The Coca-Cola Company (KO) 10-Q 30 Jul 09 2009 Q2 Quarterly report Financial data

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (USD $)
In Millions	3 Months Ended Jul. 03, 2009		3 Months Ended Jun. 27, 2008		6 Months Ended Jul. 03, 2009		6 Months Ended Jun. 27, 2008
Condensed Consolidated Statements of Income
NET OPERATING REVENUES	$8,267		$9,046		$15,436		$16,425
Cost of goods sold	2,913		3,162		5,503		5,786
GROSS PROFIT	5,354		5,884		9,933		10,639
Selling, general and administrative expenses	2,844		3,095		5,468		5,891
Other operating charges	72		110		164		195
OPERATING INCOME	2,438		2,679		4,301		4,553
Interest income	57		69		117		134
Interest expense	97		89		182		206
Equity income (loss) - net	310		(843)		327		(706)
Other income (loss) - net	20		101		(20)		101
INCOME BEFORE INCOME TAXES	2,728		1,917		4,543		3,876
Income taxes	679		474		1,135		922
CONSOLIDATED NET INCOME	2,049		1,443		3,408		2,954
Less: Net income attributable to noncontrolling interests	12		21		23		32
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY	$2,037		$1,422		$3,385		$2,922
BASIC NET INCOME PER SHARE (in dollars per share)	0.88	[1]	0.61	[1]	1.46	[1]	1.26	[1]
DILUTED NET INCOME PER SHARE (in dollars per share)	0.88	[1]	0.61	[1]	1.46	[1]	1.24	[1]
DIVIDENDS PER SHARE (in dollars per share)	0.41		0.38		0.82		0.76
AVERAGE SHARES OUTSTANDING (in shares)	2,313		2,316		2,313		2,319
Effect of dilutive securities (in shares)	10		27		6		30
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares)	2,323		2,343		2,319		2,349
[1]Basic net income per share and diluted net income per share are calculated based on net income attributable to shareowners of The Coca-Cola Company.

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Millions	Jul. 03, 2009	Dec. 31, 2008
CURRENT ASSETS
Cash and cash equivalents	$7,647	$4,701
Marketable securities	298	278
Trade accounts receivable, less allowances of $58 and $51, respectively	3,746	3,090
Inventories	2,483	2,187
Prepaid expenses and other assets	2,198	1,920
TOTAL CURRENT ASSETS	16,372	12,176
EQUITY METHOD INVESTMENTS	5,804	5,316
OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES	488	463
OTHER ASSETS	1,859	1,733
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation of $6,570 and $6,074, respectively	8,904	8,326
TRADEMARKS WITH INDEFINITE LIVES	6,143	6,059
GOODWILL	4,092	4,029
OTHER INTANGIBLE ASSETS	2,392	2,417
TOTAL ASSETS	46,054	40,519
CURRENT LIABILITIES
Accounts payable and accrued expenses	6,356	6,205
Loans and notes payable	6,382	6,066
Current maturities of long-term debt	49	465
Accrued income taxes	780	252
TOTAL CURRENT LIABILITIES	13,567	12,988
LONG-TERM DEBT	5,017	2,781
OTHER LIABILITIES	3,051	3,011
DEFERRED INCOME TAXES	902	877
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY
Common stock, $0.25 par value; Authorized - 5,600 shares; Issued - 3,520 and 3,519 shares, respectively	880	880
Capital surplus	8,111	7,966
Reinvested earnings	39,999	38,513
Accumulated other comprehensive income (loss)	(1,740)	(2,674)
Treasury stock, at cost - 1,205 and 1,207 shares, respectively	(24,174)	(24,213)
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY	23,076	20,472
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS	441	390
TOTAL EQUITY	23,517	20,862
TOTAL LIABILITIES AND EQUITY	$46,054	$40,519

Balance Sheets Parenthetical Di

Balance Sheets Parenthetical Disclosures (USD $)
In Millions	Jul. 03, 2009	Dec. 31, 2008
Condensed Consolidated Balance Sheets
Trade accounts receivable, allowance for doubtful accounts	$58	$51
PROPERTY, PLANT AND EQUIPMENT, accumulated depreciation	$6,570	$6,074
Common stock, par value (in dollars per share)	0.25	0.25
Common stock, shares authorized (in shares)	5,600	5,600
Common stock, shares issued (in shares)	3,520	3,519
Treasury stock, shares (in shares)	1,205	1,207

1_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (USD $)
In Millions	6 Months Ended Jul. 03, 2009	6 Months Ended Jun. 27, 2008
OPERATING ACTIVITIES
Consolidated net income	$3,408	$2,954
Depreciation and amortization	585	637
Stock-based compensation expense	107	152
Deferred income taxes	(83)	(222)
Equity income or loss, net of dividends	(191)	856
Foreign currency adjustments	1	(43)
Gains on sales of assets, including bottling interests	(15)	(111)
Other operating charges	106	159
Other items	141	34
Net change in operating assets and liabilities	(397)	(1,198)
Net cash provided by operating activities	3,662	3,218
INVESTING ACTIVITIES
Acquisitions and investments, principally beverage and bottling companies and trademarks	(248)	(621)
Purchases of other investments	(17)	(140)
Proceeds from disposals of bottling companies and other investments	45	387
Purchases of property, plant and equipment	(980)	(896)
Proceeds from disposals of property, plant and equipment	32	46
Other investing activities	4	(10)
Net cash used in investing activities	(1,164)	(1,234)
FINANCING ACTIVITIES
Issuances of debt	8,058	4,317
Payments of debt	(6,087)	(2,478)
Issuances of stock	74	459
Purchases of stock for treasury	(4)	(1,031)
Dividends	(1,899)	(884)
Net cash provided by financing activities	142	383
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	306	111
CASH AND CASH EQUIVALENTS
Net increase during the period	2,946	2,478
Balance at beginning of period	4,701	4,093
Balance at end of period	$7,647	$6,571

Summary of Significant Accounti

Summary of Significant Accounting Policies
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Summary of Significant Accounting Policies	Note A Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Quarterly Report on Form10-Q and Rule10-01 of RegulationS-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to consolidated financial statements included in the Annual Report on Form10-K of The Coca-Cola Company for the year ended December31, 2008. When used in these notes, the terms "Company," "we," "us" or "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 six months ended July3, 2009, are not necessarily indicative of the results that may be expected for the year ending December31, 2009. Sales of our ready-to-drink nonalcoholic beverages are somewhat seasonal, with the second and third calendar quarters accounting for the highest sales volumes. The volume of sales in the beverage business may be affected by weather conditions. Each of our interim reporting periods, other than the fourth interim reporting period, ends on the Friday closest to the last day of the corresponding quarterly calendar period. The first quarter of 2009 had five additional days compared to the first quarter of 2008. However, the reporting period for the three months ended July3, 2009, had the same number of days compared to the three months ended June27, 2008. Consequently, the reporting period for the six months ended July3, 2009, had five additional days compared to the six months ended June27, 2008. Our fourth interim reporting period and our fiscal year end on December31 regardless of the day of the week on which December31 falls. Subsequent Events The Company evaluated subsequent events through the time of filing this Quarterly Report on Form10-Q on July30, 2009. We are not aware of any significant events that occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on our Condensed Consolidated Financial Statements. Recent Accounting Standards and Pronouncements In June 2009, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No.167, "Amendments to FASB Interpretation No.46(R)." SFAS No.167, among other things, requires a qualitative rather than a quantitative analysis to determine the primary beneficiary of a variable interest entity ("VIE"); requires continuous assessments of whether an enterprise is the primary beneficiary of a VIE; enhances disclosures about an enterprise's involvement with a VIE; and amends certain guidance for determining whether an entity is a VIE. SFAS No.167 w

Inventories

Inventories
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Inventories	Note B Inventories The following table summarizes our inventory balances (in millions): July3, 2009 December31, 2008 Raw materials and packaging $1,375 $1,191 Finished goods 778 706 Other 330 290 Total inventories $2,483 $2,187

Commitments and Contingencies

Commitments and Contingencies
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Commitments and Contingencies	Note C Commitments and Contingencies As of July3, 2009, we were contingently liable for guarantees of indebtedness owed by third parties in the amount of approximately $247million. These guarantees primarily are 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 was individually significant. The amount represents the maximum potential future payments that we could be required to make under the guarantees; however, we do not consider it probable that we will be required to satisfy these guarantees. On September3, 2008, we announced our intention to make cash offers to purchase China Huiyuan Juice Group Limited, a Hong Kong listed company which owns the Huiyuan juice business throughout China ("Huiyuan"). The Company had accepted irrevocable undertakings from three shareholders for acceptance of the offers, in aggregate representing approximately 66percent of the Huiyuan shares. The making of the offers was subject to preconditions relating to Chinese regulatory approvals. On March18, 2009, the Chinese Ministry of Commerce declined approval for the Company's proposed purchase of Huiyuan. Consequently, the Company was unable to proceed with the proposed cash offers, and the irrevocable undertakings terminated. We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations. 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 any liability to the Company that may arise as a result of currently pending legal proceedings will not have a material adverse effect on the financial condition of the Company taken as a whole. During the period from 1970 to 1981, our Company owned Aqua-Chem,Inc., now known as Cleaver-Brooks,Inc. ("Aqua-Chem"). A division of Aqua-Chem manufactured certain boilers that contained gaskets that Aqua-Chem purchased from outside suppliers. Several years after our Company sold this entity, Aqua-Chem received its first lawsuit relating to asbestos, a component of some of the gaskets. In September 2002, Aqua-Chem notified our Company that it believed we were obligated for certain costs and expenses associated with its asbestos litigations. Aqua-Chem demanded that our Company reimburse it for approximately $10million for out-of-pocket litigation-related expenses. Aqua-Chem also demanded that the Company acknowledge a continuing obligation to Aqua-Chem for any future liabilities and expenses that are excluded from coverage under the applicable insurance or for which there is no insurance. Our Company disputes Aqua-Chem's claims, and we believe we have no obligation to Aqua-Chem for any of its past, present or future liabilities, costs or expe

Comprehensive Income

Comprehensive Income
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Comprehensive Income	Note D Comprehensive Income The following table provides a summary of total comprehensive income, including our proportionate share of equity method investees' accumulated other comprehensive income (loss) ("AOCI"), for the applicable periods (in millions): Three Months Ended Six Months Ended July3, 2009 June27, 2008 July3, 2009 June27, 2008 Consolidated net income $2,049 $1,443 $3,408 $2,954 Other comprehensive income ("OCI"): Net foreign currency translation gain (loss) 1,194 152 899 816 Net gain (loss) on derivatives (48 ) 37 21 (92 ) Net change in unrealized gain on available-for-sale securities 49 (22 ) 60 (23 ) Net change in pension liability (5 ) (14 ) (13 ) 25 Total comprehensive income $3,239 $1,596 $4,375 $3,680 The following table summarizes the allocation of total comprehensive income, including our proportionate share of equity method investees' AOCI, between shareowners of The Coca-Cola Company and the noncontrolling interests (in millions): Six Months Ended July3, 2009 Shareowners of The Coca-Cola Company Noncontrolling Interests Total Consolidated net income $3,385 $23 $3,408 Other comprehensive income: Net foreign currency translation gain (loss) 866 33 899 Net gain (loss) on derivatives 21 21 Net change in unrealized gain on available-for-sale securities 60 60 Net change in pension liability (13 ) (13 ) Total comprehensive income $4,319 $56 $4,375

Changes in Equity

Changes in Equity
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Changes in Equity	Note E Changes in Equity The following table provides a reconciliation of the beginning and the ending carrying amounts of total equity, equity attributable to shareowners of The Coca-Cola Company and equity attributable to the noncontrolling interests (in millions): Shareowners of The Coca-Cola Company Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non- controlling Interests January1, 2009 $20,862 $38,513 $(2,674 ) $880 $7,966 $(24,213 ) $390 Comprehensive income (loss)1 4,375 3,385 934 56 Dividends paid to shareowners of TheCoca-Cola Company (1,899 ) (1,899 ) Dividends paid to noncontrolling interests (9 ) (9 ) Contributions by noncontrolling interests 4 4 Impact of employee stock option and restricted stock plans 184 145 39 July3, 2009 $23,517 $39,999 $(1,740 ) $880 $8,111 $(24,174 ) $441 1The allocation of the individual components of comprehensive income attributable to shareowners of The Coca-Cola Company and the noncontrolling interests is disclosed in NoteD.

Financial Instruments

Financial Instruments
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Financial Instruments	NoteF Financial Instruments Certain Debt and Marketable Equity Securities Investments in debt and marketable equity securities, other than investments accounted for by the equity method, are categorized as trading, available-for-sale or held-to-maturity. Our marketable equity investments are categorized as trading or available-for-sale with their cost basis determined by the specific identification method. Realized and unrealized gains and losses on trading securities and realized gains and losses on available-for-sale securities are included in net income. Unrealized gains and losses, net of deferred taxes, on available-for-sale securities are included in our consolidated balance sheets as a component of AOCI. Debt securities categorized as held-to-maturity are stated at amortized cost. As of July3, 2009, and December31, 2008, our trading securities had a fair value of approximately $46million and $49million, respectively. Trading securities are carried at fair value in the line item marketable securities in our consolidated balance sheets. The Company had net unrealized gains on trading securities of approximately $5million and $2million for the three and six months ended July3, 2009, respectively. The Company had net unrealized losses on trading securities of approximately $3million and $8million for the three and six months ended June27, 2008, respectively. As of July3, 2009, available-for-sale and held-to-maturity securities consisted of the following (in millions): Gross Unrealized Estimated Cost Gains Losses Fair Value Available-for-sale securities:1 Equity securities $328 $268 $(6 ) $590 Other securities 12 (4 ) 8 $340 $268 $(10 ) $598 Held-to-maturity securities: Bank and corporate debt $210 $ $ $210 1The fair value of available-for-sale securities included in the table above was determined in accordance with SFASNo.157. Refer to NoteH. As of December31, 2008, available-for-sale and held-to-maturity securities consisted of the following (in millions): Gross Unrealized Estimated Cost Gains Losses Fair Value Available-for-sale securities:1 Equity securities $329 $193 $(7) $515 Other securities 12 (5) 7 $341 $193 $(12) $522 Held-to-maturity securities: Bank and corporate debt $74 $ $ $74 1The fair value of available-for-sale securities included in the table above was determined in accordance with SFASNo.157. Refer to NoteH. The Company's available-for-sale and held-to-maturity securities were included in the following captions in our consolidated balance sheets (in millions): July3, 2009 December31, 2008 Available- for-Sale Securities Held-to- Maturity Securities Available- for-Sale Securities Held-to- Maturity Securities Cash and cash equivalents $ $209 $ $73 Marketable securities 250 1 228 1 Other investments, principally bottling companies 340 287 Other assets 8 7 $598 $210 $522

Hedging Transactions and Deriva

Hedging Transactions and Derivative Financial Instruments
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Hedging Transactions and Derivative Financial Instruments	Note G Hedging Transactions and Derivative Financial Instruments The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company's financial performance and are referred to as market risks. Our Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. The Company accounts for derivative financial instruments in accordance with SFAS No.133, "Accounting for Derivative Instruments and Hedging Activities"; SFAS No.138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities an amendment of FASB Statement No.133"; and SFAS No.149, "Amendment of Statement 133 on Derivative Instruments and Hedging Activities." The Company uses various types of derivative instruments including, but not limited to, forward contracts, commodity futures contracts, option contracts, collars and swaps. Forward contracts and commodity futures contracts are agreements to buy or sell a quantity of a currency or commodity at a predetermined future date, and at a predetermined rate or price. An option contract is an agreement that conveys the purchaser the right, but not the obligation, to buy or sell a quantity of a currency or commodity at a predetermined rate or price during a period or at a time in the future. A collar is a strategy that uses a combination of options to limit the range of possible positive or negative returns on an underlying asset or liability to a specific range, or to protect expected future cash flows. To do this, an investor simultaneously buys a put option and sells (writes) a call option. A swap agreement is a contract between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. We do not enter into derivative financial instruments for trading purposes. All derivatives are carried at fair value in the consolidated balance sheets in the line items prepaid expenses and other assets or accounts payable and accrued expenses, as applicable. The carrying values of the derivatives reflect the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterparties. These master netting agreements allow the Company to net settle positive and negative positions (assets and liabilities) arising from different transactions with the same counterparty. The accounting for gains and losses that result from changes in the fair values of derivative instruments depends on whether the derivatives have been designated and qualify as hedging instruments in accordance with the accounting provisions of SFAS No.133 and the type of hedging relationships. Derivatives can be designated as fair value hedges, cash flow hedges or hedges of net investments in foreign operations. The Company does not typically designate derivatives as fair value hedges. The change in fair values of derivatives that have

Fair Value Measurements

Fair Value Measurements
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Fair Value Measurements	Note H Fair Value Measurements SFAS No.157 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. SFAS No.157 established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level1 Quoted prices in active markets for identical assets or liabilities. Level2 Observable inputs other than quoted prices included in Level1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company has certain assets and liabilities that are required to be recorded at fair value on a recurring basis in accordance with accounting principles generally accepted in the United States. For our Company, the only assets and liabilities that are adjusted to fair value on a recurring basis are investments in equity and debt securities classified as trading or available-for-sale and derivative instruments. The following tables summarize those assets and liabilities measured at fair value on a recurring basis as of July3, 2009, and December31, 2008 (in millions): July3, 2009 Level1 Level2 Level3 Netting Adjustment 1 Fair Value Measurements Assets Trading securities $40 $3 $3 $ $46 Available-for-sale securities 593 5 598 Derivatives 4 77 (58 ) 23 Total assets $637 $85 $3 $(58 ) $667 Liabilities Derivatives $2 $47 $20 $(65 ) $4 Total liabilities $2 $47 $20 $(65 ) $4 1Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. Refer to NoteG. December31, 2008 Level1 Level2 Level3 Netting Adjustment 1 Fair Value Measurements Assets Trading securities $39 $4 $6 $ $49 Available-for-sale securities 518 4 522 Derivatives 5 108 (108 ) 5 Total assets $562 $116 $6 $(108 ) $576 Liabilities Derivatives $6 $288 $34 $(117 ) $211 Total liabilities $6 $288 $34 $(117 ) $211 1Amounts represent the impact of legally enforceable master netting a

Long-Term Debt

Long-Term Debt
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Long-Term Debt	Note I Long-Term Debt In the first quarter of 2009, the Company replaced a certain amount of commercial paper and short-term debt with longer-term debt. The Company issued long-term notes in the principal amounts of $900million at a rate of 3.625percent and $1,350million at a rate of 4.875percent due March15, 2014, and March15, 2019, respectively.

Pension and Other Postretiremen

Pension and Other Postretirement Benefit Plans
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Pension and Other Postretirement Benefit Plans	Note J Pension and Other Postretirement Benefit Plans Net periodic benefit cost for our pension and other postretirement benefit plans consisted of the following (in millions): Pension Benefits Other Benefits Three Months Ended July3, 2009 June27, 2008 July3, 2009 June27, 2008 Service cost $27 $30 $5 $5 Interest cost 55 53 6 7 Expected return on plan assets (54 ) (64 ) (2 ) (5 ) Amortization of prior service cost (credit) 2 3 (15 ) (16 ) Amortization of net actuarial loss 19 2 Net periodic benefit cost (credit) $49 $24 $(6 ) $(9 ) Pension Benefits Other Benefits Six Months Ended July3, 2009 June27, 2008 July3, 2009 June27, 2008 Service cost $54 $60 $10 $10 Interest cost 107 106 13 13 Expected return on plan assets (106 ) (128 ) (4 ) (10 ) Amortization of prior service cost (credit) 3 5 (30 ) (31 ) Amortization of net actuarial loss 39 5 Net periodic benefit cost (credit) $97 $48 $(11 ) $(18 ) The primary U.S. defined benefit pension plan was amended effective December31, 2008. The plan will now have a two-part formula to determine pension benefits. The first part will retain the current final average pay structure, where service will freeze as of January1, 2010, with pay escalating for the lesser of 10years or until termination. The second part of the formula will be a cash balance account which will commence January1, 2010, under which employees will receive credits based on age, service, pay and interest. The plan was also modified to allow lump sum distributions. These changes, as well as related changes to other U.S. plans, reduced pension obligations as of December31, 2008, by approximately $21million. In addition, the U.S. retiree medical plan was amended to close the plan to new hires effective January1, 2009. We contributed approximately $239million to our pension plans during the six months ended July3, 2009, of which approximately $175million was allocated to our primary U.S. plan. We anticipate making additional contributions of approximately $30million to our pension plans during the remainder of 2009. We contributed approximately $27million to our pension plans during the six months ended June27, 2008.

Significant Operating and Nonop

Significant Operating and Nonoperating Items
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Significant Operating and Nonoperating Items	Note K Significant Operating and Nonoperating Items Other Operating Charges In the second quarter of 2009, the Company incurred other operating charges of approximately $72million, which consisted of $39million related to restructuring charges, $17million due to an asset impairment and $16million attributable to the Company's ongoing productivity initiatives. Refer to NoteM for additional information on the restructuring charges and productivity initiatives. The asset impairment charge of approximately $17million was due to a change in disposal strategy related to a building that is no longer occupied. The Company had originally intended to sell the building along with the related land. However, we have determined that the maximum potential sales proceeds would likely be realized through the sale of vacant land. As a result, the building will be removed. The land is not considered held-for-sale, primarily due to the fact that it is not probable a sale would be completed within one year. Refer to NoteH. These charges impacted the Eurasia and Africa, Europe, North America, Bottling Investments and Corporate operating segments. Refer to NoteO for additional information on the impact these charges had on our operating segments. During the first quarter of 2009, the Company incurred other operating charges of approximately $92million, which consisted of $52million related to restructuring charges, $23million due to an asset impairment and $17million attributable to productivity initiatives. Refer to NoteM for additional information on the restructuring charges and productivity initiatives. The impairment charge was the result of a change in the expected useful life of an intangible asset, which was previously determined to have an indefinite life. Refer to NoteH. These charges impacted the North America, Bottling Investments and Corporate operating segments. Refer to NoteO for additional information on the impact these charges had on our operating segments. In the second quarter of 2008, our Company recorded other operating charges of approximately $110million, consisting of $54million related to restructuring activities, $44million related to contract termination costs, $9million attributable to productivity initiatives and $3million related to asset impairments. Refer to NoteM for additional information on the restructuring charges and productivity initiatives. The contract termination charge was related to fees paid by the Company to terminate an existing supply agreement. These charges impacted the North America, Bottling Investments and Corporate operating segments. Refer to NoteO for additional information on the impact these charges had on our operating segments. During the first quarter of 2008, the Company recorded other operating charges of approximately $85million, which consisted of $54million in restructuring charges, $28million due to asset impairments and $3million attributable to productivity initiatives. Refer to NoteM for additional information on the restructuring charges and productivity initiatives. The asset impairments were primarily related to the write-down of manufacturing lines that produce product p

Income Taxes

Income Taxes
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Income Taxes	Note L Income Taxes Our effective tax rate reflects the tax benefits from having significant operations outside the United States, which are taxed at rates lower than the U.S. statutory rate of 35percent. Our effective tax rate for the second quarter of 2009 included the impact of an approximate 14percent combined effective tax rate on restructuring costs, an asset impairment charge and productivity initiatives; an approximate 20percent combined effective tax rate on our proportionate share of restructuring charges recorded by certain of our equity method investees; and an approximate $33million net tax charge related to amounts required to be recorded for changes to our uncertain tax positions under FASB Interpretation No.48, "Accounting for Uncertainty in Income Taxes" ("Interpretation No.48"), including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. In addition to the items impacting the second quarter of 2009 noted above, our effective tax rate for the six months ended July3, 2009, included the impact of an approximate 10percent combined effective tax rate on restructuring costs, an asset impairment charge and productivity initiatives; a zero percent effective tax rate on an other-than-temporary impairment charge; an approximate 25percent combined effective tax rate on our proportionate share of restructuring and impairment charges recorded by our equity method investees; an approximate $15million tax expense, primarily related to valuation allowances recorded on deferred tax assets; and an approximate $1million net tax benefit related to amounts required to be recorded for changes to our uncertain tax positions under Interpretation No.48, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. Our effective tax rate for the second quarter of 2008 included the impact of an approximate 22percent combined effective tax rate on restructuring charges, contract termination costs, productivity initiatives and asset impairments; an approximate 20percent combined effective tax rate on impairment and restructuring charges recorded by CCE; an approximate 31percent combined effective tax rate on gains from divestitures; and an approximate $29million net tax charge related to amounts required to be recorded for changes to our uncertain tax positions under Interpretation No.48, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. In addition to the items impacting the second quarter of 2008 noted above, our effective tax rate for the six months ended June27, 2008, included the impact of an approximate 18percent combined effective tax rate on restructuring costs, asset impairments and productivity initiatives; the impact of a net tax charge of approximately $14million related to our proportionate share of a tax benefit, restructuring charges and asset impairments recorded by our equity method investees; and an approximate $2million net tax charge related to amounts required to be recorded for changes to our uncertain tax po

Restructuring Costs

Restructuring Costs
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Restructuring Costs	Note M Restructuring Costs Productivity Initiatives During 2008, the Company announced a transformation effort centered on productivity initiatives that will provide additional flexibility to invest for growth. The initiatives are expected to impact a number of areas and include aggressively managing operating expenses supported by lean techniques; redesigning key processes to drive standardization and effectiveness; better leveraging our size and scale; and driving savings in indirect costs through the implementation of a "procure-to-pay" program. The Company has incurred total pretax expenses of approximately $88million related to these productivity initiatives since they commenced in the first quarter of 2008, which were recorded in the line item other operating charges in our consolidated statements of income and impacted the Europe and Corporate operating segments. Other direct costs included both internal and external costs associated with the development, communication, administration and implementation of these initiatives. The Company currently expects the total cost of these initiatives to be approximately $500million and anticipates recognizing the remainder of the costs by the end of 2011. The table below summarizes the balance of accrued expenses related to productivity initiatives and the changes in the accrued amounts as of and for the quarter ended July3, 2009 (in millions): Accrued Balance April3, 2009 Costs Incurred Three Months Ended July3, 2009 Payments Noncash and Exchange Accrued Balance July3, 2009 Severance pay and benefits $9 $4 $(7 ) $ $6 Outside services legal, outplacement, consulting 4 9 (9 ) 4 Other direct costs 3 (3 ) Total $13 $16 $(19 ) $ $10 The table below summarizes the balance of accrued expenses related to productivity initiatives and the changes in the accrued amounts as of and for the six months ended July3, 2009 (in millions): Accrued Balance December31, 2008 Costs Incurred Six Months Ended July3, 2009 Payments Noncash and Exchange Accrued Balance July3, 2009 Severance pay and benefits $14 $10 $(18 ) $ $6 Outside services legal, outplacement, consulting 3 17 (16 ) 4 Other direct costs 6 (6 ) Total $17 $33 $(40 ) $ $10 Streamlining Initiatives During 2007, the Company took steps to streamline and simplify its operations globally. In North America, the Company reorganized its operations around three main business units: Sparkling Beverages, Still Beverages and Emerging Brands. In Ireland, the Company announced a plan to close its beverage concentrate manufacturing and distribution plant in Drogheda, which was closed during the third quarter of 2008. The plant closure is expected to improve operating productivity and enhance capacity utilization. The costs associated with this plant closure are included in the Corporate operating segment. Selected other operations also took steps to streamline their operations to improve overall efficiency and effectiveness. Employees separated, or to be separated, f

Acquisitions and Investments

Acquisitions and Investments
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Acquisitions and Investments	Note N Acquisitions and Investments During the six months ended July3, 2009, our Company's acquisition and investment activities totaled approximately $248million. None of the acquisitions or investments was individually significant. Included in these investment activities was the acquisition of a minority interest in Fresh TradingLtd. Additionally, the Company and the existing shareowners of Fresh TradingLtd. entered into a series of put and call options for the Company to potentially acquire some or all of the remaining shares not already owned by the Company. The put and call options are exercisable in stages between 2010 and 2014. During the six months ended June27, 2008, our Company's acquisition and investment activities totaled approximately $621million. Included in these investment activities was the acquisition of brands and licenses in Denmark and Finland from Carlsberg Group Beverages ("Carlsberg") for approximately $225million. None of the other acquisitions or investments was individually significant.

Operating Segments

Operating Segments
	6 Months Ended Jul. 03, 2009
Notes to Condensed Consolidated Financial Statements
Operating Segments	Note O Operating Segments Information about our Company's operations as of and for the three months ended July3, 2009, and June27, 2008, by operating segment, is as follows (in millions): Eurasia Africa Europe Latin America North America Pacific Bottling Investments Corporate Eliminations Consolidated 2009 Net operating revenues: Third party $546 $1,211 $861 $2,173 $1,235 $2,206 $35 $ $8,267 Intersegment 69 242 37 37 87 36 (508 ) Total net revenues 615 1,453 898 2,210 1,322 2,242 35 (508 ) 8,267 Operating income (loss) 243 1 861 1 472 455 1 594 122 1 (309 )1 2,438 Income (loss) before income taxes 253 1 880 1 470 461 1 587 420 1,2 (343 )1 2,728 Identifiable operating assets 1,083 2,913 2,045 11,517 1,596 8,662 11,946 39,762 Investments 330 228 226 2 74 5,368 64 6,292 2008 Net operating revenues: Third party $601 $1,444 $897 $2,240 $1,227 $2,608 $29 $ $9,046 Intersegment 66 299 63 16 97 93 (634 ) Total net revenues 667 1,743 960 2,256 1,324 2,701 29 (634 ) 9,046 Operating income (loss) 269 1,016 531 457 3 604 156 3 (354 )3 2,679 Income (loss) before income taxes 274 1,027 537 460 3 599 (694 )3,4,5 (286 )3,5 1,917 Identifiable operating assets 1,056 3,568 2,040 11,300 1,547 9,513 11,340 40,364 Investments 434 174 262 16 72 6,347 62 7,367 As of December31, 2008 Identifiable operating assets $956 $3,012 $1,849 $10,845 $1,444 $7,935 $8,699 $ $34,740 Investments 395 179 199 4 72 4,873 57 5,779 Certain prior year amounts have been reclassified to conform to the current year presentation. 1Operating income (loss) and income (loss) before income taxes for the three months ended July3, 2009, were reduced by approximately $3million for Eurasia and Africa, $1million for Europe, $8million for North America, $26million for Bottling Investments and $34million for Corporate, primarily as a result of restructuring costs, an asset impairment and productivity initiatives. 2Income (loss) before income taxes for the three months ended July3, 2009, was reduced by approximately $10million for Bottling Investments, primarily attributable to our proportionate share of restructuring costs recorded by certain of our equity method investees. 3Operating income (loss) and income (loss) before income taxes for the three months ended June27, 2008, were reduced by approximately $4million for North America, $9million for Bottling Investments and $97million for Corporate, primarily attributable to restructuring costs, contract termination fees, asset impairments and productivity initiatives. 4Income (loss) before income taxes for the three months ended June27, 2008, was reduced by approximat

Document and Entity Information

Document and Entity Information (USD $)
	6 Months Ended Jul. 03, 2009	Jul. 24, 2009	Jun. 27, 2008
Document and Entity Information
Document Type	10-Q
Document Period End Date	2009-07-03
Amendment Flag	false
Entity Registrant Name	The Coca-Cola Company
Entity Central Index Key	0000021344
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding		2,317,441,658
Entity Public Float			$113,780,250,547