3 unchanged sentences
(In millions except per share data)
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
−Removed: 2021 September 30,
−Removed: 2022 October 1,
+Added: Three Months Ended
+Added: 2023 April 1,
Net Operating Revenues $ 10,980 $ 10,491
25 unchanged sentences
(In millions)
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
−Removed: 2021 September 30,
−Removed: 2022 October 1,
+Added: Three Months Ended
+Added: 2023 April 1,
Consolidated Net Income $ 3,113 $ 2,793
6 unchanged sentences
Comprehensive income (loss) attributable to noncontrolling interests
−Removed: ( 154 ) ( 62 ) ( 200 ) ( 16 )
Total Comprehensive Income Attributable to Shareowners
5 unchanged sentences
(In millions except par value)
−Removed: September 30,
2023 December 31,
44 unchanged sentences
(In millions)
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
+Added: Three Months Ended
+Added: 2023 April 1,
Operating Activities
29 unchanged sentences
Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
−Removed: ( 392 ) ( 56 )
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
16 unchanged sentences
In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included.
−Removed: 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.
+Added: Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
Sales of our ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters typically accounting for the highest sales volumes.
1 unchanged sentence
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.
−Removed: The third quarter of 2022 and the third quarter of 2021 ended on September 30, 2022 and October 1, 2021, respectively.
+Added: The first quarter of 2023 and the first quarter of 2022 ended on March 31, 2023 and April 1, 2022, respectively.
Our fourth quarter and our fiscal year end on December 31 regardless of the day of the week on which December 31 falls.
10 unchanged sentences
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.
−Removed: 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.
+Added: 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 in 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):
−Removed: September 30,
2023 December 31,
4 unchanged sentences
Refer to Note 4.
−Removed: 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.
+Added: 2 Amount as of December 31, 2022 includes 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 sheet.
Refer to Note 2.
3 unchanged sentences
Cash, cash equivalents, restricted cash and restricted cash equivalents $ 7,992 $ 10,025
−Removed: 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.
+Added: 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.
+Added: 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.
ACQUISITIONS AND DIVESTITURES
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: All of the gains were recorded in the line item other income (loss) — net in our consolidated statements of income.
+Added: Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 20 million and $ 5 million during the three months ended March 31, 2023 and April 1, 2022, respectively.
+Added: Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the three months ended March 31, 2023 and April 1, 2022 totaled $ 319 million and $ 218 million, respectively, which primarily related to sales of our ownership interests in certain equity method investees.
Assets and Liabilities Held for Sale
−Removed: The Company had certain bottling operations in Asia Pacific that met the criteria to be classified as held for sale.
+Added: As of December 31, 2022, the Company’s bottling operations in Vietnam 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.
1 unchanged sentence
These assets and liabilities were included in the Bottling Investments operating segment.
−Removed: The Company expects these bottling operations to be refranchised during the fourth quarter of 2022, subject to regulatory approval.
−Removed: 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):
−Removed: September 30,
+Added: In December 2022, the Company received cash proceeds of $ 823 million in advance of refranchising its bottling operations in Vietnam.
+Added: This advance was included in the line item accounts payable and accrued expenses in our consolidated balance sheet as of December 31, 2022.
+Added: The Company refranchised its bottling operations in Vietnam in January 2023 and recognized a net gain of $ 439 million as a result of the sale, which was recorded in the line item other income (loss) — net in our consolidated statement of income.
+Added: 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 sheet (in millions):
December 31, 2022
6 unchanged sentences
Property, plant and equipment — net 197
−Removed: Goodwill 35 37
Assets held for sale $ 602
2 unchanged sentences
Other noncurrent liabilities 3
−Removed: Deferred income tax liabilities 5 5
Liabilities held for sale $ 160
NET OPERATING REVENUES
−Removed: The following tables present net operating revenues disaggregated between the United States and International and further by line of business (in millions):
−Removed: United States International Total
−Removed: Three Months Ended September 30, 2022
−Removed: Concentrate operations $ 2,235 $ 4,339 $ 6,574
−Removed: Finished product operations 1,909 2,580 4,489
−Removed: Total $ 4,144 $ 6,919 $ 11,063
−Removed: Three Months Ended October 1, 2021
−Removed: Concentrate operations $ 1,749 $ 4,122 $ 5,871
−Removed: Finished product operations 1,669 2,502 4,171
−Removed: Total $ 3,418 $ 6,624 $ 10,042
+Added: The following table presents net operating revenues disaggregated between the United States and International and further by line of business (in millions):
United States International Total
−Removed: Nine Months Ended September 30, 2022
+Added: Three Months Ended March 31, 2023
Concentrate operations $ 1,989 $ 4,344 $ 6,333
1 unchanged sentence
Total $ 3,849 $ 7,131 $ 10,980
−Removed: Nine Months Ended October 1, 2021
+Added: Three Months Ended April 1, 2022
Concentrate operations $ 1,641 $ 4,083 $ 5,724
5 unchanged sentences
Fair Value with Changes Recognized in Income Measurement Alternative — No Readily Determinable Fair Value
−Removed: September 30, 2022
+Added: March 31, 2023
Marketable securities $ 310 $ —
9 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
−Removed: Net gains (losses) recognized during the period related to equity securities $ ( 38 ) $ 4
−Removed: Net gains (losses) recognized during the period related to equity securities sold
−Removed: during the period
−Removed: Net unrealized gains (losses) recognized during the period related to equity securities
−Removed: still held at the end of the period
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
+Added: 2023 April 1,
Net gains (losses) recognized during the period related to equity securities $ 125 $ ( 100 )
3 unchanged sentences
still held at the end of the period
−Removed: $ ( 49 ) $ 328
Debt Securities
2 unchanged sentences
Cost Gains Losses
−Removed: September 30, 2022
+Added: March 31, 2023
Trading securities
12 unchanged sentences
The carrying values of our debt securities were included in the following line items in our consolidated balance sheets (in millions):
−Removed: September 30, 2022 December 31, 2021
+Added: March 31, 2023 December 31, 2022
Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities
3 unchanged sentences
Total debt securities $ 39 $ 1,003 $ 39 $ 944
−Removed: The contractual maturities of these available-for-sale debt securities as of September 30, 2022 were as follows (in millions):
+Added: The contractual maturities of these available-for-sale debt securities as of March 31, 2023 were as follows (in millions):
Cost Estimated
6 unchanged sentences
The sale and/or maturity of available-for-sale debt securities resulted in the following realized activity (in millions):
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
−Removed: 2021 September 30,
−Removed: 2022 October 1,
+Added: Three Months Ended
+Added: 2023 April 1,
Gross gains $ — $ 1
6 unchanged sentences
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.
−Removed: 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.
+Added: This captive’s solvency capital funds included total equity and debt securities of $ 1,479 million and $ 1,378 million as of March 31, 2023 and December 31, 2022, respectively, which were classified in the line item other noncurrent assets in our consolidated balance sheets because the assets were not available to satisfy our current obligations.
Inventories consisted of the following (in millions):
−Removed: September 30,
2023 December 31,
7 unchanged sentences
Derivatives Designated as Hedging Instruments Balance Sheet Location 1
−Removed: September 30,
2023 December 31,
1 unchanged sentence
Foreign currency contracts Other noncurrent assets 15 13
−Removed: Interest rate contracts Prepaid expenses and other current assets — 1
−Removed: Interest rate contracts Other noncurrent assets — 282
Total assets $ 130 $ 139
1 unchanged sentence
Foreign currency contracts Other noncurrent liabilities 120 108
+Added: Commodity contracts Accounts payable and accrued expenses 1 2
+Added: Interest rate contracts Accounts payable and accrued expenses 16 —
Interest rate contracts Other noncurrent liabilities 1,451 1,676
7 unchanged sentences
Derivatives Not Designated as Hedging Instruments Balance Sheet Location 1
−Removed: September 30,
2023 December 31, 2022
2 unchanged sentences
Commodity contracts Prepaid expenses and other current assets 15 34
−Removed: Commodity contracts Other noncurrent assets — 3
−Removed: Other derivative instruments Prepaid expenses and other current assets — 9
Total assets $ 109 $ 102
17 unchanged sentences
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.
+Added: The Company classifies collateral payments and receipts as investing cash flows when the collateral account is in an asset position and as financing cash flows when the collateral account is in a liability position.
As a result of these factors, we consider the risk of counterparty default to be minimal.
5 unchanged sentences
The Company maintains a foreign currency cash flow hedging program to reduce the risk that our U.S.
−Removed: dollar net cash inflows from sales outside the United States and U.S.
+Added: dollar net cash inflows from sales outside of the United States and U.S.
dollar net cash outflows from procurement activities will be adversely affected by fluctuations in foreign currency exchange rates.
4 unchanged sentences
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.
−Removed: 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.
+Added: The total notional values of derivatives that were designated and qualified for the Company’s foreign currency cash flow hedging program were $ 7,042 million and $ 5,510 million as of March 31, 2023 and December 31, 2022, 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.
1 unchanged sentence
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.
−Removed: 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.
+Added: The total notional value of derivatives that were designated as cash flow hedges for the Company’s foreign currency denominated assets and liabilities was $ 958 million as of both March 31, 2023 and December 31, 2022.
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.
1 unchanged sentence
The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of certain commodities.
−Removed: 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.
+Added: The total notional values of derivatives that were designated and qualified for this program were $ 57 million and $ 35 million as of March 31, 2023 and December 31, 2022, respectively.
Our Company monitors our mix of short-term debt and long-term debt regularly.
2 unchanged sentences
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.
−Removed: As of September 30, 2022 and December 31, 2021, we did not have any interest rate swaps designated as a cash flow hedge.
−Removed: 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):
−Removed: in OCI Location of Gain (Loss) Recognized in Income Gain (Loss) Reclassified from AOCI into Income
−Removed: Three Months Ended September 30, 2022
−Removed: Foreign currency contracts $ 197 Net operating revenues $ 88
−Removed: Foreign currency contracts 12 Cost of goods sold 10
−Removed: Foreign currency contracts — Interest expense ( 1 )
−Removed: Foreign currency contracts ( 56 ) Other income (loss) — net ( 71 )
−Removed: Total $ 153 $ 26
−Removed: Three Months Ended October 1, 2021
−Removed: Foreign currency contracts $ 15 Net operating revenues $ ( 21 )
−Removed: Foreign currency contracts 6 Cost of goods sold ( 6 )
−Removed: Foreign currency contracts — Interest expense ( 1 )
−Removed: Foreign currency contracts ( 43 ) Other income (loss) — net ( 35 )
−Removed: $ ( 22 ) $ ( 63 )
+Added: As of March 31, 2023 and December 31, 2022, we did not have any interest rate swaps designated as a cash flow hedge.
+Added: The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings (in millions):
in OCI Location of Gain (Loss) Recognized in Income Gain (Loss) Reclassified from AOCI into Income
−Removed: Nine Months Ended September 30, 2022
+Added: Three Months Ended March 31, 2023
Foreign currency contracts $ ( 36 ) Net operating revenues $ 1
2 unchanged sentences
Foreign currency contracts ( 13 ) Other income (loss) — net —
+Added: Commodity contracts ( 2 ) Cost of goods sold ( 3 )
Total $ ( 47 ) $ 1
−Removed: Nine Months Ended October 1, 2021
+Added: Three Months Ended April 1, 2022
Foreign currency contracts $ 81 Net operating revenues $ 8
2 unchanged sentences
Foreign currency contracts ( 5 ) Other income (loss) — net ( 11 )
−Removed: Interest rate contracts 110 Interest expense ( 90 )
−Removed: $ 119 $ ( 133 )
−Removed: 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.
+Added: As of March 31, 2023, the Company estimates that it will reclassify into earnings during the next 12 months net gains of $ 14 million from the pretax amount recorded in AOCI as the anticipated cash flows occur.
Fair Value Hedging Strategy
4 unchanged sentences
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.
−Removed: 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.
−Removed: 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):
+Added: The total notional values of derivatives that were designated and qualified as fair value hedges of this type were $ 13,535 million and $ 13,425 million as of March 31, 2023 and December 31, 2022, respectively.
+Added: The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings (in millions):
Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss)
1 unchanged sentence
Three Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
−Removed: Interest rate contracts Interest expense $ ( 688 ) $ ( 56 )
−Removed: Fixed-rate debt Interest expense 705 55
−Removed: Net impact of fair value hedging instruments $ 17 $ ( 1 )
−Removed: Hedging Instruments and Hedged Items Location of Gain (Loss) Recognized in Income Gain (Loss)
−Removed: Recognized in Income
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
+Added: 2023 April 1,
Interest rate contracts Interest expense $ 208 $ ( 711 )
5 unchanged sentences
Hedged Items Included in the Carrying Values of Hedged Items Remaining for Which Hedge Accounting Has Been Discontinued
−Removed: Balance Sheet Location of Hedged Items September 30,
+Added: Balance Sheet Location of Hedged Items March 31,
2023 December 31,
−Removed: 2021 September 30,
+Added: 2022 March 31,
2023 December 31,
−Removed: 2021 September 30,
+Added: 2022 March 31,
2023 December 31,
9 unchanged sentences
Notional Values Gain (Loss) Recognized in OCI
−Removed: as of Three Months Ended Nine Months Ended
−Removed: September 30,
+Added: as of Three Months Ended
2023 December 31,
−Removed: 2021 September 30,
−Removed: 2022 October 1,
−Removed: 2021 September 30,
−Removed: 2022 October 1,
+Added: 2022 March 31,
+Added: 2023 April 1,
Foreign currency contracts $ — $ — $ — $ ( 6 )
1 unchanged sentence
Total $ 11,674 $ 12,061 $ ( 154 ) $ 349
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: The Company did not reclassify any gains or losses related to net investment hedges from AOCI into earnings during the three months ended March 31, 2023 and April 1, 2022.
+Added: In addition, the Company did not have any ineffectiveness related to net investment hedges during the three months ended March 31, 2023 and April 1, 2022.
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
−Removed: 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.
+Added: In addition to derivative instruments that were designated and qualified 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.
5 unchanged sentences
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.
−Removed: 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.
+Added: The total notional values of derivatives related to our foreign currency economic hedges were $ 5,330 million and $ 4,902 million as of March 31, 2023 and December 31, 2022, 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.
−Removed: The total notional value of derivatives related to our economic hedges of this type was $ 200 million as of December 31, 2021.
−Removed: As of September 30, 2022, we did not have any interest rate contracts used as economic hedges.
+Added: As of March 31, 2023 and December 31, 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.
−Removed: 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.
−Removed: 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):
+Added: The total notional values of derivatives related to our economic hedges of this type were $ 329 million and $ 336 million as of March 31, 2023 and December 31, 2022, respectively.
+Added: The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions):
Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Gain (Loss)
1 unchanged sentence
Three Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
−Removed: Foreign currency contracts Net operating revenues $ 16 $ 2
−Removed: Foreign currency contracts Cost of goods sold 21 ( 10 )
−Removed: Foreign currency contracts Other income (loss) — net 41 ( 43 )
−Removed: Commodity contracts Cost of goods sold ( 10 ) ( 32 )
−Removed: Other derivative instruments Selling, general and administrative expenses ( 17 ) ( 2 )
−Removed: Total $ 51 $ ( 85 )
−Removed: Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized in Income Gain (Loss)
−Removed: Recognized in Income
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
+Added: 2023 April 1,
Foreign currency contracts Net operating revenues $ ( 7 ) $ ( 15 )
1 unchanged sentence
Foreign currency contracts Other income (loss) — net ( 11 ) 42
−Removed: Interest rate contracts Interest expense — ( 187 )
Commodity contracts Cost of goods sold ( 46 ) 160
Other derivative instruments Selling, general and administrative expenses 3 ( 3 )
−Removed: Other derivative instruments Other income (loss) — net — ( 3 )
Total $ ( 33 ) $ 197
+Added: SUPPLY CHAIN FINANCE PROGRAM
+Added: Our current payment terms with the majority of our suppliers are 120 days.
+Added: Two global financial institutions offer a voluntary supply chain finance (“SCF”) program, which enables our suppliers, at their sole discretion, to sell their receivables from the Company to these financial institutions on a non-recourse basis at a rate that leverages our credit rating and thus may be more beneficial to them.
+Added: The SCF program is available to suppliers of goods and services included in cost of goods sold and selling, general and administrative expenses in our consolidated statement of income.
+Added: The Company and our suppliers agree on contractual terms for the goods and services we procure, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF program.
+Added: The suppliers sell goods or services, as applicable, to the Company and issue the associated invoices to the Company based on the agreed-upon contractual terms.
+Added: Then, if they are participating in the SCF program, our suppliers, at their sole discretion, determine which invoices, if any, they want to sell to the financial institutions.
+Added: Our suppliers’ voluntary inclusion of invoices in the SCF program has no bearing on our payment terms.
+Added: No guarantees are provided by the Company or any of our subsidiaries under the SCF program.
+Added: We have no economic interest in a supplier’s decision to participate in the SCF program, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program.
+Added: Accordingly, amounts due to our suppliers that elected to participate in the SCF program are included in the line item accounts payable and accrued expenses in our consolidated balance sheet.
+Added: All activity related to amounts due to suppliers that elected to participate in the SCF program is reflected within the operating activities section of our consolidated statement of cash flows.
+Added: As of March 31, 2023 and December 31, 2022, the amount of obligations outstanding that the Company has confirmed as valid to the financial institutions under the SCF program was $ 1,236 million and $ 1,351 million, respectively.
DEBT AND BORROWING ARRANGEMENTS
−Removed: During the nine months ended September 30, 2022, the Company retired upon maturity fixed interest rate U.S.
−Removed: 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.
+Added: Loans and notes payable consist primarily of commercial paper issued in the United States.
+Added: As of March 31, 2023 and December 31, 2022, we had $ 5,282 million and $ 2,146 million, respectively, in outstanding commercial paper borrowings.
+Added: During the three months ended March 31, 2023, our bottling operations in Africa extinguished prior to maturity U.S.
+Added: dollar term loans with a total principal amount of $ 121 million, with variable interest rates ranging from the three-month London Interbank Offered Rate (“LIBOR”) plus 2.950 percent to the three-month LIBOR plus 3.000 percent.
+Added: Additionally, the bottling operations extinguished prior to maturity a U.S.
+Added: dollar revolving facility of $ 40 million, with a variable interest rate of the Secured Overnight Financing Rate plus 2.344 percent.
COMMITMENTS AND CONTINGENCIES
−Removed: 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.
+Added: As of March 31, 2023, we were contingently liable for guarantees of indebtedness owed by third parties of $ 1,047 million, of which $ 95 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.
2 unchanged sentences
However, management has concluded that the likelihood of any significant amounts being paid by our Company under these guarantees is not probable.
+Added: Concentrations of Credit Risk
We believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations.
5 unchanged sentences
The Company is involved in various tax matters, with respect to some of which the outcome is uncertain.
−Removed: 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:
−Removed: (1) the tax position is not “more likely than not” to be sustained;
−Removed: (2) the tax position is “more likely than not” to be sustained but for a lesser amount;
−Removed: 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.
−Removed: 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;
−Removed: (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;
−Removed: and (3) each tax position is evaluated without consideration of the possibility of offset or aggregation with other tax positions taken.
−Removed: A number of years may elapse before a particular uncertain tax position is audited and finally resolved.
−Removed: The number of years subject to tax audits or tax assessments varies depending on the tax jurisdiction.
−Removed: 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:
−Removed: (1) the tax position is “more likely than not” to be sustained;
−Removed: (2) the tax position, amount, and/or timing is ultimately settled through negotiation or litigation;
−Removed: or (3) the statute of limitations for the tax position has expired.
−Removed: Refer to Note 14.
+Added: These uncertain tax matters may result in the assessment of additional taxes.
On September 17, 2015, the Company received a Statutory Notice of Deficiency (“Notice”) from the U.S.
15 unchanged sentences
Using the new tax calculation methodology, the IRS reallocated over $ 9 billion of income to the U.S.
−Removed: parent company from its foreign licensees for tax years 2007 through 2009.
+Added: parent company from its foreign licensees
+Added: for tax years 2007 through 2009.
Consistent with the Closing Agreement, the IRS did not assert penalties, and it has yet to do so.
6 unchanged sentences
Prior to trial, the IRS increased its transfer pricing adjustment by $ 385 million, resulting in an additional tax adjustment of $ 135 million.
−Removed: 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.
+Added: 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 $ 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.
4 unchanged sentences
5816-13 (filed March 11, 2013).
−Removed: Once the Tax Court issues its opinion in 3M Co.
−Removed: Commissioner, the Company expects the Tax Court thereafter to render another opinion, and ultimately a final decision, in the Company’s case.
+Added: The Tax Court issued its opinion in 3M Co.’s case (“3M Co.
+Added: opinion”) on February 9, 2023.
+Added: Once the Tax Court completes its analysis of the application of the 3M Co.
+Added: opinion to the Company’s case, the Company expects the Tax Court to render another opinion, and ultimately a 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.
9 unchanged sentences
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.
−Removed: 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.
+Added: 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 March 31, 2023.
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.
−Removed: 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.
+Added: 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 March 31, 2023 to $ 432 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.
−Removed: 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.
+Added: 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
+Added: 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, 2022 for the 2007 through 2009 litigated tax years and for subsequent tax years from 2010 through 2022.
2 unchanged sentences
Additional income tax and interest would continue to accrue until the time any such potential liability, or portion thereof, were to be paid.
−Removed: 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.
+Added: The Company estimates the impact of the continued application of the Tax Court Methodology for the three months ended March 31, 2023 would increase the potential aggregate incremental tax and interest liability by approximately $ 400 million.
Additionally, we currently project the continued application of the Tax Court Methodology in future years, assuming similar facts and circumstances as of December 31, 2022, 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.
−Removed: 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.
+Added: 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 of both opinions, after which the Tax Court would render a 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.
−Removed: 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.
+Added: 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 $ 5.4 billion (including interest accrued through March 31, 2023), 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.
4 unchanged sentences
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.
−Removed: Our self-insurance reserves totaled $ 218 million and $ 229 million as of September 30, 2022 and December 31, 2021, respectively.
+Added: Our self-insurance reserves totaled $ 198 million and $ 199 million as of March 31, 2023 and December 31, 2022, respectively.
OTHER COMPREHENSIVE INCOME
2 unchanged sentences
AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions):
−Removed: September 30,
2023 December 31,
5 unchanged sentences
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
−Removed: Nine Months Ended September 30, 2022
+Added: Three Months Ended March 31, 2023
Shareowners of
5 unchanged sentences
Net gains (losses) on derivatives 1
−Removed: Net change in unrealized gains (losses) on available-for-sale debt securities 2
( 70 ) — ( 70 )
+Added: Net change in unrealized gains (losses) on available-for-sale debt securities 2
Net change in pension and other postretirement benefit liabilities 11 — 11
3 unchanged sentences
The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees’ OCI (in millions):
−Removed: Three Months Ended September 30, 2022 Before-Tax Amount Income Tax After-Tax Amount
−Removed: Foreign currency translation adjustments:
−Removed: Translation adjustments arising during the period $ ( 401 ) $ ( 3 ) $ ( 404 )
−Removed: Gains (losses) on intra-entity transactions that are of a long-term investment nature ( 1,340 ) — ( 1,340 )
−Removed: Gains (losses) on net investment hedges arising during the period 1
−Removed: 708 ( 177 ) 531
−Removed: Net foreign currency translation adjustments $ ( 1,033 ) $ ( 180 ) $ ( 1,213 )
−Removed: Gains (losses) arising during the period $ 150 $ ( 38 ) $ 112
−Removed: Reclassification adjustments recognized in net income ( 26 ) 7 ( 19 )
−Removed: Net gains (losses) on derivatives 1
−Removed: $ 124 $ ( 31 ) $ 93
−Removed: Available-for-sale debt securities:
−Removed: Unrealized gains (losses) arising during the period $ ( 12 ) $ ( 1 ) $ ( 13 )
−Removed: Reclassification adjustments recognized in net income 41 ( 10 ) 31
−Removed: Net change in unrealized gains (losses) on available-for-sale debt securities 2
−Removed: $ 29 $ ( 11 ) $ 18
−Removed: Pension and other postretirement benefit liabilities:
−Removed: Net pension and other postretirement benefit liabilities arising during the period $ 21 $ ( 7 ) $ 14
−Removed: Reclassification adjustments recognized in net income 26 ( 6 ) 20
−Removed: Net change in pension and other postretirement benefit liabilities $ 47 $ ( 13 ) $ 34
−Removed: Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
−Removed: Company $ ( 833 ) $ ( 235 ) $ ( 1,068 )
−Removed: 1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
−Removed: 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
−Removed: Nine Months Ended September 30, 2022 Before-Tax Amount Income Tax After-Tax Amount
−Removed: Foreign currency translation adjustments:
−Removed: Translation adjustments arising during the period $ ( 27 ) $ ( 216 ) $ ( 243 )
−Removed: Reclassification adjustments recognized in net income 200 — 200
−Removed: Gains (losses) on intra-entity transactions that are of a long-term investment nature ( 3,343 ) — ( 3,343 )
−Removed: Gains (losses) on net investment hedges arising during the period 1
−Removed: 1,766 ( 441 ) 1,325
−Removed: Net foreign currency translation adjustments $ ( 1,404 ) $ ( 657 ) $ ( 2,061 )
−Removed: Gains (losses) arising during the period $ 330 $ ( 90 ) $ 240
−Removed: Reclassification adjustments recognized in net income 13 ( 3 ) 10
−Removed: Net gains (losses) on derivatives 1
−Removed: $ 343 $ ( 93 ) $ 250
−Removed: Available-for-sale debt securities:
−Removed: Unrealized gains (losses) arising during the period $ ( 56 ) $ 9 $ ( 47 )
−Removed: Reclassification adjustments recognized in net income 46 ( 11 ) 35
−Removed: Net change in unrealized gains (losses) on available-for-sale debt securities 2
−Removed: $ ( 10 ) $ ( 2 ) $ ( 12 )
−Removed: Pension and other postretirement benefit liabilities:
−Removed: Net pension and other postretirement benefit liabilities arising during the period $ 287 $ ( 65 ) $ 222
−Removed: Reclassification adjustments recognized in net income 82 ( 20 ) 62
−Removed: Net change in pension and other postretirement benefit liabilities $ 369 $ ( 85 ) $ 284
−Removed: Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
−Removed: Company $ ( 702 ) $ ( 837 ) $ ( 1,539 )
−Removed: 1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
−Removed: 2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
−Removed: Three Months Ended October 1, 2021 Before-Tax Amount Income Tax After-Tax Amount
+Added: Three Months Ended March 31, 2023 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
22 unchanged sentences
2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
−Removed: Nine Months Ended October 1, 2021 Before-Tax Amount Income Tax After-Tax Amount
+Added: Three Months Ended April 1, 2022 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
4 unchanged sentences
349 ( 87 ) 262
−Removed: Reclassification adjustments for net investment hedges recognized in net income 1
Net foreign currency translation adjustments $ 1,203 $ ( 327 ) $ 876
18 unchanged sentences
Amount Reclassified from AOCI
−Removed: Description of AOCI Component Financial Statement Line Item Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022
+Added: Description of AOCI Component Financial Statement Line Item Three Months Ended March 31, 2023
Foreign currency translation adjustments:
5 unchanged sentences
Foreign currency contracts Net operating revenues $ ( 1 )
−Removed: Foreign currency contracts Cost of goods sold ( 10 ) ( 13 )
+Added: Foreign currency contracts and commodity contracts Cost of goods sold ( 1 )
Foreign currency contracts Interest expense 1
−Removed: Foreign currency contracts Other income (loss) — net 71 171
Income before income taxes ( 1 )
12 unchanged sentences
Consolidated net income $ 18
−Removed: 1 Related to the sale of our ownership interest in one of our equity method investments and the issuance of additional shares of stock by one of our equity method investees.
−Removed: Refer to Note 2 and Note 15, respectively .
+Added: 1 Related to the refranchising of our bottling operations in Vietnam and the sale of our ownership interest in one of our equity method investees.
+Added: Refer to Note 2.
CHANGES IN EQUITY
1 unchanged sentence
Shareowners of The Coca-Cola Company
−Removed: 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
−Removed: July 1, 2022 4,326 $ 24,803 $ 69,970 $ ( 14,801 ) $ 1,760 $ 18,581 $ ( 52,505 ) $ 1,798
−Removed: Comprehensive income (loss) — 1,603 2,825 ( 1,068 ) — — — ( 154 )
−Removed: Dividends paid/payable to
−Removed: shareowners of The Coca-Cola
−Removed: Company ($0.44 per share) — ( 1,902 ) ( 1,902 ) — — — — —
−Removed: Dividends paid to noncontrolling
−Removed: — ( 13 ) — — — — — ( 13 )
−Removed: Purchases of treasury stock ( 3 ) ( 188 ) — — — — ( 188 ) —
−Removed: Impact related to stock-based
−Removed: compensation plans 1 133 — — — 106 27 —
−Removed: September 30, 2022 4,324 $ 24,436 $ 70,893 $ ( 15,869 ) $ 1,760 $ 18,687 $ ( 52,666 ) $ 1,631
−Removed: Shareowners of The Coca-Cola Company
−Removed: 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
+Added: Three Months Ended March 31, 2023 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests
December 31, 2022 4,328 $ 25,826 $ 71,019 $ ( 14,895 ) $ 1,760 $ 18,822 $ ( 52,601 ) $ 1,721
3 unchanged sentences
Company ($ 0.46 per share)
+Added: — ( 1,989 ) ( 1,989 ) — — — — —
Dividends paid to noncontrolling
4 unchanged sentences
Other activities — — — — — ( 3 ) — 3
−Removed: September 30, 2022 4,324 $ 24,436 $ 70,893 $ ( 15,869 ) $ 1,760 $ 18,687 $ ( 52,666 ) $ 1,631
−Removed: Shareowners of The Coca-Cola Company
−Removed: 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
−Removed: July 2, 2021 4,315 $ 24,255 $ 67,838 $ ( 13,299 ) $ 1,760 $ 17,781 $ ( 51,831 ) $ 2,006
−Removed: Comprehensive income (loss) — 1,458 2,471 ( 951 ) — — — ( 62 )
−Removed: Dividends paid/payable to
−Removed: shareowners of The Coca-Cola
−Removed: Company ($0.42 per share) — ( 1,815 ) ( 1,815 ) — — — — —
−Removed: Dividends paid to noncontrolling
−Removed: interests — ( 10 ) — — — — — ( 10 )
−Removed: Contributions by noncontrolling
−Removed: interests — 20 — — — — — 20
−Removed: Impact related to stock-based
−Removed: compensation plans 4 225 — — — 148 77 —
−Removed: October 1, 2021 4,319 $ 24,133 $ 68,494 $ ( 14,250 ) $ 1,760 $ 17,929 $ ( 51,754 ) $ 1,954
+Added: March 31, 2023 4,325 $ 26,868 $ 72,137 $ ( 14,322 ) $ 1,760 $ 18,889 $ ( 53,247 ) $ 1,651
Shareowners of The Coca-Cola Company
−Removed: 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
+Added: Three Months Ended April 1, 2022 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests
December 31, 2021 4,325 $ 24,860 $ 69,094 $ ( 14,330 ) $ 1,760 $ 18,116 $ ( 51,641 ) $ 1,861
−Removed: Adoption of accounting standards 1
−Removed: — 19 19 — — — — —
Comprehensive income (loss) — 3,916 2,781 990 — — — 145
2 unchanged sentences
Company ($ 0.44 per share)
+Added: — ( 1,906 ) ( 1,906 ) — — — — —
Dividends paid to noncontrolling
interests — ( 9 ) — — — — — ( 9 )
−Removed: Contributions by noncontrolling interests
−Removed: — 20 — — — — — 20
+Added: Purchases of treasury stock ( 8 ) ( 471 ) — — — — ( 471 ) —
Impact related to stock-based
compensation plans 14 451 — — — 271 180 —
−Removed: October 1, 2021 4,319 $ 24,133 $ 68,494 $ ( 14,250 ) $ 1,760 $ 17,929 $ ( 51,754 ) $ 1,954
−Removed: 1 Represents the adoption of Accounting Standards Update 2019-12, Simplifying the Accounting for Income Taxes , effective January 1, 2021.
+Added: Other activities — — — — — 1 — ( 1 )
+Added: April 1, 2022 4,331 $ 26,841 $ 69,969 $ ( 13,340 ) $ 1,760 $ 18,388 $ ( 51,932 ) $ 1,996
SIGNIFICANT OPERATING AND NONOPERATING ITEMS
Other Operating Charges
−Removed: During the three months ended September 30, 2022, the Company recorded other operating charges of $ 130 million.
−Removed: 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.
−Removed: During the nine months ended September 30, 2022, the Company recorded other operating charges of $ 1,109 million.
−Removed: 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.
−Removed: 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.
−Removed: During the three months ended October 1, 2021, the Company recorded other operating charges of $ 45 million.
−Removed: 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
−Removed: related to the Company’s strategic realignment initiatives and $ 1 million related to tax litigation.
−Removed: Other operating charges also included a net gain of $ 3 million related to the restructuring of our manufacturing operations in the United States.
−Removed: During the nine months ended October 1, 2021, the Company recorded other operating charges of $ 478 million.
−Removed: 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.
−Removed: 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.
−Removed: Refer to Note 8 for additional information related to the tax litigation.
−Removed: Refer to Note 12 for additional information on the Company’s productivity and reinvestment program.
−Removed: Refer to Note 15 for additional information on the impairment charge and the fairlife acquisition.
+Added: During the three months ended March 31, 2023, the Company recorded other operating charges of $ 111 million.
+Added: These charges primarily consisted of $ 62 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 $ 18 million related to the restructuring of our North America operating unit.
+Added: In addition, other operating charges included $ 4 million for the amortization of noncompete agreements related to the BA Sports Nutrition, LLC (“BodyArmor”) acquisition in 2021.
+Added: During the three months ended April 1, 2022, the Company recorded other operating charges of $ 28 million.
+Added: These charges primarily consisted of $ 22 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $ 10 million related to the Company’s productivity and reinvestment program and $ 2 million related to the restructuring of our manufacturing operations in the United States.
+Added: These charges were partially offset by a net gain of $ 5 million, which included the reimbursement of distributor termination fees for BodyArmor recorded in 2021 partially offset by various transition and transaction costs, employee retention costs and the amortization of noncompete agreements, and income of $ 1 million related to the Company’s strategic realignment initiatives primarily as a result of a revision to estimated severance costs accrued in 2021.
+Added: Refer to Note 13 for additional information on the Company’s restructuring initiatives.
+Added: Refer to Note 16 for additional information on the fairlife acquisition.
Refer to Note 17 for the impact these charges had on our operating segments and Corporate.
Other Nonoperating Items
−Removed: Interest Expense
−Removed: 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
−Removed: During the three and nine months ended September 30, 2022, the Company recorded net charges of $ 14 million and $ 44 million, respectively.
−Removed: 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.
+Added: During the three months ended March 31, 2023 and April 1, 2022, the Company recorded a net charge of $ 82 million and a net gain 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.
1 unchanged sentence
Other Income (Loss) — Net
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: The Company also recorded pension settlement charges of $ 21 million related to our strategic realignment initiatives.
−Removed: 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.
+Added: During the three months ended March 31, 2023, the Company recognized a gain of $ 439 million related to the refranchising of our bottling operations in Vietnam.
Additionally, the Company recognized a net gain of $ 113 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.
−Removed: 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.
−Removed: Refer to Note 2 for additional information on the sale of our ownership interest in CCA.
+Added: During the three months ended April 1, 2022, the Company recognized a net loss of $ 104 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities and a net loss of $ 24 million as a result of one of our equity method investees issuing additional shares of its stock.
+Added: Refer to Note 2 for additional information on the refranchising of our bottling operations in Vietnam.
Refer to Note 4 for additional information on equity and debt securities.
−Removed: 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.
+Added: Refer to Note 16 for additional information on one of our equity method investees issuing additional shares of its stock.
Refer to Note 17 for the impact these items had on our operating segments and Corporate.
RESTRUCTURING
+Added: Productivity and Reinvestment Program
In February 2012, the Company announced a productivity and reinvestment program designed to strengthen our brands and reinvest our resources to drive long-term profitable growth.
1 unchanged sentence
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.
−Removed: 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.
+Added: During the three months ended March 31, 2023 and April 1, 2022, the Company incurred expenses of $ 27 million and $ 10 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.
1 unchanged sentence
The Company has incurred total pretax expenses of $ 4,156 million related to this program since it commenced.
+Added: North America Operating Unit Restructuring
+Added: In November 2022, the Company announced a restructuring program for our North America operating unit designed to better align its operating structure with its customers and bottlers.
+Added: The evolved operating structure will bring together all bottler- related components (franchise leadership, commercial leadership, digital, governance and technical innovation) and will help streamline how we work.
+Added: During the three months ended March 31, 2023, the Company incurred expenses of $ 18 million related to this program.
+Added: These expenses primarily included severance costs related to the program and were recorded in the line item other operating charges in our consolidated statement of income.
+Added: Refer to Note 17 for the impact these expenses had on our operating segments and Corporate.
+Added: The Company has incurred total pretax expenses of $ 56 million related to this program since it commenced.
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
3 unchanged sentences
Three Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
−Removed: 2021 September 30,
−Removed: 2022 October 1,
−Removed: Service cost $ 25 $ 25 $ 2 $ 2
−Removed: Interest cost 65 46 4 4
−Removed: Expected return on plan assets 1
−Removed: ( 132 ) ( 152 ) ( 4 ) ( 4 )
−Removed: Amortization of prior service credit — — — ( 1 )
−Removed: Amortization of net actuarial loss 26 34 — —
−Removed: Net periodic benefit cost (income) ( 16 ) ( 47 ) 2 1
−Removed: Settlement charges 2
−Removed: Total cost (income) $ ( 16 ) $ ( 26 ) $ 2 $ 1
−Removed: 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.
−Removed: 2 Settlement charges were primarily related to our strategic realignment initiatives.
−Removed: Pension Plans Other Postretirement
−Removed: Benefit Plans
−Removed: Nine Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
−Removed: 2021 September 30,
−Removed: 2022 October 1,
+Added: 2023 April 1,
+Added: 2022 March 31,
+Added: 2023 April 1,
Service cost $ 24 $ 22 $ 1 $ 2
3 unchanged sentences
Amortization of prior service credit — — ( 1 ) ( 1 )
−Removed: Amortization of net actuarial loss 84 114 — 1
+Added: Amortization of net actuarial loss (gain) 24 29 ( 1 ) —
Net periodic benefit cost (income) $ 10 $ ( 47 ) $ 2 $ 1
−Removed: Settlement charges 2
−Removed: Total cost (income) $ ( 108 ) $ ( 25 ) $ 4 $ 4
1 The weighted-average expected long-term rates of return on plan assets used in computing 2023 net periodic benefit cost (income) were 7.00 percent for pension plans and 3.75 percent for other postretirement benefit plans.
−Removed: 2 Settlement charges were primarily related to our strategic realignment initiatives.
−Removed: All of the amounts in the tables above, other than service cost, were recorded in the line item other income (loss) — net in our consolidated statements of income.
−Removed: During the nine months ended September 30, 2022, the Company contributed $ 24 million to our pension trusts, and we anticipate making additional contributions of approximately $ 5 million during the remainder of 2022.
−Removed: The Company contributed $ 22 million to our pension trusts during the nine months ended October 1, 2021.
−Removed: The 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: All of the amounts in the table above, other than service cost, were recorded in the line item other income (loss) — net in our consolidated statements of income.
+Added: During the three months ended March 31, 2023, the Company contributed $ 5 million to our pension trusts, and we anticipate making additional contributions of approximately $ 37 million during the remainder of 2023.
+Added: The Company contributed $ 3 million to our pension trusts during the three months ended April 1, 2022.
+Added: The Company recorded income taxes of $ 940 million ( 23.2 percent effective tax rate) and $ 665 million ( 19.2 percent effective tax rate) during the three months ended March 31, 2023 and April 1, 2022, respectively.
+Added: The Company’s effective tax rates for the three months ended March 31, 2023 and April 1, 2022 vary from the statutory U.S.
+Added: federal tax rate of 21.0 percent primarily due to the tax impact of significant operating and nonoperating items, as described in Note 12, 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.
+Added: federal tax rate.
On November 18, 2020, the Tax Court issued the Opinion regarding the Company’s 2015 litigation with the IRS involving transfer pricing tax adjustments in which the court predominantly sided with the IRS.
The Company strongly disagrees with the Opinion and intends to vigorously defend its position.
−Removed: Refer to Note 8.
+Added: Refer to Note 9 for additional information on the tax litigation.
FAIR VALUE MEASUREMENTS
1 unchanged sentence
The following tables summarize assets and liabilities measured at fair value on a recurring basis (in millions):
−Removed: September 30, 2022 Level 1 Level 2 Level 3 Other 3
+Added: March 31, 2023 Level 1 Level 2 Level 3 Other 3
Equity securities with readily determinable values 1
13 unchanged sentences
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.
−Removed: 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.
+Added: There were 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.
−Removed: 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.
−Removed: 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.
+Added: 5 Represents the fair value of the remaining milestone payment related to our acquisition of fairlife in 2020, which is contingent on fairlife achieving certain financial targets through 2024 and, if achieved, is payable in 2025.
+Added: This milestone payment is based on agreed-upon formulas related to fairlife’s operating results, the resulting value of which is not subject to a ceiling.
The fair value was determined using a Monte Carlo valuation model.
−Removed: 6 The Company has the right to reclaim $ 1,325 million in cash collateral it has netted against its derivative positions.
−Removed: 7 The Company’s derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows:
−Removed: $ 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 .
+Added: The Company made a milestone payment of $ 275 million during the three months ended March 31, 2023.
+Added: 6 The Company is not obligated to return any cash collateral it has netted against its derivative position.
+Added: 7 The Company has the right to reclaim $ 1,406 million in cash collateral it has netted against its derivative position.
+Added: 8 The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows:
+Added: $ 34 million in the line item other noncurrent assets and $ 177 million in the line item other noncurrent liabilities .
Refer to Note 6 for additional information related to the composition of our derivatives portfolio.
16 unchanged sentences
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.
−Removed: 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.
+Added: There were 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.
2 unchanged sentences
The fair value was determined using a Monte Carlo valuation model.
−Removed: 6 The Company is obligated to return $ 331 million in cash collateral it has netted against its derivative positions.
−Removed: 7 The Company does not have the right to reclaim any cash collateral it has netted against its derivative positions.
−Removed: 8 The Company’s derivative financial instruments are recorded at fair value in our consolidated balance sheet as follows:
+Added: 6 The Company was not obligated to return any cash collateral it had netted against its derivative position.
+Added: 7 The Company had the right to reclaim $ 1,447 million in cash collateral it had netted against its derivative position.
+Added: 8 The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows:
$ 14 million in the line item other noncurrent assets and $ 288 million in the line item other noncurrent liabilities.
Refer to Note 6 for additional information related to the composition of our derivatives portfolio.
−Removed: 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.
+Added: Gross realized and unrealized gains and losses on Level 3 assets and liabilities, excluding the contingent consideration liability, were not significant for the three months ended March 31, 2023 and April 1, 2022.
The Company recognizes transfers between levels within the hierarchy as of the beginning of the reporting period.
−Removed: Gross transfers between levels within the hierarchy were not significant for the three and nine months ended September 30, 2022 and October 1, 2021.
+Added: Gross transfers between levels within the hierarchy were not significant for the three months ended March 31, 2023 and April 1, 2022.
Nonrecurring Fair Value Measurements
−Removed: The gains and losses on assets measured at fair value on a nonrecurring basis are summarized in the following table (in millions):
−Removed: Gains (Losses)
−Removed: Three Months Ended Nine Months Ended
−Removed: September 30,
−Removed: 2022 October 1,
−Removed: 2021 September 30,
−Removed: 2022 October 1,
−Removed: Assets held for sale $ — $ ( 266 ) 2
−Removed: $ — $ ( 266 ) 2
−Removed: Other-than-temporary impairment charges — — ( 96 ) 3
−Removed: Impairment of intangible assets ( 57 ) 1
−Removed: Valuation of shares in equity method investee — — ( 24 ) 4
−Removed: Total $ ( 57 ) $ ( 266 ) $ ( 177 ) $ ( 266 )
−Removed: 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.
−Removed: The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs.
−Removed: 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.
−Removed: 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.
−Removed: These charges, which were calculated based on Level 3 inputs, primarily impacted the line item property, plant and equipment in our consolidated balance sheet.
−Removed: 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.
−Removed: This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results.
−Removed: 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.
+Added: We did not recognize any gains or losses on assets measured at fair value on a nonrecurring basis during the three months ended March 31, 2023.
+Added: We recognized a net loss of $ 24 million on assets measured at fair value on a nonrecurring basis during the three months ended April 1, 2022.
The net loss was recorded as a result of an equity method investee issuing additional shares of its stock.
2 unchanged sentences
Other Fair Value Disclosures
−Removed: The carrying values of cash and cash equivalents;
−Removed: short-term investments;
−Removed: trade accounts receivable;
−Removed: accounts payable and accrued expenses;
−Removed: and loans and notes payable approximate their fair values because of the relatively short-term maturities of these financial instruments.
+Added: 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.
−Removed: 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.
+Added: As of March 31, 2023, the carrying value and fair value of our long-term debt, including the current portion, were $ 36,945 million and $ 32,711 million, respectively.
As of December 31, 2022, the carrying value and fair value of our long-term debt, including the current portion, were $ 36,776 million and $ 32,698 million, respectively.
5 unchanged sentences
Investments Corporate Eliminations Consolidated
−Removed: As of and for the Three Months Ended September 30, 2022
+Added: As of and for the Three Months Ended March 31, 2023
Net operating revenues:
7 unchanged sentences
21,925 — 78,323
−Removed: 20,480 — 74,166
Investments 1
401 681 15 77 — 13,200 4,707 — 19,081
−Removed: As of and for the Three Months
−Removed: Ended October 1, 2021
+Added: As of and for the Three Months Ended April 1, 2022
Net operating revenues:
7 unchanged sentences
17,564 — 75,078
−Removed: 22,004 — 71,425
Investments 1
4 unchanged sentences
$ 19,158 $ — $ 73,998
−Removed: $ 19,964 $ — $ 75,938
Investments 1
1 unchanged sentence
1 Principally equity method investments and other investments in bottling companies.
−Removed: 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.
−Removed: 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.
−Removed: During the three months ended September 30, 2022, the results of our operating segments and Corporate were impacted by the following items:
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 57 million for Asia Pacific due to the impairment of a trademark.
−Removed: Refer to Note 15.
−Removed: • 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.
+Added: 2 Property, plant and equipment — net in the Philippines represented 10 percent of consolidated property, plant and equipment — net as of March 31, 2023, April 1, 2022 and December 31, 2022.
+Added: During the three months ended March 31, 2023, the results of our operating segments and Corporate were impacted by the following items:
+Added: • Operating income (loss) and income (loss) before income taxes were reduced by $ 62 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.
Refer to Note 16.
1 unchanged sentence
Refer to Note 13.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 15 million for Corporate related to our acquisition of BodyArmor in 2021.
+Added: • Operating income (loss) and income (loss) before income taxes were reduced by $ 18 million for North America due to the restructuring of our North America operating unit.
Refer to Note 13.
• Operating income (loss) and income (loss) before income taxes were reduced by $ 6 million for North America due to the restructuring of our manufacturing operations in the United States.
−Removed: • 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.
−Removed: Refer to Note 4.
−Removed: • 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.
−Removed: During the three months ended October 1, 2021, the results of our operating segments and Corporate were impacted by the following items:
−Removed: • 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.
+Added: • Operating income (loss) and income (loss) before income taxes were reduced by $ 4 million for Corporate due to charges related to our acquisition of BodyArmor.
Refer to Note 12.
−Removed: • 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.
+Added: • Income (loss) before income taxes was increased by $ 439 million for Corporate due to the refranchising of our bottling operations in Vietnam.
Refer to Note 2.
−Removed: • 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.
+Added: • Income (loss) before income taxes was increased by $ 113 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.
−Removed: • 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.
−Removed: • 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.
+Added: • Income (loss) before income taxes was reduced by $ 140 million for Asia Pacific and was increased by $ 58 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.
+Added: During the three months ended April 1, 2022, the results of our operating segments and Corporate were impacted by the following items:
+Added: • Operating income (loss) and income (loss) before income taxes were increased by $ 19 million for North America and were reduced by $ 14 million for Corporate related to our acquisition of BodyArmor.
Refer to Note 12.
−Removed: • 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.
−Removed: Europe, Middle East & Africa Latin
−Removed: America North
−Removed: America Asia Pacific Global Ventures Bottling
−Removed: Investments Corporate Eliminations Consolidated
−Removed: Nine Months Ended September 30, 2022
−Removed: Net operating revenues:
−Removed: Third party $ 5,523 $ 3,621 $ 11,815 $ 3,837 $ 2,103 $ 5,903 $ 77 $ — $ 32,879
−Removed: Intersegment 481 — 6 567 — 6 — ( 1,060 ) —
−Removed: Total net operating revenues 6,004 3,621 11,821 4,404 2,103 5,909 77 ( 1,060 ) 32,879
−Removed: Operating income (loss) 3,344 2,146 2,978 2,006 162 352 ( 2,154 ) — 8,834
−Removed: Income (loss) before income taxes 3,326 2,152 3,002 2,025 173 1,312 ( 2,804 ) — 9,186
−Removed: Nine Months Ended October 1, 2021
−Removed: Net operating revenues:
−Removed: Third party $ 5,094 $ 3,113 $ 9,793 $ 3,811 $ 2,030 $ 5,292 $ 58 $ — $ 29,191
−Removed: Intersegment 461 — 4 468 — 7 1 ( 941 ) —
−Removed: Total net operating revenues 5,555 3,113 9,797 4,279 2,030 5,299 59 ( 941 ) 29,191
−Removed: Operating income (loss) 2,990 1,942 2,610 2,046 215 314 ( 1,481 ) — 8,636
−Removed: Income (loss) before income taxes 3,049 1,952 2,405 2,078 221 1,201 ( 1,441 ) — 9,465
−Removed: 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 $ 22 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.
Refer to Note 16.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 57 million for Asia Pacific due to the impairment of a trademark.
−Removed: Refer to Note 15.
−Removed: • 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.
−Removed: Refer to Note 12.
• Operating income (loss) and income (loss) before income taxes were reduced by $ 11 million and $ 12 million, respectively, for North America due to the restructuring of our manufacturing operations in the United States.
−Removed: • 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.
+Added: • Operating income (loss) and income (loss) before income taxes were reduced by $ 10 million for Corporate due to the Company’s productivity and reinvestment program.
Refer to Note 13.
+Added: • Income (loss) before income taxes was increased by $ 5 million for Bottling Investments due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
• Income (loss) before income taxes was reduced by $ 104 million for Corporate 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.
−Removed: • 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.
−Removed: Refer to Note 15.
−Removed: • 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 16.
−Removed: During the nine months ended October 1, 2021, the results of our operating segments and Corporate were impacted by the following items:
−Removed: • 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.
−Removed: Refer to Note 15.
−Removed: • 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.
−Removed: Refer to Note 12.
−Removed: • 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.
−Removed: • 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.
−Removed: Refer to Note 15.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 14 million for Corporate due to tax litigation expense.
−Removed: Refer to Note 8.
−Removed: • 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.
−Removed: Refer to Note 2.
−Removed: • 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.
−Removed: Refer to Note 4.
−Removed: • 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.
−Removed: Refer to Note 2.
−Removed: • Income (loss) before income taxes was reduced by $ 650 million for Corporate due to charges associated with the extinguishment of long-term debt.
−Removed: • 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.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.