DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Apr. 01, 2022 | Apr. 26, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 1, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-02217 | |
Entity Registrant Name | COCA COLA CO | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 58-0628465 | |
Entity Address, Address Line One | One Coca-Cola Plaza | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30313 | |
City Area Code | 404 | |
Local Phone Number | 676-2121 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,335,028,727 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Entity Central Index Key | 0000021344 | |
Common Stock, $0.25 Par Value [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.25 Par Value | |
Trading Symbol | KO | |
Security Exchange Name | NYSE | |
0.500% Notes Due 2024 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.500% Notes Due 2024 | |
Trading Symbol | KO24 | |
Security Exchange Name | NYSE | |
1.875% Notes Due 2026 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.875% Notes Due 2026 | |
Trading Symbol | KO26 | |
Security Exchange Name | NYSE | |
0.750% Notes Due 2026 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.750% Notes Due 2026 | |
Trading Symbol | KO26C | |
Security Exchange Name | NYSE | |
1.125% Notes Due 2027 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.125% Notes Due 2027 | |
Trading Symbol | KO27 | |
Security Exchange Name | NYSE | |
.125% Notes Due 2029 KO29A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.125% Notes Due 2029 | |
Trading Symbol | KO29A | |
Security Exchange Name | NYSE | |
.125% Notes Due 2029 KO29B | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.125% Notes Due 2029 | |
Trading Symbol | KO29B | |
Security Exchange Name | NYSE | |
.400% Notes Due 2030 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.400% Notes Due 2030 | |
Trading Symbol | KO30B | |
Security Exchange Name | NYSE | |
1.250% Notes Due 2031 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.250% Notes Due 2031 | |
Trading Symbol | KO31 | |
Security Exchange Name | NYSE | |
.375% Notes Due 2033 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.375% Notes Due 2033 | |
Trading Symbol | KO33 | |
Security Exchange Name | NYSE | |
.500% Notes Due 2033 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.500% Notes Due 2033 | |
Trading Symbol | KO33A | |
Security Exchange Name | NYSE | |
1.625% Notes Due 2035 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes Due 2035 | |
Trading Symbol | KO35 | |
Security Exchange Name | NYSE | |
1.100% Notes Due 2036 [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.100% Notes Due 2036 | |
Trading Symbol | KO36 | |
Security Exchange Name | NYSE | |
.950% Notes Due 2036 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.950% Notes Due 2036 | |
Trading Symbol | KO36A | |
Security Exchange Name | NYSE | |
.800% Notes Due 2040 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.800% Notes Due 2040 | |
Trading Symbol | KO40B | |
Security Exchange Name | NYSE | |
1.000% Notes Due 2041 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.000% Notes Due 2041 | |
Trading Symbol | KO41 | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Net Operating Revenues | $ 10,491 | $ 9,020 |
Cost of goods sold | 4,091 | 3,505 |
Gross Profit | 6,400 | 5,515 |
Selling, general and administrative expenses | 2,967 | 2,669 |
Other operating charges | 28 | 124 |
Operating Income | 3,405 | 2,722 |
Interest income | 78 | 66 |
Interest expense | 182 | 442 |
Equity income (loss) — net | 262 | 279 |
Other income (loss) — net | (105) | 138 |
Income Before Income Taxes | 3,458 | 2,763 |
Income taxes | 665 | 508 |
Consolidated Net Income | 2,793 | 2,255 |
Net Income (Loss) Attributable to Noncontrolling Interest | 12 | 10 |
Net Income Attributable to Shareowners of The Coca-Cola Company | $ 2,781 | $ 2,245 |
Basic Net Income Per Share1 | $ 0.64 | $ 0.52 |
Diluted Net Income Per Share1 | $ 0.64 | $ 0.52 |
Average Shares Outstanding — Basic | 4,332,000,000 | 4,307,000,000 |
Effect of dilutive securities | 25,000,000 | 23,000,000 |
Average Shares Outstanding — Diluted | 4,357,000,000 | 4,330,000,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Consolidated Net Income | $ 2,793 | $ 2,255 |
Other comprehensive income: | ||
Net foreign currency translation adjustments | 1,009 | 4 |
Net gains (losses) on derivatives | 64 | 104 |
Net change in unrealized gains (losses) on available-for-sale debt securities | (35) | (60) |
Net change in pension and other postretirement benefit liabilities | 85 | 420 |
Total Comprehensive Income | 3,916 | 2,723 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 145 | 10 |
Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company | $ 3,771 | $ 2,713 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 7,681 | $ 9,684 |
Short-term investments | 736 | 1,242 |
Total Cash, Cash Equivalents and Short-Term Investments | 8,417 | 10,926 |
Marketable securities | 1,939 | 1,699 |
Trade accounts receivable, less allowances of $512 and $516, respectively | 4,641 | 3,512 |
Inventories | 3,741 | 3,414 |
Prepaid expenses and other current assets | 3,418 | 2,994 |
Total Current Assets | 22,156 | 22,545 |
Equity method investments | 18,198 | 17,598 |
Other investments | 788 | 818 |
Other noncurrent assets | 6,392 | 6,731 |
Deferred income tax assets | 2,006 | 2,129 |
Property, plant and equipment, less accumulated depreciation of $9,104 and $8,942, respectively | 9,784 | 9,920 |
Trademarks with indefinite lives | 14,388 | 14,465 |
Goodwill | 19,598 | 19,363 |
Other intangible assets | 754 | 785 |
Total Assets | 94,064 | 94,354 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 13,272 | 14,619 |
Loans and notes payable | 3,610 | 3,307 |
Current maturities of long-term debt | 1,039 | 1,338 |
Accrued income taxes | 866 | 686 |
Total Current Liabilities | 18,787 | 19,950 |
Long-term debt | 37,052 | 38,116 |
Other noncurrent liabilities | 8,252 | 8,607 |
Deferred income tax liabilities | 3,132 | 2,821 |
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY | ||
Common stock, $0.25 par value; authorized — 11,200 shares; issued — 7,040 shares | 1,760 | 1,760 |
Capital surplus | 18,388 | 18,116 |
Reinvested earnings | 69,969 | 69,094 |
Accumulated other comprehensive income (loss) | (13,340) | (14,330) |
Treasury stock, at cost — 2,709 and 2,715 shares, respectively | (51,932) | (51,641) |
Equity Attributable to Shareowners of The Coca-Cola Company | 24,845 | 22,999 |
Equity attributable to noncontrolling interests | 1,996 | 1,861 |
Total Equity | 26,841 | 24,860 |
Total Liabilities and Equity | $ 94,064 | $ 94,354 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - USD ($) shares in Millions, $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 512 | $ 516 |
Property, Plant, and Equipment, Owned, Accumulated Depreciation | $ 9,104 | $ 8,942 |
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 | 2,709 | 2,715 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
OPERATING ACTIVITIES | ||
Consolidated Net Income | $ 2,793 | $ 2,255 |
Depreciation and amortization | 324 | 366 |
Stock-based compensation expense | 87 | 58 |
Deferred income taxes | 41 | 377 |
Equity (income) loss — net of dividends | (247) | (250) |
Foreign currency adjustments | 100 | (20) |
Significant (gains) losses — net | 25 | 1 |
Other operating charges | 38 | 69 |
Other items | (70) | 157 |
Net change in operating assets and liabilities | (2,468) | (1,377) |
Net Cash Provided by Operating Activities | 623 | 1,636 |
INVESTING ACTIVITIES | ||
Purchases of investments | (835) | (1,466) |
Proceeds from disposals of investments | 1,323 | 1,375 |
Acquisitions of businesses, equity method investments and nonmarketable securities | (5) | (4) |
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 218 | 2 |
Purchases of property, plant and equipment | (217) | (216) |
Proceeds from disposals of property, plant and equipment | 16 | 11 |
Other investing activities | (354) | 17 |
Net Cash Provided by (Used in) Investing Activities | 146 | (281) |
FINANCING ACTIVITIES | ||
Issuances of debt | 1,052 | 5,588 |
Payments of debt | (1,045) | (3,044) |
Issuances of stock | 449 | 183 |
Purchases of stock for treasury | (546) | (104) |
Dividends | (1,906) | (1,810) |
Other financing activities | (979) | (449) |
Net Cash Provided by (Used in) Financing Activities | (2,975) | 364 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 173 | (18) |
CASH AND CASH EQUIVALENTS | ||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | (2,033) | 1,701 |
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period | 10,025 | 7,110 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents at End of Period | 7,992 | 8,811 |
Restricted Cash and Cash Equivalents | 311 | 327 |
Cash and cash equivalents | $ 7,681 | $ 8,484 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Apr. 01, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by U.S. GAAP for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of The Coca-Cola Company for the year ended December 31, 2021. When used in these notes, the terms “The Coca-Cola Company,” “Company,” “we,” “us” and “our” mean The Coca-Cola Company and all entities included in our consolidated financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended April 1, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Sales of our ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters typically accounting for the highest sales volumes. The volume of sales in the beverage business may be affected by weather conditions. Each of our quarterly reporting periods, other than the fourth quarter, ends on the Friday closest to the last day of the corresponding quarterly calendar period. The first quarter of 2022 and the first quarter of 2021 ended on April 1, 2022 and April 2, 2021, respectively. Our fourth quarter and our fiscal year end on December 31 regardless of the day of the week on which December 31 falls. Advertising Costs The Company’s accounting policy related to advertising costs for annual reporting purposes is to expense production costs of print, radio, television and other advertisements as of the first date the advertisements take place. All other marketing expenditures are expensed in the annual period in which the expenditure is incurred. For quarterly reporting purposes, we allocate our estimated full year marketing expenditures that benefit multiple quarters to each of those quarters. We use the proportion of each quarter’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 quarter, we review our estimated full year unit case volume and our estimated full year marketing expenditures that benefit multiple quarters in order to evaluate if a change in estimate is necessary. The impact of any change in the full year estimate is recognized in the quarter in which the change in estimate occurs. Our full year marketing expenditures are not impacted by this interim accounting policy. Cash, Cash Equivalents, Restricted Cash and Restricted 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 or restricted cash equivalents, as applicable. Restricted cash and restricted cash equivalents generally consist of amounts held by our captive insurance companies, which are included in the line item other noncurrent assets on our consolidated balance sheet. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor our concentrations of credit risk. The following tables provide a summary of cash, cash equivalents, restricted cash and restricted cash equivalents that constitute the total amounts shown in our consolidated statements of cash flows (in millions): April 1, December 31, Cash and cash equivalents $ 7,681 $ 9,684 Restricted cash and restricted cash equivalents included in other noncurrent assets 1,2 311 341 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 7,992 $ 10,025 1 Amounts represent restricted cash and restricted cash equivalents in our solvency capital portfolio set aside primarily to cover pension obligations in certain of our European and Canadian pension plans. Refer to Note 4. 2 Restricted cash and restricted cash equivalents include amounts related to assets held for sale. Refer to Note 2. April 2, December 31, Cash and cash equivalents $ 8,484 $ 6,795 Restricted cash and restricted cash equivalents included in other noncurrent assets 1 327 315 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 8,811 $ 7,110 1 Amounts represent restricted cash and restricted cash equivalents in our solvency capital portfolio set aside primarily to cover pension obligations in certain of our European and Canadian pension plans. Refer to Note 4. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 3 Months Ended |
Apr. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Acquisitions Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $5 million and $4 million during the three months ended April 1, 2022 and April 2, 2021, respectively. Divestitures Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the three months ended April 1, 2022 and April 2, 2021 totaled $218 million and $2 million, respectively. In 2022, we sold our ownership interest in one of our equity method investments for cash proceeds of $123 million. We recognized a net gain of $13 million as a result of the sale, which was recorded in the line item other income (loss) — net in our consolidated statement of income. Assets and Liabilities Held for Sale The Company had certain bottling operations in Asia Pacific that met the criteria to be classified as held for sale. As a result, we were required to record their assets and liabilities at the lower of carrying value or fair value less any costs to sell. As the fair value less any costs to sell exceeded the carrying value, the related assets and liabilities were recorded at their carrying value. These assets and liabilities were included in the Bottling Investments operating segment. The Company expects these bottling operations to be refranchised during the second half of 2022. The following table presents information related to the major classes of assets and liabilities that were classified as held for sale and were included in the line items prepaid expenses and other current assets and accounts payable and accrued expenses, respectively, in our consolidated balance sheets (in millions): April 1, December 31, 2021 Cash, cash equivalents and short-term investments $ 220 $ 228 Trade accounts receivable, less allowances 15 21 Inventories 50 55 Prepaid expenses and other current assets 42 36 Other noncurrent assets 36 9 Deferred income tax assets 6 6 Property, plant and equipment — net 287 282 Goodwill 36 37 Assets held for sale $ 692 $ 674 Accounts payable and accrued expenses $ 137 $ 139 Accrued income taxes 5 4 Other noncurrent liabilities 9 9 Deferred income tax liabilities 5 5 Liabilities held for sale $ 156 $ 157 |
NET OPERATING REVENUES
NET OPERATING REVENUES | 3 Months Ended |
Apr. 01, 2022 | |
Revenue Recognition [Abstract] | |
NET OPERATING REVENUES | NET OPERATING REVENUES The following table presents net operating revenues disaggregated between the United States and International and further by line of business (in millions): United States International Total Three Months Ended April 1, 2022 Concentrate operations $ 1,641 $ 4,083 $ 5,724 Finished product operations 1,882 2,885 4,767 Total $ 3,523 $ 6,968 $ 10,491 Three Months Ended April 2, 2021 Concentrate operations $ 1,410 $ 3,572 $ 4,982 Finished product operations 1,483 2,555 4,038 Total $ 2,893 $ 6,127 $ 9,020 Refer to Note 16 for disclosures of net operating revenues by operating segment and Corporate. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Apr. 01, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Equity Securities The carrying values of our equity securities were included in the following line items in our consolidated balance sheets (in millions): Fair Value with Changes Recognized in Income Measurement Alternative — No Readily Determinable Fair Value April 1, 2022 Marketable securities $ 357 $ — Other investments 745 43 Other noncurrent assets 1,493 — Total equity securities $ 2,595 $ 43 December 31, 2021 Marketable securities $ 376 $ — Other investments 771 47 Other noncurrent assets 1,576 — Total equity securities $ 2,723 $ 47 The calculation of net unrealized gains and losses recognized during the period related to equity securities still held at the end of the period is as follows (in millions): Three Months Ended April 1, April 2, Net gains (losses) recognized during the period related to equity securities $ (100) $ 155 Less: Net gains (losses) recognized during the period related to equity securities sold during the period (132) 14 Net unrealized gains (losses) recognized during the period related to equity securities still held at the end of the period $ 32 $ 141 Debt Securities Our debt securities consisted of the following (in millions): Gross Unrealized Estimated Cost Gains Losses April 1, 2022 Trading securities $ 41 $ — $ (1) $ 40 Available-for-sale securities 1,933 25 (165) 1,793 Total debt securities $ 1,974 $ 25 $ (166) $ 1,833 December 31, 2021 Trading securities $ 39 $ 1 $ — $ 40 Available-for-sale securities 1,648 33 (132) 1,549 Total debt securities $ 1,687 $ 34 $ (132) $ 1,589 The carrying values of our debt securities were included in the following line items in our consolidated balance sheets (in millions): April 1, 2022 December 31, 2021 Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities Marketable securities $ 40 $ 1,542 $ 40 $ 1,283 Other noncurrent assets — 251 — 266 Total debt securities $ 40 $ 1,793 $ 40 $ 1,549 The contractual maturities of these available-for-sale debt securities as of April 1, 2022 were as follows (in millions): Cost Estimated Within 1 year $ 70 $ 68 After 1 year through 5 years 1,649 1,504 After 5 years through 10 years 43 57 After 10 years 171 164 Total $ 1,933 $ 1,793 The Company expects that actual maturities may differ from the contractual maturities above because borrowers have the right to call or prepay certain obligations. The sale and/or maturity of available-for-sale debt securities resulted in the following realized activity (in millions): Three Months Ended April 1, April 2, Gross gains $ 1 $ 1 Gross losses (5) (4) Proceeds 231 158 Captive Insurance Companies In accordance with local insurance regulations, our consolidated captive insurance companies are required to meet and maintain minimum solvency capital requirements. The Company elected to invest a majority of its solvency capital in a portfolio of marketable equity and debt securities. These securities are included in the disclosures above. The Company uses one of our consolidated captive insurance companies to reinsure group annuity insurance contracts that cover the obligations of certain of our European and Canadian pension plans. This captive’s solvency capital funds included total equity and debt securities of $1,580 million and $1,670 million as of April 1, 2022 and December 31, 2021, respectively, which are classified in the line item other noncurrent assets in our consolidated balance sheets because the assets are not available to satisfy our current obligations. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Apr. 01, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following (in millions): April 1, December 31, Raw materials and packaging $ 2,274 $ 2,133 Finished goods 1,165 982 Other 302 299 Total inventories $ 3,741 $ 3,414 |
HEDGING TRANSACTIONS AND DERIVA
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Apr. 01, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS | HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL 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 April 1, December 31, Assets: Foreign currency contracts Prepaid expenses and other current assets $ 189 $ 151 Foreign currency contracts Other noncurrent assets 66 27 Interest rate contracts Prepaid expenses and other current assets — 1 Interest rate contracts Other noncurrent assets — 282 Total assets $ 255 $ 461 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 40 $ 15 Foreign currency contracts Other noncurrent liabilities 38 17 Interest rate contracts Other noncurrent liabilities 442 14 Total liabilities $ 520 $ 46 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 15 for the net presentation of the Company’s derivative instruments. 2 Refer to Note 15 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 April 1, December 31, 2021 Assets: Foreign currency contracts Prepaid expenses and other current assets $ 90 $ 53 Foreign currency contracts Other noncurrent assets 11 — Commodity contracts Prepaid expenses and other current assets 270 131 Commodity contracts Other noncurrent assets 18 3 Other derivative instruments Prepaid expenses and other current assets 20 9 Total assets $ 409 $ 196 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 68 $ 34 Foreign currency contracts Other noncurrent liabilities 1 9 Commodity contracts Accounts payable and accrued expenses — 6 Commodity contracts Other noncurrent liabilities 3 1 Total liabilities $ 72 $ 50 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 15 for the net presentation of the Company’s derivative instruments. 2 Refer to Note 15 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 accumulated other comprehensive income (loss) (“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 the 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 U.S. dollar net cash inflows from sales outside the United States and U.S. dollar net cash outflows from procurement activities will be adversely affected by fluctuations in foreign currency exchange rates. We enter into forward contracts and purchase foreign currency options and collars (principally euro, British pound sterling and Japanese yen) to hedge certain portions of forecasted cash flows denominated in foreign currencies. When the U.S. dollar strengthens against the foreign currencies, the decline in the present value of future foreign currency cash flows is partially offset by gains in the fair value of the derivative instruments. Conversely, when the U.S. dollar weakens, the increase in the present value of future foreign currency cash flows is partially offset by losses in the fair value of the derivative instruments. The total notional values of derivatives that were designated and qualified for the Company’s foreign currency cash flow hedging program were $7,569 million and $7,399 million as of April 1, 2022 and December 31, 2021, respectively. The Company uses cross-currency swaps to hedge the changes in cash flows of certain of its foreign currency denominated debt and other monetary assets or liabilities due to changes in foreign currency exchange rates. For this hedging program, the Company recognizes in earnings each period the changes in carrying values of these foreign currency denominated assets and liabilities due to changes in exchange rates. The changes in fair values of the cross-currency swap derivatives are recorded in AOCI with an immediate reclassification into earnings for the changes in fair values attributable to fluctuations in foreign currency exchange rates. The total notional values of derivatives that were designated as cash flow hedges for the Company’s foreign currency denominated assets and liabilities were $1,524 million and $1,994 million as of April 1, 2022 and December 31, 2021. 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 were designated as part of the Company’s commodity cash flow hedging program. The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of certain commodities. The total notional value of derivatives that were designated and qualified for this program was $10 million as of December 31, 2021. As of April 1, 2022, we did not have any commodity futures contracts nor other derivative instruments on various commodities designated as a cash flow hedge. Our Company monitors our mix of short-term debt and long-term debt regularly. We manage our risk to interest rate fluctuations through the use of derivative financial instruments. From time to time, the Company enters into interest rate swap agreements and designates 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. As of April 1, 2022 and December 31, 2021, we did not have any interest rate swaps designated as a cash flow hedge. The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings (in millions): Gain (Loss) Location of Gain (Loss) Recognized in Income Gain (Loss) Reclassified from AOCI into Income Three Months Ended April 1, 2022 Foreign currency contracts $ 81 Net operating revenues $ 8 Foreign currency contracts 6 Cost of goods sold 1 Foreign currency contracts — Interest expense (1) Foreign currency contracts (5) Other income (loss) — net (11) Total $ 82 $ (3) Three Months Ended April 2, 2021 Foreign currency contracts $ (23) Net operating revenues $ (23) Foreign currency contracts (5) Cost of goods sold (1) Foreign currency contracts — Interest expense (1) Foreign currency contracts 87 Other income (loss) — net 66 Interest rate contracts 121 Interest expense (5) Total $ 180 $ 36 As of April 1, 2022, 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 result 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 fluctuations in foreign currency exchange rates and benchmark interest rates. The changes in the fair values of derivatives designated as fair value hedges and the offsetting changes in the fair values of the hedged items are recognized in earnings. As a result, any difference is reflected in earnings as ineffectiveness. 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 or has been extinguished. The total notional values of derivatives that were designated and qualified as fair value hedges of this type were $11,717 million and $12,113 million as of April 1, 2022 and December 31, 2021, respectively. The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings (in millions): Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss) Three Months Ended April 1, April 2, Interest rate contracts Interest expense $ (711) $ (395) Fixed-rate debt Interest expense 709 396 Net impact to interest expense $ (2) $ 1 Net impact of fair value hedging instruments $ (2) $ 1 The following table summarizes the amounts recorded in our consolidated balance sheets related to hedged items in fair value hedging relationships (in millions): Cumulative Amount of Fair Value Hedging Adjustments 1 Carrying Values of Included in the Carrying Values of Hedged Items Remaining for Which Hedge Accounting Has Been Discontinued Balance Sheet Location of Hedged Items April 1, December 31, April 1, December 31, April 1, December 31, Current maturities of long-term debt $ — $ 200 $ — $ 1 $ — $ — Long-term debt 11,443 12,353 (445) 255 220 228 1 Cumulative amount of fair value hedging adjustments does not include changes due to foreign currency exchange rate fluctuations. Hedges of Net Investments in Foreign Operations Strategy The Company uses forward contracts and a portion of its foreign currency denominated debt, a non-derivative financial instrument, to protect the value of our net investments in a number of foreign operations. For derivative financial instruments that are designated and qualify as hedges of net investments in foreign operations, the changes in the fair values of the derivative financial instruments are recognized in net foreign currency translation adjustments, a component of AOCI, to offset the changes in the values of the net investments being hedged. For non-derivative financial instruments that are designated and qualify as hedges of net investments in foreign operations, the changes in the carrying values of the designated portions of the non-derivative financial instruments due to fluctuations in foreign currency exchange rates are recorded in net foreign currency translation adjustments. 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 Values Gain (Loss) Recognized in OCI as of Three Months Ended April 1, December 31, April 1, April 2, Foreign currency contracts $ 54 $ 40 $ (6) $ (8) Foreign currency denominated debt 12,457 12,812 355 483 Total $ 12,511 $ 12,852 $ 349 $ 475 The Company did not reclassify any gains or losses related to net investment hedges from AOCI into earnings during the three months ended April 1, 2022 and April 2, 2021. In addition, the Company did not have any ineffectiveness related to net investment hedges during the three months ended April 1, 2022 and April 2, 2021. 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 statement 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 the fair values of economic hedges are immediately recognized in 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 the fair values of economic hedges used to offset those monetary assets and liabilities are immediately recognized in earnings in the line item other income (loss) — net in our consolidated statement 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, including those related to certain acquisition and divestiture activities. The changes in the fair values of economic hedges used to offset the variability in U.S. dollar net cash flows are immediately recognized in earnings in the line items net operating revenues, cost of goods sold or other income (loss) — net in our consolidated statement of income, as applicable. The total notional values of derivatives related to our foreign currency economic hedges were $5,623 million and $4,258 million as of April 1, 2022 and December 31, 2021, respectively. The Company uses interest rate contracts as economic hedges to minimize exposure to changes in the fair value of fixed-rate debt that result from fluctuations in benchmark interest rates. The total notional value of derivatives related to our economic hedges of this type was $200 million as of December 31, 2021. As of April 1, 2022, we did not have any interest rate contracts used as economic hedges. 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 vehicle fuel. The changes in the fair values of these economic hedges are immediately recognized in earnings in the line items net operating revenues, cost of goods sold, or selling, general and administrative expenses in our consolidated statement of income, as applicable. The total notional values of derivatives related to our economic hedges of this type were $859 million and $908 million as of April 1, 2022 and December 31, 2021, respectively. The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions): Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Gain (Loss) Three Months Ended April 1, April 2, Foreign currency contracts Net operating revenues $ (15) $ (1) Foreign currency contracts Cost of goods sold 13 (8) Foreign currency contracts Other income (loss) — net 42 (28) Interest rate contracts Interest expense — (187) Commodity contracts Cost of goods sold 160 82 Other derivative instruments Selling, general and administrative expenses (3) 8 Other derivative instruments Other income (loss) — net — (3) Total $ 197 $ (137) |
DEBT AND BORROWING ARRANGEMENTS
DEBT AND BORROWING ARRANGEMENTS | 3 Months Ended |
Apr. 01, 2022 | |
Debt Disclosure [Abstract] | |
DEBT AND BORROWING ARRANGEMENTS | DEBT AND BORROWING ARRANGEMENTSDuring the three months ended April 1, 2022, the Company retired upon maturity fixed interest rate U.S. dollar-denominated debentures of $288 million with an interest rate of 8.500 percent. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Apr. 01, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees As of April 1, 2022, we were contingently liable for guarantees of indebtedness owed by third parties of $567 million, of which $87 million was related to variable interest entities. Our guarantees are primarily related to third-party customers, bottlers and vendors and have arisen through the normal course of business. These guarantees have various terms, and none of these guarantees is individually significant. These amounts represent the maximum potential future payments that we could be required to make under the guarantees. However, management has concluded that the likelihood of any significant amounts being paid by our Company under these guarantees is not probable. 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 of the Company that may arise as a result of currently pending legal proceedings (excluding tax audit claims) will not have a material adverse effect on the Company taken as a whole. Tax Audits The Company is involved in various tax matters, with respect to some of which the outcome is uncertain. We establish reserves to remove some or all of the tax benefit of any of our tax positions at the time we determine that it becomes uncertain based upon one of the following conditions: (1) the tax position is not “more likely than not” to be sustained; (2) the tax position is “more likely than not” to be sustained but for a lesser amount; or (3) the tax position is “more likely than not” to be sustained but not in the financial period in which the tax position was originally taken. For purposes of evaluating whether or not a tax position is uncertain, (1) we presume the tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information; (2) the technical merits of a tax position are derived from authorities, such as legislation and statutes, legislative intent, regulations, rulings and caselaw 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. The number of years subject to tax audits or 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 quarter in which 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 U.S. Internal Revenue Service (“IRS”) seeking approximately $3.3 billion of additional federal income tax for years 2007 through 2009. In the Notice, the IRS stated its intent to reallocate over $9 billion of income to the U.S. parent company from certain of its foreign affiliates that the U.S. parent company licensed to manufacture, distribute, sell, market and promote its products in certain non-U.S. markets. The Notice concerned the Company’s transfer pricing between its U.S. parent company and certain of its foreign affiliates. IRS rules governing transfer pricing require arm’s-length pricing of transactions between related parties such as the Company’s U.S. parent and its foreign affiliates. To resolve the same transfer pricing issue for the tax years 1987 through 1995, the Company and the IRS had agreed in 1996 on an arm’s-length methodology for determining the amount of U.S. taxable income that the U.S. parent company would report as compensation from its foreign licensees. The Company and the IRS memorialized this accord in a closing agreement resolving that dispute (“Closing Agreement”). The Closing Agreement provided that, absent a change in material facts or circumstances or relevant federal tax law, in calculating the Company’s income taxes going forward, the Company would not be assessed penalties by the IRS for using the agreed-upon tax calculation methodology that the Company and the IRS agreed would be used for the 1987 through 1995 tax years. The IRS audited and confirmed the Company’s compliance with the agreed-upon Closing Agreement methodology in five successive audit cycles for tax years 1996 through 2006. The September 17, 2015 Notice from the IRS retroactively rejected the previously agreed-upon methodology for the 2007 through 2009 tax years in favor of an entirely different methodology, without prior notice to the Company. Using the new tax calculation methodology, the IRS reallocated over $9 billion of income to the U.S. parent company from its foreign licensees for tax years 2007 through 2009. Consistent with the Closing Agreement, the IRS did not assert penalties, and it has yet to do so. The IRS designated the Company’s matter for litigation on October 15, 2015. Litigation designation is an IRS determination that forecloses to a company any and all alternative means for resolution of a tax dispute. As a result of the IRS’ designation of the Company’s matter for litigation, the Company was forced to either accept the IRS’ newly imposed tax assessment and pay the full amount of the asserted tax or litigate the matter in the federal courts. The matter remains subject to the IRS’ litigation designation, preventing the Company from any attempt to settle or otherwise mutually resolve the matter with the IRS. The Company consequently initiated litigation by filing a petition in the U.S. Tax Court (“Tax Court”) in December 2015, challenging the tax adjustments enumerated in the Notice. Prior to trial, the IRS increased its transfer pricing adjustment by $385 million, resulting in an additional tax adjustment of $135 million. The Company obtained a summary judgment in its favor on a different matter related to Mexican foreign tax credits, which thereafter effectively reduced the IRS’ potential tax adjustment by approximately $138 million. The trial was held in the Tax Court from March through May 2018, and final post-trial briefs were filed and exchanged in April 2019. On November 18, 2020, the Tax Court issued an opinion (“Opinion”) in which it predominantly sided with the IRS but agreed with the Company that dividends previously paid by the foreign licensees to the U.S. parent company in reliance upon the Closing Agreement should continue to be allowed to offset royalties, including those that would become payable to the Company in accordance with the Opinion. The Tax Court reserved ruling on the effect of Brazilian legal restrictions on the payment of royalties by the Company’s licensee in Brazil until after the Tax Court issues its opinion in the separate case of 3M Co. & Subs. v. Commissioner, T.C. Docket No. 5816-13 (filed March 11, 2013). Once the Tax Court issues its opinion in 3M Co. & Subs. v. Commissioner, the Company expects the Tax Court thereafter to render another opinion, and ultimately a final decision, in the Company’s case. The Company believes that the IRS and the Tax Court misinterpreted and misapplied the applicable regulations in reallocating income earned by the Company’s foreign licensees to increase the Company’s U.S. tax. Moreover, the Company believes that the retroactive imposition of such tax liability using a calculation methodology different from that previously agreed upon by the IRS and the Company, and audited by the IRS for over a decade, is unconstitutional. The Company intends to assert its claims on appeal and vigorously defend its position. In determining the amount of tax reserve to be recorded as of December 31, 2020, the Company completed the required two-step evaluation process prescribed by Accounting Standards Codification 740, Accounting for Income Taxes . In doing so, we consulted with outside advisors and we reviewed and considered relevant laws, rules, and regulations, including, but not limited to, the Opinion and relevant caselaw. We also considered our intention to vigorously defend our positions and assert our various well-founded legal claims via every available avenue of appeal. We concluded, based on the technical and legal merits of the Company’s tax positions, that it is more likely than not the Company’s tax positions will ultimately be sustained on appeal. In addition, we considered a number of alternative transfer pricing methodologies, including the methodology asserted by the IRS and affirmed in the Opinion (“Tax Court Methodology”), that could be applied by the courts upon final resolution of the litigation. Based on the required probability analysis, we determined the methodologies we believe the federal courts could ultimately order to be used in calculating the Company’s tax. As a result of this analysis, we recorded a tax reserve of $438 million during the year ended December 31, 2020 related to the application of the resulting methodologies as well as the different tax treatment applicable to dividends originally paid to the U.S. parent company by its foreign licensees, in reliance upon the Closing Agreement, that would be recharacterized as royalties in accordance with the Opinion and the Company’s analysis. The Company’s conclusion that it is more likely than not the Company’s tax positions will ultimately be sustained on appeal is unchanged as of April 1, 2022. However, we updated our calculation of the methodologies we believe the federal courts could ultimately order to be used in calculating the Company’s tax. As a result of the application of the required probability analysis to these updated calculations and the accrual of interest through the current reporting period, we updated our tax reserve as of April 1, 2022 to $410 million. While the Company strongly disagrees with the IRS’ positions and the portions of the Opinion affirming such positions, it is possible that some portion or all of the adjustment proposed by the IRS and sustained by the Tax Court could ultimately be upheld. In that event, the Company would likely be subject to significant additional liabilities for tax years 2007 through 2009, and potentially also for subsequent years, which could have a material adverse impact on the Company’s financial position, results of operations and cash flows. The Company calculated the potential impact of applying the Tax Court Methodology to reallocate income from foreign licensees potentially covered within the scope of the Opinion, assuming such methodology were to be ultimately upheld by the courts, and the IRS were to decide to apply that methodology to subsequent years, with consent of the federal courts. This impact would include taxes and interest accrued through December 31, 2021 for the 2007 through 2009 litigated tax years and for subsequent tax years from 2010 through 2021. The calculations incorporated the estimated impact of correlative adjustments to the previously accrued transition tax payable under the 2017 Tax Cuts and Jobs Act. The Company estimates that the potential aggregate incremental tax and interest liability could be approximately $13 billion as of December 31, 2021. Additional income tax and interest would continue to accrue until the time any such potential liability, or portion thereof, were to be paid. The Company estimates the impact of the continued application of the Tax Court Methodology for the three months ended April 1, 2022 would increase the potential aggregate incremental tax and interest liability by approximately $250 million. Additionally, we currently project the continued application of the Tax Court Methodology in future years, assuming similar facts and circumstances as of December 31, 2021, would result in an incremental annual tax liability that would increase the Company’s effective tax rate by approximately 3.5 percent. The Company does not know when the Tax Court will issue its opinion regarding the effect of Brazilian legal restrictions on the payment of royalties by the Company’s licensee in Brazil for the 2007 through 2009 tax years. After the Tax Court issues its opinion on the Company’s Brazilian licensee, the Company and the IRS will be provided time to agree on the tax impact, if any, of both opinions, after which the Tax Court would render a final decision in the case. The Company will have 90 days thereafter to file a notice of appeal to the U.S. Court of Appeals for the Eleventh Circuit and pay the tax liability and interest related to the 2007 through 2009 tax years. The Company currently estimates that the payment to be made at that time related to the 2007 through 2009 tax years, which is included in the above estimate of the potential aggregate incremental tax and interest liability, would be approximately $5.0 billion (including interest accrued through April 1, 2022), plus any additional interest accrued through the time of payment. Some or all of this amount would be refunded if the Company were to prevail on appeal. 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 claims history. Our self-insurance reserves totaled $228 million and $229 million as of April 1, 2022 and December 31, 2021, respectively. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Apr. 01, 2022 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME | OTHER COMPREHENSIVE INCOME AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our consolidated balance sheet 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 sheet 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): April 1, December 31, Net foreign currency translation adjustments $ (11,719) $ (12,595) Accumulated net gains (losses) on derivatives 84 20 Unrealized net gains (losses) on available-for-sale debt securities (97) (62) Adjustments to pension and other postretirement benefit liabilities (1,608) (1,693) Accumulated other comprehensive income (loss) $ (13,340) $ (14,330) The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions): Three Months Ended April 1, 2022 Shareowners of Noncontrolling Total Consolidated net income $ 2,781 $ 12 $ 2,793 Other comprehensive income: Net foreign currency translation adjustments 876 133 1,009 Net gains (losses) on derivatives 1 64 — 64 Net change in unrealized gains (losses) on available-for-sale debt securities 2 (35) — (35) Net change in pension and other postretirement benefit liabilities 85 — 85 Total comprehensive income (loss) $ 3,771 $ 145 $ 3,916 1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments. 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities. The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees’ OCI (in millions): Three Months Ended April 1, 2022 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ 1,324 $ (240) $ 1,084 Reclassification adjustments recognized in net income 200 — 200 Gains (losses) on intra-entity transactions that are of a long-term investment nature (670) — (670) Gains (losses) on net investment hedges arising during the period 1 349 (87) 262 Net foreign currency translation adjustments $ 1,203 $ (327) $ 876 Derivatives: Gains (losses) arising during the period $ 83 $ (21) $ 62 Reclassification adjustments recognized in net income 3 (1) 2 Net gains (losses) on derivatives 1 $ 86 $ (22) $ 64 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (46) $ 8 $ (38) Reclassification adjustments recognized in net income 4 (1) 3 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (42) $ 7 $ (35) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ 68 $ (4) $ 64 Reclassification adjustments recognized in net income 28 (7) 21 Net change in pension and other postretirement benefit liabilities $ 96 $ (11) $ 85 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ 1,343 $ (353) $ 990 1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments. 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities. Three Months Ended April 2, 2021 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ 624 $ (23) $ 601 Gains (losses) on intra-entity transactions that are of a long-term investment nature (954) — (954) Gains (losses) on net investment hedges arising during the period 1 475 (118) 357 Net foreign currency translation adjustments $ 145 $ (141) $ 4 Derivatives: Gains (losses) arising during the period $ 174 $ (43) $ 131 Reclassification adjustments recognized in net income (36) 9 (27) Net gains (losses) on derivatives 1 $ 138 $ (34) $ 104 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (92) $ 30 $ (62) Reclassification adjustments recognized in net income 3 (1) 2 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (89) $ 29 $ (60) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ 453 $ (109) $ 344 Reclassification adjustments recognized in net income 101 (25) 76 Net change in pension and other postretirement benefit liabilities $ 554 $ (134) $ 420 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ 748 $ (280) $ 468 1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments. 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities. The following table presents the amounts and line items in our consolidated statement of income where adjustments reclassified from AOCI into income were recorded (in millions): Amount Reclassified from AOCI into Income Description of AOCI Component Financial Statement Line Item Three Months Ended April 1, 2022 Foreign currency translation adjustments: Divestitures, deconsolidations and other 1 Other income (loss) — net $ 200 Income before income taxes 200 Income taxes — Consolidated net income $ 200 Derivatives: Foreign currency contracts Net operating revenues $ (8) Foreign currency contracts Cost of goods sold (1) Foreign currency contracts Interest expense 1 Foreign currency contracts Other income (loss) — net 11 Income before income taxes 3 Income taxes (1) Consolidated net income $ 2 Available-for-sale debt securities: Sale of debt securities Other income (loss) — net $ 4 Income before income taxes 4 Income taxes (1) Consolidated net income $ 3 Pension and other postretirement benefit liabilities: Recognized net actuarial loss Other income (loss) — net $ 29 Recognized prior service cost (credit) Other income (loss) — net (1) Income before income taxes 28 Income taxes (7) Consolidated net income $ 21 |
CHANGES IN EQUITY
CHANGES IN EQUITY | 3 Months Ended |
Apr. 01, 2022 | |
Equity [Abstract] | |
CHANGES IN EQUITY | CHANGES IN EQUITY The following tables provide a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to shareowners of The Coca-Cola Company and equity attributable to noncontrolling interests (in millions): Shareowners of The Coca-Cola Company Three Months Ended April 1, 2022 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests December 31, 2021 4,325 $ 24,860 $ 69,094 $ (14,330) $ 1,760 $ 18,116 $ (51,641) $ 1,861 Comprehensive income (loss) — 3,916 2,781 990 — — — 145 Dividends paid/payable to — (1,906) (1,906) — — — — — Dividends paid to noncontrolling interests — (9) — — — — — (9) Acquisition of interests held by — (1) — — — — — (1) Purchases of treasury stock (8) (471) — — — — (471) — Impact related to stock-based 14 451 — — — 271 180 — Other activities — 1 — — — 1 — — April 1, 2022 4,331 $ 26,841 $ 69,969 $ (13,340) $ 1,760 $ 18,388 $ (51,932) $ 1,996 Shareowners of The Coca-Cola Company Three Months Ended April 2, 2021 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests December 31, 2020 4,302 $ 21,284 $ 66,555 $ (14,601) $ 1,760 $ 17,601 $ (52,016) $ 1,985 Adoption of accounting standards 1 — 19 19 — — — — — Comprehensive income (loss) — 2,723 2,245 468 — — — 10 Dividends paid/payable to — (1,810) (1,810) — — — — — Dividends paid to noncontrolling — (18) — — — — — (18) Impact related to stock-based 9 134 — — — 29 105 — April 2, 2021 4,311 $ 22,332 $ 67,009 $ (14,133) $ 1,760 $ 17,630 $ (51,911) $ 1,977 1 Represents the adoption of Accounting Standards Update 2019-12, Simplifying the Accounting for Income Taxes |
SIGNIFICANT OPERATING AND NONOP
SIGNIFICANT OPERATING AND NONOPERATING ITEMS | 3 Months Ended |
Apr. 01, 2022 | |
Other Income and Expenses [Abstract] | |
SIGNIFICANT OPERATING AND NONOPERATING ITEMS | SIGNIFICANT OPERATING AND NONOPERATING ITEMS Other Operating Charges During the three months ended April 1, 2022, the Company recorded other operating charges of $28 million. These charges primarily consisted of $22 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, LLC (“fairlife”) in 2020, $10 million related to the Company’s productivity and reinvestment program and $2 million related to the restructuring of our manufacturing operations in the United States. These charges were partially offset by a net gain of $5 million, which included the reimbursement of distributor termination fees for BA Sports Nutrition, LLC (“BodyArmor”) recorded in the prior year partially offset by various transition and transaction costs, employee retention costs and the amortization of noncompete agreements, and income of $1 million related to the Company’s strategic realignment initiatives primarily as a result of a revision to estimated severance costs accrued in the prior year. During the three months ended April 2, 2021, the Company recorded other operating charges of $124 million. These charges primarily consisted of $93 million related to the Company’s strategic realignment initiatives and $18 million related to the Company’s productivity and reinvestment program. In addition, other operating charges included $4 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition and $9 million related to tax litigation expense. Refer to Note 8 for additional information related to the tax litigation. Refer to Note 12 for additional information on the Company’s productivity and reinvestment program. Refer to Note 15 for additional information on the fairlife acquisition. Refer to Note 16 for the impact these charges had on our operating segments and Corporate. Other Nonoperating Items Interest Expense During the three months ended April 2, 2021, the Company recorded charges of $58 million related to the extinguishment of long-term debt. Equity Income (Loss) — Net During the three months ended April 1, 2022 and April 2, 2021, the Company recorded net gains of $5 million and $37 million, respectively. These amounts represent the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Other Income (Loss) — Net During the three months ended April 1, 2022, the Company recorded a net loss of $104 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities and a net loss of $24 million as a result of one of our equity method investees issuing additional shares of its stock. During the three months ended April 2, 2021, the Company recognized a net gain of $133 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. The Company also recorded pension settlement charges of $54 million related to our strategic realignment initiatives. Refer to Note 4 for additional information on equity and debt securities. Refer to Note 15 for additional information on one of our equity method investees issuing additional shares of its stock. Refer to Note 16 for the impact these items had on our operating segments and Corporate. |
RESTRUCTURING
RESTRUCTURING | 3 Months Ended |
Apr. 01, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING In February 2012, the Company announced a productivity and reinvestment program designed to strengthen our brands and reinvest our resources to drive long-term profitable growth. The program was expanded multiple times, with the last expansion occurring in April 2017. While we expect most of the remaining initiatives included in this program, which are primarily designed to further simplify and standardize our organization, to be completed by the end of 2023, certain initiatives may extend into 2024. During the three months ended April 1, 2022 and April 2, 2021, the Company incurred expenses of $10 million and $18 million, respectively, related to our productivity and reinvestment program. These expenses primarily included internal and external costs associated with the implementation of these initiatives and were recorded in the line item other operating charges in our consolidated statements of income. Refer to Note 16 for the impact these expenses had on our operating segments and Corporate. The Company has incurred total pretax expenses of $4,054 million related to this program since it commenced. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 3 Months Ended |
Apr. 01, 2022 | |
Retirement Benefits [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Net periodic benefit cost or income for our pension and other postretirement benefit plans consisted of the following (in millions): Pension Plans Other Postretirement Three Months Ended April 1, April 2, April 1, April 2, Service cost $ 22 $ 24 $ 2 $ 2 Interest cost 51 44 4 4 Expected return on plan assets 1 (149) (151) (4) (4) Amortization of prior service credit — — (1) (1) Amortization of net actuarial loss 29 47 — 1 Net periodic benefit cost (income) (47) (36) 1 2 Settlement charges 2 — 54 — — Total cost (income) $ (47) $ 18 $ 1 $ 2 1 The weighted-average expected long-term rates of return on plan assets used in computing 2022 net periodic benefit cost (income) were 7.00 percent for pension plans and 4.00 percent for other postretirement benefit plans. 2 Settlement charges were primarily related to our strategic realignment initiatives. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Apr. 01, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded income taxes of $665 million (19.2 percent effective tax rate) and $508 million (18.4 percent effective tax rate) during the three months ended April 1, 2022 and April 2, 2021, respectively. The Company’s effective tax rates for the three months ended April 1, 2022 and April 2, 2021 vary from the statutory U.S. federal income tax rate of 21.0 percent primarily due to the tax impact of significant operating and nonoperating items, as described in Note 11, along with the tax benefits of having significant earnings generated outside the United States and significant earnings generated in investments accounted for under the equity method, both of which are generally taxed at rates lower than the statutory U.S. rate. On November 18, 2020, the Tax Court issued the Opinion regarding the Company’s 2015 litigation with the IRS involving transfer pricing tax adjustments in which the court predominantly sided with the IRS. The Company strongly disagrees with the Opinion and intends to vigorously defend its position. Refer to Note 8. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Apr. 01, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following tables summarize assets and liabilities measured at fair value on a recurring basis (in millions): April 1, 2022 Level 1 Level 2 Level 3 Other 3 Netting 4 Fair Value Assets: Equity securities with readily determinable values 1 $ 2,258 $ 220 $ 16 $ 101 $ — $ 2,595 Debt securities 1 — 1,822 11 — — 1,833 Derivatives 2 154 510 — — (432) 6 232 8 Total assets $ 2,412 $ 2,552 $ 27 $ 101 $ (432) $ 4,660 Liabilities: Contingent consideration liability $ — $ — $ 612 5 $ — $ — $ 612 Derivatives 2 — 592 — — (580) 7 12 8 Total liabilities $ — $ 592 $ 612 $ — $ (580) $ 624 1 Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities. 2 Refer to Note 6 for additional information related to the composition of our derivatives portfolio. 3 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 4. 4 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 6. 5 Represents the fair value of future milestone payments related to our acquisition of fairlife in 2020, which are contingent on fairlife achieving certain financial targets through 2024 and, if achieved, are payable in 2023 and 2025. These milestone payments are based on agreed-upon formulas related to fairlife’s operating results, the resulting values of which are not subject to a ceiling. 6 The Company is obligated to return $70 million in cash collateral it has netted against its derivative positions. 7 The Company has the right to reclaim $344 million in cash collateral it has netted against its derivative positions. 8 The Company’s derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $137 million in the line item prepaid expenses and other current assets, $95 million in the line item other noncurrent assets and $12 million in the line item other noncurrent liabilities. Refer to Note 6 for additional information related to the composition of our derivatives portfolio. December 31, 2021 Level 1 Level 2 Level 3 Other 3 Netting 4 Fair Value Assets: Equity securities with readily determinable values 1 $ 2,372 $ 230 $ 17 $ 104 $ — $ 2,723 Debt securities 1 — 1,556 33 — — 1,589 Derivatives 2 69 588 — — (459) 6 198 8 Total assets $ 2,441 $ 2,374 $ 50 $ 104 $ (459) $ 4,510 Liabilities: Contingent consideration liability $ — $ — $ 590 5 $ — $ — $ 590 Derivatives 2 — 96 — — (82) 7 14 8 Total liabilities $ — $ 96 $ 590 $ — $ (82) $ 604 1 Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities. 2 Refer to Note 6 for additional information related to the composition of our derivatives portfolio. 3 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 4. 4 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 6. 5 Represents the fair value of future milestone payments related to our acquisition of fairlife in 2020, which are contingent on fairlife achieving certain financial targets through 2024 and, if achieved, are payable in 2023 and 2025. These milestone payments are based on agreed-upon formulas related to fairlife’s operating results, the resulting values of which are not subject to a ceiling. 6 The Company is obligated to return $331 million in cash collateral it has netted against its derivative positions. 7 The Company does not have the right to reclaim any cash collateral it has netted against its derivative positions. 8 The Company’s derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $198 million in the line item other noncurrent assets and $14 million in the line item other noncurrent liabilities. Refer to Note 6 for additional information related to the composition of our derivatives portfolio. Gross realized and unrealized gains and losses on Level 3 assets and liabilities were not significant for the three months ended April 1, 2022 and April 2, 2021. The Company recognizes transfers between l evels within the hierarchy as of the beginning of the reporting period. Gross transfers between levels within the hierarchy were not significant for the three months ended April 1, 2022 and April 2, 2021. Nonrecurring Fair Value Measurements We recognized a net loss of $24 million on assets measured at fair value on a nonrecurring basis during the three months ended April 1, 2022. We did not recognize any gains or losses on assets measured at fair value on a nonrecurring basis during the three months ended April 2, 2021. The net loss in 2022 was recorded as a result of an equity method investee issuing additional shares of its stock. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment. This net loss was determined using Level 2 inputs and primarily resulted from the recognition of cumulative translation losses. Other Fair Value Disclosures The carrying values of cash and cash equivalents; short-term investments; trade accounts receivable; 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, the fair value is estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of the debt instruments. As of April 1, 2022, the carrying value and fair value of our long-term debt, including the current portion, were $38,091 million and $36,522 million, respectively. As of December 31, 2021, the carrying value and fair value of our long-term debt, including the current portion, were $39,454 million and $40,311 million, respectively. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 3 Months Ended |
Apr. 01, 2022 | |
Segment Reporting [Abstract] | |
OPERATING SEGMENTS | OPERATING SEGMENTS Information about our Company’s operations by operating segment and Corporate is as follows (in millions): Europe, Middle East & Africa Latin North Asia Pacific Global Ventures Bottling Corporate Eliminations Consolidated As of and for the Three Months Ended April 1, 2022 Net operating revenues: Third party $ 1,661 $ 1,214 $ 3,589 $ 1,231 $ 729 $ 2,042 $ 25 $ — $ 10,491 Intersegment 172 — 1 180 — 2 — (355) — Total net operating revenues 1,833 1,214 3,590 1,411 729 2,044 25 (355) 10,491 Operating income (loss) 1,007 760 1,056 664 51 193 (326) — 3,405 Income (loss) before income taxes 1,023 757 1,064 670 56 393 (505) — 3,458 Identifiable operating assets 8,092 2 1,988 26,395 2,574 3 7,755 10,710 2,3 17,564 — 75,078 Investments 1 415 633 19 232 — 13,193 4,494 — 18,986 As of and for the Three Months Ended April 2, 2021 Net operating revenues: Third party $ 1,462 $ 909 $ 2,936 $ 1,232 $ 570 $ 1,894 $ 17 $ — $ 9,020 Intersegment 161 — 1 170 — 2 — (334) — Total net operating revenues 1,623 909 2,937 1,402 570 1,896 17 (334) 9,020 Operating income (loss) 820 552 792 686 26 141 (295) — 2,722 Income (loss) before income taxes 830 555 816 695 27 317 (477) — 2,763 Identifiable operating assets 8,335 2 1,650 19,792 2,332 3 7,843 10,426 2,3 19,843 — 70,221 Investments 1 466 595 343 249 4 13,833 4,282 — 19,772 As of December 31, 2021 Identifiable operating assets $ 7,908 2 $ 1,720 $ 25,730 $ 2,355 3 $ 7,949 $ 10,312 2,3 $ 19,964 $ — $ 75,938 Investments 1 436 594 21 230 — 12,669 4,466 — 18,416 1 Principally equity method investments and other investments in bottling companies. 2 Property, plant and equipment — net in South Africa represented 17 percent, 15 percent and 16 percent of consolidated property, plant and equipment — net as of April 1, 2022, April 2, 2021 and December 31, 2021, respectively. 3 Property, plant and equipment — net in the Philippines represented 10 percent of consolidated property, plant and equipment — net as of April 1, 2022, April 2, 2021 and December 31, 2021. During the three months ended April 1, 2022, the results of our operating segments and Corporate were impacted by the following items: • Operating income (loss) and income (loss) before income taxes were increased by $19 million for North America and were reduced by $14 million for Corporate related to our acquisition of BodyArmor in 2021. Refer to Note 11. • Operating income (loss) and income (loss) before income taxes were reduced by $22 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition in 2020. Refer to Note 15. • Operating income (loss) and income (loss) before income taxes were reduced by $11 million and $12 million, respectively, for North America related to the restructuring of our manufacturing operations in the United States. • Operating income (loss) and income (loss) before income taxes were reduced by $10 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 12. • Income (loss) before income taxes was increased by $5 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. • Income (loss) before income taxes was reduced by $104 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4. • Income (loss) before income taxes was reduced by $24 million for Corporate due to one of our equity method investees issuing additional shares of its stock. Refer to Note 15. During the three months ended April 2, 2021, the results of our operating segments and Corporate were impacted by the following items: • Operating income (loss) and income (loss) before income taxes were reduced by $50 million for Europe, Middle East and Africa, $11 million for Latin America, $12 million for North America and $13 million for Asia Pacific, and operating income (loss) and income (loss) before income taxes were reduced by $7 million and $61 million, respectively, for Corporate due to the Company’s strategic realignment initiatives. • Operating income (loss) and income (loss) before income taxes were reduced by $19 million for North America related to the restructuring of our manufacturing operations in the United States. • Operating income (loss) and income (loss) before income taxes were reduced by $18 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 12. • Operating income (loss) and income (loss) before income taxes were reduced by $9 million for Corporate related to tax litigation expense. Refer to Note 8. • Operating income (loss) and income (loss) before income taxes were reduced by $4 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 15. • Income (loss) before income taxes was increased by $133 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4. • Income (loss) before income taxes was increased by $5 million for Bottling Investments and $32 million for Corporate due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. • Income (loss) before income taxes was reduced by $58 million for Corporate related to charges associated with the extinguishment of long-term debt. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Apr. 01, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all information and notes required by U.S. GAAP for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of The Coca-Cola Company for the year ended December 31, 2021. When used in these notes, the terms “The Coca-Cola Company,” “Company,” “we,” “us” and “our” mean The Coca-Cola Company and all entities included in our consolidated financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended April 1, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Sales of our ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters typically accounting for the highest sales volumes. The volume of sales in the beverage business may be affected by weather conditions. Each of our quarterly reporting periods, other than the fourth quarter, ends on the Friday closest to the last day of the corresponding quarterly calendar period. The first quarter of 2022 and the first quarter of 2021 ended on April 1, 2022 and April 2, 2021, respectively. Our fourth quarter and our fiscal year end on December 31 regardless of the day of the week on which December 31 falls. |
Advertising Costs | Advertising Costs The Company’s accounting policy related to advertising costs for annual reporting purposes is to expense production costs of print, radio, television and other advertisements as of the first date the advertisements take place. All other marketing expenditures are expensed in the annual period in which the expenditure is incurred. For quarterly reporting purposes, we allocate our estimated full year marketing expenditures that benefit multiple quarters to each of those quarters. We use the proportion of each quarter’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 quarter, we review our estimated full year unit case volume and our estimated full year marketing expenditures that benefit multiple quarters in order to evaluate if a change in estimate is necessary. The impact of any change in the full year estimate is recognized in the quarter in which the change in estimate occurs. Our full year marketing expenditures are not impacted by this interim accounting policy. |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | Cash, Cash Equivalents, Restricted Cash and Restricted 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 or restricted cash equivalents, as applicable. Restricted cash and restricted cash equivalents generally consist of amounts held by our captive insurance companies, which are included in the line item other noncurrent assets on our consolidated balance sheet. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor our concentrations of credit risk. The following tables provide a summary of cash, cash equivalents, restricted cash and restricted cash equivalents that constitute the total amounts shown in our consolidated statements of cash flows (in millions): April 1, December 31, Cash and cash equivalents $ 7,681 $ 9,684 Restricted cash and restricted cash equivalents included in other noncurrent assets 1,2 311 341 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 7,992 $ 10,025 1 Amounts represent restricted cash and restricted cash equivalents in our solvency capital portfolio set aside primarily to cover pension obligations in certain of our European and Canadian pension plans. Refer to Note 4. 2 Restricted cash and restricted cash equivalents include amounts related to assets held for sale. Refer to Note 2. April 2, December 31, Cash and cash equivalents $ 8,484 $ 6,795 Restricted cash and restricted cash equivalents included in other noncurrent assets 1 327 315 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 8,811 $ 7,110 1 Amounts represent restricted cash and restricted cash equivalents in our solvency capital portfolio set aside primarily to cover pension obligations in certain of our European and Canadian pension plans. Refer to Note 4. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | The following tables provide a summary of cash, cash equivalents, restricted cash and restricted cash equivalents that constitute the total amounts shown in our consolidated statements of cash flows (in millions): April 1, December 31, Cash and cash equivalents $ 7,681 $ 9,684 Restricted cash and restricted cash equivalents included in other noncurrent assets 1,2 311 341 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 7,992 $ 10,025 1 Amounts represent restricted cash and restricted cash equivalents in our solvency capital portfolio set aside primarily to cover pension obligations in certain of our European and Canadian pension plans. Refer to Note 4. 2 Restricted cash and restricted cash equivalents include amounts related to assets held for sale. Refer to Note 2. April 2, December 31, Cash and cash equivalents $ 8,484 $ 6,795 Restricted cash and restricted cash equivalents included in other noncurrent assets 1 327 315 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 8,811 $ 7,110 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Assets and Liabilities Classified as Held for Sale | The following table presents information related to the major classes of assets and liabilities that were classified as held for sale and were included in the line items prepaid expenses and other current assets and accounts payable and accrued expenses, respectively, in our consolidated balance sheets (in millions): April 1, December 31, 2021 Cash, cash equivalents and short-term investments $ 220 $ 228 Trade accounts receivable, less allowances 15 21 Inventories 50 55 Prepaid expenses and other current assets 42 36 Other noncurrent assets 36 9 Deferred income tax assets 6 6 Property, plant and equipment — net 287 282 Goodwill 36 37 Assets held for sale $ 692 $ 674 Accounts payable and accrued expenses $ 137 $ 139 Accrued income taxes 5 4 Other noncurrent liabilities 9 9 Deferred income tax liabilities 5 5 Liabilities held for sale $ 156 $ 157 |
NET OPERATING REVENUES (Tables)
NET OPERATING REVENUES (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following table presents net operating revenues disaggregated between the United States and International and further by line of business (in millions): United States International Total Three Months Ended April 1, 2022 Concentrate operations $ 1,641 $ 4,083 $ 5,724 Finished product operations 1,882 2,885 4,767 Total $ 3,523 $ 6,968 $ 10,491 Three Months Ended April 2, 2021 Concentrate operations $ 1,410 $ 3,572 $ 4,982 Finished product operations 1,483 2,555 4,038 Total $ 2,893 $ 6,127 $ 9,020 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Carrying value of equity securities by balance sheet location | The carrying values of our equity securities were included in the following line items in our consolidated balance sheets (in millions): Fair Value with Changes Recognized in Income Measurement Alternative — No Readily Determinable Fair Value April 1, 2022 Marketable securities $ 357 $ — Other investments 745 43 Other noncurrent assets 1,493 — Total equity securities $ 2,595 $ 43 December 31, 2021 Marketable securities $ 376 $ — Other investments 771 47 Other noncurrent assets 1,576 — Total equity securities $ 2,723 $ 47 |
Net unrealized gains and losses related to equity securities still held at the end of the period | The calculation of net unrealized gains and losses recognized during the period related to equity securities still held at the end of the period is as follows (in millions): Three Months Ended April 1, April 2, Net gains (losses) recognized during the period related to equity securities $ (100) $ 155 Less: Net gains (losses) recognized during the period related to equity securities sold during the period (132) 14 Net unrealized gains (losses) recognized during the period related to equity securities still held at the end of the period $ 32 $ 141 |
Schedule of available-for-sale and trading securities | Our debt securities consisted of the following (in millions): Gross Unrealized Estimated Cost Gains Losses April 1, 2022 Trading securities $ 41 $ — $ (1) $ 40 Available-for-sale securities 1,933 25 (165) 1,793 Total debt securities $ 1,974 $ 25 $ (166) $ 1,833 December 31, 2021 Trading securities $ 39 $ 1 $ — $ 40 Available-for-sale securities 1,648 33 (132) 1,549 Total debt securities $ 1,687 $ 34 $ (132) $ 1,589 |
Carrying values of debt securities by balance sheet location | The carrying values of our debt securities were included in the following line items in our consolidated balance sheets (in millions): April 1, 2022 December 31, 2021 Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities Marketable securities $ 40 $ 1,542 $ 40 $ 1,283 Other noncurrent assets — 251 — 266 Total debt securities $ 40 $ 1,793 $ 40 $ 1,549 |
Contractual maturities of available-for-sale debt securities | The contractual maturities of these available-for-sale debt securities as of April 1, 2022 were as follows (in millions): Cost Estimated Within 1 year $ 70 $ 68 After 1 year through 5 years 1,649 1,504 After 5 years through 10 years 43 57 After 10 years 171 164 Total $ 1,933 $ 1,793 |
Realized Gain (Loss) on Investments | The sale and/or maturity of available-for-sale debt securities resulted in the following realized activity (in millions): Three Months Ended April 1, April 2, Gross gains $ 1 $ 1 Gross losses (5) (4) Proceeds 231 158 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): April 1, December 31, Raw materials and packaging $ 2,274 $ 2,133 Finished goods 1,165 982 Other 302 299 Total inventories $ 3,741 $ 3,414 |
HEDGING TRANSACTIONS AND DERI_2
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Fair value of derivative instruments designated and qualified as part of hedging relationship | 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 April 1, December 31, Assets: Foreign currency contracts Prepaid expenses and other current assets $ 189 $ 151 Foreign currency contracts Other noncurrent assets 66 27 Interest rate contracts Prepaid expenses and other current assets — 1 Interest rate contracts Other noncurrent assets — 282 Total assets $ 255 $ 461 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 40 $ 15 Foreign currency contracts Other noncurrent liabilities 38 17 Interest rate contracts Other noncurrent liabilities 442 14 Total liabilities $ 520 $ 46 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 15 for the net presentation of the Company’s derivative instruments. 2 Refer to Note 15 for additional information related to the estimated fair value. |
Derivatives 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 April 1, December 31, 2021 Assets: Foreign currency contracts Prepaid expenses and other current assets $ 90 $ 53 Foreign currency contracts Other noncurrent assets 11 — Commodity contracts Prepaid expenses and other current assets 270 131 Commodity contracts Other noncurrent assets 18 3 Other derivative instruments Prepaid expenses and other current assets 20 9 Total assets $ 409 $ 196 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 68 $ 34 Foreign currency contracts Other noncurrent liabilities 1 9 Commodity contracts Accounts payable and accrued expenses — 6 Commodity contracts Other noncurrent liabilities 3 1 Total liabilities $ 72 $ 50 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 15 for the net presentation of the Company’s derivative instruments. 2 Refer to Note 15 for additional information related to the estimated fair value. |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) and Other Comprehensive Income (OCI) | The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings (in millions): Gain (Loss) Location of Gain (Loss) Recognized in Income Gain (Loss) Reclassified from AOCI into Income Three Months Ended April 1, 2022 Foreign currency contracts $ 81 Net operating revenues $ 8 Foreign currency contracts 6 Cost of goods sold 1 Foreign currency contracts — Interest expense (1) Foreign currency contracts (5) Other income (loss) — net (11) Total $ 82 $ (3) Three Months Ended April 2, 2021 Foreign currency contracts $ (23) Net operating revenues $ (23) Foreign currency contracts (5) Cost of goods sold (1) Foreign currency contracts — Interest expense (1) Foreign currency contracts 87 Other income (loss) — net 66 Interest rate contracts 121 Interest expense (5) Total $ 180 $ 36 |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings (in millions): Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss) Three Months Ended April 1, April 2, Interest rate contracts Interest expense $ (711) $ (395) Fixed-rate debt Interest expense 709 396 Net impact to interest expense $ (2) $ 1 Net impact of fair value hedging instruments $ (2) $ 1 The following table summarizes the amounts recorded in our consolidated balance sheets related to hedged items in fair value hedging relationships (in millions): Cumulative Amount of Fair Value Hedging Adjustments 1 Carrying Values of Included in the Carrying Values of Hedged Items Remaining for Which Hedge Accounting Has Been Discontinued Balance Sheet Location of Hedged Items April 1, December 31, April 1, December 31, April 1, December 31, Current maturities of long-term debt $ — $ 200 $ — $ 1 $ — $ — Long-term debt 11,443 12,353 (445) 255 220 228 1 Cumulative amount of fair value hedging adjustments does not include changes due to foreign currency exchange rate fluctuations. |
Notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges | 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 Values Gain (Loss) Recognized in OCI as of Three Months Ended April 1, December 31, April 1, April 2, Foreign currency contracts $ 54 $ 40 $ (6) $ (8) Foreign currency denominated debt 12,457 12,812 355 483 Total $ 12,511 $ 12,852 $ 349 $ 475 |
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 (in millions): Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Gain (Loss) Three Months Ended April 1, April 2, Foreign currency contracts Net operating revenues $ (15) $ (1) Foreign currency contracts Cost of goods sold 13 (8) Foreign currency contracts Other income (loss) — net 42 (28) Interest rate contracts Interest expense — (187) Commodity contracts Cost of goods sold 160 82 Other derivative instruments Selling, general and administrative expenses (3) 8 Other derivative instruments Other income (loss) — net — (3) Total $ 197 $ (137) |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Equity [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): April 1, December 31, Net foreign currency translation adjustments $ (11,719) $ (12,595) Accumulated net gains (losses) on derivatives 84 20 Unrealized net gains (losses) on available-for-sale debt securities (97) (62) Adjustments to pension and other postretirement benefit liabilities (1,608) (1,693) Accumulated other comprehensive income (loss) $ (13,340) $ (14,330) |
Comprehensive Income (Loss), Apportioned between Shareowners of the Coca-Cola Company and Noncontrolling Interests | The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions): Three Months Ended April 1, 2022 Shareowners of Noncontrolling Total Consolidated net income $ 2,781 $ 12 $ 2,793 Other comprehensive income: Net foreign currency translation adjustments 876 133 1,009 Net gains (losses) on derivatives 1 64 — 64 Net change in unrealized gains (losses) on available-for-sale debt securities 2 (35) — (35) Net change in pension and other postretirement benefit liabilities 85 — 85 Total comprehensive income (loss) $ 3,771 $ 145 $ 3,916 1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments. 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities. |
OCI attributable to the shareowners of The Coca-Cola Company | The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees’ OCI (in millions): Three Months Ended April 1, 2022 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ 1,324 $ (240) $ 1,084 Reclassification adjustments recognized in net income 200 — 200 Gains (losses) on intra-entity transactions that are of a long-term investment nature (670) — (670) Gains (losses) on net investment hedges arising during the period 1 349 (87) 262 Net foreign currency translation adjustments $ 1,203 $ (327) $ 876 Derivatives: Gains (losses) arising during the period $ 83 $ (21) $ 62 Reclassification adjustments recognized in net income 3 (1) 2 Net gains (losses) on derivatives 1 $ 86 $ (22) $ 64 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (46) $ 8 $ (38) Reclassification adjustments recognized in net income 4 (1) 3 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (42) $ 7 $ (35) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ 68 $ (4) $ 64 Reclassification adjustments recognized in net income 28 (7) 21 Net change in pension and other postretirement benefit liabilities $ 96 $ (11) $ 85 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ 1,343 $ (353) $ 990 1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments. 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities. Three Months Ended April 2, 2021 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ 624 $ (23) $ 601 Gains (losses) on intra-entity transactions that are of a long-term investment nature (954) — (954) Gains (losses) on net investment hedges arising during the period 1 475 (118) 357 Net foreign currency translation adjustments $ 145 $ (141) $ 4 Derivatives: Gains (losses) arising during the period $ 174 $ (43) $ 131 Reclassification adjustments recognized in net income (36) 9 (27) Net gains (losses) on derivatives 1 $ 138 $ (34) $ 104 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (92) $ 30 $ (62) Reclassification adjustments recognized in net income 3 (1) 2 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (89) $ 29 $ (60) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ 453 $ (109) $ 344 Reclassification adjustments recognized in net income 101 (25) 76 Net change in pension and other postretirement benefit liabilities $ 554 $ (134) $ 420 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ 748 $ (280) $ 468 1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments. 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities. |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the amounts and line items in our consolidated statement of income where adjustments reclassified from AOCI into income were recorded (in millions): Amount Reclassified from AOCI into Income Description of AOCI Component Financial Statement Line Item Three Months Ended April 1, 2022 Foreign currency translation adjustments: Divestitures, deconsolidations and other 1 Other income (loss) — net $ 200 Income before income taxes 200 Income taxes — Consolidated net income $ 200 Derivatives: Foreign currency contracts Net operating revenues $ (8) Foreign currency contracts Cost of goods sold (1) Foreign currency contracts Interest expense 1 Foreign currency contracts Other income (loss) — net 11 Income before income taxes 3 Income taxes (1) Consolidated net income $ 2 Available-for-sale debt securities: Sale of debt securities Other income (loss) — net $ 4 Income before income taxes 4 Income taxes (1) Consolidated net income $ 3 Pension and other postretirement benefit liabilities: Recognized net actuarial loss Other income (loss) — net $ 29 Recognized prior service cost (credit) Other income (loss) — net (1) Income before income taxes 28 Income taxes (7) Consolidated net income $ 21 |
CHANGES IN EQUITY (Tables)
CHANGES IN EQUITY (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Equity [Abstract] | |
Changes in Equity | The following tables provide a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to shareowners of The Coca-Cola Company and equity attributable to noncontrolling interests (in millions): Shareowners of The Coca-Cola Company Three Months Ended April 1, 2022 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests December 31, 2021 4,325 $ 24,860 $ 69,094 $ (14,330) $ 1,760 $ 18,116 $ (51,641) $ 1,861 Comprehensive income (loss) — 3,916 2,781 990 — — — 145 Dividends paid/payable to — (1,906) (1,906) — — — — — Dividends paid to noncontrolling interests — (9) — — — — — (9) Acquisition of interests held by — (1) — — — — — (1) Purchases of treasury stock (8) (471) — — — — (471) — Impact related to stock-based 14 451 — — — 271 180 — Other activities — 1 — — — 1 — — April 1, 2022 4,331 $ 26,841 $ 69,969 $ (13,340) $ 1,760 $ 18,388 $ (51,932) $ 1,996 Shareowners of The Coca-Cola Company Three Months Ended April 2, 2021 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests December 31, 2020 4,302 $ 21,284 $ 66,555 $ (14,601) $ 1,760 $ 17,601 $ (52,016) $ 1,985 Adoption of accounting standards 1 — 19 19 — — — — — Comprehensive income (loss) — 2,723 2,245 468 — — — 10 Dividends paid/payable to — (1,810) (1,810) — — — — — Dividends paid to noncontrolling — (18) — — — — — (18) Impact related to stock-based 9 134 — — — 29 105 — April 2, 2021 4,311 $ 22,332 $ 67,009 $ (14,133) $ 1,760 $ 17,630 $ (51,911) $ 1,977 1 Represents the adoption of Accounting Standards Update 2019-12, Simplifying the Accounting for Income Taxes |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan Disclosures | Net periodic benefit cost or income for our pension and other postretirement benefit plans consisted of the following (in millions): Pension Plans Other Postretirement Three Months Ended April 1, April 2, April 1, April 2, Service cost $ 22 $ 24 $ 2 $ 2 Interest cost 51 44 4 4 Expected return on plan assets 1 (149) (151) (4) (4) Amortization of prior service credit — — (1) (1) Amortization of net actuarial loss 29 47 — 1 Net periodic benefit cost (income) (47) (36) 1 2 Settlement charges 2 — 54 — — Total cost (income) $ (47) $ 18 $ 1 $ 2 1 The weighted-average expected long-term rates of return on plan assets used in computing 2022 net periodic benefit cost (income) were 7.00 percent for pension plans and 4.00 percent for other postretirement benefit plans. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
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 assets and liabilities measured at fair value on a recurring basis (in millions): April 1, 2022 Level 1 Level 2 Level 3 Other 3 Netting 4 Fair Value Assets: Equity securities with readily determinable values 1 $ 2,258 $ 220 $ 16 $ 101 $ — $ 2,595 Debt securities 1 — 1,822 11 — — 1,833 Derivatives 2 154 510 — — (432) 6 232 8 Total assets $ 2,412 $ 2,552 $ 27 $ 101 $ (432) $ 4,660 Liabilities: Contingent consideration liability $ — $ — $ 612 5 $ — $ — $ 612 Derivatives 2 — 592 — — (580) 7 12 8 Total liabilities $ — $ 592 $ 612 $ — $ (580) $ 624 1 Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities. 2 Refer to Note 6 for additional information related to the composition of our derivatives portfolio. 3 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 4. 4 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 6. 5 Represents the fair value of future milestone payments related to our acquisition of fairlife in 2020, which are contingent on fairlife achieving certain financial targets through 2024 and, if achieved, are payable in 2023 and 2025. These milestone payments are based on agreed-upon formulas related to fairlife’s operating results, the resulting values of which are not subject to a ceiling. 6 The Company is obligated to return $70 million in cash collateral it has netted against its derivative positions. 7 The Company has the right to reclaim $344 million in cash collateral it has netted against its derivative positions. 8 The Company’s derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $137 million in the line item prepaid expenses and other current assets, $95 million in the line item other noncurrent assets and $12 million in the line item other noncurrent liabilities. Refer to Note 6 for additional information related to the composition of our derivatives portfolio. December 31, 2021 Level 1 Level 2 Level 3 Other 3 Netting 4 Fair Value Assets: Equity securities with readily determinable values 1 $ 2,372 $ 230 $ 17 $ 104 $ — $ 2,723 Debt securities 1 — 1,556 33 — — 1,589 Derivatives 2 69 588 — — (459) 6 198 8 Total assets $ 2,441 $ 2,374 $ 50 $ 104 $ (459) $ 4,510 Liabilities: Contingent consideration liability $ — $ — $ 590 5 $ — $ — $ 590 Derivatives 2 — 96 — — (82) 7 14 8 Total liabilities $ — $ 96 $ 590 $ — $ (82) $ 604 1 Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities. 2 Refer to Note 6 for additional information related to the composition of our derivatives portfolio. 3 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 4. 4 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 6. 5 Represents the fair value of future milestone payments related to our acquisition of fairlife in 2020, which are contingent on fairlife achieving certain financial targets through 2024 and, if achieved, are payable in 2023 and 2025. These milestone payments are based on agreed-upon formulas related to fairlife’s operating results, the resulting values of which are not subject to a ceiling. 6 The Company is obligated to return $331 million in cash collateral it has netted against its derivative positions. 7 The Company does not have the right to reclaim any cash collateral it has netted against its derivative positions. 8 The Company’s derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $198 million in the line item other noncurrent assets and $14 million in the line item other noncurrent liabilities. Refer to Note 6 for additional information related to the composition of our derivatives portfolio. |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 3 Months Ended |
Apr. 01, 2022 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment | Information about our Company’s operations by operating segment and Corporate is as follows (in millions): Europe, Middle East & Africa Latin North Asia Pacific Global Ventures Bottling Corporate Eliminations Consolidated As of and for the Three Months Ended April 1, 2022 Net operating revenues: Third party $ 1,661 $ 1,214 $ 3,589 $ 1,231 $ 729 $ 2,042 $ 25 $ — $ 10,491 Intersegment 172 — 1 180 — 2 — (355) — Total net operating revenues 1,833 1,214 3,590 1,411 729 2,044 25 (355) 10,491 Operating income (loss) 1,007 760 1,056 664 51 193 (326) — 3,405 Income (loss) before income taxes 1,023 757 1,064 670 56 393 (505) — 3,458 Identifiable operating assets 8,092 2 1,988 26,395 2,574 3 7,755 10,710 2,3 17,564 — 75,078 Investments 1 415 633 19 232 — 13,193 4,494 — 18,986 As of and for the Three Months Ended April 2, 2021 Net operating revenues: Third party $ 1,462 $ 909 $ 2,936 $ 1,232 $ 570 $ 1,894 $ 17 $ — $ 9,020 Intersegment 161 — 1 170 — 2 — (334) — Total net operating revenues 1,623 909 2,937 1,402 570 1,896 17 (334) 9,020 Operating income (loss) 820 552 792 686 26 141 (295) — 2,722 Income (loss) before income taxes 830 555 816 695 27 317 (477) — 2,763 Identifiable operating assets 8,335 2 1,650 19,792 2,332 3 7,843 10,426 2,3 19,843 — 70,221 Investments 1 466 595 343 249 4 13,833 4,282 — 19,772 As of December 31, 2021 Identifiable operating assets $ 7,908 2 $ 1,720 $ 25,730 $ 2,355 3 $ 7,949 $ 10,312 2,3 $ 19,964 $ — $ 75,938 Investments 1 436 594 21 230 — 12,669 4,466 — 18,416 1 Principally equity method investments and other investments in bottling companies. 2 Property, plant and equipment — net in South Africa represented 17 percent, 15 percent and 16 percent of consolidated property, plant and equipment — net as of April 1, 2022, April 2, 2021 and December 31, 2021, respectively. 3 Property, plant and equipment — net in the Philippines represented 10 percent of consolidated property, plant and equipment — net as of April 1, 2022, April 2, 2021 and December 31, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 | Apr. 02, 2021 | Dec. 31, 2020 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ||||
Cash and cash equivalents | $ 7,681 | $ 9,684 | $ 8,484 | $ 6,795 |
Restricted Cash and Cash Equivalents | 311 | 327 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 7,992 | 10,025 | 8,811 | 7,110 |
Other Noncurrent Assets | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ||||
Restricted Cash and Cash Equivalents | $ 311 | $ 341 | $ 327 | $ 315 |
ACQUISTIONS AND DIVESTITURES (D
ACQUISTIONS AND DIVESTITURES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Dec. 31, 2021 | |
Acquisition and investment activities | |||
Acquisitions of businesses, equity method investments and nonmarketable securities | $ 5 | $ 4 | |
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 218 | $ 2 | |
Proceeds from Divestiture of Businesses | 123 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | 13 | ||
Cash, cash equivalents and short-term investments | 220 | $ 228 | |
Trade accounts receivable, less allowances | 15 | 21 | |
Inventories | 50 | 55 | |
Prepaid expenses and other current assets | 42 | 36 | |
Other noncurrent assets | 36 | 9 | |
Deferred income tax assets | 6 | 6 | |
Property, plant and equipment — net | 287 | 282 | |
Goodwill | 36 | 37 | |
Assets held for sale | 692 | 674 | |
Accounts payable and accrued expenses | 137 | 139 | |
Accrued income taxes | 5 | 4 | |
Other noncurrent liabilities | 9 | 9 | |
Deferred income tax liabilities | 5 | 5 | |
Liabilities held for sale | $ 156 | $ 157 |
NET OPERATING REVENUES (Details
NET OPERATING REVENUES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Operating Revenues | $ 10,491 | $ 9,020 |
Concentrate Revenue | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Operating Revenues | 5,724 | 4,982 |
Finished product operations | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Operating Revenues | 4,767 | 4,038 |
UNITED STATES | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Operating Revenues | 3,523 | 2,893 |
UNITED STATES | Concentrate Revenue | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Operating Revenues | 1,641 | 1,410 |
UNITED STATES | Finished product operations | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Operating Revenues | 1,882 | 1,483 |
International [Member] | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Operating Revenues | 6,968 | 6,127 |
International [Member] | Concentrate Revenue | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Operating Revenues | 4,083 | 3,572 |
International [Member] | Finished product operations | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net Operating Revenues | $ 2,885 | $ 2,555 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | Dec. 31, 2021 | |
Equity securities, by type | |||
Equity Securities, FV-NI | $ 2,595 | $ 2,723 | |
Equity Securities without Readily Determinable Fair Value, Amount | 43 | 47 | |
Equity Securities, FV-NI, Gain (Loss) | (100) | $ 155 | |
Equity Securities, FV-NI, Realized Gain (Loss) | (132) | 14 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | 32 | 141 | |
Trading Securities, Equity, Cost | 41 | 39 | |
Available-for-sale Securities, Debt Securities | 1,933 | 1,648 | |
Debt Securities, Trading, and Equity Securities, FV-NI, Cost | 1,974 | 1,687 | |
Debt Securities, Trading, Unrealized Gain | 0 | 1 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 25 | 33 | |
Debt Securities, Unrealized Gain (Loss) | 25 | 34 | |
Debt Securities, Trading, Unrealized Loss | 1 | 0 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 165 | 132 | |
Debt securities, gross unrealized loss | 166 | 132 | |
Debt Securities, Trading | 40 | 40 | |
Debt Securities, Available-for-sale | 1,793 | 1,549 | |
Debt Securities | 1,833 | 1,589 | |
Equity Securities, FV-NI | 2,595 | 2,723 | |
Trading Securities | |||
Equity securities, by type | |||
Debt Securities | 40 | 40 | |
Debt Securities | |||
Equity securities, by type | |||
Debt Securities, Available-for-sale, Realized Gain | 1 | 1 | |
Debt Securities, Available-for-sale, Realized Loss | 5 | 4 | |
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | 231 | $ 158 | |
Available-for-sale Securities | |||
Equity securities, by type | |||
Debt Securities | 1,793 | 1,549 | |
Marketable Securities | |||
Equity securities, by type | |||
Equity Securities, FV-NI | 357 | 376 | |
Equity Securities without Readily Determinable Fair Value, Amount | 0 | 0 | |
Marketable Securities | Trading Securities | |||
Equity securities, by type | |||
Debt Securities | 40 | 40 | |
Marketable Securities | Available-for-sale Securities | |||
Equity securities, by type | |||
Debt Securities | 1,542 | 1,283 | |
Other Investments | |||
Equity securities, by type | |||
Equity Securities without Readily Determinable Fair Value, Amount | 43 | 47 | |
Equity Securities, FV-NI, Noncurrent | 745 | 771 | |
Other Noncurrent Assets | |||
Equity securities, by type | |||
Equity Securities without Readily Determinable Fair Value, Amount | 0 | 0 | |
Equity Securities, FV-NI, Noncurrent | 1,493 | 1,576 | |
Other Noncurrent Assets | Trading Securities | |||
Equity securities, by type | |||
Debt Securities | 0 | 0 | |
Other Noncurrent Assets | Available-for-sale Securities | |||
Equity securities, by type | |||
Debt Securities | $ 251 | $ 266 |
INVESTMENTS (Details 2)
INVESTMENTS (Details 2) - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost | $ 70 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value | 68 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Amortized Cost Basis | 1,649 | |
Available-for-sale Securities, Debt Maturities, after One Through Five Years, Fair Value | 1,504 | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Amortized Cost Basis | 43 | |
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Fair Value | 57 | |
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost | 171 | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value | 164 | |
Debt Securities, Available-for-sale, Amortized Cost, Total | 1,933 | $ 1,648 |
Debt Securities, Available-for-sale, Total | 1,793 | 1,549 |
Solvency Funds of Insurance Captive | $ 1,580 | $ 1,670 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Inventory balances | ||
Raw materials and packaging | $ 2,274 | $ 2,133 |
Finished goods | 1,165 | 982 |
Other | 302 | 299 |
Total inventories | $ 3,741 | $ 3,414 |
HEDGING TRANSACTIONS AND DERI_3
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Dec. 31, 2021 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Maximum Length of Time Hedged in Cash Flow Hedge | 3 years | ||
Anticipated gains (losses) cash flows hedges, estimated reclassification to earnings during next twelve months | $ 93 | ||
Reclassification adjustments recognized in net income | 200 | ||
Gains (Losses) arising during the period | 83 | $ 174 | |
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | 349 | 475 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 3 | (36) | |
Net Investment Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 12,511 | $ 12,852 | |
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | 349 | 475 | |
Cash Flow Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (Losses) arising during the period | 82 | 180 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (3) | 36 | |
Fair Value Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | (2) | 1 | |
Short-term Debt | Fair Value Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Amount of Hedged Item | 0 | 200 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 0 | 1 | |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 0 | 0 | |
Long-term Debt | Fair Value Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Amount of Hedged Item | 11,443 | 12,353 | |
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | (445) | 255 | |
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 220 | 228 | |
Foreign currency denominated debt | Net Investment Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 12,457 | 12,812 | |
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | 355 | 483 | |
Foreign currency contracts | Net Investment Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 54 | 40 | |
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | (6) | (8) | |
Foreign currency contracts | Cash Flow Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 7,569 | 7,399 | |
Cross Currency Swap | Cash Flow Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 1,524 | 1,994 | |
Interest Rate Swap | Fair Value Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 11,717 | 12,113 | |
Commodity Contract | Cash Flow Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 10 | ||
Designated as Hedging Instrument [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 255 | 461 | |
Derivative instruments, liabilities, fair value | 520 | 46 | |
Designated as Hedging Instrument [Member] | Foreign currency contracts | Prepaid Expenses and Other Current Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 189 | 151 | |
Designated as Hedging Instrument [Member] | Foreign currency contracts | Other Noncurrent Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 66 | 27 | |
Designated as Hedging Instrument [Member] | Foreign currency contracts | Accounts payable and accrued expenses | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 40 | 15 | |
Designated as Hedging Instrument [Member] | Foreign currency contracts | Other Noncurrent Liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 38 | 17 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract | Other Noncurrent Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 0 | 282 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract | Other Noncurrent Liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 442 | 14 | |
Designated as Hedging Instrument [Member] | Interest Rate Swap | Prepaid Expenses and Other Current Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 0 | 1 | |
Not Designated as Hedging Instrument [Member] | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 409 | 196 | |
Derivative instruments, liabilities, fair value | 72 | 50 | |
Derivative, Gain (Loss) on Derivative, Net | 197 | (137) | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 5,623 | 4,258 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Prepaid Expenses and Other Current Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 90 | 53 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Other Noncurrent Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 11 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Accounts payable and accrued expenses | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 68 | 34 | |
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | Other Noncurrent Liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 1 | 9 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Contract | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 200 | ||
Not Designated as Hedging Instrument [Member] | Other derivative instruments | Prepaid Expenses and Other Current Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 20 | 9 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Notional Amount | 859 | 908 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract | Prepaid Expenses and Other Current Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 270 | 131 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract | Other Noncurrent Assets | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, assets, fair value | 18 | 3 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract | Accounts payable and accrued expenses | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 0 | 6 | |
Not Designated as Hedging Instrument [Member] | Commodity Contract | Other Noncurrent Liabilities | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative instruments, liabilities, fair value | 3 | $ 1 | |
Net operating revenues | Foreign currency contracts | Cash Flow Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (Losses) arising during the period | 81 | (23) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 8 | (23) | |
Net operating revenues | Not Designated as Hedging Instrument [Member] | Foreign currency contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | (15) | (1) | |
Cost of goods sold | Foreign currency contracts | Cash Flow Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (Losses) arising during the period | 6 | (5) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 1 | (1) | |
Cost of goods sold | Not Designated as Hedging Instrument [Member] | Foreign currency contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | 13 | (8) | |
Cost of goods sold | Not Designated as Hedging Instrument [Member] | Commodity Contract | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | 160 | 82 | |
Interest Expense [Member] | Fair Value Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | (2) | 1 | |
Interest Expense [Member] | Foreign currency contracts | Cash Flow Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (Losses) arising during the period | 0 | 0 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (1) | (1) | |
Interest Expense [Member] | Interest Rate Contract | Cash Flow Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (Losses) arising during the period | 121 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (5) | ||
Interest Expense [Member] | Interest Rate Contract | Fair Value Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | (711) | (395) | |
Interest Expense [Member] | Fixed-rate debt | Fair Value Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | 709 | 396 | |
Interest Expense [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Contract | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | (187) | |
Other Income (loss) - net | Foreign currency contracts | Cash Flow Hedging | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Gains (Losses) arising during the period | (5) | 87 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (11) | 66 | |
Other Income (loss) - net | Not Designated as Hedging Instrument [Member] | Foreign currency contracts | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | 42 | (28) | |
Other Income (loss) - net | Not Designated as Hedging Instrument [Member] | Other derivative instruments | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | (3) | |
Selling, general and administrative expenses | Not Designated as Hedging Instrument [Member] | Other derivative instruments | |||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||
Derivative, Gain (Loss) on Derivative, Net | $ (3) | $ 8 |
DEBT AND BORROWING ARRANGEMEN_2
DEBT AND BORROWING ARRANGEMENTS (Details) - Fixed interest rate debt with a maturity date in 2022 $ in Millions | 3 Months Ended |
Apr. 01, 2022USD ($) | |
Long-term debt | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 8.50% |
Extinguishment of Debt, Amount | $ 288 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 01, 2022 | Mar. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2015 | |
IRS Claim | ||||
IRS Claim | $ 13,000 | |||
Recorded Estimate of Tax Liability | $ 410 | 438 | ||
Incremental tax and interest liability | $ 250 | |||
Increase in Effective Tax Rate | 3.50% | |||
Potential Aggregate Tax Liability- Brazil | $ 5,000 | |||
Tax Years 2007-2009 [Member] | ||||
IRS Claim | ||||
IRS Claim | $ 3,300 | |||
IRS Notice Income Reallocation | $ 9,000 | |||
Transfer Pricing Adjustment | $ 385 | |||
IRS Amended Claim | 135 | |||
IRS Amended Claim Related to Mexico Licensee | $ 138 | |||
Guarantees of indebtedness owed by third parties | ||||
Guarantees | ||||
Guarantees of indebtedness owed by third parties | 567 | |||
VIEs maximum exposures to loss | 87 | |||
Risk Management Programs | ||||
Risk Management Programs | ||||
Self-insurance reserves | $ 228 | $ 229 |
OTHER COMPREHENSIVE INCOME (Det
OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Dec. 31, 2021 | |
Comprehensive Income Disclosure | |||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ 2,781 | $ 2,245 | |
Net Income (Loss) Attributable to Noncontrolling Interest | 12 | 10 | |
Consolidated net income | 2,793 | 2,255 | |
AOCI Attributable to the Shareowners of The Coca Cola Company | |||
Accumulated other comprehensive income (loss) | (13,340) | $ (14,330) | |
Other comprehensive income: | |||
Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company | 3,771 | 2,713 | |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 145 | 10 | |
Total Comprehensive Income | 3,916 | 2,723 | |
Net foreign currency translation adjustments attributable to noncontrolling interests | 133 | ||
Net gains (losses) on derivatives attributable to noncontrolling interests | 0 | ||
Net changes in unrealized gains (losses) on available-for-sale debt securities attributable to noncontrolling interests | 0 | ||
Net change in pension and other postretirement benefit liabilities attributable to noncontrolling interests | 0 | ||
Net foreign currency translation adjustments | 1,009 | 4 | |
Net gains (losses) on derivatives | 64 | 104 | |
Net change in unrealized gains (losses) on available-for-sale debt securities | (35) | (60) | |
Net change in pension and other postretirement benefit liabilities | 85 | 420 | |
Foreign currency translation adjustments: | |||
Translation adjustment arising during the period | 1,324 | 624 | |
Reclassification adjustments recognized in net income | 200 | ||
Gains (losses) on intra-entity transactions that are of a long-term-investment nature | (670) | (954) | |
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | 349 | 475 | |
Net foreign currency translation adjustments | 1,203 | 145 | |
Derivatives: | |||
Gains (Losses) arising during the period | 83 | 174 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 3 | (36) | |
Net gains (losses) on derivatives | 86 | 138 | |
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the period | (46) | (92) | |
Reclassification adjustments recognized in net income | 4 | 3 | |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment, before Tax | (42) | (89) | |
Pension and other benefit liabilities: | |||
Net pension and other benefits arising during the period | 68 | 453 | |
Reclassification adjustments recognized in net income | 28 | 101 | |
Net change in pension and other benefit liabilities | 96 | 554 | |
Foreign currency translation adjustments: | |||
Translation adjustment arising during the period | (240) | (23) | |
Reclassification adjustments recognized in net income | 0 | ||
Gains (losses) on intra-entity transactions that are of a long-term-investment nature | 0 | 0 | |
Gains (losses) on net investment hedges arising during the period | (87) | (118) | |
Net foreign currency translation adjustments | (327) | (141) | |
Derivatives: | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | (21) | (43) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | (1) | 9 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | (22) | (34) | |
Available-for-sales securities: | |||
Unrealized gains (losses) arising during the period | 8 | 30 | |
Reclassification adjustments recognized in net income | (1) | (1) | |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment, Tax | 7 | 29 | |
Pension and other benefit liabilities: | |||
Net pension and other benefits arising during the period | (4) | (109) | |
Reclassification adjustments recognized in net income | (7) | (25) | |
Net change in pension and other benefit liabilities | (11) | (134) | |
Foreign currency translation adjustments: | |||
Translation adjustment arising during the period | 1,084 | 601 | |
Reclassification adjustments recognized in net income | 200 | ||
Gains (losses) on intra-entity transactions that are of a long-term-investment nature | (670) | (954) | |
Gains (losses) on net investments hedges arising during the period | 262 | 357 | |
Net foreign currency translation adjustments | 876 | 4 | |
Derivatives: | |||
Gains (losses) arising during the period | 62 | 131 | |
Reclassification adjustments recognized in net income | 2 | (27) | |
Net gains (losses) on derivatives | 64 | 104 | |
Available-for-sale securities: | |||
Unrealized gains (losses) arising during the period | (38) | (62) | |
Reclassification adjustments recognized in net income | 3 | 2 | |
Net change in unrealized gains (losses) on available-for-sale debt securities | (35) | (60) | |
Pension and other benefit liabilities: | |||
Net pension and other benefits arising during the period | 64 | 344 | |
Reclassification adjustments recognized in net income | 21 | 76 | |
Net change in pension and other benefit liabilities | 85 | 420 | |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 1,343 | 748 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (353) | (280) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 990 | 468 | |
Net Investment Hedging | |||
Foreign currency translation adjustments: | |||
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | 349 | $ 475 | |
Other income (loss) - net | |||
Pension and other benefit liabilities: | |||
Recognized net actuarial loss | 29 | ||
Recognized prior service cost (credit) | (1) | ||
Divestitures, deconsolidations and other [Member] | Other income (loss) - net | |||
Foreign currency translation adjustments: | |||
Reclassification adjustments recognized in net income | 200 | ||
Foreign currency contracts | Net operating revenues | |||
Derivatives: | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (8) | ||
Foreign currency contracts | Cost of goods sold | |||
Derivatives: | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (1) | ||
Foreign currency contracts | Other income (loss) - net | |||
Derivatives: | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 11 | ||
Foreign currency and interest rate contracts | Interest Expense [Member] | |||
Derivatives: | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 1 | ||
Sale of securities | Other income (loss) - net | |||
Available-for-sale securities: | |||
Reclassification adjustments recognized in net income | 4 | ||
Shareowners of The Coca-Cola Company | |||
AOCI Attributable to the Shareowners of The Coca Cola Company | |||
Foreign currency translation adjustments | (11,719) | (12,595) | |
Accumulated net gains (losses) on derivatives | 84 | 20 | |
Unrealized net gains (losses) on available-for-sale securities | (97) | (62) | |
Adjustments to pension and other benefits liabilities | (1,608) | (1,693) | |
Accumulated other comprehensive income (loss) | $ (13,340) | $ (14,330) |
CHANGES IN EQUITY (Details)
CHANGES IN EQUITY (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Changes in Equity | ||||
Accumulated other comprehensive income (loss) | $ (13,340) | $ (14,330) | ||
Changes in Equity | ||||
Treasury Stock, Shares, Acquired | (8,000) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | $ 24,860 | $ 21,284 | ||
Comprehensive income (loss) | 3,916 | 2,723 | ||
Dividends, Common Stock, Cash | (1,906) | (1,810) | ||
Dividends Paid to Noncontrolling Interests | (9) | (18) | ||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | (1) | |||
Treasury Stock, Value, Acquired, Cost Method | (471) | |||
Impact related to stock compensation plans | 451 | 134 | ||
Other Activities | 1 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 26,841 | 22,332 | $ 21,284 | |
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2019-12 [Member] | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes in Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 19 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 19 | |||
Reinvested Earnings | ||||
Changes in Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 69,094 | 66,555 | ||
Comprehensive income (loss) | 2,781 | 2,245 | ||
Dividends, Common Stock, Cash | (1,906) | (1,810) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 69,969 | 67,009 | 66,555 | |
Reinvested Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||
Changes in Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 19 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 19 | |||
AOCI Attributable to Parent [Member] | ||||
Changes in Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | (14,330) | (14,601) | ||
Comprehensive income (loss) | 990 | 468 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ (13,340) | $ (14,133) | $ (14,601) | |
Common Stock [Member] | ||||
Changes in Equity | ||||
Common Stock, Shares, Outstanding | 4,331,000 | 4,311,000 | 4,302,000 | 4,325,000 |
Impact related to stock compensation plans, shares | 14,000 | 9,000 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | $ 1,760 | $ 1,760 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 1,760 | 1,760 | $ 1,760 | |
Capital Surplus | ||||
Changes in Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 18,116 | 17,601 | ||
Impact related to stock compensation plans | 271 | 29 | ||
Other Activities | 1 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 18,388 | 17,630 | 17,601 | |
Treasury Stock | ||||
Changes in Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | (51,641) | (52,016) | ||
Treasury Stock, Value, Acquired, Cost Method | (471) | |||
Impact related to stock compensation plans | 180 | 105 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | (51,932) | (51,911) | (52,016) | |
Noncontrolling Interests | ||||
Changes in Equity | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 1,861 | 1,985 | ||
Comprehensive income (loss) | 145 | 10 | ||
Dividends Paid to Noncontrolling Interests | (9) | (18) | ||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | (1) | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 1,996 | $ 1,977 | $ 1,985 |
SIGNIFICANT OPERATING AND NON_2
SIGNIFICANT OPERATING AND NONOPERATING ITEMS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Other Operating Charges | ||
Other operating charges | $ 28 | $ 124 |
Tax litigation expense | 9 | |
Other Nonoperating Items | ||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | (5) | (37) |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | (24) | |
BodyArmor | ||
Other Operating Charges | ||
Gain (loss) related to BodyArmor transaction | 5 | |
Bottling investments | ||
Other Nonoperating Items | ||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | (5) | (5) |
Corporate | ||
Other Operating Charges | ||
Tax litigation expense | 9 | |
Other Nonoperating Items | ||
Charges related to debt extinguishment | 58 | |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | (32) | |
Debt and Equity Securities, Gain (Loss) | (104) | 133 |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | (24) | |
Corporate | BodyArmor | ||
Other Operating Charges | ||
Gain (loss) related to BodyArmor transaction | (14) | |
North America Segment | ||
Other Operating Charges | ||
Business Exit Costs | 12 | |
North America Segment | BodyArmor | ||
Other Operating Charges | ||
Gain (loss) related to BodyArmor transaction | 19 | |
North America Segment | Other Operating Income (Expense) [Member] | ||
Other Operating Charges | ||
Business Exit Costs | 2 | |
Productivity and Reinvestment | ||
Other Operating Charges | ||
Productivity, integration and restructuring initiatives | 10 | 18 |
Productivity and Reinvestment | Corporate | ||
Other Operating Charges | ||
Productivity, integration and restructuring initiatives | 10 | 18 |
Strategic Realignment | Other Operating Income (Expense) [Member] | ||
Other Operating Charges | ||
Productivity, integration and restructuring initiatives | 93 | |
Income related to strategic realignment initiatives | 1 | |
Strategic Realignment | Other Income (loss) - net | ||
Other Operating Charges | ||
Productivity, integration and restructuring initiatives | 54 | |
Strategic Realignment | Corporate | ||
Other Operating Charges | ||
Productivity, integration and restructuring initiatives | 61 | |
Strategic Realignment | North America Segment | ||
Other Operating Charges | ||
Productivity, integration and restructuring initiatives | 12 | |
Strategic Realignment | Latin America Segment | ||
Other Operating Charges | ||
Productivity, integration and restructuring initiatives | 11 | |
fairlife | Corporate | ||
Other Operating Charges | ||
Contingent Consideration Liability | $ 22 | $ 4 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) - Productivity and Reinvestment - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Productivity, Integration and Restructuring Initiatives Disclosures | ||
Cost incurred | $ 10 | $ 18 |
Restructuring and related costs incurred to date | $ 4,054 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Net periodic pension and other Postretirement benefit cost | ||
Contributions to pension plan | $ 3 | $ 5 |
Expected Future Employer Contributions, Next Fiscal Year | 24 | |
Pension Benefits | ||
Net periodic pension and other Postretirement benefit cost | ||
Service cost | 22 | 24 |
Interest cost | 51 | 44 |
Expected return on plan assets | (149) | (151) |
Amortization of prior service cost (credit) | 0 | 0 |
Amortization of net actuarial loss | 29 | 47 |
Net periodic benefit cost (income) | (47) | (36) |
Settlement charges | 0 | 54 |
Total cost (income) | $ (47) | 18 |
Weighted-Average Expected Long-term Rate of Return on Plan Assets | 7.00% | |
Other Benefits | ||
Net periodic pension and other Postretirement benefit cost | ||
Service cost | $ 2 | 2 |
Interest cost | 4 | 4 |
Expected return on plan assets | (4) | (4) |
Amortization of prior service cost (credit) | (1) | (1) |
Amortization of net actuarial loss | 0 | 1 |
Net periodic benefit cost (income) | 1 | 2 |
Settlement charges | 0 | 0 |
Total cost (income) | $ 1 | $ 2 |
Weighted-Average Expected Long-term Rate of Return on Plan Assets | 4.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Apr. 02, 2021 | |
Income Tax Contingency [Line Items] | ||
Income taxes | $ 665 | $ 508 |
Effective tax rate (as a percent) | 19.20% | 18.40% |
U.S. statutory rate (as a percent) | 21.00% | 21.00% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2022 | Dec. 31, 2021 | |
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | $ 2,595 | $ 2,723 |
Debt Securities | 1,833 | 1,589 |
Derivatives, assets | 232 | 198 |
Total assets | 4,660 | 4,510 |
Contingent Consideration Liability | 612 | 590 |
Derivatives, liabilities | 12 | 14 |
Total liabilities | 624 | 604 |
Derivative, Collateral, Obligation to Return Cash | 70 | 331 |
Derivative, Collateral, Right to Reclaim Cash | 344 | |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | (24) | |
Corporate | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | (24) | |
Netting Adjustment | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 0 | 0 |
Debt Securities | 0 | 0 |
Derivatives, assets | (432) | (459) |
Total assets | (432) | (459) |
Contingent Consideration Liability | 0 | 0 |
Derivatives, liabilities | (580) | (82) |
Total liabilities | (580) | (82) |
Level 1 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 2,258 | 2,372 |
Debt Securities | 0 | 0 |
Derivatives, assets | 154 | 69 |
Total assets | 2,412 | 2,441 |
Contingent Consideration Liability | 0 | 0 |
Derivatives, liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 220 | 230 |
Debt Securities | 1,822 | 1,556 |
Derivatives, assets | 510 | 588 |
Total assets | 2,552 | 2,374 |
Contingent Consideration Liability | 0 | 0 |
Derivatives, liabilities | 592 | 96 |
Total liabilities | 592 | 96 |
Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 16 | 17 |
Debt Securities | 11 | 33 |
Derivatives, assets | 0 | 0 |
Total assets | 27 | 50 |
Contingent Consideration Liability | 612 | 590 |
Derivatives, liabilities | 0 | 0 |
Total liabilities | 612 | 590 |
Fair Value Measured at Net Asset Value Per Share | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 101 | 104 |
Debt Securities | 0 | 0 |
Derivatives, assets | 0 | 0 |
Total assets | 101 | 104 |
Contingent Consideration Liability | 0 | 0 |
Derivatives, liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Prepaid Expenses and Other Current Assets | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, assets | 137 | |
Other Noncurrent Assets | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, assets | 95 | 198 |
Other Noncurrent Liabilities | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, liabilities | $ 12 | $ 14 |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Millions | Apr. 01, 2022 | Dec. 31, 2021 |
Nonrecurring fair value measurements | ||
Long-term debt, including the current portion, carrying amount | $ 38,091 | $ 39,454 |
Long-term debt, including the current portion, fair value | $ 36,522 | $ 40,311 |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2022 | Apr. 02, 2021 | Dec. 31, 2021 | |
Net operating revenues: | |||
Third Party | $ 10,491 | $ 9,020 | |
Intersegment | 0 | 0 | |
Net Operating Revenues | 10,491 | 9,020 | |
Operating Income (Loss) | 3,405 | 2,722 | |
Income (loss) before income taxes | 3,458 | 2,763 | |
Identifiable operating assets | 75,078 | 70,221 | $ 75,938 |
Noncurrent investments | $ 18,986 | $ 19,772 | $ 18,416 |
Property, Plant and Equipment, Net Percentage | 17.00% | 15.00% | 16.00% |
Property, Plant and Equipment, Net Percentage Philippines | 10.00% | 10.00% | 10.00% |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | $ (5) | $ (37) | |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | (24) | ||
Tax litigation expense | 9 | ||
BodyArmor | |||
Net operating revenues: | |||
Gain (loss) related to BodyArmor transaction | 5 | ||
Productivity and Reinvestment | |||
Net operating revenues: | |||
Productivity, integration and restructuring initiatives | 10 | 18 | |
Europe, Middle East & Africa | |||
Net operating revenues: | |||
Third Party | 1,661 | 1,462 | |
Intersegment | 172 | 161 | |
Net Operating Revenues | 1,833 | 1,623 | |
Operating Income (Loss) | 1,007 | 820 | |
Income (loss) before income taxes | 1,023 | 830 | |
Identifiable operating assets | 8,092 | 8,335 | $ 7,908 |
Noncurrent investments | 415 | 466 | 436 |
Europe, Middle East & Africa | Strategic Realignment | |||
Net operating revenues: | |||
Productivity, integration and restructuring initiatives | 50 | ||
Latin America Segment | |||
Net operating revenues: | |||
Third Party | 1,214 | 909 | |
Intersegment | 0 | 0 | |
Net Operating Revenues | 1,214 | 909 | |
Operating Income (Loss) | 760 | 552 | |
Income (loss) before income taxes | 757 | 555 | |
Identifiable operating assets | 1,988 | 1,650 | 1,720 |
Noncurrent investments | 633 | 595 | 594 |
Latin America Segment | Strategic Realignment | |||
Net operating revenues: | |||
Productivity, integration and restructuring initiatives | 11 | ||
North America Segment | |||
Net operating revenues: | |||
Third Party | 3,589 | 2,936 | |
Intersegment | 1 | 1 | |
Net Operating Revenues | 3,590 | 2,937 | |
Operating Income (Loss) | 1,056 | 792 | |
Income (loss) before income taxes | 1,064 | 816 | |
Identifiable operating assets | 26,395 | 19,792 | 25,730 |
Noncurrent investments | 19 | 343 | 21 |
Business Exit Costs | 12 | ||
North America Segment | BodyArmor | |||
Net operating revenues: | |||
Gain (loss) related to BodyArmor transaction | 19 | ||
North America Segment | Strategic Realignment | |||
Net operating revenues: | |||
Productivity, integration and restructuring initiatives | 12 | ||
North America Segment | Operating Income (Loss) | |||
Net operating revenues: | |||
Business Exit Costs | 11 | 19 | |
Pacific | |||
Net operating revenues: | |||
Third Party | 1,231 | 1,232 | |
Intersegment | 180 | 170 | |
Net Operating Revenues | 1,411 | 1,402 | |
Operating Income (Loss) | 664 | 686 | |
Income (loss) before income taxes | 670 | 695 | |
Identifiable operating assets | 2,574 | 2,332 | 2,355 |
Noncurrent investments | 232 | 249 | 230 |
Pacific | Strategic Realignment | |||
Net operating revenues: | |||
Productivity, integration and restructuring initiatives | 13 | ||
Global Ventures | |||
Net operating revenues: | |||
Third Party | 729 | 570 | |
Intersegment | 0 | 0 | |
Net Operating Revenues | 729 | 570 | |
Operating Income (Loss) | 51 | 26 | |
Income (loss) before income taxes | 56 | 27 | |
Identifiable operating assets | 7,755 | 7,843 | 7,949 |
Noncurrent investments | 0 | 4 | 0 |
Bottling investments | |||
Net operating revenues: | |||
Third Party | 2,042 | 1,894 | |
Intersegment | 2 | 2 | |
Net Operating Revenues | 2,044 | 1,896 | |
Operating Income (Loss) | 193 | 141 | |
Income (loss) before income taxes | 393 | 317 | |
Identifiable operating assets | 10,710 | 10,426 | 10,312 |
Noncurrent investments | 13,193 | 13,833 | 12,669 |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | (5) | (5) | |
Corporate | |||
Net operating revenues: | |||
Third Party | 25 | 17 | |
Intersegment | 0 | 0 | |
Net Operating Revenues | 25 | 17 | |
Operating Income (Loss) | (326) | (295) | |
Income (loss) before income taxes | (505) | (477) | |
Identifiable operating assets | 17,564 | 19,843 | 19,964 |
Noncurrent investments | 4,494 | 4,282 | 4,466 |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | (32) | ||
Debt and Equity Securities, Gain (Loss) | (104) | 133 | |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | (24) | ||
Tax litigation expense | 9 | ||
Charges related to debt extinguishment | 58 | ||
Corporate | BodyArmor | |||
Net operating revenues: | |||
Gain (loss) related to BodyArmor transaction | (14) | ||
Corporate | Strategic Realignment | |||
Net operating revenues: | |||
Productivity, integration and restructuring initiatives | 61 | ||
Corporate | Productivity and Reinvestment | |||
Net operating revenues: | |||
Productivity, integration and restructuring initiatives | 10 | 18 | |
Corporate | Operating Income (Loss) | Strategic Realignment | |||
Net operating revenues: | |||
Productivity, integration and restructuring initiatives | 7 | ||
Eliminations | |||
Net operating revenues: | |||
Third Party | 0 | 0 | |
Intersegment | (355) | (334) | |
Net Operating Revenues | (355) | (334) | |
Operating Income (Loss) | 0 | 0 | |
Income (loss) before income taxes | 0 | 0 | |
Identifiable operating assets | 0 | 0 | 0 |
Noncurrent investments | 0 | 0 | $ 0 |
fairlife | Corporate | |||
Net operating revenues: | |||
Contingent Consideration Liability | $ 22 | $ 4 |