The Coca-Cola Company (KO) 10-Q 29 Apr 10 2010 Q1 Quarterly report Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data	3 Months Ended Apr. 02, 2010		3 Months Ended Apr. 03, 2009
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
NET OPERATING REVENUES	$7,525		$7,169
Cost of goods sold	2,541		2,590
GROSS PROFIT	4,984		4,579
Selling, general and administrative expenses	2,705		2,624
Other operating charges	96		92
OPERATING INCOME	2,183		1,863
Interest income	60		60
Interest expense	85		85
Equity income (loss) - net	136		17
Other income (loss) - net	(115)		(40)
INCOME BEFORE INCOME TAXES	2,179		1,815
Income taxes	553		456
CONSOLIDATED NET INCOME	1,626		1,359
Less: Net income attributable to noncontrolling interests	12		11
NET INCOME ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY	$1,614		$1,348
BASIC NET INCOME PER SHARE (in dollars per share)	0.7	[1]	0.58	[1]
DILUTED NET INCOME PER SHARE (in dollars per share)	0.69	[1]	0.58	[1]
DIVIDENDS PER SHARE (in dollars per share)	0.44		0.41
AVERAGE SHARES OUTSTANDING (in shares)	2,304		2,313
Effect of dilutive securities (in shares)	23		6
AVERAGE SHARES OUTSTANDING ASSUMING DILUTION (in shares)	2,327		2,319
[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	Apr. 02, 2010	Dec. 31, 2009
CURRENT ASSETS
Cash and cash equivalents	$5,684	$7,021
Short-term investments	3,038	2,130
TOTAL CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS	8,722	9,151
Marketable securities	72	62
Trade accounts receivable, less allowances of $44 and $55, respectively	3,705	3,758
Inventories	2,327	2,354
Prepaid expenses and other assets	2,382	2,226
TOTAL CURRENT ASSETS	17,208	17,551
EQUITY METHOD INVESTMENTS	6,230	6,217
OTHER INVESTMENTS, PRINCIPALLY BOTTLING COMPANIES	519	538
OTHER ASSETS	2,095	1,976
PROPERTY, PLANT AND EQUIPMENT, less accumulated depreciation of $6,752 and $6,906, respectively	9,036	9,561
TRADEMARKS WITH INDEFINITE LIVES	6,261	6,183
GOODWILL	3,905	4,224
OTHER INTANGIBLE ASSETS	2,149	2,421
TOTAL ASSETS	47,403	48,671
CURRENT LIABILITIES
Accounts payable and accrued expenses	5,963	6,657
Loans and notes payable	6,670	6,749
Current maturities of long-term debt	546	51
Accrued income taxes	404	264
TOTAL CURRENT LIABILITIES	13,583	13,721
LONG-TERM DEBT	4,419	5,059
OTHER LIABILITIES	2,763	2,965
DEFERRED INCOME TAXES	1,481	1,580
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY
Common stock, $0.25 par value; Authorized - 5,600 shares; Issued - 3,520 and 3,520 shares, respectively	880	880
Capital surplus	8,646	8,537
Reinvested earnings	42,136	41,537
Accumulated other comprehensive income (loss)	(1,445)	(757)
Treasury stock, at cost - 1,214 and 1,217 shares, respectively	(25,345)	(25,398)
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA COMPANY	24,872	24,799
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS	285	547
TOTAL EQUITY	25,157	25,346
TOTAL LIABILITIES AND EQUITY	$47,403	$48,671

1_CONDENSED CONSOLIDATED BALANC

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, except Per Share data	Apr. 02, 2010	Dec. 31, 2009
CONDENSED CONSOLIDATED BALANCE SHEETS
Trade accounts receivable, allowances (in dollars)	$44	$55
PROPERTY, PLANT AND EQUIPMENT, accumulated depreciation (in dollars)	$6,752	$6,906
Common stock, par value (in dollars per share)	0.25	0.25
Common stock, Authorized shares	5,600	5,600
Common stock, Issued shares	3,520	3,520
Treasury stock, shares	1,214	1,217

2_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	3 Months Ended Apr. 02, 2010	3 Months Ended Apr. 03, 2009
OPERATING ACTIVITIES
Consolidated net income	$1,626	$1,359
Depreciation and amortization	295	283
Stock-based compensation expense	53	53
Deferred income taxes	34	(20)
Equity income or loss, net of dividends	(118)	(3)
Foreign currency adjustments	93	42
Gains on sales of assets, including bottling interests	(14)	(5)
Other operating charges	71	74
Other items	73	100
Net change in operating assets and liabilities	(787)	(1,010)
Net cash provided by operating activities	1,326	873
INVESTING ACTIVITIES
Acquisitions and investments, principally beverage and bottling companies and trademarks	(6)	(179)
Purchases of other investments	(915)	(6)
Proceeds from disposals of bottling companies and other investments	14	37
Purchases of property, plant and equipment	(393)	(467)
Proceeds from disposals of property, plant and equipment	16	7
Other investing activities	(84)	9
Net cash provided by (used in) investing activities	(1,368)	(599)
FINANCING ACTIVITIES
Issuances of debt	2,773	5,758
Payments of debt	(2,922)	(3,001)
Issuances of stock	123	10
Purchases of stock for treasury	(2)	0
Dividends	(1,015)	(950)
Net cash provided by (used in) financing activities	(1,043)	1,817
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(252)	24
CASH AND CASH EQUIVALENTS
Net increase (decrease) during the period	(1,337)	2,115
Balance at beginning of period	7,021	4,701
Balance at end of period	$5,684	$6,816

Summary of Significant Accounti

Summary of Significant Accounting Policies
	3 Months Ended Apr. 02, 2010
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	NoteA 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 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, 2009. When used in these notes, the terms "The Coca-Cola Company," "Company," "we," "us" or "our" mean The Coca-Cola Company and all entities included in our condensed consolidated financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended April2, 2010, are not necessarily indicative of the results that may be expected for the year ending December31, 2010. 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 2010 and 2009 ended on April2, 2010, and April3, 2009, respectively. The first quarter of 2010 had one less day compared to the first quarter of 2009. Our fourth interim reporting period and our fiscal year end on December31 regardless of the day of the week on which December31 falls. Principles of Consolidation In June 2009, the Financial Accounting Standards Board ("FASB") amended its guidance on accounting for variable interest entities ("VIEs"). The new accounting guidance resulted in a change in our accounting policy effective January1, 2010. Among other things, the new guidance requires more qualitative than quantitative analyses to determine the primary beneficiary of a VIE, requires continuous assessments of whether an enterprise is the primary beneficiary of a VIE and amends certain guidance for determining whether an entity is a VIE. Under the new guidance, a VIE must be consolidated if the enterprise has both (a)the power to direct the activities of the VIE that most significantly impact the entity's economic performance, and (b)the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. This new accounting guidance was effective for our Company on January1, 2010, and is being applied prospectively. On January1, 2010, we deconsolidated certain entities as a result of this change in accounting policy. These entities are primarily bottling operations and had previously been consolidated due

Inventories

Inventories
	3 Months Ended Apr. 02, 2010
Inventories
Inventories	NoteB Inventories Inventories consist primarily of raw materials and packaging (which include ingredients and supplies) and finished goods (which include concentrates and syrups in our concentrate and foodservice operations). Inventories are valued at the lower of cost or market. We determine cost on the basis of the average cost or first-in, first-out methods. The following table summarizes our inventory balances (in millions): April2, 2010 December31, 2009 Raw materials and packaging $1,402 $1,366 Finished goods 643 697 Other 282 291 Total inventories $2,327 $2,354

Investments

Investments
	3 Months Ended Apr. 02, 2010
Investments
Investments	NoteC Investments Investments in debt and marketable equity securities, other than investments accounted for under 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 condensed consolidated balance sheets as a component of accumulated other comprehensive income (loss) ("AOCI"). Our investments in debt securities are carried at either amortized cost or fair value. Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity. Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as either trading or available-for-sale. Trading Securities As of April2, 2010, and December31, 2009, our trading securities had a fair value of approximately $71million and $61million, respectively, and were included in the line item marketable securities in our condensed consolidated balance sheets. The Company had net unrealized losses on trading securities of approximately $15million and $16million as of April2, 2010, and December31, 2009, respectively. Available-for-Sale and Held-to-Maturity Securities As of April2, 2010, available-for-sale and held-to-maturity securities consisted of the following (in millions): GrossUnrealized Estimated Cost Gains Losses Fair Value Available-for-sale securities:1 Equity securities $195 $168 $ $363 Other securities 9 9 $204 $168 $ $372 Held-to-maturity securities: Bank and corporate debt $127 $ $ $127 1Refer to NoteL for additional information related to the estimated fair value. As of December31, 2009, available-for-sale and held-to-maturity securities consisted of the following (in millions): GrossUnrealized Estimated Cost Gains Losses Fair Value Available-for-sale securities:1 Equity securities $231 $176 $(18 ) $389 Other securities 12 (3 ) 9 $243 $176 $(21 ) $398 Held-to-maturity securities: Bank and corporate debt $199 $ $ $199 1Refer to NoteL for additional information related to the estimated fair value. As of April2, 2010, the Company had several investments classified as available-for-sale securities in which our cost basis exceeded the fair value of the investment. Management assessed each of these investments on an individual basis to determine if the declin

Hedging Transactions and Deriva

Hedging Transactions and Derivative Financial Instruments
	3 Months Ended Apr. 02, 2010
Hedging Transactions and Derivative Financial Instruments
Hedging Transactions and Derivative Financial Instruments	NoteD 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 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 our condensed 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 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 changes in fair values of derivatives that have been designated and qualify as cash flow hedges or hedges of net investments in foreign operations are recorded in AOCI and are reclassified into the line item in the condensed consolidated income statement in which the hedged items are recorded in the same period the hedged items affect earnings. Due to the high degree of effectiveness between the hedging instruments and the underlying exposures being hedged, fluctuations in th

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Apr. 02, 2010
Commitments and Contingencies
Commitments and Contingencies	NoteE Commitments and Contingencies As of April2, 2010, we were contingently liable for guarantees of indebtedness owed by third parties, including certain VIEs, in the amount of approximately $348million. 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 February25, 2010, we entered into a definitive agreement with Coca-Cola EnterprisesInc. ("CCE") that will result in the acquisition of the assets and liabilities of CCE's North American operations for consideration including the Company's current 34percent ownership interest in CCE valued at approximately $3.4billion, based upon a 30day trailing average as of February24, 2010, and the assumption of approximately $8.9billion of CCE debt. At closing, CCE shareowners other than the Company will exchange their current CCE common stock for common stock in a new entity, which will retain the name Coca-Cola EnterprisesInc. and will hold CCE's current European operations. This new entity initially will be 100percent owned by the CCE shareowners other than the Company. As a result of the transaction, the Company will not own any interest in the new CCE entity. The transaction is subject to CCE shareowners' approval and certain regulatory approvals. As contemplated by an agreement in principle reached concurrently with the definitive agreement relating to CCE's North American operations, on March20, 2010, we entered into a definitive agreement with CCE to sell to CCE our ownership interests in our Norwegian bottling operation, Coca-Cola Drikker AS, and our Swedish bottling operation, Coca-Cola Drycker Sverige AB, to the new CCE entity for approximately $822million in cash. The transactions are subject to certain regulatory approvals. We expect all of these transactions will close in the fourth quarter of 2010. In addition, we granted the new CCE entity the right to acquire our majority interest in our German bottling operation, Coca-Cola Erfrischungsgetraenke AG ("CCEAG"), 18 to 36months after signing of the definitive agreement with respect to CCE's North American operations, at the then current fair value. 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 a

Comprehensive Income

Comprehensive Income
	3 Months Ended Apr. 02, 2010
Comprehensive Income
Comprehensive Income	NoteF Comprehensive Income The following table provides a summary of total comprehensive income for the applicable periods (in millions): Three Months Ended April2, 2010 April3, 2009 Consolidated net income $1,626 $1,359 Other comprehensive income ("OCI"): Net foreign currency translation gain (loss) (804 ) (295 ) Net gain (loss) on derivatives 32 69 Net change in unrealized gain on available-for-sale securities 46 1 11 Net change in pension liability 29 (8 ) Total comprehensive income $929 $1,136 1Includes reclassification adjustments related to other-than-temporary impairments of certain available-for-sale securities. Refer to NoteC and NoteL for additional information related to these impairments. The following tables summarize the allocation of total comprehensive income between shareowners of The Coca-Cola Company and the noncontrolling interests (in millions): Three Months Ended April2, 2010 Shareowners of The Coca-Cola Company Noncontrolling Interests Total Consolidated net income $1,614 $12 $1,626 Other comprehensive income: Net foreign currency translation gain (loss) (795 ) (9 ) (804 ) Net gain (loss) on derivatives 32 32 Net change in unrealized gain on available-for-sale securities1 46 46 Net change in pension liability 29 29 Total comprehensive income $926 $3 $929 1Includes reclassification adjustments related to other-than-temporary impairments of certain available-for-sale securities. Refer to NoteC and NoteL for additional information related to these impairments. Three Months Ended April3, 2009 Shareowners of The Coca-Cola Company Noncontrolling Interests Total Consolidated net income $1,348 $11 $1,359 Other comprehensive income: Net foreign currency translation gain (loss) (291 ) (4 ) (295 ) Net gain (loss) on derivatives 69 69 Net change in unrealized gain on available-for-sale securities 11 11 Net change in pension liability (8 ) (8 ) Total comprehensive income $1,129 $7 $1,136

Changes in Equity

Changes in Equity
	3 Months Ended Apr. 02, 2010
Changes in Equity
Changes in Equity	NoteG 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 December31, 2009 $25,346 $41,537 $(757 ) $880 $8,537 $(25,398 ) $547 Comprehensive income (loss)1 929 1,614 (688 ) 3 Dividends paid to shareowners of The Coca-Cola Company (1,015 ) (1,015 ) Dividends paid to noncontrolling interests (13 ) (13 ) Contributions by noncontrolling interests 1 1 Impact of employee stock option and restricted stock plans 162 109 53 Deconsolidation of certain VIEs2 (253 ) (253 ) April2, 2010 $25,157 $42,136 $(1,445 ) $880 $8,646 $(25,345 ) $285 1The allocation of the individual components of comprehensive income attributable to shareowners of The Coca-Cola Company and the noncontrolling interests is disclosed in NoteF. 2On January1, 2010, we deconsolidated certain VIEs as a result of the adoption of new accounting guidance issued by the FASB. We have accounted for our investments in these deconsolidated entities under the equity method of accounting since January1, 2010. The Company did not recognize any gains or losses as a result of the deconsolidation, and the carrying value of our investment in these entities was carried over at historic cost. Refer to NoteA.

Significant Operating and Nonop

Significant Operating and Nonoperating Items
	3 Months Ended Apr. 02, 2010
Significant Operating and Nonoperating Items
Significant Operating and Nonoperating Items	NoteH Significant Operating and Nonoperating Items Other Operating Charges Other operating charges incurred by operating segment were as follows (in millions): Three Months Ended April2, 2010 April3, 2009 Eurasia Africa $1 $ Europe 28 Latin America North America 4 5 Pacific Bottling Investments 33 65 Corporate 30 22 Total $96 $92 During the three months ended April2, 2010, the Company incurred other operating charges of approximately $96million, which consisted of $50million attributable to the Company's ongoing productivity initiatives, $40million due to restructuring charges and $6million related to transaction costs incurred in connection with our definitive agreements to acquire the assets and liabilities of CCE's North American operations and to sell our Norwegian and Swedish bottling operations to CCE. Refer to NoteI for additional information on our productivity initiatives and restructuring charges. Refer to NoteE for additional information related to our potential acquisition of CCE's North American operations and sale of our Norwegian and Swedish bottling operations to CCE. In the three months ended April3, 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 NoteI for additional information on the Company's ongoing 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 NoteL for additional information related to the impairment charge. Other Nonoperating Items Equity Income (Loss) Net During the three months ended April2, 2010, the Company recorded charges of approximately $29million in equity income (loss) net. These charges primarily represent the Company's proportionate share of asset impairments and restructuring charges recorded by equity method investees. These charges impacted the Bottling Investments operating segment. In the three months ended April3, 2009, the Company recorded charges of approximately $52million in equity income (loss) net. These charges primarily represent the Company's proportionate share of asset impairments and restructuring charges recorded by equity method investees. These charges impacted the Bottling Investments and Corporate operating segments. Other Income (Loss) Net During the three months ended April2, 2010, the Company recorded a charge of approximately $103million in other income (loss) net related to the remeasurement of our Venezuelan subsidiary's net assets. Subsequent to December31, 2009, the Venezuelan government announced a currency devaluation, and Venezuela was determined to be a hyperinflationary economy. As a result of Venezuela being a hyperinflationary economy, our local subsidiary was required to use the U.S. dollar as its functional currency, and the remeasurement gains and losses were recogniz

Restructuring Costs

Restructuring Costs
	3 Months Ended Apr. 02, 2010
Restructuring Costs
Restructuring Costs	NoteI Restructuring Costs The following table summarizes the impact that productivity initiatives and restructuring charges had on our operating segments (in millions): Three Months Ended April2, 2010 April3, 2009 Eurasia Africa $1 $ Europe 28 Latin America North America 4 5 Pacific Bottling Investments 33 42 Corporate 24 22 Total $90 $69 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 $212million related to these productivity initiatives since they commenced in the first quarter of 2008. These expenses have been recorded in the line item other operating charges in our consolidated statements of income and impacted the Eurasia and Africa, Europe, North America, Pacific 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 following table summarizes the balance of accrued expenses related to productivity initiatives and the changes in the accrued amounts as of and for the three months ended April2, 2010 (in millions): Accrued Balance December31, 2009 Costs Incurred ThreeMonths Ended April2, 2010 Payments Noncash and Exchange Accrued Balance April2, 2010 Severance pay and benefits $18 $29 $(2 ) $ $45 Outside services legal, outplacement, consulting 9 13 (14 ) 8 Other direct costs 4 8 (12 ) Total $31 $50 $(28 ) $ $53 Integration Initiatives During the three months ended April2, 2010, the Company incurred approximately $13million of charges related to the integration of the 18 German bottling and distribution operations acquired in 2007. The Company began these integration initiatives in 2008 and has incurred total pretax expenses of approximately $144million since they commenced. The expenses recorded in connection with these integration activities have been primarily due to involuntary terminations. These charges were recorded in the line item other operating charges in our consolidated statements of income and impacted the Bottling Investments operating segment. The Company had approximately $28million and $46million accrued related to these integration costs as of April2, 2010, and December31, 2009, respe

Pension and Other Postretiremen

Pension and Other Postretirement Benefit Plans
	3 Months Ended Apr. 02, 2010
Pension and Other Postretirement Benefit Plans
Pension and Other Postretirement Benefit Plans	NoteJ 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 April2, 2010 April3, 2009 April2, 2010 April3, 2009 Service cost $29 $27 $5 $5 Interest cost 55 52 7 7 Expected return on plan assets (62 ) (52 ) (2 ) (2 ) Amortization of prior service cost (credit) 1 1 (15 ) (15 ) Amortization of net actuarial loss 14 20 1 Net periodic benefit cost (credit) $37 $48 $(4 ) $(5 ) We contributed approximately $29million to our pension plans during the three months ended April2, 2010. We anticipate making additional contributions of approximately $41million to our pension plans during the remainder of 2010. We contributed approximately $193million to our pension plans during the three months ended April3, 2009, which included approximately $175million for our primary U.S. pension plan. That contribution, combined with positive asset returns in 2009 and modified federal funding requirements, improved the funded status of our primary U.S. pension plan. Additional contributions to this plan should not be required during 2010. On March23, 2010, the Patient Protection and Affordable Care Act (HR 3590) (the "Act") was signed into law. As a result of this legislation, entities are no longer eligible to receive a tax deduction for the portion of prescription drug expenses reimbursed under the Medicare PartD subsidy. This change resulted in a reduction of our deferred tax assets and a corresponding charge to income tax expense of approximately $14million during the three months ended April2, 2010. Refer to NoteK.

Income Taxes

Income Taxes
	3 Months Ended Apr. 02, 2010
Income Taxes
Income Taxes	NoteK 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. The Company's estimated annual effective tax rate reflects, among other items, our best estimates of operating results and foreign currency exchange rates. A change in the mix of pretax income from these various tax jurisdictions can have a significant impact on the Company's effective tax rate. Our effective tax rate for the three months ended April2, 2010, included the impact of an approximate 21percent combined effective tax rate on productivity initiatives, restructuring charges and transaction costs; an approximate 14percent combined effective tax rate on our proportionate share of asset impairment and restructuring charges recorded by equity method investees; a zero percent effective tax rate on the remeasurement of our Venezuelan subsidiary's net assets; a zero percent effective tax rate on other-than-temporary impairment charges; a tax charge of approximately $14million related to new legislation that changed the tax treatment of Medicare PartD subsidies; and an approximate $1million net tax benefit related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. Refer to NoteJ for additional information related to the change in tax treatment of Medicare PartD subsidies. Our effective tax rate for the three months ended April3, 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, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant. It is expected that the amount of unrecognized tax benefits will change in the next twelve months; however, we do not expect the change to have a significant impact on our condensed consolidated statement of income or condensed consolidated balance sheet. The change may be the result of settlements of ongoing audits, statute of limitations expiring, or final settlements in matters that are the subject of litigation. At this time, an estimate of the range of the reasonably possible outcomes cannot be made.

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Apr. 02, 2010
Fair Value Measurements
Fair Value Measurements	NoteL Fair Value Measurements Accounting principles generally accepted in the United States define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level1 Quoted prices in active markets for identical assets or liabilities. Level2 Observable inputs other than quoted prices included in Level1. We value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data. 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. Recurring Fair Value Measurements In accordance with accounting principles generally accepted in the United States, certain assets and liabilities are required to be recorded at fair value on a recurring basis. For our Company, the only assets and liabilities that are adjusted to fair value on a recurring basis are investments in equity and debt securities classified as trading or available-for-sale and derivative instruments. Investments in Trading and Available-for-Sale Securities The fair values of our investments in trading and available-for-sale securities were primarily determined using quoted market prices from daily exchange traded markets. The fair values of these instruments were based on the closing price as of the balance sheet date and were classified as Level1. Derivative Financial Instruments The fair values of our futures contracts were primarily determined using quoted contract prices on futures exchange markets. The fair values of these instruments were based on the closing contract price as of the balance sheet date and were classified as Level1. The fair values of our forward contracts and foreign currency options were determined using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions; and therefore, have been classified as Level2. Inputs used in these standard valuation models for both forward contracts and foreign currency options include the applicable exchange rates, forward rates and discount rates. The standard valuation model for foreign currency options also uses implied volatility as an additional input. The discount rates are based on the historical U.S. Deposit or U.S. Treasury rates, and the implied volatility sp

Acquisitions and Investments

Acquisitions and Investments
	3 Months Ended Apr. 02, 2010
Acquisitions and Investments
Acquisitions and Investments	NoteM Acquisitions and Investments During the three months ended April2, 2010, our Company's acquisition and investment activities totaled approximately $6million. None of the acquisitions or investments was individually significant. During the three months ended April3, 2009, our Company's acquisition and investment activities totaled approximately $179million. None of the acquisitions or investments was individually significant.

Operating Segments

Operating Segments
	3 Months Ended Apr. 02, 2010
Operating Segments
Operating Segments	NoteN Operating Segments Information about our Company's operations as of and for the three months ended April2, 2010, and April3, 2009, by operating segment, is as follows (in millions): Eurasia Africa Europe Latin America North America Pacific Bottling Investments Corporate Eliminations Consolidated 2010 Net operating revenues: Third party $575 $1,034 $931 $1,917 $1,098 $1,952 $18 $ $7,525 Intersegment 36 228 54 15 104 25 (462 ) Total net revenues 611 1,262 985 1,932 1,202 1,977 18 (462 ) 7,525 Operating income (loss) 254 1 712 1 602 425 1 480 6 1 (296 )1 2,183 Income (loss) before income taxes 258 1 722 1 608 424 1 477 110 1,2,4 (420 )1,3,4 2,179 Identifiable operating assets 1,216 2,892 2,276 11,240 1,776 8,247 13,007 40,654 Noncurrent investments 329 94 266 48 92 5,855 65 6,749 2009 Net operating revenues: Third party $458 $980 $828 $2,044 $1,046 $1,796 $17 $ $7,169 Intersegment 45 200 32 12 94 26 (409 ) Total net revenues 503 1,180 860 2,056 1,140 1,822 17 (409 ) 7,169 Operating income (loss) 207 692 454 428 5 456 (69 )5 (305 )5 1,863 Income (loss) before income taxes 202 697 457 426 5 453 (43 )5,6 (377 )5,6,7 1,815 Identifiable operating assets 960 2,886 1,980 11,298 1,432 8,019 10,771 37,346 Noncurrent investments 274 168 252 2 76 4,925 60 5,757 As of December31, 2009 Identifiable operating assets $1,155 $3,047 $2,480 $10,941 $1,929 $9,140 $13,224 $ $41,916 Noncurrent investments 331 214 248 8 82 5,809 63 6,755 1Operating income (loss) and income (loss) before income taxes for the three months ended April2, 2010, were reduced by approximately $1million for Eurasia and Africa, $28million for Europe, $4million for North America, $33million for Bottling Investments and $30million for Corporate, primarily due to the Company's ongoing productivity initiatives, restructuring charges and transaction costs. 2Income (loss) before income taxes for the three months ended April2, 2010, was reduced by approximately $29million for Bottling Investments, primarily attributable to the Company's proportionate share of asset impairment charges and restructuring costs recorded by equity method investees. 3Income (loss) before income taxes for the three months ended April2, 2010, was reduced by ap

Document and Entity Information

Document and Entity Information
	3 Months Ended Apr. 02, 2010	Apr. 26, 2010
Document and Entity Information
Entity Registrant Name	COCA COLA CO
Entity Central Index Key	0000021344
Document Type	10-Q
Document Period End Date	2010-04-02
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		2,307,050,619
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1