry assumptions, adjusted for our specific expectations based on our claim history. The Company's self-insurance reserves totaled $508 million and $527 million as of December 31, 2012 and 2011, respectively. | ||||
Workforce (Unaudited) | ||||
As of December 31, 2012, our Company had approximately 150,900 associates, of which approximately 68,300 associates were located in the United States. Our Company, through its divisions and subsidiaries, is a party to numerous collective bargaining agreements. As of December 31, 2012, approximately 17,900 associates in North America were covered by collective bargaining agreements. These agreements typically have terms of three to five years. We currently expect that we will be able to renegotiate such agreements on satisfactory terms when they expire. The Company believes that its relations with its associates are generally satisfactory. | ||||
Operating Leases | ||||
The following table summarizes our minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one year as of December 31, 2012 (in millions): | ||||
Years Ending December 31, | Operating Lease Payments | |||
2013 | $ | 233 | ||
2014 | 162 | |||
2015 | 128 | |||
2016 | 101 | |||
2017 | 72 | |||
Thereafter | 235 | |||
Total minimum operating lease payments1 | $ | 931 | ||
1 | Income associated with sublease arrangements is not significant. |
STOCK_COMPENSATION_PLANS
STOCK COMPENSATION PLANS | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
STOCK COMPENSATION PLANS [Abstract] | |||||||||||||
STOCK COMPENSATION PLANS | STOCK COMPENSATION PLANS | ||||||||||||
Our Company grants stock options and restricted stock awards to certain employees of the Company. Total stock-based compensation expense was $259 million, $354 million and $380 million in 2012, 2011 and 2010, respectively, and was included as a component of selling, general and administrative expenses in our consolidated statements of income. The total income tax benefit recognized in our consolidated statements of income related to stock-based compensation arrangements was $72 million, $99 million and $110 million in 2012, 2011 and 2010, respectively. | |||||||||||||
As of December 31, 2012, we had $467 million of total unrecognized compensation cost related to nonvested stock-based compensation arrangements granted under our plans. This cost is expected to be recognized over a weighted-average period of 1.8 years as stock-based compensation expense. This expected cost does not include the impact of any future stock-based compensation awards. | |||||||||||||
On July 27, 2012, the Company's certificate of incorporation was amended to increase the number of authorized shares of common stock from 5.6 billion to 11.2 billion and effect a two-for-one stock split of the common stock. The record date for the stock split was July 27, 2012, and the additional shares were distributed on August 10, 2012. Each shareowner of record on the close of business on the record date received one additional share of common stock for each share held. All share and per share data presented herein reflect the impact of the increase in authorized shares and the stock split, as appropriate. | |||||||||||||
As a result of our acquisition of CCE's former North America business, the Company assumed certain stock-based compensation plans previously sponsored by CCE. Shares from these plans remain available for future grant to current employees who were employees of CCE or its subsidiaries prior to the acquisition or who are hired by the Company or its subsidiaries following the acquisition. The assumed Coca-Cola Enterprises Inc. 2001 Stock Option Plan, Coca-Cola Enterprises Inc. 2004 Stock Award Plan and Coca-Cola Enterprises Inc. 2007 Incentive Award Plan previously sponsored by CCE have approximately 29 million shares available for grant after conversion of CCE common stock into our common stock. The Company has not granted any equity awards from the assumed plans. | |||||||||||||
Stock Option Plans | |||||||||||||
The fair value of our stock option grants is amortized over the vesting period, generally four years. The fair value of each option award is estimated on the grant date using a Black-Scholes-Merton option-pricing model. The weighted-average fair value of options granted during the past three years and the weighted-average assumptions used in the Black-Scholes-Merton option-pricing model for such grants were as follows: | |||||||||||||
2012 | 2011 | 2010 | |||||||||||
As Adjusted | |||||||||||||
Fair value of options at grant date | $ | 3.8 | $ | 4.64 | $ | 4.7 | |||||||
Dividend yield1 | 2.7 | % | 2.7 | % | 2.9 | % | |||||||
Expected volatility2 | 18 | % | 19 | % | 20 | % | |||||||
Risk-free interest rate3 | 1 | % | 2.3 | % | 3 | % | |||||||
Expected term of the option4 | 5 years | 5 years | 6 years | ||||||||||
1 | The dividend yield is the calculated yield on the Company's stock at the time of the grant. | ||||||||||||
2 | Expected volatility is based on implied volatilities from traded options on the Company's stock, historical volatility of the Company's stock and other factors. | ||||||||||||
3 | The risk-free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. | ||||||||||||
4 | The expected term of the option represents the period of time that options granted are expected to be outstanding and is derived by analyzing historic exercise behavior. | ||||||||||||
Generally, stock options granted from 1999 through July 2003 expire 15 years from the date of grant and stock options granted in December 2003 and thereafter expire 10 years from the date of grant. The shares of common stock to be issued, transferred and/or sold under the stock option plans are made available from authorized and unissued Company common stock or from the Company's treasury shares. In 2007, the Company began issuing common stock under these plans from the Company's treasury shares. The Company had the following active stock option plans as of December 31, 2012: | |||||||||||||
• | The Coca-Cola Company 1999 Stock Option Plan (the "1999 Option Plan") was approved by shareowners in April 1999. Under the 1999 Option Plan, a maximum of 240 million shares of our common stock was approved to be issued or transferred, through the grant of stock options, to certain officers and employees. | ||||||||||||
• | The Coca-Cola Company 2002 Stock Option Plan (the "2002 Option Plan") was approved by shareowners in April 2002. An amendment to the 2002 Option Plan which permitted the issuance of stock appreciation rights was approved by shareowners in April 2003. Under the 2002 Option Plan, a maximum of 240 million shares of our common stock was approved to be issued or transferred, through the grant of stock options or stock appreciation rights, to certain officers and employees. No stock appreciation rights have been issued under the 2002 Option Plan as of December 31, 2012. | ||||||||||||
• | The Coca-Cola Company 2008 Stock Option Plan (the "2008 Option Plan") was approved by shareowners in April 2008. Under the 2008 Option Plan, a maximum of 280 million shares of our common stock was approved to be issued or transferred to certain officers and employees pursuant to stock options granted under the 2008 Option Plan. | ||||||||||||
As of December 31, 2012, there were 132 million shares available to be granted under the stock option plans discussed above. Options to purchase common stock under all of these plans have generally been granted at the fair market value of the Company's stock at the date of grant. | |||||||||||||
Stock option activity for all stock option plans for the year ended December 31, 2012, was as follows: | |||||||||||||
Shares | Weighted-Average | Weighted-Average | Aggregate | ||||||||||
(In millions) | Exercise Price | Remaining | Intrinsic Value | ||||||||||
Contractual Life | (In millions) | ||||||||||||
Outstanding on January 1, 2012 — As Adjusted | 323 | $ | 25.62 | ||||||||||
Granted | 53 | 34.4 | |||||||||||
Exercised | (61 | ) | 24.43 | ||||||||||
Forfeited/expired | (6 | ) | 30.01 | ||||||||||
Outstanding on December 31, 20121 | 309 | $ | 27.27 | 5.82 years | $ | 2,777 | |||||||
Expected to vest at December 31, 2012 | 305 | $ | 27.2 | 5.79 years | $ | 2,765 | |||||||
Exercisable on December 31, 2012 | 194 | $ | 24.92 | 4.41 years | $ | 2,200 | |||||||
1 | Includes 4 million stock option replacement awards in connection with our acquisition of CCE's former North America business in 2010. These options had a weighted-average exercise price of $18.32, and generally vest over 3 years and expire 10 years from the original date of grant. | ||||||||||||
The total intrinsic value of the options exercised was $780 million, $631 million and $524 million in 2012, 2011 and 2010, respectively. The total shares exercised were 61 million, 65 million and 73 million in 2012, 2011 and 2010, respectively. | |||||||||||||
Restricted Stock Award Plans | |||||||||||||
Under The Coca-Cola Company 1989 Restricted Stock Award Plan and The Coca-Cola Company 1983 Restricted Stock Award Plan (the "Restricted Stock Award Plans"), 80 million and 48 million shares of restricted common stock, respectively, were originally available to be granted to certain officers and key employees of our Company. As of December 31, 2012, 32 million shares remain available for grant under the Restricted Stock Award Plans. The Company issues restricted stock to employees as a result of performance share unit awards, time-based awards and performance-based awards. | |||||||||||||
For awards prior to January 1, 2008, under the 1983 Restricted Stock Award Plan, participants are reimbursed by our Company for income taxes imposed on the award, but not for taxes generated by the reimbursement payment. The 1983 Restricted Stock Award Plan has been amended to eliminate this tax reimbursement for awards after January 1, 2008. The shares are subject to certain transfer restrictions and may be forfeited if a participant leaves our Company for reasons other than retirement, disability or death, absent a change in control of our Company. | |||||||||||||
Performance Share Unit Awards | |||||||||||||
In 2003, the Company established a program to grant performance share units under The Coca-Cola Company 1989 Restricted Stock Award Plan to executives. In 2008, the Company expanded the program to award a mix of stock options and performance share units to eligible employees in addition to executives. The number of shares earned is determined at the end of each performance period, generally three years, based on the actual performance criteria predetermined by the Board of Directors at the time of grant. If the performance criteria are met, the award results in a grant of restricted stock or restricted stock units, which are then generally subject to a holding period in order for the restricted stock to be released. For performance share units granted before 2008, this holding period is generally two years. For performance share units granted in 2008 and after, this holding period is generally one year. Restrictions on such stock generally lapse at the end of the holding period. Performance share units generally do not pay dividends or allow voting rights during the performance period. For awards granted prior to 2011, participants generally receive dividends or dividend equivalents once the performance criteria have been certified and the restricted stock or restricted stock units have been issued. For awards granted in 2011 and later, participants generally receive dividends or dividend equivalents once the shares have been released. Accordingly, the fair value of the performance share units is the quoted market value of the Company stock on the grant date less the present value of the expected dividends not received during the relevant period. In the period it becomes probable that the minimum performance criteria specified in the plan will be achieved, we recognize expense for the proportionate share of the total fair value of the performance share units related to the vesting period that has already lapsed. The remaining cost of the grant is expensed on a straight-line basis over the balance of the vesting period. In the event the Company determines it is no longer probable that we will achieve the minimum performance criteria specified in the plan, we reverse all of the previously recognized compensation expense in the period such a determination is made. | |||||||||||||
Performance share units under The Coca-Cola Company 1989 Restricted Stock Award Plan require achievement of certain financial measures, primarily compound annual growth in earnings per share or economic profit. These financial measures are adjusted for certain items approved and certified by the Audit Committee of the Board of Directors. The purpose of these adjustments is to ensure a consistent year to year comparison of the specific performance criteria. Economic profit is our net operating profit after tax less the cost of the capital used in our business. In the event the financial results equal the predefined target, the Company will grant the number of restricted shares equal to the target award in the underlying performance share unit agreements. In the event the financial results exceed the predefined target, additional shares up to the maximum award may be granted. In the event the financial results fall below the predefined target, a reduced number of shares may be granted. If the financial results fall below the threshold award performance level, no shares will be granted. Performance share units are generally settled in stock, except for certain circumstances such as death or disability, where former employees or their beneficiaries are provided a cash equivalent payment. As of December 31, 2012, performance share units of 5,105,000, 5,655,000 and 6,824,000 were outstanding for the 2010–2012, 2011–2013 and 2012–2014 performance periods, respectively, based on the target award amounts in the performance share unit agreements. | |||||||||||||
The following table summarizes information about performance share units based on the target award amounts in the performance share unit agreements: | |||||||||||||
Share Units | Weighted-Average | ||||||||||||
(In thousands) | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Outstanding on January 1, 2012 — As Adjusted | 11,366 | $ | 25.41 | ||||||||||
Granted | 7,034 | 29.95 | |||||||||||
Paid in cash equivalent | (16 | ) | 27.3 | ||||||||||
Canceled/forfeited | (800 | ) | 27.71 | ||||||||||
Outstanding on December 31, 20121 | 17,584 | $ | 28.01 | ||||||||||
1 | The outstanding performance share units as of December 31, 2012, at the threshold award and maximum award levels were 8.8 million and 26.4 million, respectively. | ||||||||||||
The weighted-average grant date fair value of performance share units granted was $29.95 in 2012, $25.58 in 2011 and $25.17 in 2010. The Company converted performance share units of 16,267 in 2012, 19,462 in 2011 and 27,650 in 2010 to cash equivalent payments of $0.6 million, $0.7 million and $0.7 million, respectively, to former executives who were ineligible for restricted stock grants due to certain events such as death, disability or termination. | |||||||||||||
The following table summarizes information about the conversions of performance share units to restricted stock and restricted stock units: | |||||||||||||
Share Units | Weighted-Average | ||||||||||||
(In thousands) | Grant-Date | ||||||||||||
Fair Value1 | |||||||||||||
Nonvested on January 1, 2012 — As Adjusted2 | 4,444 | $ | 26.53 | ||||||||||
Vested and released | (4,302 | ) | 26.53 | ||||||||||
Canceled/forfeited | (44 | ) | 26.54 | ||||||||||
Nonvested on December 31, 20122 | 98 | $ | 26.54 | ||||||||||
1 | The weighted-average grant-date fair value is based on the fair values of the performance share units granted. | ||||||||||||
2 | The nonvested shares as of January 1, 2012, and December 31, 2012, are presented at the performance share units certified award amount. | ||||||||||||
The total intrinsic value of restricted shares that were vested and released was $148 million, $72 million and $58 million in 2012, 2011 and 2010, respectively. The total restricted share units vested and released in 2012 were 4,301,732 at the certified award amount. In 2011 and 2010, the total restricted share units vested and released were 2,084,912 and 1,850,466, respectively. | |||||||||||||
Replacement performance share unit awards issued by the Company in connection with our acquisition of CCE's former North America business are not included in the tables or discussions above and were originally granted under the Coca-Cola Enterprises Inc. 2007 Incentive Award Plan. Refer to Note 2. These awards were converted into equivalent share units of the Company's common stock on the acquisition date and entitle the participant to dividend equivalents (which vest, in some cases, only if the restricted share units vest), but not the right to vote. Accordingly, the fair value of these units was the quoted value of the Company's stock at the grant date. The number of shares earned is determined at the end of each performance period, generally one to three years, based on the actual performance criteria predetermined at the time of grant. These performance share units require achievement of certain financial measures, primarily compound annual growth in earnings per share, as adjusted for certain items detailed in the plan documents. In the event the financial results exceed the predefined targets, additional shares up to a maximum of 200 percent of target may be granted. In the event the financial results fall below the predefined targets, a reduced number of shares may be granted. If the financial results fall below the minimum award performance level, no shares will be granted. | |||||||||||||
On the acquisition date, the Company issued 3.3 million replacement performance share unit awards at target with a weighted average grant-date price of $29.56 per share unit for the 2008–2010, 2009 and 2010 performance periods. The 2008–2010 and the 2010 performance period awards were projected to pay out at 200 percent on the acquisition date and were certified as such in February 2011. The 2009 award was already certified at 200 percent prior to the acquisition date. In accordance with accounting principles generally accepted in the United States, the portion of the fair value of the replacement awards related to services provided prior to the business combination was included in the total purchase price. Refer to Note 2. The portion of the fair value associated with future service is recognized as expense over the future service period. However, in the fourth quarter of 2010, the Company modified primarily all of these performance awards to eliminate the remaining holding period after December 31, 2010, which resulted in $74 million of accelerated expense included in the total stock-based compensation expense above. As a result of this modification, the Company released 2.8 million shares at the 200 percent payout for the 2009 performance period award during the fourth quarter of 2010. The intrinsic value of the release of these shares was $91 million. During 2011, the Company released 3.1 million shares at the 200 percent payout with an intrinsic value of $98 million, primarily related to the 2008–2010 and 2010 performance periods. During 2012, the Company released 0.6 million shares at the 200 percent payout with an intrinsic value of $22 million, primarily related to the 2009 performance period. As of December 31, 2012, the Company had 0.1 million outstanding replacement performance share units related to the 2009 performance period. The remaining shares are scheduled for release during the second quarter of 2013. | |||||||||||||
Time-Based and Performance-Based Restricted Stock and Restricted Stock Unit Awards | |||||||||||||
The Coca-Cola Company 1989 Restricted Stock Award Plan allows for the grant of time-based and performance-based restricted stock and restricted stock units. The performance-based restricted awards are released only upon the achievement of specific measurable performance criteria. These awards pay dividends during the performance period. The majority of awards have specific performance targets for achievement. If the performance targets are not met, the awards will be canceled. In the period it becomes probable that the performance criteria will be achieved, we recognize expense for the proportionate share of the total fair value of the grant related to the vesting period that has already lapsed. The remaining cost of the grant is expensed on a straight-line basis over the balance of the vesting period. | |||||||||||||
For time-based and performance-based restricted stock awards, participants are entitled to vote and receive dividends on the restricted shares. The Company also awards time-based and performance-based restricted stock units for which participants may receive payments of dividend equivalents but are not entitled to vote. As of December 31, 2012, the Company had outstanding nonvested time-based and performance-based restricted stock awards, including restricted stock units, of 774,000 and 92,000, respectively. Time-based and performance-based restricted awards were not significant to our consolidated financial statements. | |||||||||||||
In 2010, the Company issued time-based restricted stock unit replacement awards in connection with our acquisition of CCE's former North America business. Refer to Note 2. These awards were converted into equivalent shares of the Company's common stock. These restricted share awards entitle the participant to dividend equivalents (which vest, in some cases, only if the restricted share unit vests), but not the right to vote. As of December 31, 2012, the Company had 65,000 outstanding nonvested time-based restricted stock replacement awards, including restricted stock units. These time-based restricted awards were not significant to our consolidated financial statements. |
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans [Abstract] | ||||||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | |||||||||||||||||||||||
Our Company sponsors and/or contributes to pension and postretirement health care and life insurance benefit plans covering substantially all U.S. employees. We also sponsor nonqualified, unfunded defined benefit pension plans for certain associates. In addition, our Company and its subsidiaries have various pension plans and other forms of postretirement arrangements outside the United States. | ||||||||||||||||||||||||
Effective January 1, 2012, the Company elected to change our accounting methodology for determining the market-related value of assets for our U.S. qualified defined benefit pension plans. This change in accounting methodology has been applied retrospectively, and we have adjusted all applicable prior period financial information presented herein as required. Refer to Note 1 for further information related to this change and the impact it had on our consolidated financial statements. | ||||||||||||||||||||||||
As part of the Company's acquisition of CCE's former North America business during the fourth quarter of 2010, we assumed certain liabilities related to pension and other postretirement benefit plans. Refer to Note 2 for additional information related to this acquisition. These liabilities relate to various pension, retiree medical and defined contribution plans (referred to herein as the "assumed plans"). The assumed plans include participation in multi-employer pension plans in the United States. See discussion of multi-employer plans below. | ||||||||||||||||||||||||
We refer to the funded defined benefit pension plan in the United States that is not associated with collective bargaining organizations as the "primary U.S. plan." As of December 31, 2012, the primary U.S. plan represented 59 percent and 64 percent of the Company's consolidated projected benefit obligation and pension assets, respectively. | ||||||||||||||||||||||||
Obligations and Funded Status | ||||||||||||||||||||||||
The following table sets forth the changes in benefit obligations and the fair value of plan assets for our benefit plans (in millions): | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
Benefit obligation at beginning of year1 | $ | 8,255 | $ | 7,292 | $ | 953 | $ | 889 | ||||||||||||||||
Service cost | 291 | 249 | 34 | 32 | ||||||||||||||||||||
Interest cost | 388 | 391 | 43 | 45 | ||||||||||||||||||||
Foreign currency exchange rate changes | (7 | ) | 30 | 3 | 2 | |||||||||||||||||||
Amendments | (3 | ) | (57 | ) | (2 | ) | (12 | ) | ||||||||||||||||
Actuarial loss (gain) | 1,259 | 773 | 115 | 45 | ||||||||||||||||||||
Benefits paid2 | (420 | ) | (440 | ) | (53 | ) | (63 | ) | ||||||||||||||||
Settlements | (35 | ) | (24 | ) | — | — | ||||||||||||||||||
Curtailments | 6 | — | — | — | ||||||||||||||||||||
Special termination benefits | 1 | 8 | — | 3 | ||||||||||||||||||||
Other3 | (42 | ) | 33 | 11 | 12 | |||||||||||||||||||
Benefit obligation at end of year1 | $ | 9,693 | $ | 8,255 | $ | 1,104 | $ | 953 | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 6,171 | $ | 5,497 | $ | 185 | $ | 187 | ||||||||||||||||
Actual return on plan assets | 822 | 73 | 16 | (4 | ) | |||||||||||||||||||
Employer contributions | 1,056 | 1,001 | — | — | ||||||||||||||||||||
Foreign currency exchange rate changes | (17 | ) | (1 | ) | — | — | ||||||||||||||||||
Benefits paid | (366 | ) | (374 | ) | (2 | ) | (1 | ) | ||||||||||||||||
Settlements | (34 | ) | (27 | ) | — | — | ||||||||||||||||||
Other3 | (48 | ) | 2 | 3 | 3 | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 7,584 | $ | 6,171 | $ | 202 | $ | 185 | ||||||||||||||||
Net liability recognized | $ | (2,109 | ) | $ | (2,084 | ) | $ | (902 | ) | $ | (768 | ) | ||||||||||||
1 | For pension benefit plans, the benefit obligation is the projected benefit obligation. For other benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The accumulated benefit obligation for our pension plans was $9,345 million and $7,958 million as of December 31, 2012 and 2011, respectively. | |||||||||||||||||||||||
2 | Benefits paid to pension plan participants during 2012 and 2011 included $54 million and $66 million, respectively, in payments related to unfunded pension plans that were paid from Company assets. Benefits paid to participants of other benefit plans during 2012 and 2011 included $51 million and $62 million, respectively, that were paid from Company assets. | |||||||||||||||||||||||
3 | In 2012, primarily relates to the transfer of assets and liabilities associated with the Company's consolidated Philippine bottling operations to assets held for sale and liabilities held for sale as of December 31, 2012. Refer to Note 2 for additional information. | |||||||||||||||||||||||
Pension and other benefit amounts recognized in our consolidated balance sheets are as follows (in millions): | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Noncurrent asset | $ | 395 | $ | 468 | $ | — | $ | — | ||||||||||||||||
Current liability | (73 | ) | (68 | ) | (21 | ) | (21 | ) | ||||||||||||||||
Long-term liability | (2,431 | ) | (2,484 | ) | (881 | ) | (747 | ) | ||||||||||||||||
Net liability recognized | $ | (2,109 | ) | $ | (2,084 | ) | $ | (902 | ) | $ | (768 | ) | ||||||||||||
Effective January 1, 2010, the Company's existing primary U.S. plan was transitioned from a traditional final average pay formula to a cash balance formula. In general, employees may receive credits based on age, service, pay and interest under the new method. The pension plan acquired by the Company in connection with our acquisition of CCE's former North America business transitioned to a cash balance formula in 2011. | ||||||||||||||||||||||||
Certain of our pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligations and the fair value of plan assets were as follows (in millions): | ||||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||
Projected benefit obligation | $ | 9,161 | $ | 7,591 | ||||||||||||||||||||
Fair value of plan assets | 6,659 | 5,048 | ||||||||||||||||||||||
Certain of our pension plans have accumulated benefit obligations in excess of the fair value of plan assets. For these plans, the accumulated benefit obligations and the fair value of plan assets were as follows (in millions): | ||||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||
Accumulated benefit obligation | $ | 8,736 | $ | 7,277 | ||||||||||||||||||||
Fair value of plan assets | 6,546 | 4,998 | ||||||||||||||||||||||
Pension Plan Assets | ||||||||||||||||||||||||
The following table presents total assets for our U.S. and non-U.S. pension plans (in millions): | ||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Cash and cash equivalents | $ | 299 | $ | 104 | $ | 87 | $ | 123 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S.-based companies | 1,844 | 1,362 | 37 | 33 | ||||||||||||||||||||
International-based companies | 324 | 630 | 640 | 323 | ||||||||||||||||||||
Fixed-income securities: | ||||||||||||||||||||||||
Government bonds | 399 | 358 | 163 | 415 | ||||||||||||||||||||
Corporate bonds and debt securities | 856 | 669 | 126 | 49 | ||||||||||||||||||||
Mutual, pooled and commingled funds1 | 1,057 | 323 | 453 | 406 | ||||||||||||||||||||
Hedge funds/limited partnerships | 496 | 458 | 29 | 31 | ||||||||||||||||||||
Real estate | 248 | 256 | 9 | 14 | ||||||||||||||||||||
Other | 26 | 114 | 491 | 503 | ||||||||||||||||||||
Total pension plan assets2 | $ | 5,549 | $ | 4,274 | $ | 2,035 | $ | 1,897 | ||||||||||||||||
1 | Mutual, pooled and commingled funds include investments in equity securities, fixed-income securities and combinations of both. There are a significant number of mutual, pooled and commingled funds from which investors can choose. The selection of the type of fund is dictated by the specific investment objectives and needs of a given plan. These objectives and needs vary greatly between plans. | |||||||||||||||||||||||
2 | Fair value disclosures related to our pension assets are included in Note 16. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy on which the fair value measurements in their entirety fall; a reconciliation of the beginning and ending balances of Level 3 assets; and information about the valuation techniques and inputs used to measure the fair value of our pension and other postretirement assets. | |||||||||||||||||||||||
Investment Strategy for U.S. Pension Plans | ||||||||||||||||||||||||
The Company utilizes the services of investment managers to actively manage the pension assets of our U.S. plans. We have established asset allocation targets and investment guidelines with each investment manager. Our asset allocation targets promote optimal expected return and volatility characteristics given the long-term time horizon for fulfilling the obligations of the plan. Selection of the targeted asset allocation for U.S. plan assets was based upon a review of the expected return and risk characteristics of each asset class, as well as the correlation of returns among asset classes. During 2012, the Company revised asset allocation targets and restructured the investment manager composition to further diversify investment risk and reduce volatility while maintaining long-term return objectives. Our revised target allocation is a mix of approximately 42 percent equity investments, 30 percent fixed-income investments and 28 percent alternative investments. As of December 31, 2012, the transition to the new asset allocation targets was not complete, but we anticipate this transition being completed during the first quarter of 2013. We believe this target allocation will enable us to achieve the following long-term investment objectives: | ||||||||||||||||||||||||
-1 | optimize the long-term return on plan assets at an acceptable level of risk; | |||||||||||||||||||||||
-2 | maintain a broad diversification across asset classes and among investment managers; | |||||||||||||||||||||||
-3 | maintain careful control of the risk level within each asset class; and | |||||||||||||||||||||||
-4 | focus on a long-term return objective. | |||||||||||||||||||||||
The guidelines that have been established with each investment manager provide parameters within which the investment managers agree to operate, including criteria that determine eligible and ineligible securities, diversification requirements and credit quality standards, where applicable. Unless exceptions have been approved, investment managers are prohibited from buying or selling commodities, futures or option contracts, as well as from short selling of securities. Additionally, investment managers agree to obtain written approval for deviations from stated investment style or guidelines. As of December 31, 2012, no investment manager was responsible for more than 10 percent of total U.S. plan assets. | ||||||||||||||||||||||||
Our target allocation of 42 percent equity investments is composed of approximately 60 percent in global equities, 16 percent in emerging market equities and 24 percent in domestic small- and mid-cap equities. Optimal returns through our investments in global equities are achieved through security selection as well as country and sector diversification. Investments in the common stock of our Company accounted for approximately 5 percent of our global equities allocation and approximately 2 percent of total U.S. plan assets. Our investments in global equities are intended to provide diversified exposure to both U.S. and non-U.S. equity markets. Our investments in both emerging market equities and domestic small- and mid-cap equities are expected to experience larger swings in their market value on a periodic basis. Our investments in these asset classes are selected based on capital appreciation potential. | ||||||||||||||||||||||||
Our target allocation of 30 percent fixed-income investments is composed of 33 percent long-duration bonds and 67 percent with multi-strategy alternative credit managers. Long-duration bonds provide a stable rate of return through investments in high-quality publicly traded debt securities. Our investments in long-duration bonds are diversified in order to mitigate duration and credit exposure. Multi-strategy alternative credit managers invest in a combination of high-yield bonds, bank loans, structured credit and emerging market debt. These investments are in lower-rated and non-rated debt securities, which generally produce higher returns compared to long-duration bonds and also help to diversify our overall fixed-income portfolio. | ||||||||||||||||||||||||
In addition to investments in equity securities and fixed-income investments, we have a target allocation of 28 percent in alternative investments. These alternative investments include hedge funds, reinsurance, private equity limited partnerships, leveraged buyout funds, international venture capital partnerships and real estate. The objective of investing in alternative investments is to provide a higher rate of return than that available from publicly traded equity securities. These investments are inherently illiquid and require a long-term perspective in evaluating investment performance. | ||||||||||||||||||||||||
Investment Strategy for Non-U.S. Pension Plans | ||||||||||||||||||||||||
As of December 31, 2012, the long-term target allocation for 45 percent of our international subsidiaries' plan assets, primarily certain of our European plans, is 56 percent equity securities and 44 percent fixed-income securities. The actual allocation for the remaining 55 percent of the Company's international subsidiaries' plan assets consisted of 38 percent mutual, pooled and commingled funds; 16 percent equity securities; 15 percent fixed-income securities; and 31 percent other investments. The investment strategies of our international subsidiaries differ greatly, and in some instances are influenced by local law. None of our pension plans outside the United States is individually significant for separate disclosure. | ||||||||||||||||||||||||
Other Postretirement Benefit Plan Assets | ||||||||||||||||||||||||
Plan assets associated with other benefits primarily represent funding of the U.S. postretirement benefit plan through a U.S. Voluntary Employee Beneficiary Association ("VEBA"), a tax-qualified trust. The VEBA assets remain segregated from the primary U.S. pension master trust and are primarily invested in liquid assets due to the level of expected future benefit payments. | ||||||||||||||||||||||||
The following table presents total assets for our other postretirement benefit plans (in millions): | ||||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||
Cash and cash equivalents | $ | 13 | $ | 86 | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S.-based companies | 81 | 70 | ||||||||||||||||||||||
International-based companies | 4 | 13 | ||||||||||||||||||||||
Fixed-income securities: | ||||||||||||||||||||||||
Government bonds | 78 | 2 | ||||||||||||||||||||||
Corporate bonds and debt securities | 5 | 6 | ||||||||||||||||||||||
Mutual, pooled and commingled funds | 16 | 3 | ||||||||||||||||||||||
Hedge funds/limited partnerships | 3 | 2 | ||||||||||||||||||||||
Real estate | 2 | 2 | ||||||||||||||||||||||
Other | — | 1 | ||||||||||||||||||||||
Total other postretirement benefit plan assets1 | $ | 202 | $ | 185 | ||||||||||||||||||||
1 | Fair value disclosures related to our other postretirement benefit plan assets are included in Note 16. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy on which the fair value measurements in their entirety fall; a reconciliation of the beginning and ending balances of Level 3 assets; and information about the valuation techniques and inputs used to measure the fair value of our pension and other postretirement assets. | |||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||
Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following (in millions): | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||
As Adjusted | ||||||||||||||||||||||||
Service cost | $ | 291 | $ | 249 | $ | 143 | $ | 34 | $ | 32 | $ | 24 | ||||||||||||
Interest cost | 388 | 391 | 260 | 43 | 45 | 30 | ||||||||||||||||||
Expected return on plan assets | (573 | ) | (508 | ) | (285 | ) | (8 | ) | (8 | ) | (8 | ) | ||||||||||||
Amortization of prior service cost (credit) | (2 | ) | 5 | 5 | (52 | ) | (61 | ) | (61 | ) | ||||||||||||||
Amortization of actuarial loss | 137 | 82 | 83 | 6 | 2 | 3 | ||||||||||||||||||
Net periodic benefit cost (credit) | $ | 241 | $ | 219 | $ | 206 | $ | 23 | $ | 10 | $ | (12 | ) | |||||||||||
Settlement charge | 3 | 3 | 6 | — | — | — | ||||||||||||||||||
Curtailment charge | 6 | — | — | — | — | — | ||||||||||||||||||
Special termination benefits1 | 1 | 8 | — | — | 3 | 1 | ||||||||||||||||||
Total cost (credit) recognized in the statements of income | $ | 251 | $ | 230 | $ | 212 | $ | 23 | $ | 13 | $ | (11 | ) | |||||||||||
1 | The special termination benefits primarily relate to the Company's productivity, restructuring and integration initiatives. Refer to Note 18 for additional information related to our productivity, restructuring and integration initiatives. | |||||||||||||||||||||||
The following table sets forth the changes in AOCI for our benefit plans (in millions, pretax): | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
As Adjusted | ||||||||||||||||||||||||
Beginning balance in AOCI | $ | (2,169 | ) | $ | (1,101 | ) | $ | (34 | ) | $ | 72 | |||||||||||||
Recognized prior service cost (credit) | (2 | ) | 5 | (52 | ) | (61 | ) | |||||||||||||||||
Recognized net actuarial loss (gain) | 140 | 85 | 6 | 2 | ||||||||||||||||||||
Prior service credit (cost) arising in current year | 3 | 57 | 2 | 12 | ||||||||||||||||||||
Net actuarial (loss) gain arising in current year | (1,009 | ) | (1,208 | ) | (107 | ) | (57 | ) | ||||||||||||||||
Foreign currency translation gain (loss) | 5 | (7 | ) | (1 | ) | (2 | ) | |||||||||||||||||
Ending balance in AOCI | $ | (3,032 | ) | $ | (2,169 | ) | $ | (186 | ) | $ | (34 | ) | ||||||||||||
The following table sets forth amounts in AOCI for our benefit plans (in millions, pretax): | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
As Adjusted | ||||||||||||||||||||||||
Prior service credit (cost) | $ | 16 | $ | 14 | $ | 23 | $ | 73 | ||||||||||||||||
Net actuarial loss | (3,048 | ) | (2,183 | ) | (209 | ) | (107 | ) | ||||||||||||||||
Ending balance in AOCI | $ | (3,032 | ) | $ | (2,169 | ) | $ | (186 | ) | $ | (34 | ) | ||||||||||||
Amounts in AOCI expected to be recognized as components of net periodic pension cost in 2013 are as follows (in millions, pretax): | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
Amortization of prior service cost (credit) | $ | (3 | ) | $ | (10 | ) | ||||||||||||||||||
Amortization of actuarial loss | 238 | 11 | ||||||||||||||||||||||
$ | 235 | $ | 1 | |||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||
Certain weighted-average assumptions used in computing the benefit obligations are as follows: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Discount rate | 4 | % | 4.75 | % | 4 | % | 4.75 | % | ||||||||||||||||
Rate of increase in compensation levels | 3.5 | % | 3.25 | % | N/A | N/A | ||||||||||||||||||
Certain weighted-average assumptions used in computing net periodic benefit cost are as follows: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||
Discount rate | 4.75 | % | 5.5 | % | 5.75 | % | 4.75 | % | 5.25 | % | 5.5 | % | ||||||||||||
Rate of increase in compensation levels | 3.25 | % | 4 | % | 3.75 | % | N/A | N/A | N/A | |||||||||||||||
Expected long-term rate of return on plan assets | 8.25 | % | 8.25 | % | 8 | % | 4.75 | % | 4.75 | % | 4.75 | % | ||||||||||||
The expected long-term rate of return assumption for U.S. pension plan assets is based upon the target asset allocation and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class, as well as correlations among asset classes. We evaluate the rate of return assumption on an annual basis. The expected long-term rate of return assumption used in computing 2012 net periodic pension cost for the U.S. plans was 8.5 percent. As of December 31, 2012, the 10-year annualized return on plan assets in the primary U.S. plan was 8.4 percent, the 15-year annualized return was 6.1 percent, and the annualized return since inception was 11.0 percent. | ||||||||||||||||||||||||
The assumed health care cost trend rates are as follows: | ||||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||
Health care cost trend rate assumed for next year | 8 | % | 8 | % | ||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | ||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2019 | 2018 | ||||||||||||||||||||||
The Company's U.S. postretirement benefit plans are primarily defined dollar benefit plans that limit the effects of medical inflation because the plans have established dollar limits for determining our contributions. As a result, the effect of a 1 percentage point change in the assumed health care cost trend rate would not be significant to the Company. | ||||||||||||||||||||||||
The discount rate assumptions used to account for pension and other postretirement benefit plans reflect the rates at which the benefit obligations could be effectively settled. Rates for each of our U.S. plans at December 31, 2012, were determined using a cash flow matching technique whereby the rates of a yield curve, developed from high-quality debt securities, were applied to the benefit obligations to determine the appropriate discount rate. For our non-U.S. plans, we base the discount rate on comparable indices within each of the countries. The rate of compensation increase assumption is determined by the Company based upon annual reviews. We review external data and our own historical trends for health care costs to determine the health care cost trend rate assumptions. | ||||||||||||||||||||||||
Cash Flows | ||||||||||||||||||||||||
Our estimated future benefit payments for funded and unfunded plans are as follows (in millions): | ||||||||||||||||||||||||
Year Ended December 31, | 2013 | 2014 | 2015 | 2016 | 2017 | 2018-2022 | ||||||||||||||||||
Pension benefit payments | $ | 452 | $ | 473 | $ | 493 | $ | 510 | $ | 542 | $ | 2,929 | ||||||||||||
Other benefit payments1 | 58 | 61 | 64 | 65 | 66 | 352 | ||||||||||||||||||
Total estimated benefit payments | $ | 510 | $ | 534 | $ | 557 | $ | 575 | $ | 608 | $ | 3,281 | ||||||||||||
1 | The expected benefit payments for our other postretirement benefit plans are net of estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Federal subsidies are estimated to be approximately $18 million for the period 2013–2017, and $22 million for the period 2018–2022. | |||||||||||||||||||||||
On March 23, 2010, the Patient Protection and Affordable Care Act (HR 3590) (the "Act") was signed into law. As a result of this legislation, entities are no longer eligible to receive a tax deduction for the portion of prescription drug expenses reimbursed under the Medicare Part D subsidy. This change resulted in a reduction of our deferred tax assets and a corresponding charge to income tax expense of $14 million during the first quarter of 2010. | ||||||||||||||||||||||||
The Company anticipates making pension contributions in 2013 of approximately $640 million, of which approximately $359 million will be allocated to our primary U.S. plan. The majority of these contributions are discretionary. | ||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||
Our Company sponsors qualified defined contribution plans covering substantially all U.S. employees. Under the largest U.S. defined contribution plan, we match participants' contributions up to a maximum of 3.5 percent of compensation, subject to certain limitations. Company costs related to the U.S. plans were $93 million, $78 million and $44 million in 2012, 2011 and 2010, respectively. We also sponsor defined contribution plans in certain locations outside the United States. Company costs associated with those plans were $29 million, $31 million and $35 million in 2012, 2011 and 2010, respectively. | ||||||||||||||||||||||||
Multi-Employer Plans | ||||||||||||||||||||||||
As a result of our acquisition of CCE's former North America business during the fourth quarter of 2010, the Company now participates in various multi-employer pension plans in the United States. Multi-employer pension plans are designed to cover employees from multiple employers and are typically established under collective bargaining agreements. These plans allow multiple employers to pool their pension resources and realize efficiencies associated with the daily administration of the plan. | ||||||||||||||||||||||||
Multi-employer plans are generally governed by a board of trustees composed of management and labor representatives and are funded through employer contributions. | ||||||||||||||||||||||||
The Company's expense for U.S. multi-employer pension plans totaled $31 million and $69 million in 2012 and 2011, respectively. In 2011, the Company's expense for U.S. multi-employer pension plans included charges of $32 million related to the withdrawal from certain of these plans in connection with the Company's integration initiatives in North America. Refer to Note 18 for additional information related to these initiatives. The plans we currently participate in have contractual arrangements that extend into 2017. If, in the future, we choose to withdraw from any of the multi-employer pension plans in which we currently participate, we would need to record the appropriate withdrawal liabilities at that time. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||
INCOME TAXES | INCOME TAXES | |||||||||||||||
Income before income taxes consisted of the following (in millions): | ||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||
As Adjusted | ||||||||||||||||
United States1 | $ | 3,526 | $ | 3,029 | $ | 7,188 | ||||||||||
International | 8,283 | 8,429 | 7,019 | |||||||||||||
Total | $ | 11,809 | $ | 11,458 | $ | 14,207 | ||||||||||
1 | In 2010, the Company's U.S. income before income taxes included a $4,978 million gain due to the remeasurement of our equity investment in CCE to fair value upon our acquisition of CCE's former North America business. Refer to Note 2 for additional information. | |||||||||||||||
Income tax expense consisted of the following for the years ended December 31, 2012, 2011 and 2010 (in millions): | ||||||||||||||||
United States | State and Local | International | Total | |||||||||||||
2012 | ||||||||||||||||
Current | $ | 602 | $ | 74 | $ | 1,415 | $ | 2,091 | ||||||||
Deferred | 936 | 33 | (337 | ) | 632 | |||||||||||
2011 — As Adjusted | ||||||||||||||||
Current | $ | 286 | $ | 66 | $ | 1,425 | $ | 1,777 | ||||||||
Deferred | 898 | 27 | 110 | 1,035 | ||||||||||||
2010 — As Adjusted | ||||||||||||||||
Current | $ | 469 | $ | 85 | $ | 1,212 | $ | 1,766 | ||||||||
Deferred | 586 | 2 | 16 | 604 | ||||||||||||
We made income tax payments of $981 million, $1,612 million and $1,766 million in 2012, 2011 and 2010, respectively. | ||||||||||||||||
A reconciliation of the statutory U.S. federal tax rate and our effective tax rate is as follows: | ||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||
As Adjusted | ||||||||||||||||
Statutory U.S. federal tax rate | 35 | % | 35 | % | 35 | % | ||||||||||
State and local income taxes — net of federal benefit | 1.1 | 0.9 | 0.6 | |||||||||||||
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate | (9.5 | ) | 1,2 | (9.5 | ) | 5,6,7 | (5.6 | ) | 15 | |||||||
Reversal of valuation allowances | (2.4 | ) | 3 | — | — | |||||||||||
Equity income or loss | (2.0 | ) | (1.4 | ) | 8 | (1.9 | ) | 16 | ||||||||
CCE transaction | — | — | (12.5 | ) | 17,18 | |||||||||||
Sale of Norwegian and Swedish bottling operations | — | — | 9 | 0.4 | 19 | |||||||||||
Other operating charges | 0.4 | 4 | 0.3 | 10 | 0.4 | 20 | ||||||||||
Other — net | 0.5 | (0.8 | ) | 11,12,13,14 | 0.3 | 21,22 | ||||||||||
Effective tax rate | 23.1 | % | 24.5 | % | 16.7 | % | ||||||||||
1 | Includes a tax expense of $133 million (or a 1.1 percent impact on our effective tax rate) related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions. | |||||||||||||||
2 | Includes a tax expense of $57 million on pretax net gains of $76 million (or a 0.3 percent impact on our effective tax rate) related to the following: a gain recognized as a result of the merger of Embotelladora Andina S.A. ("Andina") and Embotelladoras Coca-Cola Polar S.A. ("Polar"); a gain recognized as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its own stock at a per share amount greater than the carrying value of the Company's per share investment; the loss recognized on the pending sale of a majority ownership interest in our consolidated Philippine bottling operations to Coca-Cola FEMSA; and the expense recorded for the premium the Company paid over the publicly traded market price to acquire an ownership interest in Mikuni. Refer to Note 17. | |||||||||||||||
3 | Relates to a net tax benefit of $283 million associated with the reversal of valuation allowances in certain of the Company's foreign jurisdictions. | |||||||||||||||
4 | Includes a tax benefit of $95 million on pretax charges of $416 million (or a 0.4 percent impact on our effective tax rate) primarily related to the Company's productivity and reinvestment program as well as other restructuring initiatives; the refinement of previously established accruals related to the Company's 2008–2011 productivity initiatives; and the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Refer to Note 18. | |||||||||||||||
5 | Includes a tax benefit of $6 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions. | |||||||||||||||
6 | Includes a zero percent effective tax rate on pretax charges of $17 million due to the impairment of available-for-sale securities. Refer to Note 3 and Note 17. | |||||||||||||||
7 | Includes a tax expense of $299 million on pretax net gains of $641 million (or a 0.7 percent impact on our effective tax rate) related to the net gain recognized as a result of the merger of Embotelladoras Arca, S.A.B. de C.V. ("Arca") and Grupo Continental S.A.B. ("Contal"); the gain recognized on the sale of our investment in Embonor; and gains the Company recognized as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its own stock at per share amounts greater than the carrying value of the Company's per share investment. These gains were partially offset by charges associated with certain of the Company's equity method investments in Japan. Refer to Note 17. | |||||||||||||||
8 | Includes a tax benefit of $7 million on pretax net charges of $53 million (or a 0.1 percent impact on our effective tax rate) related to our proportionate share of asset impairments and restructuring charges recorded by certain of our equity method investees. Refer to Note 17. | |||||||||||||||
9 | Includes a tax benefit of $2 million on pretax charges of $5 million related to the finalization of working capital adjustments on the sale of our Norwegian and Swedish bottling operations. Refer to Note 2 and Note 17. | |||||||||||||||
10 | Includes a tax benefit of $224 million on pretax charges of $732 million (or a 0.3 percent impact on our effective tax rate) primarily related to the Company's productivity, integration and restructuring initiatives; transaction costs incurred in connection with the merger of Arca and Contal; costs associated with the earthquake and tsunami that devastated northern and eastern Japan; and costs associated with the flooding in Thailand. Refer to Note 17. | |||||||||||||||
11 | Includes a tax benefit of $8 million on pretax charges of $19 million related to the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's former North America business. | |||||||||||||||
12 | Includes a tax benefit of $3 million on pretax net charges of $9 million related to the repurchase and/or exchange of certain long-term debt assumed in connection with our acquisition of CCE's former North America business as well as the early extinguishment of certain other long-term debt. Refer to Note 10. | |||||||||||||||
13 | Includes a tax benefit of $14 million on pretax charges of $41 million related to the impairment of an investment in an entity accounted for under the equity method of accounting. Refer to Note 17. | |||||||||||||||
14 | Includes a tax benefit of $2 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in certain domestic jurisdictions. | |||||||||||||||
15 | Includes a tax expense of $265 million (or a 1.9 percent impact on our effective tax rate) primarily related to deferred tax expense on certain current year undistributed foreign earnings that are not considered indefinitely reinvested and amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. | |||||||||||||||
16 | Includes a tax benefit of $9 million on pretax net charges of $66 million (or a 0.1 percent impact on our effective tax rate) related to charges recorded by our equity method investees. Refer to Note 17. | |||||||||||||||
17 | Includes a tax benefit of $34 million on a pretax gain of $4,978 million (or a reduction of 12.5 percent on our effective tax rate) related to the remeasurement of our equity investment in CCE to fair value upon our acquisition of CCE's former North America business. The tax benefit reflects the impact of reversing deferred tax liabilities associated with our equity investment in CCE prior to the acquisition. Refer to Note 2. | |||||||||||||||
18 | Includes a tax benefit of $99 million on pretax charges of $265 million related to the write-off of preexisting relationships with CCE. Refer to Note 2. | |||||||||||||||
19 | Includes a tax expense of $261 million on a pretax gain of $597 million (or a 0.4 percent impact on our effective tax rate) related to the sale of our Norwegian and Swedish bottling operations. Refer to Note 2. | |||||||||||||||
20 | Includes a tax benefit of $223 million on pretax charges of $819 million (or a 0.4 percent impact on our effective tax rate) primarily related to the Company's productivity, integration and restructuring initiatives, transaction costs and charitable contributions. Refer to Note 17. | |||||||||||||||
21 | Includes a tax benefit of $114 million on pretax charges of $493 million (or a 0.5 percent impact on our effective tax rate) related to the repurchase of certain long-term debt and costs associated with the settlement of treasury rate locks issued in connection with the debt tender offer; the loss related to the remeasurement of our Venezuelan subsidiary's net assets; other-than-temporary impairment charges; and a donation of preferred shares in one of our equity method investees. Refer to Note 17. | |||||||||||||||
22 | Includes a tax expense of $31 million (or a 0.2 percent impact on our effective tax rate) related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, and other tax matters in certain domestic jurisdictions. | |||||||||||||||
Our effective tax rate reflects the tax 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. Tax incentive grants favorably impacted our income tax expense by $168 million, $193 million and $145 million for the years ended December 31, 2012, 2011 and 2010, respectively. 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. | ||||||||||||||||
In 2010, the Company recorded a $4,978 million pretax remeasurement gain associated with the acquisition of CCE's former North America business. This remeasurement gain was not recognized for tax purposes and therefore no tax expense was recorded on this gain. Also, as a result of this acquisition, the Company was required to reverse $34 million of deferred tax liabilities which were associated with our equity investment in CCE prior to the acquisition. In addition, the Company recognized a $265 million charge related to the settlement of preexisting relationships with CCE, and we recorded a tax benefit of 37 percent related to this charge. | ||||||||||||||||
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. U.S. tax authorities have completed their federal income tax examinations for all years prior to 2005. With respect to state and local jurisdictions and countries outside the United States, with limited exceptions, the Company and its subsidiaries are no longer subject to income tax audits for years before 2002. For U.S. federal and state tax purposes, the net operating losses and tax credit carryovers acquired in connection with our acquisition of CCE's former North America business that were generated between the years of 1990 through 2010 are subject to adjustments until the year in which they are actually utilized is no longer subject to examination. | ||||||||||||||||
Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, including interest and penalties, have been provided for any adjustments that are expected to result from those years. | ||||||||||||||||
As of December 31, 2012, the gross amount of unrecognized tax benefits was $302 million. If the Company were to prevail on all uncertain tax positions, the net effect would be a benefit to the Company's effective tax rate of $187 million, exclusive of any benefits related to interest and penalties. The remaining $115 million, which was recorded as a deferred tax asset, primarily represents tax benefits that would be received in different tax jurisdictions in the event the Company did not prevail on all uncertain tax positions. | ||||||||||||||||
A reconciliation of the changes in the gross balance of unrecognized tax benefit amounts is as follows (in millions): | ||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||
Beginning balance of unrecognized tax benefits | $ | 320 | $ | 387 | $ | 354 | ||||||||||
Increases related to prior period tax positions | 69 | 9 | 26 | |||||||||||||
Decreases related to prior period tax positions | (15 | ) | (19 | ) | (10 | ) | ||||||||||
Increases related to current period tax positions | 23 | 6 | 33 | |||||||||||||
Decreases related to current period tax positions | — | (1 | ) | — | ||||||||||||
Decreases related to settlements with taxing authorities | (45 | ) | (5 | ) | — | |||||||||||
Reductions as a result of a lapse of the applicable statute of limitations | (36 | ) | (46 | ) | (1 | ) | ||||||||||
Increase related to acquisition of CCE's former North America business | — | — | 6 | |||||||||||||
Increases (decreases) from effects of foreign currency exchange rates | (14 | ) | (11 | ) | (21 | ) | ||||||||||
Ending balance of unrecognized tax benefits | $ | 302 | $ | 320 | $ | 387 | ||||||||||
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company had $113 million, $110 million and $112 million in interest and penalties related to unrecognized tax benefits accrued as of December 31, 2012, 2011 and 2010, respectively. Of these amounts, $33 million of expense, $2 million of benefit and $17 million of expense were recognized through income tax expense in 2012, 2011 and 2010, respectively. If the Company were to prevail on all uncertain tax positions, the reversal of this accrual would also be a benefit to the Company's effective tax rate. | ||||||||||||||||
It is expected that the amount of unrecognized tax benefits will change in the next 12 months; however, we do not expect the change to have a significant impact on our consolidated statements of income or consolidated balance sheets. These changes may be the result of settlements of ongoing audits, statute of limitations expiring, or final settlements in transfer pricing matters that are the subject of litigation. At this time, an estimate of the range of the reasonably possible outcomes cannot be made. | ||||||||||||||||
As of December 31, 2012, undistributed earnings of the Company's foreign subsidiaries amounted to $26.9 billion. Those earnings are considered to be indefinitely reinvested and, accordingly, no U.S. federal and state income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practical because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits would be available to reduce a portion of the U.S. tax liability. | ||||||||||||||||
The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities consist of the following (in millions): | ||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||
Deferred tax assets: | ||||||||||||||||
Property, plant and equipment | $ | 89 | $ | 224 | ||||||||||||
Trademarks and other intangible assets | 77 | 68 | ||||||||||||||
Equity method investments (including foreign currency translation adjustment) | 209 | 278 | ||||||||||||||
Derivative financial instruments | 116 | 43 | ||||||||||||||
Other liabilities | 1,178 | 1,257 | ||||||||||||||
Benefit plans | 1,808 | 2,022 | ||||||||||||||
Net operating/capital loss carryforwards | 782 | 818 | ||||||||||||||
Other | 320 | 418 | ||||||||||||||
Gross deferred tax assets | $ | 4,579 | $ | 5,128 | ||||||||||||
Valuation allowances | (487 | ) | (859 | ) | ||||||||||||
Total deferred tax assets1,2 | $ | 4,092 | $ | 4,269 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Property, plant and equipment | $ | (2,204 | ) | $ | (2,039 | ) | ||||||||||
Trademarks and other intangible assets | (4,133 | ) | (4,201 | ) | ||||||||||||
Equity method investments (including foreign currency translation adjustment) | (712 | ) | (816 | ) | ||||||||||||
Derivative financial instruments | (140 | ) | (129 | ) | ||||||||||||
Other liabilities | (144 | ) | (129 | ) | ||||||||||||
Benefit plans | (495 | ) | (445 | ) | ||||||||||||
Other | (929 | ) | (753 | ) | ||||||||||||
Total deferred tax liabilities3 | $ | (8,757 | ) | $ | (8,512 | ) | ||||||||||
Net deferred tax liabilities | $ | (4,665 | ) | $ | (4,243 | ) | ||||||||||
1 | Noncurrent deferred tax assets of $403 million and $243 million were included in the line item other assets in our consolidated balance sheets as of December 31, 2012 and 2011, respectively. | |||||||||||||||
2 | Current deferred tax assets of $244 million and $227 million were included in the line item prepaid expenses and other assets in our consolidated balance sheets as of December 31, 2012 and 2011, respectively. | |||||||||||||||
3 | Current deferred tax liabilities of $331 million and $19 million were included in the line item accounts payable and accrued expenses in our consolidated balance sheets as of December 31, 2012 and 2011, respectively. | |||||||||||||||
As of December 31, 2012 and 2011, we had $70 million of net deferred tax assets and $491 million of net deferred tax liabilities located in countries outside the United States. | ||||||||||||||||
As of December 31, 2012, we had $6,494 million of loss carryforwards available to reduce future taxable income. Loss carryforwards of $279 million must be utilized within the next five years, and the remainder can be utilized over a period greater than five years. | ||||||||||||||||
An analysis of our deferred tax asset valuation allowances is as follows (in millions): | ||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||
Balance at beginning of year | $ | 859 | $ | 950 | $ | 681 | ||||||||||
Increase due to our acquisition of CCE's former North America business | — | — | 291 | |||||||||||||
Additions | 126 | 138 | 115 | |||||||||||||
Decrease due to transfer to assets held for sale | (146 | ) | — | — | ||||||||||||
Deductions | (352 | ) | (229 | ) | (137 | ) | ||||||||||
Balance at end of year | $ | 487 | $ | 859 | $ | 950 | ||||||||||
The Company's deferred tax asset valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits on tax loss carryforwards from operations in various jurisdictions. These valuation allowances were primarily related to deferred tax assets generated from net operating losses. Current evidence does not suggest we will realize sufficient taxable income of the appropriate character within the carryforward period to allow us to realize these deferred tax benefits. If we were to identify and implement tax planning strategies to recover these deferred tax assets or generate sufficient income of the appropriate character in these jurisdictions in the future, it could lead to the reversal of these valuation allowances and a reduction of income tax expense. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheets. | ||||||||||||||||
In 2012, the Company recognized a net decrease of $372 million in its valuation allowances. This decrease was primarily related to the reversal of valuation allowances in several foreign jurisdictions. As a result of considering recent significant positive evidence, including, among other items, a consistent pattern of earnings in the past three years, as well as business plans showing continued profitability, it was determined that a valuation allowance was no longer required for certain deferred tax assets primarily recorded on net operating losses in foreign jurisdictions. This decrease was also partially due to a transfer of a valuation allowance into assets held for sale as required by accounting principles generally accepted in the United States upon execution of the share purchase agreement for the sale of a majority interest in our consolidated Philippine bottling operations. Refer to Note 1 for additional information on the Company's accounting policy related to assets and liabilities held for sale. Refer to Note 2 for additional information on the Company's Philippine bottling operations. In addition, the Company recognized an increase in its valuation allowances primarily due to the addition of a deferred tax asset and related valuation allowance on certain investments accounted for under the equity method of accounting and increases in net operating losses during the normal course of business operations. | ||||||||||||||||
In 2011, the Company recognized a net decrease of $91 million in its valuation allowances. This decrease was primarily related to the utilization of net operating losses during the normal course of business operations; the reversal of a deferred tax asset and related valuation allowance on certain expiring attributes; and the reversal of a deferred tax asset and related valuation allowance on certain equity investments. In addition, the Company recognized an increase in the valuation allowances primarily due to the carryforward of expenses disallowed in the current year and increases in net operating losses during the normal course of business operations. | ||||||||||||||||
In 2010, the Company recognized a net increase of $269 million in its valuation allowances. This increase was primarily related to valuation allowances on various tax loss carryforwards acquired in conjunction with our acquisition of CCE's former North America business. The Company also recognized an increase in the valuation allowances due to the carryforward of expenses disallowed in the current year and changes to deferred tax assets and a related valuation allowance on certain equity method investments. In addition, the Company recognized a reduction in the valuation allowances primarily due to the reversal of a deferred tax asset and related valuation allowance on certain expiring attributes; the reversal of a deferred tax asset and related valuation allowance related to the deconsolidation of certain entities; and the impact of foreign currency fluctuations. |
OTHER_COMPREHENSIVE_INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
OTHER COMPREHENSIVE INCOME [Abstract] | ||||||||||||
OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOME | |||||||||||
AOCI attributable to shareowners of The Coca-Cola Company is separately presented on our consolidated balance sheets as a component of The Coca-Cola Company's shareowners' equity, which also includes our proportionate share of equity method investees' AOCI. Other comprehensive income (loss) ("OCI") attributable to noncontrolling interests is allocated to, and included in, our balance sheets as part of the line item equity attributable to noncontrolling interests. AOCI attributable to shareowners of The Coca-Cola Company consisted of the following (in millions): | ||||||||||||
December 31, | 2012 | 2011 | ||||||||||
As Adjusted | ||||||||||||
Foreign currency translation adjustment | $ | (1,665 | ) | $ | (1,445 | ) | ||||||
Accumulated derivative net gains (losses) | 46 | (53 | ) | |||||||||
Unrealized net gains (losses) on available-for-sale securities | 338 | 160 | ||||||||||
Adjustments to pension and other benefit liabilities | (2,104 | ) | (1,436 | ) | ||||||||
Accumulated other comprehensive income (loss) | $ | (3,385 | ) | $ | (2,774 | ) | ||||||
OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI, for the years ended December 31, 2012, 2011 and 2010, is as follows (in millions): | ||||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | ||||||||||
2012 | ||||||||||||
Net foreign currency translation adjustment | $ | (219 | ) | $ | (1 | ) | $ | (220 | ) | |||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the year | 77 | (29 | ) | 48 | ||||||||
Reclassification adjustments recognized in net income | 82 | (31 | ) | 51 | ||||||||
Net gain (loss) on derivatives1 | 159 | (60 | ) | 99 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the year | 248 | (64 | ) | 184 | ||||||||
Reclassification adjustments recognized in net income | (6 | ) | — | (6 | ) | |||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 242 | (64 | ) | 178 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the year | (1,132 | ) | 405 | (727 | ) | |||||||
Reclassification adjustments recognized in net income | 92 | (33 | ) | 59 | ||||||||
Net change in pension and other benefit liabilities3 | (1,040 | ) | 372 | (668 | ) | |||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (858 | ) | $ | 247 | $ | (611 | ) | ||||
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 13 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | ||||||||||
2011 — As Adjusted | ||||||||||||
Net foreign currency translation adjustment | $ | (639 | ) | $ | (1 | ) | $ | (640 | ) | |||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the year | (3 | ) | (1 | ) | (4 | ) | ||||||
Reclassification adjustments recognized in net income | 243 | (94 | ) | 149 | ||||||||
Net gain (loss) on derivatives1 | 240 | (95 | ) | 145 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the year | (4 | ) | (8 | ) | (12 | ) | ||||||
Reclassification adjustments recognized in net income | 10 | (5 | ) | 5 | ||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 6 | (13 | ) | (7 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the year | (1,206 | ) | 423 | (783 | ) | |||||||
Reclassification adjustments recognized in net income | 31 | (11 | ) | 20 | ||||||||
Net change in pension and other benefit liabilities3 | (1,175 | ) | 412 | (763 | ) | |||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (1,568 | ) | $ | 303 | $ | (1,265 | ) | ||||
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 13 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | ||||||||||
2010 — As Adjusted | ||||||||||||
Net foreign currency translation adjustment | $ | (966 | ) | $ | 31 | $ | (935 | ) | ||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the year | (239 | ) | 108 | (131 | ) | |||||||
Reclassification adjustments recognized in net income | 17 | (6 | ) | 11 | ||||||||
Net gain (loss) on derivatives1 | (222 | ) | 102 | (120 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the year | 115 | (25 | ) | 90 | ||||||||
Reclassification adjustments recognized in net income | 18 | (6 | ) | 12 | ||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 133 | (31 | ) | 102 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the year | 397 | (139 | ) | 258 | ||||||||
Reclassification adjustments recognized in net income | 35 | (11 | ) | 24 | ||||||||
Net change in pension and other benefit liabilities3 | 432 | (150 | ) | 282 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (623 | ) | $ | (48 | ) | $ | (671 | ) | |||
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 13 for additional information related to the Company's pension and other postretirement benefit liabilities. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||||||||||||
Fair Value Measurements Disclosure [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 carrying 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 | ||||||||||||||||||||||||||||||||
The fair values of our futures contracts are primarily determined using quoted contract prices on futures exchange markets. The fair values of these instruments are based on the closing contract price as of the balance sheet date and are classified as Level 1. | ||||||||||||||||||||||||||||||||
The fair values of our derivative instruments other than futures 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 current credit default swap ("CDS") rates 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 tables summarize those assets and liabilities measured at fair value on a recurring basis (in millions): | ||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Trading securities | $ | 146 | $ | 116 | $ | 4 | $ | — | $ | 266 | ||||||||||||||||||||||
Available-for-sale securities | 1,390 | 3,068 | 135 | 2 | — | 4,593 | ||||||||||||||||||||||||||
Derivatives3 | 47 | 583 | — | (116 | ) | 514 | ||||||||||||||||||||||||||
Total assets | $ | 1,583 | $ | 3,767 | $ | 139 | $ | (116 | ) | $ | 5,373 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives3 | $ | 35 | $ | 98 | $ | — | $ | (121 | ) | $ | 12 | |||||||||||||||||||||
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. Refer to Note 5. | |||||||||||||||||||||||||||||||
2 | Primarily related to long-term debt securities that mature in 2018. | |||||||||||||||||||||||||||||||
3 | Refer to Note 5 for additional information related to the composition of our derivative portfolio. | |||||||||||||||||||||||||||||||
December 31, 2011 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Trading securities | $ | 166 | $ | 41 | $ | 4 | $ | — | $ | 211 | ||||||||||||||||||||||
Available-for-sale securities | 1,071 | 214 | 116 | 2 | — | 1,401 | ||||||||||||||||||||||||||
Derivatives3 | 39 | 467 | — | (117 | ) | 389 | ||||||||||||||||||||||||||
Total assets | $ | 1,276 | $ | 722 | $ | 120 | $ | (117 | ) | $ | 2,001 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives3 | $ | 5 | $ | 201 | $ | — | $ | (121 | ) | $ | 85 | |||||||||||||||||||||
Total liabilities | $ | 5 | $ | 201 | $ | — | $ | (121 | ) | $ | 85 | |||||||||||||||||||||
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. Refer to Note 5. | |||||||||||||||||||||||||||||||
2 | Primarily related to long-term debt securities that mature in 2018. | |||||||||||||||||||||||||||||||
3 | 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 years ended December 31, 2012 and 2011. | ||||||||||||||||||||||||||||||||
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 years ended December 31, 2012 and 2011. | ||||||||||||||||||||||||||||||||
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. Assets measured at fair value on a nonrecurring basis for the years ended December 31, 2012 and 2011, are summarized below (in millions): | ||||||||||||||||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||||||||||
Exchange of investment in equity securities | $ | 185 | 1 | $ | 418 | 5 | ||||||||||||||||||||||||||
Assets held for sale | (108 | ) | 2 | — | ||||||||||||||||||||||||||||
Valuation of shares in equity method investee | 10 | 3 | 122 | 6 | ||||||||||||||||||||||||||||
Cost method investments | (16 | ) | 4 | — | ||||||||||||||||||||||||||||
Equity method investments | — | (41 | ) | 7 | ||||||||||||||||||||||||||||
Available-for-sale securities | — | (17 | ) | 8 | ||||||||||||||||||||||||||||
Inventories | — | (11 | ) | 9 | ||||||||||||||||||||||||||||
Cold-drink equipment | — | (1 | ) | 9 | ||||||||||||||||||||||||||||
Total | $ | 71 | $ | 470 | ||||||||||||||||||||||||||||
1 | As a result of the merger of Andina and Polar, the Company recognized a gain of $185 million on the exchange of shares we previously owned in Polar for shares in Andina. This gain primarily represents the difference between the carrying value of the Polar shares we relinquished and the fair value of the Andina shares we received as a result of the transaction. The gain was calculated based on Level 1 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
2 | The Company and Coca-Cola FEMSA executed a share purchase agreement for the sale of a majority ownership interest in our consolidated Philippine bottling operations. As a result of this agreement, the Company was required to classify our Philippine bottling operations as held for sale in our consolidated balance sheet as of December 31, 2012. We also recognized a loss of $108 million during the year ended December 31, 2012, based on the agreed upon sale price and related transaction costs. The loss was calculated based on Level 3 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
3 | The Company recognized a gain of $92 million as a result of Coca-Cola FEMSA, an equity method investee, 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 we sold a proportionate share of our investment in Coca-Cola FEMSA. This gain was partially offset by a loss of $82 million the Company recognized due to the Company acquiring an ownership interest in Mikuni for which we paid a premium over the publicly traded market price. This premium was expensed on the acquisition date. Subsequent to this transaction, the Company accounts for our investment in Mikuni under the equity method of accounting. The gain and loss described above were determined using Level 1 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
4 | The Company recognized impairment charges of $16 million due to other-than-temporary declines in the fair values of certain cost method investments. These charges were determined using Level 3 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
5 | As a result of the merger of Arca and Contal, the Company recognized a gain of $418 million on the exchange of the shares we previously owned in Contal for shares in the newly formed entity Arca Contal. The gain represents the difference between the carrying value of the Contal shares we relinquished and the fair value of the Arca Contal shares we received as a result of the transaction. The gain and initial carrying value of our investment were calculated based on Level 1 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
6 | The Company recognized a net gain of $122 million, primarily as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its own stock at per share amounts 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 we sold a proportionate share of our investment in Coca-Cola FEMSA. The gains the Company recognized as a result of the previous transactions were partially offset by charges associated with certain of the Company's equity method investments in Japan. The gains and charges were determined using Level 1 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
7 | The Company recognized impairment charges of $41 million related to an investment in an entity accounted for under the equity method of accounting. Subsequent to the recognition of these impairment charges, the Company's remaining financial exposure related to this entity is not significant. This charge was determined using Level 3 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
8 | The Company recognized impairment charges of $17 million due to the other-than-temporary decline in the fair values of certain available-for-sale securities. These charges were determined using Level 1 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
9 | These assets primarily consisted of Company-owned inventory as well as cold-drink equipment that were damaged or lost as a result of the natural disasters in Japan on March 11, 2011. We recorded impairment charges of $11 million and $1 million related to Company-owned inventory and cold-drink equipment, respectively. These charges were determined using Level 3 inputs based on the carrying value of the inventory and cold-drink equipment prior to the disasters. Refer to Note 17. | |||||||||||||||||||||||||||||||
Fair Value Measurements for Pension and Other Postretirement Benefit Plans | ||||||||||||||||||||||||||||||||
The fair value hierarchy discussed above is not only applicable to assets and liabilities that are included in our consolidated balance sheets, but is also applied to certain other assets that indirectly impact our consolidated financial statements. For example, our Company sponsors and/or contributes to a number of pension and other postretirement benefit plans. Assets contributed by the Company become the property of the individual plans. Even though the Company no longer has control over these assets, we are indirectly impacted by subsequent fair value adjustments to these assets. The actual return on these assets impacts the Company's future net periodic benefit cost, as well as amounts recognized in our consolidated balance sheets. Refer to Note 13. The Company uses the fair value hierarchy to measure the fair value of assets held by our various pension and other postretirement benefit plans. | ||||||||||||||||||||||||||||||||
Pension Plan Assets | ||||||||||||||||||||||||||||||||
The following table summarizes the levels within the fair value hierarchy used to determine the fair value of our pension plan assets for our U.S. and non-U.S. pension plans as of December 31, 2012 and 2011 (in millions): | ||||||||||||||||||||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 187 | $ | 199 | $ | — | $ | 386 | $ | 152 | $ | 75 | $ | — | $ | 227 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
U.S.-based companies | 1,847 | 20 | 14 | 1,881 | 1,366 | 15 | 14 | 1,395 | ||||||||||||||||||||||||
International-based companies | 910 | 54 | — | 964 | 865 | 82 | 6 | 953 | ||||||||||||||||||||||||
Fixed-income securities: | ||||||||||||||||||||||||||||||||
Government bonds | — | 562 | — | 562 | — | 773 | — | 773 | ||||||||||||||||||||||||
Corporate bonds and debt securities | — | 982 | — | 982 | — | 718 | — | 718 | ||||||||||||||||||||||||
Mutual, pooled and commingled funds | 504 | 1,006 | — | 1,510 | 167 | 557 | 5 | 729 | ||||||||||||||||||||||||
Hedge funds/limited partnerships | — | 125 | 400 | 525 | — | 140 | 349 | 489 | ||||||||||||||||||||||||
Real estate | — | — | 257 | 257 | — | — | 270 | 270 | ||||||||||||||||||||||||
Other | — | 7 | 510 | 1 | 517 | — | 99 | 518 | 1 | 617 | ||||||||||||||||||||||
Total | $ | 3,448 | $ | 2,955 | $ | 1,181 | $ | 7,584 | $ | 2,550 | $ | 2,459 | $ | 1,162 | $ | 6,171 | ||||||||||||||||
1 | Includes $510 million and $514 million of purchased annuity contracts as of December 31, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for our U.S. and non-U.S. pension plans for the years ended December 31, 2012 and 2011 (in millions): | ||||||||||||||||||||||||||||||||
Hedge | Real Estate | Equity | Mutual, | Other | Total | |||||||||||||||||||||||||||
Funds/Limited | Securities | Pooled and | ||||||||||||||||||||||||||||||
Partnerships | Commingled | |||||||||||||||||||||||||||||||
Funds | ||||||||||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 317 | $ | 242 | $ | 15 | $ | 20 | $ | 303 | $ | 897 | ||||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||
Related to assets still held at the reporting date | 9 | 35 | 4 | (5 | ) | 61 | 104 | |||||||||||||||||||||||||
Related to assets sold during the year | (3 | ) | (5 | ) | — | 6 | — | (2 | ) | |||||||||||||||||||||||
Purchases, sales and settlements — net | 26 | (2 | ) | (1 | ) | (16 | ) | 146 | 153 | |||||||||||||||||||||||
Transfers in or out of Level 3 — net | 1 | — | 2 | — | 2 | 5 | ||||||||||||||||||||||||||
Foreign currency translation | (1 | ) | — | — | — | 6 | 5 | |||||||||||||||||||||||||
Balance at end of year | $ | 349 | $ | 270 | $ | 20 | $ | 5 | $ | 518 | 1 | $ | 1,162 | |||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 349 | $ | 270 | $ | 20 | $ | 5 | $ | 518 | $ | 1,162 | ||||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||
Related to assets still held at the reporting date | (8 | ) | 13 | — | — | 1 | 6 | |||||||||||||||||||||||||
Related to assets sold during the year | 24 | 3 | — | — | — | 27 | ||||||||||||||||||||||||||
Purchases, sales and settlements — net | 35 | (27 | ) | — | (5 | ) | (2 | ) | 1 | |||||||||||||||||||||||
Transfers in or out of Level 3 — net | — | (2 | ) | (6 | ) | — | (4 | ) | (12 | ) | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | (3 | ) | (3 | ) | ||||||||||||||||||||||||
Balance at end of year | $ | 400 | $ | 257 | $ | 14 | $ | — | $ | 510 | 1 | $ | 1,181 | |||||||||||||||||||
1 | Includes $510 million and $514 million of purchased annuity contracts as of December 31, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||
Other Postretirement Benefit Plan Assets | ||||||||||||||||||||||||||||||||
The following table summarizes the levels within the fair value hierarchy used to determine the fair value of our other postretirement benefit plan assets as of December 31, 2012 and 2011 (in millions): | ||||||||||||||||||||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 1 | Total | Level 1 | Level 2 | Level 3 1 | Total | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | 12 | $ | — | $ | 13 | $ | — | $ | 86 | $ | — | $ | 86 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
U.S.-based companies | 81 | — | — | 81 | 70 | — | — | 70 | ||||||||||||||||||||||||
International-based companies | 4 | — | — | 4 | 13 | — | — | 13 | ||||||||||||||||||||||||
Fixed-income securities: | ||||||||||||||||||||||||||||||||
Government bonds | 75 | 3 | — | 78 | — | 2 | — | 2 | ||||||||||||||||||||||||
Corporate bonds and debt securities | — | 5 | — | 5 | — | 6 | — | 6 | ||||||||||||||||||||||||
Mutual, pooled and commingled funds | 11 | 5 | — | 16 | — | 3 | — | 3 | ||||||||||||||||||||||||
Hedge funds/limited partnerships | — | 1 | 2 | 3 | — | — | 2 | 2 | ||||||||||||||||||||||||
Real estate | — | — | 2 | 2 | — | — | 2 | 2 | ||||||||||||||||||||||||
Other | — | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||
Total | $ | 172 | $ | 26 | $ | 4 | $ | 202 | $ | 83 | $ | 98 | $ | 4 | $ | 185 | ||||||||||||||||
1 | Level 3 assets are not a significant portion of other postretirement benefit plan assets. | |||||||||||||||||||||||||||||||
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 financial instruments. | ||||||||||||||||||||||||||||||||
The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for those instruments. Where quoted prices are not available, fair value is estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of the debt instruments. 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. As of December 31, 2011, the carrying amount and fair value of our long-term debt, including the current portion, were $15,697 million and $16,360 million, respectively. |
SIGNIFICANT_OPERATING_AND_NONO
SIGNIFICANT OPERATING AND NONOPERATING ITEMS | 12 Months Ended |
Dec. 31, 2012 | |
Significant Operating and Nonoperating Items disclosure [Abstract] | |
SIGNIFICANT OPERATING AND NONOPERATING ITEMS | SIGNIFICANT OPERATING AND NONOPERATING ITEMS |
Other Operating Items | |
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 $13 million during the year ended December 31, 2012. These charges were recorded in the line item cost of goods sold in our consolidated statement of income. | |
On March 11, 2011, a major earthquake struck off the coast of Japan, resulting in a tsunami that devastated the northern and eastern regions of the country. As a result of these events, the Company made a donation to a charitable organization to establish the Coca-Cola Japan Reconstruction Fund, which has helped rebuild schools and community facilities across the impacted areas of the country. The Company recorded total charges of $84 million related to these events during the year ended December 31, 2011, including $23 million in deductions from revenue, $11 million in cost of goods sold and $50 million in other operating charges. The charges of $23 million recorded in deductions from revenue were primarily related to funds we provided our local bottling partners to enable them to continue producing and distributing our beverage products in the affected regions. This support not only helped restore our business operations in the impacted areas, but it also assisted our bottling partners in meeting the evolving customer and consumer needs as the recovery and rebuilding efforts advanced. The charges of $11 million recorded in cost of goods sold were primarily related to Company-owned inventory that was destroyed or lost. The charges of $50 million recorded in other operating charges were primarily related to the donation discussed above and included an impairment charge of $1 million related to certain Company-owned fixed assets. These fixed assets primarily consisted of Company-owned vending equipment and coolers that were damaged or lost as a result of these events. Refer to Note 16 for the fair value disclosures related to the inventory and fixed asset charges described above. Refer to Note 19 for the impact these charges had on our operating segments. | |
Other Operating Charges | |
In 2012, the Company incurred other operating charges of $447 million, which primarily consisted of $270 million associated with the Company's productivity and reinvestment program; $163 million related 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 $8 million due to costs associated with the Company detecting carbendazim in orange juice imported from Brazil for distribution in the United States as described above. These charges were partially offset by reversals of $10 million associated with the refinement of previously established accruals related to the Company's 2008–2011 productivity initiatives as well as reversals of $6 million associated with the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Refer to Note 18 for additional information on our productivity and reinvestment program as well as the Company's other productivity, integration and restructuring initiatives. Refer to Note 19 for the impact these charges had on our operating segments. | |
In 2011, the Company incurred other operating charges of $732 million, which primarily consisted of $633 million associated with the Company's productivity, integration and restructuring initiatives; $50 million related to the events in Japan described above; $35 million of costs associated with the merger of Arca and Contal; and $10 million associated with the floods in Thailand that impacted the Company's supply chain operations in the region. Refer to Note 18 for additional information on our productivity, integration and restructuring initiatives. Refer to the discussion of the merger of Arca and Contal below for additional information on the transaction. Refer to Note 19 for the impact these charges had on our operating segments. | |
In 2010, the Company incurred other operating charges of $819 million, which consisted of $478 million related to the Company's productivity, integration and restructuring initiatives; $250 million related to charitable contributions; $81 million due to transaction costs incurred in connection with our acquisition of CCE's former North America business and the sale of our Norwegian and Swedish bottling operations to New CCE; and $10 million of charges related to bottling activities in Eurasia. Refer to Note 18 for additional information on our productivity, integration and restructuring initiatives. The charitable contributions were primarily attributable to a cash donation to The Coca-Cola Foundation. Refer to Note 2 for additional information related to the transaction costs. Refer to Note 19 for the impact these charges had on our operating segments. | |
Other Nonoperating Items | |
Equity Income (Loss) — Net | |
The Company recorded a net gain of $8 million and net charges of $53 million and $66 million in equity income (loss) — net during the years ended December 31, 2012, 2011 and 2010, respectively. These amounts primarily represent the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. | |
In 2012, the Company also recorded a charge of $11 million related 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 primarily on Europe and Canada. The Company accounts for our investment in BPW under the equity method of accounting. | |
Refer to Note 19 for the impact these items had on our operating segments. | |
Other Income (Loss) — Net | |
In 2012, the Company recognized a gain of $185 million as a result of the merger of Andina and Polar, with Andina being the acquiring company. Prior to this transaction, the Company held an investment in Andina that we accounted for as an available-for-sale security as well as an investment in Polar that we accounted for under the equity method of accounting. The merger of the two companies was a noncash transaction that resulted in Polar shareholders exchanging their existing Polar shares for newly issued shares of Andina at a specified exchange rate. As a result, the Company now holds an investment in Andina that we account for as an equity method investment. This gain impacted the Corporate operating segment. Refer to Note 19. Refer to Note 16 for additional information on the measurement of the gain. | |
On December 13, 2012, the Company and Coca-Cola FEMSA executed a share purchase agreement for the sale of a majority ownership interest in our consolidated Philippine bottling operations. As a result of this agreement, the Company was required to classify our Philippine bottling operations as held for sale in our consolidated balance sheet as of December 31, 2012. We also recognized a loss of $108 million during the year ended December 31, 2012, based on the agreed-upon sale price and related transaction costs. This loss impacted the Corporate operating segment. Refer to Note 19. | |
The Company also recognized a gain of $92 million 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 investment. Accordingly, the Company is required to treat this type of transaction as if we sold a proportionate share of our investment in Coca-Cola FEMSA. This gain impacted the Corporate operating segment. Refer to Note 19. Refer to Note 16 for additional information on the measurement of the gain. | |
During the year ended December 31, 2012, the Company recorded a charge of $82 million due to the acquisition of an ownership interest in Mikuni for which we paid a premium over the publicly traded market price. Although the Company paid this premium to obtain specific rights that have an economic and strategic value to the Company, they do not qualify as an asset and were recorded as expense on the acquisition date. This charge impacted the Corporate operating segment. Refer to Note 19. The Company accounts for our investment in Mikuni under the equity method of accounting. | |
The Company also recognized charges of $16 million during the year ended December 31, 2012, due to other-than-temporary declines in the fair values of certain cost method investments. These charges impacted the Corporate operating segment. Refer to Note 19. | |
In 2011, the Company recognized a net gain of $417 million, primarily as a result of the merger of Arca and Contal, two bottling partners headquartered in Mexico, into a combined entity known as Arca Contal. Prior to this transaction the Company held an investment in Contal that we accounted for under the equity method of accounting. The merger of the two companies was a noncash transaction that resulted in Contal shareholders exchanging their existing Contal shares for new shares in Arca Contal at a specified exchange rate. Refer to Note 16 for additional information on the measurement of the gain. As a result, the Company now holds an investment in Arca Contal that we account for as an available-for-sale security. This net gain impacted the Corporate operating segment. Refer to Note 19. | |
The Company also recognized a net gain of $122 million during 2011, primarily as a result of Coca-Cola FEMSA issuing additional shares of its own stock at per share amounts 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 we sold a proportionate share of our investment in Coca-Cola FEMSA. The gains the Company recognized as a result of the previous transactions were partially offset by charges associated with certain of the Company's equity method investments in Japan. In addition, the Company recognized a gain of $102 million during 2011 related to the sale of our investment in Embonor. Refer to Note 2 for additional information. Refer to Note 19 for the impact these items had on our operating segments. | |
During 2011, the Company recorded charges of $41 million due to the impairment of an investment in an entity accounted for under the equity method of accounting and $17 million due to other-than-temporary declines in the fair value of certain of the Company's available-for-sale securities. Refer to Note 16 for additional fair value information related to these impairments. The Company also recorded a charge of $5 million related to the finalization of working capital adjustments associated with the sale of our Norwegian and Swedish Bottling operations to New CCE during the fourth quarter of 2010. This charge reduced the amount of our previously reported gain on the sale of these bottling operations. Refer to Note 19 for the impact these charges had on our operating segments. | |
In 2010, the Company recognized gains of $4,978 million related to the remeasurement of our equity investment in CCE to fair value; $597 million due to the sale of all our ownership interests in our Norwegian and Swedish bottling operations to New CCE; and $23 million as a result of the sale of 50 percent of our investment in Leão Junior, which was a wholly owned subsidiary of the Company prior to this transaction. Refer to Note 2 for additional information related to our acquisition of CCE's former North America business and the sale of all our ownership interests in our Norwegian and Swedish bottling operations to New CCE. The gain on the Leão Junior transaction consisted of two parts: (1) the difference between the consideration received and 50 percent of the carrying value of our investment and (2) the fair value adjustment for our remaining 50 percent ownership. We have accounted for our remaining investment in Leão Junior under the equity method of accounting since the close of this transaction. The gains related to these transactions impacted our Corporate operating segment. Refer to Note 19. | |
During 2010, in addition to the transaction gains, the Company recorded charges of $265 million related to preexisting relationships with CCE and $103 million due to the remeasurement of our Venezuelan subsidiary's net assets. The charges related to preexisting relationships with CCE were primarily due to the write-off of our investment in infrastructure programs with CCE. Refer to Note 6 for additional information related to our preexisting relationships with CCE. The remeasurement loss related to our Venezuelan subsidiary's net assets was due to the Venezuelan government announcing a currency devaluation and Venezuela becoming a hyperinflationary economy subsequent to December 31, 2009. As a result, our local subsidiary was required to use the U.S. dollar as its functional currency, and the remeasurement gains and losses were recorded in other income (loss) — net. This charge impacted the Corporate operating segment. Refer to Note 19. | |
Also during 2010, the Company recorded charges of $48 million related to other-than-temporary impairments of available-for-sale securities and an equity method investment and a donation of preferred shares in one of our equity method investees. Refer to Note 19 for the impact these charges had on our operating segments. |
PRODUCTIVITY_INTEGRATION_AND_R
PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Productivity, Integration and Restructuring Initiatives Disclosure [Text Block] | PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES | |||||||||||||||
Productivity and Reinvestment | ||||||||||||||||
In February 2012, the Company announced a four-year productivity and reinvestment program which will further enable our efforts to strengthen our brands and reinvest our resources to drive long-term profitable growth. This program will be 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. | ||||||||||||||||
The Company incurred total pretax expenses of $270 million related to this program during the year ended December 31, 2012. These expenses were recorded in the line item other operating charges in our consolidated statement of income. Refer to Note 19 for the impact these charges had on our operating segments. Outside services reported in the table below primarily relate to expenses in connection with legal, outplacement and consulting activities. Other direct costs reported in the table 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 since the commencement of the plan (in millions): | ||||||||||||||||
Severance Pay | Outside Services | Other | Total | |||||||||||||
and Benefits | Direct Costs | |||||||||||||||
2012 | ||||||||||||||||
Costs incurred | $ | 21 | $ | 61 | $ | 188 | $ | 270 | ||||||||
Payments | (8 | ) | (55 | ) | (167 | ) | (230 | ) | ||||||||
Noncash and exchange | (1 | ) | — | (13 | ) | (14 | ) | |||||||||
Accrued balance as of December 31 | $ | 12 | $ | 6 | $ | 8 | $ | 26 | ||||||||
Productivity Initiatives | ||||||||||||||||
During 2008, the Company announced a transformation effort centered on productivity initiatives to provide additional flexibility to invest for growth. The initiatives impacted a number of areas, including aggressively managing operating expenses supported by lean techniques; redesigning key processes to drive standardization and effectiveness; better leveraging our size and scale; and driving savings in indirect costs through the implementation of a "procure-to-pay" program. | ||||||||||||||||
In 2011, we completed this program. The Company has incurred total pretax expenses of $498 million related to these productivity initiatives since they commenced in the first quarter of 2008. These expenses were recorded in the line item other operating charges in our consolidated statements of income. Refer to Note 19 for the impact these charges had on our operating segments. Outside services reported in the table below primarily relate to expenses in connection with legal, outplacement and consulting activities. Other direct costs reported in the table below include, among other items, internal and external costs associated with the development, communication, administration and implementation of these initiatives and accelerated depreciation on certain fixed assets. | ||||||||||||||||
The following table summarizes the balance of accrued expenses related to productivity initiatives and the changes in the accrued amounts (in millions): | ||||||||||||||||
Severance Pay | Outside Services | Other | Total | |||||||||||||
and Benefits | Direct Costs | |||||||||||||||
2010 | ||||||||||||||||
Accrued balance as of January 1 | $ | 18 | $ | 9 | $ | 4 | $ | 31 | ||||||||
Costs incurred | 71 | 58 | 61 | 190 | ||||||||||||
Payments | (30 | ) | (61 | ) | (54 | ) | (145 | ) | ||||||||
Noncash and exchange | — | — | (2 | ) | (2 | ) | ||||||||||
Accrued balance as of December 31 | $ | 59 | $ | 6 | $ | 9 | $ | 74 | ||||||||
2011 | ||||||||||||||||
Costs incurred | $ | 59 | $ | 17 | $ | 80 | $ | 156 | ||||||||
Payments | (50 | ) | (21 | ) | (71 | ) | (142 | ) | ||||||||
Noncash and exchange | (20 | ) | 1 | (9 | ) | (28 | ) | |||||||||
Accrued balance as of December 31 | $ | 48 | $ | 3 | $ | 9 | $ | 60 | ||||||||
2012 | ||||||||||||||||
Costs incurred | $ | (8 | ) | $ | — | $ | (2 | ) | $ | (10 | ) | |||||
Payments | (29 | ) | (2 | ) | (3 | ) | (34 | ) | ||||||||
Noncash and exchange | (2 | ) | — | (3 | ) | (5 | ) | |||||||||
Accrued balance as of December 31 | $ | 9 | $ | 1 | $ | 1 | $ | 11 | ||||||||
Integration Initiatives | ||||||||||||||||
Integration of CCE's former North America Business | ||||||||||||||||
In 2010, we acquired CCE's former North America business and began an integration initiative to develop, design and implement our future operating framework. Upon completion of the CCE transaction, we combined the management of the acquired North America business with the management of our existing foodservice business; Minute Maid and Odwalla juice businesses; North America supply chain operations; and Company-owned bottling operations in Philadelphia, Pennsylvania, into a unified bottling and customer service organization called Coca-Cola Refreshments, or CCR. In addition, we reshaped our remaining CCNA operations into an organization that primarily provides franchise leadership and consumer marketing and innovation for the North American market. As a result of the transaction and related reorganization, our North American businesses operate as aligned and agile organizations with distinct capabilities, responsibilities and strengths. | ||||||||||||||||
In 2011, we completed this program. The Company has incurred total pretax expenses of $487 million related to this initiative since the plan commenced in the fourth quarter of 2010. These expenses were recorded in the line item other operating charges in our consolidated statements of income. Refer to Note 19 for the impact these charges had on our operating segments. Outside services reported in the table below primarily relate to expenses in connection with legal, outplacement and consulting activities. Other direct costs reported in the table below include, among other items, internal and external costs associated with the development, design and implementation of our future operating framework; contract termination fees; and relocation costs. | ||||||||||||||||
The following table summarizes the balance of accrued expenses related to these integration initiatives and the changes in the accrued amounts since the commencement of the plan (in millions): | ||||||||||||||||
Severance Pay | Outside Services | Other | Total | |||||||||||||
and Benefits | Direct Costs | |||||||||||||||
2010 | ||||||||||||||||
Costs incurred | $ | 45 | $ | 42 | $ | 48 | $ | 135 | ||||||||
Payments | (1 | ) | (33 | ) | (34 | ) | (68 | ) | ||||||||
Noncash and exchange | 4 | — | (2 | ) | 2 | |||||||||||
Accrued balance as of December 31 | $ | 48 | $ | 9 | $ | 12 | $ | 69 | ||||||||
2011 | ||||||||||||||||
Costs incurred | $ | 40 | $ | 91 | $ | 227 | $ | 358 | ||||||||
Payments | (40 | ) | (89 | ) | (210 | ) | (339 | ) | ||||||||
Noncash and exchange | — | — | 3 | 3 | ||||||||||||
Accrued balance as of December 31 | $ | 48 | $ | 11 | $ | 32 | $ | 91 | ||||||||
2012 | ||||||||||||||||
Costs incurred | $ | (6 | ) | $ | — | $ | — | $ | (6 | ) | ||||||
Payments | (41 | ) | (13 | ) | (26 | ) | (80 | ) | ||||||||
Noncash and exchange | — | 2 | (4 | ) | (2 | ) | ||||||||||
Accrued balance as of December 31 | $ | 1 | $ | — | $ | 2 | $ | 3 | ||||||||
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 $148 million, $67 million and $94 million of expenses related to this initiative in 2012, 2011 and 2010, respectively, and has incurred total pretax expenses of $440 million related to this initiative since it commenced. These expenses were recorded in the line item other operating charges in our consolidated statements of income and impacted the Bottling Investments operating segment. The expenses recorded in connection with these integration activities have been primarily due to involuntary terminations. The Company had $96 million and $30 million accrued related to these integration costs as of December 31, 2012 and 2011, 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 December 31, 2012, the Company had not finalized any additional plans. | ||||||||||||||||
Restructuring Initiatives | ||||||||||||||||
The Company incurred charges of $15 million, $52 million and $59 million related to other restructuring initiatives during 2012, 2011 and 2010, respectively. These other restructuring initiatives were outside the scope of the productivity, integration and streamlining initiatives discussed above and were related to individually insignificant activities throughout many of our business units. These charges were recorded in the line item other operating charges in our consolidated statements of income. Refer to Note 19 for the impact these charges had on our operating segments. |
OPERATING_SEGMENTS
OPERATING SEGMENTS | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||
Operations, Reportable Information, by Operating Segment | ||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | OPERATING SEGMENTS | |||||||||||||||||||||||||||||||||||
As of December 31, 2012, our organizational structure consisted of the following operating segments: Eurasia and Africa; Europe; Latin America; North America; Pacific; Bottling Investments; and Corporate. 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 segment information presented herein has been revised to reflect this change in our organizational structure. | ||||||||||||||||||||||||||||||||||||
Segment Products and Services | ||||||||||||||||||||||||||||||||||||
The business of our Company is nonalcoholic beverages. Our geographic operating segments (Eurasia and Africa; Europe; Latin America; North America; and Pacific) derive a majority of their revenues from the manufacture and sale of beverage concentrates and syrups and, in some cases, the sale of finished beverages. Our Bottling Investments operating segment is comprised of our Company-owned or consolidated bottling operations, regardless of the geographic location of the bottler, except for bottling operations managed by CCR, which are included in our North America operating segment, and equity income from the majority of our equity method investments. Company-owned or consolidated bottling operations derive the majority of their revenues from the sale of finished beverages. Subsequent to our acquisition of CCE's former North America business on October 2, 2010, our North America operating segment began to derive the majority of its net operating revenues from the sale of finished beverages. Refer to Note 2. Generally, bottling and finished product operations produce higher net revenues but lower gross profit margins compared to concentrate and syrup operations. | ||||||||||||||||||||||||||||||||||||
The following table sets forth the percentage of total net operating revenues related to concentrate operations and finished product operations: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
Concentrate operations1 | 38 | % | 39 | % | 51 | % | ||||||||||||||||||||||||||||||
Finished product operations2,3 | 62 | 61 | 49 | |||||||||||||||||||||||||||||||||
Net operating revenues | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||
1 | Includes concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell the fountain syrups to wholesalers or directly to fountain retailers. | |||||||||||||||||||||||||||||||||||
2 | Includes fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers. | |||||||||||||||||||||||||||||||||||
3 | Includes net operating revenues related to our acquisition of CCE's former North America business for the full year in 2012 and 2011. In 2010, the percentage includes net operating revenues from the date of the CCE acquisition on October 2, 2010. | |||||||||||||||||||||||||||||||||||
Method of Determining Segment Income or Loss | ||||||||||||||||||||||||||||||||||||
Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting financial performance. Our Company manages income taxes and certain treasury-related items, such as interest income and expense, on a global basis within the Corporate operating segment. We evaluate segment performance based on income or loss before income taxes. | ||||||||||||||||||||||||||||||||||||
Geographic Data | ||||||||||||||||||||||||||||||||||||
The following table provides information related to our net operating revenues (in millions): | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
United States | $ | 19,732 | $ | 18,699 | $ | 10,629 | ||||||||||||||||||||||||||||||
International | 28,285 | 27,843 | 24,490 | |||||||||||||||||||||||||||||||||
Net operating revenues | $ | 48,017 | $ | 46,542 | $ | 35,119 | ||||||||||||||||||||||||||||||
The following table provides information related to our property, plant and equipment — net (in millions): | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
United States | $ | 8,509 | $ | 8,043 | $ | 8,251 | ||||||||||||||||||||||||||||||
International | 5,967 | 6,896 | 6,476 | |||||||||||||||||||||||||||||||||
Property, plant and equipment — net | $ | 14,476 | $ | 14,939 | $ | 14,727 | ||||||||||||||||||||||||||||||
Information about our Company's operations by operating segment for the years ended December 31, 2012, 2011 and 2010, is as follows (in millions): | ||||||||||||||||||||||||||||||||||||
Eurasia & | Europe | Latin | North | Pacific | Bottling | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||
Africa | America | America | Investments | |||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||||||||||
Third party | $ | 2,697 | $ | 4,481 | $ | 4,560 | $ | 21,665 | $ | 5,680 | $ | 8,807 | $ | 127 | $ | — | $ | 48,017 | ||||||||||||||||||
Intersegment | — | 642 | 271 | 15 | 628 | 88 | — | (1,644 | ) | — | ||||||||||||||||||||||||||
Total net revenues | 2,697 | 5,123 | 4,831 | 21,680 | 6,308 | 8,895 | 127 | (1,644 | ) | 48,017 | ||||||||||||||||||||||||||
Operating income (loss) | 1,078 | 2,960 | 2,879 | 2,597 | 2,516 | 140 | (1,391 | ) | — | 10,779 | ||||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | 471 | — | 471 | |||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | 397 | — | 397 | |||||||||||||||||||||||||||
Depreciation and amortization | 33 | 100 | 70 | 1,083 | 119 | 406 | 171 | — | 1,982 | |||||||||||||||||||||||||||
Equity income (loss) — net | 20 | 45 | 4 | 13 | 2 | 732 | 3 | — | 819 | |||||||||||||||||||||||||||
Income (loss) before income taxes | 1,101 | 3,015 | 2,882 | 2,624 | 2,523 | 904 | (1,240 | ) | — | 11,809 | ||||||||||||||||||||||||||
Identifiable operating assets1 | 1,299 | 2,976 | 2 | 2,759 | 34,114 | 2,163 | 9,648 | 2 | 22,767 | — | 75,726 | |||||||||||||||||||||||||
Investments3 | 1,155 | 271 | 539 | 39 | 127 | 8,253 | 64 | — | 10,448 | |||||||||||||||||||||||||||
Capital expenditures | 51 | 30 | 88 | 1,447 | 107 | 867 | 190 | — | 2,780 | |||||||||||||||||||||||||||
2011 — As Adjusted | ||||||||||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||||||||||
Third party | $ | 2,590 | $ | 4,777 | $ | 4,403 | $ | 20,559 | $ | 5,553 | $ | 8,501 | $ | 159 | $ | — | $ | 46,542 | ||||||||||||||||||
Intersegment | — | 697 | 287 | 12 | 536 | 90 | — | (1,622 | ) | — | ||||||||||||||||||||||||||
Total net revenues | 2,590 | 5,474 | 4,690 | 20,571 | 6,089 | 8,591 | 159 | (1,622 | ) | 46,542 | ||||||||||||||||||||||||||
Operating income (loss) | 1,003 | 3,090 | 2,815 | 2,319 | 2,239 | 224 | (1,517 | ) | — | 10,173 | ||||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | 483 | — | 483 | |||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | 417 | — | 417 | |||||||||||||||||||||||||||
Depreciation and amortization | 30 | 109 | 63 | 1,065 | 115 | 403 | 169 | — | 1,954 | |||||||||||||||||||||||||||
Equity income (loss) — net | (3 | ) | 33 | 20 | 6 | 1 | 646 | (13 | ) | — | 690 | |||||||||||||||||||||||||
Income (loss) before income taxes | 1,001 | 3,134 | 2,832 | 2,327 | 2,242 | 897 | (975 | ) | — | 11,458 | ||||||||||||||||||||||||||
Identifiable operating assets1 | 1,160 | 3,204 | 2 | 2,446 | 33,422 | 2,170 | 8,905 | 2 | 20,293 | — | 71,600 | |||||||||||||||||||||||||
Investments3 | 284 | 243 | 475 | 26 | 133 | 7,140 | 73 | — | 8,374 | |||||||||||||||||||||||||||
Capital expenditures | 50 | 38 | 105 | 1,364 | 128 | 1,039 | 196 | — | 2,920 | |||||||||||||||||||||||||||
2010 — As Adjusted | ||||||||||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||||||||||
Third party | $ | 2,330 | $ | 4,424 | $ | 3,880 | $ | 11,140 | $ | 5,037 | $ | 8,216 | $ | 92 | $ | — | $ | 35,119 | ||||||||||||||||||
Intersegment | 2 | 825 | 241 | 65 | 458 | 97 | — | (1,688 | ) | — | ||||||||||||||||||||||||||
Total net revenues | 2,332 | 5,249 | 4,121 | 11,205 | 5,495 | 8,313 | 92 | (1,688 | ) | 35,119 | ||||||||||||||||||||||||||
Operating income (loss) | 914 | 2,976 | 2,405 | 1,520 | 2,114 | 227 | (1,743 | ) | — | 8,413 | ||||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | 317 | — | 317 | |||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | 733 | — | 733 | |||||||||||||||||||||||||||
Depreciation and amortization | 25 | 106 | 54 | 575 | 107 | 430 | 146 | — | 1,443 | |||||||||||||||||||||||||||
Equity income (loss) — net | 18 | 33 | 24 | (4 | ) | 1 | 971 | (18 | ) | — | 1,025 | |||||||||||||||||||||||||
Income (loss) before income taxes | 933 | 3,020 | 2,426 | 1,523 | 2,116 | 1,205 | 2,984 | — | 14,207 | |||||||||||||||||||||||||||
Identifiable operating assets1 | 1,192 | 2,724 | 2 | 2,298 | 32,793 | 1,913 | 8,398 | 2 | 16,018 | — | 65,336 | |||||||||||||||||||||||||
Investments3 | 291 | 243 | 379 | 57 | 123 | 6,426 | 66 | — | 7,585 | |||||||||||||||||||||||||||
Capital expenditures | 57 | 33 | 94 | 711 | 103 | 942 | 275 | — | 2,215 | |||||||||||||||||||||||||||
1 | Principally cash and cash equivalents, short-term investments, marketable securities, trade accounts receivable, inventories, goodwill, trademarks and other intangible assets and property, plant and equipment — net. | |||||||||||||||||||||||||||||||||||
2 | Property, plant and equipment — net in Germany represented approximately 10 percent of consolidated property, plant and equipment — net in 2012, 10 percent in 2011 and 10 percent in 2010. | |||||||||||||||||||||||||||||||||||
3 | Principally equity method investments, available-for-sale securities and nonmarketable investments in bottling companies. | |||||||||||||||||||||||||||||||||||
In 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 $1 million for Europe, $227 million for North America, $3 million for Pacific, $164 million for Bottling Investments and $38 million for Corporate due to charges related to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 18. | |||||||||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were increased by $4 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. Refer to Note 18. | |||||||||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were increased by $6 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 18. | |||||||||||||||||||||||||||||||||||
• | 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. As a result, the Company began purchasing additional supplies of Florida orange juice at a higher cost than Brazilian orange juice. Refer to Note 17. | |||||||||||||||||||||||||||||||||||
• | 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 17. | |||||||||||||||||||||||||||||||||||
• | Equity income (loss) — net and income (loss) before income taxes were increased by $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 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $185 million for Corporate due to the gain the Company recognized as a result of the merger of Andina and Polar. Refer to Note 16 and Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $108 million for Corporate due to the loss the Company recognized on the pending sale of a majority ownership interest in our Philippine bottling operations to Coca-Cola FEMSA which closed in January 2013. As of December 31, 2012, the assets and liabilities associated with our Philippine bottling operations were classified as held for sale in our consolidated balance sheets. Refer to Note 16 and Note 17. | |||||||||||||||||||||||||||||||||||
• | 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 amount of the Company's per share investment. Refer to Note 16 and Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $82 million for Corporate due to the Company acquiring an ownership interest in Mikuni for which we paid a premium over the publicly traded market price. This premium was expensed on the acquisition date. Subsequent to this transaction, the Company accounts for our investment in Mikuni under the equity method of accounting. Refer to Note 16 and Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $16 million for Corporate due to other-than-temporary declines in the fair values of certain cost method investments. Refer to Note 16 and Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $1 million for Eurasia and Africa, $4 million for Europe, $2 million for Latin America and $4 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 17. | |||||||||||||||||||||||||||||||||||
In 2011, the results of our operating segments were impacted by the following items: | ||||||||||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $12 million for Eurasia and Africa, $25 million for Europe, $4 million for Latin America, $374 million for North America, $4 million for Pacific, $89 million for Bottling Investments and $164 million for Corporate, primarily due to the Company's ongoing productivity, integration and restructuring initiatives as well as costs associated with the merger of Arca and Contal. Refer to Note 18 for additional information on our productivity, integration and restructuring initiatives. Refer to Note 17 for additional information related to the merger of Arca and Contal. | |||||||||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $82 million for Pacific and $2 million for North America due to charges associated with the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011. Refer to Note 17. | |||||||||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $10 million for Corporate due to charges associated with the floods in Thailand that impacted the Company's supply chain operations in the region. Refer to Note 17. | |||||||||||||||||||||||||||||||||||
• | Equity income (loss) — net and income (loss) before income taxes were reduced by $53 million for Bottling Investments, primarily attributable to the Company's proportionate share of asset impairments and restructuring charges recorded by certain of our equity method investees. Refer to Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by a net $417 million for Corporate, primarily due to the gain the Company recognized as a result of the merger of Arca and Contal. Refer to Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by a net $122 million for Corporate, primarily due to gains the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the year at per share amounts greater than the carrying value of the Company's per share investment. These gains were partially offset by charges associated with certain of the Company's equity method investments in Japan. Refer to Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $102 million for Corporate, primarily due to the gain on the sale of our investment in Embonor, a bottling partner with operations primarily in Chile. Prior to this transaction, the Company accounted for our investment in Embonor under the equity method of accounting. Refer to Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $41 million for Corporate due to the impairment of an investment in an entity accounted for under the equity method of accounting. Refer to Note 16 and Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $17 million for Corporate due to other-than-temporary impairments of certain available-for-sale securities. Refer to Note 16 and Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $9 million for Corporate due to the net charge we recognized on the repurchase and/or exchange of certain long-term debt assumed in connection with our acquisition of CCE's former North America business as well as the early extinguishment of certain other long-term debt. Refer to Note 10. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $5 million for Corporate due to the finalization of working capital adjustments related to the sale of our Norwegian and Swedish bottling operations to New CCE. Refer to Note 2 and Note 17. | |||||||||||||||||||||||||||||||||||
In 2010, the results of our operating segments were impacted by the following items: | ||||||||||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Eurasia and Africa, $50 million for Europe, $133 million for North America, $22 million for Pacific, $122 million for Bottling Investments and $485 million for Corporate, primarily due to the Company's ongoing productivity, integration and restructuring initiatives; charitable donations; transaction costs incurred in connection with our acquisition of CCE's former North America business and the sale of our Norwegian and Swedish bottling operations to New CCE; and other charges related to bottling activities in Eurasia. Refer to Note 17. | |||||||||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $74 million for North America due to the acceleration of expense associated with certain share-based replacement awards issued in connection with our acquisition of CCE's former North America business. Refer to Note 12. | |||||||||||||||||||||||||||||||||||
• | Equity income (loss) — net and income (loss) before income taxes were reduced by $66 million for Bottling Investments. This net charge was primarily attributable to the Company's proportionate share of unusual tax charges, asset impairments, restructuring charges and transaction costs recorded by equity method investees, which were partially offset by our proportionate share of a foreign currency remeasurement gain recorded by an equity method investee. The components of the net charge were individually insignificant. Refer to Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $23 million for Bottling Investments and $25 million for Corporate due to other-than-temporary impairments and a donation of preferred shares in one of our equity method investees. Refer to Note 17. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $4,978 million for Corporate due to the remeasurement of our equity investment in CCE to fair value upon the close of the transaction. Refer to Note 2. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $597 million for Corporate due to the gain on the sale of our Norwegian and Swedish bottling operations to New CCE. Refer to Note 2. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $342 million for Corporate related to the premiums paid to repurchase the long-term debt and the costs associated with the settlement of treasury rate locks issued in connection with the debt tender offer. Refer to Note 10. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $265 million for Corporate due to charges related to preexisting relationships with CCE. These charges primarily related to the write-off of our investment in infrastructure programs with CCE. Refer to Note 2. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $103 million for Corporate due to the remeasurement of our Venezuelan subsidiary's net assets. Refer to Note 1. | |||||||||||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $23 million for Corporate due to the gain on the sale of 50 percent of our investment in Leão Junior. Refer to Note 17. |
NET_CHANGE_IN_OPERATING_ASSETS
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
NET CHANGE IN OPERATING ASSETS AND LIABILITIES DISCLOSURE [Abstract] | ||||||||||||
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | NET CHANGE IN OPERATING ASSETS AND LIABILITIES | |||||||||||
Net cash provided by (used in) operating activities attributable to the net change in operating assets and liabilities is composed of the following (in millions): | ||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||
(Increase) decrease in trade accounts receivable | $ | (33 | ) | $ | (562 | ) | $ | (41 | ) | |||
(Increase) decrease in inventories | (286 | ) | (447 | ) | 182 | |||||||
(Increase) decrease in prepaid expenses and other assets | (29 | ) | (350 | ) | (148 | ) | ||||||
Increase (decrease) in accounts payable and accrued expenses | (556 | ) | 63 | 656 | ||||||||
Increase (decrease) in accrued taxes | 770 | (132 | ) | (266 | ) | |||||||
Increase (decrease) in other liabilities | (946 | ) | (465 | ) | (13 | ) | ||||||
Net change in operating assets and liabilities | $ | (1,080 | ) | $ | (1,893 | ) | $ | 370 | ||||
BUSINESS_AND_SUMMARY_OF_SIGNIF1
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||
Our Company consolidates all entities that we control by ownership of a majority voting interest as well as VIEs for which our Company is the primary beneficiary. Generally, we consolidate only business enterprises that we control by ownership of a majority voting interest. However, there are situations in which consolidation is required even though the usual condition of consolidation (ownership of a majority voting interest) does not apply. Generally, this occurs when an entity holds an interest in another business enterprise that was achieved through arrangements that do not involve voting interests, which results in a disproportionate relationship between such entity's voting interests in, and its exposure to the economic risks and potential rewards of, the other business enterprise. This disproportionate relationship results in what is known as a variable interest, and the entity in which we have the variable interest is referred to as a "VIE." An enterprise must consolidate a VIE if it is determined to be the primary beneficiary of the VIE. The primary beneficiary has both (a) the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and (b) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||||||||||||
Our Company holds interests in certain VIEs, primarily bottling and container manufacturing operations, for which we were not determined to be the primary beneficiary. Our variable interests in these VIEs primarily relate to profit guarantees or subordinated financial support. Refer to Note 11. Although these financial arrangements resulted in us holding variable interests in these entities, they did not empower us to direct the activities of the VIEs that most significantly impact the VIEs' economic performance. Our Company's investments, plus any loans and guarantees, related to these VIEs totaled $1,776 million and $1,183 million as of December 31, 2012 and 2011, respectively, representing our maximum exposures to loss. The Company's investments, plus any loans and guarantees, related to these VIEs were not significant to the Company's consolidated financial statements. | ||||||||||||
In addition, our Company holds interests in certain VIEs, primarily bottling and container manufacturing operations, for which we were determined to be the primary beneficiary. As a result, we have consolidated these entities. Our Company's investments, plus any loans and guarantees, related to these VIEs totaled $234 million and $199 million as of December 31, 2012 and 2011, respectively, representing our maximum exposures to loss. The assets and liabilities of VIEs for which we are the primary beneficiary were not significant to the Company's consolidated financial statements. | ||||||||||||
Creditors of our VIEs do not have recourse against the general credit of the Company, regardless of whether they are accounted for as consolidated entities. | ||||||||||||
Revenue Recognition | Revenue Recognition | |||||||||||
Our Company recognizes revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price charged is fixed or determinable, and collectibility is reasonably assured. For our Company, this generally means that we recognize revenue when title to our products is transferred to our bottling partners, resellers or other customers. In particular, title usually transfers upon shipment to or receipt at our customers' locations, as determined by the specific sales terms of the transactions. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part. | ||||||||||||
Deductions from Revenue | Deductions from Revenue | |||||||||||
Our customers can earn certain incentives including, but not limited to, cash discounts, funds for promotional and marketing activities, volume-based incentive programs and support for infrastructure programs. The costs associated with these incentives are included in deductions from revenue, a component of net operating revenues in our consolidated statements of income. For customer incentives that must be earned, management must make estimates related to the contractual terms, customer performance and sales volume to determine the total amounts earned and to be recorded in deductions from revenue. In making these estimates, management considers past results. The actual amounts ultimately paid may be different from our estimates. | ||||||||||||
In some situations, the Company may determine it to be advantageous to make advance payments to specific customers to fund certain marketing activities intended to generate profitable volume and/or invest in infrastructure programs with our bottlers that are directed at strengthening our bottling system and increasing unit case volume. The Company also makes advance payments to certain customers for distribution rights. The advance payments made to customers are initially capitalized and included in our consolidated balance sheets in prepaid expenses and other assets and noncurrent other assets, depending on the duration of the agreements. The assets are amortized over the applicable periods and included in deductions from revenue. The duration of these agreements typically ranges from 4 to 10 years. | ||||||||||||
Amortization expense for infrastructure programs was $86 million, $90 million and $137 million in 2012, 2011 and 2010, respectively. The aggregate deductions from revenue recorded by the Company in relation to these programs, including amortization expense on infrastructure programs, were $6.1 billion, $5.8 billion and $5.0 billion in 2012, 2011 and 2010, respectively. | ||||||||||||
Advertising Costs | Advertising Costs | |||||||||||
Our Company expenses 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. Advertising costs included in the line item selling, general and administrative expenses in our consolidated statements of income were $3.3 billion, $3.3 billion and $2.9 billion in 2012, 2011 and 2010, respectively. As of December 31, 2012 and 2011, advertising and production costs of $295 million and $349 million, respectively, were primarily recorded in the line item prepaid expenses and other assets in our consolidated balance sheets. | ||||||||||||
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. | ||||||||||||
Shipping and Handling Costs | Shipping and Handling Costs | |||||||||||
Shipping and handling costs related to the movement of finished goods from manufacturing locations to our sales distribution centers are included in the line item cost of goods sold in our consolidated statements of income. Shipping and handling costs incurred to move finished goods from our sales distribution centers to customer locations are included in the line item selling, general and administrative expenses in our consolidated statements of income. As a result of our acquisition of CCE's former North America business, the amount of shipping and handling costs recorded in the line item selling, general and administrative expenses increased significantly in 2011 when compared to 2010. During the years ended December 31, 2012 and 2011, the Company recorded shipping and handling costs of $2.8 billion and $2.4 billion, respectively, in the line item selling, general and administrative expenses. Our customers do not pay us separately for shipping and handling costs related to finished goods. | ||||||||||||
Net Income Per Share | Net Income Per Share | |||||||||||
Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted net income per share is computed similarly to basic net income per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. Approximately 34 million, 32 million (as adjusted) and 77 million (as adjusted) stock option awards were excluded from the computations of diluted net income per share in 2012, 2011 and 2010, respectively, because the awards would have been antidilutive for the years presented. | ||||||||||||
Cash Equivalents | Cash Equivalents | |||||||||||
We classify time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor our credit risk concentrations. | ||||||||||||
Short-term Investments | Short-Term Investments | |||||||||||
We classify time deposits and other investments that have maturities of greater than three months but less than one year as short-term investments. | ||||||||||||
Investments in Equity and Debt Securities | Investments in Equity and Debt Securities | |||||||||||
We use the equity method to account for our investments in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. We include our proportionate share of earnings and/or losses of our equity method investees in equity income (loss) — net in our consolidated statements of income. The carrying value of our equity investments is reported in equity method investments in our consolidated balance sheets. Refer to Note 6. | ||||||||||||
We account for investments in companies that we do not control or account for under the equity method either at fair value or under the cost method, as applicable. Investments in equity securities are carried at fair value if the fair value of the security is readily determinable. Equity investments carried at fair value are classified as either trading or available-for-sale securities 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 other income (loss) — net in our consolidated statements of income. Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in our consolidated balance sheets as a component of accumulated other comprehensive income (loss) ("AOCI"). Trading securities are reported as either marketable securities or other assets in our consolidated balance sheets. Securities classified as available-for-sale are reported as either marketable securities, other investments or other assets in our consolidated balance sheets, depending on the length of time we intend to hold the investment. Refer to Note 3. | ||||||||||||
Investments in equity securities that we do not control or account for under the equity method and do not have readily determinable fair values are accounted for under the cost method. Cost method investments are originally recorded at cost, and we record dividend income when applicable dividends are declared. Cost method investments are reported as other investments in our consolidated balance sheets, and dividend income from cost method investments is reported in the line item other income (loss) — net in our consolidated statements of income. | ||||||||||||
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. | ||||||||||||
Each reporting period we review all of our investments in equity and debt securities, except for those classified as trading, to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the fair value of each investment. When such events or changes occur, we evaluate the fair value compared to our cost basis in the investment. We also perform this evaluation every reporting period for each investment for which our cost basis exceeded the fair value in the prior period. The fair values of most of our investments in publicly traded companies are often readily available based on quoted market prices. For investments in nonpublicly traded companies, management's assessment of fair value is based on valuation methodologies including discounted cash flows, estimates of sales proceeds and appraisals, as appropriate. We consider the assumptions that we believe hypothetical marketplace participants would use in evaluating estimated future cash flows when employing the discounted cash flow or estimates of sales proceeds valuation methodologies. | ||||||||||||
In the event the fair value of an investment declines below our cost basis, management determines if the decline in fair value is other than temporary. If management determines the decline is other than temporary, an impairment charge is recorded. Management's assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the extent to which the market value has been less than our cost basis, the financial condition and near-term prospects of the issuer, and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. | ||||||||||||
Trade Accounts Receivable | Trade Accounts Receivable | |||||||||||
We record trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the trade accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on our history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and our relationships with, and the economic status of, our bottling partners and customers. We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations. Activity in the allowance for doubtful accounts was as follows (in millions): | ||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||
Balance at beginning of year | $ | 83 | $ | 48 | $ | 55 | ||||||
Net charges to costs and expenses | 5 | 56 | 21 | |||||||||
Write-offs | (19 | ) | (12 | ) | (18 | ) | ||||||
Other1 | (16 | ) | (9 | ) | (10 | ) | ||||||
Balance at end of year | $ | 53 | $ | 83 | $ | 48 | ||||||
1 | Other includes acquisitions, divestitures, foreign currency translation and the impact of transferring the assets of our consolidated Philippine and Brazilian bottling operations to assets held for sale. | |||||||||||
A significant portion of our net operating revenues and corresponding accounts receivable is derived from sales of our products in international markets. Refer to Note 19. We also generate a significant portion of our net operating revenues by selling concentrates and syrups to bottlers in which we have a noncontrolling interest, including Coca-Cola Hellenic Bottling Company S.A. ("Coca-Cola Hellenic"), Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA") and Coca-Cola Amatil Limited ("Coca-Cola Amatil"). Refer to Note 6. | ||||||||||||
Inventories | Inventories | |||||||||||
Inventories consist primarily of raw materials and packaging (which includes 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. Refer to Note 4. | ||||||||||||
Derivative Instruments | Derivative Instruments | |||||||||||
Our Company, when deemed appropriate, 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. All derivatives are carried at fair value in our consolidated balance sheets in the line items prepaid expenses and other assets or accounts payable and accrued expenses, as applicable. The cash flow impact of the Company's derivative instruments is primarily included in our consolidated statements of cash flows in net cash provided by operating activities. Refer to Note 5. | ||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||||
Property, plant and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded principally by the straight-line method over the estimated useful lives of our assets, which are reviewed periodically and generally have the following ranges: buildings and improvements: 40 years or less; and machinery, equipment and vehicle fleet: 20 years or less. Land is not depreciated, and construction in progress is not depreciated until ready for service. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, including renewals that are deemed to be reasonably assured, or the estimated useful life of the improvement. Depreciation is not recorded during the period in which a long-lived asset (disposal group) is classified as held for sale, even if the asset (disposal group) continues to generate revenue during the period. Depreciation expense, including the depreciation expense of assets under capital lease, totaled $1,704 million, $1,654 million and $1,188 million in 2012, 2011 and 2010, respectively. Amortization expense for leasehold improvements totaled $19 million, $18 million and $16 million in 2012, 2011 and 2010, respectively. | ||||||||||||
Certain events or changes in circumstances may indicate that the recoverability of the carrying amount of property, plant and equipment should be assessed, including, among others, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present, we estimate the future cash flows expected to result from the use of the asset (or asset group) and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. We use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models, which are consistent with the assumptions we believe hypothetical marketplace participants would use. Refer to Note 7. | ||||||||||||
Goodwill, Trademarks and Other Intangible Assets | Goodwill, Trademarks and Other Intangible Assets | |||||||||||
We classify intangible assets into three categories: (1) intangible assets with definite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their useful lives, generally ranging from 1 to 20 years. Refer to Note 8. | ||||||||||||
When facts and circumstances indicate that the carrying value of definite-lived intangible assets may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of sales volume and the resulting gross profit and cash flows. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount of the asset (or asset group) exceeds the fair value. We use a variety of methodologies to determine the fair value of these assets, including discounted cash flow models, which are consistent with the assumptions we believe hypothetical marketplace participants would use. | ||||||||||||
We test intangible assets determined to have indefinite useful lives, including trademarks, franchise rights and goodwill, for impairment annually, or more frequently if events or circumstances indicate that assets might be impaired. Our Company performs these annual impairment reviews as of the first day of our third fiscal quarter. We use a variety of methodologies in conducting impairment assessments of indefinite-lived intangible assets, including, but not limited to, discounted cash flow models, which are based on the assumptions we believe hypothetical marketplace participants would use. For indefinite-lived intangible assets, other than goodwill, if the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. | ||||||||||||
The Company has the option to perform a qualitative assessment of indefinite-lived intangible assets, other than goodwill, prior to completing the impairment test described above. The Company must assess whether it is more likely than not that the fair value of the intangible asset is less than its carrying amount. If the Company concludes that this is the case, it must perform the testing described above. Otherwise, the Company does not need to perform any further assessment. During 2012, the Company only performed qualitative assessments on less than 10 percent of our indefinite-lived intangible assets balance. | ||||||||||||
We perform impairment tests of goodwill at our reporting unit level, which is one level below our operating segments. Our operating segments are primarily based on geographic responsibility, which is consistent with the way management runs our business. Our operating segments are subdivided into smaller geographic regions or territories that we sometimes refer to as "business units." These business units are also our reporting units. The Bottling Investments operating segment includes all Company-owned or consolidated bottling operations, regardless of geographic location, except for bottling operations managed by CCR, which are included in our North America operating segment. Generally, each Company-owned or consolidated bottling operation within our Bottling Investments operating segment is its own reporting unit. Goodwill is assigned to the reporting unit or units that benefit from the synergies arising from each business combination. | ||||||||||||
The goodwill impairment test consists of a two-step process, if necessary. The first step is to compare the fair value of a reporting unit to its carrying value, including goodwill. We typically use discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those we believe hypothetical marketplace participants would use. If the fair value of the reporting unit is less than its carrying value, the second step of the impairment test must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The loss recognized cannot exceed the carrying amount of goodwill. | ||||||||||||
The Company has the option to perform a qualitative assessment of goodwill prior to completing the two-step process described above to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the two-step process. Otherwise, the Company will forego the two-step process and does not need to perform any further testing. During 2012, the Company only performed qualitative assessments on less than 10 percent of our consolidated goodwill balance. | ||||||||||||
Impairment charges related to intangible assets are generally recorded in the line item other operating charges or, to the extent they relate to equity method investees, in the line item equity income (loss) — net in our consolidated statements of income. | ||||||||||||
Contingencies | Contingencies | |||||||||||
Our Company is involved in various legal proceedings and tax matters. Due to their nature, such legal proceedings and tax matters involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties and governmental actions. Management assesses the probability of loss for such contingencies and accrues a liability and/or discloses the relevant circumstances, as appropriate. Refer to Note 11. | ||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||
Our Company currently sponsors stock option plans and restricted stock award plans. The fair value of our stock option grants is estimated on the grant date using a Black-Scholes-Merton option-pricing model. The Company recognizes compensation expense on a straight-line basis over the period the grant is earned by the employee, generally four years. | ||||||||||||
The fair value of our restricted stock awards is the quoted market value of the Company's stock on the grant date less the present value of the expected dividends not received during the relevant holding period. In the period it becomes probable that the minimum performance criteria specified in the restricted stock award plan will be achieved, we recognize expense for the proportionate share of the total fair value of the award related to the vesting period that has already lapsed. The remaining cost of the award is expensed on a straight-line basis over the balance of the vesting period. In the event the Company determines it is no longer probable that we will achieve the minimum performance criteria specified in the plan, we reverse all of the previously recognized compensation expense in the period such a determination is made. Refer to Note 12. | ||||||||||||
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans | |||||||||||
Our Company sponsors and/or contributes to pension and postretirement health care and life insurance benefit plans covering substantially all U.S. employees. We also sponsor nonqualified, unfunded defined benefit pension plans for certain associates and participate in multi-employer pension plans in the United States. In addition, our Company and its subsidiaries have various pension plans and other forms of postretirement arrangements outside the United States. Refer to Note 13. | ||||||||||||
Effective January 1, 2012, the Company elected to change our accounting methodology for determining the market-related value of assets for our U.S. qualified defined benefit pension plans. The market-related value of assets is used to determine the Company's expected return on assets, a component of our annual pension expense calculation. The Company previously used a smoothing technique to calculate our market-related value of assets, which reflected changes in the fair value over no more than five years. However, we now use the actual fair value of plan assets to determine our expected return on those assets for all of our defined benefit plans. Although both methods are permitted under accounting principles generally accepted in the United States, the Company believes our new methodology is preferable as it accelerates the recognition of gains and losses in the determination of our annual pension expense. | ||||||||||||
The Company's change in accounting methodology has been applied retrospectively, and we have adjusted all applicable prior period financial information presented herein as required. The cumulative effect of this change on retained earnings as of January 1, 2011, was an increase of $59 million, with an offset to AOCI. The impact of this change on the Company's income before income taxes was an increase of $4 million and $19 million and a decrease of $36 million during the years ended December 31, 2012, 2011 and 2010, respectively. The impact on the Company's earnings per share was not significant for any of the financial statement periods presented in this report. | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income tax expense includes United States, state, local and international income taxes, plus a provision for U.S. taxes on undistributed earnings of foreign subsidiaries not deemed to be indefinitely reinvested. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the financial reporting basis and the tax basis of existing assets and liabilities. The tax rate used to determine the deferred tax assets and liabilities is the enacted tax rate for the year and manner in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company records taxes that are collected from customers and remitted to governmental authorities on a net basis in our consolidated statements of income. | ||||||||||||
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 14. | ||||||||||||
Translation and Remeasurement | Translation and Remeasurement | |||||||||||
We translate the assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars at the appropriate spot rates as of the balance sheet date. Generally, our foreign subsidiaries use the local currency as their functional currency. Changes in the carrying value of these assets and liabilities attributable to fluctuations in spot rates are recognized in foreign currency translation adjustment, a component of AOCI. Refer to Note 15. Income statement accounts are translated using the monthly average exchange rates during the year. | ||||||||||||
Monetary assets and liabilities denominated in a currency that is different from a reporting entity's functional currency must first be remeasured from the applicable currency to the legal entity's functional currency. The effect of this remeasurement process is recognized in the line item other income (loss) — net in our consolidated statements of income and is partially offset by the impact of our economic hedging program for certain exposures on our consolidated balance sheets. Refer to Note 5. | ||||||||||||
Hyperinflationary Economies | Hyperinflationary Economies | |||||||||||
A hyperinflationary economy is one that has cumulative inflation of approximately 100 percent or more over a three-year period. Effective January 1, 2010, Venezuela was determined to be a hyperinflationary economy, and the Venezuelan government devalued the bolivar by resetting the official rate of exchange ("official rate") from 2.15 bolivars per U.S. dollar to 2.6 bolivars per U.S. dollar for essential goods and 4.3 bolivars per U.S. dollar for nonessential goods. In accordance with hyperinflationary accounting under accounting principles generally accepted in the United States, our local subsidiary was required to use the U.S. dollar as its functional currency. As a result, we remeasured the net assets of our Venezuelan subsidiary using the official rate for nonessential goods of 4.3 bolivars per U.S. dollar, which resulted in a loss of $103 million during the first quarter of 2010. The loss was recorded in the line item other income (loss) - net in our consolidated statement of income. We classified the impact of the remeasurement loss in the line item effect of exchange rate changes on cash and cash equivalents in our consolidated statement of cash flows. | ||||||||||||
In June 2010, the Venezuelan government introduced a newly regulated foreign currency exchange system known as the Transaction System for Foreign Currency Denominated Securities ("SITME"). This system, which was subject to annual limits, enabled entities domiciled in Venezuela to exchange their bolivars to U.S. dollars through authorized financial institutions (commercial banks, savings and lending institutions, etc.). | ||||||||||||
In December 2010, the Venezuelan government announced that it was eliminating the official rate of 2.6 bolivars per U.S. dollar for essential goods. As a result, the only two exchange rates available for remeasuring bolivar-denominated transactions as of December 31, 2010, were the official rate of 4.3 bolivars per U.S. dollar and the SITME rate. As discussed above, the Company remeasured the net assets of our Venezuelan subsidiary using the official rate for nonessential goods of 4.3 bolivars per U.S. dollar starting on January 1, 2010. Therefore, the elimination of the official rate for essential goods had no impact on the remeasurement of the net assets of our Venezuelan subsidiary. | ||||||||||||
Subsequent to December 31, 2012, the Venezuelan government devalued its currency further to an official rate of 6.3 bolivars per U.S. dollar. The government also announced that it was discontinuing the SITME foreign exchange system. As a result, the Company will remeasure the net assets of our local subsidiary and recognize the related gains or losses from remeasurement in the line item other income (loss) — net in our consolidated statement of income. Based on the carrying value of our assets and liabilities denominated in Venezuelan bolivar as of December 31, 2012, we anticipate recognizing a remeasurement loss of $100 million to $125 million during the first quarter of 2013. | ||||||||||||
The Company will continue to use the official rate to remeasure the net assets of our Venezuelan subsidiary. If the official rate devalues further, it would result in our Company recognizing additional foreign currency exchange gains or losses in our consolidated financial statements. As of December 31, 2012, our Venezuelan subsidiary held monetary assets of approximately $450 million and monetary liabilities of approximately $85 million. | ||||||||||||
In addition to the foreign currency exchange exposure related to our Venezuelan subsidiary's net assets, we also sell concentrate to our bottling partner in Venezuela from outside the country. These sales are denominated in U.S. dollars. If we are unable to utilize a government-approved exchange rate mechanism for future concentrate sales to our bottling partner in Venezuela, the amount of receivables related to these sales will increase. In addition, we have certain intangible assets associated with products sold in Venezuela. If the bolivar further devalues, it could result in the impairment of these intangible assets. As of December 31, 2012, the carrying value of our accounts receivable from our bottling partner in Venezuela and intangible assets associated with products sold in Venezuela was $216 million. |
BUSINESS_AND_SUMMARY_OF_SIGNIF2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||
Activity in allowance for doubtful accounts | Activity in the allowance for doubtful accounts was as follows (in millions): | |||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||
Balance at beginning of year | $ | 83 | $ | 48 | $ | 55 | ||||||
Net charges to costs and expenses | 5 | 56 | 21 | |||||||||
Write-offs | (19 | ) | (12 | ) | (18 | ) | ||||||
Other1 | (16 | ) | (9 | ) | (10 | ) | ||||||
Balance at end of year | $ | 53 | $ | 83 | $ | 48 | ||||||
1 | Other includes acquisitions, divestitures, foreign currency translation and the impact of transferring the assets of our consolidated Philippine and Brazilian bottling operations to assets held for sale. |
ACQUISITIONS_AND_DIVESTITURES_
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Acquisitions and Divestitures Disclosure [ | ||||||||||||
Schedule of Replaced shared-based payments awards related to CCE's North America employees | The following table provides a list of all replacement awards and the estimated fair value of those awards issued in conjunction with our acquisition of CCE's former North America business (in millions): | |||||||||||
Number of | Fair Value | |||||||||||
Shares, Options | ||||||||||||
and Units Issued | ||||||||||||
As Adjusted | ||||||||||||
Performance share units | 3.3 | $ | 192 | |||||||||
Stock options | 9.6 | 109 | ||||||||||
Restricted share units | 1.6 | 50 | ||||||||||
Restricted stock | 0.4 | 12 | ||||||||||
Total | 14.9 | $ | 363 | |||||||||
Schedule of the total purchase price of CCE's North American business | The following table reconciles the total purchase price of the Company's acquisition of CCE's former North America business, including adjustments recorded as part of the Company's purchase accounting (in millions): | |||||||||||
October 2, | ||||||||||||
2010 | ||||||||||||
Fair value of our equity investment in CCE1 | $ | 5,373 | ||||||||||
Cash consideration2 | 1,368 | |||||||||||
Fair value of share-based payment awards3 | 154 | |||||||||||
Total purchase price | $ | 6,895 | ||||||||||
1 | Represents the fair value of our 33 percent ownership interest in the outstanding common stock of CCE based on the closing price of CCE's common stock on the last day the New York Stock Exchange was open prior to the acquisition date. The fair value reflects our indirect ownership interest in both CCE's European operations and former North America business. | |||||||||||
2 | Primarily related to the debt shortfall and working capital adjustments. | |||||||||||
3 | Represents the portion of the total fair value of the replacement awards associated with services rendered prior to the business combination, net of tax. | |||||||||||
Schedule of the allocation of the purchase price by major class of assets and liabilities | The following table presents the final allocation of the purchase price by major class of assets and liabilities (in millions) as of the acquisition date, as well as adjustments made during 2011 (referred to as "measurement period adjustments"): | |||||||||||
Amounts | Measurement | Amounts | ||||||||||
Recognized as of | Period | Recognized as of | ||||||||||
Acquisition Date1 | Adjustments2 | Acquisition Date | ||||||||||
(as Adjusted) | ||||||||||||
Cash and cash equivalents | $ | 49 | $ | — | $ | 49 | ||||||
Marketable securities | 7 | — | 7 | |||||||||
Trade accounts receivable3 | 1,194 | — | 1,194 | |||||||||
Inventories | 696 | — | 696 | |||||||||
Other current assets4 | 744 | (5 | ) | 739 | ||||||||
Property, plant and equipment4 | 5,385 | (682 | ) | 4,703 | ||||||||
Bottlers' franchise rights with indefinite lives4,5 | 5,100 | 100 | 5,200 | |||||||||
Other intangible assets4,6 | 1,032 | 45 | 1,077 | |||||||||
Other noncurrent assets | 261 | — | 261 | |||||||||
Total identifiable assets acquired | $ | 14,468 | $ | (542 | ) | $ | 13,926 | |||||
Accounts payable and accrued expenses4 | 1,826 | 8 | 1,834 | |||||||||
Loans and notes payable7 | 266 | — | 266 | |||||||||
Long-term debt7 | 9,345 | — | 9,345 | |||||||||
Pension and other postretirement liabilities8 | 1,313 | — | 1,313 | |||||||||
Other noncurrent liabilities4,9 | 2,603 | (293 | ) | 2,310 | ||||||||
Total liabilities assumed | $ | 15,353 | $ | (285 | ) | $ | 15,068 | |||||
Net liabilities assumed | (885 | ) | (257 | ) | (1,142 | ) | ||||||
Goodwill4,10 | 7,746 | 304 | 8,050 | |||||||||
$ | 6,861 | $ | 47 | $ | 6,908 | |||||||
Less: Noncontrolling interests | 13 | — | 13 | |||||||||
Net assets acquired | $ | 6,848 | $ | 47 | $ | 6,895 | ||||||
1 | As previously reported in the Notes to Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2010. | |||||||||||
2 | The measurement period adjustments did not have a significant impact on our consolidated statements of income for the years ended December 31, 2011, and December 31, 2010. Therefore, we did not retrospectively adjust the comparative 2010 financial information. | |||||||||||
3 | The gross amount due under receivables we acquired was $1,226 million, of which $32 million was expected to be uncollectible. | |||||||||||
4 | The measurement period adjustments were due to the finalization of appraisals related to intangible assets and certain fixed assets and resulted in the following: a decrease to property, plant and equipment; an increase to franchise rights; and a decrease to noncurrent deferred tax liabilities. The net impact of the measurement period adjustments and the payments made to New CCE that related to the finalization of working capital adjustments resulted in a net increase to goodwill. | |||||||||||
5 | Represents reacquired franchise rights that had previously provided CCE with exclusive and perpetual rights to manufacture and/or distribute certain beverages in specified territories. These rights have been determined to have indefinite lives and are not amortized. | |||||||||||
6 | Other intangible assets primarily relate to franchise rights that had previously provided CCE with exclusive rights to manufacture and/or distribute certain beverages in specified territories for a finite period of time, and therefore have been classified as definite-lived intangible assets. The estimated fair value of franchise rights with definite lives was $650 million as of the acquisition date. These franchise rights will be amortized over a weighted-average life of approximately eight years, which is equal to the weighted-average remaining contractual term of the franchise rights. Other intangible assets also include $380 million of customer relationships, which will be amortized over approximately 20 years. | |||||||||||
7 | Refer to Note 10 for additional information. | |||||||||||
8 | The assumed pension and other postretirement liabilities consisted of benefit obligations of $3,544 million and plan assets of $2,231 million. Refer to Note 13 for additional information related to pension and other postretirement plans assumed from CCE. | |||||||||||
9 | Primarily relates to deferred tax liabilities recorded on franchise rights. Refer to Note 14. | |||||||||||
10 | The goodwill recognized as part of this acquisition has been assigned to the North America operating segment, of which $170 million is tax deductible. The goodwill recognized in conjunction with our acquisition of CCE's former North America business is primarily related to synergistic value created from having a unified operating system that will strategically position us to better market and distribute our nonalcoholic beverage brands in North America. It also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce. | |||||||||||
Schedule of pro forma information of CCE's North American business acquisition and Norwegian and Swedish bottling operation divestitures | The following table presents unaudited consolidated pro forma information as if our acquisition of CCE's former North America business and the divestiture of our Norwegian and Swedish bottling operations had occurred on January 1, 2010 (in millions): | |||||||||||
Unaudited | ||||||||||||
Year Ended December 31, | 2010 | |||||||||||
Net operating revenues1 | $ | 43,106 | ||||||||||
Net income attributable to shareowners of The Coca-Cola Company2,3 | 6,839 | |||||||||||
1 | The deconsolidation of our Norwegian and Swedish bottling operations resulted in a decrease to net operating revenues of approximately $433 million in 2010. | |||||||||||
2 | The deconsolidation of our Norwegian and Swedish bottling operations resulted in a decrease to net income attributable to shareowners of The Coca-Cola Company of approximately $387 million in 2010. | |||||||||||
3 | The 2010 pro forma information has been adjusted to exclude the gain related to the remeasurement of our equity interest in CCE to fair value upon the close of the transaction, the gain on the sale of our Norwegian and Swedish bottling operations, transaction costs and charges related to preexisting relationships in order to present the pro forma information as if the transactions had occurred prior to January 1, 2010. | |||||||||||
Information related to the major classes of assets and liabilities held for sale | The following table presents information related to the major classes of assets and liabilities of the Company's Philippine and Brazilian bottling operations, both of which are included in our Bottling Investments operating segment, as of December 31, 2012 (in millions): | |||||||||||
Philippine Bottling Operations | Brazilian Bottling Operations | Total Bottling | ||||||||||
Operations | ||||||||||||
Held for Sale | ||||||||||||
Cash, cash equivalents and short-term investments | $ | 133 | $ | 45 | $ | 178 | ||||||
Trade accounts receivable, less allowances | 108 | 88 | 196 | |||||||||
Inventories | 187 | 85 | 272 | |||||||||
Prepaid expenses and other assets | 223 | 174 | 397 | |||||||||
Other assets | 7 | 128 | 135 | |||||||||
Property, plant and equipment — net | 841 | 419 | 1,260 | |||||||||
Bottlers' franchise rights with indefinite lives | 341 | 130 | 471 | |||||||||
Goodwill | 148 | 22 | 170 | |||||||||
Other intangible assets | — | 1 | 1 | |||||||||
Allowance for reduction of assets held for sale | (107 | ) | — | (107 | ) | |||||||
Total assets | $ | 1,881 | $ | 1,092 | $ | 2,973 | ||||||
Accounts payable and accrued expenses | $ | 241 | $ | 157 | $ | 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 | 20 | 75 | 95 | |||||||||
Deferred income taxes | 102 | 20 | 122 | |||||||||
Total liabilities | $ | 359 | $ | 437 | $ | 796 | ||||||
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Investments Disclosure [Abstract] | ||||||||||||||||
Schedule of trading securities | The Company's trading securities were included in the following captions in our consolidated balance sheets (in millions): | |||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||
Marketable securities | $ | 184 | $ | 138 | ||||||||||||
Other assets | 82 | 73 | ||||||||||||||
Total trading securities | $ | 266 | $ | 211 | ||||||||||||
Certain Debt and Marketable Equity Securities, Available-for-Sale And Held-To-Maturity Securities, Value and Maturities | As of December 31, 2012 and 2011, available-for-sale and held-to-maturity securities consisted of the following (in millions): | |||||||||||||||
Gross | Estimated | |||||||||||||||
Unrealized | ||||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||
2012 | ||||||||||||||||
Available-for-sale securities:1,2 | ||||||||||||||||
Equity securities | $ | 957 | $ | 441 | $ | (10 | ) | $ | 1,388 | |||||||
Debt securities | 3,169 | 46 | (10 | ) | 3,205 | |||||||||||
$ | 4,126 | $ | 487 | $ | (20 | ) | $ | 4,593 | ||||||||
Held-to-maturity securities: | ||||||||||||||||
Bank and corporate debt | $ | — | $ | — | $ | — | $ | — | ||||||||
2011 | ||||||||||||||||
Available-for-sale securities:1 | ||||||||||||||||
Equity securities | $ | 834 | $ | 237 | $ | — | $ | 1,071 | ||||||||
Debt securities | 332 | 1 | (3 | ) | 330 | |||||||||||
$ | 1,166 | $ | 238 | $ | (3 | ) | $ | 1,401 | ||||||||
Held-to-maturity securities: | ||||||||||||||||
Bank and corporate debt | $ | 113 | $ | — | $ | — | $ | 113 | ||||||||
1 | Refer to Note 16 for additional information related to the estimated fair value. | |||||||||||||||
2 | During 2012, the Company made a change to its overall cash management program. In an effort to manage counterparty risk and diversify our assets, the Company began to make additional investments in high-quality securities. These investments are primarily classified as available-for-sale securities. | |||||||||||||||
Schedule of Realized Gain (Loss) [Table Text Block] | The sale and/or maturity of available-for-sale securities resulted in the following activity (in millions): | |||||||||||||||
Years Ending December 31, | 2012 | 2011 | ||||||||||||||
Gross gains | $ | 41 | $ | 5 | ||||||||||||
Gross losses | (35 | ) | (1 | ) | ||||||||||||
Proceeds | 5,036 | 37 | ||||||||||||||
Investments By Balance Sheet Grouping | The Company's available-for-sale and held-to-maturity securities were included in the following captions in our consolidated balance sheets (in millions): | |||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||
Available- | Held-to- | Available- | Held-to- | |||||||||||||
for-Sale | Maturity | for-Sale | Maturity | |||||||||||||
Securities | Securities | Securities | Securities | |||||||||||||
Cash and cash equivalents | $ | 9 | $ | — | $ | — | $ | 112 | ||||||||
Marketable securities | 2,908 | — | 5 | 1 | ||||||||||||
Other investments, principally bottling companies | 1,087 | — | 986 | — | ||||||||||||
Other assets | 589 | — | 410 | — | ||||||||||||
$ | 4,593 | $ | — | $ | 1,401 | $ | 113 | |||||||||
Contractual maturity amounts of the investment securities | The contractual maturities of these investments as of December 31, 2012, were as follows (in millions): | |||||||||||||||
Available-for-Sale Securities | Held-to-Maturity Securities | |||||||||||||||
Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||
Within 1 year | $ | 1,003 | $ | 1,001 | $ | — | $ | — | ||||||||
After 1 year through 5 years | 1,590 | 1,598 | — | — | ||||||||||||
After 5 years through 10 years | 270 | 299 | — | — | ||||||||||||
After 10 years | 306 | 307 | — | — | ||||||||||||
Equity securities | 957 | 1,388 | — | — | ||||||||||||
$ | 4,126 | $ | 4,593 | $ | — | $ | — | |||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Inventories [Abstract] | ||||||||
Inventories [Table Text Block] | Inventories consisted of the following (in millions): | |||||||
December 31, | 2012 | 2011 | ||||||
Raw materials and packaging | $ | 1,773 | $ | 1,680 | ||||
Finished goods | 1,171 | 1,198 | ||||||
Other | 320 | 214 | ||||||
Total inventories | $ | 3,264 | $ | 3,092 | ||||
HEDGING_TRANSACTIONS_AND_DERIV1
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2012 | |||||||||||||||
Hedging Transactions and Derivative Financial Instruments Disclosures [Abstract] | |||||||||||||||
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 Hedging Instruments | Balance Sheet Location1 | December 31, | December 31, | ||||||||||||
2012 | 2011 | ||||||||||||||
Assets: | |||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 149 | $ | 170 | ||||||||||
Commodity contracts | Prepaid expenses and other assets | — | 2 | ||||||||||||
Interest rate contracts | Prepaid expenses and other assets | 7 | — | ||||||||||||
Interest rate contracts | Other assets | 335 | 246 | ||||||||||||
Total assets | $ | 491 | $ | 418 | |||||||||||
Liabilities: | |||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 55 | $ | 41 | ||||||||||
Commodity contracts | Accounts payable and accrued expenses | 1 | 1 | ||||||||||||
Interest rate contracts | Other liabilities | 6 | — | ||||||||||||
Total liabilities | $ | 62 | $ | 42 | |||||||||||
1 | All of the Company's derivative instruments are carried at fair value in our 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 16 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 | Refer to Note 16 for additional information related to the estimated fair value. | ||||||||||||||
Derivative instruments, fair value, not designated as hedging instruments | 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 Hedging Instruments | Balance Sheet Location1 | December 31, | December 31, | ||||||||||||
2012 | 2011 | ||||||||||||||
Assets: | |||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 19 | $ | 29 | ||||||||||
Foreign currency contracts | Other assets | 42 | — | ||||||||||||
Commodity contracts | Prepaid expenses and other assets | 72 | 54 | ||||||||||||
Other derivative instruments | Prepaid expenses and other assets | 6 | 5 | ||||||||||||
Total assets | $ | 139 | $ | 88 | |||||||||||
Liabilities: | |||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 24 | $ | 116 | ||||||||||
Foreign currency contracts | Other liabilities | 1 | — | ||||||||||||
Commodity contracts | Accounts payable and accrued expenses | 43 | 47 | ||||||||||||
Commodity contracts | Other liabilities | 1 | — | ||||||||||||
Other derivative instruments | Accounts payable and accrued expenses | 2 | 1 | ||||||||||||
Total liabilities | $ | 71 | $ | 164 | |||||||||||
1 | All of the Company's derivative instruments are carried at fair value in our 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 16 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 | Refer to Note 16 for additional information related to the estimated fair value. | ||||||||||||||
Derivative instruments, pretax impact that changes in the fair value of the derivatives designated as hedges had on AOCI and earnings | 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 years ended December 31, 2012, 2011 and 2010 (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) | ||||||||||||||
2012 | |||||||||||||||
Foreign currency contracts | $ | 59 | Net operating revenues | $ | (46 | ) | $ | 2 | |||||||
Foreign currency contracts | 34 | Cost of goods sold | (23 | ) | — | ||||||||||
Interest rate contracts | 1 | Interest expense | (12 | ) | — | 2 | |||||||||
Commodity contracts | (4 | ) | Cost of goods sold | (1 | ) | — | |||||||||
Total | $ | 90 | $ | (82 | ) | $ | 2 | ||||||||
2011 | |||||||||||||||
Foreign currency contracts | $ | 3 | Net operating revenues | $ | (231 | ) | $ | — | 2 | ||||||
Interest rate contracts | (11 | ) | Interest expense | (12 | ) | (1 | ) | ||||||||
Commodity contracts | (1 | ) | Cost of goods sold | — | — | ||||||||||
Total | $ | (9 | ) | $ | (243 | ) | $ | (1 | ) | ||||||
2010 | |||||||||||||||
Foreign currency contracts | $ | (307 | ) | Net operating revenues | $ | (2 | ) | $ | (2 | ) | |||||
Interest rate contracts | — | Interest expense | (15 | ) | — | ||||||||||
Commodity contracts | 1 | Cost of goods sold | — | — | |||||||||||
Total | $ | (306 | ) | $ | (17 | ) | $ | (2 | ) | ||||||
1 | The Company records gains and losses reclassified from AOCI in income for the effective portion and ineffective portion, if any, to the same line items in our consolidated statements of income. | ||||||||||||||
2 | Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
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 years ended December 31, 2012, 2011 and 2010 (in millions): | ||||||||||||||
Hedging Instruments and Hedged Items | Location of Gain (Loss) | Gain (Loss) | |||||||||||||
Recognized in Income | Recognized in Income | ||||||||||||||
(Ineffective Portion and | |||||||||||||||
Amount Excluded from | |||||||||||||||
Effectiveness Testing) | |||||||||||||||
2012 | |||||||||||||||
Interest rate contracts | Interest expense | $ | 89 | ||||||||||||
Fixed-rate debt | Interest expense | (42 | ) | ||||||||||||
Net impact to interest expense | $ | 47 | |||||||||||||
Foreign currency contracts | Other income (loss) — net | $ | 42 | ||||||||||||
Available-for-sale securities | Other income (loss) — net | (46 | ) | ||||||||||||
Net impact to other income (loss) — net | $ | (4 | ) | ||||||||||||
Net impact of fair value hedging instruments | $ | 43 | |||||||||||||
2011 | |||||||||||||||
Interest rate contracts | Interest expense | $ | 343 | ||||||||||||
Fixed-rate debt | Interest expense | (333 | ) | ||||||||||||
Net impact to interest expense | $ | 10 | |||||||||||||
2010 | |||||||||||||||
Interest rate contracts | Interest expense | $ | (97 | ) | |||||||||||
Fixed-rate debt | Interest expense | 102 | |||||||||||||
Net impact to interest expense | $ | 5 | |||||||||||||
Derivative instruments,fair value of net investment hedges, gain (loss) recognized in AOCI | 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 years ended December 31, 2012, 2011 and 2010 (in millions): | ||||||||||||||
Gain (Loss) | |||||||||||||||
Recognized in OCI | |||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | ||||||||||||
Foreign currency contracts | $ | (61 | ) | $ | (3 | ) | $ | (15 | ) | ||||||
Derivative instruments, not designated as hedging instruments, gain (loss) in earnings | The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the years ended December 31, 2012, 2011 and 2010 (in millions): | ||||||||||||||
Gains (Losses) | |||||||||||||||
Derivatives Not Designated | Location of Gains (Losses) | Year Ended December 31, | |||||||||||||
as Hedging Instruments | Recognized in Income | 2012 | 2011 | 2010 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | (7 | ) | $ | 7 | $ | (15 | ) | ||||||
Foreign currency contracts | Other income (loss) — net | 24 | (37 | ) | (46 | ) | |||||||||
Foreign currency contracts | Cost of goods sold | — | (12 | ) | (9 | ) | |||||||||
Commodity contracts | Net operating revenues | 4 | — | — | |||||||||||
Commodity contracts | Cost of goods sold | (110 | ) | (42 | ) | 40 | |||||||||
Commodity contracts | Selling, general and administrative expenses | 9 | (11 | ) | — | ||||||||||
Interest rate swaps | Interest expense | — | — | (5 | ) | ||||||||||
Interest rate locks | Interest expense | — | — | (104 | ) | ||||||||||
Other derivative instruments | Selling, general and administrative expenses | 18 | 8 | 21 | |||||||||||
Total | $ | (62 | ) | $ | (87 | ) | $ | (118 | ) |
EQUITY_METHOD_INVESTMENTS_Tabl
EQUITY METHOD INVESTMENTS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
EQUITY METHOD INVESTMENTS [Abstract] | ||||||||||||
Summarized financial information for CCE | The following table provides summarized financial information for CCE for the nine months ended October 1, 2010 (in millions): | |||||||||||
Nine Months Ended | ||||||||||||
October 1, 2010 | ||||||||||||
Net operating revenues | $ | 16,464 | ||||||||||
Cost of goods sold | 10,028 | |||||||||||
Gross profit | $ | 6,436 | ||||||||||
Operating income (loss) | $ | 1,369 | ||||||||||
Net income (loss) | $ | 677 | ||||||||||
Summary of significant transactions with CCE | The following table provides a summary of our significant transactions with CCE for the nine months ended October 1, 2010 (in millions): | |||||||||||
Nine Months Ended | ||||||||||||
October 1, 2010 | ||||||||||||
Concentrate, syrup and finished product sales to CCE | $ | 4,737 | ||||||||||
Syrup and finished product purchases from CCE | 263 | |||||||||||
CCE purchases of sweeteners through our Company | 251 | |||||||||||
Marketing payments made by us directly to CCE | 314 | |||||||||||
Marketing payments made to third parties on behalf of CCE | 106 | |||||||||||
Local media and marketing program reimbursements from CCE | 268 | |||||||||||
Payments made to CCE for dispensing equipment repair services | 64 | |||||||||||
Other payments — net | 19 | |||||||||||
Summarized financial information for equity method investees, excluding CCE | A summary of financial information for our equity method investees in the aggregate, other than CCE, is as follows (in millions): | |||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||
Net operating revenues | $ | 47,087 | $ | 42,472 | $ | 38,663 | ||||||
Cost of goods sold | 28,821 | 26,271 | 23,053 | |||||||||
Gross profit | $ | 18,266 | $ | 16,201 | $ | 15,610 | ||||||
Operating income | $ | 4,605 | $ | 4,181 | $ | 4,134 | ||||||
Consolidated net income | $ | 2,993 | $ | 2,237 | $ | 2,659 | ||||||
Less: Net income attributable to noncontrolling interests | 89 | 99 | 89 | |||||||||
Net income attributable to common shareowners | $ | 2,904 | $ | 2,138 | $ | 2,570 | ||||||
December 31, | 2012 | 2011 | ||||||||||
Current assets | $ | 16,054 | $ | 13,960 | ||||||||
Noncurrent assets | 32,687 | 27,152 | ||||||||||
Total assets | $ | 48,741 | $ | 41,112 | ||||||||
Current liabilities | $ | 12,004 | $ | 10,545 | ||||||||
Noncurrent liabilities | 12,272 | 11,646 | ||||||||||
Total liabilities | $ | 24,276 | $ | 22,191 | ||||||||
Equity attributable to shareowners of investees | $ | 23,827 | $ | 18,392 | ||||||||
Equity attributable to noncontrolling interests | 638 | 529 | ||||||||||
Total equity | $ | 24,465 | $ | 18,921 | ||||||||
Company equity investment | $ | 9,216 | $ | 7,233 | ||||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
Property Plant and Equipament [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | The following table summarizes our property, plant and equipment (in millions): | |||||||
December 31, | 2012 | 2011 | ||||||
Land | $ | 997 | $ | 1,141 | ||||
Buildings and improvements | 5,307 | 5,240 | ||||||
Machinery, equipment and vehicle fleet | 16,203 | 15,504 | ||||||
Construction in progress | 979 | 1,266 | ||||||
23,486 | 23,151 | |||||||
Less accumulated depreciation | 9,010 | 8,212 | ||||||
Property, plant and equipment — net | $ | 14,476 | $ | 14,939 | ||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||||||||
INTANGIBLE ASSETS [Abstract] | ||||||||||||||||||||||||||||
Indefinite-lived intangible assets | The following table summarizes information related to indefinite-lived intangible assets (in millions): | |||||||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||||||
Trademarks | $ | 6,527 | $ | 6,430 | ||||||||||||||||||||||||
Bottlers' franchise rights1 | 7,405 | 7,770 | ||||||||||||||||||||||||||
Goodwill | 12,255 | 12,219 | ||||||||||||||||||||||||||
Other | 111 | 113 | ||||||||||||||||||||||||||
Indefinite-lived intangible assets2 | $ | 26,298 | $ | 26,532 | ||||||||||||||||||||||||
1 | The decrease in 2012 was primarily related to the Company's consolidated Philippine and Brazilian bottling operations being transferred to assets held for sale as of December 31, 2012. This decrease was partially offset by the acquisition of the Sacramento bottler in 2012 and the finalization of purchase accounting related to our 2011 acquisition of Great Plains. Refer to Note 2 for additional information related to each of these transactions. | |||||||||||||||||||||||||||
2 | The distribution rights acquired from DPS are the only significant indefinite-lived intangible assets subject to renewal or extension arrangements. Refer to Note 2. | |||||||||||||||||||||||||||
Carrying value of goodwill by operating segment | The following table provides information related to the carrying value of our goodwill by operating segment (in millions): | |||||||||||||||||||||||||||
Eurasia & | Europe | Latin | North | Pacific | Bottling | Total | ||||||||||||||||||||||
Africa | America | America | Investments | |||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||
Balance as of January 1 | $ | 41 | $ | 695 | $ | 166 | $ | 9,861 | $ | 115 | $ | 787 | $ | 11,665 | ||||||||||||||
Effect of foreign currency translation | (6 | ) | 15 | (3 | ) | — | 2 | 11 | 19 | |||||||||||||||||||
Acquisitions1 | — | — | — | 195 | — | — | 195 | |||||||||||||||||||||
Adjustments related to the finalization | — | — | — | 304 | — | 5 | 309 | |||||||||||||||||||||
of purchase accounting1 | ||||||||||||||||||||||||||||
Divestitures, deconsolidations and other1 | — | — | — | 155 | — | (124 | ) | 31 | ||||||||||||||||||||
Balance as of December 31 | $ | 35 | $ | 710 | $ | 163 | $ | 10,515 | $ | 117 | $ | 679 | $ | 12,219 | ||||||||||||||
2012 | ||||||||||||||||||||||||||||
Balance as of January 1 | $ | 35 | $ | 710 | $ | 163 | $ | 10,515 | $ | 117 | $ | 679 | $ | 12,219 | ||||||||||||||
Effect of foreign currency translation | (1 | ) | (19 | ) | 5 | — | 6 | (4 | ) | (13 | ) | |||||||||||||||||
Acquisitions1 | — | — | — | 100 | — | 157 | 257 | |||||||||||||||||||||
Adjustments related to the finalization | — | — | — | (38 | ) | — | — | (38 | ) | |||||||||||||||||||
of purchase accounting1 | ||||||||||||||||||||||||||||
Divestitures, deconsolidations and other2 | — | — | — | — | — | (170 | ) | (170 | ) | |||||||||||||||||||
Balance as of December 31 | $ | 34 | $ | 691 | $ | 168 | $ | 10,577 | $ | 123 | $ | 662 | $ | 12,255 | ||||||||||||||
1 | Refer to Note 2 for information related to the Company's acquisitions and divestitures. | |||||||||||||||||||||||||||
2 | Relates to the transfer of goodwill associated with the Company's consolidated Philippine and Brazilian bottling operations to assets held for sale as of December 31, 2012. Refer to Note 2 for additional information related to this transaction. | |||||||||||||||||||||||||||
Definite-lived intangible assets | The following table summarizes information related to definite-lived intangible assets (in millions): | |||||||||||||||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||||||
Customer relationships | $ | 622 | $ | (166 | ) | $ | 456 | $ | 619 | $ | (126 | ) | $ | 493 | ||||||||||||||
Bottlers' franchise rights | 730 | (221 | ) | 509 | 668 | (119 | ) | 549 | ||||||||||||||||||||
Trademarks | 65 | (43 | ) | 22 | 99 | (70 | ) | 29 | ||||||||||||||||||||
Other | 129 | (77 | ) | 52 | 196 | (130 | ) | 66 | ||||||||||||||||||||
Total | $ | 1,546 | $ | (507 | ) | $ | 1,039 | $ | 1,582 | $ | (445 | ) | $ | 1,137 | ||||||||||||||
Estimated amortization expense for the next five years | Based on the carrying value of definite-lived intangible assets as of December 31, 2012, we estimate our amortization expense for the next five years will be as follows (in millions): | |||||||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||||||
Expense | ||||||||||||||||||||||||||||
2013 | $ | 161 | ||||||||||||||||||||||||||
2014 | 153 | |||||||||||||||||||||||||||
2015 | 148 | |||||||||||||||||||||||||||
2016 | 142 | |||||||||||||||||||||||||||
2017 | 90 | |||||||||||||||||||||||||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2012 | ||||||||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES Disclosure [Abstract] | ||||||||
Schedule of Accounts Payable and Accrued Expenses [Table Text Block] | Accounts payable and accrued expenses consisted of the following (in millions): | |||||||
December 31, | 2012 | 2011 | ||||||
Accrued marketing | $ | 2,231 | $ | 2,286 | ||||
Other accrued expenses | 2,711 | 2,749 | ||||||
Trade accounts payable | 1,969 | 2,172 | ||||||
Accrued compensation | 1,045 | 1,048 | ||||||
Sales, payroll and other taxes | 389 | 405 | ||||||
Container deposits | 335 | 349 | ||||||
Accounts payable and accrued expenses | $ | 8,680 | $ | 9,009 | ||||
DEBT_AND_BORROWING_ARRANGEMENT1
DEBT AND BORROWING ARRANGEMENTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2012 | ||||||||||||||
Debt and Borrowing Arrangements Disclosure [Abstract] | ||||||||||||||
Components of long-term debt | The Company's long-term debt consisted of the following (in millions, except average rate data): | |||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||
Amount | Average | Amount | Average | |||||||||||
Rate 1 | Rate1 | |||||||||||||
U.S. dollar notes due 2013–2093 | $ | 13,407 | 1.7 | % | $ | 12,270 | 1.9 | % | ||||||
U.S. dollar debentures due 2017–2098 | 2,207 | 3.7 | 2,482 | 4 | ||||||||||
U.S. dollar zero coupon notes due 20202 | 135 | 8.4 | 130 | 8.4 | ||||||||||
Other, due through 20983 | 291 | 4.4 | 584 | 4.8 | ||||||||||
Fair value adjustment4 | 273 | N/A | 231 | N/A | ||||||||||
Total5,6 | $ | 16,313 | 2.1 | % | $ | 15,697 | 2.3 | % | ||||||
Less current portion | 1,577 | 2,041 | ||||||||||||
Long-term debt | $ | 14,736 | $ | 13,656 | ||||||||||
1 | These rates represent the weighted-average effective interest rate on the balances outstanding as of year end, as adjusted for the effects of interest rate swap agreements as well as fair value adjustments, if applicable. Refer to Note 5 for a more detailed discussion on interest rate management. | |||||||||||||
2 | This amount is shown net of unamortized discounts of $36 million and $41 million as of December 31, 2012 and 2011, respectively. | |||||||||||||
3 | As of December 31, 2012, the amount shown includes $90 million of debt instruments that are due through 2022. | |||||||||||||
4 | Refer to Note 5 for additional information about our fair value hedging strategy. | |||||||||||||
5 | As of December 31, 2012 and 2011, the fair value of our long-term debt, including the current portion, was $17,157 million and $16,360 million, respectively. The fair value of our long-term debt is estimated based on quoted prices for those or similar instruments. | |||||||||||||
6 | The above notes and debentures include various restrictions, none of which is presently significant to our Company. | |||||||||||||
Schedule of Maturities of Long-term Debt | Maturities of long-term debt for the five years succeeding December 31, 2012, are as follows (in millions): | |||||||||||||
Maturities of | ||||||||||||||
Long-Term Debt | ||||||||||||||
2013 | $ | 1,577 | ||||||||||||
2014 | 2,633 | |||||||||||||
2015 | 2,451 | |||||||||||||
2016 | 1,705 | |||||||||||||
2017 | 1,439 | |||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Dec. 31, 2012 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Lease payments under noncancelable operating leases | The following table summarizes our minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one year as of December 31, 2012 (in millions): | |||
Years Ending December 31, | Operating Lease Payments | |||
2013 | $ | 233 | ||
2014 | 162 | |||
2015 | 128 | |||
2016 | 101 | |||
2017 | 72 | |||
Thereafter | 235 | |||
Total minimum operating lease payments1 | $ | 931 | ||
1 | Income associated with sublease arrangements is not significant. |
STOCK_COMPENSATION_PLANS_Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2012 | |||||||||||||
STOCK COMPENSATION PLANS [Abstract] | |||||||||||||
Weighted-average fair value of options granted and the weighted-average assumptions used in the Black Scholes Merton option pricing model for such grants | The weighted-average fair value of options granted during the past three years and the weighted-average assumptions used in the Black-Scholes-Merton option-pricing model for such grants were as follows: | ||||||||||||
2012 | 2011 | 2010 | |||||||||||
As Adjusted | |||||||||||||
Fair value of options at grant date | $ | 3.8 | $ | 4.64 | $ | 4.7 | |||||||
Dividend yield1 | 2.7 | % | 2.7 | % | 2.9 | % | |||||||
Expected volatility2 | 18 | % | 19 | % | 20 | % | |||||||
Risk-free interest rate3 | 1 | % | 2.3 | % | 3 | % | |||||||
Expected term of the option4 | 5 years | 5 years | 6 years | ||||||||||
1 | The dividend yield is the calculated yield on the Company's stock at the time of the grant. | ||||||||||||
2 | Expected volatility is based on implied volatilities from traded options on the Company's stock, historical volatility of the Company's stock and other factors. | ||||||||||||
3 | The risk-free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. | ||||||||||||
4 | The expected term of the option represents the period of time that options granted are expected to be outstanding and is derived by analyzing historic exercise behavior. | ||||||||||||
Stock option activity for all stock option plans | Stock option activity for all stock option plans for the year ended December 31, 2012, was as follows: | ||||||||||||
Shares | Weighted-Average | Weighted-Average | Aggregate | ||||||||||
(In millions) | Exercise Price | Remaining | Intrinsic Value | ||||||||||
Contractual Life | (In millions) | ||||||||||||
Outstanding on January 1, 2012 — As Adjusted | 323 | $ | 25.62 | ||||||||||
Granted | 53 | 34.4 | |||||||||||
Exercised | (61 | ) | 24.43 | ||||||||||
Forfeited/expired | (6 | ) | 30.01 | ||||||||||
Outstanding on December 31, 20121 | 309 | $ | 27.27 | 5.82 years | $ | 2,777 | |||||||
Expected to vest at December 31, 2012 | 305 | $ | 27.2 | 5.79 years | $ | 2,765 | |||||||
Exercisable on December 31, 2012 | 194 | $ | 24.92 | 4.41 years | $ | 2,200 | |||||||
1 | Includes 4 million stock option replacement awards in connection with our acquisition of CCE's former North America business in 2010. These options had a weighted-average exercise price of $18.32, and generally vest over 3 years and expire 10 years from the original date of grant. | ||||||||||||
Summary of information about performance share units based on the Target Award amounts in the performance share unit agreements | The following table summarizes information about performance share units based on the target award amounts in the performance share unit agreements: | ||||||||||||
Share Units | Weighted-Average | ||||||||||||
(In thousands) | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Outstanding on January 1, 2012 — As Adjusted | 11,366 | $ | 25.41 | ||||||||||
Granted | 7,034 | 29.95 | |||||||||||
Paid in cash equivalent | (16 | ) | 27.3 | ||||||||||
Canceled/forfeited | (800 | ) | 27.71 | ||||||||||
Outstanding on December 31, 20121 | 17,584 | $ | 28.01 | ||||||||||
1 | The outstanding performance share units as of December 31, 2012, at the threshold award and maximum award levels were 8.8 million and 26.4 million, respectively. | ||||||||||||
Summary of conversion of performance share units to restricted stock and restricted stock units | The following table summarizes information about the conversions of performance share units to restricted stock and restricted stock units: | ||||||||||||
Share Units | Weighted-Average | ||||||||||||
(In thousands) | Grant-Date | ||||||||||||
Fair Value1 | |||||||||||||
Nonvested on January 1, 2012 — As Adjusted2 | 4,444 | $ | 26.53 | ||||||||||
Vested and released | (4,302 | ) | 26.53 | ||||||||||
Canceled/forfeited | (44 | ) | 26.54 | ||||||||||
Nonvested on December 31, 20122 | 98 | $ | 26.54 | ||||||||||
1 | The weighted-average grant-date fair value is based on the fair values of the performance share units granted. | ||||||||||||
2 | The nonvested shares as of January 1, 2012, and December 31, 2012, are presented at the performance share units certified award amount. |
PENSION_AND_OTHER_POSTRETIREME1
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans [Abstract] | ||||||||||||||||||||||||
Changes in benefit obligations and the fair value of plan assets for our benefit plans | The following table sets forth the changes in benefit obligations and the fair value of plan assets for our benefit plans (in millions): | |||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
Benefit obligation at beginning of year1 | $ | 8,255 | $ | 7,292 | $ | 953 | $ | 889 | ||||||||||||||||
Service cost | 291 | 249 | 34 | 32 | ||||||||||||||||||||
Interest cost | 388 | 391 | 43 | 45 | ||||||||||||||||||||
Foreign currency exchange rate changes | (7 | ) | 30 | 3 | 2 | |||||||||||||||||||
Amendments | (3 | ) | (57 | ) | (2 | ) | (12 | ) | ||||||||||||||||
Actuarial loss (gain) | 1,259 | 773 | 115 | 45 | ||||||||||||||||||||
Benefits paid2 | (420 | ) | (440 | ) | (53 | ) | (63 | ) | ||||||||||||||||
Settlements | (35 | ) | (24 | ) | — | — | ||||||||||||||||||
Curtailments | 6 | — | — | — | ||||||||||||||||||||
Special termination benefits | 1 | 8 | — | 3 | ||||||||||||||||||||
Other3 | (42 | ) | 33 | 11 | 12 | |||||||||||||||||||
Benefit obligation at end of year1 | $ | 9,693 | $ | 8,255 | $ | 1,104 | $ | 953 | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 6,171 | $ | 5,497 | $ | 185 | $ | 187 | ||||||||||||||||
Actual return on plan assets | 822 | 73 | 16 | (4 | ) | |||||||||||||||||||
Employer contributions | 1,056 | 1,001 | — | — | ||||||||||||||||||||
Foreign currency exchange rate changes | (17 | ) | (1 | ) | — | — | ||||||||||||||||||
Benefits paid | (366 | ) | (374 | ) | (2 | ) | (1 | ) | ||||||||||||||||
Settlements | (34 | ) | (27 | ) | — | — | ||||||||||||||||||
Other3 | (48 | ) | 2 | 3 | 3 | |||||||||||||||||||
Fair value of plan assets at end of year | $ | 7,584 | $ | 6,171 | $ | 202 | $ | 185 | ||||||||||||||||
Net liability recognized | $ | (2,109 | ) | $ | (2,084 | ) | $ | (902 | ) | $ | (768 | ) | ||||||||||||
1 | For pension benefit plans, the benefit obligation is the projected benefit obligation. For other benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The accumulated benefit obligation for our pension plans was $9,345 million and $7,958 million as of December 31, 2012 and 2011, respectively. | |||||||||||||||||||||||
2 | Benefits paid to pension plan participants during 2012 and 2011 included $54 million and $66 million, respectively, in payments related to unfunded pension plans that were paid from Company assets. Benefits paid to participants of other benefit plans during 2012 and 2011 included $51 million and $62 million, respectively, that were paid from Company assets. | |||||||||||||||||||||||
3 | In 2012, primarily relates to the transfer of assets and liabilities associated with the Company's consolidated Philippine bottling operations to assets held for sale and liabilities held for sale as of December 31, 2012. Refer to Note 2 for additional information. | |||||||||||||||||||||||
Pension and other benefit amounts recognized in consolidated balance sheets | Pension and other benefit amounts recognized in our consolidated balance sheets are as follows (in millions): | |||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Noncurrent asset | $ | 395 | $ | 468 | $ | — | $ | — | ||||||||||||||||
Current liability | (73 | ) | (68 | ) | (21 | ) | (21 | ) | ||||||||||||||||
Long-term liability | (2,431 | ) | (2,484 | ) | (881 | ) | (747 | ) | ||||||||||||||||
Net liability recognized | $ | (2,109 | ) | $ | (2,084 | ) | $ | (902 | ) | $ | (768 | ) | ||||||||||||
Schedule of pension plans with projected benefit obligation in excess of fair value of plan assets | For these plans, the projected benefit obligations and the fair value of plan assets were as follows (in millions): | |||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||
Projected benefit obligation | $ | 9,161 | $ | 7,591 | ||||||||||||||||||||
Fair value of plan assets | 6,659 | 5,048 | ||||||||||||||||||||||
Accumulated benefit obligations in excess of fair value of plan assets | For these plans, the accumulated benefit obligations and the fair value of plan assets were as follows (in millions): | |||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||
Accumulated benefit obligation | $ | 8,736 | $ | 7,277 | ||||||||||||||||||||
Fair value of plan assets | 6,546 | 4,998 | ||||||||||||||||||||||
Total pension assets for U.S. and non-U.S. plans | The following table presents total assets for our U.S. and non-U.S. pension plans (in millions): | |||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Cash and cash equivalents | $ | 299 | $ | 104 | $ | 87 | $ | 123 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S.-based companies | 1,844 | 1,362 | 37 | 33 | ||||||||||||||||||||
International-based companies | 324 | 630 | 640 | 323 | ||||||||||||||||||||
Fixed-income securities: | ||||||||||||||||||||||||
Government bonds | 399 | 358 | 163 | 415 | ||||||||||||||||||||
Corporate bonds and debt securities | 856 | 669 | 126 | 49 | ||||||||||||||||||||
Mutual, pooled and commingled funds1 | 1,057 | 323 | 453 | 406 | ||||||||||||||||||||
Hedge funds/limited partnerships | 496 | 458 | 29 | 31 | ||||||||||||||||||||
Real estate | 248 | 256 | 9 | 14 | ||||||||||||||||||||
Other | 26 | 114 | 491 | 503 | ||||||||||||||||||||
Total pension plan assets2 | $ | 5,549 | $ | 4,274 | $ | 2,035 | $ | 1,897 | ||||||||||||||||
1 | Mutual, pooled and commingled funds include investments in equity securities, fixed-income securities and combinations of both. There are a significant number of mutual, pooled and commingled funds from which investors can choose. The selection of the type of fund is dictated by the specific investment objectives and needs of a given plan. These objectives and needs vary greatly between plans. | |||||||||||||||||||||||
2 | Fair value disclosures related to our pension assets are included in Note 16. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy on which the fair value measurements in their entirety fall; a reconciliation of the beginning and ending balances of Level 3 assets; and information about the valuation techniques and inputs used to measure the fair value of our pension and other postretirement assets. | |||||||||||||||||||||||
Other postretirement benefit plan assets | The following table presents total assets for our other postretirement benefit plans (in millions): | |||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||
Cash and cash equivalents | $ | 13 | $ | 86 | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||
U.S.-based companies | 81 | 70 | ||||||||||||||||||||||
International-based companies | 4 | 13 | ||||||||||||||||||||||
Fixed-income securities: | ||||||||||||||||||||||||
Government bonds | 78 | 2 | ||||||||||||||||||||||
Corporate bonds and debt securities | 5 | 6 | ||||||||||||||||||||||
Mutual, pooled and commingled funds | 16 | 3 | ||||||||||||||||||||||
Hedge funds/limited partnerships | 3 | 2 | ||||||||||||||||||||||
Real estate | 2 | 2 | ||||||||||||||||||||||
Other | — | 1 | ||||||||||||||||||||||
Total other postretirement benefit plan assets1 | $ | 202 | $ | 185 | ||||||||||||||||||||
1 | Fair value disclosures related to our other postretirement benefit plan assets are included in Note 16. Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy on which the fair value measurements in their entirety fall; a reconciliation of the beginning and ending balances of Level 3 assets; and information about the valuation techniques and inputs used to measure the fair value of our pension and other postretirement assets. | |||||||||||||||||||||||
Net periodic benefit cost for pension and other postretirement benefit plans | Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following (in millions): | |||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||
As Adjusted | ||||||||||||||||||||||||
Service cost | $ | 291 | $ | 249 | $ | 143 | $ | 34 | $ | 32 | $ | 24 | ||||||||||||
Interest cost | 388 | 391 | 260 | 43 | 45 | 30 | ||||||||||||||||||
Expected return on plan assets | (573 | ) | (508 | ) | (285 | ) | (8 | ) | (8 | ) | (8 | ) | ||||||||||||
Amortization of prior service cost (credit) | (2 | ) | 5 | 5 | (52 | ) | (61 | ) | (61 | ) | ||||||||||||||
Amortization of actuarial loss | 137 | 82 | 83 | 6 | 2 | 3 | ||||||||||||||||||
Net periodic benefit cost (credit) | $ | 241 | $ | 219 | $ | 206 | $ | 23 | $ | 10 | $ | (12 | ) | |||||||||||
Settlement charge | 3 | 3 | 6 | — | — | — | ||||||||||||||||||
Curtailment charge | 6 | — | — | — | — | — | ||||||||||||||||||
Special termination benefits1 | 1 | 8 | — | — | 3 | 1 | ||||||||||||||||||
Total cost (credit) recognized in the statements of income | $ | 251 | $ | 230 | $ | 212 | $ | 23 | $ | 13 | $ | (11 | ) | |||||||||||
1 | The special termination benefits primarily relate to the Company's productivity, restructuring and integration initiatives. Refer to Note 18 for additional information related to our productivity, restructuring and integration initiatives. | |||||||||||||||||||||||
Changes in AOCI for benefit plans | The following table sets forth the changes in AOCI for our benefit plans (in millions, pretax): | |||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
As Adjusted | ||||||||||||||||||||||||
Beginning balance in AOCI | $ | (2,169 | ) | $ | (1,101 | ) | $ | (34 | ) | $ | 72 | |||||||||||||
Recognized prior service cost (credit) | (2 | ) | 5 | (52 | ) | (61 | ) | |||||||||||||||||
Recognized net actuarial loss (gain) | 140 | 85 | 6 | 2 | ||||||||||||||||||||
Prior service credit (cost) arising in current year | 3 | 57 | 2 | 12 | ||||||||||||||||||||
Net actuarial (loss) gain arising in current year | (1,009 | ) | (1,208 | ) | (107 | ) | (57 | ) | ||||||||||||||||
Foreign currency translation gain (loss) | 5 | (7 | ) | (1 | ) | (2 | ) | |||||||||||||||||
Ending balance in AOCI | $ | (3,032 | ) | $ | (2,169 | ) | $ | (186 | ) | $ | (34 | ) | ||||||||||||
Amounts in AOCI for benefit plans (pretax) | The following table sets forth amounts in AOCI for our benefit plans (in millions, pretax): | |||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
As Adjusted | ||||||||||||||||||||||||
Prior service credit (cost) | $ | 16 | $ | 14 | $ | 23 | $ | 73 | ||||||||||||||||
Net actuarial loss | (3,048 | ) | (2,183 | ) | (209 | ) | (107 | ) | ||||||||||||||||
Ending balance in AOCI | $ | (3,032 | ) | $ | (2,169 | ) | $ | (186 | ) | $ | (34 | ) | ||||||||||||
Amounts in AOCI expected to be recognized as components of net periodic pension cost in next fiscal year | Amounts in AOCI expected to be recognized as components of net periodic pension cost in 2013 are as follows (in millions, pretax): | |||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
Amortization of prior service cost (credit) | $ | (3 | ) | $ | (10 | ) | ||||||||||||||||||
Amortization of actuarial loss | 238 | 11 | ||||||||||||||||||||||
$ | 235 | $ | 1 | |||||||||||||||||||||
Certain weighted average assumptions used in computing the benefit obligations and net periodic benefit cost | Certain weighted-average assumptions used in computing the benefit obligations are as follows: | |||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Discount rate | 4 | % | 4.75 | % | 4 | % | 4.75 | % | ||||||||||||||||
Rate of increase in compensation levels | 3.5 | % | 3.25 | % | N/A | N/A | ||||||||||||||||||
Certain weighted-average assumptions used in computing net periodic benefit cost are as follows: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
December 31, | 2012 | 2011 | 2010 | 2012 | 2011 | 2010 | ||||||||||||||||||
Discount rate | 4.75 | % | 5.5 | % | 5.75 | % | 4.75 | % | 5.25 | % | 5.5 | % | ||||||||||||
Rate of increase in compensation levels | 3.25 | % | 4 | % | 3.75 | % | N/A | N/A | N/A | |||||||||||||||
Expected long-term rate of return on plan assets | 8.25 | % | 8.25 | % | 8 | % | 4.75 | % | 4.75 | % | 4.75 | % | ||||||||||||
Assumed health care cost trend rates | The assumed health care cost trend rates are as follows: | |||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||
Health care cost trend rate assumed for next year | 8 | % | 8 | % | ||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | ||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2019 | 2018 | ||||||||||||||||||||||
Estimated future benefit payments for funded and unfunded plans | Our estimated future benefit payments for funded and unfunded plans are as follows (in millions): | |||||||||||||||||||||||
Year Ended December 31, | 2013 | 2014 | 2015 | 2016 | 2017 | 2018-2022 | ||||||||||||||||||
Pension benefit payments | $ | 452 | $ | 473 | $ | 493 | $ | 510 | $ | 542 | $ | 2,929 | ||||||||||||
Other benefit payments1 | 58 | 61 | 64 | 65 | 66 | 352 | ||||||||||||||||||
Total estimated benefit payments | $ | 510 | $ | 534 | $ | 557 | $ | 575 | $ | 608 | $ | 3,281 | ||||||||||||
1 | The expected benefit payments for our other postretirement benefit plans are net of estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Federal subsidies are estimated to be approximately $18 million for the period 2013–2017, and $22 million for the period 2018–2022. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||
Schedule of income before income taxes | Income before income taxes consisted of the following (in millions): | |||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||
As Adjusted | ||||||||||||||||
United States1 | $ | 3,526 | $ | 3,029 | $ | 7,188 | ||||||||||
International | 8,283 | 8,429 | 7,019 | |||||||||||||
Total | $ | 11,809 | $ | 11,458 | $ | 14,207 | ||||||||||
1 | In 2010, the Company's U.S. income before income taxes included a $4,978 million gain due to the remeasurement of our equity investment in CCE to fair value upon our acquisition of CCE's former North America business. Refer to Note 2 for additional information. | |||||||||||||||
Schedule of income tax expense (benefit) | Income tax expense consisted of the following for the years ended December 31, 2012, 2011 and 2010 (in millions): | |||||||||||||||
United States | State and Local | International | Total | |||||||||||||
2012 | ||||||||||||||||
Current | $ | 602 | $ | 74 | $ | 1,415 | $ | 2,091 | ||||||||
Deferred | 936 | 33 | (337 | ) | 632 | |||||||||||
2011 — As Adjusted | ||||||||||||||||
Current | $ | 286 | $ | 66 | $ | 1,425 | $ | 1,777 | ||||||||
Deferred | 898 | 27 | 110 | 1,035 | ||||||||||||
2010 — As Adjusted | ||||||||||||||||
Current | $ | 469 | $ | 85 | $ | 1,212 | $ | 1,766 | ||||||||
Deferred | 586 | 2 | 16 | 604 | ||||||||||||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | A reconciliation of the statutory U.S. federal tax rate and our effective tax rate is as follows: | |||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||
As Adjusted | ||||||||||||||||
Statutory U.S. federal tax rate | 35 | % | 35 | % | 35 | % | ||||||||||
State and local income taxes — net of federal benefit | 1.1 | 0.9 | 0.6 | |||||||||||||
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate | (9.5 | ) | 1,2 | (9.5 | ) | 5,6,7 | (5.6 | ) | 15 | |||||||
Reversal of valuation allowances | (2.4 | ) | 3 | — | — | |||||||||||
Equity income or loss | (2.0 | ) | (1.4 | ) | 8 | (1.9 | ) | 16 | ||||||||
CCE transaction | — | — | (12.5 | ) | 17,18 | |||||||||||
Sale of Norwegian and Swedish bottling operations | — | — | 9 | 0.4 | 19 | |||||||||||
Other operating charges | 0.4 | 4 | 0.3 | 10 | 0.4 | 20 | ||||||||||
Other — net | 0.5 | (0.8 | ) | 11,12,13,14 | 0.3 | 21,22 | ||||||||||
Effective tax rate | 23.1 | % | 24.5 | % | 16.7 | % | ||||||||||
1 | Includes a tax expense of $133 million (or a 1.1 percent impact on our effective tax rate) related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions. | |||||||||||||||
2 | Includes a tax expense of $57 million on pretax net gains of $76 million (or a 0.3 percent impact on our effective tax rate) related to the following: a gain recognized as a result of the merger of Embotelladora Andina S.A. ("Andina") and Embotelladoras Coca-Cola Polar S.A. ("Polar"); a gain recognized as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its own stock at a per share amount greater than the carrying value of the Company's per share investment; the loss recognized on the pending sale of a majority ownership interest in our consolidated Philippine bottling operations to Coca-Cola FEMSA; and the expense recorded for the premium the Company paid over the publicly traded market price to acquire an ownership interest in Mikuni. Refer to Note 17. | |||||||||||||||
3 | Relates to a net tax benefit of $283 million associated with the reversal of valuation allowances in certain of the Company's foreign jurisdictions. | |||||||||||||||
4 | Includes a tax benefit of $95 million on pretax charges of $416 million (or a 0.4 percent impact on our effective tax rate) primarily related to the Company's productivity and reinvestment program as well as other restructuring initiatives; the refinement of previously established accruals related to the Company's 2008–2011 productivity initiatives; and the refinement of previously established accruals related to the Company's integration of CCE's former North America business. Refer to Note 18. | |||||||||||||||
5 | Includes a tax benefit of $6 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions. | |||||||||||||||
6 | Includes a zero percent effective tax rate on pretax charges of $17 million due to the impairment of available-for-sale securities. Refer to Note 3 and Note 17. | |||||||||||||||
7 | Includes a tax expense of $299 million on pretax net gains of $641 million (or a 0.7 percent impact on our effective tax rate) related to the net gain recognized as a result of the merger of Embotelladoras Arca, S.A.B. de C.V. ("Arca") and Grupo Continental S.A.B. ("Contal"); the gain recognized on the sale of our investment in Embonor; and gains the Company recognized as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its own stock at per share amounts greater than the carrying value of the Company's per share investment. These gains were partially offset by charges associated with certain of the Company's equity method investments in Japan. Refer to Note 17. | |||||||||||||||
8 | Includes a tax benefit of $7 million on pretax net charges of $53 million (or a 0.1 percent impact on our effective tax rate) related to our proportionate share of asset impairments and restructuring charges recorded by certain of our equity method investees. Refer to Note 17. | |||||||||||||||
9 | Includes a tax benefit of $2 million on pretax charges of $5 million related to the finalization of working capital adjustments on the sale of our Norwegian and Swedish bottling operations. Refer to Note 2 and Note 17. | |||||||||||||||
10 | Includes a tax benefit of $224 million on pretax charges of $732 million (or a 0.3 percent impact on our effective tax rate) primarily related to the Company's productivity, integration and restructuring initiatives; transaction costs incurred in connection with the merger of Arca and Contal; costs associated with the earthquake and tsunami that devastated northern and eastern Japan; and costs associated with the flooding in Thailand. Refer to Note 17. | |||||||||||||||
11 | Includes a tax benefit of $8 million on pretax charges of $19 million related to the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's former North America business. | |||||||||||||||
12 | Includes a tax benefit of $3 million on pretax net charges of $9 million related to the repurchase and/or exchange of certain long-term debt assumed in connection with our acquisition of CCE's former North America business as well as the early extinguishment of certain other long-term debt. Refer to Note 10. | |||||||||||||||
13 | Includes a tax benefit of $14 million on pretax charges of $41 million related to the impairment of an investment in an entity accounted for under the equity method of accounting. Refer to Note 17. | |||||||||||||||
14 | Includes a tax benefit of $2 million related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in certain domestic jurisdictions. | |||||||||||||||
15 | Includes a tax expense of $265 million (or a 1.9 percent impact on our effective tax rate) primarily related to deferred tax expense on certain current year undistributed foreign earnings that are not considered indefinitely reinvested and amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. | |||||||||||||||
16 | Includes a tax benefit of $9 million on pretax net charges of $66 million (or a 0.1 percent impact on our effective tax rate) related to charges recorded by our equity method investees. Refer to Note 17. | |||||||||||||||
17 | Includes a tax benefit of $34 million on a pretax gain of $4,978 million (or a reduction of 12.5 percent on our effective tax rate) related to the remeasurement of our equity investment in CCE to fair value upon our acquisition of CCE's former North America business. The tax benefit reflects the impact of reversing deferred tax liabilities associated with our equity investment in CCE prior to the acquisition. Refer to Note 2. | |||||||||||||||
18 | Includes a tax benefit of $99 million on pretax charges of $265 million related to the write-off of preexisting relationships with CCE. Refer to Note 2. | |||||||||||||||
19 | Includes a tax expense of $261 million on a pretax gain of $597 million (or a 0.4 percent impact on our effective tax rate) related to the sale of our Norwegian and Swedish bottling operations. Refer to Note 2. | |||||||||||||||
20 | Includes a tax benefit of $223 million on pretax charges of $819 million (or a 0.4 percent impact on our effective tax rate) primarily related to the Company's productivity, integration and restructuring initiatives, transaction costs and charitable contributions. Refer to Note 17. | |||||||||||||||
21 | Includes a tax benefit of $114 million on pretax charges of $493 million (or a 0.5 percent impact on our effective tax rate) related to the repurchase of certain long-term debt and costs associated with the settlement of treasury rate locks issued in connection with the debt tender offer; the loss related to the remeasurement of our Venezuelan subsidiary's net assets; other-than-temporary impairment charges; and a donation of preferred shares in one of our equity method investees. Refer to Note 17. | |||||||||||||||
22 | Includes a tax expense of $31 million (or a 0.2 percent impact on our effective tax rate) related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, and other tax matters in certain domestic jurisdictions. | |||||||||||||||
Reconciliation of the gross balance of unrecognized tax benefit | A reconciliation of the changes in the gross balance of unrecognized tax benefit amounts is as follows (in millions): | |||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||
Beginning balance of unrecognized tax benefits | $ | 320 | $ | 387 | $ | 354 | ||||||||||
Increases related to prior period tax positions | 69 | 9 | 26 | |||||||||||||
Decreases related to prior period tax positions | (15 | ) | (19 | ) | (10 | ) | ||||||||||
Increases related to current period tax positions | 23 | 6 | 33 | |||||||||||||
Decreases related to current period tax positions | — | (1 | ) | — | ||||||||||||
Decreases related to settlements with taxing authorities | (45 | ) | (5 | ) | — | |||||||||||
Reductions as a result of a lapse of the applicable statute of limitations | (36 | ) | (46 | ) | (1 | ) | ||||||||||
Increase related to acquisition of CCE's former North America business | — | — | 6 | |||||||||||||
Increases (decreases) from effects of foreign currency exchange rates | (14 | ) | (11 | ) | (21 | ) | ||||||||||
Ending balance of unrecognized tax benefits | $ | 302 | $ | 320 | $ | 387 | ||||||||||
Deferred tax assets and liabilities | The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities consist of the following (in millions): | |||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||
Deferred tax assets: | ||||||||||||||||
Property, plant and equipment | $ | 89 | $ | 224 | ||||||||||||
Trademarks and other intangible assets | 77 | 68 | ||||||||||||||
Equity method investments (including foreign currency translation adjustment) | 209 | 278 | ||||||||||||||
Derivative financial instruments | 116 | 43 | ||||||||||||||
Other liabilities | 1,178 | 1,257 | ||||||||||||||
Benefit plans | 1,808 | 2,022 | ||||||||||||||
Net operating/capital loss carryforwards | 782 | 818 | ||||||||||||||
Other | 320 | 418 | ||||||||||||||
Gross deferred tax assets | $ | 4,579 | $ | 5,128 | ||||||||||||
Valuation allowances | (487 | ) | (859 | ) | ||||||||||||
Total deferred tax assets1,2 | $ | 4,092 | $ | 4,269 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||||
Property, plant and equipment | $ | (2,204 | ) | $ | (2,039 | ) | ||||||||||
Trademarks and other intangible assets | (4,133 | ) | (4,201 | ) | ||||||||||||
Equity method investments (including foreign currency translation adjustment) | (712 | ) | (816 | ) | ||||||||||||
Derivative financial instruments | (140 | ) | (129 | ) | ||||||||||||
Other liabilities | (144 | ) | (129 | ) | ||||||||||||
Benefit plans | (495 | ) | (445 | ) | ||||||||||||
Other | (929 | ) | (753 | ) | ||||||||||||
Total deferred tax liabilities3 | $ | (8,757 | ) | $ | (8,512 | ) | ||||||||||
Net deferred tax liabilities | $ | (4,665 | ) | $ | (4,243 | ) | ||||||||||
1 | Noncurrent deferred tax assets of $403 million and $243 million were included in the line item other assets in our consolidated balance sheets as of December 31, 2012 and 2011, respectively. | |||||||||||||||
2 | Current deferred tax assets of $244 million and $227 million were included in the line item prepaid expenses and other assets in our consolidated balance sheets as of December 31, 2012 and 2011, respectively. | |||||||||||||||
3 | Current deferred tax liabilities of $331 million and $19 million were included in the line item accounts payable and accrued expenses in our consolidated balance sheets as of December 31, 2012 and 2011, respectively. | |||||||||||||||
Deferred tax asset valuation allowances | An analysis of our deferred tax asset valuation allowances is as follows (in millions): | |||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||
Balance at beginning of year | $ | 859 | $ | 950 | $ | 681 | ||||||||||
Increase due to our acquisition of CCE's former North America business | — | — | 291 | |||||||||||||
Additions | 126 | 138 | 115 | |||||||||||||
Decrease due to transfer to assets held for sale | (146 | ) | — | — | ||||||||||||
Deductions | (352 | ) | (229 | ) | (137 | ) | ||||||||||
Balance at end of year | $ | 487 | $ | 859 | $ | 950 | ||||||||||
OTHER_COMPREHENSIVE_INCOME_Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
OTHER COMPREHENSIVE INCOME [Abstract] | ||||||||||||
AOCI attributable to the shareowners of The Coca-Cola Company | AOCI attributable to shareowners of The Coca-Cola Company consisted of the following (in millions): | |||||||||||
December 31, | 2012 | 2011 | ||||||||||
As Adjusted | ||||||||||||
Foreign currency translation adjustment | $ | (1,665 | ) | $ | (1,445 | ) | ||||||
Accumulated derivative net gains (losses) | 46 | (53 | ) | |||||||||
Unrealized net gains (losses) on available-for-sale securities | 338 | 160 | ||||||||||
Adjustments to pension and other benefit liabilities | (2,104 | ) | (1,436 | ) | ||||||||
Accumulated other comprehensive income (loss) | $ | (3,385 | ) | $ | (2,774 | ) | ||||||
OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI | OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI, for the years ended December 31, 2012, 2011 and 2010, is as follows (in millions): | |||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | ||||||||||
2012 | ||||||||||||
Net foreign currency translation adjustment | $ | (219 | ) | $ | (1 | ) | $ | (220 | ) | |||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the year | 77 | (29 | ) | 48 | ||||||||
Reclassification adjustments recognized in net income | 82 | (31 | ) | 51 | ||||||||
Net gain (loss) on derivatives1 | 159 | (60 | ) | 99 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the year | 248 | (64 | ) | 184 | ||||||||
Reclassification adjustments recognized in net income | (6 | ) | — | (6 | ) | |||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 242 | (64 | ) | 178 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the year | (1,132 | ) | 405 | (727 | ) | |||||||
Reclassification adjustments recognized in net income | 92 | (33 | ) | 59 | ||||||||
Net change in pension and other benefit liabilities3 | (1,040 | ) | 372 | (668 | ) | |||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (858 | ) | $ | 247 | $ | (611 | ) | ||||
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 13 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | ||||||||||
2011 — As Adjusted | ||||||||||||
Net foreign currency translation adjustment | $ | (639 | ) | $ | (1 | ) | $ | (640 | ) | |||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the year | (3 | ) | (1 | ) | (4 | ) | ||||||
Reclassification adjustments recognized in net income | 243 | (94 | ) | 149 | ||||||||
Net gain (loss) on derivatives1 | 240 | (95 | ) | 145 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the year | (4 | ) | (8 | ) | (12 | ) | ||||||
Reclassification adjustments recognized in net income | 10 | (5 | ) | 5 | ||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 6 | (13 | ) | (7 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the year | (1,206 | ) | 423 | (783 | ) | |||||||
Reclassification adjustments recognized in net income | 31 | (11 | ) | 20 | ||||||||
Net change in pension and other benefit liabilities3 | (1,175 | ) | 412 | (763 | ) | |||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (1,568 | ) | $ | 303 | $ | (1,265 | ) | ||||
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 13 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Before-Tax Amount | Income Tax | After-Tax Amount | ||||||||||
2010 — As Adjusted | ||||||||||||
Net foreign currency translation adjustment | $ | (966 | ) | $ | 31 | $ | (935 | ) | ||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the year | (239 | ) | 108 | (131 | ) | |||||||
Reclassification adjustments recognized in net income | 17 | (6 | ) | 11 | ||||||||
Net gain (loss) on derivatives1 | (222 | ) | 102 | (120 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the year | 115 | (25 | ) | 90 | ||||||||
Reclassification adjustments recognized in net income | 18 | (6 | ) | 12 | ||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 133 | (31 | ) | 102 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the year | 397 | (139 | ) | 258 | ||||||||
Reclassification adjustments recognized in net income | 35 | (11 | ) | 24 | ||||||||
Net change in pension and other benefit liabilities3 | 432 | (150 | ) | 282 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (623 | ) | $ | (48 | ) | $ | (671 | ) | |||
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 13 for additional information related to the Company's pension and other postretirement benefit liabilities. |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||||||||||||
Fair Value Measurements Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | The following tables summarize those assets and liabilities measured at fair value on a recurring basis (in millions): | |||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Trading securities | $ | 146 | $ | 116 | $ | 4 | $ | — | $ | 266 | ||||||||||||||||||||||
Available-for-sale securities | 1,390 | 3,068 | 135 | 2 | — | 4,593 | ||||||||||||||||||||||||||
Derivatives3 | 47 | 583 | — | (116 | ) | 514 | ||||||||||||||||||||||||||
Total assets | $ | 1,583 | $ | 3,767 | $ | 139 | $ | (116 | ) | $ | 5,373 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives3 | $ | 35 | $ | 98 | $ | — | $ | (121 | ) | $ | 12 | |||||||||||||||||||||
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. Refer to Note 5. | |||||||||||||||||||||||||||||||
2 | Primarily related to long-term debt securities that mature in 2018. | |||||||||||||||||||||||||||||||
3 | Refer to Note 5 for additional information related to the composition of our derivative portfolio. | |||||||||||||||||||||||||||||||
December 31, 2011 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Trading securities | $ | 166 | $ | 41 | $ | 4 | $ | — | $ | 211 | ||||||||||||||||||||||
Available-for-sale securities | 1,071 | 214 | 116 | 2 | — | 1,401 | ||||||||||||||||||||||||||
Derivatives3 | 39 | 467 | — | (117 | ) | 389 | ||||||||||||||||||||||||||
Total assets | $ | 1,276 | $ | 722 | $ | 120 | $ | (117 | ) | $ | 2,001 | |||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivatives3 | $ | 5 | $ | 201 | $ | — | $ | (121 | ) | $ | 85 | |||||||||||||||||||||
Total liabilities | $ | 5 | $ | 201 | $ | — | $ | (121 | ) | $ | 85 | |||||||||||||||||||||
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. Refer to Note 5. | |||||||||||||||||||||||||||||||
2 | Primarily related to long-term debt securities that mature in 2018. | |||||||||||||||||||||||||||||||
3 | Refer to Note 5 for additional information related to the composition of our derivative portfolio. | |||||||||||||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis for the years ended December 31, 2012 and 2011, are summarized below (in millions): | |||||||||||||||||||||||||||||||
Gains (Losses) | ||||||||||||||||||||||||||||||||
December 31, | 2012 | 2011 | ||||||||||||||||||||||||||||||
Exchange of investment in equity securities | $ | 185 | 1 | $ | 418 | 5 | ||||||||||||||||||||||||||
Assets held for sale | (108 | ) | 2 | — | ||||||||||||||||||||||||||||
Valuation of shares in equity method investee | 10 | 3 | 122 | 6 | ||||||||||||||||||||||||||||
Cost method investments | (16 | ) | 4 | — | ||||||||||||||||||||||||||||
Equity method investments | — | (41 | ) | 7 | ||||||||||||||||||||||||||||
Available-for-sale securities | — | (17 | ) | 8 | ||||||||||||||||||||||||||||
Inventories | — | (11 | ) | 9 | ||||||||||||||||||||||||||||
Cold-drink equipment | — | (1 | ) | 9 | ||||||||||||||||||||||||||||
Total | $ | 71 | $ | 470 | ||||||||||||||||||||||||||||
1 | As a result of the merger of Andina and Polar, the Company recognized a gain of $185 million on the exchange of shares we previously owned in Polar for shares in Andina. This gain primarily represents the difference between the carrying value of the Polar shares we relinquished and the fair value of the Andina shares we received as a result of the transaction. The gain was calculated based on Level 1 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
2 | The Company and Coca-Cola FEMSA executed a share purchase agreement for the sale of a majority ownership interest in our consolidated Philippine bottling operations. As a result of this agreement, the Company was required to classify our Philippine bottling operations as held for sale in our consolidated balance sheet as of December 31, 2012. We also recognized a loss of $108 million during the year ended December 31, 2012, based on the agreed upon sale price and related transaction costs. The loss was calculated based on Level 3 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
3 | The Company recognized a gain of $92 million as a result of Coca-Cola FEMSA, an equity method investee, 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 we sold a proportionate share of our investment in Coca-Cola FEMSA. This gain was partially offset by a loss of $82 million the Company recognized due to the Company acquiring an ownership interest in Mikuni for which we paid a premium over the publicly traded market price. This premium was expensed on the acquisition date. Subsequent to this transaction, the Company accounts for our investment in Mikuni under the equity method of accounting. The gain and loss described above were determined using Level 1 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
4 | The Company recognized impairment charges of $16 million due to other-than-temporary declines in the fair values of certain cost method investments. These charges were determined using Level 3 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
5 | As a result of the merger of Arca and Contal, the Company recognized a gain of $418 million on the exchange of the shares we previously owned in Contal for shares in the newly formed entity Arca Contal. The gain represents the difference between the carrying value of the Contal shares we relinquished and the fair value of the Arca Contal shares we received as a result of the transaction. The gain and initial carrying value of our investment were calculated based on Level 1 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
6 | The Company recognized a net gain of $122 million, primarily as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its own stock at per share amounts 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 we sold a proportionate share of our investment in Coca-Cola FEMSA. The gains the Company recognized as a result of the previous transactions were partially offset by charges associated with certain of the Company's equity method investments in Japan. The gains and charges were determined using Level 1 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
7 | The Company recognized impairment charges of $41 million related to an investment in an entity accounted for under the equity method of accounting. Subsequent to the recognition of these impairment charges, the Company's remaining financial exposure related to this entity is not significant. This charge was determined using Level 3 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
8 | The Company recognized impairment charges of $17 million due to the other-than-temporary decline in the fair values of certain available-for-sale securities. These charges were determined using Level 1 inputs. Refer to Note 17. | |||||||||||||||||||||||||||||||
9 | These assets primarily consisted of Company-owned inventory as well as cold-drink equipment that were damaged or lost as a result of the natural disasters in Japan on March 11, 2011. We recorded impairment charges of $11 million and $1 million related to Company-owned inventory and cold-drink equipment, respectively. These charges were determined using Level 3 inputs based on the carrying value of the inventory and cold-drink equipment prior to the disasters. Refer to Note 17. | |||||||||||||||||||||||||||||||
Summary of the fair value of pension plan assets for U.S. and non-U.S. pension plans | The following table summarizes the levels within the fair value hierarchy used to determine the fair value of our pension plan assets for our U.S. and non-U.S. pension plans as of December 31, 2012 and 2011 (in millions): | |||||||||||||||||||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 187 | $ | 199 | $ | — | $ | 386 | $ | 152 | $ | 75 | $ | — | $ | 227 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
U.S.-based companies | 1,847 | 20 | 14 | 1,881 | 1,366 | 15 | 14 | 1,395 | ||||||||||||||||||||||||
International-based companies | 910 | 54 | — | 964 | 865 | 82 | 6 | 953 | ||||||||||||||||||||||||
Fixed-income securities: | ||||||||||||||||||||||||||||||||
Government bonds | — | 562 | — | 562 | — | 773 | — | 773 | ||||||||||||||||||||||||
Corporate bonds and debt securities | — | 982 | — | 982 | — | 718 | — | 718 | ||||||||||||||||||||||||
Mutual, pooled and commingled funds | 504 | 1,006 | — | 1,510 | 167 | 557 | 5 | 729 | ||||||||||||||||||||||||
Hedge funds/limited partnerships | — | 125 | 400 | 525 | — | 140 | 349 | 489 | ||||||||||||||||||||||||
Real estate | — | — | 257 | 257 | — | — | 270 | 270 | ||||||||||||||||||||||||
Other | — | 7 | 510 | 1 | 517 | — | 99 | 518 | 1 | 617 | ||||||||||||||||||||||
Total | $ | 3,448 | $ | 2,955 | $ | 1,181 | $ | 7,584 | $ | 2,550 | $ | 2,459 | $ | 1,162 | $ | 6,171 | ||||||||||||||||
1 | Includes $510 million and $514 million of purchased annuity contracts as of December 31, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||
Reconciliation of the beginning and ending balance of Level 3 assets for U.S. and non-U.S. pension plans | The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for our U.S. and non-U.S. pension plans for the years ended December 31, 2012 and 2011 (in millions): | |||||||||||||||||||||||||||||||
Hedge | Real Estate | Equity | Mutual, | Other | Total | |||||||||||||||||||||||||||
Funds/Limited | Securities | Pooled and | ||||||||||||||||||||||||||||||
Partnerships | Commingled | |||||||||||||||||||||||||||||||
Funds | ||||||||||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 317 | $ | 242 | $ | 15 | $ | 20 | $ | 303 | $ | 897 | ||||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||
Related to assets still held at the reporting date | 9 | 35 | 4 | (5 | ) | 61 | 104 | |||||||||||||||||||||||||
Related to assets sold during the year | (3 | ) | (5 | ) | — | 6 | — | (2 | ) | |||||||||||||||||||||||
Purchases, sales and settlements — net | 26 | (2 | ) | (1 | ) | (16 | ) | 146 | 153 | |||||||||||||||||||||||
Transfers in or out of Level 3 — net | 1 | — | 2 | — | 2 | 5 | ||||||||||||||||||||||||||
Foreign currency translation | (1 | ) | — | — | — | 6 | 5 | |||||||||||||||||||||||||
Balance at end of year | $ | 349 | $ | 270 | $ | 20 | $ | 5 | $ | 518 | 1 | $ | 1,162 | |||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 349 | $ | 270 | $ | 20 | $ | 5 | $ | 518 | $ | 1,162 | ||||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||
Related to assets still held at the reporting date | (8 | ) | 13 | — | — | 1 | 6 | |||||||||||||||||||||||||
Related to assets sold during the year | 24 | 3 | — | — | — | 27 | ||||||||||||||||||||||||||
Purchases, sales and settlements — net | 35 | (27 | ) | — | (5 | ) | (2 | ) | 1 | |||||||||||||||||||||||
Transfers in or out of Level 3 — net | — | (2 | ) | (6 | ) | — | (4 | ) | (12 | ) | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | (3 | ) | (3 | ) | ||||||||||||||||||||||||
Balance at end of year | $ | 400 | $ | 257 | $ | 14 | $ | — | $ | 510 | 1 | $ | 1,181 | |||||||||||||||||||
1 | Includes $510 million and $514 million of purchased annuity contracts as of December 31, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||
Summary of the fair value of postretirement benefit plan assets | The following table summarizes the levels within the fair value hierarchy used to determine the fair value of our other postretirement benefit plan assets as of December 31, 2012 and 2011 (in millions): | |||||||||||||||||||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 1 | Total | Level 1 | Level 2 | Level 3 1 | Total | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | 12 | $ | — | $ | 13 | $ | — | $ | 86 | $ | — | $ | 86 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
U.S.-based companies | 81 | — | — | 81 | 70 | — | — | 70 | ||||||||||||||||||||||||
International-based companies | 4 | — | — | 4 | 13 | — | — | 13 | ||||||||||||||||||||||||
Fixed-income securities: | ||||||||||||||||||||||||||||||||
Government bonds | 75 | 3 | — | 78 | — | 2 | — | 2 | ||||||||||||||||||||||||
Corporate bonds and debt securities | — | 5 | — | 5 | — | 6 | — | 6 | ||||||||||||||||||||||||
Mutual, pooled and commingled funds | 11 | 5 | — | 16 | — | 3 | — | 3 | ||||||||||||||||||||||||
Hedge funds/limited partnerships | — | 1 | 2 | 3 | — | — | 2 | 2 | ||||||||||||||||||||||||
Real estate | — | — | 2 | 2 | — | — | 2 | 2 | ||||||||||||||||||||||||
Other | — | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||
Total | $ | 172 | $ | 26 | $ | 4 | $ | 202 | $ | 83 | $ | 98 | $ | 4 | $ | 185 | ||||||||||||||||
1 | Level 3 assets are not a significant portion of other postretirement benefit plan assets. |
PRODUCTIVITY_INTEGRATION_AND_R1
PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2012 | ||||||||||||||||
PRODUCTIVITY INTEGRATION AND RESTRUCTURING INITIATIVES [Abstract] | ||||||||||||||||
Productivity and Reinvestment | The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts since the commencement of the plan (in millions): | |||||||||||||||
Severance Pay | Outside Services | Other | Total | |||||||||||||
and Benefits | Direct Costs | |||||||||||||||
2012 | ||||||||||||||||
Costs incurred | $ | 21 | $ | 61 | $ | 188 | $ | 270 | ||||||||
Payments | (8 | ) | (55 | ) | (167 | ) | (230 | ) | ||||||||
Noncash and exchange | (1 | ) | — | (13 | ) | (14 | ) | |||||||||
Accrued balance as of December 31 | $ | 12 | $ | 6 | $ | 8 | $ | 26 | ||||||||
Productivity Initiatives | The following table summarizes the balance of accrued expenses related to productivity initiatives and the changes in the accrued amounts (in millions): | |||||||||||||||
Severance Pay | Outside Services | Other | Total | |||||||||||||
and Benefits | Direct Costs | |||||||||||||||
2010 | ||||||||||||||||
Accrued balance as of January 1 | $ | 18 | $ | 9 | $ | 4 | $ | 31 | ||||||||
Costs incurred | 71 | 58 | 61 | 190 | ||||||||||||
Payments | (30 | ) | (61 | ) | (54 | ) | (145 | ) | ||||||||
Noncash and exchange | — | — | (2 | ) | (2 | ) | ||||||||||
Accrued balance as of December 31 | $ | 59 | $ | 6 | $ | 9 | $ | 74 | ||||||||
2011 | ||||||||||||||||
Costs incurred | $ | 59 | $ | 17 | $ | 80 | $ | 156 | ||||||||
Payments | (50 | ) | (21 | ) | (71 | ) | (142 | ) | ||||||||
Noncash and exchange | (20 | ) | 1 | (9 | ) | (28 | ) | |||||||||
Accrued balance as of December 31 | $ | 48 | $ | 3 | $ | 9 | $ | 60 | ||||||||
2012 | ||||||||||||||||
Costs incurred | $ | (8 | ) | $ | — | $ | (2 | ) | $ | (10 | ) | |||||
Payments | (29 | ) | (2 | ) | (3 | ) | (34 | ) | ||||||||
Noncash and exchange | (2 | ) | — | (3 | ) | (5 | ) | |||||||||
Accrued balance as of December 31 | $ | 9 | $ | 1 | $ | 1 | $ | 11 | ||||||||
Integration of CCEs North American Operations | The following table summarizes the balance of accrued expenses related to these integration initiatives and the changes in the accrued amounts since the commencement of the plan (in millions): | |||||||||||||||
Severance Pay | Outside Services | Other | Total | |||||||||||||
and Benefits | Direct Costs | |||||||||||||||
2010 | ||||||||||||||||
Costs incurred | $ | 45 | $ | 42 | $ | 48 | $ | 135 | ||||||||
Payments | (1 | ) | (33 | ) | (34 | ) | (68 | ) | ||||||||
Noncash and exchange | 4 | — | (2 | ) | 2 | |||||||||||
Accrued balance as of December 31 | $ | 48 | $ | 9 | $ | 12 | $ | 69 | ||||||||
2011 | ||||||||||||||||
Costs incurred | $ | 40 | $ | 91 | $ | 227 | $ | 358 | ||||||||
Payments | (40 | ) | (89 | ) | (210 | ) | (339 | ) | ||||||||
Noncash and exchange | — | — | 3 | 3 | ||||||||||||
Accrued balance as of December 31 | $ | 48 | $ | 11 | $ | 32 | $ | 91 | ||||||||
2012 | ||||||||||||||||
Costs incurred | $ | (6 | ) | $ | — | $ | — | $ | (6 | ) | ||||||
Payments | (41 | ) | (13 | ) | (26 | ) | (80 | ) | ||||||||
Noncash and exchange | — | 2 | (4 | ) | (2 | ) | ||||||||||
Accrued balance as of December 31 | $ | 1 | $ | — | $ | 2 | $ | 3 | ||||||||
OPERATING_SEGMENTS_Tables
OPERATING SEGMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2012 | ||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||
Schedule of total net operating revenues related to concentrate and finished products operation | The following table sets forth the percentage of total net operating revenues related to concentrate operations and finished product operations: | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
Concentrate operations1 | 38 | % | 39 | % | 51 | % | ||||||||||||||||||||||||||||||
Finished product operations2,3 | 62 | 61 | 49 | |||||||||||||||||||||||||||||||||
Net operating revenues | 100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||
1 | Includes concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell the fountain syrups to wholesalers or directly to fountain retailers. | |||||||||||||||||||||||||||||||||||
2 | Includes fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers. | |||||||||||||||||||||||||||||||||||
3 | Includes net operating revenues related to our acquisition of CCE's former North America business for the full year in 2012 and 2011. In 2010, the percentage includes net operating revenues from the date of the CCE acquisition on October 2, 2010. | |||||||||||||||||||||||||||||||||||
Schedule of net revenue and property plant and equipment by Geography | The following table provides information related to our net operating revenues (in millions): | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
United States | $ | 19,732 | $ | 18,699 | $ | 10,629 | ||||||||||||||||||||||||||||||
International | 28,285 | 27,843 | 24,490 | |||||||||||||||||||||||||||||||||
Net operating revenues | $ | 48,017 | $ | 46,542 | $ | 35,119 | ||||||||||||||||||||||||||||||
The following table provides information related to our property, plant and equipment — net (in millions): | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
United States | $ | 8,509 | $ | 8,043 | $ | 8,251 | ||||||||||||||||||||||||||||||
International | 5,967 | 6,896 | 6,476 | |||||||||||||||||||||||||||||||||
Property, plant and equipment — net | $ | 14,476 | $ | 14,939 | $ | 14,727 | ||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ||||||||||||||||||||||||||||||||||||
Eurasia & | Europe | Latin | North | Pacific | Bottling | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||||||
Africa | America | America | Investments | |||||||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||||||||||
Third party | $ | 2,697 | $ | 4,481 | $ | 4,560 | $ | 21,665 | $ | 5,680 | $ | 8,807 | $ | 127 | $ | — | $ | 48,017 | ||||||||||||||||||
Intersegment | — | 642 | 271 | 15 | 628 | 88 | — | (1,644 | ) | — | ||||||||||||||||||||||||||
Total net revenues | 2,697 | 5,123 | 4,831 | 21,680 | 6,308 | 8,895 | 127 | (1,644 | ) | 48,017 | ||||||||||||||||||||||||||
Operating income (loss) | 1,078 | 2,960 | 2,879 | 2,597 | 2,516 | 140 | (1,391 | ) | — | 10,779 | ||||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | 471 | — | 471 | |||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | 397 | — | 397 | |||||||||||||||||||||||||||
Depreciation and amortization | 33 | 100 | 70 | 1,083 | 119 | 406 | 171 | — | 1,982 | |||||||||||||||||||||||||||
Equity income (loss) — net | 20 | 45 | 4 | 13 | 2 | 732 | 3 | — | 819 | |||||||||||||||||||||||||||
Income (loss) before income taxes | 1,101 | 3,015 | 2,882 | 2,624 | 2,523 | 904 | (1,240 | ) | — | 11,809 | ||||||||||||||||||||||||||
Identifiable operating assets1 | 1,299 | 2,976 | 2 | 2,759 | 34,114 | 2,163 | 9,648 | 2 | 22,767 | — | 75,726 | |||||||||||||||||||||||||
Investments3 | 1,155 | 271 | 539 | 39 | 127 | 8,253 | 64 | — | 10,448 | |||||||||||||||||||||||||||
Capital expenditures | 51 | 30 | 88 | 1,447 | 107 | 867 | 190 | — | 2,780 | |||||||||||||||||||||||||||
2011 — As Adjusted | ||||||||||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||||||||||
Third party | $ | 2,590 | $ | 4,777 | $ | 4,403 | $ | 20,559 | $ | 5,553 | $ | 8,501 | $ | 159 | $ | — | $ | 46,542 | ||||||||||||||||||
Intersegment | — | 697 | 287 | 12 | 536 | 90 | — | (1,622 | ) | — | ||||||||||||||||||||||||||
Total net revenues | 2,590 | 5,474 | 4,690 | 20,571 | 6,089 | 8,591 | 159 | (1,622 | ) | 46,542 | ||||||||||||||||||||||||||
Operating income (loss) | 1,003 | 3,090 | 2,815 | 2,319 | 2,239 | 224 | (1,517 | ) | — | 10,173 | ||||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | 483 | — | 483 | |||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | 417 | — | 417 | |||||||||||||||||||||||||||
Depreciation and amortization | 30 | 109 | 63 | 1,065 | 115 | 403 | 169 | — | 1,954 | |||||||||||||||||||||||||||
Equity income (loss) — net | (3 | ) | 33 | 20 | 6 | 1 | 646 | (13 | ) | — | 690 | |||||||||||||||||||||||||
Income (loss) before income taxes | 1,001 | 3,134 | 2,832 | 2,327 | 2,242 | 897 | (975 | ) | — | 11,458 | ||||||||||||||||||||||||||
Identifiable operating assets1 | 1,160 | 3,204 | 2 | 2,446 | 33,422 | 2,170 | 8,905 | 2 | 20,293 | — | 71,600 | |||||||||||||||||||||||||
Investments3 | 284 | 243 | 475 | 26 | 133 | 7,140 | 73 | — | 8,374 | |||||||||||||||||||||||||||
Capital expenditures | 50 | 38 | 105 | 1,364 | 128 | 1,039 | 196 | — | 2,920 | |||||||||||||||||||||||||||
2010 — As Adjusted | ||||||||||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||||||||||
Third party | $ | 2,330 | $ | 4,424 | $ | 3,880 | $ | 11,140 | $ | 5,037 | $ | 8,216 | $ | 92 | $ | — | $ | 35,119 | ||||||||||||||||||
Intersegment | 2 | 825 | 241 | 65 | 458 | 97 | — | (1,688 | ) | — | ||||||||||||||||||||||||||
Total net revenues | 2,332 | 5,249 | 4,121 | 11,205 | 5,495 | 8,313 | 92 | (1,688 | ) | 35,119 | ||||||||||||||||||||||||||
Operating income (loss) | 914 | 2,976 | 2,405 | 1,520 | 2,114 | 227 | (1,743 | ) | — | 8,413 | ||||||||||||||||||||||||||
Interest income | — | — | — | — | — | — | 317 | — | 317 | |||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | 733 | — | 733 | |||||||||||||||||||||||||||
Depreciation and amortization | 25 | 106 | 54 | 575 | 107 | 430 | 146 | — | 1,443 | |||||||||||||||||||||||||||
Equity income (loss) — net | 18 | 33 | 24 | (4 | ) | 1 | 971 | (18 | ) | — | 1,025 | |||||||||||||||||||||||||
Income (loss) before income taxes | 933 | 3,020 | 2,426 | 1,523 | 2,116 | 1,205 | 2,984 | — | 14,207 | |||||||||||||||||||||||||||
Identifiable operating assets1 | 1,192 | 2,724 | 2 | 2,298 | 32,793 | 1,913 | 8,398 | 2 | 16,018 | — | 65,336 | |||||||||||||||||||||||||
Investments3 | 291 | 243 | 379 | 57 | 123 | 6,426 | 66 | — | 7,585 | |||||||||||||||||||||||||||
Capital expenditures | 57 | 33 | 94 | 711 | 103 | 942 | 275 | — | 2,215 | |||||||||||||||||||||||||||
1 | Principally cash and cash equivalents, short-term investments, marketable securities, trade accounts receivable, inventories, goodwill, trademarks and other intangible assets and property, plant and equipment — net. | |||||||||||||||||||||||||||||||||||
2 | Property, plant and equipment — net in Germany represented approximately 10 percent of consolidated property, plant and equipment — net in 2012, 10 percent in 2011 and 10 percent in 2010. | |||||||||||||||||||||||||||||||||||
3 | Principally equity method investments, available-for-sale securities and nonmarketable investments in bottling companies. |
NET_CHANGE_IN_OPERATING_ASSETS1
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
NET CHANGE IN OPERATING ASSETS AND LIABILITIES DISCLOSURE [Abstract] | ||||||||||||
Net change in operating assets and liabilities | Net cash provided by (used in) operating activities attributable to the net change in operating assets and liabilities is composed of the following (in millions): | |||||||||||
Year Ended December 31, | 2012 | 2011 | 2010 | |||||||||
(Increase) decrease in trade accounts receivable | $ | (33 | ) | $ | (562 | ) | $ | (41 | ) | |||
(Increase) decrease in inventories | (286 | ) | (447 | ) | 182 | |||||||
(Increase) decrease in prepaid expenses and other assets | (29 | ) | (350 | ) | (148 | ) | ||||||
Increase (decrease) in accounts payable and accrued expenses | (556 | ) | 63 | 656 | ||||||||
Increase (decrease) in accrued taxes | 770 | (132 | ) | (266 | ) | |||||||
Increase (decrease) in other liabilities | (946 | ) | (465 | ) | (13 | ) | ||||||
Net change in operating assets and liabilities | $ | (1,080 | ) | $ | (1,893 | ) | $ | 370 | ||||
BUSINESS_AND_SUMMARY_OF_SIGNIF3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Sep. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jul. 27, 2012 | Jun. 29, 2012 | |
Summary of Significant Accounting Policies [Abstract] | ||||||
Number of brands owned or licensed and marketed by reporting entity | 500 | |||||
Number, of the top five brands in the world, of owned and marketed nonalcoholic sparkling beverage brands | 4 | |||||
Number of countries where finished beverage products bearing our trademarks are sold | 200 | |||||
Beverage servings consumed per day, number | 57,000,000,000 | |||||
Beverage servings consumed per day which bears trademarks owned by or licensed by the entity, number | 1,800,000,000 | |||||
Period of marketing agreement with customers, low end of the range (in years) | 4 years | |||||
Period of marketing agreement with customers, high end of the range (in years) | 10 years | |||||
Amortization expense for infrastructure programs | $86,000,000 | $90,000,000 | $137,000,000 | |||
Aggregate deductions for expenses including amortization expense, incurred in relation to infrastructure programs | 6,100,000,000 | 5,800,000,000 | 5,000,000,000 | |||
Advertising costs included in selling, general and administrative expenses | 3,300,000,000 | 3,300,000,000 | 2,900,000,000 | |||
Advertising and production costs recorded in prepaid expenses and other assets | 295,000,000 | 349,000,000 | ||||
Shipping and handling costs included in selling, general and administrative expenses | 2,800,000,000 | 2,400,000,000 | ||||
Stock option award excluded from computation of diluted net income per share (in millions of shares) | 34,000,000 | 32,000,000 | 77,000,000 | |||
Investments classified as cash equivalents, maximum maturity period (in months) | 3 | |||||
Investments classified as short term investments maturity period, low end of the range (in months) | 3 | |||||
Investments classified as short term investments maturity period, high end of the range (in years) | 1 | |||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 | |||||
Property, Plant and Equipment | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | 59,000,000 | |||||
Depreciation expense | 1,704,000,000 | 1,654,000,000 | 1,188,000,000 | |||
Amortization for leasehold improvements | 19,000,000 | 18,000,000 | 16,000,000 | |||
Common Stock, Shares Authorized | 11,200,000,000 | 11,200,000,000 | 11,200,000,000 | 5,600,000,000 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Income from Continuing Operations | $4,000,000 | $19,000,000 | ($36,000,000) | |||
Goodwill, Trademarks and Other Intangible Assets | ||||||
Finite Lived Intangible Assets, Minimum Useful Life | 1 year | |||||
Finite Lived Intangible Assets, Maximum Useful Life | 20 years | |||||
Percentage of indefinite-lived intangible assets, other than goodwill, for which a qualitative assessment was performed | 10.00% | |||||
Percentage of goodwill for which a qualitative assessment was performed | 10.00% | |||||
Buildings and improvements | ||||||
Property, Plant and Equipment | ||||||
Property, Plant and Equipment, Useful Life, Maximum | 40 years | |||||
Machinery equipment and vehicle fleet | ||||||
Property, Plant and Equipment | ||||||
Property, Plant and Equipment, Useful Life, Maximum | 20 years | |||||
Stock Options | ||||||
Property, Plant and Equipment | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
BUSINESS_AND_SUMMARY_OF_SIGNIF4
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||
Not primary beneficiary | ||
Variable interest entity | ||
VIEs maximum exposures to loss | $1,776 | $1,183 |
Primary beneficiary | ||
Variable interest entity | ||
VIEs maximum exposures to loss | $234 | $199 |
BUSINESS_AND_SUMMARY_OF_SIGNIF5
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (Allowance for doubtful accounts, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Allowance for doubtful accounts | |||
Activity in the allowance for doubtful accounts | |||
Balance, beginning of year | $83 | $48 | $55 |
Net charges to costs and expenses | 5 | 56 | 21 |
Write-offs | -19 | -12 | -18 |
Other | -16 | -9 | -10 |
Balance, end of year | $53 | $83 | $48 |
BUSINESS_AND_SUMMARY_OF_SIGNIF6
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) | 3 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Apr. 02, 2010 | Dec. 31, 2012 | Dec. 31, 2009 | Mar. 29, 2013 | Mar. 29, 2013 |
Venezuelan subsidiary | Venezuelan subsidiary | Venezuelan subsidiary | Lower End of Range | Upper End of Range | |
Translation and Remeasurement | |||||
Official exchange rate set by government for essential goods (in bolivars per U.S.dollar) | 2.6 | ||||
Remeasurement of official exchange rate set by government for nonessential goods (in bolivars per U.S.dollar) | 6.3 | 4.3 | |||
Initial remeasurement of net assets in a hyperinflationary economy | $103 | $100 | $125 | ||
Monetary assets | 450 | ||||
Monetary Liabilities | 85 | ||||
Carrying value of accounts receivable and intangible assets | $216 |
ACQUISITIONS_AND_DIVESTITURES_1
ACQUISITIONS AND DIVESTITURES (Details) (USD $) | 12 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2010 | Oct. 01, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | |
Aujan Industries Trademark owner [Member] | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca Cola Enterprises Inc [Member] | Coca Cola Enterprises Inc [Member] | OAO Nidan Juices ("Nidan") | Coca Cola Enterprises Inc [Member] | Coca Cola Enterprises Inc [Member] | Coca Cola Enterprises Inc [Member] | ||||
Corporate | ||||||||||||
Acquisitions and Divestitures Disclosure [ | ||||||||||||
Cash payments related to acquisition and investment activities | $1,535,000,000 | $977,000,000 | $2,511,000,000 | |||||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||||||||
Acquisition and investment activities | ||||||||||||
Total purchase price | 6,895,000,000 | 276,000,000 | ||||||||||
Percentage of business acquired (as a percent) | 67.00% | |||||||||||
Business Acquisition Cost of Acquired Entity Percentage of Indirect Ownership Interest Transfer | 33.00% | |||||||||||
Ownership of New CCE at closing by third parties subsequent to acquiring CCE's North American business (as a percent) | 100.00% | |||||||||||
Fair value of investment in CCE immediately prior to the close of the transaction | 5,373,000,000 | 5,373,000,000 | ||||||||||
Gain related to remeasurement of our equity investment in CCE to fair value | 4,978,000,000 | 4,978,000,000 | ||||||||||
Foreign currency translation gains recognized on the disposal of indirect investment in CCE's European operations included in remeasurement gain | 137,000,000 | |||||||||||
Estimated amount of debt to be assumed under the merger agreement | 8,900,000,000 | |||||||||||
Actual debt assumed | 7,900,000,000 | |||||||||||
Cash paid at closing | 1,368,000,000 | |||||||||||
Cash consideration paid to New CCE related to the debt shorfall | 1,000,000,000 | |||||||||||
Proceeds from Disposals of Bottling Companies and Other Investments | $2,189,000,000 | $562,000,000 | $972,000,000 |
ACQUISITIONS_AND_DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2010 |
Aujan Industries Trademark owner [Member] | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Aujan bottling and distribution company [Member] | Investment in Aujan Industries [Member] | CCE's North American business | ||||
Performance share units | Performance share units | Stock Options | Stock Options | Restricted share units | Restricted share units | Restricted stock | Restricted stock | ||||||||||
Acquisition and investment activities | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | 49.00% | |||||||||||||||
Replacement awards and the estimated fair value of those awards | |||||||||||||||||
Number of shares, options and units issued | 14.9 | 3.3 | 9.6 | 1.6 | 0.4 | ||||||||||||
Estimated Fair Value | $363 | $192 | $109 | $50 | $12 | ||||||||||||
Replacement share-based payment awards related to services rendered prior to the business combination | 237 | ||||||||||||||||
Replacement share-based payment awards related to services rendered prior to the business combination, net of tax | 154 | ||||||||||||||||
Percent of target used to convert each CCE performance share unit ("PSU") into an adjusted PSU of The Coca-Cola Company (as a percent) | 100.00% | ||||||||||||||||
Purchase price for acquisition | |||||||||||||||||
Fair value of our equity investment in CCE | 5,373 | ||||||||||||||||
Cash paid at closing | 1,368 | ||||||||||||||||
Fair value of share-based payment awards | 154 | ||||||||||||||||
Total purchase price | 6,895 | 980 | |||||||||||||||
Acquisitions and Investments, Principally Beverage and Bottling Companies and Trademarks | 1,535 | 977 | 2,511 | 820 | |||||||||||||
Accelerated Share-based Compensation Expense | $74 |
ACQUISITIONS_AND_DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES (Details 3) (Coca-Cola Enterprises Inc.'s ("CCE") North American business, USD $) | Oct. 02, 2010 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2010 | Oct. 02, 2010 | Oct. 02, 2010 | Sep. 30, 2011 | Sep. 30, 2011 |
In Millions, unless otherwise specified | Bottlers' Franchise Rights | Bottlers' Franchise Rights | Customer Relationships | Customer Relationships | Amounts Recognized As of Acquisition Date [Member] | Measurement period adjustments [Member] | Amounts Recognized as of Acquisition Date as adjusted [Member] | |
Acquisition and investment activities | ||||||||
Cash and cash equivalents | $49 | $0 | $49 | |||||
Marketable securities | 7 | 0 | 7 | |||||
Trade accounts receivable | 1,194 | 0 | 1,194 | |||||
Inventories | 696 | 0 | 696 | |||||
Other current assets | 744 | -5 | 739 | |||||
Property, plant and equipment | 5,385 | -682 | 4,703 | |||||
Bottlers' franchise rights with indefinite lives | 5,100 | 100 | 5,200 | |||||
Other intangible assets | 1,032 | 45 | 1,077 | |||||
Other noncurrent assets | 261 | 0 | 261 | |||||
Total identifiable assets acquired | 14,468 | -542 | 13,926 | |||||
Accounts payable and accrued expenses | 1,826 | 8 | 1,834 | |||||
Loans and notes payable | 266 | 0 | 266 | |||||
Long-term debt | 9,345 | 0 | 9,345 | |||||
Pension and other postretirement liabilities | 1,313 | 0 | 1,313 | |||||
Other noncurrent liabilities | 2,603 | -293 | 2,310 | |||||
Total liabilities assumed | 15,353 | -285 | 15,068 | |||||
Net liabilities assumed | -885 | -257 | -1,142 | |||||
Goodwill | 7,746 | 304 | 8,050 | |||||
Goodwill after deduction of net liabilities assumed | 6,861 | 47 | 6,908 | |||||
Less: Noncontrolling interests | 13 | 0 | 13 | |||||
Net assets acquired | 6,895 | 6,848 | 47 | 6,895 | ||||
Trade accounts receivable, gross | 1,226 | |||||||
Tax deductible Goodwill | 170 | |||||||
Uncollectable receivables | 32 | |||||||
Estimated fair value | 650 | 380 | ||||||
Weighted-average estimated life (in years) | 8 | 20 | ||||||
Assumed pension and other postretirement liabilities | 3,544 | |||||||
Assumed pension and other postretirement plan assets | $2,231 |
ACQUISITIONS_AND_DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2011 | Oct. 02, 2010 | Dec. 31, 2012 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2012 | Dec. 31, 2012 |
Disposal of Norwegian and Swedish Bottling Operations [Member] | Coca-Cola Embonor SA [Member] | Great Plains Coca Cola Bottling Company [Member] | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Coca-Cola Enterprises Inc.'s ("CCE") North American business | Dr Pepper Snapple Group, Inc. license rights | Dr Pepper Snapple Group, Inc. license rights | Coca-Cola Freestyle | Coca-Cola Freestyle | Aujan bottling and distribution company [Member] | Investment in Aujan Industries [Member] | |||||
Disposal of Norwegian and Swedish Bottling Operations [Member] | ||||||||||||||||||
Acquisition and investment activities | ||||||||||||||||||
Total purchase price | $360 | $6,895 | $980 | |||||||||||||||
Increase (Decrease) in Income (Loss) from Discontinued Operations | -387 | |||||||||||||||||
Period of time after the sale of our Norwegian and Swedish bottling operations, New CCE has the right to acquire our majority interest in our German bottling operation, low end of range (in months) | 18 | |||||||||||||||||
Period of time after the sale of our Norwegian and Swedish bottling operations, New CCE has the right to acquire our majority interest in our German bottling operation, high end of range (in months) | 39 | |||||||||||||||||
Transaction cost related to acquisition and divestiture | 81 | 84 | ||||||||||||||||
Charge related to preexisting relationships | 265 | 265 | 1 | |||||||||||||||
Net revenue contributed since the acquisition date | 3,637 | |||||||||||||||||
Net losses contributed since the acquisition date | -122 | |||||||||||||||||
Consolidated pro forma information | ||||||||||||||||||
Net operating revenues | 43,106 | |||||||||||||||||
Net income attributable to shareowners of The Coca-Cola Company | 6,839 | |||||||||||||||||
Decrease to Net Operation Revenues | 433 | |||||||||||||||||
One-time cash payment for license agreements to distribute trademark brands in North America | 715 | |||||||||||||||||
Term of the license agreement (in years) | 20 | |||||||||||||||||
Renewal period for license agreement (in years) | 20 | |||||||||||||||||
Term of the agreement (in years) | 20 | |||||||||||||||||
Indefinite lived intangible assets | 865 | |||||||||||||||||
Deferred revenue | 150 | |||||||||||||||||
Deferred revenue amortization period (in years) | 20 | |||||||||||||||||
Equity Method Investment, Ownership Percentage | 49.00% | |||||||||||||||||
Proceeds from Disposals of Bottling Companies and Other Investments | 2,189 | 562 | 972 | |||||||||||||||
Proceeds from Divestiture of Businesses | 900 | 394 | ||||||||||||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $321 | $1,368 |
ACQUISITIONS_AND_DIVESTITURES_5
ACQUISITIONS AND DIVESTITURES (Details 5) (USD $) | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2010 |
In Millions, unless otherwise specified | Total Bottling Operations Held for Sale | Philippine Bottling Operations | Brazilian Bottling Operations | Disposal of Norwegian and Swedish Bottling Operations [Member] | Coca-Cola Embonor SA [Member] | Leao Junior SA [Member] | Philippines Bottling Operations | Corporate |
Leao Junior SA [Member] | ||||||||
Divestitures | ||||||||
Cash, cash equivalents and short-term investments | $178 | $133 | $45 | |||||
Trade Accounts Receivable, less allowances | 196 | 108 | 88 | |||||
Inventories | 272 | 187 | 85 | |||||
Prepaid expenses and other assets | 397 | 223 | 174 | |||||
Other Assets | 135 | 7 | 128 | |||||
Property, plant and equipment - net | 1,260 | 841 | 419 | |||||
Bottlers' franchise rights with indefinite lives | 471 | 341 | 130 | |||||
Goodwill | 170 | 148 | 22 | |||||
Other intangible assets | 1 | 0 | 1 | |||||
Allowance for reduction of assets held for sale | -107 | -107 | 0 | |||||
Total Assets | 2,973 | 1,881 | 1,092 | |||||
Accounts payable and accrued expenses | 398 | 241 | 157 | |||||
Loans and notes payable | 6 | 0 | 6 | |||||
Current maturities of long-term debt | 28 | 0 | 28 | |||||
Accrued income taxes | 0 | -4 | 4 | |||||
Long-term debt | 147 | 0 | 147 | |||||
Other liabilities | 95 | 20 | 75 | |||||
Deferred income taxes | 122 | 102 | 20 | |||||
Total liabilities | 796 | 359 | 437 | |||||
Proceeds from the disposal of bottling companies and other investments | 83 | |||||||
Percentage of Sale of Investments in Subsidiary | 50.00% | |||||||
Proceeds from Divestiture of Businesses | 900 | 394 | ||||||
Loss on disposal group held for sale | 108 | |||||||
Transaction cost related to acquisition and divestiture | $1 |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | |||
Trading Securities | |||
Trading securities, net unrealized gains (losses) | $19 | ($5) | ($3) |
Marketable securities | 184 | 138 | |
Other assets | 82 | 73 | |
Trading Securities | $266 | $211 |
INVESTMENTS_Details_2
INVESTMENTS (Details 2) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||
Available-for-sale securities, by type | ||
Available-for-sale securities, cost | $4,126 | $1,166 |
Available-for-sale Securities, Gross Unrealized Gains | 487 | 238 |
Available-for-sale Securities, Gross Unrealized Losses | -20 | -3 |
Available-for-sale securities, estimated fair value, total | 4,593 | 1,401 |
Equity securities | ||
Available-for-sale securities, by type | ||
Available-for-sale securities, cost | 957 | 834 |
Available-for-sale Securities, Gross Unrealized Gains | 441 | 237 |
Available-for-sale Securities, Gross Unrealized Losses | -10 | 0 |
Available-for-sale securities, estimated fair value, total | 1,388 | 1,071 |
Debt securities | ||
Available-for-sale securities, by type | ||
Available-for-sale securities, cost | 3,169 | 332 |
Available-for-sale Securities, Gross Unrealized Gains | 46 | 1 |
Available-for-sale Securities, Gross Unrealized Losses | -10 | -3 |
Available-for-sale securities, estimated fair value, total | $3,205 | $330 |
INVESTMENTS_Details_3
INVESTMENTS (Details 3) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||
Held-to-maturity securities, by type | ||
Held-to-maturity securities, cost | $0 | |
Held-to-maturity securities, estimated fair value | 0 | |
Equity securities | ||
Held-to-maturity securities, by type | ||
Held-to-maturity securities, cost | 0 | |
Held-to-maturity securities, estimated fair value | 0 | |
Bank and corporate debt | ||
Held-to-maturity securities, by type | ||
Held-to-maturity securities, cost | 0 | 113 |
Held-to-maturity securities, estimated fair value | 0 | 113 |
Held-to-maturity securities, gross unrealized gains | 0 | 0 |
Held-to-maturity securities, gross unrealized losses | $0 | $0 |
INVESTMENTS_Details_4
INVESTMENTS (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment charges, available-for-sale securities | $17 | $26 | |
Proceeds from Sale of Available-for-sale Securities | 5,036 | 37 | |
Gross realized gains | 41 | 5 | |
Gross realized losses | -35 | -1 | |
Available-for-Sale Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Solvency Funds of Insurance Captive | $451 | $285 |
INVESTMENTS_Details_5
INVESTMENTS (Details 5) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
In Millions, unless otherwise specified | ||||
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||
Cash and cash equivalents | $8,442 | $12,803 | $8,517 | $7,021 |
Marketable securities | 3,092 | 144 | ||
OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES | 1,232 | 1,141 | ||
OTHER ASSETS | 3,585 | 3,495 | ||
Held-to-maturity Securities | 0 | |||
Available-for-Sale Securities | ||||
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||
Cash and cash equivalents | 9 | 0 | ||
Marketable securities | 2,908 | 5 | ||
OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES | 1,087 | 986 | ||
OTHER ASSETS | 589 | 410 | ||
Available-for-sale securities | 4,593 | 1,401 | ||
Held-to-maturity Securities | ||||
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||
Cash and cash equivalents | 0 | 112 | ||
Marketable securities | 0 | 1 | ||
OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES | 0 | 0 | ||
OTHER ASSETS | 0 | 0 | ||
Held-to-maturity Securities | $0 | $113 |
INVESTMENTS_Details_6
INVESTMENTS (Details 6) (USD $) | Dec. 31, 2012 |
In Millions, unless otherwise specified | |
Investments Disclosure [Abstract] | |
Available-for-sale securities, within 1 year, cost | $1,003 |
Available-for-sale securities, within 1 year, fair value | 1,001 |
Available-for-sale securities, after 1 years through 5 years, cost | 1,590 |
Available-for-sale securities, after 1 years through 5 years, fair value | 1,598 |
Available-for-sale securities, after 5 years through 10 years, cost | 270 |
Available-for-sale securities, after 5 years through 10 years, fair value | 299 |
Available-for-sale securities, after 10 years, cost | 306 |
Available-for-sale securities, after 10 years, fair value | 307 |
Held-to-maturity securities, within 1 year, amortized cost | 0 |
Held-to-maturity securities, within 1 year, fair value | 0 |
Held-to-maturity securities, after 1 year through 5 years, amortized cost | 0 |
Held-to-maturity securities, after 1 year through 5 years, fair value | 0 |
Held-to-maturity securities, after 5 years through 10 years, amortized cost | 0 |
Held-to-maturity securities, after 5 years through 10 years, fair value | 0 |
Held-to-maturity securities, after 10 years, amortized cost | 0 |
Held-to-maturity securities, after 10 years, fair value | $0 |
INVESTMENTS_Details_7
INVESTMENTS (Details 7) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Cost Method Investments [Abstract] | ||
Cost method investments, carrying value | $145 | $155 |
Cost method investments, other-than-temporary decline in fair value | $16 | $0 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||
Inventory balances | ||
Raw materials and packaging | $1,773 | $1,680 |
Finished goods | 1,171 | 1,198 |
Other | 320 | 214 |
Total inventories | $3,264 | $3,092 |
HEDGING_TRANSACTIONS_AND_DERIV2
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Maximum length of time over which future cash flow exposures are hedged (in years) | 3 years | |
Notional value, derivatives designated and qualifying, foreign currency cash flow hedges | $4,715 | $5,158 |
Notional value, derivatives designated and qualifying, commodity cash flow hedges | 17 | 26 |
Notional value, derivatives designated and qualifying, fair value hedges | 6,700 | 5,700 |
Notional value, derivatives designated and qualifying, hedges of net investments in foreign operations | 1,718 | 1,681 |
Notional value, derivative instruments not designated and (or) not qualifying, economic hedges | 3,865 | 3,629 |
Notional value, derivative instruments not designated and (or) not qualifying, commodity price risk hedges | 1,084 | 1,165 |
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | 1,764 | |
Derivatives Designated as Hedging Instruments, Assets, at Fair Value | 491 | 418 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 139 | 88 |
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 62 | 42 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 71 | 164 |
Anticipated gains (losses) cash flows hedges, estimated reclassification to earnings | 41 | |
Increase in the carrying value of long-term debt, in relation to interest rate fair value hedge adjustment | 273 | |
Available-for-Sale Securities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Notional Amount of Fair Value Hedge Instruments | 850 | |
Foreign currency contracts | Prepaid expenses and other assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivatives Designated as Hedging Instruments, Assets, at Fair Value | 149 | 170 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 19 | 29 |
Foreign currency contracts | Other assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 42 | 0 |
Foreign currency contracts | Accounts payable and accrued expenses | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 55 | 41 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 24 | 116 |
Foreign currency contracts | Other liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 1 | 0 |
Interest rate contracts | Prepaid expenses and other assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivatives Designated as Hedging Instruments, Assets, at Fair Value | 7 | 0 |
Interest rate contracts | Other assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivatives Designated as Hedging Instruments, Assets, at Fair Value | 335 | 246 |
Interest rate contracts | Other liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 6 | 0 |
Commodity contracts | Prepaid expenses and other assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivatives Designated as Hedging Instruments, Assets, at Fair Value | 0 | 2 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 72 | 54 |
Commodity contracts | Accounts payable and accrued expenses | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 1 | 1 |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 43 | 47 |
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 | 0 |
Other Derivative Instruments | Prepaid expenses and other assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 6 | 5 |
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 | $1 |
HEDGING_TRANSACTIONS_AND_DERIV3
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Cash Flow Hedges | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | $90 | ($9) | ($306) |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -82 | -243 | -17 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 2 | -1 | -2 |
Cash Flow Hedges | Interest rate contracts | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | 1 | -11 | 0 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -12 | -12 | -15 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | -1 | 0 |
Cash Flow Hedges | Foreign Currency Contracts | Net operating revenues | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | 59 | 3 | -307 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -46 | -231 | -2 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 2 | 0 | -2 |
Cash Flow Hedges | Foreign Currency Contracts | Cost of goods sold | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | 34 | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -23 | ||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | ||
Cash Flow Hedges | Commodity contracts | Cost of goods sold | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | -4 | -1 | 1 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -1 | 0 | 0 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Fair Value Hedges | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | 43 | ||
Fair Value Hedges | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | 47 | 10 | 5 |
Fair Value Hedges | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | -4 | ||
Fair Value Hedges | Interest rate contracts | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | 89 | 343 | -97 |
Fair Value Hedges | Foreign Currency Contracts | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | 42 | ||
Fair Value Hedges | Available-for-Sale Securities | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | -46 | ||
Fair Value Hedges | Fixed Rate Debt | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | -42 | -333 | 102 |
Net Investment Hedges | Foreign Currency Contracts | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | -61 | -3 | -15 |
Derivatives Not Designated as Hedging Instruments | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | -62 | -87 | -118 |
Derivatives Not Designated as Hedging Instruments | Foreign Currency Contracts | Net operating revenues | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | -7 | 7 | -15 |
Derivatives Not Designated as Hedging Instruments | Foreign Currency Contracts | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | 24 | -37 | -46 |
Derivatives Not Designated as Hedging Instruments | Foreign Currency Contracts | Cost of goods sold | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | 0 | -12 | -9 |
Derivatives Not Designated as Hedging Instruments | Interest rate swaps | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | 0 | 0 | -5 |
Derivatives Not Designated as Hedging Instruments | Interest rate locks | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | 0 | 0 | -104 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Net operating revenues | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | 4 | 0 | 0 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Cost of goods sold | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | -110 | -42 | 40 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Selling, general and administrative expenses | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | 9 | -11 | 0 |
Derivatives Not Designated as Hedging Instruments | Other Derivative Instruments | Selling, general and administrative expenses | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income | $18 | $8 | $21 |
EQUITY_METHOD_INVESTMENTS_Deta
EQUITY METHOD INVESTMENTS (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Oct. 01, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | Other Equity Method Investees [Member] | Other Equity Method Investees [Member] | Other Equity Method Investees [Member] | Coca-Cola Enterprises Inc. | Other Equity Method Investments | Other Equity Method Investments | Other Equity Method Investments | Coca-Cola Hellenic | Coca-Cola FEMSA | Coca-Cola Amatil | Acquisition of Coca Cola Enterprises North American Business [Member] | Acquisition of Coca Cola Enterprises North American Business [Member] | ||
Equity method investments, disclosures | ||||||||||||||
Business Acquisition Cost of Acquired Entity Percentage of Indirect Ownership Interest Transfer | 33.00% | |||||||||||||
Ownership interest in Equity investee (as a percent) | 23.00% | 29.00% | 29.00% | |||||||||||
Summarized financial information - Income statement | ||||||||||||||
Net operating revenues | $47,087 | $42,472 | $38,663 | $16,464 | ||||||||||
Cost of goods sold | 28,821 | 26,271 | 23,053 | 10,028 | ||||||||||
Gross profit | 18,266 | 16,201 | 15,610 | 6,436 | ||||||||||
Operating income | 4,605 | 4,181 | 4,134 | 1,369 | ||||||||||
Consolidated net income | 2,993 | 2,237 | 2,659 | |||||||||||
Less: Net income attributable to noncontrolling interests | 89 | 99 | 89 | |||||||||||
Net income attributable to common shareowners | 2,904 | 2,138 | 2,570 | 677 | ||||||||||
Summary of significant transactions with CCE | ||||||||||||||
Concentrate, syrup and finished product sales | 4,737 | 7,100 | 6,900 | 6,200 | ||||||||||
Syrup and finished product purchases | 263 | 392 | 430 | 205 | ||||||||||
CCE purchases of sweeteners through our Company | 251 | |||||||||||||
Marketing payments made by us | 314 | 1,587 | 1,147 | 1,034 | ||||||||||
Marketing payments made to third parties on behalf of CCE | 106 | |||||||||||||
Local media and marketing program reimbursements from CCE | 268 | |||||||||||||
Payments made to CCE for dispensing equipment repair services | 64 | |||||||||||||
Other payments - net | 19 | |||||||||||||
Charge related to preexisting relationships | 1 | 265 | ||||||||||||
Investment in equity method investees in excess of the proportionate share of net assets | 2,241 | |||||||||||||
Current Assets | 16,054 | 13,960 | ||||||||||||
Noncurrent assets | 32,687 | 27,152 | ||||||||||||
Total assets | 48,741 | 41,112 | ||||||||||||
Current liabilities | 12,004 | 10,545 | ||||||||||||
Noncurrent liabilities | 12,272 | 11,646 | ||||||||||||
Total liabilities | 24,276 | 22,191 | ||||||||||||
Equity attributable to shareowners of investees | 23,827 | 18,392 | ||||||||||||
Equity attributable to noncontrolling interests | 638 | 529 | ||||||||||||
Total Equity | 24,465 | 18,921 | ||||||||||||
EQUITY METHOD INVESTMENTS | $9,216 | $7,233 | $9,216 | $7,233 |
EQUITY_METHOD_INVESTMENTS_Deta1
EQUITY METHOD INVESTMENTS (Details 2) (USD $) | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Oct. 01, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | |
Coca-Cola Enterprises Inc. | Coca-Cola Hellenic | Coca-Cola Hellenic | ||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net sales to equity method investees | $4,737,000,000 | |||||
Total payments, primarily marketing | 314,000,000 | |||||
Purchases of finished products from equity method investees | 263,000,000 | |||||
Excess of quoted market value over carrying value | 10,400,000,000 | |||||
Total net receivables due | 1,162,000,000 | 1,042,000,000 | ||||
Dividends received | 393,000,000 | 421,000,000 | 354,000,000 | |||
Special dividend included in total dividends | $35,000,000 | $60,000,000 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $23,486 | $23,151 | |
Less accumulated depreciation | 9,010 | 8,212 | |
Property, plant and equipment-net | 14,476 | 14,939 | 14,727 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 997 | 1,141 | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 5,307 | 5,240 | |
Machinery equipment and vehicle fleet | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 16,203 | 15,504 | |
Construction in progress | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $979 | $1,266 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible assets | $26,298 | $26,532 | |
Definite-lived Intangible Assets | |||
Gross carrying amount | 1,546 | 1,582 | |
Accumulated amortization | -507 | -445 | |
Net definite-lived intangible assets | 1,039 | 1,137 | |
Total amortization expense for intangible assets subject to amortization | 173 | 192 | 102 |
Amortization Expense | |||
2013 | 161 | ||
2014 | 153 | ||
2015 | 148 | ||
2016 | 142 | ||
2017 | 90 | ||
Customer Relationships | |||
Definite-lived Intangible Assets | |||
Gross carrying amount | 622 | 619 | |
Accumulated amortization | -166 | -126 | |
Net definite-lived intangible assets | 456 | 493 | |
Bottlers' Franchise Rights | |||
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible assets | 7,405 | 7,770 | |
Definite-lived Intangible Assets | |||
Gross carrying amount | 730 | 668 | |
Accumulated amortization | -221 | -119 | |
Net definite-lived intangible assets | 509 | 549 | |
Trademarks | |||
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible assets | 6,527 | 6,430 | |
Definite-lived Intangible Assets | |||
Gross carrying amount | 65 | 99 | |
Accumulated amortization | -43 | -70 | |
Net definite-lived intangible assets | 22 | 29 | |
Goodwill | |||
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible assets | 12,255 | 12,219 | |
Other. | |||
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible assets | 111 | 113 | |
Definite-lived Intangible Assets | |||
Gross carrying amount | 129 | 196 | |
Accumulated amortization | -77 | -130 | |
Net definite-lived intangible assets | $52 | $66 |
INTANGIBLE_ASSETS_Details_2
INTANGIBLE ASSETS (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill by operating segment | ||
Balance as of January 1 | $12,219 | $11,665 |
Effect of foreign currency translation | -13 | 19 |
Acquisitions | 257 | 195 |
Adjustments related to the finalization of purchase accounting | -38 | 309 |
Divestitures, deconsolidations and other | -170 | 31 |
Balance as of December 31 | 12,255 | 12,219 |
Eurasia and Africa | ||
Goodwill by operating segment | ||
Balance as of January 1 | 35 | 41 |
Effect of foreign currency translation | -1 | -6 |
Acquisitions | 0 | 0 |
Adjustments related to the finalization of purchase accounting | 0 | 0 |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 34 | 35 |
Europe | ||
Goodwill by operating segment | ||
Balance as of January 1 | 710 | 695 |
Effect of foreign currency translation | -19 | 15 |
Acquisitions | 0 | 0 |
Adjustments related to the finalization of purchase accounting | 0 | 0 |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 691 | 710 |
Latin America | ||
Goodwill by operating segment | ||
Balance as of January 1 | 163 | 166 |
Effect of foreign currency translation | 5 | -3 |
Acquisitions | 0 | 0 |
Adjustments related to the finalization of purchase accounting | 0 | 0 |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 168 | 163 |
North America | ||
Goodwill by operating segment | ||
Balance as of January 1 | 10,515 | 9,861 |
Effect of foreign currency translation | 0 | 0 |
Acquisitions | 100 | 195 |
Adjustments related to the finalization of purchase accounting | -38 | 304 |
Divestitures, deconsolidations and other | 0 | 155 |
Balance as of December 31 | 10,577 | 10,515 |
Pacific | ||
Goodwill by operating segment | ||
Balance as of January 1 | 117 | 115 |
Effect of foreign currency translation | 6 | 2 |
Acquisitions | 0 | 0 |
Adjustments related to the finalization of purchase accounting | 0 | 0 |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 123 | 117 |
Bottling Investments | ||
Goodwill by operating segment | ||
Balance as of January 1 | 679 | 787 |
Effect of foreign currency translation | -4 | 11 |
Acquisitions | 157 | 0 |
Adjustments related to the finalization of purchase accounting | 0 | 5 |
Divestitures, deconsolidations and other | -170 | -124 |
Balance as of December 31 | $662 | $679 |
ACCOUNTS_PAYABLE_AND_ACCRUED_E2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||
ACCOUNTS PAYABLE AND ACCRUED EXPENSES Disclosure [Abstract] | ||
Accrued marketing | $2,231 | $2,286 |
Other accrued expenses | 2,711 | 2,749 |
Trade accounts payable | 1,969 | 2,172 |
Accrued compensation | 1,045 | 1,048 |
Sales, payroll and other taxes | 389 | 405 |
Container deposits | 335 | 349 |
Accounts payable and accrued expenses | $8,680 | $9,009 |
DEBT_AND_BORROWING_ARRANGEMENT2
DEBT AND BORROWING ARRANGEMENTS (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||
Short-term borrowings | ||
Lines of credit for general corporate purposes | $6,314 | |
Lines of credit and other short-term credit facilities outstanding | 93 | |
Weighted-average interest rates for commercial paper outstanding (as a percent) | 0.30% | 0.20% |
Line of Credit Facility, Maximum Borrowing Capacity | 7,768 | |
Commercial paper borrowings outstanding | 16,204 | 12,135 |
Philippines Bottling Operations | ||
Short-term borrowings | ||
Line of Credit Facility, Maximum Borrowing Capacity | $854 |
DEBT_AND_BORROWING_ARRANGEMENT3
DEBT AND BORROWING ARRANGEMENTS (Details 2) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Nov. 30, 2010 | Dec. 31, 2011 | Sep. 30, 2011 | Jul. 01, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2010 | Nov. 15, 2010 | Nov. 15, 2010 | Nov. 15, 2010 | Dec. 31, 2011 | Nov. 15, 2010 | Dec. 31, 2011 | Apr. 01, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2010 | Dec. 31, 2011 | Dec. 31, 2011 | Oct. 02, 2010 | Nov. 30, 2010 | Oct. 02, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 |
Notes due on March 14 2014 | Notes due on March 13 2015 | Notes due on March 14 2018 | Long-term notes | Total principal notes due May 15, 2012 | Total principal notes due May 15, 2012 | Total principal notes due November 15, 2013 | Total principal notes due November 15, 2015 | Total principal notes due September 1 2016 | Total principal notes due November 15, 2020 | Total principal notes due September 1 2021 | U.K. pound sterling notes | U.S. dollar zero coupon notes due in 2020 | U.S. dollar zero coupon notes due in 2020 | U.S. dollar notes due 2013-2093 | U.S. dollar notes due 2013-2093 | US dollar debentures due 2017 through 2098 | US dollar debentures due 2017 through 2098 | Other, due through 2098 | Other, due through 2098 | Coca-Cola excluding CCE's North America Business | CCE's North American business | CCE's North American business | CCE's North American business | Assumed long term debt | Assumed long term debt | Assumed long term debt | Assumed long term debt | Assumed long term debt | Assumed long term debt | Assumed long term debt | Assumed long term debt | Assumed long term debt | Assumed long term debt | Other, due through 2022 | ||||||||
CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | Coca-Cola Enterprises Inc. | Coca-Cola Enterprises Inc. | |||||||||||||||||||||||||||||||||
Total principal U.S. dollar notes due 2011 to 2037 | Principal notes U.S. dollar debentures due 2012 to 2098 [Member] | Total principal U.S. dollar notes due 2011 | Total principal U.K. pound sterling notes due 2016 to 2021 | U.S. dollar zero coupon notes due in 2020 | Other long-term debt | |||||||||||||||||||||||||||||||||||||
Long-term debt | ||||||||||||||||||||||||||||||||||||||||||
Fair value adjustment related to the debt assumed | $617 | $733 | ||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Fair Value | 16,360 | 17,157 | 16,360 | 9,345 | ||||||||||||||||||||||||||||||||||||||
Exchanged debt assumed | 1,022 | |||||||||||||||||||||||||||||||||||||||||
Fair value adjustments weighted-average amortization period (in years) | 17 | |||||||||||||||||||||||||||||||||||||||||
Total principal amount | 1,250 | 1,250 | 1,000 | 1,000 | 2,594 | 2,288 | 275 | 544 | 303 | 26 | 90 | |||||||||||||||||||||||||||||||
variable interest rate (as a percentage) | 1.00% | |||||||||||||||||||||||||||||||||||||||||
Repurchase of long-term debt | 2,910 | 19 | 42 | 1,250 | 674 | 1,083 | 1,827 | |||||||||||||||||||||||||||||||||||
Premium paid on repurchase of long-term debt | 342 | |||||||||||||||||||||||||||||||||||||||||
Variable interest rate used | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||
Basis spread on variable rate used (as a percent) | 0.05% | 0.05% | ||||||||||||||||||||||||||||||||||||||||
Fixed interest rate (as a percent) | 0.75% | 1.65% | 0.75% | 1.50% | 1.80% | 3.15% | 3.30% | |||||||||||||||||||||||||||||||||||
Debt instrument Average Rate (as a percent) | 2.30% | 2.10% | 2.30% | 8.40% | 8.40% | 1.70% | 1.90% | 3.70% | 4.00% | 4.40% | 4.80% | 5.70% | 7.40% | 6.50% | ||||||||||||||||||||||||||||
Unamortized discounts as of the acquisition date | 36 | 41 | ||||||||||||||||||||||||||||||||||||||||
Fair value adjustment | 231 | 273 | 231 | |||||||||||||||||||||||||||||||||||||||
Issuance of long term debt | 2,750 | 2,979 | 1,000 | 1,000 | 750 | 4,500 | 1,655 | 1,324 | ||||||||||||||||||||||||||||||||||
Debt issued in exchange of assumed debt | 979 | |||||||||||||||||||||||||||||||||||||||||
Premium on exchange of long term debt | 208 | |||||||||||||||||||||||||||||||||||||||||
Net charge on exchange, repayment or extinguishment of long-term debt | 9 | |||||||||||||||||||||||||||||||||||||||||
Long term debt | 15,697 | 16,313 | 15,697 | 135 | 130 | 13,407 | 12,270 | 2,207 | 2,482 | 291 | 584 | |||||||||||||||||||||||||||||||
Less current portion | 2,041 | 1,577 | 2,041 | |||||||||||||||||||||||||||||||||||||||
Long-term debt non current | 13,656 | 14,736 | 13,656 | |||||||||||||||||||||||||||||||||||||||
Total interest paid | 574 | 573 | 422 | |||||||||||||||||||||||||||||||||||||||
Extinguishment of long-term debt | 20 | |||||||||||||||||||||||||||||||||||||||||
repayment assumed debt unamortized fair value adjustments | 99 | |||||||||||||||||||||||||||||||||||||||||
Debt assumed, including the current portion | 7,602 | |||||||||||||||||||||||||||||||||||||||||
Lines of credit and other short-term credit facilities available | 7,768 | |||||||||||||||||||||||||||||||||||||||||
Maturities of Long-Term Debt | ||||||||||||||||||||||||||||||||||||||||||
2013 | 1,577 | |||||||||||||||||||||||||||||||||||||||||
2014 | 2,633 | |||||||||||||||||||||||||||||||||||||||||
2015 | 2,451 | |||||||||||||||||||||||||||||||||||||||||
2016 | 1,705 | |||||||||||||||||||||||||||||||||||||||||
2017 | $1,439 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | 12 Months Ended | 144 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 1981 | Dec. 31, 2012 | Dec. 31, 2011 |
North america [Member] | United States | Guarantees of indebtedness owed by third parties | Aqua-Chem, Inc. (now know as Cleaver-Brooks, Inc.) | Aqua-Chem, Inc. (now know as Cleaver-Brooks, Inc.) | Risk Management Programs | Risk Management Programs | ||
Loss Contingencies By Nature Of Contingency Line Items | ||||||||
Low end of range for which insurance coverage for substantially all defense and indemnity costs would be available | 10 | |||||||
High end of range for which insurance coverage for substantially all defense and indemnity costs would be available | 15 | |||||||
Period for which Defense and Indemnity Costs are in Same Range | 5 | |||||||
Guarantees | ||||||||
Guarantees of indebtedness owed by third parties | $671 | |||||||
Guarantees of indebtedness related to VIEs | 294 | |||||||
Legal Contingencies | ||||||||
Loss contingency insurance policy purchased | 400 | |||||||
Third Party Number of Pending Active Claims | 40,000 | |||||||
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 | |||||||
Approximate amount of out-of-pocket litigation related expenses demanded as reimbursement by plaintiff | 10 | |||||||
Wisconsin trial court final declaratory judgment of each individual insurer's joint and several liability percentage of plaintiff's losses up to policy limits | 100.00% | |||||||
Risk Management Programs | ||||||||
Self-insurance reserves | 508 | 527 | ||||||
Workforce (Unaudited) | ||||||||
Number of associates | 150,900 | 68,300 | ||||||
Number of associates covered by collective bargaining agreements | 17,900 | |||||||
Collective bargaining agreements period, low end of range (in years) | 3 | |||||||
Collective bargaining agreements period, high end of range (in years) | 5 | |||||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||||
2013 | 233 | |||||||
2014 | 162 | |||||||
2015 | 128 | |||||||
2016 | 101 | |||||||
2017 | 72 | |||||||
Thereafter | 235 | |||||||
Total minimum operating lease payments | $931 |
STOCK_COMPENSATION_PLANS_Detai
STOCK COMPENSATION PLANS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jul. 27, 2012 | Jun. 29, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2010 | Oct. 02, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
2010-2012 Performance Period | 2011-2013 Performace Period | 2012 to 2014 Performance Period | CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | CCE's North American business | Stock Options | 1999 Option Plan | 2002 Option Plan | 2008 Option Plan | Stock options granted in December 2003 and thereafter | Stock options granted from 1999 through July 2003 | Performance share units | Performance share units | Performance share units | Restricted stock | Restricted stock | Restricted stock | 1989 Restricted Stock Award Plan | 1983 Restricted Stock Award Plan | Time-Based Restricted Stock Unit Awards | Time-Based Restricted Stock Unit Awards | Performance-based Restricted Stock Unit Awards | |||||||
Performance Period 2008-2010, 2009 and 2010 | Performance Period 2008-2010 and 2010 | 2009 Performance Period | 2009 Performance Period | 2009 Performance Period | 2009 Performance Period | CCE 2007 Performance Grants | CCE's North American business | ||||||||||||||||||||||||||||
STOCK COMPENSATION PLANS [Abstract] | |||||||||||||||||||||||||||||||||||
Total stock-based compensation expense | $259 | $354 | $380 | ||||||||||||||||||||||||||||||||
Total income tax benefit recognized in consolidated statements of income for share-based compensation arrangements | 72 | 99 | 110 | ||||||||||||||||||||||||||||||||
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted | 467 | ||||||||||||||||||||||||||||||||||
Weighted-average period over which the total unrecognized compensation cost is expected to be recognized (in years) | 1 year 9 months 18 days | ||||||||||||||||||||||||||||||||||
Stock-based compensation awards | |||||||||||||||||||||||||||||||||||
Vesting period of stock-based awards (in years) | 3 years | 4 years | |||||||||||||||||||||||||||||||||
Weighted-average assumptions used in the Black Scholes Merton option pricing model | |||||||||||||||||||||||||||||||||||
Fair value of options at grant date (in dollars per share) | $3.80 | $4.64 | $4.70 | ||||||||||||||||||||||||||||||||
Dividend yield (as a percent) | 2.70% | 2.70% | 2.90% | ||||||||||||||||||||||||||||||||
Expected volatility (as a percent) | 18.00% | 19.00% | 20.00% | ||||||||||||||||||||||||||||||||
Risk-free interest rate (as a percent) | 1.00% | 2.30% | 3.00% | ||||||||||||||||||||||||||||||||
Expected term of the option (in years) | 5 years | 5 years | 6 years | ||||||||||||||||||||||||||||||||
Share-based compensation disclosure | |||||||||||||||||||||||||||||||||||
Common stock was approved to be issued or transferred through the grant of stock options (in shares) | 240,000,000 | 240,000,000 | 280,000,000 | ||||||||||||||||||||||||||||||||
Granted (in shares) | 53,000,000 | ||||||||||||||||||||||||||||||||||
Exercised (in shares) | -61,000,000 | -65,000,000 | -73,000,000 | ||||||||||||||||||||||||||||||||
Forfeited/expired (in shares) | -6,000,000 | ||||||||||||||||||||||||||||||||||
Outstanding on December 31 (in shares) | 309,000,000 | 323,000,000 | 4,000,000 | ||||||||||||||||||||||||||||||||
Expected to vest at December 31, 2012 (in shares) | 305,000,000 | ||||||||||||||||||||||||||||||||||
Granted, Weighted-Average Exercise Price (in dollars per share) | $34.40 | ||||||||||||||||||||||||||||||||||
Exercised, Weighted-Average Exercise Price (in dollars per share) | $24.43 | ||||||||||||||||||||||||||||||||||
Forfeited/expired, Weighted-Average Exercise Price (in dollars per share) | $30.01 | ||||||||||||||||||||||||||||||||||
Outstanding on December 31, Weighted-Average Exercise Price (in dollars per share) | $27.27 | $25.62 | $18.32 | ||||||||||||||||||||||||||||||||
Expected to vest at December 31, 2012, Weighted-Average Exercise Price (in dollars per share) | $27.20 | ||||||||||||||||||||||||||||||||||
Expected to Vest, Weighted Average Remaining Contractual Life (in years) | 5 years 9 months 15 days | ||||||||||||||||||||||||||||||||||
Outstanding on December 31, 2012, Weighted-Average Remaining Contractual Life (in years) | P5Y9M26D | ||||||||||||||||||||||||||||||||||
Exercisable on December 31, 2012, Weighted-Average Remaining Contractual Life (in years) | 4 years 4 months 28 days | ||||||||||||||||||||||||||||||||||
Outstanding on December 31, 2012, Aggregate Intrinsic Value (in dollars) | 2,777 | ||||||||||||||||||||||||||||||||||
Expected to vest at December 31, 2012, Aggregate Intrinsic Value (in dollars) | 2,765 | ||||||||||||||||||||||||||||||||||
Exercisable on December 31, 2012, Aggregate Intrinsic Value (in dollars) | 2,200 | ||||||||||||||||||||||||||||||||||
Expiration period of stock-based awards (in years) | 10 | 10 | 15 | ||||||||||||||||||||||||||||||||
Total intrinsic value of options exercised | 780 | 631 | 524 | ||||||||||||||||||||||||||||||||
Number of Shares Available for Grant (in shares) | 132,000,000 | 29,000,000 | 32,000,000 | 80,000,000 | 48,000,000 | ||||||||||||||||||||||||||||||
Summary disclosures | |||||||||||||||||||||||||||||||||||
Paid in cash equivalent (in shares) | -16,267 | -16,000 | -19,462 | -27,650 | |||||||||||||||||||||||||||||||
Canceled/forfeited (in shares) | -800,000 | -44,000 | |||||||||||||||||||||||||||||||||
Outstanding on December 31 (in shares) | 17,584,000 | 11,366,000 | |||||||||||||||||||||||||||||||||
Granted | 7,034,000 | ||||||||||||||||||||||||||||||||||
Outstanding on January 1, 2011, Weighted-Average Grant-Date Fair Value (in dollars per share) | $25.41 | $26.53 | |||||||||||||||||||||||||||||||||
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | $29.56 | $29.95 | $25.58 | $25.17 | |||||||||||||||||||||||||||||||
Paid in cash equivalent, Weighted-Average Grant-Date Fair Value (in dollars per share) | $27.30 | ||||||||||||||||||||||||||||||||||
Canceled/forfeited, Weighted-Average Grant-Date Fair Value (in dollars per share) | $27.71 | $26.54 | |||||||||||||||||||||||||||||||||
Outstanding on December 31, 2012, Weighted-Average Grant-Date Fair Value (in dollars per share) | $28.01 | $25.41 | $26.54 | $26.53 | |||||||||||||||||||||||||||||||
Restricted shares units vested and released (in shares) | -4,301,732 | -2,084,912 | -1,850,466 | 4,302,000 | |||||||||||||||||||||||||||||||
Vested and released, Weighted-Average Grant-Date Fair Value (in dollars per share) | $26.53 | ||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award Performance Share Unit Projected Payout Percentage | 200.00% | 200.00% | |||||||||||||||||||||||||||||||||
Number of shares issued due to modification in the performance awards | 3,100,000 | 2,800,000 | 600,000 | ||||||||||||||||||||||||||||||||
Intrinsic value of shares issued due to modification in the performance awards | 98 | 22 | 91 | ||||||||||||||||||||||||||||||||
Outstanding performance share units at the Threshold Award Level (in shares) | 8,800,000 | ||||||||||||||||||||||||||||||||||
Outstanding performance share units at the Maximum Award Level (in shares) | 26,400,000 | ||||||||||||||||||||||||||||||||||
Performance share awards paid in cash equivalent, value | 0.6 | 0.7 | 0.7 | ||||||||||||||||||||||||||||||||
Performance period for determining the number of shares earned by an employee, low end of the range (in years) | 1 | ||||||||||||||||||||||||||||||||||
Performance period for determining number of shares earned by employee, high end of the range (in years) | 3 | ||||||||||||||||||||||||||||||||||
Maximum percentage of target up to which additional shares may be granted (as a percent) | 200.00% | ||||||||||||||||||||||||||||||||||
Replacement performance share unit awards at target (in shares) | 3,300,000 | ||||||||||||||||||||||||||||||||||
Accelerated Share-based Compensation Expense | 74 | ||||||||||||||||||||||||||||||||||
Restricted shares vested and released under performance share unit awards, total intrinsic value | $148 | $72 | $58 | ||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 3 years | ||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Holding Period Awards, Granted before 2008 | 2 years | ||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Holding Period Awards Granted 2008 and beyond | 1 year | ||||||||||||||||||||||||||||||||||
Common Stock, Shares Authorized | 11,200,000,000 | 11,200,000,000 | 11,200,000,000 | 5,600,000,000 | |||||||||||||||||||||||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 | ||||||||||||||||||||||||||||||||||
Exercisable (in shares) Dec 31 | 194,000,000 | ||||||||||||||||||||||||||||||||||
Exercisable on dec 31, weighted average exercise price (in dollars per share) | $24.92 | ||||||||||||||||||||||||||||||||||
Performance share units outstanding based on the target award amounts (in shares) | 5,105,000 | 5,655,000 | 6,824,000 | 100,000 | 98,000 | 4,444,000 | 774,000 | 65,000 | 92,000 |
PENSION_AND_OTHER_POSTRETIREME2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Pension benefits | ||
Changes in benefit obligations | ||
Benefit obligation at January 1 | $8,255 | $7,292 |
Service cost | 291 | 249 |
Interest cost | 388 | 391 |
Foreign currency exchange rate changes | -7 | 30 |
Amendments | -3 | -57 |
Actuarial loss (gain) | 1,259 | 773 |
Benefits paid | -420 | -440 |
Settlements | -35 | -24 |
Curtailments | 6 | 0 |
Special termination benefits | 1 | 8 |
Other | -42 | 33 |
Benefit obligation at December 31 | 9,693 | 8,255 |
Fair value of plan assets | ||
Fair value of plan assets at January 1 | 6,171 | 5,497 |
Actual return on plan assets | 822 | 73 |
Employer contributions | 1,056 | 1,001 |
Foreign currency exchange rate changes | -17 | -1 |
Benefits paid | -366 | -374 |
Settlements | -34 | -27 |
Other | -48 | 2 |
Fair value of plan assets at December 31 | 7,584 | 6,171 |
Net liability recognized | -2,109 | -2,084 |
Accumulated benefit obligation for pension plan | 9,345 | 7,958 |
Benefits paid from company assets for unfunded pension plans | 54 | 66 |
Pension and other benefit amounts recognized in our consolidated balance sheets | ||
Noncurrent asset | 395 | 468 |
Current liability | -73 | -68 |
Long-term liability | -2,431 | -2,484 |
Net liability recognized | -2,109 | -2,084 |
Projected benefit obligations in excess of the fair value of plan assets | ||
Projected benefit obligation | 9,161 | 7,591 |
Fair value of plan assets | 6,659 | 5,048 |
Accumulated benefit obligations in excess of the fair value of plan assets | ||
Accumulated benefit obligation | 8,736 | 7,277 |
Fair value of plan assets | 6,546 | 4,998 |
U.S. Plan | ||
Fair value of plan assets | ||
Fair value of plan assets at December 31 | 5,549 | 4,274 |
Primary U.S. Plan | ||
Defined Benefit Plan Disclosure | ||
Portion of projected pension benefit obligation represented by the defined benefit plan (as a percent) | 59.00% | |
Portion of projected pension plan assets represented by the defined benefit plan (as a percent) | 64.00% | |
Non U. S. Plan | ||
Fair value of plan assets | ||
Fair value of plan assets at December 31 | 2,035 | 1,897 |
Other benefits | ||
Changes in benefit obligations | ||
Benefit obligation at January 1 | 953 | 889 |
Service cost | 34 | 32 |
Interest cost | 43 | 45 |
Foreign currency exchange rate changes | 3 | 2 |
Amendments | -2 | -12 |
Actuarial loss (gain) | 115 | 45 |
Benefits paid | -53 | -63 |
Settlements | 0 | 0 |
Curtailments | 0 | 0 |
Special termination benefits | 0 | 3 |
Other | 11 | 12 |
Benefit obligation at December 31 | 1,104 | 953 |
Fair value of plan assets | ||
Fair value of plan assets at January 1 | 185 | 187 |
Actual return on plan assets | 16 | -4 |
Employer contributions | 0 | 0 |
Foreign currency exchange rate changes | 0 | 0 |
Benefits paid | -2 | -1 |
Settlements | 0 | 0 |
Other | 3 | 3 |
Fair value of plan assets at December 31 | 202 | 185 |
Net liability recognized | -902 | -768 |
Benefits paid from company assets for unfunded pension plans | 51 | 62 |
Pension and other benefit amounts recognized in our consolidated balance sheets | ||
Noncurrent asset | 0 | 0 |
Current liability | -21 | -21 |
Long-term liability | -881 | -747 |
Net liability recognized | ($902) | ($768) |
PENSION_AND_OTHER_POSTRETIREME3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $7,584 | $6,171 | $5,497 |
Defined Benefit Plan, Benefits Paid for Unfunded Plans | 54 | 66 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 5,549 | 4,274 | |
Non U. S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 2,035 | 1,897 | |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 202 | 185 | 187 |
Defined Benefit Plan, Benefits Paid for Unfunded Plans | 51 | 62 | |
Cash and cash equivalents | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 386 | 227 | |
Cash and cash equivalents | U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 299 | 104 | |
Cash and cash equivalents | Non U. S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 87 | 123 | |
Cash and cash equivalents | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 13 | 86 | |
Equity securities U.S.-based companies | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 1,881 | 1,395 | |
Equity securities U.S.-based companies | U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 1,844 | 1,362 | |
Equity securities U.S.-based companies | Non U. S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 37 | 33 | |
Equity securities U.S.-based companies | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 81 | 70 | |
Equity securities International-based companies | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 964 | 953 | |
Equity securities International-based companies | U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 324 | 630 | |
Equity securities International-based companies | Non U. S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 640 | 323 | |
Equity securities International-based companies | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 4 | 13 | |
Government bonds | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 562 | 773 | |
Government bonds | U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 399 | 358 | |
Government bonds | Non U. S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 163 | 415 | |
Government bonds | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 78 | 2 | |
Corporate bonds and debt securities | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 982 | 718 | |
Corporate bonds and debt securities | U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 856 | 669 | |
Corporate bonds and debt securities | Non U. S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 126 | 49 | |
Corporate bonds and debt securities | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 5 | 6 | |
Mutual, pooled and commingled funds | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 1,510 | 729 | |
Mutual, pooled and commingled funds | U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 1,057 | 323 | |
Mutual, pooled and commingled funds | Non U. S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 453 | 406 | |
Mutual, pooled and commingled funds | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 16 | 3 | |
Hedge funds/limited partnerships | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 525 | 489 | |
Hedge funds/limited partnerships | U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 496 | 458 | |
Hedge funds/limited partnerships | Non U. S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 29 | 31 | |
Hedge funds/limited partnerships | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 3 | 2 | |
Real estate | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 257 | 270 | |
Real estate | U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 248 | 256 | |
Real estate | Non U. S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 9 | 14 | |
Real estate | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 2 | 2 | |
Other | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 517 | 617 | |
Other | U.S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 26 | 114 | |
Other | Non U. S. Plan | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 491 | 503 | |
Other | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $0 | $1 |
PENSION_AND_OTHER_POSTRETIREME4
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details 3) | 12 Months Ended |
Dec. 31, 2012 | |
U.S. Plan | |
Defined Benefit Plan Disclosure | |
Maximum portion of plan assets for which an investment manager is responsible (as a percent) | 10.00% |
Target allocation, equity securities (as a percent) | 42.00% |
Target allocation, debt securities (as a percent) | 30.00% |
Target allocation, alternative investments (as a percent) | 28.00% |
Investment in Company common stock (as a percent) | 2.00% |
Non U. S. Plan | |
Defined Benefit Plan Disclosure | |
Investment Strategy Allocation Targets For International Plans | 55.00% |
Target allocation, equity securities (as a percent) | 16.00% |
Target allocation, alternative investments (as a percent) | 31.00% |
Target allocation, fixed income securities (as a percent) | 15.00% |
Target allocation, mutual, pooled and commingled funds (as a percent) | 38.00% |
European Pensions Plans [Member] | |
Defined Benefit Plan Disclosure | |
Investment Strategy Allocation Targets For International Plans | 45.00% |
Target allocation, equity securities (as a percent) | 56.00% |
Target allocation, fixed income securities (as a percent) | 44.00% |
Global equities [Member] | U.S. Plan | |
Defined Benefit Plan Disclosure | |
Target allocation, equity securities (as a percent) | 60.00% |
Investment in Company common stock (as a percent) | 5.00% |
Emerging market equities | U.S. Plan | |
Defined Benefit Plan Disclosure | |
Target allocation, equity securities (as a percent) | 16.00% |
Domestic small- and mid-cap equities | U.S. Plan | |
Defined Benefit Plan Disclosure | |
Target allocation, equity securities (as a percent) | 24.00% |
Long-duration bonds | U.S. Plan | |
Defined Benefit Plan Disclosure | |
Target allocation, debt securities (as a percent) | 33.00% |
Multi-strategy alternative credit managers | U.S. Plan | |
Defined Benefit Plan Disclosure | |
Target allocation, debt securities (as a percent) | 67.00% |
PENSION_AND_OTHER_POSTRETIREME5
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Pension benefits | |||
Net periodic pension and other Postretirement benefit cost | |||
Service cost | $291 | $249 | $143 |
Interest cost | 388 | 391 | 260 |
Expected return on plan assets | -573 | -508 | -285 |
Amortization of prior service cost (credit) | -2 | 5 | 5 |
Amortization of actuarial loss | 137 | 82 | 83 |
Net periodic benefit cost (credit) | 241 | 219 | 206 |
Settlement charge | 3 | 3 | 6 |
Curtailment charge | 6 | 0 | 0 |
Special termination benefits | 1 | 8 | 0 |
Total cost (credit) recognized in the statement of income | 251 | 230 | 212 |
Changes in AOCI for our benefit plans, pretax | |||
Beginning balance in AOCI | -2,169 | -1,101 | |
Recognized prior service cost (credit) | -2 | 5 | |
Recognized net actuarial loss (gain) | 140 | 85 | |
Prior service credit (cost) arising in the current year | 3 | 57 | |
Net actuarial (loss) gain arising in the current year | -1,009 | -1,208 | |
Foreign currency translation gain (loss) | 5 | -7 | |
Ending balance in AOCI | -3,032 | -2,169 | -1,101 |
Prior service credit (cost) | 16 | 14 | |
Net actuarial loss | -3,048 | -2,183 | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||
Amounts in AOCI expected to be recognized as component of net periodic pension cost in next fiscal year | 235 | ||
Amortization of prior service cost (credit) | -3 | ||
Amortization of actuarial loss | 238 | ||
Weighted average assumptions used in computing the benefit obligations | |||
Discount rate (as a percent) | 4.00% | 4.75% | |
Rate of increase in compensation levels (as a percent) | 3.50% | 3.25% | |
Weighted-average assumptions used in computing net periodic benefit cost | |||
Discount rate (as a percent) | 4.75% | 5.50% | 5.75% |
Rate of increase in compensation levels (as a percent) | 3.25% | 4.00% | 3.75% |
Expected long-term rate of return on plan assets (as a percent) | 8.25% | 8.25% | 8.00% |
U.S. Plan | |||
Weighted-average assumptions used in computing net periodic benefit cost | |||
Expected long-term rate of return on plan assets (as a percent) | 8.50% | ||
The 10-year annualized return on plan assets (as a percent) | 8.40% | ||
The 15-year annualized return on plan assets (as a percent) | 6.10% | ||
Annualized return on plan assets since inception (as a percent) | 11.00% | ||
Other benefits | |||
Net periodic pension and other Postretirement benefit cost | |||
Service cost | 34 | 32 | 24 |
Interest cost | 43 | 45 | 30 |
Expected return on plan assets | -8 | -8 | -8 |
Amortization of prior service cost (credit) | -52 | -61 | -61 |
Amortization of actuarial loss | 6 | 2 | 3 |
Net periodic benefit cost (credit) | 23 | 10 | -12 |
Settlement charge | 0 | 0 | 0 |
Curtailment charge | 0 | 0 | 0 |
Special termination benefits | 0 | 3 | 1 |
Total cost (credit) recognized in the statement of income | 23 | 13 | -11 |
Changes in AOCI for our benefit plans, pretax | |||
Beginning balance in AOCI | -34 | 72 | |
Recognized prior service cost (credit) | -52 | -61 | |
Recognized net actuarial loss (gain) | 6 | 2 | |
Prior service credit (cost) arising in the current year | 2 | 12 | |
Net actuarial (loss) gain arising in the current year | -107 | -57 | |
Foreign currency translation gain (loss) | -1 | -2 | |
Ending balance in AOCI | -186 | -34 | 72 |
Prior service credit (cost) | 23 | 73 | |
Net actuarial loss | -209 | -107 | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||
Amounts in AOCI expected to be recognized as component of net periodic pension cost in next fiscal year | 1 | ||
Amortization of prior service cost (credit) | -10 | ||
Amortization of actuarial loss | $11 | ||
Weighted average assumptions used in computing the benefit obligations | |||
Discount rate (as a percent) | 4.00% | 4.75% | |
Weighted-average assumptions used in computing net periodic benefit cost | |||
Discount rate (as a percent) | 4.75% | 5.25% | 5.50% |
Expected long-term rate of return on plan assets (as a percent) | 4.75% | 4.75% | 4.75% |
PENSION_AND_OTHER_POSTRETIREME6
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Apr. 02, 2010 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure | |||
Contributions expected to be made in next fiscal year | $640 | ||
Estimated future benefit payments for funded and unfunded plans | |||
2013 | 510 | ||
2014 | 534 | ||
2015 | 557 | ||
2016 | 575 | ||
2017 | 608 | ||
2018-2022 | 3,281 | ||
Assumed health care cost trend rates | |||
Health care cost trend rate assumed for the next year (as a percent) | 8.00% | 8.00% | |
Rate at which the cost trend rate is assumed to decline, the ultimate trend rate (as a percent) | 5.00% | 5.00% | |
Year in which the rate reaches the ultimate trend rate | 2019 | 2018 | |
Effect of enactment of Patient Protection and Affordable Care Act (HR 3590) on deferred tax assets | 14 | ||
Pension benefits | |||
Estimated future benefit payments for funded and unfunded plans | |||
2013 | 452 | ||
2014 | 473 | ||
2015 | 493 | ||
2016 | 510 | ||
2017 | 542 | ||
2018-2022 | 2,929 | ||
Other benefits | |||
Estimated future benefit payments for funded and unfunded plans | |||
2013 | 58 | ||
2014 | 61 | ||
2015 | 64 | ||
2016 | 65 | ||
2017 | 66 | ||
2018-2022 | 352 | ||
Estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, for the period 2013-2017 | 18 | ||
Estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, for the period 2018-2022 | 22 | ||
Primary US Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Contributions expected to be made in next fiscal year | $359 |
PENSION_AND_OTHER_POSTRETIREME7
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Multi-Employer Plans | |||
Pension expense for multiemployer plans | $31 | $69 | |
Defined contribution plan - U. S. Plan | |||
Defined Contribution Plan Disclosures | |||
Company costs associated with defined contribution plans | 93 | 78 | 44 |
Defined contribution plan - non U. S. Plan | |||
Defined Contribution Plan Disclosures | |||
Company costs associated with defined contribution plans | 29 | 31 | 35 |
Integration of CCE's North American Operations [Member] | |||
Multi-Employer Plans | |||
Pension expense related to withdrawal from certain of the plans | $32 | ||
Primary US Plan [Member] | |||
Defined Contribution Plan Disclosures | |||
Maximum employer contribution as a percentage of compensation (as a percent) | 3.50% |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Income Taxes [Abstract] | |||
Income before income taxes, United States | $3,526,000,000 | $3,029,000,000 | $7,188,000,000 |
Income before income taxes, International | 8,283,000,000 | 8,429,000,000 | 7,019,000,000 |
INCOME BEFORE INCOME TAXES | 11,809,000,000 | 11,458,000,000 | 14,207,000,000 |
Income tax payments | 981,000,000 | 1,612,000,000 | 1,766,000,000 |
Income tax expense (benefit) | |||
Current income tax expense (benefit), United States | 602,000,000 | 286,000,000 | 469,000,000 |
Deferred income tax expense (benefit), United States | 936,000,000 | 898,000,000 | 586,000,000 |
Current income tax expense (benefit), State and Local | 74,000,000 | 66,000,000 | 85,000,000 |
Deferred income tax expense (benefit), State and Local | 33,000,000 | 27,000,000 | 2,000,000 |
Current income tax expense (benefit), International | 1,415,000,000 | 1,425,000,000 | 1,212,000,000 |
Deferred income tax expense (benefit), International | -337,000,000 | 110,000,000 | 16,000,000 |
Current income tax expense (benefit), total | 2,091,000,000 | 1,777,000,000 | 1,766,000,000 |
Deferred income tax expense (benefit), total | 632,000,000 | 1,035,000,000 | 604,000,000 |
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Statutory U.S. federal tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State and local income taxes - net of federal benefit (as a percent) | 1.10% | 0.90% | 0.60% |
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (as a percent) | -9.50% | -9.50% | -5.60% |
Reversal of valuation allowance (as a percent) | -2.40% | 0.00% | 0.00% |
Equity income or loss (as a percent) | -2.00% | -1.40% | -1.90% |
CCE transaction (as a percent) | 0.00% | 0.00% | -12.50% |
Sale of Norwegian and Swedish bottling operations (as a percent) | 0.00% | 0.00% | 0.40% |
Other operating charges (as a percent) | 0.40% | 0.30% | 0.40% |
Other - net (as a percent) | 0.50% | -0.80% | 0.30% |
Effective tax rate (as a percent) | 23.10% | 24.50% | 16.70% |
Tax expense (benefit) related to uncertain tax positions, including interest and penalties, foreign | 133,000,000 | -6,000,000 | 265,000,000 |
Income Tax Expense (Benefit) Unusual or Infrequent Items Transaction Gains (Losses) | 57,000,000 | 299,000,000 | |
Net Gains From Investee Transactions and Equity Investment Sales | 76,000,000 | 641,000,000 | |
Proportionate share in impairment charges of equity method investee | -8,000,000 | 53,000,000 | 66,000,000 |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Impairment Losses | 0.00% | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 17,000,000 | 26,000,000 | |
Effective Income Tax Rate Reconciliation, Other Gains | 0.30% | 0.70% | |
Income Tax expenses (benefit) of unusual or infrequent items recorded by our equity method investees | -7,000,000 | -9,000,000 | |
Effective tax impact of unusual or infrequent items recorded by our equity method investees (as a percent) | 0.10% | 0.10% | |
Income Tax Expense (Benefit) Unusual or Infrequent Items Productivity, Integration, Restructuring, Transaction Costs and other activities | 95,000,000 | 224,000,000 | 223,000,000 |
Unusual or Infrequent Item Operating | 447,000,000 | 732,000,000 | 819,000,000 |
Effective tax impact of restructuring charges, asset impairments, transacton gains and others one-time items (as a percent) | 0.40% | 0.30% | 0.40% |
Income Tax Expense (Benefit) Amortization of Favorable Supply Contracts | -8,000,000 | ||
Income Tax Expense (Benefit) Debt Repurchased, Extinguished and other Financial Items | -3,000,000 | -114,000,000 | |
Other infrequent or unusual charges net | 19,000,000 | 493,000,000 | |
Net charge on exchange, repayment or extinguishment of long-term debt | 9,000,000 | ||
Income Tax Reconciliation, tax benefit due to impairments | -14,000,000 | ||
Tax expense (benefit) related to uncertain tax positions, including interest and penalties, domestic | -2,000,000 | 31,000,000 | |
Uncertain tax positions, including interest and penalties, foreign (as a percent) | 1.10% | 1.90% | |
Tax benefit (charge) associated with the reversal of valuation allowance | 283,000,000 | ||
Effective income tax rate impact related to debt extinguishment, remeasurement of subsidiary assets, other than temporary charges and donation (as a percent) | 0.50% | ||
Effective income tax rate uncertain tax positions, including interest and penalties, domestic (as a percent) | 0.20% | ||
Income Tax Expense (Benefit) Related to PreExisting Relationship | -99,000,000 | ||
Gross balance of unrecognized tax benefit | |||
Beginning balance of unrecognized tax benefits | 320,000,000 | 387,000,000 | 354,000,000 |
Increases related to prior period tax positions | 69,000,000 | 9,000,000 | 26,000,000 |
Decreases related to prior period tax positions | -15,000,000 | -19,000,000 | -10,000,000 |
Increases related to current period tax positions | 23,000,000 | 6,000,000 | 33,000,000 |
Decreases related to current period tax positions | 0 | -1,000,000 | 0 |
Decreases related to settlements with taxing authorities | -45,000,000 | -5,000,000 | 0 |
Reductions as a result of a lapse of the applicable statute of limitations | -36,000,000 | -46,000,000 | -1,000,000 |
Increase related to acquisition of CCE's former North American business | 0 | 0 | 6,000,000 |
Increases (decreases) from effects of foreign currency exchange rates | -14,000,000 | -11,000,000 | -21,000,000 |
Ending balance of unrecognized tax benefits | 302,000,000 | 320,000,000 | 387,000,000 |
Alternative jurisdictional tax benefits if tax positions do not prevail | 115,000,000 | ||
Impact of unrecognized tax benefits on effective tax rate if Company were to prevail on all uncertain tax positions | 187,000,000 | ||
Unrecognized tax benefits, interest and penalties accrued | 113,000,000 | 110,000,000 | 112,000,000 |
Unrecognized tax expense (benefits), interest and penalties expense | 33,000,000 | -2,000,000 | 17,000,000 |
Undistributed earnings of foreign subsidiaries | 26,900,000,000 | ||
Disposal of Norwegian and Swedish Bottling Operations [Member] | |||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Income Tax Expense (Benefit) Unusual or Infrequent Items Transaction Gains (Losses) | 261,000,000 | ||
Income Tax Expense (Benefit) Finalization of Working Capital Adjustments | -2,000,000 | ||
Disposal of certain investments (as a percent) | 0.40% | ||
Coca Cola Enterprises Inc [Member] | |||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Gain related to remeasurement of our equity investment in CCE to fair value | 4,978,000,000 | ||
Tax benefit related to remeasurement of equity investment to fair value upon acquisition of business | -34,000,000 | ||
Effective Income tax rate reconciliation reversal of deferred tax liabilities | -12.50% | ||
Corporate | |||
Income Taxes [Abstract] | |||
INCOME BEFORE INCOME TAXES | -1,240,000,000 | -975,000,000 | 2,984,000,000 |
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Net Gains From Investee Transactions and Equity Investment Sales | 122,000,000 | ||
Unusual or Infrequent Item Operating | 38,000,000 | 164,000,000 | 485,000,000 |
Equity Method Investments Impairment | 41,000,000 | ||
Corporate | Disposal of Norwegian and Swedish Bottling Operations [Member] | |||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | -5,000,000 | 597,000,000 | |
Corporate | Coca Cola Enterprises Inc [Member] | |||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Gain related to remeasurement of our equity investment in CCE to fair value | 4,978,000,000 | ||
Charge related to preexisting relationship | 265,000,000 | ||
Productivity and Reinvestment [Member] | |||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Unusual or Infrequent Item Operating | $416,000,000 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Deferred tax assets: | |||
Property, plant and equipment | $89 | $224 | |
Trademarks and other intangible assets, deferred tax asset | 77 | 68 | |
Equity method investments (including foreign currency translation adjustment), deferred tax asset | 209 | 278 | |
Derivative financial instrument, deferred tax asset | 116 | 43 | |
Other liabilities, deferred tax asset | 1,178 | 1,257 | |
Benefit plans, deferred tax asset | 1,808 | 2,022 | |
Net operating/capital loss carryforwards, deferred tax asset | 782 | 818 | |
Other, deferred tax asset | 320 | 418 | |
Gross deferred tax assets | 4,579 | 5,128 | |
Valuation allowances | -487 | -859 | |
Total deferred tax assets | 4,092 | 4,269 | |
Deferred tax liabilities: | |||
Property, plant and equipment | -2,204 | -2,039 | |
Trademarks and other intangible assets, deferred tax liabilities | -4,133 | -4,201 | |
Equity method investments (including foreign currency translation adjustment), deferred tax liability | -712 | -816 | |
Derivative financial instruments, deferred tax liabilities | -140 | -129 | |
Other liabilities, deferred tax liability | -144 | -129 | |
Benefit plans, deferred tax liability | -495 | -445 | |
Other, deferred tax liability | -929 | -753 | |
Total deferred tax liabilities | -8,757 | -8,512 | |
Net deferred tax liabilities | -4,665 | -4,243 | |
Noncurrent deferred tax assets recorded in other assets | 403 | 243 | |
Current deferred tax assets recorded in prepaid expenses and other assets | 244 | 227 | |
Current deferred tax liabilities recorded in accounts payable and accrued expenses | 331 | 19 | |
Net deferred tax liabilities located in countries outside the United States | -70 | 491 | |
Loss carryforwards | 6,494 | ||
Loss carryforwards expiring within next five years | 279 | ||
Schedule of income tax | |||
Favorable impact of tax incentive grants | 168 | 193 | 145 |
Effective Income Tax Rate Reconciiliation Preexisting Relationship Charges | 37.00% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% | 35.00% | 35.00% |
Coca-Cola Enterprises Inc.'s ("CCE") North American business | |||
Schedule of income tax | |||
Charge related to preexisting relationships | 1 | 265 | |
Coca Cola Enterprises Inc [Member] | |||
Schedule of income tax | |||
Gain related to remeasurement of our equity investment in CCE to fair value | 4,978 | ||
Tax benefit related to remeasurement of equity investment to fair value upon acquisition of business | -34 | ||
Coca Cola Enterprises Inc [Member] | Corporate | |||
Schedule of income tax | |||
Gain related to remeasurement of our equity investment in CCE to fair value | 4,978 | ||
Charge related to preexisting relationships | $265 |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Deferred tax asset valuation allowances | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease) in Amount | ($372) | ($91) | $269 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Deferred tax asset valuation allowances | |||
Balance at beginning of year | 859 | 950 | 681 |
Increase due to our acquisition of CCE's former North American business | 0 | 0 | 291 |
Additions | 126 | 138 | 115 |
Decrease due to transfer to assets held for sale | -146 | 0 | 0 |
Deductions | -352 | -229 | -137 |
Balance at end of year | $487 | $859 | $950 |
OTHER_COMPREHENSIVE_INCOME_Det
OTHER COMPREHENSIVE INCOME (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
AOCI attributable to the shareowners of The Coca-Cola Company | |||
Accumulated other comprehensive income (loss) | ($3,385) | ($2,774) | |
After-Tax Amount | |||
Net foreign currency translation adjustment | -182 | -692 | -947 |
Derivatives: | |||
Net gain (loss) on derivatives | 99 | 145 | -120 |
Available-for-sale securities: | |||
Net change in unrealized gain (loss) on available-for-sale securities | 178 | -7 | 102 |
Pension and other benefits liabilities: | |||
Net change in pension and other benefit liabilities | -668 | -763 | 282 |
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | |||
AOCI attributable to the shareowners of The Coca-Cola Company | |||
Foreign currency translation adjustment | -1,665 | -1,445 | |
Accumulated derivative net gains (losses) | 46 | -53 | |
Unrealized net gains (losses) on available-for-sale securities | 338 | 160 | |
Adjustment to pension and other benefit liabilities | -2,104 | -1,436 | |
Accumulated other comprehensive income (loss) | -3,385 | -2,774 | |
Before-Tax Amount | |||
Net foreign currency translation adjustment | -219 | -639 | -966 |
Derivatives: | |||
Unrealized gains (losses) arising during the year | 77 | -3 | -239 |
Reclassification adjustments recognized in net income | 82 | 243 | 17 |
Net gain (loss) on derivatives | 159 | 240 | -222 |
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the year | 248 | -4 | 115 |
Reclassification adjustments recognized in net income | -6 | 10 | 18 |
Net change in unrealized gain (loss) in available-for-sale securities | 242 | 6 | 133 |
Pension and other benefit liabilities: | |||
Net pension and other benefits arisign during the year | -1,132 | -1,206 | 397 |
Reclassification adjustments recognized in net income | 92 | 31 | 35 |
Net change in pension and other benefits liabilities | -1,040 | -1,175 | 432 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | -858 | -1,568 | -623 |
Income Tax | |||
Net foreign currency translation adjustment | -1 | -1 | 31 |
Derivatives: | |||
Unrealized gains (losses) arising during the year | -29 | -1 | 108 |
Reclassification adjustments recognized in net income | -31 | -94 | -6 |
Net gain (loss) on derivatives | -60 | -95 | 102 |
Availiable-for-sale securities: | |||
Unrealized gains (losses) arising during the year | -64 | -8 | -25 |
Reclassification adjustments recognized in net income | 0 | -5 | -6 |
Net change in unrealized gain (loss) on availiable-for-sale securities | -64 | -13 | -31 |
Pension and other benefits liabilities: | |||
Net pension and other benefits arising during the year | 405 | 423 | -139 |
Reclassification adjustments recognized in income | -33 | -11 | -11 |
Net change in pension and other benefit liabilities | 372 | 412 | -150 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | 247 | 303 | -48 |
After-Tax Amount | |||
Net foreign currency translation adjustment | -220 | -640 | -935 |
Derivatives: | |||
Unrealized gains (losses) arising during the year | 48 | -4 | -131 |
Reclassification adjustments recognized in net income | 51 | 149 | 11 |
Net gain (loss) on derivatives | 99 | 145 | -120 |
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the year | 184 | -12 | 90 |
Reclassification adjustments recognized in net income | -6 | 5 | 12 |
Net change in unrealized gain (loss) on available-for-sale securities | 178 | -7 | 102 |
Pension and other benefits liabilities: | |||
Net pension and other benefits arising during the year | -727 | -783 | 258 |
Reclassification adjustments recognized in net income | 59 | 20 | 24 |
Net change in pension and other benefit liabilities | -668 | -763 | 282 |
Other comprehensive income (loss) attributable to The Coca-Cola Cpmpany | ($611) | ($1,265) | ($671) |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading securities | $266 | $211 |
Level 1 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading securities | 146 | 166 |
Available-for-sale securities | 1,390 | 1,071 |
Derivatives | 47 | 39 |
Total assets | 1,583 | 1,276 |
Derivatives | 35 | 5 |
Total liabilities | 35 | 5 |
Level 2 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading securities | 116 | 41 |
Available-for-sale securities | 3,068 | 214 |
Derivatives | 583 | 467 |
Total assets | 3,767 | 722 |
Derivatives | 98 | 201 |
Total liabilities | 98 | 201 |
Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading securities | 4 | 4 |
Available-for-sale securities | 135 | 116 |
Derivatives | 0 | 0 |
Total assets | 139 | 120 |
Derivatives | 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 | -116 | -117 |
Total assets | -116 | -117 |
Derivatives | -121 | -121 |
Total liabilities | -121 | -121 |
Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading securities | 266 | 211 |
Available-for-sale securities | 4,593 | 1,401 |
Derivatives | 514 | 389 |
Total assets | 5,373 | 2,001 |
Derivatives | 12 | 85 |
Total liabilities | $12 | $85 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 |
Coca-Cola FEMSA and Mikuni | Available-for-Sale Securities | Equity method investments | Japans events | Level 1 | Level 1 | Level 1 | Level 1 | Level 3 | Level 3 | Level 3 | Level 3 | Andina and Polar merger | Andina and Polar merger | Philippines Bottling Operations | Philippines Bottling Operations | Merger of Embotelladoras Arca SAB de CV and Grupo Continental SAB | Other Investments | Other Investments | ||||
Coca-Cola FEMSA | Coca-Cola FEMSA | Mikuni | Available-for-Sale Securities | Equity method investments | Cost method investment | Japans events | Japans events | Level 1 | Level 3 | Level 1 | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | ||||||||||
Inventories | Cold-drink equipment | Equity method investments | Equity method investments | Level 3 | Level 3 | |||||||||||||||||
Assets measured at fair value on a nonrecurring basis | ||||||||||||||||||||||
Exchange of investment in equity securities | $185 | $185 | ||||||||||||||||||||
Assets held for sale | -108 | -108 | ||||||||||||||||||||
Valuation of shares in equity method investee | 76 | 641 | 10 | 122 | ||||||||||||||||||
Cost method investments | -16 | 0 | -16 | |||||||||||||||||||
Equity Method Investments | 0 | -41 | ||||||||||||||||||||
Other-than-temporary impairment charges, available-for-sale securities | -17 | -26 | 0 | -17 | ||||||||||||||||||
Inventories | 0 | -84 | -11 | |||||||||||||||||||
Cold-drink equipment | 0 | -1 | -1 | |||||||||||||||||||
Total | 71 | 470 | ||||||||||||||||||||
Premium paid for ownership interest | 82 | |||||||||||||||||||||
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 92 | |||||||||||||||||||||
Fair Value Measurement with Unobservable Inputs, Purchased Annuity Contracts | 510 | 514 | ||||||||||||||||||||
Long-term Debt | 16,313 | 15,697 | ||||||||||||||||||||
Long-term Debt, Fair Value | 17,157 | 16,360 | ||||||||||||||||||||
Gain on Exchange of Equity Securities | 418 | |||||||||||||||||||||
Gain (Loss) on assets held for sale | $0 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Available-for-Sale Securities | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | |||
Cash and cash equivalents | Cash and cash equivalents | Equity securities U.S.-based companies | Equity securities U.S.-based companies | Equity securities International-based companies | Equity securities International-based companies | Government bonds | Government bonds | Corporate bonds and debt securities | Corporate bonds and debt securities | Mutual, pooled and commingled funds | Mutual, pooled and commingled funds | Hedge funds/limited partnerships | Hedge funds/limited partnerships | Real estate | Real estate | Other | Other | Cash and cash equivalents | Cash and cash equivalents | Equity securities U.S.-based companies | Equity securities U.S.-based companies | Equity securities International-based companies | Equity securities International-based companies | Government bonds | Government bonds | Corporate bonds and debt securities | Corporate bonds and debt securities | Mutual, pooled and commingled funds | Mutual, pooled and commingled funds | Hedge funds/limited partnerships | Hedge funds/limited partnerships | Real estate | Real estate | Other | Other | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Available-for-Sale Securities | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | Other benefits | ||||||||||
Cash and cash equivalents | Cash and cash equivalents | Equity securities U.S.-based companies | Equity securities U.S.-based companies | Equity securities International-based companies | Equity securities International-based companies | Government bonds | Government bonds | Corporate bonds and debt securities | Corporate bonds and debt securities | Mutual, pooled and commingled funds | Mutual, pooled and commingled funds | Hedge funds/limited partnerships | Hedge funds/limited partnerships | Real estate | Real estate | Other | Other | Cash and cash equivalents | Cash and cash equivalents | Equity securities U.S.-based companies | Equity securities U.S.-based companies | Equity securities International-based companies | Equity securities International-based companies | Government bonds | Government bonds | Corporate bonds and debt securities | Corporate bonds and debt securities | Mutual, pooled and commingled funds | Mutual, pooled and commingled funds | Hedge funds/limited partnerships | Hedge funds/limited partnerships | Real estate | Real estate | Other | Other | Cash and cash equivalents | Cash and cash equivalents | Equity securities U.S.-based companies | Equity securities U.S.-based companies | Equity securities International-based companies | Equity securities International-based companies | Government bonds | Government bonds | Corporate bonds and debt securities | Corporate bonds and debt securities | Mutual, pooled and commingled funds | Mutual, pooled and commingled funds | Hedge funds/limited partnerships | Hedge funds/limited partnerships | Real estate | Real estate | Other | Other | Cash and cash equivalents | Cash and cash equivalents | Equity securities U.S.-based companies | Equity securities U.S.-based companies | Equity securities International-based companies | Equity securities International-based companies | Government bonds | Government bonds | Corporate bonds and debt securities | Corporate bonds and debt securities | Mutual, pooled and commingled funds | Mutual, pooled and commingled funds | Hedge funds/limited partnerships | Hedge funds/limited partnerships | Real estate | Real estate | Other | Other | Cash and cash equivalents | Cash and cash equivalents | Equity securities | Equity securities | Equity securities U.S.-based companies | Equity securities U.S.-based companies | Equity securities International-based companies | Equity securities International-based companies | Government bonds | Government bonds | Corporate bonds and debt securities | Corporate bonds and debt securities | Mutual, pooled and commingled funds | Mutual, pooled and commingled funds | Hedge funds/limited partnerships | Hedge funds/limited partnerships | Real estate | Real estate | Other | Other | Cash and cash equivalents | Cash and cash equivalents | Equity securities U.S.-based companies | Equity securities U.S.-based companies | Equity securities International-based companies | Equity securities International-based companies | Government bonds | Government bonds | Corporate bonds and debt securities | Corporate bonds and debt securities | Mutual, pooled and commingled funds | Mutual, pooled and commingled funds | Hedge funds/limited partnerships | Hedge funds/limited partnerships | Real estate | Real estate | Other | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment charges, available-for-sale securities | $17 | $26 | $0 | $17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Plan Assets | 7,584 | 6,171 | 5,497 | 386 | 227 | 1,881 | 1,395 | 964 | 953 | 562 | 773 | 982 | 718 | 1,510 | 729 | 525 | 489 | 257 | 270 | 517 | 617 | 202 | 185 | 187 | 13 | 86 | 81 | 70 | 4 | 13 | 78 | 2 | 5 | 6 | 16 | 3 | 3 | 2 | 2 | 2 | 0 | 1 | 3,448 | 2,550 | 187 | 152 | 1,847 | 1,366 | 910 | 865 | 0 | 0 | 0 | 0 | 504 | 167 | 0 | 0 | 0 | 0 | 0 | 0 | 172 | 83 | 1 | 0 | 81 | 70 | 4 | 13 | 75 | 0 | 0 | 0 | 11 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,955 | 2,459 | 199 | 75 | 20 | 15 | 54 | 82 | 562 | 773 | 982 | 718 | 1,006 | 557 | 125 | 140 | 0 | 0 | 7 | 99 | 26 | 98 | 12 | 86 | 0 | 0 | 0 | 0 | 3 | 2 | 5 | 6 | 5 | 3 | 1 | 0 | 0 | 0 | 0 | 1 | 1,181 | 1,162 | 0 | 0 | 14 | 14 | 0 | 6 | 0 | 0 | 0 | 0 | 0 | 5 | 400 | 349 | 257 | 270 | 510 | 518 | 4 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 2 | 2 | 2 | 0 | 0 | ||||||
Reconciliation of the beginning and ending balance of Level 3 assets for U.S. and non-U.S. pension plans | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the beginning of the period | 1,162 | 897 | 20 | 15 | 5 | 20 | 349 | 317 | 270 | 242 | 518 | 303 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related to assets still held at the reporting date | 6 | 104 | 0 | 4 | 0 | -5 | -8 | 9 | 13 | 35 | 1 | 61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related to assets sold during the year | 27 | -2 | 0 | 0 | 0 | 6 | 24 | -3 | 3 | -5 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases, sales and settlements-net | 1 | 153 | 0 | -1 | -5 | -16 | 35 | 26 | -27 | -2 | -2 | 146 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in and/or out of Level 3-net | -12 | 5 | -6 | 2 | 0 | 0 | 0 | 1 | -2 | 0 | -4 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | -3 | 5 | 0 | 0 | 0 | 0 | 0 | -1 | 0 | 0 | -3 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at the end of the period | $1,181 | $1,162 | $14 | $20 | $0 | $5 | $400 | $349 | $257 | $270 | $510 | $518 |
SIGNIFICANT_OPERATING_AND_NONO1
SIGNIFICANT OPERATING AND NONOPERATING ITEMS (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Apr. 02, 2010 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 |
Merger of Embotelladoras Arca SAB de CV and Grupo Continental SAB [Member] | Andina and Polar merger | Philippines Bottling Operations | Coca-Cola Enterprises Inc. | Japans events [Member] | License Agreement with Nestle [Member] | BPW Nestle Joint Venture [Member] | Deductions from Revenue | Cost of Sales [Member] | Cost of Sales [Member] | Other operating charges [Member] | Other operating charges [Member] | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Acquisition of Coca Cola Enterprises North American Business [Member] | Acquisition of Coca Cola Enterprises North American Business [Member] | Acquisition of Coca Cola Enterprises North American Business [Member] | Venezuelan subsidiary | Venezuelan subsidiary | Productivity and Reinvestment [Member] | Restructuring charges other than productivity and productivity and reinvestments initiatives [Member] | Productivity Initiatives | Productivity Initiatives | Integration of CCE's North American Operations [Member] | Level 1 | Level 1 | Level 1 | ||||
Japans events [Member] | Japans events [Member] | Brazil Juice Expenses [Member] | Japans events [Member] | Brazil Juice Expenses [Member] | Merger of Embotelladoras Arca SAB de CV and Grupo Continental SAB [Member] | Andina and Polar merger | Coca-Cola Enterprises Inc. | Coca-Cola Embonor SA [Member] | Leao Junior SA [Member] | Disposal of Norwegian and Swedish Bottling Operations [Member] | Disposal of Norwegian and Swedish Bottling Operations [Member] | Thailand events [Member] | Disposal of Norwegian and Swedish Bottling Operations [Member] | Corporate | Corporate | Coca-Cola FEMSA | Coca-Cola FEMSA | Mikuni [Member] | |||||||||||||||||||||
Other Operating Items [Abstract] | |||||||||||||||||||||||||||||||||||||||
Unusual or Infrequent Event Charges | $0 | $84 | $23 | $11 | $13 | $50 | $8 | $10 | |||||||||||||||||||||||||||||||
Other Operating Charges | |||||||||||||||||||||||||||||||||||||||
Other operating charges | 447 | 732 | 819 | 20 | 38 | 164 | 485 | ||||||||||||||||||||||||||||||||
Productivity, integration and restructuring initiatives | 633 | 478 | 270 | 163 | -10 | -5 | -6 | ||||||||||||||||||||||||||||||||
Charitable contributions | 250 | ||||||||||||||||||||||||||||||||||||||
Transaction cost related to acquisition and divestiture | 81 | 84 | |||||||||||||||||||||||||||||||||||||
Charges related to bottling activities in Eurasia | 10 | ||||||||||||||||||||||||||||||||||||||
Asset Impairment Charges Operating | 0 | 1 | |||||||||||||||||||||||||||||||||||||
Costs related to exchange of equity securities of an investee | 35 | ||||||||||||||||||||||||||||||||||||||
Equity Income (Loss) - Net | |||||||||||||||||||||||||||||||||||||||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | -8 | 53 | 66 | 11 | |||||||||||||||||||||||||||||||||||
Other Income (Loss) - Net | |||||||||||||||||||||||||||||||||||||||
Net Gain On Exchange Of Equity Securities | 185 | 417 | 185 | ||||||||||||||||||||||||||||||||||||
Loss on disposal group held for sale | 108 | ||||||||||||||||||||||||||||||||||||||
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 92 | 92 | |||||||||||||||||||||||||||||||||||||
Premium paid for ownership interest | 82 | 82 | |||||||||||||||||||||||||||||||||||||
Cost method investments, other-than-temporary decline in fair value | 16 | 0 | 16 | ||||||||||||||||||||||||||||||||||||
Net Gains From Investee Transactions and Equity Investment Sales | 76 | 641 | 122 | 122 | |||||||||||||||||||||||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 102 | ||||||||||||||||||||||||||||||||||||||
Equity Method Investments Impairment | 41 | ||||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment charges, available-for-sale securities | 17 | 26 | |||||||||||||||||||||||||||||||||||||
Gain (Loss) on the sale of Norwegian and Swedish bottling operations to New CCE | -5 | 597 | |||||||||||||||||||||||||||||||||||||
Gain related to remeasurement of our equity investment in CCE to fair value | 4,978 | 4,978 | |||||||||||||||||||||||||||||||||||||
Gain on sale of investment in subsidiary | 23 | ||||||||||||||||||||||||||||||||||||||
Percentage of Sale of Investments in Subsidiary | 50.00% | ||||||||||||||||||||||||||||||||||||||
Percentage of the carrying value of investment (as a percent) | 50.00% | ||||||||||||||||||||||||||||||||||||||
Remaining ownership percent (as a percent) | 50.00% | ||||||||||||||||||||||||||||||||||||||
Charge related to preexisting relationships | 265 | 265 | 1 | ||||||||||||||||||||||||||||||||||||
Initial remeasurement of net assets in a hyperinflationary economy | 103 | 103 | |||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment charges on available-for-sale securities, equity method investments and donations of preferred shares | $48 | $25 |
PRODUCTIVITY_INTEGRATION_AND_R2
PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Restructuring Reserve | |||
Costs incurred | $633 | $478 | |
Productivity and Reinvestment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 270 | ||
Restructuring Reserve | |||
Costs incurred | 270 | ||
Payments | -230 | ||
Noncash and exchange | -14 | ||
Accrued Balance, Ending Balance | 26 | ||
Productivity Initiatives | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 498 | ||
Restructuring Reserve | |||
Accrued Balance, Beginning Balance | 60 | 74 | 31 |
Costs incurred | -10 | 156 | 190 |
Payments | -34 | -142 | -145 |
Noncash and exchange | -5 | -28 | -2 |
Accrued Balance, Ending Balance | 11 | 60 | 74 |
Integration of acquired German bottling and distribution operations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 440 | ||
Number of German bottling and distribution operations for which integration initiatives began in 2008 | 18 | ||
Restructuring Reserve | |||
Accrued Balance, Beginning Balance | 30 | ||
Costs incurred | 148 | 67 | 94 |
Accrued Balance, Ending Balance | 96 | 30 | |
Other Restructuring Initiatives | |||
Restructuring Reserve | |||
Costs incurred | 15 | 52 | 59 |
Integration of CCEs North American Operations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 487 | ||
Restructuring Reserve | |||
Accrued Balance, Beginning Balance | 91 | 69 | |
Costs incurred | -6 | 358 | 135 |
Payments | -80 | -339 | -68 |
Noncash and exchange | -2 | 3 | 2 |
Accrued Balance, Ending Balance | 3 | 91 | 69 |
Severance pay and benefits | Productivity and Reinvestment [Member] | |||
Restructuring Reserve | |||
Costs incurred | 21 | ||
Payments | -8 | ||
Noncash and exchange | -1 | ||
Accrued Balance, Ending Balance | 12 | ||
Severance pay and benefits | Productivity Initiatives | |||
Restructuring Reserve | |||
Accrued Balance, Beginning Balance | 48 | 59 | 18 |
Costs incurred | -8 | 59 | 71 |
Payments | -29 | -50 | -30 |
Noncash and exchange | -2 | -20 | 0 |
Accrued Balance, Ending Balance | 9 | 48 | 59 |
Severance pay and benefits | Integration of CCEs North American Operations [Member] | |||
Restructuring Reserve | |||
Accrued Balance, Beginning Balance | 48 | 48 | |
Costs incurred | -6 | 40 | 45 |
Payments | -41 | -40 | -1 |
Noncash and exchange | 0 | 0 | 4 |
Accrued Balance, Ending Balance | 1 | 48 | 48 |
Outside services | Productivity and Reinvestment [Member] | |||
Restructuring Reserve | |||
Costs incurred | 61 | ||
Payments | -55 | ||
Noncash and exchange | 0 | ||
Accrued Balance, Ending Balance | 6 | ||
Outside services | Productivity Initiatives | |||
Restructuring Reserve | |||
Accrued Balance, Beginning Balance | 3 | 6 | 9 |
Costs incurred | 0 | 17 | 58 |
Payments | -2 | -21 | -61 |
Noncash and exchange | 0 | 1 | 0 |
Accrued Balance, Ending Balance | 1 | 3 | 6 |
Outside services | Integration of CCEs North American Operations [Member] | |||
Restructuring Reserve | |||
Accrued Balance, Beginning Balance | 11 | 9 | |
Costs incurred | 0 | 91 | 42 |
Payments | -13 | -89 | -33 |
Noncash and exchange | 2 | 0 | 0 |
Accrued Balance, Ending Balance | 0 | 11 | 9 |
Other direct costs | Productivity and Reinvestment [Member] | |||
Restructuring Reserve | |||
Costs incurred | 188 | ||
Payments | -167 | ||
Noncash and exchange | -13 | ||
Accrued Balance, Ending Balance | 8 | ||
Other direct costs | Productivity Initiatives | |||
Restructuring Reserve | |||
Accrued Balance, Beginning Balance | 9 | 9 | 4 |
Costs incurred | -2 | 80 | 61 |
Payments | -3 | -71 | -54 |
Noncash and exchange | -3 | -9 | -2 |
Accrued Balance, Ending Balance | 1 | 9 | 9 |
Other direct costs | Integration of CCEs North American Operations [Member] | |||
Restructuring Reserve | |||
Accrued Balance, Beginning Balance | 32 | 12 | |
Costs incurred | 0 | 227 | 48 |
Payments | -26 | -210 | -34 |
Noncash and exchange | -4 | 3 | -2 |
Accrued Balance, Ending Balance | $2 | $32 | $12 |
OPERATING_SEGMENTS_Details
OPERATING SEGMENTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Operations, Reportable Information, by Operating Segment | |||
Property, Plant and Equipment, Net | $14,476 | $14,939 | $14,727 |
Sales Revenue, Goods, Net | 48,017 | 46,542 | 35,119 |
Sales Revenue Concentrate Operations Net Percentage | 38.00% | 39.00% | 51.00% |
Sales Revenue Finished Products Operations Net Percentage | 62.00% | 61.00% | 49.00% |
Sales Revenue Net Percentage | 100.00% | 100.00% | 100.00% |
United States | |||
Operations, Reportable Information, by Operating Segment | |||
Property, Plant and Equipment, Net | 8,509 | 8,043 | 8,251 |
Sales Revenue, Goods, Net | 19,732 | 18,699 | 10,629 |
International | |||
Operations, Reportable Information, by Operating Segment | |||
Property, Plant and Equipment, Net | 5,967 | 6,896 | 6,476 |
Sales Revenue, Goods, Net | $28,285 | $27,843 | $24,490 |
OPERATING_SEGMENTS_Details_2
OPERATING SEGMENTS (Details 2) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Nov. 30, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Apr. 02, 2010 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 |
Venezuelan subsidiary | Andina and Polar merger | Philippines Bottling Operations | Coca Cola Enterprises Inc [Member] | Eurasia and Africa | Eurasia and Africa | Eurasia and Africa | Europe | Europe | Europe | Latin America | Latin America | Latin America | North America | North America | North America | North America | Pacific | Pacific | Pacific | Bottling Investments | Bottling Investments | Bottling Investments | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Corporate | Eliminations | Eliminations | Eliminations | Thailand events [Member] | License Agreement with Nestle [Member] | License Agreement with Nestle [Member] | BPW Nestle Joint Venture [Member] | BPW Nestle Joint Venture [Member] | BPW Nestle Joint Venture [Member] | BPW Nestle Joint Venture [Member] | BPW Nestle Joint Venture [Member] | Japans events [Member] | Japans events [Member] | Japans events [Member] | Available-for-Sale Securities | Available-for-Sale Securities | Productivity Initiatives | Productivity Initiatives | Productivity Initiatives | Productivity Initiatives | Integration of CCE's North American Operations [Member] | Integration of CCE's North American Operations [Member] | Other operating charges [Member] | Other operating charges [Member] | Other operating charges [Member] | |||||
Coca Cola Enterprises Incs North American business [Member] | Venezuelan subsidiary | Andina and Polar merger | Coca Cola Enterprises Inc [Member] | Merger of Embotelladoras Arca SAB de CV and Grupo Continental SAB [Member] | Coca-Cola Embonor SA [Member] | Disposal of Norwegian and Swedish Bottling Operations [Member] | Disposal of Norwegian and Swedish Bottling Operations [Member] | Leao Junior SA [Member] | Coca Cola Enterprises Incs North American business [Member] | Corporate | North America | Eurasia and Africa | Europe | Latin America | Pacific | North America | Pacific | Corporate | Europe | Pacific | Corporate | North America | Brazil Juice Expenses [Member] | Brazil Juice Expenses [Member] | Japans events [Member] | |||||||||||||||||||||||||||||||||||||||
North America | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Revenue, Goods, Net | $48,017 | $46,542 | $35,119 | $2,697 | $2,590 | $2,330 | $4,481 | $4,777 | $4,424 | $4,560 | $4,403 | $3,880 | $21,665 | $20,559 | $11,140 | $5,680 | $5,553 | $5,037 | $8,807 | $8,501 | $8,216 | $127 | $159 | $92 | $0 | $0 | $0 | |||||||||||||||||||||||||||||||||||||
Intersegment | 0 | 0 | 0 | 0 | 0 | 2 | 642 | 697 | 825 | 271 | 287 | 241 | 15 | 12 | 65 | 628 | 536 | 458 | 88 | 90 | 97 | 0 | 0 | 0 | -1,644 | -1,622 | -1,688 | |||||||||||||||||||||||||||||||||||||
Total net revenues | 48,017 | 46,542 | 35,119 | 2,697 | 2,590 | 2,332 | 5,123 | 5,474 | 5,249 | 4,831 | 4,690 | 4,121 | 21,680 | 20,571 | 11,205 | 6,308 | 6,089 | 5,495 | 8,895 | 8,591 | 8,313 | 127 | 159 | 92 | -1,644 | -1,622 | -1,688 | |||||||||||||||||||||||||||||||||||||
Operating Income (Loss) | 10,779 | 10,173 | 8,413 | 1,078 | 1,003 | 914 | 2,960 | 3,090 | 2,976 | 2,879 | 2,815 | 2,405 | 2,597 | 2,319 | 1,520 | 2,516 | 2,239 | 2,114 | 140 | 224 | 227 | -1,391 | -1,517 | -1,743 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Interest income | 471 | 483 | 317 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 471 | 483 | 317 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Interest expense | 397 | 417 | 733 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 397 | 417 | 733 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1,982 | 1,954 | 1,443 | 33 | 30 | 25 | 100 | 109 | 106 | 70 | 63 | 54 | 1,083 | 1,065 | 575 | 119 | 115 | 107 | 406 | 403 | 430 | 171 | 169 | 146 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Equity income (loss) - net | 819 | 690 | 1,025 | 20 | -3 | 18 | 45 | 33 | 33 | 4 | 20 | 24 | 13 | 6 | -4 | 2 | 1 | 1 | 732 | 646 | 971 | 3 | -13 | -18 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 11,809 | 11,458 | 14,207 | 1,101 | 1,001 | 933 | 3,015 | 3,134 | 3,020 | 2,882 | 2,832 | 2,426 | 2,624 | 2,327 | 1,523 | 2,523 | 2,242 | 2,116 | 904 | 897 | 1,205 | -1,240 | -975 | 2,984 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Identifiable operating assets | 75,726 | 71,600 | 65,336 | 1,299 | 1,160 | 1,192 | 2,976 | 3,204 | 2,724 | 2,759 | 2,446 | 2,298 | 34,114 | 33,422 | 32,793 | 2,163 | 2,170 | 1,913 | 9,648 | 8,905 | 8,398 | 22,767 | 20,293 | 16,018 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Investments | 10,448 | 8,374 | 7,585 | 1,155 | 284 | 291 | 271 | 243 | 243 | 539 | 475 | 379 | 39 | 26 | 57 | 127 | 133 | 123 | 8,253 | 7,140 | 6,426 | 64 | 73 | 66 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Capital expenditures | 2,780 | 2,920 | 2,215 | 51 | 50 | 57 | 30 | 38 | 33 | 88 | 105 | 94 | 1,447 | 1,364 | 711 | 107 | 128 | 103 | 867 | 1,039 | 942 | 190 | 196 | 275 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment charges, available-for-sale securities | 17 | 26 | 0 | 17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratio of net property, plant and equipment in Germany to total consolidated property, plant and equipment - net (as a percent) | 10.00% | 10.00% | 10.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Related Commitment Fees and Debt Issuance Costs | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments Impairment | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating charges | 447 | 732 | 819 | 12 | 7 | 1 | 25 | 50 | 4 | 227 | 374 | 133 | 3 | 4 | 22 | 164 | 89 | 122 | 38 | 164 | 485 | 20 | 20 | 21 | ||||||||||||||||||||||||||||||||||||||||
Productivity, integration and restructuring initiatives | 633 | 478 | -10 | -4 | -1 | -5 | -6 | -6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | -8 | 53 | 66 | -8 | 53 | 66 | 11 | 1 | 4 | 2 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost method investments, other-than-temporary decline in fair value | 16 | 0 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated Share-based Compensation Expense | 74 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain related to remeasurement of our equity investment in CCE to fair value | 4,978 | 4,978 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge related to preexisting relationship | 265 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on the sale of Norwegian and Swedish bottling operations to New CCE | -5 | 597 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 92 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium paid for ownership interest | 82 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium paid on repurchase of long-term debt | 342 | 342 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial remeasurement of net assets in a hyperinflationary economy | 103 | 103 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of sale of investment in Leao Junior | 50.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other-than-temporary impairment charges on available-for-sale securities, equity method investments and donations of preferred shares | 48 | 23 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of investment in subsidiary | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unusual or Infrequent Event Charges | 0 | 10 | 84 | 2 | 82 | 8 | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Gain On Exchange Of Equity Securities | 185 | 185 | 417 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on disposal group held for sale | 108 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Gains From Investee Transactions and Equity Investment Sales | 76 | 641 | 122 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $102 |
NET_CHANGE_IN_OPERATING_ASSETS2
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Net change in operating assets and liabilities | |||
(Increase) decrease in trade accounts receivable | ($33) | ($562) | ($41) |
(Increase) decrease in inventories | -286 | -447 | 182 |
(Increase) decrease in prepaid expenses and other assets | -29 | -350 | -148 |
Increase (decrease) in accounts payable and accrued expenses | -556 | 63 | 656 |
Increase (decrease) in accrued taxes | 770 | -132 | -266 |
Increase (decrease) in other liabilities | -946 | -465 | -13 |
Net change in operating assets and liabilities | ($1,080) | ($1,893) | $370 |