Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Apr. 03, 2015 | Apr. 27, 2015 | |
Entity Registrant Name | COCA COLA CO | |
Entity Central Index Key | 21344 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 3-Apr-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 4,358,700,821 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | ||
NET OPERATING REVENUES | $10,711 | $10,576 | ||
Cost of goods sold | 4,103 | 4,083 | ||
GROSS PROFIT | 6,608 | 6,493 | ||
Selling, general and administrative expenses | 4,079 | 3,989 | ||
Other operating charges | 233 | 128 | ||
OPERATING INCOME | 2,296 | 2,376 | ||
Interest income | 155 | 123 | ||
Interest expense | 447 | 124 | ||
Equity income (loss) - net | 2 | 71 | ||
Other income (loss) - net | -25 | -241 | ||
INCOME BEFORE INCOME TAXES | 1,981 | 2,205 | ||
Income taxes | 415 | 579 | ||
CONSOLIDATED NET INCOME | 1,566 | 1,626 | ||
Less: Net income attributable to noncontrolling interests | 9 | 7 | ||
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $1,557 | $1,619 | ||
BASIC NET INCOME PER SHARE (in dollars per share) | $0.36 | [1] | $0.37 | [1] |
DILUTED NET INCOME PER SHARE (in dollars per share) | $0.35 | [1] | $0.36 | [1] |
DIVIDENDS PER SHARE (in dollars per share) | $0.33 | $0.31 | ||
AVERAGE SHARES OUTSTANDING (in shares) | 4,365 | 4,401 | ||
Effect of dilutive securities (in shares) | 57 | 63 | ||
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares) | 4,422 | 4,464 | ||
[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 | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
CONSOLIDATED NET INCOME | $1,566 | $1,626 |
Other comprehensive income: | ||
Net foreign currency translation adjustment | -1,486 | -389 |
Net gain (loss) on derivatives | 334 | -99 |
Net unrealized gain (loss) on available-for-sale securities | -211 | 315 |
Net change in pension and other benefit liabilities | 65 | 7 |
TOTAL COMPREHENSIVE INCOME | 268 | 1,460 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 3 | 3 |
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $265 | $1,457 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $8,211 | $8,958 |
Short-term investments | 8,366 | 9,052 |
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 16,577 | 18,010 |
Marketable securities | 3,472 | 3,665 |
Trade accounts receivable, less allowances of $362 and $331, respectively | 4,461 | 4,466 |
Inventories | 3,219 | 3,100 |
Prepaid expenses and other assets | 3,605 | 3,066 |
Assets held for sale | 785 | 679 |
TOTAL CURRENT ASSETS | 32,119 | 32,986 |
EQUITY METHOD INVESTMENTS | 9,851 | 9,947 |
OTHER INVESTMENTS | 4,044 | 3,678 |
OTHER ASSETS | 4,602 | 4,407 |
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation of $10,638 and $10,625, respectively | 14,346 | 14,633 |
TRADEMARKS WITH INDEFINITE LIVES | 6,424 | 6,533 |
BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES | 6,620 | 6,689 |
GOODWILL | 11,993 | 12,100 |
OTHER INTANGIBLE ASSETS | 1,017 | 1,050 |
TOTAL ASSETS | 91,016 | 92,023 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 8,853 | 9,234 |
Loans and notes payable | 14,383 | 19,130 |
Current maturities of long-term debt | 2,040 | 3,552 |
Accrued income taxes | 689 | 400 |
Liabilities held for sale | 158 | 58 |
TOTAL CURRENT LIABILITIES | 26,123 | 32,374 |
LONG-TERM DEBT | 26,087 | 19,063 |
OTHER LIABILITIES | 4,296 | 4,389 |
DEFERRED INCOME TAXES | 5,432 | 5,636 |
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 | 13,361 | 13,154 |
Reinvested earnings | 63,524 | 63,408 |
Accumulated other comprehensive income (loss) | -7,069 | -5,777 |
Treasury stock, at cost — 2,680 and 2,674 shares, respectively | -42,739 | -42,225 |
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 28,837 | 30,320 |
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 241 | 241 |
TOTAL EQUITY | 29,078 | 30,561 |
TOTAL LIABILITIES AND EQUITY | $91,016 | $92,023 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS Parentheticals (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Millions, except Per Share data, unless otherwise specified | ||
Allowance for Doubtful Accounts | $362 | $331 |
Accumulated Depreciation | $10,638 | $10,625 |
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 | 2,680 | 2,674 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
OPERATING ACTIVITIES | ||
Consolidated net income | $1,566 | $1,626 |
Depreciation and amortization | 473 | 473 |
Stock-based compensation expense | 60 | 39 |
Deferred income taxes | 8 | 13 |
Equity (income) loss - net of dividends | 8 | -65 |
Foreign currency adjustments | -46 | 280 |
Significant (gains) losses on sales of assets - net | 33 | 0 |
Other operating charges | 139 | 84 |
Other items | 522 | 46 |
Net change in operating assets and liabilities | -1,189 | -1,430 |
Net cash provided by operating activities | 1,574 | 1,066 |
INVESTING ACTIVITIES | ||
Purchases of investments | -4,003 | -4,369 |
Proceeds from disposals of investments | 3,746 | 2,595 |
Acquisitions of businesses, equity method investments and nonmarketable securities | -603 | -85 |
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 229 | 0 |
Purchases of property, plant and equipment | -516 | -449 |
Proceeds from disposals of property, plant and equipment | 21 | 68 |
Other investing activities | 314 | 27 |
Net cash provided by (used in) investing activities | -812 | -2,213 |
FINANCING ACTIVITIES | ||
Issuances of debt | 16,373 | 10,926 |
Payments of debt | -15,755 | -9,567 |
Issuances of stock | 279 | 191 |
Purchases of stock for treasury | -654 | -875 |
Dividends | -1,441 | 0 |
Other financing activities | 21 | -470 |
Net cash provided by (used in) financing activities | -1,177 | 205 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | -332 | -341 |
CASH AND CASH EQUIVALENTS | ||
Net increase (decrease) during the period | -747 | -1,283 |
Balance at beginning of period | 8,958 | 10,414 |
Balance at end of period | $8,211 | $9,131 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Apr. 03, 2015 | |
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 ("U.S. GAAP") 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, 2014. | |
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 months ended April 3, 2015, are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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 first quarter of 2015 and 2014 ended on April 3, 2015 and March 28, 2014, 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. | |
Advertising Costs | |
The Company's accounting policy related to advertising costs for annual reporting purposes, as disclosed in Note 1 of our 2014 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. In accordance with accounting principles generally accepted in the United States, local subsidiaries in hyperinflationary economies are required to use the U.S. dollar as their functional currency and remeasure the monetary assets and liabilities not denominated in U.S. dollars using the rate applicable to conversion of a currency for purposes of dividend remittances. All exchange gains and losses resulting from remeasurement are recognized currently in income. | |
Venezuela has been designated as a hyperinflationary economy. Beginning in the first quarter of 2014, the Venezuelan government recognized three legal exchange rates to convert bolivars to the U.S. dollar: (1) the official rate of 6.3 bolivars per U.S. dollar; (2) SICAD 1, which was available to foreign investments and designated industry sectors to exchange a limited volume of bolivars for U.S. dollars using a bid rate established at weekly auctions; and (3) SICAD 2, which applied to transactions that did not qualify for either the official rate or SICAD 1. As of March 28, 2014, the three legal exchange rates were 6.3 (official rate), 10.8 (SICAD 1) and 50.9 (SICAD 2). We determined that the SICAD 1 rate was the most appropriate rate to use for remeasurement given our circumstances and estimates of the applicable rate at which future transactions could be settled, including the payment of dividends. 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, resulting in a charge of $226 million recorded in the line item other income (loss) — net in our condensed consolidated statement of income. | |
In December 2014, due to the continued lack of liquidity and increasing economic uncertainty, the Company reevaluated the rate that should be used to remeasure the monetary assets and liabilities of our Venezuelan subsidiary. As of December 31, 2014, we determined that the SICAD 2 rate of 50 bolivars per U.S. dollar was the most appropriate legally available rate to remeasure the net monetary assets of our Venezuelan subsidiary. | |
In February 2015, the Venezuelan government merged SICAD 1 and SICAD 2 into a single mechanism called SICAD and introduced a new open market exchange system, SIMADI. As of April 3, 2015, management determined that the SIMADI rate of 193 bolivars per U.S. dollar was the most appropriate legally available rate and remeasured the net monetary assets of our Venezuelan subsidiary, resulting in a charge of $27 million recorded in the line item other income (loss) — net in our condensed consolidated statement of income. | |
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. During the three months ended April 3, 2015, as a result of the continued lack of liquidity and our revised assessment of our bottling partner's ability to convert Venezuelan bolivars into U.S. dollars to pay our concentrate and other receivables at exchange rates applicable at the time of the underlying transactions, we recorded a write-down of $56 million in the line item other operating charges in our condensed consolidated statement of income. | |
We also have certain U.S. dollar denominated intangible assets associated with products sold in Venezuela. As a result of the Company's revised expectations regarding the convertibility of the local currency, we recognized an impairment charge of $52 million during the three months ended April 3, 2015, recorded in the line item other operating charges in our condensed consolidated statement of income. Further government regulation or changes in exchange rates could result in additional impairments of these intangible assets. | |
As of April 3, 2015, the combined value of the net monetary assets of our Venezuelan subsidiary, the receivables from our bottling partner in Venezuela and the intangible assets associated with products sold in Venezuela was $69 million. Included in this combined value is $12 million of cash and cash equivalents. 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. If the bolivar devalues further, it would likely result in our Company recognizing additional foreign currency exchange losses, write-downs of receivables or impairment charges and our proportionate share of any charges recorded by our equity method investee. | |
Recently Issued Accounting Guidance | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP 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. On April 1, 2015, the FASB voted to propose to defer the effective date of ASU 2014-09 by one year. The Company is currently evaluating the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements. | |
In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which changes the guidance for evaluating whether to consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities. Additionally, the amendments eliminate the presumption that a general partner should consolidate a limited partnership, as well as affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for periods beginning after December 15, 2015 and early adoption is permitted, including adoption during an interim period. Companies have an option of using either a full retrospective or modified retrospective adoption approach. The Company is currently evaluating the impact that the adoption of ASU 2015-02 will have on our consolidated financial statements. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
Acquisition and Divestures [Abstract] | |||||||||
Acquisition and Divestitures [Text Block] | ACQUISITIONS AND DIVESTITURES | ||||||||
Acquisitions | |||||||||
During the three months ended April 3, 2015, our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $603 million, which primarily included an investment in a bottling partner in Indonesia that will be accounted for under the equity method of accounting. This investment was acquired from Coca-Cola Amatil Limited, an equity method investee. We also acquired the remaining outstanding shares of a bottling partner in South Africa ("South African bottler"), which was previously accounted for as an equity method investment. We remeasured our previously held equity interest in the South African bottler to fair value upon the close of the transaction and recorded a loss on the remeasurement of $19 million during the three months ended April 3, 2015. This bottler will be included in the Coca-Cola Beverages Africa Limited transaction discussed further below. | |||||||||
During the three months ended March 28, 2014, our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $85 million, none of which was individually significant. | |||||||||
Keurig Green Mountain, Inc. | |||||||||
In February 2014, the Company and Green Mountain Coffee Roasters, Inc., now known as Keurig Green Mountain, Inc. ("Keurig"), 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 Keurig'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 Keurig 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 Keurig, and on February 27, 2014, the Company purchased the newly issued shares in Keurig for approximately $1,265 million, including transaction costs of $14 million. In May 2014, the Company purchased additional shares of Keurig in the market for $302 million, which represented an additional 2 percent equity position in Keurig. | |||||||||
Subsequent to these purchases, the Company entered into an agreement with Credit Suisse Capital LLC ("CS") to purchase additional shares of Keurig which would increase the Company's equity position to a 16 percent interest based on the total number of issued and outstanding shares of Keurig as of May 1, 2014. Under the agreement, the Company was to purchase from CS, on a date selected by CS no later than February 2015, the lesser of (1) 6.5 million shares of Keurig or (2) the number of shares that shall cause our ownership to equal 16 percent. The purchase price per share was 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 had exclusive ownership and control over any such shares until delivered to the Company. In February 2015, the Company purchased 6.4 million shares from CS under this agreement for a total purchase price of $830 million. As this agreement qualified as a derivative, we recognized a loss of $58 million in the line item other income (loss) — net in the condensed consolidated statement of income during the three months ended April 3, 2015. The Company recognized a cumulative loss of $47 million in the line item other income (loss) — net in the condensed consolidated statement of income over the term of the agreement. | |||||||||
We account for the investment in Keurig as an available-for-sale security, which is included in the line item other investments in our condensed consolidated balance sheet. Each of the purchases of the shares were included in the line item purchases of investments in our condensed consolidated statement of cash flows, net of any related derivative impact. | |||||||||
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. During the three months ended March 28, 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 three months ended April 3, 2015, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $229 million, primarily related to proceeds from the sale of a 10 percent interest in a Brazilian bottling partner as a result of the majority owners exercising their right to acquire additional shares from us. Also included in this amount are proceeds from the refranchising of certain of our territories in North America. | |||||||||
During the three months ended March 28, 2014, there were no proceeds from disposals of businesses, equity method investments and nonmarketable securities. | |||||||||
North America Refranchising | |||||||||
In conjunction with implementing a new beverage partnership model in North America, the Company refranchised territories that were previously managed by our consolidated organization responsible for our North America bottling operations and product supply chain functions for the North America market, 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. During the three months ended April 3, 2015, cash proceeds from these sales totaled $30 million primarily from Coca-Cola Bottling Co. Consolidated, an equity method investee. 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 $21 million during the three months ended April 3, 2015, 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. | |||||||||
Brazilian Bottling Operations | |||||||||
In 2013, the Company deconsolidated its Brazilian bottling operations and combined them with an independent bottler in Brazil in exchange for cash and a 44 percent minority ownership interest in the newly combined entity. 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, based on an agreed-upon formula. In December 2014, the Company received notification that the owners of the majority interest had exercised their option to acquire from us a 10 percent interest in the entity's outstanding shares. During the year ended December 31, 2014, we recorded an estimated loss of $32 million as a result of the exercise price being lower than our carrying value. The transaction closed in January 2015, and the Company recorded an additional loss of $6 million during the three months ended April 3, 2015, calculated based on the final option price. As a result of the transaction, the Company's ownership was reduced to 34 percent of the entity's outstanding shares. The owners of the majority interest have a remaining option to acquire from us an additional 14 percent interest of the entity's outstanding shares at any time through December 31, 2019, based on an agreed-upon formula. | |||||||||
Assets and Liabilities Held for Sale | |||||||||
North America Refranchising | |||||||||
As of April 3, 2015, 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 expects these transactions to close by the end of the second quarter of 2015. | |||||||||
Coca-Cola Beverages Africa Limited | |||||||||
In November 2014, the Company, SAB Miller plc, and Gutsche Family Investments announced an agreement to combine the bottling operations of their nonalcoholic ready-to-drink beverage businesses in Southern and East Africa. Upon completion of the proposed merger, the Company will have an ownership of 11 percent in the bottler, which will be called Coca-Cola Beverages Africa Limited. The Company will also acquire or license several brands in exchange for cash as a result of the transaction. As of April 3, 2015, our South African bottling operations, including the newly acquired South African bottler, and related equity method investments met the criteria to be held for sale, but we were not required to record these assets and liabilities at fair value less any costs to sell because their fair value exceeded our carrying value. The Company expects the transaction to close in the second half of 2015, subject to regulatory approval. Based on the proposed governance structure, the Company expects to account for its resulting interest in the new entity as an equity method investment. | |||||||||
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, of which up to $625 million will be held in escrow, subject to release upon achievement of milestones relating to the transfer of Monster’s domestic distribution rights to our distribution network. The closing of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to take place in the second quarter of 2015. Based on, among other things, our anticipated representation on Monster's Board of Directors, the Company expects to account for its resulting interest in Monster as an equity method investment. As of April 3, 2015, the assets held by the Company's global energy drink business met the criteria to be held for sale; however, we were not required to record the assets at their fair value less any costs to sell because their fair value exceeded our carrying value. | |||||||||
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): | |||||||||
April 3, 2015 | 31-Dec-14 | ||||||||
Cash, cash equivalents and short-term investments | $ | 45 | $ | 30 | |||||
Trade accounts receivable, less allowances | 130 | 100 | |||||||
Inventories | 54 | 54 | |||||||
Prepaid expenses and other assets | 8 | 7 | |||||||
Equity method investments | 108 | 141 | |||||||
Other assets | 2 | 3 | |||||||
Property, plant and equipment — net | 316 | 303 | |||||||
Trademarks with indefinite lives | 43 | 43 | |||||||
Bottlers' franchise rights with indefinite lives | 350 | 410 | |||||||
Goodwill | 46 | 46 | |||||||
Other intangible assets | 115 | 36 | |||||||
Allowance for reduction of assets held for sale | (432 | ) | (494 | ) | |||||
Total assets | $ | 785 | 1 | $ | 679 | 2 | |||
Accounts payable and accrued expenses | $ | 57 | $ | 48 | |||||
Other liabilities | 57 | 6 | |||||||
Deferred income taxes | 44 | 4 | |||||||
Total liabilities | $ | 158 | $ | 58 | |||||
1 Includes total assets relating to North America refranchising of $211 million, Coca-Cola Beverages Africa Limited of $459 million, the pending Monster transaction of $43 million, and other assets held for sale of $72 million, and are included in the North America, Eurasia and Africa, Bottling Investments and Corporate operating segments. We determined that these operations did not meet the criteria to be classified as discontinued operations under the applicable guidance. | |||||||||
2 Includes total assets relating to North America refranchising of $223 million, Coca-Cola Beverages Africa Limited of $333 million, the pending Monster transaction of $43 million, and other assets held for sale of $80 million, and are included in the North America, Eurasia and Africa, Bottling Investments and Corporate operating segments. We determined that these operations did not meet the criteria to be classified as discontinued operations under the applicable guidance. |
Investments
Investments | 3 Months Ended | |||||||||||||
Apr. 03, 2015 | ||||||||||||||
Investments [Abstracts] | ||||||||||||||
Investments | INVESTMENTS | |||||||||||||
Investments in debt and marketable securities, other than investments accounted for under the equity method, are classified as | ||||||||||||||
trading, available-for-sale or held-to-maturity. Our marketable equity investments are classified as either trading or available-for-sale with their cost basis determined by the specific identification method. Our investments in debt securities are carried at | ||||||||||||||
either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to | ||||||||||||||
maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as | ||||||||||||||
held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized gains and | ||||||||||||||
losses on trading securities and realized gains and losses on available-for-sale securities are included in net income. Unrealized | ||||||||||||||
gains and losses, net of deferred taxes, on available-for-sale securities are included in our consolidated balance sheets as a | ||||||||||||||
component of accumulated other comprehensive income (loss) ("AOCI"), except for the change in fair value attributable to the currency risk being hedged. Refer to Note 5 for additional information related to the Company's fair value hedges of available-for-sale securities. | ||||||||||||||
Trading Securities | ||||||||||||||
As of April 3, 2015 and December 31, 2014, our trading securities had a fair value of $351 million and $409 million, respectively, and consisted primarily of equity securities. The Company had net unrealized gains on trading securities of $43 million and $40 million as of April 3, 2015 and December 31, 2014, respectively. | ||||||||||||||
The Company's trading securities were included in the following line items in our condensed consolidated balance sheets (in millions): | ||||||||||||||
April 3, | December 31, | |||||||||||||
2015 | 2014 | |||||||||||||
Marketable securities | $ | 255 | $ | 315 | ||||||||||
Other assets | 96 | 94 | ||||||||||||
Total trading securities | $ | 351 | $ | 409 | ||||||||||
Available-for-Sale and Held-to-Maturity Securities | ||||||||||||||
As of April 3, 2015 and December 31, 2014, the Company did not have any held-to-maturity securities. As of April 3, 2015, available-for-sale securities consisted of the following (in millions): | ||||||||||||||
Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Available-for-sale securities:1 | ||||||||||||||
Equity securities | $ | 3,426 | $ | 1,073 | $ | (20 | ) | $ | 4,479 | |||||
Debt securities | 3,422 | 109 | (24 | ) | 3,507 | |||||||||
Total available-for-sale securities | $ | 6,848 | $ | 1,182 | $ | (44 | ) | $ | 7,986 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
As of December 31, 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 | $ | 2,687 | $ | 1,463 | $ | (29 | ) | $ | 4,121 | |||||
Debt securities | 3,796 | 68 | (106 | ) | 2 | 3,758 | ||||||||
Total available-for-sale securities | $ | 6,483 | $ | 1,531 | $ | (135 | ) | $ | 7,879 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
2 Includes $101 million recognized in the condensed consolidated income statement line item other income (loss) — net during the year ended December 31, 2014. The amount was primarily offset by changes in the fair value of foreign currency contracts designated as fair value hedges. Refer to Note 5 for additional information. | ||||||||||||||
As of April 3, 2015 and December 31, 2014, 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 | ||||||||||||||
April 3, | March 28, | |||||||||||||
2015 | 2014 | |||||||||||||
Gross gains | $ | 34 | $ | 3 | ||||||||||
Gross losses | (7 | ) | (4 | ) | ||||||||||
Proceeds | 1,442 | 1,365 | ||||||||||||
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 April 3, 2015 and December 31, 2014, the Company's available-for-sale securities included solvency capital funds of $751 million and $836 million, respectively. | ||||||||||||||
The Company's available-for-sale securities were included in the following line items in our condensed consolidated balance sheets (in millions): | ||||||||||||||
April 3, | December 31, | |||||||||||||
2015 | 2014 | |||||||||||||
Cash and cash equivalents | $ | 1 | $ | 43 | ||||||||||
Marketable securities | 3,217 | 3,350 | ||||||||||||
Other investments | 3,880 | 3,512 | ||||||||||||
Other assets | 888 | 974 | ||||||||||||
Total available-for-sale securities | $ | 7,986 | $ | 7,879 | ||||||||||
The contractual maturities of these available-for-sale securities as of April 3, 2015 were as follows (in millions): | ||||||||||||||
Cost | Fair Value | |||||||||||||
Within 1 year | $ | 1,170 | $ | 1,170 | ||||||||||
After 1 year through 5 years | 1,792 | 1,837 | ||||||||||||
After 5 years through 10 years | 110 | 129 | ||||||||||||
After 10 years | 350 | 371 | ||||||||||||
Equity securities | 3,426 | 4,479 | ||||||||||||
Total available-for-sale securities | $ | 6,848 | $ | 7,986 | ||||||||||
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 April 3, 2015 and December 31, 2014. Our cost method investments had a carrying value of $164 million and $166 million as of April 3, 2015 and December 31, 2014, respectively. |
Inventories
Inventories | 3 Months Ended | ||||||
Apr. 03, 2015 | |||||||
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): | |||||||
April 3, | December 31, | ||||||
2015 | 2014 | ||||||
Raw materials and packaging | $ | 1,572 | $ | 1,615 | |||
Finished goods | 1,285 | 1,134 | |||||
Other | 362 | 351 | |||||
Total inventories | $ | 3,219 | $ | 3,100 | |||
Hedging_Transactions_and_Deriv
Hedging Transactions and Derivative Financial Instruments | 3 Months Ended | |||||||||||||
Apr. 03, 2015 | ||||||||||||||
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 and non-derivative financial 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. The Company may designate certain non-derivative instruments, such as our foreign-denominated debt, in hedging relationships. | ||||||||||||||
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 | April 3, | December 31, 2014 | |||||||||||
Hedging Instruments | 2015 | |||||||||||||
Assets: | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 1,065 | $ | 923 | |||||||||
Foreign currency contracts | Other assets | 593 | 346 | |||||||||||
Interest rate contracts | Prepaid expenses and other assets | 8 | 14 | |||||||||||
Interest rate contracts | Other assets | 106 | 146 | |||||||||||
Total assets | $ | 1,772 | $ | 1,429 | ||||||||||
Liabilities: | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 42 | $ | 24 | |||||||||
Foreign currency contracts | Other liabilities | 21 | 249 | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 1 | 1 | |||||||||||
Interest rate contracts | Accounts payable and accrued expenses | 39 | 11 | |||||||||||
Interest rate contracts | Other liabilities | 130 | 35 | |||||||||||
Total liabilities | $ | 233 | $ | 320 | ||||||||||
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 | April 3, | December 31, 2014 | |||||||||||
Hedging Instruments | 2015 | |||||||||||||
Assets: | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 92 | $ | 44 | |||||||||
Foreign currency contracts | Other assets | 251 | 231 | |||||||||||
Commodity contracts | Prepaid expenses and other assets | 7 | 9 | |||||||||||
Commodity contracts | Other assets | 1 | 1 | |||||||||||
Other derivative instruments | Prepaid expenses and other assets | 1 | 14 | |||||||||||
Other derivative instruments | Other assets | 1 | 2 | |||||||||||
Total assets | $ | 353 | $ | 301 | ||||||||||
Liabilities: | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 35 | $ | 33 | |||||||||
Foreign currency contracts | Other liabilities | — | 21 | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 158 | 156 | |||||||||||
Commodity contracts | Other liabilities | 7 | 17 | |||||||||||
Interest rate contracts | Other liabilities | 2 | 2 | |||||||||||
Other derivative instruments | Accounts payable and accrued expenses | 22 | 11 | |||||||||||
Other derivative instruments | Other liabilities | 2 | — | |||||||||||
Total liabilities | $ | 226 | $ | 240 | ||||||||||
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 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 $13,100 million and $13,224 million as of April 3, 2015 and December 31, 2014, respectively. | ||||||||||||||
As of December 31, 2014, the Company held 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 were 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 in the line item other income (loss) — net in our consolidated statement of income. 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 had a notional amount of $2,590 million as of December 31, 2014. During the three months ended April 3, 2015, the Company discontinued the cash flow hedge relationships related to its euro-denominated debt. Upon discontinuance, the Company recognized a loss of $92 million in other comprehensive income, which will be reclassified from AOCI into interest expense over the remaining life of the debt, a weighted-average period of approximately 10 years. The Company did not discontinue any cash flow hedging relationships during the three months ended March 28, 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 $6 million and $9 million as of April 3, 2015 and December 31, 2014, 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 $4,328 million as of April 3, 2015 and December 31, 2014. | ||||||||||||||
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 April 3, 2015 (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 Income ("OCI") | Recognized in Income1 | Reclassified from | ||||||||||||
AOCI into Income | ||||||||||||||
(Effective Portion) | ||||||||||||||
Foreign currency contracts | $ | 764 | Net operating revenues | $ | 120 | $ | — | 1,2 | ||||||
Foreign currency contracts | 19 | Cost of goods sold | 12 | — | ||||||||||
Foreign currency contracts | 18 | Interest expense | (2 | ) | — | |||||||||
Interest rate contracts | (132 | ) | Interest expense | (3 | ) | — | ||||||||
Commodity contracts | (1 | ) | Cost of goods sold | — | — | |||||||||
Total | $ | 668 | $ | 127 | $ | — | ||||||||
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 March 28, 2014 (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 | $ | (61 | ) | Net operating revenues | $ | 25 | $ | — | 2 | |||||
Foreign currency contracts | (12 | ) | Cost of goods sold | 13 | — | 2 | ||||||||
Interest rate contracts | (51 | ) | Interest expense | — | — | |||||||||
Commodity contracts | 1 | Cost of goods sold | 1 | — | ||||||||||
Total | $ | (123 | ) | $ | 39 | $ | — | |||||||
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 April 3, 2015, the Company estimates that it will reclassify into earnings during the next 12 months $650 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 April 3, 2015, such adjustments had cumulatively increased the carrying value of our long-term debt by $118 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 $8,452 million and $6,600 million as of April 3, 2015 and December 31, 2014, 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 $994 million and $1,358 million as of April 3, 2015 and December 31, 2014, 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 April 3, 2015 and March 28, 2014 (in millions): | ||||||||||||||
Hedging Instruments and Hedged Items | Location of Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized in Income | Recognized in Income 1 | |||||||||||||
Three Months Ended | ||||||||||||||
April 3, | March 28, | |||||||||||||
2015 | 2014 | |||||||||||||
Interest rate contracts | Interest expense | $ | 29 | $ | 5 | |||||||||
Fixed-rate debt | Interest expense | (19 | ) | (3 | ) | |||||||||
Net impact to interest expense | $ | 10 | $ | 2 | ||||||||||
Foreign currency contracts | Other income (loss) — net | $ | 112 | $ | 18 | |||||||||
Available-for-sale securities | Other income (loss) — net | (118 | ) | (22 | ) | |||||||||
Net impact to other income (loss) — net | $ | (6 | ) | $ | (4 | ) | ||||||||
Net impact of fair value hedging instruments | $ | 4 | $ | (2 | ) | |||||||||
1 The net impacts represent the ineffective portions of the hedge relationships and the amounts excluded from the assessment of hedge effectiveness. | ||||||||||||||
Hedges of Net Investments in Foreign Operations Strategy | ||||||||||||||
The Company uses forward contracts and non-derivative financial instruments to protect the value of our investments in a number of foreign subsidiaries. During the three months ended April 3, 2015, the Company designated a portion of its euro-denominated debt as a hedge of a net investment in our European operations. The change in the carrying value of the designated portion of the euro-denominated debt due to changes in exchange rates is recorded in net foreign currency gain (loss), a component of AOCI. 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), 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 following table summarizes the notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges (in millions): | ||||||||||||||
Notional Amount | Gain (Loss) Recognized in OCI | |||||||||||||
As of | Three Months Ended | |||||||||||||
April 3, | December 31, | April 3, | March 28, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Foreign currency contracts | $ | 2,047 | $ | 2,047 | $ | 424 | $ | (68 | ) | |||||
Foreign currency denominated debt | 974 | — | 74 | — | ||||||||||
Total | $ | 3,021 | $ | 2,047 | $ | 498 | $ | (68 | ) | |||||
The Company did not reclassify any deferred gains or losses related to net investment hedges from AOCI into earnings during the three months ended April 3, 2015 and March 28, 2014. In addition, the Company did not have any ineffectiveness related to net investment hedges during the three months ended April 3, 2015 and March 28, 2014. | ||||||||||||||
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 $5,475 million and $4,334 million as of April 3, 2015 and December 31, 2014, 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 $1,058 million and $816 million as of April 3, 2015 and December 31, 2014, respectively. | ||||||||||||||
The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the three months ended April 3, 2015 and March 28, 2014 (in millions): | ||||||||||||||
Three Months Ended | ||||||||||||||
Derivatives Not Designated | Location of Gain (Loss) | April 3, | March 28, | |||||||||||
as Hedging Instruments | Recognized in Income | 2015 | 2014 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | 9 | $ | (12 | ) | ||||||||
Foreign currency contracts | Other income (loss) — net | (17 | ) | 2 | ||||||||||
Commodity contracts | Net operating revenues | (3 | ) | (2 | ) | |||||||||
Commodity contracts | Cost of goods sold | (24 | ) | 22 | ||||||||||
Commodity contracts | Selling, general and administrative expenses | (5 | ) | (3 | ) | |||||||||
Other derivative instruments | Selling, general and administrative expenses | — | (3 | ) | ||||||||||
Other derivative instruments | Other income (loss) — net | (68 | ) | — | ||||||||||
Total | $ | (108 | ) | $ | 4 | |||||||||
Debt_and_Borrowing_Arrangement
Debt and Borrowing Arrangements | 3 Months Ended | |
Apr. 03, 2015 | ||
Debt and borrowing arrangements | ||
Debt and Borrowing Arrangements | DEBT AND BORROWING ARRANGEMENTS | |
During the three months ended April 3, 2015, the Company issued €8,500 million of long-term debt. The carrying value of this debt as of April 3, 2015 was $9,297 million. The general terms of the notes issued are as follows: | ||
• | €2,000 million total principal amount of notes due March 9, 2017, at a variable interest rate equal to the three-month Euro Interbank Offered Rate ("EURIBOR") plus 0.15 percent; | |
• | €2,000 million total principal amount of notes due September 9, 2019, at a variable interest rate equal to the three-month EURIBOR plus 0.23 percent; | |
• | €1,500 million total principal amount of notes due March 9, 2023, at a fixed interest rate of 0.75 percent; | |
• | €1,500 million total principal amount of notes due March 9, 2027, at a fixed interest rate of 1.125 percent; and | |
• | €1,500 million total principal amount of notes due March 9, 2035, at a fixed interest rate of 1.625 percent. | |
During the three months ended April 3, 2015, the Company retired $1,500 million of long-term debt upon maturity. The Company also extinguished $2,039 million of long-term debt prior to maturity, incurring associated charges of $320 million recorded in the line item interest expense in our condensed consolidated statement of income. These charges included the difference between the reacquisition price and the net carrying amount of the debt extinguished, including the impact of the related fair value hedging relationship. The general terms of the notes that were extinguished are as follows: | ||
• | $1,148 million total principal amount of notes due November 15, 2017, at a fixed interest rate of 5.35 percent; and | |
• | $891 million total principal amount of notes due March 15, 2019, at a fixed interest rate of 4.875 percent. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES |
Guarantees | |
As of April 3, 2015, we were contingently liable for guarantees of indebtedness owed by third parties of $539 million, of which $262 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. | |
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 $537 million and $530 million as of April 3, 2015 and December 31, 2014, respectively. |
Comprehensive_Income
Comprehensive Income | 3 Months Ended | |||||||||||
Apr. 03, 2015 | ||||||||||||
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): | ||||||||||||
Three Months Ended April 3, 2015 | ||||||||||||
Shareowners of | Noncontrolling | Total | ||||||||||
The Coca-Cola Company | Interests | |||||||||||
Consolidated net income | $ | 1,557 | $ | 9 | $ | 1,566 | ||||||
Other comprehensive income: | ||||||||||||
Net foreign currency translation adjustment | (1,480 | ) | (6 | ) | (1,486 | ) | ||||||
Net gain (loss) on derivatives1 | 334 | — | 334 | |||||||||
Net unrealized gain (loss) on available-for-sale securities2 | (211 | ) | — | (211 | ) | |||||||
Net change in pension and other benefit liabilities | 65 | — | 65 | |||||||||
Total comprehensive income | $ | 265 | $ | 3 | $ | 268 | ||||||
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 additional 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 April 3, 2015 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (1,439 | ) | $ | (90 | ) | $ | (1,529 | ) | |||
Reclassification adjustments recognized in net income | 63 | (14 | ) | 49 | ||||||||
Net foreign currency translation adjustments | (1,376 | ) | (104 | ) | (1,480 | ) | ||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | 669 | (256 | ) | 413 | ||||||||
Reclassification adjustments recognized in net income | (127 | ) | 48 | (79 | ) | |||||||
Net gain (loss) on derivatives1 | 542 | (208 | ) | 334 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | (312 | ) | 120 | (192 | ) | |||||||
Reclassification adjustments recognized in net income | (27 | ) | 8 | (19 | ) | |||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | (339 | ) | 128 | (211 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | 52 | (17 | ) | 35 | ||||||||
Reclassification adjustments recognized in net income | 47 | (17 | ) | 30 | ||||||||
Net change in pension and other benefit liabilities3 | 99 | (34 | ) | 65 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (1,074 | ) | $ | (218 | ) | $ | (1,292 | ) | |||
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 March 28, 2014 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (484 | ) | $ | 99 | $ | (385 | ) | ||||
Reclassification adjustments recognized in net income | — | — | — | |||||||||
Net foreign currency translation adjustments | (484 | ) | 99 | (385 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | (123 | ) | 48 | (75 | ) | |||||||
Reclassification adjustments recognized in net income | (39 | ) | 15 | (24 | ) | |||||||
Net gain (loss) on derivatives1 | (162 | ) | 63 | (99 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | 480 | (166 | ) | 314 | ||||||||
Reclassification adjustments recognized in net income | 1 | — | 1 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 481 | (166 | ) | 315 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | (3 | ) | 1 | (2 | ) | |||||||
Reclassification adjustments recognized in net income | 14 | (5 | ) | 9 | ||||||||
Net change in pension and other benefit liabilities3 | 11 | (4 | ) | 7 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (154 | ) | $ | (8 | ) | $ | (162 | ) | |||
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 statement of income where adjustments reclassified from AOCI into income were recorded during the three months ended April 3, 2015 (in millions): | ||||||||||||
Amount Reclassified from | ||||||||||||
AOCI into Income | ||||||||||||
Description of AOCI Component | Financial Statement Line Item | Three Months Ended April 3, 2015 | ||||||||||
Foreign currency translation adjustments: | ||||||||||||
Divestitures, deconsolidations and other | Other income (loss) — net | $ | 63 | |||||||||
Income before income taxes | 63 | |||||||||||
Income taxes | (14 | ) | ||||||||||
Consolidated net income | $ | 49 | ||||||||||
Derivatives: | ||||||||||||
Foreign currency contracts | Net operating revenues | $ | (120 | ) | ||||||||
Foreign currency and commodity contracts | Cost of goods sold | (12 | ) | |||||||||
Foreign currency contracts | Interest expense | 2 | ||||||||||
Interest rate contracts | Interest expense | 3 | ||||||||||
Income before income taxes | (127 | ) | ||||||||||
Income taxes | 48 | |||||||||||
Consolidated net income | $ | (79 | ) | |||||||||
Available-for-sale securities: | ||||||||||||
Sale of securities | Other income (loss) — net | $ | (27 | ) | ||||||||
Income before income taxes | (27 | ) | ||||||||||
Income taxes | 8 | |||||||||||
Consolidated net income | $ | (19 | ) | |||||||||
Pension and other benefit liabilities: | ||||||||||||
Amortization of net actuarial loss | * | $ | 52 | |||||||||
Amortization of prior service cost (credit) | * | (5 | ) | |||||||||
Income before income taxes | 47 | |||||||||||
Income taxes | (17 | ) | ||||||||||
Consolidated net income | $ | 30 | ||||||||||
* | 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 | 3 Months Ended | |||||||||||||||||||||
Apr. 03, 2015 | ||||||||||||||||||||||
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, 2014 | $ | 30,561 | $ | 63,408 | $ | (5,777 | ) | $ | 1,760 | $ | 13,154 | $ | (42,225 | ) | $ | 241 | ||||||
Comprehensive income (loss) | 268 | 1,557 | (1,292 | ) | — | — | — | 3 | ||||||||||||||
Dividends paid/payable to shareowners of | (1,441 | ) | (1,441 | ) | — | — | — | — | — | |||||||||||||
The Coca-Cola Company | ||||||||||||||||||||||
Dividends paid to noncontrolling interests | (1 | ) | — | — | — | — | — | (1 | ) | |||||||||||||
Business combinations including purchase accounting adjustments | (2 | ) | — | — | — | — | — | (2 | ) | |||||||||||||
Purchases of treasury stock | (660 | ) | — | — | — | — | (660 | ) | — | |||||||||||||
Impact related to stock compensation plans | 353 | — | — | — | 207 | 146 | — | |||||||||||||||
April 3, 2015 | $ | 29,078 | $ | 63,524 | $ | (7,069 | ) | $ | 1,760 | $ | 13,361 | $ | (42,739 | ) | $ | 241 | ||||||
Significant_Operating_and_Nono
Significant Operating and Nonoperating Items | 3 Months Ended |
Apr. 03, 2015 | |
Significant Operating and Nonoperating Items | |
Significant Operating and Nonoperating Items | SIGNIFICANT OPERATING AND NONOPERATING ITEMS |
Other Operating Charges | |
During the three months ended April 3, 2015, the Company recorded other operating charges of $233 million. These charges consisted of $90 million due to the Company's productivity and reinvestment program and $35 million due to the integration of our German bottling and distribution operations. In addition, the Company incurred a charge of $108 million due to the write-down we recorded related to our receivables from our bottling partner in Venezuela and an impairment of a Venezuelan trademark primarily due to changes in exchange rates as a result of the establishment of the new open market exchange system. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 1 for additional information on the Venezuelan currency change. Refer to Note 15 for the impact these charges had on our operating segments. | |
During the three months ended March 28, 2014, the Company incurred other operating charges of $128 million. These charges consisted of $86 million due to the Company's productivity and reinvestment program and $42 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 15 for the impact these charges had on our operating segments. | |
Other Nonoperating Items | |
Interest Expense | |
During the three months ended April 3, 2015, the Company recorded charges of $320 million due to the early extinguishment of certain long-term debt, which were recorded in the line item interest expense in our condensed consolidated statement of income. These charges included the difference between the reacquisition price and the net carrying amount of the debt extinguished, including the impact of the related fair value hedging relationship. | |
Equity Income (Loss) — Net | |
During the three months ended April 3, 2015 and March 28, 2014, the Company recorded net charges of $73 million and $27 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 changes in the Venezuelan bolivar exchange rates. Refer to Note 15 for the impact these items had on our operating segments. | |
Other Income (Loss) — Net | |
During the three months ended April 3, 2015, the Company recorded charges of $21 million due to the refranchising of certain territories in North America, $19 million as a result of the remeasurement of our previously held equity interest in a South African bottler to fair value upon our acquisition of the bottling operations, and $6 million as a result of a Brazilian bottling entity's majority interest owners exercising their option to acquire from us an additional equity interest at an exercise price less than that of our carrying value. The Company recognized a foreign currency exchange gain of $80 million associated with our euro-denominated debt partially offset by a charge of $27 million due to the remeasurement of the net monetary assets of our Venezuelan subsidiary using the SIMADI exchange rate. Refer to Note 2 for more information related to the North America refranchising, the acquisition of the South African bottler and the sale of a portion of our interest in the Brazilian bottling entity. Refer to Note 1 for more information related to the charge due to the remeasurement in Venezuela. Refer to Note 15 for the impact these charges had on our operating segments. | |
During the three months ended March 28, 2014, the Company recorded a charge of $226 million in the line item other income (loss) — net due to the expansion of the Venezuelan government's currency conversion markets. 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 | 3 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
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 the expansion of our productivity and reinvestment program to drive incremental 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. 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. | ||||||||||||||||
In October 2014, the Company announced that we are further expanding our productivity and reinvestment program through 2019. 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 further driving increased discipline and efficiency in direct marketing investments. | ||||||||||||||||
The Company has incurred total pretax expenses of $1,455 million related to this program since it 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 April 3, 2015 (in millions): | ||||||||||||||||
Accrued | Costs | Payments | Noncash | Accrued | ||||||||||||
Balance | Incurred | and | Balance | |||||||||||||
31-Dec-14 | Three Months Ended | Exchange | 3-Apr-15 | |||||||||||||
3-Apr-15 | ||||||||||||||||
Severance pay and benefits | $ | 260 | $ | 22 | $ | (87 | ) | $ | (11 | ) | $ | 184 | ||||
Outside services | 4 | 18 | (13 | ) | — | 9 | ||||||||||
Other direct costs | 21 | 50 | (45 | ) | (13 | ) | 13 | |||||||||
Total | $ | 285 | $ | 90 | $ | (145 | ) | $ | (24 | ) | $ | 206 | ||||
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 $35 million related to this initiative during the three months ended April 3, 2015, and has incurred total pretax expenses of $870 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 $77 million and $101 million accrued related to these integration costs as of April 3, 2015 and December 31, 2014, respectively. We are currently reviewing additional restructuring opportunities within the German bottling and distribution operations, which if implemented will result in additional charges in future periods. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefit Plans | 3 Months Ended | |||||||||||||
Apr. 03, 2015 | ||||||||||||||
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 | ||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Service cost | $ | 67 | $ | 67 | $ | 7 | $ | 6 | ||||||
Interest cost | 95 | 101 | 9 | 11 | ||||||||||
Expected return on plan assets | (177 | ) | (178 | ) | (3 | ) | (3 | ) | ||||||
Amortization of prior service cost (credit) | — | (1 | ) | (5 | ) | (4 | ) | |||||||
Amortization of net actuarial loss | 49 | 18 | 3 | 1 | ||||||||||
Total cost (credit) recognized in statements of income | $ | 34 | $ | 7 | $ | 11 | $ | 11 | ||||||
During the three months ended April 3, 2015, the Company contributed $78 million to our pension plans, and we anticipate making additional contributions of approximately $17 million to our pension plans during the remainder of 2015. The Company contributed $157 million to our pension plans during the three months ended March 28, 2014. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
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 2016 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 2015 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 $415 million (20.9 percent effective tax rate) and $579 million (26.2 percent effective tax rate) during the three months ended April 3, 2015 and March 28, 2014, 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 | |||||||||
April 3, | March 28, | ||||||||
2015 | 2014 | ||||||||
Productivity and reinvestment program | $ | (42 | ) | 1 | $ | (32 | ) | 1 | |
Other productivity, integration and restructuring initiatives | — | 2 | — | 2 | |||||
Transaction gains and losses | (10 | ) | 3 | — | |||||
Certain tax matters | (16 | ) | 4 | 5 | 4 | ||||
Other — net | (130 | ) | 5 | 5 | 6 | ||||
1 | Related to charges of $90 million and $86 million during the three months ended April 3, 2015 and March 28, 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 $35 million and $42 million during the three months ended April 3, 2015 and March 28, 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 $46 million that consisted of $21 million of charges due to the refranchising of certain territories in North America, a $6 million additional charge related to the sale of a portion of our equity investment in a Brazilian bottling entity, and a $19 million charge related to the remeasurement of our equity interest in a South African bottler to fair value. Refer to Note 2 and Note 10. | ||||||||
4 | Primarily 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. | ||||||||
5 | Related to charges of $528 million that consisted of $320 million associated with the early extinguishment of long-term debt, $27 million due to the remeasurement of the net monetary assets of our Venezeulan subsidiary into U.S. dollars using the SIMADI exchange rate, $108 million due to the write-down we recorded related to receivables from our bottling partner in Venezuela and an impairment of a Venezuelan trademark, and $73 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 1. Note 6 and Note 10. | ||||||||
6 | Related to charges of $253 million that consisted of $247 million due to the devaluation of the Venezuelan bolivar and $6 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. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||
Apr. 03, 2015 | ||||||||||||||||||
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 April 3, 2015 (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets: | ||||||||||||||||||
Trading securities2 | $ | 230 | $ | 118 | $ | 3 | $ | — | $ | 351 | ||||||||
Available-for-sale securities2 | 4,412 | 3,439 | 135 | 3 | — | 7,986 | ||||||||||||
Derivatives4 | 7 | 2,118 | — | (356 | ) | 1,769 | 5 | |||||||||||
Total assets | $ | 4,649 | $ | 5,675 | $ | 138 | $ | (356 | ) | $ | 10,106 | |||||||
Liabilities: | ||||||||||||||||||
Derivatives4 | $ | 1 | $ | 458 | $ | — | $ | (356 | ) | $ | 103 | 5 | ||||||
Total liabilities | $ | 1 | $ | 458 | $ | — | $ | (356 | ) | $ | 103 | |||||||
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: $817 million in the line item prepaid expenses and other assets; $952 million in the line item other assets; $17 million in the line item accounts payable and accrued expenses; and $86 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, 2014 (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets: | ||||||||||||||||||
Trading securities2 | $ | 228 | $ | 177 | $ | 4 | $ | — | $ | 409 | ||||||||
Available-for-sale securities2 | 4,116 | 3,627 | 136 | 3 | — | 7,879 | ||||||||||||
Derivatives4 | 9 | 1,721 | — | (437 | ) | 1,293 | 5 | |||||||||||
Total assets | $ | 4,353 | $ | 5,525 | $ | 140 | $ | (437 | ) | $ | 9,581 | |||||||
Liabilities: | ||||||||||||||||||
Derivatives4 | $ | 2 | $ | 558 | $ | — | $ | (437 | ) | $ | 123 | 5 | ||||||
Total liabilities | $ | 2 | $ | 558 | $ | — | $ | (437 | ) | $ | 123 | |||||||
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. Refer to Note 5. | ||||||||||||||||||
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: $567 million in the line item prepaid expenses and other assets; $726 million in the line item other assets; $14 million in the line item accounts payable and accrued expenses; and $109 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 months ended April 3, 2015 and March 28, 2014. | ||||||||||||||||||
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 months ended April 3, 2015 and March 28, 2014. | ||||||||||||||||||
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 months ended April 3, 2015 and March 28, 2014 are summarized in the table below (in millions): | ||||||||||||||||||
Gains (Losses) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
April 3, | March 28, | |||||||||||||||||
2015 | 2014 | |||||||||||||||||
Assets held for sale | $ | (23 | ) | 1 | $ | — | ||||||||||||
Intangible assets | (52 | ) | 2 | — | ||||||||||||||
Investment in formerly unconsolidated subsidiary | (19 | ) | 3 | — | ||||||||||||||
Valuation of shares in equity method investee | (6 | ) | 4 | — | ||||||||||||||
Total | $ | (100 | ) | $ | — | |||||||||||||
1 | As of April 3, 2015, 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 April 3, 2015, 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 $23 million during the three months ended April 3, 2015 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 $52 million during the three months ended April 3, 2015 due to an impairment charge on a Venezuelan trademark. The charge was 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 1 and Note 10. | |||||||||||||||||
3 | The Company recognized a loss of $19 million on our previously held investment in a South African bottler, which had been accounted for under the equity method of accounting prior to our acquisition of the bottler in February 2015. Accounting principles generally accepted in the United States require the acquirer to remeasure its previously held noncontrolling equity interest in the acquired entity to fair value as of the acquisition date and recognize any gains or losses in earnings. The Company remeasured our equity interest in the South African bottler based on Level 3 inputs. Refer to Note 2 and Note 10. | |||||||||||||||||
4 | The Company recognized a loss of $6 million as a result of the owners of the majority interest in a Brazilian bottling entity exercising their option to acquire from us a 10 percent interest in the entity's outstanding shares. The exercise price was lower than our carrying value. This loss was determined using Level 3 inputs. Refer to Note 2 and 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 instruments. Where quoted prices are not available, fair value is estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of the debt instruments. As of April 3, 2015, the carrying amount and fair value of our long-term debt, including the current portion, were $28,127 million and $29,016 million, respectively. As of December 31, 2014, the carrying amount and fair value of our long-term debt, including the current portion, were $22,615 million and $23,411 million, respectively. |
Operating_Segments
Operating Segments | 3 Months Ended | |||||||||||||||||||||||||||
Apr. 03, 2015 | ||||||||||||||||||||||||||||
Operating Segments [Abstract] | ||||||||||||||||||||||||||||
Operating Segments | OPERATING SEGMENTS | |||||||||||||||||||||||||||
Information about our Company's operations as of and for the three months ended April 3, 2015 and March 28, 2014, by operating segment, is as follows (in millions): | ||||||||||||||||||||||||||||
Eurasia | Europe | Latin | North | Asia Pacific | Bottling | Corporate | Eliminations | Consolidated | ||||||||||||||||||||
& Africa | America | America | Investments | |||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 638 | $ | 1,068 | $ | 1,047 | $ | 5,097 | $ | 1,156 | $ | 1,665 | $ | 40 | $ | — | $ | 10,711 | ||||||||||
Intersegment | — | 144 | 19 | 4 | 129 | 13 | — | (309 | ) | — | ||||||||||||||||||
Total net revenues | 638 | 1,212 | 1,066 | 5,101 | 1,285 | 1,678 | 40 | (309 | ) | 10,711 | ||||||||||||||||||
Operating income (loss) | 279 | 716 | 578 | 511 | 544 | 14 | (346 | ) | — | 2,296 | ||||||||||||||||||
Income (loss) before income taxes | 286 | 724 | 588 | 487 | 548 | (1 | ) | (651 | ) | — | 1,981 | |||||||||||||||||
Identifiable operating assets | 1,298 | 3,211 | 2,215 | 33,471 | 1,794 | 6,944 | 28,188 | — | 77,121 | |||||||||||||||||||
Noncurrent investments | 1,113 | 88 | 684 | 50 | 158 | 8,718 | 3,084 | — | 13,895 | |||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 658 | $ | 1,134 | $ | 1,094 | $ | 4,790 | $ | 1,210 | $ | 1,657 | $ | 33 | $ | — | $ | 10,576 | ||||||||||
Intersegment | — | 159 | 17 | 3 | 105 | 16 | — | (300 | ) | — | ||||||||||||||||||
Total net revenues | 658 | 1,293 | 1,111 | 4,793 | 1,315 | 1,673 | 33 | (300 | ) | 10,576 | ||||||||||||||||||
Operating income (loss) | 303 | 719 | 668 | 428 | 557 | (26 | ) | (273 | ) | — | 2,376 | |||||||||||||||||
Income (loss) before income taxes | 308 | 731 | 667 | 425 | 560 | 22 | (508 | ) | — | 2,205 | ||||||||||||||||||
Identifiable operating assets | 1,333 | 3,868 | 2,809 | 34,255 | 1,996 | 7,156 | 26,745 | — | 78,162 | |||||||||||||||||||
Noncurrent investments | 1,145 | 109 | 602 | 50 | 145 | 9,183 | 1,893 | — | 13,127 | |||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||
Identifiable operating assets | $ | 1,298 | $ | 3,358 | $ | 2,426 | $ | 33,066 | $ | 1,793 | $ | 6,975 | $ | 29,482 | $ | — | $ | 78,398 | ||||||||||
Noncurrent investments | 1,081 | 90 | 757 | 48 | 157 | 8,781 | 2,711 | — | 13,625 | |||||||||||||||||||
During the three months ended April 3, 2015, the results of our operating segments were impacted by the following items: | ||||||||||||||||||||||||||||
• | Operating income (loss) and income (loss) before income taxes were reduced by $12 million for Eurasia and Africa, $75 million for North America, $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. Operating income (loss) and income (loss) before income taxes were increased by $11 million for Europe and $5 million for Asia Pacific due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11 for additional information on each of the Company's productivity, restructuring and integration initiatives. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $1 million for Europe and $72 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $21 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 $320 million for Corporate due to charges the Company recognized on the early extinguishment of debt. Refer to Note 6 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $33 million for Latin America and $102 million for Corporate due to the remeasurement of the net monetary assets of our local Venezuelan subsidiary into U.S. dollars using the SIMADI exchange rate, an impairment of a Venezuelan trademark, and a write-down the Company recorded on receivables from our bottling partner in Venezuela. Refer to Note 1 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $19 million for Corporate as a result of the remeasurement of our previously held equity interest in a South African bottler to fair value upon our acquisition of the bottling operations. Refer to Note 2 and Note 10. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $6 million for Corporate as a result of a Brazilian bottling entity's majority interest owners exercising their option to acquire from us an additional equity interest at an exercise price less than that of our carrying value. Refer to Note 2 and Note 10. | |||||||||||||||||||||||||||
During the three months ended March 28, 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 $75 million for North America, $7 million for Asia Pacific, $42 million for Bottling Investments and $4 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. | |||||||||||||||||||||||||||
• | Income (loss) before income taxes was reduced by $21 million for Bottling Investments and $226 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 $6 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. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 03, 2015 | |
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 ("U.S. GAAP") 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, 2014. | |
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 months ended April 3, 2015, are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. 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 first quarter of 2015 and 2014 ended on April 3, 2015 and March 28, 2014, 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. | |
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 2014 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. In accordance with accounting principles generally accepted in the United States, local subsidiaries in hyperinflationary economies are required to use the U.S. dollar as their functional currency and remeasure the monetary assets and liabilities not denominated in U.S. dollars using the rate applicable to conversion of a currency for purposes of dividend remittances. All exchange gains and losses resulting from remeasurement are recognized currently in income. | |
Venezuela has been designated as a hyperinflationary economy. Beginning in the first quarter of 2014, the Venezuelan government recognized three legal exchange rates to convert bolivars to the U.S. dollar: (1) the official rate of 6.3 bolivars per U.S. dollar; (2) SICAD 1, which was available to foreign investments and designated industry sectors to exchange a limited volume of bolivars for U.S. dollars using a bid rate established at weekly auctions; and (3) SICAD 2, which applied to transactions that did not qualify for either the official rate or SICAD 1. As of March 28, 2014, the three legal exchange rates were 6.3 (official rate), 10.8 (SICAD 1) and 50.9 (SICAD 2). We determined that the SICAD 1 rate was the most appropriate rate to use for remeasurement given our circumstances and estimates of the applicable rate at which future transactions could be settled, including the payment of dividends. 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, resulting in a charge of $226 million recorded in the line item other income (loss) — net in our condensed consolidated statement of income. | |
In December 2014, due to the continued lack of liquidity and increasing economic uncertainty, the Company reevaluated the rate that should be used to remeasure the monetary assets and liabilities of our Venezuelan subsidiary. As of December 31, 2014, we determined that the SICAD 2 rate of 50 bolivars per U.S. dollar was the most appropriate legally available rate to remeasure the net monetary assets of our Venezuelan subsidiary. | |
In February 2015, the Venezuelan government merged SICAD 1 and SICAD 2 into a single mechanism called SICAD and introduced a new open market exchange system, SIMADI. As of April 3, 2015, management determined that the SIMADI rate of 193 bolivars per U.S. dollar was the most appropriate legally available rate and remeasured the net monetary assets of our Venezuelan subsidiary, resulting in a charge of $27 million recorded in the line item other income (loss) — net in our condensed consolidated statement of income. | |
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. During the three months ended April 3, 2015, as a result of the continued lack of liquidity and our revised assessment of our bottling partner's ability to convert Venezuelan bolivars into U.S. dollars to pay our concentrate and other receivables at exchange rates applicable at the time of the underlying transactions, we recorded a write-down of $56 million in the line item other operating charges in our condensed consolidated statement of income. | |
We also have certain U.S. dollar denominated intangible assets associated with products sold in Venezuela. As a result of the Company's revised expectations regarding the convertibility of the local currency, we recognized an impairment charge of $52 million during the three months ended April 3, 2015, recorded in the line item other operating charges in our condensed consolidated statement of income. Further government regulation or changes in exchange rates could result in additional impairments of these intangible assets. | |
As of April 3, 2015, the combined value of the net monetary assets of our Venezuelan subsidiary, the receivables from our bottling partner in Venezuela and the intangible assets associated with products sold in Venezuela was $69 million. Included in this combined value is $12 million of cash and cash equivalents. 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. If the bolivar devalues further, it would likely result in our Company recognizing additional foreign currency exchange losses, write-downs of receivables or impairment charges and our proportionate share of any charges recorded by our equity method investee. | |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP 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. On April 1, 2015, the FASB voted to propose to defer the effective date of ASU 2014-09 by one year. The Company is currently evaluating the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements. | |
In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which changes the guidance for evaluating whether to consolidate certain legal entities. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities. Additionally, the amendments eliminate the presumption that a general partner should consolidate a limited partnership, as well as affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for periods beginning after December 15, 2015 and early adoption is permitted, including adoption during an interim period. Companies have an option of using either a full retrospective or modified retrospective adoption approach. The Company is currently evaluating the impact that the adoption of ASU 2015-02 will have on our consolidated financial statements. |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures Acquisitions and Divestitures (Tables) | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
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): | ||||||||
April 3, 2015 | 31-Dec-14 | ||||||||
Cash, cash equivalents and short-term investments | $ | 45 | $ | 30 | |||||
Trade accounts receivable, less allowances | 130 | 100 | |||||||
Inventories | 54 | 54 | |||||||
Prepaid expenses and other assets | 8 | 7 | |||||||
Equity method investments | 108 | 141 | |||||||
Other assets | 2 | 3 | |||||||
Property, plant and equipment — net | 316 | 303 | |||||||
Trademarks with indefinite lives | 43 | 43 | |||||||
Bottlers' franchise rights with indefinite lives | 350 | 410 | |||||||
Goodwill | 46 | 46 | |||||||
Other intangible assets | 115 | 36 | |||||||
Allowance for reduction of assets held for sale | (432 | ) | (494 | ) | |||||
Total assets | $ | 785 | 1 | $ | 679 | 2 | |||
Accounts payable and accrued expenses | $ | 57 | $ | 48 | |||||
Other liabilities | 57 | 6 | |||||||
Deferred income taxes | 44 | 4 | |||||||
Total liabilities | $ | 158 | $ | 58 | |||||
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||||||
Apr. 03, 2015 | ||||||||||||||
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): | |||||||||||||
April 3, | December 31, | |||||||||||||
2015 | 2014 | |||||||||||||
Marketable securities | $ | 255 | $ | 315 | ||||||||||
Other assets | 96 | 94 | ||||||||||||
Total trading securities | $ | 351 | $ | 409 | ||||||||||
Available-for-sale securities and held-to-maturity securities | As of April 3, 2015, available-for-sale securities consisted of the following (in millions): | |||||||||||||
Gross Unrealized | ||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
Available-for-sale securities:1 | ||||||||||||||
Equity securities | $ | 3,426 | $ | 1,073 | $ | (20 | ) | $ | 4,479 | |||||
Debt securities | 3,422 | 109 | (24 | ) | 3,507 | |||||||||
Total available-for-sale securities | $ | 6,848 | $ | 1,182 | $ | (44 | ) | $ | 7,986 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
As of December 31, 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 | $ | 2,687 | $ | 1,463 | $ | (29 | ) | $ | 4,121 | |||||
Debt securities | 3,796 | 68 | (106 | ) | 2 | 3,758 | ||||||||
Total available-for-sale securities | $ | 6,483 | $ | 1,531 | $ | (135 | ) | $ | 7,879 | |||||
1 Refer to Note 14 for additional information related to the estimated fair value. | ||||||||||||||
2 Includes $101 million recognized in the condensed consolidated income statement line item other income (loss) — net during the year ended December 31, 2014. The amount was primarily offset by changes in the fair value of foreign currency contracts designated as fair value hedges. Refer to Note 5 for additional information. | ||||||||||||||
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 | ||||||||||||||
April 3, | March 28, | |||||||||||||
2015 | 2014 | |||||||||||||
Gross gains | $ | 34 | $ | 3 | ||||||||||
Gross losses | (7 | ) | (4 | ) | ||||||||||
Proceeds | 1,442 | 1,365 | ||||||||||||
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): | |||||||||||||
April 3, | December 31, | |||||||||||||
2015 | 2014 | |||||||||||||
Cash and cash equivalents | $ | 1 | $ | 43 | ||||||||||
Marketable securities | 3,217 | 3,350 | ||||||||||||
Other investments | 3,880 | 3,512 | ||||||||||||
Other assets | 888 | 974 | ||||||||||||
Total available-for-sale securities | $ | 7,986 | $ | 7,879 | ||||||||||
Contractual maturity amounts of the investment securities | The contractual maturities of these available-for-sale securities as of April 3, 2015 were as follows (in millions): | |||||||||||||
Cost | Fair Value | |||||||||||||
Within 1 year | $ | 1,170 | $ | 1,170 | ||||||||||
After 1 year through 5 years | 1,792 | 1,837 | ||||||||||||
After 5 years through 10 years | 110 | 129 | ||||||||||||
After 10 years | 350 | 371 | ||||||||||||
Equity securities | 3,426 | 4,479 | ||||||||||||
Total available-for-sale securities | $ | 6,848 | $ | 7,986 | ||||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||
Apr. 03, 2015 | |||||||
Inventories | |||||||
Inventories | Inventories consisted of the following (in millions): | ||||||
April 3, | December 31, | ||||||
2015 | 2014 | ||||||
Raw materials and packaging | $ | 1,572 | $ | 1,615 | |||
Finished goods | 1,285 | 1,134 | |||||
Other | 362 | 351 | |||||
Total inventories | $ | 3,219 | $ | 3,100 | |||
Hedging_Transactions_and_Deriv1
Hedging Transactions and Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||||||
Apr. 03, 2015 | ||||||||||||||
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 | April 3, | December 31, 2014 | |||||||||||
Hedging Instruments | 2015 | |||||||||||||
Assets: | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 1,065 | $ | 923 | |||||||||
Foreign currency contracts | Other assets | 593 | 346 | |||||||||||
Interest rate contracts | Prepaid expenses and other assets | 8 | 14 | |||||||||||
Interest rate contracts | Other assets | 106 | 146 | |||||||||||
Total assets | $ | 1,772 | $ | 1,429 | ||||||||||
Liabilities: | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 42 | $ | 24 | |||||||||
Foreign currency contracts | Other liabilities | 21 | 249 | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 1 | 1 | |||||||||||
Interest rate contracts | Accounts payable and accrued expenses | 39 | 11 | |||||||||||
Interest rate contracts | Other liabilities | 130 | 35 | |||||||||||
Total liabilities | $ | 233 | $ | 320 | ||||||||||
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 | April 3, | December 31, 2014 | |||||||||||
Hedging Instruments | 2015 | |||||||||||||
Assets: | ||||||||||||||
Foreign currency contracts | Prepaid expenses and other assets | $ | 92 | $ | 44 | |||||||||
Foreign currency contracts | Other assets | 251 | 231 | |||||||||||
Commodity contracts | Prepaid expenses and other assets | 7 | 9 | |||||||||||
Commodity contracts | Other assets | 1 | 1 | |||||||||||
Other derivative instruments | Prepaid expenses and other assets | 1 | 14 | |||||||||||
Other derivative instruments | Other assets | 1 | 2 | |||||||||||
Total assets | $ | 353 | $ | 301 | ||||||||||
Liabilities: | ||||||||||||||
Foreign currency contracts | Accounts payable and accrued expenses | $ | 35 | $ | 33 | |||||||||
Foreign currency contracts | Other liabilities | — | 21 | |||||||||||
Commodity contracts | Accounts payable and accrued expenses | 158 | 156 | |||||||||||
Commodity contracts | Other liabilities | 7 | 17 | |||||||||||
Interest rate contracts | Other liabilities | 2 | 2 | |||||||||||
Other derivative instruments | Accounts payable and accrued expenses | 22 | 11 | |||||||||||
Other derivative instruments | Other liabilities | 2 | — | |||||||||||
Total liabilities | $ | 226 | $ | 240 | ||||||||||
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 April 3, 2015 (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 Income ("OCI") | Recognized in Income1 | Reclassified from | ||||||||||||
AOCI into Income | ||||||||||||||
(Effective Portion) | ||||||||||||||
Foreign currency contracts | $ | 764 | Net operating revenues | $ | 120 | $ | — | 1,2 | ||||||
Foreign currency contracts | 19 | Cost of goods sold | 12 | — | ||||||||||
Foreign currency contracts | 18 | Interest expense | (2 | ) | — | |||||||||
Interest rate contracts | (132 | ) | Interest expense | (3 | ) | — | ||||||||
Commodity contracts | (1 | ) | Cost of goods sold | — | — | |||||||||
Total | $ | 668 | $ | 127 | $ | — | ||||||||
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 March 28, 2014 (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 | $ | (61 | ) | Net operating revenues | $ | 25 | $ | — | 2 | |||||
Foreign currency contracts | (12 | ) | Cost of goods sold | 13 | — | 2 | ||||||||
Interest rate contracts | (51 | ) | Interest expense | — | — | |||||||||
Commodity contracts | 1 | Cost of goods sold | 1 | — | ||||||||||
Total | $ | (123 | ) | $ | 39 | $ | — | |||||||
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 April 3, 2015 and March 28, 2014 (in millions): | |||||||||||||
Hedging Instruments and Hedged Items | Location of Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized in Income | Recognized in Income 1 | |||||||||||||
Three Months Ended | ||||||||||||||
April 3, | March 28, | |||||||||||||
2015 | 2014 | |||||||||||||
Interest rate contracts | Interest expense | $ | 29 | $ | 5 | |||||||||
Fixed-rate debt | Interest expense | (19 | ) | (3 | ) | |||||||||
Net impact to interest expense | $ | 10 | $ | 2 | ||||||||||
Foreign currency contracts | Other income (loss) — net | $ | 112 | $ | 18 | |||||||||
Available-for-sale securities | Other income (loss) — net | (118 | ) | (22 | ) | |||||||||
Net impact to other income (loss) — net | $ | (6 | ) | $ | (4 | ) | ||||||||
Net impact of fair value hedging instruments | $ | 4 | $ | (2 | ) | |||||||||
1 The net impacts represent the ineffective portions of the hedge relationships and the amounts excluded from the assessment of hedge effectiveness. | ||||||||||||||
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges (in millions): | |||||||||||||
Notional Amount | Gain (Loss) Recognized in OCI | |||||||||||||
As of | Three Months Ended | |||||||||||||
April 3, | December 31, | April 3, | March 28, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Foreign currency contracts | $ | 2,047 | $ | 2,047 | $ | 424 | $ | (68 | ) | |||||
Foreign currency denominated debt | 974 | — | 74 | — | ||||||||||
Total | $ | 3,021 | $ | 2,047 | $ | 498 | $ | (68 | ) | |||||
Schedule of Derivative Instruments Not Designated as Hedging Instruments Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the three months ended April 3, 2015 and March 28, 2014 (in millions): | |||||||||||||
Three Months Ended | ||||||||||||||
Derivatives Not Designated | Location of Gain (Loss) | April 3, | March 28, | |||||||||||
as Hedging Instruments | Recognized in Income | 2015 | 2014 | |||||||||||
Foreign currency contracts | Net operating revenues | $ | 9 | $ | (12 | ) | ||||||||
Foreign currency contracts | Other income (loss) — net | (17 | ) | 2 | ||||||||||
Commodity contracts | Net operating revenues | (3 | ) | (2 | ) | |||||||||
Commodity contracts | Cost of goods sold | (24 | ) | 22 | ||||||||||
Commodity contracts | Selling, general and administrative expenses | (5 | ) | (3 | ) | |||||||||
Other derivative instruments | Selling, general and administrative expenses | — | (3 | ) | ||||||||||
Other derivative instruments | Other income (loss) — net | (68 | ) | — | ||||||||||
Total | $ | (108 | ) | $ | 4 | |||||||||
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 3 Months Ended | |||||||||||
Apr. 03, 2015 | ||||||||||||
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): | |||||||||||
Three Months Ended April 3, 2015 | ||||||||||||
Shareowners of | Noncontrolling | Total | ||||||||||
The Coca-Cola Company | Interests | |||||||||||
Consolidated net income | $ | 1,557 | $ | 9 | $ | 1,566 | ||||||
Other comprehensive income: | ||||||||||||
Net foreign currency translation adjustment | (1,480 | ) | (6 | ) | (1,486 | ) | ||||||
Net gain (loss) on derivatives1 | 334 | — | 334 | |||||||||
Net unrealized gain (loss) on available-for-sale securities2 | (211 | ) | — | (211 | ) | |||||||
Net change in pension and other benefit liabilities | 65 | — | 65 | |||||||||
Total comprehensive income | $ | 265 | $ | 3 | $ | 268 | ||||||
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 additional 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 April 3, 2015 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (1,439 | ) | $ | (90 | ) | $ | (1,529 | ) | |||
Reclassification adjustments recognized in net income | 63 | (14 | ) | 49 | ||||||||
Net foreign currency translation adjustments | (1,376 | ) | (104 | ) | (1,480 | ) | ||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | 669 | (256 | ) | 413 | ||||||||
Reclassification adjustments recognized in net income | (127 | ) | 48 | (79 | ) | |||||||
Net gain (loss) on derivatives1 | 542 | (208 | ) | 334 | ||||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | (312 | ) | 120 | (192 | ) | |||||||
Reclassification adjustments recognized in net income | (27 | ) | 8 | (19 | ) | |||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | (339 | ) | 128 | (211 | ) | |||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | 52 | (17 | ) | 35 | ||||||||
Reclassification adjustments recognized in net income | 47 | (17 | ) | 30 | ||||||||
Net change in pension and other benefit liabilities3 | 99 | (34 | ) | 65 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (1,074 | ) | $ | (218 | ) | $ | (1,292 | ) | |||
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 March 28, 2014 | Before-Tax Amount | Income Tax | After-Tax Amount | |||||||||
Foreign currency translation adjustments: | ||||||||||||
Translation adjustment arising during the period | $ | (484 | ) | $ | 99 | $ | (385 | ) | ||||
Reclassification adjustments recognized in net income | — | — | — | |||||||||
Net foreign currency translation adjustments | (484 | ) | 99 | (385 | ) | |||||||
Derivatives: | ||||||||||||
Unrealized gains (losses) arising during the period | (123 | ) | 48 | (75 | ) | |||||||
Reclassification adjustments recognized in net income | (39 | ) | 15 | (24 | ) | |||||||
Net gain (loss) on derivatives1 | (162 | ) | 63 | (99 | ) | |||||||
Available-for-sale securities: | ||||||||||||
Unrealized gains (losses) arising during the period | 480 | (166 | ) | 314 | ||||||||
Reclassification adjustments recognized in net income | 1 | — | 1 | |||||||||
Net change in unrealized gain (loss) on available-for-sale securities2 | 481 | (166 | ) | 315 | ||||||||
Pension and other benefit liabilities: | ||||||||||||
Net pension and other benefits arising during the period | (3 | ) | 1 | (2 | ) | |||||||
Reclassification adjustments recognized in net income | 14 | (5 | ) | 9 | ||||||||
Net change in pension and other benefit liabilities3 | 11 | (4 | ) | 7 | ||||||||
Other comprehensive income (loss) attributable to The Coca-Cola Company | $ | (154 | ) | $ | (8 | ) | $ | (162 | ) | |||
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 statement of income where adjustments reclassified from AOCI into income were recorded during the three months ended April 3, 2015 (in millions): | |||||||||||
Amount Reclassified from | ||||||||||||
AOCI into Income | ||||||||||||
Description of AOCI Component | Financial Statement Line Item | Three Months Ended April 3, 2015 | ||||||||||
Foreign currency translation adjustments: | ||||||||||||
Divestitures, deconsolidations and other | Other income (loss) — net | $ | 63 | |||||||||
Income before income taxes | 63 | |||||||||||
Income taxes | (14 | ) | ||||||||||
Consolidated net income | $ | 49 | ||||||||||
Derivatives: | ||||||||||||
Foreign currency contracts | Net operating revenues | $ | (120 | ) | ||||||||
Foreign currency and commodity contracts | Cost of goods sold | (12 | ) | |||||||||
Foreign currency contracts | Interest expense | 2 | ||||||||||
Interest rate contracts | Interest expense | 3 | ||||||||||
Income before income taxes | (127 | ) | ||||||||||
Income taxes | 48 | |||||||||||
Consolidated net income | $ | (79 | ) | |||||||||
Available-for-sale securities: | ||||||||||||
Sale of securities | Other income (loss) — net | $ | (27 | ) | ||||||||
Income before income taxes | (27 | ) | ||||||||||
Income taxes | 8 | |||||||||||
Consolidated net income | $ | (19 | ) | |||||||||
Pension and other benefit liabilities: | ||||||||||||
Amortization of net actuarial loss | * | $ | 52 | |||||||||
Amortization of prior service cost (credit) | * | (5 | ) | |||||||||
Income before income taxes | 47 | |||||||||||
Income taxes | (17 | ) | ||||||||||
Consolidated net income | $ | 30 | ||||||||||
* | 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) | 3 Months Ended | |||||||||||||||||||||
Apr. 03, 2015 | ||||||||||||||||||||||
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, 2014 | $ | 30,561 | $ | 63,408 | $ | (5,777 | ) | $ | 1,760 | $ | 13,154 | $ | (42,225 | ) | $ | 241 | ||||||
Comprehensive income (loss) | 268 | 1,557 | (1,292 | ) | — | — | — | 3 | ||||||||||||||
Dividends paid/payable to shareowners of | (1,441 | ) | (1,441 | ) | — | — | — | — | — | |||||||||||||
The Coca-Cola Company | ||||||||||||||||||||||
Dividends paid to noncontrolling interests | (1 | ) | — | — | — | — | — | (1 | ) | |||||||||||||
Business combinations including purchase accounting adjustments | (2 | ) | — | — | — | — | — | (2 | ) | |||||||||||||
Purchases of treasury stock | (660 | ) | — | — | — | — | (660 | ) | — | |||||||||||||
Impact related to stock compensation plans | 353 | — | — | — | 207 | 146 | — | |||||||||||||||
April 3, 2015 | $ | 29,078 | $ | 63,524 | $ | (7,069 | ) | $ | 1,760 | $ | 13,361 | $ | (42,739 | ) | $ | 241 | ||||||
Productivity_Integration_and_R1
Productivity, Integration and Restructuring Initiatives (Tables) | 3 Months Ended | |||||||||||||||
Apr. 03, 2015 | ||||||||||||||||
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 April 3, 2015 (in millions): | |||||||||||||||
Accrued | Costs | Payments | Noncash | Accrued | ||||||||||||
Balance | Incurred | and | Balance | |||||||||||||
31-Dec-14 | Three Months Ended | Exchange | 3-Apr-15 | |||||||||||||
3-Apr-15 | ||||||||||||||||
Severance pay and benefits | $ | 260 | $ | 22 | $ | (87 | ) | $ | (11 | ) | $ | 184 | ||||
Outside services | 4 | 18 | (13 | ) | — | 9 | ||||||||||
Other direct costs | 21 | 50 | (45 | ) | (13 | ) | 13 | |||||||||
Total | $ | 285 | $ | 90 | $ | (145 | ) | $ | (24 | ) | $ | 206 | ||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefit Plans (Tables) | 3 Months Ended | |||||||||||||
Apr. 03, 2015 | ||||||||||||||
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 | ||||||||||||||
April 3, | March 28, | April 3, | March 28, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Service cost | $ | 67 | $ | 67 | $ | 7 | $ | 6 | ||||||
Interest cost | 95 | 101 | 9 | 11 | ||||||||||
Expected return on plan assets | (177 | ) | (178 | ) | (3 | ) | (3 | ) | ||||||
Amortization of prior service cost (credit) | — | (1 | ) | (5 | ) | (4 | ) | |||||||
Amortization of net actuarial loss | 49 | 18 | 3 | 1 | ||||||||||
Total cost (credit) recognized in statements of income | $ | 34 | $ | 7 | $ | 11 | $ | 11 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Apr. 03, 2015 | |||||||||
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 | |||||||||
April 3, | March 28, | ||||||||
2015 | 2014 | ||||||||
Productivity and reinvestment program | $ | (42 | ) | 1 | $ | (32 | ) | 1 | |
Other productivity, integration and restructuring initiatives | — | 2 | — | 2 | |||||
Transaction gains and losses | (10 | ) | 3 | — | |||||
Certain tax matters | (16 | ) | 4 | 5 | 4 | ||||
Other — net | (130 | ) | 5 | 5 | 6 | ||||
1 | Related to charges of $90 million and $86 million during the three months ended April 3, 2015 and March 28, 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 $35 million and $42 million during the three months ended April 3, 2015 and March 28, 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 $46 million that consisted of $21 million of charges due to the refranchising of certain territories in North America, a $6 million additional charge related to the sale of a portion of our equity investment in a Brazilian bottling entity, and a $19 million charge related to the remeasurement of our equity interest in a South African bottler to fair value. Refer to Note 2 and Note 10. | ||||||||
4 | Primarily 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. | ||||||||
5 | Related to charges of $528 million that consisted of $320 million associated with the early extinguishment of long-term debt, $27 million due to the remeasurement of the net monetary assets of our Venezeulan subsidiary into U.S. dollars using the SIMADI exchange rate, $108 million due to the write-down we recorded related to receivables from our bottling partner in Venezuela and an impairment of a Venezuelan trademark, and $73 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 1. Note 6 and Note 10. | ||||||||
6 | Related to charges of $253 million that consisted of $247 million due to the devaluation of the Venezuelan bolivar and $6 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. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||
Apr. 03, 2015 | ||||||||||||||||||
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 April 3, 2015 (in millions): | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets: | ||||||||||||||||||
Trading securities2 | $ | 230 | $ | 118 | $ | 3 | $ | — | $ | 351 | ||||||||
Available-for-sale securities2 | 4,412 | 3,439 | 135 | 3 | — | 7,986 | ||||||||||||
Derivatives4 | 7 | 2,118 | — | (356 | ) | 1,769 | 5 | |||||||||||
Total assets | $ | 4,649 | $ | 5,675 | $ | 138 | $ | (356 | ) | $ | 10,106 | |||||||
Liabilities: | ||||||||||||||||||
Derivatives4 | $ | 1 | $ | 458 | $ | — | $ | (356 | ) | $ | 103 | 5 | ||||||
Total liabilities | $ | 1 | $ | 458 | $ | — | $ | (356 | ) | $ | 103 | |||||||
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: $817 million in the line item prepaid expenses and other assets; $952 million in the line item other assets; $17 million in the line item accounts payable and accrued expenses; and $86 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, 2014 (in millions): | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Netting | Fair Value | ||||||||||||||
Adjustment1 | Measurements | |||||||||||||||||
Assets: | ||||||||||||||||||
Trading securities2 | $ | 228 | $ | 177 | $ | 4 | $ | — | $ | 409 | ||||||||
Available-for-sale securities2 | 4,116 | 3,627 | 136 | 3 | — | 7,879 | ||||||||||||
Derivatives4 | 9 | 1,721 | — | (437 | ) | 1,293 | 5 | |||||||||||
Total assets | $ | 4,353 | $ | 5,525 | $ | 140 | $ | (437 | ) | $ | 9,581 | |||||||
Liabilities: | ||||||||||||||||||
Derivatives4 | $ | 2 | $ | 558 | $ | — | $ | (437 | ) | $ | 123 | 5 | ||||||
Total liabilities | $ | 2 | $ | 558 | $ | — | $ | (437 | ) | $ | 123 | |||||||
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. Refer to Note 5. | ||||||||||||||||||
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: $567 million in the line item prepaid expenses and other assets; $726 million in the line item other assets; $14 million in the line item accounts payable and accrued expenses; and $109 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 months ended April 3, 2015 and March 28, 2014 are summarized in the table below (in millions): | |||||||||||||||||
Gains (Losses) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
April 3, | March 28, | |||||||||||||||||
2015 | 2014 | |||||||||||||||||
Assets held for sale | $ | (23 | ) | 1 | $ | — | ||||||||||||
Intangible assets | (52 | ) | 2 | — | ||||||||||||||
Investment in formerly unconsolidated subsidiary | (19 | ) | 3 | — | ||||||||||||||
Valuation of shares in equity method investee | (6 | ) | 4 | — | ||||||||||||||
Total | $ | (100 | ) | $ | — | |||||||||||||
1 | As of April 3, 2015, 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 April 3, 2015, 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 $23 million during the three months ended April 3, 2015 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 $52 million during the three months ended April 3, 2015 due to an impairment charge on a Venezuelan trademark. The charge was 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 1 and Note 10. | |||||||||||||||||
3 | The Company recognized a loss of $19 million on our previously held investment in a South African bottler, which had been accounted for under the equity method of accounting prior to our acquisition of the bottler in February 2015. Accounting principles generally accepted in the United States require the acquirer to remeasure its previously held noncontrolling equity interest in the acquired entity to fair value as of the acquisition date and recognize any gains or losses in earnings. The Company remeasured our equity interest in the South African bottler based on Level 3 inputs. Refer to Note 2 and Note 10. | |||||||||||||||||
4 | The Company recognized a loss of $6 million as a result of the owners of the majority interest in a Brazilian bottling entity exercising their option to acquire from us a 10 percent interest in the entity's outstanding shares. The exercise price was lower than our carrying value. This loss was determined using Level 3 inputs. Refer to Note 2 and Note 10. |
Operating_Segments_Tables
Operating Segments (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Apr. 03, 2015 | ||||||||||||||||||||||||||||
Operating Segments [Abstract] | ||||||||||||||||||||||||||||
Operating Segments | Information about our Company's operations as of and for the three months ended April 3, 2015 and March 28, 2014, by operating segment, is as follows (in millions): | |||||||||||||||||||||||||||
Eurasia | Europe | Latin | North | Asia Pacific | Bottling | Corporate | Eliminations | Consolidated | ||||||||||||||||||||
& Africa | America | America | Investments | |||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 638 | $ | 1,068 | $ | 1,047 | $ | 5,097 | $ | 1,156 | $ | 1,665 | $ | 40 | $ | — | $ | 10,711 | ||||||||||
Intersegment | — | 144 | 19 | 4 | 129 | 13 | — | (309 | ) | — | ||||||||||||||||||
Total net revenues | 638 | 1,212 | 1,066 | 5,101 | 1,285 | 1,678 | 40 | (309 | ) | 10,711 | ||||||||||||||||||
Operating income (loss) | 279 | 716 | 578 | 511 | 544 | 14 | (346 | ) | — | 2,296 | ||||||||||||||||||
Income (loss) before income taxes | 286 | 724 | 588 | 487 | 548 | (1 | ) | (651 | ) | — | 1,981 | |||||||||||||||||
Identifiable operating assets | 1,298 | 3,211 | 2,215 | 33,471 | 1,794 | 6,944 | 28,188 | — | 77,121 | |||||||||||||||||||
Noncurrent investments | 1,113 | 88 | 684 | 50 | 158 | 8,718 | 3,084 | — | 13,895 | |||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Net operating revenues: | ||||||||||||||||||||||||||||
Third party | $ | 658 | $ | 1,134 | $ | 1,094 | $ | 4,790 | $ | 1,210 | $ | 1,657 | $ | 33 | $ | — | $ | 10,576 | ||||||||||
Intersegment | — | 159 | 17 | 3 | 105 | 16 | — | (300 | ) | — | ||||||||||||||||||
Total net revenues | 658 | 1,293 | 1,111 | 4,793 | 1,315 | 1,673 | 33 | (300 | ) | 10,576 | ||||||||||||||||||
Operating income (loss) | 303 | 719 | 668 | 428 | 557 | (26 | ) | (273 | ) | — | 2,376 | |||||||||||||||||
Income (loss) before income taxes | 308 | 731 | 667 | 425 | 560 | 22 | (508 | ) | — | 2,205 | ||||||||||||||||||
Identifiable operating assets | 1,333 | 3,868 | 2,809 | 34,255 | 1,996 | 7,156 | 26,745 | — | 78,162 | |||||||||||||||||||
Noncurrent investments | 1,145 | 109 | 602 | 50 | 145 | 9,183 | 1,893 | — | 13,127 | |||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||
Identifiable operating assets | $ | 1,298 | $ | 3,358 | $ | 2,426 | $ | 33,066 | $ | 1,793 | $ | 6,975 | $ | 29,482 | $ | — | $ | 78,398 | ||||||||||
Noncurrent investments | 1,081 | 90 | 757 | 48 | 157 | 8,781 | 2,711 | — | 13,625 | |||||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Hyperinflationary Economies (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Impairment of Intangible Assets (Excluding Goodwill) | $52 | $0 | ||
Cash and Cash Equivalents, at Carrying Value | 8,211 | 9,131 | 8,958 | 10,414 |
Venezuelan subsidiary | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 52 | |||
Net Monetary Assets, Receivables and Intangible Assets | 69 | |||
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 | 27 | |||
Accounts Receivable Write-Down | 56 | |||
SCIAD 2 Rate | 49.9795 | |||
SIMADI Rate | 193 | |||
Cash and Cash Equivalents, at Carrying Value | 12 | |||
Corporate | Venezuelan subsidiary | ||||
Remeasurement Charges on Subsidiary Assets | $27 | $226 |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures (Details) (USD $) | 3 Months Ended | 12 Months Ended | 72 Months Ended | 60 Months Ended | 12 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2007 | Feb. 11, 2015 | Jun. 27, 2014 | 1-May-14 | Feb. 27, 2014 | Jul. 03, 2013 |
Acquisition and investment activities | |||||||||||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | $229 | $0 | |||||||||
Acquisitions of businesses, equity method investments and nonmarketable securities | 603 | 85 | |||||||||
Remeasurement on previously held equity interest | 19 | 0 | |||||||||
Equity Method Investments | 9,851 | 9,947 | |||||||||
Exercise of Options | 10.00% | ||||||||||
Valuation of shares in equity method investee gains/ (loss) | -6 | 0 | |||||||||
Total assets | 785 | 679 | |||||||||
Total liabilities | 158 | 58 | |||||||||
CCEAG [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Put Option Exercise Price | 503 | ||||||||||
Ownership Percentage by Parent | 100.00% | ||||||||||
Corporate | |||||||||||
Acquisition and investment activities | |||||||||||
Remeasurement on previously held equity interest | 19 | ||||||||||
Valuation of shares in equity method investee gains/ (loss) | -6 | -32 | |||||||||
Coca-Cola Beverage Africa [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Remeasurement on previously held equity interest | 19 | ||||||||||
Equity Method Investments, Percentage | 11.00% | ||||||||||
Monster Beverage Corporation [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Equity Method Investments, Percentage | 16.70% | ||||||||||
Equity Method Investments | 2,150 | ||||||||||
Escrow Deposit | 625 | ||||||||||
Keurig Green Mountain, Inc. [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Agreement Term | 10 years | ||||||||||
Available for Sale Securities, Percent | 2.00% | 16.00% | 10.00% | ||||||||
Available for Sale Securities, Equity Securities | 830 | 302 | 1,265 | ||||||||
Transaction Costs | 14 | ||||||||||
Available for Sale Securities, Shares | 6.4 | 6.5 | |||||||||
Disposal Groups, Including Discontinued Operations, Name [Domain] | |||||||||||
Acquisition and investment activities | |||||||||||
Cash, cash equivalents and short-term investments | 45 | 30 | |||||||||
Trade accounts receivables, less allowances | 130 | 100 | |||||||||
Inventories | 54 | 54 | |||||||||
Prepaid expenses and other assets | 8 | 7 | |||||||||
Equity method investments | 108 | 141 | |||||||||
Other assets | 2 | 3 | |||||||||
Property, plant and equipment - net | 316 | 303 | |||||||||
Bottlers' Franchise Rights with indefinite lives | 350 | 410 | |||||||||
Trademarks with indefinite lives | 43 | 43 | |||||||||
Goodwill | 46 | 46 | |||||||||
Other intangible assets | 115 | 36 | |||||||||
Allowance for reduction of assets held for sale | -432 | -494 | |||||||||
Total assets | 785 | 679 | |||||||||
Accounts payable and accrued expenses | 57 | 48 | |||||||||
Other liabilities | 57 | 6 | |||||||||
Deferred income taxes | 44 | 4 | |||||||||
Total liabilities | 158 | 58 | |||||||||
Others [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Total assets | 72 | 80 | |||||||||
Monster Beverage Corporation [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Total assets | 43 | 43 | |||||||||
Brazilian Bottling Operation [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Equity Method Investments, Percentage | 34.00% | 44.00% | |||||||||
Exercise of Options | 10.00% | 24.00% | |||||||||
Option Period | 6 years | ||||||||||
North America Territory [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Proceeds from Sale of Productive Assets | 30 | ||||||||||
Derecognition of the intangible assets transfered | 21 | ||||||||||
Agreement Term | 10 years | ||||||||||
Agreement Renewal Term | 10 years | ||||||||||
Total assets | 211 | 223 | |||||||||
Coca-Cola Beverage Africa [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Total assets | 459 | 333 | |||||||||
Scenario, Forecast [Member] | Brazilian Bottling Operation [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Exercise of Options | 14.00% | ||||||||||
Integration of German Bottling and Distribution Operation [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Number of German bottling and distribution operations for which integration initiatives began in 2008 | 18 | ||||||||||
Other income (loss) - net | Keurig Green Mountain, Inc. [Member] | |||||||||||
Acquisition and investment activities | |||||||||||
Derivative, Loss on Derivative | $58 | $47 |
Investments_Details
Investments (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Apr. 03, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Available-for-sale Debt Securities, Gross Unrealized Loss | $101 | |
Trading Securities | ||
Trading Securities Unrealized Holding Gains (Losses) | 40 | 43 |
Marketable Securities | 315 | 255 |
Other Assets | 94 | 96 |
Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total trading securities | $409 | $351 |
Investments_Details_2
Investments (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Apr. 03, 2015 | Dec. 31, 2014 |
Available-for-sale securities, by type | ||
Available-for-sale Debt Securities, Gross Unrealized Loss | $101 | |
Available-for-sale Securities, Amortized Cost Basis | 6,848 | 6,483 |
Available-for-sale Securities, Gross Unrealized Gain | 1,182 | 1,531 |
Available-for-sale Securities, Gross Unrealized Losses | -44 | -135 |
Available-for-sale Securities Fair Value | 7,986 | 7,879 |
Equity Securities | ||
Available-for-sale securities, by type | ||
Available-for-sale Securities, Amortized Cost Basis | 3,426 | 2,687 |
Available-for-sale Securities, Gross Unrealized Gain | 1,073 | 1,463 |
Available-for-sale Securities, Gross Unrealized Losses | -20 | -29 |
Available-for-sale Securities Fair Value | 4,479 | 4,121 |
Debt Securities | ||
Available-for-sale securities, by type | ||
Available-for-sale Securities, Amortized Cost Basis | 3,422 | 3,796 |
Available-for-sale Securities, Gross Unrealized Gain | 109 | 68 |
Available-for-sale Securities, Gross Unrealized Losses | -24 | -106 |
Available-for-sale Securities Fair Value | $3,507 | $3,758 |
Investments_Details_4
Investments (Details 4) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||
Cash and cash equivalents | $8,211 | $9,131 | $8,958 | $10,414 |
Marketable securities | 3,472 | 3,665 | ||
Other investments | 4,044 | 3,678 | ||
Other assets | 4,602 | 4,407 | ||
Available-for-sale Securities Fair Value | 7,986 | 7,879 | ||
Proceeds from Sale of Available-for-sale Securities | 1,442 | 1,365 | ||
Available-for-sale Securities Gross Gains | 34 | 3 | ||
Available-for-sale Securities Gross Losses | -7 | -4 | ||
Available-for-sale Securities [Member] | ||||
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||
Cash and cash equivalents | 1 | 43 | ||
Marketable securities | 3,217 | 3,350 | ||
Other investments | 3,880 | 3,512 | ||
Other assets | 888 | 974 | ||
Available-for-sale Securities Fair Value | 7,986 | 7,879 | ||
Solvency capital | $751 | $836 |
Investments_Details_5
Investments (Details 5) (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Investments [Abstracts] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $1,170 | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 1,170 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost Basis | 1,792 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value | 1,837 | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost Basis | 110 | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value | 129 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 350 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 371 | |
Available-for-sale Securities, Amortized Cost Basis | 6,848 | 6,483 |
Cost Method Investments [Abstract] | ||
Cost-method Investments, Aggregate Carrying Amount | 164 | 166 |
Held-to-maturity securities, by type | ||
Available-for-sale Securities Fair Value | 7,986 | 7,879 |
Equity Securities [Member] | ||
Investments [Abstracts] | ||
Available-for-sale Securities, Amortized Cost Basis | 3,426 | 2,687 |
Held-to-maturity securities, by type | ||
Available-for-sale Securities Fair Value | $4,479 | $4,121 |
Inventories_Details
Inventories (Details) (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory balances | ||
Raw materials and packaging | $1,572 | $1,615 |
Finished goods | 1,285 | 1,134 |
Other | 362 | 351 |
Total inventories | $3,219 | $3,100 |
Hedging_Transactions_and_Deriv2
Hedging Transactions and Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Dec. 31, 2014 |
Derivative Instrument Detail [Abstract] | |||
Maximum length of time over which future cash flow exposures are hedged (in years) | 3 years | ||
Cash Flow Hedging [Member] | |||
Derivative Instrument Detail [Abstract] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $668 | ($123) | |
Net Investment Hedging [Member] | |||
Derivative Instrument Detail [Abstract] | |||
Derivative, Notional Amount | 3,021 | 2,047 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 498 | -68 | |
Foreign currency denominated debt | Cash Flow Hedging [Member] | |||
Derivative Instrument Detail [Abstract] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -92 | ||
Foreign currency contracts | Cash Flow Hedging [Member] | |||
Derivative Instrument Detail [Abstract] | |||
Derivative, Notional Amount | 13,100 | 13,224 | |
Foreign currency contracts | Net Investment Hedging [Member] | |||
Derivative Instrument Detail [Abstract] | |||
Derivative, Notional Amount | 2,047 | 2,047 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 424 | -68 | |
Commodity contracts | Cash Flow Hedging [Member] | |||
Derivative Instrument Detail [Abstract] | |||
Derivative, Notional Amount | 6 | 9 | |
Interest Rate Contracts | Cash Flow Hedging [Member] | |||
Derivative Instrument Detail [Abstract] | |||
Derivative, Notional Amount | 4,328 | 4,328 | |
Interest Rate Contracts | Fair Value Hedging [Member] | |||
Derivative Instrument Detail [Abstract] | |||
Derivative, Notional Amount | 8,452 | 6,600 | |
Cross Currency Swap | Cash Flow Hedging [Member] | |||
Derivative Instrument Detail [Abstract] | |||
Derivative, Notional Amount | 2,590 | ||
Designated as Hedging Instrument [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 1,772 | 1,429 | |
Derivative instruments, liabilities, fair value | 233 | 320 | |
Designated as Hedging Instrument [Member] | Foreign currency contracts | Prepaid expenses and other assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 1,065 | 923 | |
Designated as Hedging Instrument [Member] | Foreign currency contracts | Other Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 593 | 346 | |
Designated as Hedging Instrument [Member] | Foreign currency contracts | Other Liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 21 | 249 | |
Designated as Hedging Instrument [Member] | Interest Rate Contracts | Prepaid expenses and other assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 8 | 14 | |
Designated as Hedging Instrument [Member] | Interest Rate Contracts | Other Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 106 | 146 | |
Designated as Hedging Instrument [Member] | Interest Rate Contracts | Accounts Payable and Accrued Liabilities [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 39 | 11 | |
Designated as Hedging Instrument [Member] | Interest Rate Contracts | Other Liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 130 | 35 | |
Not Designated as Hedging Instrument [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 353 | 301 | |
Derivative instruments, liabilities, fair value | 226 | 240 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | |||
Derivative Instrument Detail [Abstract] | |||
Derivative, Notional Amount | 5,475 | 4,334 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Prepaid expenses and other assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 92 | 44 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Other Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 251 | 231 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Accounts Payable and Accrued Liabilities [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 35 | 33 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Other Liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 0 | 21 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | |||
Derivative Instrument Detail [Abstract] | |||
Derivative, Notional Amount | 1,058 | 816 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Prepaid expenses and other assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 7 | 9 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 1 | 1 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Accounts Payable and Accrued Liabilities [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 158 | 156 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Other Liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 7 | 17 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Contracts | Other Liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 2 | 2 | |
Not Designated as Hedging Instrument [Member] | Other derivative instruments | Prepaid expenses and other assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 1 | 14 | |
Not Designated as Hedging Instrument [Member] | Other derivative instruments | Other Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 1 | 2 | |
Not Designated as Hedging Instrument [Member] | Other derivative instruments | Accounts Payable and Accrued Liabilities [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 22 | 11 | |
Not Designated as Hedging Instrument [Member] | Other derivative instruments | Other Liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | $2 | $0 |
Hedging_Transactions_and_Deriv3
Hedging Transactions and Derivative Financial Instruments (Details 2) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Dec. 31, 2014 |
Gains and (losses) related to derivative instruments | |||
Anticipated gains (losses) cash flows hedges, estimated reclassification to earnings during next twelve months | $650 | ||
Fixed-rate debt | |||
Gains and (losses) related to derivative instruments | |||
Increase (Decrease) in carrying value due to hedge adjustments | 118 | ||
Cash Flow Hedges | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -668 | 123 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 127 | 39 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | |
Cash Flow Hedges | Interest Rate Swap [Member] | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 4,328 | 4,328 | |
Cash Flow Hedges | Foreign currency contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 13,100 | 13,224 | |
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 | -764 | 61 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 120 | 25 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | |
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 | -19 | 12 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 12 | 13 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 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 | -18 | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -2 | ||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | ||
Cash Flow Hedges | Currency Swap [Member] | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 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 | 132 | 51 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -3 | 0 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | |
Cash Flow Hedges | Commodity contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 6 | 9 | |
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 | 1 | -1 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | 1 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | |
Fair Value Hedges | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 4 | -2 | |
Fair Value Hedges | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -6 | -4 | |
Fair Value Hedges | Interest Expense [Member] | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 10 | 2 | |
Fair Value Hedges | Fixed-rate debt | Interest Expense [Member] | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -19 | -3 | |
Fair Value Hedges | Interest Rate Swap [Member] | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 8,452 | 6,600 | |
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 | 29 | 5 | |
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 | 112 | 18 | |
Fair Value Hedges | Available-for-sale Securities [Member] | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 994 | 1,358 | |
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 | -118 | -22 | |
Net Investment Hedges | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 3,021 | 2,047 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -498 | 68 | |
Net Investment Hedges | Foreign currency contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 2,047 | 2,047 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -424 | 68 | |
Net Investment Hedges | Foreign currency denominated debt | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 974 | 0 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | -74 | 0 | |
Designated as Hedging Instrument [Member] | |||
Gains and (losses) related to derivative instruments | |||
Derivative Liability, Fair Value, Gross Liability | 233 | 320 | |
Not Designated as Hedging Instrument [Member] | |||
Gains and (losses) related to derivative instruments | |||
Derivative Liability, Fair Value, Gross Liability | 226 | 240 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -108 | 4 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 5,475 | 4,334 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Net operating revenues | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 9 | -12 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -17 | 2 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 1,058 | 816 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Net operating revenues | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -3 | -2 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Cost of goods sold | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -24 | 22 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | Selling, general and administrative expenses | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -5 | -3 | |
Not Designated as Hedging Instrument [Member] | Other derivative instruments | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | -68 | 0 | |
Not Designated as Hedging Instrument [Member] | Other derivative instruments | Selling, general and administrative expenses | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 0 | -3 | |
Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | Foreign currency contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative Liability, Fair Value, Gross Liability | 42 | 24 | |
Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | Commodity contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative Liability, Fair Value, Gross Liability | 1 | 1 | |
Euro Denominated Debt [Domain] | Cash Flow Hedges | |||
Gains and (losses) related to derivative instruments | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $92 |
Debt_and_Borrowing_Arrangement1
Debt and Borrowing Arrangements (Details) | 3 Months Ended | 3 Months Ended | |||||||||
In Millions, unless otherwise specified | Apr. 03, 2015 | Apr. 03, 2015 | Dec. 31, 2014 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 | Apr. 03, 2015 |
USD ($) | EUR (€) | USD ($) | Euro Denominated Debt [Domain] | euro notes due 2019 [Member] [Domain] | euro notes due 2017[Member] [Domain] | euro notes due 2023[Member] [Domain] [Domain] | euro notes due at 2027 [Member] [Domain] | euro notes due 2035 [Member] [Domain] | Notes due on November 15 2017 [Domain] | Notes due on March 15 2019 [Domain] [Domain] | |
USD ($) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | EUR (€) | USD ($) | USD ($) | ||||
Long-term debt | |||||||||||
Issuance of long term debt | € 8,500 | € 2,000 | € 2,000 | € 1,500 | € 1,500 | € 1,500 | |||||
Carrying value of Euro debt in USD | 28,127 | 22,615 | 9,297 | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.23% | 0.15% | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.75% | 1.13% | 1.63% | 5.35% | 4.88% | ||||||
Retirement of long-term debt | 1,500 | ||||||||||
Extinguishment of long-term debt | 2,039 | 1,148 | 891 | ||||||||
Gains (Losses) on Extinguishment of Debt | ($320) |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Guarantees of indebtedness owed by third parties | ||
Guarantees | ||
Guarantees of indebtedness owed by third parties | $539 | |
VIEs maximum exposures to loss | 262 | |
Risk Management Programs | ||
Risk Management Programs | ||
Self-insurance reserves | $537 | $530 |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Comprehensive Income Disclosure | ||
Consolidated net income | $1,566 | $1,626 |
Other comprehensive income: | ||
Net foreign currency translation adjustment | -1,486 | -389 |
Net gain (loss) on derivatives | 334 | -99 |
Net unrealized gain (loss) on available-for-sale securities | -211 | 315 |
Net change in pension and other benefit liabilities | 65 | 7 |
TOTAL COMPREHENSIVE INCOME | 268 | 1,460 |
Foreign currency translation adjustments: | ||
Translation adjustment arising during the period | -1,439 | -484 |
Reclassification adjustments recognized in net income | 63 | 0 |
Net foreign currency translation adjustments | -1,376 | -484 |
Derivatives: | ||
Unrealized gains (losses) arising during the period | 669 | -123 |
Reclassification adjustments recognized in net income | -127 | -39 |
Net gain (loss) on derivatives | 542 | -162 |
Available-for-sale securities: | ||
Unrealized gains (losses) arising during the period | -312 | 480 |
Reclassification adjustments recognized in net income | -27 | 1 |
Net change in unrealized gain (loss) on available-for-sale securities | -339 | 481 |
Pension and other benefit liabilities: | ||
Net pension and other benefits arising during the period | 52 | -3 |
Reclassification adjustments recognized in net income | 47 | 14 |
Net change in pension and other benefit liabilities | 99 | 11 |
Other Comprehensive Income (Loss) attributable to The Coca-Cola Company | -1,074 | -154 |
Foreign currency translation adjustments: | ||
Translation adjustment arising during the period | -90 | 99 |
Reclassification adjustments recognized in net income | -14 | 0 |
Net foreign currency translation adjustments | -104 | 99 |
Derivatives: | ||
Unrealized gains (losses) arising during the period | -256 | 48 |
Reclassification adjustments recognized in net income | 48 | 15 |
Net gain (loss) on derivatives | -208 | 63 |
Available-for-sales securities: | ||
Unrealized gains (losses) arising during the period | 120 | -166 |
Reclassification adjustments recognized in net income | 8 | 0 |
Net change in unrealized gain (loss) on available-for-sale securities | 128 | -166 |
Pension and other benefit liabilities: | ||
Net pension and other benefits arising during the period | -17 | 1 |
Reclassification adjustments recognized in net income | -17 | -5 |
Net change in pension and other benefit liabilities | -34 | -4 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | -218 | -8 |
Foreign currency translation adjustments: | ||
Translation adjustment arising during the period | -1,529 | -385 |
Reclassification adjustments recognized in net income | 49 | 0 |
Net foreign currency translation adjustments | -1,480 | -385 |
Derivatives: | ||
Unrealized gains (losses) arising during the period | 413 | -75 |
Reclassification adjustments recognized in net income | -79 | -24 |
Net gain (loss) on derivatives | 334 | -99 |
Available-for-sale securities: | ||
Unrealized gains (losses) arising during the period | -192 | 314 |
Reclassification adjustments recognized in net income | -19 | 1 |
Net change in unrealized gain (loss) on available-for-sale securities | -211 | 315 |
Pension and other benefit liabilities: | ||
Net pension and other benefits arising during the period | 35 | -2 |
Reclassification adjustments recognized in net income | 30 | 9 |
Net change in pension and other benefit liabilities | 65 | 7 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | -1,292 | -162 |
Amortization of prior period service cost (credit) | -5 | |
Divestitures, deconsolidations and other [Member] | Other income (loss) - net | ||
Foreign currency translation adjustments: | ||
Reclassification adjustments recognized in net income | 63 | |
Foreign currency contracts | Net operating revenues | ||
Derivatives: | ||
Reclassification adjustments recognized in net income | -120 | |
Foreign currency contracts | Interest Expense [Member] | ||
Derivatives: | ||
Reclassification adjustments recognized in net income | 2 | |
Foreign currency and commodity contracts [Member] | Cost of goods sold | ||
Derivatives: | ||
Reclassification adjustments recognized in net income | -12 | |
Interest rate contracts | Interest Expense [Member] | ||
Derivatives: | ||
Reclassification adjustments recognized in net income | 3 | |
Sale of securities | Other income (loss) - net | ||
Available-for-sale securities: | ||
Reclassification adjustments recognized in net income | -27 | |
Amortization of net actuarial loss | ||
Pension and other benefit liabilities: | ||
Reclassification adjustments recognized in net income | 52 | |
Shareowners of The Coca-Cola Company | ||
Comprehensive Income Disclosure | ||
Consolidated net income | 1,557 | |
Other comprehensive income: | ||
Net foreign currency translation adjustment | -1,480 | |
Net gain (loss) on derivatives | 334 | |
Net unrealized gain (loss) on available-for-sale securities | -211 | |
Net change in pension and other benefit liabilities | 65 | |
TOTAL COMPREHENSIVE INCOME | 265 | |
Noncontrolling Interests | ||
Comprehensive Income Disclosure | ||
Consolidated net income | 9 | |
Other comprehensive income: | ||
Net foreign currency translation adjustment | -6 | |
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 | 3 | |
Total [Member] | ||
Comprehensive Income Disclosure | ||
Consolidated net income | 1,566 | |
Other comprehensive income: | ||
Net foreign currency translation adjustment | -1,486 | |
Net gain (loss) on derivatives | 334 | |
Net unrealized gain (loss) on available-for-sale securities | -211 | |
Net change in pension and other benefit liabilities | 65 | |
TOTAL COMPREHENSIVE INCOME | $268 |
Changes_in_Equity_Details
Changes in Equity (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Changes in Equity | ||
31-Dec-14 | $30,561 | |
Comprehensive income (loss) | 268 | 1,460 |
Dividends paid/payable to shareowners of The Coca-Cola Company | -1,441 | |
Dividends paid to noncontrolling interests | -1 | |
Business combinations including purchase accounting adjustments | -2 | |
Purchases of treasury stock | -660 | |
Impact related to stock compensation plans | 353 | |
3-Apr-15 | 29,078 | |
Reinvested Earnings | ||
Changes in Equity | ||
31-Dec-14 | 63,408 | |
Comprehensive income (loss) | 1,557 | |
Dividends paid/payable to shareowners of The Coca-Cola Company | -1,441 | |
Dividends paid to noncontrolling interests | 0 | |
Business combinations including purchase accounting adjustments | 0 | |
Purchases of treasury stock | 0 | |
Impact related to stock compensation plans | 0 | |
3-Apr-15 | 63,524 | |
Accumulated Other Comprehensive Income (Loss) | ||
Changes in Equity | ||
31-Dec-14 | -5,777 | |
Comprehensive income (loss) | -1,292 | |
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 related to stock compensation plans | 0 | |
3-Apr-15 | -7,069 | |
Common Stock [Member] | ||
Changes in Equity | ||
31-Dec-14 | 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 related to stock compensation plans | 0 | |
3-Apr-15 | 1,760 | |
Capital Surplus | ||
Changes in Equity | ||
31-Dec-14 | 13,154 | |
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 related to stock compensation plans | 207 | |
3-Apr-15 | 13,361 | |
Treasury Stock | ||
Changes in Equity | ||
31-Dec-14 | -42,225 | |
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 | -660 | |
Impact related to stock compensation plans | 146 | |
3-Apr-15 | -42,739 | |
Noncontrolling Interests | ||
Changes in Equity | ||
31-Dec-14 | 241 | |
Comprehensive income (loss) | 3 | |
Dividends paid/payable to shareowners of The Coca-Cola Company | 0 | |
Dividends paid to noncontrolling interests | -1 | |
Business combinations including purchase accounting adjustments | -2 | |
Purchases of treasury stock | 0 | |
Impact related to stock compensation plans | 0 | |
3-Apr-15 | $241 |
Significant_Operating_and_Nono1
Significant Operating and Nonoperating Items (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Dec. 31, 2014 |
Other Operating Charges | |||
Other operating charges | $233 | $128 | |
Writte-down of receivables and trademark impairment | 108 | ||
Other Nonoperating Items | |||
Gains (Losses) on Extinguishment of Debt | -320 | ||
Equity Income (Loss) - Net | |||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 73 | 27 | |
Other Income (Loss) - Net | |||
Remeasurement on previously held equity interest | 19 | 0 | |
Valuation of shares in equity method investee gains/ (loss) | -6 | 0 | |
Foreign currency exchange gain | 80 | ||
North America [Member] | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | 75 | 75 | |
Other Income (Loss) - Net | |||
Benefit (charge) due to refranchising of territories | -21 | ||
Corporate | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | 20 | 4 | |
Other Nonoperating Items | |||
Gains (Losses) on Extinguishment of Debt | -320 | ||
Other Income (Loss) - Net | |||
Remeasurement on previously held equity interest | 19 | ||
Valuation of shares in equity method investee gains/ (loss) | -6 | -32 | |
Productivity and Reinvestment [Member] | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | 90 | 86 | |
Integration of German Bottling and Distribution Operation [Member] | |||
Other Operating Charges | |||
Productivity, integration and restructuring initiatives | 35 | 42 | |
Venezuelan subsidiary | |||
Other Income (Loss) - Net | |||
Remeasurement Charges on Subsidiary Assets | 27 | ||
Venezuelan subsidiary | Corporate | |||
Other Income (Loss) - Net | |||
Remeasurement Charges on Subsidiary Assets | 27 | 226 | |
Other Operating Charges | |||
Other Operating Charges | |||
Writte-down of receivables and trademark impairment | $108 |
Productivity_Integration_and_R2
Productivity, Integration and Restructuring Initiatives (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Dec. 31, 2007 |
Productivity and Reinvestment [Member] | |||
Productivity, Integration and Restructuring Initiatives Disclosures | |||
Accrued Balance, Beginning Balance | $285 | ||
Cost incurred | 90 | 86 | |
Payments | -145 | ||
Noncash and exchange | -24 | ||
Accrued Balance, Ending Balance | 206 | ||
Restructuring and related costs incurred to date | 1,455 | ||
Integration of German Bottling and Distribution Operation [Member] | |||
Productivity, Integration and Restructuring Initiatives Disclosures | |||
Accrued Balance, Beginning Balance | 101 | ||
Cost incurred | 35 | 42 | |
Accrued Balance, Ending Balance | 77 | ||
Restructuring and related costs incurred to date | 870 | ||
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 | 260 | ||
Cost incurred | 22 | ||
Payments | -87 | ||
Noncash and exchange | -11 | ||
Accrued Balance, Ending Balance | 184 | ||
Outside Services [Member] | Productivity and Reinvestment [Member] | |||
Productivity, Integration and Restructuring Initiatives Disclosures | |||
Accrued Balance, Beginning Balance | 4 | ||
Cost incurred | 18 | ||
Payments | -13 | ||
Noncash and exchange | 0 | ||
Accrued Balance, Ending Balance | 9 | ||
Other direct costs [Member] | Productivity and Reinvestment [Member] | |||
Productivity, Integration and Restructuring Initiatives Disclosures | |||
Accrued Balance, Beginning Balance | 21 | ||
Cost incurred | 50 | ||
Payments | -45 | ||
Noncash and exchange | -13 | ||
Accrued Balance, Ending Balance | $13 |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefit Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Net periodic pension and other Postretirement benefit cost | ||
Contributions to pension plan | $78 | $157 |
Pension plans, anticipated additional contributions for remainder of current fiscal year | 17 | |
Pension Benefits | ||
Net periodic pension and other Postretirement benefit cost | ||
Service cost | 67 | 67 |
Interest cost | 95 | 101 |
Expected return on plan assets | -177 | -178 |
Amortization of prior service cost (credit) | 0 | -1 |
Amortization of net actuarial loss | 49 | 18 |
Total cost (credit) recognized in statements of income | 34 | 7 |
Other Benefits | ||
Net periodic pension and other Postretirement benefit cost | ||
Service cost | 7 | 6 |
Interest cost | 9 | 11 |
Expected return on plan assets | -3 | -3 |
Amortization of prior service cost (credit) | -5 | -4 |
Amortization of net actuarial loss | 3 | 1 |
Total cost (credit) recognized in statements of income | $11 | $11 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Income taxes | ||
U.S. statutory rate (as a percent) | 35.00% | |
Effective tax rate estimated for 2014 (as a percent) | 22.50% | |
Income tax expense | $415 | $579 |
Effective tax rate (as a percent) | 20.90% | 26.20% |
Tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented | ||
Productivity and reinvestment program | -42 | -32 |
Other productivity, integration and restructuring initiatives | 0 | 0 |
Transaction gains and losses | -10 | 0 |
Certain tax matters | -16 | 5 |
Other - net | -130 | 5 |
Unusual and/or infrequent items [Abstract] | ||
Remeasurement on previously held equity interest | 19 | 0 |
Valuation of shares in equity method investee gains/ (loss) | -6 | 0 |
Other infrequent or unusual charges/(gains) net | 46 | |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 73 | 27 |
Unusual or Infrequent Event Charges | 528 | 253 |
Gains (Losses) on Extinguishment of Debt | -320 | |
Writte-down of receivables and trademark impairment | 108 | |
Productivity and Reinvestment [Member] | ||
Unusual and/or infrequent items [Abstract] | ||
Productivity, integration and restructuring initiatives | 90 | 86 |
Integration of German Bottling and Distribution Operation [Member] | ||
Unusual and/or infrequent items [Abstract] | ||
Productivity, integration and restructuring initiatives | 35 | 42 |
North America [Member] | ||
Unusual and/or infrequent items [Abstract] | ||
Productivity, integration and restructuring initiatives | 75 | 75 |
Benefit (charge) due to refranchising of territories | -21 | |
Bottling investments [Member] | ||
Unusual and/or infrequent items [Abstract] | ||
Productivity, integration and restructuring initiatives | 34 | 42 |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 72 | 6 |
Venezuelan subsidiary | ||
Unusual and/or infrequent items [Abstract] | ||
Devaluation of Venezuela Bolivar, write-down of receivables and charges from equity investees | 247 | |
Remeasurement Charges on Subsidiary Assets | 27 | |
Venezuelan subsidiary | Bottling investments [Member] | ||
Unusual and/or infrequent items [Abstract] | ||
Remeasurement Charges on Subsidiary Assets | $21 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Available-for-sale securities | $7,986 | $7,879 |
Level 1 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 230 | 228 |
Available-for-sale securities | 4,412 | 4,116 |
Derivatives, assets | 7 | 9 |
Total assets | 4,649 | 4,353 |
Derivatives, liabilities | 1 | 2 |
Total liabilities | 1 | 2 |
Level 2 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 118 | 177 |
Available-for-sale securities | 3,439 | 3,627 |
Derivatives, assets | 2,118 | 1,721 |
Total assets | 5,675 | 5,525 |
Derivatives, liabilities | 458 | 558 |
Total liabilities | 458 | 558 |
Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 3 | 4 |
Available-for-sale securities | 135 | 136 |
Derivatives, assets | 0 | 0 |
Total assets | 138 | 140 |
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 | -356 | -437 |
Total assets | -356 | -437 |
Derivatives, liabilities | -356 | -437 |
Total liabilities | -356 | -437 |
Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 351 | 409 |
Available-for-sale securities | 7,986 | 7,879 |
Derivatives, assets | 1,769 | 1,293 |
Total assets | 10,106 | 9,581 |
Derivatives, liabilities | 103 | 123 |
Total liabilities | 103 | 123 |
Prepaid expenses and other assets | Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, assets | 817 | 567 |
Other Assets | Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, assets | 952 | 726 |
Accounts payable and accrued expenses | Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, liabilities | 17 | 14 |
Other Liabilities | Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, liabilities | $86 | $109 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 |
Nonrecurring fair value measurements | ||
Assets held for sale | ($23) | $0 |
Intangible Assets | -52 | 0 |
Investment in formerly unconsolidated subsidiary | -19 | 0 |
Valuation of shares in equity method investee gains/ (loss) | -6 | 0 |
Total | ($100) | $0 |
Exercise of Options | 10.00% |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | Apr. 03, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other fair value disclosures | ||
Long-term debt, including the current portion, carrying amount | $28,127 | $22,615 |
Long-term debt, including the current portion, fair value | $29,016 | $23,411 |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Apr. 03, 2015 | Mar. 28, 2014 | Dec. 31, 2014 |
Net operating revenues: | |||
Third party | $10,711 | $10,576 | |
Intersegment | 0 | 0 | |
Total net revenues | 10,711 | 10,576 | |
Operating Income (Loss) | 2,296 | 2,376 | |
Income (loss) before income taxes | 1,981 | 2,205 | |
Identifiable operating assets | 77,121 | 78,162 | 78,398 |
Noncurrent investments | 13,895 | 13,127 | 13,625 |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 73 | 27 | |
Valuation of shares in equity method investee gains/ (loss) | -6 | 0 | |
Gains (Losses) on Extinguishment of Debt | -320 | ||
Remeasurement on previously held equity interest | 19 | 0 | |
Venezuelan subsidiary | |||
Net operating revenues: | |||
Remeasurement Charges on Subsidiary Assets | 27 | ||
Eurasia and Africa [Member] | |||
Net operating revenues: | |||
Third party | 638 | 658 | |
Intersegment | 0 | 0 | |
Total net revenues | 638 | 658 | |
Operating Income (Loss) | 279 | 303 | |
Income (loss) before income taxes | 286 | 308 | |
Identifiable operating assets | 1,298 | 1,333 | 1,298 |
Noncurrent investments | 1,113 | 1,145 | 1,081 |
Productivity, integration and restructuring initiatives | 12 | ||
Europe | |||
Net operating revenues: | |||
Third party | 1,068 | 1,134 | |
Intersegment | 144 | 159 | |
Total net revenues | 1,212 | 1,293 | |
Operating Income (Loss) | 716 | 719 | |
Income (loss) before income taxes | 724 | 731 | |
Identifiable operating assets | 3,211 | 3,868 | 3,358 |
Noncurrent investments | 88 | 109 | 90 |
Refinement of previously established accruals - credit | 11 | ||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 1 | ||
Latin America [Member] | |||
Net operating revenues: | |||
Third party | 1,047 | 1,094 | |
Intersegment | 19 | 17 | |
Total net revenues | 1,066 | 1,111 | |
Operating Income (Loss) | 578 | 668 | |
Income (loss) before income taxes | 588 | 667 | |
Identifiable operating assets | 2,215 | 2,809 | 2,426 |
Noncurrent investments | 684 | 602 | 757 |
Income (expenses) related to subsidiary events | -33 | ||
North America [Member] | |||
Net operating revenues: | |||
Third party | 5,097 | 4,790 | |
Intersegment | 4 | 3 | |
Total net revenues | 5,101 | 4,793 | |
Operating Income (Loss) | 511 | 428 | |
Income (loss) before income taxes | 487 | 425 | |
Identifiable operating assets | 33,471 | 34,255 | 33,066 |
Noncurrent investments | 50 | 50 | 48 |
Productivity, integration and restructuring initiatives | 75 | 75 | |
Benefit (charge) due to refranchising of territories | -21 | ||
Asia Pacific | |||
Net operating revenues: | |||
Third party | 1,156 | 1,210 | |
Intersegment | 129 | 105 | |
Total net revenues | 1,285 | 1,315 | |
Operating Income (Loss) | 544 | 557 | |
Income (loss) before income taxes | 548 | 560 | |
Identifiable operating assets | 1,794 | 1,996 | 1,793 |
Noncurrent investments | 158 | 145 | 157 |
Productivity, integration and restructuring initiatives | 7 | ||
Refinement of previously established accruals - credit | 5 | ||
Bottling investments [Member] | |||
Net operating revenues: | |||
Third party | 1,665 | 1,657 | |
Intersegment | 13 | 16 | |
Total net revenues | 1,678 | 1,673 | |
Operating Income (Loss) | 14 | -26 | |
Income (loss) before income taxes | -1 | 22 | |
Identifiable operating assets | 6,944 | 7,156 | 6,975 |
Noncurrent investments | 8,718 | 9,183 | 8,781 |
Productivity, integration and restructuring initiatives | 34 | 42 | |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 72 | 6 | |
Bottling investments [Member] | Venezuelan subsidiary | |||
Net operating revenues: | |||
Remeasurement Charges on Subsidiary Assets | 21 | ||
Corporate | |||
Net operating revenues: | |||
Third party | 40 | 33 | |
Intersegment | 0 | 0 | |
Total net revenues | 40 | 33 | |
Operating Income (Loss) | -346 | -273 | |
Income (loss) before income taxes | -651 | -508 | |
Identifiable operating assets | 28,188 | 26,745 | 29,482 |
Noncurrent investments | 3,084 | 1,893 | 2,711 |
Productivity, integration and restructuring initiatives | 20 | 4 | |
Valuation of shares in equity method investee gains/ (loss) | -6 | -32 | |
Gains (Losses) on Extinguishment of Debt | -320 | ||
Income (expenses) related to subsidiary events | -102 | ||
Remeasurement on previously held equity interest | 19 | ||
Corporate | Venezuelan subsidiary | |||
Net operating revenues: | |||
Remeasurement Charges on Subsidiary Assets | 27 | 226 | |
Intersegment Eliminations [Member] | |||
Net operating revenues: | |||
Third party | 0 | 0 | |
Intersegment | -309 | -300 | |
Total net revenues | -309 | -300 | |
Operating Income (Loss) | 0 | 0 | |
Income (loss) before income taxes | 0 | 0 | |
Identifiable operating assets | 0 | 0 | 0 |
Noncurrent investments | $0 | $0 | $0 |