Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 26, 2014 | Oct. 24, 2014 | |
Entity Registrant Name | 'COCA COLA CO | ' |
Entity Central Index Key | '0000021344 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 26-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 4,380,112,851 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Per Share data, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | ||||
NET OPERATING REVENUES | $11,976 | $12,030 | $35,126 | $35,814 | ||||
Cost of goods sold | 4,630 | 4,793 | 13,532 | 14,106 | ||||
GROSS PROFIT | 7,346 | 7,237 | 21,594 | 21,708 | ||||
Selling, general and administrative expenses | 4,507 | 4,424 | 12,880 | 12,991 | ||||
Other operating charges | 128 | 341 | 457 | 594 | ||||
OPERATING INCOME | 2,711 | 2,472 | 8,257 | 8,123 | ||||
Interest income | 169 | 136 | 436 | 381 | ||||
Interest expense | 113 | 90 | 344 | 314 | ||||
Equity income (loss) - net | 205 | 204 | 530 | 537 | ||||
Other income (loss) - net | -312 | 658 | -630 | 522 | ||||
INCOME BEFORE INCOME TAXES | 2,660 | 3,380 | 8,249 | 9,249 | ||||
Income taxes | 538 | 925 | 1,896 | 2,331 | ||||
CONSOLIDATED NET INCOME | 2,122 | 2,455 | 6,353 | 6,918 | ||||
Less: Net income attributable to noncontrolling interests | 8 | 8 | 25 | 44 | ||||
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $2,114 | $2,447 | $6,328 | $6,874 | ||||
BASIC NET INCOME PER SHARE (in dollars per share) | $0.48 | [1] | $0.55 | [1] | $1.44 | [1] | $1.55 | [1] |
DILUTED NET INCOME PER SHARE (in dollars per share) | $0.48 | [1] | $0.54 | [1] | $1.42 | [1] | $1.52 | [1] |
DIVIDENDS PER SHARE (in dollars per share) | $0.31 | $0.28 | $0.92 | $0.84 | ||||
AVERAGE SHARES OUTSTANDING (in shares) | 4,383 | 4,426 | 4,392 | 4,442 | ||||
Effect of dilutive securities (in shares) | 62 | 72 | 62 | 76 | ||||
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares) | 4,445 | 4,498 | 4,454 | 4,518 | ||||
[1] | Calculated based on net income attributable to shareowners of The Coca-Cola Company. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
CONSOLIDATED NET INCOME | $2,122 | $2,455 | $6,353 | $6,918 |
Other comprehensive income: | ' | ' | ' | ' |
Net foreign currency translation adjustment | -1,232 | -466 | -1,284 | -1,447 |
Net gain (loss) on derivatives | 278 | -82 | 98 | 122 |
Net unrealized gain (loss) on available-for-sale securities | 74 | -92 | 723 | -66 |
Net change in pension and other benefit liabilities | 24 | 27 | 48 | 105 |
TOTAL COMPREHENSIVE INCOME | 1,266 | 1,842 | 5,938 | 5,632 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 9 | 11 | 21 | 72 |
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $1,257 | $1,831 | $5,917 | $5,560 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $11,084 | $10,414 |
Short-term investments | 9,185 | 6,707 |
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 20,269 | 17,121 |
Marketable securities | 3,445 | 3,147 |
Trade accounts receivable, less allowances of $58 and $61, respectively | 5,081 | 4,873 |
Inventories | 3,277 | 3,277 |
Prepaid expenses and other assets | 3,277 | 2,886 |
Assets held for sale | 103 | 0 |
TOTAL CURRENT ASSETS | 35,452 | 31,304 |
EQUITY METHOD INVESTMENTS | 10,582 | 10,393 |
OTHER INVESTMENTS | 3,737 | 1,119 |
OTHER ASSETS | 4,850 | 4,661 |
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation of $10,800 and $10,065, respectively | 14,738 | 14,967 |
TRADEMARKS WITH INDEFINITE LIVES | 6,619 | 6,744 |
BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES | 7,025 | 7,415 |
GOODWILL | 12,188 | 12,312 |
OTHER INTANGIBLE ASSETS | 1,123 | 1,140 |
TOTAL ASSETS | 96,314 | 90,055 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 10,517 | 9,577 |
Loans and notes payable | 19,175 | 16,901 |
Current maturities of long-term debt | 2,524 | 1,024 |
Accrued income taxes | 528 | 309 |
Liabilities held for sale | 16 | 0 |
TOTAL CURRENT LIABILITIES | 32,760 | 27,811 |
LONG-TERM DEBT | 20,111 | 19,154 |
OTHER LIABILITIES | 3,383 | 3,498 |
DEFERRED INCOME TAXES | 6,391 | 6,152 |
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY | ' | ' |
Common stock, $0.25 par value; Authorized — 11,200 shares; Issued — 7,040 and 7,040 shares, respectively | 1,760 | 1,760 |
Capital surplus | 12,901 | 12,276 |
Reinvested earnings | 63,972 | 61,660 |
Accumulated other comprehensive income (loss) | -3,843 | -3,432 |
Treasury stock, at cost — 2,665 and 2,638 shares, respectively | -41,361 | -39,091 |
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 33,429 | 33,173 |
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 240 | 267 |
TOTAL EQUITY | 33,669 | 33,440 |
TOTAL LIABILITIES AND EQUITY | $96,314 | $90,055 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS Parentheticals (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Allowance for Doubtful Accounts | $58 | $61 |
Accumulated Depreciation | $10,800 | $10,065 |
Common Stock - Par Value | $0.25 | $0.25 |
Common Stock - Shares Authorized | 11,200 | 11,200 |
Common Stock - Issued | 7,040 | 7,040 |
Treasury Stock - Cost | 2,665 | 2,638 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 |
OPERATING ACTIVITIES | ' | ' |
Consolidated net income | $6,353 | $6,918 |
Depreciation and amortization | 1,477 | 1,444 |
Stock-based compensation expense | 143 | 155 |
Deferred income taxes | -179 | 179 |
Equity (income) loss - net of dividends | -259 | -270 |
Foreign currency adjustments | 305 | 140 |
Significant (gains) losses on sales of assets - net | 410 | -670 |
Other operating charges | 192 | 331 |
Other items | 38 | 137 |
Net change in operating assets and liabilities | -501 | -652 |
Net cash provided by operating activities | 7,979 | 7,712 |
INVESTING ACTIVITIES | ' | ' |
Purchases of investments | -14,098 | -11,451 |
Proceeds from disposals of investments | 9,558 | 9,601 |
Acquisitions of businesses, equity method investments and nonmarketable securities | -343 | -326 |
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 73 | 869 |
Purchases of property, plant and equipment | -1,618 | -1,625 |
Proceeds from disposals of property, plant and equipment | 150 | 64 |
Other investing activities | -280 | -115 |
Net cash provided by (used in) investing activities | -6,558 | -2,983 |
FINANCING ACTIVITIES | ' | ' |
Issuances of debt | 33,292 | 31,147 |
Payments of debt | -28,494 | -27,293 |
Issuances of stock | 1,058 | 1,079 |
Purchases of stock for treasury | -2,963 | -3,892 |
Dividends | -2,680 | -2,494 |
Other financing activities | -409 | 70 |
Net cash provided by (used in) financing activities | -196 | -1,383 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -555 | -670 |
CASH AND CASH EQUIVALENTS | ' | ' |
Net increase (decrease) during the period | 670 | 2,676 |
Balance at beginning of period | 10,414 | 8,442 |
Balance at end of period | $11,084 | $11,118 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 26, 2014 | |
Summary of significant accounting policies | ' |
Summary of Significant Accounting Policies | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of The Coca-Cola Company for the year ended December 31, 2013. | |
When used in these notes, the terms "The Coca-Cola Company," "Company," "we," "us" or "our" mean The Coca-Cola Company and all entities included in our condensed consolidated financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 26, 2014, are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. Sales of our nonalcoholic ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters accounting for the highest sales volumes. The volume of sales in the beverage business may be affected by weather conditions. | |
Each of our interim reporting periods, other than the fourth interim reporting period, ends on the Friday closest to the last day of the corresponding quarterly calendar period. The third quarter of 2014 and 2013 ended on September 26, 2014 and September 27, 2013, respectively. Our fourth interim reporting period and our fiscal year end on December 31 regardless of the day of the week on which December 31 falls. | |
Effective January 1, 2014, the Company changed the name of the Pacific operating segment to Asia Pacific. Accordingly, the name has been updated for both the current and prior year disclosures in the notes to condensed consolidated financial statements. | |
Advertising Costs | |
The Company's accounting policy related to advertising costs for annual reporting purposes, as disclosed in Note 1 of our 2013 Annual Report on Form 10-K, is to expense production costs of print, radio, television and other advertisements as of the first date the advertisements take place. All other marketing expenditures are expensed in the annual period in which the expenditure is incurred. | |
For interim reporting purposes, we allocate our estimated full year marketing expenditures that benefit multiple interim periods to each of our interim reporting periods. We use the proportion of each interim period's actual unit case volume to the estimated full year unit case volume as the basis for the allocation. This methodology results in our marketing expenditures being recognized at a standard rate per unit case. At the end of each interim reporting period, we review our estimated full year unit case volume and our estimated full year marketing expenditures in order to evaluate if a change in estimate is necessary. The impact of any changes in these full year estimates is recognized in the interim period in which the change in estimate occurs. Our full year marketing expenditures are not impacted by this interim accounting policy. | |
Hyperinflationary Economies | |
A hyperinflationary economy is one that has cumulative inflation of 100 percent or more over a three-year period. Effective January 1, 2010, Venezuela was determined to be a hyperinflationary economy. In accordance with hyperinflationary accounting under accounting principles generally accepted in the United States, our local subsidiary is required to use the U.S. dollar as its functional currency. | |
In February 2013, the Venezuelan government devalued its currency to an official rate of exchange ("official rate") of 6.3 bolivars per U.S. dollar provided by the Commission for the Administration of Foreign Exchange ("CADIVI"). At that time, the Company remeasured the net monetary assets of our Venezuelan subsidiary at the official rate. As a result of the devaluation, we recognized a loss of $140 million in the line item other income (loss) — net in our condensed consolidated statement of income during the nine months ended September 27, 2013. | |
Beginning in October 2013, the government authorized certain companies that operate in designated industry sectors to exchange a limited volume of bolivars for U.S. dollars at a bid rate established via weekly auctions under a system referred to as "SICAD 1." During the first quarter of 2014, the government expanded the types of transactions that may be subject to the weekly SICAD 1 auction process while retaining the official rate of 6.3 bolivars per U.S. dollar; replaced CADIVI with a new foreign currency administration, the National Center for Foreign Commerce ("CENCOEX"); and introduced another currency exchange mechanism ("SICAD 2"). The SICAD 2 rate is intended to more closely resemble a market-driven exchange rate than the official rate and SICAD 1. As a result of these changes, an entity may be able to convert bolivars to U.S. dollars at one of three legal exchange rates, which as of March 28, 2014, were 6.3 (official rate), 10.8 (SICAD 1) and 50.9 (SICAD 2). We analyzed the multiple rates available and the Company's estimates of the applicable rate at which future transactions could be settled, including the payment of dividends. Based on this analysis, we determined that the SICAD 1 rate is the most appropriate rate to use for remeasurement given our circumstances. Therefore, as of March 28, 2014, we remeasured the net monetary assets of our Venezuelan subsidiary using an exchange rate of 10.8 bolivars per U.S. dollar, which was the SICAD 1 rate on that date. We recorded a charge of $226 million related to the change in exchange rates in the line item other income (loss) — net in our condensed consolidated statement of income during the nine months ended September 26, 2014. The Company will continue to use the SICAD 1 rate to remeasure the net monetary assets of our Venezuelan subsidiary unless facts and circumstances change. | |
If the bolivar devalues further, or if we are able to access currency at different rates that are reasonable to the Company, it would result in our Company recognizing additional foreign currency exchange gains or losses in our condensed consolidated financial statements. As of September 26, 2014, our Venezuelan subsidiary held net monetary assets of $206 million, including $175 million of cash, cash equivalents, short-term investments and marketable securities. Despite the additional currency conversion mechanisms, the Company's ability to pay dividends from Venezuela is still restricted due to the low volume of U.S. dollars available for conversion. | |
In addition to the foreign currency exchange exposure related to our Venezuelan subsidiary's net monetary assets, we also sell concentrate to our bottling partner in Venezuela from outside the country. These sales are denominated in U.S. dollars and the carrying value of the receivables related to these sales was $275 million as of September 26, 2014. If a government-approved exchange rate mechanism is not available for our bottling partner in Venezuela to convert bolivars and pay for these receivables and for future concentrate sales, the receivables balance will continue to increase. We will continue to monitor the collectability and convertibility of these receivables. We also have certain U.S. dollar denominated intangible assets associated with products sold in Venezuela, which had a carrying value of $107 million as of September 26, 2014. If the bolivar further devalues, it could result in the impairment of these intangible assets. Additionally, in January 2014, the Venezuelan government enacted a new law which imposes limits on profit margins earned in the country, which limited the Company's cash flows during the three and nine months ended September 26, 2014, and will continue to limit the future cash flows as long as the law is in effect. | |
Recently Issued Accounting Guidance | |
In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under ASU 2014-08, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization's operations and financial results. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income and expenses of discontinued operations. ASU 2014-08 is effective for fiscal and interim periods beginning on or after December 15, 2014. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles and is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 allows for both retrospective and prospective methods of adoption and is effective for periods beginning after December 15, 2016. The Company is currently evaluating the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 9 Months Ended | |||
Sep. 26, 2014 | ||||
Acquisition and Divestures [Abstract] | ' | |||
Acquisition and Divestitures [Text Block] | ' | |||
ACQUISITIONS AND DIVESTITURES | ||||
Acquisitions | ||||
During the nine months ended September 26, 2014, our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $343 million, and primarily included a joint investment with one of our bottling partners in a dairy company in Ecuador, which is accounted for under the equity method of accounting. During the nine months ended September 27, 2013, our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $326 million, which primarily included our acquisition of the majority of the remaining outstanding shares of Fresh Trading Ltd. ("innocent") and a majority interest in bottling operations in Myanmar. We remeasured our equity interest in innocent to fair value upon the close of the transaction. The resulting gain on the remeasurement was not significant to our condensed consolidated financial statements. | ||||
Monster Beverage Corporation | ||||
On August 14, 2014, the Company and Monster Beverage Corporation ("Monster") entered into definitive agreements for a long-term strategic relationship in the global energy drink category. Subject to the terms and conditions of the agreements, upon the closing of the transactions (1) the Company will acquire newly issued shares of Monster common stock representing approximately 16.7 percent of the outstanding shares of Monster common stock (after giving effect to the new issuance) and will be represented by two directors on Monster's Board of Directors; (2) the Company will transfer its global energy drink business (including NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless) to Monster, and Monster will transfer its non-energy drink business (including Hansen's Natural Sodas, Peace Tea, Hubert's Lemonade and Hansen's Juice Products) to the Company; and (3) the parties will amend their current distribution coordination agreements by expanding into additional territories and entering into long-term agreements with the Company's existing network of bottling and distribution partners. Upon closing, the Company will make a net cash payment of $2.15 billion to Monster. The closing of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to take place in late 2014 or early 2015. The Company expects to account for its resulting interest in Monster as an equity method investment. | ||||
Green Mountain Coffee Roasters, Inc. | ||||
In February 2014, the Company and Green Mountain Coffee Roasters, Inc. ("GMCR"), now known as Keurig Green Mountain, Inc., entered into a 10-year global strategic agreement to collaborate on the development and introduction of the Company's global brand portfolio for use in GMCR's forthcoming Keurig KoldTM at-home beverage system. Under the agreement, the companies will cooperate to bring the Keurig KoldTM beverage system to consumers around the world, and GMCR will be the Company's exclusive partner for the production and sale of our branded single-serve, pod-based cold beverages. Together we will also explore other future opportunities to collaborate on the Keurig® platform. In an effort to align long-term interests, we also entered into an agreement to purchase a 10 percent equity position in GMCR, and on February 27, 2014, the Company purchased the newly issued shares in GMCR for approximately $1,265 million, including transaction costs of $14 million. | ||||
In May 2014, the Company purchased additional shares of GMCR in the market for $302 million, which represented an additional 2 percent equity position in GMCR. We account for the investment in GMCR as an available-for-sale security, which is included in the line item other investments in our condensed consolidated balance sheet. These purchases were included in the line item purchases of investments in our condensed consolidated statement of cash flows. | ||||
Subsequent to these purchases, the Company entered into an agreement with Credit Suisse Capital LLC ("CS") to purchase additional shares of GMCR which would increase the Company's equity position to a 16 percent interest based on the total number of issued and outstanding shares of GMCR as of May 1, 2014. Under the agreement, the Company will purchase from CS, on a date selected by CS no later than February 2015, the lesser of (1) 6.5 million shares of GMCR or (2) the number of shares that shall cause our ownership to equal 16 percent. The purchase price per share will be the average of the daily volume-weighted average price per share from May 15, 2014, to the date selected by CS, as adjusted in certain circumstances specified in the agreement. CS will have exclusive ownership and control over any such shares until delivered to the Company. This agreement with CS qualifies as a derivative, and the changes in its fair value are immediately recognized into earnings. | ||||
Coca-Cola Erfrischungsgetränke AG | ||||
In conjunction with the Company's acquisition of 18 German bottling and distribution operations in 2007, the former owners received put options to sell their respective shares in Coca-Cola Erfrischungsgetränke AG ("CCEAG") back to the Company in January 2014. The Company paid $503 million to purchase these shares, which was included in the line item other financing activities in our condensed consolidated statement of cash flows, and now owns 100 percent of CCEAG. | ||||
Divestitures | ||||
During the nine months ended September 26, 2014, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $73 million, which primarily represented the proceeds from the refranchising of certain of our territories in North America. | ||||
In conjunction with implementing a new beverage partnership model in North America, the Company refranchised territories that were previously managed by our consolidated North America bottling and customer service organization called Coca-Cola Refreshments ("CCR") to certain of our unconsolidated bottling partners. These territories border these bottlers' existing territories, allowing each bottler to better service local customers and provide more efficient execution. Through the execution of comprehensive beverage agreements ("CBAs") with each of the bottlers, we granted certain exclusive territory rights for the distribution, promotion, marketing and sale of Company-owned and licensed beverage products as defined by the CBA. Under the arrangement for these territories, CCR retains the rights to produce these beverage products and the bottlers will purchase from CCR substantially all of the related finished products needed in order to service the customers in these territories. Each CBA has a term of 10 years and is renewable by the bottler indefinitely for successive additional terms of 10 years each. Under the CBA, the bottlers will make ongoing quarterly payments to CCR based on their future gross profit in these territories throughout the term of the CBA, including renewals, in exchange for the grant of the exclusive territory rights. | ||||
Contemporaneously with the grant of these rights, the Company sold the distribution assets, certain working capital items, and the exclusive rights to distribute certain beverage brands not owned by the Company, but distributed by CCR, in each of these territories to the respective bottlers in exchange for cash totaling $23 million and $68 million during the three and nine months ended September 26, 2014, respectively. Under the applicable accounting guidance, we were required to derecognize all of the tangible assets sold as well as the intangible assets transferred, including distribution rights, customer relationships and an allocated portion of goodwill related to these territories. We recognized a noncash loss of $34 million and $174 million during the three and nine months ended September 26, 2014, respectively, primarily related to the derecognition of the intangible assets transferred, which was included in the line item other income (loss) — net in our condensed consolidated statements of income. We expect to recover the value of the intangible assets transferred to the bottlers under the CBAs through the future quarterly payments; however, as the payments for the territory rights are dependent on the bottlers' future gross profit in these territories, they are considered a form of contingent consideration. | ||||
There is diversity in practice as it relates to the accounting for contingent consideration by the seller. The seller can account for the future contingent payments received as a gain contingency, recognizing the amounts in the income statement only after the related contingencies are resolved and the gain is realized, which in this arrangement will be quarterly as the bottlers earn gross profit in the transferred territories. Alternatively, the seller can record a receivable for the contingent consideration at fair value on the date of sale and record any future differences between the payments received and this receivable in the income statement as they occur. We elected the gain contingency treatment since the quarterly payments will be received throughout the terms of the CBAs, including all subsequent renewals, regardless of the cumulative amount received as compared to the value of the intangible assets transferred. | ||||
As of September 26, 2014, the Company had entered into agreements to refranchise additional territories in North America. These territories met the criteria to be classified as held for sale, and we were required to record their assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price. The Company recognized a noncash loss of $236 million during the three and nine months ended September 26, 2014 as a result of writing down the assets to their fair value less costs to sell, which was included in the line item other income (loss) — net in our condensed consolidated statements of income. This loss was primarily related to the anticipated derecognition of the intangible assets to be transferred, which we expect to recover under the CBAs through the future quarterly payments. | ||||
The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our condensed consolidated balance sheet (in millions): | ||||
September 26, 2014 | ||||
Inventories | $ | 15 | ||
Prepaid expenses and other assets | 1 | |||
Property, plant and equipment — net | 78 | |||
Bottlers' franchise rights with indefinite lives | 183 | |||
Goodwill | 23 | |||
Other intangible assets | 39 | |||
Allowance for reduction of assets held for sale | (236 | ) | ||
Total assets held for sale | $ | 103 | ||
Other liabilities | $ | 16 | ||
Total liabilities held for sale | $ | 16 | ||
We determined that these territories did not meet the criteria to be classified as discontinued operations, primarily due to the continued significant involvement we have in these operations following each transaction. | ||||
During the nine months ended September 27, 2013, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $869 million. These proceeds primarily resulted from the sale of a majority ownership interest in our previously consolidated bottling operations in the Philippines ("Philippine bottling operations"), and separately, the deconsolidation of our bottling operations in Brazil ("Brazilian bottling operations"). See below for further details on each of these transactions. | ||||
Philippine Bottling Operations | ||||
On December 13, 2012, the Company and Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA"), an equity method investee, executed a share purchase agreement for the sale of a majority ownership interest in our consolidated Philippine bottling operations. This transaction was completed on January 25, 2013. The Company now accounts for our ownership interest in the Philippine bottling operations under the equity method of accounting. Following this transaction, we remeasured our investment in the Philippine bottling operations to fair value taking into consideration the sale price of the majority ownership interest. Coca-Cola FEMSA has an option to purchase our remaining ownership interest in the Philippine bottling operations at any time during the seven years following closing based on the initial purchase price plus a defined return. Coca-Cola FEMSA also has an option exercisable during the sixth year after closing to sell its ownership interest back to the Company at a price not to exceed the initial purchase price. | ||||
Brazilian Bottling Operations | ||||
On December 17, 2012, the Company entered into an agreement with several parties to combine our Brazilian bottling operations with an independent bottler in Brazil in a transaction involving a disposition of shares for cash and an exchange of shares for a 44 percent minority ownership interest in the newly combined entity which was recorded at fair value. This transaction was completed on July 3, 2013 and resulted in the deconsolidation of our Brazilian bottling operations. The Company recognized a gain of $615 million as a result of this transaction. The owners of the majority interest have the option to acquire from us up to 24 percent of the new entity's outstanding shares at any time for a period of six years beginning December 31, 2013. |
Investments
Investments | 9 Months Ended | |||||||||||||
Sep. 26, 2014 | ||||||||||||||
Investments [Abstracts] | ' | |||||||||||||
Investments | ' | |||||||||||||
INVESTMENTS | ||||||||||||||
Investments in debt and marketable equity securities, other than investments accounted for under the equity method, are classified as trading, available-for-sale or held-to-maturity. Our marketable equity investments are classified as either trading or available-for-sale with their cost basis determined by the specific identification method. Realized and unrealized gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in net income. Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in our condensed consolidated balance sheets as a component of accumulated other comprehensive income ("AOCI"), except for the change in fair value attributable to the currency risk being hedged. Refer to Note 5 for additional information related to the Company's fair value hedges of available-for-sale securities. | ||||||||||||||
Our investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. | ||||||||||||||
Trading Securities | ||||||||||||||
As of September 26, 2014, and December 31, 2013, our trading securities had a fair value of $395 million and $372 million, respectively, and consisted primarily of equity securities. The Company had net unrealized gains on trading securities of $35 million and $12 million as of September 26, 2014 and December 31, 2013, respectively. | ||||||||||||||
The Company's trading securities were included in the following line items in our condensed consolidated balance sheets (in millions): | ||||||||||||||
September 26, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Marketable securities | $ | 304 | $ | 286 | ||||||||||
Other assets | 91 | 86 | ||||||||||||
Total trading securities | $ | 395 | $ | 372 | ||||||||||
Available-for-Sale and Held-to-Maturity Securities | ||||||||||||||
As of September 26, 2014 and December 31, 2013, the Company did not have any held-to-maturity securities. As of September 26, 2014, available-for-sale securities consisted of the following (in millions): | ||||||||||||||
Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Available-for-sale securities:1 | ||||||||||||||
Equity securities | $ | 2,752 | $ | 1,465 | $ | (16 | ) | $ | 4,201 | |||||
Debt securities | 3,452 | 51 | (8 | ) | 3,495 | |||||||||
Total available-for-sale securities | $ | 6,204 | $ | 1,516 | $ | (24 | ) | $ | 7,696 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
As of December 31, 2013, available-for-sale securities consisted of the following (in millions): | ||||||||||||||
Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Available-for-sale securities:1 | ||||||||||||||
Equity securities | $ | 1,097 | $ | 373 | $ | (17 | ) | $ | 1,453 | |||||
Debt securities | 3,388 | 24 | (23 | ) | 3,389 | |||||||||
Total available-for-sale securities | $ | 4,485 | $ | 397 | $ | (40 | ) | $ | 4,842 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
As of September 26, 2014 and December 31, 2013, 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. | ||||||||||||||
The sale and/or maturity of available-for-sale securities resulted in the following realized activity (in millions): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Gross gains | $ | 9 | $ | 2 | $ | 25 | $ | 10 | ||||||
Gross losses | (3 | ) | (9 | ) | (16 | ) | (19 | ) | ||||||
Proceeds | 1,260 | 1,091 | 3,442 | 3,349 | ||||||||||
The Company uses one of its insurance captives to reinsure group annuity insurance contracts that cover the pension obligations of certain of our European and Canadian pension plans. In accordance with local insurance regulations, our insurance captive is required to meet and maintain minimum solvency capital requirements. The Company elected to invest its solvency capital in a portfolio of available-for-sale securities, which are classified in the line item other assets in our condensed consolidated balance sheets because the assets are not available to satisfy our current obligations. As of September 26, 2014 and December 31, 2013, the Company's available-for-sale securities included solvency capital funds of $856 million and $667 million, respectively. | ||||||||||||||
The Company's available-for-sale securities were included in the following line items in our condensed consolidated balance sheets (in millions): | ||||||||||||||
September 26, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Cash and cash equivalents | $ | — | $ | 245 | ||||||||||
Marketable securities | 3,141 | 2,861 | ||||||||||||
Other investments | 3,569 | 958 | ||||||||||||
Other assets | 986 | 778 | ||||||||||||
Total available-for-sale securities | $ | 7,696 | $ | 4,842 | ||||||||||
The contractual maturities of these available-for-sale securities as of September 26, 2014 were as follows (in millions): | ||||||||||||||
Cost | Fair Value | |||||||||||||
Within 1 year | $ | 1,240 | $ | 1,241 | ||||||||||
After 1 year through 5 years | 1,703 | 1,730 | ||||||||||||
After 5 years through 10 years | 129 | 139 | ||||||||||||
After 10 years | 380 | 385 | ||||||||||||
Equity securities | 2,752 | 4,201 | ||||||||||||
Total available-for-sale securities | $ | 6,204 | $ | 7,696 | ||||||||||
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 condensed consolidated balance sheets, and dividend income from cost method investments is reported in other income (loss) — net in our condensed consolidated statements of income. We review all of our cost method investments quarterly to determine if impairment indicators are present; however, we are not required to determine the fair value of these investments unless impairment indicators exist. When impairment indicators exist, we generally use discounted cash flow analyses to determine the fair value. We estimate that the fair values of our cost method investments approximated or exceeded their carrying values as of September 26, 2014 and December 31, 2013. Our cost method investments had a carrying value of $167 million and $162 million as of September 26, 2014 and December 31, 2013, respectively. |
Inventories
Inventories | 9 Months Ended | ||||||
Sep. 26, 2014 | |||||||
Inventories | ' | ||||||
Inventories | ' | ||||||
INVENTORIES | |||||||
Inventories consist primarily of raw materials and packaging (which include ingredients and supplies) and finished goods (which include concentrates and syrups in our concentrate operations and finished beverages in our finished product operations). Inventories are valued at the lower of cost or market. We determine cost on the basis of the average cost or first-in, first-out methods. Inventories consisted of the following (in millions): | |||||||
September 26, | December 31, | ||||||
2014 | 2013 | ||||||
Raw materials and packaging | $ | 1,645 | $ | 1,692 | |||
Finished goods | 1,267 | 1,240 | |||||
Other | 365 | 345 | |||||
Total inventories | $ | 3,277 | $ | 3,277 | |||
Hedging_Transactions_and_Deriv
Hedging Transactions and Derivative Financial Instruments | 9 Months Ended | |||||||||||||
Sep. 26, 2014 | ||||||||||||||
Hedging Transactions and Derivative Financial Instruments | ' | |||||||||||||
Hedging Transactions and Derivative Financial Instruments | ' | |||||||||||||
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company's financial performance and are referred to as "market risks." When deemed appropriate, our Company uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. | ||||||||||||||
The Company uses various types of derivative instruments including, but not limited to, forward contracts, commodity futures contracts, option contracts, collars and swaps. Forward contracts and commodity futures contracts are agreements to buy or sell a quantity of a currency or commodity at a predetermined future date, and at a predetermined rate or price. An option contract is an agreement that conveys the purchaser the right, but not the obligation, to buy or sell a quantity of a currency or commodity at a predetermined rate or price during a period or at a time in the future. A collar is a strategy that uses a combination of options to limit the range of possible positive or negative returns on an underlying asset or liability to a specific range, or to protect expected future cash flows. To do this, an investor simultaneously buys a put option and sells (writes) a call option, or alternatively buys a call option and sells (writes) a put option. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. We do not enter into derivative financial instruments for trading purposes. | ||||||||||||||
All derivatives are carried at fair value in our condensed consolidated balance sheets in the following line items, as applicable: prepaid expenses and other assets; other assets; accounts payable and accrued expenses; and other liabilities. The carrying values of the derivatives reflect the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. These master netting agreements allow the Company to net settle positive and negative positions (assets and liabilities) arising from different transactions with the same counterparty. | ||||||||||||||
The accounting for gains and losses that result from changes in the fair values of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationships. Derivatives can be designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations. The changes in the fair values of derivatives that have been designated and qualify for fair value hedge accounting are recorded in the same line item in our condensed consolidated statements of income as the changes in the fair values of the hedged items attributable to the risk being hedged. The changes in the fair values of derivatives that have been designated and qualify as cash flow hedges or hedges of net investments in foreign operations are recorded in AOCI and are reclassified into the line item in our condensed consolidated statement of income in which the hedged items are recorded in the same period the hedged items affect earnings. Due to the high degree of effectiveness between the hedging instruments and the underlying exposures being hedged, fluctuations in the values of the derivative instruments are generally offset by changes in the fair values or cash flows of the underlying exposures being hedged. The changes in fair values of derivatives that were not designated and/or did not qualify as hedging instruments are immediately recognized into earnings. | ||||||||||||||
For derivatives that will be accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective and the strategy for undertaking the hedge transaction. In addition, the Company formally assesses, both at inception and at least quarterly thereafter, whether the financial instruments used in hedging transactions are effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. Any ineffective portion of a financial instrument's change in fair value is immediately recognized into earnings. | ||||||||||||||
The Company determines the fair values of its derivatives based on quoted market prices or pricing models using current market rates. Refer to Note 14. The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks described above. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange rates or other financial indices. The Company does not view the fair values of its derivatives in isolation, but rather in relation to the fair values or cash flows of the underlying hedged transactions or other exposures. Virtually all of our derivatives are straightforward over-the-counter instruments with liquid markets. | ||||||||||||||
The following table presents the fair values of the Company's derivative instruments that were designated and qualified as part of a hedging relationship (in millions): | ||||||||||||||
Fair Value1,2 | ||||||||||||||
Derivatives Designated as | Balance Sheet Location1 | September 26, | December 31, 2013 | |||||||||||
Hedging Instruments | 2014 | |||||||||||||
Assets | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 496 | $ | 211 | |||||||||
Foreign currency contracts | Other assets | 181 | 109 | |||||||||||
Commodity contracts | Prepaid expenses and other assets | — | 1 | |||||||||||
Interest rate contracts | Prepaid expenses and other assets | 24 | — | |||||||||||
Interest rate contracts | Other assets | 154 | 283 | |||||||||||
Total assets | $ | 855 | $ | 604 | ||||||||||
Liabilities | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 23 | $ | 84 | |||||||||
Foreign currency contracts | Other liabilities | 109 | 40 | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 1 | 1 | |||||||||||
Interest rate contracts | Other liabilities | 5 | — | |||||||||||
Total liabilities | $ | 138 | $ | 125 | ||||||||||
1 All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
The following table presents the fair values of the Company's derivative instruments that were not designated as hedging instruments (in millions): | ||||||||||||||
Fair Value1,2 | ||||||||||||||
Derivatives Not Designated as | Balance Sheet Location1 | September 26, | December 31, 2013 | |||||||||||
Hedging Instruments | 2014 | |||||||||||||
Assets | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 64 | $ | 21 | |||||||||
Foreign currency contracts | Other assets | 174 | 171 | |||||||||||
Commodity contracts | Prepaid expenses and other assets | 36 | 33 | |||||||||||
Commodity contracts | Other assets | 2 | 1 | |||||||||||
Other derivative instruments | Prepaid expenses and other assets | 30 | 9 | |||||||||||
Other derivative instruments | Other assets | 2 | — | |||||||||||
Total assets | $ | 308 | $ | 235 | ||||||||||
Liabilities | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 35 | $ | 24 | |||||||||
Foreign currency contracts | Other liabilities | 44 | — | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 42 | 23 | |||||||||||
Commodity contracts | Other liabilities | 4 | — | |||||||||||
Interest rate contracts | Other liabilities | 2 | 3 | |||||||||||
Other derivative instruments | Accounts payable and accrued expenses | 2 | — | |||||||||||
Total liabilities | $ | 129 | $ | 50 | ||||||||||
1 All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
Credit Risk Associated with Derivatives | ||||||||||||||
We have established strict counterparty credit guidelines and enter into transactions only with financial institutions of investment grade or better. We monitor counterparty exposures regularly and review any downgrade in credit rating immediately. If a downgrade in the credit rating of a counterparty were to occur, we have provisions requiring collateral in the form of U.S. government securities for substantially all of our transactions. To mitigate presettlement risk, minimum credit standards become more stringent as the duration of the derivative financial instrument increases. In addition, the Company's master netting agreements reduce credit risk by permitting the Company to net settle for transactions with the same counterparty. To minimize the concentration of credit risk, we enter into derivative transactions with a portfolio of financial institutions. Based on these factors, we consider the risk of counterparty default to be minimal. | ||||||||||||||
Cash Flow Hedging Strategy | ||||||||||||||
The Company uses cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates, commodity prices or interest rates. The changes in the fair values of derivatives designated as cash flow hedges are recorded in AOCI and are reclassified into the line item in our condensed consolidated statement of income in which the hedged items are recorded in the same period the hedged items affect earnings. The changes in fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. The Company did not discontinue any cash flow hedging relationships during the nine months ended September 26, 2014 or September 27, 2013. The maximum length of time for which the Company hedges its exposure to future cash flows is typically three years. | ||||||||||||||
The Company maintains a foreign currency cash flow hedging program to reduce the risk that our eventual U.S. dollar net cash inflows from sales outside the United States and U.S. dollar net cash outflows from procurement activities will be adversely affected by fluctuations in foreign currency exchange rates. We enter into forward contracts and purchase foreign currency options (principally euros and Japanese yen) and collars to hedge certain portions of forecasted cash flows denominated in foreign currencies. When the U.S. dollar strengthens against the foreign currencies, the decline in the present value of future foreign currency cash flows is partially offset by gains in the fair value of the derivative instruments. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is partially offset by losses in the fair value of the derivative instruments. The total notional values of derivatives that were designated and qualified for the Company's foreign currency cash flow hedging program were $10,412 million and $8,450 million as of September 26, 2014 and December 31, 2013, respectively. | ||||||||||||||
During the three months ended September 26, 2014, the Company entered into cross-currency swaps to hedge the changes in the cash flows of its euro-denominated debt due to changes in euro exchange rates. These swaps have been designated as cash flow hedges. The Company records the change in carrying value of the euro-denominated debt due to changes in exchange rates into earnings each period. The changes in fair value of the cross-currency swap derivatives are recorded into AOCI with an immediate reclassification into earnings for the change in fair value attributable to fluctuations in the euro exchange rates. These swaps have a notional amount of $2,590 million as of September 26, 2014. | ||||||||||||||
The Company has entered into commodity futures contracts and other derivative instruments on various commodities to mitigate the price risk associated with forecasted purchases of materials used in our manufacturing process. These derivative instruments have been designated and qualify as part of the Company's commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of certain commodities. The total notional values of derivatives that were designated and qualified for the Company's commodity cash flow hedging program were $16 million and $26 million as of September 26, 2014 and December 31, 2013, 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 $1,828 million as of September 26, 2014 and December 31, 2013. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the three months ended September 26, 2014 (in millions): | ||||||||||||||
Gain (Loss) Recognized | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||
in Other Comprehensive | Recognized in Income1 | Reclassified from | ||||||||||||
Income ("OCI") | AOCI into Income | |||||||||||||
(Effective Portion) | ||||||||||||||
Foreign currency contracts | $ | 490 | Net operating revenues | $ | 19 | $ | — | |||||||
Foreign currency contracts | 36 | Cost of goods sold | 5 | — | 2 | |||||||||
Foreign currency contracts | (93 | ) | Other income (loss) — net | (52 | ) | — | ||||||||
Interest rate contracts | (9 | ) | Interest expense | — | — | |||||||||
Commodity contracts | — | Cost of goods sold | 1 | — | ||||||||||
Total | $ | 424 | $ | (27 | ) | $ | — | |||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
2 Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the nine months ended September 26, 2014 (in millions): | ||||||||||||||
Gain (Loss) Recognized | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||
in OCI | Recognized in Income1 | Reclassified from | ||||||||||||
AOCI into Income | ||||||||||||||
(Effective Portion) | ||||||||||||||
Foreign currency contracts | $ | 378 | Net operating revenues | $ | 62 | $ | — | 2 | ||||||
Foreign currency contracts | 15 | Cost of goods sold | 25 | — | 2 | |||||||||
Foreign currency contracts | (93 | ) | Other income (loss) — net | (52 | ) | — | ||||||||
Interest rate contracts | (100 | ) | Interest expense | — | — | |||||||||
Commodity contracts | 1 | Cost of goods sold | 2 | — | ||||||||||
Total | $ | 201 | $ | 37 | $ | — | ||||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
2 Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the three months ended September 27, 2013 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in OCI | AOCI into Income | (Ineffective Portion and | ||||||||||||
(Effective Portion) | Amount Excluded from | |||||||||||||
Effectiveness Testing) | ||||||||||||||
Foreign currency contracts | $ | (70 | ) | Net operating revenues | $ | 53 | $ | — | ||||||
Foreign currency contracts | (4 | ) | Cost of goods sold | 11 | — | |||||||||
Interest rate contracts | 4 | Interest expense | (3 | ) | — | |||||||||
Commodity contracts | — | Cost of goods sold | (1 | ) | — | |||||||||
Total | $ | (70 | ) | $ | 60 | $ | — | |||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the nine months ended September 27, 2013 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in OCI | AOCI into Income | (Ineffective Portion and | ||||||||||||
(Effective Portion) | Amount Excluded from | |||||||||||||
Effectiveness Testing) | ||||||||||||||
Foreign currency contracts | $ | 150 | Net operating revenues | $ | 123 | $ | 1 | |||||||
Foreign currency contracts | 31 | Cost of goods sold | 21 | — | ||||||||||
Interest rate contracts | 155 | Interest expense | (9 | ) | — | 2 | ||||||||
Commodity contracts | 1 | Cost of goods sold | (2 | ) | — | |||||||||
Total | $ | 337 | $ | 133 | $ | 1 | ||||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
2 Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
As of September 26, 2014, the Company estimates that it will reclassify into earnings during the next 12 months $208 million of gains from the pretax amount recorded in AOCI as the anticipated cash flows occur. | ||||||||||||||
Fair Value Hedging Strategy | ||||||||||||||
The Company uses interest rate swap agreements designated as fair value hedges to minimize exposure to changes in the fair value of fixed-rate debt that results from fluctuations in benchmark interest rates. The changes in fair values of derivatives designated as fair value hedges and the offsetting changes in fair values of the hedged items are recognized in earnings. The ineffective portions of these hedges are immediately recognized in earnings. As of September 26, 2014, such adjustments had cumulatively increased the carrying value of our long-term debt by $22 million. When a derivative is no longer designated as a fair value hedge for any reason, including termination and maturity, the remaining unamortized difference between the carrying value of the hedged item at that time and the par value of the hedged item is amortized to earnings over the remaining life of the hedged item, or immediately if the hedged item has matured. The total notional values of derivatives that related to our fair value hedges of this type were $6,600 million and $5,600 million as of September 26, 2014 and December 31, 2013, respectively. | ||||||||||||||
The Company also uses fair value hedges to minimize exposure to changes in the fair value of certain available-for-sale securities from fluctuations in foreign currency exchange rates. The changes in fair values of derivatives designated as fair value hedges and the offsetting changes in fair values of the hedged items are recognized in earnings. As a result, any difference is reflected in earnings as ineffectiveness. The total notional values of derivatives that related to our fair value hedges of this type were $985 million and $996 million as of September 26, 2014 and December 31, 2013, respectively. | ||||||||||||||
The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings during the three months ended September 26, 2014 and September 27, 2013 (in millions): | ||||||||||||||
Fair Value Hedging Instruments | Location of Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized in Income | Recognized in Income | |||||||||||||
Three Months Ended | ||||||||||||||
September 26, | September 27, | |||||||||||||
2014 | 2013 | |||||||||||||
Interest rate swaps | Interest expense | $ | (36 | ) | $ | 4 | ||||||||
Fixed-rate debt | Interest expense | 44 | 5 | |||||||||||
Net impact to interest expense | $ | 8 | $ | 9 | ||||||||||
Foreign currency contracts | Other income (loss) — net | $ | 12 | $ | 39 | |||||||||
Available-for-sale securities | Other income (loss) — net | (18 | ) | (45 | ) | |||||||||
Net impact to other income (loss) — net | $ | (6 | ) | $ | (6 | ) | ||||||||
Net impact of fair value hedging instruments | $ | 2 | $ | 3 | ||||||||||
The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings during the nine months ended September 26, 2014 and September 27, 2013 (in millions): | ||||||||||||||
Fair Value Hedging Instruments | Location of Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized in Income | Recognized in Income | |||||||||||||
Nine Months Ended | ||||||||||||||
September 26, | September 27, | |||||||||||||
2014 | 2013 | |||||||||||||
Interest rate swaps | Interest expense | $ | (10 | ) | $ | (147 | ) | |||||||
Fixed-rate debt | Interest expense | 29 | 181 | |||||||||||
Net impact to interest expense | $ | 19 | $ | 34 | ||||||||||
Foreign currency contracts | Other income (loss) — net | $ | (7 | ) | $ | 32 | ||||||||
Available-for-sale securities | Other income (loss) — net | (10 | ) | (47 | ) | |||||||||
Net impact to other income (loss) — net | $ | (17 | ) | $ | (15 | ) | ||||||||
Net impact of fair value hedging instruments | $ | 2 | $ | 19 | ||||||||||
Hedges of Net Investments in Foreign Operations Strategy | ||||||||||||||
The Company uses forward contracts to protect the value of our investments in a number of foreign subsidiaries. For derivative instruments that are designated and qualify as hedges of net investments in foreign operations, the changes in fair values of the derivative instruments are recognized in net foreign currency translation gain (loss), a component of AOCI, to offset the changes in the values of the net investments being hedged. Any ineffective portions of net investment hedges are reclassified from AOCI into earnings during the period of change. The total notional values of derivatives that were designated and qualified for the Company's net investments hedging program were $1,921 million and $2,024 million as of September 26, 2014 and December 31, 2013, respectively. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as net investment hedges had on AOCI during the three and nine months ended September 26, 2014 and September 27, 2013 (in millions): | ||||||||||||||
Gain (Loss) Recognized in OCI | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Foreign currency contracts | $ | 134 | $ | (22 | ) | $ | (8 | ) | $ | 8 | ||||
The Company did not reclassify any deferred gains or losses related to net investment hedges from AOCI into earnings during the three and nine months ended September 26, 2014 and September 27, 2013. In addition, the Company did not have any ineffectiveness related to net investment hedges during the three and nine months ended September 26, 2014 and September 27, 2013. | ||||||||||||||
Economic (Nondesignated) Hedging Strategy | ||||||||||||||
In addition to derivative instruments that are designated and qualify for hedge accounting, the Company also uses certain derivatives as economic hedges to primarily manage foreign currency, interest rate and commodity exposure. Although these derivatives were not designated and/or did not qualify for hedge accounting, they are effective economic hedges. The changes in fair values of economic hedges are immediately recognized into earnings. | ||||||||||||||
The Company uses foreign currency economic hedges to offset the earnings impact that fluctuations in foreign currency exchange rates have on certain monetary assets and liabilities denominated in nonfunctional currencies. The changes in fair values of economic hedges used to offset those monetary assets and liabilities are immediately recognized into earnings in the line item other income (loss) — net in our condensed consolidated statements of income. In addition, we use foreign currency economic hedges to minimize the variability in cash flows associated with fluctuations in foreign currency exchange rates. The changes in fair values of economic hedges used to offset the variability in U.S. dollar net cash flows are recognized into earnings in the line items net operating revenues or cost of goods sold in our condensed consolidated statements of income, as applicable. The total notional values of derivatives related to our foreign currency economic hedges were $4,294 million and $3,871 million as of September 26, 2014 and December 31, 2013, 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 condensed consolidated statements of income, as applicable. The total notional values of derivatives related to our economic hedges of this type were $1,164 million and $1,441 million as of September 26, 2014 and December 31, 2013, respectively. | ||||||||||||||
The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the three and nine months ended September 26, 2014 and September 27, 2013 (in millions): | ||||||||||||||
Three Months Ended | ||||||||||||||
Derivatives Not Designated | Location of Gain (Loss) | September 26, | September 27, | |||||||||||
as Hedging Instruments | Recognized in Income | 2014 | 2013 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | 6 | $ | (2 | ) | ||||||||
Foreign currency contracts | Other income (loss) — net | (70 | ) | 47 | ||||||||||
Foreign currency contracts | Cost of goods sold | — | 2 | |||||||||||
Commodity contracts | Net operating revenues | (9 | ) | 2 | ||||||||||
Commodity contracts | Cost of goods sold | 25 | (3 | ) | ||||||||||
Commodity contracts | Selling, general and administrative expenses | (15 | ) | 3 | ||||||||||
Other derivative instruments | Selling, general and administrative expenses | 3 | 9 | |||||||||||
Other derivative instruments | Other income (loss) — net | 18 | — | |||||||||||
Total | $ | (42 | ) | $ | 58 | |||||||||
Nine Months Ended | ||||||||||||||
Derivatives Not Designated | Location of Gain (Loss) | September 26, | September 27, | |||||||||||
as Hedging Instruments | Recognized in Income | 2014 | 2013 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | (12 | ) | $ | 2 | ||||||||
Foreign currency contracts | Other income (loss) — net | (47 | ) | 120 | ||||||||||
Foreign currency contracts | Cost of goods sold | — | 2 | |||||||||||
Interest rate contracts | Interest expense | — | (3 | ) | ||||||||||
Commodity contracts | Net operating revenues | (9 | ) | 1 | ||||||||||
Commodity contracts | Cost of goods sold | 60 | (147 | ) | ||||||||||
Commodity contracts | Selling, general and administrative expenses | (14 | ) | 1 | ||||||||||
Other derivative instruments | Selling, general and administrative expenses | 17 | 33 | |||||||||||
Other derivative instruments | Other income (loss) — net | 26 | — | |||||||||||
Total | $ | 21 | $ | 9 | ||||||||||
Debt_and_Borrowing_Arrangement
Debt and Borrowing Arrangements | 9 Months Ended | |
Sep. 26, 2014 | ||
Debt and borrowing arrangements | ' | |
Debt and Borrowing Arrangements | ' | |
DEBT AND BORROWING ARRANGEMENTS | ||
During the nine months ended September 26, 2014, the Company issued $3,537 million of long-term debt. The general terms of the notes issued are as follows: | ||
• | $1,000 million total principal amount of notes due September 1, 2015, at a variable interest rate equal to the three-month London Interbank Offered Rate plus 0.01 percent; | |
• | $1,015 million total principal amount of euro notes due September 22, 2022 at a fixed interest rate of 1.125 percent; and | |
• | $1,522 million total principal amount of euro notes due September 22, 2026 at a fixed interest rate of 1.875 percent. | |
During the nine months ended September 26, 2014, the Company retired $1,000 million of long-term debt upon maturity. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 26, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
Guarantees | |
As of September 26, 2014, we were contingently liable for guarantees of indebtedness owed by third parties of $527 million, of which $173 million related to variable interest entities. These guarantees are primarily related to third-party customers, bottlers, vendors and container manufacturing operations and have arisen through the normal course of business. These guarantees have various terms, and none of these guarantees was 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 paid or will pay funds into an escrow account for payment of costs arising from the asbestos claims against Aqua-Chem. On July 24, 2007, the Wisconsin trial court entered a final declaratory judgment regarding the rights and obligations of the parties under the insurance policies issued by the remaining defendant insurers, which judgment was not appealed. The judgment directs, among other things, that each insurer whose policy is triggered is jointly and severally liable for 100 percent of Aqua-Chem's losses up to policy limits. The court's judgment concluded the Wisconsin insurance coverage litigation. The Georgia litigation remains subject to the stay agreement. The Company and Aqua-Chem continued to negotiate with various insurers that were defendants in the Wisconsin insurance coverage litigation over those insurers' obligations to defend and indemnify Aqua-Chem for the asbestos-related claims. The Company anticipated that a final settlement with three of those insurers (the "Chartis insurers") would be finalized in May 2011, but such insurers repudiated their settlement commitments and, as a result, Aqua-Chem and the Company filed suit against them in Wisconsin state court to enforce the coverage-in-place settlement or, in the alternative, to obtain a declaratory judgment validating Aqua-Chem and the Company's interpretation of the court's judgment in the Wisconsin insurance coverage litigation. In February 2012, the parties filed and argued a number of cross-motions for summary judgment related to the issues of the enforceability of the settlement agreement and the exhaustion of policies underlying those of the Chartis insurers. The court granted defendants' motions for summary judgment that the 2011 Settlement Agreement and 2010 Term Sheet were not binding contracts but denied their similar motions related to the plaintiffs' claims for promissory and/or equitable estoppel. On or about May 15, 2012, the parties entered into a mutually agreeable settlement/stipulation resolving two major issues: exhaustion of underlying coverage and control of defense. On or about January 10, 2013, the parties reached a settlement of the estoppel claims and all of the remaining coverage issues, with the exception of one disputed issue relating to the scope of the Chartis insurers' defense obligations in two policy years. The trial court granted summary judgment in favor of the Company and Aqua-Chem on that one open issue and entered a final appealable judgment to that effect following the parties' settlement. On January 23, 2013, the Chartis insurers filed a notice of appeal of the trial court's summary judgment ruling. On October 29, 2013, the Wisconsin Court of Appeals affirmed the grant of summary judgment in favor of the Company and Aqua-Chem. On November 27, 2013, the Chartis insurers filed a petition for review in the Supreme Court of Wisconsin, and on December 11, 2013, the Company filed its opposition to that petition. On April 16, 2014, the Supreme Court of Wisconsin denied the Chartis insurers' petition for review. | |
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 (1) 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 (2) the various insurers that cover the asbestos-related claims against Aqua-Chem remain solvent, regardless of the outcome of the coverage-in-place settlement litigation but taking into account the issues resolved to date, insurance coverage for substantially all defense and indemnity costs would be available for the next 10 to 15 years. | |
Tax Audits | |
The Company is involved in various tax matters, with respect to some of which the outcome is uncertain. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that it becomes uncertain based upon one of the following conditions: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the financial period in which the tax position was originally taken. For purposes of evaluating whether or not a tax position is uncertain, (1) we presume the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information; (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position; and (3) each tax position is evaluated without consideration of the possibility of offset or aggregation with other tax positions taken. A number of years may elapse before a particular uncertain tax position is audited and finally resolved or when a tax assessment is raised. The number of years subject to tax assessments varies depending on the tax jurisdiction. The tax benefit that has been previously reserved because of a failure to meet the "more likely than not" recognition threshold would be recognized in our income tax expense in the first interim period when the uncertainty disappears under any one of the following conditions: (1) the tax position is "more likely than not" to be sustained, (2) the tax position, amount, and/or timing is ultimately settled through negotiation or litigation, or (3) the statute of limitations for the tax position has expired. Refer to Note 13. | |
Risk Management Programs | |
The Company has numerous global insurance programs in place to help protect the Company from the risk of loss. In general, we are self-insured for large portions of many different types of claims; however, we do use commercial insurance above our self-insured retentions to reduce the Company's risk of catastrophic loss. Our reserves for the Company's self-insured losses are estimated using actuarial methods and assumptions of the insurance industry, adjusted for our specific expectations based on our claim history. Our self-insurance reserves totaled $543 million and $537 million as of September 26, 2014 and December 31, 2013, respectively. |
Comprehensive_Income
Comprehensive Income | 9 Months Ended | |||||||||||
Sep. 26, 2014 | ||||||||||||
Comprehensive Income | ' | |||||||||||
Comprehensive Income | ' | |||||||||||
COMPREHENSIVE INCOME | ||||||||||||
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions): | ||||||||||||
Nine Months Ended September 26, 2014 | ||||||||||||
Shareowners of | Noncontrolling | Total | ||||||||||
The Coca-Cola Company | Interests | |||||||||||
Consolidated net income | $ | 6,328 | $ | 25 | $ | 6,353 | ||||||
Other comprehensive income: | ||||||||||||
Net foreign currency translation adjustment | (1,280 | ) | (4 | ) | (1,284 | ) | ||||||
Net gain (loss) on derivatives1 | 98 | — | 98 | |||||||||
Net unrealized gain (loss) on available-for-sale securities2 | 723 | — | 723 | |||||||||
Net change in pension and other benefit liabilities | 48 | — | 48 | |||||||||
Total comprehensive income | $ | 5,917 | $ | 21 | $ | 5,938 | ||||||
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 Refer to Note 3 for information related to the net unrealized gain or loss on available-for-sale securities. | ||||||||||||
The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI (in millions): | ||||||||||||
Three Months Ended September 26, 2014 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (1,166 | ) | $ | (67 | ) | $ | (1,233 | ) | |||
Reclassification adjustments recognized in net income | — | — | — | |||||||||
Net foreign currency translation adjustments | (1,166 | ) | (67 | ) | (1,233 | ) | ||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | 419 | (157 | ) | 262 | ||||||||
Reclassification adjustments recognized in net income | 27 | (11 | ) | 16 | ||||||||
Net gain (loss) on derivatives1 | 446 | (168 | ) | 278 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | 177 | (99 | ) | 78 | ||||||||
Reclassification adjustments recognized in net income | (6 | ) | 2 | (4 | ) | |||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 171 | (97 | ) | 74 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | 19 | (4 | ) | 15 | ||||||||
Reclassification adjustments recognized in net income | 14 | (5 | ) | 9 | ||||||||
Net change in pension and other benefit liabilities3 | 33 | (9 | ) | 24 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (516 | ) | $ | (341 | ) | $ | (857 | ) | |||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Nine Months Ended September 26, 2014 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (1,286 | ) | $ | 6 | $ | (1,280 | ) | ||||
Reclassification adjustments recognized in net income | — | — | — | |||||||||
Net foreign currency translation adjustments | (1,286 | ) | 6 | (1,280 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | 194 | (73 | ) | 121 | ||||||||
Reclassification adjustments recognized in net income | (37 | ) | 14 | (23 | ) | |||||||
Net gain (loss) on derivatives1 | 157 | (59 | ) | 98 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | 1,145 | (415 | ) | 730 | ||||||||
Reclassification adjustments recognized in net income | (9 | ) | 2 | (7 | ) | |||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 1,136 | (413 | ) | 723 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | 27 | (6 | ) | 21 | ||||||||
Reclassification adjustments recognized in net income | 43 | (16 | ) | 27 | ||||||||
Net change in pension and other benefit liabilities3 | 70 | (22 | ) | 48 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | 77 | $ | (488 | ) | $ | (411 | ) | ||||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Three Months Ended September 27, 2013 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (639 | ) | $ | 144 | $ | (495 | ) | ||||
Reclassification adjustments recognized in net income | 26 | — | 26 | |||||||||
Net foreign currency translation adjustments | (613 | ) | 144 | (469 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | (69 | ) | 25 | (44 | ) | |||||||
Reclassification adjustments recognized in net income | (60 | ) | 22 | (38 | ) | |||||||
Net gain (loss) on derivatives1 | (129 | ) | 47 | (82 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | (152 | ) | 53 | (99 | ) | |||||||
Reclassification adjustments recognized in net income | 7 | — | 7 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | (145 | ) | 53 | (92 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | (5 | ) | — | (5 | ) | |||||||
Reclassification adjustments recognized in net income | 49 | (17 | ) | 32 | ||||||||
Net change in pension and other benefit liabilities3 | 44 | (17 | ) | 27 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (843 | ) | $ | 227 | $ | (616 | ) | ||||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Nine Months Ended September 27, 2013 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (1,318 | ) | $ | 37 | $ | (1,281 | ) | ||||
Reclassification adjustments recognized in net income | (194 | ) | — | (194 | ) | |||||||
Net foreign currency translation adjustments | (1,512 | ) | 37 | (1,475 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | 333 | (128 | ) | 205 | ||||||||
Reclassification adjustments recognized in net income | (133 | ) | 50 | (83 | ) | |||||||
Net gain (loss) on derivatives1 | 200 | (78 | ) | 122 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | (108 | ) | 33 | (75 | ) | |||||||
Reclassification adjustments recognized in net income | 9 | — | 9 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | (99 | ) | 33 | (66 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | 20 | (9 | ) | 11 | ||||||||
Reclassification adjustments recognized in net income | 147 | (53 | ) | 94 | ||||||||
Net change in pension and other benefit liabilities3 | 167 | (62 | ) | 105 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (1,244 | ) | $ | (70 | ) | $ | (1,314 | ) | |||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
The following table presents the amounts and line items in our condensed consolidated statements of income where adjustments reclassified from AOCI into income were recorded during the three and nine months ended September 26, 2014 (in millions): | ||||||||||||
Amount Reclassified from | ||||||||||||
AOCI into Income | ||||||||||||
Description of AOCI Component | Location of Gain (Loss) | Three Months Ended September 26, 2014 | Nine Months Ended September 26, 2014 | |||||||||
Recognized in Income | ||||||||||||
Derivatives: | ||||||||||||
Foreign currency contracts | Net operating revenues | $ | (19 | ) | $ | (62 | ) | |||||
Foreign currency and commodity contracts | Cost of goods sold | (6 | ) | (27 | ) | |||||||
Foreign currency contracts | Other income (loss) — net | 52 | 52 | |||||||||
Income before income taxes | 27 | (37 | ) | |||||||||
Income taxes | (11 | ) | 14 | |||||||||
Consolidated net income | $ | 16 | $ | (23 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Sale of securities | Other income (loss) — net | $ | (6 | ) | $ | (9 | ) | |||||
Income before income taxes | (6 | ) | (9 | ) | ||||||||
Income taxes | 2 | 2 | ||||||||||
Consolidated net income | $ | (4 | ) | $ | (7 | ) | ||||||
Pension and other benefit liabilities: | ||||||||||||
Amortization of net actuarial loss | * | $ | 18 | $ | 56 | |||||||
Amortization of prior service cost (credit) | * | (4 | ) | (13 | ) | |||||||
Income before income taxes | 14 | 43 | ||||||||||
Income taxes | (5 | ) | (16 | ) | ||||||||
Consolidated net income | $ | 9 | $ | 27 | ||||||||
* | This component of AOCI is included in the Company's computation of net periodic benefit cost and is not reclassified out of AOCI into a single line item in our condensed consolidated statements of income in its entirety. Refer to Note 12 for additional information. |
Changes_in_Equity
Changes in Equity | 9 Months Ended | |||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||
Changes in Equity [Abstract] | ' | |||||||||||||||||||||
Changes in Equity | ' | |||||||||||||||||||||
CHANGES IN EQUITY | ||||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to shareowners of The Coca-Cola Company and equity attributable to noncontrolling interests (in millions): | ||||||||||||||||||||||
Shareowners of The Coca-Cola Company | ||||||||||||||||||||||
Total | Reinvested | Accumulated | Common | Capital | Treasury | Non- | ||||||||||||||||
Earnings | Other | Stock | Surplus | Stock | controlling | |||||||||||||||||
Comprehensive | Interests | |||||||||||||||||||||
Income (Loss) | ||||||||||||||||||||||
December 31, 2013 | $ | 33,440 | $ | 61,660 | $ | (3,432 | ) | $ | 1,760 | $ | 12,276 | $ | (39,091 | ) | $ | 267 | ||||||
Comprehensive income (loss) | 5,938 | 6,328 | (411 | ) | — | — | — | 21 | ||||||||||||||
Dividends paid/payable to shareowners of | (4,016 | ) | (4,016 | ) | — | — | — | — | — | |||||||||||||
The Coca-Cola Company | ||||||||||||||||||||||
Dividends paid to noncontrolling interests | (21 | ) | — | — | — | — | — | (21 | ) | |||||||||||||
Business combinations including purchase accounting adjustments | (27 | ) | — | — | — | — | — | (27 | ) | |||||||||||||
Purchases of treasury stock | (2,887 | ) | — | — | — | — | (2,887 | ) | — | |||||||||||||
Impact of employee stock option and | 1,242 | — | — | — | 625 | 617 | — | |||||||||||||||
restricted stock plans | ||||||||||||||||||||||
September 26, 2014 | $ | 33,669 | $ | 63,972 | $ | (3,843 | ) | $ | 1,760 | $ | 12,901 | $ | (41,361 | ) | $ | 240 | ||||||
Significant_Operating_and_Nono
Significant Operating and Nonoperating Items | 9 Months Ended |
Sep. 26, 2014 | |
Significant Operating and Nonoperating Items | ' |
Significant Operating and Nonoperating Items | ' |
SIGNIFICANT OPERATING AND NONOPERATING ITEMS | |
Other Operating Charges | |
During the three months ended September 26, 2014, the Company incurred other operating charges of $128 million. These charges primarily consisted of $84 million due to the Company's productivity and reinvestment program and $34 million due to the integration of our German bottling and distribution operations. The Company also recorded a loss of $2 million as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 15 for the impact these charges had on our operating segments. | |
During the nine months ended September 26, 2014, the Company recorded other operating charges of $457 million. These charges primarily consisted of $259 million due to the Company's productivity and reinvestment program and $142 million due to the integration of our German bottling and distribution operations. In addition, the Company recorded a loss of $27 million as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. The Company also incurred a charge of $21 million due to the write-down of receivables related to sales of concentrate to our bottling partner in Venezuela as a result of limited government-approved exchange rate conversion mechanisms. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 15 for the impact these charges had on our operating segments. | |
During the three months ended September 27, 2013, the Company incurred other operating charges of $341 million. These charges primarily consisted of $190 million due to the impairment of certain intangible assets described below; $97 million due to the Company's productivity and reinvestment program; and $45 million due to the integration of our German bottling and distribution operations. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 14 for additional information on the impairment charges recorded. Refer to Note 15 for the impact these charges had on our operating segments. | |
During the nine months ended September 27, 2013, the Company incurred other operating charges of $594 million. These charges primarily consisted of $312 million due to the Company's productivity and reinvestment program; $190 million due to the impairment of certain intangible assets described below; and $86 million primarily due to the integration of our German bottling and distribution operations. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 14 for additional information on the impairment charges recorded. Refer to Note 15 for the impact these charges had on our operating segments. | |
During the three and nine months ended September 27, 2013, the Company recorded charges of $190 million related to certain intangible assets. These charges included $108 million related to the impairment of trademarks recorded in our Bottling Investments and Asia Pacific operating segments. These impairments were primarily due to a strategic decision to phase out certain local-market value brands which resulted in a change in the expected useful life of the intangible assets. The charges were determined by comparing the fair value of the trademarks, derived using discounted cash flow analyses, to the current carrying value. Additionally, the remaining charge of $82 million related to goodwill recorded in our Bottling Investments operating segment. This charge was primarily the result of management's revised outlook on market conditions and volume performance. The total impairment charges of $190 million were recorded in our Corporate operating segment in the line item other operating charges in our condensed consolidated statements of income. | |
Other Nonoperating Items | |
Equity Income (Loss) — Net | |
During the three and nine months ended September 26, 2014, the Company recorded net charges of $8 million and $41 million, respectively, in the line item equity income (loss) — net. During the three and nine months ended September 27, 2013, the Company recorded a net gain of $8 million and a net charge of $34 million, respectively, in the line item equity income (loss) — net. These amounts represent the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees, including charges incurred by an equity method investee due to the devaluation of the Venezuelan bolivar. Refer to Note 15 for the impact these items had on our operating segments. | |
Other Income (Loss) — Net | |
During the three months ended September 26, 2014, the Company recorded charges of $270 million due to the refranchising of certain territories in North America. Refer to Note 2 for more information related to these charges and Note 15 for the impact this charge had on our operating segments. | |
During the nine months ended September 26, 2014, the Company recorded charges of $410 million due to the refranchising of certain territories in North America. The Company also incurred a charge of $226 million due to the expansion of the Venezuelan government's currency conversion markets. Refer to Note 2 for more information related to the North America refranchising, Note 1 for more information related to the charge due to the change in Venezuelan exchange rates and Note 15 for the impact these charges had on our operating segments. | |
During the three and nine months ended September 27, 2013, the Company recorded a gain of $615 million in the line item other income (loss) — net. This gain was due to the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. Refer to Note 2 for additional information on this transaction. Refer to Note 15 for the impact this gain had on our operating segments. | |
In 2012, four of the Company's Japanese bottling partners announced their intent to merge as Coca-Cola East Japan Bottling Company, Ltd. ("CCEJ"), a publicly traded entity, through a share exchange. The merger was completed effective July 1, 2013. The terms of the merger agreement included the issuance of new shares of one of the publicly traded bottlers in exchange for 100 percent of the outstanding shares of the remaining three bottlers according to an agreed-upon share exchange ratio. As a result, the Company recorded a gain of $30 million during the three months ended September 27, 2013, based on the value of the shares it received on July 1, 2013. This gain partially offset a loss of $144 million the Company recorded during the second quarter of 2013 for those investments in which the Company’s carrying value was higher than the fair value of the shares expected to be received. In total, the Company recorded a net loss of $114 million during the nine months ended September 27, 2013, related to our investment in the entities that merged to form CCEJ. Refer to Note 15 for the impact these items had on our operating segments. | |
During the nine months ended September 27, 2013, the Company also recorded a gain of $139 million due to Coca-Cola FEMSA, an equity method investee, issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company sold a proportionate share of its investment in Coca-Cola FEMSA. Refer to Note 15 for the impact this gain had on our operating segments. | |
In addition to the items above, during the nine months ended September 27, 2013, the Company recorded a charge of $140 million in the line item other income (loss) — net due to the Venezuelan government announcing a currency devaluation. As a result of this devaluation, the Company remeasured the net assets related to its operations in Venezuela. Refer to Note 1 for more information related to this charge and Note 15 for the impact this charge had on our operating segments. |
Productivity_Integration_and_R
Productivity, Integration and Restructuring Initiatives | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Productivity integration and restructuring initiatives | ' | |||||||||||||||
Productivity, Integration and Restructuring Initiatives[Text Block] | ' | |||||||||||||||
PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES | ||||||||||||||||
Productivity and Reinvestment | ||||||||||||||||
In February 2012, the Company announced a four-year productivity and reinvestment program designed to further enable our efforts to strengthen our brands and reinvest our resources to drive long-term profitable growth. This program is focused on the following initiatives: global supply chain optimization; global marketing and innovation effectiveness; operating expense leverage and operational excellence; data and information technology systems standardization; and further integration of Coca-Cola Enterprises Inc.'s former North America business. | ||||||||||||||||
In February 2014, the Company announced that we are expanding our productivity and reinvestment program to drive an incremental $1 billion in productivity by 2016 that will primarily be redirected into increased media investments. Our incremental productivity goal consists of two relatively equal components. First, we will expand savings through global supply chain optimization, data and information technology systems standardization, and resource and cost reallocation. These savings will be reinvested in global brand-building initiatives, with an emphasis on increased media spending. Second, we will increase the effectiveness of our marketing investments by transforming our marketing and commercial model to redeploy resources into more consumer-facing marketing investments to accelerate growth. | ||||||||||||||||
As of September 26, 2014, the Company has incurred total pretax expenses of $1,023 million related to our productivity and reinvestment program since the plan commenced. These expenses were recorded in the line item other operating charges in our condensed consolidated statements of income. Refer to Note 15 for the impact these charges had on our operating segments. Outside services reported in the 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; losses on disposal of certain assets; contract termination fees; and relocation costs. | ||||||||||||||||
The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts as of and for the three months ended September 26, 2014 (in millions): | ||||||||||||||||
Accrued | Costs | Payments | Noncash | Accrued | ||||||||||||
Balance | Incurred | and | Balance | |||||||||||||
27-Jun-14 | Three Months Ended | Exchange | 26-Sep-14 | |||||||||||||
26-Sep-14 | ||||||||||||||||
Severance pay and benefits | $ | 43 | $ | 12 | $ | (18 | ) | $ | (1 | ) | $ | 36 | ||||
Outside services | 4 | 21 | (22 | ) | — | 3 | ||||||||||
Other direct costs | 14 | 51 | (49 | ) | (2 | ) | 14 | |||||||||
Total | $ | 61 | $ | 84 | $ | (89 | ) | $ | (3 | ) | $ | 53 | ||||
The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts as of and for the nine months ended September 26, 2014 (in millions): | ||||||||||||||||
Accrued | Costs | Payments | Noncash | Accrued | ||||||||||||
Balance | Incurred | and | Balance | |||||||||||||
31-Dec-13 | Nine Months Ended | Exchange | 26-Sep-14 | |||||||||||||
26-Sep-14 | ||||||||||||||||
Severance pay and benefits | $ | 88 | $ | 26 | $ | (77 | ) | $ | (1 | ) | $ | 36 | ||||
Outside services | 6 | 52 | (55 | ) | — | 3 | ||||||||||
Other direct costs | 18 | 181 | (162 | ) | (23 | ) | 14 | |||||||||
Total | $ | 112 | $ | 259 | $ | (294 | ) | $ | (24 | ) | $ | 53 | ||||
Integration of Our German Bottling and Distribution Operations | ||||||||||||||||
In 2008, the Company began an integration initiative related to the 18 German bottling and distribution operations acquired in 2007. The Company incurred expenses of $34 million and $142 million related to this initiative during the three and nine months ended September 26, 2014, respectively, and has incurred total pretax expenses of $769 million related to this initiative since it commenced. These charges were recorded in the line item other operating charges in our condensed consolidated statements of income and impacted the Bottling Investments operating segment. The expenses recorded in connection with these integration activities have been primarily due to involuntary terminations. The Company had $124 million and $127 million accrued related to these integration costs as of September 26, 2014 and December 31, 2013, respectively. | ||||||||||||||||
We are currently reviewing additional restructuring opportunities within the German bottling and distribution operations, including integration costs related to information technology and other initiatives. If implemented, these initiatives will result in additional charges in future periods. However, as of September 26, 2014, the Company has not finalized any additional plans. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefit Plans | 9 Months Ended | |||||||||||||
Sep. 26, 2014 | ||||||||||||||
Pension and Other Postretirement Benefit Plans | ' | |||||||||||||
Pension and Other Postretirement Benefit Plans | ' | |||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | ||||||||||||||
Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following (in millions): | ||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||
Three Months Ended | ||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Service cost | $ | 62 | $ | 69 | $ | 7 | $ | 9 | ||||||
Interest cost | 101 | 93 | 11 | 10 | ||||||||||
Expected return on plan assets | (179 | ) | (163 | ) | (3 | ) | (2 | ) | ||||||
Amortization of prior service cost (credit) | — | (1 | ) | (4 | ) | (3 | ) | |||||||
Amortization of net actuarial loss | 18 | 50 | — | 3 | ||||||||||
Net periodic benefit cost (credit) | $ | 2 | $ | 48 | $ | 11 | $ | 17 | ||||||
Settlement charge | — | — | — | — | ||||||||||
Total cost (credit) recognized in statements of income | $ | 2 | $ | 48 | $ | 11 | $ | 17 | ||||||
Pension Benefits | Other Benefits | |||||||||||||
Nine Months Ended | ||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Service cost | $ | 196 | $ | 207 | $ | 20 | $ | 27 | ||||||
Interest cost | 304 | 282 | 32 | 31 | ||||||||||
Expected return on plan assets | (537 | ) | (492 | ) | (9 | ) | (7 | ) | ||||||
Amortization of prior service cost (credit) | (1 | ) | (2 | ) | (12 | ) | (8 | ) | ||||||
Amortization of net actuarial loss | 54 | 149 | 2 | 9 | ||||||||||
Net periodic benefit cost (credit) | $ | 16 | $ | 144 | $ | 33 | $ | 52 | ||||||
Settlement charge | 2 | — | — | — | ||||||||||
Total cost (credit) recognized in statements of income | $ | 18 | $ | 144 | $ | 33 | $ | 52 | ||||||
During the nine months ended September 26, 2014, the Company contributed $168 million to our pension plans, and we anticipate making additional contributions of approximately $48 million to our pension plans during the remainder of 2014. The Company contributed $574 million to our pension plans during the nine months ended September 27, 2013. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||
Income taxes | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
INCOME TAXES | |||||||||||||||||
Our effective tax rate reflects the benefits of having significant operations outside the United States, which are generally taxed at rates lower than the U.S. statutory rate of 35 percent. As a result of employment actions and capital investments made by the Company, certain tax jurisdictions provide income tax incentive grants, including Brazil, Costa Rica, Singapore and Swaziland. The terms of these grants expire from 2015 to 2023. We anticipate that we will be able to extend or renew the grants in these locations. In addition, our effective tax rate reflects the benefits of having significant earnings generated in investments accounted for under the equity method of accounting, which are generally taxed at rates lower than the U.S. statutory rate. | |||||||||||||||||
At the end of each interim period, we make our best estimate of the effective tax rate expected to be applicable for the full fiscal year. This estimate reflects, among other items, our best estimate of operating results and foreign currency exchange rates. Based on current tax laws, the Company's estimated effective tax rate for 2014 is 22.5 percent. However, in arriving at this estimate we do not include the estimated impact of unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax expense and income before income taxes. | |||||||||||||||||
The Company recorded income tax expense of $538 million (20.2 percent effective tax rate) and $925 million (27.4 percent effective tax rate) during the three months ended September 26, 2014 and September 27, 2013, respectively. The Company recorded income tax expense of $1,896 million (23.0 percent effective tax rate) and $2,331 million (25.2 percent effective tax rate) during the nine months ended September 26, 2014 and September 27, 2013, respectively. | |||||||||||||||||
The following table illustrates the tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented (in millions): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 26, | September 27, | September 26, | September 27, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Asset impairments | $ | — | $ | — | 8 | $ | — | $ | — | 8 | |||||||
Productivity and reinvestment program | (30 | ) | 1 | (37 | ) | 9 | (96 | ) | 1 | (115 | ) | 9 | |||||
Other productivity, integration and restructuring initiatives | — | 2 | 1 | 10 | — | 2 | 2 | 10 | |||||||||
Transaction gains and losses | (96 | ) | 3 | 255 | 11 | (147 | ) | 4 | 303 | 12 | |||||||
Certain tax matters | (29 | ) | 5 | (20 | ) | 13 | 2 | 5 | (20 | ) | 13 | ||||||
Other — net | (2 | ) | 6 | 4 | 14 | 6 | 7 | — | 15 | ||||||||
1 | Related to charges of $84 million and $259 million during the three and nine months ended September 26, 2014, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
2 | Related to charges of $34 million and $142 million during the three and nine months ended September 26, 2014, respectively. These charges were due to the integration of our German bottling and distribution operations. Refer to Note 10 and Note 11. | ||||||||||||||||
3 | Related to charges of $277 million including $270 million due to refranchising certain North America territories. Refer to Note 2. | ||||||||||||||||
4 | Related to charges of $417 million including $410 million due to refranchising certain North America territories. Refer to Note 2. | ||||||||||||||||
5 | Primarily related to prior year audit settlements and amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, of which the components of the net change are individually insignificant. | ||||||||||||||||
6 | Related to charges of $14 million that consisted of $5 million due to the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner, and $8 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | ||||||||||||||||
7 | Related to charges of $319 million that primarily consisted of $268 million due to the expansion of the Venezuelan government's currency conversion markets, including a write-down of receivables from our bottling partner in Venezuela, $30 million due to the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner, and $20 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 1 and Note 10. | ||||||||||||||||
8 | Related to charges of $190 million due to the impairment of certain of the Company's intangible assets. Refer to Note 10 and Note 14. | ||||||||||||||||
9 | Related to charges of $97 million and $312 million during the three and nine months ended September 27, 2013, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
10 | Related to net charges of $43 million and $82 million during the three and nine months ended September 27, 2013, respectively. These charges were primarily due to the integration of our German bottling and distribution operations. Refer to Note 10 and Note 11. | ||||||||||||||||
11 | Related to a net gain of $585 million consisting of the following items: a gain of $615 million due to the deconsolidation of our Brazilian bottling operations upon their combination with an independent bottler; a gain of $30 million due to the merger of four of the Company's Japanese bottling partners; and charges of $60 million due to the deferral of revenue and corresponding gross profit associated with the intercompany portion of our concentrate sales to CCEJ and the newly combined Brazilian operations until the finished beverage products made from those concentrates are sold to a third party. Refer to Note 2, Note 10 and Note 14. | ||||||||||||||||
12 | Related to a net gain of $574 million that primarily consisted of the following items: a gain of $615 million related to the deconsolidation of our Brazilian bottling operations upon their combination with an independent bottler; a gain of $139 million the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment; a net loss of $114 million due to the merger of four of the Company's Japanese bottling partners; and charges of $60 million due to the deferral of revenue and corresponding gross profit associated with the intercompany portion of our concentrate sales to CCEJ and the newly combined Brazilian bottling operations until the finished beverage products made from those concentrates are sold to a third party. Refer to Note 2, Note 10 and Note 14. | ||||||||||||||||
13 | Related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. | ||||||||||||||||
14 | Related to a net charge of $3 million that consisted of a charge of $11 million associated with certain of the Company's fixed assets, partially offset by a net gain of $8 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | ||||||||||||||||
15 | Related to charges of $205 million that primarily consisted of the following items: a charge of $23 million due to the early extinguishment of certain long-term debt; a charge of $149 million due to the devaluation of the Venezuelan bolivar; a net charge of $25 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity investees; and a charge of $11 million associated with certain of the Company's fixed assets. Refer to Note 10. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||
Accounting principles generally accepted in the United States define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: | ||||||||||||||||||
• | Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
• | Level 2 — Observable inputs other than quoted prices included in Level 1. We value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||
• | Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | |||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||||
In accordance with accounting principles generally accepted in the United States, certain assets and liabilities are required to be recorded at fair value on a recurring basis. For our Company, the only assets and liabilities that are adjusted to fair value on a recurring basis are investments in equity and debt securities classified as trading or available-for-sale and derivative financial instruments. Additionally, the Company adjusts the fair value of long-term debt as a result of the Company's fair value hedging strategy. | ||||||||||||||||||
Investments in Trading and Available-for-Sale Securities | ||||||||||||||||||
The fair values of our investments in trading and available-for-sale securities using quoted market prices from daily exchange traded markets are based on the closing price as of the balance sheet date and are classified as Level 1. The fair values of our investments in trading and available-for-sale securities classified as Level 2 are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. Inputs into these valuation techniques include actual trade data, benchmark yields, broker/dealer quotes, and other similar data. These inputs are obtained from quoted market prices, independent pricing vendors or other sources. | ||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||
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 exchange-traded contracts are determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions and therefore have been classified as Level 2. Inputs used in these standard valuation models for derivative instruments other than futures include the applicable exchange rates, forward rates, interest rates and discount rates. The standard valuation model for options also uses implied volatility as an additional input. The discount rates are based on the historical U.S. Deposit or U.S. Treasury rates, and the implied volatility specific to options is based on quoted rates from financial institutions. | ||||||||||||||||||
Included in the fair value of derivative instruments is an adjustment for nonperformance risk. The adjustment is based on the current one-year credit default swap ("CDS") rate applied to each contract, by counterparty. We use our counterparty's CDS rate when we are in an asset position and our own CDS rate when we are in a liability position. The adjustment for nonperformance risk did not have a significant impact on the estimated fair value of our derivative instruments. | ||||||||||||||||||
The following table summarizes those assets and liabilities measured at fair value on a recurring basis as of September 26, 2014 (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets | ||||||||||||||||||
Trading securities2 | $ | 217 | $ | 174 | $ | 4 | $ | — | $ | 395 | ||||||||
Available-for-sale securities2 | 4,196 | 3,373 | 127 | 3 | — | 7,696 | ||||||||||||
Derivatives4 | 22 | 1,141 | — | (207 | ) | 956 | 5 | |||||||||||
Total assets | $ | 4,435 | $ | 4,688 | $ | 131 | $ | (207 | ) | $ | 9,047 | |||||||
Liabilities | ||||||||||||||||||
Derivatives4 | $ | 2 | $ | 265 | $ | — | $ | (207 | ) | $ | 60 | 5 | ||||||
Total liabilities | $ | 2 | $ | 265 | $ | — | $ | (207 | ) | $ | 60 | |||||||
1 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. | ||||||||||||||||||
2 | Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. | |||||||||||||||||
3 Primarily related to long-term debt securities that mature in 2018. | ||||||||||||||||||
4 Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
5 The Company's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $443 million in the line item prepaid expenses and other assets; $513 million in the line item other assets; $3 million in the line item accounts payable and accrued expenses; and $57 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
The following table summarizes those assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets | ||||||||||||||||||
Trading securities2 | $ | 206 | $ | 163 | $ | 3 | $ | — | $ | 372 | ||||||||
Available-for-sale securities2 | 1,453 | 3,281 | 108 | 3 | — | 4,842 | ||||||||||||
Derivatives4 | 17 | 822 | — | (150 | ) | 689 | 5 | |||||||||||
Total assets | $ | 1,676 | $ | 4,266 | $ | 111 | $ | (150 | ) | $ | 5,903 | |||||||
Liabilities | ||||||||||||||||||
Derivatives4 | $ | 10 | $ | 165 | $ | — | $ | (151 | ) | $ | 24 | 5 | ||||||
Total liabilities | $ | 10 | $ | 165 | $ | — | $ | (151 | ) | $ | 24 | |||||||
1 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. | ||||||||||||||||||
2 | Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. | |||||||||||||||||
3 Primarily related to long-term debt securities that mature in 2018. | ||||||||||||||||||
4 Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
5 The Company's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $129 million in the line item prepaid expenses and other assets; $560 million in the line item other assets; $12 million in the line item accounts payable and accrued expenses; and $12 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
Gross realized and unrealized gains and losses on Level 3 assets and liabilities were not significant for the three and nine months ended September 26, 2014 and September 27, 2013. | ||||||||||||||||||
The Company recognizes transfers between levels within the hierarchy as of the beginning of the reporting period. Gross transfers between levels within the hierarchy were not significant for the three and nine months ended September 26, 2014 and September 27, 2013. | ||||||||||||||||||
Nonrecurring Fair Value Measurements | ||||||||||||||||||
In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records assets and liabilities at fair value on a nonrecurring basis as required by accounting principles generally accepted in the United States. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges. The gains or losses on assets measured at fair value on a nonrecurring basis for the three and nine months ended September 26, 2014 and September 27, 2013 are summarized in the table below (in millions): | ||||||||||||||||||
Gains (Losses) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Assets held for sale | $ | (236 | ) | 1 | $ | — | $ | (236 | ) | 1 | $ | — | ||||||
Intangible assets | — | (190 | ) | 2 | — | (190 | ) | 2 | ||||||||||
Valuation of shares in equity method investee | — | — | — | 139 | 4 | |||||||||||||
Exchange of investment in equity securities | — | 30 | 3 | — | (114 | ) | 5 | |||||||||||
Total | $ | (236 | ) | $ | (160 | ) | $ | (236 | ) | $ | (165 | ) | ||||||
1 | As of September 26, 2014, the Company had entered into agreements to refranchise additional territories in North America. These operations met the criteria to be classified as held for sale in our condensed consolidated balance sheet as of September 26, 2014, and we were required to record their assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price. The Company recognized a noncash loss of $236 million during the three and nine months ended September 26, 2014 as a result of writing down the assets to their fair value less costs to sell. The loss was calculated based on Level 3 inputs. Refer to Note 2. | |||||||||||||||||
2 | The Company recognized a loss of $190 million due to impairment charges on certain intangible assets. The charges were primarily determined by comparing the fair value of the assets to the current carrying value. The fair value of the assets was derived using discounted cash flow analyses based on Level 3 inputs. Refer to Note 10. | |||||||||||||||||
3 | The Company recognized a gain of $30 million on the exchange of shares it previously owned in certain equity method investees for shares in CCEJ, a newly formed entity. The gain represents the difference between the carrying value of the shares the Company relinquished and the fair value of the CCEJ shares received as a result of the transaction. The gain and the initial carrying value of the Company's investment were calculated based on Level 1 inputs. The Company accounts for its investment in CCEJ under the equity method of accounting. Refer to Note 10. | |||||||||||||||||
4 | The Company recognized a gain of $139 million during the nine months ended September 27, 2013. This gain resulted from Coca-Cola FEMSA issuing additional shares of its own stock at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment in Coca-Cola FEMSA. This gain was determined using Level 1 inputs. Refer to Note 10. | |||||||||||||||||
5 | The Company recognized a net loss of $114 million on the exchange of shares it previously owned in certain equity method investees for shares in the newly formed entity CCEJ. CCEJ is also an equity method investee. The net loss represents the difference between the carrying value of the shares the Company relinquished and the fair value of the CCEJ shares received as a result of the transaction. The net loss and the initial carrying value of the Company's investment were calculated based on Level 1 inputs. Refer to Note 10. | |||||||||||||||||
Other Fair Value Disclosures | ||||||||||||||||||
The carrying amounts of cash and cash equivalents; short-term investments; receivables; accounts payable and accrued expenses; and loans and notes payable approximate their fair values because of the relatively short-term maturities of these instruments. | ||||||||||||||||||
The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for those or similar instruments. As of September 26, 2014, the carrying amount and fair value of our long-term debt, including the current portion, were $22,635 million and $23,190 million, respectively. As of December 31, 2013, the carrying amount and fair value of our long-term debt, including the current portion, were $20,178 million and $20,352 million, respectively. |
Operating_Segments
Operating Segments | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||||||||
Operating Segments [Abstract] | ' | |||||||||||||||||||||||||||
Operating Segments | ' | |||||||||||||||||||||||||||
OPERATING SEGMENTS | ||||||||||||||||||||||||||||
Effective January 1, 2014, the Company changed the name of the Pacific segment to Asia Pacific. This change did not impact the results of the segments, but the name of the segment has been updated in all information presented herein. | ||||||||||||||||||||||||||||
Information about our Company's operations as of and for the three months ended September 26, 2014 and September 27, 2013, by operating segment, is as follows (in millions): | ||||||||||||||||||||||||||||
Eurasia | Europe | Latin | North | Asia Pacific | Bottling | Corporate | Eliminations | Consolidated | ||||||||||||||||||||
& Africa | America | America | Investments | |||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 709 | $ | 1,242 | $ | 1,161 | $ | 5,596 | $ | 1,421 | $ | 1,804 | $ | 43 | $ | — | $ | 11,976 | ||||||||||
Intersegment | — | 187 | 16 | 3 | 154 | 19 | — | (379 | ) | — | ||||||||||||||||||
Total net revenues | 709 | 1,429 | 1,177 | 5,599 | 1,575 | 1,823 | 43 | (379 | ) | 11,976 | ||||||||||||||||||
Operating income (loss) | 265 | 752 | 653 | 760 | 638 | 14 | (371 | ) | — | 2,711 | ||||||||||||||||||
Income (loss) before income taxes | 272 | 763 | 654 | 486 | 648 | 205 | (368 | ) | — | 2,660 | ||||||||||||||||||
Identifiable operating assets | 1,421 | 3,610 | 2,777 | 33,750 | 1,934 | 6,887 | 31,616 | — | 81,995 | |||||||||||||||||||
Noncurrent investments | 1,162 | 98 | 790 | 43 | 158 | 9,381 | 2,687 | — | 14,319 | |||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 669 | $ | 1,232 | $ | 1,208 | $ | 5,715 | $ | 1,368 | $ | 1,811 | $ | 27 | $ | — | $ | 12,030 | ||||||||||
Intersegment | — | 188 | 22 | 4 | 128 | 21 | — | (363 | ) | — | ||||||||||||||||||
Total net revenues | 669 | 1,420 | 1,230 | 5,719 | 1,496 | 1,832 | 27 | (363 | ) | 12,030 | ||||||||||||||||||
Operating income (loss) | 231 | 742 | 720 | 803 | 575 | 22 | (621 | ) | — | 2,472 | ||||||||||||||||||
Income (loss) before income taxes | 228 | 755 | 719 | 805 | 585 | 214 | 74 | — | 3,380 | |||||||||||||||||||
Identifiable operating assets | 1,340 | 3,567 | 2,672 | 34,278 | 1,848 | 6,836 | 27,356 | — | 77,897 | |||||||||||||||||||
Noncurrent investments | 1,160 | 104 | 525 | 44 | 140 | 9,486 | 76 | — | 11,535 | |||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Identifiable operating assets | $ | 1,273 | $ | 3,713 | $ | 2,918 | $ | 33,964 | $ | 1,922 | $ | 7,011 | $ | 27,742 | $ | — | $ | 78,543 | ||||||||||
Noncurrent investments | 1,157 | 106 | 545 | 49 | 143 | 9,424 | 88 | — | 11,512 | |||||||||||||||||||
During the three months ended September 26, 2014, 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 Eurasia and Africa, $2 million for Europe, $59 million for North America, $2 million for Asia Pacific, $34 million for Bottling Investments and $20 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11 for additional information on each of the Company's productivity, restructuring and integration initiatives. | |||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Bottling Investments as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. Refer to Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $270 million for North America due to the refranchising of certain territories in North America. Refer to Note 2 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced 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 10. | |||||||||||||||||||||||||||
During the three months ended September 27, 2013, the results of our operating segments were impacted by the following items: | ||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, $53 million for North America, $2 million for Asia Pacific, $45 million for Bottling Investments and $41 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11. | |||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $615 million for Corporate due to a gain recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. Refer to Note 2 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $30 million for Corporate due to a gain recognized on the merger of four of the Company's Japanese bottling partners. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was 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 10. | |||||||||||||||||||||||||||
Information about our Company's operations for the nine months ended September 26, 2014 and September 27, 2013, by operating segment, is as follows (in millions): | ||||||||||||||||||||||||||||
Eurasia | Europe | Latin | North | Asia Pacific | Bottling | Corporate | Eliminations | Consolidated | ||||||||||||||||||||
& Africa | America | America | Investments | |||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 2,099 | $ | 3,761 | $ | 3,360 | $ | 16,096 | $ | 4,181 | $ | 5,503 | $ | 126 | $ | — | $ | 35,126 | ||||||||||
Intersegment | — | 530 | 46 | 13 | 432 | 53 | — | (1,074 | ) | — | ||||||||||||||||||
Total net revenues | 2,099 | 4,291 | 3,406 | 16,109 | 4,613 | 5,556 | 126 | (1,074 | ) | 35,126 | ||||||||||||||||||
Operating income (loss) | 858 | 2,363 | 1,954 | 2,015 | 2,041 | 26 | (1,000 | ) | — | 8,257 | ||||||||||||||||||
Income (loss) before income taxes | 893 | 2,398 | 1,957 | 1,593 | 2,059 | 481 | (1,132 | ) | — | 8,249 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 2,103 | $ | 3,545 | $ | 3,504 | $ | 16,306 | $ | 4,185 | $ | 6,047 | $ | 124 | $ | — | $ | 35,814 | ||||||||||
Intersegment | — | 520 | 169 | 13 | 431 | 61 | — | (1,194 | ) | — | ||||||||||||||||||
Total net revenues | 2,103 | 4,065 | 3,673 | 16,319 | 4,616 | 6,108 | 124 | (1,194 | ) | 35,814 | ||||||||||||||||||
Operating income (loss) | 845 | 2,261 | 2,209 | 1,875 | 2,024 | 186 | (1,277 | ) | — | 8,123 | ||||||||||||||||||
Income (loss) before income taxes | 868 | 2,318 | 2,213 | 1,879 | 2,042 | 677 | (748 | ) | — | 9,249 | ||||||||||||||||||
During the nine months ended September 26, 2014, 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 Eurasia and Africa, $2 million for Europe, $192 million for North America, $10 million for Asia Pacific, $142 million for Bottling Investments and $54 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11 for additional information on each of the Company's productivity, restructuring and integration initiatives. | |||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $32 million for Bottling Investments as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. Refer to Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $410 million for North America due to the refranchising of certain territories in North America. Refer to Note 2 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $21 million for Bottling Investments and $247 million for Corporate due to the expansion of the Venezuelan government's currency conversion markets, including a write-down of receivables related to concentrate sales to our bottling partner in Venezuela as well as our proportionate share of the charge incurred by this bottler, an equity method investee. Refer to Note 1 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $20 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | |||||||||||||||||||||||||||
During the nine months ended September 27, 2013, the results of our operating segments were impacted by the following items: | ||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $7 million for Europe, $190 million for North America, $16 million for Asia Pacific, $86 million for Bottling Investments and $97 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11. | |||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $615 million for Corporate due to a gain recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. Refer to Note 2 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $9 million for Bottling Investments and $140 million for Corporate due to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method investee that has operations in Venezuela. Refer to Note 1 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $114 million for Corporate due to a loss related to the merger of four of the Company's Japanese bottling partners. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was increased by $139 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. Refer to Note 10 and Note 14. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $25 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $23 million for Corporate due to a charge the Company recognized as a result of the early extinguishment of certain long-term debt. |
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 26, 2014 | |
Subsequent Event [Line Items] | ' |
Subsequent Event | ' |
SUBSEQUENT EVENT | |
On October 21, 2014, the Company announced that it is expanding its previously announced productivity initiatives. The expansion of the productivity initiatives will focus on four key areas: restructuring the Company's global supply chain, including manufacturing in North America; implementing zero-based budgeting across the organization; streamlining and simplifying the Company's operating model; and driving increased discipline and efficiency in direct marketing investments. The Company expects that the expanded productivity initiatives will generate an incremental $2 billion in annualized savings, making the expected total annualized savings from the expanded productivity program $3 billion by 2019. These savings will enable us to fund marketing initiatives and innovation required to deliver sustainable net revenue growth. The savings will also support margin expansion and increased returns on invested capital over time. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 26, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation [Policy Text Block] | ' |
Basis of Presentation | |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of The Coca-Cola Company for the year ended December 31, 2013. | |
When used in these notes, the terms "The Coca-Cola Company," "Company," "we," "us" or "our" mean The Coca-Cola Company and all entities included in our condensed consolidated financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 26, 2014, are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. Sales of our nonalcoholic ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters accounting for the highest sales volumes. The volume of sales in the beverage business may be affected by weather conditions. | |
Each of our interim reporting periods, other than the fourth interim reporting period, ends on the Friday closest to the last day of the corresponding quarterly calendar period. The third quarter of 2014 and 2013 ended on September 26, 2014 and September 27, 2013, respectively. Our fourth interim reporting period and our fiscal year end on December 31 regardless of the day of the week on which December 31 falls. | |
Effective January 1, 2014, the Company changed the name of the Pacific operating segment to Asia Pacific. Accordingly, the name has been updated for both the current and prior year disclosures in the notes to condensed consolidated financial statements. | |
Advertising Costs, Policy [Policy Text Block] | ' |
Advertising Costs | |
The Company's accounting policy related to advertising costs for annual reporting purposes, as disclosed in Note 1 of our 2013 Annual Report on Form 10-K, is to expense production costs of print, radio, television and other advertisements as of the first date the advertisements take place. All other marketing expenditures are expensed in the annual period in which the expenditure is incurred. | |
For interim reporting purposes, we allocate our estimated full year marketing expenditures that benefit multiple interim periods to each of our interim reporting periods. We use the proportion of each interim period's actual unit case volume to the estimated full year unit case volume as the basis for the allocation. This methodology results in our marketing expenditures being recognized at a standard rate per unit case. At the end of each interim reporting period, we review our estimated full year unit case volume and our estimated full year marketing expenditures in order to evaluate if a change in estimate is necessary. The impact of any changes in these full year estimates is recognized in the interim period in which the change in estimate occurs. Our full year marketing expenditures are not impacted by this interim accounting policy. | |
Hyperinflationary Economies [Policy Text Block] | ' |
Hyperinflationary Economies | |
A hyperinflationary economy is one that has cumulative inflation of 100 percent or more over a three-year period. Effective January 1, 2010, Venezuela was determined to be a hyperinflationary economy. In accordance with hyperinflationary accounting under accounting principles generally accepted in the United States, our local subsidiary is required to use the U.S. dollar as its functional currency. | |
In February 2013, the Venezuelan government devalued its currency to an official rate of exchange ("official rate") of 6.3 bolivars per U.S. dollar provided by the Commission for the Administration of Foreign Exchange ("CADIVI"). At that time, the Company remeasured the net monetary assets of our Venezuelan subsidiary at the official rate. As a result of the devaluation, we recognized a loss of $140 million in the line item other income (loss) — net in our condensed consolidated statement of income during the nine months ended September 27, 2013. | |
Beginning in October 2013, the government authorized certain companies that operate in designated industry sectors to exchange a limited volume of bolivars for U.S. dollars at a bid rate established via weekly auctions under a system referred to as "SICAD 1." During the first quarter of 2014, the government expanded the types of transactions that may be subject to the weekly SICAD 1 auction process while retaining the official rate of 6.3 bolivars per U.S. dollar; replaced CADIVI with a new foreign currency administration, the National Center for Foreign Commerce ("CENCOEX"); and introduced another currency exchange mechanism ("SICAD 2"). The SICAD 2 rate is intended to more closely resemble a market-driven exchange rate than the official rate and SICAD 1. As a result of these changes, an entity may be able to convert bolivars to U.S. dollars at one of three legal exchange rates, which as of March 28, 2014, were 6.3 (official rate), 10.8 (SICAD 1) and 50.9 (SICAD 2). We analyzed the multiple rates available and the Company's estimates of the applicable rate at which future transactions could be settled, including the payment of dividends. Based on this analysis, we determined that the SICAD 1 rate is the most appropriate rate to use for remeasurement given our circumstances. Therefore, as of March 28, 2014, we remeasured the net monetary assets of our Venezuelan subsidiary using an exchange rate of 10.8 bolivars per U.S. dollar, which was the SICAD 1 rate on that date. We recorded a charge of $226 million related to the change in exchange rates in the line item other income (loss) — net in our condensed consolidated statement of income during the nine months ended September 26, 2014. The Company will continue to use the SICAD 1 rate to remeasure the net monetary assets of our Venezuelan subsidiary unless facts and circumstances change. | |
If the bolivar devalues further, or if we are able to access currency at different rates that are reasonable to the Company, it would result in our Company recognizing additional foreign currency exchange gains or losses in our condensed consolidated financial statements. As of September 26, 2014, our Venezuelan subsidiary held net monetary assets of $206 million, including $175 million of cash, cash equivalents, short-term investments and marketable securities. Despite the additional currency conversion mechanisms, the Company's ability to pay dividends from Venezuela is still restricted due to the low volume of U.S. dollars available for conversion. | |
In addition to the foreign currency exchange exposure related to our Venezuelan subsidiary's net monetary assets, we also sell concentrate to our bottling partner in Venezuela from outside the country. These sales are denominated in U.S. dollars and the carrying value of the receivables related to these sales was $275 million as of September 26, 2014. If a government-approved exchange rate mechanism is not available for our bottling partner in Venezuela to convert bolivars and pay for these receivables and for future concentrate sales, the receivables balance will continue to increase. We will continue to monitor the collectability and convertibility of these receivables. We also have certain U.S. dollar denominated intangible assets associated with products sold in Venezuela, which had a carrying value of $107 million as of September 26, 2014. If the bolivar further devalues, it could result in the impairment of these intangible assets. Additionally, in January 2014, the Venezuelan government enacted a new law which imposes limits on profit margins earned in the country, which limited the Company's cash flows during the three and nine months ended September 26, 2014, and will continue to limit the future cash flows as long as the law is in effect. | |
Recently Issued Accounting Guidance | ' |
Recently Issued Accounting Guidance | |
In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Under ASU 2014-08, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization's operations and financial results. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income and expenses of discontinued operations. ASU 2014-08 is effective for fiscal and interim periods beginning on or after December 15, 2014. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles and is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. ASU 2014-09 also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 allows for both retrospective and prospective methods of adoption and is effective for periods beginning after December 15, 2016. The Company is currently evaluating the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements. |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures Acquisitions and Divestitures (Tables) | 9 Months Ended | |||
Sep. 26, 2014 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||
Assets and Liabilities Held for Sale | ' | |||
The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our condensed consolidated balance sheet (in millions): | ||||
September 26, 2014 | ||||
Inventories | $ | 15 | ||
Prepaid expenses and other assets | 1 | |||
Property, plant and equipment — net | 78 | |||
Bottlers' franchise rights with indefinite lives | 183 | |||
Goodwill | 23 | |||
Other intangible assets | 39 | |||
Allowance for reduction of assets held for sale | (236 | ) | ||
Total assets held for sale | $ | 103 | ||
Other liabilities | $ | 16 | ||
Total liabilities held for sale | $ | 16 | ||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||
Sep. 26, 2014 | ||||||||||||||
Investments [Abstracts] | ' | |||||||||||||
Schedule of trading securities | ' | |||||||||||||
The Company's trading securities were included in the following line items in our condensed consolidated balance sheets (in millions): | ||||||||||||||
September 26, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Marketable securities | $ | 304 | $ | 286 | ||||||||||
Other assets | 91 | 86 | ||||||||||||
Total trading securities | $ | 395 | $ | 372 | ||||||||||
Available-for-sale securities and held-to-maturity securities | ' | |||||||||||||
As of September 26, 2014, available-for-sale securities consisted of the following (in millions): | ||||||||||||||
Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Available-for-sale securities:1 | ||||||||||||||
Equity securities | $ | 2,752 | $ | 1,465 | $ | (16 | ) | $ | 4,201 | |||||
Debt securities | 3,452 | 51 | (8 | ) | 3,495 | |||||||||
Total available-for-sale securities | $ | 6,204 | $ | 1,516 | $ | (24 | ) | $ | 7,696 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
As of December 31, 2013, available-for-sale securities consisted of the following (in millions): | ||||||||||||||
Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Available-for-sale securities:1 | ||||||||||||||
Equity securities | $ | 1,097 | $ | 373 | $ | (17 | ) | $ | 1,453 | |||||
Debt securities | 3,388 | 24 | (23 | ) | 3,389 | |||||||||
Total available-for-sale securities | $ | 4,485 | $ | 397 | $ | (40 | ) | $ | 4,842 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
Schedule of Realized Gain (Loss) [Table Text Block] | ' | |||||||||||||
The sale and/or maturity of available-for-sale securities resulted in the following realized activity (in millions): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Gross gains | $ | 9 | $ | 2 | $ | 25 | $ | 10 | ||||||
Gross losses | (3 | ) | (9 | ) | (16 | ) | (19 | ) | ||||||
Proceeds | 1,260 | 1,091 | 3,442 | 3,349 | ||||||||||
Investments by Balance Sheet Grouping | ' | |||||||||||||
The Company's available-for-sale securities were included in the following line items in our condensed consolidated balance sheets (in millions): | ||||||||||||||
September 26, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Cash and cash equivalents | $ | — | $ | 245 | ||||||||||
Marketable securities | 3,141 | 2,861 | ||||||||||||
Other investments | 3,569 | 958 | ||||||||||||
Other assets | 986 | 778 | ||||||||||||
Total available-for-sale securities | $ | 7,696 | $ | 4,842 | ||||||||||
Contractual maturity amounts of the investment securities | ' | |||||||||||||
The contractual maturities of these available-for-sale securities as of September 26, 2014 were as follows (in millions): | ||||||||||||||
Cost | Fair Value | |||||||||||||
Within 1 year | $ | 1,240 | $ | 1,241 | ||||||||||
After 1 year through 5 years | 1,703 | 1,730 | ||||||||||||
After 5 years through 10 years | 129 | 139 | ||||||||||||
After 10 years | 380 | 385 | ||||||||||||
Equity securities | 2,752 | 4,201 | ||||||||||||
Total available-for-sale securities | $ | 6,204 | $ | 7,696 | ||||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||
Sep. 26, 2014 | |||||||
Inventories | ' | ||||||
Inventories | ' | ||||||
Inventories consisted of the following (in millions): | |||||||
September 26, | December 31, | ||||||
2014 | 2013 | ||||||
Raw materials and packaging | $ | 1,645 | $ | 1,692 | |||
Finished goods | 1,267 | 1,240 | |||||
Other | 365 | 345 | |||||
Total inventories | $ | 3,277 | $ | 3,277 | |||
Hedging_Transactions_and_Deriv1
Hedging Transactions and Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Sep. 26, 2014 | ||||||||||||||
Hedging Transactions and Derivative Financial Instruments | ' | |||||||||||||
Derivative instruments, fair value, designated as hedging instruments | ' | |||||||||||||
The following table presents the fair values of the Company's derivative instruments that were designated and qualified as part of a hedging relationship (in millions): | ||||||||||||||
Fair Value1,2 | ||||||||||||||
Derivatives Designated as | Balance Sheet Location1 | September 26, | December 31, 2013 | |||||||||||
Hedging Instruments | 2014 | |||||||||||||
Assets | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 496 | $ | 211 | |||||||||
Foreign currency contracts | Other assets | 181 | 109 | |||||||||||
Commodity contracts | Prepaid expenses and other assets | — | 1 | |||||||||||
Interest rate contracts | Prepaid expenses and other assets | 24 | — | |||||||||||
Interest rate contracts | Other assets | 154 | 283 | |||||||||||
Total assets | $ | 855 | $ | 604 | ||||||||||
Liabilities | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 23 | $ | 84 | |||||||||
Foreign currency contracts | Other liabilities | 109 | 40 | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 1 | 1 | |||||||||||
Interest rate contracts | Other liabilities | 5 | — | |||||||||||
Total liabilities | $ | 138 | $ | 125 | ||||||||||
1 All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | ' | |||||||||||||
The following table presents the fair values of the Company's derivative instruments that were not designated as hedging instruments (in millions): | ||||||||||||||
Fair Value1,2 | ||||||||||||||
Derivatives Not Designated as | Balance Sheet Location1 | September 26, | December 31, 2013 | |||||||||||
Hedging Instruments | 2014 | |||||||||||||
Assets | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 64 | $ | 21 | |||||||||
Foreign currency contracts | Other assets | 174 | 171 | |||||||||||
Commodity contracts | Prepaid expenses and other assets | 36 | 33 | |||||||||||
Commodity contracts | Other assets | 2 | 1 | |||||||||||
Other derivative instruments | Prepaid expenses and other assets | 30 | 9 | |||||||||||
Other derivative instruments | Other assets | 2 | — | |||||||||||
Total assets | $ | 308 | $ | 235 | ||||||||||
Liabilities | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 35 | $ | 24 | |||||||||
Foreign currency contracts | Other liabilities | 44 | — | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 42 | 23 | |||||||||||
Commodity contracts | Other liabilities | 4 | — | |||||||||||
Interest rate contracts | Other liabilities | 2 | 3 | |||||||||||
Other derivative instruments | Accounts payable and accrued expenses | 2 | — | |||||||||||
Total liabilities | $ | 129 | $ | 50 | ||||||||||
1 All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments. | ||||||||||||||
2 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
Derivative instruments, designated as hedging instruments, gain (loss) in statement of financial performance | ' | |||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the three months ended September 26, 2014 (in millions): | ||||||||||||||
Gain (Loss) Recognized | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||
in Other Comprehensive | Recognized in Income1 | Reclassified from | ||||||||||||
Income ("OCI") | AOCI into Income | |||||||||||||
(Effective Portion) | ||||||||||||||
Foreign currency contracts | $ | 490 | Net operating revenues | $ | 19 | $ | — | |||||||
Foreign currency contracts | 36 | Cost of goods sold | 5 | — | 2 | |||||||||
Foreign currency contracts | (93 | ) | Other income (loss) — net | (52 | ) | — | ||||||||
Interest rate contracts | (9 | ) | Interest expense | — | — | |||||||||
Commodity contracts | — | Cost of goods sold | 1 | — | ||||||||||
Total | $ | 424 | $ | (27 | ) | $ | — | |||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
2 Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the nine months ended September 26, 2014 (in millions): | ||||||||||||||
Gain (Loss) Recognized | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | |||||||||||
in OCI | Recognized in Income1 | Reclassified from | ||||||||||||
AOCI into Income | ||||||||||||||
(Effective Portion) | ||||||||||||||
Foreign currency contracts | $ | 378 | Net operating revenues | $ | 62 | $ | — | 2 | ||||||
Foreign currency contracts | 15 | Cost of goods sold | 25 | — | 2 | |||||||||
Foreign currency contracts | (93 | ) | Other income (loss) — net | (52 | ) | — | ||||||||
Interest rate contracts | (100 | ) | Interest expense | — | — | |||||||||
Commodity contracts | 1 | Cost of goods sold | 2 | — | ||||||||||
Total | $ | 201 | $ | 37 | $ | — | ||||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
2 Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the three months ended September 27, 2013 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in OCI | AOCI into Income | (Ineffective Portion and | ||||||||||||
(Effective Portion) | Amount Excluded from | |||||||||||||
Effectiveness Testing) | ||||||||||||||
Foreign currency contracts | $ | (70 | ) | Net operating revenues | $ | 53 | $ | — | ||||||
Foreign currency contracts | (4 | ) | Cost of goods sold | 11 | — | |||||||||
Interest rate contracts | 4 | Interest expense | (3 | ) | — | |||||||||
Commodity contracts | — | Cost of goods sold | (1 | ) | — | |||||||||
Total | $ | (70 | ) | $ | 60 | $ | — | |||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the nine months ended September 27, 2013 (in millions): | ||||||||||||||
Gain (Loss) | Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||
Recognized | Recognized in Income1 | Reclassified from | Recognized in Income | |||||||||||
in OCI | AOCI into Income | (Ineffective Portion and | ||||||||||||
(Effective Portion) | Amount Excluded from | |||||||||||||
Effectiveness Testing) | ||||||||||||||
Foreign currency contracts | $ | 150 | Net operating revenues | $ | 123 | $ | 1 | |||||||
Foreign currency contracts | 31 | Cost of goods sold | 21 | — | ||||||||||
Interest rate contracts | 155 | Interest expense | (9 | ) | — | 2 | ||||||||
Commodity contracts | 1 | Cost of goods sold | (2 | ) | — | |||||||||
Total | $ | 337 | $ | 133 | $ | 1 | ||||||||
1 The Company records gains and losses reclassified from AOCI into income for the effective portion and the ineffective portion, if any, to the same line items in our condensed consolidated statements of income. | ||||||||||||||
2 Includes a de minimis amount of ineffectiveness in the hedging relationship. | ||||||||||||||
Derivative instruments, fair value hedges, gain (loss) recognized in income | ' | |||||||||||||
The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings during the three months ended September 26, 2014 and September 27, 2013 (in millions): | ||||||||||||||
Fair Value Hedging Instruments | Location of Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized in Income | Recognized in Income | |||||||||||||
Three Months Ended | ||||||||||||||
September 26, | September 27, | |||||||||||||
2014 | 2013 | |||||||||||||
Interest rate swaps | Interest expense | $ | (36 | ) | $ | 4 | ||||||||
Fixed-rate debt | Interest expense | 44 | 5 | |||||||||||
Net impact to interest expense | $ | 8 | $ | 9 | ||||||||||
Foreign currency contracts | Other income (loss) — net | $ | 12 | $ | 39 | |||||||||
Available-for-sale securities | Other income (loss) — net | (18 | ) | (45 | ) | |||||||||
Net impact to other income (loss) — net | $ | (6 | ) | $ | (6 | ) | ||||||||
Net impact of fair value hedging instruments | $ | 2 | $ | 3 | ||||||||||
The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings during the nine months ended September 26, 2014 and September 27, 2013 (in millions): | ||||||||||||||
Fair Value Hedging Instruments | Location of Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized in Income | Recognized in Income | |||||||||||||
Nine Months Ended | ||||||||||||||
September 26, | September 27, | |||||||||||||
2014 | 2013 | |||||||||||||
Interest rate swaps | Interest expense | $ | (10 | ) | $ | (147 | ) | |||||||
Fixed-rate debt | Interest expense | 29 | 181 | |||||||||||
Net impact to interest expense | $ | 19 | $ | 34 | ||||||||||
Foreign currency contracts | Other income (loss) — net | $ | (7 | ) | $ | 32 | ||||||||
Available-for-sale securities | Other income (loss) — net | (10 | ) | (47 | ) | |||||||||
Net impact to other income (loss) — net | $ | (17 | ) | $ | (15 | ) | ||||||||
Net impact of fair value hedging instruments | $ | 2 | $ | 19 | ||||||||||
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives designated as net investment hedges had on AOCI during the three and nine months ended September 26, 2014 and September 27, 2013 (in millions): | ||||||||||||||
Gain (Loss) Recognized in OCI | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Foreign currency contracts | $ | 134 | $ | (22 | ) | $ | (8 | ) | $ | 8 | ||||
Schedule of Derivative Instruments Not Designated as Hedging Instruments Gain (Loss) in Statement of Financial Performance [Table Text Block] | ' | |||||||||||||
The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the three and nine months ended September 26, 2014 and September 27, 2013 (in millions): | ||||||||||||||
Three Months Ended | ||||||||||||||
Derivatives Not Designated | Location of Gain (Loss) | September 26, | September 27, | |||||||||||
as Hedging Instruments | Recognized in Income | 2014 | 2013 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | 6 | $ | (2 | ) | ||||||||
Foreign currency contracts | Other income (loss) — net | (70 | ) | 47 | ||||||||||
Foreign currency contracts | Cost of goods sold | — | 2 | |||||||||||
Commodity contracts | Net operating revenues | (9 | ) | 2 | ||||||||||
Commodity contracts | Cost of goods sold | 25 | (3 | ) | ||||||||||
Commodity contracts | Selling, general and administrative expenses | (15 | ) | 3 | ||||||||||
Other derivative instruments | Selling, general and administrative expenses | 3 | 9 | |||||||||||
Other derivative instruments | Other income (loss) — net | 18 | — | |||||||||||
Total | $ | (42 | ) | $ | 58 | |||||||||
Nine Months Ended | ||||||||||||||
Derivatives Not Designated | Location of Gain (Loss) | September 26, | September 27, | |||||||||||
as Hedging Instruments | Recognized in Income | 2014 | 2013 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | (12 | ) | $ | 2 | ||||||||
Foreign currency contracts | Other income (loss) — net | (47 | ) | 120 | ||||||||||
Foreign currency contracts | Cost of goods sold | — | 2 | |||||||||||
Interest rate contracts | Interest expense | — | (3 | ) | ||||||||||
Commodity contracts | Net operating revenues | (9 | ) | 1 | ||||||||||
Commodity contracts | Cost of goods sold | 60 | (147 | ) | ||||||||||
Commodity contracts | Selling, general and administrative expenses | (14 | ) | 1 | ||||||||||
Other derivative instruments | Selling, general and administrative expenses | 17 | 33 | |||||||||||
Other derivative instruments | Other income (loss) — net | 26 | — | |||||||||||
Total | $ | 21 | $ | 9 | ||||||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 9 Months Ended | |||||||||||
Sep. 26, 2014 | ||||||||||||
Comprehensive Income | ' | |||||||||||
Comprehensive Income (Loss), Apportioned between Shareowners of the Coca-Cola Company and Noncontrolling Interests [Text Block] | ' | |||||||||||
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions): | ||||||||||||
Nine Months Ended September 26, 2014 | ||||||||||||
Shareowners of | Noncontrolling | Total | ||||||||||
The Coca-Cola Company | Interests | |||||||||||
Consolidated net income | $ | 6,328 | $ | 25 | $ | 6,353 | ||||||
Other comprehensive income: | ||||||||||||
Net foreign currency translation adjustment | (1,280 | ) | (4 | ) | (1,284 | ) | ||||||
Net gain (loss) on derivatives1 | 98 | — | 98 | |||||||||
Net unrealized gain (loss) on available-for-sale securities2 | 723 | — | 723 | |||||||||
Net change in pension and other benefit liabilities | 48 | — | 48 | |||||||||
Total comprehensive income | $ | 5,917 | $ | 21 | $ | 5,938 | ||||||
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 Refer to Note 3 for information related to the net unrealized gain or loss on available-for-sale securities. | ||||||||||||
OCI attributable to the shareowners of The Coca-Cola Company | ' | |||||||||||
The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI (in millions): | ||||||||||||
Three Months Ended September 26, 2014 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (1,166 | ) | $ | (67 | ) | $ | (1,233 | ) | |||
Reclassification adjustments recognized in net income | — | — | — | |||||||||
Net foreign currency translation adjustments | (1,166 | ) | (67 | ) | (1,233 | ) | ||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | 419 | (157 | ) | 262 | ||||||||
Reclassification adjustments recognized in net income | 27 | (11 | ) | 16 | ||||||||
Net gain (loss) on derivatives1 | 446 | (168 | ) | 278 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | 177 | (99 | ) | 78 | ||||||||
Reclassification adjustments recognized in net income | (6 | ) | 2 | (4 | ) | |||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 171 | (97 | ) | 74 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | 19 | (4 | ) | 15 | ||||||||
Reclassification adjustments recognized in net income | 14 | (5 | ) | 9 | ||||||||
Net change in pension and other benefit liabilities3 | 33 | (9 | ) | 24 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (516 | ) | $ | (341 | ) | $ | (857 | ) | |||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Nine Months Ended September 26, 2014 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (1,286 | ) | $ | 6 | $ | (1,280 | ) | ||||
Reclassification adjustments recognized in net income | — | — | — | |||||||||
Net foreign currency translation adjustments | (1,286 | ) | 6 | (1,280 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | 194 | (73 | ) | 121 | ||||||||
Reclassification adjustments recognized in net income | (37 | ) | 14 | (23 | ) | |||||||
Net gain (loss) on derivatives1 | 157 | (59 | ) | 98 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | 1,145 | (415 | ) | 730 | ||||||||
Reclassification adjustments recognized in net income | (9 | ) | 2 | (7 | ) | |||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 1,136 | (413 | ) | 723 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | 27 | (6 | ) | 21 | ||||||||
Reclassification adjustments recognized in net income | 43 | (16 | ) | 27 | ||||||||
Net change in pension and other benefit liabilities3 | 70 | (22 | ) | 48 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | 77 | $ | (488 | ) | $ | (411 | ) | ||||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Three Months Ended September 27, 2013 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (639 | ) | $ | 144 | $ | (495 | ) | ||||
Reclassification adjustments recognized in net income | 26 | — | 26 | |||||||||
Net foreign currency translation adjustments | (613 | ) | 144 | (469 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | (69 | ) | 25 | (44 | ) | |||||||
Reclassification adjustments recognized in net income | (60 | ) | 22 | (38 | ) | |||||||
Net gain (loss) on derivatives1 | (129 | ) | 47 | (82 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | (152 | ) | 53 | (99 | ) | |||||||
Reclassification adjustments recognized in net income | 7 | — | 7 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | (145 | ) | 53 | (92 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | (5 | ) | — | (5 | ) | |||||||
Reclassification adjustments recognized in net income | 49 | (17 | ) | 32 | ||||||||
Net change in pension and other benefit liabilities3 | 44 | (17 | ) | 27 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (843 | ) | $ | 227 | $ | (616 | ) | ||||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Nine Months Ended September 27, 2013 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (1,318 | ) | $ | 37 | $ | (1,281 | ) | ||||
Reclassification adjustments recognized in net income | (194 | ) | — | (194 | ) | |||||||
Net foreign currency translation adjustments | (1,512 | ) | 37 | (1,475 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | 333 | (128 | ) | 205 | ||||||||
Reclassification adjustments recognized in net income | (133 | ) | 50 | (83 | ) | |||||||
Net gain (loss) on derivatives1 | 200 | (78 | ) | 122 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | (108 | ) | 33 | (75 | ) | |||||||
Reclassification adjustments recognized in net income | 9 | — | 9 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | (99 | ) | 33 | (66 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | 20 | (9 | ) | 11 | ||||||||
Reclassification adjustments recognized in net income | 147 | (53 | ) | 94 | ||||||||
Net change in pension and other benefit liabilities3 | 167 | (62 | ) | 105 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (1,244 | ) | $ | (70 | ) | $ | (1,314 | ) | |||
1 | Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments. | |||||||||||
2 | Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures. | |||||||||||
3 | Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities. | |||||||||||
Income statement location of adjustments reclassified from AOCI into income | ' | |||||||||||
The following table presents the amounts and line items in our condensed consolidated statements of income where adjustments reclassified from AOCI into income were recorded during the three and nine months ended September 26, 2014 (in millions): | ||||||||||||
Amount Reclassified from | ||||||||||||
AOCI into Income | ||||||||||||
Description of AOCI Component | Location of Gain (Loss) | Three Months Ended September 26, 2014 | Nine Months Ended September 26, 2014 | |||||||||
Recognized in Income | ||||||||||||
Derivatives: | ||||||||||||
Foreign currency contracts | Net operating revenues | $ | (19 | ) | $ | (62 | ) | |||||
Foreign currency and commodity contracts | Cost of goods sold | (6 | ) | (27 | ) | |||||||
Foreign currency contracts | Other income (loss) — net | 52 | 52 | |||||||||
Income before income taxes | 27 | (37 | ) | |||||||||
Income taxes | (11 | ) | 14 | |||||||||
Consolidated net income | $ | 16 | $ | (23 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Sale of securities | Other income (loss) — net | $ | (6 | ) | $ | (9 | ) | |||||
Income before income taxes | (6 | ) | (9 | ) | ||||||||
Income taxes | 2 | 2 | ||||||||||
Consolidated net income | $ | (4 | ) | $ | (7 | ) | ||||||
Pension and other benefit liabilities: | ||||||||||||
Amortization of net actuarial loss | * | $ | 18 | $ | 56 | |||||||
Amortization of prior service cost (credit) | * | (4 | ) | (13 | ) | |||||||
Income before income taxes | 14 | 43 | ||||||||||
Income taxes | (5 | ) | (16 | ) | ||||||||
Consolidated net income | $ | 9 | $ | 27 | ||||||||
* | This component of AOCI is included in the Company's computation of net periodic benefit cost and is not reclassified out of AOCI into a single line item in our condensed consolidated statements of income in its entirety. Refer to Note 12 for additional information. |
Changes_in_Equity_Tables
Changes in Equity (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||
Changes in Equity [Abstract] | ' | |||||||||||||||||||||
Changes in Equity | ' | |||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to shareowners of The Coca-Cola Company and equity attributable to noncontrolling interests (in millions): | ||||||||||||||||||||||
Shareowners of The Coca-Cola Company | ||||||||||||||||||||||
Total | Reinvested | Accumulated | Common | Capital | Treasury | Non- | ||||||||||||||||
Earnings | Other | Stock | Surplus | Stock | controlling | |||||||||||||||||
Comprehensive | Interests | |||||||||||||||||||||
Income (Loss) | ||||||||||||||||||||||
December 31, 2013 | $ | 33,440 | $ | 61,660 | $ | (3,432 | ) | $ | 1,760 | $ | 12,276 | $ | (39,091 | ) | $ | 267 | ||||||
Comprehensive income (loss) | 5,938 | 6,328 | (411 | ) | — | — | — | 21 | ||||||||||||||
Dividends paid/payable to shareowners of | (4,016 | ) | (4,016 | ) | — | — | — | — | — | |||||||||||||
The Coca-Cola Company | ||||||||||||||||||||||
Dividends paid to noncontrolling interests | (21 | ) | — | — | — | — | — | (21 | ) | |||||||||||||
Business combinations including purchase accounting adjustments | (27 | ) | — | — | — | — | — | (27 | ) | |||||||||||||
Purchases of treasury stock | (2,887 | ) | — | — | — | — | (2,887 | ) | — | |||||||||||||
Impact of employee stock option and | 1,242 | — | — | — | 625 | 617 | — | |||||||||||||||
restricted stock plans | ||||||||||||||||||||||
September 26, 2014 | $ | 33,669 | $ | 63,972 | $ | (3,843 | ) | $ | 1,760 | $ | 12,901 | $ | (41,361 | ) | $ | 240 | ||||||
Productivity_Integration_and_R1
Productivity, Integration and Restructuring Initiatives (Tables) | 9 Months Ended | |||||||||||||||
Sep. 26, 2014 | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||
Productivity and Reinvestment [Table Text Block] | ' | |||||||||||||||
The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts as of and for the three months ended September 26, 2014 (in millions): | ||||||||||||||||
Accrued | Costs | Payments | Noncash | Accrued | ||||||||||||
Balance | Incurred | and | Balance | |||||||||||||
27-Jun-14 | Three Months Ended | Exchange | 26-Sep-14 | |||||||||||||
26-Sep-14 | ||||||||||||||||
Severance pay and benefits | $ | 43 | $ | 12 | $ | (18 | ) | $ | (1 | ) | $ | 36 | ||||
Outside services | 4 | 21 | (22 | ) | — | 3 | ||||||||||
Other direct costs | 14 | 51 | (49 | ) | (2 | ) | 14 | |||||||||
Total | $ | 61 | $ | 84 | $ | (89 | ) | $ | (3 | ) | $ | 53 | ||||
The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts as of and for the nine months ended September 26, 2014 (in millions): | ||||||||||||||||
Accrued | Costs | Payments | Noncash | Accrued | ||||||||||||
Balance | Incurred | and | Balance | |||||||||||||
31-Dec-13 | Nine Months Ended | Exchange | 26-Sep-14 | |||||||||||||
26-Sep-14 | ||||||||||||||||
Severance pay and benefits | $ | 88 | $ | 26 | $ | (77 | ) | $ | (1 | ) | $ | 36 | ||||
Outside services | 6 | 52 | (55 | ) | — | 3 | ||||||||||
Other direct costs | 18 | 181 | (162 | ) | (23 | ) | 14 | |||||||||
Total | $ | 112 | $ | 259 | $ | (294 | ) | $ | (24 | ) | $ | 53 | ||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended | |||||||||||||
Sep. 26, 2014 | ||||||||||||||
Pension and Other Postretirement Benefit Plans | ' | |||||||||||||
Periodic benefit cost, pension and other postretirement benefit plans | ' | |||||||||||||
Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following (in millions): | ||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||
Three Months Ended | ||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Service cost | $ | 62 | $ | 69 | $ | 7 | $ | 9 | ||||||
Interest cost | 101 | 93 | 11 | 10 | ||||||||||
Expected return on plan assets | (179 | ) | (163 | ) | (3 | ) | (2 | ) | ||||||
Amortization of prior service cost (credit) | — | (1 | ) | (4 | ) | (3 | ) | |||||||
Amortization of net actuarial loss | 18 | 50 | — | 3 | ||||||||||
Net periodic benefit cost (credit) | $ | 2 | $ | 48 | $ | 11 | $ | 17 | ||||||
Settlement charge | — | — | — | — | ||||||||||
Total cost (credit) recognized in statements of income | $ | 2 | $ | 48 | $ | 11 | $ | 17 | ||||||
Pension Benefits | Other Benefits | |||||||||||||
Nine Months Ended | ||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Service cost | $ | 196 | $ | 207 | $ | 20 | $ | 27 | ||||||
Interest cost | 304 | 282 | 32 | 31 | ||||||||||
Expected return on plan assets | (537 | ) | (492 | ) | (9 | ) | (7 | ) | ||||||
Amortization of prior service cost (credit) | (1 | ) | (2 | ) | (12 | ) | (8 | ) | ||||||
Amortization of net actuarial loss | 54 | 149 | 2 | 9 | ||||||||||
Net periodic benefit cost (credit) | $ | 16 | $ | 144 | $ | 33 | $ | 52 | ||||||
Settlement charge | 2 | — | — | — | ||||||||||
Total cost (credit) recognized in statements of income | $ | 18 | $ | 144 | $ | 33 | $ | 52 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 26, 2014 | |||||||||||||||||
Income taxes | ' | ||||||||||||||||
Schedule of tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented | ' | ||||||||||||||||
The following table illustrates the tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented (in millions): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 26, | September 27, | September 26, | September 27, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Asset impairments | $ | — | $ | — | 8 | $ | — | $ | — | 8 | |||||||
Productivity and reinvestment program | (30 | ) | 1 | (37 | ) | 9 | (96 | ) | 1 | (115 | ) | 9 | |||||
Other productivity, integration and restructuring initiatives | — | 2 | 1 | 10 | — | 2 | 2 | 10 | |||||||||
Transaction gains and losses | (96 | ) | 3 | 255 | 11 | (147 | ) | 4 | 303 | 12 | |||||||
Certain tax matters | (29 | ) | 5 | (20 | ) | 13 | 2 | 5 | (20 | ) | 13 | ||||||
Other — net | (2 | ) | 6 | 4 | 14 | 6 | 7 | — | 15 | ||||||||
1 | Related to charges of $84 million and $259 million during the three and nine months ended September 26, 2014, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
2 | Related to charges of $34 million and $142 million during the three and nine months ended September 26, 2014, respectively. These charges were due to the integration of our German bottling and distribution operations. Refer to Note 10 and Note 11. | ||||||||||||||||
3 | Related to charges of $277 million including $270 million due to refranchising certain North America territories. Refer to Note 2. | ||||||||||||||||
4 | Related to charges of $417 million including $410 million due to refranchising certain North America territories. Refer to Note 2. | ||||||||||||||||
5 | Primarily related to prior year audit settlements and amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, of which the components of the net change are individually insignificant. | ||||||||||||||||
6 | Related to charges of $14 million that consisted of $5 million due to the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner, and $8 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | ||||||||||||||||
7 | Related to charges of $319 million that primarily consisted of $268 million due to the expansion of the Venezuelan government's currency conversion markets, including a write-down of receivables from our bottling partner in Venezuela, $30 million due to the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner, and $20 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 1 and Note 10. | ||||||||||||||||
8 | Related to charges of $190 million due to the impairment of certain of the Company's intangible assets. Refer to Note 10 and Note 14. | ||||||||||||||||
9 | Related to charges of $97 million and $312 million during the three and nine months ended September 27, 2013, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. | ||||||||||||||||
10 | Related to net charges of $43 million and $82 million during the three and nine months ended September 27, 2013, respectively. These charges were primarily due to the integration of our German bottling and distribution operations. Refer to Note 10 and Note 11. | ||||||||||||||||
11 | Related to a net gain of $585 million consisting of the following items: a gain of $615 million due to the deconsolidation of our Brazilian bottling operations upon their combination with an independent bottler; a gain of $30 million due to the merger of four of the Company's Japanese bottling partners; and charges of $60 million due to the deferral of revenue and corresponding gross profit associated with the intercompany portion of our concentrate sales to CCEJ and the newly combined Brazilian operations until the finished beverage products made from those concentrates are sold to a third party. Refer to Note 2, Note 10 and Note 14. | ||||||||||||||||
12 | Related to a net gain of $574 million that primarily consisted of the following items: a gain of $615 million related to the deconsolidation of our Brazilian bottling operations upon their combination with an independent bottler; a gain of $139 million the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment; a net loss of $114 million due to the merger of four of the Company's Japanese bottling partners; and charges of $60 million due to the deferral of revenue and corresponding gross profit associated with the intercompany portion of our concentrate sales to CCEJ and the newly combined Brazilian bottling operations until the finished beverage products made from those concentrates are sold to a third party. Refer to Note 2, Note 10 and Note 14. | ||||||||||||||||
13 | Related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. | ||||||||||||||||
14 | Related to a net charge of $3 million that consisted of a charge of $11 million associated with certain of the Company's fixed assets, partially offset by a net gain of $8 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | ||||||||||||||||
15 | Related to charges of $205 million that primarily consisted of the following items: a charge of $23 million due to the early extinguishment of certain long-term debt; a charge of $149 million due to the devaluation of the Venezuelan bolivar; a net charge of $25 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity investees; and a charge of $11 million associated with certain of the Company's fixed assets. Refer to Note 10. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||
The following table summarizes those assets and liabilities measured at fair value on a recurring basis as of September 26, 2014 (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets | ||||||||||||||||||
Trading securities2 | $ | 217 | $ | 174 | $ | 4 | $ | — | $ | 395 | ||||||||
Available-for-sale securities2 | 4,196 | 3,373 | 127 | 3 | — | 7,696 | ||||||||||||
Derivatives4 | 22 | 1,141 | — | (207 | ) | 956 | 5 | |||||||||||
Total assets | $ | 4,435 | $ | 4,688 | $ | 131 | $ | (207 | ) | $ | 9,047 | |||||||
Liabilities | ||||||||||||||||||
Derivatives4 | $ | 2 | $ | 265 | $ | — | $ | (207 | ) | $ | 60 | 5 | ||||||
Total liabilities | $ | 2 | $ | 265 | $ | — | $ | (207 | ) | $ | 60 | |||||||
1 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. | ||||||||||||||||||
2 | Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. | |||||||||||||||||
3 Primarily related to long-term debt securities that mature in 2018. | ||||||||||||||||||
4 Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
5 The Company's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $443 million in the line item prepaid expenses and other assets; $513 million in the line item other assets; $3 million in the line item accounts payable and accrued expenses; and $57 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
The following table summarizes those assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets | ||||||||||||||||||
Trading securities2 | $ | 206 | $ | 163 | $ | 3 | $ | — | $ | 372 | ||||||||
Available-for-sale securities2 | 1,453 | 3,281 | 108 | 3 | — | 4,842 | ||||||||||||
Derivatives4 | 17 | 822 | — | (150 | ) | 689 | 5 | |||||||||||
Total assets | $ | 1,676 | $ | 4,266 | $ | 111 | $ | (150 | ) | $ | 5,903 | |||||||
Liabilities | ||||||||||||||||||
Derivatives4 | $ | 10 | $ | 165 | $ | — | $ | (151 | ) | $ | 24 | 5 | ||||||
Total liabilities | $ | 10 | $ | 165 | $ | — | $ | (151 | ) | $ | 24 | |||||||
1 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. There are no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. | ||||||||||||||||||
2 | Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. | |||||||||||||||||
3 Primarily related to long-term debt securities that mature in 2018. | ||||||||||||||||||
4 Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
5 The Company's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $129 million in the line item prepaid expenses and other assets; $560 million in the line item other assets; $12 million in the line item accounts payable and accrued expenses; and $12 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. | ||||||||||||||||||
Assets and liabilities measured at fair value on a Nonrecurring basis | ' | |||||||||||||||||
The gains or losses on assets measured at fair value on a nonrecurring basis for the three and nine months ended September 26, 2014 and September 27, 2013 are summarized in the table below (in millions): | ||||||||||||||||||
Gains (Losses) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 26, | September 27, | September 26, | September 27, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Assets held for sale | $ | (236 | ) | 1 | $ | — | $ | (236 | ) | 1 | $ | — | ||||||
Intangible assets | — | (190 | ) | 2 | — | (190 | ) | 2 | ||||||||||
Valuation of shares in equity method investee | — | — | — | 139 | 4 | |||||||||||||
Exchange of investment in equity securities | — | 30 | 3 | — | (114 | ) | 5 | |||||||||||
Total | $ | (236 | ) | $ | (160 | ) | $ | (236 | ) | $ | (165 | ) | ||||||
1 | As of September 26, 2014, the Company had entered into agreements to refranchise additional territories in North America. These operations met the criteria to be classified as held for sale in our condensed consolidated balance sheet as of September 26, 2014, and we were required to record their assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price. The Company recognized a noncash loss of $236 million during the three and nine months ended September 26, 2014 as a result of writing down the assets to their fair value less costs to sell. The loss was calculated based on Level 3 inputs. Refer to Note 2. | |||||||||||||||||
2 | The Company recognized a loss of $190 million due to impairment charges on certain intangible assets. The charges were primarily determined by comparing the fair value of the assets to the current carrying value. The fair value of the assets was derived using discounted cash flow analyses based on Level 3 inputs. Refer to Note 10. | |||||||||||||||||
3 | The Company recognized a gain of $30 million on the exchange of shares it previously owned in certain equity method investees for shares in CCEJ, a newly formed entity. The gain represents the difference between the carrying value of the shares the Company relinquished and the fair value of the CCEJ shares received as a result of the transaction. The gain and the initial carrying value of the Company's investment were calculated based on Level 1 inputs. The Company accounts for its investment in CCEJ under the equity method of accounting. Refer to Note 10. | |||||||||||||||||
4 | The Company recognized a gain of $139 million during the nine months ended September 27, 2013. This gain resulted from Coca-Cola FEMSA issuing additional shares of its own stock at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment in Coca-Cola FEMSA. This gain was determined using Level 1 inputs. Refer to Note 10. | |||||||||||||||||
5 | The Company recognized a net loss of $114 million on the exchange of shares it previously owned in certain equity method investees for shares in the newly formed entity CCEJ. CCEJ is also an equity method investee. The net loss represents the difference between the carrying value of the shares the Company relinquished and the fair value of the CCEJ shares received as a result of the transaction. The net loss and the initial carrying value of the Company's investment were calculated based on Level 1 inputs. Refer to Note 10. |
Operating_Segments_Tables
Operating Segments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 26, 2014 | ||||||||||||||||||||||||||||
Operating Segments [Abstract] | ' | |||||||||||||||||||||||||||
Operating Segments | ' | |||||||||||||||||||||||||||
Information about our Company's operations for the nine months ended September 26, 2014 and September 27, 2013, by operating segment, is as follows (in millions): | ||||||||||||||||||||||||||||
Eurasia | Europe | Latin | North | Asia Pacific | Bottling | Corporate | Eliminations | Consolidated | ||||||||||||||||||||
& Africa | America | America | Investments | |||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 2,099 | $ | 3,761 | $ | 3,360 | $ | 16,096 | $ | 4,181 | $ | 5,503 | $ | 126 | $ | — | $ | 35,126 | ||||||||||
Intersegment | — | 530 | 46 | 13 | 432 | 53 | — | (1,074 | ) | — | ||||||||||||||||||
Total net revenues | 2,099 | 4,291 | 3,406 | 16,109 | 4,613 | 5,556 | 126 | (1,074 | ) | 35,126 | ||||||||||||||||||
Operating income (loss) | 858 | 2,363 | 1,954 | 2,015 | 2,041 | 26 | (1,000 | ) | — | 8,257 | ||||||||||||||||||
Income (loss) before income taxes | 893 | 2,398 | 1,957 | 1,593 | 2,059 | 481 | (1,132 | ) | — | 8,249 | ||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 2,103 | $ | 3,545 | $ | 3,504 | $ | 16,306 | $ | 4,185 | $ | 6,047 | $ | 124 | $ | — | $ | 35,814 | ||||||||||
Intersegment | — | 520 | 169 | 13 | 431 | 61 | — | (1,194 | ) | — | ||||||||||||||||||
Total net revenues | 2,103 | 4,065 | 3,673 | 16,319 | 4,616 | 6,108 | 124 | (1,194 | ) | 35,814 | ||||||||||||||||||
Operating income (loss) | 845 | 2,261 | 2,209 | 1,875 | 2,024 | 186 | (1,277 | ) | — | 8,123 | ||||||||||||||||||
Income (loss) before income taxes | 868 | 2,318 | 2,213 | 1,879 | 2,042 | 677 | (748 | ) | — | 9,249 | ||||||||||||||||||
Information about our Company's operations as of and for the three months ended September 26, 2014 and September 27, 2013, by operating segment, is as follows (in millions): | ||||||||||||||||||||||||||||
Eurasia | Europe | Latin | North | Asia Pacific | Bottling | Corporate | Eliminations | Consolidated | ||||||||||||||||||||
& Africa | America | America | Investments | |||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 709 | $ | 1,242 | $ | 1,161 | $ | 5,596 | $ | 1,421 | $ | 1,804 | $ | 43 | $ | — | $ | 11,976 | ||||||||||
Intersegment | — | 187 | 16 | 3 | 154 | 19 | — | (379 | ) | — | ||||||||||||||||||
Total net revenues | 709 | 1,429 | 1,177 | 5,599 | 1,575 | 1,823 | 43 | (379 | ) | 11,976 | ||||||||||||||||||
Operating income (loss) | 265 | 752 | 653 | 760 | 638 | 14 | (371 | ) | — | 2,711 | ||||||||||||||||||
Income (loss) before income taxes | 272 | 763 | 654 | 486 | 648 | 205 | (368 | ) | — | 2,660 | ||||||||||||||||||
Identifiable operating assets | 1,421 | 3,610 | 2,777 | 33,750 | 1,934 | 6,887 | 31,616 | — | 81,995 | |||||||||||||||||||
Noncurrent investments | 1,162 | 98 | 790 | 43 | 158 | 9,381 | 2,687 | — | 14,319 | |||||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 669 | $ | 1,232 | $ | 1,208 | $ | 5,715 | $ | 1,368 | $ | 1,811 | $ | 27 | $ | — | $ | 12,030 | ||||||||||
Intersegment | — | 188 | 22 | 4 | 128 | 21 | — | (363 | ) | — | ||||||||||||||||||
Total net revenues | 669 | 1,420 | 1,230 | 5,719 | 1,496 | 1,832 | 27 | (363 | ) | 12,030 | ||||||||||||||||||
Operating income (loss) | 231 | 742 | 720 | 803 | 575 | 22 | (621 | ) | — | 2,472 | ||||||||||||||||||
Income (loss) before income taxes | 228 | 755 | 719 | 805 | 585 | 214 | 74 | — | 3,380 | |||||||||||||||||||
Identifiable operating assets | 1,340 | 3,567 | 2,672 | 34,278 | 1,848 | 6,836 | 27,356 | — | 77,897 | |||||||||||||||||||
Noncurrent investments | 1,160 | 104 | 525 | 44 | 140 | 9,486 | 76 | — | 11,535 | |||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Identifiable operating assets | $ | 1,273 | $ | 3,713 | $ | 2,918 | $ | 33,964 | $ | 1,922 | $ | 7,011 | $ | 27,742 | $ | — | $ | 78,543 | ||||||||||
Noncurrent investments | 1,157 | 106 | 545 | 49 | 143 | 9,424 | 88 | — | 11,512 | |||||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Hyperinflationary Economies (Details) (Venezuelan subsidiary, USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 |
Official Exchange Rate Set by Government for Non Essential Goods | 6.3 | ' |
SICAD 1 Rate | 10.8 | ' |
SICAD 2 Rate | 50.9 | ' |
Remeasurement Charges on Subsidiary Assets | $226 | ' |
Monetary Assets | 206 | ' |
Cash, Cash Equivalents, Short-Term Investments and Marketable Securities | 175 | ' |
Accounts Receivable Carrying Value | 275 | ' |
Intangible Assets Carrying Value | 107 | ' |
Corporate | ' | ' |
Remeasurement Charges on Subsidiary Assets | $226 | $140 |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 72 Months Ended | |||||||||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2013 | Mar. 28, 2014 | Sep. 27, 2013 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Jun. 27, 2014 | 1-May-14 | Feb. 27, 2014 | Sep. 26, 2014 | Dec. 31, 2019 | Jul. 03, 2013 |
CCEAG [Member] | Corporate | Corporate | Monster Beverage Corporation [Member] | Green Mountain Coffee Roasters, Inc. [Member] | Green Mountain Coffee Roasters, Inc. [Member] | Green Mountain Coffee Roasters, Inc. [Member] | Green Mountain Coffee Roasters, Inc. [Member] | North America Territory [Member] | Brazilian Bottling Operation [Member] | Brazilian Bottling Operation [Member] | ||||||
Acquisition and investment activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | ' | ' | $73 | $869 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Sale of Productive Assets | 23 | ' | 68 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derecognition of the intangible assets transfered | 34 | ' | 174 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset write down to fair value | 236 | 0 | 236 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 236 | ' | ' |
Acquisitions of businesses, equity method investments and nonmarketable securities | ' | ' | 343 | 326 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investments, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 16.70% | ' | ' | ' | ' | ' | ' | 44.00% |
Equity Method Investments | 10,582 | ' | 10,582 | ' | 10,393 | ' | ' | ' | 2,150 | ' | ' | ' | ' | ' | ' | ' |
Agreement Term | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Agreement Renewal Term | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Put Option Exercise Price | ' | ' | ' | ' | ' | 503 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available for Sale Securities, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 16.00% | 10.00% | ' | ' | ' |
Available for Sale Securities, Equity Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 302 | ' | 1,265 | ' | ' | ' |
Transaction Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | ' |
Available for Sale Securities, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.5 | ' | ' | ' | ' | ' | ' |
Deconsolidation, Gain (Loss), Amount | ' | 615 | ' | 615 | ' | ' | 615 | 615 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24.00% | ' |
Inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' |
Prepaid expenses and other Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Property, Plant and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 78 | ' | ' |
Bottlers' Franchise Rights with indefinite lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 183 | ' | ' |
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23 | ' | ' |
Other Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39 | ' | ' |
Allowance for reduction of assets, held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -236 | ' | ' |
Total assets held for sale | 103 | ' | 103 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 103 | ' | ' |
Other Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ' |
Total liabilities held for sale | $16 | ' | $16 | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | $16 | ' | ' |
Investments_Details
Investments (Details) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Trading Securities | ' | ' |
Trading Securities Unrealized Holding Gains (Losses) | $35 | $12 |
Marketable Securities | 304 | 286 |
Other Assets | 91 | 86 |
Equity Securities [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Total trading securities | $395 | $372 |
Investments_Details_2
Investments (Details 2) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 26, 2014 | Dec. 31, 2013 |
Available-for-sale securities, by type | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | $6,204 | $4,485 |
Available-for-sale Securities, Gross Unrealized Gain | 1,516 | 397 |
Available-for-sale Securities, Gross Unrealized Losses | -24 | -40 |
Available-for-sale Securities Fair Value | 7,696 | 4,842 |
Equity Securities | ' | ' |
Available-for-sale securities, by type | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 2,752 | 1,097 |
Available-for-sale Securities, Gross Unrealized Gain | 1,465 | 373 |
Available-for-sale Securities, Gross Unrealized Losses | -16 | -17 |
Available-for-sale Securities Fair Value | 4,201 | 1,453 |
Debt Securities | ' | ' |
Available-for-sale securities, by type | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 3,452 | 3,388 |
Available-for-sale Securities, Gross Unrealized Gain | 51 | 24 |
Available-for-sale Securities, Gross Unrealized Losses | -8 | -23 |
Available-for-sale Securities Fair Value | $3,495 | $3,389 |
Investments_Details_4
Investments (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-sale and held-to-maturity securities by balance sheet line item | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $11,084 | $11,118 | $11,084 | $11,118 | $10,414 | $8,442 |
Marketable securities | 3,445 | ' | 3,445 | ' | 3,147 | ' |
Other investments | 3,737 | ' | 3,737 | ' | 1,119 | ' |
Other assets | 4,850 | ' | 4,850 | ' | 4,661 | ' |
Available-for-sale Securities Fair Value | 7,696 | ' | 7,696 | ' | 4,842 | ' |
Proceeds from Sale of Available-for-sale Securities | 1,260 | 1,091 | 3,442 | 3,349 | ' | ' |
Available-for-sale Securities Gross Gains | 9 | 2 | 25 | 10 | ' | ' |
Available-for-sale Securities Gross Losses | -3 | -9 | -16 | -19 | ' | ' |
Available-for-sale Securities [Member] | ' | ' | ' | ' | ' | ' |
Available-for-sale and held-to-maturity securities by balance sheet line item | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 0 | ' | 0 | ' | 245 | ' |
Marketable securities | 3,141 | ' | 3,141 | ' | 2,861 | ' |
Other investments | 3,569 | ' | 3,569 | ' | 958 | ' |
Other assets | 986 | ' | 986 | ' | 778 | ' |
Available-for-sale Securities Fair Value | 7,696 | ' | 7,696 | ' | 4,842 | ' |
Solvency capital | $856 | ' | $856 | ' | $667 | ' |
Investments_Details_5
Investments (Details 5) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments [Abstracts] | ' | ' |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $1,240 | ' |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 1,241 | ' |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost Basis | 1,703 | ' |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value | 1,730 | ' |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost Basis | 129 | ' |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value | 139 | ' |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 380 | ' |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 385 | ' |
Available-for-sale Securities, Amortized Cost Basis | 6,204 | 4,485 |
Cost Method Investments [Abstract] | ' | ' |
Cost-method Investments, Aggregate Carrying Amount | 167 | 162 |
Held-to-maturity securities, by type | ' | ' |
Available-for-sale Securities Fair Value | 7,696 | 4,842 |
Equity Securities [Member] | ' | ' |
Investments [Abstracts] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 2,752 | 1,097 |
Held-to-maturity securities, by type | ' | ' |
Available-for-sale Securities Fair Value | $4,201 | $1,453 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory balances | ' | ' |
Raw materials and packaging | $1,645 | $1,692 |
Finished goods | 1,267 | 1,240 |
Other | 365 | 345 |
Total inventories | $3,277 | $3,277 |
Hedging_Transactions_and_Deriv2
Hedging Transactions and Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 | Sep. 26, 2014 | Dec. 31, 2013 |
Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Commodity contracts | Commodity contracts | Interest Rate Contracts | Interest Rate Contracts | Interest Rate Contracts | Cross Currency Swap | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | ||
Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Net Investment Hedging [Member] | Net Investment Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | Cash Flow Hedging [Member] | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Interest Rate Contracts | Interest Rate Contracts | Interest Rate Contracts | Interest Rate Contracts | Interest Rate Contracts | Interest Rate Contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Commodity contracts | Interest Rate Contracts | Interest Rate Contracts | Other derivative instruments | Other derivative instruments | Other derivative instruments | Other derivative instruments | Other derivative instruments | Other derivative instruments | ||||||
Prepaid expenses and other assets | Prepaid expenses and other assets | Other Assets | Other Assets | Accounts payable and accrued expenses | Accounts payable and accrued expenses | Other Liabilities | Other Liabilities | Prepaid expenses and other assets | Prepaid expenses and other assets | Accounts payable and accrued expenses | Accounts payable and accrued expenses | Prepaid expenses and other assets | Prepaid expenses and other assets | Other Assets | Other Assets | Other Liabilities | Other Liabilities | Prepaid expenses and other assets | Prepaid expenses and other assets | Other Assets | Other Assets | Accounts payable and accrued expenses | Accounts payable and accrued expenses | Other Liabilities | Other Liabilities | Prepaid expenses and other assets | Prepaid expenses and other assets | Other Assets | Other Assets | Accounts payable and accrued expenses | Accounts payable and accrued expenses | Other Liabilities | Other Liabilities | Other Liabilities | Other Liabilities | Prepaid expenses and other assets | Prepaid expenses and other assets | Other Assets | Other Assets | Accounts payable and accrued expenses | Accounts payable and accrued expenses | ||||||||||||||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative instruments, assets, fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $855 | $604 | $496 | $211 | $181 | $109 | ' | ' | ' | ' | $0 | $1 | ' | ' | $24 | $0 | $154 | $283 | ' | ' | $308 | $235 | $64 | $21 | $174 | $171 | ' | ' | ' | ' | $36 | $33 | $2 | $1 | ' | ' | ' | ' | ' | ' | $30 | $9 | $2 | $0 | ' | ' |
Derivative instruments, liabilities, fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 138 | 125 | ' | ' | ' | ' | 23 | 84 | 109 | 40 | ' | ' | 1 | 1 | ' | ' | ' | ' | 5 | 0 | 129 | 50 | ' | ' | ' | ' | 35 | 24 | 44 | 0 | ' | ' | ' | ' | 42 | 23 | 4 | 0 | 2 | 3 | ' | ' | ' | ' | 2 | 0 |
Derivative Instrument Detail [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum length of time over which future cash flow exposures are hedged (in years) | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | $10,412 | $8,450 | $1,921 | $2,024 | $16 | $26 | $1,828 | $6,600 | $5,600 | $2,590 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hedging_Transactions_and_Deriv3
Hedging Transactions and Derivative Financial Instruments (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2013 |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Anticipated gains (losses) cash flows hedges, estimated reclassification to earnings during next twelve months | $208 | ' | ' | ' | ' |
Fixed-rate debt | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Increase (Decrease) in carrying value due to hedge adjustments | 22 | ' | 22 | ' | ' |
Cash Flow Hedges | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 424 | -70 | 201 | 337 | ' |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -27 | 60 | 37 | 133 | ' |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 1 | ' |
Cash Flow Hedges | Interest Rate Swap [Member] | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 1,828 | ' | 1,828 | ' | ' |
Cash Flow Hedges | Foreign currency contracts | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 10,412 | ' | 10,412 | ' | 8,450 |
Cash Flow Hedges | Foreign currency contracts | Net operating revenues | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 490 | -70 | 378 | 150 | ' |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 19 | 53 | 62 | 123 | ' |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 1 | ' |
Cash Flow Hedges | Foreign currency contracts | Cost of goods sold | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 36 | -4 | 15 | 31 | ' |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 5 | 11 | 25 | 21 | ' |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | ' |
Cash Flow Hedges | Foreign currency contracts | Other income (loss) - net | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -93 | ' | -93 | ' | ' |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -52 | ' | -52 | ' | ' |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | ' | 0 | ' | ' |
Cash Flow Hedges | Currency Swap [Member] | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 2,590 | ' | 2,590 | ' | ' |
Cash Flow Hedges | Interest rate contracts | Interest Expense [Member] | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -9 | 4 | -100 | 155 | ' |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | -3 | 0 | -9 | ' |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | ' |
Cash Flow Hedges | Commodity contracts | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 16 | ' | 16 | ' | 26 |
Cash Flow Hedges | Commodity contracts | Cost of goods sold | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | 0 | 1 | 1 | ' |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 1 | -1 | 2 | -2 | ' |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | ' |
Fair Value Hedges | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 2 | 3 | 2 | 19 | ' |
Fair Value Hedges | Other income (loss) - net | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -6 | -6 | -17 | -15 | ' |
Fair Value Hedges | Interest Expense [Member] | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 8 | 9 | 19 | 34 | ' |
Fair Value Hedges | Fixed-rate debt | Interest Expense [Member] | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 44 | 5 | 29 | 181 | ' |
Fair Value Hedges | Interest Rate Swap [Member] | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 6,600 | ' | 6,600 | ' | 5,600 |
Fair Value Hedges | Interest Rate Swap [Member] | Interest Expense [Member] | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -36 | 4 | -10 | -147 | ' |
Fair Value Hedges | Foreign currency contracts | Other income (loss) - net | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 12 | 39 | -7 | 32 | ' |
Fair Value Hedges | Available-for-sale Securities [Member] | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 985 | ' | 985 | ' | 996 |
Fair Value Hedges | Available-for-sale Securities [Member] | Other income (loss) - net | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -18 | -45 | -10 | -47 | ' |
Net Investment Hedges | Foreign currency contracts | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 1,921 | ' | 1,921 | ' | 2,024 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 134 | -22 | -8 | 8 | ' |
Derivatives Not Designated as Hedging Instruments | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -42 | 58 | 21 | 9 | ' |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 4,294 | ' | 4,294 | ' | 3,871 |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | Net operating revenues | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 6 | -2 | -12 | 2 | ' |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | Cost of goods sold | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 0 | 2 | 0 | 2 | ' |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | Other income (loss) - net | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -70 | 47 | -47 | 120 | ' |
Derivatives Not Designated as Hedging Instruments | Interest rate contracts | Interest Expense [Member] | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | ' | ' | 0 | -3 | ' |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative, Notional Amount | 1,164 | ' | 1,164 | ' | 1,441 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Net operating revenues | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -9 | 2 | -9 | 1 | ' |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Cost of goods sold | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 25 | -3 | 60 | -147 | ' |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Selling, general and administrative expenses | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -15 | 3 | -14 | 1 | ' |
Derivatives Not Designated as Hedging Instruments | Other derivative instruments | Other income (loss) - net | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 18 | 0 | 26 | 0 | ' |
Derivatives Not Designated as Hedging Instruments | Other derivative instruments | Selling, general and administrative expenses | ' | ' | ' | ' | ' |
Gains and (losses) related to derivative instruments | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $3 | $9 | $17 | $33 | ' |
Debt_and_Borrowing_Arrangement1
Debt and Borrowing Arrangements (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 26, 2014 |
Long-term debt | ' |
Issuance of long term debt | $3,537 |
Extinguishment of Debt, Amount | 1,000 |
Total Principal notes due Sept 1, 2015 [Member] | ' |
Long-term debt | ' |
Issuance of long term debt | 1,000 |
Debt Instrument, Basis Spread on Variable Rate | 0.01% |
euro notes due 2022 | ' |
Long-term debt | ' |
Issuance of long term debt | 1,015 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.13% |
euro notes due 2026 | ' |
Long-term debt | ' |
Issuance of long term debt | $1,522 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.88% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 26, 2014 | Sep. 26, 2014 | Dec. 31, 1981 | Sep. 26, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Guarantees of indebtedness owed by third parties | Pending Litigation [Member] | Pending Litigation [Member] | Risk Management Programs | Risk Management Programs |
Guarantees | ' | ' | ' | ' | ' |
Guarantees of indebtedness owed by third parties | $527 | ' | ' | ' | ' |
VIEs maximum exposures to loss | 173 | ' | ' | ' | ' |
Legal Contingencies | ' | ' | ' | ' | ' |
Insurance coverage insuring prior and future costs for certain product liability and other claims | ' | ' | 400 | ' | ' |
Number of pending active claims' lawsuit | ' | 40,000 | ' | ' | ' |
Approximate amount of out-of-pocket litigation-related expenses demanded as reimbursement by plaintiff | ' | 10 | ' | ' | ' |
Number of plaintiff insurance companies filing declaratory judgment action against Aqua-Chem, the Company, and defendant insurance companies | ' | 5 | ' | ' | ' |
Number of insurance companies included as defendants in declaratory judgment requested by plaintiff | ' | 16 | ' | ' | ' |
Wisconsin trial court final declaratory judgment of each individual insurer's joint and several liability percentage of plaintiff's losses up to policy limits (as a percent) | ' | 100.00% | ' | ' | ' |
Period for which defense and indemnity costs are in the same range (in years) | ' | 5 | ' | ' | ' |
Low end of the range (in years) the Company believes that there will likely be little or no defense or indemnity costs that will not be covered by insurance | ' | 10 | ' | ' | ' |
High end of the range (in years) the Company believes that there will likely be little or no defense or indemnity costs that will not be covered by insurance | ' | 15 | ' | ' | ' |
Risk Management Programs | ' | ' | ' | ' | ' |
Self-insurance reserves | ' | ' | ' | $543 | $537 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Comprehensive Income Disclosure | ' | ' | ' | ' |
Consolidated net income | $2,122 | $2,455 | $6,353 | $6,918 |
Other comprehensive income: | ' | ' | ' | ' |
Net foreign currency translation adjustment | -1,232 | -466 | -1,284 | -1,447 |
Net gain (loss) on derivatives | 278 | -82 | 98 | 122 |
Net unrealized gain (loss) on available-for-sale securities | 74 | -92 | 723 | -66 |
Net change in pension and other benefit liabilities | 24 | 27 | 48 | 105 |
TOTAL COMPREHENSIVE INCOME | 1,266 | 1,842 | 5,938 | 5,632 |
Foreign currency translation adjustments: | ' | ' | ' | ' |
Translation adjustment arising during the period | -1,166 | -639 | -1,286 | -1,318 |
Reclassification adjustments recognized in net income | 0 | 26 | 0 | -194 |
Net foreign currency translation adjustments | -1,166 | -613 | -1,286 | -1,512 |
Derivatives: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | 419 | -69 | 194 | 333 |
Reclassification adjustments recognized in net income | 27 | -60 | -37 | -133 |
Net gain (loss) on derivatives | 446 | -129 | 157 | 200 |
Available-for-sale securities: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | 177 | -152 | 1,145 | -108 |
Reclassification adjustments recognized in net income | -6 | 7 | -9 | 9 |
Net change in unrealized gain (loss) on available-for-sale securities | 171 | -145 | 1,136 | -99 |
Pension and other benefit liabilities: | ' | ' | ' | ' |
Net pension and other benefits arising during the period | 19 | -5 | 27 | 20 |
Reclassification adjustments recognized in net income | 14 | 49 | 43 | 147 |
Net change in pension and other benefit liabilities | 33 | 44 | 70 | 167 |
Other Comprehensive Income (Loss) attributable to The Coca-Cola Company | -516 | -843 | 77 | -1,244 |
Foreign currency translation adjustments: | ' | ' | ' | ' |
Translation adjustment arising during the period | -67 | 144 | 6 | 37 |
Reclassification adjustments recognized in net income | 0 | 0 | 0 | 0 |
Net foreign currency translation adjustments | -67 | 144 | 6 | 37 |
Derivatives: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | -157 | 25 | -73 | -128 |
Reclassification adjustments recognized in net income | -11 | 22 | 14 | 50 |
Net gain (loss) on derivatives | -168 | 47 | -59 | -78 |
Available-for-sales securities: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | -99 | 53 | -415 | 33 |
Reclassification adjustments recognized in net income | 2 | 0 | 2 | 0 |
Net change in unrealized gain (loss) on available-for-sale securities | -97 | 53 | -413 | 33 |
Pension and other benefit liabilities: | ' | ' | ' | ' |
Net pension and other benefits arising during the period | -4 | 0 | -6 | -9 |
Reclassification adjustments recognized in net income | -5 | -17 | -16 | -53 |
Net change in pension and other benefit liabilities | -9 | -17 | -22 | -62 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | -341 | 227 | -488 | -70 |
Foreign currency translation adjustments: | ' | ' | ' | ' |
Translation adjustment arising during the period | -1,233 | -495 | -1,280 | -1,281 |
Reclassification adjustments recognized in net income | 0 | 26 | 0 | -194 |
Net foreign currency translation adjustments | -1,233 | -469 | -1,280 | -1,475 |
Derivatives: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | 262 | -44 | 121 | 205 |
Reclassification adjustments recognized in net income | 16 | -38 | -23 | -83 |
Net gain (loss) on derivatives | 278 | -82 | 98 | 122 |
Available-for-sale securities: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | 78 | -99 | 730 | -75 |
Reclassification adjustments recognized in net income | -4 | 7 | -7 | 9 |
Net change in unrealized gain (loss) on available-for-sale securities | 74 | -92 | 723 | -66 |
Pension and other benefit liabilities: | ' | ' | ' | ' |
Net pension and other benefits arising during the period | 15 | -5 | 21 | 11 |
Reclassification adjustments recognized in net income | 9 | 32 | 27 | 94 |
Net change in pension and other benefit liabilities | 24 | 27 | 48 | 105 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | -857 | -616 | -411 | -1,314 |
Amortization of prior period service cost (credit) | -4 | ' | -13 | ' |
Foreign currency contracts | Net operating revenues | ' | ' | ' | ' |
Derivatives: | ' | ' | ' | ' |
Reclassification adjustments recognized in net income | -19 | ' | -62 | ' |
Foreign currency and commodity contracts [Member] | Cost of goods sold | ' | ' | ' | ' |
Derivatives: | ' | ' | ' | ' |
Reclassification adjustments recognized in net income | -6 | ' | -27 | ' |
Other Income [Member] | Foreign currency contracts | ' | ' | ' | ' |
Derivatives: | ' | ' | ' | ' |
Reclassification adjustments recognized in net income | 52 | ' | 52 | ' |
Sale of securities | Other Income [Member] | ' | ' | ' | ' |
Available-for-sale securities: | ' | ' | ' | ' |
Reclassification adjustments recognized in net income | -6 | ' | -9 | ' |
Amortization of net actuarial loss | ' | ' | ' | ' |
Pension and other benefit liabilities: | ' | ' | ' | ' |
Reclassification adjustments recognized in net income | 18 | ' | 56 | ' |
Shareowners of The Coca-Cola Company | ' | ' | ' | ' |
Comprehensive Income Disclosure | ' | ' | ' | ' |
Consolidated net income | ' | ' | 6,328 | ' |
Other comprehensive income: | ' | ' | ' | ' |
Net foreign currency translation adjustment | ' | ' | -1,280 | ' |
Net gain (loss) on derivatives | ' | ' | 98 | ' |
Net unrealized gain (loss) on available-for-sale securities | ' | ' | 723 | ' |
Net change in pension and other benefit liabilities | ' | ' | 48 | ' |
TOTAL COMPREHENSIVE INCOME | ' | ' | 5,917 | ' |
Noncontrolling Interests | ' | ' | ' | ' |
Comprehensive Income Disclosure | ' | ' | ' | ' |
Consolidated net income | ' | ' | 25 | ' |
Other comprehensive income: | ' | ' | ' | ' |
Net foreign currency translation adjustment | ' | ' | -4 | ' |
Net gain (loss) on derivatives | ' | ' | 0 | ' |
Net unrealized gain (loss) on available-for-sale securities | ' | ' | 0 | ' |
Net change in pension and other benefit liabilities | ' | ' | 0 | ' |
TOTAL COMPREHENSIVE INCOME | ' | ' | 21 | ' |
Total [Member] | ' | ' | ' | ' |
Comprehensive Income Disclosure | ' | ' | ' | ' |
Consolidated net income | ' | ' | 6,353 | ' |
Other comprehensive income: | ' | ' | ' | ' |
Net foreign currency translation adjustment | ' | ' | -1,284 | ' |
Net gain (loss) on derivatives | ' | ' | 98 | ' |
Net unrealized gain (loss) on available-for-sale securities | ' | ' | 723 | ' |
Net change in pension and other benefit liabilities | ' | ' | 48 | ' |
TOTAL COMPREHENSIVE INCOME | ' | ' | $5,938 | ' |
Changes_in_Equity_Details
Changes in Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Changes in Equity | ' | ' | ' | ' |
31-Dec-13 | ' | ' | $33,440 | ' |
Comprehensive income (loss) | 1,266 | 1,842 | 5,938 | 5,632 |
Dividends paid / payable to shareowners of The Coca-Cola Company | ' | ' | -4,016 | ' |
Dividends paid to noncontrolling interests | ' | ' | -21 | ' |
Business combinations including purchase accounting adjustments | ' | ' | -27 | ' |
Purchases of treasury stock | ' | ' | -2,887 | ' |
Impact of employee stock option and restricted stock plans | ' | ' | 1,242 | ' |
26-Sep-14 | 33,669 | ' | 33,669 | ' |
Reinvested Earnings | ' | ' | ' | ' |
Changes in Equity | ' | ' | ' | ' |
31-Dec-13 | ' | ' | 61,660 | ' |
Comprehensive income (loss) | ' | ' | 6,328 | ' |
Dividends paid / payable to shareowners of The Coca-Cola Company | ' | ' | -4,016 | ' |
Dividends paid to noncontrolling interests | ' | ' | 0 | ' |
Business combinations including purchase accounting adjustments | ' | ' | 0 | ' |
Purchases of treasury stock | ' | ' | 0 | ' |
Impact of employee stock option and restricted stock plans | ' | ' | 0 | ' |
26-Sep-14 | 63,972 | ' | 63,972 | ' |
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | ' |
Changes in Equity | ' | ' | ' | ' |
31-Dec-13 | ' | ' | -3,432 | ' |
Comprehensive income (loss) | ' | ' | -411 | ' |
Dividends paid / payable to shareowners of The Coca-Cola Company | ' | ' | 0 | ' |
Dividends paid to noncontrolling interests | ' | ' | 0 | ' |
Business combinations including purchase accounting adjustments | ' | ' | 0 | ' |
Purchases of treasury stock | ' | ' | 0 | ' |
Impact of employee stock option and restricted stock plans | ' | ' | 0 | ' |
26-Sep-14 | -3,843 | ' | -3,843 | ' |
Common Stock [Member] | ' | ' | ' | ' |
Changes in Equity | ' | ' | ' | ' |
31-Dec-13 | ' | ' | 1,760 | ' |
Comprehensive income (loss) | ' | ' | 0 | ' |
Dividends paid / payable to shareowners of The Coca-Cola Company | ' | ' | 0 | ' |
Dividends paid to noncontrolling interests | ' | ' | 0 | ' |
Business combinations including purchase accounting adjustments | ' | ' | 0 | ' |
Purchases of treasury stock | ' | ' | 0 | ' |
Impact of employee stock option and restricted stock plans | ' | ' | 0 | ' |
26-Sep-14 | 1,760 | ' | 1,760 | ' |
Capital Surplus | ' | ' | ' | ' |
Changes in Equity | ' | ' | ' | ' |
31-Dec-13 | ' | ' | 12,276 | ' |
Comprehensive income (loss) | ' | ' | 0 | ' |
Dividends paid / payable to shareowners of The Coca-Cola Company | ' | ' | 0 | ' |
Dividends paid to noncontrolling interests | ' | ' | 0 | ' |
Business combinations including purchase accounting adjustments | ' | ' | 0 | ' |
Purchases of treasury stock | ' | ' | 0 | ' |
Impact of employee stock option and restricted stock plans | ' | ' | 625 | ' |
26-Sep-14 | 12,901 | ' | 12,901 | ' |
Treasury Stock | ' | ' | ' | ' |
Changes in Equity | ' | ' | ' | ' |
31-Dec-13 | ' | ' | -39,091 | ' |
Comprehensive income (loss) | ' | ' | 0 | ' |
Dividends paid / payable to shareowners of The Coca-Cola Company | ' | ' | 0 | ' |
Dividends paid to noncontrolling interests | ' | ' | 0 | ' |
Business combinations including purchase accounting adjustments | ' | ' | 0 | ' |
Purchases of treasury stock | ' | ' | -2,887 | ' |
Impact of employee stock option and restricted stock plans | ' | ' | 617 | ' |
26-Sep-14 | -41,361 | ' | -41,361 | ' |
Noncontrolling Interests | ' | ' | ' | ' |
Changes in Equity | ' | ' | ' | ' |
31-Dec-13 | ' | ' | 267 | ' |
Comprehensive income (loss) | ' | ' | 21 | ' |
Dividends paid / payable to shareowners of The Coca-Cola Company | ' | ' | 0 | ' |
Dividends paid to noncontrolling interests | ' | ' | -21 | ' |
Business combinations including purchase accounting adjustments | ' | ' | -27 | ' |
Purchases of treasury stock | ' | ' | 0 | ' |
Impact of employee stock option and restricted stock plans | ' | ' | 0 | ' |
26-Sep-14 | $240 | ' | $240 | ' |
Significant_Operating_and_Nono1
Significant Operating and Nonoperating Items (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Other Operating Charges | ' | ' | ' | ' | ' |
Other operating charges | $128 | $341 | ' | $457 | $594 |
Intangible assets impairment charges | 0 | 190 | ' | 0 | 190 |
Impairment of trademarks | ' | 108 | ' | ' | 108 |
Goodwill, Impairment Loss | ' | 82 | ' | ' | 82 |
Charge related to restructuring and transition of the Company's Russian juice operations | 5 | ' | ' | 30 | ' |
Equity Income (Loss) - Net | ' | ' | ' | ' | ' |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 8 | -8 | ' | 41 | 34 |
Other Income (Loss) - Net | ' | ' | ' | ' | ' |
Deconsolidation, Gain (Loss), Amount | ' | 615 | ' | ' | 615 |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 0 | 0 | ' | 0 | 139 |
Equity Method Investment, Other than Temporary Impairment | ' | ' | 144 | 0 | 114 |
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | 0 | 30 | ' | ' | ' |
North America [Member] | ' | ' | ' | ' | ' |
Other Operating Charges | ' | ' | ' | ' | ' |
Productivity, integration and restructuring initiatives | 59 | 53 | ' | 192 | 190 |
Other Income (Loss) - Net | ' | ' | ' | ' | ' |
Charge due to refranchising of territories | 270 | ' | ' | 410 | ' |
Corporate | ' | ' | ' | ' | ' |
Other Operating Charges | ' | ' | ' | ' | ' |
Productivity, integration and restructuring initiatives | 20 | 41 | ' | 54 | 97 |
Intangible assets impairment charges | ' | 190 | ' | ' | 190 |
Other Income (Loss) - Net | ' | ' | ' | ' | ' |
Deconsolidation, Gain (Loss), Amount | ' | 615 | ' | ' | 615 |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | ' | ' | ' | ' | 139 |
Equity Method Investment, Other than Temporary Impairment | ' | ' | ' | ' | 114 |
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | ' | 30 | ' | ' | ' |
Productivity and Reinvestment [Member] | ' | ' | ' | ' | ' |
Other Operating Charges | ' | ' | ' | ' | ' |
Productivity, integration and restructuring initiatives | 84 | 97 | ' | 259 | 312 |
Integration of German Bottling and Distribution Operation [Member] | ' | ' | ' | ' | ' |
Other Operating Charges | ' | ' | ' | ' | ' |
Productivity, integration and restructuring initiatives | 34 | 45 | ' | 142 | 86 |
Venezuelan subsidiary | ' | ' | ' | ' | ' |
Other Income (Loss) - Net | ' | ' | ' | ' | ' |
Remeasurement Charges on Subsidiary Assets | ' | ' | ' | 226 | ' |
Venezuelan subsidiary | Corporate | ' | ' | ' | ' | ' |
Other Operating Charges | ' | ' | ' | ' | ' |
Accounts Receivable Write-Down | ' | ' | ' | 21 | ' |
Other Income (Loss) - Net | ' | ' | ' | ' | ' |
Remeasurement Charges on Subsidiary Assets | ' | ' | ' | 226 | 140 |
Other Operating Charges | ' | ' | ' | ' | ' |
Other Operating Charges | ' | ' | ' | ' | ' |
Charge related to restructuring and transition of the Company's Russian juice operations | $2 | ' | ' | $27 | ' |
Productivity_Integration_and_R2
Productivity, Integration and Restructuring Initiatives (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2008 | |
Productivity and Reinvestment [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Savings from Productivity and Reinvestments initiatives | $1,000,000,000 | ' | ' | ' | ' |
Productivity, Integration and Restructuring Initiatives Disclosures | ' | ' | ' | ' | ' |
Accrued Balance, Beginning Balance | 61,000,000 | ' | 112,000,000 | ' | ' |
Cost incurred | 84,000,000 | 97,000,000 | 259,000,000 | 312,000,000 | ' |
Payments | -89,000,000 | ' | -294,000,000 | ' | ' |
Noncash and exchange | -3,000,000 | ' | -24,000,000 | ' | ' |
Accrued Balance, Ending Balance | 53,000,000 | ' | 53,000,000 | ' | ' |
Restructuring and related costs incurred to date | 1,023,000,000 | ' | 1,023,000,000 | ' | ' |
Integration of German Bottling and Distribution Operation [Member] | ' | ' | ' | ' | ' |
Productivity, Integration and Restructuring Initiatives Disclosures | ' | ' | ' | ' | ' |
Accrued Balance, Beginning Balance | ' | ' | 127,000,000 | ' | ' |
Cost incurred | 34,000,000 | 45,000,000 | 142,000,000 | 86,000,000 | ' |
Accrued Balance, Ending Balance | 124,000,000 | ' | 124,000,000 | ' | ' |
Restructuring and related costs incurred to date | 769,000,000 | ' | 769,000,000 | ' | ' |
Number of German bottling and distribution operations for which integration initiatives began in 2008 | ' | ' | ' | ' | 18 |
Severance pay and benefits | Productivity and Reinvestment [Member] | ' | ' | ' | ' | ' |
Productivity, Integration and Restructuring Initiatives Disclosures | ' | ' | ' | ' | ' |
Accrued Balance, Beginning Balance | 43,000,000 | ' | 88,000,000 | ' | ' |
Cost incurred | 12,000,000 | ' | 26,000,000 | ' | ' |
Payments | -18,000,000 | ' | -77,000,000 | ' | ' |
Noncash and exchange | -1,000,000 | ' | -1,000,000 | ' | ' |
Accrued Balance, Ending Balance | 36,000,000 | ' | 36,000,000 | ' | ' |
Outside Services [Member] | Productivity and Reinvestment [Member] | ' | ' | ' | ' | ' |
Productivity, Integration and Restructuring Initiatives Disclosures | ' | ' | ' | ' | ' |
Accrued Balance, Beginning Balance | 4,000,000 | ' | 6,000,000 | ' | ' |
Cost incurred | 21,000,000 | ' | 52,000,000 | ' | ' |
Payments | -22,000,000 | ' | -55,000,000 | ' | ' |
Noncash and exchange | 0 | ' | 0 | ' | ' |
Accrued Balance, Ending Balance | 3,000,000 | ' | 3,000,000 | ' | ' |
Other direct costs [Member] | Productivity and Reinvestment [Member] | ' | ' | ' | ' | ' |
Productivity, Integration and Restructuring Initiatives Disclosures | ' | ' | ' | ' | ' |
Accrued Balance, Beginning Balance | 14,000,000 | ' | 18,000,000 | ' | ' |
Cost incurred | 51,000,000 | ' | 181,000,000 | ' | ' |
Payments | -49,000,000 | ' | -162,000,000 | ' | ' |
Noncash and exchange | -2,000,000 | ' | -23,000,000 | ' | ' |
Accrued Balance, Ending Balance | $14,000,000 | ' | $14,000,000 | ' | ' |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefit Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Net periodic pension and other Postretirement benefit cost | ' | ' | ' | ' |
Contributions to pension plan | ' | ' | $168 | $574 |
Pension plans, anticipated additional contributions for remainder of current fiscal year | 48 | ' | ' | ' |
Pension Benefits | ' | ' | ' | ' |
Net periodic pension and other Postretirement benefit cost | ' | ' | ' | ' |
Service cost | 62 | 69 | 196 | 207 |
Interest cost | 101 | 93 | 304 | 282 |
Expected return on plan assets | -179 | -163 | -537 | -492 |
Amortization of prior service cost (credit) | 0 | -1 | -1 | -2 |
Amortization of net actuarial loss | 18 | 50 | 54 | 149 |
Net periodic benefit cost (credit) | 2 | 48 | 16 | 144 |
Settlement charge | 0 | 0 | 2 | 0 |
Total cost (credit) recognized in statements of income | 2 | 48 | 18 | 144 |
Other Benefits | ' | ' | ' | ' |
Net periodic pension and other Postretirement benefit cost | ' | ' | ' | ' |
Service cost | 7 | 9 | 20 | 27 |
Interest cost | 11 | 10 | 32 | 31 |
Expected return on plan assets | -3 | -2 | -9 | -7 |
Amortization of prior service cost (credit) | -4 | -3 | -12 | -8 |
Amortization of net actuarial loss | 0 | 3 | 2 | 9 |
Net periodic benefit cost (credit) | 11 | 17 | 33 | 52 |
Settlement charge | 0 | 0 | 0 | 0 |
Total cost (credit) recognized in statements of income | $11 | $17 | $33 | $52 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Income taxes | ' | ' | ' | ' | ' |
U.S. statutory rate (as a percent) | 35.00% | ' | ' | ' | ' |
Effective tax rate estimated for 2014 (as a percent) | 22.50% | ' | ' | 22.50% | ' |
Income tax expense | $538 | $925 | ' | $1,896 | $2,331 |
Effective tax rate (as a percent) | 20.20% | 27.40% | ' | 23.00% | 25.20% |
Tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented | ' | ' | ' | ' | ' |
Asset impairments | 0 | 0 | ' | 0 | 0 |
Productivity and reinvestment program | -30 | -37 | ' | -96 | -115 |
Other productivity, integration and restructuring initiatives | 0 | 1 | ' | 0 | 2 |
Transaction gains and losses | -96 | 255 | ' | -147 | 303 |
Certain tax matters | -29 | -20 | ' | 2 | -20 |
Other - net | -2 | 4 | ' | 6 | 0 |
Unusual and/or infrequent items [Abstract] | ' | ' | ' | ' | ' |
Deconsolidation, Gain (Loss), Amount | ' | 615 | ' | ' | 615 |
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | 0 | 30 | ' | ' | ' |
Charge for Deferred Revenue and Gross Profit | ' | 60 | ' | ' | 60 |
Charge related to restructuring and transition of the Company's Russian juice operations | 5 | ' | ' | 30 | ' |
Other infrequent or unusual charges/(gains) net | 277 | -585 | ' | 417 | -574 |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 8 | -8 | ' | 41 | 34 |
Equity Method Investment, Other than Temporary Impairment | ' | ' | 144 | 0 | 114 |
Fixed Assets Impairment Charges | ' | 11 | ' | ' | 11 |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 0 | 0 | ' | 0 | 139 |
Unusual or Infrequent Event Charges | 14 | 3 | ' | 319 | 205 |
Gains (Losses) on Extinguishment of Debt | ' | ' | ' | ' | -23 |
Intangible assets impairment charges | 0 | 190 | ' | 0 | 190 |
Productivity and Reinvestment [Member] | ' | ' | ' | ' | ' |
Unusual and/or infrequent items [Abstract] | ' | ' | ' | ' | ' |
Productivity, integration and restructuring initiatives | 84 | 97 | ' | 259 | 312 |
Restructuring Charges except for Productivity and Reinvestment Program [Member] | ' | ' | ' | ' | ' |
Unusual and/or infrequent items [Abstract] | ' | ' | ' | ' | ' |
Productivity, integration and restructuring initiatives | ' | 43 | ' | ' | 82 |
Integration of German Bottling and Distribution Operation [Member] | ' | ' | ' | ' | ' |
Unusual and/or infrequent items [Abstract] | ' | ' | ' | ' | ' |
Productivity, integration and restructuring initiatives | 34 | 45 | ' | 142 | 86 |
North America [Member] | ' | ' | ' | ' | ' |
Unusual and/or infrequent items [Abstract] | ' | ' | ' | ' | ' |
Productivity, integration and restructuring initiatives | 59 | 53 | ' | 192 | 190 |
Charge due to refranchising of territories | 270 | ' | ' | 410 | ' |
Bottling investments [Member] | ' | ' | ' | ' | ' |
Unusual and/or infrequent items [Abstract] | ' | ' | ' | ' | ' |
Productivity, integration and restructuring initiatives | 34 | 45 | ' | 142 | 86 |
Charge related to restructuring and transition of the Company's Russian juice operations | 7 | ' | ' | 32 | ' |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 8 | -8 | ' | 20 | 25 |
Corporate | ' | ' | ' | ' | ' |
Unusual and/or infrequent items [Abstract] | ' | ' | ' | ' | ' |
Productivity, integration and restructuring initiatives | 20 | 41 | ' | 54 | 97 |
Deconsolidation, Gain (Loss), Amount | ' | 615 | ' | ' | 615 |
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | ' | 30 | ' | ' | ' |
Equity Method Investment, Other than Temporary Impairment | ' | ' | ' | ' | 114 |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | ' | ' | ' | ' | 139 |
Gains (Losses) on Extinguishment of Debt | ' | ' | ' | ' | -23 |
Intangible assets impairment charges | ' | 190 | ' | ' | 190 |
Venezuelan subsidiary | ' | ' | ' | ' | ' |
Unusual and/or infrequent items [Abstract] | ' | ' | ' | ' | ' |
Devaluation of Venezuela Bolivar, write-down of receivables and charges from equity investees | ' | ' | ' | 268 | 149 |
Venezuelan subsidiary | Bottling investments [Member] | ' | ' | ' | ' | ' |
Unusual and/or infrequent items [Abstract] | ' | ' | ' | ' | ' |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | ' | ' | ' | 21 | 9 |
Venezuelan subsidiary | Corporate | ' | ' | ' | ' | ' |
Unusual and/or infrequent items [Abstract] | ' | ' | ' | ' | ' |
Devaluation of Venezuela Bolivar, write-down of receivables and charges from equity investees | ' | ' | ' | $247 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets and liabilities measured at fair value on a recurring basis | ' | ' |
Available-for-sale securities | $7,696 | $4,842 |
Level 1 | ' | ' |
Assets and liabilities measured at fair value on a recurring basis | ' | ' |
Trading Securities | 217 | 206 |
Available-for-sale securities | 4,196 | 1,453 |
Derivatives, assets | 22 | 17 |
Total assets | 4,435 | 1,676 |
Derivatives, liabilities | 2 | 10 |
Total liabilities | 2 | 10 |
Level 2 | ' | ' |
Assets and liabilities measured at fair value on a recurring basis | ' | ' |
Trading Securities | 174 | 163 |
Available-for-sale securities | 3,373 | 3,281 |
Derivatives, assets | 1,141 | 822 |
Total assets | 4,688 | 4,266 |
Derivatives, liabilities | 265 | 165 |
Total liabilities | 265 | 165 |
Level 3 | ' | ' |
Assets and liabilities measured at fair value on a recurring basis | ' | ' |
Trading Securities | 4 | 3 |
Available-for-sale securities | 127 | 108 |
Derivatives, assets | 0 | 0 |
Total assets | 131 | 111 |
Derivatives, liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Netting Adjustment | ' | ' |
Assets and liabilities measured at fair value on a recurring basis | ' | ' |
Trading Securities | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Derivatives, assets | -207 | -150 |
Total assets | -207 | -150 |
Derivatives, liabilities | -207 | -151 |
Total liabilities | -207 | -151 |
Fair Value Measurements | ' | ' |
Assets and liabilities measured at fair value on a recurring basis | ' | ' |
Trading Securities | 395 | 372 |
Available-for-sale securities | 7,696 | 4,842 |
Derivatives, assets | 956 | 689 |
Total assets | 9,047 | 5,903 |
Derivatives, liabilities | 60 | 24 |
Total liabilities | 60 | 24 |
Prepaid expenses and other assets | Fair Value Measurements | ' | ' |
Assets and liabilities measured at fair value on a recurring basis | ' | ' |
Derivatives, assets | 443 | 129 |
Other Assets | Fair Value Measurements | ' | ' |
Assets and liabilities measured at fair value on a recurring basis | ' | ' |
Derivatives, assets | 513 | 560 |
Accounts payable and accrued expenses | Fair Value Measurements | ' | ' |
Assets and liabilities measured at fair value on a recurring basis | ' | ' |
Derivatives, liabilities | 3 | 12 |
Other Liabilities | Fair Value Measurements | ' | ' |
Assets and liabilities measured at fair value on a recurring basis | ' | ' |
Derivatives, liabilities | $57 | $12 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 26, 2014 | Sep. 27, 2013 |
Nonrecurring fair value measurements | ' | ' | ' | ' | ' |
Assets held for sale | ($236) | $0 | ' | ($236) | $0 |
Intangible assets | 0 | -190 | ' | 0 | -190 |
Valuation of shares in equity method investee | 0 | 0 | ' | 0 | 139 |
Exchange of investment in equity securities | 0 | 30 | ' | ' | ' |
Exchange of investment in equity securities | ' | ' | -144 | 0 | -114 |
Total | ($236) | ($160) | ' | ($236) | ($165) |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | Sep. 26, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other fair value disclosures | ' | ' |
Long-term debt, including the current portion, carrying amount | $22,635 | $20,178 |
Long-term debt, including the current portion, fair value | $23,190 | $20,352 |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 26, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Sep. 26, 2014 | Sep. 27, 2013 | Dec. 31, 2013 |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Third party | $11,976 | $12,030 | ' | $35,126 | $35,814 | ' |
Intersegment | 0 | 0 | ' | 0 | 0 | ' |
Total net revenues | 11,976 | 12,030 | ' | 35,126 | 35,814 | ' |
Operating Income (Loss) | 2,711 | 2,472 | ' | 8,257 | 8,123 | ' |
Income (loss) before income taxes | 2,660 | 3,380 | ' | 8,249 | 9,249 | ' |
Identifiable operating assets | 81,995 | 77,897 | ' | 81,995 | 77,897 | 78,543 |
Noncurrent investments | 14,319 | 11,535 | ' | 14,319 | 11,535 | 11,512 |
Charge related to restructuring and transition of the Company's Russian juice operations | 5 | ' | ' | 30 | ' | ' |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | -8 | 8 | ' | -41 | -34 | ' |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 0 | 0 | ' | 0 | 139 | ' |
Gains (Losses) on Extinguishment of Debt | ' | ' | ' | ' | -23 | ' |
Intangible assets impairment charges | 0 | 190 | ' | 0 | 190 | ' |
Deconsolidation, Gain (Loss), Amount | ' | 615 | ' | ' | 615 | ' |
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | 0 | 30 | ' | ' | ' | ' |
Equity Method Investment, Other than Temporary Impairment | ' | ' | 144 | 0 | 114 | ' |
Venezuelan subsidiary | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Remeasurement Charges on Subsidiary Assets | ' | ' | ' | 226 | ' | ' |
Devaluation of Venezuela Bolivar, write-down of receivables and charges from equity investees | ' | ' | ' | 268 | 149 | ' |
Eurasia and Africa [Member] | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Third party | 709 | 669 | ' | 2,099 | 2,103 | ' |
Intersegment | 0 | 0 | ' | 0 | 0 | ' |
Total net revenues | 709 | 669 | ' | 2,099 | 2,103 | ' |
Operating Income (Loss) | 265 | 231 | ' | 858 | 845 | ' |
Income (loss) before income taxes | 272 | 228 | ' | 893 | 868 | ' |
Identifiable operating assets | 1,421 | 1,340 | ' | 1,421 | 1,340 | 1,273 |
Noncurrent investments | 1,162 | 1,160 | ' | 1,162 | 1,160 | 1,157 |
Productivity, integration and restructuring initiatives | 1 | ' | ' | 1 | 2 | ' |
Europe | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Third party | 1,242 | 1,232 | ' | 3,761 | 3,545 | ' |
Intersegment | 187 | 188 | ' | 530 | 520 | ' |
Total net revenues | 1,429 | 1,420 | ' | 4,291 | 4,065 | ' |
Operating Income (Loss) | 752 | 742 | ' | 2,363 | 2,261 | ' |
Income (loss) before income taxes | 763 | 755 | ' | 2,398 | 2,318 | ' |
Identifiable operating assets | 3,610 | 3,567 | ' | 3,610 | 3,567 | 3,713 |
Noncurrent investments | 98 | 104 | ' | 98 | 104 | 106 |
Productivity, integration and restructuring initiatives | 2 | 1 | ' | 2 | 7 | ' |
Latin America | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Third party | 1,161 | 1,208 | ' | 3,360 | 3,504 | ' |
Intersegment | 16 | 22 | ' | 46 | 169 | ' |
Total net revenues | 1,177 | 1,230 | ' | 3,406 | 3,673 | ' |
Operating Income (Loss) | 653 | 720 | ' | 1,954 | 2,209 | ' |
Income (loss) before income taxes | 654 | 719 | ' | 1,957 | 2,213 | ' |
Identifiable operating assets | 2,777 | 2,672 | ' | 2,777 | 2,672 | 2,918 |
Noncurrent investments | 790 | 525 | ' | 790 | 525 | 545 |
North America [Member] | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Third party | 5,596 | 5,715 | ' | 16,096 | 16,306 | ' |
Intersegment | 3 | 4 | ' | 13 | 13 | ' |
Total net revenues | 5,599 | 5,719 | ' | 16,109 | 16,319 | ' |
Operating Income (Loss) | 760 | 803 | ' | 2,015 | 1,875 | ' |
Income (loss) before income taxes | 486 | 805 | ' | 1,593 | 1,879 | ' |
Identifiable operating assets | 33,750 | 34,278 | ' | 33,750 | 34,278 | 33,964 |
Noncurrent investments | 43 | 44 | ' | 43 | 44 | 49 |
Productivity, integration and restructuring initiatives | 59 | 53 | ' | 192 | 190 | ' |
Charge due to refranchising of territories | 270 | ' | ' | 410 | ' | ' |
Asia Pacific | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Third party | 1,421 | 1,368 | ' | 4,181 | 4,185 | ' |
Intersegment | 154 | 128 | ' | 432 | 431 | ' |
Total net revenues | 1,575 | 1,496 | ' | 4,613 | 4,616 | ' |
Operating Income (Loss) | 638 | 575 | ' | 2,041 | 2,024 | ' |
Income (loss) before income taxes | 648 | 585 | ' | 2,059 | 2,042 | ' |
Identifiable operating assets | 1,934 | 1,848 | ' | 1,934 | 1,848 | 1,922 |
Noncurrent investments | 158 | 140 | ' | 158 | 140 | 143 |
Productivity, integration and restructuring initiatives | 2 | 2 | ' | 10 | 16 | ' |
Bottling investments [Member] | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Third party | 1,804 | 1,811 | ' | 5,503 | 6,047 | ' |
Intersegment | 19 | 21 | ' | 53 | 61 | ' |
Total net revenues | 1,823 | 1,832 | ' | 5,556 | 6,108 | ' |
Operating Income (Loss) | 14 | 22 | ' | 26 | 186 | ' |
Income (loss) before income taxes | 205 | 214 | ' | 481 | 677 | ' |
Identifiable operating assets | 6,887 | 6,836 | ' | 6,887 | 6,836 | 7,011 |
Noncurrent investments | 9,381 | 9,486 | ' | 9,381 | 9,486 | 9,424 |
Productivity, integration and restructuring initiatives | 34 | 45 | ' | 142 | 86 | ' |
Charge related to restructuring and transition of the Company's Russian juice operations | 7 | ' | ' | 32 | ' | ' |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | -8 | 8 | ' | -20 | -25 | ' |
Bottling investments [Member] | Venezuelan subsidiary | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | ' | ' | ' | -21 | -9 | ' |
Corporate | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Third party | 43 | 27 | ' | 126 | 124 | ' |
Intersegment | 0 | 0 | ' | 0 | 0 | ' |
Total net revenues | 43 | 27 | ' | 126 | 124 | ' |
Operating Income (Loss) | -371 | -621 | ' | -1,000 | -1,277 | ' |
Income (loss) before income taxes | -368 | 74 | ' | -1,132 | -748 | ' |
Identifiable operating assets | 31,616 | 27,356 | ' | 31,616 | 27,356 | 27,742 |
Noncurrent investments | 2,687 | 76 | ' | 2,687 | 76 | 88 |
Productivity, integration and restructuring initiatives | 20 | 41 | ' | 54 | 97 | ' |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | ' | ' | ' | ' | 139 | ' |
Gains (Losses) on Extinguishment of Debt | ' | ' | ' | ' | -23 | ' |
Intangible assets impairment charges | ' | 190 | ' | ' | 190 | ' |
Deconsolidation, Gain (Loss), Amount | ' | 615 | ' | ' | 615 | ' |
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | ' | 30 | ' | ' | ' | ' |
Equity Method Investment, Other than Temporary Impairment | ' | ' | ' | ' | 114 | ' |
Corporate | Venezuelan subsidiary | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Remeasurement Charges on Subsidiary Assets | ' | ' | ' | 226 | 140 | ' |
Devaluation of Venezuela Bolivar, write-down of receivables and charges from equity investees | ' | ' | ' | 247 | ' | ' |
Intersegment Eliminations [Member] | ' | ' | ' | ' | ' | ' |
Net operating revenues: | ' | ' | ' | ' | ' | ' |
Third party | 0 | 0 | ' | 0 | 0 | ' |
Intersegment | -379 | -363 | ' | -1,074 | -1,194 | ' |
Total net revenues | -379 | -363 | ' | -1,074 | -1,194 | ' |
Operating Income (Loss) | 0 | 0 | ' | 0 | 0 | ' |
Income (loss) before income taxes | 0 | 0 | ' | 0 | 0 | ' |
Identifiable operating assets | 0 | 0 | ' | 0 | 0 | 0 |
Noncurrent investments | $0 | $0 | ' | $0 | $0 | $0 |
Subsequent_Event_Subsequent_Ev
Subsequent Event Subsequent Event (Details) (USD $) | 3 Months Ended |
In Billions, unless otherwise specified | Dec. 31, 2014 |
Annualized Incremental Savings [Member] | ' |
Subsequent Event [Line Items] | ' |
Savings from Productivity and Reinvestments initiatives | $2 |
Total expected savings [Member] | ' |
Subsequent Event [Line Items] | ' |
Savings from Productivity and Reinvestments initiatives | $3 |