3 unchanged sentences
(In millions except per share data)
−Removed: Three Months Ended Nine Months Ended
−Removed: September 29,
−Removed: 2023 September 30,
−Removed: 2022 September 29,
−Removed: 2023 September 30,
+Added: Three Months Ended
+Added: 2024 March 31,
Net Operating Revenues $ 11,300 $ 10,980
25 unchanged sentences
(In millions)
−Removed: Three Months Ended Nine Months Ended
−Removed: September 29,
−Removed: 2023 September 30,
−Removed: 2022 September 29,
−Removed: 2023 September 30,
+Added: Three Months Ended
+Added: 2024 March 31,
Consolidated Net Income $ 3,185 $ 3,113
6 unchanged sentences
Comprehensive income (loss) attributable to noncontrolling interests ( 16 ) ( 69 )
−Removed: Total Comprehensive Income Attributable to Shareowners
−Removed: of The Coca-Cola Company
−Removed: $ 2,289 $ 1,757 $ 8,821 $ 5,972
+Added: Total Comprehensive Income Attributable to Shareowners of The Coca-Cola Company $ 2,948 $ 3,680
Refer to Notes to Consolidated Financial Statements.
2 unchanged sentences
(In millions except par value)
−Removed: September 29,
2024 December 31,
44 unchanged sentences
(In millions)
−Removed: Nine Months Ended
−Removed: September 29,
−Removed: 2023 September 30,
+Added: Three Months Ended
+Added: 2024 March 31,
Operating Activities
Consolidated net income $ 3,185 $ 3,113
+Added: Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization 262 286
19 unchanged sentences
Financing Activities
−Removed: Issuances of debt 6,013 4,351
−Removed: Payments of debt ( 4,794 ) ( 3,761 )
+Added: Issuances of loans, notes payable and long-term debt 2,285 4,074
+Added: Payments of loans, notes payable and long-term debt ( 1,366 ) ( 1,174 )
Issuances of stock 290 229
4 unchanged sentences
Effect of Exchange Rate Changes on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents
−Removed: ( 36 ) ( 392 )
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 29, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023.
+Added: Operating results for the three months ended March 29, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.
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 2023 and the third quarter of 2022 ended on September 29, 2023 and September 30, 2022, respectively.
+Added: The first quarter of 2024 and the first quarter of 2023 ended on March 29, 2024 and March 31, 2023, 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 in 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, and when applicable, cash and cash equivalents related to assets held for sale are included in the line item prepaid expenses and other current assets in our consolidated balance sheets.
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.
+Added: Refer to Note 2 for additional information on our assets held for sale and Note 4 for additional information on our captive insurance companies.
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 29,
2024 December 31,
2 unchanged sentences
Cash, cash equivalents, restricted cash and restricted cash equivalents $ 10,818 $ 9,692
−Removed: 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.
−Removed: 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.
−Removed: Refer to Note 2.
−Removed: September 30,
2023 December 31,
2 unchanged sentences
Cash, cash equivalents, restricted cash and restricted cash equivalents $ 12,280 $ 9,825
−Removed: 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.
−Removed: 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: Recently Issued Accounting Guidance
+Added: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280):
+Added: Improvements to Reportable Segment Disclosures , which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses.
+Added: The expanded annual disclosures are effective for the year ending December 31, 2024, and the expanded interim disclosures are effective in 2025 and will be applied retrospectively to all prior periods presented.
+Added: The Company is currently evaluating the impact that ASU 2023-07 will have on our consolidated financial statements.
+Added: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):
+Added: Improvements to Income Tax Disclosures , which requires, among other things, additional disclosures primarily related to the income tax rate reconciliation and income taxes paid.
+Added: The expanded annual disclosures are effective for the year ending December 31, 2025.
+Added: The Company is currently evaluating the impact that ASU 2023-09 will have on our consolidated financial statements and whether we will apply the standard prospectively or retrospectively.
ACQUISITIONS AND DIVESTITURES
−Removed: Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 45 million and $ 40 million during the nine months ended September 29, 2023 and September 30, 2022, respectively.
−Removed: Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the nine months ended September 29, 2023 and September 30, 2022 totaled $ 327 million and $ 229 million, respectively, which primarily related to sales of our ownership interests in certain equity method investees.
+Added: Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 8 million and $ 20 million during the three months ended March 29, 2024 and March 31, 2023, respectively.
+Added: Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the three months ended March 29, 2024 totaled $ 2,893 million, which primarily related to the refranchising of the Company’s bottling operations that were classified as held for sale as of December 31, 2023.
+Added: Also included was the sale of our ownership interest in an equity method investee in Thailand for which we received cash proceeds of $ 728 million and recognized a net gain of $ 516 million, which was recorded in the line item other income (loss) — net in our consolidated statement of income.
+Added: Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the three months ended March 31, 2023 totaled $ 319 million, which primarily related to the sale of our ownership interest in an equity method investee in Indonesia to Coca-Cola Europacific Partners plc (“CCEP”), an equity method investee, for which we received cash proceeds of $ 302 million and recognized a net gain of $ 12 million.
+Added: The Company also refranchised its bottling operations in Vietnam in January 2023 and recognized a net gain of $ 439 million as a result of the sale.
+Added: The Company received the related cash proceeds of $ 823 million in December 2022.
+Added: These gains were recorded in the line item other income (loss) — net in our consolidated statement of income.
Assets and Liabilities Held for Sale
−Removed: As of September 29, 2023, the Company’s bottling operations in the Philippines and Bangladesh met the criteria to be classified as held for sale.
−Removed: As of December 31, 2022, the Company’s bottling operations in Vietnam met the criteria to be classified as held for sale.
+Added: As of December 31, 2023, the Company’s bottling operations in the Philippines, Bangladesh and certain territories in India met the criteria to be classified as held for sale.
As a result, we were required to record the related 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: In December 2022, the Company received cash proceeds of $ 823 million in advance of refranchising its bottling operations in Vietnam.
−Removed: This advance was included in the line item accounts payable and accrued expenses in our consolidated balance sheet as of December 31, 2022.
−Removed: 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 during the nine months ended September 29, 2023.
−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 29,
+Added: The Company refranchised its bottling operations in certain territories in India in January and February of 2024, for which we received net cash proceeds of $ 476 million and recognized a net gain of $ 293 million.
+Added: The Company refranchised its bottling operations in Bangladesh to Coca-Cola İçecek A.Ş.
+Added: (“CCI”), an equity method investee, in February 2024, for which we received net cash proceeds of $ 27 million and a note receivable of $ 29 million and recognized a net loss of $ 18 million, primarily due to the related reversal of cumulative translation adjustments.
+Added: Additionally, in February 2024, the Company refranchised its bottling operations in the Philippines to CCEP and a local business partner, for which we received net cash proceeds of $ 1,656 million and recognized a net gain of $ 599 million.
+Added: These gains and losses were 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, 2023
8 unchanged sentences
Property, plant and equipment — net 1,267
−Removed: Goodwill 226 34
Other intangible assets 14
3 unchanged sentences
Accrued income taxes 24
+Added: Long-term debt 2
Other noncurrent liabilities 108
2 unchanged sentences
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 29, 2023
−Removed: Concentrate operations $ 2,410 $ 4,802 $ 7,212
−Removed: Finished product operations 2,001 2,740 4,741
−Removed: Total $ 4,411 $ 7,542 $ 11,953
−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
+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 29, 2023
+Added: Three Months Ended March 29, 2024
Concentrate operations $ 2,125 $ 4,530 $ 6,655
1 unchanged sentence
Total $ 4,118 $ 7,182 $ 11,300
−Removed: Nine Months Ended September 30, 2022
+Added: Three Months Ended March 31, 2023
Concentrate operations $ 1,989 $ 4,344 $ 6,333
5 unchanged sentences
Fair Value with Changes Recognized in Income Measurement Alternative — No Readily Determinable Fair Value
−Removed: September 29, 2023
+Added: March 29, 2024
Marketable securities $ 373 $ —
9 unchanged sentences
Three Months Ended
−Removed: September 29,
−Removed: 2023 September 30,
−Removed: Net gains (losses) recognized during the period related to equity securities $ ( 61 ) $ ( 38 )
−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: $ ( 70 ) $ 57
−Removed: Nine Months Ended
−Removed: September 29,
−Removed: 2023 September 30,
+Added: 2024 March 31,
Net gains (losses) recognized during the period related to equity securities $ 183 $ 125
3 unchanged sentences
still held at the end of the period
−Removed: $ 160 $ ( 49 )
Debt Securities
2 unchanged sentences
Cost Gains Losses
−Removed: September 29, 2023
+Added: March 29, 2024
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 29, 2023 December 31, 2022
+Added: March 29, 2024 December 31, 2023
Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities
3 unchanged sentences
Total debt securities $ 44 $ 1,520 $ 41 $ 1,134
−Removed: The contractual maturities of these available-for-sale debt securities as of September 29, 2023 were as follows (in millions):
+Added: The contractual maturities of these available-for-sale debt securities as of March 29, 2024 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 29,
−Removed: 2023 September 30,
−Removed: 2022 September 29,
−Removed: 2023 September 30,
+Added: Three Months Ended
+Added: 2024 March 31,
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 $ 1,484 million and $ 1,378 million as of September 29, 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.
+Added: This captive’s solvency capital funds included total equity and debt securities of $ 1,679 million and $ 1,643 million as of March 29, 2024 and December 31, 2023, 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 29,
2024 December 31,
7 unchanged sentences
Derivatives Designated as Hedging Instruments Balance Sheet Location 1
−Removed: September 29,
2024 December 31,
1 unchanged sentence
Foreign currency contracts Other noncurrent assets 27 13
−Removed: Interest rate contracts Prepaid expenses and other current assets 1 —
+Added: Interest rate contracts Other noncurrent assets 5 50
Total assets $ 172 $ 172
12 unchanged sentences
Derivatives Not Designated as Hedging Instruments Balance Sheet Location 1
−Removed: September 29,
2024 December 31, 2023
2 unchanged sentences
Commodity contracts Prepaid expenses and other current assets 7 5
−Removed: Commodity contracts Other noncurrent assets 3 —
+Added: Other derivative instruments Prepaid expenses and other current assets 1 4
Total assets $ 103 $ 103
25 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 of the United States and U.S.
+Added: dollar net cash inflows from sales outside the United States and U.S.
dollar net cash outflows from procurement activities will be adversely affected by fluctuations in foreign currency exchange rates.
−Removed: We enter into forward contracts and purchase foreign currency options and collars (principally euro, British pound sterling and Japanese yen) to hedge certain portions of forecasted cash flows denominated in foreign currencies.
+Added: We enter into forward contracts and purchase foreign currency options and collars (principally euro, British pound and Japanese yen) to hedge certain portions of forecasted cash flows denominated in foreign currencies.
When the U.S.
2 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 $ 8,157 million and $ 5,510 million as of September 29, 2023 and December 31, 2022, respectively.
+Added: The total notional values of derivatives that were designated and qualified for the Company’s foreign currency cash flow hedging program were $ 9,145 million and $ 9,408 million as of March 29, 2024 and December 31, 2023, 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 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 September 29, 2023 and December 31, 2022.
+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 29, 2024 and December 31, 2023.
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.
−Removed: These derivative instruments are designated as part of the Company’s commodity cash flow hedging program.
+Added: These derivative instruments were designated as part of the Company’s commodity cash flow hedging program.
The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of certain commodities.
−Removed: The total notional values of derivatives that were designated and qualified for this program were $ 75 million and $ 35 million as of September 29, 2023 and December 31, 2022, respectively.
+Added: The total notional values of derivatives that were designated and qualified for this program were $ 32 million and $ 54 million as of March 29, 2024 and December 31, 2023, respectively.
Our Company monitors our mix of short-term debt and long-term debt regularly.
We manage our risk to interest rate fluctuations through the use of derivative financial instruments.
−Removed: From time to time, the Company enters into interest rate swap agreements and designates these instruments as part of the Company’s interest rate cash flow hedging program.
+Added: From time to time, the Company has entered into interest rate swap agreements and has designated these instruments as part of the Company’s interest rate cash flow hedging program.
The objective of this hedging program is to mitigate the risk of adverse changes in benchmark interest rates on the Company’s future interest payments.
−Removed: The total notional value of derivatives that were designated and qualified for this program was $ 500 million as of September 29, 2023.
−Removed: As of December 31, 2022, 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):
+Added: The total notional values of derivatives that were designated and qualified for this program were $ 1,150 million and $ 750 million as of March 29, 2024 and December 31, 2023, respectively.
+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: Three Months Ended September 29, 2023
+Added: Three Months Ended March 29, 2024
Foreign currency contracts $ 48 Net operating revenues $ ( 17 )
3 unchanged sentences
Commodity contracts 1 Cost of goods sold ( 1 )
+Added: Interest rate contracts 1 Interest expense —
Total $ 46 $ ( 44 )
−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: in OCI Location of Gain (Loss) Recognized in Income Gain (Loss) Reclassified from AOCI into Income
−Removed: Nine Months Ended September 29, 2023
+Added: Three Months Ended March 31, 2023
Foreign currency contracts $ ( 36 ) Net operating revenues $ 1
3 unchanged sentences
Commodity contracts ( 2 ) Cost of goods sold ( 3 )
−Removed: Total $ 38 $ ( 39 )
−Removed: Nine Months Ended September 30, 2022
−Removed: Foreign currency contracts $ 475 Net operating revenues $ 148
−Removed: Foreign currency contracts 34 Cost of goods sold 13
−Removed: Foreign currency contracts — Interest expense ( 3 )
−Removed: Foreign currency contracts ( 175 ) Other income (loss) — net ( 171 )
−Removed: $ 334 $ ( 13 )
−Removed: As of September 29, 2023, the Company estimates that it will reclassify into earnings during the next 12 months net gains of $ 65 million from the pretax amount recorded in AOCI as the anticipated cash flows occur.
+Added: As of March 29, 2024, the Company estimates that it will reclassify into earnings during the next 12 months net losses of $ 17 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 $ 13,319 million and $ 13,425 million as of September 29, 2023 and December 31, 2022, 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 $ 12,958 million and $ 13,693 million as of March 29, 2024 and December 31, 2023, 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 29,
−Removed: 2023 September 30,
−Removed: Interest rate contracts Interest expense $ ( 103 ) $ ( 688 )
−Removed: Fixed-rate debt Interest expense 109 705
−Removed: Net impact of fair value hedging instruments $ 6 $ 17
−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 29,
−Removed: 2023 September 30,
+Added: 2024 March 31,
Interest rate contracts Interest expense $ ( 145 ) $ 208
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 29,
+Added: Balance Sheet Location of Hedged Items March 29,
2024 December 31,
−Removed: 2022 September 29,
+Added: 2023 March 29,
2024 December 31,
−Removed: 2022 September 29,
+Added: 2023 March 29,
2024 December 31,
12 unchanged sentences
Notional Values Gain (Loss) Recognized in OCI
−Removed: as of Three Months Ended Nine Months Ended
−Removed: September 29,
+Added: as of Three Months Ended
2024 December 31,
−Removed: 2022 September 29,
−Removed: 2023 September 30,
−Removed: 2022 September 29,
−Removed: 2023 September 30,
+Added: 2023 March 29,
+Added: 2024 March 31,
Foreign currency contracts $ — $ 150 $ 2 $ —
1 unchanged sentence
Total $ 11,624 $ 12,587 $ 274 $ ( 154 )
−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 29, 2023 and September 30, 2022.
−Removed: In addition, the Company did not have any ineffectiveness related to net investment hedges during the three and nine months ended September 29, 2023 and September 30, 2022.
+Added: The Company reclassified a gain of $ 3 million related to net investment hedges from AOCI into earnings during the three months ended March 29, 2024.
+Added: The Company did not reclassify any gains or losses during the three months ended March 31, 2023.
+Added: In addition, the Company did not have any ineffectiveness related to net investment hedges during the three months ended March 29, 2024 and March 31, 2023.
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.
−Removed: Although these derivatives are not designated and/or do not qualify for hedge accounting, they are effective economic hedges.
+Added: In addition to derivative instruments that have been designated and qualify for hedge accounting, the Company also uses certain derivatives as economic hedges of foreign currency, interest rate and commodity exposure.
+Added: Although these derivatives were not designated and/or did not qualify for hedge accounting, they are effective economic hedges.
The changes in the fair values of economic hedges are immediately recognized in earnings.
1 unchanged sentence
The changes in the fair values of economic hedges used to offset those monetary assets and liabilities are immediately recognized in earnings in the line item other income (loss) — net in our consolidated statement of income.
−Removed: In addition, we use foreign currency economic hedges to minimize the variability in cash flows associated with fluctuations in foreign currency exchange rates, including those related to certain acquisition and divestiture activities.
+Added: In addition, we use foreign currency economic hedges to minimize the variability in cash flows associated with fluctuations in foreign currency exchange rates, including those related
+Added: to certain acquisition and divestiture activities.
The changes in the fair values of economic hedges used to offset the variability in U.S.
dollar net cash flows are immediately recognized in earnings in the line items net operating revenues, cost of goods sold or other income (loss) — net in our consolidated statement of income, as applicable.
−Removed: The total notional values of derivatives related to our foreign currency economic hedges were $ 6,309 million and $ 4,902 million as of September 29, 2023 and December 31, 2022, respectively.
+Added: The total notional values of derivatives related to our foreign currency economic hedges were $ 6,023 million and $ 6,989 million as of March 29, 2024 and December 31, 2023, 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: As of September 29, 2023 and December 31, 2022, we did not have any interest rate contracts used as economic hedges.
+Added: As of March 29, 2024 and December 31, 2023, 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 $ 360 million and $ 336 million as of September 29, 2023 and December 31, 2022, 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 $ 305 million and $ 325 million as of March 29, 2024 and December 31, 2023, 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 29,
−Removed: 2023 September 30,
−Removed: Foreign currency contracts Net operating revenues $ 40 $ 16
−Removed: Foreign currency contracts Cost of goods sold ( 1 ) 21
−Removed: Foreign currency contracts Other income (loss) — net ( 15 ) 41
−Removed: Commodity contracts Cost of goods sold 40 ( 10 )
−Removed: Other derivative instruments Selling, general and administrative expenses ( 10 ) ( 17 )
−Removed: Total $ 54 $ 51
−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 29,
−Removed: 2023 September 30,
+Added: 2024 March 31,
Foreign currency contracts Net operating revenues $ 61 $ ( 7 )
16 unchanged sentences
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.
−Removed: As of September 29, 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 $ 1,434 million and $ 1,351 million, respectively.
+Added: As of March 29, 2024 and December 31, 2023, the amount of obligations outstanding that the Company has confirmed as valid to the financial institutions under the SCF program was $ 1,181 million and $ 1,421 million, respectively.
DEBT AND BORROWING ARRANGEMENTS
Loans and notes payable consist primarily of commercial paper issued in the United States.
−Removed: As of September 29, 2023 and December 31, 2022, we had $ 3,698 million and $ 2,146 million, respectively, in outstanding commercial paper borrowings.
−Removed: During the nine months ended September 29, 2023, our bottling operations in Africa extinguished prior to maturity U.S.
−Removed: dollar term loans with a total principal amount of $ 121 million, with variable interest rates ranging from the three-month LIBOR plus 2.950 % to the three-month LIBOR plus 3.000 %.
−Removed: Additionally, the bottling operations extinguished prior to maturity a U.S.
−Removed: dollar revolving facility of $ 40 million, with a variable interest rate of SOFR plus 2.344 %.
−Removed: During the nine months ended September 29, 2023, the Company also retired upon maturity fixed interest rate U.S.
−Removed: dollar debentures of $ 91 million due September 15, 2023 with an interest rate of 6.750 %.
+Added: As of March 29, 2024 and December 31, 2023, we had $ 5,722 million and $ 4,209 million, respectively, in outstanding commercial paper borrowings.
COMMITMENTS AND CONTINGENCIES
−Removed: As of September 29, 2023, we were contingently liable for guarantees of indebtedness owed by third parties of $ 1,153 million, of which $ 119 million was related to variable interest entities.
+Added: As of March 29, 2024, we were contingently liable for guarantees of indebtedness owed by third parties of $ 762 million, of which $ 85 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.
11 unchanged sentences
These uncertain tax matters may result in the assessment of additional taxes.
−Removed: On September 17, 2015, the Company received a Statutory Notice of Deficiency (“Notice”) from the U.S.
−Removed: Internal Revenue Service (“IRS”) seeking approximately $ 3.3 billion of additional federal income tax for years 2007 through 2009.
+Added: On September 17, 2015, the Company received a Statutory Notice of Deficiency (“Notice”) from the United States Internal Revenue Service (“IRS”) seeking approximately $ 3.3 billion of additional federal income tax for years 2007 through 2009.
In the Notice, the IRS stated its intent to reallocate over $ 9 billion of income to the U.S.
26 unchanged sentences
parent company in reliance upon the Closing Agreement should continue to be allowed to offset royalties, including those that would become payable to the Company in accordance with the Opinion.
−Removed: The Tax Court reserved ruling on the effect of Brazilian legal restrictions on the payment of royalties by the Company’s licensee in Brazil until after the Tax Court issues its opinion in the separate case of 3M Co.
−Removed: Commissioner, T.C.
−Removed: 5816-13 (filed March 11, 2013).
−Removed: The Tax Court issued its opinion in 3M Co.’s case (“3M Co.
−Removed: opinion”) on February 9, 2023.
−Removed: Once the Tax Court completes its analysis of the application of the 3M Co.
−Removed: 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.
+Added: On November 8, 2023, the Tax Court issued a supplemental opinion (together with the original Tax Court opinion, “Opinions”), siding with the IRS in concluding both that the blocked-income regulations apply to the Company’s operations and that the Tax Court opinion in 3M Co.
+Added: Commissioner (February 9, 2023) controlled as to the validity of those regulations.
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.
2 unchanged sentences
In determining the amount of tax reserve to be recorded as of December 31, 2020, the Company completed the required two-step evaluation process prescribed by Accounting Standards Codification 740, Accounting for Income Taxes .
−Removed: In doing so, we consulted with outside advisors, and we reviewed and considered relevant laws, rules, and regulations, including, but not limited to, the Opinion and relevant caselaw.
+Added: In doing so, we consulted with outside advisors, and we reviewed and considered relevant laws, rules, and regulations, including, but not limited to, the Opinions and relevant caselaw.
We also considered our intention to vigorously defend our positions and assert our various well-founded legal claims via every available avenue of appeal.
We concluded, based on the technical and legal merits of the Company’s tax positions, that it is more likely than not the Company’s tax positions will ultimately be sustained on appeal.
−Removed: In addition, we considered a number of alternative transfer pricing methodologies, including the methodology asserted by the IRS and affirmed in the Opinion (“Tax Court Methodology”), that could be applied by the courts upon final resolution of the litigation.
+Added: In addition, we considered a number of alternative transfer pricing methodologies, including the methodology asserted by the IRS and affirmed in the Opinions (“Tax Court Methodology”), that could be applied by the courts upon final resolution of the litigation.
Based on the required probability analysis, we determined the methodologies we believe the federal courts could ultimately order to be used in calculating the Company’s tax.
As a result of this analysis, we recorded a tax reserve of $ 438 million during the year ended December 31, 2020 related to the application of the resulting methodologies as well as the different tax treatment applicable to dividends originally paid to the U.S.
−Removed: 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 29, 2023.
+Added: parent company by its foreign licensees, in reliance upon the Closing Agreement, that would be recharacterized as royalties in accordance with the Opinions and the Company’s analysis.
+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 29, 2024.
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 29, 2023 to $ 432 million.
−Removed: 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.
+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 29, 2024 to $ 447 million.
+Added: While the Company strongly disagrees with the IRS’ positions and the portions of the Opinions 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 Opinions, assuming such methodology were to be ultimately upheld by the courts, and the IRS were to decide to apply that methodology to subsequent years, with consent of the federal courts.
This impact would include taxes and interest accrued through December 31, 2023 for the 2007 through 2009 litigated tax years and for subsequent tax years from 2010 through 2023.
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 29, 2023 would increase the potential aggregate incremental tax and interest liability by approximately $ 400 million
−Removed: and $ 1,200 million, respectively.
−Removed: 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 %.
−Removed: 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 of both opinions, after which the Tax Court would render a decision in the case.
+Added: The Company estimates the impact of the continued application of the Tax Court Methodology for the three months ended March 29, 2024 would increase the potential aggregate incremental tax and interest liability by approximately $ 500 million.
+Added: We currently project the continued application of the Tax Court Methodology in future years, assuming similar facts and circumstances as of December 31, 2023, would result in an incremental annual tax liability that would increase the Company’s effective tax rate by approximately 3.5 %.
+Added: The Company and the IRS are now in the process of agreeing on the tax impacts of the Opinions.
+Added: Subsequent to the completion of this process, the Tax Court will render a decision in the case.
The Company will have 90 days thereafter to file a notice of appeal to the U.S.
−Removed: 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 $ 5.6 billion (including interest accrued through September 29, 2023), plus any additional interest accrued through the time of payment.
−Removed: Some or all of this amount would be refunded if the Company were to prevail on appeal.
+Added: Court of Appeals for the Eleventh Circuit.
+Added: The IRS will then seek to collect, and the Company expects to pay, any additional tax related to the 2007 through 2009 tax years reflected in the Tax Court decision (and interest thereon).
+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 $ 5.9 billion (including interest accrued through March 29, 2024), plus any additional interest accrued through the time of payment.
+Added: Some or all of this amount, plus accrued interest, would be refunded if the Company were to prevail on appeal.
Risk Management Programs
3 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 $ 190 million and $ 199 million as of September 29, 2023 and December 31, 2022, respectively.
+Added: Our self-insurance reserves totaled $ 187 million and $ 197 million as of March 29, 2024 and December 31, 2023, respectively.
OTHER COMPREHENSIVE INCOME
−Removed: AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our consolidated balance sheet as a component of The Coca-Cola Company’s shareowners’ equity, which also includes our proportionate share of equity method investees’ AOCI.
+Added: AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our consolidated balance sheet as a component of shareowners’ equity, which also includes our proportionate share of equity method investees’ AOCI.
OCI attributable to noncontrolling interests is allocated to, and included in, our consolidated balance sheet as part of the line item equity attributable to noncontrolling interests.
AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions):
−Removed: September 29,
2024 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 29, 2023
+Added: Three Months Ended March 29, 2024
Shareowners of
5 unchanged sentences
Net gains (losses) on derivatives 1
−Removed: ( 39 ) — ( 39 )
Net change in unrealized gains (losses) on available-for-sale debt securities 2
4 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 29, 2023 Before-Tax Amount Income Tax After-Tax Amount
−Removed: Foreign currency translation adjustments:
−Removed: Translation adjustments arising during the period $ ( 508 ) $ 41 $ ( 467 )
−Removed: Gains (losses) on intra-entity transactions that are of a long-term investment nature ( 724 ) — ( 724 )
−Removed: Gains (losses) on net investment hedges arising during the period 1
−Removed: 384 ( 96 ) 288
−Removed: Net foreign currency translation adjustments $ ( 848 ) $ ( 55 ) $ ( 903 )
−Removed: Gains (losses) arising during the period $ 49 $ ( 20 ) $ 29
−Removed: Reclassification adjustments recognized in net income 36 ( 9 ) 27
−Removed: Net gains (losses) on derivatives 1
−Removed: $ 85 $ ( 29 ) $ 56
−Removed: Available-for-sale debt securities:
−Removed: Unrealized gains (losses) arising during the period $ ( 7 ) $ 2 $ ( 5 )
−Removed: Reclassification adjustments recognized in net income 3 ( 1 ) 2
−Removed: Net change in unrealized gains (losses) on available-for-sale debt securities 2
−Removed: $ ( 4 ) $ 1 $ ( 3 )
−Removed: Pension and other postretirement benefit liabilities:
−Removed: Net pension and other postretirement benefit liabilities arising during the period $ 27 $ 7 $ 34
−Removed: Reclassification adjustments recognized in net income 23 ( 5 ) 18
−Removed: Net change in pension and other postretirement benefit liabilities $ 50 $ 2 $ 52
−Removed: Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
−Removed: Company $ ( 717 ) $ ( 81 ) $ ( 798 )
−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 29, 2023 Before-Tax Amount Income Tax After-Tax Amount
+Added: Three Months Ended March 29, 2024 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
10 unchanged sentences
Available-for-sale debt securities:
−Removed: Unrealized gains (losses) arising during the period $ 6 $ ( 4 ) $ 2
Reclassification adjustments recognized in net income $ 6 $ ( 1 ) $ 5
9 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: 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
+Added: Three Months Ended March 31, 2023 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
24 unchanged sentences
Amount Reclassified from AOCI
−Removed: Description of AOCI Component Financial Statement Line Item Three Months Ended September 29, 2023 Nine Months Ended September 29, 2023
+Added: Description of AOCI Component Financial Statement Line Item Three Months Ended March 29, 2024
Foreign currency translation adjustments:
17 unchanged sentences
Pension and other postretirement benefit liabilities:
−Removed: Recognized net actuarial loss Other income (loss) — net $ 23 $ 68
+Added: Divestitures, deconsolidations and other 2
+Added: Other income (loss) — net $ ( 2 )
+Added: Recognized net actuarial loss (gain) Other income (loss) — net 25
Recognized prior service cost (credit) Other income (loss) — net ( 1 )
2 unchanged sentences
Consolidated net income $ 17
−Removed: 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: 1 Related to the refranchising of our bottling operations in the Philippines and Bangladesh and the sale of our ownership interest in an equity method investee in Thailand.
Refer to Note 2.
+Added: 2 Related to the refranchising of our bottling operations in the Philippines and Bangladesh.
+Added: Refer to Note 2.
CHANGES IN EQUITY
1 unchanged sentence
Shareowners of The Coca-Cola Company
−Removed: Three Months Ended September 29, 2023 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests
−Removed: June 30, 2023 4,324 $ 27,552 $ 72,695 $ ( 14,017 ) $ 1,760 $ 18,993 $ ( 53,418 ) $ 1,539
−Removed: Comprehensive income (loss) — 2,261 3,087 ( 798 ) — — — ( 28 )
−Removed: Dividends paid/payable to
−Removed: shareowners of The Coca-Cola
−Removed: Company ($ 0.46 per share)
−Removed: — ( 1,989 ) ( 1,989 ) — — — — —
−Removed: Dividends paid to noncontrolling
−Removed: — ( 3 ) — — — — — ( 3 )
−Removed: Purchases of treasury stock ( 2 ) ( 108 ) — — — — ( 108 ) —
−Removed: Impact related to stock-based
−Removed: compensation plans 2 120 — — — 88 32 —
−Removed: September 29, 2023 4,324 $ 27,833 $ 73,793 $ ( 14,815 ) $ 1,760 $ 19,081 $ ( 53,494 ) $ 1,508
−Removed: Shareowners of The Coca-Cola Company
−Removed: Nine Months Ended September 29, 2023 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 29, 2024 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests
December 31, 2023 4,308 $ 27,480 $ 73,782 $ ( 14,275 ) $ 1,760 $ 19,209 $ ( 54,535 ) $ 1,539
6 unchanged sentences
— ( 2 ) — — — — — ( 2 )
−Removed: Acquisition of interests held by
−Removed: noncontrolling owners — ( 22 ) — — — ( 20 ) — ( 2 )
−Removed: Purchases of treasury stock ( 18 ) ( 1,087 ) — — — — ( 1,087 ) —
−Removed: Impact related to stock-based
−Removed: compensation plans 14 476 — — — 282 194 —
−Removed: Other activities — — — — — ( 3 ) — 3
−Removed: September 29, 2023 4,324 $ 27,833 $ 73,793 $ ( 14,815 ) $ 1,760 $ 19,081 $ ( 53,494 ) $ 1,508
−Removed: 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)
−Removed: — ( 1,902 ) ( 1,902 ) — — — — —
−Removed: Dividends paid to noncontrolling
−Removed: interests — ( 13 ) — — — — — ( 13 )
+Added: Divestitures, deconsolidations and
+Added: other — ( 4 ) — — — — — ( 4 )
Purchases of treasury stock ( 10 ) ( 621 ) — — — — ( 621 ) —
1 unchanged sentence
compensation plans 10 252 — — — 112 140 —
−Removed: September 30, 2022 4,324 $ 24,436 $ 70,893 $ ( 15,869 ) $ 1,760 $ 18,687 $ ( 52,666 ) $ 1,631
+Added: March 29, 2024 4,308 $ 27,946 $ 74,868 $ ( 14,504 ) $ 1,760 $ 19,321 $ ( 55,016 ) $ 1,517
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
10 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
+Added: March 31, 2023 4,325 $ 26,868 $ 72,137 $ ( 14,322 ) $ 1,760 $ 18,889 $ ( 53,247 ) $ 1,651
SIGNIFICANT OPERATING AND NONOPERATING ITEMS
Other Operating Charges
−Removed: During the three months ended September 29, 2023, the Company recorded other operating charges of $ 359 million.
−Removed: These charges consisted of $ 296 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, LLC (“fairlife”) in 2020, $ 58 million related to the Company’s productivity and reinvestment program, $ 4 million for the amortization of noncompete agreements related to the BA Sports Nutrition, LLC (“BodyArmor”) acquisition in 2021 and $ 1 million related to tax litigation expense.
−Removed: During the nine months ended September 29, 2023, the Company recorded other operating charges of $ 1,808 million.
−Removed: These charges consisted of $ 1,620 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $ 109 million related to the Company’s productivity and reinvestment program and $ 35 million related to the discontinuation of certain manufacturing operations in Asia Pacific.
−Removed: In addition, other operating charges included $ 26 million related to the restructuring of our North America operating unit, $ 11 million for the amortization of noncompete agreements related to the BodyArmor acquisition and $ 7 million related to tax litigation expense.
−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 the fairlife acquisition, $ 27 million related to the Company’s productivity and reinvestment program, and $ 15 million related to the BodyArmor acquisition, 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, 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 2021.
+Added: During the three months ended March 29, 2024, the Company recorded other operating charges of $ 1,573 million.
+Added: These charges primarily consisted of $ 765 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, LLC (“fairlife”) in 2020, $ 760 million related to the impairment of our BodyArmor trademark and $ 36 million related to the Company’s productivity and reinvestment program.
+Added: In addition, other operating charges included $ 7 million for transaction costs related to the refranchising of our bottling operations in certain territories in India, $ 4 million for the amortization of noncompete agreements related to the BA Sports Nutrition, LLC (“BodyArmor”) acquisition in 2021 and $ 1 million related to tax litigation expense.
+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 the fairlife acquisition, $ 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 BodyArmor acquisition.
+Added: Refer to Note 2 for additional information on the refranchising of our bottling operations in certain territories in India.
Refer to Note 9 for additional information on the tax litigation.
Refer to Note 13 for additional information on the Company’s restructuring initiatives.
−Removed: Refer to Note 16 for additional information on the fairlife acquisition and on the impairment charge.
+Added: Refer to Note 16 for additional information on the fairlife acquisition and the BodyArmor impairment.
Refer to Note 17 for the impact these charges had on our operating segments and Corporate.
1 unchanged sentence
Equity Income (Loss) — Net
−Removed: During the three and nine months ended September 29, 2023, the Company recorded net charges of $ 48 million and $ 132 million, respectively.
−Removed: During the three and nine months ended September 30, 2022, the Company recorded net charges of $ 14 million and $ 44 million, respectively.
+Added: During the three months ended March 29, 2024 and March 31, 2023, the Company recorded net charges of $ 25 million and $ 82 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 29, 2023, the Company recognized a net loss of $ 119 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 29, 2023, the Company recognized a net gain of $ 439 million related to the refranchising of our bottling operations in Vietnam.
+Added: During the three months ended March 29, 2024, the Company recognized net gains of $ 599 million and $ 293 million related to the refranchising of our bottling operations in the Philippines and certain territories in India, respectively.
+Added: The Company also recognized a net gain of $ 516 million related to the sale of our ownership interest in an equity method investee in Thailand.
Additionally, the Company recognized a net gain of $ 178 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 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: Refer to Note 2 for additional information on the refranchising of our bottling operations in Vietnam.
+Added: The Company recorded a loss of $ 7 million related to post-closing adjustments for the refranchising of our bottling operations in Vietnam in 2023.
+Added: During the three months ended March 31, 2023, the Company recognized a net gain of $ 439 million related to the refranchising of our bottling operations in Vietnam.
+Added: 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.
+Added: Refer to Note 2 for additional information on the refranchising of our bottling operations, as well as the sale of our ownership interest in an equity method investee in Thailand.
Refer to Note 4 for additional information on equity and debt securities.
−Removed: Refer to Note 16 for additional information on the impairment charge and 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.
3 unchanged sentences
The program was expanded multiple times, with the last expansion occurring in April 2017.
−Removed: 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 29, 2023, the Company incurred expenses of $ 58 million and $ 109 million, respectively, and during the three and nine months ended September 30, 2022 incurred expenses of $ 27 million and $ 56 million, respectively, related to our productivity and reinvestment program.
+Added: The remaining initiatives included in this program, which are primarily designed to further simplify and standardize our organization, will be completed in 2024.
+Added: During the three months ended March 29, 2024 and March 31, 2023, the Company incurred expenses of $ 36 million and $ 27 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.
3 unchanged sentences
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.
−Removed: 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.
−Removed: During the nine months ended September 29, 2023, the Company incurred expenses of $ 26 million related to this program.
+Added: The evolved operating structure brought together all bottler-related components (franchise leadership, commercial leadership, digital, governance and technical innovation) and helped streamline how we work.
+Added: During the three months ended March 31, 2023, the Company incurred expenses of $ 18 million related to this program.
These expenses primarily included severance costs and were recorded in the line item other operating charges in our consolidated statement of income.
−Removed: Refer to Note 17 for the impact these expenses had on our operating segments and Corporate.
The Company has incurred total pretax expenses of $ 65 million related to this program since it commenced.
+Added: This restructuring program was complete as of December 31, 2023.
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
3 unchanged sentences
Three Months Ended
−Removed: September 29,
−Removed: 2023 September 30,
−Removed: 2022 September 29,
−Removed: 2023 September 30,
−Removed: Service cost $ 24 $ 25 $ 1 $ 2
−Removed: Interest cost 80 65 6 4
−Removed: Expected return on plan assets 1
−Removed: ( 119 ) ( 132 ) ( 3 ) ( 4 )
−Removed: Amortization of net actuarial loss (gain) 24 26 ( 1 ) —
−Removed: Net periodic benefit cost (income) $ 9 $ ( 16 ) $ 3 $ 2
−Removed: 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 % for pension plans and 3.75 % for other postretirement benefit plans.
−Removed: Pension Plans Other Postretirement
−Removed: Benefit Plans
−Removed: Nine Months Ended
−Removed: September 29,
−Removed: 2023 September 30,
−Removed: 2022 September 29,
−Removed: 2023 September 30,
+Added: 2024 March 31,
+Added: 2023 March 29,
+Added: 2024 March 31,
Service cost $ 27 $ 24 $ 1 $ 1
6 unchanged sentences
1 The weighted-average expected long-term rates of return on plan assets used in computing 2024 net periodic benefit cost (income) were 7.00 % for pension plans and 4.50 % for other postretirement benefit plans.
−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 29, 2023, the Company contributed $ 27 million to our pension trusts, and we anticipate making additional contributions of approximately $ 13 million during the remainder of 2023.
−Removed: The Company contributed $ 24 million to our pension trusts during the nine months ended September 30, 2022.
−Removed: The Company recorded income taxes of $ 454 million ( 12.8 % effective tax rate) and $ 622 million ( 18.1 % effective tax rate) during the three months ended September 29, 2023 and September 30, 2022, respectively.
−Removed: The Company recorded income taxes of $ 1,753 million ( 16.7 % effective tax rate) and $ 1,671 million ( 18.2 % effective tax rate) during the nine months ended September 29, 2023 and September 30, 2022, respectively.
−Removed: The Company’s effective tax rates for the three and nine months ended September 29, 2023 and September 30, 2022 vary from the statutory U.S.
+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 29, 2024, the Company contributed $ 6 million to our pension trusts, offset by a $ 44 million transfer of surplus international plan assets from pension trusts to general assets of the Company.
+Added: We anticipate making additional contributions of approximately $ 27 million during the remainder of 2024.
+Added: The Company contributed $ 5 million to our pension trusts during the three months ended March 31, 2023.
+Added: The Company recorded income taxes of $ 687 million ( 17.7 % effective tax rate) and $ 940 million ( 23.2 % effective tax rate) during the three months ended March 29, 2024 and March 31, 2023, respectively.
+Added: The Company’s effective tax rates for the three months ended March 29, 2024 and March 31, 2023 vary from the statutory U.S.
federal tax rate of 21.0 % 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.
federal tax rate.
−Removed: The Company’s effective tax rates for the three and nine months ended September 29, 2023 included $ 186 million and $ 311 million, respectively, of net tax benefits related to various discrete tax items, including return to provision adjustments and the net tax impact of agreed-upon audit issues.
−Removed: The Company’s effective tax rate for the nine months ended September 29, 2023 also included a tax benefit of $ 90 million related to a change in tax law in a certain foreign jurisdiction.
−Removed: 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.
−Removed: The Company strongly disagrees with the Opinion and intends to vigorously defend its position.
−Removed: Refer to Note 9 for additional information on the tax litigation.
+Added: 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 it predominantly sided with the IRS.
+Added: On November 8, 2023, the Tax Court issued a supplemental opinion, siding with the IRS in concluding both that the blocked-income regulations apply to the Company’s operations and that the Tax Court opinion in 3M Co.
+Added: Commissioner (February 9, 2023) controlled as to the validity of those regulations.
+Added: The Company strongly disagrees with the Opinions and intends to vigorously defend its position.
+Added: Refer to Note 9.
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 29, 2023 Level 1 Level 2 Level 3 Other 3
+Added: March 29, 2024 Level 1 Level 2 Level 3 Other 3
Equity securities with readily determinable values 1
17 unchanged sentences
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.
−Removed: The fair value was determined using a Monte Carlo valuation model.
−Removed: The Company made a milestone payment of $ 275 million during the nine months ended September 29, 2023.
+Added: The fair value was determined using discounted cash flow analyses.
+Added: We are required to remeasure this liability to fair value quarterly, with any changes in the fair value recorded in income until the final milestone payment is made.
6 The Company is not obligated to return any cash collateral it has netted against its derivative position.
22 unchanged sentences
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 was not obligated to return any cash collateral it had netted against its derivative position.
+Added: We are required to remeasure this liability to fair value quarterly, with any changes in the fair value recorded in income until the final milestone payment is made.
+Added: The Company made a milestone payment of $ 275 million during 2023.
+Added: 6 The Company was obligated to return $ 4 million in cash collateral it had netted against its derivative position.
7 The Company had the right to reclaim $ 1,039 million in cash collateral it had netted against its derivative position.
2 unchanged sentences
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, excluding the contingent consideration liability, were not significant for the three and nine months ended September 29, 2023 and September 30, 2022.
+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 29, 2024 and March 31, 2023.
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 29, 2023 and September 30, 2022.
+Added: Gross transfers between levels within the hierarchy were not significant for the three months ended March 29, 2024 and March 31, 2023.
Nonrecurring Fair Value Measurements
−Removed: During the nine months ended September 29, 2023, the Company recorded an asset impairment charge of $ 25 million related to the discontinuation of certain manufacturing operations in Asia Pacific.
−Removed: This impairment charge was derived using Level 3 inputs and was primarily driven by management’s best estimate of the potential proceeds from the disposal of the related assets.
−Removed: 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.
+Added: During the three months ended March 29, 2024, the Company recorded an asset impairment charge of $ 760 million related to our BodyArmor trademark in North America, which was primarily driven by revised projections of future operating results and higher discount rates resulting from changes in macroeconomic conditions since the acquisition date.
The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs.
−Removed: During the nine months ended September 30, 2022, the Company recorded an other-than-temporary impairment charge of $ 96 million 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: During the nine months ended September 30, 2022, we also recognized a net loss of $ 24 million on assets measured at fair value on a nonrecurring basis.
−Removed: The net loss was recorded as a result of an equity method investee issuing additional shares of its stock.
−Removed: Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment.
−Removed: This net loss was determined using Level 2 inputs and primarily resulted from the recognition of cumulative translation losses.
+Added: This charge was recorded in the line item other operating charges in our consolidated statement of income.
+Added: The remaining carrying value of the trademark is $ 3,400 million.
+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.
Other Fair Value Disclosures
2 unchanged sentences
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 29, 2023, the carrying value and fair value of our long-term debt, including the current portion, were $ 36,256 million and $ 31,895 million, respectively.
+Added: As of March 29, 2024, the carrying value and fair value of our long-term debt, including the current portion, were $ 36,496 million and $ 31,883 million, respectively.
As of December 31, 2023, the carrying value and fair value of our long-term debt, including the current portion, were $ 37,507 million and $ 33,445 million, respectively.
5 unchanged sentences
Investments Corporate Eliminations Consolidated
−Removed: As of and for the Three Months Ended September 29, 2023
+Added: As of and for the Three Months Ended March 29, 2024
Net operating revenues:
9 unchanged sentences
386 725 15 70 — 13,349 5,097 — 19,642
−Removed: As of and for the Three Months Ended September 30, 2022
+Added: As of and for the Three Months
+Added: Ended March 31, 2023
Net operating revenues:
16 unchanged sentences
1 Principally equity method investments and other investments in bottling companies.
−Removed: 2 Property, plant and equipment — net in India represented 12 % of consolidated property, plant and equipment — net as of September 29, 2023.
−Removed: 3 Property, plant and equipment — net in the Philippines represented 10 % of consolidated property, plant and equipment — net as of September 30, 2022 and December 31, 2022.
−Removed: As of September 29, 2023, the Company’s bottling operations in the Philippines met the criteria to be classified as held for sale.
+Added: 2 Property, plant and equipment — net in India represented 13 % and 12 % of consolidated property, plant and equipment — net as of March 29, 2024 and December 31, 2023, respectively.
+Added: 3 Property, plant and equipment — net in the Philippines represented 10 % of consolidated property, plant and equipment — net as of March 31, 2023.
+Added: As of December 31, 2023, the Company’s bottling operations in the Philippines met the criteria to be classified as held for sale.
Refer to Note 2.
−Removed: During the three months ended September 29, 2023, the results of our operating segments and Corporate were impacted by the following items:
+Added: During the three months ended March 29, 2024, 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 $ 765 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.
+Added: • Operating income (loss) and income (loss) before income taxes were reduced by $ 760 million for North America due to the impairment of our BodyArmor trademark.
+Added: Refer to Note 16.
• Operating income (loss) and income (loss) before income taxes were reduced by $ 36 million for Corporate due to the Company’s productivity and reinvestment program.
Refer to Note 13.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 4 million 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 reduced by $ 4 million for Corporate due to charges related to our acquisition of BodyArmor.
+Added: • Operating income (loss) and income (loss) before income taxes were reduced by $ 7 million for Corporate due to transaction costs related to the refranchising of our bottling operations in certain territories in India.
Refer to Note 2.
−Removed: • Income (loss) before income taxes was reduced by $ 119 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.
+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: • Income (loss) before income taxes was reduced by $ 6 million for Asia Pacific and $ 42 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 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.
+Added: • Income (loss) before income taxes was increased by $ 599 million for Corporate due to the refranchising of our bottling operations in the Philippines.
Refer to Note 2.
−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.
+Added: • Income (loss) before income taxes was increased by $ 516 million for Corporate related to the sale of our ownership interest in an equity method investee in Thailand.
Refer to Note 2.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 27 million for Corporate due to the Company’s productivity and reinvestment program.
+Added: • Income (loss) before income taxes was increased by $ 293 million for Corporate due to the refranchising of our bottling operations in certain territories in India.
Refer to Note 2.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 15 million for Corporate related to our acquisition of BodyArmor.
+Added: • Income (loss) before income taxes was increased by $ 178 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 $ 8 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.
+Added: • Income (loss) before income taxes was reduced by $ 23 million for Bottling Investments and $ 2 million for Corporate due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
+Added: • Income (loss) before income taxes was reduced by $ 7 million for Corporate related to post-closing adjustments for the refranchising of our bottling operations in Vietnam.
Refer to Note 2.
−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: 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 29, 2023
−Removed: Net operating revenues:
−Removed: Third party $ 5,883 $ 4,338 $ 12,728 $ 3,769 $ 2,251 $ 5,841 $ 95 $ — $ 34,905
−Removed: Intersegment 505 — 6 571 — 6 — ( 1,088 ) —
−Removed: Total net operating revenues 6,388 4,338 12,734 4,340 2,251 5,847 95 ( 1,088 ) 34,905
−Removed: Operating income (loss) 3,404 2,635 3,525 1,727 210 393 ( 2,856 ) — 9,038
−Removed: Income (loss) before income taxes 3,443 2,645 3,563 1,589 219 1,652 ( 2,641 ) — 10,470
−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: During the nine months ended September 29, 2023, the results of our operating segments and Corporate were impacted by the following items:
+Added: During the three months ended March 31, 2023, 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 $ 62 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.
1 unchanged sentence
• Operating income (loss) and income (loss) before income taxes were reduced by $ 27 million for Corporate due to the Company’s productivity and reinvestment program.
−Removed: Operating income (loss) and income (loss) before income taxes were increased by $ 1 million for North America due to the refinement of previously established accruals related to the Company’s productivity and reinvestment program.
Refer to Note 13.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 35 million for Asia Pacific due to the discontinuation of certain manufacturing operations.
• 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.
3 unchanged sentences
Refer to Note 12.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 7 million for Corporate related to tax litigation expense.
−Removed: Refer to Note 9.
• Income (loss) before income taxes was increased by $ 439 million for Corporate due to the refranchising of our bottling operations in Vietnam.
3 unchanged sentences
• 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.
−Removed: During the nine 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 $ 971 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 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 16.
−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 13.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 30 million and $ 31 million, respectively, for North America due to the restructuring of our manufacturing operations in the United States.
−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.
−Removed: Refer to Note 12.
−Removed: • Income (loss) before income taxes was reduced by $ 449 million for Corporate due to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities.
−Removed: 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 16.
−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.
−Removed: • 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.
−Removed: Refer to Note 16.
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.