DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
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-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 4,265,906,533 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 193,060,515,914 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
NET OPERATING REVENUES | $ 35,410 | $ 41,863 | $ 44,294 |
Cost of goods sold | 13,256 | 16,465 | 17,482 |
GROSS PROFIT | 22,154 | 25,398 | 26,812 |
Selling, general and administrative expenses | 12,496 | 15,262 | 16,427 |
Other operating charges | 2,157 | 1,510 | 1,657 |
OPERATING INCOME | 7,501 | 8,626 | 8,728 |
Interest income | 677 | 642 | 613 |
Interest expense | 841 | 733 | 856 |
Equity income (loss) - net | 1,071 | 835 | 489 |
Other income (loss) - net | (1,666) | (1,234) | 631 |
INCOME BEFORE INCOME TAXES | 6,742 | 8,136 | 9,605 |
Income taxes | 5,560 | 1,586 | 2,239 |
CONSOLIDATED NET INCOME | 1,283 | 6,550 | 7,366 |
NET INCOME FROM CONTINUING OPERATIONS | 1,182 | 6,550 | 7,366 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 101 | 0 | 0 |
Net Income (Loss) Attributable to Noncontrolling Interest | 35 | 23 | 15 |
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $ 1,248 | $ 6,527 | $ 7,351 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.28 | $ 1.51 | $ 1.69 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0.02 | 0 | 0 |
BASIC NET INCOME PER SHARE (in dollars per share) | 0.29 | 1.51 | 1.69 |
Income (Loss) from Continuing Operations, Per Diluted Share | 0.27 | 1.49 | 1.67 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0.02 | 0 | 0 |
DILUTED NET INCOME PER SHARE (in dollars per share) | $ 0.29 | $ 1.49 | $ 1.67 |
AVERAGE SHARES OUTSTANDING (in shares) | 4,272 | 4,317 | 4,352 |
Effect of dilutive securities (in shares) | 52 | 50 | 53 |
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares) | 4,324 | 4,367 | 4,405 |
CONSOLIDATED STATEMENTS OF INC3
CONSOLIDATED STATEMENTS OF INCOME Income Statement Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement Parenthetical [Abstract] | |||
Discontinued Operation, Tax Effect of Discontinued Operation | $ 47 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CONSOLIDATED NET INCOME | $ 1,283 | $ 6,550 | $ 7,366 |
Other comprehensive income | |||
Net foreign currency translation adjustment | 861 | (626) | (3,959) |
Net gain (loss) on derivatives | (433) | (382) | 142 |
Net urealized gain (loss) on available-for-sale securities | 188 | 17 | (684) |
Net change in pension and other benefit liabilities | 322 | (53) | 86 |
TOTAL COMPREHENSIVE INCOME (LOSS) | 2,221 | 5,506 | 2,951 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 73 | 10 | (3) |
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $ 2,148 | $ 5,496 | $ 2,954 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 6,006 | $ 8,555 |
Short-term investments | 9,352 | 9,595 |
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 15,358 | 18,150 |
Marketable securities | 5,317 | 4,051 |
Trade accounts receivable, less allowances of $477 and $466, respectively | 3,667 | 3,856 |
Inventories | 2,655 | 2,675 |
Prepaid expenses and other assets | 2,000 | 2,481 |
Assets held for sale | 219 | 2,797 |
Assets held for sale - discontinuing operations | 7,329 | 0 |
TOTAL CURRENT ASSETS | 36,545 | 34,010 |
EQUITY METHOD INVESTMENTS | 20,856 | 16,260 |
OTHER INVESTMENTS | 1,096 | 989 |
OTHER ASSETS | 4,560 | 4,248 |
PROPERTY, PLANT AND EQUIPMENT - net | 8,203 | 10,635 |
TRADEMARKS WITH INDEFINITE LIVES | 6,729 | 6,097 |
BOTTLERS' FRANCHISE RIGHTS WITH INDEFINITE LIVES | 138 | 3,676 |
GOODWILL | 9,401 | 10,629 |
OTHER INTANGIBLE ASSETS | 368 | 726 |
TOTAL ASSETS | 87,896 | 87,270 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 8,748 | 9,490 |
Loans and notes payable | 13,205 | 12,498 |
Current maturities of long-term debt | 3,298 | 3,527 |
Accrued income taxes | 410 | 307 |
Liabilities held for sale | 37 | 710 |
Liabilities Held for Sale, Discontinued Operations | 1,496 | 0 |
TOTAL CURRENT LIABILITIES | 27,194 | 26,532 |
LONG-TERM DEBT | 31,182 | 29,684 |
OTHER LIABILITIES | 8,021 | 4,081 |
DEFERRED INCOME TAXES | 2,522 | 3,753 |
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 | 15,864 | 14,993 |
Reinvested earnings | 60,430 | 65,502 |
Accumulated other comprehensive income (loss) | (10,305) | (11,205) |
Treasury stock, at cost — 2,781 and 2,752 shares, respectively | (50,677) | (47,988) |
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 17,072 | 23,062 |
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1,905 | 158 |
TOTAL EQUITY | 18,977 | 23,220 |
TOTAL LIABILITIES AND EQUITY | $ 87,896 | $ 87,270 |
CONSOLIDATED BALANCE SHEETS BAL
CONSOLIDATED BALANCE SHEETS BALANCE SHEET PARENTHETICAL - USD ($) shares in Millions, $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Parenthetical [Abstract] | ||
Allowance for Doubtful Accounts Receivable | $ 477 | $ 466 |
Common Stock, Par or Stated Value Per Share | $ 0.25 | $ 0.25 |
Common Stock, Shares Authorized | 11,200 | 11,200 |
Common Stock, Shares, Issued | 7,040 | 7,040 |
Treasury Stock, Shares | 2,781 | 2,752 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | |||
CONSOLIDATED NET INCOME | $ 1,283 | $ 6,550 | $ 7,366 |
(Income) Loss from Discontinued Operations | (101) | 0 | 0 |
NET INCOME FROM CONTINUING OPERATIONS | 1,182 | 6,550 | 7,366 |
Depreciation and amortization | 1,260 | 1,787 | 1,970 |
Stock-based compensation expense | 219 | 258 | 236 |
Deferred income taxes | (1,256) | (856) | 73 |
Equity (income) loss - net of dividends | (628) | (449) | (122) |
Foreign currency adjustments | 281 | 158 | (137) |
Significant (gains) losses on sales of assets - net | 1,459 | 1,146 | (374) |
Other operating charges | 1,218 | 647 | 929 |
Other items | (269) | (224) | 744 |
Net change in operating assets and liabilities | 3,529 | (221) | (157) |
Net cash provided by operating activities | 6,995 | 8,796 | 10,528 |
INVESTING ACTIVITIES | |||
Purchases of investments | (16,520) | (15,499) | (15,831) |
Proceeds from disposals of investments | 15,911 | 16,624 | 14,079 |
Acquisitions of businesses, equity method investments and nonmarketable securities | (3,900) | (838) | (2,491) |
Proceeds from disposals of businesses, equity method investments and nonmarkatable securities | 3,821 | 1,035 | 565 |
Purchases of property, plant and equipment | (1,675) | (2,262) | (2,553) |
Proceeds from disposals of property, plant and equipment | 104 | 150 | 85 |
Other investing activities | (126) | (209) | (40) |
Net cash provided by (used in) investing activities | (2,385) | (999) | (6,186) |
FINANCING ACTIVITIES | |||
Issuances of debt | 29,857 | 27,281 | 40,434 |
Payments of debt | (28,768) | (25,615) | (37,738) |
Issuances of stock | 1,595 | 1,434 | 1,245 |
Purchases of stock for treasury | (3,682) | (3,681) | (3,564) |
Dividends | (6,320) | (6,043) | (5,741) |
Other financing activities | (91) | 79 | 251 |
Net cash provided by (used in) financing activities | (7,409) | (6,545) | (5,113) |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 111 | 0 | 0 |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | (65) | 0 | 0 |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | (38) | 0 | 0 |
Net Cash Provided by (Used in) Discontinued Operations | 8 | 0 | 0 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 242 | (6) | (878) |
CASH AND CASH EQUIVALENTS | |||
Net increase (decrease) during the year | (2,549) | 1,246 | (1,649) |
Balance at beginning of year | 8,555 | 7,309 | 8,958 |
Balance at end of year | $ 6,006 | $ 8,555 | $ 7,309 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | COMMON STOCK | CAPITAL SURPLUS | REINVESTED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | TREASURY STOCK | EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
Balance at beginning of year (in shares) at Dec. 31, 2014 | 4,366 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Purchases of treasury stock (in shares) | (86) | |||||||
Treasury stock issued to employees related to stock compensation plans (in shares) | 44 | |||||||
Balance at end of year (in shares) at Dec. 31, 2015 | 4,324 | |||||||
Balance at beginning of year at Dec. 31, 2014 | $ 13,154 | $ 63,408 | $ (5,777) | $ (42,225) | $ 241 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||
Stock issued to employees related to stock compensation plans | 532 | 696 | ||||||
Tax benefit (charge) from stock compensation plans | 94 | |||||||
Stock-based compensation expense | 236 | |||||||
Other activities | 0 | |||||||
Net income attributable to shareowners of The Coca-Cola Company | $ 7,351 | 7,351 | ||||||
Dividends (per share — $1.48, $1.40 and $1.32 in 2017, 2016 and 2015, respectively) | (5,741) | |||||||
Net other comprehensive income (loss) | $ (4,397) | (4,397) | ||||||
Purchases of treasury stock | (3,537) | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 15 | 15 | ||||||
Net foreign currency translation adjustment | (18) | |||||||
Dividends paid to noncontrolling interests | (31) | |||||||
Contributions by noncontrolling interests | 0 | |||||||
Business combinations | (3) | |||||||
Deconsolidation of certain entities | 0 | |||||||
Other activities | 6 | |||||||
Balance at end of year at Dec. 31, 2015 | 14,016 | 65,018 | (10,174) | (45,066) | 210 | |||
Common Stock | $ 1,760 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 25,554 | |||||||
Purchases of treasury stock (in shares) | (86) | |||||||
Treasury stock issued to employees related to stock compensation plans (in shares) | 50 | |||||||
Balance at end of year (in shares) at Dec. 31, 2016 | 4,288 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Stock issued to employees related to stock compensation plans | 589 | 811 | ||||||
Tax benefit (charge) from stock compensation plans | 130 | |||||||
Stock-based compensation expense | 258 | |||||||
Other activities | 0 | |||||||
Net income attributable to shareowners of The Coca-Cola Company | 6,527 | 6,527 | ||||||
Dividends (per share — $1.48, $1.40 and $1.32 in 2017, 2016 and 2015, respectively) | (6,043) | |||||||
Net other comprehensive income (loss) | (1,031) | (1,031) | ||||||
Purchases of treasury stock | (3,733) | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 23 | 23 | ||||||
Net foreign currency translation adjustment | (13) | |||||||
Dividends paid to noncontrolling interests | (25) | |||||||
Contributions by noncontrolling interests | 1 | |||||||
Business combinations | 0 | |||||||
Deconsolidation of certain entities | (34) | |||||||
Other activities | (4) | |||||||
Balance at end of year at Dec. 31, 2016 | 23,220 | 14,993 | 65,502 | (11,205) | (47,988) | 158 | ||
Common Stock | 1,760 | $ 1,760 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | 23,062 | 23,062 | ||||||
Purchases of treasury stock (in shares) | (82) | |||||||
Treasury stock issued to employees related to stock compensation plans (in shares) | 53 | |||||||
Balance at end of year (in shares) at Dec. 31, 2017 | 4,259 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Stock issued to employees related to stock compensation plans | 655 | 909 | ||||||
Tax benefit (charge) from stock compensation plans | 0 | |||||||
Stock-based compensation expense | 219 | |||||||
Other activities | (3) | |||||||
Net income attributable to shareowners of The Coca-Cola Company | 1,248 | 1,248 | ||||||
Dividends (per share — $1.48, $1.40 and $1.32 in 2017, 2016 and 2015, respectively) | (6,320) | |||||||
Net other comprehensive income (loss) | 900 | 900 | ||||||
Purchases of treasury stock | (3,598) | |||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 35 | 35 | ||||||
Net foreign currency translation adjustment | 38 | |||||||
Dividends paid to noncontrolling interests | (15) | |||||||
Contributions by noncontrolling interests | 0 | |||||||
Business combinations | 1,805 | |||||||
Deconsolidation of certain entities | (157) | |||||||
Other activities | 41 | |||||||
Balance at end of year at Dec. 31, 2017 | 18,977 | $ 15,864 | $ 60,430 | $ (10,305) | $ (50,677) | $ 1,905 | ||
Common Stock | 1,760 | $ 1,760 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | $ 17,072 | $ 17,072 |
CONSOLIDATED STATEMENTS OF SHA
CONSOLIDATED STATEMENTS OF SHAREOWNERS' EQUITY SHAREOWNERS' EQUITY PARENTHETICAL - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shareowners' Equity Parenthetical [Abstract] | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.48 | $ 1.40 | $ 1.32 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business The Coca-Cola Company is the world's largest beverage company. We own or license and market more than 500 nonalcoholic beverage brands, which we group into the following category clusters: sparkling soft drinks; water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks. We own and market four of the world's top five nonalcoholic sparkling soft drink brands: Coca-Cola, Diet Coke, Fanta and Sprite. Finished beverage products bearing our trademarks, sold in the United States since 1886, are now sold in more than 200 countries. We make our branded beverage products available to consumers throughout the world through our network of Company-owned or -controlled bottling and distribution operations, as well as independent bottling partners, distributors, wholesalers and retailers — the world's largest beverage distribution system. Beverages bearing trademarks owned by or licensed to us account for more than 1.9 billion of the approximately 60 billion servings of all beverages consumed worldwide every day. Our Company markets, manufactures and sells: • beverage concentrates, sometimes referred to as "beverage bases," and syrups, including fountain syrups (we refer to this part of our business as our "concentrate business" or "concentrate operations"); and • finished sparkling soft drinks and other nonalcoholic beverages (we refer to this part of our business as our "finished product business" or "finished product operations"). Generally, finished product operations generate higher net operating revenues but lower gross profit margins than concentrate operations. In our concentrate operations, we typically generate net operating revenues by selling concentrates and syrups to authorized bottling operations (to which we typically refer as our "bottlers" or our "bottling partners"). Our bottling partners either combine the concentrates with sweeteners (depending on the product), still water and/or sparkling water, or combine the syrups with sparkling water to produce finished beverages. The finished beverages are packaged in authorized containers — such as cans and refillable and nonrefillable glass and plastic bottles — bearing our trademarks or trademarks licensed to us and are then sold to retailers directly or, in some cases, through wholesalers or other bottlers. Outside the United States, we also sell concentrates for fountain beverages to our bottling partners who are typically authorized to manufacture fountain syrups, which they sell to fountain retailers such as restaurants and convenience stores which use the fountain syrups to produce beverages for immediate consumption, or to authorized fountain wholesalers who in turn sell and distribute the fountain syrups to fountain retailers. Our finished product operations consist primarily of Company-owned or -controlled bottling, sales and distribution operations which are included in our Bottling Investments operating segment. Our finished product operations generate net operating revenues by selling sparkling soft drinks and a variety of other nonalcoholic beverages, including water, enhanced water and sports drinks; juice, dairy and plant-based beverages; tea and coffee; and energy drinks, to retailers or to distributors, wholesalers and bottling partners who distribute them to retailers. In addition, in the United States, we manufacture fountain syrups and sell them to fountain retailers, such as restaurants and convenience stores who use the fountain syrups to produce beverages for immediate consumption, or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers. These fountain syrup sales are included in our North America operating segment. We authorize these wholesalers to resell our fountain syrups through nonexclusive appointments that neither restrict us in setting the prices at which we sell fountain syrups to the wholesalers nor restrict the territories in which the wholesalers may resell in the United States. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Furthermore, when testing assets for impairment in future periods, if management uses different assumptions or if different conditions occur, impairment charges may result. Certain amounts in the prior years' consolidated financial statements and accompanying notes have been revised to conform to the current year presentation. Principles of Consolidation Our Company consolidates all entities that we control by ownership of a majority voting interest. Additionally, there are situations in which consolidation is required even though the usual condition of consolidation (ownership of a majority voting interest) does not apply. Generally, this occurs when an entity holds an interest in another business enterprise that was achieved through arrangements that do not involve voting interests, which results in a disproportionate relationship between such entity's voting interests in, and its exposure to the economic risks and potential rewards of, the other business enterprise. This disproportionate relationship results in what is known as a variable interest, and the entity in which we have the variable interest is referred to as a "VIE." An enterprise must consolidate a VIE if it is determined to be the primary beneficiary of the VIE. The primary beneficiary has both (1) the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Our Company holds interests in certain VIEs, primarily bottling and container manufacturing operations, for which we were not determined to be the primary beneficiary. Our variable interests in these VIEs primarily relate to equity investments, profit guarantees or subordinated financial support. Refer to Note 11 . Although these financial arrangements resulted in our holding variable interests in these entities, they did not empower us to direct the activities of the VIEs that most significantly impact the VIEs' economic performance. Our Company's investments, plus any loans and guarantees, and other subordinated financial support related to these VIEs totaled $ 4,523 million and $ 3,709 million as of December 31, 2017 and 2016 , respectively, representing our maximum exposures to loss. The Company's investments, plus any loans and guarantees, related to these VIEs were not individually significant to the Company's consolidated financial statements. In addition, our Company holds interests in certain VIEs, primarily bottling and container manufacturing operations, for which we were determined to be the primary beneficiary. As a result, we have consolidated these entities. Our Company's investments, plus any loans and guarantees, related to these VIEs totaled $ 1 million and $ 203 million as of December 31, 2017 and 2016 , respectively, representing our maximum exposures to loss. The assets and liabilities of VIEs for which we are the primary beneficiary were not significant to the Company's consolidated financial statements. Creditors of our VIEs do not have recourse against the general credit of the Company, regardless of whether they are accounted for as consolidated entities. We use the equity method to account for investments in companies if our investment provides us with the ability to exercise significant influence over operating and financial policies of the investee. Our consolidated net income includes our Company's proportionate share of the net income or loss of these companies. Our judgment regarding the level of influence over each equity method investee includes considering key factors such as our ownership interest, representation on the board of directors, participation in policy-making decisions, other commercial arrangements and material intercompany transactions. We eliminate from our financial results all significant intercompany transactions, including the intercompany transactions with consolidated VIEs and the intercompany portion of transactions with equity method investees. Assets and Liabilities Held for Sale Our Company classifies long-lived assets or disposal groups to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset or disposal group beyond one year; the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We initially measure a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. We assess the fair value of a long-lived asset or disposal group less any costs to sell each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company ceases depreciation and reports long-lived assets and/or the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale, respectively, in our consolidated balance sheet. Refer to Note 2. Discontinued Operations When the following criteria are met: the disposal group is a component of an entity, the component of the entity meets the held for sale criteria in accordance with our policy described above and the component of the entity represents a strategic shift in the entity's operating and financial results, the disposal group is classified as a discontinued operation. Alternatively, if a business meets the criteria for held for sale on the acquisition date, the business is accounted for as a discontinued operation. In October 2017, the Company and Anheuser-Busch InBev ("ABI") completed the transition of ABI's controlling interest in Coca-Cola Beverages Africa Proprietary Limited ("CCBA") to the Company for $3,150 million , resulting in its consolidation. As CCBA met the criteria for held for sale upon consolidation, we have presented the financial position and results of operations of CCBA as discontinued operations in the accompanying consolidated financial statements. Revenue Recognition Our Company recognizes revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price charged is fixed or determinable, and collectibility is reasonably assured. For our Company, this generally means that we recognize revenue when title to our products is transferred to our bottling partners, resellers or other customers. In particular, title usually transfers upon shipment to or receipt at our customers' locations, as determined by the specific sales terms of the transactions. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part. Deductions from Revenue Our customers can earn certain incentives including, but not limited to, cash discounts, funds for promotional and marketing activities, volume-based incentive programs and support for infrastructure programs. The costs associated with these incentives are included in deductions from revenue, a component of net operating revenues in our consolidated statements of income. For customer incentives that must be earned, management must make estimates related to the contractual terms, customer performance and sales volume to determine the total amounts earned and to be recorded in deductions from revenue. In making these estimates, management considers past results. The actual amounts ultimately paid may be different from our estimates. In some situations, the Company may determine it to be advantageous to make advance payments to specific customers to fund certain marketing activities intended to generate profitable volume and/or invest in infrastructure programs with our bottlers that are directed at strengthening our bottling system and increasing unit case volume. The Company also makes advance payments to certain customers for distribution rights. The advance payments made to customers are initially capitalized and included in our consolidated balance sheets in prepaid expenses and other assets and noncurrent other assets, depending on the duration of the agreements. The assets are amortized over the applicable periods and included in deductions from revenue. The duration of these agreements typically ranges up to 10 years. Amortization expense for infrastructure programs was $ 36 million , $ 45 million and $ 61 million in 2017 , 2016 and 2015 , respectively. The aggregate deductions from revenue recorded by the Company in relation to these programs, including amortization expense on infrastructure programs, were $ 6.2 billion , $ 6.6 billion and $ 6.8 billion in 2017 , 2016 and 2015 , respectively. Advertising Costs Our Company expenses production costs of print, radio, television and other advertisements as of the first date the advertisements take place. All other marketing expenditures are expensed in the annual period in which the expenditure is incurred. Advertising costs included in the line item selling, general and administrative expenses in our consolidated statements of income were $4 billion in 2017 , 2016 and 2015 . As of December 31, 2017 and 2016 , advertising and production costs of $ 95 million and $ 113 million , respectively, were primarily recorded in the line item prepaid expenses and other assets in our consolidated balance sheets. For interim reporting purposes, we allocate our estimated full year marketing expenditures that benefit multiple interim periods to each of our interim reporting periods. We use the proportion of each interim period's actual unit case volume to the estimated full year unit case volume as the basis for the allocation. This methodology results in our marketing expenditures being recognized at a standard rate per unit case. At the end of each interim reporting period, we review our estimated full year unit case volume and our estimated full year marketing expenditures in order to evaluate if a change in estimate is necessary. The impact of any changes in these full year estimates is recognized in the interim period in which the change in estimate occurs. Our full year marketing expenditures are not impacted by this interim accounting policy. Shipping and Handling Costs Shipping and handling costs related to the movement of finished goods from manufacturing locations to our sales distribution centers are included in the line item cost of goods sold in our consolidated statements of income. Shipping and handling costs incurred to move finished goods from our sales distribution centers to customer locations are included in the line item selling, general and administrative expenses in our consolidated statements of income. During the years ended December 31, 2017 , 2016 and 2015 , the Company recorded shipping and handling costs of $ 1.1 billion , $2.0 billion and $2.5 billion , respectively, in the line item selling, general and administrative expenses. Our customers do not pay us separately for shipping and handling costs related to finished goods. Net Income Per Share Basic net income per share is computed by dividing net income attributable to shareowners of The Coca-Cola Company by the weighted-average number of common shares outstanding during the reporting period. Diluted net income per share is computed similarly to basic net income per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. Approximately 47 million , 51 million and 27 million stock option awards were excluded from the computations of diluted net income per share in 2017 , 2016 and 2015 , respectively, because the awards would have been antidilutive for the years presented. The following table presents information related to net income from continuing operations and net income from discontinued operations attributable to shareowners of The Coca-Cola Company (in millions): Year Ended December 31, 2017 2016 2015 CONTINUING OPERATIONS Net income from continuing operations $ 1,182 $ 6,550 $ 7,366 Less: Net income from continuing operations attributable to noncontrolling interests 1 23 15 Net income from continuing operations attributable to shareowners of The Coca-Cola Company $ 1,181 $ 6,527 $ 7,351 DISCONTINUED OPERATIONS Net income from discontinued operations $ 101 $ — $ — Less: Net income from discontinued operations attributable to noncontrolling interests 34 — — Net income from discontinued operations attributable to shareowners of $ 67 $ — $ — CONSOLIDATED Consolidated net income $ 1,283 $ 6,550 $ 7,366 Less: Net income attributable to noncontrolling interests 35 23 15 Net income attributable to shareowners of The Coca-Cola Company $ 1,248 $ 6,527 $ 7,351 Cash Equivalents We classify time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor our credit risk concentrations. Short-Term Investments We classify time deposits and other investments that have maturities of greater than three months but less than one year as short-term investments. Investments in Equity and Debt Securities We use the equity method to account for our investments in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. We include our proportionate share of earnings and/or losses of our equity method investees in equity income (loss) — net in our consolidated statements of income. The carrying value of our equity investments is reported in equity method investments in our consolidated balance sheets. Refer to Note 6 . We account for investments in companies that we do not control or account for under the equity method either at fair value or under the cost method, as applicable. Investments in equity securities, other than investments accounted for under the equity method, are carried at fair value if the fair value of the security is readily determinable. Equity investments carried at fair value are classified as either trading or available-for-sale securities with their cost basis determined by the specific identification method. Realized and unrealized gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in other income (loss) — net in our consolidated statements of income. Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in our consolidated balance sheets as a component of accumulated other comprehensive income (loss) ("AOCI"), except for the change in fair value attributable to the currency risk being hedged, if applicable, which is included in other income (loss) — net in our consolidated statements of income. Trading securities are reported as either marketable securities or other assets in our consolidated balance sheets. Securities classified as available-for-sale are reported as either cash and cash equivalents, marketable securities, other investments or other assets in our consolidated balance sheets, depending on the length of time we intend to hold the investment. Refer to Note 3 . Investments in equity securities that we do not control or account for under the equity method and do not have readily determinable fair values for are accounted for under the cost method. Cost method investments are originally recorded at cost, and we record dividend income when applicable dividends are declared. Cost method investments are reported as other investments in our consolidated balance sheets, and dividend income from cost method investments is reported in the line item other income (loss) — net in our consolidated statements of income. Our investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Each reporting period we review all of our investments in equity and debt securities, except for those classified as trading, to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the fair value of each investment. When such events or changes occur, we evaluate the fair value compared to our cost basis in the investment. We also perform this evaluation every reporting period for each investment for which our cost basis exceeded the fair value. The fair values of most of our investments in publicly traded companies are often readily available based on quoted market prices. For investments in nonpublicly traded companies, management's assessment of fair value is based on valuation methodologies including discounted cash flows, estimates of sales proceeds, and appraisals, as appropriate. We consider the assumptions that we believe hypothetical marketplace participants would use in evaluating estimated future cash flows when employing the discounted cash flow or estimates of sales proceeds valuation methodologies. In the event the fair value of an investment declines below our cost basis, management is required to determine if the decline in fair value is other than temporary. If management determines the decline is other than temporary, an impairment charge is recorded. Management's assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the extent to which the market value has been less than our cost basis; the financial condition and near-term prospects of the issuer; and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. Trade Accounts Receivable We record trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the trade accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on our history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and our relationships with, and the economic status of, our bottling partners and customers. We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations. Activity in the allowance for doubtful accounts was as follows (in millions): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 466 $ 352 $ 331 Net charges to costs and expenses 1 32 126 45 Write-offs (10 ) (10 ) (10 ) Other 2 (11 ) (2 ) (14 ) Balance at end of year $ 477 $ 466 $ 352 1 The increases in 2016 were primarily related to concentrate sales receivables from our bottling partner in Venezuela. See Hyperinflationary Economies discussion below for additional information. 2 Other includes foreign currency translation adjustments and the impact of reclassifying certain assets to assets held for sale. Refer to Note 2. A significant portion of our net operating revenues and corresponding accounts receivable is derived from sales of our products in international markets. Refer to Note 19 . We also generate a significant portion of our net operating revenues by selling concentrates and syrups to bottlers in which we have a noncontrolling interest. Refer to Note 6 . Inventories Inventories consist primarily of raw materials and packaging (which includes ingredients and supplies) and finished goods (which include concentrates and syrups in our concentrate operations and finished beverages in our finished product operations). Inventories are valued at the lower of cost or net realizable value. We determine cost on the basis of the average cost or first-in, first-out methods. Refer to Note 4 . Derivative Instruments Our Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. All derivatives are carried at fair value in our consolidated balance sheets in the following line items, as applicable: prepaid expenses and other assets; other assets; accounts payable and accrued expenses; and other liabilities. The cash flow impact of the Company's derivative instruments is primarily included in our consolidated statements of cash flows in net cash provided by operating activities. Refer to Note 5 . Property, Plant and Equipment Property, plant and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded principally by the straight-line method over the estimated useful lives of our assets, which are reviewed periodically and generally have the following ranges: buildings and improvements: 40 years or less; and machinery, equipment and vehicle fleet: 20 years or less. Land is not depreciated, and construction in progress is not depreciated until ready for service. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, including renewals that are deemed to be reasonably assured, or the estimated useful life of the improvement. Depreciation is not recorded during the period in which a long-lived asset or disposal group is classified as held for sale, even if the asset or disposal group continues to generate revenue during the period. Depreciation expense, including the depreciation expense of assets under capital lease, totaled $ 1,131 million , $ 1,575 million and $ 1,735 million in 2017 , 2016 and 2015 , respectively. Amortization expense for leasehold improvements totaled $ 19 million , $ 22 million and $ 18 million in 2017 , 2016 and 2015 , respectively. Certain events or changes in circumstances may indicate that the recoverability of the carrying amount of property, plant and equipment should be assessed, including, among others, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present, we estimate the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. We use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models, which are consistent with the assumptions we believe hypothetical marketplace participants would use. Refer to Note 7 . Goodwill, Trademarks and Other Intangible Assets We classify intangible assets into three categories: (1) intangible assets with definite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their useful lives, generally ranging from 1 to 20 years. Refer to Note 8 . When facts and circumstances indicate that the carrying value of definite-lived intangible assets may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of sales volume and the resulting profit and cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount of the asset or asset group exceeds the fair value. We use a variety of methodologies to determine the fair value of these assets, including discounted cash flow models, which are consistent with the assumptions we believe hypothetical marketplace participants would use. We test intangible assets determined to have indefinite useful lives, including trademarks, franchise rights and goodwill, for impairment annually, or more frequently if events or circumstances indicate that assets might be impaired. Our Company performs these annual impairment reviews as of the first day of our third fiscal quarter. We use a variety of methodologies in conducting impairment assessments of indefinite-lived intangible assets, including, but not limited to, discounted cash flow models, which are based on the assumptions we believe hypothetical marketplace participants would use. For indefinite-lived intangible assets, other than goodwill, if the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. The Company has the option to perform a qualitative assessment of indefinite-lived intangible assets, other than goodwill, rather than completing the impairment test. The Company must assess whether it is more likely than not that the fair value of the intangible asset is less than its carrying amount. If the Company concludes that this is the case, it must perform t |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions and Divestitures Disclosure [ | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Acquisitions During 2017 , our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $3,900 million , of which $3,150 million related to the transition of ABI's 54.5 percent controlling interest in CCBA to the Company, resulting in its consolidation in October 2017. The financial position and results of operations of CCBA are being accounted for as a discontinued operation. Refer to the "Discontinued Operations" section within this note below for further details. Additionally, in conjunction with the refranchising of Coca-Cola Refreshments' ("CCR") Southwest operating unit ("Southwest Transaction"), we obtained an equity interest in AC Bebidas, S. de R.L. de C.V. ("AC Bebidas"), a subsidiary of Arca Continental, S.A.B. de C.V. ("Arca"), primarily for non-cash consideration. Refer to the "North America Refranchising" section within this note below for further details. The remaining activity primarily related to the acquisition of AdeS, a plant-based beverage business, by the Company and several of its bottling partners in Latin America, and the acquisition of the U.S. rights to the Topo Chico premium sparkling water brand from AC Bebidas, an equity method investee. During 2016 , our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $838 million , which primarily related to our acquisition of Xiamen Culiangwang Beverage Technology Co., Ltd. ("China Green"), a maker of plant-based protein beverages in China, and a minority investment in CHI Limited ("CHI"), a Nigerian producer of value-added dairy and juice beverages, which is accounted for under the equity method of accounting. Under the terms of the agreement for our investment in CHI, the Company is obligated to acquire the remaining ownership interest from the existing shareowners in 2019 based on an agreed-upon formula. During 2015 , our Company's acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 2,491 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 year ended December 31, 2015. This bottler was deconsolidated in conjunction with the Coca-Cola Beverages Africa Proprietary Limited transaction discussed further below. Monster Beverage Corporation In June 2015, the Company and Monster entered into a long-term strategic relationship in the global energy drink category ("Monster Transaction"). As a result of the Monster Transaction, (1) the Company purchased newly issued shares of Monster common stock representing approximately 17 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 independent distribution partners. The Company and its bottling partners ("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 was originally 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 $125 million originally held in escrow was transferred to Monster in 2017 upon achievement of the related milestones. 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 initially held 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 interest in 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. As such, these rights were determined to be indefinite-lived intangible assets and were classified in the line item bottlers' franchise rights with indefinite lives on our consolidated balance sheet. At the time of the Monster Transaction, CCR was the distributor in the majority of the expanded territories. The remainder of the territories were 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 upon the close of the transaction. As consideration for these rights, the Company received an upfront payment of $28 million related to these territories, 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 consolidated statement of income during the year ended December 31, 2015. During the year ended December 31, 2015, 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 $1,403 million , which was recorded in the line item other income (loss) — net in our consolidated statement of income. Additionally, under the terms of the Monster Transaction, we were 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 consolidated statement of income. During the year ended December 31, 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 consolidated statement of cash flows. The remaining $530 million was classified in the line item other investing activities in our consolidated statement of cash flows. Divestitures During 2017 , proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $3,821 million , primarily related to proceeds from the refranchising of certain of our bottling territories in North America and our China bottling operations. During 2016 , proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $1,035 million , primarily related to proceeds from the refranchising of certain of our bottling territories in North America. During 2015 , proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $565 million , which included proceeds from the refranchising of certain of our bottling 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. North America Refranchising In conjunction with implementing a new beverage partnership model in North America, the Company refranchised bottling 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. By entering into 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. Each CBA generally has a term of 10 years and is renewable, in most cases by the bottler and in some cases by the Company, indefinitely for successive additional terms of 10 years each. Under the CBA, except for the CBA entered into in conjunction with the Southwest Transaction and for additional territories sold to AC Bebidas, the bottlers will make ongoing quarterly payments to the Company based on their gross profit in the refranchised territories throughout the term of the CBA, including renewals, in exchange for the grant of the exclusive territory rights. Liberty Coca-Cola Beverages, the co-owners of which are former management of CCR, will make ongoing quarterly payments based on the gross profit in its refranchised territories upon the earlier of reaching a predefined level of profitability, or the 41 st quarter following the closing date. 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, excluding the territory included in the Southwest Transaction, to the respective bottlers in exchange for cash. In 2016, the Company formed a new National Product Supply System ("NPSS") to facilitate optimal operation of the U.S. product supply system. Under the NPSS, the Company and several of its existing independent producing bottlers administer key national product supply activities for these bottlers. Additionally, we have sold certain production facilities from CCR to these independent producing bottlers in exchange for cash, excluding production facilities included in the Southwest Transaction. During the years ended December 31, 2017 , December 31, 2016 and December 31, 2015 , cash proceeds from these sales totaled $2,860 million , $1,017 million and $362 million , respectively. Included in the cash proceeds for the years ended December 31, 2017 , December 31, 2016 and December 31, 2015 was $336 million , $279 million and $83 million , respectively, from Coca-Cola Bottling Co. Consolidated ("CCBCC"), an equity method investee. Also included in the cash proceeds for the year ended December 31, 2017, was $220 million from AC Bebidas, and $39 million from Liberty Coca-Cola Beverages. 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 $3,177 million , $2,456 million and $1,006 million during the years ended December 31, 2017 , December 31, 2016 and December 31, 2015 , respectively. Included in these amounts are losses from transactions with equity method investees or former management of $1,104 million , $492 million and $379 million , during the years ended December 31, 2017 , December 31, 2016 and December 31, 2015 , respectively. These losses primarily related to the derecognition of the intangible assets transferred or reclassified as held for sale and were included in the line item other income (loss) — net in our consolidated statements of income. The losses in 2017 included $236 million of expense associated with an indemnification liability related to an underfunded multi-employer benefit plan in which employees of certain of its refranchised territories participate. As of December 31, 2017, CCR had completed the refranchising of its U.S. bottling operations, with the exception of its operations in the U.S. Virgin Islands, which are classified as held for sale. See further discussion of assets and liabilities held for sale below. In total, 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. During the years ended December 31, 2017 and December 31, 2016 , the Company incurred losses of $313 million and $31 million , respectively, primarily related to payments made to certain of our unconsolidated bottling partners in order to convert the bottling agreements for their legacy territories and any previously refranchised territories to a single form of CBA with additional requirements. The additional requirements generally include a binding national governance model, mandatory incidence pricing and additional core performance requirements, among other things. As a result of these conversions, the legacy territories and any previously refranchised territories for each of the related bottling partners will be governed under similar CBAs, which will provide consistency across each such bottler's respective territory, and consistency with other U.S. bottlers that have been granted or converted to this form of CBA. The losses related to these payments were included in the line item other income (loss) — net in our consolidated statements of income during the years ended December 31, 2017 and December 31, 2016 . On April 1, 2017, the Company refranchised the Southwest operating unit of CCR, which includes Texas and parts of Oklahoma, New Mexico and Arkansas, in the Southwest Transaction. In conjunction with the Southwest Transaction, Arca contributed its existing beverage business to AC Bebidas. CCR contributed its Southwest operating unit, including all of its assets and liabilities, to AC Bebidas in exchange for an approximate 20 percent interest in AC Bebidas. Arca owns the remaining interest in AC Bebidas. Additionally, CCR made cash payments of $144 million , net of cash received. As a result of the Southwest Transaction, the Company recognized a gain of $1,037 million due to the difference in the recorded carrying value of the net assets transferred compared to the value of the interest it obtained in AC Bebidas of $2,960 million , which was determined using an income and market approach (a Level 3 measurement). This gain was recorded in the line item other income (loss) — net in our consolidated statement of income. AC Bebidas will participate in the NPSS as it relates to its U.S. territory. The Company accounts for its interest in AC Bebidas as an equity method investment based on our equity ownership percentage, our representation on AC Bebidas' Board of Directors, material intercompany transactions and other governance rights. Refer to Note 19 for the impact these items had on our operating segments. Refranchising of China Bottling Operations In November 2016, the Company entered into definitive agreements for the sale of the Company-owned bottling operations in China to the two existing local franchise bottlers, one of which is an equity method investee, and to sell a related cost method investment to one of the franchise bottlers. As a result, the Company's bottling operations in China and a related cost method investment were classified as held for sale as of December 31, 2016. We received net proceeds of $963 million as a result of these sales and recognized a gain of $88 million during the year ended December 31, 2017, which was included in the line item other income (loss) — net in our consolidated statement of income. Coca-Cola European Partners In May 2016, the Company merged our German bottling operations with Coca-Cola Enterprises, Inc. ("CCE") and Coca-Cola Iberian Partners, S.A.U., formerly known as Coca-Cola Iberian Partners, S.A. ("CCIP"), to create Coca-Cola European Partners plc ("CCEP"). In exchange for our German bottling operations, we received an 18 percent interest in CCEP. As a result of recording our interest in CCEP at fair value based on its quoted market price (a Level 1 measurement), the deconsolidation of our German bottling operations, and the related reversal of its cumulative translation adjustments, we recognized a gain of $1,400 million . This gain was partially offset by a $77 million loss incurred as a result of reclassifying losses related to our net investment hedges of our German bottling operations from AOCI into earnings as well as transaction costs incurred resulting in a net gain of $1,287 million during the year ended December 31, 2016 . Refer to Note 15. With the exception of the transaction costs, the net gain was recorded in the line item other income (loss) — net in our consolidated statement of income. The Company accounts for its interest in CCEP as an equity method investment based on our equity ownership percentage, our representation on CCEP's Board of Directors, material intercompany transactions and other governance rights. Coca-Cola Beverages Africa Proprietary Limited In July 2016, the Company, SABMiller plc and Gutsche Family Investments combined the bottling operations of each of the parties' nonalcoholic ready-to-drink beverage businesses in Southern and East Africa to form a new bottler, which is called CCBA. The Company: (1) contributed its South African bottling operations to CCBA, which included certain wholly owned subsidiaries and an equity method investment, (2) paid $150 million in cash, (3) obtained a 12 percent interest in CCBA and a 3 percent interest in CCBA's South African subsidiary and (4) acquired several trademarks that are generally indefinite-lived. As a result of recording our interests in CCBA and its South African subsidiary at fair value, the deconsolidation of our South African bottling operations, the derecognition of the equity method investment, and the reversal of related cumulative translation adjustments, we recognized a loss of $21 million . The fair values of the equity investments in CCBA and CCBA's South African subsidiary, along with the acquired trademarks, were determined using income approaches, including discounted cash flow models (a Level 3 measurement), and the Company believes the inputs and assumptions used are consistent with those hypothetical marketplace participants would use. The loss recognized resulted primarily from the reversal of the related cumulative translation adjustments. This loss is recorded in the line item other income (loss) — net in our consolidated statement of income during the year ended December 31, 2016 . Based on the level of equity ownership, the Company's representation on CCBA's Board of Directors (two of its ten members) and other governance rights, the Company accounted for its interests in CCBA and CCBA's South African subsidiary as equity method investments. The Company's interest in CCBA provided it with a call option to acquire the ownership interest of SABMiller plc at fair value upon the occurrence of certain events, including upon a change in control of SABMiller plc. In October 2016, ABI acquired SABMiller plc, including its 54.5 percent controlling interest in CCBA. In October 2017, the Company and ABI completed the transition of ABI's controlling interest in CCBA to the Company for $3,150 million . We plan to hold our controlling interest in CCBA temporarily and are currently in discussions with several potential buyers. Accordingly, we have presented the financial position and results of operations of CCBA as discontinued operations in the accompanying consolidated financial statements from its date of acquisition. See further discussion of discontinued operations below. Keurig Green Mountain, Inc. In 2014, the Company purchased a 12 percent equity position in Keurig Green Mountain, Inc. ("Keurig") for $1,567 million . In February 2015, the Company purchased an additional 4 percent ownership interest from Credit Suisse Capital LLC under an 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 our consolidated statement of income during the year ended December 31, 2015. The purchases of the shares were included in the line item purchases of investments in our consolidated statement of cash flows, net of any related derivative impact. The Company accounted for the investment in Keurig as an available-for-sale security. In March 2016, a JAB Holding Company-led investor group acquired Keurig. The Company received proceeds of $2,380 million , which were recorded in the line item proceeds from disposals of investments in our consolidated statement of cash flows, and recorded a gain of $18 million related to the disposal of our shares of Keurig in the line item other income (loss) — net in our consolidated statement of income during the year ended December 31, 2016 . Brazilian Bottling Operations In January 2015, the owners of the majority interest in a Brazilian bottling operation exercised their option to acquire from us shares representing a 10 percent interest in the entity's outstanding shares. We recorded a loss of $6 million as a result of the exercise price being lower than our carrying value of these shares. As a result of this 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 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 As of December 31, 2017 , the Company had entered into agreements to refranchise its U.S. Virgin Islands bottling territories. As these bottling territories met the criteria to be classified as held for sale, we were required to record their assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price and present the related assets and liabilities as separate line items in our consolidated balance sheet. These bottling territories were refranchised in January 2018. In addition, the Company had certain bottling operations in Latin America that met the criteria to be classified as held for sale, which requires us to present the related assets and liabilities as separate line items in our consolidated balance sheet. We were not required to record these assets and liabilities at fair value less any costs to sell because their fair value approximates their carrying value. The Company expects these operations to be refranchised during 2018. The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our consolidated balance sheets (in millions): December 31, 2017 December 31, 2016 Cash, cash equivalents and short-term investments $ 13 $ 49 Trade accounts receivable, less allowances 10 43 Inventories 11 264 Prepaid expenses and other assets 12 114 Equity method investments — 1 Other investments — 42 Other assets 7 17 Property, plant and equipment — net 85 1,780 Bottlers' franchise rights with indefinite lives 5 1,388 Goodwill 103 390 Other intangible assets 1 51 Allowance for reduction of assets held for sale (28 ) (1,342 ) Assets held for sale $ 219 1 $ 2,797 3 Accounts payable and accrued expenses $ 22 $ 393 Accrued income taxes — 13 Other liabilities 12 1 Deferred income taxes 3 303 Liabilities held for sale $ 37 2 $ 710 4 1 Consists of total assets relating to North America refranchising of $9 million and Latin America bottling operations of $210 million , which are included in the Bottling Investments operating segment. 2 Consists of total liabilities relating to North America refranchising of $5 million and Latin America bottling operations of $32 million , which are included in the Bottling Investments operating segment. 3 Consists of total assets relating to North America refranchising of $1,247 million , China bottling operations of $1,533 million and other assets held for sale of $17 million , which are included in the Bottling Investments and Corporate operating segments. 4 Consists of total liabilities relating to North America refranchising of $224 million , China bottling operations of $483 million and other liabilities held for sale of $3 million , which are included in the Bottling Investments and Corporate operating segments. We determined that the operations included in the table above did not meet the criteria to be classified as discontinued operations under the applicable guidance. Discontinued Operations In October 2017, the Company and ABI completed the transition of ABI's controlling interest in CCBA to the Company for $3,150 million . We plan to hold our controlling interest in CCBA temporarily and are currently in discussions with several potential buyers, and anticipate divesting of this interest in 2018. Accordingly, we have presented the financial position and results of operations of CCBA as discontinued operations in the accompanying consolidated financial statements from its date of consolidation. Upon consolidation of CCBA, we remeasured our previously held equity interests in CCBA and its South African subsidiary to fair value and recorded a gain on the remeasurement of $150 million . The fair values in our previously held equity investments in CCBA and its South African subsidiary were determined using income approaches, including discounted cash flow models (a Level 3 measurement), and the Company believes the inputs and assumptions used are consistent with those hypothetical marketplace participants would use. We recorded the noncontrolling interests of CCBA at an estimated fair value of $1,805 million . The fair value of the noncontrolling interests was assessed in a manner similar to our previously held equity investments. The preliminary goodwill recorded at the time of the transaction was $4,262 million , none of which is tax deductible. This goodwill is in part due to the significant synergies that are expected from the consolidation of the bottling system in Southern and East Africa, especially within the country of South Africa. The initial accounting for the business combination is currently incomplete, although preliminary purchase accounting entries have been recorded. The disclosures that are expected to be impacted by the completion of purchase accounting are the classification of assets held for sale — discontinued operations and liabilities held for sale — discontinued operations in the notes to the consolidated financial statements. The following table presents information related to the major classes of assets and liabilities of CCBA that were classified as held for sale — discontinued operations in our consolidated balance sheet (in millions): December 31, 2017 Cash, cash equivalents and short-term investments $ 97 Trade accounts receivable, less allowances 299 Inventories 299 Prepaid expenses and other assets 52 Equity method investments 7 Other assets 29 Property, plant and equipment — net 1,436 Goodwill 4,248 Other intangible assets 862 Assets held for sale — discontinued operations $ 7,329 Accounts payable and accrued expenses $ 598 Loans and notes payable 404 Current maturities of long-term debt 6 Accrued income taxes 40 Long-term debt 19 Other liabilities 10 Deferred income taxes 419 Liabilities held for sale — discontinued operations $ 1,496 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Investments Disclosure [Abstract] | |
INVESTMENTS | INVESTMENTS Investments in debt and marketable securities, other than investments accounted for under the equity method, are classified as trading, available-for-sale or held-to-maturity. Our marketable equity investments are classified as either trading or available-for-sale with their cost basis determined by the specific identification method. Our investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Realized and unrealized gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in net income. Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in our consolidated balance sheets as a component of AOCI, except for the change in fair value attributable to the currency risk being hedged. Refer to Note 5 for additional information related to the Company's fair value hedges of available-for-sale securities. Trading Securities As of December 31, 2017 and 2016 , our trading securities had a fair value of $ 407 million and $ 384 million , respectively, and consisted primarily of equity securities. The Company had net unrealized gains on trading securities of $ 67 million , $ 39 million and $ 19 million as of December 31, 2017 , 2016 and 2015 , respectively. The Company's trading securities were included in the following line items in our consolidated balance sheets (in millions): December 31, 2017 2016 Marketable securities $ 295 $ 282 Other assets 112 102 Total $ 407 $ 384 Available-for-Sale and Held-to-Maturity Securities As of December 31, 2017 and 2016 , the Company did not have any held-to-maturity securities. Available-for-sale securities consisted of the following (in millions): Gross Unrealized Estimated Fair Value Cost Gains Losses 2017 Available-for-sale securities: 1 Equity securities $ 1,276 $ 685 $ (66 ) $ 1,895 Debt securities 5,782 157 (27 ) 5,912 Total $ 7,058 $ 842 $ (93 ) $ 7,807 2016 Available-for-sale securities: 1 Equity securities $ 1,252 $ 425 $ (22 ) $ 1,655 Debt securities 4,700 89 (31 ) 4,758 Total $ 5,952 $ 514 $ (53 ) $ 6,413 1 Refer to Note 16 for additional information related to the estimated fair value. The sale and/or maturity of available-for-sale securities resulted in the following realized activity (in millions): Year Ended December 31, 2017 2016 2015 Gross gains $ 68 $ 152 $ 103 Gross losses (32 ) (51 ) (42 ) Proceeds 14,205 11,540 4,043 As of December 31, 2017 and 2016 , the Company had investments classified as available-for-sale securities in which our cost basis exceeded the fair value of our investment. Management assessed each of these investments on an individual basis to determine if the decline in fair value was other than temporary. Management's assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the extent to which the market value has been less than our cost basis; the financial condition and near-term prospects of the issuer; and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. As a result of these assessments, management determined that the decline in fair value of these investments was not other than temporary and did not record any impairment charges. The Company uses two of its consolidated 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 captives are required to meet and maintain minimum solvency capital requirements. The Company elected to invest its solvency capital in a portfolio of available-for-sale securities, which have been classified in the line item other assets in our consolidated balance sheets because the assets are not available to satisfy our current obligations. As of December 31, 2017 and 2016 , the Company's available-for-sale securities included solvency capital funds of $ 1,159 million and $ 985 million , respectively. As of December 31, 2017 and 2016 , the Company did not have any held-to-maturity securities. The Company's available-for-sale securities were included in the following line items in our consolidated balance sheets (in millions): December 31, 2017 2016 Cash and cash equivalents $ 667 $ 682 Marketable securities 5,022 3,769 Other investments 953 849 Other assets 1,165 1,113 Total $ 7,807 $ 6,413 The contractual maturities of these available-for-sale securities as of December 31, 2017 were as follows (in millions): Cost Estimated Fair Value Within 1 year $ 1,433 $ 1,491 After 1 year through 5 years 3,929 3,983 After 5 years through 10 years 103 117 After 10 years 317 321 Equity securities 1,276 1,895 Total $ 7,058 $ 7,807 The Company expects that actual maturities may differ from the contractual maturities above because borrowers have the right to call or prepay certain obligations. Cost Method Investments Cost method investments are initially recorded at cost, and we record dividend income when applicable dividends are declared. Cost method investments are reported as other investments in our consolidated balance sheets, and dividend income from cost method investments is reported in other income (loss) — net in our consolidated statements of income. We review all of our cost method investments quarterly to determine if impairment indicators are present; however, we are not required to determine the fair value of these investments unless impairment indicators exist. When impairment indicators exist, we generally use discounted cash flow analyses to determine the fair value. We estimate that the fair values of our cost method investments approximated or exceeded their carrying values as of December 31, 2017 and 2016 . Our cost method investments had a carrying value of $ 143 million and $ 140 million as of December 31, 2017 and 2016 , respectively. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
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 net realizable value. We determine cost on the basis of the average cost or first-in, first-out methods. Inventories consisted of the following (in millions): December 31, 2017 2016 Raw materials and packaging $ 1,729 $ 1,565 Finished goods 693 844 Other 233 266 Total inventories $ 2,655 $ 2,675 |
HEDGING TRANSACTIONS AND DERIVA
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Hedging Transactions and Derivative Financial Instruments Disclosures [Abstract] | |
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS | HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company's financial performance and are referred to as "market risks." 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 also designate certain non-derivative instruments, such as our foreign-denominated debt, in hedging relationships. All derivatives are carried at fair value in our consolidated balance sheets, primarily in the following line items, as applicable: prepaid expenses and other assets; other assets; accounts payable and accrued expenses; and other liabilities. The carrying values of the derivatives reflect the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. These master netting agreements allow the Company to net settle positive and negative positions (assets and liabilities) arising from different transactions with the same counterparty. The accounting for gains and losses that result from changes in the fair values of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments and the type of hedging relationships. Derivatives can be designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations. The changes in the fair values of derivatives that have been designated and qualify for fair value hedge accounting are recorded in the same line item in our consolidated statement 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 consolidated statement of income in which the hedged items are recorded in the same period the hedged items affect earnings. Due to the high degree of effectiveness between the hedging instruments and the underlying exposures being hedged, fluctuations in the value of the derivative instruments are generally offset by changes in the fair values or cash flows of the underlying exposures being hedged. The changes in the fair values of derivatives that were not designated and/or did not qualify as hedging instruments are immediately recognized into earnings. For derivatives that will be accounted for as hedging instruments, the Company formally designates and documents, at inception, the financial instrument as a hedge of a specific underlying exposure, the risk management objective and the strategy for undertaking the hedge transaction. In addition, the Company formally assesses, both at the inception and at least quarterly thereafter, whether the financial instruments used in hedging transactions are effective at offsetting changes in either the fair values or cash flows of the related underlying exposures. Any ineffective portion of a financial instrument's change in fair value is immediately recognized into earnings. The Company determines the fair values of its derivatives based on quoted market prices or pricing models using current market rates. Refer to Note 16 . The notional amounts of the derivative financial instruments do not necessarily represent amounts exchanged by the parties and, therefore, are not a direct measure of our exposure to the financial risks described above. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign currency exchange rates, commodity rates or other financial indices. The Company does not view the fair values of its derivatives in isolation but rather in relation to the fair values or cash flows of the underlying hedged transactions or other exposures. Virtually all of our derivatives are straightforward over-the-counter instruments with liquid markets. The following table presents the fair values of the Company's derivative instruments that were designated and qualified as part of a hedging relationship (in millions): Fair Value 1,2 Derivatives Designated as Hedging Instruments Balance Sheet Location 1 December 31, December 31, Assets: Foreign currency contracts Prepaid expenses and other assets $ 45 $ 400 Foreign currency contracts Other assets 79 60 Interest rate contracts Other assets 52 105 Total assets $ 176 $ 565 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 69 $ 40 Foreign currency contracts Other liabilities 9 54 Foreign currency contracts Liabilities held for sale — discontinued operations 8 — Commodity contracts Accounts payable and accrued expenses — 1 Commodity contracts Liabilities held for sale — discontinued operations 4 — Interest rate contracts Accounts payable and accrued expenses 30 36 Interest rate contracts Other liabilities 39 47 Total liabilities $ 159 $ 178 1 All of the Company's derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 16 for the net presentation of the Company's derivative instruments. 2 Refer to Note 16 for additional information related to the estimated fair value. The following table presents the fair values of the Company's derivative instruments that were not designated as hedging instruments (in millions): Fair Value 1,2 Derivatives Not Designated as Hedging Instruments Balance Sheet Location 1 December 31, December 31, Assets: Foreign currency contracts Prepaid expenses and other assets $ 20 $ 284 Foreign currency contracts Other assets 27 — Commodity contracts Prepaid expenses and other assets 25 27 Commodity contracts Other assets 1 1 Other derivative instruments Prepaid expenses and other assets 8 4 Other derivative instruments Other assets — 1 Total assets $ 81 $ 317 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 69 $ 60 Foreign currency contracts Other liabilities 28 16 Commodity contracts Accounts payable and accrued expenses 7 16 Commodity contracts Other liabilities — 1 Interest rate contracts Accounts payable and accrued expenses — 8 Interest rate contracts Other liabilities — 1 Other derivative instruments Accounts payable and accrued expenses 1 2 Other derivative instruments Other liabilities 1 5 Total liabilities $ 106 $ 109 1 All of the Company's derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 16 for the net presentation of the Company's derivative instruments. 2 Refer to Note 16 for additional information related to the estimated fair value. Credit Risk Associated with Derivatives We have established strict counterparty credit guidelines and enter into transactions only with financial institutions of investment grade or better. We monitor counterparty exposures regularly and review any downgrade in credit rating immediately. If a downgrade in the credit rating of a counterparty were to occur, we have provisions requiring collateral for substantially all of our transactions. To mitigate presettlement risk, minimum credit standards become more stringent as the duration of the derivative financial instrument increases. In addition, the Company's master netting agreements reduce credit risk by permitting the Company to net settle for transactions with the same counterparty. To minimize the concentration of credit risk, we enter into derivative transactions with a portfolio of financial institutions. Based on these factors, we consider the risk of counterparty default to be minimal. Cash Flow Hedging Strategy The Company uses cash flow hedges to minimize the variability in cash flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates, commodity prices or interest rates. The changes in the fair values of derivatives designated as cash flow hedges are recorded in AOCI and are reclassified into the line item in our consolidated statement of income in which the hedged items are recorded in the same period the hedged items affect earnings. The changes in fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings. The maximum length of time for which the Company hedges its exposure to the variability in future cash flows is typically three years . The Company maintains a foreign currency cash flow hedging program to reduce the risk that our eventual U.S. dollar net cash inflows from sales outside the United States and U.S. dollar net cash outflows from procurement activities will be adversely affected by changes in foreign currency exchange rates. We enter into forward contracts and purchase foreign currency options (principally euros and Japanese yen) and collars to hedge certain portions of forecasted cash flows denominated in foreign currencies. When the U.S. dollar strengthens against the foreign currencies, the decline in the present value of future foreign currency cash flows is partially offset by gains in the fair value of the derivative instruments. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is partially offset by losses in the fair value of the derivative instruments. The total notional values of derivatives that have been designated and qualify for the Company's foreign currency cash flow hedging program were $ 4,068 million and $ 6,074 million as of December 31, 2017 and 2016 , respectively. The Company uses cross-currency swaps to hedge the changes in cash flows of certain of its foreign currency denominated debt due to changes in foreign currency exchange rates. For this hedging program, the Company records the change in carrying value of the foreign currency denominated debt due to changes in exchange rates into earnings each period. The changes in fair value of the cross-currency swap derivatives are recorded in AOCI with an immediate reclassification into earnings for the change in fair value attributable to fluctuations in foreign currency exchange rates. During the year ended December 31, 2015 , the Company discontinued the cash flow hedge relationships related to these swaps. 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 cross-currency swaps designated as a cash flow hedge during the years ended December 31, 2017 and 2016 . The total notional values of derivatives that have been designated as cash flow hedges for the Company's foreign currency denominated debt were $1,851 million as of December 31, 2017 and 2016 , respectively. The Company has entered into commodity futures contracts and other derivative instruments on various commodities to mitigate the price risk associated with forecasted purchases of materials used in our manufacturing process. These derivative instruments have been designated and qualify as part of the Company's commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of certain commodities. The total notional values of derivatives that have been designated and qualify for this program were $ 35 million and $ 12 million as of December 31, 2017 and 2016 , respectively. Our Company monitors our mix of short-term debt and long-term debt regularly. From time to time, we manage our risk to interest rate fluctuations through the use of derivative financial instruments. The Company has entered into interest rate swap agreements and has designated these instruments as part of the Company's interest rate cash flow hedging program. The objective of this hedging program is to mitigate the risk of adverse changes in benchmark interest rates on the Company's future interest payments. The total notional values of these interest rate swap agreements that were designated and qualified for the Company's interest rate cash flow hedging program were $ 500 million and $ 1,500 million as of December 31, 2017 and 2016 , respectively. The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the years ended December 31, 2017 , 2016 and 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) 2017 Foreign currency contracts $ (226 ) Net operating revenues $ 443 $ 1 Foreign currency contracts (23 ) Cost of goods sold (2 ) — 2 Foreign currency contracts — Interest expense (9 ) — Foreign currency contracts 92 Other income (loss) — net 107 3 Foreign currency contracts (3 ) Income from discontinued operations — — Interest rate contracts (22 ) Interest expense (37 ) 2 Commodity contracts (1 ) Cost of goods sold (1 ) — Commodity contracts (5 ) Income from discontinued operations — — Total $ (188 ) $ 501 $ 6 2016 Foreign currency contracts $ 69 Net operating revenues $ 567 $ (3 ) Foreign currency contracts 8 Cost of goods sold 35 (1 ) Foreign currency contracts — Interest expense (9 ) — Foreign currency contracts 13 Other income (loss) — net (3 ) (3 ) Interest rate contracts (126 ) Interest expense (17 ) (2 ) Commodity contracts (1 ) Cost of goods sold (1 ) — Total $ (37 ) $ 572 $ (9 ) 2015 Foreign currency contracts $ 949 Net operating revenues $ 618 $ 12 Foreign currency contracts 60 Cost of goods sold 62 — 2 Foreign currency contracts 18 Interest expense (9 ) — Foreign currency contracts (38 ) Other income (loss) — net (40 ) — Interest rate contracts (153 ) Interest expense (3 ) 1 Commodity contracts (1 ) Cost of goods sold (3 ) — Total $ 835 $ 625 $ 13 1 The Company records gains and losses reclassified from AOCI into income for the effective portion and ineffective portion, if any, to the same line items in our consolidated statements of income. 2 Includes a de minimis amount of ineffectiveness in the hedging relationship. As of December 31, 2017 , the Company estimates that it will reclassify into earnings during the next 12 months net gains of $ 93 million from the pretax amount recorded in AOCI as the anticipated cash flows occur. Fair Value Hedging Strategy The Company uses interest rate swap agreements designated as fair value hedges to minimize exposure to changes in the fair value of fixed-rate debt that results from fluctuations in benchmark interest rates. The Company also uses cross-currency interest rate swaps to hedge the changes in the fair value of foreign currency denominated debt relating to changes in foreign currency exchange rates and 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 into earnings. As of December 31, 2017 , such adjustments had cumulatively increased the carrying value of our long-term debt by $ 4 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 face 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 $ 8,121 million and $ 6,158 million as of December 31, 2017 and 2016 , 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 due to changes in foreign currency exchange rates 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 $ 311 million and $ 1,163 million as of December 31, 2017 and 2016 , 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 years ended December 31, 2017 , 2016 and 2015 (in millions): Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income 1 2017 Interest rate contracts Interest expense $ (69 ) Fixed-rate debt Interest expense 63 Net impact to interest expense $ (6 ) Foreign currency contracts Other income (loss) — net $ (37 ) Available-for-sale securities Other income (loss) — net 44 Net impact to other income (loss) — net $ 7 Net impact of fair value hedging instruments $ 1 2016 Interest rate contracts Interest expense $ 170 Fixed-rate debt Interest expense (152 ) Net impact to interest expense $ 18 Foreign currency contracts Other income (loss) — net $ 69 Available-for-sale securities Other income (loss) — net (73 ) Net impact to other income (loss) — net $ (4 ) Net impact of fair value hedging instruments $ 14 2015 Interest rate contracts Interest expense $ (172 ) Fixed-rate debt Interest expense 169 Net impact to interest expense $ (3 ) Foreign currency contracts Other income (loss) — net $ 110 Available-for-sale securities Other income (loss) — net (131 ) Net impact to other income (loss) — net $ (21 ) Net impact of fair value hedging instruments $ (24 ) 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 net investments in a number of foreign operations. During the years ended December 31, 2017 , 2016 and 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 foreign currency 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 December 31, Year Ended December 31, 2017 2016 2017 2016 2015 Foreign currency contracts $ — $ 100 $ (7 ) $ (237 ) $ 661 Foreign currency denominated debt 13,147 11,113 (1,505 ) 304 (24 ) Total $ 13,147 $ 11,213 $ (1,512 ) $ 67 $ 637 The Company reclassified net deferred losses of $77 million related to the deconsolidation of our German bottling operations from AOCI into earnings during the year ended December 31, 2016 . The Company did not reclassify any deferred gains or losses related to net investment hedges from AOCI to earnings during the years ended December 31, 2017 and 2015 . In addition, the Company did not have any ineffectiveness related to net investment hedges during the years ended December 31, 2017 , 2016 and 2015 . 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 consolidated statements of cash flows. Economic (Non-Designated) Hedging Strategy In addition to derivative instruments that are designated and qualify for hedge accounting, the Company also uses certain derivatives as economic hedges of foreign currency, 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 value of economic hedges are immediately recognized into earnings. The Company uses foreign currency economic hedges to offset the earnings impact that fluctuations in foreign currency exchange rates have on certain monetary assets and liabilities denominated in nonfunctional currencies. The changes in fair value of economic hedges used to offset those monetary assets and liabilities are immediately recognized into earnings in the line item other income (loss) — net in our consolidated statements of income. In addition, we use foreign currency economic hedges to minimize the variability in cash flows associated with 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 consolidated statements of income, as applicable. The total notional values of derivatives related to our foreign currency economic hedges were $ 6,827 million and $ 5,276 million as of December 31, 2017 and 2016 , respectively. The Company also uses certain derivatives as economic hedges to mitigate the price risk associated with the purchase of materials used in the manufacturing process and for vehicle fuel. The changes in fair values of these economic hedges are immediately recognized into earnings in the line items net operating revenues, cost of goods sold, and selling, general and administrative expenses in our consolidated statements of income, as applicable. The total notional values of derivatives related to our economic hedges of this type were $ 357 million and $ 447 million as of December 31, 2017 and 2016 , respectively. The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the years ended December 31, 2017 , 2016 and 2015 (in millions): Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Year Ended December 31, 2017 2016 2015 Foreign currency contracts Net operating revenues $ (30 ) $ (45 ) $ 41 Foreign currency contracts Cost of goods sold (1 ) 4 3 Foreign currency contracts Other income (loss) — net 73 (168 ) (92 ) Commodity contracts Net operating revenues 16 10 (16 ) Commodity contracts Cost of goods sold 15 75 (209 ) Commodity contracts Selling, general and administrative expenses 1 6 (25 ) Interest rate contracts Interest expense — (39 ) — Other derivative instruments Selling, general and administrative expenses 46 16 1 Other derivative instruments Other income (loss) — net 1 (15 ) (37 ) Total $ 121 $ (156 ) $ (334 ) |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY METHOD INVESTMENTS [Abstract] | |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS Our consolidated net income includes our Company's proportionate share of the net income or loss of our equity method investees. When we record our proportionate share of net income, it increases equity income (loss) — net in our consolidated statements of income and our carrying value in that investment. Conversely, when we record our proportionate share of a net loss, it decreases equity income (loss) — net in our consolidated statements of income and our carrying value in that investment. The Company's proportionate share of the net income or loss of our equity method investees includes significant operating and nonoperating items recorded by our equity method investees. These items can have a significant impact on the amount of equity income (loss) — net in our consolidated statements of income and our carrying value in those investments. Refer to Note 17 for additional information related to significant operating and nonoperating items recorded by our equity method investees. The carrying values of our equity method investments are also impacted by our proportionate share of items impacting the equity investee's AOCI. We eliminate from our financial results all significant intercompany transactions, including the intercompany portion of transactions with equity method investees. The Company's equity method investments include, but are not limited to, our ownership interests in CCEP, Monster, AC Bebidas, Coca-Cola FEMSA, S.A.B. de C.V. ("Coca-Cola FEMSA"), Coca-Cola HBC AG ("Coca-Cola Hellenic"), and Coca-Cola Bottlers Japan Inc. ("CCBJI"). As of December 31, 2017 , we owned approximately 18 percent , 18 percent , 20 percent , 28 percent , 23 percent , and 17 percent , respectively, of these companies' outstanding shares. As of December 31, 2017 , our investment in our equity method investees in the aggregate exceeded our proportionate share of the net assets of these equity method investees by $ 9,932 million . This difference is not amortized. A summary of financial information for our equity method investees in the aggregate is as follows (in millions): Year Ended December 31, 1 2017 2016 2015 Net operating revenues $ 73,339 $ 58,054 $ 47,498 Cost of goods sold 42,867 34,338 28,749 Gross profit $ 30,472 $ 23,716 $ 18,749 Operating income $ 7,577 $ 5,652 $ 4,483 Consolidated net income $ 4,545 $ 2,967 $ 2,299 Less: Net income attributable to noncontrolling interests 120 78 65 Net income attributable to common shareowners $ 4,425 $ 2,889 $ 2,234 Equity income (loss) — net $ 1,071 $ 835 $ 489 1 The financial information represents the results of the equity method investees during the Company's period of ownership. December 31, 2017 2016 Current assets $ 25,023 $ 19,586 Noncurrent assets 66,578 58,529 Total assets $ 91,601 $ 78,115 Current liabilities $ 17,890 $ 16,125 Noncurrent liabilities 29,986 25,610 Total liabilities $ 47,876 $ 41,735 Equity attributable to shareowners of investees $ 41,773 $ 35,204 Equity attributable to noncontrolling interests 1,952 1,176 Total equity $ 43,725 $ 36,380 Company equity investment $ 20,856 $ 16,260 Net sales to equity method investees, the majority of which are located outside the United States, were $ 14,144 million , $ 10,495 million and $ 8,984 million in 2017 , 2016 and 2015 , respectively. The increase in net sales to equity method investees in 2017 was primarily due to our acquisition of equity method investments in CCEP and AC Bebidas, as well as the integration of Coca-Cola West Co., Ltd. ("CCW") and Coca-Cola East Japan Co., Ltd. ("CCEJ") to establish CCBJI in 2017 . Refer to Note 2. Total payments, primarily marketing, made to equity method investees were $ 930 million , $ 946 million and $ 1,380 million in 2017 , 2016 and 2015 , respectively. In addition, purchases of beverage products from equity method investees were $ 1,298 million , $ 1,857 million and $ 1,131 million in 2017 , 2016 and 2015 , respectively. The decrease in purchases of beverage products in 2017 was primarily due to reduced purchases of Monster products as a result of North America refranchising activities. Refer to Note 2. If valued at the December 31, 2017 quoted closing prices of shares actively traded on stock markets, the value of our equity method investments in publicly traded bottlers would have exceeded our carrying value by $ 8,504 million . However, the carrying value of our investment in CCEP exceeded the fair value of the investment as of December 31, 2017 by $196 million . Based on 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, management determined that the decline in fair value was temporary in nature. Therefore, we did not record an impairment charge. Net Receivables and Dividends from Equity Method Investees Total net receivables due from equity method investees were $ 2,053 million and $ 1,696 million as of December 31, 2017 and 2016 , respectively. The total amount of dividends received from equity method investees was $ 443 million , $ 386 million and $ 367 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The amount of consolidated reinvested earnings that represents undistributed earnings of investments accounted for under the equity method as of December 31, 2017 was $4,471 million . |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant and Equipament [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The following table summarizes our property, plant and equipment (in millions): December 31, 2017 2016 Land $ 334 $ 589 Buildings and improvements 3,917 4,574 Machinery, equipment and vehicle fleet 12,198 16,093 16,449 21,256 Less accumulated depreciation 8,246 10,621 Property, plant and equipment — net $ 8,203 $ 10,635 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Indefinite-Lived Intangible Assets The following table summarizes information related to indefinite-lived intangible assets (in millions): December 31, 2017 2016 Trademarks 1 $ 6,729 $ 6,097 Bottlers' franchise rights 2 138 3,676 Goodwill 9,401 10,629 Other 106 128 Indefinite-lived intangible assets $ 16,374 $ 20,530 1 The increase in 2017 was primarily due to the acquisitions of AdeS and the U.S. rights to Topo Chico. Refer to Note 2 . 2 The decrease in 2017 was primarily the result of additional North America bottling territories being refranchised. Refer to Note 2 . The following table provides information related to the carrying value of our goodwill by operating segment (in millions): Europe, Middle East & Africa Latin America North America Asia Pacific Bottling Investments Total 2016 Balance at beginning of year $ 638 $ 123 $ 8,311 $ 133 $ 2,084 $ 11,289 Effect of foreign currency translation (10 ) (6 ) — (11 ) (6 ) (33 ) Acquisitions 1 — — — 6 — 6 Adjustments related to the finalization of purchase accounting 1 — — 10 — — 10 Impairment — — — — (10 ) (10 ) Divestitures, deconsolidations and other 1 — — — — (633 ) (633 ) Balance at end of year $ 628 $ 117 $ 8,321 $ 128 $ 1,435 $ 10,629 2017 Balance at beginning of year $ 628 $ 117 $ 8,321 $ 128 $ 1,435 $ 10,629 Effect of foreign currency translation 75 8 — (1 ) 5 87 Acquisitions 1 — 25 28 — 3 56 Adjustments related to the finalization of purchase accounting 1 — — — 18 — 18 Impairment — — — — (390 ) (390 ) Divestitures, deconsolidations and other 1,2 — — — — (999 ) (999 ) Balance at end of year $ 703 $ 150 $ 8,349 $ 145 $ 54 $ 9,401 1 Refer to Note 2 for information related to the Company's acquisitions and divestitures. 2 The 2017 decrease in the Bottling Investments segment was primarily a result of additional North America bottling territories being refranchised. Refer to Note 2 . Definite-Lived Intangible Assets The following table summarizes information related to definite-lived intangible assets (in millions): December 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships 1 $ 205 $ (143 ) $ 62 $ 392 $ (185 ) $ 207 Bottlers' franchise rights 1 213 (152 ) 61 487 (381 ) 106 Trademarks 182 (73 ) 109 228 (64 ) 164 Other 94 (64 ) 30 179 (58 ) 121 Total $ 694 $ (432 ) $ 262 $ 1,286 $ (688 ) $ 598 1 The decrease in 2017 was primarily due to the derecognition of intangible assets as a result of the North America refranchising. Refer to Note 2 . Total amortization expense for intangible assets subject to amortization was $ 68 million , $ 139 million and $ 156 million in 2017 , 2016 and 2015 , respectively. Based on the carrying value of definite-lived intangible assets as of December 31, 2017 , we estimate our amortization expense for the next five years will be as follows (in millions): Amortization Expense 2018 $ 57 2019 44 2020 38 2021 28 2022 28 |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES Disclosure [Abstract] | |
ACCOUNTS PAYABLES AND ACCRUED EXPENSES | ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following (in millions): December 31, 2017 2016 Accrued marketing $ 2,108 $ 2,186 Trade accounts payable 2,288 2,682 Other accrued expenses 3,071 2,593 Accrued compensation 854 857 Deferred tax liabilities — 1 692 Sales, payroll and other taxes 347 372 Container deposits 80 108 Accounts payable and accrued expenses $ 8,748 $ 9,490 1 As a result of our adoption of ASU 2015-17, all deferred tax liabilities are now recorded in noncurrent liabilities. Refer to Note 1. |
DEBT AND BORROWING ARRANGEMENTS
DEBT AND BORROWING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Debt and Borrowing Arrangements Disclosure [Abstract] | |
DEBT AND BORROWING ARRANGEMENTS | DEBT AND BORROWING ARRANGEMENTS Short-Term Borrowings Loans and notes payable consist primarily of commercial paper issued in the United States. As of December 31, 2017 and 2016 , we had $ 12,931 million and $ 12,330 million , respectively, in outstanding commercial paper borrowings. Our weighted-average interest rates for commercial paper outstanding were approximately 1.4 percent and 0.8 percent per year as of December 31, 2017 and 2016 , respectively. In addition, we had $ 9,199 million in lines of credit and other short-term credit facilities as of December 31, 2017 . The Company's total lines of credit included $ 274 million that was outstanding and primarily related to our international operations. Included in the credit facilities discussed above, the Company had $ 7,295 million in lines of credit for general corporate purposes. These backup lines of credit expire at various times from 2018 through 2022 . There were no borrowings under these backup lines of credit during 2017 . These credit facilities are subject to normal banking terms and conditions. Some of the financial arrangements require compensating balances, none of which is presently significant to our Company. Long-Term Debt During 2017 , the Company issued U.S. dollar- and euro-denominated debt of $1,000 million and €2,500 million , respectively. The carrying value of this debt as of December 31, 2017 , was $3,974 million . The general terms of the notes issued are as follows: • $500 million total principal amount of notes due May 25, 2022, at a fixed interest rate of 2.20 percent ; • $500 million total principal amount of notes due May 25, 2027, at a fixed interest rate of 2.90 percent ; • €1,500 million total principal amount of notes due March 8, 2019, at a variable interest rate equal to the three -month Euro Interbank Offered Rate ("EURIBOR") plus 0.25 percent ; • €500 million total principal amount of notes due March 9, 2021, at a fixed interest rate of 0.00 percent ; and • €500 million total principal amount of notes due March 8, 2024, at a fixed interest rate of 0.50 percent . D uring 2017, the Company retired upon maturity €2,000 million total principal amount of notes due March 9, 2017, at a variable interest rate equal to the three -month EURIBOR plus 0.15 percent , $206 million total principal amount of notes due August 1, 2017, at a fixed interest rate of 7.125 percent , SFr 200 million total principal amount of notes due October 2, 2017, at a fixed interest rate of 0.00 percent , $750 million total principal amount of notes due October 27, 2017, at a fixed interest rate of 0.875 percent , and $225 million total principal amount of notes due November 16, 2017, at a variable interest rate equal to the three -month London Interbank Offered Rate ("LIBOR") plus 0.05 percent . The Company also extinguished a portion of the long-term debt that was assumed in connection with our acquisition of CCE's former North America business ("Old CCE"). The extinguished notes had a carrying value of $417 million , which included fair value adjustments recorded as part of purchase accounting. The general terms of the notes extinguished were as follo ws: • $95.6 million total principal amount of notes due August 15, 2019, at a fixed interest rate of 4.50 percent ; • $38.6 million total principal amount of notes due February 1, 2022, at a fixed interest rate of 8.50 percent ; • $11.7 million total principal amount of notes due September 15, 2022, at a fixed interest rate of 8.00 percent ; • $36.5 million total principal amount of notes due September 15, 2023, at a fixed interest rate of 6.75 percent ; • $9.9 million total principal amount of notes due October 1, 2026, at a fixed interest rate of 7.00 percent ; • $53.8 million total principal amount of notes due November 15, 2026, at a fixed interest rate of 6.95 percent ; • $41.3 million total principal amount of notes due September 15, 2028, at a fixed interest rate of 6.75 percent ; • $32.0 million total principal amount of notes due October 15, 2036, at a fixed interest rate of 6.70 percent ; • $3.4 million total principal amount of notes due March 18, 2037, at a fixed interest rate of 5.71 percent ; • $24.3 million total principal amount of notes due January 15, 2038, at a fixed interest rate of 6.75 percent ; and • $4.7 million total principal amount of notes due May 15, 2098, at a fixed interest rate of 7.00 percent . The Company recorded a net charge of $38 million in the line item interest expense in our consolidated statement of income during the year ended December 31, 2017 . This net charge was due to the early extinguishment of long-term debt described above. These charges included the difference between the reacquisition price and the net carrying amount of the debt extinguished. During 2016 , the Company issued Australian dollar-, euro- and U.S. dollar-denominated debt of AUD 1,000 million , €500 million and $3,725 million , respectively. The general terms of the notes issued are as follows: • AUD 450 million total principal amount of notes due June 9, 2020, at a fixed interest rate of 2.60 percent ; • AUD 550 million total principal amount of notes due June 11, 2024, at a fixed interest rate of 3.25 percent ; • $225 million total principal amount of notes due November 16, 2017, at a variable interest rate equal to the three -month LIBOR plus 0.05 percent ; • $1,000 million total principal amount of notes due May 30, 2019, at a fixed interest rate of 1.375 percent ; • $1,000 million total principal amount of notes due September 1, 2021, at a fixed interest rate of 1.55 percent ; • $500 million total principal amount of notes due June 1, 2026, at a fixed interest rate of 2.55 percent ; • $1,000 million total principal amount of notes due September 1, 2026, at a fixed interest rate of 2.25 percent ; and • €500 million total principal amount of notes due September 2, 2036, at a fixed interest rate of 1.10 percent . During 2016 , the Company retired upon maturity $1,654 million total principal amount of notes due September 1, 2016, at a fixed interest rate of 1.80 percent , $500 million total principal amount of notes due November 1, 2016 at a fixed interest rate of 0.75 percent and $500 million total principal amount of notes due November 1, 2016 at a variable interest rate equal to the three -month LIBOR plus 0.10 percent . During 2015 , the Company issued SFr 1,325 million , € 8,500 million and $4,000 million of long-term debt. The general terms of the notes issued are as follows: • SFr 200 million total principal amount of notes due October 2, 2017, at a fixed interest rate of 0.00 percent ; • SFr 550 million total principal amount of notes due December 22, 2022, at a fixed interest rate of 0.25 percent ; • SFr 575 million total principal amount of notes due October 2, 2028, at a fixed interest rate of 1.00 percent ; • € 2,000 million total principal amount of notes due March 9, 2017, at a variable interest rate equal to the three -month 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 ; • € 1,500 million total principal amount of notes due March 9, 2035, at a fixed interest rate of 1.625 percent ; • $750 million total principal amount of notes due October 27, 2017, at a fixed interest rate of 0.875 percent ; • $1,500 million total principal amount of notes due October 27, 2020, at a fixed interest rate of 1.875 percent ; and • $1,750 million total principal amount of notes due October 27, 2025, at a fixed interest rate of 2.875 percent . During 2015 , the Company retired $3,500 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 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 were 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 . The Company's long-term debt consisted of the following (in millions, except average rate data): December 31, 2017 December 31, 2016 Amount Average Rate 1 Amount Average Rate 1 U.S. dollar notes due 2018–2093 $ 16,854 2.3 % $ 16,922 2.0 % U.S. dollar debentures due 2018–2098 1,559 5.5 2,111 4.1 U.S. dollar zero coupon notes due 2020 2 158 8.4 153 8.4 Australian dollar notes due 2020–2024 760 2.1 741 1.2 Euro notes due 2019–2036 13,663 0.7 11,567 0.7 Swiss franc notes due 2022–2028 1,148 3.0 1,304 2.5 Other, due through 2098 3 325 3.4 316 3.5 Fair value adjustment 4 13 N/A 97 N/A Total 5,6 34,480 1.8 % 33,211 1.7 % Less current portion 3,298 3,527 Long-term debt $ 31,182 $ 29,684 1 These rates represent the weighted-average effective interest rate on the balances outstanding as of year end, as adjusted for the effects of interest rate swap agreements, cross-currency swap agreements and fair value adjustments, if applicable. Refer to Note 5 for a more detailed discussion on interest rate management. 2 This amount is shown net of unamortized discounts of $ 13 million and $ 18 million as of December 31, 2017 and 2016 , respectively. 3 As of December 31, 2017 , the amount shown includes $ 165 million of debt instruments that are due through 2031 . 4 Amount represents changes in fair value due to changes in benchmark interest rates. Refer to Note 5 for additional information about our fair value hedging strategy. 5 As of December 31, 2017 and 2016 , the fair value of our long-term debt, including the current portion, was $ 35,169 million and $ 33,752 million , respectively. The fair value of our long-term debt is estimated based on quoted prices for those or similar instruments. 6 The above notes and debentures include various restrictions, none of which is presently significant to our Company. The carrying value of the Company's long-term debt included fair value adjustments related to the debt assumed from Old CCE's former North America business in 2010 of $ 263 million and $ 361 million as of December 31, 2017 and 2016 , respectively. These fair value adjustments are being amortized over the number of years remaining until the underlying debt matures. As of December 31, 2017 , the weighted-average maturity of the assumed debt to which these fair value adjustments relate was approximately 24 years. The amortization of these fair value adjustments will be a reduction of interest expense in future periods, which will typically result in our interest expense being less than the actual interest paid to service the debt. Total interest paid was $ 757 million , $ 663 million and $ 515 million in 2017 , 2016 and 2015 , respectively. Maturities of long-term debt for the five years succeeding December 31, 2017 , are as follows (in millions): Maturities of Long-Term Debt 2018 $ 3,298 2019 5,209 2020 4,298 2021 2,930 2022 2,480 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees As of December 31, 2017 , we were contingently liable for guarantees of indebtedness owed by third parties of $ 609 million , of which $ 256 million was related to VIEs. Refer to Note 1 for additional information related to the Company's maximum exposure to loss due to our involvement with VIEs. Our guarantees are primarily related to third-party customers, bottlers, vendors and container manufacturing operations and have arisen through the normal course of business. These guarantees have various terms, and none of these guarantees 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. Indemnifications At the time we acquire or divest an interest in an entity, we sometimes agree to indemnify the seller or buyer for specific contingent liabilities. Management believes that any liability to the Company that may arise as a result of any such indemnification agreements will not have a material adverse effect on the Company taken as a whole. Refer to Note 2 . 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 14. On September 17, 2015, the Company received a Statutory Notice of Deficiency ("Notice") from the Internal Revenue Service ("IRS") for the tax years 2007 through 2009, after a five-year audit. In the Notice, the IRS claims that the Company's United States taxable income should be increased by an amount that creates a potential additional federal income tax liability of approximately $3.3 billion for the period, plus interest. No penalties were asserted in the Notice. The disputed amounts largely relate to a transfer pricing matter involving the appropriate amount of taxable income the Company should report in the United States in connection with its licensing of intangible property to certain related foreign licensees regarding the manufacturing, distribution, sale, marketing and promotion of products in overseas markets. During the 2007-2009 audit period, the Company followed the same transfer pricing methodology for these licenses that had consistently been followed since the methodology was agreed with the IRS in a 1996 closing agreement that applied back to 1987. The closing agreement provided prospective penalty protection as long as the Company followed the prescribed methodology and material facts and circumstances and relevant federal tax law have not changed. On February 11, 2016, the IRS notified the Company, without further explanation, that the IRS had determined that material facts and circumstances and relevant federal tax law had changed permitting it to assert penalties. The Company does not agree with this determination. The Company's compliance with the closing agreement was audited and confirmed by the IRS in five successive audit cycles covering the subsequent 11 years through 2006, with the last audit concluding as recently as 2009. The Notice represents a repudiation of the methodology previously adopted in the 1996 closing agreement. The IRS designated the matter for litigation on October 15, 2015. To the extent the matter remains designated, the Company will be prevented from pursuing any administrative settlement at IRS Appeals or under the IRS Advance Pricing and Mutual Agreement Program. The Company firmly believes that the IRS' claims are without merit and plans to pursue all available administrative and judicial remedies necessary to resolve this matter. To that end, the Company filed a petition in the U.S. Tax Court on December 14, 2015, and the IRS filed its answer on February 12, 2016. On October 4, 2017, the IRS filed an amended answer to the Company's petition in which it increased its transfer pricing adjustment by $385 million resulting in an additional tax adjustment of $135 million . A trial date has been set for March 5, 2018. The Company intends to vigorously defend its position and is confident in its ability to prevail on the merits. On June 20, 2017, the Company filed a motion for summary judgment on the portion of the IRS' adjustments related to our licensee in Mexico. On December 14, 2017, the U.S. Tax Court issued a decision on the summary judgment motion in favor of the Company. This decision effectively reduced the IRS' potential tax adjustment by approximately $138 million . The Company regularly assesses the likelihood of adverse outcomes resulting from examinations such as this to determine the adequacy of its tax reserves. The Company believes that the final adjudication of this matter will not have a material impact on its consolidated financial position, results of operations or cash flows. However, the ultimate outcome of disputes of this nature is uncertain, and if the IRS were to prevail in any material respect on its assertions, the additional tax, interest and any potential penalties could have a material adverse impact on the Company's financial position, results of operations and cash flows. 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 $ 480 million and $ 527 million as of December 31, 2017 and 2016 , respectively. Workforce (Unaudited) We refer to our employees as "associates." As of December 31, 2017 , our Company had approximately 61,800 associates, of which approximately 12,400 associates were located in the United States. Our Company, through its divisions and subsidiaries, is a party to numerous collective bargaining agreements. As of December 31, 2017 , approximately 3,700 associates, excluding seasonal hires, in North America were covered by collective bargaining agreements. These agreements typically have terms of three years to five years years. We currently expect that we will be able to renegotiate such agreements on satisfactory terms when they expire. The Company believes that its relations with its associates are generally satisfactory. Operating Leases The following table summarizes our minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one year as of December 31, 2017 (in millions): Year Ended December 31, Operating Lease Payments 2018 $ 130 2019 85 2020 69 2021 59 2022 52 Thereafter 147 Total minimum operating lease payments 1 $ 542 1 Income associated with sublease arrangements is not significant. |
STOCK COMPENSATION PLANS
STOCK COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2017 | |
STOCK COMPENSATION PLANS [Abstract] | |
STOCK COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS Our Company grants awards under its stock-based compensation plans to certain employees of the Company. Total stock-based compensation expense was $ 219 million , $ 258 million and $ 236 million in 2017 , 2016 and 2015 , respectively, and was included as a component of selling, general and administrative expenses in our consolidated statements of income. The total income tax benefit recognized in our consolidated statements of income related to awards under these plans was $ 44 million , $ 71 million and $ 65 million in 2017 , 2016 and 2015 , respectively. Beginning in 2015, certain employees who had previously been eligible for long-term equity awards received long-term performance cash awards. Employees who receive these performance cash awards do not receive equity awards as part of the long-term incentive program. In late 2017, the Company changed the long-term incentive program for certain employees previously eligible for the performance cash award. These employees no longer participate in the long-term incentive program and were issued a final restricted stock unit award that vests ratably over five years . As of December 31, 2017 , we had $ 286 million of total unrecognized compensation cost related to nonvested stock-based compensation awards granted under our plans. This cost is expected to be recognized over a weighted-average period of 3.0 years as stock-based compensation expense. This expected cost does not include the impact of any future stock-based compensation awards. The Coca-Cola Company 2014 Equity Plan ("2014 Equity Plan") was approved by shareowners in April 2014. Under the 2014 Equity Plan, a maximum of 500 million shares of our common stock was approved to be issued, through the grant of equity awards, to certain employees. The 2014 Equity Plan allows for grants of stock options, performance share units, restricted stock units, restricted stock and other specified award types, including cash awards with performance-based vesting criteria. Beginning in 2015, the 2014 Equity Plan was the primary plan in use for equity awards and performance cash awards. There were no grants made from the 2014 Equity Plan prior to 2015. As of December 31, 2017 , there were 413.6 million shares available to be granted under the 2014 Equity Plan. In addition to the 2014 Equity Plan, there were 2.7 million shares available to be granted under stock option plans approved by shareowners in 1999 and 2008 and 0.2 million shares available to be granted under a restricted stock award plan approved by shareowners in 1989. Stock Option Awards Stock options have generally been granted with an exercise price equal to the average of the high and low market prices per share for the Company's stock on the date of grant. The fair value of each stock option award is estimated using a Black-Scholes-Merton option-pricing model and is amortized over the vesting period, generally four years . The weighted-average fair value of stock options granted during the past three years and the weighted-average assumptions used in the Black-Scholes-Merton option-pricing model for such grants were as follows: 2017 2016 2015 Fair value of stock options at grant date $ 3.98 $ 4.17 $ 4.38 Dividend yield 1 3.6 % 3.2 % 3.1 % Expected volatility 2 15.5 % 16.0 % 16.0 % Risk-free interest rate 3 2.2 % 1.5 % 1.8 % Expected term of the stock options 4 6 years 6 years 6 years 1 The dividend yield is the calculated yield on the Company's stock at the time of the grant. 2 Expected volatility is based on implied volatilities from traded options on the Company's stock, historical volatility of the Company's stock and other factors. 3 The risk-free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. 4 The expected term of the stock options represents the period of time that options granted are expected to be outstanding and is derived by analyzing historical exercise behavior. Generally, stock options granted from 1999 through July 2003 expire 15 years from the date of grant, and stock options granted in December 2003 and thereafter expire 10 years from the date of grant. The shares of common stock to be issued and/or sold upon exercise of stock options are made available from either authorized and unissued Company common stock or from the Company's treasury shares. In 2007, the Company began issuing common stock under its stock-based compensation plans from the Company's treasury shares. Stock option activity for all plans for the year ended December 31, 2017 , was as follows: Shares (In millions) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (In millions) Outstanding on January 1, 2017 220 $ 33.70 Granted 9 40.89 Exercised (53 ) 30.28 Forfeited/expired (3 ) 38.34 Outstanding on December 31, 2017 1 173 $ 35.02 4.84 years $ 1,879 Expected to vest 171 $ 34.96 4.81 years $ 1,869 Exercisable on December 31, 2017 142 $ 33.89 4.27 years $ 1,700 1 Includes 0.3 million stock option replacement awards in connection with our acquisition of Old CCE's North America business in 2010. These options had a weighted-average exercise price of $ 12.86 and generally vest over 3 years and expire 10 years from the original date of grant. The total intrinsic value of the stock options exercised was $ 744 million , $ 787 million and $ 594 million in 2017 , 2016 and 2015 , respectively. The total shares exercised were 53 million , 50 million and 44 million in 2017 , 2016 and 2015 , respectively. Performance Share Unit Awards Performance share units require achievement of certain performance criteria, which are predefined by the Compensation Committee of the Board of Directors at the time of grant. The primary performance criterion used is compound annual growth in economic profit over a predefined performance period, which is generally three years . Economic profit is our net operating profit after tax less the cost of the capital used in our business. Beginning in 2015, the Company added net operating revenues as an additional performance criterion. Economic profit and net operating revenues are adjusted for certain items, which are approved and certified by the Audit Committee of the Board of Directors. The purpose of these adjustments is to ensure a consistent year-to-year comparison of the specific performance criteria. In the event the certified results equal the predefined performance criteria, the Company will grant the number of shares equal to the target award. In the event the certified results exceed the predefined performance criteria, additional shares up to the maximum award will be granted. In the event the certified results fall below the predefined performance criteria, a reduced number of shares will be granted. If the certified results fall below the threshold award performance level, no shares will be granted. The performance share units granted under this program are then generally subject to a holding period of one year before the shares are released. Performance share units generally do not entitle participants to vote or receive dividends. For most performance share units granted beginning in 2014, the Company includes a relative TSR modifier to determine the number of shares earned at the end of the performance period. For these awards, the number of shares earned based on the certified achievement of the predefined performance criteria will be reduced or increased if the Company's total shareowner return over the performance period relative to a predefined compensation comparator group of companies falls outside of a defined range. The fair value of performance share units that include the TSR modifier is determined using a Monte Carlo valuation model. For the remaining awards that do not include the TSR modifier, the fair value of the performance share units is the quoted market value of the Company's stock on the grant date less the present value of the expected dividends not received during the relevant period. In the period it becomes probable that the minimum performance criteria specified in the award will be achieved, we recognize expense for the proportionate share of the total fair value of the performance share units related to the vesting period that has already lapsed for the shares expected to vest and be released. The remaining fair value of the shares expected to vest and be released is expensed on a straight-line basis over the balance of the vesting period. In the event the Company determines it is no longer probable that we will achieve the minimum performance criteria specified in the award, we reverse all of the previously recognized compensation expense in the period such a determination is made. Performance share units are generally settled in stock, except for certain circumstances such as death or disability, in which case former employees or their beneficiaries are provided a cash equivalent payment. As of December 31, 2017 , performance share units of 2,088,000 , 2,985,000 and 3,139,000 were outstanding for the 2015–2017, 2016–2018 and 2017–2019 performance periods, respectively, based on the target award amounts in the performance share unit agreements. The following table summarizes information about performance share units based on the target award amounts in the performance share unit agreements: Performance Share Units (In thousands) Weighted-Average Grant Date Fair Value Outstanding on January 1, 2017 9,773 $ 35.77 Granted 4,133 34.75 Conversions to restricted stock units 1 (4,851 ) 32.35 Paid in cash equivalent (11 ) 34.15 Canceled/forfeited (832 ) 37.20 Outstanding on December 31, 2017 2 8,212 $ 37.14 1 Represents the target amount of performance share units converted to restricted stock units for the 2014–2016 performance period. The vesting of restricted stock units is subject to the terms of the performance share unit agreements. 2 The outstanding performance share units as of December 31, 2017 , at the threshold award and maximum award levels were 2.2 million and 15.4 million , respectively. The weighted-average grant date fair value of performance share units granted was $34.75 in 2017 , $39.70 in 2016 and $37.99 in 2015 . The Company did not convert any performance share units into cash equivalent payments in 2015. The Company converted performance share units of 11,052 in 2017 and 52,545 in 2016 to cash equivalent payments of $0.4 million and $ 1.9 million , respectively, to former employees or their beneficiaries due to certain events such as death or disability. The following table summarizes information about nonvested performance-based restricted stock units based on the performance share units' certified award level: Restricted Weighted- Nonvested on January 1, 2017 — $ — Conversions from performance share units 7,181 32.33 Vested and released (3 ) 32.35 Canceled/forfeited (430 ) 32.30 Nonvested on December 31, 2017 6,748 $ 32.35 The total intrinsic value of restricted shares that were vested and released was less than $1 million in both 2017 and 2016 and $ 5 million in 2015 . The total restricted share units vested and released were 3,037 in 2017 , 7,101 in 2016 and 130,017 in 2015 . Time-Based Restricted Stock and Restricted Stock Unit Awards Prior to the release date, time-based restricted stock and restricted stock units granted from the 2014 Equity Plan do not entitle participants to vote or receive dividends and will be forfeited in the event of the recipient's termination of employment, except for reasons such as death or disability. Certain other time-based restricted stock awards entitle participants to vote and receive dividends. The fair value of the restricted stock and restricted stock units expected to vest and be released is expensed on a straight-line basis over the vesting period. As of December 31, 2017 , the Company had outstanding nonvested time-based restricted stock, including restricted stock units, of 3,534,660 , most of which do not pay dividends or have voting rights. The following table summarizes information about nonvested time-based restricted stock awards: Restricted Stock and Stock Units (In thousands) Weighted-Average Outstanding on January 1, 2017 770 $ 37.54 Granted 2,994 41.62 Vested and released (179 ) 37.36 Forfeited/expired (50 ) 38.35 Outstanding on December 31, 2017 3,535 $ 40.99 |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Pension and Other Postretirement Benefit Plans [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Our Company sponsors and/or contributes to pension and postretirement health care and life insurance benefit plans covering substantially all U.S. employees. We also sponsor nonqualified, unfunded defined benefit pension plans for certain associates. In addition, our Company and its subsidiaries have various pension plans and other forms of postretirement arrangements outside the United States. We refer to the funded defined benefit pension plan in the United States that is not associated with collective bargaining organizations as the "primary U.S. plan." As of December 31, 2017 , the primary U.S. plan represented 64 percent and 65 percent of the Company's consolidated projected benefit obligation and pension assets, respectively. Obligations and Funded Status The following table sets forth the changes in benefit obligations and the fair value of plan assets for our benefit plans (in millions): Pension Benefits Other Benefits Year Ended December 31, 2017 2016 2017 2016 Benefit obligation at beginning of year 1 $ 9,428 $ 9,159 $ 962 $ 940 Service cost 197 239 17 22 Interest cost 306 319 29 31 Foreign currency exchange rate changes 150 (38 ) 4 (2 ) Amendments 1 17 (21 ) (4 ) Actuarial loss (gain) 420 441 (28 ) 20 Benefits paid 2 (341 ) (346 ) (71 ) (64 ) Divestitures 3 (7 ) (16 ) (66 ) (2 ) Settlements 4 (832 ) (384 ) — — Curtailments 4 (10 ) — (48 ) (17 ) Special termination benefits 4 106 37 — 2 Other 37 — 4 36 Benefit obligation at end of year 1 $ 9,455 $ 9,428 $ 782 $ 962 Fair value of plan assets at beginning of year $ 8,371 $ 7,689 $ 255 $ 245 Actual return on plan assets 1,139 690 31 8 Employer contributions 181 718 — — Foreign currency exchange rate changes 196 (70 ) — — Benefits paid (285 ) (270 ) (3 ) (3 ) Divestitures 3 — (16 ) — — Settlements 4 (794 ) (374 ) — — Other 35 4 5 5 Fair value of plan assets at end of year $ 8,843 $ 8,371 $ 288 $ 255 Net liability recognized $ (612 ) $ (1,057 ) $ (494 ) $ (707 ) 1 For pension benefit plans, the benefit obligation is the projected benefit obligation. For other benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The accumulated benefit obligation for our pension plans was $9,175 million and $9,141 million as of December 31, 2017 and 2016 , respectively. 2 Benefits paid to pension plan participants during 2017 and 2016 included $56 million and $76 million , respectively, in payments related to unfunded pension plans that were paid from Company assets. Benefits paid to participants of other benefit plans during 2017 and 2016 included $68 million and $61 million , respectively, that were paid from Company assets. 3 Divestitures were primarily related to the deconsolidation of the Company's German bottling operations in May 2016 and the Company's North America refranchising in 2017. Refer to Note 2. 4 Settlements, curtailments and special termination benefits were primarily related to the Company's North America refranchising and productivity, restructuring and integration initiatives. Refer to Note 2 and Note 18. Pension and other benefit amounts recognized in our consolidated balance sheets are as follows (in millions): Pension Benefits Other Benefits December 31, 2017 2016 2017 2016 Noncurrent asset $ 921 $ 572 $ — $ — Current liability (72 ) (71 ) (21 ) (23 ) Long-term liability (1,461 ) (1,558 ) (473 ) (684 ) Net liability recognized $ (612 ) $ (1,057 ) $ (494 ) $ (707 ) Certain of our pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligations and the fair value of plan assets were as follows (in millions): December 31, 2017 2016 Projected benefit obligation $ 7,833 $ 7,907 Fair value of plan assets 6,330 6,303 Certain of our pension plans have accumulated benefit obligations in excess of the fair value of plan assets. For these plans, the accumulated benefit obligations and the fair value of plan assets were as follows (in millions): December 31, 2017 2016 Accumulated benefit obligation $ 7,614 $ 7,668 Fair value of plan assets 6,305 6,257 Pension Plan Assets The following table presents total assets for our U.S. and non-U.S. pension plans (in millions): U.S. Plans Non-U.S. Plans December 31, 2017 2016 2017 2016 Cash and cash equivalents $ 454 $ 229 $ 237 $ 173 Equity securities: U.S.-based companies 1,427 1,208 670 619 International-based companies 911 451 554 488 Fixed-income securities: Government bonds 183 395 191 131 Corporate bonds and debt securities 785 854 42 142 Mutual, pooled and commingled funds 1 215 693 766 440 Hedge funds/limited partnerships 939 1,172 44 41 Real estate 596 521 2 2 Other 518 538 309 274 Total pension plan assets 2 $ 6,028 $ 6,061 $ 2,815 $ 2,310 1 Mutual, pooled and commingled funds include investments in equity securities, fixed-income securities and combinations of both. There are a significant number of mutual, pooled and commingled funds from which investors can choose. The selection of the type of fund is dictated by the specific investment objectives and needs of a given plan. These objectives and needs vary greatly between plans. 2 Fair value disclosures related to our pension assets are included in Note 16 . Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall; a reconciliation of the beginning and ending balances of Level 3 assets; and information about the valuation techniques and inputs used to measure the fair value of our pension assets. Investment Strategy for U.S. Pension Plans The Company utilizes the services of investment managers to actively manage the assets of our U.S. pension plans. We have established asset allocation targets and investment guidelines with each investment manager. Our asset allocation targets promote optimal expected return and volatility characteristics given the long-term time horizon for fulfilling the obligations of the plans. Selection of the targeted asset allocation for U.S. plan assets was based upon a review of the expected return and risk characteristics of each asset class, as well as the correlation of returns among asset classes. Our target allocation is a mix of 42 percent equity investments, 30 percent fixed-income investments and 28 percent alternative investments. We believe this target allocation will enable us to achieve the following long-term investment objectives: (1) optimize the long-term return on plan assets at an acceptable level of risk; (2) maintain a broad diversification across asset classes and among investment managers; and (3) maintain careful control of the risk level within each asset class. The guidelines that have been established with each investment manager provide parameters within which the investment managers agree to operate, including criteria that determine eligible and ineligible securities, diversification requirements and credit quality standards, where applicable. Unless exceptions have been approved, investment managers are prohibited from buying or selling commodities, futures or option contracts, as well as from short selling of securities. Additionally, investment managers agree to obtain written approval for deviations from stated investment style or guidelines. As of December 31, 2017 , no investment manager was responsible for more than 9 percent of total U.S. plan assets. Our target allocation of 42 percent equity investments is composed of 60 percent global equities, 16 percent emerging market equities and 24 percent domestic small- and mid-cap equities. Optimal returns through our investments in global equities are achieved through security selection as well as country and sector diversification. Investments in the common stock of our Company accounted for approximately 4 percent of our total global equities and approximately 2 percent of total U.S. plan assets. Our investments in global equities are intended to provide diversified exposure to both U.S. and non-U.S. equity markets. Our investments in both emerging market equities and domestic small- and mid-cap equities may experience large swings in their market value. Our investments in these asset classes are selected based on capital appreciation potential. Our target allocation of 30 percent fixed-income investments is composed of 33 percent long-duration bonds and 67 percent with multi-strategy alternative credit managers. Long-duration bonds are intended to provide a stable rate of return through investments in high-quality publicly traded debt securities. Our investments in long-duration bonds are diversified in order to mitigate duration and credit exposure. Multi-strategy alternative credit managers invest in a combination of high-yield bonds, bank loans, structured credit and emerging market debt. These investments are in lower-rated and non-rated debt securities, which generally produce higher returns compared to long-duration bonds and also help to diversify our overall fixed-income portfolio. In addition to equity investments and fixed-income investments, we have a target allocation of 28 percent in alternative investments. These alternative investments include hedge funds, reinsurance, private equity limited partnerships, leveraged buyout funds, international venture capital partnerships and real estate. The objective of investing in alternative investments is to provide a higher rate of return than that available from publicly traded equity securities. These investments are inherently illiquid and require a long-term perspective in evaluating investment performance. Investment Strategy for Non-U.S. Pension Plans As of December 31, 2017 , the long-term target allocation for 73 percent of our international subsidiaries' pension plan assets, primarily certain of our European and Canadian plans, is 71 percent equity securities, 10 percent fixed-income securities and 19 percent other investments. The actual allocation for the remaining 27 percent of the Company's international subsidiaries' plan assets consisted of 55 percent mutual, pooled and commingled funds; 5 percent fixed-income securities; and 40 percent other investments. The investment strategies for our international subsidiaries' plans differ greatly, and in some instances are influenced by local law. None of our pension plans outside the United States is individually significant for separate disclosure. Other Postretirement Benefit Plan Assets Plan assets associated with other postretirement benefits primarily represent funding of one of the U.S. postretirement benefit plans through a Voluntary Employee Beneficiary Association ("VEBA"), a tax-qualified trust. The VEBA assets are primarily invested in liquid assets due to the level and timing of expected future benefit payments. The following table presents total assets for our other postretirement benefit plans (in millions): December 31, 2017 2016 Cash and cash equivalents $ 78 $ 2 Equity securities: U.S.-based companies 96 116 International-based companies 8 8 Fixed-income securities: Government bonds 2 3 Corporate bonds and debt securities 7 6 Mutual, pooled and commingled funds 80 103 Hedge funds/limited partnerships 8 9 Real estate 5 4 Other 4 4 Total other postretirement benefit plan assets 1 $ 288 $ 255 1 Fair value disclosures related to our other postretirement benefit plan assets are included in Note 16 . Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall and information about the valuation techniques and inputs used to measure the fair value of our other postretirement benefit plan assets. Components of Net Periodic Benefit Cost Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following (in millions): Pension Benefits Other Benefits Year Ended December 31, 2017 2016 2015 2017 2016 2015 Service cost $ 197 $ 239 $ 265 $ 17 $ 22 $ 27 Interest cost 306 319 379 29 31 37 Expected return on plan assets 1 (650 ) (653 ) (705 ) (12 ) (11 ) (11 ) Amortization of prior service credit — (2 ) (2 ) (18 ) (19 ) (19 ) Amortization of actuarial loss 2 175 183 199 8 7 10 Net periodic benefit cost 28 86 136 24 30 44 Settlement charges 3 228 118 149 — — — Curtailment charge (credit) 3 4 — — (79 ) — — Special termination benefits 3 106 37 20 — 1 2 Other 2 (3 ) — — 23 — Total cost (income) recognized in consolidated statements of income $ 368 $ 238 $ 305 $ (55 ) $ 54 $ 46 1 The Company has elected to use the actual fair value of plan assets as the market-related value of assets in the determination of the expected return on plan assets. 2 Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10 percent of the greater of the benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants. 3 The settlement charges, curtailment charge (credit) and special termination benefits were primarily related to the Company's North America refranchising and productivity, restructuring and integration initiatives. Refer to Note 2 and Note 18 . The following table sets forth the changes in AOCI for our benefit plans (in millions, pretax): Pension Benefits Other Benefits Year Ended December 31, 2017 2016 2017 2016 Balance in AOCI at beginning of year $ (2,932 ) $ (2,907 ) $ (48 ) $ (26 ) Recognized prior service cost (credit) 4 (2 ) (54 ) 4 (28 ) 5 Recognized net actuarial loss (gain) 403 2 301 3 (36 ) 4 7 Prior service credit (cost) arising in current year (1 ) (17 ) 21 4 Net actuarial (loss) gain arising in current year 75 (404 ) 92 4 (6 ) 5 Impact of divestitures 1 — 64 — — Foreign currency translation gain (loss) (42 ) 33 (1 ) 1 Balance in AOCI at end of year $ (2,493 ) $ (2,932 ) $ (26 ) $ (48 ) 1 Related to the deconsolidation of our German bottling operations. Refer to Note 2 . 2 Includes $228 million of recognized net actuarial losses due to the impact of settlements. 3 Includes $118 million of recognized net actuarial losses due to the impact of settlements. 4 Includes $36 million of recognized prior service credit, $43 million of recognized net actuarial gains and $45 million of actuarial gains arising in the current year due to the impact of curtailments. 5 Includes $9 million of recognized prior service credit and $17 million of actuarial gains arising in the current year due to the impact of curtailments. The following table sets forth amounts in AOCI for our benefit plans (in millions, pretax): Pension Benefits Other Benefits December 31, 2017 2016 2017 2016 Prior service credit (cost) $ (10 ) $ (14 ) $ 36 $ 69 Net actuarial loss (2,483 ) (2,918 ) (62 ) (117 ) Balance in AOCI at end of year $ (2,493 ) $ (2,932 ) $ (26 ) $ (48 ) Amounts in AOCI expected to be recognized as components of net periodic benefit cost in 2018 are as follows (in millions, pretax): Pension Benefits Other Benefits Amortization of prior service cost (credit) $ (3 ) $ (14 ) Amortization of actuarial loss 147 4 Total $ 144 $ (10 ) Assumptions Certain weighted-average assumptions used in computing the benefit obligations are as follows: Pension Benefits Other Benefits December 31, 2017 2016 2017 2016 Discount rate 3.50 % 4.00 % 3.50 % 4.00 % Rate of increase in compensation levels 3.50 % 3.75 % N/A N/A Certain weighted-average assumptions used in computing net periodic benefit cost are as follows: Pension Benefits Other Benefits Year Ended December 31, 2017 2016 2015 2017 2016 2015 Discount rate 4.00 % 4.25 % 3.75 % 4.00 % 4.25 % 3.75 % Rate of increase in compensation levels 3.75 % 3.50 % 3.50 % N/A N/A N/A Expected long-term rate of return on plan assets 8.00 % 8.25 % 8.25 % 4.75 % 4.75 % 4.75 % The expected long-term rate of return assumption for U.S. pension plan assets is based upon the target asset allocation and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class, as well as correlations among asset classes. We evaluate the rate of return assumption on an annual basis. The expected long-term rate of return assumption used in computing 2017 net periodic pension cost for the U.S. plans was 8.00 percent . As of December 31, 2017 , the 5-year, 10-year and 15-year annualized return on plan assets for the primary U.S. plan was 8.8 percent , 5.4 percent and 8.5 percent , respectively. The annualized return since inception was 10.7 percent . The assumed health care cost trend rates are as follows: December 31, 2017 2016 Health care cost trend rate assumed for next year 7.00 % 7.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2022 2021 The Company's U.S. postretirement benefit plans are primarily defined dollar benefit plans that limit the effects of medical inflation because the plans have established dollar limits for determining our contributions. As a result, the effect of a 1 percentage point change in the assumed health care cost trend rate would not be significant to the Company. The discount rate assumptions used to account for pension and other postretirement benefit plans reflect the rates at which the benefit obligations could be effectively settled. Rates for U.S. and certain non-U.S. plans at December 31, 2017 , were determined using a cash flow matching technique whereby the rates of a yield curve, developed from high-quality debt securities, were applied to the benefit obligations to determine the appropriate discount rate. For other non-U.S. plans, we base the discount rate on comparable indices within each of the countries. The rate of compensation increase assumption is determined by the Company based upon annual reviews. We review external data and our own historical trends for health care costs to determine the health care cost trend rate assumptions. Effective January 1, 2016, for benefit plans using the yield curve approach, the Company changed the method used to calculate the service cost and interest cost components of net periodic benefit cost for pension and other postretirement benefit plans and is measuring these components by applying the specific spot rates along the yield curve to the plans' projected cash flows. The Company believes the new approach provides a more precise measurement of service and interest costs by improving the correlation between projected cash flows and the corresponding spot rates. The change did not affect the measurement of the Company's pension and other postretirement benefit obligations for those plans and was accounted for as a change in accounting estimate, which was applied prospectively. Cash Flows Our estimated future benefit payments for funded and unfunded plans are as follows (in millions): Year Ended December 31, 2018 2019 2020 2021 2022 2023–2027 Pension benefit payments $ 713 $ 461 $ 482 $ 489 $ 500 $ 2,642 Other benefit payments 1 64 62 61 59 57 258 Total estimated benefit payments $ 777 $ 523 $ 543 $ 548 $ 557 $ 2,900 1 The expected benefit payments for our other postretirement benefit plans are net of estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Federal subsidies are estimated to be $4 million for the period 2018–2022, and $3 million for the period 2023–2027. The Company anticipates making pension contributions in 2018 of $59 million , all of which will be allocated to our international plans. The majority of these contributions are required by funding regulations or law. Defined Contribution Plans Our Company sponsors qualified defined contribution plans covering substantially all U.S. employees. Under the largest U.S. defined contribution plan, we match participants' contributions up to a maximum of 3.5 percent of compensation, subject to certain limitations. Company costs related to the U.S. plans were $61 million , $82 million and $94 million in 2017 , 2016 and 2015 , respectively. We also sponsor defined contribution plans in certain locations outside the United States. Company costs associated with those plans were $35 million , $37 million and $35 million in 2017 , 2016 and 2015 , respectively. Multi-Employer Pension Plans As a result of our acquisition of Old CCE's North America business in 2010, the Company participates in various multi-employer pension plans in the United States. Multi-employer pension plans are designed to cover employees from multiple employers and are typically established under collective bargaining agreements. These plans allow multiple employers to pool their pension resources and realize efficiencies associated with the daily administration of the plan. Multi-employer plans are generally governed by a board of trustees composed of management and labor representatives and are funded through employer contributions. The Company's expense for U.S. multi-employer pension plans totaled $35 million , $ 41 million and $40 million in 2017 , 2016 and 2015 , respectively. The plans we currently participate in have contractual arrangements that extend into 2021. If, in the future, we choose to withdraw from any of the multi-employer pension plans in which we currently participate, we would need to record the appropriate withdrawal liabilities at that time. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
INCOME TAXES | INCOME TAXES Income from continuing operations before income taxes consisted of the following (in millions): Year Ended December 31, 2017 2016 2015 United States $ (690 ) 1 $ 113 1 $ 1,801 1 International 7,432 8,023 7,804 Total $ 6,742 $ 8,136 $ 9,605 1 Includes charges of $2,140 million , $2,456 million and $1,006 million related to refranchising certain bottling territories in North America in 2017, 2016 and 2015, respectively. Refer to Note 2. Income taxes from continuing operations consisted of the following for the years ended December 31, 2017 , 2016 and 2015 (in millions): United States State and Local International Total 2017 Current $ 5,438 1 $ 121 $ 1,257 $ 6,816 Deferred (1,783 ) 1,2 14 513 1 (1,256 ) 2016 Current $ 1,147 $ 113 $ 1,182 $ 2,442 Deferred (838 ) 2 (91 ) 73 (856 ) 2015 Current $ 711 $ 69 $ 1,386 $ 2,166 Deferred 120 45 (92 ) 73 1 Includes our reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax resulting from the Tax Cuts and Jobs Act ("Tax Reform Act") that was signed into law on December 22, 2017 . The provisional amount related to the one-time transition tax on the mandatory deemed repatriation of prescribed foreign earnings was $4.6 billion of tax expense based on cumulative prescribed foreign earnings estimated to be $42 billion . The provisional amount that was primarily related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was a net deferred tax benefit of $1.0 billion . 2 Includes the benefit from charges related to refranchising certain bottling territories in North America. Refer to Note 2. Income taxes from discontinued operations consisted of $55 million of current expense and $8 million of deferred tax benefit for the year ended December 31, 2017 . We made income tax payments of $ 1,904 million , $ 1,554 million and $ 2,357 million in 2017 , 2016 and 2015 , respectively. Our effective tax rate reflects the tax benefits of having significant operations outside the United States, which are generally taxed at rates lower than the U.S. statutory rate of 35.0 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 2018 to 2036 . We anticipate that we will be able to extend or renew the grants in these locations. Tax incentive grants favorably impacted our income tax expense by $ 221 million , $ 105 million and $ 223 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. In addition, our effective tax rate reflects the benefits of having significant earnings generated in investments accounted for under the equity method of accounting, which are generally taxed at rates lower than the U.S. statutory rate. A reconciliation of the statutory U.S. federal tax rate and our effective tax rate is as follows: Year Ended December 31, 2017 2016 2015 Statutory U.S. federal tax rate 35.0 % 35.0 % 35.0 % State and local income taxes — net of federal benefit 1.2 1.2 1.2 Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (9.7 ) (17.5 ) 5 (12.7 ) Equity income or loss (3.4 ) (3.0 ) (1.7 ) Tax Reform Act 53.5 1 — — Other — net 5.9 2,3,4 3.8 6 1.5 Effective tax rate 82.5 % 19.5 % 23.3 % 1 Includes net tax expense of $3,610 million primarily related to our reasonable estimate of the one-time transition tax resulting from the Tax Reform Act that was signed into law on December 22, 2017, partially offset by the impact of the lower rate introduced by the Tax Reform Act on our existing deferred tax balances. 2 Includes excess tax benefits of $132 million (or a 2 percent impact on our effective tax rate) recognized as awards issued under the Company's share-based compensation arrangements vested or were settled. 3 Includes net tax expense of $1,048 million on a pretax gain of $1,037 million (or a 10.2 percent impact on our effective tax rate) related to the Southwest Transaction, in conjunction with which we obtained an equity interest in AC Bebidas. The Company accounts for its interest in AC Bebidas as an equity method investment and the net tax expense was primarily the result of the deferred tax recorded on the basis difference in this investment. Refer to Note 2. 4 Includes a $156 million net tax benefit related to the impact of manufacturing incentives and permanent book to tax adjustments. 5 Includes tax expense of $97 million related to a pretax gain of $1,323 million (or a 4.5 percent impact on our effective tax rate) related to the deconsolidation of our German bottling operations. Refer to Note 2. 6 Includes tax expense of $157 million (or a 1.9 percent impact on our effective tax rate) primarily related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in certain domestic jurisdictions. The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. U.S. tax authorities have completed their federal income tax examinations for all years prior to 2007 . With respect to state and local jurisdictions and countries outside the United States, with limited exceptions, the Company and its subsidiaries are no longer subject to income tax audits for years before 2003 . For U.S. federal and state tax purposes, the net operating losses and tax credit carryovers acquired in connection with our acquisition of Old CCE's North America business that were generated between the years of 1990 through 2010 are subject to adjustments until the year in which they are actually utilized is no longer subject to examination. Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, including interest and penalties, have been provided for any adjustments that are expected to result from those years. On September 17, 2015, the Company received a Notice from the IRS for the tax years 2007 through 2009 , after a five-year audit. Refer to Note 11. As of December 31, 2017 , the gross amount of unrecognized tax benefits was $ 331 million . If the Company were to prevail on all uncertain tax positions, the net effect would be a benefit of $ 205 million , exclusive of any benefits related to interest and penalties. The remaining $ 126 million , which was recorded as a deferred tax asset, primarily represents tax benefits that would be received in different tax jurisdictions in the event the Company did not prevail on all uncertain tax positions. A reconciliation of the changes in the gross amount of unrecognized tax benefits is as follows (in millions): Year Ended December 31, 2017 2016 2015 Beginning balance of unrecognized tax benefits $ 302 $ 168 $ 211 Increase related to prior period tax positions 18 163 1 4 Decrease related to prior period tax positions (13 ) — (9 ) Increase related to current period tax positions 13 17 5 Decrease related to settlements with taxing authorities — (40 ) 1 (5 ) Decrease due to lapse of the applicable statute of limitations — — (23 ) Increase (decrease) due to effect of foreign currency exchange rate changes 11 (6 ) (15 ) Ending balance of unrecognized tax benefits $ 331 $ 302 $ 168 1 The increase is primarily related to a change in judgment about one of the Company's tax positions as a result of receiving notification of a preliminary settlement of a Competent Authority matter with a foreign jurisdiction, a portion of which became certain later in the year. This change in position did not have a material impact on the Company's consolidated statement of income during the year ended December 31, 2016, as it was partially offset by refunds to be received from the foreign jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company had $ 177 million , $ 142 million and $ 111 million in interest and penalties related to unrecognized tax benefits accrued as of December 31, 2017 , 2016 and 2015 , respectively. Of these amounts, $35 million and $ 31 million of expense were recognized through income tax expense in 2017 and 2016 , respectively. An insignificant amount of interest and penalties was recognized through income tax expense for the year ended December 31, 2015. If the Company were to prevail on all uncertain tax positions, the reversal of this accrual would also be a benefit to the Company's effective tax rate. It is expected that the amount of unrecognized tax benefits will change in the next 12 months; however, we do not expect the change to have a significant impact on our consolidated statement of income or consolidated balance sheet. These changes may be the result of settlements of ongoing audits, statute of limitations expiring or final settlements in transfer pricing matters that are the subject of litigation. At this time, an estimate of the range of the reasonably possible outcomes cannot be made. The one-time transition tax is based on our total accumulated post-1986 prescribed foreign earnings and profits ("E&P") estimated to be $42 billion , the majority of which was previously considered to be indefinitely reinvested and, accordingly, no U.S. federal and state income taxes were provided. We recorded a provisional tax amount of $4.6 billion as a reasonable estimate for our one-time transition tax liability and a $0.6 billion provisional deferred tax of related withholding taxes and state income taxes. Because of the complexities of the Tax Reform Act, we are still finalizing our calculation of the total accumulated post-1986 prescribed E&P for the applicable foreign entities. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when we finalize the calculation of accumulated post-1986 prescribed foreign E&P and finalize the amounts held in cash or other specified assets. No additional income taxes have been provided for any additional outside basis differences inherent in these entities, as these amounts continue to be provisionally indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any additional outside basis differences in these entities (i.e., basis differences in excess of that subject to the one-time transition tax) is not practicable. We also remeasured and adjusted certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21.0 percent . On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to finalize the calculations for certain income tax effects of the Tax Reform Act. In accordance with SAB 118, the Company has determined that the net tax charge of $3.6 billion recorded in connection with the tax effect of the Tax Reform Act is a provisional amount and a reasonable estimate as of December 31, 2017 . Additional work is necessary to finalize the calculation for certain income tax effects of the Tax Reform Act. Additionally, certain of our equity method investees are impacted by the Tax Reform Act and have recorded provisional tax amounts. To the extent their provisional amounts are refined in 2018, we will record our proportionate share in the line item equity income (loss) — net in our consolidated statement of income. The Global Intangible Low-Taxed Income ("GILTI") provisions of the Tax Reform Act require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary's tangible assets. The Company has not yet elected an accounting policy related to how it will account for GILTI and therefore has not provided any deferred tax impacts of GILTI in its consolidated financial statements for the year ended December 31, 2017 . The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities consist of the following (in millions): December 31, 2017 2016 Deferred tax assets: Property, plant and equipment $ 99 $ 144 Trademarks and other intangible assets 98 114 Equity method investments (including foreign currency translation adjustment) 300 684 Derivative financial instruments 387 193 Other liabilities 861 1,141 Benefit plans 977 1,599 Net operating/capital loss carryforwards 520 461 Other 163 135 Gross deferred tax assets 3,405 4,471 Valuation allowances (501 ) (530 ) Total deferred tax assets 1,2 $ 2,904 $ 3,941 Deferred tax liabilities: Property, plant and equipment $ (819 ) $ (1,176 ) Trademarks and other intangible assets (978 ) (2,694 ) Equity method investments (including foreign currency translation adjustment) (1,835 ) (1,718 ) Derivative financial instruments (436 ) (1,121 ) Other liabilities (50 ) (149 ) Benefit plans (289 ) (487 ) Other (688 ) (635 ) Total deferred tax liabilities 3 (5,095 ) (7,980 ) Net deferred tax liabilities 4 $ (2,191 ) $ (4,039 ) 1 Current deferred tax assets of $80 million were included in the line item prepaid expenses and other assets in our consolidated balance sheet as of December 31, 2016 . 2 Noncurrent deferred tax assets of $331 million and $326 million were included in the line item other assets in our consolidated balance sheets as of December 31, 2017 and 2016 , respectively. 3 Current deferred tax liabilities of $692 million were included in the line item accounts payable and accrued expenses in our consolidated balance sheet as of December 31, 2016 . 4 The decrease in the net deferred tax liabilities was primarily the result of the remeasurement in accordance with the Tax Reform Act and the impact of refranchising certain bottling territories in North America. Refer to Note 2 . As of December 31, 2017 , we had net deferred tax liabilities of $ 539 million and as of December 31, 2016 , we had net deferred tax assets of $ 83 million located in countries outside the United States. As of December 31, 2017 , we had $ 4,893 million of loss carryforwards available to reduce future taxable income. Loss carryforwards of $ 335 million must be utilized within the next five years, and the remainder can be utilized over a period greater than five years. An analysis of our deferred tax asset valuation allowances is as follows (in millions): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 530 $ 477 $ 649 Additions 184 68 42 Decrease due to reclassification to assets held for sale — (9 ) (163 ) Deductions (213 ) (6 ) (51 ) Balance at end of year $ 501 $ 530 $ 477 The Company's deferred tax asset valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits on tax loss carryforwards from operations in various jurisdictions. Current evidence does not suggest we will realize sufficient taxable income of the appropriate character within the carryforward period to allow us to realize these deferred tax benefits. If we were to identify and implement tax planning strategies to recover these deferred tax assets or generate sufficient income of the appropriate character in these jurisdictions in the future, it could lead to the reversal of these valuation allowances and a reduction of income tax expense. The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheet. In 2017, the Company recognized a net decrease of $29 million in its valuation allowances. This decrease was primarily due to the reversal of a valuation allowance in a foreign jurisdiction related to expenses incurred in the normal course of business that were previously determined to be non-deductible. In addition, the decrease in value of certain deferred tax assets and related valuation allowance due to the reduction in the U.S. corporate tax rate and changes to deferred tax assets and related valuation allowances on certain equity investments contributed to the net decrease in the valuation allowance. The decreases were partially offset by an increase in the valuation allowance due to increases in the deferred tax asset and related valuation allowances on certain equity investments and recognizing a valuation allowance on deferred tax assets related to net operating losses at certain foreign bottling operations after considering recent negative evidence as to the realizability of those deferred tax assets. In 2016, the Company recognized a net increase of $53 million in its valuation allowances. This increase was primarily due to the increase in non-deductible expenses incurred during the normal course of business operations. In 2015, the Company recognized a net decrease of $172 million in its valuation allowances. As a result of our German bottling operations meeting the criteria to be classified as held for sale, the Company was required to present the related assets and liabilities as separate line items in our consolidated balance sheets. In addition, the changes in net operating losses during the normal course of business and changes in deferred tax assets and related valuation allowances on certain equity investments also contributed to a decrease in the valuation allowances. These decreases were partially offset by an increase in the valuation allowances primarily due to the impact of currency devaluations in Venezuela on certain receivables. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2017 | |
OTHER COMPREHENSIVE INCOME [Abstract] | |
OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOME AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our consolidated balance sheets as a component of The Coca-Cola Company's shareowners' equity, which also includes our proportionate share of equity method investees' AOCI. OCI attributable to noncontrolling interests is allocated to, and included in, our consolidated balance sheets as part of the line item equity attributable to noncontrolling interests. AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions): December 31, 2017 2016 Foreign currency translation adjustments $ (8,957 ) $ (9,780 ) Accumulated derivative net gain (loss) (119 ) 314 Unrealized net gain (loss) on available-for-sale securities 493 305 Adjustments to pension and other benefit liabilities (1,722 ) (2,044 ) Accumulated other comprehensive income (loss) $ (10,305 ) $ (11,205 ) The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions): Year Ended December 31, 2017 Shareowners of The Coca-Cola Company Noncontrolling Interests Total Consolidated net income $ 1,248 $ 35 $ 1,283 Other comprehensive income: Net foreign currency translation adjustment 823 38 861 Net gain (loss) on derivatives 1 (433 ) — (433 ) Net change in unrealized gain (loss) on available-for-sale securities 2 188 — 188 Net change in pension and other benefit liabilities 3 322 — 322 Total comprehensive income $ 2,148 $ 73 $ 2,221 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. 3 Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities. OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI, for the years ended December 31, 2017 , 2016 and 2015 , is as follows (in millions): Before-Tax Amount Income Tax After-Tax Amount 2017 Foreign currency translation adjustments: Translation adjustments arising during the year $ (1,350 ) $ (242 ) $ (1,592 ) Reclassification adjustments recognized in net income 23 (6 ) 17 Gains (losses) on intra-entity transactions that are of a long-term investment nature 3,332 — 3,332 Gains (losses) on net investment hedges arising during the year (1,512 ) 578 (934 ) Net foreign currency translation adjustments 493 330 823 Derivatives: Gains (losses) arising during the year (184 ) 65 (119 ) Reclassification adjustments recognized in net income (506 ) 192 (314 ) Net gain (loss) on derivatives 1 (690 ) 257 (433 ) Available-for-sale securities: Unrealized gains (losses) arising during the year 405 (136 ) 269 Reclassification adjustments recognized in net income (123 ) 42 (81 ) Net change in unrealized gain (loss) on available-for-sale securities 2 282 (94 ) 188 Pension and other benefit liabilities: Net pension and other benefits arising during the year 120 (7 ) 113 Reclassification adjustments recognized in net income 325 (116 ) 209 Net change in pension and other benefit liabilities 3 445 (123 ) 322 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company $ 530 $ 370 $ 900 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. 3 Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities. Before-Tax Amount Income Tax After-Tax Amount 2016 Foreign currency translation adjustments: Translation adjustments arising during the year $ (1,103 ) $ 51 $ (1,052 ) Reclassification adjustments recognized in net income 368 (18 ) 350 Gains (losses) on net investment hedges arising during the year 67 (25 ) 42 Reclassification adjustments for net investment hedges recognized in net income 77 (30 ) 47 Net foreign currency translation adjustments (591 ) (22 ) (613 ) Derivatives: Gains (losses) arising during the year (43 ) 11 (32 ) Reclassification adjustments recognized in net income (563 ) 213 (350 ) Net gain (loss) on derivatives 1 (606 ) 224 (382 ) Available-for-sale securities: Unrealized gains (losses) arising during the year 124 (28 ) 96 Reclassification adjustments recognized in net income (105 ) 26 (79 ) Net change in unrealized gain (loss) on available-for-sale securities 2 19 (2 ) 17 Pension and other benefit liabilities: Net pension and other benefits arising during the year (374 ) 99 (275 ) Reclassification adjustments recognized in net income 342 (120 ) 222 Net change in pension and other benefit liabilities 3 (32 ) (21 ) (53 ) Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company $ (1,210 ) $ 179 $ (1,031 ) 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. 3 Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities. Before-Tax Amount Income Tax After-Tax Amount 2015 Foreign currency translation adjustments: Translation adjustments arising during the year $ (4,626 ) $ 243 $ (4,383 ) Reclassification adjustments recognized in net income 63 (14 ) 49 Unrealized gains (losses) on net investment hedges arising during the year 637 (244 ) 393 Net foreign currency translation adjustments (3,926 ) (15 ) (3,941 ) Derivatives: Unrealized gains (losses) arising during the year 853 (314 ) 539 Reclassification adjustments recognized in net income (638 ) 241 (397 ) Net gain (loss) on derivatives 1 215 (73 ) 142 Available-for-sale securities: Unrealized gains (losses) arising during the year (973 ) 328 (645 ) Reclassification adjustments recognized in net income (61 ) 22 (39 ) Net change in unrealized gain (loss) on available-for-sale securities 2 (1,034 ) 350 (684 ) Pension and other benefit liabilities: Net pension and other benefits arising during the year (169 ) 43 (126 ) Reclassification adjustments recognized in net income 337 (125 ) 212 Net change in pension and other benefit liabilities 3 168 (82 ) 86 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company $ (4,577 ) $ 180 $ (4,397 ) 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. 3 Refer to Note 13 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 consolidated statements of income where adjustments reclassified from AOCI into income were recorded during the year ended December 31, 2017 (in millions): Description of AOCI Component Financial Statement Line Item Amount Reclassified from AOCI into Income Foreign currency translation adjustments: Divestitures, deconsolidations and other 1 Other income (loss) — net $ 23 Income from continuing operations before income taxes $ 23 Income taxes from continuing operations (6 ) Consolidated net income $ 17 Derivatives: Foreign currency contracts Net operating revenues $ (444 ) Foreign currency and commodity contracts Cost of goods sold 3 Foreign currency and interest rate contracts Interest expense 44 Foreign currency contracts Other income (loss) — net (110 ) Divestitures, deconsolidations and other 2 Other income (loss) — net 1 Income from continuing operations before income taxes $ (506 ) Income taxes from continuing operations 192 Consolidated net income $ (314 ) Available-for-sale securities: Divestitures, deconsolidations and other 2 Other income (loss) — net $ (87 ) Sale of securities Other income (loss) — net (36 ) Income from continuing operations before income taxes $ (123 ) Income taxes from continuing operations 42 Consolidated net income $ (81 ) Pension and other benefit liabilities: Curtailment charges (credits) 3 Other operating charges $ (75 ) Settlement charges (credits) 3 Other operating charges 228 Divestitures, deconsolidations and other 2 Other income (loss) — net 7 Recognized net actuarial loss (gain) * 183 Recognized prior service cost (credit) * (18 ) Income from continuing operations before income taxes $ 325 Income taxes from continuing operations (116 ) Consolidated net income $ 209 1 Includes a $104 million loss related to the integration of CCW and CCEJ to establish CCBJI and an $80 million gain related to the derecognition of our previously held equity interests in CCBA and its South African subsidiary upon the consolidation of CCBA. Refer to Note 2 and Note 17 . 2 Primarily related to the integration of CCW and CCEJ to establish CCBJI. Refer to Note 17 . 3 The curtailment charges (credits) and settlement charges (credits) were primarily related to North America refranchising and the Company's productivity, restructuring and integration initiatives. Refer to Note 13 and Note 18 . * 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 consolidated statements of income in its entirety. Refer to Note 13 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Measurements Disclosure [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS U.S. GAAP defines 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 U.S. GAAP, certain assets and liabilities are required to be recorded at fair value on a recurring basis. For our Company, the only assets and liabilities that are adjusted to fair value on a recurring basis are investments in equity and debt securities classified as trading or available-for-sale and derivative financial instruments. Additionally, the Company adjusts the carrying value of 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 futures are determined using standard valuation models. The significant inputs used in these models are readily available in public markets, or can be derived from observable market transactions, and therefore have been classified as Level 2. Inputs used in these standard valuation models for derivative instruments other than futures include the applicable exchange rates, forward rates, interest rates, discount rates and commodity prices. The standard valuation model for options also uses implied volatility as an additional input. The discount rates are based on the historical U.S. Deposit or U.S. Treasury rates, and the implied volatility specific to options is based on quoted rates from financial institutions. Included in the fair value of derivative instruments is an adjustment for nonperformance risk. The adjustment is based on current credit default swap ("CDS") rates applied to each contract, by counterparty. We use our counterparty's CDS rate when we are in an asset position and our own CDS rate when we are in a liability position. The adjustment for nonperformance risk did not have a significant impact on the estimated fair value of our derivative instruments. The following tables summarize those assets and liabilities measured at fair value on a recurring basis (in millions): December 31, 2017 Level 1 Level 2 Level 3 Other 4 Netting Adjustment 5 Fair Value Measurements Assets: Trading securities 1 $ 212 $ 127 $ 3 $ 65 $ — $ 407 Available-for-sale securities 1 1,899 5,739 169 3 — — 7,807 Derivatives 2 7 250 — — (198 ) 6 59 8 Total assets $ 2,118 $ 6,116 $ 172 $ 65 $ (198 ) $ 8,273 Liabilities: Derivatives 2 $ (3 ) $ (262 ) $ — $ — $ 147 7 $ (118 ) 8 Total liabilities $ (3 ) $ (262 ) $ — $ — $ 147 $ (118 ) 1 Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. 2 Refer to Note 5 for additional information related to the composition of our derivative portfolio. 3 Primarily related to debt securities that mature in 2018. 4 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 3. 5 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net 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 . 6 The Company is obligated to return $55 million in cash collateral it has netted against its derivative position. 7 The Company has the right to reclaim $2 million in cash collateral it has netted against its derivative position. 8 The Company's derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $ 59 million in the line item other assets; $28 million in the line item accounts payable and accrued expenses; $12 million in the line item liabilities held for sale — discontinued operations and $ 78 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. December 31, 2016 Level 1 Level 2 Level 3 Other 4 Netting Adjustment 5 Fair Value Measurements Assets: Trading securities 1 $ 202 $ 115 $ 4 $ 63 $ — $ 384 Available-for-sale securities 1 1,655 4,619 139 3 — — 6,413 Derivatives 2 4 878 — — (369 ) 6 513 8 Total assets $ 1,861 $ 5,612 $ 143 $ 63 $ (369 ) $ 7,310 Liabilities: Derivatives 2 $ 11 $ 276 $ — $ — $ (192 ) 7 $ 95 8 Total liabilities $ 11 $ 276 $ — $ — $ (192 ) $ 95 1 Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. 2 Refer to Note 5 for additional information related to the composition of our derivative portfolio. 3 Primarily related to long-term debt securities that mature in 2018. 4 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 3. 5 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net 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 . 6 The Company is obligated to return $ 201 million in cash collateral it has netted against its derivative position. 7 The Company has the right to reclaim $ 17 million in cash collateral it has netted against its derivative position. 8 The Company's derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $ 347 million in the line item prepaid expenses and other assets; $ 166 million in the line item other assets; $42 million in the line item accounts payable and accrued expenses; and $ 53 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 years ended December 31, 2017 and 2016 . The Company recognizes transfers between levels within the hierarchy as of the beginning of the reporting period. Gross transfers between levels within the hierarchy were not significant for the years ended December 31, 2017 and 2016 . 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 U.S. GAAP. 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) December 31, 2017 2016 Assets held for sale 1 $ (1,819 ) $ (2,264 ) Intangible assets (442 ) 2 (153 ) 7 Other long-lived assets (329 ) 3 — Other-than-temporary impairment charge (50 ) 4 — Investment in formerly unconsolidated subsidiary 150 5 — Valuation of shares in equity method investee 25 6 — Total $ (2,465 ) $ (2,417 ) 1 The Company is required to record assets and liabilities that are held for sale at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price. These losses related to refranchising activities in North America. The charges were calculated based on Level 3 inputs. Refer to Note 2. 2 The Company recognized an impairment charge of $375 million related to CCR's goodwill. This impairment charge was determined by comparing the fair value of the reporting unit, based on Level 3 inputs, to its carrying value. The Company also recognized an impairment charge of $33 million related to certain U.S. bottlers' franchise rights. This charge was determined by comparing the fair value of the asset to its current carrying value. Each of these impairment charges was primarily a result of refranchising activities in North America and management's estimates of the proceeds that were expected to be received for the remaining bottling territories upon their refranchising. Additionally, the Company recorded impairment charges of $34 million related to Venezuelan intangible assets due to weaker sales and the volatility of foreign currency exchange rates resulting from continued political instability. The fair value of these assets was derived using discounted cash flow analyses based on Level 3 inputs. 3 The Company recognized impairment charges of $310 million related to CCR's property, plant and equipment and $19 million related to CCR's other assets primarily as a result of refranchising activities in North America. The fair value of these assets was derived using management's estimate of the proceeds that were expected to be received for the remaining bottling territories upon their refranchising. 4 The Company recognized an other-than-temporary impairment charge of $50 million related to one of our international equity method investees, primarily driven by foreign currency exchange rate fluctuations. The fair value of this investment was derived using discounted cash flow analyses based on Level 3 inputs. 5 The Company recognized a gain of $150 million on our previously held equity interests in CCBA and its South African subsidiary, which were accounted for under the equity method of accounting prior to our consolidation of the bottler in October 2017. U.S. GAAP requires 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 interests in CCBA and its South African subsidiary based on Level 3 inputs. Refer to Note 2. 6 The Company recognized a gain of $25 million as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its stock at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment in Coca-Cola FEMSA. This gain was determined using Level 1 inputs. 7 The Company recognized losses of $153 million during the year ended December 31, 2016 due to impairment charges related to certain intangible assets. The charges included $143 million related to the impairment of certain U.S. bottlers' franchise rights. This charge was related to a number of factors, primarily as a result of lower operating performance compared to previously modeled results as well as a revision in management's estimates of the proceeds that were expected to be received upon refranchising the territories. The losses also included a $10 million goodwill impairment charge, primarily the result of management's revised outlook on market conditions. The charges were 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 17. Fair Value Measurements for Pension and Other Postretirement Benefit Plans The fair value hierarchy discussed above is not only applicable to assets and liabilities that are included in our consolidated balance sheets but is also applied to certain other assets that indirectly impact our consolidated financial statements. For example, our Company sponsors and/or contributes to a number of pension and other postretirement benefit plans. Assets contributed by the Company become the property of the individual plans. Even though the Company no longer has control over these assets, we are indirectly impacted by subsequent fair value adjustments to these assets. The actual return on these assets impacts the Company's future net periodic benefit cost, as well as amounts recognized in our consolidated balance sheets. Refer to Note 13 . The Company uses the fair value hierarchy to measure the fair value of assets held by our various pension and other postretirement benefit plans. Pension Plan Assets The following table summarizes the levels within the fair value hierarchy for our pension plan assets as of December 31, 2017 and 2016 (in millions): December 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Other 1 Total Level 1 Level 2 Level 3 Other 1 Total Cash and cash equivalents $ 626 $ 65 $ — $ — $ 691 $ 373 $ 29 $ — $ — $ 402 Equity securities: U.S.-based companies 2,080 3 14 — 2,097 1,812 1 14 — 1,827 International-based companies 1,465 — — — 1,465 935 4 — — 939 Fixed-income securities: Government bonds — 374 — — 374 — 525 1 — 526 Corporate bonds and debt securities — 803 24 — 827 — 978 18 — 996 Mutual, pooled and commingled funds 239 42 — 700 3 981 91 20 — 1,022 3 1,133 Hedge funds/limited partnerships — — — 983 4 983 — — — 1,213 4 1,213 Real estate — — 2 596 5 598 — — 2 521 5 523 Other — — 263 2 564 6 827 — 3 211 2 598 6 812 Total $ 4,410 $ 1,287 $ 303 $ 2,843 $ 8,843 $ 3,211 $ 1,560 $ 246 $ 3,354 $ 8,371 1 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 13. 2 Includes purchased annuity insurance contracts. 3 This class of assets includes actively managed emerging markets equity funds and a collective trust fund for qualified plans, invested primarily in equity securities of companies in developed and emerging markets. There are no liquidity restrictions on these investments. 4 This class of assets includes hedge funds that can be subject to redemption restrictions, ranging from monthly to tri-annually with a redemption notice period of up to 120 days and/or initial lock-up periods of up to one year, and private equity funds that are primarily closed-end funds in which the Company's investments are generally not eligible for redemption. Distributions from these private equity funds will be received as the underlying assets are liquidated or distributed. 5 This class of assets includes funds invested in real estate, including a privately held real estate investment trust, a real estate commingled pension trust fund, infrastructure limited partnerships and commingled investment funds. These funds seek current income and capital appreciation through the investments and can be subject to redemption restrictions, ranging from quarterly to semi-annually with a redemption notice period of up to 90 days. 6 This class of assets includes segregated portfolios of private investment funds that are invested in a portfolio of insurance-linked securities. These assets can be subject to a semi-annual redemption, with a redemption notice period of 90 days, subject to certain gate restrictions. The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for our U.S. and non-U.S. pension plans for the years ended December 31, 2017 and 2016 (in millions): Equity Securities Fixed-Income Securities Real Estate Other Total 2016 Balance at beginning of year $ 11 $ 3 $ 2 $ 219 $ 235 Actual return on plan assets: Related to assets held at the reporting date 4 2 — 7 13 Related to assets sold during the year — (2 ) — 3 1 Purchases, sales and settlements — net — 12 — (23 ) (11 ) Transfers into/(out of) Level 3 — net (1 ) 4 — 7 10 Foreign currency translation adjustments — — — (2 ) (2 ) Balance at end of year $ 14 $ 19 $ 2 $ 211 1 $ 246 2017 Balance at beginning of year $ 14 $ 19 $ 2 $ 211 $ 246 Actual return on plan assets: Related to assets held at the reporting date (3 ) 1 — 4 2 Purchases, sales and settlements — net 3 1 — (9 ) (5 ) Transfers into/(out of) Level 3 — net — 3 — 31 34 Foreign currency translation adjustments — — — 26 26 Balance at end of year $ 14 $ 24 $ 2 $ 263 1 $ 303 1 Includes purchased annuity insurance contracts. Other Postretirement Benefit Plan Assets The following table summarizes the levels within the fair value hierarchy for our other postretirement benefit plan assets as of December 31, 2017 and 2016 (in millions): December 31, 2017 December 31, 2016 Level 1 Level 2 Other 1 Total Level 1 Level 2 Other 1 Total Cash and cash equivalents $ 78 $ — $ — $ 78 $ 2 $ — $ — $ 2 Equity securities: U.S.-based companies 96 — — 96 116 — — 116 International-based companies 8 — — 8 8 — — 8 Fixed-income securities: Government bonds — 2 — 2 — 3 — 3 Corporate bonds and debt securities — 7 — 7 — 6 — 6 Mutual, pooled and commingled funds — — 80 80 98 — 5 103 Hedge funds/limited partnerships — — 8 8 — — 9 9 Real estate — — 5 5 — — 4 4 Other — — 4 4 — — 4 4 Total $ 182 $ 9 $ 97 $ 288 $ 224 $ 9 $ 22 $ 255 1 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 13. Other Fair Value Disclosures The carrying amounts of cash and cash equivalents; short-term investments; trade accounts receivables; accounts payable and accrued expenses; and loans and notes payable approximate their fair values because of the relatively short-term maturities of these financial instruments. The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for those instruments. Where quoted prices are not available, fair value is estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of the debt instruments. As of December 31, 2017 , the carrying amount and fair value of our long-term debt, including the current portion, were $34,480 million and $ 35,169 million , respectively. As of December 31, 2016 , the carrying amount and fair value of our long-term debt, including the current portion, were $33,211 million and $ 33,752 million , respectively. |
SIGNIFICANT OPERATING AND NONOP
SIGNIFICANT OPERATING AND NONOPERATING ITEMS | 12 Months Ended |
Dec. 31, 2017 | |
Significant Operating and Nonoperating Items disclosure [Abstract] | |
SIGNIFICANT OPERATING AND NONOPERATING ITEMS | SIGNIFICANT OPERATING AND NONOPERATING ITEMS Other Operating Charges In 2017, the Company recorded other operating charges of $2,157 million . These charges primarily consisted of $737 million of CCR asset impairments and $650 million related to the Company's productivity and reinvestment program. In addition, other operating charges included $419 million related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, pension settlement charges and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our bottling systems. Other operating charges also included $225 million related to a cash contribution we made to The Coca-Cola Foundation, $67 million related to tax litigation expense, $34 million related to impairments of Venezuelan intangible assets and $19 million related to noncapitalizable transaction costs associated with pending and closed transactions. Refer to Note 1 for additional information about the Venezuelan intangible assets and Note 16 for information on how the Company determined the CCR asset impairment charges. Refer to Note 18 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 19 for the impact these charges had on our operating segments. In 2016, the Company recorded other operating charges of $1,510 million . These charges primarily consisted of $352 million due to the Company's productivity and reinvestment program and $240 million due to the integration of our German bottling operations. In addition, the Company recorded charges of $415 million related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, pension settlement charges and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our bottling systems. The Company also recorded a charge of $200 million related to cash contributions we made to The Coca-Cola Foundation, a charge of $76 million due to the write-down we recorded related to our receivables from our bottling partner in Venezuela as a result of changes in exchange rates and charges of $41 million related to noncapitalizable transaction costs associated with pending and closed transactions. Refer to Note 1 for additional information on the Venezuelan exchange rates. Refer to Note 18 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 19 for the impact these charges had on our operating segments. In 2016, the Company also recorded charges of $153 million related to certain intangible assets. These charges included $143 million related to the impairment of certain U.S. bottlers' franchise rights recorded in our Bottling Investments operating segment. This charge was related to a number of factors, primarily as a result of lower operating performance compared to previously modeled results as well as a revision in management's view of the proceeds that may be ultimately received upon refranchising the territories. The remaining charge of $10 million was related to the impairment of goodwill recorded in our Bottling Investments operating segment. This charge was primarily the result of management's revised outlook on market conditions. The total impairment charges of $153 million were recorded in our Bottling Investments operating segment in the line item other operating charges in our consolidated statement of income and were determined by comparing the fair value of the intangible assets, derived using discounted cash flow analyses, to their respective carrying values. In 2015, the Company incurred other operating charges of $1,657 million . These charges included $ 691 million due to the Company's productivity and reinvestment program and $ 292 million due to the integration of our German bottling operations. In addition, the Company recorded impairment charges of $418 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 due to a cash contribution we made to The Coca-Cola Foundation. The Company also incurred a charge of $ 111 million due to the write-down we recorded related to 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 1 for additional information on the Venezuelan currency change. Refer to Note 2 for additional information on the Monster Transaction. Refer to Note 18 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 19 for the impact these charges had on our operating segments. Other Nonoperating Items Interest Expense During the year ended December 31, 2017 , the Company recorded a net charge of $38 million related to the early extinguishment of long-term debt. Refer to Note 10 for additional information and Note 19 for the impact this charge had on our operating segments.. During the year ended December 31, 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 10 for additional information and Note 19 for the impact these charges had on our operating segments. Equity Income (Loss) — Net The Company recorded net charges of $92 million , $ 61 million and $ 87 million in equity income (loss) — net during the years ended December 31, 2017 , 2016 and 2015 , respectively. These amounts primarily represent the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 19 for the impact these charges had on our operating segments. Other Income (Loss) — Net In 2017, other income (loss) — net was a loss of $1,666 million . The Company recognized a net charge of $2,140 million due to the refranchising of certain bottling territories in North America and charges of $313 million primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. The Company also recorded an other-than-temporary impairment charge of $50 million related to one of our international equity method investees, primarily driven by foreign currency exchange rate fluctuations. Additionally, the Company incurred a charge of $26 million related to our former German bottling operations. These charges were partially offset by a gain of $445 million related to the integration of CCW and CCEJ to establish CCBJI. In exchange for our previously existing equity interests in CCW and CCEJ, we received an approximate 17 percent equity interest in CCBJI. The fair value of our equity investment in CCBJI was based on its quoted market price (a Level 1 measurement). The Company also recognized a gain of $150 million related to the remeasurement of our previously held equity interests in CCBA and its South African subsidiary to fair value. Additionally, the Company recognized a gain of $88 million related to the refranchising of our China bottling operations and related cost method investment and a gain of $25 million as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its stock during the period at a per share amount greater than the carrying value of the Company's per share investment. Refer to Note 2 for additional information on our North America and China refranchising activities and our consolidation of CCBA. Refer to Note 19 for the impact these items had on our operating segments. In 2016, other income (loss) — net was a loss of $1,234 million . This loss included a net charge of $2,456 million due to the refranchising of certain bottling territories in North America and a charge of $21 million due to the deconsolidation of our South African bottling operations and disposal of the related equity method investment in exchange for investments in CCBA and CCBA's South African subsidiary. The Company incurred charges of $31 million related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Additionally, the Company incurred a charge of $72 million as a result of remeasuring its net monetary assets denominated in Egyptian pounds. The Egyptian pound devalued as a result of the central bank allowing its currency, which was previously pegged to the U.S. dollar, to float freely. These charges were partially offset by a gain of $1,323 million due to the deconsolidation of our German bottling operations. Refer to Note 2 for additional information on the deconsolidation of our German bottling operations, the deconsolidation of our South African bottling operations, the North America refranchising and the conversion payments. Refer to Note 19 for the impact these items had on our operating segments. In 2015, the Company recorded a net gain of $ 1,403 million as a result of the Monster Transaction and a net charge of $ 1,006 million due to the refranchising of certain bottling territories in North America. In addition, the Company recognized a foreign currency exchange gain of $ 300 million associated with our foreign-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 1 for additional information related to the charge due to the remeasurement in Venezuela. Refer to Note 2 for additional information related to the Monster Transaction and North America refranchising. Refer to Note 19 for the impact these items had on our operating segments. |
PRODUCTIVITY, INTEGRATION AND R
PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES | PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES Productivity and Reinvestment In February 2012, the Company announced a 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 the integration of Old CCE's North American bottling operations. In February 2014, the Company announced the expansion of our productivity and reinvestment program to drive incremental productivity 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 were 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; 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. In April 2017, the Company announced its plans to transition to a new, more agile operating model to enable growth. Under this operating model, our business units will be supported by an expanded enabling services organization and a corporate center focused on a few strategic initiatives, policy and governance. The expanded enabling services organization will focus on both simplifying and standardizing key transactional processes and providing support to business units through global centers of excellence. The Company has incurred total pretax expenses of $3,058 million related to this program since it commenced. These expenses were recorded in the line item other operating charges in our consolidated statements of income. Refer to Note 19 for the impact these charges had on our operating segments. Outside services reported in the table below primarily relate to expenses in connection with legal, outplacement and consulting activities. Other direct costs reported in the table below include, among other items, internal and external costs associated with the development, communication, administration and implementation of these initiatives; accelerated depreciation on certain fixed assets; contract termination fees; and relocation costs. The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts (in millions): Severance Pay and Benefits Outside Services Other Direct Costs Total 2015 Accrued balance at beginning of year $ 260 $ 4 $ 21 $ 285 Costs incurred 269 56 366 691 Payments (200 ) (47 ) (265 ) (512 ) Noncash and exchange (185 ) 1 (5 ) (70 ) (260 ) Accrued balance at end of year $ 144 $ 8 $ 52 $ 204 2016 Costs incurred $ 95 $ 27 $ 230 $ 352 Payments (114 ) (30 ) (205 ) (349 ) Noncash and exchange (2 ) 1 (55 ) (56 ) Accrued balance at end of year $ 123 $ 6 $ 22 $ 151 2017 Costs incurred $ 310 $ 79 $ 261 $ 650 Payments (181 ) (83 ) (267 ) (531 ) Noncash and exchange (62 ) 1 (1 ) (1 ) (64 ) Accrued balance at end of year $ 190 $ 1 $ 15 $ 206 1 Includes pension settlement charges. Refer to Note 13. Integration Initiatives Integration of Our German Bottling Operations In 2008, the Company began an integration initiative related to our German bottling operations acquired in 2007. The Company incurred $ 240 million and $ 292 million of expenses related to this initiative in 2016 and 2015 , respectively and has incurred total pretax expenses of $ 1,367 million related to this initiative since it commenced. These expenses were recorded in the line item other operating charges in our consolidated statements of income and impacted the Bottling Investments operating segment. The expenses recorded in connection with these integration activities have been primarily due to involuntary terminations. The Company had $122 million accrued related to these integration costs as of December 31, 2015. During the year ended December 31, 2016, the Company deconsolidated our German bottling operations. Therefore, there was no remaining accrual balance as of December 31, 2016. Refer to Note 2 for additional information on the deconsolidation of our German bottling operations. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Operations, Reportable Information, by Operating Segment | |
OPERATING SEGMENTS | OPERATING SEGMENTS As of December 31, 2017 , our organizational structure consisted of the following operating segments: Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Bottling Investments; and Corporate. Segment Products and Services The business of our Company is nonalcoholic beverages. Our geographic operating segments (Europe, Middle East and Africa; Latin America; North America; and Asia Pacific) derive a majority of their revenues from the manufacture and sale of beverage concentrates and syrups and, in some cases, the sale of finished beverages. Our Bottling Investments operating segment is composed of our Company-owned or consolidated bottling operations, with the exception of those that are classified as discontinued operations, regardless of the geographic location of the bottler. Our Bottling Investments operating segment also includes equity income from the majority of our equity method investments. Company-owned or consolidated bottling operations derive the majority of their revenues from the sale of finished beverages. Generally, finished product operations produce higher net operating revenues but lower gross profit margins compared to concentrate operations. The following table sets forth the percentage of total net operating revenues related to concentrate operations and finished product operations: Year Ended December 31, 2017 2016 2015 Concentrate operations 1 51 % 40 % 37 % Finished product operations 2 49 60 63 Total 100 % 100 % 100 % 1 Includes concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell the fountain syrups to wholesalers or directly to fountain retailers. 2 Includes fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers. Method of Determining Segment Income or Loss Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting financial performance. Our Company manages income taxes from continuing operations and certain treasury-related items, such as interest income and expense, on a global basis within the Corporate operating segment. We evaluate segment performance based on income or loss from continuing operations before income taxes. Geographic Data The following table provides information related to our net operating revenues (in millions): Year Ended December 31, 2017 2016 2015 United States $ 14,727 $ 19,899 $ 20,360 International 20,683 21,964 23,934 Net operating revenues $ 35,410 $ 41,863 $ 44,294 The following table provides information related to our property, plant and equipment — net (in millions): Year Ended December 31, 2017 2016 2015 United States $ 4,163 $ 6,784 $ 8,266 International 4,040 3,851 4,305 Property, plant and equipment — net $ 8,203 $ 10,635 $ 12,571 Information about our Company's continuing operations by operating segment as of and for the years ended December 31, 2017 , 2016 and 2015 , is as follows (in millions): Europe, Middle East & Africa Latin America North America Asia Pacific Bottling Investments Corporate Eliminations Consolidated 2017 Net operating revenues: Third party $ 7,332 $ 3,956 $ 8,651 $ 4,767 $ 10,524 $ 138 $ — $ 35,368 Intersegment 42 73 1,986 409 81 — (2,549 ) 42 4 Total net operating revenues 7,374 4,029 10,637 5,176 10,605 138 (2,549 ) 35,410 Operating income (loss) 3,646 2,214 2,578 2,163 (1,117 ) (1,983 ) — 7,501 Interest income — — 44 — — 633 — 677 Interest expense — — — — — 841 — 841 Depreciation and amortization 91 37 411 65 454 202 — 1,260 Equity income (loss) — net 48 (3 ) (3 ) 11 878 140 — 1,071 Income (loss) from continuing operations before income taxes 3,706 2,211 2,307 2,179 (2,345 ) (1,316 ) — 6,742 Identifiable operating assets 1 5,475 1,896 17,619 2,072 2 4,493 2 27,060 — 58,615 5 Investments 3 1,238 891 112 177 15,998 3,536 — 21,952 Capital expenditures 81 55 541 50 662 286 — 1,675 2016 Net operating revenues: Third party $ 7,014 $ 3,746 $ 6,437 $ 4,788 $ 19,751 $ 127 $ — $ 41,863 Intersegment 264 73 3,773 506 134 5 (4,755 ) — Total net operating revenues 7,278 3,819 10,210 5,294 19,885 132 (4,755 ) 41,863 Operating income (loss) 3,676 1,951 2,582 2,224 (137 ) (1,670 ) — 8,626 Interest income — — 27 — — 615 — 642 Interest expense — — — — — 733 — 733 Depreciation and amortization 93 35 426 80 1,013 140 — 1,787 Equity income (loss) — net 62 18 (17 ) 9 648 115 — 835 Income (loss) from continuing operations before income taxes 3,749 1,966 2,560 2,238 (1,923 ) (454 ) — 8,136 Identifiable operating assets 1 4,067 1,785 16,566 2,024 15,973 29,606 — 70,021 Investments 3 1,302 804 109 164 11,456 3,414 — 17,249 Capital expenditures 62 45 438 107 1,329 281 — 2,262 2015 Net operating revenues: Third party $ 6,966 $ 3,999 $ 5,581 $ 4,707 $ 22,885 $ 156 $ — $ 44,294 Intersegment 621 75 4,259 545 178 10 (5,688 ) — Total net operating revenues 7,587 4,074 9,840 5,252 23,063 166 (5,688 ) 44,294 Operating income (loss) 3,875 2,169 2,366 2,189 124 (1,995 ) — 8,728 Interest income — — 9 — — 604 — 613 Interest expense — — — — — 856 — 856 Depreciation and amortization 103 41 373 85 1,211 157 — 1,970 Equity income (loss) — net 39 (7 ) (18 ) 9 426 40 — 489 Income (loss) from continuing operations before income taxes 3,923 2,164 2,356 2,207 (427 ) (618 ) — 9,605 Identifiable operating assets 1 4,156 2 1,627 16,396 1,639 22,688 2 27,702 — 74,208 Investments 3 1,138 657 107 158 8,084 5,644 — 15,788 Capital expenditures 54 70 377 81 1,699 272 — 2,553 1 Principally cash and cash equivalents, short-term investments, marketable securities, trade accounts receivable, inventories, goodwill, trademarks and other intangible assets, and property, plant and equipment — net. 2 Property, plant and equipment — net in India represented 11 percent of consolidated property, plant and equipment — net in 2017. Property, plant and equipment — net in Germany represented 10 percent of consolidated property, plant and equipment — net in 2015. The 2015 amount includes property, plant and equipment — net classified as held for sale. During the year ended December 31, 2016, the Company deconsolidated our German bottling operations. Refer to Note 2 . 3 Principally equity method investments and other investments in bottling companies. 4 Intersegment revenues do not eliminate on a consolidated basis in the table above due to intercompany sales to our discontinued operations. 5 Identifiable operating assets excludes $7,329 million of assets held for sale — discontinued operations. During 2017, 2016 and 2015, our operating segments were impacted by acquisition and divestiture activities. Refer to Note 2. In 2017 , the results of our operating segments were impacted by the following items: • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $26 million for Europe, Middle East and Africa, $7 million for Latin America, $241 million for North America, $10 million for Asia Pacific, $57 million for Bottling Investments and $309 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 18 . • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $737 million for Bottling Investments and $34 million for Corporate due to asset impairment charges. Refer to Note 1 and Note 17 . • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $419 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 17 . • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $225 million for Corporate as a result of cash contributions to The Coca-Cola Foundation. Refer to Note 17 . • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $67 million for Corporate due to tax litigation expense. Refer to Note 11 and Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $4 million for Europe, Middle East and Africa, $2 million for North America, $70 million for Bottling Investments and $16 million for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $2,140 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2 . • Income (loss) from continuing operations before income taxes was increased by $445 million for Corporate due to a gain recognized resulting from the merger of CCW and CCEJ. Refer to Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $313 million for North America primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2 . • Income (loss) from continuing operations before income taxes was increased by $150 million for Corporate related to the remeasurement of our previously held equity interests in CCBA and its South African subsidiary to fair value. Refer to Note 2 . • Income (loss) from continuing operations before income taxes was increased by $88 million for Corporate due to a gain recognized upon refranchising our China bottling operations and related cost method investment. Refer to Note 2 . • Income (loss) from continuing operations before income taxes was reduced by $50 million for Corporate due to an other-than-temporary impairment charge related to one of our international equity method investees. Refer to Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $38 million for Corporate due to the early extinguishment of long-term debt. Refer to Note 10 . • Income (loss) from continuing operations before income taxes was reduced by $26 million for Corporate due to a charge related to our former German bottling operations. • Income (loss) from continuing operations before income taxes was increased by $25 million for Corporate due to Coca‑Cola FEMSA, an equity method investee, issuing additional shares of its stock during the period at a per share amount greater than the carrying value of the Company's per share investment. In 2016 , the results of our operating segments were impacted by the following items: • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $32 million for Europe, Middle East and Africa, $134 million for North America, $1 million for Asia Pacific, $322 million for Bottling Investments and $105 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) from continuing operations before income taxes were increased by $2 million for Latin America due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. Refer to Note 18 . • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $297 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 17 . • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $200 million for Corporate as a result of cash contributions to The Coca-Cola Foundation. Refer to Note 17 . • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $153 million for Bottling Investments due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 17. • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $118 million for Bottling Investments due to pension settlement charges primarily as a result of our refranchising activities. Refer to Note 17. • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $76 million for Latin America due to the write-down we recorded related to our receivables from our bottling partner in Venezuela due to changes in exchange rates. Refer to Note 1. • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $9 million for Bottling Investments and $32 million for Corporate related to noncapitalizable transaction costs associated with pending and closed transactions. Refer to Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $52 million for Bottling Investments and $9 million for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $2,456 million for Bottling Investments primarily due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 17 . • Income (loss) from continuing operations before income taxes was increased by $1,323 million for Corporate as a result of the deconsolidation of our German bottling operations. Refer to Note 2 . • Income (loss) from continuing operations before income taxes was reduced by $72 million for Corporate as a result of remeasuring our net monetary assets denominated in Egyptian pounds. Refer to Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $31 million for North America related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2 . In 2015 , the results of our operating segments were impacted by the following items: • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $ 7 million for Latin America, $ 141 million for North America, $ 2 million for Asia Pacific, $ 596 million for Bottling Investments and $ 246 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) from continuing operations before income taxes were increased by $ 9 million for Europe, Middle East and Africa due to the refinement of previously established accruals, partially offset by additional charges related to the Company's productivity and reinvestment program. Refer to Note 18 . • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $418 million for Corporate primarily 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 17 . • Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $100 million for Corporate as a result of a cash contribution to The Coca-Cola Foundation. Refer to Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $4 million for Europe, Middle East and Africa and $83 million for Bottling Investments due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 17 . • Income (loss) from continuing operations before income taxes was increased by $1,403 million for Corporate as a result of the Monster Transaction. Refer to Note 2 and Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $1,006 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $320 million for Corporate due to charges the Company recognized on the early extinguishment of certain long-term debt. Refer to Note 10 and Note 17 . • Income (loss) from continuing operations before income taxes was reduced by $33 million for Latin America and $105 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 17 . |
NET CHANGE IN OPERATING ASSETS
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES DISCLOSURE [Abstract] | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES | NET CHANGE IN OPERATING ASSETS AND LIABILITIES Net cash provided by (used in) operating activities attributable to the net change in operating assets and liabilities is composed of the following (in millions): Year Ended December 31, 2017 2016 2015 (Increase) decrease in trade accounts receivable $ (141 ) $ (28 ) $ (212 ) (Increase) decrease in inventories (355 ) (142 ) (250 ) (Increase) decrease in prepaid expenses and other assets 571 283 123 Increase (decrease) in accounts payable and accrued expenses (445 ) (540 ) 1,004 Increase (decrease) in accrued income taxes (153 ) 750 (306 ) Increase (decrease) in other liabilities 1 4,052 (544 ) (516 ) Net change in operating assets and liabilities $ 3,529 $ (221 ) $ (157 ) 1 The increase in other liabilities in 2017 was primarily due to the one-time transition tax required by the Tax Reform Act signed into law on December 22, 2017 . Refer to Note 14 . |
BUSINESS AND SUMMARY OF SIGNI30
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our consolidated financial statements and accompanying notes. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Furthermore, when testing assets for impairment in future periods, if management uses different assumptions or if different conditions occur, impairment charges may result. Certain amounts in the prior years' consolidated financial statements and accompanying notes have been revised to conform to the current year presentation. |
Principles of Consolidation | Principles of Consolidation Our Company consolidates all entities that we control by ownership of a majority voting interest. Additionally, there are situations in which consolidation is required even though the usual condition of consolidation (ownership of a majority voting interest) does not apply. Generally, this occurs when an entity holds an interest in another business enterprise that was achieved through arrangements that do not involve voting interests, which results in a disproportionate relationship between such entity's voting interests in, and its exposure to the economic risks and potential rewards of, the other business enterprise. This disproportionate relationship results in what is known as a variable interest, and the entity in which we have the variable interest is referred to as a "VIE." An enterprise must consolidate a VIE if it is determined to be the primary beneficiary of the VIE. The primary beneficiary has both (1) the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and (2) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. Our Company holds interests in certain VIEs, primarily bottling and container manufacturing operations, for which we were not determined to be the primary beneficiary. Our variable interests in these VIEs primarily relate to equity investments, profit guarantees or subordinated financial support. Refer to Note 11 . Although these financial arrangements resulted in our holding variable interests in these entities, they did not empower us to direct the activities of the VIEs that most significantly impact the VIEs' economic performance. Our Company's investments, plus any loans and guarantees, and other subordinated financial support related to these VIEs totaled $ 4,523 million and $ 3,709 million as of December 31, 2017 and 2016 , respectively, representing our maximum exposures to loss. The Company's investments, plus any loans and guarantees, related to these VIEs were not individually significant to the Company's consolidated financial statements. In addition, our Company holds interests in certain VIEs, primarily bottling and container manufacturing operations, for which we were determined to be the primary beneficiary. As a result, we have consolidated these entities. Our Company's investments, plus any loans and guarantees, related to these VIEs totaled $ 1 million and $ 203 million as of December 31, 2017 and 2016 , respectively, representing our maximum exposures to loss. The assets and liabilities of VIEs for which we are the primary beneficiary were not significant to the Company's consolidated financial statements. Creditors of our VIEs do not have recourse against the general credit of the Company, regardless of whether they are accounted for as consolidated entities. We use the equity method to account for investments in companies if our investment provides us with the ability to exercise significant influence over operating and financial policies of the investee. Our consolidated net income includes our Company's proportionate share of the net income or loss of these companies. Our judgment regarding the level of influence over each equity method investee includes considering key factors such as our ownership interest, representation on the board of directors, participation in policy-making decisions, other commercial arrangements and material intercompany transactions. We eliminate from our financial results all significant intercompany transactions, including the intercompany transactions with consolidated VIEs and the intercompany portion of transactions with equity method investees. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale Our Company classifies long-lived assets or disposal groups to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the asset or disposal group; the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets or disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the asset or disposal group beyond one year; the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We initially measure a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held-for-sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset or disposal group until the date of sale. We assess the fair value of a long-lived asset or disposal group less any costs to sell each reporting period it remains classified as held for sale and report any subsequent changes as an adjustment to the carrying value of the asset or disposal group, as long as the new carrying value does not exceed the carrying value of the asset at the time it was initially classified as held for sale. Upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company ceases depreciation and reports long-lived assets and/or the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale, respectively, in our consolidated balance sheet. Refer to Note 2. |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations When the following criteria are met: the disposal group is a component of an entity, the component of the entity meets the held for sale criteria in accordance with our policy described above and the component of the entity represents a strategic shift in the entity's operating and financial results, the disposal group is classified as a discontinued operation. Alternatively, if a business meets the criteria for held for sale on the acquisition date, the business is accounted for as a discontinued operation. In October 2017, the Company and Anheuser-Busch InBev ("ABI") completed the transition of ABI's controlling interest in Coca-Cola Beverages Africa Proprietary Limited ("CCBA") to the Company for $3,150 million , resulting in its consolidation. As CCBA met the criteria for held for sale upon consolidation, we have presented the financial position and results of operations of CCBA as discontinued operations in the accompanying consolidated financial statements. |
Revenue Recognition | Revenue Recognition Our Company recognizes revenue when persuasive evidence of an arrangement exists, delivery of products has occurred, the sales price charged is fixed or determinable, and collectibility is reasonably assured. For our Company, this generally means that we recognize revenue when title to our products is transferred to our bottling partners, resellers or other customers. In particular, title usually transfers upon shipment to or receipt at our customers' locations, as determined by the specific sales terms of the transactions. Our sales terms do not allow for a right of return except for matters related to any manufacturing defects on our part. |
Deductions from Revenue | Deductions from Revenue Our customers can earn certain incentives including, but not limited to, cash discounts, funds for promotional and marketing activities, volume-based incentive programs and support for infrastructure programs. The costs associated with these incentives are included in deductions from revenue, a component of net operating revenues in our consolidated statements of income. For customer incentives that must be earned, management must make estimates related to the contractual terms, customer performance and sales volume to determine the total amounts earned and to be recorded in deductions from revenue. In making these estimates, management considers past results. The actual amounts ultimately paid may be different from our estimates. In some situations, the Company may determine it to be advantageous to make advance payments to specific customers to fund certain marketing activities intended to generate profitable volume and/or invest in infrastructure programs with our bottlers that are directed at strengthening our bottling system and increasing unit case volume. The Company also makes advance payments to certain customers for distribution rights. The advance payments made to customers are initially capitalized and included in our consolidated balance sheets in prepaid expenses and other assets and noncurrent other assets, depending on the duration of the agreements. The assets are amortized over the applicable periods and included in deductions from revenue. The duration of these agreements typically ranges up to 10 years. Amortization expense for infrastructure programs was $ 36 million , $ 45 million and $ 61 million in 2017 , 2016 and 2015 , respectively. The aggregate deductions from revenue recorded by the Company in relation to these programs, including amortization expense on infrastructure programs, were $ 6.2 billion , $ 6.6 billion and $ 6.8 billion in 2017 , 2016 and 2015 , respectively. |
Advertising Costs | Advertising Costs Our Company expenses production costs of print, radio, television and other advertisements as of the first date the advertisements take place. All other marketing expenditures are expensed in the annual period in which the expenditure is incurred. Advertising costs included in the line item selling, general and administrative expenses in our consolidated statements of income were $4 billion in 2017 , 2016 and 2015 . As of December 31, 2017 and 2016 , advertising and production costs of $ 95 million and $ 113 million , respectively, were primarily recorded in the line item prepaid expenses and other assets in our consolidated balance sheets. For interim reporting purposes, we allocate our estimated full year marketing expenditures that benefit multiple interim periods to each of our interim reporting periods. We use the proportion of each interim period's actual unit case volume to the estimated full year unit case volume as the basis for the allocation. This methodology results in our marketing expenditures being recognized at a standard rate per unit case. At the end of each interim reporting period, we review our estimated full year unit case volume and our estimated full year marketing expenditures in order to evaluate if a change in estimate is necessary. The impact of any changes in these full year estimates is recognized in the interim period in which the change in estimate occurs. Our full year marketing expenditures are not impacted by this interim accounting policy. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs related to the movement of finished goods from manufacturing locations to our sales distribution centers are included in the line item cost of goods sold in our consolidated statements of income. Shipping and handling costs incurred to move finished goods from our sales distribution centers to customer locations are included in the line item selling, general and administrative expenses in our consolidated statements of income. During the years ended December 31, 2017 , 2016 and 2015 , the Company recorded shipping and handling costs of $ 1.1 billion , $2.0 billion and $2.5 billion , respectively, in the line item selling, general and administrative expenses. Our customers do not pay us separately for shipping and handling costs related to finished goods. |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income attributable to shareowners of The Coca-Cola Company by the weighted-average number of common shares outstanding during the reporting period. Diluted net income per share is computed similarly to basic net income per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. Approximately 47 million , 51 million and 27 million stock option awards were excluded from the computations of diluted net income per share in 2017 , 2016 and 2015 , respectively, because the awards would have been antidilutive for the years presented. The following table presents information related to net income from continuing operations and net income from discontinued operations attributable to shareowners of The Coca-Cola Company (in millions): Year Ended December 31, 2017 2016 2015 CONTINUING OPERATIONS Net income from continuing operations $ 1,182 $ 6,550 $ 7,366 Less: Net income from continuing operations attributable to noncontrolling interests 1 23 15 Net income from continuing operations attributable to shareowners of The Coca-Cola Company $ 1,181 $ 6,527 $ 7,351 DISCONTINUED OPERATIONS Net income from discontinued operations $ 101 $ — $ — Less: Net income from discontinued operations attributable to noncontrolling interests 34 — — Net income from discontinued operations attributable to shareowners of $ 67 $ — $ — CONSOLIDATED Consolidated net income $ 1,283 $ 6,550 $ 7,366 Less: Net income attributable to noncontrolling interests 35 23 15 Net income attributable to shareowners of The Coca-Cola Company $ 1,248 $ 6,527 $ 7,351 |
Cash Equivalents | Cash Equivalents We classify time deposits and other investments that are highly liquid and have maturities of three months or less at the date of purchase as cash equivalents. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor our credit risk concentrations. |
Short-Term Investments | Short-Term Investments We classify time deposits and other investments that have maturities of greater than three months but less than one year as short-term investments. |
Investments in Equity and Debt Securities | Investments in Equity and Debt Securities We use the equity method to account for our investments in equity securities if our investment gives us the ability to exercise significant influence over operating and financial policies of the investee. We include our proportionate share of earnings and/or losses of our equity method investees in equity income (loss) — net in our consolidated statements of income. The carrying value of our equity investments is reported in equity method investments in our consolidated balance sheets. Refer to Note 6 . We account for investments in companies that we do not control or account for under the equity method either at fair value or under the cost method, as applicable. Investments in equity securities, other than investments accounted for under the equity method, are carried at fair value if the fair value of the security is readily determinable. Equity investments carried at fair value are classified as either trading or available-for-sale securities with their cost basis determined by the specific identification method. Realized and unrealized gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in other income (loss) — net in our consolidated statements of income. Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in our consolidated balance sheets as a component of accumulated other comprehensive income (loss) ("AOCI"), except for the change in fair value attributable to the currency risk being hedged, if applicable, which is included in other income (loss) — net in our consolidated statements of income. Trading securities are reported as either marketable securities or other assets in our consolidated balance sheets. Securities classified as available-for-sale are reported as either cash and cash equivalents, marketable securities, other investments or other assets in our consolidated balance sheets, depending on the length of time we intend to hold the investment. Refer to Note 3 . Investments in equity securities that we do not control or account for under the equity method and do not have readily determinable fair values for are accounted for under the cost method. Cost method investments are originally recorded at cost, and we record dividend income when applicable dividends are declared. Cost method investments are reported as other investments in our consolidated balance sheets, and dividend income from cost method investments is reported in the line item other income (loss) — net in our consolidated statements of income. Our investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Each reporting period we review all of our investments in equity and debt securities, except for those classified as trading, to determine whether a significant event or change in circumstances has occurred that may have an adverse effect on the fair value of each investment. When such events or changes occur, we evaluate the fair value compared to our cost basis in the investment. We also perform this evaluation every reporting period for each investment for which our cost basis exceeded the fair value. The fair values of most of our investments in publicly traded companies are often readily available based on quoted market prices. For investments in nonpublicly traded companies, management's assessment of fair value is based on valuation methodologies including discounted cash flows, estimates of sales proceeds, and appraisals, as appropriate. We consider the assumptions that we believe hypothetical marketplace participants would use in evaluating estimated future cash flows when employing the discounted cash flow or estimates of sales proceeds valuation methodologies. In the event the fair value of an investment declines below our cost basis, management is required to determine if the decline in fair value is other than temporary. If management determines the decline is other than temporary, an impairment charge is recorded. Management's assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the extent to which the market value has been less than our cost basis; the financial condition and near-term prospects of the issuer; and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value. |
Trade Accounts Receivable | Trade Accounts Receivable We record trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the trade accounts receivable balances and charged to the provision for doubtful accounts. We calculate this allowance based on our history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and our relationships with, and the economic status of, our bottling partners and customers. We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations. Activity in the allowance for doubtful accounts was as follows (in millions): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 466 $ 352 $ 331 Net charges to costs and expenses 1 32 126 45 Write-offs (10 ) (10 ) (10 ) Other 2 (11 ) (2 ) (14 ) Balance at end of year $ 477 $ 466 $ 352 1 The increases in 2016 were primarily related to concentrate sales receivables from our bottling partner in Venezuela. See Hyperinflationary Economies discussion below for additional information. 2 Other includes foreign currency translation adjustments and the impact of reclassifying certain assets to assets held for sale. Refer to Note 2. A significant portion of our net operating revenues and corresponding accounts receivable is derived from sales of our products in international markets. Refer to Note 19 . We also generate a significant portion of our net operating revenues by selling concentrates and syrups to bottlers in which we have a noncontrolling interest. Refer to Note 6 . |
Inventories | Inventories Inventories consist primarily of raw materials and packaging (which includes ingredients and supplies) and finished goods (which include concentrates and syrups in our concentrate operations and finished beverages in our finished product operations). Inventories are valued at the lower of cost or net realizable value. We determine cost on the basis of the average cost or first-in, first-out methods. Refer to Note 4 . |
Derivative Instruments | Derivative Instruments Our Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. All derivatives are carried at fair value in our consolidated balance sheets in the following line items, as applicable: prepaid expenses and other assets; other assets; accounts payable and accrued expenses; and other liabilities. The cash flow impact of the Company's derivative instruments is primarily included in our consolidated statements of cash flows in net cash provided by operating activities. Refer to Note 5 . |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Repair and maintenance costs that do not improve service potential or extend economic life are expensed as incurred. Depreciation is recorded principally by the straight-line method over the estimated useful lives of our assets, which are reviewed periodically and generally have the following ranges: buildings and improvements: 40 years or less; and machinery, equipment and vehicle fleet: 20 years or less. Land is not depreciated, and construction in progress is not depreciated until ready for service. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining lease term, including renewals that are deemed to be reasonably assured, or the estimated useful life of the improvement. Depreciation is not recorded during the period in which a long-lived asset or disposal group is classified as held for sale, even if the asset or disposal group continues to generate revenue during the period. Depreciation expense, including the depreciation expense of assets under capital lease, totaled $ 1,131 million , $ 1,575 million and $ 1,735 million in 2017 , 2016 and 2015 , respectively. Amortization expense for leasehold improvements totaled $ 19 million , $ 22 million and $ 18 million in 2017 , 2016 and 2015 , respectively. Certain events or changes in circumstances may indicate that the recoverability of the carrying amount of property, plant and equipment should be assessed, including, among others, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present, we estimate the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. We use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models, which are consistent with the assumptions we believe hypothetical marketplace participants would use. Refer to Note 7 . |
Goodwill, Trademarks and Other Intangible Assets | Goodwill, Trademarks and Other Intangible Assets We classify intangible assets into three categories: (1) intangible assets with definite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization and (3) goodwill. We determine the useful lives of our identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors we consider when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their useful lives, generally ranging from 1 to 20 years. Refer to Note 8 . When facts and circumstances indicate that the carrying value of definite-lived intangible assets may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of sales volume and the resulting profit and cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount of the asset or asset group exceeds the fair value. We use a variety of methodologies to determine the fair value of these assets, including discounted cash flow models, which are consistent with the assumptions we believe hypothetical marketplace participants would use. We test intangible assets determined to have indefinite useful lives, including trademarks, franchise rights and goodwill, for impairment annually, or more frequently if events or circumstances indicate that assets might be impaired. Our Company performs these annual impairment reviews as of the first day of our third fiscal quarter. We use a variety of methodologies in conducting impairment assessments of indefinite-lived intangible assets, including, but not limited to, discounted cash flow models, which are based on the assumptions we believe hypothetical marketplace participants would use. For indefinite-lived intangible assets, other than goodwill, if the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. The Company has the option to perform a qualitative assessment of indefinite-lived intangible assets, other than goodwill, rather than completing the impairment test. The Company must assess whether it is more likely than not that the fair value of the intangible asset is less than its carrying amount. If the Company concludes that this is the case, it must perform the testing described above. Otherwise, the Company does not need to perform any further assessment. We perform impairment tests of goodwill at our reporting unit level, which is one level below our operating segments. Our operating segments are primarily based on geographic responsibility, which is consistent with the way management runs our business. Our operating segments are subdivided into smaller geographic regions or territories that we sometimes refer to as "business units." These business units are also our reporting units. The Bottling Investments operating segment includes all Company-owned or consolidated bottling operations, regardless of geographic location. Generally, each Company-owned or consolidated bottling operation within our Bottling Investments operating segment is its own reporting unit. Goodwill is assigned to the reporting unit or units that benefit from the synergies arising from each business combination. In order to test for goodwill impairment, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is lower than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the fair value. However, the loss recognized cannot exceed the carrying amount of goodwill. We typically use discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those we believe a hypothetical marketplace participant would use. The Company has the option to perform a qualitative assessment of goodwill in order to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If the Company concludes that this is the case, it must perform the testing discussed above. Otherwise, the Company does not need to perform any further testing. Impairment charges related to intangible assets, including goodwill, are generally recorded in the line item other operating charges or, to the extent they relate to equity method investees, in the line item equity income (loss) — net in our consolidated statements of income. |
Contingencies | Contingencies Our Company is involved in various legal proceedings and tax matters. Due to their nature, such legal proceedings and tax matters involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties and governmental actions. Management assesses the probability of loss for such contingencies and accrues a liability and/or discloses the relevant circumstances, as appropriate. Refer to Note 11 . |
Stock-Based Compensation | Stock-Based Compensation Our Company sponsors equity plans that provide for the grant of awards including stock options, restricted stock units, restricted stock and performance share units. The fair value of our stock option grants is estimated on the grant date using a Black-Scholes-Merton option-pricing model. The Company recognizes compensation expense on a straight-line basis over the period the grant is earned by the employee, generally four years . The fair value of our restricted stock units, restricted stock and certain performance share units is the quoted market value of the Company's stock on the grant date less the present value of the expected dividends not received during the relevant period. For most performance share units granted beginning in 2014, the Company includes a relative total shareowner return ("TSR") modifier to determine the number of shares earned at the end of the performance period. For these awards, the number of shares earned based on the certified achievement of the predefined performance criteria will be reduced or increased if the Company's total shareowner return over the performance period relative to a predefined compensation comparator group of companies falls outside of a defined range. The fair value of performance share units that include the TSR modifier is determined using a Monte Carlo valuation model. In the period it becomes probable that the minimum performance criteria specified in the performance share award will be achieved, we recognize expense for the proportionate share of the total fair value of the award related to the vesting period that has already lapsed. The remaining fair value of the award is expensed on a straight-line basis over the balance of the vesting period. In the event the Company determines it is no longer probable that we will achieve the minimum performance criteria specified in the award, we reverse all of the previously recognized compensation expense in the period such a determination is made. The Company has made a policy election to estimate the number of awards that are expected to vest to determine the amount of stock-based compensation expense recognized in earnings. Forfeiture estimates are trued-up through the vesting date, in order to ensure that total compensation expense is recognized only for those awards that ultimately vest. Refer to Note 12 . |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans Our Company sponsors and/or contributes to pension and postretirement health care and life insurance benefit plans covering substantially all U.S. employees. We also sponsor nonqualified, unfunded defined benefit pension plans for certain associates and participate in multi-employer pension plans in the United States. In addition, our Company and its subsidiaries have various pension plans and other forms of postretirement arrangements outside the United States. Refer to Note 13 . |
Income Taxes | Income Taxes Income tax expense includes U.S., state, local and international income taxes, plus a provision for U.S. taxes on undistributed earnings of foreign subsidiaries and other prescribed foreign entities not deemed to be indefinitely reinvested. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the financial reporting basis and the tax basis of existing assets and liabilities. The tax rate used to determine the deferred tax assets and liabilities is the enacted tax rate for the year and manner in which the differences are expected to reverse. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. The Company records taxes that are collected from customers and remitted to governmental authorities on a net basis in our consolidated statements of income. The Company is involved in various tax matters, with respect to some of which the outcome is uncertain. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that it becomes uncertain based upon one of the following conditions: (1) the tax position is not "more likely than not" to be sustained, (2) the tax position is "more likely than not" to be sustained, but for a lesser amount, or (3) the tax position is "more likely than not" to be sustained, but not in the financial period in which the tax position was originally taken. For purposes of evaluating whether or not a tax position is uncertain, (1) we presume the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information; (2) the technical merits of a tax position are derived from authorities such as legislation and statutes, legislative intent, regulations, rulings and case law and their applicability to the facts and circumstances of the tax position; and (3) each tax position is evaluated without consideration of the possibility of offset or aggregation with other tax positions taken. A number of years may elapse before a particular uncertain tax position is audited and finally resolved or when a tax assessment is raised. The number of years subject to tax assessments varies depending on the tax jurisdiction. The tax benefit that has been previously reserved because of a failure to meet the "more likely than not" recognition threshold would be recognized in 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 11 and Note 14 . |
Translation and Remeasurement | Translation and Remeasurement We translate the assets and liabilities of our foreign subsidiaries from their respective functional currencies to U.S. dollars at the appropriate spot rates as of the balance sheet date. Generally, our foreign subsidiaries use the local currency as their functional currency. Changes in the carrying value of these assets and liabilities attributable to fluctuations in spot rates are recognized in foreign currency translation adjustment, a component of AOCI. Refer to Note 15 . Income statement accounts are translated using the monthly average exchange rates during the year. Monetary assets and liabilities denominated in a currency that is different from a reporting entity's functional currency must first be remeasured from the applicable currency to the legal entity's functional currency. The effect of this remeasurement process is recognized in the line item other income (loss) — net in our consolidated statements of income and is partially offset by the impact of our economic hedging program for certain exposures on our consolidated balance sheets. Refer to Note 5 . |
Hyperinflationary Economies | Hyperinflationary Economies A hyperinflationary economy is one that has cumulative inflation of 100 percent or more over a three-year period. In accordance with U.S. GAAP, 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. In February 2015, the Venezuelan government introduced a new open market exchange rate system, SIMADI. As a result, we 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 consolidated statement of income. During the year ended December 31, 2016 , the Venezuelan government devalued its currency and changed its official and most preferential exchange rate, which should be used for purchases of certain essential goods, to 10 bolivars per U.S. dollar from 6.3 . The official and most preferential rate is now known as DIPRO and the former official rate has been eliminated. The Venezuelan government replaced the SIMADI rate with the DICOM rate, which is allowed to float freely and is expected to fluctuate based on supply and demand. As a result, management determined that the DICOM rate was the most appropriate legally available rate to remeasure the net monetary assets of our Venezuelan subsidiary. In addition, we sell concentrate to our bottling partner in Venezuela from outside the country. These sales are denominated in U.S. dollars. During the years ended December 31, 2016 and December 31, 2015 , as a result of the continued lack of liquidity and our revised assessment of the U.S. dollar value we expect to realize upon the conversion of Venezuelan bolivars into U.S. dollars by our bottling partner to pay our concentrate sales receivables, we recorded write-downs of $76 million and $56 million , respectively. These write-downs were recorded in the line item other operating charges in our consolidated statements of income. We also have certain U.S. dollar-denominated intangible assets associated with products sold in Venezuela. As a result of weaker sales, the volatility of foreign currency exchange rates resulting from continued instability and the Company's revised expectations regarding the convertibility of the local currency, we recognized impairment charges of $34 million and $55 million during the years ended December 31, 2017 and December 31, 2015 , respectively. These charges were recorded in the line item other operating charges in our consolidated statements of income. As a result of these impairment charges, the remaining carrying value of all U.S. dollar-denominated intangible assets associated with products sold in Venezuela is zero. Refer to Note 19 for the impact these items had on our operating segments. |
New Accounting Pronouncements, Policy [Policy Text Block] | 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 adoption either on a full retrospective basis to each prior reporting period presented or on a modified retrospective basis with the cumulative effect of initially applying the new guidance recognized at the date of initial application, which will be effective for the Company beginning January 1, 2018. The Company will adopt ASU 2014-09 and its amendments on a modified retrospective basis. We have closely assessed the new guidance, including the interpretations by the FASB Transition Resource Group for Revenue Recognition, throughout 2017. We have concluded that ASU 2014-09's broad definition of variable consideration will require the Company to estimate and record certain variable payments resulting from collaborative funding arrangements, rebates and other pricing allowances earlier than it currently does. While we do not expect this change to have a material impact on our net operating revenues on an annual basis, as revenue recognized from the sale of concentrate and finished goods occurs at a point in time when goods are transferred to the customer and the transfer of control is determined, we do expect that it will have an impact on our revenue in interim periods. The cumulative-effect adjustment upon adoption of the new revenue recognition standard as of January 1, 2018 is comprised primarily of the Company's estimated variable consideration and is expected to decrease the opening balance of retained earnings by less than $350 million , net of tax. As a result of electing certain of the practical expedients available under the ASU, the Company expects there will be some reclassifications to or from net operating revenues, cost of goods sold, and selling, general and administrative expenses, primarily related to the classification of shipping and handling costs. Additionally, the provisions of the new guidance provided clarification relating to the classification of certain costs incurred relating to revenue arrangements with customers. As a result, we will be classifying certain amounts in cost of goods sold or selling, general and administrative expenses that were previously classified as reductions in net operating revenues. The Company also evaluated the principal versus agent considerations as it relates to certain of its arrangements with third-party manufacturers and co-packers. We concluded that certain costs from these arrangements will be reflected in net operating revenues rather than in cost of goods sold. These changes will have no impact on the Company's consolidated operating income. The Company has also identified and implemented changes to our accounting policies and practices, business processes, systems and controls, as well as designed and implemented specific controls over our evaluation of the impact of the new guidance on the Company, including the cumulative effect calculation, disclosure requirements and the collection of relevant data into the reporting process. While we are substantially complete with the process of quantifying the impacts that will result from applying the new guidance, our assessment will be finalized during the first quarter of 2018. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes . The amendments in this update are intended to simplify the presentation of deferred income taxes and require that deferred tax liabilities and assets be classified as noncurrent in a consolidated statement of financial position. The standard was prospectively adopted by the Company on January 1, 2017. Had the Company retrospectively adopted the standard as of December 31, 2016, the line items prepaid expenses and other assets and accounts payable and accrued expenses in our consolidated balance sheet would have been reduced by $80 million and $692 million , respectively, as a result of reclassifying the current deferred tax assets and liabilities. The offsetting impact for the reclassifications as of December 31, 2016 would have increased the noncurrent line items other assets and deferred income taxes in our consolidated balance sheet by $54 million and $666 million , respectively. In January 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall: Recognition and Measurement of Financial Assets and Financial Liabilities , which addresses certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The amendment will be effective for the Company beginning January 1, 2018 and will require us to recognize any changes in the fair value of certain equity investments in net income. These changes are currently recognized in other comprehensive income ("OCI"). We have evaluated the impact of this standard and will recognize a cumulative effect adjustment to the opening balance of retained earnings as of January 1, 2018. We expect this cumulative effect adjustment to increase retained earnings by approximately $425 million . In February 2016, the FASB issued ASU 2016-02, Leases , which requires lessees to recognize right-of-use assets, representing their right to use the underlying asset for the lease term, and lease liabilities on the balance sheet for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases. The Company has initiated its plan for the adoption and implementation of this new accounting standard, including assessing our lease arrangements, evaluating practical expedient and accounting policy elections, and implementing software to meet the reporting requirements of this standard. The Company is also in the process of identifying changes to our business processes and controls to support adoption of the new standard. The standard requires the use of a modified retrospective transition approach, which includes a number of optional practical expedients that entities may elect to apply. ASU 2016-02 is effective for the Company beginning January 1, 2019. The Company anticipates the adoption of this new standard to result in a significant increase in lease-related assets and liabilities on our consolidated balance sheets. The impact on the Company's consolidated statements of income is being evaluated. As the impact of this standard is non-cash in nature, we do not anticipate its adoption having an impact on the Company's consolidated statement of cash flows. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting . The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The Company adopted ASU 2016-09 on January 1, 2017 by prospectively recognizing excess tax benefits and tax deficiencies in our consolidated statement of income as the awards vested or were settled. Effective January 1, 2017, the Company also prospectively presented excess tax benefits as an operating activity, rather than a financing activity, in our consolidated statement of cash flows. Had these changes been required to be adopted retrospectively, during the years ended December 31, 2016 and December 31, 2015 , the Company would have recognized an additional $130 million and $95 million , respectively, of excess tax benefits in our consolidated statements of income. Additionally, during the years ended December 31, 2016 and December 31, 2015 , the Company would have reduced our financing activities and increased our operating activities by $130 million and $95 million , respectively, in our consolidated statements of cash flows. The Company has elected, consistent with past practice, to estimate the number of awards that are expected to vest to determine the amount of stock-based compensation expense recognized in earnings. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Measurement of Credit Losses on Financial Instruments , which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for the Company beginning January 1, 2020 and we are currently evaluating the impact that it will have on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments , which addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for the Company beginning January 1, 2018 and will be applied using the retrospective transition approach to all periods presented. We expect that the only impact of the adoption of ASU 2016-15 on our consolidated statement of cash flows will be the change in presentation related to our proceeds from the settlement of corporate-owned life insurance policies. We currently reflect these proceeds in operating activities, however upon adoption of the new standard, we will reflect these proceeds in investing activities. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , which requires the Company to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for the Company beginning January 1, 2018 and will be applied using a modified retrospective basis. We currently expect the cumulative-effect adjustment will result in a net deferred tax asset of approximately $2.8 billion . This amount will primarily be recorded as a deferred tax asset in the line item other assets in our consolidated balance sheet. In November 2016, the FASB issued ASU 2016-18, Restricted Cash . The amendments in this update address diversity in practice that exists in the classification and presentation of changes in restricted cash and require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts that an entity defines as restricted cash for purposes of this standard or otherwise does not present in the line item cash and cash equivalents on its balance sheet. ASU 2016-18 is effective for the Company beginning January 1, 2018 and is required to be applied using a retrospective transition method to all periods presented. We expect that adoption of ASU 2016-18 will change how we report changes in cash within our insurance captives and assets held for sale in our consolidated statement of cash flows. In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business , which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is required to be applied prospectively and will be effective for the Company beginning January 1, 2018. The impact on our consolidated financial statements will depend on the facts and circumstances of any specific future transactions. In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires that the service cost component of the Company's net periodic pension cost and net periodic postretirement benefit cost be included in the same line item as other compensation costs arising from services rendered by employees, with the non-service cost components of net periodic benefit cost being classified outside of a subtotal of income from operations. Of the components of net periodic benefit cost, only the service cost component will be eligible for asset capitalization. ASU 2017-07 is effective for the Company beginning January 1, 2018 and is required to be applied retrospectively for all periods presented. We will elect to use the practical expedient which allows entities to use information previously disclosed in their pension and other postretirement benefit plans note as the estimation basis to apply the retrospective presentation requirements in this ASU. For the years ended December 31, 2017 and 2016 , we expect to reclassify $99 million and $31 million , respectively, related to our non-service cost components of net periodic benefit cost and other benefit plan charges from operating income to other income (loss) — net in our consolidated statements of income. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which eliminates the requirement to separately measure and report hedge ineffectiveness and requires companies to recognize all elements of hedge accounting that impact earnings in the same income statement line item where the hedged item resides. The amendments include new alternatives for measuring the hedged item for fair value hedges of interest rate risk and ease the requirements for effectiveness testing, hedge documentation and applying the critical terms match method. Finally, the standard introduces new alternatives that permit companies to reduce the risk of material error if the shortcut method is misapplied. ASU 2017-12 is effective for the Company beginning January 1, 2019 and is required to be applied prospectively. The Company is currently evaluating the impact that ASU 2017-12 will have on our consolidated financial statements. |
BUSINESS AND SUMMARY OF SIGNI31
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Activity in allowance for doubtful accounts | Activity in the allowance for doubtful accounts was as follows (in millions): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 466 $ 352 $ 331 Net charges to costs and expenses 1 32 126 45 Write-offs (10 ) (10 ) (10 ) Other 2 (11 ) (2 ) (14 ) Balance at end of year $ 477 $ 466 $ 352 1 The increases in 2016 were primarily related to concentrate sales receivables from our bottling partner in Venezuela. See Hyperinflationary Economies discussion below for additional information. 2 Other includes foreign currency translation adjustments and the impact of reclassifying certain assets to assets held for sale. Refer to Note 2. |
Income from continuing operations and discontinued operations attributable to noncontrolling interests [Table Text Block] | The following table presents information related to net income from continuing operations and net income from discontinued operations attributable to shareowners of The Coca-Cola Company (in millions): Year Ended December 31, 2017 2016 2015 CONTINUING OPERATIONS Net income from continuing operations $ 1,182 $ 6,550 $ 7,366 Less: Net income from continuing operations attributable to noncontrolling interests 1 23 15 Net income from continuing operations attributable to shareowners of The Coca-Cola Company $ 1,181 $ 6,527 $ 7,351 DISCONTINUED OPERATIONS Net income from discontinued operations $ 101 $ — $ — Less: Net income from discontinued operations attributable to noncontrolling interests 34 — — Net income from discontinued operations attributable to shareowners of $ 67 $ — $ — CONSOLIDATED Consolidated net income $ 1,283 $ 6,550 $ 7,366 Less: Net income attributable to noncontrolling interests 35 23 15 Net income attributable to shareowners of The Coca-Cola Company $ 1,248 $ 6,527 $ 7,351 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions and Divestitures Disclosure [ | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 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 |
Disclosure of Assets and Liabilities Held-for-sale [Table Text Block] | The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our consolidated balance sheets (in millions): December 31, 2017 December 31, 2016 Cash, cash equivalents and short-term investments $ 13 $ 49 Trade accounts receivable, less allowances 10 43 Inventories 11 264 Prepaid expenses and other assets 12 114 Equity method investments — 1 Other investments — 42 Other assets 7 17 Property, plant and equipment — net 85 1,780 Bottlers' franchise rights with indefinite lives 5 1,388 Goodwill 103 390 Other intangible assets 1 51 Allowance for reduction of assets held for sale (28 ) (1,342 ) Assets held for sale $ 219 1 $ 2,797 3 Accounts payable and accrued expenses $ 22 $ 393 Accrued income taxes — 13 Other liabilities 12 1 Deferred income taxes 3 303 Liabilities held for sale $ 37 2 $ 710 4 1 Consists of total assets relating to North America refranchising of $9 million and Latin America bottling operations of $210 million , which are included in the Bottling Investments operating segment. 2 Consists of total liabilities relating to North America refranchising of $5 million and Latin America bottling operations of $32 million , which are included in the Bottling Investments operating segment. 3 Consists of total assets relating to North America refranchising of $1,247 million , China bottling operations of $1,533 million and other assets held for sale of $17 million , which are included in the Bottling Investments and Corporate operating segments. 4 Consists of total liabilities relating to North America refranchising of $224 million , China bottling operations of $483 million and other liabilities held for sale of $3 million , which are included in the Bottling Investments and Corporate operating segments. |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table presents information related to the major classes of assets and liabilities of CCBA that were classified as held for sale — discontinued operations in our consolidated balance sheet (in millions): December 31, 2017 Cash, cash equivalents and short-term investments $ 97 Trade accounts receivable, less allowances 299 Inventories 299 Prepaid expenses and other assets 52 Equity method investments 7 Other assets 29 Property, plant and equipment — net 1,436 Goodwill 4,248 Other intangible assets 862 Assets held for sale — discontinued operations $ 7,329 Accounts payable and accrued expenses $ 598 Loans and notes payable 404 Current maturities of long-term debt 6 Accrued income taxes 40 Long-term debt 19 Other liabilities 10 Deferred income taxes 419 Liabilities held for sale — discontinued operations $ 1,496 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments Disclosure [Abstract] | |
Schedule of trading securities | The Company's trading securities were included in the following line items in our consolidated balance sheets (in millions): December 31, 2017 2016 Marketable securities $ 295 $ 282 Other assets 112 102 Total $ 407 $ 384 |
Certain Debt and Marketable Equity Securities, Available-for-Sale And Held-To-Maturity Securities, Value and Maturities | As of December 31, 2017 and 2016 , the Company did not have any held-to-maturity securities. Available-for-sale securities consisted of the following (in millions): Gross Unrealized Estimated Fair Value Cost Gains Losses 2017 Available-for-sale securities: 1 Equity securities $ 1,276 $ 685 $ (66 ) $ 1,895 Debt securities 5,782 157 (27 ) 5,912 Total $ 7,058 $ 842 $ (93 ) $ 7,807 2016 Available-for-sale securities: 1 Equity securities $ 1,252 $ 425 $ (22 ) $ 1,655 Debt securities 4,700 89 (31 ) 4,758 Total $ 5,952 $ 514 $ (53 ) $ 6,413 1 Refer to Note 16 for additional information related to the estimated fair value. |
Schedule of Realized Gain (Loss) [Table Text Block] | The sale and/or maturity of available-for-sale securities resulted in the following realized activity (in millions): Year Ended December 31, 2017 2016 2015 Gross gains $ 68 $ 152 $ 103 Gross losses (32 ) (51 ) (42 ) Proceeds 14,205 11,540 4,043 |
Investments By Balance Sheet Grouping | The Company's available-for-sale securities were included in the following line items in our consolidated balance sheets (in millions): December 31, 2017 2016 Cash and cash equivalents $ 667 $ 682 Marketable securities 5,022 3,769 Other investments 953 849 Other assets 1,165 1,113 Total $ 7,807 $ 6,413 |
Contractual maturity amounts of the investment securities | The contractual maturities of these available-for-sale securities as of December 31, 2017 were as follows (in millions): Cost Estimated Fair Value Within 1 year $ 1,433 $ 1,491 After 1 year through 5 years 3,929 3,983 After 5 years through 10 years 103 117 After 10 years 317 321 Equity securities 1,276 1,895 Total $ 7,058 $ 7,807 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories [Abstract] | |
Inventories [Table Text Block] | Inventories consisted of the following (in millions): December 31, 2017 2016 Raw materials and packaging $ 1,729 $ 1,565 Finished goods 693 844 Other 233 266 Total inventories $ 2,655 $ 2,675 |
HEDGING TRANSACTIONS AND DERI35
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Hedging Transactions and Derivative Financial Instruments Disclosures [Abstract] | |
Derivative instruments, fair value, designated as hedging instruments | The following table presents the fair values of the Company's derivative instruments that were designated and qualified as part of a hedging relationship (in millions): Fair Value 1,2 Derivatives Designated as Hedging Instruments Balance Sheet Location 1 December 31, December 31, Assets: Foreign currency contracts Prepaid expenses and other assets $ 45 $ 400 Foreign currency contracts Other assets 79 60 Interest rate contracts Other assets 52 105 Total assets $ 176 $ 565 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 69 $ 40 Foreign currency contracts Other liabilities 9 54 Foreign currency contracts Liabilities held for sale — discontinued operations 8 — Commodity contracts Accounts payable and accrued expenses — 1 Commodity contracts Liabilities held for sale — discontinued operations 4 — Interest rate contracts Accounts payable and accrued expenses 30 36 Interest rate contracts Other liabilities 39 47 Total liabilities $ 159 $ 178 1 All of the Company's derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 16 for the net presentation of the Company's derivative instruments. 2 Refer to Note 16 for additional information related to the estimated fair value. |
Derivative instruments, fair value, not designated as hedging instruments | The following table presents the fair values of the Company's derivative instruments that were not designated as hedging instruments (in millions): Fair Value 1,2 Derivatives Not Designated as Hedging Instruments Balance Sheet Location 1 December 31, December 31, Assets: Foreign currency contracts Prepaid expenses and other assets $ 20 $ 284 Foreign currency contracts Other assets 27 — Commodity contracts Prepaid expenses and other assets 25 27 Commodity contracts Other assets 1 1 Other derivative instruments Prepaid expenses and other assets 8 4 Other derivative instruments Other assets — 1 Total assets $ 81 $ 317 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 69 $ 60 Foreign currency contracts Other liabilities 28 16 Commodity contracts Accounts payable and accrued expenses 7 16 Commodity contracts Other liabilities — 1 Interest rate contracts Accounts payable and accrued expenses — 8 Interest rate contracts Other liabilities — 1 Other derivative instruments Accounts payable and accrued expenses 1 2 Other derivative instruments Other liabilities 1 5 Total liabilities $ 106 $ 109 1 All of the Company's derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 16 for the net presentation of the Company's derivative instruments. 2 Refer to Note 16 for additional information related to the estimated fair value. |
Derivative instruments, pretax impact that changes in the fair value of the derivatives designated as hedges had on AOCI and earnings | The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on AOCI and earnings during the years ended December 31, 2017 , 2016 and 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) 2017 Foreign currency contracts $ (226 ) Net operating revenues $ 443 $ 1 Foreign currency contracts (23 ) Cost of goods sold (2 ) — 2 Foreign currency contracts — Interest expense (9 ) — Foreign currency contracts 92 Other income (loss) — net 107 3 Foreign currency contracts (3 ) Income from discontinued operations — — Interest rate contracts (22 ) Interest expense (37 ) 2 Commodity contracts (1 ) Cost of goods sold (1 ) — Commodity contracts (5 ) Income from discontinued operations — — Total $ (188 ) $ 501 $ 6 2016 Foreign currency contracts $ 69 Net operating revenues $ 567 $ (3 ) Foreign currency contracts 8 Cost of goods sold 35 (1 ) Foreign currency contracts — Interest expense (9 ) — Foreign currency contracts 13 Other income (loss) — net (3 ) (3 ) Interest rate contracts (126 ) Interest expense (17 ) (2 ) Commodity contracts (1 ) Cost of goods sold (1 ) — Total $ (37 ) $ 572 $ (9 ) 2015 Foreign currency contracts $ 949 Net operating revenues $ 618 $ 12 Foreign currency contracts 60 Cost of goods sold 62 — 2 Foreign currency contracts 18 Interest expense (9 ) — Foreign currency contracts (38 ) Other income (loss) — net (40 ) — Interest rate contracts (153 ) Interest expense (3 ) 1 Commodity contracts (1 ) Cost of goods sold (3 ) — Total $ 835 $ 625 $ 13 1 The Company records gains and losses reclassified from AOCI into income for the effective portion and ineffective portion, if any, to the same line items in our consolidated statements of income. 2 Includes a de minimis amount of ineffectiveness in the hedging relationship. |
Derivative instruments, fair value hedges, gain (loss) recognized in income | The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings during the years ended December 31, 2017 , 2016 and 2015 (in millions): Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income 1 2017 Interest rate contracts Interest expense $ (69 ) Fixed-rate debt Interest expense 63 Net impact to interest expense $ (6 ) Foreign currency contracts Other income (loss) — net $ (37 ) Available-for-sale securities Other income (loss) — net 44 Net impact to other income (loss) — net $ 7 Net impact of fair value hedging instruments $ 1 2016 Interest rate contracts Interest expense $ 170 Fixed-rate debt Interest expense (152 ) Net impact to interest expense $ 18 Foreign currency contracts Other income (loss) — net $ 69 Available-for-sale securities Other income (loss) — net (73 ) Net impact to other income (loss) — net $ (4 ) Net impact of fair value hedging instruments $ 14 2015 Interest rate contracts Interest expense $ (172 ) Fixed-rate debt Interest expense 169 Net impact to interest expense $ (3 ) Foreign currency contracts Other income (loss) — net $ 110 Available-for-sale securities Other income (loss) — net (131 ) Net impact to other income (loss) — net $ (21 ) Net impact of fair value hedging instruments $ (24 ) 1 The net impacts represent the ineffective portions of the hedge relationships and the amounts excluded from the assessment of hedge effectiveness. |
Derivative instruments,fair value of net investment hedges, gain (loss) recognized in AOCI | 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 December 31, Year Ended December 31, 2017 2016 2017 2016 2015 Foreign currency contracts $ — $ 100 $ (7 ) $ (237 ) $ 661 Foreign currency denominated debt 13,147 11,113 (1,505 ) 304 (24 ) Total $ 13,147 $ 11,213 $ (1,512 ) $ 67 $ 637 |
Derivative instruments, not designated as hedging instruments, gain (loss) in earnings | The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings during the years ended December 31, 2017 , 2016 and 2015 (in millions): Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Year Ended December 31, 2017 2016 2015 Foreign currency contracts Net operating revenues $ (30 ) $ (45 ) $ 41 Foreign currency contracts Cost of goods sold (1 ) 4 3 Foreign currency contracts Other income (loss) — net 73 (168 ) (92 ) Commodity contracts Net operating revenues 16 10 (16 ) Commodity contracts Cost of goods sold 15 75 (209 ) Commodity contracts Selling, general and administrative expenses 1 6 (25 ) Interest rate contracts Interest expense — (39 ) — Other derivative instruments Selling, general and administrative expenses 46 16 1 Other derivative instruments Other income (loss) — net 1 (15 ) (37 ) Total $ 121 $ (156 ) $ (334 ) |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY METHOD INVESTMENTS [Abstract] | |
Summary of financial information for equity method investees | A summary of financial information for our equity method investees in the aggregate is as follows (in millions): Year Ended December 31, 1 2017 2016 2015 Net operating revenues $ 73,339 $ 58,054 $ 47,498 Cost of goods sold 42,867 34,338 28,749 Gross profit $ 30,472 $ 23,716 $ 18,749 Operating income $ 7,577 $ 5,652 $ 4,483 Consolidated net income $ 4,545 $ 2,967 $ 2,299 Less: Net income attributable to noncontrolling interests 120 78 65 Net income attributable to common shareowners $ 4,425 $ 2,889 $ 2,234 Equity income (loss) — net $ 1,071 $ 835 $ 489 1 The financial information represents the results of the equity method investees during the Company's period of ownership. December 31, 2017 2016 Current assets $ 25,023 $ 19,586 Noncurrent assets 66,578 58,529 Total assets $ 91,601 $ 78,115 Current liabilities $ 17,890 $ 16,125 Noncurrent liabilities 29,986 25,610 Total liabilities $ 47,876 $ 41,735 Equity attributable to shareowners of investees $ 41,773 $ 35,204 Equity attributable to noncontrolling interests 1,952 1,176 Total equity $ 43,725 $ 36,380 Company equity investment $ 20,856 $ 16,260 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant and Equipament [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The following table summarizes our property, plant and equipment (in millions): December 31, 2017 2016 Land $ 334 $ 589 Buildings and improvements 3,917 4,574 Machinery, equipment and vehicle fleet 12,198 16,093 16,449 21,256 Less accumulated depreciation 8,246 10,621 Property, plant and equipment — net $ 8,203 $ 10,635 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INTANGIBLE ASSETS [Abstract] | |
Indefinite-lived intangible assets | The following table summarizes information related to indefinite-lived intangible assets (in millions): December 31, 2017 2016 Trademarks 1 $ 6,729 $ 6,097 Bottlers' franchise rights 2 138 3,676 Goodwill 9,401 10,629 Other 106 128 Indefinite-lived intangible assets $ 16,374 $ 20,530 1 The increase in 2017 was primarily due to the acquisitions of AdeS and the U.S. rights to Topo Chico. Refer to Note 2 . 2 The decrease in 2017 was primarily the result of additional North America bottling territories being refranchised. Refer to Note 2 . |
Carrying value of goodwill by operating segment | The following table provides information related to the carrying value of our goodwill by operating segment (in millions): Europe, Middle East & Africa Latin America North America Asia Pacific Bottling Investments Total 2016 Balance at beginning of year $ 638 $ 123 $ 8,311 $ 133 $ 2,084 $ 11,289 Effect of foreign currency translation (10 ) (6 ) — (11 ) (6 ) (33 ) Acquisitions 1 — — — 6 — 6 Adjustments related to the finalization of purchase accounting 1 — — 10 — — 10 Impairment — — — — (10 ) (10 ) Divestitures, deconsolidations and other 1 — — — — (633 ) (633 ) Balance at end of year $ 628 $ 117 $ 8,321 $ 128 $ 1,435 $ 10,629 2017 Balance at beginning of year $ 628 $ 117 $ 8,321 $ 128 $ 1,435 $ 10,629 Effect of foreign currency translation 75 8 — (1 ) 5 87 Acquisitions 1 — 25 28 — 3 56 Adjustments related to the finalization of purchase accounting 1 — — — 18 — 18 Impairment — — — — (390 ) (390 ) Divestitures, deconsolidations and other 1,2 — — — — (999 ) (999 ) Balance at end of year $ 703 $ 150 $ 8,349 $ 145 $ 54 $ 9,401 1 Refer to Note 2 for information related to the Company's acquisitions and divestitures. 2 The 2017 decrease in the Bottling Investments segment was primarily a result of additional North America bottling territories being refranchised. Refer to Note 2 . |
Definite-lived intangible assets | The following table summarizes information related to definite-lived intangible assets (in millions): December 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships 1 $ 205 $ (143 ) $ 62 $ 392 $ (185 ) $ 207 Bottlers' franchise rights 1 213 (152 ) 61 487 (381 ) 106 Trademarks 182 (73 ) 109 228 (64 ) 164 Other 94 (64 ) 30 179 (58 ) 121 Total $ 694 $ (432 ) $ 262 $ 1,286 $ (688 ) $ 598 1 The decrease in 2017 was primarily due to the derecognition of intangible assets as a result of the North America refranchising. Refer to Note 2 . |
Estimated amortization expense for the next five years | Based on the carrying value of definite-lived intangible assets as of December 31, 2017 , we estimate our amortization expense for the next five years will be as follows (in millions): Amortization Expense 2018 $ 57 2019 44 2020 38 2021 28 2022 28 |
ACCOUNTS PAYABLE AND ACCRUED 39
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES Disclosure [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses [Table Text Block] | Accounts payable and accrued expenses consisted of the following (in millions): December 31, 2017 2016 Accrued marketing $ 2,108 $ 2,186 Trade accounts payable 2,288 2,682 Other accrued expenses 3,071 2,593 Accrued compensation 854 857 Deferred tax liabilities — 1 692 Sales, payroll and other taxes 347 372 Container deposits 80 108 Accounts payable and accrued expenses $ 8,748 $ 9,490 1 As a result of our adoption of ASU 2015-17, all deferred tax liabilities are now recorded in noncurrent liabilities. Refer to Note 1. |
DEBT AND BORROWING ARRANGEMEN40
DEBT AND BORROWING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt and Borrowing Arrangements Disclosure [Abstract] | |
Components of long-term debt | The Company's long-term debt consisted of the following (in millions, except average rate data): December 31, 2017 December 31, 2016 Amount Average Rate 1 Amount Average Rate 1 U.S. dollar notes due 2018–2093 $ 16,854 2.3 % $ 16,922 2.0 % U.S. dollar debentures due 2018–2098 1,559 5.5 2,111 4.1 U.S. dollar zero coupon notes due 2020 2 158 8.4 153 8.4 Australian dollar notes due 2020–2024 760 2.1 741 1.2 Euro notes due 2019–2036 13,663 0.7 11,567 0.7 Swiss franc notes due 2022–2028 1,148 3.0 1,304 2.5 Other, due through 2098 3 325 3.4 316 3.5 Fair value adjustment 4 13 N/A 97 N/A Total 5,6 34,480 1.8 % 33,211 1.7 % Less current portion 3,298 3,527 Long-term debt $ 31,182 $ 29,684 1 These rates represent the weighted-average effective interest rate on the balances outstanding as of year end, as adjusted for the effects of interest rate swap agreements, cross-currency swap agreements and fair value adjustments, if applicable. Refer to Note 5 for a more detailed discussion on interest rate management. 2 This amount is shown net of unamortized discounts of $ 13 million and $ 18 million as of December 31, 2017 and 2016 , respectively. 3 As of December 31, 2017 , the amount shown includes $ 165 million of debt instruments that are due through 2031 . 4 Amount represents changes in fair value due to changes in benchmark interest rates. Refer to Note 5 for additional information about our fair value hedging strategy. 5 As of December 31, 2017 and 2016 , the fair value of our long-term debt, including the current portion, was $ 35,169 million and $ 33,752 million , respectively. The fair value of our long-term debt is estimated based on quoted prices for those or similar instruments. 6 The above notes and debentures include various restrictions, none of which is presently significant to our Company. |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt for the five years succeeding December 31, 2017 , are as follows (in millions): Maturities of Long-Term Debt 2018 $ 3,298 2019 5,209 2020 4,298 2021 2,930 2022 2,480 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease payments under noncancelable operating leases | The following table summarizes our minimum lease payments under noncancelable operating leases with initial or remaining lease terms in excess of one year as of December 31, 2017 (in millions): Year Ended December 31, Operating Lease Payments 2018 $ 130 2019 85 2020 69 2021 59 2022 52 Thereafter 147 Total minimum operating lease payments 1 $ 542 1 Income associated with sublease arrangements is not significant. |
STOCK COMPENSATION PLANS (Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
STOCK COMPENSATION PLANS [Abstract] | |
Weighted-average fair value of options granted and the weighted-average assumptions used in the Black Scholes Merton option pricing model for such grants | The weighted-average fair value of stock options granted during the past three years and the weighted-average assumptions used in the Black-Scholes-Merton option-pricing model for such grants were as follows: 2017 2016 2015 Fair value of stock options at grant date $ 3.98 $ 4.17 $ 4.38 Dividend yield 1 3.6 % 3.2 % 3.1 % Expected volatility 2 15.5 % 16.0 % 16.0 % Risk-free interest rate 3 2.2 % 1.5 % 1.8 % Expected term of the stock options 4 6 years 6 years 6 years 1 The dividend yield is the calculated yield on the Company's stock at the time of the grant. 2 Expected volatility is based on implied volatilities from traded options on the Company's stock, historical volatility of the Company's stock and other factors. 3 The risk-free interest rate for the period matching the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. 4 The expected term of the stock options represents the period of time that options granted are expected to be outstanding and is derived by analyzing historical exercise behavior. |
Stock option activity for all plans | Stock option activity for all plans for the year ended December 31, 2017 , was as follows: Shares (In millions) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (In millions) Outstanding on January 1, 2017 220 $ 33.70 Granted 9 40.89 Exercised (53 ) 30.28 Forfeited/expired (3 ) 38.34 Outstanding on December 31, 2017 1 173 $ 35.02 4.84 years $ 1,879 Expected to vest 171 $ 34.96 4.81 years $ 1,869 Exercisable on December 31, 2017 142 $ 33.89 4.27 years $ 1,700 1 Includes 0.3 million stock option replacement awards in connection with our acquisition of Old CCE's North America business in 2010. These options had a weighted-average exercise price of $ 12.86 and generally vest over 3 years and expire 10 years from the original date of grant. |
Summary of information about performance share units based on the Target Award amounts in the performance share unit agreements | The following table summarizes information about performance share units based on the target award amounts in the performance share unit agreements: Performance Share Units (In thousands) Weighted-Average Grant Date Fair Value Outstanding on January 1, 2017 9,773 $ 35.77 Granted 4,133 34.75 Conversions to restricted stock units 1 (4,851 ) 32.35 Paid in cash equivalent (11 ) 34.15 Canceled/forfeited (832 ) 37.20 Outstanding on December 31, 2017 2 8,212 $ 37.14 1 Represents the target amount of performance share units converted to restricted stock units for the 2014–2016 performance period. The vesting of restricted stock units is subject to the terms of the performance share unit agreements. 2 The outstanding performance share units as of December 31, 2017 , at the threshold award and maximum award levels were 2.2 million and 15.4 million , respectively. |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes information about nonvested performance-based restricted stock units based on the performance share units' certified award level: Restricted Weighted- Nonvested on January 1, 2017 — $ — Conversions from performance share units 7,181 32.33 Vested and released (3 ) 32.35 Canceled/forfeited (430 ) 32.30 Nonvested on December 31, 2017 6,748 $ 32.35 |
Nonvested Restricted Stock Shares Activity [Table Text Block] | The following table summarizes information about nonvested time-based restricted stock awards: Restricted Stock and Stock Units (In thousands) Weighted-Average Outstanding on January 1, 2017 770 $ 37.54 Granted 2,994 41.62 Vested and released (179 ) 37.36 Forfeited/expired (50 ) 38.35 Outstanding on December 31, 2017 3,535 $ 40.99 |
PENSION AND OTHER POSTRETIREM43
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Pension and Other Postretirement Benefit Plans [Abstract] | |
Changes in benefit obligations and the fair value of plan assets for our benefit plans | The following table sets forth the changes in benefit obligations and the fair value of plan assets for our benefit plans (in millions): Pension Benefits Other Benefits Year Ended December 31, 2017 2016 2017 2016 Benefit obligation at beginning of year 1 $ 9,428 $ 9,159 $ 962 $ 940 Service cost 197 239 17 22 Interest cost 306 319 29 31 Foreign currency exchange rate changes 150 (38 ) 4 (2 ) Amendments 1 17 (21 ) (4 ) Actuarial loss (gain) 420 441 (28 ) 20 Benefits paid 2 (341 ) (346 ) (71 ) (64 ) Divestitures 3 (7 ) (16 ) (66 ) (2 ) Settlements 4 (832 ) (384 ) — — Curtailments 4 (10 ) — (48 ) (17 ) Special termination benefits 4 106 37 — 2 Other 37 — 4 36 Benefit obligation at end of year 1 $ 9,455 $ 9,428 $ 782 $ 962 Fair value of plan assets at beginning of year $ 8,371 $ 7,689 $ 255 $ 245 Actual return on plan assets 1,139 690 31 8 Employer contributions 181 718 — — Foreign currency exchange rate changes 196 (70 ) — — Benefits paid (285 ) (270 ) (3 ) (3 ) Divestitures 3 — (16 ) — — Settlements 4 (794 ) (374 ) — — Other 35 4 5 5 Fair value of plan assets at end of year $ 8,843 $ 8,371 $ 288 $ 255 Net liability recognized $ (612 ) $ (1,057 ) $ (494 ) $ (707 ) 1 For pension benefit plans, the benefit obligation is the projected benefit obligation. For other benefit plans, the benefit obligation is the accumulated postretirement benefit obligation. The accumulated benefit obligation for our pension plans was $9,175 million and $9,141 million as of December 31, 2017 and 2016 , respectively. 2 Benefits paid to pension plan participants during 2017 and 2016 included $56 million and $76 million , respectively, in payments related to unfunded pension plans that were paid from Company assets. Benefits paid to participants of other benefit plans during 2017 and 2016 included $68 million and $61 million , respectively, that were paid from Company assets. 3 Divestitures were primarily related to the deconsolidation of the Company's German bottling operations in May 2016 and the Company's North America refranchising in 2017. Refer to Note 2. 4 Settlements, curtailments and special termination benefits were primarily related to the Company's North America refranchising and productivity, restructuring and integration initiatives. Refer to Note 2 and Note 18. |
Pension and other benefit amounts recognized in consolidated balance sheets | Pension and other benefit amounts recognized in our consolidated balance sheets are as follows (in millions): Pension Benefits Other Benefits December 31, 2017 2016 2017 2016 Noncurrent asset $ 921 $ 572 $ — $ — Current liability (72 ) (71 ) (21 ) (23 ) Long-term liability (1,461 ) (1,558 ) (473 ) (684 ) Net liability recognized $ (612 ) $ (1,057 ) $ (494 ) $ (707 ) |
Schedule of pension plans with projected benefit obligation in excess of fair value of plan assets | Certain of our pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligations and the fair value of plan assets were as follows (in millions): December 31, 2017 2016 Projected benefit obligation $ 7,833 $ 7,907 Fair value of plan assets 6,330 6,303 |
Accumulated benefit obligations in excess of fair value of plan assets | Certain of our pension plans have accumulated benefit obligations in excess of the fair value of plan assets. For these plans, the accumulated benefit obligations and the fair value of plan assets were as follows (in millions): December 31, 2017 2016 Accumulated benefit obligation $ 7,614 $ 7,668 Fair value of plan assets 6,305 6,257 |
Total pension assets for U.S. and non-U.S. plans | The following table presents total assets for our U.S. and non-U.S. pension plans (in millions): U.S. Plans Non-U.S. Plans December 31, 2017 2016 2017 2016 Cash and cash equivalents $ 454 $ 229 $ 237 $ 173 Equity securities: U.S.-based companies 1,427 1,208 670 619 International-based companies 911 451 554 488 Fixed-income securities: Government bonds 183 395 191 131 Corporate bonds and debt securities 785 854 42 142 Mutual, pooled and commingled funds 1 215 693 766 440 Hedge funds/limited partnerships 939 1,172 44 41 Real estate 596 521 2 2 Other 518 538 309 274 Total pension plan assets 2 $ 6,028 $ 6,061 $ 2,815 $ 2,310 1 Mutual, pooled and commingled funds include investments in equity securities, fixed-income securities and combinations of both. There are a significant number of mutual, pooled and commingled funds from which investors can choose. The selection of the type of fund is dictated by the specific investment objectives and needs of a given plan. These objectives and needs vary greatly between plans. 2 Fair value disclosures related to our pension assets are included in Note 16 . Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall; a reconciliation of the beginning and ending balances of Level 3 assets; and information about the valuation techniques and inputs used to measure the fair value of our pension assets. |
Other postretirement benefit plan assets | The following table presents total assets for our other postretirement benefit plans (in millions): December 31, 2017 2016 Cash and cash equivalents $ 78 $ 2 Equity securities: U.S.-based companies 96 116 International-based companies 8 8 Fixed-income securities: Government bonds 2 3 Corporate bonds and debt securities 7 6 Mutual, pooled and commingled funds 80 103 Hedge funds/limited partnerships 8 9 Real estate 5 4 Other 4 4 Total other postretirement benefit plan assets 1 $ 288 $ 255 1 Fair value disclosures related to our other postretirement benefit plan assets are included in Note 16 . Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall and information about the valuation techniques and inputs used to measure the fair value of our other postretirement benefit plan assets. |
Net periodic benefit cost for pension and other postretirement benefit plans | Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following (in millions): Pension Benefits Other Benefits Year Ended December 31, 2017 2016 2015 2017 2016 2015 Service cost $ 197 $ 239 $ 265 $ 17 $ 22 $ 27 Interest cost 306 319 379 29 31 37 Expected return on plan assets 1 (650 ) (653 ) (705 ) (12 ) (11 ) (11 ) Amortization of prior service credit — (2 ) (2 ) (18 ) (19 ) (19 ) Amortization of actuarial loss 2 175 183 199 8 7 10 Net periodic benefit cost 28 86 136 24 30 44 Settlement charges 3 228 118 149 — — — Curtailment charge (credit) 3 4 — — (79 ) — — Special termination benefits 3 106 37 20 — 1 2 Other 2 (3 ) — — 23 — Total cost (income) recognized in consolidated statements of income $ 368 $ 238 $ 305 $ (55 ) $ 54 $ 46 1 The Company has elected to use the actual fair value of plan assets as the market-related value of assets in the determination of the expected return on plan assets. 2 Actuarial gains and losses are amortized using a corridor approach. The gain/loss corridor is equal to 10 percent of the greater of the benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the average future working lifetime of the plan participants. 3 The settlement charges, curtailment charge (credit) and special termination benefits were primarily related to the Company's North America refranchising and productivity, restructuring and integration initiatives. Refer to Note 2 and Note 18 . |
Changes in AOCI for benefit plans | The following table sets forth the changes in AOCI for our benefit plans (in millions, pretax): Pension Benefits Other Benefits Year Ended December 31, 2017 2016 2017 2016 Balance in AOCI at beginning of year $ (2,932 ) $ (2,907 ) $ (48 ) $ (26 ) Recognized prior service cost (credit) 4 (2 ) (54 ) 4 (28 ) 5 Recognized net actuarial loss (gain) 403 2 301 3 (36 ) 4 7 Prior service credit (cost) arising in current year (1 ) (17 ) 21 4 Net actuarial (loss) gain arising in current year 75 (404 ) 92 4 (6 ) 5 Impact of divestitures 1 — 64 — — Foreign currency translation gain (loss) (42 ) 33 (1 ) 1 Balance in AOCI at end of year $ (2,493 ) $ (2,932 ) $ (26 ) $ (48 ) 1 Related to the deconsolidation of our German bottling operations. Refer to Note 2 . 2 |
Amounts in AOCI for benefit plans (pretax) | The following table sets forth amounts in AOCI for our benefit plans (in millions, pretax): Pension Benefits Other Benefits December 31, 2017 2016 2017 2016 Prior service credit (cost) $ (10 ) $ (14 ) $ 36 $ 69 Net actuarial loss (2,483 ) (2,918 ) (62 ) (117 ) Balance in AOCI at end of year $ (2,493 ) $ (2,932 ) $ (26 ) $ (48 ) |
Amounts in AOCI expected to be recognized as components of net periodic pension cost in next fiscal year | Amounts in AOCI expected to be recognized as components of net periodic benefit cost in 2018 are as follows (in millions, pretax): Pension Benefits Other Benefits Amortization of prior service cost (credit) $ (3 ) $ (14 ) Amortization of actuarial loss 147 4 Total $ 144 $ (10 ) |
Certain weighted average assumptions used in computing the benefit obligations and net periodic benefit cost | Certain weighted-average assumptions used in computing the benefit obligations are as follows: Pension Benefits Other Benefits December 31, 2017 2016 2017 2016 Discount rate 3.50 % 4.00 % 3.50 % 4.00 % Rate of increase in compensation levels 3.50 % 3.75 % N/A N/A Certain weighted-average assumptions used in computing net periodic benefit cost are as follows: Pension Benefits Other Benefits Year Ended December 31, 2017 2016 2015 2017 2016 2015 Discount rate 4.00 % 4.25 % 3.75 % 4.00 % 4.25 % 3.75 % Rate of increase in compensation levels 3.75 % 3.50 % 3.50 % N/A N/A N/A Expected long-term rate of return on plan assets 8.00 % 8.25 % 8.25 % 4.75 % 4.75 % 4.75 % |
Assumed health care cost trend rates | The assumed health care cost trend rates are as follows: December 31, 2017 2016 Health care cost trend rate assumed for next year 7.00 % 7.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2022 2021 |
Estimated future benefit payments for funded and unfunded plans | Our estimated future benefit payments for funded and unfunded plans are as follows (in millions): Year Ended December 31, 2018 2019 2020 2021 2022 2023–2027 Pension benefit payments $ 713 $ 461 $ 482 $ 489 $ 500 $ 2,642 Other benefit payments 1 64 62 61 59 57 258 Total estimated benefit payments $ 777 $ 523 $ 543 $ 548 $ 557 $ 2,900 1 The expected benefit payments for our other postretirement benefit plans are net of estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Federal subsidies are estimated to be $4 million for the period 2018–2022, and $3 million for the period 2023–2027. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of income before income taxes | Income from continuing operations before income taxes consisted of the following (in millions): Year Ended December 31, 2017 2016 2015 United States $ (690 ) 1 $ 113 1 $ 1,801 1 International 7,432 8,023 7,804 Total $ 6,742 $ 8,136 $ 9,605 1 Includes charges of $2,140 million , $2,456 million and $1,006 million related to refranchising certain bottling territories in North America in 2017, 2016 and 2015, respectively. Refer to Note 2. |
Schedule of income tax expense (benefit) | Income taxes from continuing operations consisted of the following for the years ended December 31, 2017 , 2016 and 2015 (in millions): United States State and Local International Total 2017 Current $ 5,438 1 $ 121 $ 1,257 $ 6,816 Deferred (1,783 ) 1,2 14 513 1 (1,256 ) 2016 Current $ 1,147 $ 113 $ 1,182 $ 2,442 Deferred (838 ) 2 (91 ) 73 (856 ) 2015 Current $ 711 $ 69 $ 1,386 $ 2,166 Deferred 120 45 (92 ) 73 1 Includes our reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax resulting from the Tax Cuts and Jobs Act ("Tax Reform Act") that was signed into law on December 22, 2017 . The provisional amount related to the one-time transition tax on the mandatory deemed repatriation of prescribed foreign earnings was $4.6 billion of tax expense based on cumulative prescribed foreign earnings estimated to be $42 billion . The provisional amount that was primarily related to the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future was a net deferred tax benefit of $1.0 billion . 2 Includes the benefit from charges related to refranchising certain bottling territories in North America. Refer to Note 2. |
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | A reconciliation of the statutory U.S. federal tax rate and our effective tax rate is as follows: Year Ended December 31, 2017 2016 2015 Statutory U.S. federal tax rate 35.0 % 35.0 % 35.0 % State and local income taxes — net of federal benefit 1.2 1.2 1.2 Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (9.7 ) (17.5 ) 5 (12.7 ) Equity income or loss (3.4 ) (3.0 ) (1.7 ) Tax Reform Act 53.5 1 — — Other — net 5.9 2,3,4 3.8 6 1.5 Effective tax rate 82.5 % 19.5 % 23.3 % 1 Includes net tax expense of $3,610 million primarily related to our reasonable estimate of the one-time transition tax resulting from the Tax Reform Act that was signed into law on December 22, 2017, partially offset by the impact of the lower rate introduced by the Tax Reform Act on our existing deferred tax balances. 2 Includes excess tax benefits of $132 million (or a 2 percent impact on our effective tax rate) recognized as awards issued under the Company's share-based compensation arrangements vested or were settled. 3 Includes net tax expense of $1,048 million on a pretax gain of $1,037 million (or a 10.2 percent impact on our effective tax rate) related to the Southwest Transaction, in conjunction with which we obtained an equity interest in AC Bebidas. The Company accounts for its interest in AC Bebidas as an equity method investment and the net tax expense was primarily the result of the deferred tax recorded on the basis difference in this investment. Refer to Note 2. 4 Includes a $156 million net tax benefit related to the impact of manufacturing incentives and permanent book to tax adjustments. 5 Includes tax expense of $97 million related to a pretax gain of $1,323 million (or a 4.5 percent impact on our effective tax rate) related to the deconsolidation of our German bottling operations. Refer to Note 2. 6 Includes tax expense of $157 million (or a 1.9 percent impact on our effective tax rate) primarily related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in certain domestic jurisdictions. |
Reconciliation of changes in the gross amount of unrecognized tax benefit | A reconciliation of the changes in the gross amount of unrecognized tax benefits is as follows (in millions): Year Ended December 31, 2017 2016 2015 Beginning balance of unrecognized tax benefits $ 302 $ 168 $ 211 Increase related to prior period tax positions 18 163 1 4 Decrease related to prior period tax positions (13 ) — (9 ) Increase related to current period tax positions 13 17 5 Decrease related to settlements with taxing authorities — (40 ) 1 (5 ) Decrease due to lapse of the applicable statute of limitations — — (23 ) Increase (decrease) due to effect of foreign currency exchange rate changes 11 (6 ) (15 ) Ending balance of unrecognized tax benefits $ 331 $ 302 $ 168 1 The increase is primarily related to a change in judgment about one of the Company's tax positions as a result of receiving notification of a preliminary settlement of a Competent Authority matter with a foreign jurisdiction, a portion of which became certain later in the year. This change in position did not have a material impact on the Company's consolidated statement of income during the year ended December 31, 2016, as it was partially offset by refunds to be received from the foreign jurisdiction. |
Deferred tax assets and liabilities | The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities consist of the following (in millions): December 31, 2017 2016 Deferred tax assets: Property, plant and equipment $ 99 $ 144 Trademarks and other intangible assets 98 114 Equity method investments (including foreign currency translation adjustment) 300 684 Derivative financial instruments 387 193 Other liabilities 861 1,141 Benefit plans 977 1,599 Net operating/capital loss carryforwards 520 461 Other 163 135 Gross deferred tax assets 3,405 4,471 Valuation allowances (501 ) (530 ) Total deferred tax assets 1,2 $ 2,904 $ 3,941 Deferred tax liabilities: Property, plant and equipment $ (819 ) $ (1,176 ) Trademarks and other intangible assets (978 ) (2,694 ) Equity method investments (including foreign currency translation adjustment) (1,835 ) (1,718 ) Derivative financial instruments (436 ) (1,121 ) Other liabilities (50 ) (149 ) Benefit plans (289 ) (487 ) Other (688 ) (635 ) Total deferred tax liabilities 3 (5,095 ) (7,980 ) Net deferred tax liabilities 4 $ (2,191 ) $ (4,039 ) 1 Current deferred tax assets of $80 million were included in the line item prepaid expenses and other assets in our consolidated balance sheet as of December 31, 2016 . 2 Noncurrent deferred tax assets of $331 million and $326 million were included in the line item other assets in our consolidated balance sheets as of December 31, 2017 and 2016 , respectively. 3 Current deferred tax liabilities of $692 million were included in the line item accounts payable and accrued expenses in our consolidated balance sheet as of December 31, 2016 . 4 The decrease in the net deferred tax liabilities was primarily the result of the remeasurement in accordance with the Tax Reform Act and the impact of refranchising certain bottling territories in North America. Refer to Note 2 . |
Deferred tax asset valuation allowances | An analysis of our deferred tax asset valuation allowances is as follows (in millions): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 530 $ 477 $ 649 Additions 184 68 42 Decrease due to reclassification to assets held for sale — (9 ) (163 ) Deductions (213 ) (6 ) (51 ) Balance at end of year $ 501 $ 530 $ 477 |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER COMPREHENSIVE INCOME [Abstract] | |
AOCI attributable to the shareowners of The Coca-Cola Company | AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions): December 31, 2017 2016 Foreign currency translation adjustments $ (8,957 ) $ (9,780 ) Accumulated derivative net gain (loss) (119 ) 314 Unrealized net gain (loss) on available-for-sale securities 493 305 Adjustments to pension and other benefit liabilities (1,722 ) (2,044 ) Accumulated other comprehensive income (loss) $ (10,305 ) $ (11,205 ) |
Allocation of total comprehensive income or Loss between shareowners of the 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): Year Ended December 31, 2017 Shareowners of The Coca-Cola Company Noncontrolling Interests Total Consolidated net income $ 1,248 $ 35 $ 1,283 Other comprehensive income: Net foreign currency translation adjustment 823 38 861 Net gain (loss) on derivatives 1 (433 ) — (433 ) Net change in unrealized gain (loss) on available-for-sale securities 2 188 — 188 Net change in pension and other benefit liabilities 3 322 — 322 Total comprehensive income $ 2,148 $ 73 $ 2,221 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. 3 Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities. |
OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI | OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI, for the years ended December 31, 2017 , 2016 and 2015 , is as follows (in millions): Before-Tax Amount Income Tax After-Tax Amount 2017 Foreign currency translation adjustments: Translation adjustments arising during the year $ (1,350 ) $ (242 ) $ (1,592 ) Reclassification adjustments recognized in net income 23 (6 ) 17 Gains (losses) on intra-entity transactions that are of a long-term investment nature 3,332 — 3,332 Gains (losses) on net investment hedges arising during the year (1,512 ) 578 (934 ) Net foreign currency translation adjustments 493 330 823 Derivatives: Gains (losses) arising during the year (184 ) 65 (119 ) Reclassification adjustments recognized in net income (506 ) 192 (314 ) Net gain (loss) on derivatives 1 (690 ) 257 (433 ) Available-for-sale securities: Unrealized gains (losses) arising during the year 405 (136 ) 269 Reclassification adjustments recognized in net income (123 ) 42 (81 ) Net change in unrealized gain (loss) on available-for-sale securities 2 282 (94 ) 188 Pension and other benefit liabilities: Net pension and other benefits arising during the year 120 (7 ) 113 Reclassification adjustments recognized in net income 325 (116 ) 209 Net change in pension and other benefit liabilities 3 445 (123 ) 322 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company $ 530 $ 370 $ 900 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. 3 Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities. Before-Tax Amount Income Tax After-Tax Amount 2016 Foreign currency translation adjustments: Translation adjustments arising during the year $ (1,103 ) $ 51 $ (1,052 ) Reclassification adjustments recognized in net income 368 (18 ) 350 Gains (losses) on net investment hedges arising during the year 67 (25 ) 42 Reclassification adjustments for net investment hedges recognized in net income 77 (30 ) 47 Net foreign currency translation adjustments (591 ) (22 ) (613 ) Derivatives: Gains (losses) arising during the year (43 ) 11 (32 ) Reclassification adjustments recognized in net income (563 ) 213 (350 ) Net gain (loss) on derivatives 1 (606 ) 224 (382 ) Available-for-sale securities: Unrealized gains (losses) arising during the year 124 (28 ) 96 Reclassification adjustments recognized in net income (105 ) 26 (79 ) Net change in unrealized gain (loss) on available-for-sale securities 2 19 (2 ) 17 Pension and other benefit liabilities: Net pension and other benefits arising during the year (374 ) 99 (275 ) Reclassification adjustments recognized in net income 342 (120 ) 222 Net change in pension and other benefit liabilities 3 (32 ) (21 ) (53 ) Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company $ (1,210 ) $ 179 $ (1,031 ) 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. 3 Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities. Before-Tax Amount Income Tax After-Tax Amount 2015 Foreign currency translation adjustments: Translation adjustments arising during the year $ (4,626 ) $ 243 $ (4,383 ) Reclassification adjustments recognized in net income 63 (14 ) 49 Unrealized gains (losses) on net investment hedges arising during the year 637 (244 ) 393 Net foreign currency translation adjustments (3,926 ) (15 ) (3,941 ) Derivatives: Unrealized gains (losses) arising during the year 853 (314 ) 539 Reclassification adjustments recognized in net income (638 ) 241 (397 ) Net gain (loss) on derivatives 1 215 (73 ) 142 Available-for-sale securities: Unrealized gains (losses) arising during the year (973 ) 328 (645 ) Reclassification adjustments recognized in net income (61 ) 22 (39 ) Net change in unrealized gain (loss) on available-for-sale securities 2 (1,034 ) 350 (684 ) Pension and other benefit liabilities: Net pension and other benefits arising during the year (169 ) 43 (126 ) Reclassification adjustments recognized in net income 337 (125 ) 212 Net change in pension and other benefit liabilities 3 168 (82 ) 86 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company $ (4,577 ) $ 180 $ (4,397 ) 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. 3 Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities. |
Disclosure of Reclassification Amount [Text Block] | The following table presents the amounts and line items in our consolidated statements of income where adjustments reclassified from AOCI into income were recorded during the year ended December 31, 2017 (in millions): Description of AOCI Component Financial Statement Line Item Amount Reclassified from AOCI into Income Foreign currency translation adjustments: Divestitures, deconsolidations and other 1 Other income (loss) — net $ 23 Income from continuing operations before income taxes $ 23 Income taxes from continuing operations (6 ) Consolidated net income $ 17 Derivatives: Foreign currency contracts Net operating revenues $ (444 ) Foreign currency and commodity contracts Cost of goods sold 3 Foreign currency and interest rate contracts Interest expense 44 Foreign currency contracts Other income (loss) — net (110 ) Divestitures, deconsolidations and other 2 Other income (loss) — net 1 Income from continuing operations before income taxes $ (506 ) Income taxes from continuing operations 192 Consolidated net income $ (314 ) Available-for-sale securities: Divestitures, deconsolidations and other 2 Other income (loss) — net $ (87 ) Sale of securities Other income (loss) — net (36 ) Income from continuing operations before income taxes $ (123 ) Income taxes from continuing operations 42 Consolidated net income $ (81 ) Pension and other benefit liabilities: Curtailment charges (credits) 3 Other operating charges $ (75 ) Settlement charges (credits) 3 Other operating charges 228 Divestitures, deconsolidations and other 2 Other income (loss) — net 7 Recognized net actuarial loss (gain) * 183 Recognized prior service cost (credit) * (18 ) Income from continuing operations before income taxes $ 325 Income taxes from continuing operations (116 ) Consolidated net income $ 209 1 Includes a $104 million loss related to the integration of CCW and CCEJ to establish CCBJI and an $80 million gain related to the derecognition of our previously held equity interests in CCBA and its South African subsidiary upon the consolidation of CCBA. Refer to Note 2 and Note 17 . 2 Primarily related to the integration of CCW and CCEJ to establish CCBJI. Refer to Note 17 . 3 The curtailment charges (credits) and settlement charges (credits) were primarily related to North America refranchising and the Company's productivity, restructuring and integration initiatives. Refer to Note 13 and Note 18 . * 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 consolidated statements of income in its entirety. Refer to Note 13 . |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 tables summarize those assets and liabilities measured at fair value on a recurring basis (in millions): December 31, 2017 Level 1 Level 2 Level 3 Other 4 Netting Adjustment 5 Fair Value Measurements Assets: Trading securities 1 $ 212 $ 127 $ 3 $ 65 $ — $ 407 Available-for-sale securities 1 1,899 5,739 169 3 — — 7,807 Derivatives 2 7 250 — — (198 ) 6 59 8 Total assets $ 2,118 $ 6,116 $ 172 $ 65 $ (198 ) $ 8,273 Liabilities: Derivatives 2 $ (3 ) $ (262 ) $ — $ — $ 147 7 $ (118 ) 8 Total liabilities $ (3 ) $ (262 ) $ — $ — $ 147 $ (118 ) 1 Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. 2 Refer to Note 5 for additional information related to the composition of our derivative portfolio. 3 Primarily related to debt securities that mature in 2018. 4 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 3. 5 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net 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 . 6 The Company is obligated to return $55 million in cash collateral it has netted against its derivative position. 7 The Company has the right to reclaim $2 million in cash collateral it has netted against its derivative position. 8 The Company's derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $ 59 million in the line item other assets; $28 million in the line item accounts payable and accrued expenses; $12 million in the line item liabilities held for sale — discontinued operations and $ 78 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. December 31, 2016 Level 1 Level 2 Level 3 Other 4 Netting Adjustment 5 Fair Value Measurements Assets: Trading securities 1 $ 202 $ 115 $ 4 $ 63 $ — $ 384 Available-for-sale securities 1 1,655 4,619 139 3 — — 6,413 Derivatives 2 4 878 — — (369 ) 6 513 8 Total assets $ 1,861 $ 5,612 $ 143 $ 63 $ (369 ) $ 7,310 Liabilities: Derivatives 2 $ 11 $ 276 $ — $ — $ (192 ) 7 $ 95 8 Total liabilities $ 11 $ 276 $ — $ — $ (192 ) $ 95 1 Refer to Note 3 for additional information related to the composition of our trading securities and available-for-sale securities. 2 Refer to Note 5 for additional information related to the composition of our derivative portfolio. 3 Primarily related to long-term debt securities that mature in 2018. 4 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 3. 5 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net 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 . 6 The Company is obligated to return $ 201 million in cash collateral it has netted against its derivative position. 7 The Company has the right to reclaim $ 17 million in cash collateral it has netted against its derivative position. 8 The Company's derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $ 347 million in the line item prepaid expenses and other assets; $ 166 million in the line item other assets; $42 million in the line item accounts payable and accrued expenses; and $ 53 million in the line item other liabilities. Refer to Note 5 for additional information related to the composition of our derivative portfolio. |
Assets 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) December 31, 2017 2016 Assets held for sale 1 $ (1,819 ) $ (2,264 ) Intangible assets (442 ) 2 (153 ) 7 Other long-lived assets (329 ) 3 — Other-than-temporary impairment charge (50 ) 4 — Investment in formerly unconsolidated subsidiary 150 5 — Valuation of shares in equity method investee 25 6 — Total $ (2,465 ) $ (2,417 ) 1 The Company is required to record assets and liabilities that are held for sale at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price. These losses related to refranchising activities in North America. The charges were calculated based on Level 3 inputs. Refer to Note 2. 2 The Company recognized an impairment charge of $375 million related to CCR's goodwill. This impairment charge was determined by comparing the fair value of the reporting unit, based on Level 3 inputs, to its carrying value. The Company also recognized an impairment charge of $33 million related to certain U.S. bottlers' franchise rights. This charge was determined by comparing the fair value of the asset to its current carrying value. Each of these impairment charges was primarily a result of refranchising activities in North America and management's estimates of the proceeds that were expected to be received for the remaining bottling territories upon their refranchising. Additionally, the Company recorded impairment charges of $34 million related to Venezuelan intangible assets due to weaker sales and the volatility of foreign currency exchange rates resulting from continued political instability. The fair value of these assets was derived using discounted cash flow analyses based on Level 3 inputs. 3 The Company recognized impairment charges of $310 million related to CCR's property, plant and equipment and $19 million related to CCR's other assets primarily as a result of refranchising activities in North America. The fair value of these assets was derived using management's estimate of the proceeds that were expected to be received for the remaining bottling territories upon their refranchising. 4 The Company recognized an other-than-temporary impairment charge of $50 million related to one of our international equity method investees, primarily driven by foreign currency exchange rate fluctuations. The fair value of this investment was derived using discounted cash flow analyses based on Level 3 inputs. 5 The Company recognized a gain of $150 million on our previously held equity interests in CCBA and its South African subsidiary, which were accounted for under the equity method of accounting prior to our consolidation of the bottler in October 2017. U.S. GAAP requires 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 interests in CCBA and its South African subsidiary based on Level 3 inputs. Refer to Note 2. 6 The Company recognized a gain of $25 million as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its stock at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment in Coca-Cola FEMSA. This gain was determined using Level 1 inputs. 7 The Company recognized losses of $153 million during the year ended December 31, 2016 due to impairment charges related to certain intangible assets. The charges included $143 million related to the impairment of certain U.S. bottlers' franchise rights. This charge was related to a number of factors, primarily as a result of lower operating performance compared to previously modeled results as well as a revision in management's estimates of the proceeds that were expected to be received upon refranchising the territories. The losses also included a $10 million goodwill impairment charge, primarily the result of management's revised outlook on market conditions. The charges were 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 17. |
Summary of the fair value of pension plan assets for U.S. and non-U.S. pension plans | The following table summarizes the levels within the fair value hierarchy for our pension plan assets as of December 31, 2017 and 2016 (in millions): December 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Other 1 Total Level 1 Level 2 Level 3 Other 1 Total Cash and cash equivalents $ 626 $ 65 $ — $ — $ 691 $ 373 $ 29 $ — $ — $ 402 Equity securities: U.S.-based companies 2,080 3 14 — 2,097 1,812 1 14 — 1,827 International-based companies 1,465 — — — 1,465 935 4 — — 939 Fixed-income securities: Government bonds — 374 — — 374 — 525 1 — 526 Corporate bonds and debt securities — 803 24 — 827 — 978 18 — 996 Mutual, pooled and commingled funds 239 42 — 700 3 981 91 20 — 1,022 3 1,133 Hedge funds/limited partnerships — — — 983 4 983 — — — 1,213 4 1,213 Real estate — — 2 596 5 598 — — 2 521 5 523 Other — — 263 2 564 6 827 — 3 211 2 598 6 812 Total $ 4,410 $ 1,287 $ 303 $ 2,843 $ 8,843 $ 3,211 $ 1,560 $ 246 $ 3,354 $ 8,371 1 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 13. 2 Includes purchased annuity insurance contracts. 3 This class of assets includes actively managed emerging markets equity funds and a collective trust fund for qualified plans, invested primarily in equity securities of companies in developed and emerging markets. There are no liquidity restrictions on these investments. 4 This class of assets includes hedge funds that can be subject to redemption restrictions, ranging from monthly to tri-annually with a redemption notice period of up to 120 days and/or initial lock-up periods of up to one year, and private equity funds that are primarily closed-end funds in which the Company's investments are generally not eligible for redemption. Distributions from these private equity funds will be received as the underlying assets are liquidated or distributed. 5 This class of assets includes funds invested in real estate, including a privately held real estate investment trust, a real estate commingled pension trust fund, infrastructure limited partnerships and commingled investment funds. These funds seek current income and capital appreciation through the investments and can be subject to redemption restrictions, ranging from quarterly to semi-annually with a redemption notice period of up to 90 days. 6 This class of assets includes segregated portfolios of private investment funds that are invested in a portfolio of insurance-linked securities. These assets can be subject to a semi-annual redemption, with a redemption notice period of 90 days, subject to certain gate restrictions. |
Reconciliation of the beginning and ending balance of Level 3 assets for U.S. and non-U.S. pension plans | The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for our U.S. and non-U.S. pension plans for the years ended December 31, 2017 and 2016 (in millions): Equity Securities Fixed-Income Securities Real Estate Other Total 2016 Balance at beginning of year $ 11 $ 3 $ 2 $ 219 $ 235 Actual return on plan assets: Related to assets held at the reporting date 4 2 — 7 13 Related to assets sold during the year — (2 ) — 3 1 Purchases, sales and settlements — net — 12 — (23 ) (11 ) Transfers into/(out of) Level 3 — net (1 ) 4 — 7 10 Foreign currency translation adjustments — — — (2 ) (2 ) Balance at end of year $ 14 $ 19 $ 2 $ 211 1 $ 246 2017 Balance at beginning of year $ 14 $ 19 $ 2 $ 211 $ 246 Actual return on plan assets: Related to assets held at the reporting date (3 ) 1 — 4 2 Purchases, sales and settlements — net 3 1 — (9 ) (5 ) Transfers into/(out of) Level 3 — net — 3 — 31 34 Foreign currency translation adjustments — — — 26 26 Balance at end of year $ 14 $ 24 $ 2 $ 263 1 $ 303 1 Includes purchased annuity insurance contracts. |
Summary of the fair value of postretirement benefit plan assets | The following table summarizes the levels within the fair value hierarchy for our other postretirement benefit plan assets as of December 31, 2017 and 2016 (in millions): December 31, 2017 December 31, 2016 Level 1 Level 2 Other 1 Total Level 1 Level 2 Other 1 Total Cash and cash equivalents $ 78 $ — $ — $ 78 $ 2 $ — $ — $ 2 Equity securities: U.S.-based companies 96 — — 96 116 — — 116 International-based companies 8 — — 8 8 — — 8 Fixed-income securities: Government bonds — 2 — 2 — 3 — 3 Corporate bonds and debt securities — 7 — 7 — 6 — 6 Mutual, pooled and commingled funds — — 80 80 98 — 5 103 Hedge funds/limited partnerships — — 8 8 — — 9 9 Real estate — — 5 5 — — 4 4 Other — — 4 4 — — 4 4 Total $ 182 $ 9 $ 97 $ 288 $ 224 $ 9 $ 22 $ 255 1 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 13. |
PRODUCTIVITY, INTEGRATION AND47
PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Productivity and Reinvestment | The following table summarizes the balance of accrued expenses related to these productivity and reinvestment initiatives and the changes in the accrued amounts (in millions): Severance Pay and Benefits Outside Services Other Direct Costs Total 2015 Accrued balance at beginning of year $ 260 $ 4 $ 21 $ 285 Costs incurred 269 56 366 691 Payments (200 ) (47 ) (265 ) (512 ) Noncash and exchange (185 ) 1 (5 ) (70 ) (260 ) Accrued balance at end of year $ 144 $ 8 $ 52 $ 204 2016 Costs incurred $ 95 $ 27 $ 230 $ 352 Payments (114 ) (30 ) (205 ) (349 ) Noncash and exchange (2 ) 1 (55 ) (56 ) Accrued balance at end of year $ 123 $ 6 $ 22 $ 151 2017 Costs incurred $ 310 $ 79 $ 261 $ 650 Payments (181 ) (83 ) (267 ) (531 ) Noncash and exchange (62 ) 1 (1 ) (1 ) (64 ) Accrued balance at end of year $ 190 $ 1 $ 15 $ 206 1 Includes pension settlement charges. Refer to Note 13. |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |
Schedule of total net operating revenues related to concentrate and finished products operation | The following table sets forth the percentage of total net operating revenues related to concentrate operations and finished product operations: Year Ended December 31, 2017 2016 2015 Concentrate operations 1 51 % 40 % 37 % Finished product operations 2 49 60 63 Total 100 % 100 % 100 % 1 Includes concentrates sold by the Company to authorized bottling partners for the manufacture of fountain syrups. The bottlers then typically sell the fountain syrups to wholesalers or directly to fountain retailers. 2 Includes fountain syrups manufactured by the Company, including consolidated bottling operations, and sold to fountain retailers or to authorized fountain wholesalers or bottling partners who resell the fountain syrups to fountain retailers. |
Schedule of net revenue and property plant and equipment by Geography | The following table provides information related to our net operating revenues (in millions): Year Ended December 31, 2017 2016 2015 United States $ 14,727 $ 19,899 $ 20,360 International 20,683 21,964 23,934 Net operating revenues $ 35,410 $ 41,863 $ 44,294 The following table provides information related to our property, plant and equipment — net (in millions): Year Ended December 31, 2017 2016 2015 United States $ 4,163 $ 6,784 $ 8,266 International 4,040 3,851 4,305 Property, plant and equipment — net $ 8,203 $ 10,635 $ 12,571 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Information about our Company's continuing operations by operating segment as of and for the years ended December 31, 2017 , 2016 and 2015 , is as follows (in millions): Europe, Middle East & Africa Latin America North America Asia Pacific Bottling Investments Corporate Eliminations Consolidated 2017 Net operating revenues: Third party $ 7,332 $ 3,956 $ 8,651 $ 4,767 $ 10,524 $ 138 $ — $ 35,368 Intersegment 42 73 1,986 409 81 — (2,549 ) 42 4 Total net operating revenues 7,374 4,029 10,637 5,176 10,605 138 (2,549 ) 35,410 Operating income (loss) 3,646 2,214 2,578 2,163 (1,117 ) (1,983 ) — 7,501 Interest income — — 44 — — 633 — 677 Interest expense — — — — — 841 — 841 Depreciation and amortization 91 37 411 65 454 202 — 1,260 Equity income (loss) — net 48 (3 ) (3 ) 11 878 140 — 1,071 Income (loss) from continuing operations before income taxes 3,706 2,211 2,307 2,179 (2,345 ) (1,316 ) — 6,742 Identifiable operating assets 1 5,475 1,896 17,619 2,072 2 4,493 2 27,060 — 58,615 5 Investments 3 1,238 891 112 177 15,998 3,536 — 21,952 Capital expenditures 81 55 541 50 662 286 — 1,675 2016 Net operating revenues: Third party $ 7,014 $ 3,746 $ 6,437 $ 4,788 $ 19,751 $ 127 $ — $ 41,863 Intersegment 264 73 3,773 506 134 5 (4,755 ) — Total net operating revenues 7,278 3,819 10,210 5,294 19,885 132 (4,755 ) 41,863 Operating income (loss) 3,676 1,951 2,582 2,224 (137 ) (1,670 ) — 8,626 Interest income — — 27 — — 615 — 642 Interest expense — — — — — 733 — 733 Depreciation and amortization 93 35 426 80 1,013 140 — 1,787 Equity income (loss) — net 62 18 (17 ) 9 648 115 — 835 Income (loss) from continuing operations before income taxes 3,749 1,966 2,560 2,238 (1,923 ) (454 ) — 8,136 Identifiable operating assets 1 4,067 1,785 16,566 2,024 15,973 29,606 — 70,021 Investments 3 1,302 804 109 164 11,456 3,414 — 17,249 Capital expenditures 62 45 438 107 1,329 281 — 2,262 2015 Net operating revenues: Third party $ 6,966 $ 3,999 $ 5,581 $ 4,707 $ 22,885 $ 156 $ — $ 44,294 Intersegment 621 75 4,259 545 178 10 (5,688 ) — Total net operating revenues 7,587 4,074 9,840 5,252 23,063 166 (5,688 ) 44,294 Operating income (loss) 3,875 2,169 2,366 2,189 124 (1,995 ) — 8,728 Interest income — — 9 — — 604 — 613 Interest expense — — — — — 856 — 856 Depreciation and amortization 103 41 373 85 1,211 157 — 1,970 Equity income (loss) — net 39 (7 ) (18 ) 9 426 40 — 489 Income (loss) from continuing operations before income taxes 3,923 2,164 2,356 2,207 (427 ) (618 ) — 9,605 Identifiable operating assets 1 4,156 2 1,627 16,396 1,639 22,688 2 27,702 — 74,208 Investments 3 1,138 657 107 158 8,084 5,644 — 15,788 Capital expenditures 54 70 377 81 1,699 272 — 2,553 1 Principally cash and cash equivalents, short-term investments, marketable securities, trade accounts receivable, inventories, goodwill, trademarks and other intangible assets, and property, plant and equipment — net. 2 Property, plant and equipment — net in India represented 11 percent of consolidated property, plant and equipment — net in 2017. Property, plant and equipment — net in Germany represented 10 percent of consolidated property, plant and equipment — net in 2015. The 2015 amount includes property, plant and equipment — net classified as held for sale. During the year ended December 31, 2016, the Company deconsolidated our German bottling operations. Refer to Note 2 . 3 Principally equity method investments and other investments in bottling companies. |
NET CHANGE IN OPERATING ASSET49
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
NET CHANGE IN OPERATING ASSETS AND LIABILITIES DISCLOSURE [Abstract] | |
Net change in operating assets and liabilities | Net cash provided by (used in) operating activities attributable to the net change in operating assets and liabilities is composed of the following (in millions): Year Ended December 31, 2017 2016 2015 (Increase) decrease in trade accounts receivable $ (141 ) $ (28 ) $ (212 ) (Increase) decrease in inventories (355 ) (142 ) (250 ) (Increase) decrease in prepaid expenses and other assets 571 283 123 Increase (decrease) in accounts payable and accrued expenses (445 ) (540 ) 1,004 Increase (decrease) in accrued income taxes (153 ) 750 (306 ) Increase (decrease) in other liabilities 1 4,052 (544 ) (516 ) Net change in operating assets and liabilities $ 3,529 $ (221 ) $ (157 ) 1 The increase in other liabilities in 2017 was primarily due to the one-time transition tax required by the Tax Reform Act signed into law on December 22, 2017 . Refer to Note 14 . |
BUSINESS AND SUMMARY OF SIGNI50
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) shares in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
Summary of Significant Accounting Policies [Abstract] | |||
Number of brands owned or licensed and marketed by reporting entity | 500 | ||
Number, of the top five brands in the world, of owned and marketed nonalcoholic sparkling beverage brands | 4 | ||
Number of countries where finished beverage products bearing our trademarks are sold | 200 | ||
Beverage servings consumed per day, number | 60,000,000,000 | ||
Beverage servings consumed per day which bears trademarks owned by or licensed by the entity, number | 1,900,000,000 | ||
Period of marketing agreement with customers, high end of the range (in years) | 10 | ||
Amortization expense for infrastructure programs | $ 36,000,000 | $ 45,000,000 | $ 61,000,000 |
Sales Allowances, Goods | 6,200,000,000 | 6,600,000,000 | 6,800,000,000 |
Advertising costs included in selling, general and administrative expenses | 4,000,000,000 | 4,000,000,000 | 4,000,000,000 |
Advertising and production costs recorded in prepaid expenses and other assets | 95,000,000 | 113,000,000 | |
Shipping and handling costs included in selling, general and administrative expenses | $ 1,100,000,000 | $ 2,000,000,000 | $ 2,500,000,000 |
Stock option award excluded from computation of diluted net income per share (in millions of shares) | shares | 47 | 51 | 27 |
Investments classified as cash equivalents, maximum maturity period (in months) | 3 | ||
Investments classified as short term investments maturity period, low end of the range (in months) | 3 | ||
Investments classified as short term investments maturity period, high end of the range (in years) | 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
NET INCOME FROM CONTINUING OPERATIONS | $ 1,182,000,000 | $ 6,550,000,000 | $ 7,366,000,000 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 1,181,000,000 | 6,527,000,000 | 7,351,000,000 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Noncontrolling Interest | 1,000,000 | 23,000,000 | 15,000,000 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 101,000,000 | 0 | 0 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | 34,000,000 | 0 | 0 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 67,000,000 | 0 | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,283,000,000 | 6,550,000,000 | 7,366,000,000 |
Net Income (Loss) Attributable to Noncontrolling Interest | 35,000,000 | 23,000,000 | 15,000,000 |
Net income attributable to shareowners of The Coca-Cola Company | $ 1,248,000,000 | 6,527,000,000 | 7,351,000,000 |
Goodwill, Trademarks and Other Intangible Assets | |||
Finite Lived Intangible Assets, Minimum Useful Life | 1 year | ||
Finite Lived Intangible Assets, Maximum Useful Life | 20 years | ||
Property, Plant and Equipment | |||
Depreciation expense | $ 1,131,000,000 | 1,575,000,000 | 1,735,000,000 |
Amortization for leasehold improvements | 19,000,000 | 22,000,000 | 18,000,000 |
Acquisitions of businesses, equity method investments and nonmarketable securities | $ 3,900,000,000 | $ 838,000,000 | $ 2,491,000,000 |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment, Useful Life, Maximum | 40 years | ||
Machinery equipment and vehicle fleet | |||
Property, Plant and Equipment | |||
Property, Plant and Equipment, Useful Life, Maximum | 20 years | ||
Coca-Cola Beverage Africa [Member] | |||
Property, Plant and Equipment | |||
Acquisitions of businesses, equity method investments and nonmarketable securities | $ 3,150,000,000 |
BUSINESS AND SUMMARY OF SIGNI51
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Not primary beneficiary | ||
Variable interest entity | ||
VIEs maximum exposures to loss | $ 4,523 | $ 3,709 |
Primary beneficiary | ||
Variable interest entity | ||
VIEs maximum exposures to loss | $ 1 | $ 203 |
BUSINESS AND SUMMARY OF SIGNI52
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Activity in the allowance for doubtful accounts | |||
Balance at beginning of year | $ 466 | $ 352 | $ 331 |
Net charges to costs and expenses | 32 | 126 | 45 |
Write-offs | (10) | (10) | (10) |
Other | (11) | (2) | (14) |
Balance at end of year | $ 477 | $ 466 | $ 352 |
BUSINESS AND SUMMARY OF SIGNI53
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Apr. 03, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 28, 2014 | |
Translation and Remeasurement | |||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 143 | ||||
Venezuelan subsidiary | |||||
Translation and Remeasurement | |||||
Official exchange rate set by government for nonessential goods (in bolivars per U.S.dollar) | 10 | 6.3 | |||
Remeasurement Charges on Subsidiary Assets | $ 27 | ||||
Accounts Receivable Write Down | $ 76 | 56 | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 34 | 55 | |||
Corporate | |||||
Translation and Remeasurement | |||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 418 | ||||
Corporate | Venezuelan subsidiary | |||||
Translation and Remeasurement | |||||
Remeasurement Charges on Subsidiary Assets | $ 27 |
BUSINESS AND SUMMARY OF SIGNI54
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Standards Update 2014-09 [Member] | ||||
Recent issued accounting guidance [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 350 | |||
Accounting Standards Update 2016-01 [Member] | ||||
Recent issued accounting guidance [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 425 | |||
Accounting Standards Update 2016-09 [Member] | ||||
Recent issued accounting guidance [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 130 | $ 95 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Cash Flow Reclassification | 130 | $ 95 | ||
Accounting Standards Update 2016-16 [Member] | ||||
Recent issued accounting guidance [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (2,800) | |||
Accounting Standards Update 2017-07 [Member] | ||||
Recent issued accounting guidance [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (99) | (31) | ||
Prepaid Expenses and Other Current Assets | Accounting Standards Update 2015-17 [Member] | ||||
Recent issued accounting guidance [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 80 | |||
Accounts Payable and Accrued Liabilities | Accounting Standards Update 2015-17 [Member] | ||||
Recent issued accounting guidance [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (692) | |||
Other assets | Accounting Standards Update 2015-17 [Member] | ||||
Recent issued accounting guidance [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (54) | |||
Deferred Tax Asset [Domain] | Accounting Standards Update 2015-17 [Member] | ||||
Recent issued accounting guidance [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 666 |
ACQUISITIONS AND DIVESTITURES55
ACQUISITIONS AND DIVESTITURES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 60 Months Ended | |||||
Apr. 03, 2015 | Jul. 03, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2019 | Apr. 01, 2017 | Jun. 12, 2015 | |
Significant Acquisitions and Disposals [Line Items] | |||||||||
Indefinite-Lived Trademarks | $ 6,729,000,000 | $ 6,097,000,000 | |||||||
Acquisitions of businesses, equity method investments and nonmarketable securities | $ 3,900,000,000 | 838,000,000 | $ 2,491,000,000 | ||||||
Equity Method Investment, Ownership Percentage | 17.00% | ||||||||
Payments for (Proceeds from) Other Investing Activities | $ 126,000,000 | 209,000,000 | 40,000,000 | ||||||
Proceeds from disposals of businesses, equity method investments and nonmarkatable securities | 3,821,000,000 | 1,035,000,000 | 565,000,000 | ||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 25,000,000 | 0 | |||||||
Other accrued expenses | 3,071,000,000 | 2,593,000,000 | |||||||
Impairment of Intangible Assets (Excluding Goodwill) | 143,000,000 | ||||||||
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1,905,000,000 | 158,000,000 | |||||||
Goodwill, Acquired During Period | 56,000,000 | 6,000,000 | |||||||
Corporate | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | (6,000,000) | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 1,323,000,000 | ||||||||
Gain (Loss) on Disposition of Business | 1,715,000,000 | ||||||||
Net Gains From Investee Transactions, Equity Investment Sales and other gains | 1,403,000,000 | ||||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 418,000,000 | ||||||||
North America | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Cost incurred to convert bottling agreements | 313,000,000 | 31,000,000 | |||||||
Goodwill, Acquired During Period | 28,000,000 | 0 | |||||||
Others [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Assets held for sale | 17,000,000 | ||||||||
Liabilities held for sale | 3,000,000 | ||||||||
Disposal Groups, Including Discontinued Operations, Name [Domain] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Assets held for sale | 219,000,000 | 2,797,000,000 | |||||||
Liabilities held for sale | $ 37,000,000 | 710,000,000 | |||||||
Brazilian Bottling Operations | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 34.00% | ||||||||
Percentage of shares sold or to be sold through options | 10.00% | ||||||||
North America Territory [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Assets held for sale | $ 9,000,000 | 1,247,000,000 | |||||||
Liabilities held for sale | $ 5,000,000 | 224,000,000 | |||||||
Agreement Term | 10 years | ||||||||
Agreement Renewal Term | 10 years | ||||||||
Proceeds from Sale of Productive Assets | $ 2,860,000,000 | 1,017,000,000 | $ 362,000,000 | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (3,177,000,000) | (2,456,000,000) | (1,006,000,000) | ||||||
Liabilities for Guarantees on Long-Duration Contracts, Payment for Benefits | 236,000,000 | ||||||||
Guatemala Bottling Operations [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Assets held for sale | 210,000,000 | ||||||||
Liabilities held for sale | 32,000,000 | ||||||||
China Bottling Operation [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Assets held for sale | 1,533,000,000 | ||||||||
Liabilities held for sale | 483,000,000 | ||||||||
Proceeds from disposals of businesses, equity method investments and nonmarkatable securities | 963,000,000 | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 88,000,000 | ||||||||
China Bottling Operation [Member] | Corporate | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 88,000,000 | ||||||||
CCEAG [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (26,000,000) | 1,400,000,000 | |||||||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | (77,000,000) | ||||||||
Disposal gain (loss) of a business net of transaction cost | 1,287,000,000 | ||||||||
CCEAG [Member] | Corporate | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (26,000,000) | ||||||||
Equity Method Investee [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Proceeds from Sale of Productive Assets | 336,000,000 | 279,000,000 | 83,000,000 | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (1,104,000,000) | (492,000,000) | (379,000,000) | ||||||
AC Bebidas [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Proceeds from Sale of Productive Assets | 220,000,000 | ||||||||
Liberty Coca-Cola Beverages [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Proceeds from Sale of Productive Assets | 39,000,000 | ||||||||
Monster Beverage Corporation [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Other intangible assets | 341,000,000 | ||||||||
Proceeds from Sale of Intangible Assets | 28,000,000 | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (313,000,000) | ||||||||
Coca-Cola Beverage Africa [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Deconsolidation, Gain (Loss), Amount | $ (21,000,000) | ||||||||
North America Territory (Southwest) [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 1,037,000,000 | ||||||||
Monster Beverage Corporation [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Equity Method Investments, Fair Value Disclosure | $ 3,066,000,000 | ||||||||
Indefinite-lived Intangible Assets Acquired | $ 1,035,000,000 | ||||||||
Noncash or Part Noncash Acquisition, Value of Assets Acquired | 4,196,000,000 | ||||||||
Indefinite-Lived Trademarks | $ 95,000,000 | ||||||||
Acquisitions of businesses, equity method investments and nonmarketable securities | 1,620,000,000 | ||||||||
Equity Method Investment, Ownership Percentage | 17.00% | ||||||||
Payments to Acquire Businesses, Gross | 2,150,000,000 | ||||||||
Payments for (Proceeds from) Other Investing Activities | 530,000,000 | ||||||||
Other Significant Noncash Transaction, Value of Consideration Given | $ 2,046,000,000 | ||||||||
Term of License Agreement | 20 years | ||||||||
Green Mountain Coffee Roasters, Inc. [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Acquisitions of businesses, equity method investments and nonmarketable securities | $ 830,000,000 | $ 1,567,000,000 | |||||||
Equity Method Investment, Ownership Percentage | 4.00% | 12.00% | |||||||
Coca-Cola Beverage Africa [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Acquisitions of businesses, equity method investments and nonmarketable securities | $ 3,150,000,000 | ||||||||
Equity Method Investment, Ownership Percentage | 12.00% | ||||||||
Ownership Percentage by Parent | 54.50% | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 150,000,000 | ||||||||
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 1,805,000,000 | ||||||||
Goodwill, Acquired During Period | $ 4,262,000,000 | ||||||||
Coca-Cola European Partners [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 18.00% | ||||||||
Remaining portion of options to be acquired until December 2019, by an equity investment majority owner | Brazilian Bottling Operations | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Percentage of shares sold or to be sold through options | 14.00% | ||||||||
Other Nonoperating Income (Expense) [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 380,000,000 | ||||||||
Other Nonoperating Income (Expense) [Member] | Green Mountain Coffee Roasters, Inc. [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Derivative, Loss on Derivative | 58,000,000 | ||||||||
AC Bebidas [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Equity Method Investments, Fair Value Disclosure | $ 2,960,000,000 | ||||||||
Equity Method Investment, Ownership Percentage | 20.00% | ||||||||
Payments to Acquire Equity Method Investments | $ 144,000,000 | ||||||||
South African subsidiary of Coca-Cola Beverages Africa Limited [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 3.00% | ||||||||
Green Mountain Coffee Roasters, Inc. [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Payments for (Proceeds from) Investments | $ (2,380,000,000) | ||||||||
Green Mountain Coffee Roasters, Inc. [Member] | Other Nonoperating Income (Expense) [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Net Gains From Investee Transactions, Equity Investment Sales and other gains | 18,000,000 | ||||||||
Monster Beverage Corporation [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Other accrued expenses | 125,000,000 | ||||||||
Coca-Cola Beverage Africa [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Loss | $ 19,000,000 | ||||||||
Payments to Acquire Equity Method Investments | $ 150,000,000 | ||||||||
Coca-Cola Beverage Africa [Member] | |||||||||
Significant Acquisitions and Disposals [Line Items] | |||||||||
Assets held for sale | 7,329,000,000 | ||||||||
Liabilities held for sale | $ 1,496,000,000 |
ACQUISITIONS AND DIVESTITURES56
ACQUISITIONS AND DIVESTITURES (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Divestitures | ||
Equity Method Investment, Ownership Percentage | 17.00% | |
Others [Member] | ||
Divestitures | ||
Assets held for sale | $ 17 | |
Liabilities held for sale | 3 | |
North America Territory [Member] | ||
Divestitures | ||
Assets held for sale | $ 9 | 1,247 |
Liabilities held for sale | $ 5 | 224 |
China Bottling Operation [Member] | ||
Divestitures | ||
Assets held for sale | 1,533 | |
Liabilities held for sale | 483 | |
Brazilian Bottling Operations | ||
Divestitures | ||
Equity Method Investment, Ownership Percentage | 34.00% | |
Disposal Groups, Including Discontinued Operations, Name [Domain] | ||
Divestitures | ||
Cash, cash equivalents and short-term investments | $ 13 | 49 |
Trade Accounts Receivable, less allowances | 10 | 43 |
Inventories | 11 | 264 |
Prepaid expenses and other assets | 12 | 114 |
Equity Method Investments | 0 | 1 |
Other Investments | 0 | 42 |
Other Assets | 7 | 17 |
Property, plant and equipment - net | 85 | 1,780 |
Bottlers' franchise rights with indefinite lives | 5 | 1,388 |
Goodwill | 103 | 390 |
Other Intangible Assets | 1 | 51 |
Allowance for reduction of assets, held for sale | (28) | (1,342) |
Assets held for sale | 219 | 2,797 |
Accounts payable and accrued expenses | 22 | 393 |
Accrued income taxes | 0 | 13 |
Other liabilities | 12 | 1 |
Deferred income taxes | 3 | 303 |
Liabilities held for sale | 37 | $ 710 |
Coca-Cola Beverage Africa [Member] | ||
Divestitures | ||
Cash, cash equivalents and short-term investments | 97 | |
Trade Accounts Receivable, less allowances | 299 | |
Inventories | 299 | |
Prepaid expenses and other assets | 52 | |
Equity Method Investments | 7 | |
Other Assets | 29 | |
Property, plant and equipment - net | 1,436 | |
Goodwill | 4,248 | |
Other Intangible Assets | 862 | |
Assets held for sale | 7,329 | |
Accounts payable and accrued expenses | 598 | |
Accrued income taxes | 40 | |
Other liabilities | 10 | |
Deferred income taxes | 419 | |
Liabilities held for sale | 1,496 | |
Loans and notes Payable | 404 | |
Current maturities of long term debt | 6 | |
Long-term debt | $ 19 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | |||
Trading securities | $ 407 | $ 384 | |
Trading Securities | |||
Trading securities, net unrealized gains (losses) | 67 | 39 | $ 19 |
Marketable Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Trading securities | 295 | 282 | |
Other assets | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Trading securities | $ 112 | $ 102 |
INVESTMENTS (Details 2)
INVESTMENTS (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale securities, by type | ||
Available-for-sale securities, cost | $ 7,058 | $ 5,952 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain | 842 | 514 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | (93) | (53) |
Available-for-sale securities, estimated fair value | 7,807 | 6,413 |
Equity securities | ||
Available-for-sale securities, by type | ||
Available-for-sale securities, cost | 1,276 | 1,252 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain | 685 | 425 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss | (66) | (22) |
Available-for-sale securities, estimated fair value | 1,895 | 1,655 |
Debt securities | ||
Available-for-sale securities, by type | ||
Available-for-sale securities, cost | 5,782 | 4,700 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain | 157 | 89 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, | (27) | (31) |
Available-for-sale securities, estimated fair value | $ 5,912 | $ 4,758 |
INVESTMENTS (Details 3)
INVESTMENTS (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from Sale of Available-for-sale Securities | $ 14,205 | $ 11,540 | $ 4,043 |
Gross realized gains | 68 | 152 | 103 |
Gross realized losses | (32) | (51) | $ (42) |
Available-for-Sale Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Solvency Funds of Insurance Captive | $ 1,159 | $ 985 |
INVESTMENTS (Details 4)
INVESTMENTS (Details 4) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||
Cash and cash equivalents | $ 6,006 | $ 8,555 | $ 7,309 | $ 8,958 |
Marketable securities | 5,317 | 4,051 | ||
OTHER INVESTMENTS | 1,096 | 989 | ||
OTHER ASSETS | 4,560 | 4,248 | ||
Available-for-sale securities | 7,807 | 6,413 | ||
Available-for-Sale Securities | ||||
Available-for-sale and held-to-maturity securities by balance sheet line item | ||||
Cash and cash equivalents | 667 | 682 | ||
Marketable securities | 5,022 | 3,769 | ||
OTHER INVESTMENTS | 953 | 849 | ||
OTHER ASSETS | 1,165 | 1,113 | ||
Available-for-sale securities | $ 7,807 | $ 6,413 |
INVESTMENTS (Details 5)
INVESTMENTS (Details 5) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, within 1 year, cost | $ 1,433 | |
Available-for-sale securities, within 1 year, fair value | 1,491 | |
Available-for-sale securities, after 1 years through 5 years, cost | 3,929 | |
Available-for-sale securities, after 1 years through 5 years, fair value | 3,983 | |
Available-for-sale securities, after 5 years through 10 years, cost | 103 | |
Available-for-sale securities, after 5 years through 10 years, fair value | 117 | |
Available-for-sale securities, after 10 years, cost | 317 | |
Available-for-sale securities, after 10 years, fair value | 321 | |
Cost Method Investments [Abstract] | ||
Cost method investments, carrying value | $ 143 | $ 140 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory balances | ||
Raw materials and packaging | $ 1,729 | $ 1,565 |
Finished goods | 693 | 844 |
Other | 233 | 266 |
Total inventories | $ 2,655 | $ 2,675 |
HEDGING TRANSACTIONS AND DERI63
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Maximum length of time over which future cash flow exposures are hedged (in years) | 3 years | ||
Derivatives Designated as Hedging Instruments, Assets, at Fair Value | $ 176 | $ 565 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 81 | 317 | |
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 159 | 178 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 106 | 109 | |
Anticipated gains (losses) cash flows hedges, estimated reclassification to earnings | 93 | ||
Increase (Decrease) in the carrying value of long-term debt, in relation to interest rate fair value hedge adjustment | 4 | ||
Foreign currency contracts | Prepaid Expenses and Other Current Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives Designated as Hedging Instruments, Assets, at Fair Value | 45 | 400 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 20 | 284 | |
Foreign currency contracts | Other assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives Designated as Hedging Instruments, Assets, at Fair Value | 79 | 60 | |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 27 | 0 | |
Foreign currency contracts | Accounts payable and accrued expenses | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 69 | 40 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 69 | 60 | |
Foreign currency contracts | Other liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 9 | 54 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 28 | 16 | |
Foreign currency contracts | Liabilities held for sale - discontinued operations [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 8 | 0 | |
Commodity contracts | Prepaid Expenses and Other Current Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 25 | 27 | |
Commodity contracts | Other assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 1 | 1 | |
Commodity contracts | Accounts payable and accrued expenses | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 0 | 1 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 7 | 16 | |
Commodity contracts | Other liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 0 | 1 | |
Commodity contracts | Liabilities held for sale - discontinued operations [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 4 | 0 | |
Interest rate contracts | Other assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives Designated as Hedging Instruments, Assets, at Fair Value | 52 | 105 | |
Interest rate contracts | Accounts payable and accrued expenses | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 30 | 36 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 0 | 8 | |
Interest rate contracts | Other liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivatives Designated as Hedging Instruments, Liabilities, at Fair Value | 39 | 47 | |
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 0 | 1 | |
Other Derivative Instruments | Prepaid Expenses and Other Current Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 8 | 4 | |
Other Derivative Instruments | Other assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 0 | 1 | |
Other Derivative Instruments | Accounts payable and accrued expenses | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 1 | 2 | |
Other Derivative Instruments | Other liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 1 | 5 | |
Cash Flow Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (188) | (37) | $ 835 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 501 | 572 | 625 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 6 | (9) | 13 |
Cash Flow Hedges | Foreign currency contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 4,068 | 6,074 | |
Cash Flow Hedges | Currency Swap [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 1,851 | 1,851 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (92) | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 10 years | ||
Cash Flow Hedges | Commodity contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 35 | 12 | |
Cash Flow Hedges | Interest Rate Swap [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 500 | 1,500 | |
Cash Flow Hedges | Interest expense | Foreign currency contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | 0 | $ 18 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (9) | (9) | (9) |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Cash Flow Hedges | Interest expense | Interest rate contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (22) | (126) | (153) |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (37) | (17) | (3) |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 2 | (2) | 1 |
Cash Flow Hedges | Income from Discontinued Operations [Member] | Foreign currency contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (3) | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | ||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | ||
Cash Flow Hedges | Income from Discontinued Operations [Member] | Commodity contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (5) | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | ||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | ||
Fair Value Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 1 | 14 | (24) |
Fair Value Hedges | Available-for-Sale Securities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 311 | 1,163 | |
Fair Value Hedges | Interest Rate Swap [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 8,121 | 6,158 | |
Fair Value Hedges | Interest expense | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (6) | 18 | (3) |
Fair Value Hedges | Interest expense | Interest rate contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (69) | 170 | (172) |
Net Investment Hedges | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 13,147 | 11,213 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (1,512) | 67 | 637 |
Net Investment Hedges | Foreign currency contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 0 | 100 | |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (7) | (237) | $ 661 |
CCEAG [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | (77) | ||
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 6,827 | 5,276 | |
Not Designated as Hedging Instrument [Member] | Commodity contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | $ 357 | $ 447 |
HEDGING TRANSACTIONS AND DERI64
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow Hedges | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | $ (188) | $ (37) | $ 835 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 501 | 572 | 625 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 6 | (9) | 13 |
Cash Flow Hedges | Interest rate contracts | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | (22) | (126) | (153) |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (37) | (17) | (3) |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 2 | (2) | 1 |
Cash Flow Hedges | Foreign currency contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 4,068 | 6,074 | |
Cash Flow Hedges | Foreign currency contracts | Net operating revenues | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | (226) | 69 | 949 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 443 | 567 | 618 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 1 | (3) | 12 |
Cash Flow Hedges | Foreign currency contracts | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | 0 | 0 | 18 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (9) | (9) | (9) |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Cash Flow Hedges | Foreign currency contracts | Income from Discontinued Operations [Member] | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | (3) | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | ||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | ||
Cash Flow Hedges | Foreign currency contracts | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | 92 | 13 | (38) |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 107 | (3) | (40) |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 3 | (3) | 0 |
Cash Flow Hedges | Foreign currency contracts | Cost of goods sold | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | (23) | 8 | 60 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (2) | 35 | 62 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | (1) | 0 |
Cash Flow Hedges | Currency Swap [Member] | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 1,851 | 1,851 | |
Gain (Loss) Recognized in OCI | (92) | ||
Cash Flow Hedges | Commodity contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 35 | 12 | |
Cash Flow Hedges | Commodity contracts | Income from Discontinued Operations [Member] | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | (5) | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | ||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | ||
Cash Flow Hedges | Commodity contracts | Cost of goods sold | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in OCI | (1) | (1) | (1) |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (1) | (1) | (3) |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 |
Fair Value Hedges | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 1 | 14 | (24) |
Fair Value Hedges | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (6) | 18 | (3) |
Fair Value Hedges | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 7 | (4) | (21) |
Fair Value Hedges | Interest rate contracts | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (69) | 170 | (172) |
Fair Value Hedges | Foreign currency contracts | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (37) | 69 | 110 |
Fair Value Hedges | Available-for-Sale Securities | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 311 | 1,163 | |
Fair Value Hedges | Available-for-Sale Securities | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 44 | (73) | (131) |
Fair Value Hedges | Fixed Rate Debt | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 63 | (152) | 169 |
Net Investment Hedges | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 13,147 | 11,213 | |
Gain (Loss) Recognized in OCI | (1,512) | 67 | 637 |
Net Investment Hedges | Foreign currency contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 0 | 100 | |
Gain (Loss) Recognized in OCI | (7) | (237) | 661 |
Net Investment Hedges | Foreign currency denominated debt [Domain] | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 13,147 | 11,113 | |
Gain (Loss) Recognized in OCI | (1,505) | 304 | (24) |
CCEAG [Member] | |||
Gains and (losses) related to derivative instruments | |||
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax | (77) | ||
Derivatives Not Designated as Hedging Instruments | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Gain (Loss) on Derivative, Net | 121 | (156) | (334) |
Derivatives Not Designated as Hedging Instruments | Interest rate contracts | Interest expense | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | (39) | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 6,827 | 5,276 | |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | Net operating revenues | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Gain (Loss) on Derivative, Net | (30) | (45) | 41 |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Gain (Loss) on Derivative, Net | 73 | (168) | (92) |
Derivatives Not Designated as Hedging Instruments | Foreign currency contracts | Cost of goods sold | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Gain (Loss) on Derivative, Net | (1) | 4 | 3 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Notional Amount | 357 | 447 | |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Net operating revenues | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Gain (Loss) on Derivative, Net | 16 | 10 | (16) |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Cost of goods sold | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Gain (Loss) on Derivative, Net | 15 | 75 | (209) |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | Selling, general and administrative expenses | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Gain (Loss) on Derivative, Net | 1 | 6 | (25) |
Derivatives Not Designated as Hedging Instruments | Other Derivative Instruments | Other income (loss) - net | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Gain (Loss) on Derivative, Net | 1 | (15) | (37) |
Derivatives Not Designated as Hedging Instruments | Other Derivative Instruments | Selling, general and administrative expenses | |||
Gains and (losses) related to derivative instruments | |||
Derivative, Gain (Loss) on Derivative, Net | $ 46 | $ 16 | $ 1 |
EQUITY METHOD INVESTMENTS (Deta
EQUITY METHOD INVESTMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 17.00% | ||
Investment in equity method investees in excess of the proportionate share of net assets | $ 9,932 | ||
Summarized financial information - Income statement | |||
Equity income (loss) - net | 1,071 | $ 835 | $ 489 |
Summarized financial information - Balance sheet | |||
Equity Method Investments | 20,856 | 16,260 | |
Summary of significant transactions with equity method investees | |||
Difference between quoted market value and carrying value | 8,504 | ||
Other Equity Method Investees [Member] | |||
Summarized financial information - Income statement | |||
Net operating revenues | 73,339 | 58,054 | 47,498 |
Cost of goods sold | 42,867 | 34,338 | 28,749 |
Gross profit | 30,472 | 23,716 | 18,749 |
Operating income | 7,577 | 5,652 | 4,483 |
Consolidated net income | 4,545 | 2,967 | 2,299 |
Less: Net income attributable to noncontrolling interests | 120 | 78 | 65 |
Net income attributable to common shareowners | 4,425 | 2,889 | 2,234 |
Summarized financial information - Balance sheet | |||
Current Assets | 25,023 | 19,586 | |
Noncurrent assets | 66,578 | 58,529 | |
Total assets | 91,601 | 78,115 | |
Current liabilities | 17,890 | 16,125 | |
Noncurrent liabilities | 29,986 | 25,610 | |
Total liabilities | 47,876 | 41,735 | |
Equity attributable to shareowners of investees | 41,773 | 35,204 | |
Equity attributable to noncontrolling interests | 1,952 | 1,176 | |
Total Equity | 43,725 | 36,380 | |
Equity Method Investments | 20,856 | 16,260 | |
Other Equity Method Investments | |||
Summary of significant transactions with equity method investees | |||
Concentrate, syrup and finished product sales | 14,144 | 10,495 | 8,984 |
Purchases of finished product | 1,298 | 1,857 | 1,131 |
Marketing payments made by us | $ 930 | $ 946 | $ 1,380 |
CCEP [Member] | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 18.00% | ||
Summary of significant transactions with equity method investees | |||
Difference between quoted market value and carrying value | $ 196 | ||
Monster Beverage Corporation [Member] | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 18.00% | ||
AC Bebidas [Member] | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 20.00% | ||
Coca-Cola FEMSA | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 28.00% | ||
Coca-Cola Hellenic | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 23.00% | ||
Coca-Cola Bottlers Japan [Member] | |||
Equity method investments, disclosures | |||
Ownership interest in Equity investee (as a percent) | 17.00% |
EQUITY METHOD INVESTMENTS (De66
EQUITY METHOD INVESTMENTS (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Difference between quoted market value and carrying value | $ 8,504 | ||
Total net receivables due | 2,053 | $ 1,696 | |
Dividends received | 443 | $ 386 | $ 367 |
Retained Earnings, Undistributed Earnings from Equity Method Investees | 4,471 | ||
CCEP [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Difference between quoted market value and carrying value | $ 196 |
PROPERTY, PLANT AND EQUIPMENT67
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 16,449 | $ 21,256 | |
Less accumulated depreciation | 8,246 | 10,621 | |
Property, plant and equipment-net | 8,203 | 10,635 | $ 12,571 |
Land | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 334 | 589 | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | 3,917 | 4,574 | |
Machinery equipment and vehicle fleet | |||
Property, Plant and Equipment | |||
Property, plant and equipment, gross | $ 12,198 | $ 16,093 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible assets | $ 16,374 | $ 20,530 | |
Definite-lived Intangible Assets | |||
Gross carrying amount | 694 | 1,286 | |
Accumulated amortization | (432) | (688) | |
Net definite-lived intangible assets | 262 | 598 | |
Total amortization expense for intangible assets subject to amortization | 68 | 139 | $ 156 |
Amortization Expense | |||
2,018 | 57 | ||
2,019 | 44 | ||
2,020 | 38 | ||
2,021 | 28 | ||
2,022 | 28 | ||
Trademarks | |||
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible assets | 6,729 | 6,097 | |
Definite-lived Intangible Assets | |||
Gross carrying amount | 182 | 228 | |
Accumulated amortization | (73) | (64) | |
Net definite-lived intangible assets | 109 | 164 | |
Bottlers' Franchise Rights | |||
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible assets | 138 | 3,676 | |
Definite-lived Intangible Assets | |||
Gross carrying amount | 213 | 487 | |
Accumulated amortization | (152) | (381) | |
Net definite-lived intangible assets | 61 | 106 | |
Goodwill | |||
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible assets | 9,401 | 10,629 | |
Other | |||
Indefinite-lived Intangible Assets | |||
Indefinite-lived intangible assets | 106 | 128 | |
Definite-lived Intangible Assets | |||
Gross carrying amount | 94 | 179 | |
Accumulated amortization | (64) | (58) | |
Net definite-lived intangible assets | 30 | 121 | |
Customer Relationships | |||
Definite-lived Intangible Assets | |||
Gross carrying amount | 205 | 392 | |
Accumulated amortization | (143) | (185) | |
Net definite-lived intangible assets | $ 62 | $ 207 |
INTANGIBLE ASSETS (Details 2)
INTANGIBLE ASSETS (Details 2) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill by operating segment | ||
Balance as of January 1 | $ 10,629 | $ 11,289 |
Effect of foreign currency translation | 87 | (33) |
Goodwill, Acquired During Period | 56 | 6 |
Adjustments related to the finalization of purchase accounting | 18 | 10 |
Impairment | (390) | (10) |
Divestitures, deconsolidations and other | (999) | (633) |
Balance as of December 31 | 9,401 | 10,629 |
Europe, Middle East and Africa | ||
Goodwill by operating segment | ||
Balance as of January 1 | 628 | 638 |
Effect of foreign currency translation | 75 | (10) |
Goodwill, Acquired During Period | 0 | 0 |
Adjustments related to the finalization of purchase accounting | 0 | 0 |
Impairment | 0 | 0 |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 703 | 628 |
Latin America | ||
Goodwill by operating segment | ||
Balance as of January 1 | 117 | 123 |
Effect of foreign currency translation | 8 | (6) |
Goodwill, Acquired During Period | 25 | 0 |
Adjustments related to the finalization of purchase accounting | 0 | 0 |
Impairment | 0 | 0 |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 150 | 117 |
North America | ||
Goodwill by operating segment | ||
Balance as of January 1 | 8,321 | 8,311 |
Effect of foreign currency translation | 0 | 0 |
Goodwill, Acquired During Period | 28 | 0 |
Adjustments related to the finalization of purchase accounting | 0 | 10 |
Impairment | 0 | 0 |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 8,349 | 8,321 |
Asia Pacific | ||
Goodwill by operating segment | ||
Balance as of January 1 | 128 | 133 |
Effect of foreign currency translation | (1) | (11) |
Goodwill, Acquired During Period | 0 | 6 |
Adjustments related to the finalization of purchase accounting | 18 | 0 |
Impairment | 0 | 0 |
Divestitures, deconsolidations and other | 0 | 0 |
Balance as of December 31 | 145 | 128 |
Bottling Investments | ||
Goodwill by operating segment | ||
Balance as of January 1 | 1,435 | 2,084 |
Effect of foreign currency translation | 5 | (6) |
Goodwill, Acquired During Period | 3 | 0 |
Adjustments related to the finalization of purchase accounting | 0 | 0 |
Impairment | (390) | (10) |
Divestitures, deconsolidations and other | (999) | (633) |
Balance as of December 31 | $ 54 | $ 1,435 |
ACCOUNTS PAYABLE AND ACCRUED 70
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES Disclosure [Abstract] | ||
Accrued marketing | $ 2,108 | $ 2,186 |
Trade accounts payable | 2,288 | 2,682 |
Other accrued expenses | 3,071 | 2,593 |
Accrued compensation | 854 | 857 |
Deferred Tax Liabilities | 0 | 692 |
Sales, payroll and other taxes | 347 | 372 |
Container deposits | 80 | 108 |
Accounts payable and accrued expenses | $ 8,748 | $ 9,490 |
DEBT AND BORROWING ARRANGEMEN71
DEBT AND BORROWING ARRANGEMENTS (Details) SFr in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2016USD ($) | Dec. 31, 2015 | |
Short-term Debt [Line Items] | ||||
Commercial paper borrowings outstanding | $ 12,931 | $ 12,330 | ||
Weighted-average interest rates for commercial paper outstanding (as a percent) | 1.40% | 0.80% | ||
Line of Credit Facility | $ 9,199 | |||
Lines of credit for general corporate purposes | 7,295 | |||
International | ||||
Short-term Debt [Line Items] | ||||
Line of Credit Facility | $ 274 | |||
Total principal notes due October 2, 2017 [Domain] | ||||
Short-term Debt [Line Items] | ||||
Extinguishment of long-term debt | SFr | SFr 200 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.00% | 0.00% | ||
Total principal notes dues October 27, 2017 [Domain] | ||||
Short-term Debt [Line Items] | ||||
Extinguishment of long-term debt | $ 750 | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.875% | 0.875% | ||
Total principal notes due November 16, 2017 [Domain] | ||||
Short-term Debt [Line Items] | ||||
Basis spread on variable rate used (as a percent) | 0.05% | 0.05% | 0.05% | |
Extinguishment of long-term debt | $ 225 |
DEBT AND BORROWING ARRANGEMEN72
DEBT AND BORROWING ARRANGEMENTS (Details 2) € in Millions, SFr in Millions, AUD in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017CHF (SFr) | Dec. 31, 2016USD ($) | Dec. 31, 2016AUD | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015CHF (SFr) | |
Long-term debt | |||||||||
Issuance of long term debt | $ 1,000 | € 2,500 | $ 3,725 | AUD 1,000 | € 500 | $ 4,000 | € 8,500 | SFr 1,325 | |
Carrying Value of Extinguished Long-Term Debt | 417 | ||||||||
Carrying Value of Long-Term Debt | 3,974 | ||||||||
Gains (Losses) on Extinguishment of Debt | (38) | (320) | |||||||
Long-term Debt, Fair Value | 35,169 | 33,752 | |||||||
Long-term Debt | $ 34,480 | $ 33,211 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 1.80% | 1.70% | |||||||
Less current portion | $ 3,298 | $ 3,527 | |||||||
Long-term debt non current | 31,182 | 29,684 | |||||||
Total interest paid | 757 | 663 | $ 515 | ||||||
Increase (Decrease) in Carrying Value of Long-term Debt Interest Rate Fair Value Hedge Adjustment | 13 | $ 97 | |||||||
Maturities of Long-Term Debt | |||||||||
2,018 | 3,298 | ||||||||
2,019 | 5,209 | ||||||||
2,020 | 4,298 | ||||||||
2,021 | 2,930 | ||||||||
2,022 | 2,480 | ||||||||
Notes due on May 25, 2022 [Member] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | $ 500 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.20% | ||||||||
Notes due on May 25, 2027 [Member] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | $ 500 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.90% | ||||||||
Notes due on March 8, 2019 [Member] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | € | € 1,500 | ||||||||
Variable interest rate used | P3M | P3M | P3M | ||||||
Basis spread on variable rate used (as a percent) | 0.25% | 0.25% | 0.25% | ||||||
Notes due on March 9, 2021 [Member] [Member] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | € | € 500 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.00% | ||||||||
Notes due on March 8, 2024 [Member] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | € | € 500 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.50% | ||||||||
Total principal notes due June 9, 2020 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | AUD | 450 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.60% | ||||||||
Total principal notes due June 11, 2024 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | AUD | AUD 550 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.25% | ||||||||
Total principal notes due November 16, 2017 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | $ 225 | ||||||||
Variable interest rate used | P3M | P3M | P3M | P3M | P3M | P3M | |||
Basis spread on variable rate used (as a percent) | 0.05% | 0.05% | 0.05% | 0.05% | 0.05% | 0.05% | |||
Extinguishment of long-term debt | $ 225 | ||||||||
Notes due August 15, 2019 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.50% | ||||||||
Extinguishment of long-term debt | $ 95.6 | ||||||||
Notes due February 1, 2022 [Member] [Domain] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 8.50% | ||||||||
Extinguishment of long-term debt | $ 38.6 | ||||||||
Notes due September 15, 2022 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 8.00% | ||||||||
Extinguishment of long-term debt | $ 11.7 | ||||||||
Notes due September 15, 2023 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 6.75% | ||||||||
Extinguishment of long-term debt | $ 36.5 | ||||||||
Notes due October 1, 2026 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.00% | ||||||||
Extinguishment of long-term debt | $ 9.9 | ||||||||
Notes due November 15, 2026 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 6.95% | ||||||||
Extinguishment of long-term debt | $ 53.8 | ||||||||
Notes due September 15, 2028 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 6.75% | ||||||||
Extinguishment of long-term debt | $ 41.3 | ||||||||
Notes due October 15, 2036 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 6.70% | ||||||||
Extinguishment of long-term debt | $ 32 | ||||||||
Notes due March 18, 2037 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.71% | ||||||||
Extinguishment of long-term debt | $ 3.4 | ||||||||
Notes due January 15, 2038 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 6.75% | ||||||||
Extinguishment of long-term debt | $ 24.3 | ||||||||
Notes due May 15, 2098 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.00% | ||||||||
Extinguishment of long-term debt | $ 4.7 | ||||||||
Total principal notes due May 30, 2019 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | $ 1,000 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.375% | ||||||||
Total principal notes due September 1, 2021 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | $ 1,000 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.55% | ||||||||
Total principal notes due June 1, 2026 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | $ 500 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.55% | ||||||||
Total principal notes due September 1, 2026 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | $ 1,000 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.25% | ||||||||
Total principal notes due September 2, 2036 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | € | € 500 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.10% | ||||||||
Total principal notes due September 1, 2016 [Domain] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.80% | ||||||||
Total principal variable notes due November 1, 2016 [Domain] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.75% | ||||||||
Variable interest rate used | P3M | P3M | P3M | ||||||
Basis spread on variable rate used (as a percent) | 0.10% | 0.10% | 0.10% | ||||||
Total principal notes due October 2, 2017 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | SFr | SFr 200 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.00% | 0.00% | 0.00% | 0.00% | |||||
Extinguishment of long-term debt | SFr | SFr 200 | ||||||||
Total principal notes due December 22, 2022 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | SFr | SFr 550 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.25% | 0.25% | 0.25% | ||||||
Total principal notes due October 2, 2028 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | SFr | SFr 575 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.00% | 1.00% | 1.00% | ||||||
Total principal notes due March 9, 2017 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | € | € 2,000 | ||||||||
Variable interest rate used | P3M | P3M | P3M | P3M | P3M | P3M | |||
Basis spread on variable rate used (as a percent) | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% | |||
Extinguishment of long-term debt | € | € 2,000 | ||||||||
Notes due August 1, 2017 [Domain] | |||||||||
Long-term debt | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.125% | ||||||||
Extinguishment of long-term debt | $ 206 | ||||||||
Total principal notes due September 9, 2019 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | € | € 2,000 | ||||||||
Variable interest rate used | P3M | P3M | P3M | ||||||
Basis spread on variable rate used (as a percent) | 0.23% | 0.23% | 0.23% | ||||||
Total principal notes due March 9, 2023 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | € | € 1,500 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.75% | 0.75% | 0.75% | ||||||
Total principal notes due March 9, 2027 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | € | € 1,500 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.125% | 1.125% | 1.125% | ||||||
Total principal notes due March 9, 2035 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | € | € 1,500 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.625% | 1.625% | 1.625% | ||||||
Total principal notes dues October 27, 2017 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | $ 750 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.875% | 0.875% | 0.875% | 0.875% | |||||
Extinguishment of long-term debt | $ 750 | ||||||||
Total principal notes due October 27, 2020 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | $ 1,500 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.875% | 1.875% | 1.875% | ||||||
Total principal notes due October 27, 2025 [Domain] | |||||||||
Long-term debt | |||||||||
Issuance of long term debt | $ 1,750 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.875% | 2.875% | 2.875% | ||||||
U.S. dollar notes due 2018-2093 | |||||||||
Long-term debt | |||||||||
Long-term Debt | $ 16,854 | $ 16,922 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 2.30% | 2.00% | |||||||
U.S. dollar debentures due 2018-2098 | |||||||||
Long-term debt | |||||||||
Long-term Debt | $ 1,559 | $ 2,111 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 5.50% | 4.10% | |||||||
U.S. dollar zero coupon notes due in 2020 | |||||||||
Long-term debt | |||||||||
Unamortized discounts | $ 13 | $ 18 | |||||||
Long-term Debt | $ 158 | $ 153 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 8.40% | 8.40% | |||||||
Australian dollar notes due 2020-2024 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt | $ 760 | $ 741 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 2.10% | 1.20% | |||||||
Euro notes due 2019 - 2036 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt | $ 13,663 | $ 11,567 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 0.70% | 0.70% | |||||||
Swiss franc notes due 2022 - 2028 [Member] | |||||||||
Long-term debt | |||||||||
Long-term Debt | $ 1,148 | $ 1,304 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 3.00% | 2.50% | |||||||
Other, due through 2098 | |||||||||
Long-term debt | |||||||||
Long-term Debt | $ 325 | $ 316 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 3.40% | 3.50% | |||||||
Other, due through 2031 | |||||||||
Long-term debt | |||||||||
Long-term Debt | $ 165 | ||||||||
Assumed long term debt | Coca-Cola Enterprises Inc. | |||||||||
Long-term debt | |||||||||
Fair value adjustment related to the debt assumed | $ 263 | $ 361 | |||||||
Fair value adjustments weighted-average amortization period (in years) | 24 | 24 | 24 | ||||||
upon maturity | |||||||||
Long-term debt | |||||||||
Extinguishment of long-term debt | $ 3,500 | ||||||||
upon maturity | Total principal notes due September 1, 2016 [Domain] | |||||||||
Long-term debt | |||||||||
Extinguishment of long-term debt | 1,654 | ||||||||
upon maturity | Total principal variable notes due November 1, 2016 [Domain] | |||||||||
Long-term debt | |||||||||
Extinguishment of long-term debt | 500 | ||||||||
upon maturity | Total principal fixed notes due November 1, 2016 [Domain] [Domain] | |||||||||
Long-term debt | |||||||||
Extinguishment of long-term debt | $ 500 | ||||||||
Prior to Maturity | |||||||||
Long-term debt | |||||||||
Extinguishment of long-term debt | 2,039 | ||||||||
Gains (Losses) on Extinguishment of Debt | (320) | ||||||||
Prior to Maturity | Notes due on November 15 2017 [Domain] | |||||||||
Long-term debt | |||||||||
Extinguishment of long-term debt | $ 1,148 | ||||||||
Extinguishment of Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.35% | 5.35% | 5.35% | ||||||
Prior to Maturity | Notes due on March 15 2019 [Domain] [Domain] | |||||||||
Long-term debt | |||||||||
Extinguishment of long-term debt | $ 891 | ||||||||
Extinguishment of Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.875% | 4.875% | 4.875% |
COMMITMENTS AND CONTINGENCIES73
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Oct. 02, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Workforce (Unaudited) | ||||
Number of associates | 61,800 | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2,018 | $ 130 | $ 130 | ||
2,019 | 85 | 85 | ||
2,020 | 69 | 69 | ||
2,021 | 59 | 59 | ||
2,022 | 52 | 52 | ||
Thereafter | 147 | 147 | ||
Total minimum operating lease payments | 542 | $ 542 | ||
North America | ||||
Workforce (Unaudited) | ||||
Collective bargaining agreements period, low end of range (in years) | 3 years | |||
Collective bargaining agreements period, high end of range (in years) | 5 years | |||
United States | ||||
Workforce (Unaudited) | ||||
Number of associates | 12,400 | |||
North America | ||||
Workforce (Unaudited) | ||||
Number of associates covered by collective bargaining agreements | 3,700 | |||
Guarantees of indebtedness owed by third parties | ||||
Guarantees | ||||
Guarantees of indebtedness owed by third parties | 609 | $ 609 | ||
Guarantees of indebtedness related to VIEs | 256 | 256 | ||
Risk Management Programs | ||||
Risk Management Programs | ||||
Self-insurance reserves | 480 | $ 480 | $ 527 | |
Tax Years 2007-2009 [Member] | ||||
Legal Contingencies | ||||
IRS Claim | $ 3,300 | |||
Net Increase (Decrease) in Sales and Transfer Prices and Production Costs | 385 | |||
Related to Licensee in Mexico [Member] | Tax Years 2007-2009 [Member] | ||||
Legal Contingencies | ||||
IRS Amended Claim | 138 | |||
Related to Transfer Pricing Adjustment [Member] | Tax Years 2007-2009 [Member] | ||||
Legal Contingencies | ||||
IRS Amended Claim | $ 135 |
STOCK COMPENSATION PLANS (Detai
STOCK COMPENSATION PLANS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
STOCK COMPENSATION PLANS [Abstract] | |||
Total stock-based compensation expense | $ 219 | $ 258 | $ 236 |
Total income tax benefit recognized in consolidated statements of income for share-based compensation arrangements | 44 | $ 71 | $ 65 |
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted | $ 286 | ||
Weighted-average period over which the total unrecognized compensation cost is expected to be recognized (in years) | 3 years | ||
Weighted-average assumptions used in the Black Scholes Merton option pricing model | |||
Fair value of options at grant date (in dollars per share) | $ 3.98 | $ 4.17 | $ 4.38 |
Dividend yield (as a percent) | 3.60% | 3.20% | 3.10% |
Expected volatility (as a percent) | 15.50% | 16.00% | 16.00% |
Risk-free interest rate (as a percent) | 2.20% | 1.50% | 1.80% |
Expected term of the option (in years) | 6 years | 6 years | 6 years |
Share-based compensation disclosure | |||
Granted (in shares) | 9,000,000 | ||
Exercised (in shares) | (53,000,000) | (50,000,000) | (44,000,000) |
Forfeited/expired (in shares) | (3,000,000) | ||
Outstanding on December 31 | 173,000,000 | 220,000,000 | |
Expected to vest | 171,000,000 | ||
Granted, Weighted-Average Exercise Price (in dollars per share) | $ 40.89 | ||
Exercised, Weighted-Average Exercise Price (in dollars per share) | 30.28 | ||
Forfeited/expired, Weighted-Average Exercise Price (in dollars per share) | 38.34 | ||
Outstanding on December 31, Weighted-Average Exercise Price (in dollars per share) | 35.02 | $ 33.70 | |
Expected to vest, Weighted-Average Exercise Price (in dollars per share) | $ 34.96 | ||
Expected to Vest, Weighted Average Remaining Contractual Life (in years) | 4 years 8 months 53 days | ||
Outstanding on December 31, 2017, Weighted-Average Remaining Contractual Life (in years) | 4 years 8 months 64 days | ||
Outstanding on December 31, 2017, Aggregate Intrinsic Value (in dollars) | $ 1,879 | ||
Expected to vest, Aggregate Intrinsic Value (in dollars) | $ 1,869 | ||
Exercisable on December 31, 2017 | 142,000,000 | ||
Exercisable on December 31, 2017 weighted average exercise price (in dollars per share) | $ 33.89 | ||
Exercisable on December 31, 2017, Weighted-Average Remaining Contractual Life (in years) | 4 years 2 months 36 days | ||
Exercisable on December 31, 2017, Aggregate Intrinsic Value (in dollars) | $ 1,700 | ||
Total intrinsic value of options exercised | $ 744 | $ 787 | $ 594 |
Number of Shares Available for Grant (in shares) | 2,700,000 | ||
Vesting period of stock-based awards (in years) | 4 years | ||
Summary disclosures | |||
Outstanding performance share units at the Threshold Award Level (in shares) | 2,200,000 | ||
Outstanding performance share units at the Maximum Award Level (in shares) | 15,400,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other-than-Options Paid in Cash Equivalent in Period Value | $ 0.4 | $ 1.9 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 3 years | ||
CCE's North American business | |||
Share-based compensation disclosure | |||
Outstanding on December 31 | 300,000 | ||
Outstanding on December 31, Weighted-Average Exercise Price (in dollars per share) | $ 12.86 | ||
Expiration period of stock-based awards (in years) | 10 years | ||
Vesting period of stock-based awards (in years) | 3 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based compensation disclosure | |||
Vesting period of stock-based awards (in years) | 5 years | ||
Summary disclosures | |||
Canceled/forfeited (in shares) | (430,000) | ||
Outstanding on January 1, 2017 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Conversions in Period | 7,181,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Conversions, Weighted Average Grant Date Fair Value | $ 32.33 | ||
Canceled/forfeited, Weighted-Average Grant-Date Fair Value (in dollars per share) | 32.30 | ||
Outstanding on December 31 | $ 32.35 | $ 0 | |
Restricted shares units vested and released (in shares) | (3,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 32.35 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 6,748,000 | 0 | |
2014 Equity Plan | |||
Share-based compensation disclosure | |||
Common stock was approved to be issued or transferred through the grant of stock options (in shares) | 500,000,000 | ||
Number of Shares Available for Grant (in shares) | 413,600,000 | ||
Stock options granted from 1999 through July 2003 | |||
Stock-based compensation awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 15 years | ||
Stock options granted in December 2003 and thereafter | |||
Stock-based compensation awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Performance share units [Member] | |||
Summary disclosures | |||
Granted | 4,133,000 | ||
Paid in cash equivalent (in shares) | (11,052) | (52,545) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other Than Options, Paid in Cash Equivalent in Period, Weighted-average Grant Date Fair Value | $ 34.15 | ||
Canceled/forfeited (in shares) | (832,000) | ||
Outstanding on December | 8,212,000 | 9,773,000 | |
Outstanding on January 1, 2017 | $ 35.77 | ||
Grants in Period, Weighted Average Grant Date Fair Value | $ 34.75 | $ 39.70 | $ 37.99 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Conversions in Period | (4,851,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Conversions, Weighted Average Grant Date Fair Value | $ 32.35 | ||
Canceled/forfeited, Weighted-Average Grant-Date Fair Value (in dollars per share) | 37.20 | ||
Outstanding on December 31 | $ 37.14 | 35.77 | |
Performance share units [Member] | Performance Period 2015 to 2017 [Member] | |||
Summary disclosures | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2,088,000 | ||
Performance share units [Member] | Performance Period 2016 to 2018 [Member] | |||
Summary disclosures | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2,985,000 | ||
Performance share units [Member] | Performance Period 2017 to 2019 [Member] | |||
Summary disclosures | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 3,139,000 | ||
Time-Based Restricted Stock Unit Awards | |||
Summary disclosures | |||
Granted | 2,994,000 | ||
Canceled/forfeited (in shares) | (50,000) | ||
Outstanding on January 1, 2017 | $ 37.54 | ||
Grants in Period, Weighted Average Grant Date Fair Value | 41.62 | ||
Canceled/forfeited, Weighted-Average Grant-Date Fair Value (in dollars per share) | 38.35 | ||
Outstanding on December 31 | $ 40.99 | $ 37.54 | |
Restricted shares units vested and released (in shares) | (179,000) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 37.36 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 3,534,660 | 770,000 | |
Restricted stock award plan [Member] | |||
Share-based compensation disclosure | |||
Number of Shares Available for Grant (in shares) | 200,000 | ||
Summary disclosures | |||
Restricted shares units vested and released (in shares) | (3,037) | (7,101) | (130,017) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 1 | $ 1 | $ 5 |
PENSION AND OTHER POSTRETIREM75
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension benefits | |||
Changes in benefit obligations | |||
Benefit obligation at January 1 | $ 9,428 | $ 9,159 | |
Service cost | 197 | 239 | $ 265 |
Interest cost | 306 | 319 | |
Foreign currency exchange rate changes | 150 | (38) | |
Amendments | 1 | 17 | |
Actuarial loss (gain) | 420 | 441 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (341) | (346) | |
Divestitures | (7) | (16) | |
Settlements | (832) | (384) | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (10) | 0 | |
Special termination benefits | 106 | 37 | |
Other | 37 | 0 | |
Benefit obligation at December 31 | 9,455 | 9,428 | 9,159 |
Fair value of plan assets | |||
Fair value of plan assets at January 1 | 8,371 | 7,689 | |
Actual return on plan assets | 1,139 | 690 | |
Employer contributions | 181 | 718 | |
Foreign currency exchange rate changes | 196 | (70) | |
Benefits Paid | (285) | (270) | |
Divestitures | 0 | (16) | |
Settlements | (794) | (374) | |
Other | 35 | 4 | |
Fair value of plan assets at December 31 | 8,843 | 8,371 | 7,689 |
Net liability recognized | (612) | (1,057) | |
Accumulated benefit obligation for pension plans | 9,175 | 9,141 | |
Pension and other benefit amounts recognized in our consolidated balance sheets | |||
Noncurrent asset | 921 | 572 | |
Current liability | (72) | (71) | |
Long-term liability | (1,461) | (1,558) | |
Net liability recognized | (612) | (1,057) | |
Projected benefit obligations in excess of the fair value of plan assets | |||
Projected benefit obligation | 7,833 | 7,907 | |
Fair value of plan assets | 6,330 | 6,303 | |
Accumulated benefit obligations in excess of the fair value of plan assets | |||
Accumulated benefit obligation | 7,614 | 7,668 | |
Fair value of plan assets | 6,305 | 6,257 | |
Other benefits | |||
Changes in benefit obligations | |||
Benefit obligation at January 1 | 962 | 940 | |
Service cost | 17 | 22 | 27 |
Interest cost | 29 | 31 | |
Foreign currency exchange rate changes | 4 | (2) | |
Amendments | (21) | (4) | |
Actuarial loss (gain) | (28) | 20 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (71) | (64) | |
Divestitures | (66) | (2) | |
Settlements | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (48) | (17) | |
Special termination benefits | 0 | 2 | |
Other | 4 | 36 | |
Benefit obligation at December 31 | 782 | 962 | 940 |
Fair value of plan assets | |||
Fair value of plan assets at January 1 | 255 | 245 | |
Actual return on plan assets | 31 | 8 | |
Employer contributions | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Benefits Paid | (3) | (3) | |
Divestitures | 0 | 0 | |
Settlements | 0 | 0 | |
Other | 5 | 5 | |
Fair value of plan assets at December 31 | 288 | 255 | $ 245 |
Net liability recognized | (494) | (707) | |
Pension and other benefit amounts recognized in our consolidated balance sheets | |||
Noncurrent asset | 0 | 0 | |
Current liability | (21) | (23) | |
Long-term liability | (473) | (684) | |
Net liability recognized | $ (494) | (707) | |
United States | |||
Defined Benefit Plan Disclosure | |||
Portion of projected pension benefit obligation represented by the defined benefit plan (as a percent) | 64.00% | ||
Portion of projected pension plan assets represented by the defined benefit plan (as a percent) | 65.00% | ||
Fair value of plan assets | |||
Fair value of plan assets at January 1 | $ 6,061 | ||
Fair value of plan assets at December 31 | $ 6,028 | $ 6,061 |
PENSION AND OTHER POSTRETIREM76
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 8,843 | $ 8,371 | $ 7,689 |
Defined Benefit Plan, Plan Assets, Benefits Paid | 56 | 76 | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 288 | 255 | $ 245 |
Defined Benefit Plan, Plan Assets, Benefits Paid | 68 | 61 | |
Cash and cash equivalents | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 691 | 402 | |
Cash and cash equivalents | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 78 | 2 | |
Equity securities U.S.-based companies | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 2,097 | 1,827 | |
Equity securities U.S.-based companies | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 96 | 116 | |
Equity securities International-based companies | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 1,465 | 939 | |
Equity securities International-based companies | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 8 | 8 | |
Government bonds | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 374 | 526 | |
Government bonds | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 2 | 3 | |
Corporate bonds and debt securities | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 827 | 996 | |
Corporate bonds and debt securities | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 7 | 6 | |
Mutual, pooled and commingled funds | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 981 | 1,133 | |
Mutual, pooled and commingled funds | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 80 | 103 | |
Hedge funds/limited partnerships | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 983 | 1,213 | |
Hedge funds/limited partnerships | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 8 | 9 | |
Real estate | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 598 | 523 | |
Real estate | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 5 | 4 | |
Other | Pension benefits | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 827 | 812 | |
Other | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 4 | 4 | |
United States | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 6,028 | 6,061 | |
United States | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 454 | 229 | |
United States | Equity securities U.S.-based companies | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 1,427 | 1,208 | |
United States | Equity securities International-based companies | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 911 | 451 | |
United States | Government bonds | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 183 | 395 | |
United States | Corporate bonds and debt securities | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 785 | 854 | |
United States | Mutual, pooled and commingled funds | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 215 | 693 | |
United States | Hedge funds/limited partnerships | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 939 | 1,172 | |
United States | Real estate | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 596 | 521 | |
United States | Other | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 518 | 538 | |
Non-US [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 2,815 | 2,310 | |
Non-US [Member] | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 237 | 173 | |
Non-US [Member] | Equity securities U.S.-based companies | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 670 | 619 | |
Non-US [Member] | Equity securities International-based companies | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 554 | 488 | |
Non-US [Member] | Government bonds | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 191 | 131 | |
Non-US [Member] | Corporate bonds and debt securities | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 42 | 142 | |
Non-US [Member] | Mutual, pooled and commingled funds | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 766 | 440 | |
Non-US [Member] | Hedge funds/limited partnerships | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 44 | 41 | |
Non-US [Member] | Real estate | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | 2 | 2 | |
Non-US [Member] | Other | |||
Defined Benefit Plan Disclosure | |||
Fair Value of Plan Assets | $ 309 | $ 274 |
PENSION AND OTHER POSTRETIREM77
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details 3) | 12 Months Ended |
Dec. 31, 2017 | |
European and Canadian plans | |
Defined Benefit Plan Disclosure | |
Investment Strategy Allocation Targets For International Plans | 73.00% |
Target allocation, equity securities (as a percent) | 71.00% |
Target allocation, alternative investments (as a percent) | 19.00% |
Target allocation, fixed income securities (as a percent) | 10.00% |
United States | |
Defined Benefit Plan Disclosure | |
Maximum portion of plan assets for which an investment manager is responsible (as a percent) | 9.00% |
Target allocation, equity securities (as a percent) | 42.00% |
Target allocation, fixed-income securities (as a percent) | 30.00% |
Target allocation, alternative investments (as a percent) | 28.00% |
Investment in Company common stock (as a percent) | 2.00% |
United States | Global equities [Member] | |
Defined Benefit Plan Disclosure | |
Target allocation, equity securities (as a percent) | 60.00% |
Investment in Company common stock (as a percent) | 4.00% |
United States | Emerging market equities | |
Defined Benefit Plan Disclosure | |
Target allocation, equity securities (as a percent) | 16.00% |
United States | Domestic small- and mid-cap equities | |
Defined Benefit Plan Disclosure | |
Target allocation, equity securities (as a percent) | 24.00% |
United States | Long-duration bonds | |
Defined Benefit Plan Disclosure | |
Target allocation, fixed-income securities (as a percent) | 33.00% |
United States | Multi-strategy alternative credit managers | |
Defined Benefit Plan Disclosure | |
Target allocation, fixed-income securities (as a percent) | 67.00% |
Non-US [Member] | |
Defined Benefit Plan Disclosure | |
Investment Strategy Allocation Targets For International Plans | 27.00% |
Target allocation, alternative investments (as a percent) | 40.00% |
Target allocation, fixed income securities (as a percent) | 5.00% |
Target allocation, mutual, pooled and commingled funds (as a percent) | 55.00% |
PENSION AND OTHER POSTRETIREM78
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net periodic pension and other Postretirement benefit cost | |||
Corridor Approach for Amortizing Actuarial Gains and Losses | 10.00% | ||
Pension benefits | |||
Net periodic pension and other Postretirement benefit cost | |||
Service cost | $ 197 | $ 239 | $ 265 |
Interest cost | 306 | 319 | 379 |
Expected return on plan assets | (650) | (653) | (705) |
Amortization of prior service cost (credit) | 0 | (2) | (2) |
Amortization of actuarial loss | 175 | 183 | 199 |
Net periodic benefit cost | 28 | 86 | 136 |
Settlement charge | 228 | 118 | 149 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 4 | 0 | 0 |
Special termination benefits | 106 | 37 | 20 |
Defined Benefit Plan, Other Cost (Credit) | 2 | (3) | 0 |
Total cost recognized in the statement of income | 368 | 238 | 305 |
Changes in AOCI for our benefit plans, pretax | |||
Beginning balance in AOCI | (2,932) | (2,907) | |
Recognized prior service cost (credit) | 4 | (2) | |
Recognized net actuarial loss (gain) | 403 | 301 | |
Prior service credit (cost) arising in the current year | (1) | (17) | |
Net actuarial (loss) gain arising in the current year | 75 | (404) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Impact of Divestitures, Reclassification Adjustment from AOCI, before Tax | 0 | 64 | |
Foreign currency translation gain (loss) | (42) | 33 | |
Ending balance in AOCI | (2,493) | (2,932) | $ (2,907) |
Prior service credit (cost) | (10) | (14) | |
Net actuarial loss | (2,483) | $ (2,918) | |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year [Abstract] | |||
Amounts in AOCI expected to be recognized as component of net periodic pension cost in next fiscal year | 144 | ||
Amortization of prior service cost (credit) | (3) | ||
Amortization of actuarial loss | $ 147 | ||
Weighted average assumptions used in computing the benefit obligations | |||
Discount rate (as a percent) | 3.50% | 4.00% | |
Rate of increase in compensation levels (as a percent) | 3.50% | 3.75% | |
Weighted-average assumptions used in computing net periodic benefit cost | |||
Discount rate (as a percent) | 4.00% | 4.25% | 3.75% |
Rate of increase in compensation levels (as a percent) | 3.75% | 3.50% | 3.50% |
Expected long-term rate of return on plan assets (as a percent) | 8.00% | 8.25% | 8.25% |
Pension benefits | Impact of settlements [Member] | |||
Changes in AOCI for our benefit plans, pretax | |||
Recognized net actuarial loss (gain) | $ 228 | $ 118 | |
Other benefits | |||
Net periodic pension and other Postretirement benefit cost | |||
Service cost | 17 | 22 | $ 27 |
Interest cost | 29 | 31 | 37 |
Expected return on plan assets | (12) | (11) | (11) |
Amortization of prior service cost (credit) | (18) | (19) | (19) |
Amortization of actuarial loss | 8 | 7 | 10 |
Net periodic benefit cost | 24 | 30 | 44 |
Settlement charge | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | (79) | 0 | 0 |
Special termination benefits | 0 | 1 | 2 |
Defined Benefit Plan, Other Cost (Credit) | 0 | 23 | 0 |
Total cost recognized in the statement of income | (55) | 54 | 46 |
Changes in AOCI for our benefit plans, pretax | |||
Beginning balance in AOCI | (48) | (26) | |
Recognized prior service cost (credit) | (54) | (28) | |
Recognized net actuarial loss (gain) | (36) | 7 | |
Prior service credit (cost) arising in the current year | 21 | 4 | |
Net actuarial (loss) gain arising in the current year | 92 | (6) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Impact of Divestitures, Reclassification Adjustment from AOCI, before Tax | 0 | 0 | |
Foreign currency translation gain (loss) | (1) | 1 | |
Ending balance in AOCI | (26) | (48) | $ (26) |
Prior service credit (cost) | 36 | 69 | |
Net actuarial loss | (62) | $ (117) | |
Defined Benefit Plan, Expected Amortization, Next Fiscal Year [Abstract] | |||
Amounts in AOCI expected to be recognized as component of net periodic pension cost in next fiscal year | (10) | ||
Amortization of prior service cost (credit) | (14) | ||
Amortization of actuarial loss | $ 4 | ||
Weighted average assumptions used in computing the benefit obligations | |||
Discount rate (as a percent) | 3.50% | 4.00% | |
Weighted-average assumptions used in computing net periodic benefit cost | |||
Discount rate (as a percent) | 4.00% | 4.25% | 3.75% |
Expected long-term rate of return on plan assets (as a percent) | 4.75% | 4.75% | 4.75% |
Other benefits | Impact of curtailments [Member] | |||
Changes in AOCI for our benefit plans, pretax | |||
Recognized prior service cost (credit) | $ 36 | $ 9 | |
Recognized net actuarial loss (gain) | (43) | ||
Net actuarial (loss) gain arising in the current year | $ 45 | $ 17 | |
United States | |||
Weighted-average assumptions used in computing net periodic benefit cost | |||
Expected long-term rate of return on plan assets (as a percent) | 8.00% | ||
The 5-year annualized return on plan assets (as a percent) | 8.80% | ||
The 10-year annualized return on plan assets (as a percent) | 5.40% | ||
The 15-year annualized return on plan assets (as a percent) | 8.50% | ||
Annualized return on plan assets since inception (as a percent) | 10.70% |
PENSION AND OTHER POSTRETIREM79
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details 5) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure | ||
Contributions expected to be made in next fiscal year | $ 59 | |
Estimated future benefit payments for funded and unfunded plans | ||
2,018 | 777 | |
2,019 | 523 | |
2,020 | 543 | |
2,021 | 548 | |
2,022 | 557 | |
2023-2027 | $ 2,900 | |
Assumed health care cost trend rates | ||
Health care cost trend rate assumed for the next year (as a percent) | 7.00% | 7.00% |
Rate at which the cost trend rate is assumed to decline, the ultimate trend rate (as a percent) | 5.00% | 5.00% |
Year in which the rate reaches the ultimate trend rate | 2,022 | 2,021 |
Pension benefits | ||
Estimated future benefit payments for funded and unfunded plans | ||
2,018 | $ 713 | |
2,019 | 461 | |
2,020 | 482 | |
2,021 | 489 | |
2,022 | 500 | |
2023-2027 | 2,642 | |
Other benefits | ||
Estimated future benefit payments for funded and unfunded plans | ||
2,018 | 64 | |
2,019 | 62 | |
2,020 | 61 | |
2,021 | 59 | |
2,022 | 57 | |
2023-2027 | 258 | |
Estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, for the period 2018-2022 | 4 | |
Estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, for the period 2023-2027 | $ 3 |
PENSION AND OTHER POSTRETIREM80
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details 6) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Multiemployer Plans [Abstract] | |||
Pension expense for multi-employer plans | $ 35 | $ 41 | $ 40 |
Defined contribution plan - U. S. Plan | |||
Defined Contribution Plan Disclosures | |||
Maximum employer contribution as a percentage of compensation (as a percent) | 3.50% | ||
Company costs associated with defined contribution plans | $ 61 | 82 | 94 |
Defined contribution plan - Non U. S. Plan | |||
Defined Contribution Plan Disclosures | |||
Company costs associated with defined contribution plans | $ 35 | $ 37 | $ 35 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of income tax | |||
Income before income taxes, United States | $ (690) | $ 113 | $ 1,801 |
Income before income taxes, International | 7,432 | 8,023 | 7,804 |
INCOME BEFORE INCOME TAXES | 6,742 | 8,136 | 9,605 |
Income tax payments | $ 1,904 | $ 1,554 | $ 2,357 |
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Statutory U.S. federal tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State and local income taxes - net of federal benefit (as a percent) | 1.20% | 1.20% | 1.20% |
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (as a percent) | (9.70%) | (17.50%) | (12.70%) |
Equity income or loss (as a percent) | (3.40%) | (3.00%) | (1.70%) |
Effective Income Tax Rate Reconciliation, Repatriation Foreign Earnings, Jobs Creation Act of 2004, Percent | 53.50% | 0.00% | 0.00% |
Other - Net (as a percent) | 5.90% | 3.80% | 1.50% |
Effective Tax Rate (as a percent) | 82.50% | 19.50% | 23.30% |
Effective Income Tax Rate Reconciliation, Tax Contingency, Domestic, Amount | $ 157 | ||
Effective Income Tax Rate Reconciliation, Tax Contingency, Domestic, Percent | 1.90% | ||
Income Tax (Expense) Benefit, Continuing Operations, Government Grants | $ 221 | $ 105 | $ 223 |
Income tax expense (benefit) | |||
Current income tax expense (benefit), United States | 5,438 | 1,147 | 711 |
Deferred income tax expense (benefit), United States | (1,783) | (838) | 120 |
Income taxes | 5,560 | 1,586 | 2,239 |
Current income tax expense (benefit), State and Local | 121 | 113 | 69 |
Deferred income tax expense (benefit), State and Local | 14 | (91) | 45 |
Current income tax expense (benefit), International | 1,257 | 1,182 | 1,386 |
Deferred income tax expense (benefit), International | 513 | 73 | (92) |
Current income tax expense (benefit), total | 6,816 | 2,442 | 2,166 |
Deferred income tax expense (benefit), total | (1,256) | (856) | 73 |
Gross balance of unrecognized tax benefit | |||
Beginning balance of unrecognized tax benefits | 302 | 168 | 211 |
Increase related to prior period tax positions | 18 | 163 | 4 |
Decrease related to prior period tax positions | (13) | 0 | (9) |
Increase related to current period tax positions | 13 | 17 | 5 |
Decrease related to settlements with taxing authorities | 0 | (40) | (5) |
Decrease due to lapse of the applicable statute of limitations | 0 | 0 | (23) |
Increase (decrease) due to effect of foreign currency exchange rate changes | 11 | (6) | (15) |
Ending balance of unrecognized tax benefits | 331 | 302 | 168 |
Alternative jurisdictional tax benefits if tax positions do not prevail | 126 | ||
Impact of unrecognized tax benefits on effective tax rate if Company were to prevail on all uncertain tax positions | 205 | ||
Unrecognized tax benefits, interest and penalties accrued | 177 | 142 | 111 |
Unrecognized tax benefits, interest and penalties expense or (benefit) | 35 | 31 | |
Undistributed earnings of foreign subsidiaries | 42,000 | ||
Bottling Investments | |||
Schedule of income tax | |||
INCOME BEFORE INCOME TAXES | (2,345) | (1,923) | (427) |
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | (2,140) | $ (2,456) | $ (1,006) |
CCBA [Member] [Domain] | |||
Income tax expense (benefit) | |||
Income taxes | 55 | ||
Deferred income tax expense (benefit), total | $ (8) | ||
AC Bebidas [Member] | |||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Other - Net (as a percent) | 10.20% | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 1,037 | ||
Income tax expense (benefit) | |||
Current income tax expense (benefit), total | 1,048 | ||
German bottling operations [Member] | |||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Other - Net (as a percent) | 4.50% | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 1,323 | ||
Income tax expense (benefit) | |||
Current income tax expense (benefit), total | $ 97 | ||
Manufacturing incentives and permanent book to tax adjustments [Member] | |||
Income tax expense (benefit) | |||
Current income tax expense (benefit), total | $ (156) | ||
Share-based compensation awards vested or settled [Member] | |||
Reconciliation of the statutory U.S. federal tax rate and effective tax rates | |||
Other - Net (as a percent) | 2.00% | ||
Income tax expense (benefit) | |||
Current income tax expense (benefit), total | $ 132 | ||
Tax Reform Act [Member] | |||
Income tax expense (benefit) | |||
Current income tax expense (benefit), United States | 4,600 | ||
Deferred income tax expense (benefit), United States | (1,000) | ||
Deferred income tax expense (benefit), State and Local | $ 600 | ||
Rate deferred tax assets and liabilities are expected to reverse | 21.00% | ||
Current income tax expense (benefit), total | $ 3,610 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of income tax | ||
Current deferred tax assets recorded in prepaid expenses and other assets | $ 80 | |
Deferred tax assets: | ||
Property, plant and equipment | $ 99 | 144 |
Trademarks and other intangible assets, deferred tax asset | 98 | 114 |
Equity method investments (including foreign currency translation adjustment), deferred tax asset | 300 | 684 |
Derivative financial instrument, deferred tax asset | 387 | 193 |
Other liabilities, deferred tax asset | 861 | 1,141 |
Benefit plans, deferred tax asset | 977 | 1,599 |
Net operating/capital loss carryforwards, deferred tax asset | 520 | 461 |
Other, deferred tax asset | 163 | 135 |
Gross deferred tax assets | 3,405 | 4,471 |
Valuation allowances | (501) | (530) |
Total deferred tax assets | 2,904 | 3,941 |
Deferred tax liabilities: | ||
Property, plant and equipment | (819) | (1,176) |
Trademarks and other intangible assets, deferred tax liabilities | (978) | (2,694) |
Equity method investments (including foreign currency translation adjustment), deferred tax liability | (1,835) | (1,718) |
Derivative financial instruments, deferred tax liabilities | (436) | (1,121) |
Other liabilities, deferred tax liability | (50) | (149) |
Benefit Plans, deferred tax liabilities | (289) | (487) |
Other, deferred tax liability | (688) | (635) |
Total deferred tax liabilities | (5,095) | (7,980) |
Net deferred tax liabilities | (2,191) | (4,039) |
Noncurrent deferred tax assets recorded in other assets | 331 | 326 |
Current deferred tax liabilities recorded in accounts payable and accrued expenses | 0 | 692 |
Net deferred tax assets or (liabilities) located in countries outside the United States | (539) | $ 83 |
Loss carryforwards | 4,893 | |
Loss carryforwards expiring within next five years | $ 335 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax asset valuation allowances | |||
Balance at beginning of year | $ 530 | ||
Balance at end of year | 501 | $ 530 | |
Net increase or (decrease) in valuation allowances | (29) | 53 | $ (172) |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Deferred tax asset valuation allowances | |||
Balance at beginning of year | 530 | 477 | 649 |
Additions | 184 | 68 | 42 |
Decrease due to transfer to assets held for sale | 0 | (9) | (163) |
Deductions | (213) | (6) | (51) |
Balance at end of year | $ 501 | $ 530 | $ 477 |
OTHER COMPREHENSIVE INCOME (Det
OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Comprehensive Income Disclosure | |||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | $ 445 | ||
AOCI attributable to the shareowners of The Coca-Cola Company | |||
Accumulated other comprehensive income (loss) | (10,305) | $ (11,205) | |
CONSOLIDATED NET INCOME | 1,283 | 6,550 | $ 7,366 |
Total comprehensive income | 2,221 | 5,506 | 2,951 |
Foreign currency translation adjustments: | |||
Translation adjustment arising during the year | (1,350) | (1,103) | (4,626) |
Reclassification adjustments recognized in net income | 23 | 368 | 63 |
Adjustment for Long-term Intercompany Transactions, Gross of Tax | 3,332 | ||
Unrealized gains (losses) on net investment hedges arising during the year | 67 | 637 | |
Derivatives: | |||
Reclassification adjustments recognized in net income | (506) | ||
Available-for-sale securities: | |||
Reclassification adjustments recognized in net income | (123) | ||
Pension and other benefit liabilities: | |||
Comprehensive income reclassification of defined benefit plans for net prior service credit and actuarial gains or losses | 325 | ||
Amortization of prior service cost (credit) | (18) | ||
Foreign currency translation adjustments: | |||
Translation adjustment arising during the year | (242) | 51 | 243 |
Reclassification adjustments recognized in the period | (6) | (18) | (14) |
Adjustment for Long-term Intercompany Transactions, Tax Expense (Benefit) | 0 | ||
Unrealized gains (losses) on net investment hedges arising during the year | (25) | (244) | |
Derivatives: | |||
Reclassification adjustments recognized in net income | 192 | ||
Availiable-for-sale securities: | |||
Reclassification adjustments recognized in net income | 42 | ||
Pension and other benefits liabilities: | |||
OtherComprehensiveIncomeAmortizationOfDefinedBenefitPlanNetPriorServiceCostRecognizedInNetPeriodicPensionCostAndActuarilaLossorGainTax | (116) | ||
Foreign currency translation adjustments: | |||
Translation adjustment arising during the year | (1,592) | (1,052) | (4,383) |
Reclassification adjustments recognized in net income | 17 | 350 | 49 |
Adjustment for Long-term Intercompany Transactions, Net of Tax | 3,332 | ||
Unrealized gains (losses) on net investment hedges arising during the year | 42 | 393 | |
Net foreign currency translation adjustment | 861 | (626) | (3,959) |
Derivatives: | |||
Reclassification adjustments recognized in net income | (314) | ||
Net gain (loss) on derivatives | (433) | (382) | 142 |
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the year | 188 | ||
Reclassification adjustments recognized in net income | (81) | ||
Net urealized gain (loss) on available-for-sale securities | 188 | 17 | (684) |
Pension and other benefits liabilities: | |||
Other Comprehensive Income Reclassification Of Defined Benefit Plans Net Gain Loss and Actuarial Changes Recognized In Net Periodic Benefit Cost Net Of Tax | 209 | ||
Net change in pension and other benefit liabilities | 322 | (53) | 86 |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 150 | 0 | |
TOTAL EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY | |||
AOCI attributable to the shareowners of The Coca-Cola Company | |||
Foreign currency translation adjustment | (8,957) | (9,780) | |
Accumulated derivative net gains (losses) | (119) | 314 | |
Unrealized net gains (losses) on available-for-sale securities | 493 | 305 | |
Adjustments to pension and other benefit liabilities | (1,722) | (2,044) | |
Accumulated other comprehensive income (loss) | (10,305) | (11,205) | |
CONSOLIDATED NET INCOME | 1,248 | ||
Total comprehensive income | 2,148 | ||
Foreign currency translation adjustments: | |||
Unrealized gains (losses) on net investment hedges arising during the year | (1,512) | ||
Net foreign currency translation adjustment | 493 | (591) | (3,926) |
Derivatives: | |||
Unrealized gains (losses) arising during the year | (184) | (43) | 853 |
Reclassification adjustments recognized in net income | (506) | (563) | (638) |
Net gain (loss) on derivatives | (690) | (606) | 215 |
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the year | 405 | 124 | (973) |
Reclassification adjustments recognized in net income | (123) | (105) | (61) |
Net change in unrealized gain (loss) in available-for-sale securities | 282 | 19 | (1,034) |
Pension and other benefit liabilities: | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Reclassification Adjustment and Tax | 120 | (374) | (169) |
Comprehensive income reclassification of defined benefit plans for net prior service credit and actuarial gains or losses | 325 | 342 | 337 |
Net change in pension and other benefits liabilities | 445 | (32) | 168 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | 530 | (1,210) | (4,577) |
Foreign currency translation adjustments: | |||
Unrealized gains (losses) on net investment hedges arising during the year | 578 | ||
Net foreign currency translation adjustment | 330 | (22) | (15) |
Derivatives: | |||
Unrealized gains (losses) arising during the year | 65 | 11 | (314) |
Reclassification adjustments recognized in net income | 192 | 213 | 241 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 257 | 224 | (73) |
Availiable-for-sale securities: | |||
Unrealized gains (losses) arising during the year | (136) | (28) | 328 |
Reclassification adjustments recognized in net income | 42 | 26 | 22 |
Net change in unrealized gain (loss) on availiable-for-sale securities | (94) | (2) | 350 |
Pension and other benefits liabilities: | |||
Net pension and other benefits arising during the year | (7) | 99 | 43 |
OtherComprehensiveIncomeAmortizationOfDefinedBenefitPlanNetPriorServiceCostRecognizedInNetPeriodicPensionCostAndActuarilaLossorGainTax | (116) | (120) | (125) |
Net change in pension and other benefit liabilities | (123) | (21) | (82) |
Other comprehensive income (loss) attributable to The Coca-Cola Company | 370 | 179 | 180 |
Foreign currency translation adjustments: | |||
Unrealized gains (losses) on net investment hedges arising during the year | (934) | ||
Net foreign currency translation adjustment | 823 | (613) | (3,941) |
Derivatives: | |||
Unrealized gains (losses) arising during the year | (119) | (32) | 539 |
Reclassification adjustments recognized in net income | (314) | (350) | (397) |
Net gain (loss) on derivatives | (433) | (382) | 142 |
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the year | 269 | 96 | (645) |
Reclassification adjustments recognized in net income | (81) | (79) | (39) |
Net urealized gain (loss) on available-for-sale securities | 188 | 17 | (684) |
Pension and other benefits liabilities: | |||
Net pension and other benefits arising during the year | 113 | (275) | (126) |
Other Comprehensive Income Reclassification Of Defined Benefit Plans Net Gain Loss and Actuarial Changes Recognized In Net Periodic Benefit Cost Net Of Tax | 209 | 222 | 212 |
Net change in pension and other benefit liabilities | 322 | (53) | 86 |
Other comprehensive income (loss) attributable to The Coca-Cola Company | 900 | (1,031) | $ (4,397) |
Noncontrolling Interest [Member] | |||
AOCI attributable to the shareowners of The Coca-Cola Company | |||
CONSOLIDATED NET INCOME | 35 | ||
Total comprehensive income | 73 | ||
Foreign currency translation adjustments: | |||
Net foreign currency translation adjustment | 38 | ||
Derivatives: | |||
Net gain (loss) on derivatives | 0 | ||
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the year | 0 | ||
Pension and other benefits liabilities: | |||
Net change in pension and other benefit liabilities | 0 | ||
Recognized net actuarial loss (gain) | |||
Pension and other benefit liabilities: | |||
Comprehensive income reclassification of defined benefit plans for net prior service credit and actuarial gains or losses | 183 | ||
Other operating charges [Member] | Curtailment charges (credits) [Member] | |||
Pension and other benefit liabilities: | |||
Comprehensive income reclassification of defined benefit plans for net prior service credit and actuarial gains or losses | (75) | ||
Other operating charges [Member] | Settlement charges (credits) [Member] | |||
Pension and other benefit liabilities: | |||
Comprehensive income reclassification of defined benefit plans for net prior service credit and actuarial gains or losses | 228 | ||
Interest expense | Foreign currency and interest rate contracts [Member] | |||
Derivatives: | |||
Reclassification adjustments recognized in net income | 44 | ||
Net operating revenues | Foreign currency contracts | |||
Derivatives: | |||
Reclassification adjustments recognized in net income | (444) | ||
Cost of goods sold | Foreign currency and commodities contracts [Member] | |||
Derivatives: | |||
Reclassification adjustments recognized in net income | 3 | ||
Other income (loss) - net | Divestitures, deconsolidations and other [Member] | |||
Comprehensive Income Disclosure | |||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | (104) | ||
Foreign currency translation adjustments: | |||
Reclassification adjustments recognized in net income | 23 | ||
Derivatives: | |||
Reclassification adjustments recognized in net income | 1 | ||
Available-for-sale securities: | |||
Reclassification adjustments recognized in net income | (87) | ||
Pension and other benefit liabilities: | |||
Comprehensive income reclassification of defined benefit plans for net prior service credit and actuarial gains or losses | 7 | ||
Pension and other benefits liabilities: | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 80 | ||
Other income (loss) - net | Foreign currency contracts | |||
Derivatives: | |||
Reclassification adjustments recognized in net income | (110) | ||
Other income (loss) - net | Available-for-Sale Securities | |||
Available-for-sale securities: | |||
Reclassification adjustments recognized in net income | (36) | ||
Net Investment Hedges | |||
Foreign currency translation adjustments: | |||
Reclassification adjustments recognized in net income | 23 | ||
Foreign currency translation adjustments: | |||
Reclassification adjustments recognized in the period | (6) | ||
Foreign currency translation adjustments: | |||
Reclassification adjustments recognized in net income | $ 17 | ||
Germany bottler deconsolidation [Member] | |||
Foreign currency translation adjustments: | |||
Reclassification adjustments recognized in net income | 77 | ||
Foreign currency translation adjustments: | |||
Reclassification adjustments recognized in the period | (30) | ||
Foreign currency translation adjustments: | |||
Reclassification adjustments recognized in net income | $ 47 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets and liabilities measured at fair value on a recurring basis | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | $ 150 | $ 0 | |
Trading securities | 407 | 384 | |
Available-for-sale securities | 7,807 | 6,413 | |
Derivative, Collateral, Obligation to Return Cash | 55 | 201 | |
Derivative, Collateral, Right to Reclaim Cash | 2 | 17 | |
Level 1 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Trading securities | 212 | 202 | |
Available-for-sale securities | 1,899 | 1,655 | |
Derivatives | 7 | 4 | |
Total assets | 2,118 | 1,861 | |
Derivatives | (3) | 11 | |
Total liabilities | (3) | 11 | |
Level 2 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Trading securities | 127 | 115 | |
Available-for-sale securities | 5,739 | 4,619 | |
Derivatives | 250 | 878 | |
Total assets | 6,116 | 5,612 | |
Derivatives | (262) | 276 | |
Total liabilities | (262) | 276 | |
Level 3 | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Trading securities | 3 | 4 | |
Available-for-sale securities | 169 | 139 | |
Derivatives | 0 | 0 | |
Total assets | 172 | 143 | |
Derivatives | 0 | 0 | |
Total liabilities | 0 | 0 | |
Other [Member] | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Trading securities | 65 | 63 | |
Available-for-sale securities | 0 | 0 | |
Derivatives | 0 | 0 | |
Total assets | 65 | 63 | |
Derivatives | 0 | 0 | |
Total liabilities | 0 | 0 | |
Netting Adjustment | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Trading securities | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Derivatives | (198) | (369) | |
Total assets | (198) | (369) | |
Derivatives | 147 | (192) | |
Total liabilities | 147 | (192) | |
Fair Value Measurements | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Trading securities | 407 | 384 | |
Available-for-sale securities | 7,807 | 6,413 | |
Derivatives | 59 | 513 | |
Total assets | 8,273 | 7,310 | |
Derivatives | (118) | 95 | |
Total liabilities | (118) | 95 | |
Prepaid Expenses and Other Current Assets | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Derivatives | 347 | ||
Other assets | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Trading securities | 112 | 102 | |
Derivatives | 59 | 166 | |
Accounts Payable and Accrued Liabilities | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Derivatives | 28 | 42 | |
Liabilities held for sale - discontinued operations [Member] | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Derivatives | 12 | ||
Other liabilities | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Derivatives | 78 | 53 | |
Pension benefits | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Defined Benefit Plan, Fair Value of Plan Assets | 8,843 | 8,371 | $ 7,689 |
Pension benefits | Cash and cash equivalents | |||
Assets and liabilities measured at fair value on a recurring basis | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 691 | $ 402 |
FAIR VALUE MEASUREMENTS (Deta86
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assets measured at fair value on a nonrecurring basis | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 33 | ||
Assets held for sale | (1,819) | $ (2,264) | |
Intangible assets | (442) | (153) | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 150 | 0 | |
Valuation of shares in equity method investee Gain (Loss) | 25 | 0 | |
Total | (2,465) | (2,417) | |
Goodwill, Impairment Loss | 390 | 10 | |
Impairment of Intangible Assets (Excluding Goodwill) | 143 | ||
Property, Plant and Equipment, Transfers and Changes | 310 | ||
Other Asset Impairment Charges | 19 | ||
Corporate | |||
Assets measured at fair value on a nonrecurring basis | |||
Intangible assets | (50) | 0 | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 150 | ||
Valuation of shares in equity method investee Gain (Loss) | $ (6) | ||
Impairment of Intangible Assets (Excluding Goodwill) | 418 | ||
CCR [Member] | |||
Assets measured at fair value on a nonrecurring basis | |||
Intangible assets | (329) | $ 0 | |
Goodwill, Impairment Loss | 375 | ||
Venezuelan subsidiary | |||
Assets measured at fair value on a nonrecurring basis | |||
Intangible assets | (111) | ||
Impairment of Intangible Assets (Excluding Goodwill) | 34 | $ 55 | |
Venezuelan subsidiary | Corporate | |||
Assets measured at fair value on a nonrecurring basis | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 34 |
FAIR VALUE MEASUREMENTS (Deta87
FAIR VALUE MEASUREMENTS (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plans, Defined Benefit [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | $ 8,843 | $ 8,371 | $ 7,689 |
Pension Plans, Defined Benefit [Member] | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 691 | 402 | |
Pension Plans, Defined Benefit [Member] | Equity securities US based companies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 2,097 | 1,827 | |
Pension Plans, Defined Benefit [Member] | Equity securities International-based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 1,465 | 939 | |
Pension Plans, Defined Benefit [Member] | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 374 | 526 | |
Pension Plans, Defined Benefit [Member] | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 827 | 996 | |
Pension Plans, Defined Benefit [Member] | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 981 | 1,133 | |
Pension Plans, Defined Benefit [Member] | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 983 | 1,213 | |
Pension Plans, Defined Benefit [Member] | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 598 | 523 | |
Pension Plans, Defined Benefit [Member] | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 827 | 812 | |
Other Postretirement Benefits Plan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 288 | 255 | $ 245 |
Other Postretirement Benefits Plan [Member] | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 78 | 2 | |
Other Postretirement Benefits Plan [Member] | Equity securities US based companies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 96 | 116 | |
Other Postretirement Benefits Plan [Member] | Equity securities International-based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 8 | 8 | |
Other Postretirement Benefits Plan [Member] | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 2 | 3 | |
Other Postretirement Benefits Plan [Member] | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 7 | 6 | |
Other Postretirement Benefits Plan [Member] | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 80 | 103 | |
Other Postretirement Benefits Plan [Member] | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 8 | 9 | |
Other Postretirement Benefits Plan [Member] | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 5 | 4 | |
Other Postretirement Benefits Plan [Member] | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 4 | 4 | |
Level 1 | Pension Plans, Defined Benefit [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 4,410 | 3,211 | |
Level 1 | Pension Plans, Defined Benefit [Member] | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 626 | 373 | |
Level 1 | Pension Plans, Defined Benefit [Member] | Equity securities US based companies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 2,080 | 1,812 | |
Level 1 | Pension Plans, Defined Benefit [Member] | Equity securities International-based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 1,465 | 935 | |
Level 1 | Pension Plans, Defined Benefit [Member] | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 1 | Pension Plans, Defined Benefit [Member] | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 1 | Pension Plans, Defined Benefit [Member] | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 239 | 91 | |
Level 1 | Pension Plans, Defined Benefit [Member] | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 1 | Pension Plans, Defined Benefit [Member] | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 1 | Pension Plans, Defined Benefit [Member] | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 1 | Other Postretirement Benefits Plan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 182 | 224 | |
Level 1 | Other Postretirement Benefits Plan [Member] | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 78 | 2 | |
Level 1 | Other Postretirement Benefits Plan [Member] | Equity securities US based companies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 96 | 116 | |
Level 1 | Other Postretirement Benefits Plan [Member] | Equity securities International-based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 8 | 8 | |
Level 1 | Other Postretirement Benefits Plan [Member] | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 1 | Other Postretirement Benefits Plan [Member] | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 1 | Other Postretirement Benefits Plan [Member] | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 98 | |
Level 1 | Other Postretirement Benefits Plan [Member] | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 1 | Other Postretirement Benefits Plan [Member] | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 1 | Other Postretirement Benefits Plan [Member] | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 2 | Pension Plans, Defined Benefit [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 1,287 | 1,560 | |
Level 2 | Pension Plans, Defined Benefit [Member] | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 65 | 29 | |
Level 2 | Pension Plans, Defined Benefit [Member] | Equity securities US based companies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 3 | 1 | |
Level 2 | Pension Plans, Defined Benefit [Member] | Equity securities International-based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 4 | |
Level 2 | Pension Plans, Defined Benefit [Member] | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 374 | 525 | |
Level 2 | Pension Plans, Defined Benefit [Member] | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 803 | 978 | |
Level 2 | Pension Plans, Defined Benefit [Member] | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 42 | 20 | |
Level 2 | Pension Plans, Defined Benefit [Member] | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 2 | Pension Plans, Defined Benefit [Member] | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 2 | Pension Plans, Defined Benefit [Member] | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 3 | |
Level 2 | Other Postretirement Benefits Plan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 9 | 9 | |
Level 2 | Other Postretirement Benefits Plan [Member] | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 2 | Other Postretirement Benefits Plan [Member] | Equity securities US based companies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 2 | Other Postretirement Benefits Plan [Member] | Equity securities International-based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 2 | Other Postretirement Benefits Plan [Member] | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 2 | 3 | |
Level 2 | Other Postretirement Benefits Plan [Member] | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 7 | 6 | |
Level 2 | Other Postretirement Benefits Plan [Member] | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 2 | Other Postretirement Benefits Plan [Member] | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 2 | Other Postretirement Benefits Plan [Member] | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 2 | Other Postretirement Benefits Plan [Member] | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 3 | Pension Plans, Defined Benefit [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 303 | 246 | |
Reconciliation of the beginning and ending balance of Level 3 assets for U.S. and non-U.S. pension plans | |||
Balance at the beginning of the period | 246 | 235 | |
Actual return on plan assets: | |||
Related to assets still held at the reporting date | 2 | 13 | |
Related to assets sold during the year | 1 | ||
Purchases, sales and settlements-net | (5) | (11) | |
Transfers into/(or out) of Level 3-net | 34 | 10 | |
Foreign currency translation adjustments | 26 | (2) | |
Balance at the end of the period | 303 | 246 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Equity securities | |||
Reconciliation of the beginning and ending balance of Level 3 assets for U.S. and non-U.S. pension plans | |||
Balance at the beginning of the period | 14 | 11 | |
Actual return on plan assets: | |||
Related to assets still held at the reporting date | (3) | 4 | |
Related to assets sold during the year | 0 | ||
Purchases, sales and settlements-net | 3 | 0 | |
Transfers into/(or out) of Level 3-net | 0 | (1) | |
Foreign currency translation adjustments | 0 | 0 | |
Balance at the end of the period | 14 | 14 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Equity securities US based companies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 14 | 14 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Equity securities International-based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 1 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 24 | 18 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Fixed Income Securities [Member] | |||
Reconciliation of the beginning and ending balance of Level 3 assets for U.S. and non-U.S. pension plans | |||
Balance at the beginning of the period | 19 | 3 | |
Actual return on plan assets: | |||
Related to assets still held at the reporting date | 1 | 2 | |
Related to assets sold during the year | (2) | ||
Purchases, sales and settlements-net | 1 | 12 | |
Transfers into/(or out) of Level 3-net | 3 | 4 | |
Foreign currency translation adjustments | 0 | 0 | |
Balance at the end of the period | 24 | 19 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 2 | 2 | |
Reconciliation of the beginning and ending balance of Level 3 assets for U.S. and non-U.S. pension plans | |||
Balance at the beginning of the period | 2 | 2 | |
Actual return on plan assets: | |||
Related to assets still held at the reporting date | 0 | 0 | |
Related to assets sold during the year | 0 | ||
Purchases, sales and settlements-net | 0 | 0 | |
Transfers into/(or out) of Level 3-net | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
Balance at the end of the period | 2 | 2 | |
Level 3 | Pension Plans, Defined Benefit [Member] | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 263 | 211 | |
Reconciliation of the beginning and ending balance of Level 3 assets for U.S. and non-U.S. pension plans | |||
Balance at the beginning of the period | 211 | 219 | |
Actual return on plan assets: | |||
Related to assets still held at the reporting date | 4 | 7 | |
Related to assets sold during the year | 3 | ||
Purchases, sales and settlements-net | (9) | (23) | |
Transfers into/(or out) of Level 3-net | 31 | 7 | |
Foreign currency translation adjustments | 26 | (2) | |
Balance at the end of the period | 263 | 211 | |
Other | Pension Plans, Defined Benefit [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 2,843 | 3,354 | |
Other | Pension Plans, Defined Benefit [Member] | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other | Pension Plans, Defined Benefit [Member] | Equity securities US based companies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other | Pension Plans, Defined Benefit [Member] | Equity securities International-based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other | Pension Plans, Defined Benefit [Member] | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other | Pension Plans, Defined Benefit [Member] | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other | Pension Plans, Defined Benefit [Member] | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 700 | 1,022 | |
Other | Pension Plans, Defined Benefit [Member] | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 983 | 1,213 | |
Other | Pension Plans, Defined Benefit [Member] | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 596 | 521 | |
Other | Pension Plans, Defined Benefit [Member] | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 564 | 598 | |
Other | Other Postretirement Benefits Plan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 97 | 22 | |
Other | Other Postretirement Benefits Plan [Member] | Cash and cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other | Other Postretirement Benefits Plan [Member] | Equity securities US based companies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other | Other Postretirement Benefits Plan [Member] | Equity securities International-based companies | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other | Other Postretirement Benefits Plan [Member] | Government bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other | Other Postretirement Benefits Plan [Member] | Corporate bonds and debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Other | Other Postretirement Benefits Plan [Member] | Mutual, pooled and commingled funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 80 | 5 | |
Other | Other Postretirement Benefits Plan [Member] | Hedge funds/limited partnerships | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 8 | 9 | |
Other | Other Postretirement Benefits Plan [Member] | Real estate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | 5 | 4 | |
Other | Other Postretirement Benefits Plan [Member] | Other | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value of Plan Assets | $ 4 | $ 4 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Details 4) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Fair Value Disclosures [Abstract] | ||
Long-term Debt | $ 34,480 | $ 33,211 |
Long-term Debt, Fair Value | $ 35,169 | $ 33,752 |
SIGNIFICANT OPERATING AND NON89
SIGNIFICANT OPERATING AND NONOPERATING ITEMS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Apr. 03, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Operating Charges | ||||
Other operating charges | $ 2,157 | $ 1,510 | $ 1,657 | |
Other Restructuring Costs | 419 | 415 | ||
Asset Impairment Charges | 442 | 153 | ||
Litigation Settlement, Expense | 67 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 33 | |||
Impairment of Intangible Assets (Excluding Goodwill) | 143 | |||
Goodwill, Impairment Loss | 390 | 10 | ||
Non capitalizable transaction costs | 19 | 41 | ||
Interest Expense [Abstract] | ||||
Gains (Losses) on Extinguishment of Debt | (38) | (320) | ||
Equity Income (Loss) - Net | ||||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 92 | 61 | 87 | |
Other Income (Loss) - Net | ||||
Other Nonoperating Income (Expense) | (1,666) | (1,234) | 631 | |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 25 | |||
Foreign Currency Transaction Gain, before Tax | 300 | |||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | $ 445 | |||
Equity Method Investment, Ownership Percentage | 17.00% | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | $ 150 | 0 | ||
North America Territory [Member] | ||||
Other Operating Charges | ||||
Asset Impairment Charges | 737 | |||
Other Income (Loss) - Net | ||||
Gain (loss) on refranchised territories and/or bottler disposal | (3,177) | (2,456) | (1,006) | |
CCEAG [Member] | ||||
Other Income (Loss) - Net | ||||
Gain (loss) on refranchised territories and/or bottler disposal | (26) | 1,400 | ||
China Bottling Operation [Member] | ||||
Other Income (Loss) - Net | ||||
Gain (loss) on refranchised territories and/or bottler disposal | 88 | |||
North America | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | 241 | 134 | 141 | |
Goodwill, Impairment Loss | 0 | 0 | ||
Equity Income (Loss) - Net | ||||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 2 | |||
Other Income (Loss) - Net | ||||
Cost incurred to convert bottling agreements | 313 | 31 | ||
Corporate | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | 309 | 105 | 246 | |
Asset Impairment Charges | 50 | 0 | ||
Cash Contribution Expense | 225 | 200 | 100 | |
Litigation Settlement, Expense | 67 | |||
Impairment of Intangible Assets (Excluding Goodwill) | 418 | |||
Non capitalizable transaction costs | 32 | |||
Interest Expense [Abstract] | ||||
Gains (Losses) on Extinguishment of Debt | (38) | (320) | ||
Equity Income (Loss) - Net | ||||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 16 | 9 | ||
Other Income (Loss) - Net | ||||
Net Gains From Investee Transactions, Equity Investment Sales and other gains | 1,403 | |||
Gain (loss) on refranchised territories and/or bottler disposal | 1,323 | |||
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 25 | |||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | 445 | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 150 | |||
Corporate | CCEAG [Member] | ||||
Other Income (Loss) - Net | ||||
Gain (loss) on refranchised territories and/or bottler disposal | (26) | |||
Corporate | China Bottling Operation [Member] | ||||
Other Income (Loss) - Net | ||||
Gain (loss) on refranchised territories and/or bottler disposal | 88 | |||
Latin America | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | 7 | 7 | ||
Goodwill, Impairment Loss | 0 | 0 | ||
Bottling Investments | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | 57 | 322 | 596 | |
Other Restructuring Costs | 419 | 297 | ||
Asset Impairment Charges | 737 | 153 | ||
Goodwill, Impairment Loss | 390 | 10 | ||
Non capitalizable transaction costs | 9 | |||
Equity Income (Loss) - Net | ||||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 70 | 52 | 83 | |
Other Income (Loss) - Net | ||||
Gain (loss) on refranchised territories and/or bottler disposal | (2,140) | (2,456) | (1,006) | |
Venezuelan subsidiary | ||||
Other Operating Charges | ||||
Asset Impairment Charges | 111 | |||
Impairment of Intangible Assets (Excluding Goodwill) | 34 | 55 | ||
Accounts Receivable Write Down | 76 | 56 | ||
Other Income (Loss) - Net | ||||
Remeasurement Charges on Subsidiary Assets | 27 | |||
Venezuelan subsidiary | Corporate | ||||
Other Operating Charges | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 34 | |||
Other Income (Loss) - Net | ||||
Remeasurement Charges on Subsidiary Assets | $ 27 | |||
Venezuelan subsidiary | Latin America | ||||
Other Operating Charges | ||||
Accounts Receivable Write Down | 76 | |||
Egypt subsidiary | ||||
Other Income (Loss) - Net | ||||
Remeasurement Charges on Subsidiary Assets | 72 | |||
Egypt subsidiary | Corporate | ||||
Other Income (Loss) - Net | ||||
Remeasurement Charges on Subsidiary Assets | 72 | |||
South African bottling operations [Member] | Corporate | ||||
Other Income (Loss) - Net | ||||
Gain (Loss) on sale of investment in subsidiary | (21) | |||
Productivity and Reinvestment [Member] | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | $ 650 | 352 | 691 | |
Integration of German Bottling and Distribution Operation [Member] | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | $ 240 | $ 292 |
PRODUCTIVITY, INTEGRATION AND90
PRODUCTIVITY, INTEGRATION AND RESTRUCTURING INITIATIVES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Integration of German Bottling and Distribution Operation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | $ 1,367 | ||
Restructuring Reserve | |||
Accrued balance as of January 1 | $ 122 | ||
Costs incurred | 240 | $ 292 | |
Accrued balance as of December 31 | 122 | ||
Productivity and Reinvestment [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 3,058 | ||
Restructuring Reserve | |||
Accrued balance as of January 1 | 151 | 204 | 285 |
Costs incurred | 650 | 352 | 691 |
Payments | (531) | (349) | (512) |
Noncash and exchange | (64) | (56) | (260) |
Accrued balance as of December 31 | 206 | 151 | 204 |
Productivity and Reinvestment [Member] | Severance pay and benefits | |||
Restructuring Reserve | |||
Accrued balance as of January 1 | 123 | 144 | 260 |
Costs incurred | 310 | 95 | 269 |
Payments | (181) | (114) | (200) |
Noncash and exchange | (62) | (2) | (185) |
Accrued balance as of December 31 | 190 | 123 | 144 |
Productivity and Reinvestment [Member] | Outside Services [Member] | |||
Restructuring Reserve | |||
Accrued balance as of January 1 | 6 | 8 | 4 |
Costs incurred | 79 | 27 | 56 |
Payments | (83) | (30) | (47) |
Noncash and exchange | (1) | 1 | (5) |
Accrued balance as of December 31 | 1 | 6 | 8 |
Productivity and Reinvestment [Member] | Other direct costs [Member] | |||
Restructuring Reserve | |||
Accrued balance as of January 1 | 22 | 52 | 21 |
Costs incurred | 261 | 230 | 366 |
Payments | (267) | (205) | (265) |
Noncash and exchange | (1) | (55) | (70) |
Accrued balance as of December 31 | $ 15 | $ 22 | $ 52 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Concentrate operations | 51.00% | 40.00% | 37.00% |
Finished products operations | 49.00% | 60.00% | 63.00% |
Sales Revenue Net Percentage | 100.00% | 100.00% | 100.00% |
Sales Revenue, Goods, Net | $ 35,410 | $ 41,863 | $ 44,294 |
Property, Plant and Equipment, Net | 8,203 | 10,635 | 12,571 |
United States | |||
Segment Reporting Information [Line Items] | |||
Sales Revenue, Goods, Net | 14,727 | 19,899 | 20,360 |
Property, Plant and Equipment, Net | 4,163 | 6,784 | 8,266 |
International | |||
Segment Reporting Information [Line Items] | |||
Sales Revenue, Goods, Net | 20,683 | 21,964 | 23,934 |
Property, Plant and Equipment, Net | 4,040 | 3,851 | 4,305 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Sales Revenue, Goods, Net | $ 138 | $ 132 | $ 166 |
OPERATING SEGMENTS (Details 2)
OPERATING SEGMENTS (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Apr. 03, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net operating revenues: | ||||
Sales Revenue, Goods, Net | $ 35,410 | $ 41,863 | $ 44,294 | |
Intersegment Revenue | 42 | 0 | 0 | |
Revenue for Reportable Segments | 35,368 | 41,863 | 44,294 | |
Operating Income (Loss) | 7,501 | 8,626 | 8,728 | |
Interest income | 677 | 642 | 613 | |
Interest expense | 841 | 733 | 856 | |
Depreciation and amortization | 1,260 | 1,787 | 1,970 | |
Equity income (loss) - net | 1,071 | 835 | 489 | |
Income (loss) before income taxes | 6,742 | 8,136 | 9,605 | |
Identifiable operating assets | 58,615 | 70,021 | 74,208 | |
Investments | 21,952 | 17,249 | 15,788 | |
Capital expenditures | $ 1,675 | 2,262 | $ 2,553 | |
Ratio of net property, plant and equipment in Germany to total consolidated property, plant and equipment - net (as a percent) | 11.00% | 10.00% | ||
Impairment of Intangible Assets (Excluding Goodwill) | 143 | |||
Other Restructuring Costs | $ 419 | 415 | ||
Non capitalizable transaction costs | 19 | 41 | ||
Litigation Settlement, Expense | 67 | |||
Asset Impairment Charges | 442 | 153 | ||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 92 | 61 | $ 87 | |
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 150 | 0 | ||
Gains (Losses) on Extinguishment of Debt | (38) | (320) | ||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | 445 | |||
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 25 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 33 | |||
Venezuelan subsidiary | ||||
Net operating revenues: | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 34 | 55 | ||
Asset Impairment Charges | 111 | |||
Remeasurement Charges on Subsidiary Assets | 27 | |||
Accounts Receivable Write Down | 76 | 56 | ||
Egypt subsidiary | ||||
Net operating revenues: | ||||
Remeasurement Charges on Subsidiary Assets | 72 | |||
China Bottling Operation [Member] | ||||
Net operating revenues: | ||||
Assets held for sale | 1,533 | |||
Gain (loss) on refranchised territories and/or bottler disposal | 88 | |||
CCEAG [Member] | ||||
Net operating revenues: | ||||
Gain (loss) on refranchised territories and/or bottler disposal | (26) | 1,400 | ||
Europe, Middle East and Africa | ||||
Net operating revenues: | ||||
Sales Revenue, Goods, Net | 7,374 | 7,278 | 7,587 | |
Intersegment Revenue | 42 | 264 | 621 | |
Revenue for Reportable Segments | 7,332 | 7,014 | 6,966 | |
Operating Income (Loss) | 3,646 | 3,676 | 3,875 | |
Interest income | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | |
Depreciation and amortization | 91 | 93 | 103 | |
Equity income (loss) - net | 48 | 62 | 39 | |
Income (loss) before income taxes | 3,706 | 3,749 | 3,923 | |
Identifiable operating assets | 5,475 | 4,067 | 4,156 | |
Investments | 1,238 | 1,302 | 1,138 | |
Capital expenditures | 81 | 62 | 54 | |
Productivity, integration and restructuring initiatives | 26 | 32 | ||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 4 | 4 | ||
Refinement of previously established accruals - credit | (9) | |||
Latin America | ||||
Net operating revenues: | ||||
Sales Revenue, Goods, Net | 4,029 | 3,819 | 4,074 | |
Intersegment Revenue | 73 | 73 | 75 | |
Revenue for Reportable Segments | 3,956 | 3,746 | 3,999 | |
Operating Income (Loss) | 2,214 | 1,951 | 2,169 | |
Interest income | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | |
Depreciation and amortization | 37 | 35 | 41 | |
Equity income (loss) - net | (3) | 18 | (7) | |
Income (loss) before income taxes | 2,211 | 1,966 | 2,164 | |
Identifiable operating assets | 1,896 | 1,785 | 1,627 | |
Investments | 891 | 804 | 657 | |
Capital expenditures | 55 | 45 | 70 | |
Productivity, integration and restructuring initiatives | 7 | 7 | ||
Gain (charges) related to subsidiary | (33) | |||
Refinement of previously established accruals - credit | (2) | |||
Latin America | Venezuelan subsidiary | ||||
Net operating revenues: | ||||
Accounts Receivable Write Down | 76 | |||
North America | ||||
Net operating revenues: | ||||
Sales Revenue, Goods, Net | 10,637 | 10,210 | 9,840 | |
Intersegment Revenue | 1,986 | 3,773 | 4,259 | |
Revenue for Reportable Segments | 8,651 | 6,437 | 5,581 | |
Operating Income (Loss) | 2,578 | 2,582 | 2,366 | |
Interest income | 44 | 27 | 9 | |
Interest expense | 0 | 0 | 0 | |
Depreciation and amortization | 411 | 426 | 373 | |
Equity income (loss) - net | (3) | (17) | (18) | |
Income (loss) before income taxes | 2,307 | 2,560 | 2,356 | |
Identifiable operating assets | 17,619 | 16,566 | 16,396 | |
Investments | 112 | 109 | 107 | |
Capital expenditures | 541 | 438 | 377 | |
Productivity, integration and restructuring initiatives | 241 | 134 | 141 | |
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 2 | |||
Cost incurred to convert bottling agreements | 313 | 31 | ||
Asia Pacific | ||||
Net operating revenues: | ||||
Sales Revenue, Goods, Net | 5,176 | 5,294 | 5,252 | |
Intersegment Revenue | 409 | 506 | 545 | |
Revenue for Reportable Segments | 4,767 | 4,788 | 4,707 | |
Operating Income (Loss) | 2,163 | 2,224 | 2,189 | |
Interest income | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | |
Depreciation and amortization | 65 | 80 | 85 | |
Equity income (loss) - net | 11 | 9 | 9 | |
Income (loss) before income taxes | 2,179 | 2,238 | 2,207 | |
Identifiable operating assets | 2,072 | 2,024 | 1,639 | |
Investments | 177 | 164 | 158 | |
Capital expenditures | 50 | 107 | 81 | |
Productivity, integration and restructuring initiatives | 10 | 1 | 2 | |
Bottling Investments | ||||
Net operating revenues: | ||||
Sales Revenue, Goods, Net | 10,605 | 19,885 | 23,063 | |
Intersegment Revenue | 81 | 134 | 178 | |
Revenue for Reportable Segments | 10,524 | 19,751 | 22,885 | |
Operating Income (Loss) | (1,117) | (137) | 124 | |
Interest income | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | |
Depreciation and amortization | 454 | 1,013 | 1,211 | |
Equity income (loss) - net | 878 | 648 | 426 | |
Income (loss) before income taxes | (2,345) | (1,923) | (427) | |
Identifiable operating assets | 4,493 | 15,973 | 22,688 | |
Investments | 15,998 | 11,456 | 8,084 | |
Capital expenditures | 662 | 1,329 | 1,699 | |
Productivity, integration and restructuring initiatives | 57 | 322 | 596 | |
Other Restructuring Costs | 419 | 297 | ||
Non capitalizable transaction costs | 9 | |||
Asset Impairment Charges | 737 | 153 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (118) | |||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 70 | 52 | 83 | |
Gain (loss) on refranchised territories and/or bottler disposal | (2,140) | (2,456) | (1,006) | |
Corporate | ||||
Net operating revenues: | ||||
Sales Revenue, Goods, Net | 138 | 132 | 166 | |
Intersegment Revenue | 0 | 5 | 10 | |
Revenue for Reportable Segments | 138 | 127 | 156 | |
Operating Income (Loss) | (1,983) | (1,670) | (1,995) | |
Interest income | 633 | 615 | 604 | |
Interest expense | 841 | 733 | 856 | |
Depreciation and amortization | 202 | 140 | 157 | |
Equity income (loss) - net | 140 | 115 | 40 | |
Income (loss) before income taxes | (1,316) | (454) | (618) | |
Identifiable operating assets | 27,060 | 29,606 | 27,702 | |
Investments | 3,536 | 3,414 | 5,644 | |
Capital expenditures | 286 | 281 | 272 | |
Productivity, integration and restructuring initiatives | 309 | 105 | 246 | |
Impairment of Intangible Assets (Excluding Goodwill) | 418 | |||
Non capitalizable transaction costs | 32 | |||
Cash Contribution Expense | 225 | 200 | 100 | |
Litigation Settlement, Expense | 67 | |||
Net Gains From Investee Transactions, Equity Investment Sales and other gains | 1,403 | |||
Asset Impairment Charges | 50 | 0 | ||
Our proportionate share of unusual or infrequent items recorded by our equity method investees | 16 | 9 | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net | 150 | |||
Gains (Losses) on Extinguishment of Debt | (38) | (320) | ||
Gain (loss) on refranchised territories and/or bottler disposal | 1,323 | |||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | 445 | |||
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 25 | |||
Gain (charges) related to subsidiary | (105) | |||
Corporate | Venezuelan subsidiary | ||||
Net operating revenues: | ||||
Remeasurement Charges on Subsidiary Assets | $ 27 | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 34 | |||
Corporate | Egypt subsidiary | ||||
Net operating revenues: | ||||
Remeasurement Charges on Subsidiary Assets | 72 | |||
Corporate | China Bottling Operation [Member] | ||||
Net operating revenues: | ||||
Gain (loss) on refranchised territories and/or bottler disposal | 88 | |||
Corporate | CCEAG [Member] | ||||
Net operating revenues: | ||||
Gain (loss) on refranchised territories and/or bottler disposal | (26) | |||
Eliminations | ||||
Net operating revenues: | ||||
Sales Revenue, Goods, Net | (2,549) | (4,755) | (5,688) | |
Intersegment Revenue | (2,549) | (4,755) | (5,688) | |
Revenue for Reportable Segments | 0 | 0 | 0 | |
Operating Income (Loss) | 0 | 0 | 0 | |
Interest income | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | |
Equity income (loss) - net | 0 | 0 | 0 | |
Income (loss) before income taxes | 0 | 0 | 0 | |
Identifiable operating assets | 0 | 0 | 0 | |
Investments | 0 | 0 | 0 | |
Capital expenditures | 0 | $ 0 | $ 0 | |
Coca-Cola Beverage Africa [Member] | ||||
Net operating revenues: | ||||
Assets held for sale | $ 7,329 |
NET CHANGE IN OPERATING ASSET93
NET CHANGE IN OPERATING ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net change in operating assets and liabilities | |||
(Increase) decrease in trade accounts receivable | $ (141) | $ (28) | $ (212) |
(Increase) decrease in inventories | (355) | (142) | (250) |
(Increase) decrease in prepaid expenses and other assets | 571 | 283 | 123 |
Increase (decrease) in accounts payable and accrued expenses | (445) | (540) | 1,004 |
Increase (decrease) in accrued taxes | (153) | 750 | (306) |
Increase (decrease) in other liabilities | 4,052 | (544) | (516) |
Net change in operating assets and liabilities | $ 3,529 | $ (221) | $ (157) |