Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 03, 2015 | Jul. 27, 2015 | |
Entity Registrant Name | COCA COLA CO | |
Entity Central Index Key | 21,344 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 3, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 4,350,003,656 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | ||
NET OPERATING REVENUES | $ 12,156 | $ 12,574 | $ 22,867 | $ 23,150 | |
Cost of goods sold | 4,748 | 4,819 | 8,851 | 8,902 | |
GROSS PROFIT | 7,408 | 7,755 | 14,016 | 14,248 | |
Selling, general and administrative expenses | 4,204 | 4,384 | 8,283 | 8,373 | |
Other operating charges | 669 | 201 | 902 | 329 | |
OPERATING INCOME | 2,535 | 3,170 | 4,831 | 5,546 | |
Interest income | 149 | 144 | 304 | 267 | |
Interest expense | 128 | 107 | 575 | 231 | |
Equity income (loss) - net | 200 | 254 | 202 | 325 | |
Other income (loss) - net | 1,605 | (77) | 1,580 | (318) | |
INCOME BEFORE INCOME TAXES | 4,361 | 3,384 | 6,342 | 5,589 | |
Income taxes | 1,250 | 779 | 1,665 | 1,358 | |
CONSOLIDATED NET INCOME | 3,111 | 2,605 | 4,677 | 4,231 | |
Less: Net income attributable to noncontrolling interests | 3 | 10 | 12 | 17 | |
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $ 3,108 | $ 2,595 | $ 4,665 | $ 4,214 | |
BASIC NET INCOME PER SHARE (in dollars per share) | [1] | $ 0.71 | $ 0.59 | $ 1.07 | $ 0.96 |
DILUTED NET INCOME PER SHARE (in dollars per share) | [1] | 0.71 | 0.58 | 1.06 | 0.95 |
DIVIDENDS PER SHARE (in dollars per share) | $ 0.330 | $ 0.305 | $ 0.660 | $ 0.610 | |
AVERAGE SHARES OUTSTANDING (in shares) | 4,355 | 4,391 | 4,360 | 4,396 | |
Effect of dilutive securities (in shares) | 53 | 63 | 55 | 63 | |
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares) | 4,408 | 4,454 | 4,415 | 4,459 | |
[1] | Calculated based on net income attributable to shareowners of The Coca-Cola Company. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Equity Component [Domain] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
CONSOLIDATED NET INCOME | $ 3,111 | $ 2,605 | $ 4,677 | $ 4,231 |
Other comprehensive income: | ||||
Net foreign currency translation adjustment | (792) | 337 | (2,278) | (52) |
Net gain (loss) on derivatives | (33) | (81) | 301 | (180) |
Net unrealized gain (loss) on available-for-sale securities | (882) | 334 | (1,093) | 649 |
Net change in pension and other benefit liabilities | 40 | 17 | 105 | 24 |
TOTAL COMPREHENSIVE INCOME | 1,444 | 3,212 | 1,712 | 4,672 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 3 | 9 | 6 | 12 |
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $ 1,441 | $ 3,203 | $ 1,706 | $ 4,660 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jul. 03, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 8,805 | $ 8,958 |
Short-term investments | 8,709 | 9,052 |
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 17,514 | 18,010 |
Marketable securities | 3,433 | 3,665 |
Trade accounts receivable, less allowances of $363 and $331, respectively | 4,976 | 4,466 |
Inventories | 3,224 | 3,100 |
Prepaid expenses and other assets | 3,159 | 3,066 |
Assets held for sale | 497 | 679 |
TOTAL CURRENT ASSETS | 32,803 | 32,986 |
EQUITY METHOD INVESTMENTS | 12,771 | 9,947 |
OTHER INVESTMENTS | 3,002 | 3,678 |
OTHER ASSETS | 4,517 | 4,407 |
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation of $10,921 and $10,625, respectively | 14,365 | 14,633 |
TRADEMARKS WITH INDEFINITE LIVES | 6,085 | 6,533 |
BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES | 7,313 | 6,689 |
GOODWILL | 11,706 | 12,100 |
OTHER INTANGIBLE ASSETS | 976 | 1,050 |
TOTAL ASSETS | 93,538 | 92,023 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 9,997 | 9,234 |
Loans and notes payable | 16,306 | 19,130 |
Current maturities of long-term debt | 2,031 | 3,552 |
Accrued income taxes | 437 | 400 |
Liabilities held for sale | 81 | 58 |
TOTAL CURRENT LIABILITIES | 28,852 | 32,374 |
LONG-TERM DEBT | 25,977 | 19,063 |
OTHER LIABILITIES | 4,283 | 4,389 |
DEFERRED INCOME TAXES | 5,785 | 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 | 13,486 | 13,154 |
Reinvested earnings | 65,196 | 63,408 |
Accumulated other comprehensive income (loss) | (8,736) | (5,777) |
Treasury stock, at cost — 2,691 and 2,674 shares, respectively | (43,288) | (42,225) |
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 28,418 | 30,320 |
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 223 | 241 |
TOTAL EQUITY | 28,641 | 30,561 |
TOTAL LIABILITIES AND EQUITY | $ 93,538 | $ 92,023 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS Parentheticals - USD ($) shares in Millions, $ in Millions | Jul. 03, 2015 | Dec. 31, 2014 |
Allowance for Doubtful Accounts | $ 363 | $ 331 |
Accumulated Depreciation | $ 10,921 | $ 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 | 2,691 | 2,674 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jul. 03, 2015 | Jun. 27, 2014 | |
OPERATING ACTIVITIES | ||
Consolidated net income | $ 4,677 | $ 4,231 |
Depreciation and amortization | 961 | 967 |
Stock-based compensation expense | 117 | 112 |
Deferred income taxes | 643 | (67) |
Equity (income) loss - net of dividends | (44) | (124) |
Foreign currency adjustments | (144) | 260 |
Significant (gains) losses on sales of assets - net | (1,346) | 140 |
Other operating charges | 609 | 120 |
Other items | 609 | 6 |
Net change in operating assets and liabilities | (964) | (1,175) |
Net cash provided by operating activities | 5,118 | 4,470 |
INVESTING ACTIVITIES | ||
Purchases of investments | (6,981) | (7,895) |
Proceeds from disposals of investments | 6,316 | 6,192 |
Acquisitions of businesses, equity method investments and nonmarketable securities | (2,284) | (332) |
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 413 | 45 |
Purchases of property, plant and equipment | (1,114) | (1,030) |
Proceeds from disposals of property, plant and equipment | 33 | 134 |
Other investing activities | (139) | (242) |
Net cash provided by (used in) investing activities | (3,756) | (3,128) |
FINANCING ACTIVITIES | ||
Issuances of debt | 24,878 | 21,267 |
Payments of debt | (22,358) | (18,122) |
Issuances of stock | 410 | 650 |
Purchases of stock for treasury | (1,298) | (1,953) |
Dividends | (2,877) | (1,342) |
Other financing activities | 115 | (438) |
Net cash provided by (used in) financing activities | (1,130) | 62 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (385) | (200) |
CASH AND CASH EQUIVALENTS | ||
Net increase (decrease) during the period | (153) | 1,204 |
Balance at beginning of period | 8,958 | 10,414 |
Balance at end of period | $ 8,805 | $ 11,618 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 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 and six months ended July 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 second quarter of 2015 and 2014 ended on July 3, 2015 and June 27, 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. During the three months ended April 3, 2015, management determined that the SIMADI rate as of April 3, 2015 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. During the three months ended July 3, 2015 , the Company continued to use the SIMADI rate to remeasure the net monetary assets of our Venezuelan subsidiary. As of July 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 $84 million . Included in this combined value is $13 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 that has operations in Venezuela. 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 July 9, 2015, the FASB decided to defer the effective date of ASU 2014-09 by one year, however, early adoption as of the original effective date will be permitted. 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 | 6 Months Ended |
Jul. 03, 2015 | |
Acquisition and Divestures [Abstract] | |
Acquisition and Divestitures [Text Block] | ACQUISITIONS AND DIVESTITURES Acquisitions During the six months ended July 3, 2015 , our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 2,284 million , which primarily related to our strategic partnership with Monster Beverage Corporation ("Monster") and an investment in a bottling partner in Indonesia that is accounted for under the equity method of accounting. The bottling partner in Indonesia is a subsidiary of 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 six months ended July 3, 2015 . This bottler will be included in the Coca-Cola Beverages Africa Limited transaction discussed further below. During the six months ended June 27, 2014 , our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 332 million , which primarily included a joint investment with one of our bottling partners in a dairy company in Ecuador, which is accounted for under the equity method of accounting. Monster Beverage Corporation On August 14, 2014, the Company and Monster entered into definitive agreements for a long-term strategic relationship in the global energy drink category. The transaction contemplated under these agreements (the "Monster Transaction") closed on June 12, 2015. As a result of the Monster Transaction, (1) the Company purchased 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); (2) the Company sold its global energy drink business (including NOS, Full Throttle, Burn, Mother, Play and Power Play, and Relentless) to Monster, and the Company acquired Monster's non-energy drink business (including Hansen's Natural Sodas, Peace Tea, Hubert's Lemonade and Hansen's Juice Products); and (3) the parties amended their distribution coordination agreements to expand distribution of Monster products into additional territories pursuant to long-term agreements with the Company's existing network of Company-owned or -controlled bottling operations and distribution partners. The Coca-Cola system also became Monster's preferred global distribution partner. The Company made a net cash payment of $2,150 million to Monster, of which $125 million is being 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 Monster Transaction consisted of multiple elements including the purchase of common stock, the acquisition and divestiture of businesses and the expansion of distribution territories. When consideration transferred is not solely in the form of cash, measurement is based on either the cost to the acquiring entity (the fair value of the assets given) or the fair value of the assets acquired, whichever is more clearly evident and, thus, more reliably measurable. As the majority of the consideration transferred was cash, we believe the fair value of the consideration transferred is more reliably measurable. The consideration transferred consists of $2,150 million of cash (including $125 million in escrow) and the fair value of our global energy business of $ 2,046 million , which we determined using discounted cash flow analyses, resulting in total consideration transferred of $ 4,196 million . As such, we have allocated the total consideration transferred to the individual assets and business acquired based on a relative fair value basis, using the closing date fair values of each element, as follows (in millions): June 12, 2015 Equity investment in Monster $ 3,066 Expansion of distribution territories 1,035 Monster non-energy drink business 95 Total assets and business acquired $ 4,196 In addition to our ownership of 16.7 percent of Monster's outstanding common stock, the Company is represented by two directors on Monster's 10 member Board of Directors. Based on our equity ownership percentage, the significance that our expanded distribution and coordination agreements have on Monster's operations, and our representation on Monster's Board of Directors, the Company is accounting for its interest in Monster as an equity method investment. As a result of the Monster Transaction, the North America Coca-Cola system obtained the right to distribute Monster products in territories for which it was not previously the authorized distributor ("expanded territories"). These distribution rights are governed by an agreement with an initial term of 20 years , after which it will continue to remain in effect unless otherwise terminated by either party and there are no future costs of renewal. 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"), is the distributor in the majority of the expanded territories. The remainder of the territories are serviced by independent bottling partners. Of the $1,035 million allocated to the expanded distribution rights, the Company derecognized $341 million related to the expanded territories serviced by the independent bottling partners. As consideration for these rights, the Company received an up-front payment of $28 million and we will receive a payment per case on all future sales made by these independent bottlers for the duration of the distribution agreements. As these payments are dependent on future sales, they are a form of contingent consideration. We elected to account for this consideration in the same manner as the contingent consideration to be received in the North America refranchising, discussed below. This resulted in a net loss of $313 million recorded in the line item other income (loss) — net in our condensed consolidated statement of income. The remaining carrying value of the expanded distribution rights retained by CCR is $694 million . These rights were determined to be indefinite-lived intangible assets and are classified in the line item bottlers’ franchise rights with indefinite lives in our condensed consolidated balance sheet. The Company recognized a gain of $1,715 million on the sale of our global energy drink business, primarily due to the difference in the recorded carrying value of the assets transferred, including an allocated portion of goodwill, compared to the value of the total assets and business acquired. After considering the loss resulting from the derecognition of the expanded territory rights serviced by the independent bottling partners, the net gain recognized on the Monster Transaction was $1,402 million , which was recorded in the line item other income (loss) — net in our condensed consolidated statement of income. Additionally, under the terms of the Monster Transaction, we are required to discontinue selling energy products under certain trademarks including one trademark in the glacéau portfolio. The Company recognized an impairment charge of $380 million upon closing, primarily related to the discontinuation of the energy products in the glacéau portfolio, which was recorded in the line item other operating charges in our condensed consolidated statement of income. During the six months ended July 3, 2015 , based on the relative fair values of the total assets and business acquired, $1,620 million of the $2,150 million cash payment made was classified in the line item acquisitions of businesses, equity method investments and nonmarketable securities in our condensed consolidated statement of cash flows. The remaining $530 million was classified in the line item other investing activities in our condensed consolidated statement of cash flows. 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 Kold TM at-home beverage system. Under the agreement, the companies will cooperate to bring the Keurig Kold TM 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 six months ended July 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. 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 six months ended June 27, 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 six months ended July 3, 2015 , proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $413 million , related to proceeds from the refranchising of certain of our territories in North America and 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. During the six months ended June 27, 2014 , proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $45 million , which represented the proceeds from the refranchising of certain of our territories in North America. North America Refranchising In conjunction with implementing a new beverage partnership model in North America, the Company refranchised territories that were previously managed by CCR to certain of our unconsolidated bottling partners. These territories generally 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 generally 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 six months ended July 3, 2015 and June 27, 2014 , cash proceeds from these sales totaled $216 million and $45 million , respectively. Included in the cash proceeds for the six months ended July 3, 2015 and June 27, 2014 was $51 million and $12 million , respectively, 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 losses of $12 million and $33 million during the three and six months ended July 3, 2015 , respectively. During the three and six months ended June 27, 2014 , the Company recognized a loss of $140 million . These losses primarily related to the derecognition of the intangible assets transferred and were 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 six months ended July 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 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 July 3, 2015 , our South African bottling operations, including the newly acquired South African bottler, and a related equity method investment 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. 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 sheets (in millions): July 3, 2015 December 31, 2014 Cash, cash equivalents and short-term investments $ 31 $ 30 Trade accounts receivable, less allowances 52 100 Inventories 32 54 Prepaid expenses and other assets 15 7 Equity method investments 106 141 Other assets 1 3 Property, plant and equipment — net 175 303 Trademarks with indefinite lives — 43 Bottlers' franchise rights with indefinite lives — 410 Goodwill 5 46 Other intangible assets 80 36 Allowance for reduction of assets held for sale — (494 ) Total assets $ 497 1 $ 679 2 Accounts payable and accrued expenses $ 29 $ 48 Long-term debt 43 — Other liabilities 3 6 Deferred income taxes 6 4 Total liabilities $ 81 $ 58 1 Consists of total assets relating to Coca-Cola Beverages Africa Limited of $423 million and other assets held for sale of $74 million , which are included in the 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 Consists of total assets relating to North America refranchising of $223 million , Coca-Cola Beverages Africa Limited of $333 million the Monster Transaction of $43 million , and other assets held for sale of $80 million , which 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 | 6 Months Ended |
Jul. 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 July 3, 2015 and December 31, 2014 , our trading securities had a fair value of $ 346 million and $ 409 million , respectively, and consisted primarily of equity securities. The Company had net unrealized gains on trading securities of $ 38 million and $ 40 million as of July 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): July 3, December 31, Marketable securities $ 252 $ 315 Other assets 94 94 Total trading securities $ 346 $ 409 Available-for-Sale and Held-to-Maturity Securities As of July 3, 2015 and December 31, 2014 , the Company did not have any held-to-maturity securities. As of July 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 $ 3,420 $ 431 $ (456 ) 2 $ 3,395 Debt securities 3,416 55 (10 ) 3,461 Total available-for-sale securities $ 6,836 $ 486 $ (466 ) $ 6,856 1 Refer to Note 14 for additional information related to the estimated fair value. 2 Included in the gross unrealized losses is $431 million related to our investment in Keurig. 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 July 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, including Keurig, 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 Six Months Ended July 3, June 27, July 3, June 27, Gross gains $ 7 $ 13 $ 41 $ 16 Gross losses (5 ) (9 ) (12 ) (13 ) Proceeds 862 817 2,304 2,182 The Company uses two 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 July 3, 2015 and December 31, 2014 , the Company's available-for-sale securities included solvency capital funds of $ 719 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): July 3, December 31, Cash and cash equivalents $ 27 $ 43 Marketable securities 3,181 3,350 Other investments 2,814 3,512 Other assets 834 974 Total available-for-sale securities $ 6,856 $ 7,879 The contractual maturities of these available-for-sale securities as of July 3, 2015 were as follows (in millions): Cost Fair Value Within 1 year $ 1,204 $ 1,204 After 1 year through 5 years 1,767 1,787 After 5 years through 10 years 119 134 After 10 years 326 336 Equity securities 3,420 3,395 Total available-for-sale securities $ 6,836 $ 6,856 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 July 3, 2015 and December 31, 2014 . Our cost method investments had a carrying value of $ 188 million and $ 166 million as of July 3, 2015 and December 31, 2014 , respectively. |
Inventories
Inventories | 6 Months Ended |
Jul. 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): July 3, December 31, Raw materials and packaging $ 1,671 $ 1,615 Finished goods 1,206 1,134 Other 347 351 Total inventories $ 3,224 $ 3,100 |
Hedging Transactions and Deriva
Hedging Transactions and Derivative Financial Instruments | 6 Months Ended |
Jul. 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 Value 1,2 Derivatives Designated as Hedging Instruments Balance Sheet Location 1 July 3, December 31, 2014 Assets: Foreign currency contracts Prepaid expenses and other assets $ 655 $ 923 Foreign currency contracts Other assets 560 346 Interest rate contracts Prepaid expenses and other assets 6 14 Interest rate contracts Other assets 93 146 Total assets $ 1,314 $ 1,429 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 24 $ 24 Foreign currency contracts Other liabilities 16 249 Commodity contracts Accounts payable and accrued expenses — 1 Interest rate contracts Accounts payable and accrued expenses 11 11 Interest rate contracts Other liabilities 226 35 Total liabilities $ 277 $ 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 Value 1,2 Derivatives Not Designated as Hedging Instruments Balance Sheet Location 1 July 3, December 31, 2014 Assets: Foreign currency contracts Prepaid expenses and other assets $ 28 $ 44 Foreign currency contracts Other assets 253 231 Commodity contracts Prepaid expenses and other assets 38 9 Commodity contracts Other assets — 1 Other derivative instruments Prepaid expenses and other assets 3 14 Other derivative instruments Other assets 2 2 Total assets $ 324 $ 301 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 44 $ 33 Foreign currency contracts Other liabilities 3 21 Commodity contracts Accounts payable and accrued expenses 120 156 Commodity contracts Other liabilities 12 17 Interest rate contracts Other liabilities 2 2 Other derivative instruments Accounts payable and accrued expenses 21 11 Total liabilities $ 202 $ 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 $ 12,231 million and $ 13,224 million as of July 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 six months ended July 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 six months ended June 27, 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 July 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 July 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 July 3, 2015 (in millions): Gain (Loss) Recognized in Other Comprehensive Income ("OCI") Location of Gain (Loss) Recognized in Income 1 Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency contracts $ (38 ) Net operating revenues $ 178 $ — 2 Foreign currency contracts 11 Cost of goods sold 16 — 2 Foreign currency contracts — Interest expense (2 ) — Interest rate contracts 168 Interest expense — — Commodity contracts — Cost of goods sold (1 ) — Total $ 141 $ 191 $ — 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 six months ended July 3, 2015 (in millions): Gain (Loss) Recognized in OCI Location of Gain (Loss) Recognized in Income 1 Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency contracts $ 726 Net operating revenues $ 298 $ — 2 Foreign currency contracts 30 Cost of goods sold 28 — 2 Foreign currency contracts 18 Interest expense (4 ) — Interest rate contracts 36 Interest expense (3 ) — Commodity contracts (1 ) Cost of goods sold (1 ) — Total $ 809 $ 318 $ — 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 June 27, 2014 (in millions): Gain (Loss) Recognized in OCI Location of Gain (Loss) Recognized in Income 1 Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency contracts $ (50 ) Net operating revenues $ 18 $ — 2 Foreign currency contracts (9 ) Cost of goods sold 7 — 2 Interest rate contracts (40 ) Interest expense — — Commodity contracts (1 ) Cost of goods sold — — Total $ (100 ) $ 25 $ — 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 six months ended June 27, 2014 (in millions): Gain (Loss) Recognized in OCI Location of Gain (Loss) Recognized in Income 1 Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency contracts $ (112 ) Net operating revenues $ 43 $ — 2 Foreign currency contracts (21 ) Cost of goods sold 20 — 2 Interest rate contracts (91 ) Interest expense — — Commodity contracts 1 Cost of goods sold 1 — Total $ (223 ) $ 64 $ — 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 July 3, 2015 , the Company estimates that it will reclassify into earnings during the next 12 months $625 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 July 3, 2015 , such adjustments had cumulatively decreased the carrying value of our long-term debt by $ 132 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 $ 8,512 million and $6,600 million as of July 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 $ 982 million and $ 1,358 million as of July 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 July 3, 2015 and June 27, 2014 (in millions): Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income 1 Three Months Ended July 3, June 27, Interest rate contracts Interest expense $ (251 ) $ 21 Fixed-rate debt Interest expense 250 (12 ) Net impact to interest expense $ (1 ) $ 9 Foreign currency contracts Other income (loss) — net $ 23 $ (37 ) Available-for-sale securities Other income (loss) — net (26 ) 30 Net impact to other income (loss) — net $ (3 ) $ (7 ) 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. 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 six months ended July 3, 2015 and June 27, 2014 (in millions): Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income 1 Six Months Ended July 3, June 27, Interest rate contracts Interest expense $ (222 ) $ 26 Fixed-rate debt Interest expense 231 (15 ) Net impact to interest expense $ 9 $ 11 Foreign currency contracts Other income (loss) — net $ 135 $ (19 ) Available-for-sale securities Other income (loss) — net (144 ) 8 Net impact to other income (loss) — net $ (9 ) $ (11 ) Net impact of fair value hedging instruments $ — $ — 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 six months ended July 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 translation adjustment, 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 adjustment, 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 Six Months Ended July 3, December 31, July 3, June 27, July 3, June 27, Foreign currency contracts $ 1,847 $ 2,047 $ (18 ) $ (74 ) $ 406 $ (142 ) Foreign currency denominated debt 11,396 — (356 ) — (282 ) — Total $ 13,243 $ 2,047 $ (374 ) $ (74 ) $ 124 $ (142 ) The Company did not reclassify any deferred gains or losses related to net investment hedges from AOCI into earnings during the three and six months ended July 3, 2015 and June 27, 2014 . In addition, the Company did not have any ineffectiveness related to net investment hedges during the three and six months ended July 3, 2015 and June 27, 2014 . The cash inflows and outflows associated with the Company's derivative contracts designated as net investment hedges are classified in the line item other investing activities in our condensed consolidated statements of cash flows. Economic (Nondesignated) Hedging Strategy In addition to derivative instruments that are designated and qualify for hedge accounting, the Company also uses certain derivatives as economic hedges to primarily manage foreign currency, interest rate and commodity exposure. Although these derivatives were not designated and/or did not qualify for hedge accounting, they are effective economic hedges. The changes in fair values of economic hedges are immediately recognized into earnings. The Company uses foreign currency economic hedges to offset the earnings impact that fluctuations in foreign currency exchange rates have on certain monetary assets and liabilities denominated in nonfunctional currencies. The changes in fair values of economic hedges used to offset those monetary assets and liabilities are immediately recognized into earnings in the line item other income (loss) — net in our condensed consolidated statements of income. In addition, we use foreign currency economic hedges to minimize the variability in cash flows associated with fluctuations in foreign currency exchange rates. The changes in fair values of economic hedges used to offset the variability in U.S. dollar net cash flows are recognized into earnings in the line items net operating revenues or cost of goods sold in our condensed consolidated statements of income, as applicable. The total notional values of derivatives related to our foreign currency economic hedges were $ 4,284 million and $ 4,334 million as of July 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 $ 1,090 million and $ 816 million as of July 3, 2015 and December 31, 2014 , respectively. The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions): Three Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income July 3, June 27, Foreign currency contracts Net operating revenues $ — $ (6 ) Foreign currency contracts Other income (loss) — net (32 ) 21 Foreign currency contracts Cost of goods sold 1 — Commodity contracts Net operating revenues 4 2 Commodity contracts Cost of goods sold 5 13 Commodity contracts Selling, general and administrative expenses 6 4 Other derivative instruments Selling, general and administrative expenses 1 17 Other derivative instruments Other income (loss) — net 6 8 Total $ (9 ) $ 59 Six Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income July 3, June 27, Foreign currency contracts Net operating revenues $ 9 $ (18 ) Foreign currency contracts Other income (loss) — net (49 ) 23 Foreign currency contracts Cost of goods sold 1 — Commodity contracts Net operating revenues 1 — Commodity contracts Cost of goods sold (19 ) 35 Commodity contracts Selling, general and administrative expenses 1 1 Other derivative instruments Selling, general and administrative expenses 1 14 Other derivative instruments Other income (loss) — net (62 ) 8 Total $ (117 ) $ 63 |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 6 Months Ended |
Jul. 03, 2015 | |
Debt and borrowing arrangements | |
Debt and Borrowing Arrangements | DEBT AND BORROWING ARRANGEMENTS During the six months ended July 3, 2015 , the Company issued € 8,500 million of long-term debt. The carrying value of this debt as of July 3, 2015 was $9,421 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 six months ended July 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 | 6 Months Ended |
Jul. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Guarantees As of July 3, 2015 , we were contingently liable for guarantees of indebtedness owed by third parties of $ 557 million , of which $ 256 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 $ 543 million and $ 530 million as of July 3, 2015 and December 31, 2014 , respectively. |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jul. 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): Six Months Ended July 3, 2015 Shareowners of The Coca-Cola Company Noncontrolling Interests Total Consolidated net income $ 4,665 $ 12 $ 4,677 Other comprehensive income: Net foreign currency translation adjustment (2,272 ) (6 ) (2,278 ) Net gain (loss) on derivatives 1 301 — 301 Net unrealized gain (loss) on available-for-sale securities 2 (1,093 ) — (1,093 ) Net change in pension and other benefit liabilities 105 — 105 Total comprehensive income $ 1,706 $ 6 $ 1,712 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 July 3, 2015 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustment arising during the period $ (946 ) $ 154 $ (792 ) Reclassification adjustments recognized in net income — — — Net foreign currency translation adjustments (946 ) 154 (792 ) Derivatives: Unrealized gains (losses) arising during the period 137 (52 ) 85 Reclassification adjustments recognized in net income (191 ) 73 (118 ) Net gain (loss) on derivatives 1 (54 ) 21 (33 ) Available-for-sale securities: Unrealized gains (losses) arising during the period (1,116 ) 236 (880 ) Reclassification adjustments recognized in net income (2 ) — (2 ) Net change in unrealized gain (loss) on available-for-sale securities 2 (1,118 ) 236 (882 ) Pension and other benefit liabilities: Net pension and other benefits arising during the period 8 1 9 Reclassification adjustments recognized in net income 48 (17 ) 31 Net change in pension and other benefit liabilities 3 56 (16 ) 40 Other comprehensive income (loss) attributable to The Coca-Cola Company $ (2,062 ) $ 395 $ (1,667 ) 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. Six Months Ended July 3, 2015 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustment arising during the period $ (2,385 ) $ 64 $ (2,321 ) Reclassification adjustments recognized in net income 63 (14 ) 49 Net foreign currency translation adjustments (2,322 ) 50 (2,272 ) Derivatives: Unrealized gains (losses) arising during the period 806 (308 ) 498 Reclassification adjustments recognized in net income (318 ) 121 (197 ) Net gain (loss) on derivatives 1 488 (187 ) 301 Available-for-sale securities: Unrealized gains (losses) arising during the period (1,428 ) 356 (1,072 ) Reclassification adjustments recognized in net income (29 ) 8 (21 ) Net change in unrealized gain (loss) on available-for-sale securities 2 (1,457 ) 364 (1,093 ) Pension and other benefit liabilities: Net pension and other benefits arising during the period 60 (16 ) 44 Reclassification adjustments recognized in net income 95 (34 ) 61 Net change in pension and other benefit liabilities 3 155 (50 ) 105 Other comprehensive income (loss) attributable to The Coca-Cola Company $ (3,136 ) $ 177 $ (2,959 ) 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 June 27, 2014 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustment arising during the period $ 364 $ (26 ) $ 338 Reclassification adjustments recognized in net income — — — Net foreign currency translation adjustments 364 (26 ) 338 Derivatives: Unrealized gains (losses) arising during the period (102 ) 36 (66 ) Reclassification adjustments recognized in net income (25 ) 10 (15 ) Net gain (loss) on derivatives 1 (127 ) 46 (81 ) Available-for-sale securities: Unrealized gains (losses) arising during the period 488 (150 ) 338 Reclassification adjustments recognized in net income (4 ) — (4 ) Net change in unrealized gain (loss) on available-for-sale securities 2 484 (150 ) 334 Pension and other benefit liabilities: Net pension and other benefits arising during the period 11 (3 ) 8 Reclassification adjustments recognized in net income 15 (6 ) 9 Net change in pension and other benefit liabilities 3 26 (9 ) 17 Other comprehensive income (loss) attributable to The Coca-Cola Company $ 747 $ (139 ) $ 608 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. Six Months Ended June 27, 2014 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustment arising during the period $ (120 ) $ 73 $ (47 ) Reclassification adjustments recognized in net income — — — Net foreign currency translation adjustments (120 ) 73 (47 ) Derivatives: Unrealized gains (losses) arising during the period (225 ) 84 (141 ) Reclassification adjustments recognized in net income (64 ) 25 (39 ) Net gain (loss) on derivatives 1 (289 ) 109 (180 ) Available-for-sale securities: Unrealized gains (losses) arising during the period 968 (316 ) 652 Reclassification adjustments recognized in net income (3 ) — (3 ) Net change in unrealized gain (loss) on available-for-sale securities 2 965 (316 ) 649 Pension and other benefit liabilities: Net pension and other benefits arising during the period 8 (2 ) 6 Reclassification adjustments recognized in net income 29 (11 ) 18 Net change in pension and other benefit liabilities 3 37 (13 ) 24 Other comprehensive income (loss) attributable to The Coca-Cola Company $ 593 $ (147 ) $ 446 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 and six months ended July 3, 2015 (in millions): Amount Reclassified from AOCI into Income Description of AOCI Component Financial Statement Line Item Three Months Ended July 3, 2015 Six Months Ended July 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 $ (178 ) $ (298 ) Foreign currency and commodity contracts Cost of goods sold (15 ) (27 ) Foreign currency contracts Interest expense 2 4 Interest rate contracts Interest expense — 3 Income before income taxes (191 ) (318 ) Income taxes 73 121 Consolidated net income $ (118 ) $ (197 ) Available-for-sale securities: Sale of securities Other income (loss) — net $ (2 ) $ (29 ) Income before income taxes (2 ) (29 ) Income taxes — 8 Consolidated net income $ (2 ) $ (21 ) Pension and other benefit liabilities: Amortization of net actuarial loss * $ 52 $ 104 Amortization of prior service cost (credit) * (4 ) (9 ) Income before income taxes 48 95 Income taxes (17 ) (34 ) Consolidated net income $ 31 $ 61 * 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 | 6 Months Ended |
Jul. 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 Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non- controlling Interests December 31, 2014 $ 30,561 $ 63,408 $ (5,777 ) $ 1,760 $ 13,154 $ (42,225 ) $ 241 Comprehensive income (loss) 1,712 4,665 (2,959 ) — — — 6 Dividends paid/payable to shareowners of The Coca-Cola Company (2,877 ) (2,877 ) — — — — — Dividends paid to noncontrolling interests (21 ) — — — — — (21 ) Business combinations including purchase accounting adjustments (3 ) — — — — — (3 ) Purchases of treasury stock (1,280 ) — — — — (1,280 ) — Impact related to stock compensation plans 549 — — — 332 217 — July 3, 2015 $ 28,641 $ 65,196 $ (8,736 ) $ 1,760 $ 13,486 $ (43,288 ) $ 223 |
Significant Operating and Nonop
Significant Operating and Nonoperating Items | 6 Months Ended |
Jul. 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 July 3, 2015 , the Company recorded other operating charges of $669 million . These charges included $92 million due to the Company's productivity and reinvestment program and $94 million due to the integration of our German bottling and distribution operations. In addition, the Company recorded an impairment charge of $380 million primarily due to the discontinuation of energy products under one of the trademarks included in the glacéau portfolio as a result of the Monster Transaction. The remaining carrying value of this trademark as of July 3, 2015 was $ 2.6 billion , which is equal to its fair value. If the future operating results of this trademark do not support the current financial projections or if macroeconomic conditions change causing the cost of capital and/or discount rate to increase without an offsetting increase in the operating results, it is likely that we would be required to recognize an additional impairment charge related to this trademark. The Company also recorded a charge of $100 million related to a cash contribution we made to The Coca-Cola Foundation. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 2 for additional information on the Monster Transaction. Refer to Note 15 for the impact these charges had on our operating segments. During the six months ended July 3, 2015 , the Company recorded other operating charges of $ 902 million . These charges consisted of $ 182 million due to the Company's productivity and reinvestment program and $ 129 million due to the integration of our German bottling and distribution operations. In addition, the Company recorded an impairment charge of $380 million primarily due to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction and incurred a charge of $100 million related to a cash contribution we made to The Coca-Cola Foundation. The Company also incurred a charge of $ 108 million due to the write-down of 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 2 for additional information on the Monster Transaction. 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 June 27, 2014 , the Company incurred other operating charges of $201 million . These charges consisted of $89 million due to the Company's productivity and reinvestment program and $66 million due to the integration of our German bottling and distribution operations. The Company also recorded a loss of $25 million as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. In addition, a charge of $21 million was incurred due to the write-down of receivables from our bottling partner in Venezuela as a result of limited government-approved exchange rate conversion mechanisms. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 1 for additional information on the Venezuelan currency conversion mechanisms. Refer to Note 15 for the impact these charges had on our operating segments. During the six months ended June 27, 2014 , the Company incurred other operating charges of $ 329 million . These charges consisted of $175 million due to the Company's productivity and reinvestment program and $108 million due to the integration of our German bottling and distribution operations. The Company also recorded a loss of $25 million as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. In addition, a charge of $21 million was incurred due to the write-down of receivables from our bottling partner in Venezuela as a result of limited government-approved exchange rate conversion mechanisms. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 1 for additional information on the Venezuelan currency conversion mechanisms. Refer to Note 15 for the impact these charges had on our operating segments. Other Nonoperating Items Interest Expense During the six months ended July 3, 2015 , the Company recorded charges of $320 million due to the early extinguishment of certain long-term debt. 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. Refer to Note 6 for additional information and Note 15 for the impact this charge had on our operating segments. Equity Income (Loss) — Net During the three and six months ended July 3, 2015 , the Company recorded net charges of $9 million and $82 million , respectively. During the three and six months ended June 27, 2014 , the Company recorded net charges of $6 million and $33 million , respectively. 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 July 3, 2015 , the Company recorded a net gain of $1,402 million as a result of the Monster Transaction and charges of $12 million due to the refranchising of certain territories in North America. Additionally, the Company recognized a foreign currency exchange gain of $202 million associated with our euro-denominated debt. Refer to Note 2 for additional information on the Monster Transaction and North America refranchising. Refer to Note 15 for the impact these items had on our operating segments. During the six months ended July 3, 2015 , the Company recorded a net gain of $1,402 million as a result of the Monster Transaction and charges of $33 million due to the refranchising of certain territories in North America. In addition, the Company incurred charges of $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 $282 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 additional information related to the Monster Transaction and 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 additional information related to the charge due to the remeasurement in Venezuela. Refer to Note 15 for the impact these items had on our operating segments. During the three months ended June 27, 2014 , the Company recorded a charge of $140 million primarily related to the refranchising of certain territories in North America. Refer to Note 2 for additional information related to this charge and Note 15 for the impact this charge had on our operating segments. During the six months ended June 27, 2014 , the Company recorded a charge of $140 million primarily related to the refranchising of certain territories in North America. The Company also incurred a charge of $226 million due to the expansion of the Venezuelan government's currency conversion markets. Refer to Note 2 for additional information related to the North America refranchising, Note 1 for additional information related to the change in Venezuelan exchange rates and Note 15 for the impact these charges had on our operating segments. |
Productivity, Integration and R
Productivity, Integration and Restructuring Initiatives | 6 Months Ended |
Jul. 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 and extending it 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 work, an evolution of zero-based budget principles, 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 $ 1,547 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 are primarily related 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 July 3, 2015 (in millions): Accrued Balance April 3, 2015 Costs Incurred Three Months Ended July 3, 2015 Payments Noncash and Exchange Accrued Balance July 3, 2015 Severance pay and benefits $ 184 $ 12 $ (43 ) $ 12 $ 165 Outside services 9 10 (13 ) 1 7 Other direct costs 13 70 (45 ) (25 ) 13 Total $ 206 $ 92 $ (101 ) $ (12 ) $ 185 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 six months ended July 3, 2015 (in millions): Accrued Balance December 31, 2014 Costs Incurred Six Months Ended July 3, 2015 Payments Noncash and Exchange Accrued Balance July 3, 2015 Severance pay and benefits $ 260 $ 34 $ (130 ) $ 1 $ 165 Outside services 4 28 (26 ) 1 7 Other direct costs 21 120 (90 ) (38 ) 13 Total $ 285 $ 182 $ (246 ) $ (36 ) $ 185 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 $94 million and $129 million related to this initiative during the three and six months ended July 3, 2015 , and has incurred total pretax expenses of $ 964 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 $ 127 million and $ 101 million accrued related to these integration costs as of July 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 Postretiremen
Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Jul. 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 July 3, June 27, July 3, June 27, Service cost $ 66 $ 67 $ 7 $ 7 Interest cost 95 102 10 10 Expected return on plan assets (176 ) (180 ) (3 ) (3 ) Amortization of prior service cost (credit) — — (4 ) (4 ) Amortization of net actuarial loss 50 18 2 1 Net periodic benefit cost (credit) $ 35 $ 7 $ 12 $ 11 Special termination benefits 1 9 — — — Settlement charge — 2 — — Total cost (credit) recognized in statements of income $ 44 $ 9 $ 12 $ 11 Pension Benefits Other Benefits Six Months Ended July 3, June 27, July 3, June 27, Service cost $ 133 $ 134 $ 14 $ 13 Interest cost 190 203 19 21 Expected return on plan assets (353 ) (358 ) (6 ) (6 ) Amortization of prior service cost (credit) — (1 ) (9 ) (8 ) Amortization of net actuarial loss 99 36 5 2 Net periodic benefit cost (credit) $ 69 $ 14 $ 23 $ 22 Special termination benefits 1 9 — — — Settlement charge — 2 — — Total cost (credit) recognized in statements of income $ 78 $ 16 $ 23 $ 22 1 The special termination benefits were primarily related to the Company's productivity, restructuring and integration initiatives. Refer to Note 11 for additional information related to our productivity, restructuring and integration initiatives. During the six months ended July 3, 2015 , the Company contributed $ 81 million to our pension plans, and we anticipate making additional contributions of approximately $ 13 million during the remainder of 2015. The Company contributed $ 165 million to our pension plans during the six months ended June 27, 2014 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 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 $1,250 million ( 28.7 percent effective tax rate) and $779 million ( 23.0 percent effective tax rate) during the three months ended July 3, 2015 and June 27, 2014 , respectively. The Company recorded income tax expense of $1,665 million ( 26.3 percent effective tax rate) and $1,358 million ( 24.3 percent effective tax rate) during the six months ended July 3, 2015 and June 27, 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 Six Months Ended July 3, June 27, July 3, June 27, Productivity and reinvestment program $ (33 ) 1 $ (34 ) 8 $ (75 ) 1 $ (66 ) 8 Other productivity, integration and restructuring initiatives — 2 — 9 — 2 — 9 Transaction gains and losses 474 3 (51 ) 10 464 4 (51 ) 10 Certain tax matters 16 5 26 11 — 5 31 11 Other — net (38 ) 6 3 12 (168 ) 7 8 13 1 Related to charges of $92 million and $182 million during the three and six months ended July 3, 2015 , 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 $94 million and $129 million during the three and six months ended July 3, 2015 , 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 a net gain of $1,007 million that primarily consisted of a $1,402 million net gain related to the Monster Transaction, partially offset by a $380 million charge due to the impairment of certain trademark assets and $12 million of charges due to the refranchising of certain territories in North America. Refer to Note 2 and Note 10. 4 Related to a net gain of $961 million that primarily consisted of a $1,402 million net gain related to the Monster Transaction, partially offset by a $380 million charge due to the impairment of certain trademark assets, $33 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. 5 Primarily related to the settlement of certain prior year audit matters and amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. 6 Related to charges of $110 million that primarily included a $100 million cash donation to The Coca-Cola Foundation and a $9 million charge due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. 7 Related to charges of $638 million that primarily consisted of a $100 million cash donation to The Coca-Cola Foundation, $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 $82 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. 8 Related to charges of $89 million and $175 million during the three and six months ended June 27, 2014 , respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. 9 Related to charges of $66 million and $108 million during the three and six months ended June 27, 2014 , respectively. These charges were due to the integration of our German bottling and distribution operations. Refer to Note 10 and Note 11. 10 Related to a charge of $140 million during the three and six months ended June 27, 2014 , which was primarily due to the refranchising of certain North America territories. Refer to Note 2. 11 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. 12 Related to charges of $52 million that consisted of $21 million due to a write-down of receivables from our bottling partner in Venezuela, $25 million due to the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner, and $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. 13 Related to charges of $305 million that consisted of $268 million due to the expansion of the Venezuelan government's currency conversion markets, including a write-down of receivables from our bottling partner in Venezuela, $25 million due to the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner, and $12 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 | 6 Months Ended |
Jul. 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 certain 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 July 3, 2015 (in millions): Level 1 Level 2 Level 3 Netting Adjustment 1 Fair Value Measurements Assets: Trading securities 2 $ 229 $ 114 $ 3 $ — $ 346 Available-for-sale securities 2 3,329 3,415 112 3 — 6,856 Derivatives 4 38 1,600 — (466 ) 5 1,172 6 Total assets $ 3,596 $ 5,129 $ 115 $ (466 ) $ 8,374 Liabilities: Derivatives 4 $ 3 $ 476 $ — $ (365 ) $ 114 6 Total liabilities $ 3 $ 476 $ — $ (365 ) $ 114 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 is obligated to return $101 million in cash collateral it has netted against its net asset derivative position. 6 The Company's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $263 million in the line item prepaid expenses and other assets; $ 909 million in the line item other assets; $ 18 million in the line item accounts payable and accrued expenses; and $ 96 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 Adjustment 1 Fair Value Measurements Assets: Trading securities 2 $ 228 $ 177 $ 4 $ — $ 409 Available-for-sale securities 2 4,116 3,627 136 3 — 7,879 Derivatives 4 9 1,721 — (437 ) 1,293 5 Total assets $ 4,353 $ 5,525 $ 140 $ (437 ) $ 9,581 Liabilities: Derivatives 4 $ 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 and six months ended July 3, 2015 and June 27, 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 and six months ended July 3, 2015 and June 27, 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 are summarized in the table below (in millions): Gains (Losses) Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, Intangible assets $ (380 ) 1 $ — $ (432 ) 2 $ — Investment in formerly unconsolidated subsidiary — — (19 ) 3 — Valuation of shares in equity method investee — — (6 ) 4 — Total $ (380 ) $ — $ (457 ) $ — 1 T he Company recognized an impairment charge of $380 million primarily due to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction. The loss was derived using a discounted cash flow analysis based on Level 3 inputs. Refer to Note 2 and Note 10. 2 The Company recognized a loss of $432 million , which included the $380 million impairment charge primarily due to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction and a $52 million impairment charge on a Venezuelan trademark. The charges were primarily determined by comparing the fair value of the assets to the current carrying value. The fair value of the assets was derived using discounted cash flow analyses based on Level 3 inputs. Refer to Note 1, Note 2 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 July 3, 2015 , the carrying amount and fair value of our long-term debt, including the current portion, were $ 28,008 million and $ 28,266 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 | 6 Months Ended |
Jul. 03, 2015 | |
Operating Segments [Abstract] | |
Operating Segments | OPERATING SEGMENTS Information about our Company's operations as of and for the three months ended July 3, 2015 and June 27, 2014 , by operating segment, is as follows (in millions): Eurasia Europe Latin North Asia Pacific Bottling Corporate Eliminations Consolidated 2015 Net operating revenues: Third party $ 651 $ 1,284 $ 955 $ 5,911 $ 1,413 $ 1,917 $ 25 $ — $ 12,156 Intersegment 7 151 18 6 188 13 — (383 ) — Total net revenues 658 1,435 973 5,917 1,601 1,930 25 (383 ) 12,156 Operating income (loss) 275 836 525 887 761 31 (780 ) — 2,535 Income (loss) before income taxes 287 843 526 874 766 231 834 — 4,361 Identifiable operating assets 1,332 3,282 2,190 33,657 1,880 6,910 28,514 — 77,765 Noncurrent investments 1,110 88 711 45 163 8,507 5,149 — 15,773 2014 Net operating revenues: Third party $ 732 $ 1,385 $ 1,105 $ 5,710 $ 1,550 $ 2,042 $ 50 $ — $ 12,574 Intersegment — 184 13 7 173 18 — (395 ) — Total net revenues 732 1,569 1,118 5,717 1,723 2,060 50 (395 ) 12,574 Operating income (loss) 290 892 633 827 846 38 (356 ) — 3,170 Income (loss) before income taxes 313 904 636 682 851 254 (256 ) — 3,384 Identifiable operating assets 1,411 4,014 2,871 34,426 2,117 7,119 29,073 — 81,031 Noncurrent investments 1,189 115 807 51 149 9,557 2,590 — 14,458 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 July 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 $3 million for Eurasia and Africa, $3 million for Latin America, $ 79 million for North America, $ 2 million for Asia Pacific, $ 95 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 for additional information on each of the Company's productivity, restructuring and integration initiatives. • Operating income (loss) and income (loss) before income taxes were reduced by a $380 million for Corporate due to an impairment charge primarily related to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction. Refer to Note 2 and Note 10. • Operating income (loss) and income (loss) before income taxes were reduced by $100 million for Corporate as a result of a cash donation to The Coca-Cola Foundation. Refer to Note 10. • Income (loss) before income taxes was increased by $1,402 million for Corporate as a result of the Monster Transaction. Refer to Note 2 and Note 10. • Income (loss) before income taxes was reduced by $12 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 $5 million for Europe and $ 4 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10 . During the three months ended June 27, 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 $ 58 million for North America, $ 1 million for Asia Pacific, $ 66 million for Bottling Investments and $ 30 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11 . • Operating income (loss) and income (loss) before income taxes were reduced by $25 million for Bottling Investments as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. Refer to Note 10. • Income (loss) before income taxes was reduced by $21 million for Corporate as a result of a write-down of receivables from our bottling partner in Venezuela due to limited government-approved exchange rate conversion mechanisms. Refer to Note 1 and Note 10. • Income (loss) before income taxes was reduced by $140 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 $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. Information about our Company's operations as of and for the six months ended July 3, 2015 and June 27, 2014 , by operating segment, is as follows (in millions): Eurasia Europe Latin North Asia Pacific Bottling Corporate Eliminations Consolidated 2015 Net operating revenues: Third party $ 1,289 $ 2,352 $ 2,002 $ 11,008 $ 2,569 $ 3,582 $ 65 $ — $ 22,867 Intersegment 7 295 37 10 317 26 — (692 ) — Total net revenues 1,296 2,647 2,039 11,018 2,886 3,608 65 (692 ) 22,867 Operating income (loss) 554 1,552 1,103 1,398 1,305 45 (1,126 ) — 4,831 Income (loss) before income taxes 573 1,567 1,114 1,361 1,314 230 183 — 6,342 2014 Net operating revenues: Third party $ 1,390 $ 2,519 $ 2,199 $ 10,500 $ 2,760 $ 3,699 $ 83 $ — $ 23,150 Intersegment — 343 30 10 278 34 — (695 ) — Total net revenues 1,390 2,862 2,229 10,510 3,038 3,733 83 (695 ) 23,150 Operating income (loss) 593 1,611 1,301 1,255 1,403 12 (629 ) — 5,546 Income (loss) before income taxes 621 1,635 1,303 1,107 1,411 276 (764 ) — 5,589 During the six months ended July 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 $15 million for Eurasia and Africa, $3 million for Latin America, $154 million for North America, $129 million for Bottling Investments and $24 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 $3 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. • Operating income (loss) and income (loss) before income taxes were reduced by a $380 million for Corporate due to an impairment charge primarily related to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction. Refer to Note 2 and Note 10. • Operating income (loss) and income (loss) before income taxes were reduced by $100 million for Corporate as a result of a cash donation to The Coca-Cola Foundation. Refer to Note 10. • Income (loss) before income taxes was increased by $1,402 million for Corporate as a result of the Monster Transaction. Refer to Note 2 and Note 10. • Income (loss) before income taxes was reduced by $33 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. • Income (loss) before income taxes was reduced by $6 million for Europe and $76 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10 . During the six months ended June 27, 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 $133 million for North America, $8 million for Asia Pacific, $108 million for Bottling Investments and $34 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11 . • Operating income (loss) and income (loss) before income taxes were reduced by $25 million for Bottling Investments as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. Refer to Note 10. • Income (loss) before income taxes was reduced by $21 million for Bottling Investments and $247 million for Corporate due to the expansion of the Venezuelan government's currency conversion markets, including a write-down of receivables from our bottling partner in Venezuela as well as our proportionate share of the charge incurred by this bottler, an equity method investee. Refer to Note 1 and Note 10. • Income (loss) before income taxes was reduced by $140 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 $12 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 Accoun22
Summary of Significant Accounting Policies Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 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 and six months ended July 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 second quarter of 2015 and 2014 ended on July 3, 2015 and June 27, 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. During the three months ended April 3, 2015, management determined that the SIMADI rate as of April 3, 2015 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. During the three months ended July 3, 2015 , the Company continued to use the SIMADI rate to remeasure the net monetary assets of our Venezuelan subsidiary. As of July 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 $84 million . Included in this combined value is $13 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 that has operations in Venezuela. |
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 July 9, 2015, the FASB decided to defer the effective date of ASU 2014-09 by one year, however, early adoption as of the original effective date will be permitted. 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 A
Acquisitions and Divestitures Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jul. 03, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Fair Value allocation of a business acquired | As such, we have allocated the total consideration transferred to the individual assets and business acquired based on a relative fair value basis, using the closing date fair values of each element, as follows (in millions): June 12, 2015 Equity investment in Monster $ 3,066 Expansion of distribution territories 1,035 Monster non-energy drink business 95 Total assets and business acquired $ 4,196 |
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 sheets (in millions): July 3, 2015 December 31, 2014 Cash, cash equivalents and short-term investments $ 31 $ 30 Trade accounts receivable, less allowances 52 100 Inventories 32 54 Prepaid expenses and other assets 15 7 Equity method investments 106 141 Other assets 1 3 Property, plant and equipment — net 175 303 Trademarks with indefinite lives — 43 Bottlers' franchise rights with indefinite lives — 410 Goodwill 5 46 Other intangible assets 80 36 Allowance for reduction of assets held for sale — (494 ) Total assets $ 497 1 $ 679 2 Accounts payable and accrued expenses $ 29 $ 48 Long-term debt 43 — Other liabilities 3 6 Deferred income taxes 6 4 Total liabilities $ 81 $ 58 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jul. 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): July 3, December 31, Marketable securities $ 252 $ 315 Other assets 94 94 Total trading securities $ 346 $ 409 |
Available-for-sale securities and held-to-maturity securities | As of July 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 $ 3,420 $ 431 $ (456 ) 2 $ 3,395 Debt securities 3,416 55 (10 ) 3,461 Total available-for-sale securities $ 6,836 $ 486 $ (466 ) $ 6,856 1 Refer to Note 14 for additional information related to the estimated fair value. 2 Included in the gross unrealized losses is $431 million related to our investment in Keurig. 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 Six Months Ended July 3, June 27, July 3, June 27, Gross gains $ 7 $ 13 $ 41 $ 16 Gross losses (5 ) (9 ) (12 ) (13 ) Proceeds 862 817 2,304 2,182 |
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): July 3, December 31, Cash and cash equivalents $ 27 $ 43 Marketable securities 3,181 3,350 Other investments 2,814 3,512 Other assets 834 974 Total available-for-sale securities $ 6,856 $ 7,879 |
Contractual maturity amounts of the investment securities | The contractual maturities of these available-for-sale securities as of July 3, 2015 were as follows (in millions): Cost Fair Value Within 1 year $ 1,204 $ 1,204 After 1 year through 5 years 1,767 1,787 After 5 years through 10 years 119 134 After 10 years 326 336 Equity securities 3,420 3,395 Total available-for-sale securities $ 6,836 $ 6,856 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 03, 2015 | |
Inventories | |
Inventories | Inventories consisted of the following (in millions): July 3, December 31, Raw materials and packaging $ 1,671 $ 1,615 Finished goods 1,206 1,134 Other 347 351 Total inventories $ 3,224 $ 3,100 |
Hedging Transactions and Deri26
Hedging Transactions and Derivative Financial Instruments (Tables) | 6 Months Ended |
Jul. 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 Value 1,2 Derivatives Designated as Hedging Instruments Balance Sheet Location 1 July 3, December 31, 2014 Assets: Foreign currency contracts Prepaid expenses and other assets $ 655 $ 923 Foreign currency contracts Other assets 560 346 Interest rate contracts Prepaid expenses and other assets 6 14 Interest rate contracts Other assets 93 146 Total assets $ 1,314 $ 1,429 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 24 $ 24 Foreign currency contracts Other liabilities 16 249 Commodity contracts Accounts payable and accrued expenses — 1 Interest rate contracts Accounts payable and accrued expenses 11 11 Interest rate contracts Other liabilities 226 35 Total liabilities $ 277 $ 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 Value 1,2 Derivatives Not Designated as Hedging Instruments Balance Sheet Location 1 July 3, December 31, 2014 Assets: Foreign currency contracts Prepaid expenses and other assets $ 28 $ 44 Foreign currency contracts Other assets 253 231 Commodity contracts Prepaid expenses and other assets 38 9 Commodity contracts Other assets — 1 Other derivative instruments Prepaid expenses and other assets 3 14 Other derivative instruments Other assets 2 2 Total assets $ 324 $ 301 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 44 $ 33 Foreign currency contracts Other liabilities 3 21 Commodity contracts Accounts payable and accrued expenses 120 156 Commodity contracts Other liabilities 12 17 Interest rate contracts Other liabilities 2 2 Other derivative instruments Accounts payable and accrued expenses 21 11 Total liabilities $ 202 $ 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 July 3, 2015 (in millions): Gain (Loss) Recognized in Other Comprehensive Income ("OCI") Location of Gain (Loss) Recognized in Income 1 Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency contracts $ (38 ) Net operating revenues $ 178 $ — 2 Foreign currency contracts 11 Cost of goods sold 16 — 2 Foreign currency contracts — Interest expense (2 ) — Interest rate contracts 168 Interest expense — — Commodity contracts — Cost of goods sold (1 ) — Total $ 141 $ 191 $ — 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 six months ended July 3, 2015 (in millions): Gain (Loss) Recognized in OCI Location of Gain (Loss) Recognized in Income 1 Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency contracts $ 726 Net operating revenues $ 298 $ — 2 Foreign currency contracts 30 Cost of goods sold 28 — 2 Foreign currency contracts 18 Interest expense (4 ) — Interest rate contracts 36 Interest expense (3 ) — Commodity contracts (1 ) Cost of goods sold (1 ) — Total $ 809 $ 318 $ — 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 June 27, 2014 (in millions): Gain (Loss) Recognized in OCI Location of Gain (Loss) Recognized in Income 1 Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency contracts $ (50 ) Net operating revenues $ 18 $ — 2 Foreign currency contracts (9 ) Cost of goods sold 7 — 2 Interest rate contracts (40 ) Interest expense — — Commodity contracts (1 ) Cost of goods sold — — Total $ (100 ) $ 25 $ — 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 six months ended June 27, 2014 (in millions): Gain (Loss) Recognized in OCI Location of Gain (Loss) Recognized in Income 1 Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Foreign currency contracts $ (112 ) Net operating revenues $ 43 $ — 2 Foreign currency contracts (21 ) Cost of goods sold 20 — 2 Interest rate contracts (91 ) Interest expense — — Commodity contracts 1 Cost of goods sold 1 — Total $ (223 ) $ 64 $ — 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 July 3, 2015 and June 27, 2014 (in millions): Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income 1 Three Months Ended July 3, June 27, Interest rate contracts Interest expense $ (251 ) $ 21 Fixed-rate debt Interest expense 250 (12 ) Net impact to interest expense $ (1 ) $ 9 Foreign currency contracts Other income (loss) — net $ 23 $ (37 ) Available-for-sale securities Other income (loss) — net (26 ) 30 Net impact to other income (loss) — net $ (3 ) $ (7 ) 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. 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 six months ended July 3, 2015 and June 27, 2014 (in millions): Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income 1 Six Months Ended July 3, June 27, Interest rate contracts Interest expense $ (222 ) $ 26 Fixed-rate debt Interest expense 231 (15 ) Net impact to interest expense $ 9 $ 11 Foreign currency contracts Other income (loss) — net $ 135 $ (19 ) Available-for-sale securities Other income (loss) — net (144 ) 8 Net impact to other income (loss) — net $ (9 ) $ (11 ) Net impact of fair value hedging instruments $ — $ — 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 Six Months Ended July 3, December 31, July 3, June 27, July 3, June 27, Foreign currency contracts $ 1,847 $ 2,047 $ (18 ) $ (74 ) $ 406 $ (142 ) Foreign currency denominated debt 11,396 — (356 ) — (282 ) — Total $ 13,243 $ 2,047 $ (374 ) $ (74 ) $ 124 $ (142 ) |
Schedule of Derivative Instruments Not Designated as Hedging Instruments Gain (Loss) in Statement of Financial Performance [Table Text Block] | The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions): Three Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income July 3, June 27, Foreign currency contracts Net operating revenues $ — $ (6 ) Foreign currency contracts Other income (loss) — net (32 ) 21 Foreign currency contracts Cost of goods sold 1 — Commodity contracts Net operating revenues 4 2 Commodity contracts Cost of goods sold 5 13 Commodity contracts Selling, general and administrative expenses 6 4 Other derivative instruments Selling, general and administrative expenses 1 17 Other derivative instruments Other income (loss) — net 6 8 Total $ (9 ) $ 59 Six Months Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income July 3, June 27, Foreign currency contracts Net operating revenues $ 9 $ (18 ) Foreign currency contracts Other income (loss) — net (49 ) 23 Foreign currency contracts Cost of goods sold 1 — Commodity contracts Net operating revenues 1 — Commodity contracts Cost of goods sold (19 ) 35 Commodity contracts Selling, general and administrative expenses 1 1 Other derivative instruments Selling, general and administrative expenses 1 14 Other derivative instruments Other income (loss) — net (62 ) 8 Total $ (117 ) $ 63 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jul. 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): Six Months Ended July 3, 2015 Shareowners of The Coca-Cola Company Noncontrolling Interests Total Consolidated net income $ 4,665 $ 12 $ 4,677 Other comprehensive income: Net foreign currency translation adjustment (2,272 ) (6 ) (2,278 ) Net gain (loss) on derivatives 1 301 — 301 Net unrealized gain (loss) on available-for-sale securities 2 (1,093 ) — (1,093 ) Net change in pension and other benefit liabilities 105 — 105 Total comprehensive income $ 1,706 $ 6 $ 1,712 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 July 3, 2015 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustment arising during the period $ (946 ) $ 154 $ (792 ) Reclassification adjustments recognized in net income — — — Net foreign currency translation adjustments (946 ) 154 (792 ) Derivatives: Unrealized gains (losses) arising during the period 137 (52 ) 85 Reclassification adjustments recognized in net income (191 ) 73 (118 ) Net gain (loss) on derivatives 1 (54 ) 21 (33 ) Available-for-sale securities: Unrealized gains (losses) arising during the period (1,116 ) 236 (880 ) Reclassification adjustments recognized in net income (2 ) — (2 ) Net change in unrealized gain (loss) on available-for-sale securities 2 (1,118 ) 236 (882 ) Pension and other benefit liabilities: Net pension and other benefits arising during the period 8 1 9 Reclassification adjustments recognized in net income 48 (17 ) 31 Net change in pension and other benefit liabilities 3 56 (16 ) 40 Other comprehensive income (loss) attributable to The Coca-Cola Company $ (2,062 ) $ 395 $ (1,667 ) 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. Six Months Ended July 3, 2015 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustment arising during the period $ (2,385 ) $ 64 $ (2,321 ) Reclassification adjustments recognized in net income 63 (14 ) 49 Net foreign currency translation adjustments (2,322 ) 50 (2,272 ) Derivatives: Unrealized gains (losses) arising during the period 806 (308 ) 498 Reclassification adjustments recognized in net income (318 ) 121 (197 ) Net gain (loss) on derivatives 1 488 (187 ) 301 Available-for-sale securities: Unrealized gains (losses) arising during the period (1,428 ) 356 (1,072 ) Reclassification adjustments recognized in net income (29 ) 8 (21 ) Net change in unrealized gain (loss) on available-for-sale securities 2 (1,457 ) 364 (1,093 ) Pension and other benefit liabilities: Net pension and other benefits arising during the period 60 (16 ) 44 Reclassification adjustments recognized in net income 95 (34 ) 61 Net change in pension and other benefit liabilities 3 155 (50 ) 105 Other comprehensive income (loss) attributable to The Coca-Cola Company $ (3,136 ) $ 177 $ (2,959 ) 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 June 27, 2014 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustment arising during the period $ 364 $ (26 ) $ 338 Reclassification adjustments recognized in net income — — — Net foreign currency translation adjustments 364 (26 ) 338 Derivatives: Unrealized gains (losses) arising during the period (102 ) 36 (66 ) Reclassification adjustments recognized in net income (25 ) 10 (15 ) Net gain (loss) on derivatives 1 (127 ) 46 (81 ) Available-for-sale securities: Unrealized gains (losses) arising during the period 488 (150 ) 338 Reclassification adjustments recognized in net income (4 ) — (4 ) Net change in unrealized gain (loss) on available-for-sale securities 2 484 (150 ) 334 Pension and other benefit liabilities: Net pension and other benefits arising during the period 11 (3 ) 8 Reclassification adjustments recognized in net income 15 (6 ) 9 Net change in pension and other benefit liabilities 3 26 (9 ) 17 Other comprehensive income (loss) attributable to The Coca-Cola Company $ 747 $ (139 ) $ 608 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. Six Months Ended June 27, 2014 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustment arising during the period $ (120 ) $ 73 $ (47 ) Reclassification adjustments recognized in net income — — — Net foreign currency translation adjustments (120 ) 73 (47 ) Derivatives: Unrealized gains (losses) arising during the period (225 ) 84 (141 ) Reclassification adjustments recognized in net income (64 ) 25 (39 ) Net gain (loss) on derivatives 1 (289 ) 109 (180 ) Available-for-sale securities: Unrealized gains (losses) arising during the period 968 (316 ) 652 Reclassification adjustments recognized in net income (3 ) — (3 ) Net change in unrealized gain (loss) on available-for-sale securities 2 965 (316 ) 649 Pension and other benefit liabilities: Net pension and other benefits arising during the period 8 (2 ) 6 Reclassification adjustments recognized in net income 29 (11 ) 18 Net change in pension and other benefit liabilities 3 37 (13 ) 24 Other comprehensive income (loss) attributable to The Coca-Cola Company $ 593 $ (147 ) $ 446 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 and six months ended July 3, 2015 (in millions): Amount Reclassified from AOCI into Income Description of AOCI Component Financial Statement Line Item Three Months Ended July 3, 2015 Six Months Ended July 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 $ (178 ) $ (298 ) Foreign currency and commodity contracts Cost of goods sold (15 ) (27 ) Foreign currency contracts Interest expense 2 4 Interest rate contracts Interest expense — 3 Income before income taxes (191 ) (318 ) Income taxes 73 121 Consolidated net income $ (118 ) $ (197 ) Available-for-sale securities: Sale of securities Other income (loss) — net $ (2 ) $ (29 ) Income before income taxes (2 ) (29 ) Income taxes — 8 Consolidated net income $ (2 ) $ (21 ) Pension and other benefit liabilities: Amortization of net actuarial loss * $ 52 $ 104 Amortization of prior service cost (credit) * (4 ) (9 ) Income before income taxes 48 95 Income taxes (17 ) (34 ) Consolidated net income $ 31 $ 61 * 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) | 6 Months Ended |
Jul. 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 Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non- controlling Interests December 31, 2014 $ 30,561 $ 63,408 $ (5,777 ) $ 1,760 $ 13,154 $ (42,225 ) $ 241 Comprehensive income (loss) 1,712 4,665 (2,959 ) — — — 6 Dividends paid/payable to shareowners of The Coca-Cola Company (2,877 ) (2,877 ) — — — — — Dividends paid to noncontrolling interests (21 ) — — — — — (21 ) Business combinations including purchase accounting adjustments (3 ) — — — — — (3 ) Purchases of treasury stock (1,280 ) — — — — (1,280 ) — Impact related to stock compensation plans 549 — — — 332 217 — July 3, 2015 $ 28,641 $ 65,196 $ (8,736 ) $ 1,760 $ 13,486 $ (43,288 ) $ 223 |
Productivity, Integration and29
Productivity, Integration and Restructuring Initiatives (Tables) | 6 Months Ended |
Jul. 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 July 3, 2015 (in millions): Accrued Balance April 3, 2015 Costs Incurred Three Months Ended July 3, 2015 Payments Noncash and Exchange Accrued Balance July 3, 2015 Severance pay and benefits $ 184 $ 12 $ (43 ) $ 12 $ 165 Outside services 9 10 (13 ) 1 7 Other direct costs 13 70 (45 ) (25 ) 13 Total $ 206 $ 92 $ (101 ) $ (12 ) $ 185 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 six months ended July 3, 2015 (in millions): Accrued Balance December 31, 2014 Costs Incurred Six Months Ended July 3, 2015 Payments Noncash and Exchange Accrued Balance July 3, 2015 Severance pay and benefits $ 260 $ 34 $ (130 ) $ 1 $ 165 Outside services 4 28 (26 ) 1 7 Other direct costs 21 120 (90 ) (38 ) 13 Total $ 285 $ 182 $ (246 ) $ (36 ) $ 185 |
Pension and Other Postretirem30
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jul. 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 July 3, June 27, July 3, June 27, Service cost $ 66 $ 67 $ 7 $ 7 Interest cost 95 102 10 10 Expected return on plan assets (176 ) (180 ) (3 ) (3 ) Amortization of prior service cost (credit) — — (4 ) (4 ) Amortization of net actuarial loss 50 18 2 1 Net periodic benefit cost (credit) $ 35 $ 7 $ 12 $ 11 Special termination benefits 1 9 — — — Settlement charge — 2 — — Total cost (credit) recognized in statements of income $ 44 $ 9 $ 12 $ 11 Pension Benefits Other Benefits Six Months Ended July 3, June 27, July 3, June 27, Service cost $ 133 $ 134 $ 14 $ 13 Interest cost 190 203 19 21 Expected return on plan assets (353 ) (358 ) (6 ) (6 ) Amortization of prior service cost (credit) — (1 ) (9 ) (8 ) Amortization of net actuarial loss 99 36 5 2 Net periodic benefit cost (credit) $ 69 $ 14 $ 23 $ 22 Special termination benefits 1 9 — — — Settlement charge — 2 — — Total cost (credit) recognized in statements of income $ 78 $ 16 $ 23 $ 22 1 The special termination benefits were primarily related to the Company's productivity, restructuring and integration initiatives. Refer to Note 11 for additional information related to our productivity, restructuring and integration initiatives. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jul. 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 Six Months Ended July 3, June 27, July 3, June 27, Productivity and reinvestment program $ (33 ) 1 $ (34 ) 8 $ (75 ) 1 $ (66 ) 8 Other productivity, integration and restructuring initiatives — 2 — 9 — 2 — 9 Transaction gains and losses 474 3 (51 ) 10 464 4 (51 ) 10 Certain tax matters 16 5 26 11 — 5 31 11 Other — net (38 ) 6 3 12 (168 ) 7 8 13 1 Related to charges of $92 million and $182 million during the three and six months ended July 3, 2015 , 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 $94 million and $129 million during the three and six months ended July 3, 2015 , 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 a net gain of $1,007 million that primarily consisted of a $1,402 million net gain related to the Monster Transaction, partially offset by a $380 million charge due to the impairment of certain trademark assets and $12 million of charges due to the refranchising of certain territories in North America. Refer to Note 2 and Note 10. 4 Related to a net gain of $961 million that primarily consisted of a $1,402 million net gain related to the Monster Transaction, partially offset by a $380 million charge due to the impairment of certain trademark assets, $33 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. 5 Primarily related to the settlement of certain prior year audit matters and amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. 6 Related to charges of $110 million that primarily included a $100 million cash donation to The Coca-Cola Foundation and a $9 million charge due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10. 7 Related to charges of $638 million that primarily consisted of a $100 million cash donation to The Coca-Cola Foundation, $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 $82 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. 8 Related to charges of $89 million and $175 million during the three and six months ended June 27, 2014 , respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11. 9 Related to charges of $66 million and $108 million during the three and six months ended June 27, 2014 , respectively. These charges were due to the integration of our German bottling and distribution operations. Refer to Note 10 and Note 11. 10 Related to a charge of $140 million during the three and six months ended June 27, 2014 , which was primarily due to the refranchising of certain North America territories. Refer to Note 2. 11 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. 12 Related to charges of $52 million that consisted of $21 million due to a write-down of receivables from our bottling partner in Venezuela, $25 million due to the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner, and $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. 13 Related to charges of $305 million that consisted of $268 million due to the expansion of the Venezuelan government's currency conversion markets, including a write-down of receivables from our bottling partner in Venezuela, $25 million due to the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner, and $12 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) | 6 Months Ended |
Jul. 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 July 3, 2015 (in millions): Level 1 Level 2 Level 3 Netting Adjustment 1 Fair Value Measurements Assets: Trading securities 2 $ 229 $ 114 $ 3 $ — $ 346 Available-for-sale securities 2 3,329 3,415 112 3 — 6,856 Derivatives 4 38 1,600 — (466 ) 5 1,172 6 Total assets $ 3,596 $ 5,129 $ 115 $ (466 ) $ 8,374 Liabilities: Derivatives 4 $ 3 $ 476 $ — $ (365 ) $ 114 6 Total liabilities $ 3 $ 476 $ — $ (365 ) $ 114 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 is obligated to return $101 million in cash collateral it has netted against its net asset derivative position. 6 The Company's derivative financial instruments are recorded at fair value in our condensed consolidated balance sheet as follows: $263 million in the line item prepaid expenses and other assets; $ 909 million in the line item other assets; $ 18 million in the line item accounts payable and accrued expenses; and $ 96 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 Adjustment 1 Fair Value Measurements Assets: Trading securities 2 $ 228 $ 177 $ 4 $ — $ 409 Available-for-sale securities 2 4,116 3,627 136 3 — 7,879 Derivatives 4 9 1,721 — (437 ) 1,293 5 Total assets $ 4,353 $ 5,525 $ 140 $ (437 ) $ 9,581 Liabilities: Derivatives 4 $ 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 are summarized in the table below (in millions): Gains (Losses) Three Months Ended Six Months Ended July 3, June 27, July 3, June 27, Intangible assets $ (380 ) 1 $ — $ (432 ) 2 $ — Investment in formerly unconsolidated subsidiary — — (19 ) 3 — Valuation of shares in equity method investee — — (6 ) 4 — Total $ (380 ) $ — $ (457 ) $ — 1 T he Company recognized an impairment charge of $380 million primarily due to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction. The loss was derived using a discounted cash flow analysis based on Level 3 inputs. Refer to Note 2 and Note 10. 2 The Company recognized a loss of $432 million , which included the $380 million impairment charge primarily due to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction and a $52 million impairment charge on a Venezuelan trademark. The charges were primarily determined by comparing the fair value of the assets to the current carrying value. The fair value of the assets was derived using discounted cash flow analyses based on Level 3 inputs. Refer to Note 1, Note 2 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) | 6 Months Ended |
Jul. 03, 2015 | |
Segment Reporting Information [Line Items] | |
Operating Segments | Information about our Company's operations as of and for the six months ended July 3, 2015 and June 27, 2014 , by operating segment, is as follows (in millions): Eurasia Europe Latin North Asia Pacific Bottling Corporate Eliminations Consolidated 2015 Net operating revenues: Third party $ 1,289 $ 2,352 $ 2,002 $ 11,008 $ 2,569 $ 3,582 $ 65 $ — $ 22,867 Intersegment 7 295 37 10 317 26 — (692 ) — Total net revenues 1,296 2,647 2,039 11,018 2,886 3,608 65 (692 ) 22,867 Operating income (loss) 554 1,552 1,103 1,398 1,305 45 (1,126 ) — 4,831 Income (loss) before income taxes 573 1,567 1,114 1,361 1,314 230 183 — 6,342 2014 Net operating revenues: Third party $ 1,390 $ 2,519 $ 2,199 $ 10,500 $ 2,760 $ 3,699 $ 83 $ — $ 23,150 Intersegment — 343 30 10 278 34 — (695 ) — Total net revenues 1,390 2,862 2,229 10,510 3,038 3,733 83 (695 ) 23,150 Operating income (loss) 593 1,611 1,301 1,255 1,403 12 (629 ) — 5,546 Income (loss) before income taxes 621 1,635 1,303 1,107 1,411 276 (764 ) — 5,589 Information about our Company's operations as of and for the three months ended July 3, 2015 and June 27, 2014 , by operating segment, is as follows (in millions): Eurasia Europe Latin North Asia Pacific Bottling Corporate Eliminations Consolidated 2015 Net operating revenues: Third party $ 651 $ 1,284 $ 955 $ 5,911 $ 1,413 $ 1,917 $ 25 $ — $ 12,156 Intersegment 7 151 18 6 188 13 — (383 ) — Total net revenues 658 1,435 973 5,917 1,601 1,930 25 (383 ) 12,156 Operating income (loss) 275 836 525 887 761 31 (780 ) — 2,535 Income (loss) before income taxes 287 843 526 874 766 231 834 — 4,361 Identifiable operating assets 1,332 3,282 2,190 33,657 1,880 6,910 28,514 — 77,765 Noncurrent investments 1,110 88 711 45 163 8,507 5,149 — 15,773 2014 Net operating revenues: Third party $ 732 $ 1,385 $ 1,105 $ 5,710 $ 1,550 $ 2,042 $ 50 $ — $ 12,574 Intersegment — 184 13 7 173 18 — (395 ) — Total net revenues 732 1,569 1,118 5,717 1,723 2,060 50 (395 ) 12,574 Operating income (loss) 290 892 633 827 846 38 (356 ) — 3,170 Income (loss) before income taxes 313 904 636 682 851 254 (256 ) — 3,384 Identifiable operating assets 1,411 4,014 2,871 34,426 2,117 7,119 29,073 — 81,031 Noncurrent investments 1,189 115 807 51 149 9,557 2,590 — 14,458 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 Accoun34
Summary of Significant Accounting Policies Hyperinflationary Economies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jul. 03, 2015USD ($) | Apr. 03, 2015USD ($) | Jun. 27, 2014USD ($) | Mar. 28, 2014USD ($) | Jul. 03, 2015USD ($) | Jun. 27, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Impairment charge | $ 380 | $ 0 | $ 432 | $ 0 | ||||
Cash and Cash Equivalents, at Carrying Value | 8,805 | 11,618 | 8,805 | 11,618 | $ 8,958 | $ 10,414 | ||
Venezuelan subsidiary | ||||||||
Impairment charge | $ 52 | |||||||
Net Monetary Assets, Receivables and Intangible Assets | 84 | 84 | ||||||
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 | 226 | ||||||
Accounts Receivable Write-Down | $ 56 | |||||||
SCIAD 2 Rate | 49.9795 | |||||||
SIMADI Rate | 193.0518 | |||||||
Cash and Cash Equivalents, at Carrying Value | 13 | 13 | ||||||
Corporate | ||||||||
Impairment charge | $ 380 | $ 380 | ||||||
Corporate | Venezuelan subsidiary | ||||||||
Remeasurement Charges on Subsidiary Assets | $ 27 | $ 226 | 247 | |||||
Accounts Receivable Write-Down | $ 21 | $ 21 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jul. 03, 2015USD ($)shares | Jun. 27, 2014USD ($) | Jul. 03, 2015USD ($)shares | Jun. 27, 2014USD ($) | Jun. 28, 2013 | Feb. 11, 2015USD ($) | Dec. 31, 2014USD ($)shares | Dec. 31, 2007 | Jun. 12, 2015USD ($) | May. 01, 2014 | Feb. 27, 2014USD ($) | Jul. 03, 2013 | |
Acquisition and investment activities | ||||||||||||
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | $ 413 | $ 45 | ||||||||||
Benefit (charge) due to refranchising of territories | (140) | |||||||||||
Acquisitions of businesses, equity method investments and nonmarketable securities | 2,284 | 332 | ||||||||||
Remeasurement on previously held equity interest | $ 0 | $ 0 | 19 | 0 | ||||||||
Payments for (Proceeds from) Other Investing Activities | 139 | 242 | ||||||||||
Impairment charge on the descontinuation of the energy products | $ 380 | 0 | 432 | 0 | ||||||||
Exercise of Options | 10.00% | |||||||||||
Valuation of shares in equity method investee gains/ (loss) | $ 0 | 0 | (6) | 0 | ||||||||
Total assets | 497 | 497 | $ 679 | |||||||||
Total liabilities | 81 | 81 | 58 | |||||||||
Monster non-energy drink business | $ 6,085 | $ 6,085 | 6,533 | |||||||||
CCEAG [Member] | ||||||||||||
Acquisition and investment activities | ||||||||||||
Put Option Exercise Price | $ 503 | $ 503 | ||||||||||
Ownership Percentage by Parent | 100.00% | 100.00% | ||||||||||
Corporate | ||||||||||||
Acquisition and investment activities | ||||||||||||
Remeasurement on previously held equity interest | $ 19 | |||||||||||
Gain (Loss) on Disposition of Business | $ 1,715 | |||||||||||
Net Gains From Investee Transactions, Equity Investment Sales and other gains | 1,402 | 1,402 | ||||||||||
Impairment charge on the descontinuation of the energy products | $ 380 | 380 | ||||||||||
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% | 11.00% | ||||||||||
Monster Beverage Corporation [Member] | ||||||||||||
Acquisition and investment activities | ||||||||||||
Equity Method Investments, Fair Value Disclosure | $ 3,066 | |||||||||||
Indefinite-Lived Intangible Assets, Net | $ 694 | $ 694 | ||||||||||
Acquisitions of businesses, equity method investments and nonmarketable securities | $ 1,620 | |||||||||||
Equity Method Investments, Percentage | 16.70% | 16.70% | ||||||||||
Term of License Agreement | 20 years | |||||||||||
Finite-lived Intangible Assets Acquired | $ 1,035 | |||||||||||
Payments to Acquire Businesses, Gross | 2,150 | |||||||||||
Payments for (Proceeds from) Other Investing Activities | $ 530 | |||||||||||
Escrow Deposit | 125 | $ 125 | ||||||||||
Other Significant Noncash Transaction, Value of Consideration Given | 2,046 | |||||||||||
Monster non-energy drink business | $ 95 | |||||||||||
Noncash or Part Noncash Acquisition, Value of Assets Acquired | 4,196 | |||||||||||
Keurig Green Mountain, Inc. [Member] | ||||||||||||
Acquisition and investment activities | ||||||||||||
Agreement Term | 10 years | |||||||||||
Available for Sale Securities, Percent | 2.00% | 2.00% | 16.00% | 10.00% | ||||||||
Available for Sale Securities, Equity Securities | $ 830 | $ 302 | $ 830 | $ 302 | $ 1,265 | |||||||
Transaction Costs | $ 14 | |||||||||||
Available for Sale Securities, Shares | shares | 6.4 | 6.4 | 6.5 | |||||||||
Disposal Groups, Including Discontinued Operations, Name [Domain] | ||||||||||||
Acquisition and investment activities | ||||||||||||
Cash, cash equivalents and short-term investments | $ 31 | $ 31 | $ 30 | |||||||||
Trade accounts receivables, less allowances | 52 | 52 | 100 | |||||||||
Inventories | 32 | 32 | 54 | |||||||||
Prepaid expenses and other assets | 15 | 15 | 7 | |||||||||
Equity method investments | 106 | 106 | 141 | |||||||||
Other assets | 1 | 1 | 3 | |||||||||
Property, plant and equipment - net | 175 | 175 | 303 | |||||||||
Bottlers' Franchise Rights with indefinite lives | 0 | 0 | 410 | |||||||||
Trademarks with indefinite lives | 0 | 0 | 43 | |||||||||
Goodwill | 5 | 5 | 46 | |||||||||
Other intangible assets | 80 | 80 | 36 | |||||||||
Allowance for reduction of assets held for sale | 0 | 0 | (494) | |||||||||
Total assets | 497 | 497 | 679 | |||||||||
Accounts payable and accrued expenses | 29 | 29 | 48 | |||||||||
Long-term debt | 43 | 43 | 0 | |||||||||
Other liabilities | 3 | 3 | 6 | |||||||||
Deferred income taxes | 6 | 6 | 4 | |||||||||
Total liabilities | 81 | 81 | 58 | |||||||||
Others [Member] | ||||||||||||
Acquisition and investment activities | ||||||||||||
Total assets | 74 | 74 | 80 | |||||||||
Monster Beverage Corporation [Member] | ||||||||||||
Acquisition and investment activities | ||||||||||||
Benefit (charge) due to refranchising of territories | (313) | |||||||||||
Other intangible assets | 341 | $ 341 | ||||||||||
Proceeds from Sale of Intangible Assets | $ 28 | |||||||||||
Total assets | 43 | |||||||||||
Brazilian Bottling Operation [Member] | ||||||||||||
Acquisition and investment activities | ||||||||||||
Equity Method Investments, Percentage | 34.00% | 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 | $ 216 | 45 | ||||||||||
Benefit (charge) due to refranchising of territories | $ (12) | $ (140) | $ (33) | (140) | ||||||||
Agreement Term | 10 years | |||||||||||
Agreement Renewal Term | 10 years | |||||||||||
Total assets | 223 | |||||||||||
Equity Method Investee [Member] | ||||||||||||
Acquisition and investment activities | ||||||||||||
Proceeds from Sale of Productive Assets | $ 51 | $ 12 | ||||||||||
Coca-Cola Beverage Africa [Member] | ||||||||||||
Acquisition and investment activities | ||||||||||||
Total assets | $ 423 | $ 423 | $ 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 ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Jul. 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 | $ 38 |
Marketable Securities | 315 | 252 |
Other Assets | 94 | 94 |
Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Total trading securities | $ 409 | $ 346 |
Investments (Details 2)
Investments (Details 2) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jul. 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 | $ 6,836 | 6,483 |
Available-for-sale Securities, Gross Unrealized Gain | 486 | 1,531 |
Available-for-sale Securities, Gross Unrealized Losses | (466) | (135) |
Available-for-sale Securities Fair Value | 6,856 | 7,879 |
Equity Securities | ||
Available-for-sale securities, by type | ||
Available-for-sale Securities, Amortized Cost Basis | 3,420 | 2,687 |
Available-for-sale Securities, Gross Unrealized Gain | 431 | 1,463 |
Available-for-sale Securities, Gross Unrealized Losses | (456) | (29) |
Available-for-sale Securities Fair Value | 3,395 | 4,121 |
Debt Securities | ||
Available-for-sale securities, by type | ||
Available-for-sale Securities, Amortized Cost Basis | 3,416 | 3,796 |
Available-for-sale Securities, Gross Unrealized Gain | 55 | 68 |
Available-for-sale Securities, Gross Unrealized Losses | (10) | (106) |
Available-for-sale Securities Fair Value | 3,461 | $ 3,758 |
Monster Beverage Corporation [Member] | ||
Available-for-sale securities, by type | ||
Available-for-sale Securities, Gross Unrealized Losses | $ (431) |
Investments (Details 4)
Investments (Details 4) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||||
Cash and cash equivalents | $ 8,805 | $ 11,618 | $ 8,805 | $ 11,618 | $ 8,958 | $ 10,414 |
Marketable securities | 3,433 | 3,433 | 3,665 | |||
Other investments | 3,002 | 3,002 | 3,678 | |||
Other assets | 4,517 | 4,517 | 4,407 | |||
Available-for-sale Securities Fair Value | 6,856 | 6,856 | 7,879 | |||
Proceeds from Sale of Available-for-sale Securities | 862 | 817 | 2,304 | 2,182 | ||
Available-for-sale Securities Gross Gains | 7 | 13 | 41 | 16 | ||
Available-for-sale Securities Gross Losses | (5) | $ (9) | (12) | $ (13) | ||
Available-for-sale Securities [Member] | ||||||
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||||
Cash and cash equivalents | 27 | 27 | 43 | |||
Marketable securities | 3,181 | 3,181 | 3,350 | |||
Other investments | 2,814 | 2,814 | 3,512 | |||
Other assets | 834 | 834 | 974 | |||
Available-for-sale Securities Fair Value | 6,856 | 6,856 | 7,879 | |||
Solvency capital | $ 719 | $ 719 | $ 836 |
Investments (Details 5)
Investments (Details 5) - USD ($) $ in Millions | Jul. 03, 2015 | Dec. 31, 2014 |
Investments [Abstracts] | ||
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 1,204 | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 1,204 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost Basis | 1,767 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value | 1,787 | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost Basis | 119 | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value | 134 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 326 | |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 336 | |
Available-for-sale Securities, Amortized Cost Basis | 6,836 | $ 6,483 |
Cost Method Investments [Abstract] | ||
Cost-method Investments, Aggregate Carrying Amount | 188 | 166 |
Held-to-maturity securities, by type | ||
Available-for-sale Securities Fair Value | 6,856 | 7,879 |
Equity Securities [Member] | ||
Investments [Abstracts] | ||
Available-for-sale Securities, Amortized Cost Basis | 3,420 | 2,687 |
Held-to-maturity securities, by type | ||
Available-for-sale Securities Fair Value | $ 3,395 | $ 4,121 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jul. 03, 2015 | Dec. 31, 2014 |
Inventory balances | ||
Raw materials and packaging | $ 1,671 | $ 1,615 |
Finished goods | 1,206 | 1,134 |
Other | 347 | 351 |
Total inventories | $ 3,224 | $ 3,100 |
Hedging Transactions and Deri41
Hedging Transactions and Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 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 | $ 141 | $ (100) | $ 809 | $ (223) | |
Net Investment Hedging [Member] | |||||
Derivative Instrument Detail [Abstract] | |||||
Derivative, Notional Amount | 13,243 | 13,243 | $ 2,047 | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (374) | (74) | 124 | (142) | |
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 | 12,231 | 12,231 | 13,224 | ||
Foreign currency contracts | Net Investment Hedging [Member] | |||||
Derivative Instrument Detail [Abstract] | |||||
Derivative, Notional Amount | 1,847 | 1,847 | 2,047 | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (18) | $ (74) | 406 | $ (142) | |
Commodity contracts | Cash Flow Hedging [Member] | |||||
Derivative Instrument Detail [Abstract] | |||||
Derivative, Notional Amount | 6 | 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 | 8,512 | 8,512 | 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 | 1,314 | 1,314 | 1,429 | ||
Derivative instruments, liabilities, fair value | 277 | 277 | 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 | 655 | 655 | 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 | 560 | 560 | 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 | 16 | 16 | 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 | 6 | 6 | 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 | 93 | 93 | 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 | 11 | 11 | 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 | 226 | 226 | 35 | ||
Not Designated as Hedging Instrument [Member] | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative instruments, assets, fair value | 324 | 324 | 301 | ||
Derivative instruments, liabilities, fair value | 202 | 202 | 240 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | |||||
Derivative Instrument Detail [Abstract] | |||||
Derivative, Notional Amount | 4,284 | 4,284 | 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 | 28 | 28 | 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 | 253 | 253 | 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 | 44 | 44 | 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 | 3 | 3 | 21 | ||
Not Designated as Hedging Instrument [Member] | Commodity contracts | |||||
Derivative Instrument Detail [Abstract] | |||||
Derivative, Notional Amount | 1,090 | 1,090 | 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 | 38 | 38 | 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 | 0 | 0 | 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 | 120 | 120 | 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 | 12 | 12 | 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 | 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 | 3 | 3 | 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 | 2 | 2 | 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 | $ 21 | $ 21 | $ 11 |
Hedging Transactions and Deri42
Hedging Transactions and Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 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 | $ 625 | ||||
Fixed-rate debt | |||||
Gains and (losses) related to derivative instruments | |||||
Increase (Decrease) in carrying value due to hedge adjustments | 132 | $ 132 | |||
Cash Flow Hedges | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 141 | $ (100) | 809 | $ (223) | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 191 | 25 | 318 | 64 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 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 | 12,231 | 12,231 | $ 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 | (38) | (50) | 726 | (112) | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 178 | 18 | 298 | 43 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 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 | 11 | (9) | 30 | (21) | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 16 | 7 | 28 | 20 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | |
Cash Flow Hedges | Foreign currency contracts | Other income (loss) - net | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | 18 | |||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (2) | (4) | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | |||
Cash Flow Hedges | Currency Swap [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 2,590 | ||||
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 | 168 | (40) | 36 | (91) | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | 0 | (3) | 0 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | |
Cash Flow Hedges | Commodity contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 6 | 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 | 0 | (1) | (1) | 1 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (1) | 0 | (1) | 1 | |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 0 | |
Fair Value Hedges | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (4) | 2 | 0 | 0 | |
Fair Value Hedges | Other income (loss) - net | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (3) | (7) | (9) | (11) | |
Fair Value Hedges | Interest Expense [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (1) | 9 | 9 | 11 | |
Fair Value Hedges | Fixed-rate debt | Interest Expense [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 250 | (12) | 231 | (15) | |
Fair Value Hedges | Interest Rate Swap [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 8,512 | 8,512 | 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 | (251) | 21 | (222) | 26 | |
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 | 23 | (37) | 135 | (19) | |
Fair Value Hedges | Available-for-sale Securities [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 982 | 982 | 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 | (26) | 30 | (144) | 8 | |
Net Investment Hedges | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 13,243 | 13,243 | 2,047 | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (374) | (74) | 124 | (142) | |
Net Investment Hedges | Foreign currency contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 1,847 | 1,847 | 2,047 | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (18) | (74) | 406 | (142) | |
Net Investment Hedges | Foreign currency denominated debt | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 11,396 | 11,396 | 0 | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (356) | 0 | (282) | 0 | |
Designated as Hedging Instrument [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Liability, Fair Value, Gross Liability | 277 | 277 | 320 | ||
Not Designated as Hedging Instrument [Member] | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Liability, Fair Value, Gross Liability | 202 | 202 | 240 | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (9) | 59 | (117) | 63 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 4,284 | 4,284 | 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 | 0 | (6) | 9 | (18) | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Cost of goods sold | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 1 | 0 | 1 | 0 | |
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 | (32) | 21 | (49) | 23 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative, Notional Amount | 1,090 | 1,090 | 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 | 4 | 2 | 1 | 0 | |
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 | 5 | 13 | (19) | 35 | |
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 | 6 | 4 | 1 | 1 | |
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 | 6 | 8 | (62) | 8 | |
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 | 1 | $ 17 | 1 | $ 14 | |
Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | Foreign currency contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Liability, Fair Value, Gross Liability | 24 | 24 | 24 | ||
Accrued Liabilities [Member] | Designated as Hedging Instrument [Member] | Commodity contracts | |||||
Gains and (losses) related to derivative instruments | |||||
Derivative Liability, Fair Value, Gross Liability | 0 | $ 0 | $ 1 | ||
Foreign currency denominated debt | 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 Arrangemen43
Debt and Borrowing Arrangements (Details) € in Millions, $ in Millions | 6 Months Ended | |||
Jul. 03, 2015USD ($) | Jul. 03, 2015EUR (€) | Jun. 27, 2014USD ($) | Dec. 31, 2014USD ($) | |
Long-term debt | ||||
Issuance of long term debt | € | € 8,500 | |||
Carrying value of Euro debt in USD | $ 28,008 | $ 22,615 | ||
Retirement of long-term debt | 1,500 | |||
Extinguishment of long-term debt | 2,039 | |||
Gains (Losses) on Extinguishment of Debt | (320) | |||
Euro Denominated Debt [Domain] | ||||
Long-term debt | ||||
Carrying value of Euro debt in USD | $ 9,421 | |||
euro notes due 2019 [Member] [Domain] | ||||
Long-term debt | ||||
Issuance of long term debt | € | € 2,000 | |||
Debt Instrument, Basis Spread on Variable Rate | 0.23% | 0.23% | ||
euro notes due 2017[Member] [Domain] | ||||
Long-term debt | ||||
Issuance of long term debt | € | € 2,000 | |||
Debt Instrument, Basis Spread on Variable Rate | 0.15% | 0.15% | ||
euro notes due 2023[Member] [Domain] [Domain] | ||||
Long-term debt | ||||
Issuance of long term debt | € | € 1,500 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.75% | |||
euro notes due at 2027 [Member] [Domain] | ||||
Long-term debt | ||||
Issuance of long term debt | € | 1,500 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.125% | |||
euro notes due 2035 [Member] [Domain] | ||||
Long-term debt | ||||
Issuance of long term debt | € | € 1,500 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.625% | |||
Notes due on November 15 2017 [Domain] | ||||
Long-term debt | ||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.35% | |||
Extinguishment of long-term debt | $ 1,148 | |||
Notes due on March 15 2019 [Domain] [Domain] | ||||
Long-term debt | ||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.875% | |||
Extinguishment of long-term debt | $ 891 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jul. 03, 2015 | Dec. 31, 2014 |
Guarantees of indebtedness owed by third parties | ||
Guarantees | ||
Guarantees of indebtedness owed by third parties | $ 557 | |
VIEs maximum exposures to loss | 256 | |
Risk Management Programs | ||
Risk Management Programs | ||
Self-insurance reserves | $ 543 | $ 530 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Comprehensive Income Disclosure | ||||
Consolidated net income | $ 3,111 | $ 2,605 | $ 4,677 | $ 4,231 |
Other comprehensive income: | ||||
Net foreign currency translation adjustment | (792) | 337 | (2,278) | (52) |
Net gain (loss) on derivatives | (33) | (81) | 301 | (180) |
Net unrealized gain (loss) on available-for-sale securities | (882) | 334 | (1,093) | 649 |
Net change in pension and other benefit liabilities | 40 | 17 | 105 | 24 |
TOTAL COMPREHENSIVE INCOME | 1,444 | 3,212 | 1,712 | 4,672 |
Foreign currency translation adjustments: | ||||
Translation adjustment arising during the period | (946) | 364 | (2,385) | (120) |
Reclassification adjustments recognized in net income | 0 | 0 | 63 | 0 |
Net foreign currency translation adjustments | (946) | 364 | (2,322) | (120) |
Derivatives: | ||||
Unrealized gains (losses) arising during the period | 137 | (102) | 806 | (225) |
Reclassification adjustments recognized in net income | (191) | (25) | (318) | (64) |
Net gain (loss) on derivatives | (54) | (127) | 488 | (289) |
Available-for-sale securities: | ||||
Unrealized gains (losses) arising during the period | (1,116) | 488 | (1,428) | 968 |
Reclassification adjustments recognized in net income | (2) | (4) | (29) | (3) |
Net change in unrealized gain (loss) on available-for-sale securities | (1,118) | 484 | (1,457) | 965 |
Pension and other benefit liabilities: | ||||
Net pension and other benefits arising during the period | 8 | 11 | 60 | 8 |
Reclassification adjustments recognized in net income | 48 | 15 | 95 | 29 |
Net change in pension and other benefit liabilities | 56 | 26 | 155 | 37 |
Other Comprehensive Income (Loss) attributable to The Coca-Cola Company | (2,062) | 747 | (3,136) | 593 |
Foreign currency translation adjustments: | ||||
Translation adjustment arising during the period | 154 | (26) | 64 | 73 |
Reclassification adjustments recognized in net income | 0 | 0 | (14) | 0 |
Net foreign currency translation adjustments | 154 | (26) | 50 | 73 |
Derivatives: | ||||
Unrealized gains (losses) arising during the period | (52) | 36 | (308) | 84 |
Reclassification adjustments recognized in net income | 73 | 10 | 121 | 25 |
Net gain (loss) on derivatives | 21 | 46 | (187) | 109 |
Available-for-sales securities: | ||||
Unrealized gains (losses) arising during the period | 236 | (150) | 356 | (316) |
Reclassification adjustments recognized in net income | 0 | 0 | 8 | 0 |
Net change in unrealized gain (loss) on available-for-sale securities | 236 | (150) | 364 | (316) |
Pension and other benefit liabilities: | ||||
Net pension and other benefits arising during the period | 1 | (3) | (16) | (2) |
Reclassification adjustments recognized in net income | (17) | (6) | (34) | (11) |
Net change in pension and other benefit liabilities | (16) | (9) | (50) | (13) |
Other comprehensive income (loss) attributable to The Coca-Cola Company | 395 | (139) | 177 | (147) |
Foreign currency translation adjustments: | ||||
Translation adjustment arising during the period | (792) | 338 | (2,321) | (47) |
Reclassification adjustments recognized in net income | 0 | 0 | 49 | 0 |
Net foreign currency translation adjustments | (792) | 338 | (2,272) | (47) |
Derivatives: | ||||
Unrealized gains (losses) arising during the period | 85 | (66) | 498 | (141) |
Reclassification adjustments recognized in net income | (118) | (15) | (197) | (39) |
Net gain (loss) on derivatives | (33) | (81) | 301 | (180) |
Available-for-sale securities: | ||||
Unrealized gains (losses) arising during the period | (880) | 338 | (1,072) | 652 |
Reclassification adjustments recognized in net income | (2) | (4) | (21) | (3) |
Net change in unrealized gain (loss) on available-for-sale securities | (882) | 334 | (1,093) | 649 |
Pension and other benefit liabilities: | ||||
Net pension and other benefits arising during the period | 9 | 8 | 44 | 6 |
Reclassification adjustments recognized in net income | 31 | 9 | 61 | 18 |
Net change in pension and other benefit liabilities | 40 | 17 | 105 | 24 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | (1,667) | $ 608 | (2,959) | $ 446 |
Amortization of prior period service cost (credit) | (4) | (9) | ||
Divestitures, deconsolidations and other [Member] | Other income (loss) - net | ||||
Foreign currency translation adjustments: | ||||
Reclassification adjustments recognized in net income | 0 | 63 | ||
Foreign currency contracts | Net operating revenues | ||||
Derivatives: | ||||
Reclassification adjustments recognized in net income | (178) | (298) | ||
Foreign currency contracts | Interest Expense [Member] | ||||
Derivatives: | ||||
Reclassification adjustments recognized in net income | 2 | 4 | ||
Foreign currency and commodity contracts [Member] | Cost of goods sold | ||||
Derivatives: | ||||
Reclassification adjustments recognized in net income | (15) | (27) | ||
Interest rate contracts | Interest Expense [Member] | ||||
Derivatives: | ||||
Reclassification adjustments recognized in net income | 0 | 3 | ||
Sale of securities | Other income (loss) - net | ||||
Available-for-sale securities: | ||||
Reclassification adjustments recognized in net income | (2) | (29) | ||
Amortization of net actuarial loss | ||||
Pension and other benefit liabilities: | ||||
Reclassification adjustments recognized in net income | $ 52 | 104 | ||
Shareowners of The Coca-Cola Company | ||||
Comprehensive Income Disclosure | ||||
Consolidated net income | 4,665 | |||
Other comprehensive income: | ||||
Net foreign currency translation adjustment | (2,272) | |||
Net gain (loss) on derivatives | 301 | |||
Net unrealized gain (loss) on available-for-sale securities | (1,093) | |||
Net change in pension and other benefit liabilities | 105 | |||
TOTAL COMPREHENSIVE INCOME | 1,706 | |||
Noncontrolling Interests | ||||
Comprehensive Income Disclosure | ||||
Consolidated net income | 12 | |||
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 | 6 | |||
Total [Member] | ||||
Comprehensive Income Disclosure | ||||
Consolidated net income | 4,677 | |||
Other comprehensive income: | ||||
Net foreign currency translation adjustment | (2,278) | |||
Net gain (loss) on derivatives | 301 | |||
Net unrealized gain (loss) on available-for-sale securities | (1,093) | |||
Net change in pension and other benefit liabilities | 105 | |||
TOTAL COMPREHENSIVE INCOME | $ 1,712 |
Changes in Equity (Details)
Changes in Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Changes in Equity | ||||
December 31, 2014 | $ 30,561 | |||
Comprehensive income (loss) | $ 1,444 | $ 3,212 | 1,712 | $ 4,672 |
Dividends paid/payable to shareowners of The Coca-Cola Company | (2,877) | |||
Dividends paid to noncontrolling interests | (21) | |||
Business combinations including purchase accounting adjustments | (3) | |||
Purchases of treasury stock | (1,280) | |||
Impact related to stock compensation plans | 549 | |||
July 3, 2015 | 28,641 | 28,641 | ||
Reinvested Earnings | ||||
Changes in Equity | ||||
December 31, 2014 | 63,408 | |||
Comprehensive income (loss) | 4,665 | |||
Dividends paid/payable to shareowners of The Coca-Cola Company | (2,877) | |||
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 | |||
July 3, 2015 | 65,196 | 65,196 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Changes in Equity | ||||
December 31, 2014 | (5,777) | |||
Comprehensive income (loss) | (2,959) | |||
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 | |||
July 3, 2015 | (8,736) | (8,736) | ||
Common Stock [Member] | ||||
Changes in Equity | ||||
December 31, 2014 | 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 | |||
July 3, 2015 | 1,760 | 1,760 | ||
Capital Surplus | ||||
Changes in Equity | ||||
December 31, 2014 | 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 | 332 | |||
July 3, 2015 | 13,486 | 13,486 | ||
Treasury Stock | ||||
Changes in Equity | ||||
December 31, 2014 | (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 | (1,280) | |||
Impact related to stock compensation plans | 217 | |||
July 3, 2015 | (43,288) | (43,288) | ||
Noncontrolling Interests | ||||
Changes in Equity | ||||
December 31, 2014 | 241 | |||
Comprehensive income (loss) | 6 | |||
Dividends paid/payable to shareowners of The Coca-Cola Company | 0 | |||
Dividends paid to noncontrolling interests | (21) | |||
Business combinations including purchase accounting adjustments | (3) | |||
Purchases of treasury stock | 0 | |||
Impact related to stock compensation plans | 0 | |||
July 3, 2015 | $ 223 | $ 223 |
Significant Operating and Non47
Significant Operating and Nonoperating Items (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 03, 2015 | Apr. 03, 2015 | Jun. 27, 2014 | Mar. 28, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | Dec. 31, 2014 | |
Other Operating Charges | |||||||
Other operating charges | $ 669 | $ 201 | $ 902 | $ 329 | |||
Cash Contribution Expense | 100 | 100 | |||||
Impairment charge on the descontinuation of the energy products | 380 | 0 | 432 | 0 | |||
Carrying value of Trademarks | 2,600 | 2,600 | |||||
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 | 9 | 6 | 82 | 33 | |||
Other Income (Loss) - Net | |||||||
Benefit (charge) due to refranchising of territories | (140) | ||||||
Remeasurement on previously held equity interest | 0 | 0 | 19 | 0 | |||
Valuation of shares in equity method investee gains/ (loss) | 0 | 0 | (6) | 0 | |||
Foreign currency exchange gain on euro-denominated debt | 202 | 282 | |||||
North America [Member] | |||||||
Other Operating Charges | |||||||
Productivity, integration and restructuring initiatives | 79 | 58 | 154 | 133 | |||
Other Income (Loss) - Net | |||||||
Benefit (charge) due to refranchising of territories | (12) | (140) | (33) | (140) | |||
Corporate | |||||||
Other Operating Charges | |||||||
Cash Contribution Expense | 100 | 100 | |||||
Productivity, integration and restructuring initiatives | 4 | 30 | 24 | 34 | |||
Impairment charge on the descontinuation of the energy products | 380 | 380 | |||||
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) | |||||
Net Gains From Investee Transactions, Equity Investment Sales and other gains | 1,402 | 1,402 | |||||
Bottling investments [Member] | |||||||
Other Operating Charges | |||||||
Restructuring and transition of Russian juice operations | 25 | 25 | |||||
Productivity, integration and restructuring initiatives | 95 | 66 | 129 | 108 | |||
Equity Income (Loss) - Net | |||||||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 4 | 6 | 76 | 12 | |||
Productivity and Reinvestment [Member] | |||||||
Other Operating Charges | |||||||
Productivity, integration and restructuring initiatives | 92 | 89 | 182 | 175 | |||
Integration of German Bottling and Distribution Operation [Member] | |||||||
Other Operating Charges | |||||||
Productivity, integration and restructuring initiatives | $ 94 | 66 | 129 | 108 | |||
Venezuelan subsidiary | |||||||
Other Operating Charges | |||||||
Accounts Receivable Write-Down | $ 56 | ||||||
Impairment charge on the descontinuation of the energy products | 52 | ||||||
Other Income (Loss) - Net | |||||||
Remeasurement Charges on Subsidiary Assets | 27 | 226 | |||||
Venezuelan subsidiary | Corporate | |||||||
Other Operating Charges | |||||||
Accounts Receivable Write-Down | $ 21 | 21 | |||||
Other Income (Loss) - Net | |||||||
Remeasurement Charges on Subsidiary Assets | $ 27 | $ 226 | 247 | ||||
Venezuelan subsidiary | Bottling investments [Member] | |||||||
Other Income (Loss) - Net | |||||||
Remeasurement Charges on Subsidiary Assets | $ 21 | ||||||
Other Operating Charges | |||||||
Other Operating Charges | |||||||
Writte-down of receivables and trademark impairment | $ 108 |
Productivity, Integration and48
Productivity, Integration and Restructuring Initiatives (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 03, 2015USD ($) | Jun. 27, 2014USD ($) | Jul. 03, 2015USD ($) | Jun. 27, 2014USD ($) | Dec. 31, 2007 | |
Productivity and Reinvestment [Member] | |||||
Productivity, Integration and Restructuring Initiatives Disclosures | |||||
Accrued Balance, Beginning Balance | $ 206 | $ 285 | |||
Cost incurred | 92 | $ 89 | 182 | $ 175 | |
Payments | (101) | (246) | |||
Noncash and exchange | (12) | (36) | |||
Accrued Balance, Ending Balance | 185 | 185 | |||
Restructuring and related costs incurred to date | 1,547 | 1,547 | |||
Integration of German Bottling and Distribution Operation [Member] | |||||
Productivity, Integration and Restructuring Initiatives Disclosures | |||||
Accrued Balance, Beginning Balance | 101 | ||||
Cost incurred | 94 | $ 66 | 129 | $ 108 | |
Accrued Balance, Ending Balance | 127 | 127 | |||
Restructuring and related costs incurred to date | 964 | 964 | |||
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 | 184 | 260 | |||
Cost incurred | 12 | 34 | |||
Payments | (43) | (130) | |||
Noncash and exchange | 12 | 1 | |||
Accrued Balance, Ending Balance | 165 | 165 | |||
Outside Services [Member] | Productivity and Reinvestment [Member] | |||||
Productivity, Integration and Restructuring Initiatives Disclosures | |||||
Accrued Balance, Beginning Balance | 9 | 4 | |||
Cost incurred | 10 | 28 | |||
Payments | (13) | (26) | |||
Noncash and exchange | 1 | 1 | |||
Accrued Balance, Ending Balance | 7 | 7 | |||
Other direct costs [Member] | Productivity and Reinvestment [Member] | |||||
Productivity, Integration and Restructuring Initiatives Disclosures | |||||
Accrued Balance, Beginning Balance | 13 | 21 | |||
Cost incurred | 70 | 120 | |||
Payments | (45) | (90) | |||
Noncash and exchange | (25) | (38) | |||
Accrued Balance, Ending Balance | $ 13 | $ 13 |
Pension and Other Postretirem49
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Net periodic pension and other Postretirement benefit cost | ||||
Contributions to pension plan | $ 81 | $ 165 | ||
Pension plans, anticipated additional contributions for remainder of current fiscal year | 13 | |||
Pension Benefits | ||||
Net periodic pension and other Postretirement benefit cost | ||||
Service cost | $ 66 | $ 67 | 133 | 134 |
Interest cost | 95 | 102 | 190 | 203 |
Expected return on plan assets | (176) | (180) | (353) | (358) |
Amortization of prior service cost (credit) | 0 | 0 | 0 | (1) |
Amortization of net actuarial loss | 50 | 18 | 99 | 36 |
Net periodic benefit cost (credit) | 35 | 7 | 69 | 14 |
Defined Benefit Plan, Special Termination Benefits | 9 | 0 | 9 | 0 |
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | 2 | 0 | 2 |
Total cost (credit) recognized in statements of income | 44 | 9 | 78 | 16 |
Other Benefits | ||||
Net periodic pension and other Postretirement benefit cost | ||||
Service cost | 7 | 7 | 14 | 13 |
Interest cost | 10 | 10 | 19 | 21 |
Expected return on plan assets | (3) | (3) | (6) | (6) |
Amortization of prior service cost (credit) | (4) | (4) | (9) | (8) |
Amortization of net actuarial loss | 2 | 1 | 5 | 2 |
Net periodic benefit cost (credit) | 12 | 11 | 23 | 22 |
Defined Benefit Plan, Special Termination Benefits | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | 0 | 0 | 0 |
Total cost (credit) recognized in statements of income | $ 12 | $ 11 | $ 23 | $ 22 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 03, 2015 | Apr. 03, 2015 | Jun. 27, 2014 | Mar. 28, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | Dec. 31, 2014 | |
Income taxes | |||||||
U.S. statutory rate (as a percent) | 35.00% | ||||||
Effective tax rate estimated for 2015 (as a percent) | 22.50% | 22.50% | |||||
Income tax expense | $ 1,250 | $ 779 | $ 1,665 | $ 1,358 | |||
Effective tax rate (as a percent) | 28.70% | 23.00% | 26.30% | 24.30% | |||
Tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented | |||||||
Productivity and reinvestment program | $ (33) | $ (34) | $ (75) | $ (66) | |||
Other productivity, integration and restructuring initiatives | 0 | 0 | 0 | 0 | |||
Transaction gains and losses | 474 | (51) | 464 | (51) | |||
Certain tax matters | 16 | 26 | 0 | 31 | |||
Other - net | (38) | 3 | (168) | 8 | |||
Unusual and/or infrequent items [Abstract] | |||||||
Other infrequent or unusual charges/(gains) net | 1,007 | 961 | |||||
Impairment charge on the descontinuation of the energy products | 380 | 0 | 432 | 0 | |||
Benefit (charge) due to refranchising of territories | (140) | ||||||
Valuation of shares in equity method investee gains/ (loss) | 0 | 0 | (6) | 0 | |||
Remeasurement on previously held equity interest | 0 | 0 | 19 | 0 | |||
Unusual or Infrequent Event Charges | 110 | 52 | 638 | 305 | |||
Cash Contribution Expense | 100 | 100 | |||||
Gains (Losses) on Extinguishment of Debt | (320) | ||||||
Writte-down of receivables and trademark impairment | 108 | ||||||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 9 | 6 | 82 | 33 | |||
Productivity and Reinvestment [Member] | |||||||
Unusual and/or infrequent items [Abstract] | |||||||
Productivity, integration and restructuring initiatives | 92 | 89 | 182 | 175 | |||
Integration of German Bottling and Distribution Operation [Member] | |||||||
Unusual and/or infrequent items [Abstract] | |||||||
Productivity, integration and restructuring initiatives | 94 | 66 | 129 | 108 | |||
Corporate | |||||||
Unusual and/or infrequent items [Abstract] | |||||||
Productivity, integration and restructuring initiatives | 4 | 30 | 24 | 34 | |||
Impairment charge on the descontinuation of the energy products | 380 | 380 | |||||
Net Gains From Investee Transactions, Equity Investment Sales and other gains | 1,402 | 1,402 | |||||
Valuation of shares in equity method investee gains/ (loss) | (6) | $ (32) | |||||
Remeasurement on previously held equity interest | 19 | ||||||
Cash Contribution Expense | 100 | 100 | |||||
Gains (Losses) on Extinguishment of Debt | (320) | ||||||
North America [Member] | |||||||
Unusual and/or infrequent items [Abstract] | |||||||
Productivity, integration and restructuring initiatives | 79 | 58 | 154 | 133 | |||
Benefit (charge) due to refranchising of territories | (12) | (140) | (33) | (140) | |||
Bottling investments [Member] | |||||||
Unusual and/or infrequent items [Abstract] | |||||||
Productivity, integration and restructuring initiatives | 95 | 66 | 129 | 108 | |||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | $ 4 | 6 | 76 | 12 | |||
Restructuring and transition of Russian juice operations | 25 | 25 | |||||
Venezuelan subsidiary | |||||||
Unusual and/or infrequent items [Abstract] | |||||||
Impairment charge on the descontinuation of the energy products | $ 52 | ||||||
Remeasurement Charges on Subsidiary Assets | $ 27 | 226 | |||||
Accounts Receivable Write-Down | 56 | ||||||
Devaluation of Venezuela Bolivar, write-down of receivables and charges from equity investees | 268 | ||||||
Venezuelan subsidiary | Corporate | |||||||
Unusual and/or infrequent items [Abstract] | |||||||
Remeasurement Charges on Subsidiary Assets | $ 27 | $ 226 | 247 | ||||
Accounts Receivable Write-Down | $ 21 | 21 | |||||
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 ($) $ in Millions | Jul. 03, 2015 | Dec. 31, 2014 |
Assets and liabilities measured at fair value on a recurring basis | ||
Available-for-sale securities | $ 6,856 | $ 7,879 |
Derivative, Collateral, Obligation to Return Cash | 101 | |
Level 1 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 229 | 228 |
Available-for-sale securities | 3,329 | 4,116 |
Derivatives, assets | 38 | 9 |
Total assets | 3,596 | 4,353 |
Derivatives, liabilities | 3 | 2 |
Total liabilities | 3 | 2 |
Level 2 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 114 | 177 |
Available-for-sale securities | 3,415 | 3,627 |
Derivatives, assets | 1,600 | 1,721 |
Total assets | 5,129 | 5,525 |
Derivatives, liabilities | 476 | 558 |
Total liabilities | 476 | 558 |
Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 3 | 4 |
Available-for-sale securities | 112 | 136 |
Derivatives, assets | 0 | 0 |
Total assets | 115 | 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 | (466) | (437) |
Total assets | (466) | (437) |
Derivatives, liabilities | (365) | (437) |
Total liabilities | (365) | (437) |
Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Trading Securities | 346 | 409 |
Available-for-sale securities | 6,856 | 7,879 |
Derivatives, assets | 1,172 | 1,293 |
Total assets | 8,374 | 9,581 |
Derivatives, liabilities | 114 | 123 |
Total liabilities | 114 | 123 |
Prepaid expenses and other assets | Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, assets | 263 | 567 |
Other Assets | Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, assets | 909 | 726 |
Accounts payable and accrued expenses | Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, liabilities | 18 | 14 |
Other Liabilities | Fair Value Measurements | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, liabilities | $ 96 | $ 109 |
Fair Value Measurements (Deta52
Fair Value Measurements (Details 2) - Segments [Domain] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 03, 2015 | Jun. 27, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | |
Nonrecurring fair value measurements | ||||
Intangible Assets | $ (380) | $ 0 | $ (432) | $ 0 |
Investment in formerly unconsolidated subsidiary | 0 | 0 | (19) | 0 |
Valuation of shares in equity method investee gains/ (loss) | 0 | 0 | (6) | 0 |
Total | $ (380) | $ 0 | (457) | $ 0 |
Venezuelan Trademark impairment | 52 | |||
Exercise of Options | 10.00% | |||
Trademarks [Member] | ||||
Nonrecurring fair value measurements | ||||
Intangible Assets | $ (380) |
Fair Value Measurements (Deta53
Fair Value Measurements (Details 3) - USD ($) $ in Millions | Jul. 03, 2015 | Dec. 31, 2014 |
Other fair value disclosures | ||
Long-term debt, including the current portion, carrying amount | $ 28,008 | $ 22,615 |
Long-term debt, including the current portion, fair value | $ 28,266 | $ 23,411 |
Operating Segments (Details)
Operating Segments (Details) - Productivity, Integration and Restructuring Initiatives [Domain] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jul. 03, 2015 | Apr. 03, 2015 | Jun. 27, 2014 | Mar. 28, 2014 | Jul. 03, 2015 | Jun. 27, 2014 | Dec. 31, 2014 | |
Net operating revenues: | |||||||
Third party | $ 12,156 | $ 12,574 | $ 22,867 | $ 23,150 | |||
Intersegment | 0 | 0 | 0 | 0 | |||
Total net revenues | 12,156 | 12,574 | 22,867 | 23,150 | |||
Operating Income (Loss) | 2,535 | 3,170 | 4,831 | 5,546 | |||
Income (loss) before income taxes | 4,361 | 3,384 | 6,342 | 5,589 | |||
Identifiable operating assets | 77,765 | 81,031 | 77,765 | 81,031 | $ 78,398 | ||
Noncurrent investments | 15,773 | 14,458 | 15,773 | 14,458 | 13,625 | ||
Impairment charge on the descontinuation of the energy products | 380 | 0 | 432 | 0 | |||
Benefit (charge) due to refranchising of territories | (140) | ||||||
Cash Contribution Expense | 100 | 100 | |||||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 9 | 6 | 82 | 33 | |||
Valuation of shares in equity method investee gains/ (loss) | 0 | 0 | (6) | 0 | |||
Gains (Losses) on Extinguishment of Debt | (320) | ||||||
Remeasurement on previously held equity interest | 0 | 0 | 19 | 0 | |||
Venezuelan subsidiary | |||||||
Net operating revenues: | |||||||
Accounts Receivable Write-Down | $ 56 | ||||||
Impairment charge on the descontinuation of the energy products | 52 | ||||||
Remeasurement Charges on Subsidiary Assets | 27 | 226 | |||||
Eurasia and Africa [Member] | |||||||
Net operating revenues: | |||||||
Third party | 651 | 732 | 1,289 | 1,390 | |||
Intersegment | 7 | 0 | 7 | 0 | |||
Total net revenues | 658 | 732 | 1,296 | 1,390 | |||
Operating Income (Loss) | 275 | 290 | 554 | 593 | |||
Income (loss) before income taxes | 287 | 313 | 573 | 621 | |||
Identifiable operating assets | 1,332 | 1,411 | 1,332 | 1,411 | 1,298 | ||
Noncurrent investments | 1,110 | 1,189 | 1,110 | 1,189 | 1,081 | ||
Productivity, integration and restructuring initiatives | 3 | 15 | |||||
Europe | |||||||
Net operating revenues: | |||||||
Third party | 1,284 | 1,385 | 2,352 | 2,519 | |||
Intersegment | 151 | 184 | 295 | 343 | |||
Total net revenues | 1,435 | 1,569 | 2,647 | 2,862 | |||
Operating Income (Loss) | 836 | 892 | 1,552 | 1,611 | |||
Income (loss) before income taxes | 843 | 904 | 1,567 | 1,635 | |||
Identifiable operating assets | 3,282 | 4,014 | 3,282 | 4,014 | 3,358 | ||
Noncurrent investments | 88 | 115 | 88 | 115 | 90 | ||
Refinement of previously established accruals - credit | 11 | ||||||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 5 | 6 | |||||
Latin America [Member] | |||||||
Net operating revenues: | |||||||
Third party | 955 | 1,105 | 2,002 | 2,199 | |||
Intersegment | 18 | 13 | 37 | 30 | |||
Total net revenues | 973 | 1,118 | 2,039 | 2,229 | |||
Operating Income (Loss) | 525 | 633 | 1,103 | 1,301 | |||
Income (loss) before income taxes | 526 | 636 | 1,114 | 1,303 | |||
Identifiable operating assets | 2,190 | 2,871 | 2,190 | 2,871 | 2,426 | ||
Noncurrent investments | 711 | 807 | 711 | 807 | 757 | ||
Productivity, integration and restructuring initiatives | 3 | 3 | |||||
Income (expenses) related to subsidiary events | (33) | ||||||
North America [Member] | |||||||
Net operating revenues: | |||||||
Third party | 5,911 | 5,710 | 11,008 | 10,500 | |||
Intersegment | 6 | 7 | 10 | 10 | |||
Total net revenues | 5,917 | 5,717 | 11,018 | 10,510 | |||
Operating Income (Loss) | 887 | 827 | 1,398 | 1,255 | |||
Income (loss) before income taxes | 874 | 682 | 1,361 | 1,107 | |||
Identifiable operating assets | 33,657 | 34,426 | 33,657 | 34,426 | 33,066 | ||
Noncurrent investments | 45 | 51 | 45 | 51 | 48 | ||
Productivity, integration and restructuring initiatives | 79 | 58 | 154 | 133 | |||
Benefit (charge) due to refranchising of territories | (12) | (140) | (33) | (140) | |||
Asia Pacific | |||||||
Net operating revenues: | |||||||
Third party | 1,413 | 1,550 | 2,569 | 2,760 | |||
Intersegment | 188 | 173 | 317 | 278 | |||
Total net revenues | 1,601 | 1,723 | 2,886 | 3,038 | |||
Operating Income (Loss) | 761 | 846 | 1,305 | 1,403 | |||
Income (loss) before income taxes | 766 | 851 | 1,314 | 1,411 | |||
Identifiable operating assets | 1,880 | 2,117 | 1,880 | 2,117 | 1,793 | ||
Noncurrent investments | 163 | 149 | 163 | 149 | 157 | ||
Productivity, integration and restructuring initiatives | 2 | 1 | 8 | ||||
Refinement of previously established accruals - credit | 3 | ||||||
Bottling investments [Member] | |||||||
Net operating revenues: | |||||||
Third party | 1,917 | 2,042 | 3,582 | 3,699 | |||
Intersegment | 13 | 18 | 26 | 34 | |||
Total net revenues | 1,930 | 2,060 | 3,608 | 3,733 | |||
Operating Income (Loss) | 31 | 38 | 45 | 12 | |||
Income (loss) before income taxes | 231 | 254 | 230 | 276 | |||
Identifiable operating assets | 6,910 | 7,119 | 6,910 | 7,119 | 6,975 | ||
Noncurrent investments | 8,507 | 9,557 | 8,507 | 9,557 | 8,781 | ||
Productivity, integration and restructuring initiatives | 95 | 66 | 129 | 108 | |||
Restructuring and transition of Russian juice operations | 25 | 25 | |||||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 4 | 6 | 76 | 12 | |||
Bottling investments [Member] | Venezuelan subsidiary | |||||||
Net operating revenues: | |||||||
Remeasurement Charges on Subsidiary Assets | 21 | ||||||
Corporate | |||||||
Net operating revenues: | |||||||
Third party | 25 | 50 | 65 | 83 | |||
Intersegment | 0 | 0 | 0 | 0 | |||
Total net revenues | 25 | 50 | 65 | 83 | |||
Operating Income (Loss) | (780) | (356) | (1,126) | (629) | |||
Income (loss) before income taxes | 834 | (256) | 183 | (764) | |||
Identifiable operating assets | 28,514 | 29,073 | 28,514 | 29,073 | 29,482 | ||
Noncurrent investments | 5,149 | 2,590 | 5,149 | 2,590 | 2,711 | ||
Productivity, integration and restructuring initiatives | 4 | 30 | 24 | 34 | |||
Net Gains From Investee Transactions, Equity Investment Sales and other gains | 1,402 | 1,402 | |||||
Impairment charge on the descontinuation of the energy products | 380 | 380 | |||||
Cash Contribution Expense | 100 | 100 | |||||
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: | |||||||
Accounts Receivable Write-Down | 21 | 21 | |||||
Remeasurement Charges on Subsidiary Assets | $ 27 | $ 226 | 247 | ||||
Intersegment Eliminations [Member] | |||||||
Net operating revenues: | |||||||
Third party | 0 | 0 | 0 | 0 | |||
Intersegment | (383) | (395) | (692) | (695) | |||
Total net revenues | (383) | (395) | (692) | (695) | |||
Operating Income (Loss) | 0 | 0 | 0 | 0 | |||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | |||
Identifiable operating assets | 0 | 0 | 0 | 0 | 0 | ||
Noncurrent investments | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |