11 unchanged sentences
Equity Method Investments
−Removed: Intangible Assets
Accounts Payable and Accrued Expenses
70 unchanged sentences
Equity method investments 18,087 19,671
−Removed: Other investments 118 501
−Removed: Other noncurrent assets 7,162 6,189
Deferred income tax assets 1,319 1,561
2 unchanged sentences
Goodwill 18,139 18,358
−Removed: Other intangible assets 516 635
+Added: Other noncurrent assets 13,403 7,796
Total Assets $ 100,549 $ 97,703
71 unchanged sentences
(In millions except per share data)
−Removed: Year Ended December 31, 2023 2022 2021
+Added: 2024 2023 2022
Equity Attributable to Shareowners of The Coca-Cola Company
14 unchanged sentences
Balance at beginning of year 73,782 71,019 69,094
−Removed: Adoption of accounting standards 1
Net income attributable to shareowners of The Coca-Cola Company 10,631 10,714 9,542
19 unchanged sentences
Acquisition of interests held by noncontrolling owners — ( 2 ) —
−Removed: Contributions by noncontrolling interests — — 20
+Added: Divestitures ( 4 ) — —
Other activities — 3 —
Total Equity Attributable to Noncontrolling Interests $ 1,516 $ 1,539 $ 1,721
−Removed: 1 Represents the adoption of Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes , effective January 1, 2021.
Refer to Notes to Consolidated Financial Statements.
11 unchanged sentences
and emerging beverages.
−Removed: We own and market several of the world’s largest nonalcoholic sparkling soft drink brands, including Coca-Cola, Sprite, Fanta, Coca-Cola Zero Sugar and Diet Coke/Coca-Cola Light.
+Added: We own and market several of the world’s largest nonalcoholic sparkling soft drink brands, including Coca-Cola, Sprite, Coca-Cola Zero Sugar, Fanta and Diet Coke/Coca-Cola Light.
Finished beverage products bearing our trademarks, sold in the United States since 1886, are now sold in more than 200 countries and territories.
67 unchanged sentences
Refer to Note 2.
−Removed: Short-Term Investments
We classify time deposits and other investments that have maturities of greater than three months but less than one year as short-term investments.
−Removed: Investments in Equity and Debt Securities
We measure all equity investments that do not result in consolidation and are not accounted for under the equity method at fair value with the change in fair value included in net income.
6 unchanged sentences
Refer to Note 4 for additional information on our policy for investments, which includes our assessment of impairments.
+Added: We invest in limited partnerships that receive tax credits and other tax benefits by constructing, owning and operating alternative energy generation facilities.
+Added: Investments of this nature are included in the line item other noncurrent assets in our consolidated balance sheet.
+Added: We generate a return through the receipt of tax credits, other tax benefits and cash distributions.
+Added: We have elected to apply the proportional amortization method (“PAM”) of accounting to these investments.
+Added: In accordance with PAM accounting, the Company amortizes the cost of its investments in the line item income taxes in our consolidated statement of income based on the proportion of the income tax benefits received during the period to the total income tax benefits expected to be received over the life of the investments.
+Added: The income tax credits and other income tax benefits earned reduce our income tax payments and are recorded in the line item net change in operating assets and liabilities in our consolidated statement of cash flows.
+Added: Refer to Note 15 for additional information on these investments.
Trade Accounts Receivable
10 unchanged sentences
The cash received from the financial institutions is classified within the operating activities section in our consolidated statement of cash flows.
−Removed: Inventories consist primarily of raw materials and packaging (which include ingredients and supplies) and finished goods (which include concentrates and syrups in our concentrate operations and finished beverages in our finished product operations).
+Added: Inventories consist primarily of raw materials and packaging (which include ingredients and supplies) and finished goods (which include concentrates and syrups in our concentrate operations and finished beverages in our finished product
Inventories are valued at the lower of cost or net realizable value.
24 unchanged sentences
Operating lease expense is recognized on a straight-line basis over the lease term in our consolidated statement of income.
−Removed: As most of our leases do not provide an implicit interest rate, we use our local incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments.
+Added: As the rates implicit in our leases are not readily determinable, we use our local incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments.
When our contracts contain lease and non-lease components, we account for both components as a single lease component.
39 unchanged sentences
Intangible assets that are deemed to have definite lives are amortized, primarily on a straight-line basis, over their useful lives, which is less than 20 years.
−Removed: Refer to Note 7.
When events or circumstances indicate that the carrying value of definite-lived intangible assets may not be recoverable, management performs a recoverability test of the carrying value by preparing estimates of sales volume and the resulting profit and cash flows expected to result from the use of the asset or asset group and its eventual disposition.
39 unchanged sentences
The fair value of restricted stock, restricted stock units and certain performance share units is the closing market price per share of the Company’s stock on the grant date less the present value of the expected dividends not received during the vesting period.
−Removed: The Company included a relative total shareowner return (“TSR”) modifier for performance share unit awards granted to executives from 2018 through 2022 as well as for performance share unit awards granted to all participants in 2023.
+Added: The Company included a relative total shareowner return (“TSR”) modifier for performance share unit awards granted to executives from 2019 through 2022 as well as for performance share unit awards granted to all participants starting in 2023.
For these awards, the number of performance share units earned based on the certified achievement of the predefined performance criteria will be reduced or increased if the Company’s total shareowner return over the performance period relative to a predefined group of companies falls outside of a predefined range.
37 unchanged sentences
Recently Issued Accounting Guidance
−Removed: In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280):
+Added: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280):
Improvements to Reportable Segment Disclosures , which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses.
−Removed: The expanded annual disclosures are effective for our year ending December 31, 2024, and the expanded interim disclosures are effective in 2025 and will be applied retrospectively to all prior periods presented.
−Removed: The Company is currently evaluating the impact that ASU 2023-07 will have on our consolidated financial statements.
+Added: The expanded annual disclosures are effective for our year ended December 31, 2024, and the expanded interim disclosures are effective in 2025 and will be applied retrospectively to all prior periods presented.
+Added: Refer to Note 20.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):
2 unchanged sentences
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.
+Added: In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) , which requires additional disclosures around specific expense categories in the notes to the financial statements.
+Added: The additional annual disclosures are effective for our year ending December 31, 2027, and the additional interim disclosures are effective in 2028.
+Added: These disclosures will be applied prospectively.
+Added: The Company is currently evaluating the impact that ASU 2024-03 will have on our consolidated financial statements.
ACQUISITIONS AND DIVESTITURES
−Removed: Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 62 million and $ 73 million during 2023 and 2022, respectively.
−Removed: During 2021, our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 4,766 million, which primarily related to the acquisition of the remaining ownership interest in BA Sports Nutrition, LLC (“BodyArmor”).
−Removed: BA Sports Nutrition, LLC
−Removed: In November 2021, the Company acquired the remaining 85 % ownership interest in, and now owns 100 % of, BodyArmor, which offers a line of sports performance and hydration beverages in the United States.
−Removed: We acquired the remaining ownership interest in exchange for approximately $ 5,600 million of cash, of which $ 4,745 million was paid at close, net of cash acquired.
−Removed: The purchase price reflected the contractual discount included in the purchase option we obtained with our initial investment in 2018.
−Removed: The remaining $ 860 million of the purchase price was held back related to indemnification obligations, of which $ 549 million had been paid as of December 31, 2022 and $ 311 million was paid in 2023.
−Removed: Upon consolidation, we recognized a gain of $ 834 million resulting from the remeasurement of our previously held equity interest in BodyArmor to fair value, which
−Removed: was recorded in the line item other income (loss) — net in our consolidated statement of income.
−Removed: The fair value of our previously held equity interest was determined using a discounted cash flow model based on Level 3 inputs, as defined in Note 17.
−Removed: Upon finalization of purchase accounting, $ 4.2 billion of the purchase price was allocated to the BodyArmor trademark and $ 2.2 billion was allocated to goodwill, of which $ 1.2 billion is tax deductible.
−Removed: The goodwill recognized as part of this acquisition is primarily related to the synergistic value created from leveraging the capabilities, assets and scale of the Company and the opportunity for international expansion.
−Removed: It also includes certain other intangible assets that do not qualify for separate recognition, such as an assembled workforce.
−Removed: Of the total amount allocated to goodwill, $ 1.9 billion has been assigned to the North America operating segment and $ 0.3 billion has been assigned to our other geographic operating segments.
−Removed: During 2023, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $ 430 million, which primarily related to sales of our ownership interests in our equity method investees in Indonesia and Pakistan, for which we received cash proceeds of $ 402 million and a note receivable of $ 200 million.
−Removed: We recognized a net gain of $ 94 million as a result of these transactions.
+Added: Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 315 million, $ 62 million and $ 73 million during 2024, 2023 and 2022, respectively.
+Added: In 2024, we invested $ 226 million in alternative energy limited partnerships.
+Added: Refer to Note 15 for additional information on these investments.
+Added: During 2024, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $ 3,485 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 net cash proceeds of $ 718 million and recognized a net gain of $ 506 million, including the impact of post-closing adjustments.
+Added: We also sold a portion of our interest in Coca-Cola Consolidated, Inc.
+Added: (“Coke Consolidated”), an equity method investee, to Coke Consolidated, for which we received cash proceeds of $ 554 million and recognized a net gain of $ 338 million.
+Added: Additionally, we refranchised our bottling operations in additional territories in India for which we received cash proceeds of $ 17 million and recognized a net gain of $ 13 million.
+Added: During 2023, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $ 430 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: Also included was the sale of our ownership interest in an equity method investee in Pakistan, for which we received cash proceeds of $ 100 million and a note receivable of $ 200 million.
+Added: We recognized a net gain of $ 82 million as a result of the sale.
During 2022, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $ 458 million, which primarily related to the refranchising of our bottling operations in Cambodia.
1 unchanged sentence
Also included was the sale of our ownership interest in one of our equity method investees, for which we received cash proceeds of $ 123 million and recognized a net gain of $ 13 million.
−Removed: During 2021, proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $ 2,180 million, which primarily related to the sale of our ownership interest in Coca-Cola Amatil Limited (“CCA”), an equity method investee, to Coca-Cola Europacific Partners plc (“CCEP”), also an equity method investee.
−Removed: We received cash proceeds of $ 1,738 million and recognized a net gain of $ 695 million as a result of the sale and the related reversal of cumulative translation adjustments.
−Removed: Also included were the sale of our ownership interest in an equity method investee and the sale of a portion of our ownership interest in another equity method investee.
−Removed: We received cash proceeds of $ 293 million and recognized a net gain of $ 114 million as a result of these sales.
−Removed: All of the gains and losses discussed above were recorded in the line item other income (loss) — net in our consolidated statements of income.
+Added: All of the gains discussed above were recorded in the line item other income (loss) — net in our consolidated statements of income.
Assets and Liabilities Held for Sale
−Removed: As of December 31, 2023, the Company’s bottling operations in the Philippines and Bangladesh and certain bottling operations in India met the criteria to be classified as held for sale and are expected to be refranchised during the first quarter of 2024.
−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, 2024, the Company’s bottling operations in certain territories in India 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, and was included in the line item other investing activities in our consolidated statement of cash flows for the year ended December 31, 2022.
+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 $ 474 million and recognized a net gain of $ 290 million, including the impact of post-closing adjustments.
+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 $ 1,652 million and recognized a net gain of $ 595 million, including the impact of post-closing adjustments.
+Added: These gains and losses were recorded in the line item other income (loss) — net in our consolidated statement of income.
+Added: In December 2022, the Company received cash proceeds of $ 823 million in advance of refranchising its bottling operations in Vietnam, which was included in the line item other investing activities in our consolidated statement of cash flows for the year ended December 31, 2022.
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 for the year ended December 31, 2023.
50 unchanged sentences
The total revenue recorded, including any variable consideration, cannot exceed the amount for which it is probable that a significant reversal will not occur when uncertainties related to variability are resolved.
−Removed: As a result, we are recognizing revenue based on our faithful depiction of the consideration that we expect to receive.
−Removed: In making our estimates of variable consideration, we consider past results and make significant assumptions related to:
+Added: As a result, we are recognizing revenue based on our best estimate of the consideration that we expect to receive.
+Added: In making our estimates of variable consideration, we consider past results and make assumptions related to:
(1) customer sales volumes;
52 unchanged sentences
Marketable securities $ 418 $ —
−Removed: Other investments 76 42
Other noncurrent assets 1,616 40
2 unchanged sentences
Marketable securities $ 345 $ —
−Removed: Other investments 459 42
Other noncurrent assets 1,661 42
8 unchanged sentences
Our debt securities consisted of the following (in millions):
−Removed: Gross Unrealized Estimated Fair Value
+Added: Gross Unrealized Estimated
Cost Gains Losses
78 unchanged sentences
Foreign currency contracts Other noncurrent assets 82 13
+Added: Commodity contracts Prepaid expenses and other current assets 2 —
Interest rate contracts Other noncurrent assets 27 50
53 unchanged sentences
The total notional values of derivatives that were designated and qualified for the Company’s foreign currency cash flow hedging program were $ 9,206 million and $ 9,408 million as of December 31, 2024 and 2023, respectively.
−Removed: 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 changes in foreign currency exchange rates.
+Added: The Company uses cross-currency swaps to hedge the changes in cash flows of certain of its foreign currency denominated debt and other monetary assets or liabilities due to fluctuations in foreign currency exchange rates.
For this hedging program, the Company recognizes in earnings each period the changes in carrying values of these foreign currency denominated assets and liabilities due to fluctuations in exchange rates.
The changes in fair values of the cross-currency swap derivatives are recorded in AOCI with an immediate reclassification into earnings for the changes in fair values attributable to fluctuations in foreign currency exchange rates.
−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 December 31, 2023 and 2022.
+Added: The total notional values of derivatives that were designated as cash flow hedges for the Company’s foreign currency denominated assets and liabilities were $ 557 million and $ 958 million as of December 31, 2024 and 2023, respectively.
The Company has entered into commodity futures contracts and other derivative instruments on various commodities to mitigate the price risk associated with forecasted purchases of materials used in our manufacturing process.
7 unchanged sentences
The total notional value of derivatives that were designated and qualified for the Company’s interest rate cash flow hedging program was $ 750 million as of December 31, 2023.
−Removed: There were no derivatives that were designated and qualified for the Company’s interest rate cash flow hedging program as of December 31, 2022.
+Added: As of December 31, 2024, we did not have any interest rate swaps designated as a cash flow hedge.
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):
6 unchanged sentences
Foreign currency contracts ( 18 ) Other income (loss) — net ( 45 )
+Added: Interest rate contracts ( 54 ) Interest expense ( 2 )
Commodity contracts 6 Cost of goods sold 1
10 unchanged sentences
Foreign currency contracts ( 91 ) Other income (loss) — net ( 79 )
−Removed: Interest rate contracts 110 Interest expense ( 90 )
Commodity contracts ( 4 ) Cost of goods sold ( 2 )
Total $ 127 $ 161
−Removed: As of December 31, 2023, the Company estimates that it will reclassify into earnings during the next 12 months net losses of $ 72 million from the pretax amount recorded in AOCI as the anticipated cash flows occur.
+Added: As of December 31, 2024, the Company estimates that it will reclassify into earnings during the next 12 months net gains of $ 241 million from the pretax amount recorded in AOCI as the anticipated cash flows occur.
Fair Value Hedging Strategy
30 unchanged sentences
1 Cumulative amount of fair value hedging adjustments does not include changes due to foreign currency exchange rate fluctuations.
−Removed: In June 2023, the Company amended the terms of its interest rate swap agreements to implement a forward-looking interest rate based on the Secured Overnight Financing Rate (“SOFR”) in place of the London Interbank Offered Rate (“LIBOR”).
+Added: In June 2023, the Company amended the terms of its interest rate swap agreements to implement a forward-looking interest rate based on the Secured Overnight Financing Rate in place of the London Interbank Offered Rate.
Since the interest rate swap agreements were affected by reference rate reform, the Company applied the expedients and exceptions provided to preserve the past presentation of its derivatives without de-designating the existing hedging relationships.
12 unchanged sentences
Total $ 13,280 $ 12,587 $ 844 $ ( 382 ) $ 741
+Added: The Company reclassified a gain of $ 3 million related to net investment hedges from AOCI into earnings during the year ended December 31, 2024.
The Company did not reclassify any gains or losses related to net investment hedges from AOCI into earnings during the years ended December 31, 2023 and 2022.
−Removed: The Company reclassified a loss of $ 4 million related to net investment hedges from AOCI into earnings during the year ended December 31, 2021.
In addition, the Company did not have any ineffectiveness related to net investment hedges during the years ended December 31, 2024, 2023 and 2022.
23 unchanged sentences
Commodity contracts Cost of goods sold ( 97 ) ( 137 ) ( 40 )
−Removed: Interest rate contracts Interest expense — — ( 187 )
Other derivative instruments Selling, general and administrative expenses 17 5 ( 21 )
−Removed: Other derivative instruments Other income (loss) — net — — ( 3 )
Total $ ( 20 ) $ ( 150 ) $ ( 13 )
3 unchanged sentences
Conversely, when we record our proportionate share of a net loss, it decreases equity income (loss) — net in our consolidated statement of income and our carrying value of that investment.
−Removed: The Company’s proportionate share of the net income or loss of our equity method investees includes significant operating and nonoperating items recorded by our equity method investees.
+Added: The Company’s proportionate share of the net income or loss of our equity method investees includes our proportionate share of significant operating and nonoperating items recorded by our equity method investees.
These items can have a significant impact on the amount of equity income (loss) — net in our consolidated statement of income and our carrying value of those investments.
35 unchanged sentences
Total payments, primarily related to marketing, made to equity method investees were $ 331 million, $ 294 million and $ 396 million in 2024, 2023 and 2022, respectively.
−Removed: The increase in net sales to equity method investees in 2023 was primarily due to volume growth and favorable pricing initiatives.
In addition, purchases of beverage products from equity method investees were $ 635 million, $ 579 million and $ 505 million in 2024, 2023 and 2022, respectively.
16 unchanged sentences
The amount of consolidated reinvested earnings that represents undistributed earnings of investments accounted for under the equity method as of December 31, 2024 was $ 8,594 million.
−Removed: INTANGIBLE ASSETS
−Removed: Indefinite-Lived Intangible Assets
−Removed: The following table presents the carrying values of indefinite-lived intangible assets included in our consolidated balance sheets (in millions):
−Removed: December 31, 2023 2022
−Removed: Trademarks $ 14,349 $ 14,214
−Removed: Goodwill 18,358 18,782
−Removed: Other 161 175
−Removed: Indefinite-lived intangible assets $ 32,868 $ 33,171
The following table provides information related to the carrying value of our goodwill by operating segment (in millions):
5 unchanged sentences
Effect of foreign currency translation ( 44 ) 6 — ( 11 ) 120 ( 264 ) ( 193 )
−Removed: Acquisitions — — — — — 4 4
−Removed: Purchase accounting adjustments — — 12 2 9 — 23
−Removed: Divestitures, deconsolidations
−Removed: and other — — — — ( 5 ) — ( 5 )
+Added: Divestitures 1
+Added: — — — — — ( 231 ) ( 231 )
Balance at end of year $ 1,153 $ 209 $ 10,677 $ 401 $ 2,828 $ 3,090 $ 18,358
1 unchanged sentence
Effect of foreign currency translation ( 66 ) ( 11 ) — ( 10 ) ( 41 ) ( 84 ) ( 212 )
−Removed: Divestitures, deconsolidations
+Added: Impairment charges — — — — — ( 6 ) ( 6 )
— — — — — ( 1 ) ( 1 )
2 unchanged sentences
Refer to Note 2.
−Removed: Definite-Lived Intangible Assets
−Removed: The following table provides information related to definite-lived intangible assets (in millions):
−Removed: December 31, 2023 December 31, 2022
−Removed: Gross Carrying Value Accumulated Amortization Net Carrying
−Removed: Value Gross Carrying
−Removed: Value Accumulated Amortization Net Carrying
−Removed: Customer relationships $ 309 $ ( 118 ) $ 191 $ 354 $ ( 109 ) $ 245
−Removed: Trademarks 70 ( 30 ) 40 147 ( 84 ) 63
−Removed: Other 183 ( 59 ) 124 206 ( 54 ) 152
−Removed: Total $ 562 $ ( 207 ) $ 355 $ 707 $ ( 247 ) $ 460
−Removed: Total amortization expense for intangible assets subject to amortization was $ 94 million, $ 120 million and $ 165 million in 2023, 2022 and 2021, respectively.
−Removed: Based on the carrying value of definite-lived intangible assets as of December 31, 2023, we estimate our amortization expense for the next five years will be as follows (in millions):
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
4 unchanged sentences
Accrued compensation 1,391 1,394
+Added: Contingent consideration liability 1
Other accrued expenses 2
Accounts payable and accrued expenses $ 21,715 $ 15,485
−Removed: 1 Includes liabilities held for sale of $ 719 million and $ 160 million as of December 31, 2023 and 2022, respectively.
+Added: 1 Represents the fairlife, LLC (“fairlife”) contingent consideration liability.
+Added: As of December 31, 2023, this balance was $ 3,017 million and was recorded in the line item other noncurrent liabilities in our consolidated balance sheet.
Refer to Note 17.
−Removed: 2 Includes cash proceeds of $ 823 million as of December 31, 2022 received in advance of refranchising our bottling operations in Vietnam in January 2023.
+Added: 2 Includes liabilities held for sale of $ 3 million and $ 719 million as of December 31, 2024 and 2023, respectively.
Refer to Note 2.
1 unchanged sentence
Our current payment terms with the majority of our suppliers are 120 days.
−Removed: Two global financial institutions offer a voluntary supply chain finance (“SCF”) program, which enables our suppliers, at their sole discretion, to sell their receivables from the Company to these financial institutions on a non-recourse basis at a rate that leverages our credit rating and thus may be more beneficial to them.
+Added: Certain financial institutions offer a voluntary supply chain finance (“SCF”) program, which enables our suppliers, at their sole discretion, to sell their receivables from the Company to these financial institutions on a non-recourse basis at a rate that leverages our credit rating and thus may be more beneficial to them.
The SCF program is available to suppliers of goods and services included in cost of goods sold and selling, general and administrative expenses in our consolidated statement of income.
1 unchanged sentence
The suppliers sell goods or services, as applicable, to the Company and issue the associated invoices to the Company based on the agreed-upon contractual terms.
−Removed: Then, if they are participating in the SCF program, our suppliers, at their sole discretion, determine which invoices, if any, they want to sell to the financial institutions.
−Removed: Our suppliers’ voluntary inclusion of invoices in the SCF program has no bearing on our payment terms.
+Added: Then, if they are participating in the SCF program, our suppliers sell their invoices to the financial institutions.
+Added: Our suppliers’ voluntary participation in the SCF program has no bearing on our payment terms.
No guarantees are provided by the Company or any of our subsidiaries under the SCF program.
2 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 December 31, 2023 and 2022, the amount of obligations outstanding that the Company has confirmed as valid to the financial institutions under the SCF program was $ 1,421 million and $ 1,351 million, respectively.
−Removed: We have operating leases primarily for real estate, manufacturing and other equipment, aircraft and vehicles.
+Added: The summary of the Company’s outstanding obligations confirmed as valid under the SCF program is as follows (in millions):
+Added: Confirmed obligations outstanding at beginning of year $ 1,421
+Added: Invoices confirmed 5,105
+Added: Confirmed invoices paid ( 5,196 )
+Added: Confirmed obligations outstanding at end of year $ 1,330
+Added: We have operating leases primarily for real estate, manufacturing and other equipment, vehicles and aircraft.
Balance sheet information related to operating leases is as follows (in millions):
8 unchanged sentences
3 The noncurrent portion of operating lease liabilities is included in the line item other noncurrent liabilities in our consolidated balance sheets.
−Removed: We had operating lease costs of $ 397 million for both the years ended December 31, 2023 and 2022.
+Added: We had operating lease costs of $ 362 million and $ 397 million for the years ended December 31, 2024 and 2023, respectively.
During 2024 and 2023, cash paid for amounts included in the measurement of operating lease liabilities was $ 359 million and $ 389 million, respectively.
3 unchanged sentences
Weighted-average discount rate 3.7 %
−Removed: Our leases have remaining lease terms of 1 year to 41 years, inclusive of renewal or termination options that we are reasonably certain to exercise.
+Added: Our leases have remaining lease terms of up to 40 years, inclusive of renewal or termination options that we are reasonably certain to exercise.
The following table summarizes the maturities of our operating lease liabilities as of December 31, 2024 (in millions):
9 unchanged sentences
Our weighted-average interest rates for commercial paper outstanding were 5.0 % and 5.3 % as of December 31, 2024 and 2023, respectively.
−Removed: As of December 31, 2023 and 2022, the Company also had $ 348 million and $ 227 million, respectively, in lines of credit, short-term credit facilities and other short-term borrowings that were related to our international operations.
+Added: As of December 31, 2024 and 2023, the Company also had $ 360 million and $ 348 million, respectively, in lines of credit, short-term credit facilities and other short-term borrowings.
In addition, we had $ 5,693 million in unused lines of credit and other short-term credit facilities as of December 31, 2024, of which $ 4,550 million was in corporate backup lines of credit for general purposes.
29 unchanged sentences
Total interest paid was $ 1,669 million, $ 1,415 million and $ 848 million in 2024, 2023 and 2022, respectively.
−Removed: During 2021, the Company extinguished prior to maturity fixed interest rate U.S.
−Removed: dollar notes and euro notes of $ 6,500 million and € 2,430 million, respectively, with maturity dates ranging from 2023 to 2026 and interest rates ranging from 0.750 % to 3.200 %.
−Removed: These extinguishments resulted in associated charges of $ 559 million recorded in the line item interest expense in our consolidated statement of income.
−Removed: These charges included the difference between the reacquisition price and the net carrying value of the notes extinguished, including the impact of the related fair value hedging relationships.
−Removed: We also incurred charges of $ 91 million as a result of the reclassification of related cash flow hedging balances from AOCI into income.
+Added: During 2024, the Company extinguished prior to maturity long-term debt of $ 485 million resulting in a gain of $ 22 million recorded in the line item interest expense in our consolidated statement of income.
The following table summarizes the maturities of long-term debt for the five years succeeding December 31, 2024 (in millions):
7 unchanged sentences
These amounts represent the maximum potential future payments that we could be required to make under the guarantees.
−Removed: However, management has concluded that the likelihood of any significant amounts being paid by our Company under these guarantees is not probable.
+Added: However, management has concluded that the likelihood of any significant amounts being paid by our Company under these guarantees is remote.
Concentrations of Credit Risk
40 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: 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: 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 certain U.S.
+Added: tax regulations (known as the blocked-income regulations) that address the effect of certain Brazilian legal restrictions on royalty payments by the Company’s licensee in Brazil apply to the Company’s operations and that the Tax Court opinion in 3M Co.
Commissioner (February 9, 2023) controlled as to the validity of those regulations.
1 unchanged sentence
Moreover, the Company believes that the retroactive imposition of such tax liability using a calculation methodology different from that previously agreed upon by the IRS and the Company, and audited by the IRS for over a decade, is unconstitutional.
−Removed: The Company intends to assert its claims on appeal and vigorously defend its position.
+Added: The Company intends to assert its claims on appeal and vigorously defend its positions.
+Added: In addition, for its litigation with the IRS and for purposes of its appeal of the Tax Court decision, the Company is currently evaluating the implications of several significant administrative law cases recently decided by the U.S.
+Added: Supreme Court, most notably Loper Bright v.
+Added: Raimondo , which overruled Chevron U.S.A., Inc.
+Added: NRDC (“ Chevron ”).
+Added: Since 1984, Chevron had required that courts defer to agency interpretations of statutes and agency action.
+Added: EPA and Garland v.
+Added: Cargill , two of the recent decisions, the U.S.
+Added: Supreme Court demonstrated how courts are to rule on agency interpretations and actions without the deference previously required by Chevron .
+Added: On August 2, 2024, the Tax Court entered a decision reflecting additional federal income tax of $ 2.7 billion for the 2007 through 2009 tax years.
+Added: With applicable interest, the total liability for the 2007 through 2009 tax years resulting from the Tax Court’s decision is $ 6.0 billion, for which the IRS issued the Company invoices on September 3, 2024.
+Added: The Company paid those invoices (“IRS Tax Litigation Deposit”) on September 10, 2024, which stopped interest from accruing on the additional tax due for the 2007 through 2009 tax years.
+Added: That amount, plus interest earned, would be refunded in full or in part if the Company’s tax positions are ultimately sustained on appeal.
+Added: For the year ended December 31, 2024, the Company recorded net interest income of $ 77 million related to this tax payment in the line item income taxes in our consolidated statement of income, in accordance with our accounting policy.
+Added: The payment of the IRS invoices and the related accrued interest were recorded in the line item other noncurrent assets in our consolidated balance sheet as of December 31, 2024.
+Added: On October 22, 2024, the Company appealed the Tax Court’s decision to the U.S.
+Added: Court of Appeals for the Eleventh Circuit.
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 .
7 unchanged sentences
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 December 31, 2024.
−Removed: 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 December 31, 2023 to $ 439 million.
−Removed: 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.
−Removed: 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 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.
−Removed: 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.
+Added: However, based on the required probability analysis and the accrual of interest through the current reporting period, we updated our tax reserve as of December 31, 2024 to $ 474 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 adjustments proposed by the IRS and sustained by the Tax Court could ultimately be upheld.
+Added: In that event, the Company would not receive a refund of the applicable portion or all of the $ 6.0 billion it paid in response to the IRS invoices issued in September 2024 and the related accrued interest receivable of $ 103 million as of December 31, 2024.
+Added: Additionally, the Company would likely be subject to significant additional liabilities for subsequent years, which could have a material adverse impact on the Company’s financial position, results of operations and cash flows.
+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 for the 2010 through 2024 tax years, 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
+Added: consent of the federal courts.
+Added: This impact would include taxes and interest accrued through December 31, 2024.
The calculations incorporated the estimated impact of correlative adjustments to the previously accrued transition tax payable under the 2017 Tax Cuts and Jobs Act (“Tax Reform Act”).
−Removed: The Company estimates that the potential aggregate incremental tax and interest liability could be approximately $ 16 billion as of December 31, 2023.
−Removed: Additional income tax and interest would continue to accrue until the time any such potential liability, or portion thereof, were to be paid.
−Removed: 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 %.
−Removed: The Company and the IRS are now in the process of agreeing on the tax impacts of the Opinions.
−Removed: Subsequent to the completion of this process, the Tax Court will render a decision in the case.
−Removed: 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.
−Removed: 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).
−Removed: The Company currently estimates that the payment to be made at that time related to the 2007 through 2009 tax years, which is
−Removed: included in the above estimate of the potential aggregate incremental tax and interest liability, would be approximately $ 5.8 billion (including interest accrued through December 31, 2023), plus any additional interest accrued through the time of payment.
−Removed: Some or all of this amount, plus accrued interest, would be refunded if the Company were to prevail on appeal.
+Added: The Company estimates that the potential aggregate remaining incremental tax and interest liability for the tax years 2010 through 2024 could be approximately $ 12 billion as of December 31, 2024.
+Added: Additional income tax and interest on any unpaid potential liabilities for the 2010 through 2024 tax years would continue to accrue until the time any such potential liability, or portion thereof, were to be paid.
+Added: We currently project the continued application of the Tax Court Methodology in 2025, assuming similar facts and circumstances as of December 31, 2024, would result in an incremental annual tax liability that would increase the Company’s effective tax rate by approximately 3.5 %.
Risk Management Programs
6 unchanged sentences
Our Company grants long-term equity awards under its stock-based compensation plans to certain employees of the Company.
−Removed: The Coca-Cola Company 2014 Equity Plan (“2014 Equity Plan”) was approved by shareowners in April 2014.
−Removed: Under the 2014 Equity Plan, a maximum of 500 million shares of our common stock was approved to be issued through the grant of equity awards.
−Removed: The 2014 Equity Plan allows for grants of stock options, performance share units, restricted stock, restricted stock units and other specified award types, including cash awards with performance-based vesting criteria.
−Removed: As of December 31, 2023, there were 284 million shares available to be granted under the 2014 Equity Plan.
−Removed: In addition, there were 3 million shares available for stock option and restricted stock award grants under plans approved by shareowners prior to 2014.
+Added: The Coca-Cola Company 2024 Equity Plan (“2024 Plan”) and the Global Employee Stock Purchase Plan (“GESPP”) were approved by shareowners on May 1, 2024.
+Added: Under the 2024 Plan, an aggregate initial reserve of 240 million shares of our common stock was approved to be issued through the grant of equity awards.
+Added: This reserve will be increased or may be adjusted as allowable under the 2024 Plan.
+Added: The 2024 Plan allows for grants of stock options, stock appreciation rights, performance share units, restricted stock, restricted stock units and other specified award types, including cash awards with performance-based vesting criteria.
+Added: As of December 31, 2024, there were 240 million initial reserve shares available to be granted under the 2024 Plan.
+Added: There was an additional 1 million shares available to be issued under the 2024 Plan through the reuse of shares and adjustments as allowable under the 2024 Plan.
+Added: Beginning in 2025, the 2024 Plan will be the only plan in use for equity awards.
+Added: Under the GESPP, a maximum of 15 million shares of our common stock was approved to be issued through the grant of matching share awards.
+Added: As of December 31, 2024, there were 15 million shares available to be issued under the GESPP.
Total stock-based compensation expense was $ 286 million, $ 251 million and $ 361 million in 2024, 2023 and 2022, respectively.
3 unchanged sentences
This was partially offset by $ 3 million related to the revision of management’s estimates arising from the settlement of the estimated cash payments recognized in 2022, which was recorded in the line item other operating charges in our consolidated statement of income.
−Removed: Refer to Note 19 for additional information on the Company’s restructuring and strategic realignment initiatives.
All stock-based compensation expense in 2024 was recorded in the line item selling, general and administrative expenses in our consolidated statement of income.
+Added: Refer to Note 19 for additional information on the Company’s restructuring initiatives.
The total income tax benefit recognized in our consolidated statements of income related to total stock-based compensation expense was $ 47 million, $ 40 million and $ 55 million in 2024, 2023 and 2022, respectively.
32 unchanged sentences
Exercised ( 18 ) 42.72
−Removed: Forfeited/expired ( 1 ) 55.58
Outstanding on December 31, 2024 31 $ 52.81 5.4 years $ 289
−Removed: Expected to vest 46 $ 48.38 4.6 years $ 506
+Added: Vested and expected to vest 30 $ 52.72 5.4 years $ 288
Exercisable on December 31, 2024 22 $ 50.43 4.5 years $ 261
4 unchanged sentences
For performance share unit awards granted from 2019 through 2022, the performance criteria were equally weighted among net operating revenues, earnings per share and free cash flow over a predefined performance period of three years.
−Removed: For performance share unit awards granted to executives in 2022, and for performance share unit awards granted to all participants in 2023, the performance criteria were weighted 30% for net operating revenues, 30% for earnings per share, 30% for free cash flow and 10% for environmental sustainability.
+Added: For performance share unit awards granted to executives in 2022, and for performance share unit awards granted to all participants in 2023 and 2024 , the performance criteria were weighted 30% for net operating revenues, 30% for earnings per share, 30% for free cash flow and 10% for environmental sustainability.
For purposes of these performance criteria, earnings per share is diluted net income per share;
free cash flow is net cash provided by operating activities less purchases of property, plant and equipment;
−Removed: and environmental sustainability is comprised of predefined goals related to the Company’s packaging and water security strategies.
+Added: and environmental sustainability is comprised of predefined goals related to the Company’s packaging and water security strategies in place at the time of grant.
These performance criteria are adjusted for certain items, if applicable, which are subject to Audit Committee approval.
The purpose of these adjustments is to ensure a consistent year-to-year comparison of the specific performance criteria.
−Removed: Performance share unit awards granted to executives in 2018 through 2022 and performance share unit awards granted to all participants in 2023 include a relative TSR modifier to determine the final number of performance share units earned.
−Removed: The fair value of performance share units that include a TSR
−Removed: modifier is determined using a Monte Carlo valuation model.
−Removed: For these awards, the number of performance share units earned based on the certified achievement of the predefined performance criteria will be reduced or increased if the Company’s total shareowner return over the performance period relative to a predefined group of companies falls outside of a predefined range.
+Added: Performance share unit awards granted to executives in 2019 through 2022 and performance share unit awards granted to all participants in 2023 and 2024 include a relative TSR modifier to determine the final number of performance share units earned.
+Added: The fair value of performance share units that include a TSR modifier is determined using a Monte Carlo valuation model.
+Added: For these awards, the
+Added: number of performance share units earned based on the certified achievement of the predefined performance criteria will be reduced or increased if the Company’s total shareowner return over the performance period relative to a predefined group of companies falls outside of a predefined range.
The fair value of performance share units that do not include a TSR modifier is the closing market price per share of the Company’s stock on the grant date less the present value of the expected dividends not received during the performance period.
The performance share unit awards will generally vest at the end of the respective performance period.
−Removed: During 2021, in addition to granting performance share unit awards with a three-year performance period, the Company granted emerging stronger performance share unit awards with a predefined performance period of two years.
−Removed: The award’s performance criterion was earnings per share, and the award included a relative TSR modifier.
−Removed: Earnings per share for these purposes was diluted net income per share adjusted for certain items, which were approved by the Audit Committee.
−Removed: The purpose of these adjustments was to ensure a consistent year-to-year comparison of the performance criterion.
−Removed: These performance share unit awards generally vested at the end of the two-year performance period.
For performance share unit awards, in the event the certified results equal the predefined performance criteria, the number of performance share units earned will be equal to the target award.
6 unchanged sentences
In the event the Company determines it is no longer probable that the minimum performance threshold specified in the award will be achieved, we reverse all previously recognized compensation expense in the reporting period such a determination is made.
−Removed: Performance share units earned are generally settled in stock, except for certain circumstances such as death or disability, in which case beneficiaries or employees are provided cash payments.
+Added: Performance share units earned are generally settled in stock, ex cept for certain circumstances such as death or disability, in which case beneficiaries or employees are provided cash payments.
As of December 31, 2024, nonvested performance share units of approximately 1,216,000 and 1,323,000 were outstanding for the 2023-2025 and 2024-2026 performance periods, respectively, based on the target award amounts.
9 unchanged sentences
1 Represents the target level of performance share units vested as of December 31, 2024 for the 2022-2024 performance period.
−Removed: Upon certification in February 2024 of the financial results for the performance periods, the final number of shares earned will be determined and released.
+Added: Upon certification in February 2025 of the financial results for the performance period, the final number of shares earned will be determined and released.
2 The outstanding nonvested performance share units as of December 31, 2024 at the threshold award and maximum award levels were approximately 952,000 and 6,348,000 , respectively.
2 unchanged sentences
2021-2023 Annual Award
−Removed: Emerging Stronger Award
Performance Share Units
(In thousands) Weighted-
−Removed: Fair Value Performance Share Units
−Removed: (In thousands) Weighted-
Certified 3,611 $ 49.37
2 unchanged sentences
The total intrinsic value of performance share units that were released was $ 214 million, $ 244 million and $ 125 million in 2024, 2023 and 2022, respectively.
−Removed: Time-Based Restricted Stock and Restricted Stock Unit Awards
−Removed: Time-based restricted stock and restricted stock unit awards granted under the 2014 Equity Plan do not entitle recipients to vote or receive dividends during the vesting period and will be forfeited in the event of the recipient’s termination of employment, except for certain circumstances such as death or disability.
−Removed: The fair value of restricted stock and restricted stock units is the closing market price per share of the Company’s stock on the grant date less the present value of the expected dividends not received during the vesting period.
−Removed: The fair value of the restricted stock and restricted stock units expected to vest and be released is expensed on a straight-line basis over the vesting period.
−Removed: The following table summarizes information about outstanding nonvested time-based restricted stock and restricted stock units:
−Removed: Restricted Stock and Restricted Stock Units
+Added: Time-Based Restricted Stock, Time-Based Restricted Stock Unit Awards and Matching Share Awards
+Added: Restricted stock, restricted stock unit awards and matching share awards granted under the 2024 Equity Plan, the GESPP, and the 2014 Equity Plan do not entitle recipients to vote or receive dividends during the vesting period and will be forfeited in the event of the recipient’s termination of employment, except for certain circumstances such as death or disability.
+Added: The fair value of restricted stock, restricted stock units and matching share awards is the closing market price per share of the Company’s stock on the grant date less the present value of the expected dividends not received during the vesting period.
+Added: The fair value of the restricted stock, restricted stock units and matching share awards expected to vest and be released is expensed on a straight-line basis over the vesting period.
+Added: The following table summarizes information about outstanding nonvested restricted stock, restricted stock units and matching share awards:
+Added: Restricted Stock, Restricted Stock Units and Matching Share Awards
(In thousands) Weighted-Average
23 unchanged sentences
Net actuarial loss (gain) ( 213 ) 2
−Removed: 375 ( 1,891 ) 14 ( 175 )
Benefits paid ( 478 ) ( 369 ) ( 65 ) ( 62 )
1 unchanged sentence
Settlements ( 22 ) ( 287 ) 3
−Removed: ( 26 ) ( 187 ) 4
Curtailments ( 1 ) — — —
8 unchanged sentences
Foreign currency exchange rate changes ( 203 ) 76 — —
+Added: Transfers ( 523 ) 6
Benefits paid ( 410 ) ( 300 ) ( 33 ) ( 34 )
Settlements ( 9 ) ( 260 ) 3
−Removed: ( 26 ) ( 187 ) 4
−Removed: Other — 27 — —
Fair value of plan assets at end of year $ 6,435 $ 7,260 $ 69 $ 176
4 unchanged sentences
2 A change in the weighted-average discount rate assumption was the primary driver of net actuarial loss (gain) during 2024 and 2023.
−Removed: qualified pension plan, a decrease in the discount rate resulted in an actuarial loss of $ 129 million during 2023, and an increase in the discount rate resulted in an actuarial gain of $ 1,231 million during 2022.
+Added: qualified pension plan, an increase in the discount rate resulted in an actuarial gain of $ 178 million during 2024, and a decrease in the discount rate resulted in an actuarial loss of $ 129 million during 2023.
Additional drivers of net actuarial loss (gain) included other assumption updates and plan experience.
1 unchanged sentence
qualified pension plan, which was amended in 2023 to provide lump sum payment options to all former employees.
−Removed: qualified pension plan made $ 259 million of lump sum payments in 2023, causing a plan settlement, which resulted in recognition of a $ 76 million settlement charge related to the acceleration of existing unrecognized losses.
+Added: qualified pension plan made $ 259 million of lump sum payments in 2023, causing a plan settlement, which resulted in recognition of a $ 76 million settlement loss related to the acceleration of existing unrecognized losses.
4 In 2024, the Company settled its U.S.
+Added: other postretirement benefit obligations such that core life insurance benefits will be funded by an insurance company beginning September 11, 2024 for the lifetime of certain retirees.
+Added: The transaction resulted in no change to underlying benefits or plan administration, but only to the future financing of the benefits.
+Added: Pursuant to the settlement, the Company transferred $ 92 million of plan assets and liabilities to an insurer and recognized a $ 19 million net settlement gain related to the acceleration of existing unrecognized gains.
+Added: 5 In 2023, the Company settled its U.S.
post-65 other postretirement benefit obligations such that retiree reimbursement accounts will be funded by an insurance company beginning January 1, 2025 for the lifetime of certain retirees and their eligible dependents.
The transaction resulted in no change to underlying benefits or plan administration, but only to the future financing of the benefits.
−Removed: Pursuant to the settlement, the Company transferred $ 187 million of plan assets and liabilities to an insurer and recognized a $ 14 million net settlement credit related to the acceleration of existing unrecognized gains.
+Added: Pursuant to the settlement, the Company transferred $ 187 million of plan assets and liabilities to an insurer and recognized a $ 14 million net settlement gain related to the acceleration of existing unrecognized gains.
+Added: 6 Transfers represent $ 523 million of surplus international plan assets transferred from pension trusts to general assets of the Company.
Pension and other postretirement benefit plan amounts recognized in our consolidated balance sheets were as follows (in millions):
15 unchanged sentences
Fair value of plan assets 4,072 4,379
−Removed: Certain of our other postretirement benefit plans have an accumulated postretirement benefit obligation in excess of the fair value of plan assets.
−Removed: For these plans, the accumulated postretirement benefit obligation and the fair value of plan assets were as follows (in millions):
−Removed: December 31, 2023 2022
−Removed: Accumulated postretirement benefit obligation $ 297 $ 166
−Removed: Fair value of plan assets 176 —
+Added: All of our other postretirement benefit plans have an accumulated postretirement benefit obligation in excess of the fair value of plan assets.
Pension Plan Assets
43 unchanged sentences
pension plan assets.
−Removed: Our target allocation of 18 % equity securities is composed of 81 % global equities, 11 % emerging market equities and 8 % domestic small-cap and mid-cap equities.
−Removed: Optimal returns through our investments in global equities are achieved through security selection as well as country and sector diversification.
−Removed: As of December 31, 2023, investments in our common stock accounted for 9 % of total global equities and 5 % of total U.S.
+Added: Our target allocation of 21 % equity securities is primarily composed of public equities.
+Added: Optimal returns are achieved through security selection as well as country and sector diversification.
+Added: As of December 31, 2024, investments in our common stock accounted for 9 % of total equity securities and 4 % of total U.S.
pension plan assets.
−Removed: Our investments in global equities are intended to provide diversified exposure to both U.S.
+Added: Our investments in public equities are intended to provide diversified exposure to both U.S.
equity markets.
−Removed: Our investments in both emerging market equities and domestic small-cap and mid-cap equities may experience large swings in their market value.
−Removed: Our investments in these asset classes are selected based on capital appreciation potential.
Our target allocation of 47 % fixed-income securities is composed of 62 % long-duration bonds and 38 % with multi-strategy alternative credit managers.
Long-duration bonds are intended to provide a stable rate of return through investments in high-quality publicly traded debt securities.
−Removed: Our investments in long-duration bonds are diversified in order to mitigate duration and
−Removed: credit exposure.
+Added: Our investments in long-duration bonds are diversified in order to mitigate duration and credit exposure.
Multi-strategy alternative credit managers invest in a combination of high-yield bonds, bank loans, structured credit and emerging market debt.
1 unchanged sentence
Our target allocation for alternative investments is 32 %.
−Removed: These alternative investments include hedge funds, reinsurance, private equity limited partnerships, leveraged buyout funds, international venture capital partnerships and real estate.
+Added: These alternative investments include hedge funds, reinsurance, private equity limited partnerships and real estate.
The objective of investing in alternative investments is to provide a higher rate of return than that which is typically available from publicly traded equity securities.
9 unchanged sentences
None of our pension plans outside the United States is individually significant for separate disclosure.
−Removed: Other Postretirement Benefit Plan Assets
−Removed: Plan assets associated with other postretirement benefits primarily represent funding of one of the U.S.
−Removed: postretirement health care benefit plans through a Voluntary Employee Beneficiary Association (“VEBA”), a tax-qualified trust.
−Removed: The VEBA assets are primarily invested in liquid assets due to the level and timing of expected future benefit payments.
−Removed: The following table presents total assets by asset class for our other postretirement benefit plans (in millions):
−Removed: December 31, 2023 2022
−Removed: Cash and cash equivalents $ 10 $ 43
−Removed: Equity securities:
−Removed: U.S.-based companies 73 133
−Removed: International-based companies 4 4
−Removed: Fixed-income securities:
−Removed: Government bonds 14 12
−Removed: Corporate bonds and debt securities 7 71
−Removed: Mutual, pooled and commingled funds 39 86
−Removed: Hedge funds/limited partnerships 18 14
−Removed: Real estate 6 6
−Removed: Total other postretirement benefit plan assets 1
−Removed: 1 Fair value disclosures related to our other postretirement benefit plan assets are included in Note 17.
−Removed: Fair value disclosures include, but are not limited to, the levels within the fair value hierarchy in which the fair value measurements in their entirety fall and information about the valuation techniques and inputs used to measure the fair value of our other postretirement benefit plan assets.
Components of Net Periodic Benefit Cost (Income)
10 unchanged sentences
103 96 109 ( 4 ) ( 5 ) —
−Removed: Net periodic benefit cost (income) 38 ( 124 ) ( 180 ) 9 5 9
−Removed: Settlement charges (credits) 81 3
−Removed: Curtailment credits — ( 1 ) ( 1 ) — — ( 1 )
+Added: Settlement loss (gain) ( 2 ) 81 3
+Added: ( 1 ) ( 19 ) 4
+Added: Curtailment loss (gain) ( 1 ) — ( 1 ) — — —
Special termination benefits 1 1 1 — — —
Other 1 — 1 — — —
−Removed: Total cost (income) $ 120 $ ( 124 ) $ ( 61 ) $ ( 5 ) $ 5 $ 8
+Added: Net periodic benefit cost (income) $ 45 $ 120 $ ( 124 ) $ ( 13 ) $ ( 5 ) $ 5
1 The Company has elected to use the actual fair value of plan assets as the market-related value of plan assets in the determination of the expected return on plan assets.
4 unchanged sentences
qualified pension plan, which was amended in 2023 to provide lump sum payment options to all former employees.
−Removed: qualified pension plan made $ 259 million of lump sum payments in 2023, causing a plan settlement, which resulted in recognition of a $ 76 million settlement charge related to the acceleration of existing unrecognized losses.
−Removed: 4 Settlement charges were primarily related to our strategic realignment initiatives.
−Removed: Refer to Note 19.
+Added: qualified pension plan made $ 259 million of lump sum payments in 2023, causing a plan settlement, which resulted in recognition of a $ 76 million settlement loss related to the acceleration of existing unrecognized losses.
4 In 2024, the Company settled its U.S.
+Added: other postretirement benefit obligations such that core life insurance benefits will be funded by an insurance company beginning September 11, 2024 for the lifetime of certain retirees.
+Added: The transaction resulted in no change to underlying benefits or plan administration, but only to the future financing of the benefits.
+Added: Pursuant to the settlement, the Company transferred $ 92 million of plan assets and liabilities to an insurer and recognized a $ 19 million net settlement gain related to the acceleration of existing unrecognized gains.
+Added: 5 In 2023, the Company settled its U.S.
post-65 other postretirement benefit obligations such that retiree reimbursement accounts will be funded by an insurance company beginning January 1, 2025 for the lifetime of certain retirees and their eligible dependents.
The transaction resulted in no change to underlying benefits or plan administration, but only to the future financing of the benefits.
−Removed: Pursuant to the settlement, the Company transferred $ 187 million of plan assets and liabilities to an insurer and recognized a $ 14 million net settlement credit related to the acceleration of existing unrecognized gains.
+Added: Pursuant to the settlement, the Company transferred $ 187 million of plan assets and liabilities to an insurer and recognized a $ 14 million net settlement gain related to the acceleration of existing unrecognized gains.
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.
6 unchanged sentences
Recognized net actuarial loss (gain) 100 177 ( 23 ) ( 19 )
−Removed: Prior service cost occurring during the year — ( 9 ) ( 1 ) —
+Added: Prior service credit (cost) occurring during the year 2 — — ( 1 )
Net actuarial gain (loss) occurring during the year 90 ( 313 ) ( 12 ) ( 12 )
+Added: Divestitures ( 6 ) — — —
Net foreign currency translation adjustments 25 ( 16 ) ( 2 ) 1
22 unchanged sentences
and certain non-U.S.
−Removed: plans is determined using a matching technique whereby the rates of a yield curve, developed from high-quality debt securities, are applied to projected benefit cash flows to determine the appropriate effective discount rate.
+Added: plans is determined using a yield curve, developed from high-quality debt securities.
+Added: Plan obligations are determined by applying projected cash flows to the individual spot rates from the yield curve.
+Added: The disclosed discount rate is the rate that would produce the same obligation as the applicable yield curve.
For other non-U.S.
plans, we base the discount rate assumption on comparable indices within each of the countries.
−Removed: The Company measures the service cost and interest cost components of net periodic benefit cost or income for pension and other postretirement benefit plans by applying the specific spot rates along the yield curve to the plans’ projected benefit cash flows.
+Added: The Company measures the service cost and interest cost components of net periodic benefit cost or income for pension and other postretirement benefit plans by applying the specific spot rates along the yield curve to the plans’ projected benefit cash flows, or for other non-U.S.
+Added: plans referenced above, this is measured using the discount rate derived from appropriate indices.
The rate of compensation increase assumption is determined by the Company based upon annual reviews.
31 unchanged sentences
Under the largest U.S.
−Removed: defined contribution plan, we match participants’ contributions up to a maximum of 3.0 % to 3.5 % of compensation, subject to an IRS limit on compensation.
+Added: defined contribution plan, we match participants’ contributions up to a maximum of 3.5 % of compensation, subject to an IRS limit on compensation.
The Company’s expense for the U.S.
1 unchanged sentence
We also sponsor defined contribution plans in certain locations outside the United States.
−Removed: The Company’s expense for these plans totaled $ 82 million in 2023 and $ 79 million in both 2022 and 2021.
−Removed: Multi-Employer Retirement Plans
−Removed: The Company participates in various multi-employer retirement plans, which are designed to provide benefits to, or on behalf of, employees of multiple employers.
−Removed: These plans are typically established under collective bargaining agreements.
−Removed: Multi-employer retirement plans are generally governed by a board of trustees composed of representatives of both management and labor and are generally funded through employer contributions.
−Removed: The Company’s expense for multi-employer retirement plans totaled $ 1 million in 2023, 2022 and 2021.
−Removed: The plans we currently participate in have contractual arrangements that extend into 2026.
−Removed: If, in the future, we choose to withdraw from any of the multi-employer retirement plans in which we currently participate, we would record the appropriate withdrawal liability, if any, at that time .
+Added: The Company’s expense for these plans totaled $ 85 million, $ 82 million and $ 79 million in 2024, 2023 and 2022, respectively.
Income before income taxes consisted of the following (in millions):
11 unchanged sentences
Deferred ( 121 ) ( 4 ) 3 ( 122 )
−Removed: 1 Includes net tax expense of $ 195 million related to changes in tax laws in certain foreign jurisdictions.
We made income tax payments of $ 3,262 million, $ 2,580 million and $ 2,403 million in 2024, 2023 and 2022, respectively, which included $ 964 million, $ 723 million and $ 385 million, respectively, of the one-time transition tax required by the Tax Reform Act.
+Added: The 2024 amount does not include $ 6.0 billion paid in relation to invoices the IRS issued for the 2007 through 2009 tax years resulting from the Tax Court’s decision.
+Added: Refer to Note 12.
+Added: In 2024, the Company invested $ 226 million in limited partnerships that receive tax credits and other tax benefits by constructing, owning and operating alternative energy generation facilities.
+Added: During 2024, the Company received tax credits and other income tax benefits of $ 323 million and recognized amortization expense of $ 308 million related to these investments.
+Added: The amount of non-income tax-related activity and other returns related to these investments was not material during 2024.
+Added: As of December 31, 2024, the carrying value of these investments was $ 41 million.
+Added: The Company expects to fulfill $ 123 million of unfunded commitments related to these investments in the first quarter of 2025.
Our effective tax rate reflects the tax benefits of having significant operations outside the United States, which are generally taxed at rates lower than the statutory U.S.
3 unchanged sentences
We anticipate that we will be able to extend or renew the grants in these locations.
+Added: The decision of whether we decide to pursue the renewal of these grants and the impact of the grants going forward is dependent on various factors.
Tax incentive grants favorably impacted our income tax expense by $ 346 million, $ 332 million and $ 406 million for the years ended December 31, 2024, 2023 and 2022, respectively.
8 unchanged sentences
federal tax rate 1.0 1
+Added: ( 0.3 ) ( 0.6 )
Equity income or loss ( 2.6 ) ( 2.1 ) ( 2.7 )
1 unchanged sentence
Other — net ( 1.4 ) ( 2.0 ) 2
−Removed: ( 0.3 ) ( 0.8 ) 3
Effective tax rate 18.6 % 17.4 % 18.1 %
−Removed: 1 Includes net tax benefit of $ 118 million (or a 0.9 % impact on our effective tax rate) related to domestic provision to return adjustments, as well as for various discrete tax items.
+Added: 1 Includes net tax expense of $ 161 million (or a 1.2 % impact on our effective tax rate) related to agreed-upon tax issues with certain foreign jurisdictions.
+Added: 2 Includes a net tax benefit of $ 118 million (or a 0.9 % impact on our effective tax rate) related to domestic provision to return adjustments, as well as for various discrete tax items.
Also includes a tax benefit of $ 88 million (or a 0.7 % impact on our effective tax rate) associated with the change in the Company’s indefinite reinvestment assertion for our Philippines and Bangladesh bottling operations.
−Removed: 2 Includes net tax charges of $ 375 million (or a 3.0 % impact on our effective tax rate) related to changes in tax laws in certain foreign jurisdictions, amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions, as well as other discrete items.
−Removed: 3 Includes a tax benefit of $ 14 million (or a 1.5 % impact on our effective tax rate) associated with the $ 834 million gain recorded upon the acquisition of the remaining ownership interest in BodyArmor.
−Removed: Refer to Note 2.
−Removed: As of December 31, 2023, we have not recorded incremental income taxes for additional outside basis differences of $ 8.5 billion in our investments in foreign subsidiaries, as these amounts continue to be indefinitely reinvested in foreign
+Added: As of December 31, 2024, we have not recorded incremental income taxes for additional outside basis differences of $ 9.3 billion in our investments in foreign subsidiaries, as these amounts continue to be indefinitely reinvested in foreign operations.
Determining the amount of unrecognized deferred tax liability related to any additional outside basis differences in these entities is not practicable.
11 unchanged sentences
Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, including interest and penalties, have been provided for in accordance with the applicable accounting guidance.
−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.
+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.
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.
Commissioner (February 9, 2023) controlled as to the validity of those regulations.
−Removed: The Company strongly disagrees with the Opinions and intends to vigorously defend its position.
+Added: On August 2, 2024, the Tax Court entered a decision reflecting additional federal income tax of $ 2.7 billion for the 2007 through 2009 tax years.
+Added: With applicable interest, the total liability for the 2007 through 2009 tax years resulting from the Tax Court’s decision is $ 6.0 billion.
+Added: On October 22, 2024, the Company appealed the Tax Court’s decision to the U.S.
+Added: Court of Appeals for the Eleventh Circuit.
+Added: The Company strongly disagrees with the Opinions and intends to vigorously defend its positions.
Refer to Note 12.
18 unchanged sentences
however, we do not expect any changes will have a significant impact on our consolidated statement of income or consolidated balance sheet.
−Removed: These changes may be the result of settlements of ongoing audits, statute of limitations expiring or final settlements in transfer pricing matters that are the subject of litigation.
+Added: These changes may be the result of settlements of ongoing audits, statutes of limitations expiring or final settlements in transfer pricing matters that are the subject of litigation.
Currently, an estimate of the range of the reasonably possible outcomes cannot be made.
3 unchanged sentences
Property, plant and equipment $ 23 $ 25
−Removed: Trademarks and other intangible assets 1,414 1,617
+Added: Goodwill and intangible assets 1,133 1,414
Equity method investments (including net foreign currency translation adjustments) 503 239
2 unchanged sentences
Benefit plans 483 554
−Removed: Net operating loss carryforwards 273 248
+Added: Net operating loss, and other carryforwards 874 357
Other 325 361
4 unchanged sentences
Property, plant and equipment $ ( 777 ) $ ( 748 )
−Removed: Trademarks and other intangible assets ( 1,917 ) ( 1,843 )
+Added: Goodwill and intangible assets ( 1,750 ) ( 1,917 )
Equity method investments (including net foreign currency translation adjustments) ( 1,649 ) ( 1,633 )
5 unchanged sentences
Net deferred tax assets (liabilities) $ ( 1,150 ) $ ( 1,078 )
−Removed: As of December 31, 2023 and 2022, we had net deferred tax assets of $ 273 million and $ 398 million, respectively, located in countries outside the United States.
+Added: 1 Includes deferred tax associated with timing differences related to the IRS Tax Litigation Deposit.
+Added: Refer to Note 12.
As of December 31, 2024, we had $ 1,583 million of loss carryforwards available to reduce future taxable income.
Loss carryforwards of $ 327 million must be utilized within the next five years, and the remainder can be utilized over a period greater than five years.
+Added: In addition, we had $ 2,253 million of Internal Revenue Code 163(j) interest carryforwards, which will carryforward indefinitely.
+Added: As of December 31, 2024, we also had foreign tax credit carryforwards of $ 99 million, which must be utilized within the next ten years.
An analysis of our deferred tax asset valuation allowances is as follows (in millions):
8 unchanged sentences
The Company believes that it will generate sufficient future taxable income to realize the tax benefits related to the remaining net deferred tax assets in our consolidated balance sheet.
+Added: In 2024, the Company recognized a net increase of $ 89 million in its valuation allowances, primarily due to significant negative evidence on the utilization of excess foreign tax credits.
+Added: The increase was partially offset by decreases in the deferred tax assets
+Added: and related valuation allowances on a certain equity method investment and the changes in net operating losses in the normal course of business.
In 2023, the Company recognized a net decrease of $ 28 million in its valuation allowances, primarily due to net decreases in the deferred tax assets and related valuation allowances on a certain equity method investment, certain excess foreign tax credit carryforwards and the changes in net operating losses in the normal course of business.
2 unchanged sentences
The increase was also due to net increases in the deferred tax assets and related valuation allowances on certain equity method investments and the changes in net operating losses in the normal course of business.
−Removed: In 2021, the Company recognized a net decrease of $ 5 million in its valuation allowances.
−Removed: The decrease was primarily due to net decreases in the deferred tax assets and related valuation allowances on certain equity method investments and the changes in net operating losses in the normal course of business.
OTHER COMPREHENSIVE INCOME
17 unchanged sentences
Net gains (losses) on derivatives 1
−Removed: ( 178 ) — ( 178 )
Net change in unrealized gains (losses) on available-for-sale debt
−Removed: Net change in pension and other postretirement benefit liabilities 3
( 63 ) — ( 63 )
+Added: Net change in pension and other postretirement benefit liabilities 3
Total comprehensive income $ 8,063 $ 9 $ 8,072
37 unchanged sentences
Net gains (losses) on derivatives 1
+Added: $ ( 204 ) $ 26 $ ( 178 )
Available-for-sale debt securities:
17 unchanged sentences
741 ( 185 ) 556
−Removed: Reclassification adjustments for net investment hedges recognized in net income 4 — 4
Net foreign currency translation adjustments $ ( 603 ) $ ( 411 ) $ ( 1,014 )
2 unchanged sentences
Net gains (losses) on derivatives 1
−Removed: $ 284 $ ( 70 ) $ 214
Available-for-sale debt securities:
16 unchanged sentences
Foreign currency translation adjustments:
−Removed: Divestitures, deconsolidations and other 1
+Added: Divestitures 1
Other income (loss) — net $ 103
3 unchanged sentences
Foreign currency contracts Net operating revenues $ ( 84 )
+Added: Foreign currency and commodity contracts Cost of goods sold ( 17 )
+Added: Foreign currency and interest rate contracts Interest expense 6
Foreign currency contracts Other income (loss) — net 45
−Removed: Foreign currency contracts Interest expense 4
Income before income taxes ( 50 )
7 unchanged sentences
Pension and other postretirement benefit liabilities:
−Removed: Divestitures, deconsolidations and other 2
+Added: Divestitures 2
Other income (loss) — net $ ( 6 )
−Removed: Settlement charges (credits) Other income (loss) — net 67
−Removed: Recognized net actuarial loss (gain) Other income (loss) — net 91
−Removed: Recognized prior service cost (credit) Other income (loss) — net ( 2 )
+Added: Settlement loss (gain) Other income (loss) — net ( 21 )
+Added: Curtailment loss (gain) Other income (loss) — net ( 1 )
+Added: Amortization of net actuarial loss (gain) Other income (loss) — net 99
+Added: Amortization of prior service cost (credit) Other income (loss) — net ( 2 )
Income before income taxes 69
1 unchanged sentence
Consolidated net income $ 51
−Removed: 1 Related to the refranchising of our bottling operations in Vietnam and the sale of our ownership interest in our equity method investees in Pakistan and Indonesia.
+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.
−Removed: 2 Related to the sale of our ownership interest in our equity method investee in Pakistan.
+Added: 2 Primarily related to the refranchising of our bottling operations in the Philippines and Bangladesh.
Refer to Note 2.
54 unchanged sentences
Refer to Note 5.
−Removed: 5 Represents the fair value of the remaining milestone payment related to our acquisition of fairlife, LLC (“fairlife”) in 2020, which is contingent on fairlife achieving certain financial targets through 2024 and, if achieved, is payable in 2025.
−Removed: This milestone payment is based
−Removed: 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.
+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 is payable in 2025.
+Added: This milestone payment is based on agreed-upon formulas related to
+Added: fairlife’s operating results, the resulting value of which is not subject to a ceiling.
+Added: The fair value was determined using discounted cash flow analyses.
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.
−Removed: The Company made a milestone payment of $ 275 million during 2023.
6 The Company is obligated to return $ 12 million in cash collateral it has netted against its derivative position.
1 unchanged sentence
8 The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows:
−Removed: $ 53 million in the line item other noncurrent assets and $ 192 million in the line item other noncurrent liabilities .
+Added: $ 102 million in the line item prepaid expenses and other current assets, $ 117 million in the line item other noncurrent assets, and $ 22 million in the line item other noncurrent liabilities .
Refer to Note 5 for additional information related to the composition of our derivatives portfolio.
19 unchanged sentences
Refer to Note 5.
−Removed: 5 Represents the fair value of future milestone payments related to our acquisition of fairlife, 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, 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.
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.
−Removed: 6 The Company was not obligated to return any cash collateral it had netted against its derivative position.
+Added: The Company made a milestone payment of $ 275 million during 2023.
+Added: 6 The Company is 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.
14 unchanged sentences
Impairment of intangible assets ( 886 ) 3
−Removed: Valuation of shares in equity method investee — ( 24 ) 5
Total $ ( 983 ) $ ( 85 )
+Added: 1 The Company recorded an asset impairment charge of $ 63 million during the year ended December 31, 2024 related to certain prototypes.
+Added: This impairment charge, which was calculated based on Level 3 inputs, was driven by management’s strategic decision to cease use of the assets.
+Added: This charge was recorded in the line item selling, general and administrative expenses in our consolidated statement of income.
+Added: 2 The Company recorded an other-than-temporary impairment charge of $ 34 million during the year ended December 31, 2024 related to an equity method investee in Latin America.
+Added: This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results.
+Added: This charge was recorded in the line item other income (loss) — net in our consolidated statement of income.
+Added: 3 The Company recorded an asset impairment charge of $ 760 million during the year ended December 31, 2024 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.
+Added: The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs.
+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: Additionally, the Company recorded an asset impairment charge of $ 126 million related to a trademark in Latin America, which was primarily driven by revised projections of future operating results and changes in macroeconomic conditions.
+Added: The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs.
+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 $ 86 million.
4 The Company recorded an asset impairment charge of $ 25 million during the year ended December 31, 2023 related to the discontinuation of certain manufacturing operations in Asia Pacific.
3 unchanged sentences
This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results.
−Removed: 3 The Company recorded an other-than-temporary impairment charge of $ 96 million during the year ended December 31, 2022 related to an equity method investee in Russia.
−Removed: This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results.
−Removed: 4 During the year ended December 31, 2022, the Company recorded an impairment charge of $ 57 million related to a trademark in Asia Pacific, which was primarily driven by a change in brand strategy resulting in revised projections of future operating results for the trademark.
−Removed: The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs.
−Removed: 5 During the year ended December 31, 2022, we 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.
−Removed: Fair Value Measurements for Pension and Other Postretirement Benefit Plan Assets
+Added: Fair Value Measurements for Pension Plan Assets
The fair value hierarchy discussed above is not only applicable to assets and liabilities that are included in our consolidated balance sheet but is also applied to certain other assets that impact our consolidated financial statements.
−Removed: For example, our Company sponsors a number of pension and other postretirement benefit plans.
+Added: For example, our Company sponsors a number of pension plans.
Assets contributed to these plans by the Company become the property of the individual plans.
2 unchanged sentences
Refer to Note 14.
−Removed: The Company uses the fair value hierarchy to measure the fair value of assets held by our pension and other postretirement benefit plans.
−Removed: Pension Plan Assets
+Added: The Company uses the fair value hierarchy to measure the fair value of assets held by our pension plans.
The following table summarizes the levels within the fair value hierarchy for our pension plan assets (in millions):
26 unchanged sentences
3 Includes purchased annuity insurance contracts.
−Removed: 4 This class of assets includes actively managed emerging markets equity funds and a collective trust fund for qualified plans, invested primarily in equity securities of companies in developing and emerging markets.
+Added: 4 This class of assets primarily includes a mortgage-related fixed income securities fund, alternative investment funds and collective trust funds for qualified plans.
There are no liquidity restrictions on these investments.
2 unchanged sentences
6 This class of assets includes funds invested in real estate, including a privately held real estate investment trust, a real estate commingled pension trust fund, infrastructure limited partnerships and commingled investment funds.
−Removed: These funds seek current income and capital appreciation and can be subject to redemption restrictions, ranging from quarterly to semiannually, with a redemption notice period of up to 90 days.
+Added: These funds seek current income and capital appreciation and can be subject to quarterly redemption restrictions, with a redemption notice period of up to 90 days.
7 Primarily includes segregated portfolios of private investment funds that are invested in a portfolio of insurance-linked securities.
These assets can be subject to a semiannual redemption, with a redemption notice period of 90 days, subject to certain gate restrictions.
−Removed: The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for our U.S.
−Removed: pension plans (in millions):
+Added: 8 This class of assets includes actively managed emerging markets equity funds and a collective trust fund for qualified plans, invested primarily in equity securities of companies in developing and emerging markets.
+Added: There are no liquidity restrictions on these investments.
+Added: The following table provides a reconciliation of the beginning and ending balance of our Level 3 pension plan assets (in millions):
Securities Fixed-Income Securities Other 1
3 unchanged sentences
Transfers into (out of) Level 3 — net 4 — — 4
−Removed: Other — — 27 27
Net foreign currency translation adjustments — — 8 8
3 unchanged sentences
Purchases, sales and settlements — net ( 3 ) ( 12 ) ( 2 ) ( 17 )
−Removed: Transfers into (out of) Level 3 — net 4 — — 4
Net foreign currency translation adjustments — — ( 18 ) ( 18 )
1 unchanged sentence
1 Includes purchased annuity insurance contracts.
−Removed: Other Postretirement Benefit Plan Assets
−Removed: The following table summarizes the levels within the fair value hierarchy for our other postretirement benefit plan assets (in millions):
−Removed: December 31, 2023 December 31, 2022
−Removed: Level 1 Level 2 Other 1
−Removed: Total Level 1 Level 2 Other 1
−Removed: Cash and cash equivalents $ 6 $ 4 $ — $ 10 $ 35 $ 8 $ — $ 43
−Removed: Equity securities:
−Removed: U.S.-based companies 73 — — 73 133 — — 133
−Removed: International-based companies 4 — — 4 4 — — 4
−Removed: Fixed-income securities:
−Removed: Government bonds — 14 — 14 — 12 — 12
−Removed: Corporate bonds and debt securities — 7 — 7 — 71 — 71
−Removed: Mutual, pooled and commingled funds — 37 2 39 — 83 3 86
−Removed: Hedge funds/limited partnerships — — 18 18 — — 14 14
−Removed: Real estate — — 6 6 — — 6 6
−Removed: Other — — 5 5 — — 4 4
−Removed: Total $ 83 $ 62 $ 31 $ 176 $ 172 $ 174 $ 27 $ 373
−Removed: 1 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 14 .
Other Fair Value Disclosures
9 unchanged sentences
In 2024, the Company recorded other operating charges of $ 4,163 million.
+Added: These charges consisted of $ 3,109 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $ 760 million related to the impairment of our BodyArmor trademark, $ 133 million related to the Company’s productivity and reinvestment program and $ 126 million related to the impairment of a trademark in Latin America.
+Added: In addition, other operating charges included $ 15 million for the amortization of noncompete agreements related to the acquisition of BA Sports Nutrition, LLC (“BodyArmor”) in 2021, $ 13 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $ 7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India and $ 2 million of transaction costs related to the sale of a portion of our interest in Coke Consolidated.
+Added: These charges were partially offset by a net benefit of $ 2 million related to a revision of management’s estimates for tax litigation expense.
+Added: In 2023, the Company recorded other operating charges of $ 1,951 million.
These charges consisted of $ 1,702 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $ 164 million related to the Company’s productivity and reinvestment program and $ 35 million related to the discontinuation of certain manufacturing operations in Asia Pacific.
4 unchanged sentences
These charges were partially offset by a net gain of $ 6 million due to revisions of management’s estimates related to the Company’s strategic realignment initiatives.
−Removed: In 2021, the Company recorded other operating charges of $ 846 million.
−Removed: These charges primarily consisted of $ 369 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $ 146 million related to the Company’s strategic realignment initiatives, $ 119 million related to the BodyArmor acquisition, which included various transition and transaction costs, distributor termination fees, employee retention costs and the amortization of noncompete agreements, and $ 115 million related to the Company’s productivity and reinvestment program.
−Removed: In addition, other operating charges included an impairment charge of $ 78 million related to a trademark in Europe, charges of $ 15 million related to tax litigation and a net charge of $ 4 million related to the restructuring of our manufacturing operations in the United States.
−Removed: Refer to Note 2 for additional information on the acquisition of BodyArmor.
+Added: Refer to Note 2 for additional information on the refranchising of our bottling operations and the sale of a portion of our interest in Coke Consolidated.
Refer to Note 12 for additional information related to the tax litigation.
3 unchanged sentences
Other Nonoperating Items
−Removed: Interest Expense
−Removed: During the year ended December 31, 2021, the Company recorded a charge of $ 650 million related to the extinguishment of long-term debt, which impacted Corporate.
−Removed: Refer to Note 11.
Equity Income (Loss) — Net
1 unchanged sentence
These amounts represent the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
−Removed: Refer to Note 20 for the impact these charges had on our operating segments and Corporate.
Other Income (Loss) — Net
+Added: During 2024, the Company recognized a net gain of $ 595 million related to the refranchising of our bottling operations in the Philippines, including the impact of post-closing adjustments, and recognized a net gain of $ 506 million related to the sale of our ownership interest in an equity method investee in Thailand, including the impact of post-closing adjustments.
+Added: The Company also recognized a net gain of $ 338 million related to the sale of a portion of our interest in Coke Consolidated, a net gain of $ 303 million related to the refranchising of our bottling operations in certain territories in India, including the impact of post-closing adjustments, and a net gain of $ 290 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: These gains were partially offset by an other-than-temporary impairment charge of $ 34 million related to an equity method investee in Latin America.
During 2023, the Company recognized a net gain of $ 439 million related to the refranchising of our bottling operations in Vietnam, a net gain of $ 289 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities, and a net gain of $ 94 million related to the sale of our ownership interests in our equity method investees in Pakistan and Indonesia.
−Removed: Additionally, the Company recorded charges of $ 67 million due to pension and other postretirement benefit plan settlement charges, an other-than-temporary impairment charge of $ 39 million related to an equity method investee in Latin America and charges of $ 32 million related to the restructuring of our manufacturing operations in the United States.
+Added: Additionally, the Company recorded charges of $ 67 million due to pension and other postretirement benefit plan settlement losses, an other-than-temporary impairment charge of $ 39 million related to an equity method investee in Latin America and charges of $ 32 million related to the restructuring of our manufacturing operations in the United States.
During 2022, the Company recorded a net gain of $ 153 million related to the refranchising of our bottling operations in Cambodia.
The Company also recorded a net loss of $ 371 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, an other-than-temporary impairment charge of $ 96 million related to an equity method investee in Russia, and a net loss of $ 24 million as a result of one of our equity method investees issuing additional shares of its stock.
−Removed: During 2021, the Company recognized a gain of $ 834 million in conjunction with the BodyArmor acquisition;
−Removed: a net gain of $ 695 million related to the sale of our ownership interest in CCA, an equity method investee;
−Removed: and a net gain of $ 114 million related to the sale of our ownership interest in an equity method investee and the sale of a portion of our ownership interest in another equity method investee.
−Removed: Additionally, the Company recognized a net gain of $ 467 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities.
−Removed: The Company also recorded charges of $ 266 million related to the restructuring of our manufacturing operations in the United States and pension plan settlement charges of $ 117 million related to our strategic realignment initiatives.
−Removed: Refer to Note 2 for additional information on the acquisition of BodyArmor, the sales of our ownership interests in equity method investees, as well as the refranchising of our bottling operations in Vietnam and Cambodia.
+Added: Refer to Note 2 for additional information on our divestitures.
Refer to Note 4 for additional information on equity and debt securities.
Refer to Note 14 for additional information on pension and other postretirement benefit plan activity.
−Removed: Refer to Note 17 for additional information on the impairment charges and one of our equity method investees issuing additional shares of its stock.
−Removed: Refer to Note 19 for additional information on the Company’s strategic realignment initiatives.
−Removed: Refer to Note 20 for the impact these items had on our operating segments and Corporate.
+Added: Refer to Note 17 for additional information on the restructuring of our manufacturing operations in the United States and the impairment charges.
RESTRUCTURING
−Removed: Strategic Realignment
−Removed: In August 2020, the Company announced strategic steps to transform our organizational structure in an effort to better enable us to capture growth in the fast-changing marketplace.
−Removed: The Company has transformed into a networked global organization designed to combine the power of scale with the deep knowledge required to win locally.
−Removed: We created new operating units effective January 1, 2021, which are focused on regional and local execution.
−Removed: The operating units sit under our four geographic operating segments and are highly interconnected, with the goal of eliminating duplication of resources and scaling new products more quickly.
−Removed: The operating units work closely with five global marketing category leadership teams to rapidly scale ideas while staying close to the consumer.
−Removed: The global marketing category leadership teams primarily focus on innovation as well as marketing efficiency and effectiveness.
−Removed: The organizational structure also includes a center and a platform services organization.
−Removed: Refer to Note 20 for additional information on our organizational structure.
−Removed: The Company has incurred total pretax expenses of $ 684 million related to these strategic realignment initiatives since they commenced.
−Removed: These expenses were recorded in the line items other operating charges and other income (loss) — net in our consolidated statements of income.
−Removed: Refer to Note 20 for the impact these expenses had on our operating segments and Corporate.
−Removed: Outside services reported in the table below primarily relate to expenses in connection with legal and consulting activities.
−Removed: The strategic realignment initiatives were substantially complete as of December 31, 2021.
−Removed: The following table summarizes the balance of accrued expenses related to these strategic realignment initiatives (in millions):
−Removed: Severance Pay
−Removed: and Benefits Outside Services Other
−Removed: Direct Costs Total
−Removed: Accrued balance at beginning of year $ 181 $ 1 $ 3 $ 185
−Removed: Costs incurred 224 37 2 263
−Removed: Payments ( 265 ) ( 35 ) ( 3 ) ( 303 )
−Removed: Noncash and exchange ( 120 ) 1
−Removed: ( 2 ) — ( 122 )
−Removed: Accrued balance at end of year $ 20 $ 1 $ 2 $ 23
−Removed: Accrued balance at beginning of year $ 20 $ 1 $ 2 $ 23
−Removed: Costs incurred ( 4 ) — ( 2 ) ( 6 )
−Removed: Payments ( 15 ) — — ( 15 )
−Removed: Noncash and exchange 1 — — 1
−Removed: Accrued balance at end of year $ 2 $ 1 $ — $ 3
−Removed: Accrued balance at beginning of year $ 2 $ 1 $ — $ 3
−Removed: Payments ( 2 ) — — ( 2 )
−Removed: Noncash and exchange — ( 1 ) — ( 1 )
−Removed: Accrued balance at end of year $ — $ — $ — $ —
−Removed: 1 Includes pension settlement charges.
−Removed: Refer to Note 14.
North America Operating Unit Restructuring
1 unchanged sentence
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: The Company has incurred total pretax expenses of $ 65 million related to this restructuring program since it commenced.
+Added: The Company incurred pretax expenses of $ 27 million and $ 38 million during the years ended December 31, 2023 and 2022, respectively, related to this restructuring program.
These expenses were recorded in the line item other operating charges in our consolidated statements of income.
Refer to Note 20 for the impact these charges had on our operating segments and Corporate.
−Removed: This restructuring program was substantially complete as of December 31, 2023.
−Removed: The following table summarizes the balance of accrued expenses related to these North America operating unit restructuring initiatives (in millions):
−Removed: Severance Pay
−Removed: and Benefits Outside Services Other
−Removed: Direct Costs Total
−Removed: Costs incurred $ 38 $ — $ — $ 38
−Removed: Payments ( 1 ) — — ( 1 )
−Removed: Accrued balance at end of year $ 37 $ — $ — $ 37
−Removed: Accrued balance at beginning of year $ 37 $ — $ — $ 37
−Removed: Costs incurred 22 1 4 27
−Removed: Payments ( 58 ) ( 1 ) ( 4 ) ( 63 )
−Removed: Accrued balance at end of year $ 1 $ — $ — $ 1
+Added: This restructuring program was substantially complete as of December 31, 2023, and remaining accrued amounts were paid in 2024.
Productivity and Reinvestment Program
1 unchanged sentence
This program was expanded multiple times, with the last expansion occurring in April 2017.
−Removed: The remaining initiatives included in this program, which are primarily designed to further simplify and standardize our organization, will be completed in 2024.
+Added: While most of the initiatives included in this program were substantially completed by the end of 2024, certain initiatives, which are primarily designed to further simplify and standardize our organization, have been delayed and will be completed during 2025.
The Company has incurred total pretax expenses of $ 4,426 million related to our productivity and reinvestment program since it commenced.
8 unchanged sentences
Severance Pay
−Removed: and Benefits Outside Services Other
+Added: and Benefits Outside
+Added: Services Other
Direct Costs Total
12 unchanged sentences
Payments ( 3 ) ( 60 ) ( 72 ) ( 135 )
−Removed: Noncash and exchange — ( 7 ) 6 ( 1 )
Accrued balance at end of year $ — $ — $ 1 $ 1
17 unchanged sentences
Our Bottling Investments operating segment is composed of our consolidated bottling operations, regardless of the geographic location of the bottler.
−Removed: Our Bottling Investments operating segment also includes equity income from the majority of our equity method investees.
−Removed: Our consolidated bottling operations derive the
−Removed: majority of their revenues from the manufacture and sale of finished beverages.
−Removed: Generally, finished product operations produce higher net operating revenues but lower gross profit margins than concentrate operations.
+Added: Our consolidated bottling operations derive the majority of their revenues from the manufacture and sale of finished beverages.
+Added: Generally, finished product operations generate higher net operating revenues but lower gross profit margins than concentrate operations.
Refer to Note 3.
4 unchanged sentences
Total 100 % 100 % 100 %
−Removed: Method of Determining Segment Income or Loss
−Removed: Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting financial performance.
+Added: Chief Operating Decision Maker and Method of Determining Segment Income or Loss
+Added: Our Company’s chief operating decision maker (“CODM”) is the Chairman of the Board of Directors and Chief Executive Officer.
+Added: The CODM evaluates operating segment performance based primarily on net operating revenues and operating income (loss) to make strategic operating and resource allocation decisions for the Company.
+Added: Segment operating income is calculated on a consistent basis as our consolidated operating income.
+Added: The type of decisions made at this level include, but are not limited to, annual business plan targets and allocation of capital expenditures, which are aligned with our long-term growth objectives.
Our Company manages income taxes and certain treasury-related items, such as interest income and interest expense, on a global basis within Corporate.
−Removed: We evaluate operating segment performance based primarily on net operating revenues and operating income (loss).
+Added: Information about total assets by segment is not disclosed because such information is not regularly provided to, or used by, our CODM.
Geographic Data
5 unchanged sentences
The following table provides information related to our property, plant and equipment — net (in millions):
−Removed: Year Ended December 31, 2023 2022 2021
+Added: December 31, 2024 2023
United States $ 4,364 $ 3,682
1 unchanged sentence
Property, plant and equipment — net 1
+Added: $ 10,303 $ 9,236
+Added: 1 Property, plant and equipment — net in India represented 13 % and 12 % of consolidated property, plant and equipment — net as of December 31, 2024 and 2023, respectively.
Information about our Company’s operations by operating segment and Corporate is as follows (in millions):
3 unchanged sentences
Investments Corporate Eliminations Consolidated
−Removed: As of and for the Year Ended December 31, 2023
+Added: Year Ended December 31, 2024
Net operating revenues:
3 unchanged sentences
Total net operating revenues 8,122 6,459 18,649 5,546 3,129 6,223 97 ( 1,164 ) 47,061
+Added: Cost of goods sold 1,763 1,099 9,595 1,665 1,368 4,251 ( 253 ) ( 1,164 ) 18,324
+Added: Selling, general and
+Added: administrative expenses
+Added: 2,234 1,454 3,958 1,733 1,402 1,476 2,325 — 14,582
+Added: Other operating charges — 126 760 — — — 3,277 — 4,163
Operating income (loss) $ 4,125 $ 3,780 $ 4,336 $ 2,148 $ 359 $ 496 $ ( 5,252 ) $ — $ 9,992
1 unchanged sentence
Interest expense 1,656
−Removed: Depreciation and amortization 59 48 310 50 128 389 144 — 1,128
Equity income (loss) — net 1,770
−Removed: Income (loss) before income taxes 4,255 3,404 4,450 1,905 338 2,119 ( 3,519 ) — 12,952
−Removed: Identifiable operating assets 7,117 3,149 25,808 2,428 2
−Removed: 7,607 9,871 2
−Removed: 21,934 — 77,914
−Removed: Investments 1
−Removed: 389 712 15 71 — 13,639 4,963 — 19,789
+Added: Other income (loss) — net 1,992
+Added: Income before income taxes $ 13,086
+Added: Other segment information:
Capital expenditures $ 18 $ 1 $ 602 $ 18 $ 204 $ 734 $ 487 $ — $ 2,064
−Removed: As of and for the Year Ended December 31, 2022
+Added: Depreciation and amortization 57 29 325 45 124 319 176 — 1,075
+Added: Year Ended December 31, 2023
Net operating revenues:
2 unchanged sentences
Total net operating revenues 8,078 5,830 16,774 5,455 3,064 7,860 126 ( 1,433 ) 45,754
+Added: Cost of goods sold 1,645 1,040 8,791 1,600 1,394 5,615 ( 132 ) ( 1,433 ) 18,520
+Added: Selling, general and
+Added: administrative expenses
+Added: 2,231 1,358 3,522 1,780 1,341 1,667 2,073 — 13,972
+Added: Other operating charges — — 26 35 — — 1,890 — 1,951
Operating income (loss) $ 4,202 $ 3,432 $ 4,435 $ 2,040 $ 329 $ 578 $ ( 3,705 ) $ — $ 11,311
1 unchanged sentence
Interest expense 1,527
−Removed: Depreciation and amortization 63 39 330 58 140 435 195 — 1,260
Equity income (loss) — net 1,691
−Removed: Income (loss) before income taxes 3,952 2,879 3,768 2,320 196 1,743 ( 3,172 ) — 11,686
−Removed: Identifiable operating assets 7,088 2,067 25,760 2,368 3
−Removed: 7,325 10,232 3
−Removed: 19,158 — 73,998
−Removed: Investments 1
−Removed: 410 629 15 219 — 12,892 4,600 — 18,765
+Added: Other income (loss) — net 570
+Added: Income before income taxes $ 12,952
+Added: Other segment information:
Capital expenditures $ 43 $ 1 $ 412 $ 23 $ 192 $ 843 $ 338 $ — $ 1,852
+Added: Depreciation and amortization 59 48 310 50 128 389 144 — 1,128
+Added: Middle East & Africa Latin
+Added: America North
+Added: America Asia Pacific Global Ventures Bottling
+Added: Investments Corporate Eliminations Consolidated
Year Ended December 31, 2022
3 unchanged sentences
Total net operating revenues 7,523 4,910 15,674 5,445 2,843 7,891 94 ( 1,376 ) 43,004
+Added: Cost of goods sold 1,502 872 8,697 1,406 1,334 5,664 ( 99 ) ( 1,376 ) 18,000
+Added: Selling, general and
+Added: administrative expenses
+Added: 2,070 1,168 3,216 1,679 1,324 1,740 1,683 — 12,880
+Added: Other operating charges ( 7 ) — 19 57 — — 1,146 — 1,215
Operating income (loss) $ 3,958 $ 2,870 $ 3,742 $ 2,303 $ 185 $ 487 $ ( 2,636 ) $ — $ 10,909
1 unchanged sentence
Interest expense 882
−Removed: Depreciation and amortization 76 39 388 49 135 529 236 — 1,452
Equity income (loss) — net 1,472
−Removed: Income (loss) before income taxes 3,821 2,542 3,140 2,350 310 1,596 ( 1,334 ) — 12,425
+Added: Other income (loss) — net ( 262 )
+Added: Income before income taxes $ 11,686
+Added: Other segment information:
Capital expenditures $ 50 $ 4 $ 280 $ 22 $ 179 $ 697 $ 252 $ — $ 1,484
−Removed: 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 December 31, 2023.
−Removed: 3 Property, plant and equipment — net in the Philippines represented 10 % of consolidated property, plant and equipment — net as of December 31, 2022.
−Removed: As of December 31, 2023, the Company’s bottling operations in the Philippines met the criteria to be classified as held for sale.
−Removed: Refer to Note 2.
+Added: Depreciation and amortization 63 39 330 58 140 435 195 — 1,260
During 2024, 2023 and 2022, our operating segments and Corporate were impacted by acquisition and divestiture activities.
1 unchanged sentence
In 2024, 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 $ 1,702 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 17.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 165 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.
−Removed: Refer to Note 19.
−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.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 27 million for North America due to the restructuring of our North America operating unit.
−Removed: Refer to Note 19.
−Removed: • Operating income (loss) and income (loss) before income taxes for North America were reduced by $ 18 million and $ 50 million, respectively, 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 $ 15 million for Corporate related to our acquisition of BodyArmor.
−Removed: Refer to Note 18.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 8 million for Corporate related to tax litigation expense.
+Added: • Operating income (loss) was reduced by $ 3,109 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.
Refer to Note 17.
−Removed: • Income (loss) before income taxes was increased by $ 439 million for Corporate due to the refranchising of our bottling operations in Vietnam.
+Added: • Operating income (loss) was reduced by $ 760 million for North America due to the impairment of our BodyArmor trademark.
Refer to Note 18.
−Removed: • Income (loss) before income taxes was increased by $ 289 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) was reduced by $ 133 million for Corporate due to the Company’s productivity and reinvestment program.
Refer to Note 19.
−Removed: • Income (loss) before income taxes was increased by $ 94 million for Corporate related to the sale of our ownership interests in our equity method investees in Indonesia and Pakistan.
+Added: • Operating income (loss) was reduced by $ 126 million for Latin America due to the impairment of a trademark.
Refer to Note 17.
−Removed: • Income (loss) before income taxes was reduced by $ 146 million for Asia Pacific, $ 7 million for Bottling Investments, $ 5 million for Latin America and $ 1 million for Corporate 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 $ 67 million for Corporate due to pension and other postretirement benefit plan settlement charges.
+Added: • Operating income (loss) was reduced by $ 19 million for North America due to the restructuring of our manufacturing operations in the United States.
+Added: • Operating income (loss) was reduced by $ 15 million for Corporate due to charges related to our acquisition of BodyArmor.
Refer to Note 18.
−Removed: • Income (loss) before income taxes was reduced by $ 39 million for Latin America due to an other-than-temporary impairment charge related to an equity method investee .
+Added: • Operating income (loss) was reduced by $ 13 million for Corporate due to a payment under an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations.
+Added: • Operating income (loss) was 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.
In 2023, 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 increased by $ 7 million for Europe, Middle East and Africa and were reduced by $ 1 million for Corporate due to revisions of management’s estimates related to the Company’s strategic realignment initiatives.
−Removed: Refer to Note 19.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 1,000 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 17.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 85 million for Corporate due to the Company’s productivity and reinvestment program.
−Removed: Refer to Note 19.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 59 million for Corporate and were increased by $ 21 million for North America related to our acquisition of BodyArmor.
−Removed: Refer to Note 18.
−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 17.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 38 million for North America due to the restructuring of our North America operating unit.
+Added: • Operating income (loss) was reduced by $ 1,702 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.
Refer to Note 17.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 33 million and $ 34 million, respectively, for North America, and income (loss) before income taxes was reduced by $ 2 million for Corporate due to the restructuring of our manufacturing operations in the United States.
−Removed: • Income (loss) before income taxes was increased by $ 153 million for Corporate due to the refranchising of our bottling operations in Cambodia.
+Added: • Operating income (loss) was reduced by $ 165 million for Corporate due to the Company’s productivity and reinvestment program.
+Added: Operating income (loss) was 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 19.
−Removed: • Income (loss) before income taxes was reduced by $ 371 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) was reduced by $ 35 million for Asia Pacific due to the discontinuation of certain manufacturing operations.
+Added: • Operating income (loss) was reduced by $ 27 million for North America due to the restructuring of our North America operating unit.
Refer to Note 19.
−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.
+Added: • Operating income (loss) was reduced by $ 18 million for North America due to the restructuring of our manufacturing operations in the United States.
+Added: • Operating income (loss) was reduced by $ 15 million for Corporate due to charges related to our acquisition of BodyArmor.
Refer to Note 18.
−Removed: • Income (loss) before income taxes was reduced by $ 34 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.
+Added: • Operating income (loss) was reduced by $ 8 million for Corporate related to tax litigation expense.
Refer to Note 12.
In 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 $ 369 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 115 million for Corporate due to the Company’s productivity and reinvestment program.
−Removed: Refer to Note 19.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 98 million for Corporate and $ 21 million for North America related to various costs incurred in conjunction with our acquisition of BodyArmor.
−Removed: Refer to Note 18.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 78 million for Europe, Middle East and Africa related to the impairment of a trademark.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 63 million and $ 61 million, respectively, for Europe, Middle East and Africa;
−Removed: $ 46 million and $ 160 million, respectively, for Corporate;
−Removed: $ 12 million and $ 14 million, respectively, for Asia Pacific;
−Removed: and $ 11 million and $ 12 million, respectively, for Latin America due to the Company’s strategic realignment initiatives.
−Removed: In addition, operating income (loss) and income (loss) before income taxes were reduced by $ 14 million for North America, and income (loss) before income taxes was reduced by $ 2 million for Bottling Investments due to the Company’s strategic realignment initiatives.
−Removed: Refer to Note 19.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 52 million and $ 316 million, respectively, for North America, and income (loss) before income taxes was reduced by $ 2 million for Corporate related to the restructuring of our manufacturing operations in the United States.
−Removed: • Operating income (loss) and income (loss) before income taxes were reduced by $ 15 million for Corporate related to tax litigation expense.
−Removed: Refer to Note 12.
−Removed: • Income (loss) before income taxes was increased by $ 834 million for Corporate in conjunction with our acquisition of BodyArmor, which resulted from the remeasurement of our previously held equity interest in BodyArmor to fair value.
−Removed: Refer to Note 2.
−Removed: • Income (loss) before income taxes was increased by $ 695 million for Corporate related to the sale of our ownership interest in CCA, an equity method investee.
+Added: • Operating income (loss) was increased by $ 7 million for Europe, Middle East and Africa and was reduced by $ 1 million for Corporate due to revisions of management’s estimates related to the Company’s strategic realignment initiatives.
+Added: • Operating income (loss) was reduced by $ 1,000 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.
+Added: • Operating income (loss) was reduced by $ 85 million for Corporate due to the Company’s productivity and reinvestment program.
Refer to Note 19.
−Removed: • Income (loss) before income taxes was increased by $ 467 million for Corporate 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: • Operating income (loss) was reduced by $ 59 million for Corporate and was increased by $ 21 million for North America related to our acquisition of BodyArmor.
Refer to Note 18.
−Removed: • Income (loss) before income taxes was increased by $ 114 million for Corporate related to the sale of our ownership interest in an equity method investee and the sale of a portion of our ownership interest in another equity method investee.
−Removed: • Income (loss) before income taxes was reduced by $ 650 million for Corporate related to charges associated with the extinguishment of long-term debt.
+Added: • Operating income (loss) was reduced by $ 57 million for Asia Pacific due to the impairment of a trademark.
+Added: • Operating income (loss) was reduced by $ 38 million for North America due to the restructuring of our North America operating unit.
Refer to Note 19.
−Removed: • Income (loss) before income taxes was reduced by $ 45 million for Bottling Investments and was increased by $ 32 million for Corporate due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
+Added: • Operating income (loss) was reduced by $ 33 million for North America due to the restructuring of our manufacturing operations in the United States.
NET CHANGE IN OPERATING ASSETS AND LIABILITIES
4 unchanged sentences
( 520 ) ( 597 ) ( 960 )
−Removed: (Increase) decrease in prepaid expenses and other current assets ( 323 ) 225 ( 241 )
−Removed: Increase (decrease) in accounts payable and accrued expenses 2
+Added: (Increase) decrease in prepaid expenses and other current assets and other noncurrent assets 2
( 5,667 ) ( 323 ) 225
+Added: Increase (decrease) in accounts payable and accrued expenses 1,134 841 759
Increase (decrease) in accrued income taxes ( 823 ) ( 578 ) ( 360 )
2 unchanged sentences
1 The increase in inventories in 2022 was primarily due to improved business performance, higher costs and the buildup of inventory to manage potential supply chain disruptions.
−Removed: 2 The increase in accounts payable and accrued expenses in 2021 was primarily due to an increase in trade accounts payable, higher marketing accruals, BodyArmor acquisition-related accruals and higher annual incentive accruals.
−Removed: Refer to Note 2 for additional information regarding the BodyArmor acquisition.
+Added: 2 The increase in prepaid expenses and other current assets and other noncurrent assets in 2024 was primarily due to the IRS Tax Litigation Deposit.
+Added: Refer to Note 12.
REPORT OF MANAGEMENT
13 unchanged sentences
Based on this assessment, management believes that the Company maintained effective internal control over financial reporting as of December 31, 2024.
−Removed: The Company’s independent auditors, Ernst & Young LLP, a registered public accounting firm, are appointed by the Audit Committee of our Company’s Board of Directors, subject to ratification by our Company’s shareowners.
+Added: The Company’s independent auditors, Ernst & Young LLP, a registered public accounting firm, are appointed by the Audit Committee of our Company’s Board of Directors.
Ernst & Young LLP has audited and reported on the consolidated financial statements of The Coca-Cola Company and subsidiaries and the Company’s internal control over financial reporting.
10 unchanged sentences
February 20, 2025
−Removed: Erin May Mark Randazza
−Removed: Senior Vice President and Controller
−Removed: February 20, 2024
−Removed: Senior Vice President, Assistant Controller and Chief Accounting Officer
+Added: Senior Vice President, Controller and Chief Accounting Officer
February 20, 2025
30 unchanged sentences
Tax Court issued a supplemental opinion, siding with the IRS.
−Removed: While the Company continues to disagree 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 could ultimately be upheld.
−Removed: As a result of the application of ASC 740, Accounting for Income Taxes , the Company has recorded a tax reserve of $439 million for this matter as of December 31, 2023.
+Added: On August 2, 2024, the Tax Court entered a decision reflecting additional federal income tax of $2.7 billion for the 2007 through 2009 tax years.
+Added: With applicable interest, the total liability for the 2007 through 2009 tax years resulting from the Tax Court’s decision is $6.0 billion.
+Added: On October 22, 2024, the Company appealed the Tax Court’s decision to the U.S.
+Added: Court of Appeals for the Eleventh Circuit.
+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 December 31, 2024.
+Added: However, based on the required probability analysis and the accrual of interest through the current reporting period, the Company updated its tax reserve as of December 31, 2024 to $474 million.
Auditing management’s evaluation of uncertain tax positions, including the uncertain tax position associated with the IRS notice and opinion, was especially challenging due to the level of subjectivity and significant judgment associated with the recognition and measurement of the tax positions that are more likely than not to be sustained.
3 unchanged sentences
We also tested the completeness and accuracy of the underlying data used in the identification and measurement of uncertain tax positions.
−Removed: We evaluated evidence of management’s assessment of the opinion, including inquiries of tax counsel, inspection of technical memos, and written representations of management.
−Removed: We involved professionals with specialized skill and knowledge to assist in our evaluation of the tax technical merits of the Company’s assessment, including the assessment of whether the tax positions are more likely than not to be sustained, the amount of the potential benefits to be realized, and the application of relevant tax law.
+Added: We evaluated evidence of management’s assessment of uncertain tax positions, including inquiries of tax counsel, inspection of technical memos, and written representations of management.
+Added: We involved professionals with specialized skill and knowledge to assist in our evaluation of the tax technical merits of the Company’s assessments, including the assessments of whether the tax positions are more likely than not to be sustained, the amount of the potential benefits to be realized, and the application of relevant tax law.
We also assessed the Company’s disclosures of uncertain tax positions included in Note 12 and Note 15.
Valuation of trademarks with indefinite lives and goodwill
−Removed: Description of the Matter As described in Note 1 to the Company’s consolidated financial statements, the Company performs an annual impairment test of its indefinite-lived intangible assets, including trademarks with indefinite lives and goodwill, or more frequently if events or circumstances indicate that assets might be impaired.
+Added: Description of the Matter Included in the Company’s consolidated financial statements are trademarks with indefinite lives and goodwill of $13.3 billion and $18.1 billion, respectively, as of December 31, 2024.
+Added: As described in Note 1, management performs an annual impairment test of its indefinite-lived intangible assets, including trademarks with indefinite lives and goodwill.
Each impairment test may be qualitative or quantitative.
−Removed: Trademarks with indefinite lives and goodwill were $14.3 billion and $18.4 billion, respectively, as of December 31, 2023.
+Added: Management performs their annual impairment tests as of June 29, 2024, and more frequently if events or circumstances indicate that assets might be impaired.
+Added: The Company recorded an asset impairment charge of $760 million during the year ended December 31, 2024 related to their BodyArmor trademark in North America.
Auditing the valuation of trademarks with indefinite lives and reporting units with goodwill involved complex judgment due to the significant estimation required in determining the fair value of the trademarks with indefinite lives and related reporting units with goodwill, respectively.
2 unchanged sentences
How We Addressed the Matter in Our Audit
−Removed: We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s annual impairment tests for trademarks with indefinite lives and reporting units with goodwill.
−Removed: For example, we tested management’s risk assessment process to determine whether to perform a quantitative or qualitative test and management’s review controls over the valuation models and underlying assumptions used to develop such estimates.
+Added: We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s interim review of impairment indicators, interim impairment test, and annual impairment tests for trademarks with indefinite lives and reporting units with goodwill.
+Added: For example, we tested management’s risk assessment process to determine whether to perform a quantitative or qualitative test, management’s control over the evaluation of interim impairment indicators, and management’s review controls over the valuation models and underlying assumptions used to develop such estimates.
For impairment tests of reporting units with goodwill, we also tested controls over the determination of the carrying value of the reporting units.
−Removed: We tested the estimated fair values of the trademarks with indefinite lives and reporting units with goodwill based on our risk assessments.
+Added: We tested the trademarks with indefinite lives and reporting units with goodwill based on our risk assessments.
Our audit procedures included, among others, comparing significant judgmental inputs to observable third party and industry sources, considering other observable market transactions, and evaluating the reasonableness of management’s projected financial information by comparing to third party industry projections, third party economic growth projections, and other internal and external data.
−Removed: We performed sensitivity analyses of certain significant assumptions to evaluate the change in the fair value of the trademarks with indefinite lives and reporting units with goodwill and also assessed the historical accuracy of management’s estimates.
−Removed: In addition, we involved specialists to assist in our evaluation of certain significant assumptions used in the Company’s discounted cash flow analyses.
−Removed: We also assessed the Company’s disclosure of its annual impairment tests included in Note 1.
+Added: We performed sensitivity analyses of certain significant assumptions to evaluate the change in the fair value of the trademarks with indefinite lives and reporting units with goodwill and assessed the historical accuracy of management’s estimates.
+Added: In addition, we involved specialists to assist in our evaluation of certain significant assumptions used in the Company’s valuation model.
+Added: We also assessed the Company’s related disclosures of its valuation of trademarks with indefinite lives and goodwill.
/s/ Ernst & Young LLP
30 unchanged sentences
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.