DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 24, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 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 | 4,324,513,264 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
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 | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Net Operating Revenues | $ 11,063 | $ 10,042 | $ 32,879 | $ 29,191 |
Cost of goods sold | 4,566 | 3,977 | 13,487 | 11,269 |
Gross Profit | 6,497 | 6,065 | 19,392 | 17,922 |
Selling, general and administrative expenses | 3,279 | 3,122 | 9,449 | 8,808 |
Other operating charges | 130 | 45 | 1,109 | 478 |
Operating Income | 3,088 | 2,898 | 8,834 | 8,636 |
Interest income | 128 | 68 | 306 | 205 |
Interest expense | 198 | 210 | 578 | 1,432 |
Equity income (loss) — net | 479 | 455 | 1,133 | 1,136 |
Other income (loss) — net | (53) | (127) | (509) | 920 |
Income Before Income Taxes | 3,444 | 3,084 | 9,186 | 9,465 |
Income taxes | 622 | 609 | 1,671 | 2,111 |
Consolidated Net Income | 2,822 | 2,475 | 7,515 | 7,354 |
Net Income (Loss) Attributable to Noncontrolling Interest | (3) | 4 | 4 | (3) |
Net Income Attributable to Shareowners of The Coca-Cola Company | $ 2,825 | $ 2,471 | $ 7,511 | $ 7,357 |
Basic Net Income Per Share1 | $ 0.65 | $ 0.57 | $ 1.74 | $ 1.71 |
Diluted Net Income Per Share1 | $ 0.65 | $ 0.57 | $ 1.73 | $ 1.70 |
Average Shares Outstanding — Basic | 4,325,000,000 | 4,318,000,000 | 4,329,000,000 | 4,313,000,000 |
Effect of dilutive securities | 21,000,000 | 26,000,000 | 23,000,000 | 24,000,000 |
Average Shares Outstanding — Diluted | 4,346,000,000 | 4,344,000,000 | 4,352,000,000 | 4,337,000,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Consolidated Net Income | $ 2,822 | $ 2,475 | $ 7,515 | $ 7,354 |
Other comprehensive income: | ||||
Net foreign currency translation adjustments | (1,364) | (991) | (2,265) | (131) |
Net gains (losses) on derivatives | 93 | 28 | 250 | 184 |
Net change in unrealized gains (losses) on available-for-sale debt securities | 18 | (22) | (12) | (83) |
Net change in pension and other postretirement benefit liabilities | 34 | (32) | 284 | 368 |
Total Comprehensive Income | 1,603 | 1,458 | 5,772 | 7,692 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (154) | (62) | (200) | (16) |
Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company | $ 1,757 | $ 1,520 | $ 5,972 | $ 7,708 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 10,127 | $ 9,684 |
Short-term investments | 1,120 | 1,242 |
Total Cash, Cash Equivalents and Short-Term Investments | 11,247 | 10,926 |
Marketable securities | 1,973 | 1,699 |
Trade accounts receivable, less allowances of $517 and $516, respectively | 3,994 | 3,512 |
Inventories | 3,708 | 3,414 |
Prepaid expenses and other current assets | 3,217 | 2,994 |
Total Current Assets | 24,139 | 22,545 |
Equity method investments | 17,723 | 17,598 |
Other investments | 582 | 818 |
Other noncurrent assets | 6,130 | 6,731 |
Deferred income tax assets | 1,708 | 2,129 |
Property, plant and equipment, less accumulated depreciation of $8,992 and $8,942, respectively | 9,243 | 9,920 |
Trademarks with indefinite lives | 13,968 | 14,465 |
Goodwill | 18,329 | 19,363 |
Other intangible assets | 649 | 785 |
Total Assets | 92,471 | 94,354 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 16,103 | 14,619 |
Loans and notes payable | 3,396 | 3,307 |
Current maturities of long-term debt | 729 | 1,338 |
Accrued income taxes | 1,211 | 686 |
Total Current Liabilities | 21,439 | 19,950 |
Long-term debt | 35,462 | 38,116 |
Other noncurrent liabilities | 8,010 | 8,607 |
Deferred income tax liabilities | 3,124 | 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 | 18,687 | 18,116 |
Reinvested earnings | 70,893 | 69,094 |
Accumulated other comprehensive income (loss) | (15,869) | (14,330) |
Treasury stock, at cost — 2,716 and 2,715 shares, respectively | (52,666) | (51,641) |
Equity Attributable to Shareowners of The Coca-Cola Company | 22,805 | 22,999 |
Equity attributable to noncontrolling interests | 1,631 | 1,861 |
Total Equity | 24,436 | 24,860 |
Total Liabilities and Equity | $ 92,471 | $ 94,354 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - USD ($) shares in Millions, $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 517 | $ 516 |
Property, Plant, and Equipment, Owned, Accumulated Depreciation | $ 8,992 | $ 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 | 2,716 | 2,715 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Oct. 01, 2021 | |
OPERATING ACTIVITIES | ||
Consolidated Net Income | $ 7,515 | $ 7,354 |
Depreciation and amortization | 953 | 1,111 |
Stock-based compensation expense | 273 | 236 |
Deferred income taxes | (135) | 726 |
Equity (income) loss — net of dividends | (767) | (621) |
Foreign currency adjustments | 176 | (5) |
Significant (gains) losses — net | 25 | (498) |
Other operating charges | 1,070 | 243 |
Other items | 217 | 517 |
Net change in operating assets and liabilities | (1,259) | 168 |
Net Cash Provided by Operating Activities | 8,068 | 9,231 |
INVESTING ACTIVITIES | ||
Purchases of investments | (3,169) | (4,732) |
Proceeds from disposals of investments | 3,049 | 5,294 |
Acquisitions of businesses, equity method investments and nonmarketable securities | (40) | (11) |
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 229 | 1,950 |
Purchases of property, plant and equipment | (776) | (728) |
Proceeds from disposals of property, plant and equipment | 46 | 65 |
Collateral (paid) received associated with hedging activities — net | (1,449) | 0 |
Other investing activities | (79) | 81 |
Net Cash Provided by (Used in) Investing Activities | (2,189) | 1,919 |
FINANCING ACTIVITIES | ||
Issuances of debt | 4,351 | 11,848 |
Payments of debt | (3,761) | (13,037) |
Issuances of stock | 707 | 493 |
Purchases of stock for treasury | (1,412) | (104) |
Dividends | (3,910) | (5,437) |
Other financing activities | (1,053) | (354) |
Net Cash Provided by (Used in) Financing Activities | (5,078) | (6,591) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (392) | (56) |
CASH AND CASH EQUIVALENTS | ||
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents during the period | 409 | 4,503 |
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 | 10,434 | 11,613 |
Restricted Cash and Cash Equivalents | 307 | 312 |
Cash and cash equivalents | $ 10,127 | $ 11,301 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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 third quarter of 2022 and the third quarter of 2021 ended on September 30, 2022 and October 1, 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): September 30, December 31, Cash and cash equivalents $ 10,127 $ 9,684 Restricted cash and restricted cash equivalents 1,2 307 341 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 10,434 $ 10,025 1 Amounts include cash and cash equivalents in our solvency capital portfolio, which are included in the line item other noncurrent assets in our consolidated balance sheets. Refer to Note 4. 2 Amounts include cash and cash equivalents related to assets held for sale, which are included in the line item prepaid expenses and other current assets in our consolidated balance sheets. Refer to Note 2. October 1, December 31, Cash and cash equivalents $ 11,301 $ 6,795 Restricted cash and restricted cash equivalents 1 312 315 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 11,613 $ 7,110 1 Amounts represent cash and cash equivalents in our solvency capital portfolio, which are included in the line item other noncurrent assets in our consolidated balance sheets. Refer to Note 4. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 9 Months Ended |
Sep. 30, 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 $40 million and $11 million during the nine months ended September 30, 2022 and October 1, 2021, respectively. Divestitures Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the nine months ended September 30, 2022 and October 1, 2021 totaled $229 million and $1,950 million, respectively. In 2022, we sold our ownership interest in one of our equity method investments and received cash proceeds of $123 million, resulting in a gain of $13 million. In 2021, we sold our ownership interest in Coca-Cola Amatil Limited (“CCA”), an equity method investee, to Coca-Cola Europacific Partners plc, also an equity method investee. We received cash proceeds of $1,738 million and recognized a gain of $695 million as a result of the sale and the related reversal of cumulative translation adjustments. In 2021, we also sold a portion of our ownership interest in one of our equity method investments and received cash proceeds of $134 million, resulting in a gain of $63 million. All of the gains were recorded in the line item other income (loss) — net in our consolidated statements 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 fourth quarter of 2022, subject to regulatory approval. 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): September 30, December 31, 2021 Cash, cash equivalents and short-term investments $ 222 $ 228 Trade accounts receivable, less allowances 17 21 Inventories 63 55 Prepaid expenses and other current assets 46 36 Other noncurrent assets 34 9 Deferred income tax assets 7 6 Property, plant and equipment — net 289 282 Goodwill 35 37 Assets held for sale $ 713 $ 674 Accounts payable and accrued expenses $ 165 $ 139 Accrued income taxes 6 4 Other noncurrent liabilities 9 9 Deferred income tax liabilities 5 5 Liabilities held for sale $ 185 $ 157 |
NET OPERATING REVENUES
NET OPERATING REVENUES | 9 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition [Abstract] | |
NET OPERATING REVENUES | NET OPERATING REVENUES The following tables present 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 September 30, 2022 Concentrate operations $ 2,235 $ 4,339 $ 6,574 Finished product operations 1,909 2,580 4,489 Total $ 4,144 $ 6,919 $ 11,063 Three Months Ended October 1, 2021 Concentrate operations $ 1,749 $ 4,122 $ 5,871 Finished product operations 1,669 2,502 4,171 Total $ 3,418 $ 6,624 $ 10,042 United States International Total Nine Months Ended September 30, 2022 Concentrate operations $ 5,768 $ 12,895 $ 18,663 Finished product operations 5,856 8,360 14,216 Total $ 11,624 $ 21,255 $ 32,879 Nine Months Ended October 1, 2021 Concentrate operations $ 4,899 $ 11,948 $ 16,847 Finished product operations 4,744 7,600 12,344 Total $ 9,643 $ 19,548 $ 29,191 Refer to Note 16 for disclosures of net operating revenues by operating segment and Corporate. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 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 September 30, 2022 Marketable securities $ 296 $ — Other investments 542 40 Other noncurrent assets 1,174 — Total equity securities $ 2,012 $ 40 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 September 30, October 1, Net gains (losses) recognized during the period related to equity securities $ (38) $ 4 Less: Net gains (losses) recognized during the period related to equity securities sold during the period (95) 5 Net unrealized gains (losses) recognized during the period related to equity securities still held at the end of the period $ 57 $ (1) Nine Months Ended September 30, October 1, Net gains (losses) recognized during the period related to equity securities $ (399) $ 361 Less: Net gains (losses) recognized during the period related to equity securities sold during the period (350) 33 Net unrealized gains (losses) recognized during the period related to equity securities still held at the end of the period $ (49) $ 328 Debt Securities Our debt securities consisted of the following (in millions): Gross Unrealized Estimated Cost Gains Losses September 30, 2022 Trading securities $ 43 $ — $ (4) $ 39 Available-for-sale securities 1,960 22 (131) 1,851 Total debt securities $ 2,003 $ 22 $ (135) $ 1,890 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): September 30, 2022 December 31, 2021 Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities Marketable securities $ 39 $ 1,638 $ 40 $ 1,283 Other noncurrent assets — 213 — 266 Total debt securities $ 39 $ 1,851 $ 40 $ 1,549 The contractual maturities of these available-for-sale debt securities as of September 30, 2022 were as follows (in millions): Cost Estimated Within 1 year $ 352 $ 342 After 1 year through 5 years 1,409 1,317 After 5 years through 10 years 35 47 After 10 years 164 145 Total $ 1,960 $ 1,851 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 Nine Months Ended September 30, October 1, September 30, October 1, Gross gains $ 2 $ 2 $ 5 $ 4 Gross losses (43) — (51) (8) Proceeds 135 91 479 1,058 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 $1,249 million and $1,670 million as of September 30, 2022 and December 31, 2021, respectively, which were 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 | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following (in millions): September 30, December 31, Raw materials and packaging $ 2,123 $ 2,133 Finished goods 1,246 982 Other 339 299 Total inventories $ 3,708 $ 3,414 |
HEDGING TRANSACTIONS AND DERIVA
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 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 September 30, December 31, Assets: Foreign currency contracts Prepaid expenses and other current assets $ 391 $ 151 Foreign currency contracts Other noncurrent assets 83 27 Interest rate contracts Prepaid expenses and other current assets — 1 Interest rate contracts Other noncurrent assets — 282 Total assets $ 474 $ 461 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 52 $ 15 Foreign currency contracts Other noncurrent liabilities 151 17 Interest rate contracts Other noncurrent liabilities 1,604 14 Total liabilities $ 1,807 $ 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 September 30, December 31, 2021 Assets: Foreign currency contracts Prepaid expenses and other current assets $ 105 $ 53 Foreign currency contracts Other noncurrent assets 10 — Commodity contracts Prepaid expenses and other current assets 131 131 Commodity contracts Other noncurrent assets — 3 Other derivative instruments Prepaid expenses and other current assets — 9 Total assets $ 246 $ 196 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 22 $ 34 Foreign currency contracts Other noncurrent liabilities 3 9 Commodity contracts Accounts payable and accrued expenses 40 6 Commodity contracts Other noncurrent liabilities 6 1 Other derivative instruments Accounts payable and accrued expenses 19 — Total liabilities $ 90 $ 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. Furthermore, for certain derivative financial instruments, the Company has agreements with counterparties that require collateral to be exchanged based on changes in the fair value of the instruments. As a result of 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 $5,963 million and $7,399 million as of September 30, 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 fluctuations 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 fluctuations 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 September 30, 2022 and December 31, 2021, respectively. The Company has entered into commodity futures contracts and other derivative instruments on various commodities to mitigate the price risk associated with forecasted purchases of materials used in our manufacturing process. These derivative instruments 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 values of derivatives that were designated and qualified for this program were $45 million and $10 million as of September 30, 2022 and December 31, 2021, respectively. 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 September 30, 2022 and December 31, 2021, we did not have any interest rate swaps designated as a cash flow hedge. The following tables present 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 September 30, 2022 Foreign currency contracts $ 197 Net operating revenues $ 88 Foreign currency contracts 12 Cost of goods sold 10 Foreign currency contracts — Interest expense (1) Foreign currency contracts (56) Other income (loss) — net (71) Total $ 153 $ 26 Three Months Ended October 1, 2021 Foreign currency contracts $ 15 Net operating revenues $ (21) Foreign currency contracts 6 Cost of goods sold (6) Foreign currency contracts — Interest expense (1) Foreign currency contracts (43) Other income (loss) — net (35) Total $ (22) $ (63) Gain (Loss) Location of Gain (Loss) Recognized in Income Gain (Loss) Reclassified from AOCI into Income Nine Months Ended September 30, 2022 Foreign currency contracts $ 475 Net operating revenues $ 148 Foreign currency contracts 34 Cost of goods sold 13 Foreign currency contracts — Interest expense (3) Foreign currency contracts (175) Other income (loss) — net (171) Total $ 334 $ (13) Nine Months Ended October 1, 2021 Foreign currency contracts $ (1) Net operating revenues $ (71) Foreign currency contracts (5) Cost of goods sold (9) Foreign currency contracts — Interest expense (12) Foreign currency contracts 15 Other income (loss) — net 49 Interest rate contracts 110 Interest expense (90) Total $ 119 $ (133) As of September 30, 2022, the Company estimates that it will reclassify into earnings during the next 12 months net gains of $324 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 $12,701 million and $12,113 million as of September 30, 2022 and December 31, 2021, respectively. The following tables summarize 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 September 30, October 1, Interest rate contracts Interest expense $ (688) $ (56) Fixed-rate debt Interest expense 705 55 Net impact of fair value hedging instruments $ 17 $ (1) Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss) Nine Months Ended September 30, October 1, Interest rate contracts Interest expense $ (1,873) $ (236) Fixed-rate debt Interest expense 1,871 237 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 September 30, December 31, September 30, December 31, September 30, December 31, Current maturities of long-term debt $ — $ 200 $ — $ 1 $ — $ — Long-term debt 11,243 12,353 (1,568) 255 203 228 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 Nine Months Ended September 30, December 31, September 30, October 1, September 30, October 1, Foreign currency contracts $ 37 $ 40 $ (1) $ 6 $ (2) $ (1) Foreign currency denominated debt 11,043 12,812 709 304 1,768 673 Total $ 11,080 $ 12,852 $ 708 $ 310 $ 1,766 $ 672 The Company did not reclassify any gains or losses related to net investment hedges from AOCI into earnings during the three and nine months ended September 30, 2022. During the nine months ended October 1, 2021, the Company reclassified a loss of $4 million related to net investment hedges from AOCI into earnings. In addition, the Company did not have any ineffectiveness related to net investment hedges during the three and nine months ended September 30, 2022 and October 1, 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 $4,681 million and $4,258 million as of September 30, 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 September 30, 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 $501 million and $908 million as of September 30, 2022 and December 31, 2021, respectively. The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions): Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Gain (Loss) Three Months Ended September 30, October 1, Foreign currency contracts Net operating revenues $ 16 $ 2 Foreign currency contracts Cost of goods sold 21 (10) Foreign currency contracts Other income (loss) — net 41 (43) Commodity contracts Cost of goods sold (10) (32) Other derivative instruments Selling, general and administrative expenses (17) (2) Total $ 51 $ (85) Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Gain (Loss) Nine Months Ended September 30, October 1, Foreign currency contracts Net operating revenues $ 23 $ 2 Foreign currency contracts Cost of goods sold 44 (17) Foreign currency contracts Other income (loss) — net 79 (39) Interest rate contracts Interest expense — (187) Commodity contracts Cost of goods sold (5) 178 Other derivative instruments Selling, general and administrative expenses (38) 18 Other derivative instruments Other income (loss) — net — (3) Total $ 103 $ (48) |
DEBT AND BORROWING ARRANGEMENTS
DEBT AND BORROWING ARRANGEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT AND BORROWING ARRANGEMENTS | DEBT AND BORROWING ARRANGEMENTSDuring the nine months ended September 30, 2022, the Company retired upon maturity fixed interest rate U.S. dollar-denominated debentures of $288 million due February 1, 2022 with an interest rate of 8.500 percent and $122 million due September 15, 2022 with an interest rate of 8.000 percent. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Guarantees As of September 30, 2022, we were contingently liable for guarantees of indebtedness owed by third parties of $918 million, of which $76 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 September 30, 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 September 30, 2022 to $419 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 and nine months ended September 30, 2022 would increase the potential aggregate incremental tax and interest liability by approximately $250 million and $750 million, respectively. 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 $5.1 billion (including interest accrued through September 30, 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 $218 million and $229 million as of September 30, 2022 and December 31, 2021, respectively. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Net foreign currency translation adjustments $ (14,656) $ (12,595) Accumulated net gains (losses) on derivatives 270 20 Unrealized net gains (losses) on available-for-sale debt securities (74) (62) Adjustments to pension and other postretirement benefit liabilities (1,409) (1,693) Accumulated other comprehensive income (loss) $ (15,869) $ (14,330) The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions): Nine Months Ended September 30, 2022 Shareowners of Noncontrolling Total Consolidated net income $ 7,511 $ 4 $ 7,515 Other comprehensive income: Net foreign currency translation adjustments (2,061) (204) (2,265) Net gains (losses) on derivatives 1 250 — 250 Net change in unrealized gains (losses) on available-for-sale debt securities 2 (12) — (12) Net change in pension and other postretirement benefit liabilities 284 — 284 Total comprehensive income (loss) $ 5,972 $ (200) $ 5,772 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 September 30, 2022 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (401) $ (3) $ (404) Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,340) — (1,340) Gains (losses) on net investment hedges arising during the period 1 708 (177) 531 Net foreign currency translation adjustments $ (1,033) $ (180) $ (1,213) Derivatives: Gains (losses) arising during the period $ 150 $ (38) $ 112 Reclassification adjustments recognized in net income (26) 7 (19) Net gains (losses) on derivatives 1 $ 124 $ (31) $ 93 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (12) $ (1) $ (13) Reclassification adjustments recognized in net income 41 (10) 31 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ 29 $ (11) $ 18 Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ 21 $ (7) $ 14 Reclassification adjustments recognized in net income 26 (6) 20 Net change in pension and other postretirement benefit liabilities $ 47 $ (13) $ 34 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ (833) $ (235) $ (1,068) 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. Nine Months Ended September 30, 2022 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (27) $ (216) $ (243) Reclassification adjustments recognized in net income 200 — 200 Gains (losses) on intra-entity transactions that are of a long-term investment nature (3,343) — (3,343) Gains (losses) on net investment hedges arising during the period 1 1,766 (441) 1,325 Net foreign currency translation adjustments $ (1,404) $ (657) $ (2,061) Derivatives: Gains (losses) arising during the period $ 330 $ (90) $ 240 Reclassification adjustments recognized in net income 13 (3) 10 Net gains (losses) on derivatives 1 $ 343 $ (93) $ 250 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (56) $ 9 $ (47) Reclassification adjustments recognized in net income 46 (11) 35 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (10) $ (2) $ (12) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ 287 $ (65) $ 222 Reclassification adjustments recognized in net income 82 (20) 62 Net change in pension and other postretirement benefit liabilities $ 369 $ (85) $ 284 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ (702) $ (837) $ (1,539) 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 October 1, 2021 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (636) $ 39 $ (597) Reclassification adjustments recognized in net income 13 — 13 Gains (losses) on intra-entity transactions that are of a long-term investment nature (575) — (575) Gains (losses) on net investment hedges arising during the period 1 310 (77) 233 Net foreign currency translation adjustments $ (888) $ (38) $ (926) Derivatives: Gains (losses) arising during the period $ (26) $ 7 $ (19) Reclassification adjustments recognized in net income 63 (16) 47 Net gains (losses) on derivatives 1 $ 37 $ (9) $ 28 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (28) $ 8 $ (20) Reclassification adjustments recognized in net income (2) — (2) Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (30) $ 8 $ (22) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ (102) $ 29 $ (73) Reclassification adjustments recognized in net income 56 (14) 42 Net change in pension and other postretirement benefit liabilities $ (46) $ 15 $ (31) Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ (927) $ (24) $ (951) 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. Nine Months Ended October 1, 2021 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ 505 $ (8) $ 497 Reclassification adjustments recognized in net income 193 — 193 Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,317) — (1,317) Gains (losses) on net investment hedges arising during the period 1 672 (168) 504 Reclassification adjustments for net investment hedges recognized in net income 1 4 — 4 Net foreign currency translation adjustments $ 57 $ (176) $ (119) Derivatives: Gains (losses) arising during the period $ 108 $ (30) $ 78 Reclassification adjustments recognized in net income 139 (33) 106 Net gains (losses) on derivatives 1 $ 247 $ (63) $ 184 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (131) $ 45 $ (86) Reclassification adjustments recognized in net income 4 (1) 3 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (127) $ 44 $ (83) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ 251 $ (46) $ 205 Reclassification adjustments recognized in net income 218 (54) 164 Net change in pension and other postretirement benefit liabilities $ 469 $ (100) $ 369 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ 646 $ (295) $ 351 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 statements of income where adjustments reclassified from AOCI into income were recorded (in millions): Amount Reclassified from AOCI Description of AOCI Component Financial Statement Line Item Three Months Ended September 30, 2022 Nine Months Ended September 30, 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 $ (88) $ (148) Foreign currency contracts Cost of goods sold (10) (13) Foreign currency contracts Interest expense 1 3 Foreign currency contracts Other income (loss) — net 71 171 Income before income taxes (26) 13 Income taxes 7 (3) Consolidated net income $ (19) $ 10 Available-for-sale debt securities: Sale of debt securities Other income (loss) — net $ 41 $ 46 Income before income taxes 41 46 Income taxes (10) (11) Consolidated net income $ 31 $ 35 Pension and other postretirement benefit liabilities: Recognized net actuarial loss Other income (loss) — net $ 26 $ 84 Recognized prior service cost (credit) Other income (loss) — net — (2) Income before income taxes 26 82 Income taxes (6) (20) Consolidated net income $ 20 $ 62 |
CHANGES IN EQUITY
CHANGES IN EQUITY | 9 Months Ended |
Sep. 30, 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 September 30, 2022 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests July 1, 2022 4,326 $ 24,803 $ 69,970 $ (14,801) $ 1,760 $ 18,581 $ (52,505) $ 1,798 Comprehensive income (loss) — 1,603 2,825 (1,068) — — — (154) Dividends paid/payable to — (1,902) (1,902) — — — — — Dividends paid to noncontrolling interests — (13) — — — — — (13) Purchases of treasury stock (3) (188) — — — — (188) — Impact related to stock-based 1 133 — — — 106 27 — September 30, 2022 4,324 $ 24,436 $ 70,893 $ (15,869) $ 1,760 $ 18,687 $ (52,666) $ 1,631 Shareowners of The Coca-Cola Company Nine Months Ended September 30, 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) — 5,772 7,511 (1,539) — — — (200) Dividends paid/payable to — (5,712) (5,712) — — — — — Dividends paid to noncontrolling interests — (29) — — — — — (29) Purchases of treasury stock (21) (1,336) — — — — (1,336) — Impact related to stock-based 20 881 — — — 570 311 — Other activities — — — — — 1 — (1) September 30, 2022 4,324 $ 24,436 $ 70,893 $ (15,869) $ 1,760 $ 18,687 $ (52,666) $ 1,631 Shareowners of The Coca-Cola Company Three Months Ended October 1, 2021 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests July 2, 2021 4,315 $ 24,255 $ 67,838 $ (13,299) $ 1,760 $ 17,781 $ (51,831) $ 2,006 Comprehensive income (loss) — 1,458 2,471 (951) — — — (62) Dividends paid/payable to — (1,815) (1,815) — — — — — Dividends paid to noncontrolling — (10) — — — — — (10) Contributions by noncontrolling — 20 — — — — — 20 Impact related to stock-based 4 225 — — — 148 77 — October 1, 2021 4,319 $ 24,133 $ 68,494 $ (14,250) $ 1,760 $ 17,929 $ (51,754) $ 1,954 Shareowners of The Coca-Cola Company Nine Months Ended October 1, 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) — 7,692 7,357 351 — — — (16) Dividends paid/payable to — (5,437) (5,437) — — — — — Dividends paid to noncontrolling — (35) — — — — — (35) Contributions by noncontrolling interests — 20 — — — — — 20 Impact related to stock-based 17 590 — — — 328 262 — October 1, 2021 4,319 $ 24,133 $ 68,494 $ (14,250) $ 1,760 $ 17,929 $ (51,754) $ 1,954 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 | 9 Months Ended |
Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | |
SIGNIFICANT OPERATING AND NONOPERATING ITEMS | SIGNIFICANT OPERATING AND NONOPERATING ITEMS Other Operating Charges During the three months ended September 30, 2022, the Company recorded other operating charges of $130 million. These charges primarily consisted of $57 million related to the impairment of a trademark in Asia Pacific, $32 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, LLC (“fairlife”) in 2020, $27 million related to the Company’s productivity and reinvestment program, and $15 million related to the acquisition of BA Sports Nutrition, LLC (“BodyArmor”) in the prior year, which included various transition and transaction costs, employee retention costs and the amortization of noncompete agreements. During the nine months ended September 30, 2022, the Company recorded other operating charges of $1,109 million. These charges primarily consisted of $971 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $57 million related to the impairment of a trademark in Asia Pacific and $56 million related to the Company’s productivity and reinvestment program. In addition, other operating charges included $23 million related to the BodyArmor acquisition in the prior year, which included various transition and transaction costs, employee retention costs and the amortization of noncompete agreements, net of the reimbursement of distributor termination fees recorded in the prior year. During the three months ended October 1, 2021, the Company recorded other operating charges of $45 million. These charges included $31 million related to the Company’s productivity and reinvestment program, $12 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $4 million related to the Company’s strategic realignment initiatives and $1 million related to tax litigation. Other operating charges also included a net gain of $3 million related to the restructuring of our manufacturing operations in the United States. During the nine months ended October 1, 2021, the Company recorded other operating charges of $478 million. These charges primarily consisted of $263 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $126 million related to the Company’s strategic realignment initiatives and $71 million related to the Company’s productivity and reinvestment program. In addition, other operating charges included $14 million related to tax litigation and a net charge of $4 million related to the restructuring of our manufacturing operations in the United States. 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 impairment charge and 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 nine months ended October 1, 2021, the Company recorded charges of $650 million related to the extinguishment of long-term debt. Equity Income (Loss) — Net During the three and nine months ended September 30, 2022, the Company recorded net charges of $14 million and $44 million, respectively. During the three and nine months ended October 1, 2021, the Company recorded a net gain of $18 million and a net charge of $5 million, respectively. These amounts represent the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 16 for the impact these items had on our operating segments and Corporate. Other Income (Loss) — Net During the three months ended September 30, 2022, the Company recorded a net loss of $78 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. During the nine months ended September 30, 2022, the Company recorded a net loss of $449 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 recorded an other-than-temporary impairment charge of $96 million related to an equity method investee in Russia. The Company also recorded 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 October 1, 2021, the Company recorded charges of $266 million related to the restructuring of our manufacturing operations in the United States. Additionally, the Company recognized a gain of $63 million related to the sale of a portion of our ownership interest in one of our equity method investments. The Company also recorded pension settlement charges of $21 million related to our strategic realignment initiatives. During the nine months ended October 1, 2021, the Company recognized a net gain of $695 million related to the sale of our ownership interest in CCA, an equity method investee, and a gain of $63 million related to the sale of a portion of our ownership interest in one of our equity method investments. Additionally, the Company recognized a net gain of $341 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 charges of $266 million related to the restructuring of our manufacturing operations in the United States and pension settlement charges of $104 million related to our strategic realignment initiatives. Refer to Note 2 for additional information on the sale of our ownership interest in CCA. Refer to Note 4 for additional information on equity and debt securities. Refer to Note 15 for additional information on the impairment charge, one of our equity method investees issuing additional shares of its stock, and the charges related to the restructuring of our manufacturing operations in the United States. Refer to Note 16 for the impact these items had on our operating segments and Corporate. |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURINGIn 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 and nine months ended September 30, 2022, the Company incurred expenses of $27 million and $56 million, respectively, and during the three and nine months ended October 1, 2021 incurred expenses of $31 million and $71 million, respectively, related to our productivity and reinvestment program. These expenses primarily included internal and external costs associated with the implementation of the program’s 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 $4,100 million related to this program since it commenced. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 30, 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 September 30, October 1, September 30, October 1, Service cost $ 25 $ 25 $ 2 $ 2 Interest cost 65 46 4 4 Expected return on plan assets 1 (132) (152) (4) (4) Amortization of prior service credit — — — (1) Amortization of net actuarial loss 26 34 — — Net periodic benefit cost (income) (16) (47) 2 1 Settlement charges 2 — 21 — — Total cost (income) $ (16) $ (26) $ 2 $ 1 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. Pension Plans Other Postretirement Nine Months Ended September 30, October 1, September 30, October 1, Service cost $ 69 $ 74 $ 5 $ 7 Interest cost 167 137 13 11 Expected return on plan assets 1 (428) (454) (12) (13) Amortization of prior service credit — — (2) (2) Amortization of net actuarial loss 84 114 — 1 Net periodic benefit cost (income) (108) (129) 4 4 Settlement charges 2 — 104 — — Total cost (income) $ (108) $ (25) $ 4 $ 4 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 | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe Company recorded income taxes of $622 million (18.1 percent effective tax rate) and $609 million (19.7 percent effective tax rate) during the three months ended September 30, 2022 and October 1, 2021, respectively. The Company recorded income taxes of $1,671 million (18.2 percent effective tax rate) and $2,111 million (22.3 percent effective tax rate) during the nine months ended September 30, 2022 and October 1, 2021, respectively. The Company’s effective tax rates for the three and nine months ended September 30, 2022 and October 1, 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 of 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. The Company’s effective tax rates for the three and nine months ended October 1, 2021 included $75 million and $251 million, respectively, of net tax expense related to various discrete tax items, including changes in tax laws in certain foreign jurisdictions and the net tax impact of agreed-upon audit issues. 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 | 9 Months Ended |
Sep. 30, 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): September 30, 2022 Level 1 Level 2 Level 3 Other 3 Netting 4 Fair Value Assets: Equity securities with readily determinable values 1 $ 1,719 $ 185 $ 17 $ 91 $ — $ 2,012 Debt securities 1 — 1,881 9 — — 1,890 Derivatives 2 72 648 — — (537) 183 7 Total assets $ 1,791 $ 2,714 $ 26 $ 91 $ (537) $ 4,085 Liabilities: Contingent consideration liability $ — $ — $ 1,561 5 $ — $ — $ 1,561 Derivatives 2 6 1,891 — — (1,817) 6 80 7 Total liabilities $ 6 $ 1,891 $ 1,561 $ — $ (1,817) $ 1,641 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. The fair value was determined using a Monte Carlo valuation model. 6 The Company has the right to reclaim $1,325 million in cash collateral it has netted against its derivative positions. 7 The Company’s derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $90 million in the line item prepaid expenses and other current assets, $93 million in the line item other noncurrent assets and $80 million in the line item other noncurrent liabilities 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. The fair value was determined using a Monte Carlo valuation model. 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 other noncurrent liabilities. Gross realized and unrealized gains and losses on Level 3 assets and liabilities were not significant for the three and nine months ended September 30, 2022 and October 1, 2021. The Company recognizes transfers between levels within the hierarchy as of the beginning of the reporting period. Gross transfers between levels within the hierarchy were not significant for the three and nine months ended September 30, 2022 and October 1, 2021. Nonrecurring Fair Value Measurements The gains and losses on assets measured at fair value on a nonrecurring basis are summarized in the following table (in millions): Gains (Losses) Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Assets held for sale $ — $ (266) 2 $ — $ (266) 2 Other-than-temporary impairment charges — — (96) 3 — Impairment of intangible assets (57) 1 — (57) 1 — Valuation of shares in equity method investee — — (24) 4 — Total $ (57) $ (266) $ (177) $ (266) 1 During the three and nine months ended September 30, 2022, the Company recorded an impairment charge of $57 million related to a trademark in Asia Pacific, which was primarily driven by a change in brand strategy resulting in revised projections of future operating results for the trademark. The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs. 2 The Company is required to record assets and liabilities that are held for sale at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price. During the three and nine months ended October 1, 2021, the Company recorded charges of $266 million in the line item other income (loss) — net related to the restructuring of our manufacturing operations in the United States. These charges, which were calculated based on Level 3 inputs, primarily impacted the line item property, plant and equipment in our consolidated balance sheet. 3 The Company recorded an other-than-temporary impairment charge of $96 million during the nine months ended September 30, 2022 related to an equity method investee in Russia. This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results. 4 During the nine months ended September 30, 2022, we recognized a net loss of $24 million on assets measured at fair value on a nonrecurring basis. The net loss 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 September 30, 2022, the carrying value and fair value of our long-term debt, including the current portion, were $36,191 million and $30,942 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2022 Net operating revenues: Third party $ 1,844 $ 1,267 $ 4,197 $ 1,263 $ 679 $ 1,784 $ 29 $ — $ 11,063 Intersegment 143 — 4 164 — 2 — (313) — Total net operating revenues 1,987 1,267 4,201 1,427 679 1,786 29 (313) 11,063 Operating income (loss) 1,046 712 1,082 589 67 46 (454) — 3,088 Income (loss) before income taxes 1,078 715 1,090 598 69 466 (572) — 3,444 Identifiable operating assets 7,153 2 2,072 25,989 2,347 3 6,741 9,384 2,3 20,480 — 74,166 Investments 1 433 607 19 215 — 12,479 4,552 — 18,305 As of and for the Three Months Net operating revenues: Third party $ 1,758 $ 1,137 $ 3,478 $ 1,229 $ 753 $ 1,663 $ 24 $ — $ 10,042 Intersegment 157 — 1 145 — 2 1 (306) — Total net operating revenues 1,915 1,137 3,479 1,374 753 1,665 25 (306) 10,042 Operating income (loss) 1,028 712 868 594 114 81 (499) — 2,898 Income (loss) before income taxes 1,050 716 630 604 116 462 (494) — 3,084 Identifiable operating assets 8,213 2 1,839 19,118 2,254 3 7,784 10,213 2,3 22,004 — 71,425 Investments 1 482 606 331 238 2 13,137 4,385 — 19,181 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 16 percent of consolidated property, plant and equipment — net as of September 30, 2022, October 1, 2021 and December 31, 2021. 3 Property, plant and equipment — net in the Philippines represented 10 percent of consolidated property, plant and equipment — net as of September 30, 2022, October 1, 2021 and December 31, 2021. During the three months ended September 30, 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 reduced by $57 million for Asia Pacific due to the impairment of a trademark. Refer to Note 15. • Operating income (loss) and income (loss) before income taxes were reduced by $32 million for Corporate due 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 $27 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 $15 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 $8 million for North America due to the restructuring of our manufacturing operations in the United States. • Income (loss) before income taxes was reduced by $78 million for Corporate due 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 $14 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. During the three months ended October 1, 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 $31 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 $12 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 15. • Operating income (loss) and income (loss) before income taxes were reduced by $7 million and $273 million, respectively, for North America due to the restructuring of our manufacturing operations in the United States. Refer to Note 15. • Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Europe, Middle East and Africa and $1 million for North America, and operating income (loss) and income (loss) before income taxes were reduced by $1 million and $22 million, respectively, for Corporate due to the Company’s strategic realignment initiatives. • Income (loss) before income taxes was increased by $63 million for Corporate due to the sale of a portion of our ownership interest in one of our equity method investments. Refer to Note 2. • Income (loss) before income taxes was increased by $18 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. Europe, Middle East & Africa Latin North Asia Pacific Global Ventures Bottling Corporate Eliminations Consolidated Nine Months Ended September 30, 2022 Net operating revenues: Third party $ 5,523 $ 3,621 $ 11,815 $ 3,837 $ 2,103 $ 5,903 $ 77 $ — $ 32,879 Intersegment 481 — 6 567 — 6 — (1,060) — Total net operating revenues 6,004 3,621 11,821 4,404 2,103 5,909 77 (1,060) 32,879 Operating income (loss) 3,344 2,146 2,978 2,006 162 352 (2,154) — 8,834 Income (loss) before income taxes 3,326 2,152 3,002 2,025 173 1,312 (2,804) — 9,186 Nine Months Ended October 1, 2021 Net operating revenues: Third party $ 5,094 $ 3,113 $ 9,793 $ 3,811 $ 2,030 $ 5,292 $ 58 $ — $ 29,191 Intersegment 461 — 4 468 — 7 1 (941) — Total net operating revenues 5,555 3,113 9,797 4,279 2,030 5,299 59 (941) 29,191 Operating income (loss) 2,990 1,942 2,610 2,046 215 314 (1,481) — 8,636 Income (loss) before income taxes 3,049 1,952 2,405 2,078 221 1,201 (1,441) — 9,465 During the nine months ended September 30, 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 reduced by $971 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 15. • Operating income (loss) and income (loss) before income taxes were reduced by $57 million for Asia Pacific due to the impairment of a trademark. Refer to Note 15. • Operating income (loss) and income (loss) before income taxes were reduced by $56 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 $30 million and $31 million, respectively, for North America due to the restructuring of our manufacturing operations in the United States. • Operating income (loss) and income (loss) before income taxes were increased by $21 million for North America and were reduced by $44 million for Corporate related to our acquisition of BodyArmor in 2021. Refer to Note 11. • Income (loss) before income taxes was reduced by $449 million for Corporate due 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 $96 million for Europe, Middle East and Africa due to an other-than-temporary impairment charge related to an equity method investee in Russia. Refer to Note 15. • Income (loss) before income taxes was reduced by $44 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 $24 million for Corporate due to one of our equity method investees issuing additional shares of its stock. Refer to Note 15. During the nine months ended October 1, 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 $263 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 15. • Operating income (loss) and income (loss) before income taxes were reduced by $71 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 $63 million for Europe, Middle East and Africa, $11 million for Latin America, $14 million for North America and $13 million for Asia Pacific, and operating income (loss) and income (loss) before income taxes were reduced by $25 million and $129 million, respectively, for Corporate due to the Company’s strategic realignment initiatives. • Operating income (loss) and income (loss) before income taxes were reduced by $42 million and $308 million, respectively, for North America due to the restructuring of our manufacturing operations in the United States. Refer to Note 15. • Operating income (loss) and income (loss) before income taxes were reduced by $14 million for Corporate due to tax litigation expense. Refer to Note 8. • Income (loss) before income taxes was increased by $695 million for Corporate due to the sale of our ownership interest in CCA, an equity method investee. Refer to Note 2. • Income (loss) before income taxes was increased by $341 million for Corporate due 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 $63 million for Corporate due to the sale of a portion of our ownership interest in one of our equity method investments. Refer to Note 2. • Income (loss) before income taxes was reduced by $650 million for Corporate due to charges associated with the extinguishment of long-term debt. • Income (loss) before income taxes was reduced by $37 million for Bottling Investments and was increased by $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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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 third quarter of 2022 and the third quarter of 2021 ended on September 30, 2022 and October 1, 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): September 30, December 31, Cash and cash equivalents $ 10,127 $ 9,684 Restricted cash and restricted cash equivalents 1,2 307 341 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 10,434 $ 10,025 1 Amounts include cash and cash equivalents in our solvency capital portfolio, which are included in the line item other noncurrent assets in our consolidated balance sheets. Refer to Note 4. 2 Amounts include cash and cash equivalents related to assets held for sale, which are included in the line item prepaid expenses and other current assets in our consolidated balance sheets. Refer to Note 2. October 1, December 31, Cash and cash equivalents $ 11,301 $ 6,795 Restricted cash and restricted cash equivalents 1 312 315 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 11,613 $ 7,110 1 Amounts represent cash and cash equivalents in our solvency capital portfolio, which are included in the line item other noncurrent assets in our consolidated balance sheets. Refer to Note 4. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Cash and cash equivalents $ 10,127 $ 9,684 Restricted cash and restricted cash equivalents 1,2 307 341 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 10,434 $ 10,025 1 Amounts include cash and cash equivalents in our solvency capital portfolio, which are included in the line item other noncurrent assets in our consolidated balance sheets. Refer to Note 4. 2 Amounts include cash and cash equivalents related to assets held for sale, which are included in the line item prepaid expenses and other current assets in our consolidated balance sheets. Refer to Note 2. October 1, December 31, Cash and cash equivalents $ 11,301 $ 6,795 Restricted cash and restricted cash equivalents 1 312 315 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 11,613 $ 7,110 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, December 31, 2021 Cash, cash equivalents and short-term investments $ 222 $ 228 Trade accounts receivable, less allowances 17 21 Inventories 63 55 Prepaid expenses and other current assets 46 36 Other noncurrent assets 34 9 Deferred income tax assets 7 6 Property, plant and equipment — net 289 282 Goodwill 35 37 Assets held for sale $ 713 $ 674 Accounts payable and accrued expenses $ 165 $ 139 Accrued income taxes 6 4 Other noncurrent liabilities 9 9 Deferred income tax liabilities 5 5 Liabilities held for sale $ 185 $ 157 |
NET OPERATING REVENUES (Tables)
NET OPERATING REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The following tables present 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 September 30, 2022 Concentrate operations $ 2,235 $ 4,339 $ 6,574 Finished product operations 1,909 2,580 4,489 Total $ 4,144 $ 6,919 $ 11,063 Three Months Ended October 1, 2021 Concentrate operations $ 1,749 $ 4,122 $ 5,871 Finished product operations 1,669 2,502 4,171 Total $ 3,418 $ 6,624 $ 10,042 United States International Total Nine Months Ended September 30, 2022 Concentrate operations $ 5,768 $ 12,895 $ 18,663 Finished product operations 5,856 8,360 14,216 Total $ 11,624 $ 21,255 $ 32,879 Nine Months Ended October 1, 2021 Concentrate operations $ 4,899 $ 11,948 $ 16,847 Finished product operations 4,744 7,600 12,344 Total $ 9,643 $ 19,548 $ 29,191 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2022 Marketable securities $ 296 $ — Other investments 542 40 Other noncurrent assets 1,174 — Total equity securities $ 2,012 $ 40 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 September 30, October 1, Net gains (losses) recognized during the period related to equity securities $ (38) $ 4 Less: Net gains (losses) recognized during the period related to equity securities sold during the period (95) 5 Net unrealized gains (losses) recognized during the period related to equity securities still held at the end of the period $ 57 $ (1) Nine Months Ended September 30, October 1, Net gains (losses) recognized during the period related to equity securities $ (399) $ 361 Less: Net gains (losses) recognized during the period related to equity securities sold during the period (350) 33 Net unrealized gains (losses) recognized during the period related to equity securities still held at the end of the period $ (49) $ 328 |
Schedule of available-for-sale and trading securities | Our debt securities consisted of the following (in millions): Gross Unrealized Estimated Cost Gains Losses September 30, 2022 Trading securities $ 43 $ — $ (4) $ 39 Available-for-sale securities 1,960 22 (131) 1,851 Total debt securities $ 2,003 $ 22 $ (135) $ 1,890 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): September 30, 2022 December 31, 2021 Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities Marketable securities $ 39 $ 1,638 $ 40 $ 1,283 Other noncurrent assets — 213 — 266 Total debt securities $ 39 $ 1,851 $ 40 $ 1,549 |
Contractual maturities of available-for-sale debt securities | The contractual maturities of these available-for-sale debt securities as of September 30, 2022 were as follows (in millions): Cost Estimated Within 1 year $ 352 $ 342 After 1 year through 5 years 1,409 1,317 After 5 years through 10 years 35 47 After 10 years 164 145 Total $ 1,960 $ 1,851 |
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 Nine Months Ended September 30, October 1, September 30, October 1, Gross gains $ 2 $ 2 $ 5 $ 4 Gross losses (43) — (51) (8) Proceeds 135 91 479 1,058 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following (in millions): September 30, December 31, Raw materials and packaging $ 2,123 $ 2,133 Finished goods 1,246 982 Other 339 299 Total inventories $ 3,708 $ 3,414 |
HEDGING TRANSACTIONS AND DERI_2
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 September 30, December 31, Assets: Foreign currency contracts Prepaid expenses and other current assets $ 391 $ 151 Foreign currency contracts Other noncurrent assets 83 27 Interest rate contracts Prepaid expenses and other current assets — 1 Interest rate contracts Other noncurrent assets — 282 Total assets $ 474 $ 461 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 52 $ 15 Foreign currency contracts Other noncurrent liabilities 151 17 Interest rate contracts Other noncurrent liabilities 1,604 14 Total liabilities $ 1,807 $ 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 September 30, December 31, 2021 Assets: Foreign currency contracts Prepaid expenses and other current assets $ 105 $ 53 Foreign currency contracts Other noncurrent assets 10 — Commodity contracts Prepaid expenses and other current assets 131 131 Commodity contracts Other noncurrent assets — 3 Other derivative instruments Prepaid expenses and other current assets — 9 Total assets $ 246 $ 196 Liabilities: Foreign currency contracts Accounts payable and accrued expenses $ 22 $ 34 Foreign currency contracts Other noncurrent liabilities 3 9 Commodity contracts Accounts payable and accrued expenses 40 6 Commodity contracts Other noncurrent liabilities 6 1 Other derivative instruments Accounts payable and accrued expenses 19 — Total liabilities $ 90 $ 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 tables present 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 September 30, 2022 Foreign currency contracts $ 197 Net operating revenues $ 88 Foreign currency contracts 12 Cost of goods sold 10 Foreign currency contracts — Interest expense (1) Foreign currency contracts (56) Other income (loss) — net (71) Total $ 153 $ 26 Three Months Ended October 1, 2021 Foreign currency contracts $ 15 Net operating revenues $ (21) Foreign currency contracts 6 Cost of goods sold (6) Foreign currency contracts — Interest expense (1) Foreign currency contracts (43) Other income (loss) — net (35) Total $ (22) $ (63) Gain (Loss) Location of Gain (Loss) Recognized in Income Gain (Loss) Reclassified from AOCI into Income Nine Months Ended September 30, 2022 Foreign currency contracts $ 475 Net operating revenues $ 148 Foreign currency contracts 34 Cost of goods sold 13 Foreign currency contracts — Interest expense (3) Foreign currency contracts (175) Other income (loss) — net (171) Total $ 334 $ (13) Nine Months Ended October 1, 2021 Foreign currency contracts $ (1) Net operating revenues $ (71) Foreign currency contracts (5) Cost of goods sold (9) Foreign currency contracts — Interest expense (12) Foreign currency contracts 15 Other income (loss) — net 49 Interest rate contracts 110 Interest expense (90) Total $ 119 $ (133) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The following tables summarize 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 September 30, October 1, Interest rate contracts Interest expense $ (688) $ (56) Fixed-rate debt Interest expense 705 55 Net impact of fair value hedging instruments $ 17 $ (1) Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss) Nine Months Ended September 30, October 1, Interest rate contracts Interest expense $ (1,873) $ (236) Fixed-rate debt Interest expense 1,871 237 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 September 30, December 31, September 30, December 31, September 30, December 31, Current maturities of long-term debt $ — $ 200 $ — $ 1 $ — $ — Long-term debt 11,243 12,353 (1,568) 255 203 228 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 Nine Months Ended September 30, December 31, September 30, October 1, September 30, October 1, Foreign currency contracts $ 37 $ 40 $ (1) $ 6 $ (2) $ (1) Foreign currency denominated debt 11,043 12,812 709 304 1,768 673 Total $ 11,080 $ 12,852 $ 708 $ 310 $ 1,766 $ 672 |
Derivative Instruments, Not Designated as Hedging Instruments, Gain (Loss) in Earnings | The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions): Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Gain (Loss) Three Months Ended September 30, October 1, Foreign currency contracts Net operating revenues $ 16 $ 2 Foreign currency contracts Cost of goods sold 21 (10) Foreign currency contracts Other income (loss) — net 41 (43) Commodity contracts Cost of goods sold (10) (32) Other derivative instruments Selling, general and administrative expenses (17) (2) Total $ 51 $ (85) Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Gain (Loss) Nine Months Ended September 30, October 1, Foreign currency contracts Net operating revenues $ 23 $ 2 Foreign currency contracts Cost of goods sold 44 (17) Foreign currency contracts Other income (loss) — net 79 (39) Interest rate contracts Interest expense — (187) Commodity contracts Cost of goods sold (5) 178 Other derivative instruments Selling, general and administrative expenses (38) 18 Other derivative instruments Other income (loss) — net — (3) Total $ 103 $ (48) |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, December 31, Net foreign currency translation adjustments $ (14,656) $ (12,595) Accumulated net gains (losses) on derivatives 270 20 Unrealized net gains (losses) on available-for-sale debt securities (74) (62) Adjustments to pension and other postretirement benefit liabilities (1,409) (1,693) Accumulated other comprehensive income (loss) $ (15,869) $ (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): Nine Months Ended September 30, 2022 Shareowners of Noncontrolling Total Consolidated net income $ 7,511 $ 4 $ 7,515 Other comprehensive income: Net foreign currency translation adjustments (2,061) (204) (2,265) Net gains (losses) on derivatives 1 250 — 250 Net change in unrealized gains (losses) on available-for-sale debt securities 2 (12) — (12) Net change in pension and other postretirement benefit liabilities 284 — 284 Total comprehensive income (loss) $ 5,972 $ (200) $ 5,772 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 September 30, 2022 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (401) $ (3) $ (404) Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,340) — (1,340) Gains (losses) on net investment hedges arising during the period 1 708 (177) 531 Net foreign currency translation adjustments $ (1,033) $ (180) $ (1,213) Derivatives: Gains (losses) arising during the period $ 150 $ (38) $ 112 Reclassification adjustments recognized in net income (26) 7 (19) Net gains (losses) on derivatives 1 $ 124 $ (31) $ 93 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (12) $ (1) $ (13) Reclassification adjustments recognized in net income 41 (10) 31 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ 29 $ (11) $ 18 Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ 21 $ (7) $ 14 Reclassification adjustments recognized in net income 26 (6) 20 Net change in pension and other postretirement benefit liabilities $ 47 $ (13) $ 34 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ (833) $ (235) $ (1,068) 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. Nine Months Ended September 30, 2022 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (27) $ (216) $ (243) Reclassification adjustments recognized in net income 200 — 200 Gains (losses) on intra-entity transactions that are of a long-term investment nature (3,343) — (3,343) Gains (losses) on net investment hedges arising during the period 1 1,766 (441) 1,325 Net foreign currency translation adjustments $ (1,404) $ (657) $ (2,061) Derivatives: Gains (losses) arising during the period $ 330 $ (90) $ 240 Reclassification adjustments recognized in net income 13 (3) 10 Net gains (losses) on derivatives 1 $ 343 $ (93) $ 250 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (56) $ 9 $ (47) Reclassification adjustments recognized in net income 46 (11) 35 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (10) $ (2) $ (12) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ 287 $ (65) $ 222 Reclassification adjustments recognized in net income 82 (20) 62 Net change in pension and other postretirement benefit liabilities $ 369 $ (85) $ 284 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ (702) $ (837) $ (1,539) 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 October 1, 2021 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (636) $ 39 $ (597) Reclassification adjustments recognized in net income 13 — 13 Gains (losses) on intra-entity transactions that are of a long-term investment nature (575) — (575) Gains (losses) on net investment hedges arising during the period 1 310 (77) 233 Net foreign currency translation adjustments $ (888) $ (38) $ (926) Derivatives: Gains (losses) arising during the period $ (26) $ 7 $ (19) Reclassification adjustments recognized in net income 63 (16) 47 Net gains (losses) on derivatives 1 $ 37 $ (9) $ 28 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (28) $ 8 $ (20) Reclassification adjustments recognized in net income (2) — (2) Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (30) $ 8 $ (22) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ (102) $ 29 $ (73) Reclassification adjustments recognized in net income 56 (14) 42 Net change in pension and other postretirement benefit liabilities $ (46) $ 15 $ (31) Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ (927) $ (24) $ (951) 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. Nine Months Ended October 1, 2021 Before-Tax Amount Income Tax After-Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ 505 $ (8) $ 497 Reclassification adjustments recognized in net income 193 — 193 Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,317) — (1,317) Gains (losses) on net investment hedges arising during the period 1 672 (168) 504 Reclassification adjustments for net investment hedges recognized in net income 1 4 — 4 Net foreign currency translation adjustments $ 57 $ (176) $ (119) Derivatives: Gains (losses) arising during the period $ 108 $ (30) $ 78 Reclassification adjustments recognized in net income 139 (33) 106 Net gains (losses) on derivatives 1 $ 247 $ (63) $ 184 Available-for-sale debt securities: Unrealized gains (losses) arising during the period $ (131) $ 45 $ (86) Reclassification adjustments recognized in net income 4 (1) 3 Net change in unrealized gains (losses) on available-for-sale debt securities 2 $ (127) $ 44 $ (83) Pension and other postretirement benefit liabilities: Net pension and other postretirement benefit liabilities arising during the period $ 251 $ (46) $ 205 Reclassification adjustments recognized in net income 218 (54) 164 Net change in pension and other postretirement benefit liabilities $ 469 $ (100) $ 369 Other comprehensive income (loss) attributable to shareowners of The Coca-Cola $ 646 $ (295) $ 351 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 statements of income where adjustments reclassified from AOCI into income were recorded (in millions): Amount Reclassified from AOCI Description of AOCI Component Financial Statement Line Item Three Months Ended September 30, 2022 Nine Months Ended September 30, 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 $ (88) $ (148) Foreign currency contracts Cost of goods sold (10) (13) Foreign currency contracts Interest expense 1 3 Foreign currency contracts Other income (loss) — net 71 171 Income before income taxes (26) 13 Income taxes 7 (3) Consolidated net income $ (19) $ 10 Available-for-sale debt securities: Sale of debt securities Other income (loss) — net $ 41 $ 46 Income before income taxes 41 46 Income taxes (10) (11) Consolidated net income $ 31 $ 35 Pension and other postretirement benefit liabilities: Recognized net actuarial loss Other income (loss) — net $ 26 $ 84 Recognized prior service cost (credit) Other income (loss) — net — (2) Income before income taxes 26 82 Income taxes (6) (20) Consolidated net income $ 20 $ 62 |
CHANGES IN EQUITY (Tables)
CHANGES IN EQUITY (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2022 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests July 1, 2022 4,326 $ 24,803 $ 69,970 $ (14,801) $ 1,760 $ 18,581 $ (52,505) $ 1,798 Comprehensive income (loss) — 1,603 2,825 (1,068) — — — (154) Dividends paid/payable to — (1,902) (1,902) — — — — — Dividends paid to noncontrolling interests — (13) — — — — — (13) Purchases of treasury stock (3) (188) — — — — (188) — Impact related to stock-based 1 133 — — — 106 27 — September 30, 2022 4,324 $ 24,436 $ 70,893 $ (15,869) $ 1,760 $ 18,687 $ (52,666) $ 1,631 Shareowners of The Coca-Cola Company Nine Months Ended September 30, 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) — 5,772 7,511 (1,539) — — — (200) Dividends paid/payable to — (5,712) (5,712) — — — — — Dividends paid to noncontrolling interests — (29) — — — — — (29) Purchases of treasury stock (21) (1,336) — — — — (1,336) — Impact related to stock-based 20 881 — — — 570 311 — Other activities — — — — — 1 — (1) September 30, 2022 4,324 $ 24,436 $ 70,893 $ (15,869) $ 1,760 $ 18,687 $ (52,666) $ 1,631 Shareowners of The Coca-Cola Company Three Months Ended October 1, 2021 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests July 2, 2021 4,315 $ 24,255 $ 67,838 $ (13,299) $ 1,760 $ 17,781 $ (51,831) $ 2,006 Comprehensive income (loss) — 1,458 2,471 (951) — — — (62) Dividends paid/payable to — (1,815) (1,815) — — — — — Dividends paid to noncontrolling — (10) — — — — — (10) Contributions by noncontrolling — 20 — — — — — 20 Impact related to stock-based 4 225 — — — 148 77 — October 1, 2021 4,319 $ 24,133 $ 68,494 $ (14,250) $ 1,760 $ 17,929 $ (51,754) $ 1,954 Shareowners of The Coca-Cola Company Nine Months Ended October 1, 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) — 7,692 7,357 351 — — — (16) Dividends paid/payable to — (5,437) (5,437) — — — — — Dividends paid to noncontrolling — (35) — — — — — (35) Contributions by noncontrolling interests — 20 — — — — — 20 Impact related to stock-based 17 590 — — — 328 262 — October 1, 2021 4,319 $ 24,133 $ 68,494 $ (14,250) $ 1,760 $ 17,929 $ (51,754) $ 1,954 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) | 9 Months Ended |
Sep. 30, 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 September 30, October 1, September 30, October 1, Service cost $ 25 $ 25 $ 2 $ 2 Interest cost 65 46 4 4 Expected return on plan assets 1 (132) (152) (4) (4) Amortization of prior service credit — — — (1) Amortization of net actuarial loss 26 34 — — Net periodic benefit cost (income) (16) (47) 2 1 Settlement charges 2 — 21 — — Total cost (income) $ (16) $ (26) $ 2 $ 1 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. Pension Plans Other Postretirement Nine Months Ended September 30, October 1, September 30, October 1, Service cost $ 69 $ 74 $ 5 $ 7 Interest cost 167 137 13 11 Expected return on plan assets 1 (428) (454) (12) (13) Amortization of prior service credit — — (2) (2) Amortization of net actuarial loss 84 114 — 1 Net periodic benefit cost (income) (108) (129) 4 4 Settlement charges 2 — 104 — — Total cost (income) $ (108) $ (25) $ 4 $ 4 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) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
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): September 30, 2022 Level 1 Level 2 Level 3 Other 3 Netting 4 Fair Value Assets: Equity securities with readily determinable values 1 $ 1,719 $ 185 $ 17 $ 91 $ — $ 2,012 Debt securities 1 — 1,881 9 — — 1,890 Derivatives 2 72 648 — — (537) 183 7 Total assets $ 1,791 $ 2,714 $ 26 $ 91 $ (537) $ 4,085 Liabilities: Contingent consideration liability $ — $ — $ 1,561 5 $ — $ — $ 1,561 Derivatives 2 6 1,891 — — (1,817) 6 80 7 Total liabilities $ 6 $ 1,891 $ 1,561 $ — $ (1,817) $ 1,641 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. The fair value was determined using a Monte Carlo valuation model. 6 The Company has the right to reclaim $1,325 million in cash collateral it has netted against its derivative positions. 7 The Company’s derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows: $90 million in the line item prepaid expenses and other current assets, $93 million in the line item other noncurrent assets and $80 million in the line item other noncurrent liabilities 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. The fair value was determined using a Monte Carlo valuation model. 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 other noncurrent liabilities. |
Gains and losses on assets measured at fair value on a nonrecurring basis | The gains and losses on assets measured at fair value on a nonrecurring basis are summarized in the following table (in millions): Gains (Losses) Three Months Ended Nine Months Ended September 30, October 1, September 30, October 1, Assets held for sale $ — $ (266) 2 $ — $ (266) 2 Other-than-temporary impairment charges — — (96) 3 — Impairment of intangible assets (57) 1 — (57) 1 — Valuation of shares in equity method investee — — (24) 4 — Total $ (57) $ (266) $ (177) $ (266) 1 During the three and nine months ended September 30, 2022, the Company recorded an impairment charge of $57 million related to a trademark in Asia Pacific, which was primarily driven by a change in brand strategy resulting in revised projections of future operating results for the trademark. The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs. 2 The Company is required to record assets and liabilities that are held for sale at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price. During the three and nine months ended October 1, 2021, the Company recorded charges of $266 million in the line item other income (loss) — net related to the restructuring of our manufacturing operations in the United States. These charges, which were calculated based on Level 3 inputs, primarily impacted the line item property, plant and equipment in our consolidated balance sheet. 3 The Company recorded an other-than-temporary impairment charge of $96 million during the nine months ended September 30, 2022 related to an equity method investee in Russia. This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results. |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Segment Reporting [Abstract] | ||
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 September 30, 2022 Net operating revenues: Third party $ 1,844 $ 1,267 $ 4,197 $ 1,263 $ 679 $ 1,784 $ 29 $ — $ 11,063 Intersegment 143 — 4 164 — 2 — (313) — Total net operating revenues 1,987 1,267 4,201 1,427 679 1,786 29 (313) 11,063 Operating income (loss) 1,046 712 1,082 589 67 46 (454) — 3,088 Income (loss) before income taxes 1,078 715 1,090 598 69 466 (572) — 3,444 Identifiable operating assets 7,153 2 2,072 25,989 2,347 3 6,741 9,384 2,3 20,480 — 74,166 Investments 1 433 607 19 215 — 12,479 4,552 — 18,305 As of and for the Three Months Net operating revenues: Third party $ 1,758 $ 1,137 $ 3,478 $ 1,229 $ 753 $ 1,663 $ 24 $ — $ 10,042 Intersegment 157 — 1 145 — 2 1 (306) — Total net operating revenues 1,915 1,137 3,479 1,374 753 1,665 25 (306) 10,042 Operating income (loss) 1,028 712 868 594 114 81 (499) — 2,898 Income (loss) before income taxes 1,050 716 630 604 116 462 (494) — 3,084 Identifiable operating assets 8,213 2 1,839 19,118 2,254 3 7,784 10,213 2,3 22,004 — 71,425 Investments 1 482 606 331 238 2 13,137 4,385 — 19,181 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 16 percent of consolidated property, plant and equipment — net as of September 30, 2022, October 1, 2021 and December 31, 2021. 3 Property, plant and equipment — net in the Philippines represented 10 percent of consolidated property, plant and equipment — net as of September 30, 2022, October 1, 2021 and December 31, 2021. | Europe, Middle East & Africa Latin North Asia Pacific Global Ventures Bottling Corporate Eliminations Consolidated Nine Months Ended September 30, 2022 Net operating revenues: Third party $ 5,523 $ 3,621 $ 11,815 $ 3,837 $ 2,103 $ 5,903 $ 77 $ — $ 32,879 Intersegment 481 — 6 567 — 6 — (1,060) — Total net operating revenues 6,004 3,621 11,821 4,404 2,103 5,909 77 (1,060) 32,879 Operating income (loss) 3,344 2,146 2,978 2,006 162 352 (2,154) — 8,834 Income (loss) before income taxes 3,326 2,152 3,002 2,025 173 1,312 (2,804) — 9,186 Nine Months Ended October 1, 2021 Net operating revenues: Third party $ 5,094 $ 3,113 $ 9,793 $ 3,811 $ 2,030 $ 5,292 $ 58 $ — $ 29,191 Intersegment 461 — 4 468 — 7 1 (941) — Total net operating revenues 5,555 3,113 9,797 4,279 2,030 5,299 59 (941) 29,191 Operating income (loss) 2,990 1,942 2,610 2,046 215 314 (1,481) — 8,636 Income (loss) before income taxes 3,049 1,952 2,405 2,078 221 1,201 (1,441) — 9,465 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Oct. 01, 2021 | Dec. 31, 2020 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | ||||
Cash and cash equivalents | $ 10,127 | $ 9,684 | $ 11,301 | $ 6,795 |
Restricted Cash and Cash Equivalents, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets | Other noncurrent assets | Other noncurrent assets | Other noncurrent assets |
Restricted Cash and Cash Equivalents | $ 307 | $ 341 | $ 312 | $ 315 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 10,434 | $ 10,025 | $ 11,613 | $ 7,110 |
ACQUISTIONS AND DIVESTITURES -
ACQUISTIONS AND DIVESTITURES - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Oct. 01, 2021 | |
Acquisition and investment activities | ||
Acquisitions of businesses, equity method investments and nonmarketable securities | $ 40 | $ 11 |
Proceeds from disposals of businesses, equity method investments and nonmarketable securities | 229 | 1,950 |
Proceeds from Divestiture of Businesses | 123 | 134 |
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 13 | 63 |
CCA | ||
Acquisition and investment activities | ||
Proceeds from Divestiture of Businesses | 1,738 | |
Gain (Loss) on Disposition of Business | $ 695 |
ACQUISTIONS AND DIVESTITURES _2
ACQUISTIONS AND DIVESTITURES - Held for Sale Assets and Liabilties (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Business Combination and Asset Acquisition [Abstract] | ||
Cash, cash equivalents and short-term investments | $ 222 | $ 228 |
Trade accounts receivable, less allowances | 17 | 21 |
Inventories | 63 | 55 |
Prepaid expenses and other current assets | 46 | 36 |
Other noncurrent assets | 34 | 9 |
Deferred income tax assets | 7 | 6 |
Property, plant and equipment — net | 289 | 282 |
Goodwill | 35 | 37 |
Assets held for sale | 713 | 674 |
Accounts payable and accrued expenses | 165 | 139 |
Accrued income taxes | 6 | 4 |
Other noncurrent liabilities | 9 | 9 |
Deferred income tax liabilities | 5 | 5 |
Liabilities held for sale | $ 185 | $ 157 |
NET OPERATING REVENUES (Details
NET OPERATING REVENUES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Disaggregation of Revenue [Table] | ||||
Net Operating Revenues | $ 11,063 | $ 10,042 | $ 32,879 | $ 29,191 |
Concentrate Revenue | ||||
Disaggregation of Revenue [Table] | ||||
Net Operating Revenues | 6,574 | 5,871 | 18,663 | 16,847 |
Finished product operations | ||||
Disaggregation of Revenue [Table] | ||||
Net Operating Revenues | 4,489 | 4,171 | 14,216 | 12,344 |
UNITED STATES | ||||
Disaggregation of Revenue [Table] | ||||
Net Operating Revenues | 4,144 | 3,418 | 11,624 | 9,643 |
UNITED STATES | Concentrate Revenue | ||||
Disaggregation of Revenue [Table] | ||||
Net Operating Revenues | 2,235 | 1,749 | 5,768 | 4,899 |
UNITED STATES | Finished product operations | ||||
Disaggregation of Revenue [Table] | ||||
Net Operating Revenues | 1,909 | 1,669 | 5,856 | 4,744 |
International [Member] | ||||
Disaggregation of Revenue [Table] | ||||
Net Operating Revenues | 6,919 | 6,624 | 21,255 | 19,548 |
International [Member] | Concentrate Revenue | ||||
Disaggregation of Revenue [Table] | ||||
Net Operating Revenues | 4,339 | 4,122 | 12,895 | 11,948 |
International [Member] | Finished product operations | ||||
Disaggregation of Revenue [Table] | ||||
Net Operating Revenues | $ 2,580 | $ 2,502 | $ 8,360 | $ 7,600 |
INVESTMENTS - Carrying Value of
INVESTMENTS - Carrying Value of Equity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI | $ 2,012 | $ 2,723 |
Equity Securities, FV-NI | 2,012 | 2,723 |
Equity Securities without Readily Determinable Fair Value, Amount | 40 | 47 |
Marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI | 296 | 376 |
Equity Securities without Readily Determinable Fair Value, Amount | 0 | 0 |
Other Investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI, Noncurrent | 542 | 771 |
Equity Securities without Readily Determinable Fair Value, Amount | 40 | 47 |
Other noncurrent assets | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity Securities, FV-NI, Noncurrent | 1,174 | 1,576 |
Equity Securities without Readily Determinable Fair Value, Amount | $ 0 | $ 0 |
INVESTMENTS - Unrealized Gain (
INVESTMENTS - Unrealized Gain (Loss) Recognized Related to Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Equity Securities, FV-NI, Gain (Loss) | $ (38) | $ 4 | $ (399) | $ 361 |
Equity Securities, FV-NI, Realized Gain (Loss) | (95) | 5 | (350) | 33 |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ 57 | $ (1) | $ (49) | $ 328 |
INVESTMENTS - Debt Securities (
INVESTMENTS - Debt Securities (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Cost | ||
Trading securities | $ 43 | $ 39 |
Available-for-sale securities | 1,960 | 1,648 |
Total debt securities | 2,003 | 1,687 |
Gains | ||
Trading securities | 0 | 1 |
Available-for-sale securities | 22 | 33 |
Total debt securities | 22 | 34 |
Losses | ||
Trading securities | (4) | 0 |
Available-for-sale securities | (131) | (132) |
Total debt securities | (135) | (132) |
Estimated Fair Value | ||
Trading securities | 39 | 40 |
Available-for-sale securities | 1,851 | 1,549 |
Total debt securities | $ 1,890 | $ 1,589 |
INVESTMENTS - Balance Sheet Cla
INVESTMENTS - Balance Sheet Classification (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Total debt securities | $ 1,890 | $ 1,589 |
Trading Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total debt securities | 39 | 40 |
Available-for-Sale Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total debt securities | 1,851 | 1,549 |
Marketable securities | Trading Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total debt securities | 39 | 40 |
Marketable securities | Available-for-Sale Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total debt securities | 1,638 | 1,283 |
Other noncurrent assets | Trading Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total debt securities | 0 | 0 |
Other noncurrent assets | Available-for-Sale Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Total debt securities | $ 213 | $ 266 |
INVESTMENTS - Contractual Matur
INVESTMENTS - Contractual Maturity of Available For Sale Debt Securities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Cost | ||
Within 1 year | $ 352 | |
After 1 year through 5 years | 1,409 | |
After 5 years through 10 years | 35 | |
After 10 years | 164 | |
Total | 1,960 | $ 1,648 |
Estimated Fair Value | ||
Within 1 year | 342 | |
After 1 year through 5 years | 1,317 | |
After 5 years through 10 years | 47 | |
After 10 years | 145 | |
Total | $ 1,851 | $ 1,549 |
INVESTMENTS - Sale and_or Matur
INVESTMENTS - Sale and/or Maturity of Available-for-Sale Securities (Details) - Debt Securities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Gross gains | $ 2 | $ 2 | $ 5 | $ 4 |
Gross losses | (43) | 0 | (51) | (8) |
Proceeds | $ 135 | $ 91 | $ 479 | $ 1,058 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Solvency Funds of Insurance Captive | $ 1,249 | $ 1,670 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory balances | ||
Raw materials and packaging | $ 2,123 | $ 2,133 |
Finished goods | 1,246 | 982 |
Other | 339 | 299 |
Total inventories | $ 3,708 | $ 3,414 |
HEDGING TRANSACTIONS AND DERI_3
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivative Instruments Designated and Qualified as Hedging Relationships (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | $ 474 | $ 461 |
Derivative instruments, liabilities, fair value | 1,807 | 46 |
Foreign currency contracts | Prepaid Expenses and Other Current Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | 391 | 151 |
Foreign currency contracts | Other noncurrent assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | 83 | 27 |
Foreign currency contracts | Accounts payable and accrued expenses | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, fair value | 52 | 15 |
Foreign currency contracts | Other Noncurrent Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, fair value | 151 | 17 |
Interest Rate Contract | Prepaid Expenses and Other Current Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | 0 | 1 |
Interest Rate Contract | Other noncurrent assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | 0 | 282 |
Interest Rate Contract | Other Noncurrent Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, fair value | $ 1,604 | $ 14 |
HEDGING TRANSACTIONS AND DERI_4
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Fair Values of Derivative Instruments Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | $ 246 | $ 196 |
Derivative instruments, liabilities, fair value | 90 | 50 |
Foreign currency contracts | Prepaid Expenses and Other Current Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | 105 | 53 |
Foreign currency contracts | Other noncurrent assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | 10 | 0 |
Foreign currency contracts | Accounts payable and accrued expenses | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, fair value | 22 | 34 |
Foreign currency contracts | Other Noncurrent Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, fair value | 3 | 9 |
Commodity Contract | Prepaid Expenses and Other Current Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | 131 | 131 |
Commodity Contract | Other noncurrent assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | 0 | 3 |
Commodity Contract | Accounts payable and accrued expenses | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, fair value | 40 | 6 |
Commodity Contract | Other Noncurrent Liabilities | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, fair value | 6 | 1 |
Other derivative instruments | Prepaid Expenses and Other Current Assets | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, assets, fair value | 0 | 9 |
Other derivative instruments | Accounts payable and accrued expenses | ||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||
Derivative instruments, liabilities, fair value | $ 19 | $ 0 |
HEDGING TRANSACTIONS AND DERI_5
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Cash Flow Hedges Included in OCI, AOCI and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Gains (Losses) arising during the period | $ 150 | $ (26) | $ 330 | $ 108 |
Reclassification adjustments recognized in net income, before tax | (26) | 63 | 13 | 139 |
Cash Flow Hedging | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Gains (Losses) arising during the period | 153 | (22) | 334 | 119 |
Reclassification adjustments recognized in net income, before tax | 26 | (63) | (13) | (133) |
Net operating revenues | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Reclassification adjustments recognized in net income, before tax | (88) | (148) | ||
Net operating revenues | Foreign currency contracts | Cash Flow Hedging | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Gains (Losses) arising during the period | 197 | 15 | 475 | (1) |
Reclassification adjustments recognized in net income, before tax | 88 | (21) | 148 | (71) |
Cost of goods sold | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Reclassification adjustments recognized in net income, before tax | (10) | (13) | ||
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 | 12 | 6 | 34 | (5) |
Reclassification adjustments recognized in net income, before tax | 10 | (6) | 13 | (9) |
Interest expense | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Reclassification adjustments recognized in net income, before tax | 1 | 3 | ||
Interest expense | Foreign currency contracts | Cash Flow Hedging | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Gains (Losses) arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustments recognized in net income, before tax | (1) | (1) | (3) | (12) |
Interest expense | Interest Rate Contract | Cash Flow Hedging | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Gains (Losses) arising during the period | 110 | |||
Reclassification adjustments recognized in net income, before tax | (90) | |||
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 | (56) | (43) | (175) | 15 |
Reclassification adjustments recognized in net income, before tax | $ (71) | $ (35) | $ (171) | $ 49 |
HEDGING TRANSACTIONS AND DERI_6
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Amounts Related to Derivatives Designated as Fair Value Hedges (Details) - Fair Value Hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | Dec. 31, 2021 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 17 | $ (1) | $ (2) | $ 1 | |
Short-term Debt | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Amount of Hedged Item | 0 | 0 | $ 200 | ||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | 0 | 0 | 1 | ||
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 0 | 0 | 0 | ||
Long-term Debt | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Amount of Hedged Item | 11,243 | 11,243 | 12,353 | ||
Hedged Liability, Fair Value Hedge, Cumulative Increase (Decrease) | (1,568) | (1,568) | 255 | ||
Hedged Liability, Discontinued Fair Value Hedge, Cumulative Increase (Decrease) | 203 | 203 | $ 228 | ||
Interest Rate Contract | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Gain (Loss) on Derivative, Net | (688) | (56) | (1,873) | (236) | |
Fixed-rate debt | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 705 | $ 55 | $ 1,871 | $ 237 |
HEDGING TRANSACTIONS AND DERI_7
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Amounts Related to Derivatives Designated as Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | Dec. 31, 2021 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | $ 708 | $ 310 | $ 1,766 | $ 672 | |
Net Investment Hedging | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | 11,080 | 11,080 | $ 12,852 | ||
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | 708 | 310 | 1,766 | 672 | |
Foreign currency contracts | Net Investment Hedging | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | 37 | 37 | 40 | ||
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | (1) | 6 | (2) | (1) | |
Foreign currency denominated debt | Net Investment Hedging | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | 11,043 | 11,043 | $ 12,812 | ||
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | $ 709 | $ 304 | $ 1,768 | $ 673 |
HEDGING TRANSACTIONS AND DERI_8
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Derivatives Not Designated as Hedging Instruments Impact on Earnings (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 51 | $ (85) | $ 103 | $ (48) |
Foreign currency contracts | Net operating revenues | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Derivative, Gain (Loss) on Derivative, Net | 16 | 2 | 23 | 2 |
Foreign currency contracts | Cost of goods sold | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Derivative, Gain (Loss) on Derivative, Net | 21 | (10) | 44 | (17) |
Foreign currency contracts | Other Income (loss) - net | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Derivative, Gain (Loss) on Derivative, Net | 41 | (43) | 79 | (39) |
Commodity Contract | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (10) | $ (32) | $ (5) | $ 178 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of goods sold | Cost of goods sold | Cost of goods sold | Cost of goods sold |
Interest Rate Contract | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ (187) | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest expense | Interest expense | ||
Other derivative instruments | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (17) | $ (2) | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses | ||
Other derivative instruments | Selling, General and Administrative Expenses | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Derivative, Gain (Loss) on Derivative, Net | $ (38) | $ 18 | ||
Other derivative instruments | Other Operating Income (Expense) | ||||
Fair Value, Derivatives Designated and Not Designated as Hedges | ||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ (3) |
HEDGING TRANSACTIONS AND DERI_9
HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 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 | $ 324 | ||||
Reclassification adjustments recognized in net income | $ 0 | $ (13) | (200) | $ (193) | |
Net Investment Hedging | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | 11,080 | 11,080 | $ 12,852 | ||
Reclassification adjustments recognized in net income | $ 4 | ||||
Foreign currency contracts | Cash Flow Hedging | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | 5,963 | 5,963 | 7,399 | ||
Foreign currency contracts | Net Investment Hedging | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | 37 | 37 | 40 | ||
Cross Currency Swap | Cash Flow Hedging | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | 1,524 | 1,524 | 1,994 | ||
Commodity Contract | Cash Flow Hedging | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | 45 | 45 | 10 | ||
Interest Rate Swap | Fair Value Hedging | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | 12,701 | 12,701 | 12,113 | ||
Not Designated as Hedging Instrument [Member] | Foreign currency contracts | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | 4,681 | 4,681 | 4,258 | ||
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] | Commodity Contract | |||||
Fair Value, Derivatives Designated and Not Designated as Hedges | |||||
Derivative, Notional Amount | $ 501 | $ 501 | $ 908 |
DEBT AND BORROWING ARRANGEMEN_2
DEBT AND BORROWING ARRANGEMENTS (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Fixed interest rate debt with a February 1, 2022 maturity date | |
Long-term debt | |
Extinguishment of Debt, Amount | $ 288 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 8.50% |
Fixed interest rate debt with a September 15, 2022 maturity date | |
Long-term debt | |
Extinguishment of Debt, Amount | $ 122 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 8% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Mar. 30, 2018 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2015 | |
IRS Claim | ||||||
IRS Claim | $ 13,000 | |||||
Recorded Estimate of Tax Liability | $ 419 | $ 419 | $ 438 | |||
Incremental tax and interest liability | $ 250 | $ 750 | ||||
Increase in Effective Tax Rate | 3.50% | 3.50% | ||||
Potential Aggregate Tax Liability- Brazil | $ 5,100 | $ 5,100 | ||||
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 | 918 | 918 | ||||
VIEs maximum exposures to loss | 76 | 76 | ||||
Risk Management Programs | ||||||
Risk Management Programs | ||||||
Self-insurance reserves | $ 218 | $ 218 | $ 229 |
OTHER COMPREHENSIVE INCOME - AO
OTHER COMPREHENSIVE INCOME - AOCI Attributable to Shareholders (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
AOCI Attributable to the Shareowners of The Coca Cola Company | ||
Accumulated other comprehensive income (loss) | $ (15,869) | $ (14,330) |
Shareowners of The Coca-Cola Company | ||
AOCI Attributable to the Shareowners of The Coca Cola Company | ||
Net foreign currency translation adjustments | (14,656) | (12,595) |
Accumulated net gains (losses) on derivatives | 270 | 20 |
Unrealized net gains (losses) on available-for-sale debt securities | (74) | (62) |
Adjustments to pension and other benefits liabilities | (1,409) | (1,693) |
Accumulated other comprehensive income (loss) | $ (15,869) | $ (14,330) |
OTHER COMPREHENSIVE INCOME - To
OTHER COMPREHENSIVE INCOME - Total Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Other comprehensive income: | ||||
Net Income Attributable to Shareowners of The Coca-Cola Company | $ 2,825 | $ 2,471 | $ 7,511 | $ 7,357 |
Net foreign currency translation adjustments | (1,213) | (926) | (2,061) | (119) |
Net gains (losses) on derivatives | 93 | 28 | 250 | 184 |
Net change in unrealized gains (losses) on available-for-sale debt securities | 18 | (22) | (12) | (83) |
Net change in pension and other benefit liabilities | 34 | (31) | 284 | 369 |
Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company | 1,757 | 1,520 | 5,972 | 7,708 |
Net Income (Loss) Attributable to Noncontrolling Interest | (3) | 4 | 4 | (3) |
Net foreign currency translation adjustments attributable to noncontrolling interests | (204) | |||
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 | |||
Less: Comprehensive income (loss) attributable to noncontrolling interests | (154) | (62) | (200) | (16) |
Consolidated net income | 2,822 | 2,475 | 7,515 | 7,354 |
Net foreign currency translation adjustments | (1,364) | (991) | (2,265) | (131) |
Net gains (losses) on derivatives | 93 | 28 | 250 | 184 |
Net change in unrealized gains (losses) on available-for-sale debt securities | 18 | (22) | (12) | (83) |
Net change in pension and other postretirement benefit liabilities | 34 | (32) | 284 | 368 |
Total Comprehensive Income | $ 1,603 | $ 1,458 | $ 5,772 | $ 7,692 |
OTHER COMPREHENSIVE INCOME - OC
OTHER COMPREHENSIVE INCOME - OCI Attributable to Shareholders (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Foreign currency translation adjustments: | ||||
Translation adjustment arising during the period | $ (401) | $ (636) | $ (27) | $ 505 |
Reclassification adjustments recognized in net income | 0 | 13 | 200 | 193 |
Gains (losses) on intra-entity transactions that are of a long-term-investment nature | (1,340) | (575) | (3,343) | (1,317) |
Gains (Losses) on Net Investment Hedges, before Reclassification and Tax | 708 | 310 | 1,766 | 672 |
Reclassification adjustments for net investment hedges recognized in net income | 4 | |||
Net foreign currency translation adjustments | (1,033) | (888) | (1,404) | 57 |
Derivatives: | ||||
Gains (Losses) arising during the period | 150 | (26) | 330 | 108 |
Reclassification adjustments recognized in net income, before tax | (26) | 63 | 13 | 139 |
Net gains (losses) on derivatives | 124 | 37 | 343 | 247 |
Available-for-sale securities: | ||||
Unrealized gains (losses) arising during the period | (12) | (28) | (56) | (131) |
Reclassification adjustments recognized in net income | 41 | (2) | 46 | 4 |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment, before Tax | 29 | (30) | (10) | (127) |
Pension and other benefit liabilities: | ||||
Net pension and other benefits arising during the period | 21 | (102) | 287 | 251 |
Reclassification adjustments recognized in net income | 26 | 56 | 82 | 218 |
Net change in pension and other benefit liabilities | 47 | (46) | 369 | 469 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (833) | (927) | (702) | 646 |
Foreign currency translation adjustments: | ||||
Translation adjustment arising during the period | (3) | 39 | (216) | (8) |
Reclassification adjustments recognized in net income | 0 | 0 | 0 | 0 |
Gains (losses) on intra-entity transactions that are of a long-term-investment nature | 0 | 0 | 0 | 0 |
Gains (losses) on net investment hedges arising during the period | (177) | (77) | (441) | (168) |
Reclassification adjustments for net investment hedges recognized in net income | 0 | |||
Net foreign currency translation adjustments | (180) | (38) | (657) | (176) |
Derivatives: | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | (38) | 7 | (90) | (30) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 7 | (16) | (3) | (33) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | (31) | (9) | (93) | (63) |
Available-for-sales securities: | ||||
Unrealized gains (losses) arising during the period | (1) | 8 | 9 | 45 |
Reclassification adjustments recognized in net income | (10) | 0 | (11) | (1) |
OCI, Debt Securities, Available-for-Sale, Gain (Loss), after Adjustment, Tax | (11) | 8 | (2) | 44 |
Pension and other benefit liabilities: | ||||
Net pension and other benefits arising during the period | (7) | 29 | (65) | (46) |
Reclassification adjustments recognized in net income | (6) | (14) | (20) | (54) |
Net change in pension and other benefit liabilities | (13) | 15 | (85) | (100) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (235) | (24) | (837) | (295) |
Foreign currency translation adjustments: | ||||
Translation adjustment arising during the period | (404) | (597) | (243) | 497 |
Reclassification adjustments recognized in net income | 0 | 13 | 200 | 193 |
Gains (losses) on intra-entity transactions that are of a long-term-investment nature | (1,340) | (575) | (3,343) | (1,317) |
Gains (losses) on net investments hedges arising during the period | 531 | 233 | 1,325 | 504 |
Reclassification adjustments for net investment hedges recognized in net income | 4 | |||
Net foreign currency translation adjustments | (1,213) | (926) | (2,061) | (119) |
Derivatives: | ||||
Gains (losses) arising during the period | 112 | (19) | 240 | 78 |
Reclassification adjustments recognized in net income | (19) | 47 | 10 | 106 |
Net gains (losses) on derivatives | 93 | 28 | 250 | 184 |
Available-for-sale securities: | ||||
Unrealized gains (losses) arising during the period | (13) | (20) | (47) | (86) |
Reclassification adjustments recognized in net income | 31 | (2) | 35 | 3 |
Net change in unrealized gains (losses) on available-for-sale debt securities | 18 | (22) | (12) | (83) |
Pension and other benefit liabilities: | ||||
Net pension and other benefits arising during the period | 14 | (73) | 222 | 205 |
Reclassification adjustments recognized in net income | 20 | 42 | 62 | 164 |
Net change in pension and other benefit liabilities | 34 | (31) | 284 | 369 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (1,068) | $ (951) | $ (1,539) | $ 351 |
OTHER COMPREHENSIVE INCOME - Ad
OTHER COMPREHENSIVE INCOME - Adjustment Reclassified to Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification adjustments recognized in net income, before tax | $ 0 | $ 13 | $ 200 | $ 193 |
Reclassification adjustments recognized in net income, tax | 0 | 0 | 0 | 0 |
Reclassification adjustments recognized in net income | 0 | 13 | 200 | 193 |
Reclassification adjustments recognized in net income, before tax | (26) | 63 | 13 | 139 |
Reclassification adjustments recognized in net income, tax | 7 | (16) | (3) | (33) |
Reclassification adjustments recognized in net income | (19) | 47 | 10 | 106 |
Reclassification adjustments recognized in net income, before tax | 41 | (2) | 46 | 4 |
Reclassification adjustments recognized in net income, tax | (10) | 0 | (11) | (1) |
Reclassification adjustments recognized in net income | 31 | (2) | 35 | 3 |
Reclassification adjustments recognized in net income, before tax | 26 | 56 | 82 | 218 |
Reclassification adjustments recognized in net income, tax | (6) | (14) | (20) | (54) |
Reclassification adjustments recognized in net income | 20 | $ 42 | 62 | $ 164 |
Other income (loss) — net | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification adjustments recognized in net income, before tax | 0 | 200 | ||
Reclassification adjustments recognized in net income, before tax | 71 | 171 | ||
Reclassification adjustments recognized in net income, before tax | 41 | 46 | ||
Recognized net actuarial loss | 26 | 84 | ||
Recognized prior service cost (credit) | 0 | (2) | ||
Net operating revenues | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification adjustments recognized in net income, before tax | (88) | (148) | ||
Cost of goods sold | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification adjustments recognized in net income, before tax | (10) | (13) | ||
Interest expense | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification adjustments recognized in net income, before tax | $ 1 | $ 3 |
CHANGES IN EQUITY (Details)
CHANGES IN EQUITY (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | Jul. 01, 2022 | Dec. 31, 2021 | Jul. 02, 2021 | Dec. 31, 2020 | |
Changes in Equity | ||||||||
Treasury Stock, Shares, Acquired | (3,000) | (21,000) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | $ 24,803 | $ 24,255 | $ 24,860 | $ 21,284 | ||||
Comprehensive income (loss) | 1,603 | 1,458 | 5,772 | 7,692 | ||||
Dividends, Common Stock, Cash | (1,902) | (1,815) | (5,712) | (5,437) | ||||
Dividends Paid to Noncontrolling Interests | (13) | (10) | (29) | (35) | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 20 | 20 | ||||||
Treasury Stock, Value, Acquired, Cost Method | (188) | (1,336) | ||||||
Impact related to stock compensation plans | 133 | 225 | 881 | 590 | ||||
Other Activities | 0 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 24,436 | 24,133 | 24,436 | $ 24,133 | ||||
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 | |||||||
Reinvested Earnings | ||||||||
Changes in Equity | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 69,970 | 67,838 | 69,094 | 66,555 | ||||
Comprehensive income (loss) | 2,825 | 2,471 | 7,511 | 7,357 | ||||
Dividends, Common Stock, Cash | (1,902) | (1,815) | (5,712) | (5,437) | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 70,893 | 68,494 | 70,893 | 68,494 | ||||
Reinvested Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||||
Changes in Equity | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 19 | |||||||
AOCI Attributable to Parent | ||||||||
Changes in Equity | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | (14,801) | (13,299) | (14,330) | (14,601) | ||||
Comprehensive income (loss) | (1,068) | (951) | (1,539) | 351 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ (15,869) | $ (14,250) | $ (15,869) | $ (14,250) | ||||
Common Stock | ||||||||
Changes in Equity | ||||||||
Common Stock, Shares, Outstanding | 4,324,000 | 4,319,000 | 4,324,000 | 4,319,000 | 4,326,000 | 4,325,000 | 4,315,000 | 4,302,000 |
Impact related to stock compensation plans, shares | 1,000 | 4,000 | 20,000 | 17,000 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | $ 1,760 | $ 1,760 | $ 1,760 | $ 1,760 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 1,760 | 1,760 | 1,760 | 1,760 | ||||
Capital Surplus | ||||||||
Changes in Equity | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 18,581 | 17,781 | 18,116 | 17,601 | ||||
Impact related to stock compensation plans | 106 | 148 | 570 | 328 | ||||
Other Activities | 1 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | 18,687 | 17,929 | 18,687 | 17,929 | ||||
Treasury Stock | ||||||||
Changes in Equity | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | (52,505) | (51,831) | (51,641) | (52,016) | ||||
Treasury Stock, Value, Acquired, Cost Method | (188) | (1,336) | ||||||
Impact related to stock compensation plans | 27 | 77 | 311 | 262 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | (52,666) | (51,754) | (52,666) | (51,754) | ||||
Noncontrolling Interests | ||||||||
Changes in Equity | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance | 1,798 | 2,006 | 1,861 | 1,985 | ||||
Comprehensive income (loss) | (154) | (62) | (200) | (16) | ||||
Dividends Paid to Noncontrolling Interests | (13) | (10) | (29) | (35) | ||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 20 | 20 | ||||||
Other Activities | (1) | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance | $ 1,631 | $ 1,954 | $ 1,631 | $ 1,954 |
SIGNIFICANT OPERATING AND NON_2
SIGNIFICANT OPERATING AND NONOPERATING ITEMS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Other Operating Charges | ||||
Other operating charges | $ 130 | $ 45 | $ 1,109 | $ 478 |
Asset Impairment Charges | 57 | 0 | 57 | 0 |
Business Exit Costs | 0 | 266 | 0 | 266 |
Tax litigation expense | 1 | 14 | ||
Other Nonoperating Items | ||||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 14 | (18) | 44 | 5 |
Equity Method Investment, Other than Temporary Impairment | 0 | 0 | 96 | 0 |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 0 | 0 | (24) | 0 |
Equity Method Investment, Realized Gain (Loss) on Disposal | 13 | 63 | ||
BodyArmor | ||||
Other Operating Charges | ||||
Gain (loss) related to BodyArmor transaction | (15) | (23) | ||
Nonoperating Income (Expense) [Member] | ||||
Other Operating Charges | ||||
Business Exit Costs | 266 | 266 | ||
Corporate | ||||
Other Operating Charges | ||||
Tax litigation expense | 14 | |||
Other Nonoperating Items | ||||
Charges related to debt extinguishment | 650 | |||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | (32) | |||
Debt and Equity Securities, Gain (Loss) | (78) | (449) | 341 | |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | (24) | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 63 | 63 | ||
Corporate | BodyArmor | ||||
Other Operating Charges | ||||
Gain (loss) related to BodyArmor transaction | (15) | (44) | ||
North America Segment | ||||
Other Operating Charges | ||||
Business Exit Costs | 273 | 31 | 308 | |
North America Segment | BodyArmor | ||||
Other Operating Charges | ||||
Gain (loss) related to BodyArmor transaction | 21 | |||
North America Segment | Other Operating Income (Expense) | ||||
Other Operating Charges | ||||
Business Exit Costs | (3) | 4 | ||
North America Segment | Nonoperating Income (Expense) [Member] | ||||
Other Operating Charges | ||||
Business Exit Costs | 266 | 266 | ||
Productivity and Reinvestment | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | 27 | 31 | 56 | 71 |
Productivity and Reinvestment | Corporate | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | 27 | 31 | 56 | 71 |
Strategic Realignment | Other Operating Income (Expense) | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | 4 | 126 | ||
Strategic Realignment | Other Income (loss) - net | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | 21 | 104 | ||
Strategic Realignment | Corporate | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | 22 | 129 | ||
Strategic Realignment | North America Segment | ||||
Other Operating Charges | ||||
Productivity, integration and restructuring initiatives | 1 | 14 | ||
fairlife | Corporate | ||||
Other Operating Charges | ||||
Contingent Consideration Liability | $ 32 | $ 12 | $ 971 | 263 |
CCA | ||||
Other Nonoperating Items | ||||
Gain (Loss) on Disposition of Business | 695 | |||
CCA | Corporate | ||||
Other Nonoperating Items | ||||
Gain (Loss) on Disposition of Business | $ 695 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) - Productivity and Reinvestment - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Productivity, Integration and Restructuring Initiatives Disclosures | ||||
Cost incurred | $ 27 | $ 31 | $ 56 | $ 71 |
Restructuring and related costs incurred to date | $ 4,100 | $ 4,100 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Net periodic pension and other Postretirement benefit cost | ||||
Contributions to pension plan | $ 24 | $ 22 | ||
Expected Future Employer Contributions, Next Fiscal Year | $ 5 | 5 | ||
Pension Benefits | ||||
Net periodic pension and other Postretirement benefit cost | ||||
Service cost | 25 | $ 25 | 69 | 74 |
Interest cost | 65 | 46 | 167 | 137 |
Expected return on plan assets | (132) | (152) | (428) | (454) |
Amortization of prior service cost (credit) | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss | 26 | 34 | 84 | 114 |
Net periodic benefit cost (income) | (16) | (47) | (108) | (129) |
Settlement charges | 0 | 21 | 0 | 104 |
Total cost (income) | $ (16) | (26) | $ (108) | (25) |
Weighted-Average Expected Long-term Rate of Return on Plan Assets | 7% | 7% | ||
Other Benefits | ||||
Net periodic pension and other Postretirement benefit cost | ||||
Service cost | $ 2 | 2 | $ 5 | 7 |
Interest cost | 4 | 4 | 13 | 11 |
Expected return on plan assets | (4) | (4) | (12) | (13) |
Amortization of prior service cost (credit) | 0 | (1) | (2) | (2) |
Amortization of net actuarial loss | 0 | 0 | 0 | 1 |
Net periodic benefit cost (income) | 2 | 1 | 4 | 4 |
Settlement charges | 0 | 0 | 0 | 0 |
Total cost (income) | $ 2 | $ 1 | $ 4 | $ 4 |
Weighted-Average Expected Long-term Rate of Return on Plan Assets | 4% | 4% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Income Tax Contingency [Line Items] | ||||
Income taxes | $ 622 | $ 609 | $ 1,671 | $ 2,111 |
Effective tax rate (as a percent) | 18.10% | 19.70% | 18.20% | 22.30% |
U.S. statutory rate (as a percent) | 21% | 21% | 21% | 21% |
Other Tax Expense (Benefit) | $ 75 | $ 251 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | $ 2,012 | $ 2,723 |
Total debt securities | 1,890 | 1,589 |
Derivatives, assets | 183 | 198 |
Total assets | 4,085 | 4,510 |
Contingent Consideration Liability | 1,561 | 590 |
Derivatives, liabilities | 80 | 14 |
Total liabilities | 1,641 | 604 |
Derivative, Collateral, Obligation to Return Cash | $ 331 | |
Derivative, Collateral, Right to Reclaim Cash | $ 1,325 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other noncurrent liabilities | Other noncurrent liabilities |
Netting Adjustment | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | $ 0 | $ 0 |
Total debt securities | 0 | 0 |
Derivatives, assets | (537) | (459) |
Total assets | (537) | (459) |
Contingent Consideration Liability | 0 | 0 |
Derivatives, liabilities | (1,817) | (82) |
Total liabilities | (1,817) | (82) |
Level 1 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 1,719 | 2,372 |
Total debt securities | 0 | 0 |
Derivatives, assets | 72 | 69 |
Total assets | 1,791 | 2,441 |
Contingent Consideration Liability | 0 | 0 |
Derivatives, liabilities | 6 | 0 |
Total liabilities | 6 | 0 |
Level 2 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 185 | 230 |
Total debt securities | 1,881 | 1,556 |
Derivatives, assets | 648 | 588 |
Total assets | 2,714 | 2,374 |
Contingent Consideration Liability | 0 | 0 |
Derivatives, liabilities | 1,891 | 96 |
Total liabilities | 1,891 | 96 |
Level 3 | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Equity Securities, FV-NI | 17 | 17 |
Total debt securities | 9 | 33 |
Derivatives, assets | 0 | 0 |
Total assets | 26 | 50 |
Contingent Consideration Liability | 1,561 | 590 |
Derivatives, liabilities | 0 | 0 |
Total liabilities | 1,561 | 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 | 91 | 104 |
Total debt securities | 0 | 0 |
Derivatives, assets | 0 | 0 |
Total assets | 91 | 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 | 90 | |
Other noncurrent assets | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivatives, assets | $ 93 |
FAIR VALUE MEASUREMENTS - Ass_2
FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Assets and liabilities measured at fair value on a recurring basis | ||||
Business Exit Costs | $ 0 | $ (266) | $ 0 | $ (266) |
Equity Method Investment, Other than Temporary Impairment | 0 | 0 | (96) | 0 |
Asset Impairment Charges | (57) | 0 | (57) | 0 |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 0 | 0 | (24) | 0 |
Nonrecurring gain (loss) fair value adjustment | $ (57) | $ (266) | $ (177) | $ (266) |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |||||
Asset Impairment Charges | $ 57 | $ 0 | $ 57 | $ 0 | |
Business Exit Costs | 0 | 266 | 0 | 266 | |
Equity Method Investment, Other than Temporary Impairment | 0 | 0 | 96 | 0 | |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 0 | $ 0 | (24) | $ 0 | |
Long-term debt, including the current portion, carrying amount | 36,191 | 36,191 | $ 39,454 | ||
Long-term debt, including the current portion, fair value | $ 30,942 | $ 30,942 | $ 40,311 |
OPERATING SEGMENTS - Informatio
OPERATING SEGMENTS - Information about Operating Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | Dec. 31, 2021 | |
Net operating revenues: | |||||
Third Party | $ 11,063 | $ 10,042 | $ 32,879 | $ 29,191 | |
Intersegment | 0 | 0 | 0 | 0 | |
Net Operating Revenues | 11,063 | 10,042 | 32,879 | 29,191 | |
Operating Income (Loss) | 3,088 | 2,898 | 8,834 | 8,636 | |
Income (loss) before income taxes | 3,444 | 3,084 | 9,186 | 9,465 | |
Identifiable operating assets | 74,166 | 71,425 | 74,166 | 71,425 | $ 75,938 |
Noncurrent investments | $ 18,305 | $ 19,181 | $ 18,305 | $ 19,181 | $ 18,416 |
Property, Plant and Equipment, Net Percentage | 16% | 16% | 16% | 16% | 16% |
Property, Plant and Equipment, Net Percentage Philippines | 10% | 10% | 10% | 10% | 10% |
Europe, Middle East & Africa | |||||
Net operating revenues: | |||||
Third Party | $ 1,844 | $ 1,758 | $ 5,523 | $ 5,094 | |
Intersegment | 143 | 157 | 481 | 461 | |
Net Operating Revenues | 1,987 | 1,915 | 6,004 | 5,555 | |
Operating Income (Loss) | 1,046 | 1,028 | 3,344 | 2,990 | |
Income (loss) before income taxes | 1,078 | 1,050 | 3,326 | 3,049 | |
Identifiable operating assets | 7,153 | 8,213 | 7,153 | 8,213 | $ 7,908 |
Noncurrent investments | 433 | 482 | 433 | 482 | 436 |
Latin America Segment | |||||
Net operating revenues: | |||||
Third Party | 1,267 | 1,137 | 3,621 | 3,113 | |
Intersegment | 0 | 0 | 0 | 0 | |
Net Operating Revenues | 1,267 | 1,137 | 3,621 | 3,113 | |
Operating Income (Loss) | 712 | 712 | 2,146 | 1,942 | |
Income (loss) before income taxes | 715 | 716 | 2,152 | 1,952 | |
Identifiable operating assets | 2,072 | 1,839 | 2,072 | 1,839 | 1,720 |
Noncurrent investments | 607 | 606 | 607 | 606 | 594 |
North America Segment | |||||
Net operating revenues: | |||||
Third Party | 4,197 | 3,478 | 11,815 | 9,793 | |
Intersegment | 4 | 1 | 6 | 4 | |
Net Operating Revenues | 4,201 | 3,479 | 11,821 | 9,797 | |
Operating Income (Loss) | 1,082 | 868 | 2,978 | 2,610 | |
Income (loss) before income taxes | 1,090 | 630 | 3,002 | 2,405 | |
Identifiable operating assets | 25,989 | 19,118 | 25,989 | 19,118 | 25,730 |
Noncurrent investments | 19 | 331 | 19 | 331 | 21 |
Asia Pacific | |||||
Net operating revenues: | |||||
Third Party | 1,263 | 1,229 | 3,837 | 3,811 | |
Intersegment | 164 | 145 | 567 | 468 | |
Net Operating Revenues | 1,427 | 1,374 | 4,404 | 4,279 | |
Operating Income (Loss) | 589 | 594 | 2,006 | 2,046 | |
Income (loss) before income taxes | 598 | 604 | 2,025 | 2,078 | |
Identifiable operating assets | 2,347 | 2,254 | 2,347 | 2,254 | 2,355 |
Noncurrent investments | 215 | 238 | 215 | 238 | 230 |
Global Ventures | |||||
Net operating revenues: | |||||
Third Party | 679 | 753 | 2,103 | 2,030 | |
Intersegment | 0 | 0 | 0 | 0 | |
Net Operating Revenues | 679 | 753 | 2,103 | 2,030 | |
Operating Income (Loss) | 67 | 114 | 162 | 215 | |
Income (loss) before income taxes | 69 | 116 | 173 | 221 | |
Identifiable operating assets | 6,741 | 7,784 | 6,741 | 7,784 | 7,949 |
Noncurrent investments | 0 | 2 | 0 | 2 | 0 |
Bottling investments | |||||
Net operating revenues: | |||||
Third Party | 1,784 | 1,663 | 5,903 | 5,292 | |
Intersegment | 2 | 2 | 6 | 7 | |
Net Operating Revenues | 1,786 | 1,665 | 5,909 | 5,299 | |
Operating Income (Loss) | 46 | 81 | 352 | 314 | |
Income (loss) before income taxes | 466 | 462 | 1,312 | 1,201 | |
Identifiable operating assets | 9,384 | 10,213 | 9,384 | 10,213 | 10,312 |
Noncurrent investments | 12,479 | 13,137 | 12,479 | 13,137 | 12,669 |
Corporate | |||||
Net operating revenues: | |||||
Third Party | 29 | 24 | 77 | 58 | |
Intersegment | 0 | 1 | 0 | 1 | |
Net Operating Revenues | 29 | 25 | 77 | 59 | |
Operating Income (Loss) | (454) | (499) | (2,154) | (1,481) | |
Income (loss) before income taxes | (572) | (494) | (2,804) | (1,441) | |
Identifiable operating assets | 20,480 | 22,004 | 20,480 | 22,004 | 19,964 |
Noncurrent investments | 4,552 | 4,385 | 4,552 | 4,385 | 4,466 |
Eliminations | |||||
Net operating revenues: | |||||
Third Party | 0 | 0 | 0 | 0 | |
Intersegment | (313) | (306) | (1,060) | (941) | |
Net Operating Revenues | (313) | (306) | (1,060) | (941) | |
Operating Income (Loss) | 0 | 0 | 0 | 0 | |
Income (loss) before income taxes | 0 | 0 | 0 | 0 | |
Identifiable operating assets | 0 | 0 | 0 | 0 | 0 |
Noncurrent investments | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
OPERATING SEGMENTS - Narrative
OPERATING SEGMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Oct. 01, 2021 | Sep. 30, 2022 | Oct. 01, 2021 | |
Segment Reporting Information [Line Items] | ||||
Business Exit Costs | $ 0 | $ 266 | $ 0 | $ 266 |
Equity Method Investment, Other than Temporary Impairment | 0 | 0 | 96 | 0 |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 14 | (18) | 44 | 5 |
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | 0 | 0 | (24) | 0 |
Tax litigation expense | 1 | 14 | ||
Equity Method Investment, Realized Gain (Loss) on Disposal | 13 | 63 | ||
Asset Impairment Charges | 57 | 0 | 57 | 0 |
Productivity and Reinvestment | ||||
Segment Reporting Information [Line Items] | ||||
Productivity, integration and restructuring initiatives | 27 | 31 | 56 | 71 |
CCA | ||||
Segment Reporting Information [Line Items] | ||||
Gain (Loss) on Disposition of Business | 695 | |||
BodyArmor | ||||
Segment Reporting Information [Line Items] | ||||
Gain (loss) related to BodyArmor transaction | (15) | (23) | ||
Europe, Middle East & Africa | ||||
Segment Reporting Information [Line Items] | ||||
Equity Method Investment, Other than Temporary Impairment | 96 | |||
Europe, Middle East & Africa | Strategic Realignment | ||||
Segment Reporting Information [Line Items] | ||||
Productivity, integration and restructuring initiatives | 2 | 63 | ||
Latin America Segment | Strategic Realignment | ||||
Segment Reporting Information [Line Items] | ||||
Productivity, integration and restructuring initiatives | 11 | |||
North America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Business Exit Costs | 273 | 31 | 308 | |
North America Segment | Operating Income (Loss) | ||||
Segment Reporting Information [Line Items] | ||||
Business Exit Costs | 8 | 7 | 30 | 42 |
North America Segment | Strategic Realignment | ||||
Segment Reporting Information [Line Items] | ||||
Productivity, integration and restructuring initiatives | 1 | 14 | ||
North America Segment | BodyArmor | ||||
Segment Reporting Information [Line Items] | ||||
Gain (loss) related to BodyArmor transaction | 21 | |||
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Asset Impairment Charges | 57 | 57 | ||
Asia Pacific | Strategic Realignment | ||||
Segment Reporting Information [Line Items] | ||||
Productivity, integration and restructuring initiatives | 13 | |||
Bottling investments | ||||
Segment Reporting Information [Line Items] | ||||
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | 14 | 18 | 44 | 37 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Debt and Equity Securities, Gain (Loss) | (78) | (449) | 341 | |
Our proportionate share of unusual or infrequent items charge/(gain) recorded by equity method investees | (32) | |||
Gain (Loss) on Sale of Previously Unissued Stock by Equity Investee | (24) | |||
Tax litigation expense | 14 | |||
Charges related to debt extinguishment | 650 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | 63 | 63 | ||
Corporate | Strategic Realignment | ||||
Segment Reporting Information [Line Items] | ||||
Productivity, integration and restructuring initiatives | 22 | 129 | ||
Corporate | Strategic Realignment | Operating Income (Loss) | ||||
Segment Reporting Information [Line Items] | ||||
Productivity, integration and restructuring initiatives | 1 | 25 | ||
Corporate | Productivity and Reinvestment | ||||
Segment Reporting Information [Line Items] | ||||
Productivity, integration and restructuring initiatives | 27 | 31 | 56 | 71 |
Corporate | fairlife | ||||
Segment Reporting Information [Line Items] | ||||
Contingent Consideration Liability | 32 | $ 12 | 971 | 263 |
Corporate | CCA | ||||
Segment Reporting Information [Line Items] | ||||
Gain (Loss) on Disposition of Business | $ 695 | |||
Corporate | BodyArmor | ||||
Segment Reporting Information [Line Items] | ||||
Gain (loss) related to BodyArmor transaction | $ (15) | $ (44) |