What changed in this filing

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Item 1. Financial Statements

2025-07-24 compared with 2025-05-01 · 369 added, 137 removed, 782 unchanged (39% of the section changed)

3 unchanged sentences

(In millions except per share data)

Three Months Ended

2025 March 29,

Three Months Ended Six Months Ended

2025 June 28,

2024 June 27,

2025 June 28,

Net Operating Revenues $ 12,535 $ 12,363 $ 23,664 $ 23,663

25 unchanged sentences

(In millions)

Three Months Ended

2025 March 29,

Three Months Ended Six Months Ended

2025 June 28,

2024 June 27,

2025 June 28,

Consolidated Net Income $ 3,803 $ 2,401 $ 7,138 $ 5,586

56 unchanged sentences

(In millions)

Three Months Ended

2025 March 29,

Six Months Ended

2025 June 28,

Operating Activities

48 unchanged sentences

In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included.

Operating results for the three months ended March 28, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Operating results for the three and six months ended June 27, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025.

Sales of our ready-to-drink beverages are somewhat seasonal, with the second and third calendar quarters typically accounting for the highest sales volumes.

1 unchanged sentence

Each of our quarterly reporting periods, other than the fourth quarter, ends on the Friday closest to the last day of the corresponding quarterly calendar period.

The first quarter of 2025 and the first quarter of 2024 ended on March 28, 2025 and March 29, 2024, respectively.

The second quarter of 2025 and the second quarter of 2024 ended on June 27, 2025 and June 28, 2024, respectively.

Our fourth quarter and our fiscal year end on December 31 regardless of the day of the week on which December 31 falls.

12 unchanged sentences

We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor our concentrations of credit risk.

Refer to Note 2 for additional information on our assets held for sale and Note 4 for additional information on our captive insurance companies.

Refer to Note 4 for additional information on our captive insurance companies.

The following tables provide a summary of cash, cash equivalents, restricted cash and restricted cash equivalents that constitute the total amounts shown in our consolidated statements of cash flows (in millions):

8 unchanged sentences

ACQUISITIONS AND DIVESTITURES

Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 42 million during the three months ended March 28, 2025, which included $ 30 million of investments in alternative energy limited partnerships.

Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 179 million during the six months ended June 27, 2025, which included $ 148 million of investments in alternative energy limited partnerships.

Refer to Note 15 for additional information on these investments.

Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 8 million during the three months ended March 29, 2024.

Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the three months ended March 28, 2025 totaled $ 748 million, which primarily related to the sale of a portion of our ownership interest in Coca-Cola Europacific Partners plc, an equity method investee (“CCEP”), for which we received cash proceeds of $ 741 million and recognized a net gain of $ 331 million.

Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the three months ended March 29, 2024 totaled $ 2,893 million.

Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 25 million during the six months ended June 28, 2024.

Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the six months ended June 27, 2025 totaled $ 973 million.

In March 2025, the Company sold a portion of its ownership interest in Coca-Cola Europacific Partners plc (“CCEP”), an equity method investee, for which we received cash proceeds of $ 741 million and recognized a net gain of $ 331 million.

In May 2025, the Company refranchised its bottling operations in certain territories in India that were held for sale as of December 31, 2024, for which we received net cash proceeds of $ 218 million and recognized a net gain of $ 102 million.

Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the six months ended June 28, 2024 totaled $ 2,907 million.

The Company refranchised its bottling operations in certain territories in India in January and February 2024, for which we received net cash proceeds of $ 476 million and recognized a net gain of $ 290 million.

The Company refranchised its bottling operations in Bangladesh to Coca-Cola İçecek A.Ş., 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.

During the three months ended March 28, 2025, the Company recognized an additional loss of $ 14 million related to post-closing adjustments and a corresponding reduction in the outstanding note receivable balance.

Additionally, in February 2024, the Company refranchised its bottling operations in the Philippines to CCEP and a local business partner, for which we received net cash proceeds of $ 1,656 million and recognized a net gain of $ 599 million.

In February 2024, the Company refranchised its bottling operations in the Philippines to CCEP and a local business partner, for which we received net cash proceeds of $ 1,656 million and recognized a net gain of $ 599 million.

We also sold our ownership interest in an equity method investee in Thailand, for which we received net cash proceeds of $ 728 million and recognized a net gain of $ 516 million.

Additionally, the Company refranchised its bottling operations in Bangladesh to Coca-Cola İçecek A.Ş., an equity method investee, 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.

During the six months ended June 27, 2025, the Company recognized an additional loss of $ 14 million related to post-closing adjustments and a corresponding reduction in the outstanding note receivable balance.

These gains and losses were recorded in the line item other income (loss) — net in our consolidated statements of income.

Assets and Liabilities Held for Sale

As of March 28, 2025 and December 31, 2024, the Company’s bottling operations in 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.

As the fair values less any costs to sell exceeded the carrying values, the related assets and liabilities were recorded at their carrying values.

These assets and liabilities were included in the Bottling Investments operating segment.

The following table presents information related to the major classes of assets and liabilities that were classified as held for sale and were included in the line items prepaid expenses and other current assets and accounts payable and accrued expenses, respectively, in our consolidated balance sheet (in millions):

2025 December 31, 2024

Inventories $ 12 $ 23

Property, plant and equipment — net 107 108

Assets held for sale $ 119 $ 131

Accounts payable and accrued expenses $ 2 $ 2

Other noncurrent liabilities — 1

Liabilities held for sale $ 2 $ 3

NET OPERATING REVENUES

The following table presents net operating revenues disaggregated between the United States and International and further by line of business (in millions):

The following tables present net operating revenues disaggregated between the United States and International and further by line of business (in millions):

United States International Total

Three Months Ended March 28, 2025

Three Months Ended June 27, 2025

Concentrate operations $ 2,268 $ 6,021 $ 8,289

1 unchanged sentence

Total $ 4,935 $ 7,600 $ 12,535

Three Months Ended March 29, 2024

Three Months Ended June 28, 2024

Concentrate operations $ 2,278 $ 5,216 $ 7,494

1 unchanged sentence

Total $ 4,740 $ 7,623 $ 12,363

United States International Total

Six Months Ended June 27, 2025

Concentrate operations $ 4,195 $ 11,277 $ 15,472

Finished product operations 4,993 3,199 8,192

Total $ 9,188 $ 14,476 $ 23,664

Six Months Ended June 28, 2024

Concentrate operations $ 4,403 $ 9,746 $ 14,149

Finished product operations 4,455 5,059 9,514

Total $ 8,858 $ 14,805 $ 23,663

Refer to Note 17 for disclosures of net operating revenues by operating segment and Corporate.

2 unchanged sentences

Fair Value with Changes Recognized in Income Measurement Alternative — No Readily Determinable Fair Value

March 28, 2025

June 27, 2025

Marketable securities $ 443 $ —

7 unchanged sentences

Three Months Ended

2025 March 29,

2025 June 28,

Net gains (losses) recognized during the period related to equity securities $ 165 $ 52

3 unchanged sentences

still held at the end of the period

$ ( 23 ) $ 134

Six Months Ended

2025 June 28,

Net gains (losses) recognized during the period related to equity securities $ 150 $ 235

Net gains (losses) recognized during the period related to equity securities sold

during the period

Net unrealized gains (losses) recognized during the period related to equity securities

still held at the end of the period

Debt Securities

2 unchanged sentences

Cost Gains Losses

March 28, 2025

June 27, 2025

Trading securities

12 unchanged sentences

The carrying values of our debt securities were included in the following line items in our consolidated balance sheets (in millions):

March 28, 2025 December 31, 2024

June 27, 2025 December 31, 2024

Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities

3 unchanged sentences

Total debt securities $ 49 $ 1,923 $ 45 $ 1,631

The contractual maturities of these available-for-sale debt securities as of March 28, 2025 were as follows (in millions):

The contractual maturities of these available-for-sale debt securities as of June 27, 2025 were as follows (in millions):

Cost Estimated

6 unchanged sentences

The sale and/or maturity of available-for-sale debt securities resulted in the following realized activity (in millions):

Three Months Ended

2025 March 29,

Three Months Ended Six Months Ended

2025 June 28,

2024 June 27,

2025 June 28,

Gross gains $ 2 $ 4 $ 3 $ 5

6 unchanged sentences

The Company uses one of our consolidated captive insurance companies to reinsure group annuity insurance contracts that cover the obligations of certain of our European and Canadian pension plans.

This captive’s solvency capital funds included total equity and debt securities of $ 1,923 million and $ 1,883 million as of March 28, 2025 and December 31, 2024, respectively, which were classified in the line item other noncurrent assets in our consolidated balance sheets because the assets were not available to satisfy our current obligations.

This captive’s solvency capital funds included total equity and debt securities of $ 2,076 million and $ 1,883 million as of June 27, 2025 and December 31, 2024, respectively, which were classified in the line item other noncurrent assets in our consolidated balance sheets because the assets were not available to satisfy our current obligations.

Inventories consisted of the following (in millions):

16 unchanged sentences

Foreign currency contracts Other noncurrent liabilities 111 39

Interest rate contracts Accounts payable and accrued expenses 1 —

Commodity contracts Accounts payable and accrued expenses 7 —

Interest rate contracts Other noncurrent liabilities 767 922

11 unchanged sentences

Commodity contracts Prepaid expenses and other current assets 4 7

Commodity contracts Other noncurrent assets 2 —

Other derivative instruments Prepaid expenses and other current assets 4 —

3 unchanged sentences

Commodity contracts Accounts payable and accrued expenses 27 40

Commodity contracts Other noncurrent liabilities 2 —

Other derivative instruments Accounts payable and accrued expenses — 6

27 unchanged sentences

dollar weakens, the increase in the present value of future foreign currency cash flows is partially offset by losses in the fair value of the derivative instruments.

The total notional values of derivatives that were designated and qualified for the Company’s foreign currency cash flow hedging program were $ 11,971 million and $ 9,206 million as of March 28, 2025 and December 31, 2024, respectively.

The total notional values of derivatives that were designated and qualified for the

Company’s foreign currency cash flow hedging program were $ 11,831 million and $ 9,206 million as of June 27, 2025 and December 31, 2024, respectively.

The Company uses cross-currency swaps to hedge the changes in cash flows of certain of its foreign currency denominated debt and other monetary assets or liabilities due to fluctuations in foreign currency exchange rates.

1 unchanged sentence

The changes in fair values of the cross-currency swap derivatives are recorded in AOCI with an immediate reclassification into earnings for the changes in fair values attributable to fluctuations in foreign currency exchange rates.

The total notional value of derivatives that were designated as cash flow hedges for the Company’s foreign currency denominated assets and liabilities was $ 557 million as of both March 28, 2025 and December 31, 2024.

The Company has entered into commodity futures contracts and other derivative instruments on various commodities to mitigate the price risk associated with forecasted purchases of materials used in our manufacturing process.

1 unchanged sentence

The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of certain commodities.

The total notional values of derivatives that were designated and qualified for this program were $ 87 million and $ 58 million as of March 28, 2025 and December 31, 2024, respectively.

The total notional values of derivatives that were designated and qualified for this program were $ 65 million and $ 58 million as of June 27, 2025 and December 31, 2024, respectively.

Our Company monitors our mix of short-term debt and long-term debt regularly.

2 unchanged sentences

The objective of this hedging program is to mitigate the risk of adverse changes in benchmark interest rates on the Company’s future interest payments.

The total notional value of derivatives that were designated and qualified for this program was $ 1,000 million as of March 28, 2025.

The total notional value of derivatives that were designated and qualified for this program was $ 1,300 million as of June 27, 2025.

There were no derivatives that were designated as part of the Company’s interest rate cash flow hedging program as of December 31, 2024.

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):

The following tables present the pretax impact that changes in the fair values of derivatives designated as cash flow hedges had on other comprehensive income (“OCI”), AOCI and earnings (in millions):

in OCI Financial Statement Line Item Impacted Gain (Loss) Reclassified from AOCI into Income

Three Months Ended March 28, 2025

Three Months Ended June 27, 2025

Foreign currency contracts $ ( 501 ) Net operating revenues $ ( 69 )

5 unchanged sentences

Total $ ( 485 ) $ ( 30 )

Three Months Ended March 29, 2024

Three Months Ended June 28, 2024

Foreign currency contracts $ 160 Net operating revenues $ ( 1 )

4 unchanged sentences

Interest rate contracts 1 Interest expense —

in OCI Financial Statement Line Item Impacted Gain (Loss) Reclassified from AOCI into Income

Six Months Ended June 27, 2025

Foreign currency contracts $ ( 770 ) Net operating revenues $ ( 28 )

Foreign currency contracts ( 18 ) Cost of goods sold 4

Foreign currency contracts — Interest expense ( 2 )

Foreign currency contracts 37 Other income (loss) — net 68

Commodity contracts ( 10 ) Cost of goods sold ( 2 )

Interest rate contracts ( 1 ) Interest expense ( 1 )

Total $ ( 762 ) $ 39

Six Months Ended June 28, 2024

Foreign currency contracts $ 208 Net operating revenues $ ( 18 )

Foreign currency contracts 20 Cost of goods sold 9

Foreign currency contracts — Interest expense ( 2 )

Foreign currency contracts ( 24 ) Other income (loss) — net ( 26 )

Commodity contracts ( 2 ) Cost of goods sold ( 3 )

Interest rate contracts 2 Interest expense —

$ 204 $ ( 40 )

As of March 28, 2025, the Company estimates that it will reclassify into earnings during the next 12 months net gains of $ 4 million from the pretax amount recorded in AOCI as the anticipated cash flows occur.

As of June 27, 2025, the Company estimates that it will reclassify into earnings during the next 12 months net losses of $ 339 million from the pretax amount recorded in AOCI as the anticipated cash flows occur.

Fair Value Hedging Strategy

3 unchanged sentences

As a result, any difference is reflected in earnings as ineffectiveness.

When a derivative is no longer designated as a fair value hedge for any reason, including termination and maturity, the remaining unamortized difference between the carrying value of the hedged item at that time and the face value of the hedged item is amortized to earnings over the remaining life of the hedged item, or immediately

if the hedged item has matured or has been extinguished.

The total notional values of derivatives that were designated and qualified as fair value hedges of this type were $ 12,984 million and $ 12,628 million as of March 28, 2025 and December 31, 2024, respectively.

The following table summarizes the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings (in millions):

The total notional values of derivatives that were designated and qualified as fair value hedges of this type were $ 13,655 million and $ 12,628 million as of June 27, 2025 and December 31, 2024, respectively.

The following tables summarize the pretax impact that changes in the fair values of derivatives designated as fair value hedges had on earnings (in millions):

Hedging Instruments and Hedged Items Financial Statement Line Item Impacted Gain (Loss)

1 unchanged sentence

Three Months Ended

2025 March 29,

2025 June 28,

Interest rate contracts Interest expense $ 168 $ ( 19 )

1 unchanged sentence

Net impact of fair value hedging instruments $ ( 2 ) $ 1

Hedging Instruments and Hedged Items Financial Statement Line Item Impacted Gain (Loss)

Recognized in Income

Six Months Ended

2025 June 28,

Interest rate contracts Interest expense $ 248 $ ( 164 )

Fixed-rate debt Interest expense ( 246 ) 167

Net impact of fair value hedging instruments $ 2 $ 3

The following table summarizes the amounts recorded in our consolidated balance sheets related to hedged items in fair value hedging relationships (in millions):

2 unchanged sentences

Hedged Items Included in the Carrying Values of Hedged Items Remaining for Which Hedge Accounting Has Been Discontinued

Balance Sheet Location of Hedged Items March 28,

Balance Sheet Location of Hedged Items June 27,

2025 December 31,

2024 March 28,

2024 June 27,

2025 December 31,

2024 March 28,

2024 June 27,

2025 December 31,

3 unchanged sentences

The Company uses forward contracts and a portion of its foreign currency denominated debt, a non-derivative financial instrument, to protect the value of our net investments in a number of foreign operations.

For derivative financial instruments that are designated and qualify as hedges of net investments in foreign operations, the changes in the fair values of the derivative financial instruments are recognized in net foreign currency translation adjustments, a component of AOCI, to offset the changes in the values of the net investments being hedged.

During the three months ended June 27, 2025, the Company changed its policy for assessing the effectiveness for derivative financial instruments designated as net investment hedges to include only the changes in fair value attributable to changes in foreign currency spot rates.

The changes in the fair values of the effective portion of the derivative financial instruments are recognized in net foreign currency translation adjustments, a component of AOCI, to offset the changes in the values of the net investments being hedged.

The initial value, and subsequent changes in fair value of the excluded component, are amortized into earnings over the life of the hedging instrument.

For non-derivative financial instruments that are designated and qualify as hedges of net investments in foreign operations, the changes in the carrying values of the designated portions of the non-derivative financial instruments due to fluctuations in foreign currency exchange rates are recorded in net foreign currency translation adjustments.

2 unchanged sentences

Notional Values Gain (Loss) Recognized in OCI

as of Three Months Ended

as of Three Months Ended Six Months Ended

2025 December 31,

2024 March 28,

2025 March 29,

2024 June 27,

2025 June 28,

2024 June 27,

2025 June 28,

Foreign currency contracts $ 1,067 $ 59 $ — $ 22 $ ( 1 ) $ 24

1 unchanged sentence

Total $ 16,032 $ 13,280 $ ( 1,139 ) $ 107 $ ( 1,745 ) $ 381

The Company reclassified a gain of $ 3 million related to net investment hedges from AOCI into earnings during the three months ended March 29, 2024.

The Company did not reclassify any gains or losses during the three months ended March 28, 2025.

In addition, the Company did not have any ineffectiveness related to net investment hedges during the three months ended March 28, 2025 and March 29, 2024.

The Company reclassified a gain of $ 3 million related to net investment hedges from AOCI into earnings during the six months ended June 28, 2024.

The Company did not reclassify any gains or losses during the three and six months ended June 27, 2025, nor the three months ended June 28, 2024.

The cash inflows and outflows associated with the Company’s derivative contracts designated as net investment hedges are classified in the line item other investing activities in our consolidated statement of cash flows.

8 unchanged sentences

dollar net cash flows are immediately recognized in earnings in the line items net operating revenues, cost of goods sold or other income (loss) — net in our consolidated statement of income, as applicable.

The total notional values of derivatives related to our foreign currency economic hedges were $ 9,694 million and $ 8,620 million as of March 28, 2025 and December 31, 2024, respectively.

The total notional values of derivatives related to our foreign currency economic hedges were $ 13,455 million and $ 8,620 million as of June 27, 2025 and December 31, 2024, respectively.

The Company also uses certain derivatives as economic hedges to mitigate the price risk associated with the purchase of materials used in the manufacturing process and vehicle fuel.

The changes in the fair values of these economic hedges are immediately recognized in earnings in the line items net operating revenues, cost of goods sold, or selling, general and administrative expenses in our consolidated statement of income, as applicable.

The total notional values of derivatives related to our economic hedges of this type were $ 619 million and $ 328 million as of March 28, 2025 and December 31, 2024, respectively.

The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions):

The changes in the fair values of these economic hedges are

immediately recognized in earnings in the line items net operating revenues, cost of goods sold, or selling, general and administrative expenses in our consolidated statement of income, as applicable.

The total notional values of derivatives related to our economic hedges of this type were $ 643 million and $ 328 million as of June 27, 2025 and December 31, 2024, respectively.

The following tables present the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings (in millions):

Derivatives Not Designated as Hedging Instruments Financial Statement Line Item Impacted Gain (Loss)

1 unchanged sentence

Three Months Ended

2025 March 29,

2025 June 28,

Foreign currency contracts Net operating revenues $ ( 111 ) $ 58

4 unchanged sentences

Total $ 15 $ ( 103 )

Derivatives Not Designated as Hedging Instruments Financial Statement Line Item Impacted Gain (Loss)

Recognized in Income

Six Months Ended

2025 June 28,

Foreign currency contracts Net operating revenues $ ( 182 ) $ 119

Foreign currency contracts Cost of goods sold 79 ( 8 )

Foreign currency contracts Other income (loss) — net 96 ( 58 )

Commodity contracts Cost of goods sold ( 6 ) ( 68 )

Other derivative instruments Selling, general and administrative expenses 12 12

Total $ ( 1 ) $ ( 3 )

SUPPLY CHAIN FINANCE PROGRAM

10 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.

As of March 28, 2025 and December 31, 2024, the amount of obligations outstanding that the Company has confirmed as valid to the financial institutions under the SCF program was $ 1,231 million and $ 1,330 million, respectively.

As of June 27, 2025 and December 31, 2024, the amount of obligations outstanding that the Company has confirmed as valid to the financial institutions under the SCF program was $ 1,325 million and $ 1,330 million, respectively.

DEBT AND BORROWING ARRANGEMENTS

Loans and notes payable consist primarily of commercial paper issued in the United States.

As of March 28, 2025 and December 31, 2024, we had $ 5,045 million and $ 1,139 million, respectively, in outstanding commercial paper borrowings.

During the three months ended March 28, 2025, our bottling operations in Africa refinanced $ 485 million of current maturities of long-term debt into long-term debt .

As of June 27, 2025 and December 31, 2024, we had $ 4,040 million and $ 1,139 million, respectively, in outstanding commercial paper borrowings.

During the six months ended June 27, 2025, our bottling operations in Africa refinanced $ 569 million of current maturities of long-term debt into long-term debt .

COMMITMENTS AND CONTINGENCIES

As of March 28, 2025, we were contingently liable for guarantees of indebtedness owed by third parties of $ 726 million, of which $ 56 million was related to variable interest entities.

As of June 27, 2025, we were contingently liable for guarantees of indebtedness owed by third parties of $ 810 million, of which $ 61 million was related to variable interest entities.

Our guarantees are primarily related to third-party customers, bottlers and vendors and have arisen through the normal course of business.

31 unchanged sentences

Litigation designation is an IRS determination that forecloses to a company any and all alternative means for resolution of a tax dispute.

As a result of the IRS’ designation of

the Company’s matter for litigation, the Company was forced to either accept the IRS’ newly imposed tax assessment and pay the full amount of the asserted tax or litigate the matter in the federal courts.

As a result of the IRS’ designation of the Company’s matter for litigation, the Company was forced to either accept the IRS’ newly imposed tax assessment and pay the full amount of the asserted tax or litigate the matter in the federal courts.

The matter remains subject to the IRS’ litigation designation, preventing the Company from any attempt to settle or otherwise mutually resolve the matter with the IRS.

24 unchanged sentences

That amount, plus interest earned, would be refunded in full or in part if the Company’s tax positions are ultimately sustained on appeal.

For the three months ended March 28, 2025, the Company recorded net interest income of $ 53 million related to this tax payment in the line item income taxes in our consolidated statement of income, in accordance with our accounting policy.

The payment of the IRS invoices and the related accrued interest were recorded in the line item other noncurrent assets in our consolidated balance sheets as of March 28, 2025 and December 31, 2024.

For the three and six months ended June 27, 2025, the Company recorded net interest income of $ 54 million and $ 107 million, respectively, related to this tax payment in the line item income taxes in our consolidated statements of income, in accordance with our accounting policy.

The payment of the IRS invoices and the related accrued interest were recorded in the line item other noncurrent assets in our consolidated balance sheets as of June 27, 2025 and December 31, 2024.

On October 22, 2024, the Company appealed the Tax Court’s decision to the U.S.

2 unchanged sentences

Court of Appeals for the Eleventh Circuit on March 12, 2025.

The IRS filed its appellate brief on July 7, 2025.

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 .

6 unchanged sentences

parent company by its foreign licensees, in reliance upon the Closing Agreement, that would be recharacterized as royalties in accordance with the Opinions and the Company’s analysis.

The Company’s conclusion that it is more likely than not the Company’s tax positions will ultimately be sustained on appeal is unchanged as of March 28, 2025.

However, based on the required probability analysis and the accrual of interest through the current reporting period, we updated our tax reserve as of March 28, 2025 to $ 483 million.

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 June 27, 2025.

However, based on the required probability analysis and the accrual of interest through the current reporting period, we updated our tax reserve as of June 27, 2025 to $ 493 million.

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.

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 $ 171 million as of March 28, 2025.

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 $ 241 million as of June 27, 2025.

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.

4 unchanged sentences

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.

The Company estimates the impact of the continued application of the Tax Court Methodology for the three months ended March 28, 2025 would increase the potential aggregate incremental tax and interest liability by approximately $ 400 million.

The Company estimates the impact of the continued application of the Tax Court Methodology for the three and six months ended June 27, 2025 would increase the potential aggregate incremental tax and interest liability by approximately $ 400 million and $ 800 million, respectively.

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 %.

4 unchanged sentences

Our reserves for the Company’s self-insured losses are estimated using actuarial methods and assumptions of the insurance industry, adjusted for our specific expectations based on our claims history.

Our self-insurance reserves totaled $ 168 million as of both March 28, 2025 and December 31, 2024 .

Our self-insurance reserves totaled $ 169 million and $ 168 million as of June 27, 2025 and December 31, 2024, respectively .

OTHER COMPREHENSIVE INCOME

9 unchanged sentences

The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):

Three Months Ended March 28, 2025

Six Months Ended June 27, 2025

Shareowners of

12 unchanged sentences

The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees’ OCI (in millions):

Three Months Ended March 28, 2025 Before-Tax Amount Income Tax After-Tax Amount

Three Months Ended June 27, 2025 Before-Tax Amount Income Tax After-Tax Amount

Foreign currency translation adjustments:

Translation adjustments arising during the period $ 95 $ ( 84 ) $ 11

Gains (losses) on intra-entity transactions that are of a long-term investment nature 1,901 — 1,901

Gains (losses) on net investment hedges arising during the period 1

( 1,139 ) 284 ( 855 )

Net foreign currency translation adjustments $ 857 $ 200 $ 1,057

Gains (losses) arising during the period $ ( 485 ) $ 118 $ ( 367 )

Reclassification adjustments recognized in net income 30 ( 7 ) 23

Net gains (losses) on derivatives 1

$ ( 455 ) $ 111 $ ( 344 )

Available-for-sale debt securities:

Unrealized gains (losses) arising during the period $ 16 $ ( 6 ) $ 10

Net change in unrealized gains (losses) on available-for-sale debt securities 2

$ 16 $ ( 6 ) $ 10

Pension and other postretirement benefit liabilities:

Net pension and other postretirement benefit liabilities arising during the period $ ( 22 ) $ 4 $ ( 18 )

Reclassification adjustments recognized in net income 26 ( 7 ) 19

Net change in pension and other postretirement benefit liabilities $ 4 $ ( 3 ) $ 1

Other comprehensive income (loss) attributable to shareowners of The Coca-Cola

Company $ 422 $ 302 $ 724

1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.

2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.

Six Months Ended June 27, 2025 Before-Tax Amount Income Tax After-Tax Amount

Foreign currency translation adjustments:

Translation adjustments arising during the period $ 103 $ ( 93 ) $ 10

Reclassification adjustments recognized in net income 34 ( 2 ) 32

Gains (losses) on intra-entity transactions that are of a long-term investment nature 2,911 — 2,911

19 unchanged sentences

2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.

Three Months Ended March 29, 2024 Before-Tax Amount Income Tax After-Tax Amount

Three Months Ended June 28, 2024 Before-Tax Amount Income Tax After-Tax Amount

Foreign currency translation adjustments:

Translation adjustments arising during the period $ ( 1,109 ) $ 127 $ ( 982 )

Gains (losses) on intra-entity transactions that are of a long-term investment nature ( 170 ) — ( 170 )

Gains (losses) on net investment hedges arising during the period 1

107 ( 27 ) 80

Net foreign currency translation adjustments $ ( 1,172 ) $ 100 $ ( 1,072 )

Gains (losses) arising during the period $ 156 $ ( 35 ) $ 121

Reclassification adjustments recognized in net income ( 4 ) 1 ( 3 )

Net gains (losses) on derivatives 1

$ 152 $ ( 34 ) $ 118

Available-for-sale debt securities:

Unrealized gains (losses) arising during the period $ ( 38 ) $ 13 $ ( 25 )

Reclassification adjustments recognized in net income ( 2 ) — ( 2 )

Net change in unrealized gains (losses) on available-for-sale debt securities 2

$ ( 40 ) $ 13 $ ( 27 )

Pension and other postretirement benefit liabilities:

Net pension and other postretirement benefit liabilities arising during the period $ 4 $ 6 $ 10

Reclassification adjustments recognized in net income 23 ( 6 ) 17

Net change in pension and other postretirement benefit liabilities $ 27 $ — $ 27

Other comprehensive income (loss) attributable to shareowners of The Coca-Cola

Company $ ( 1,033 ) $ 79 $ ( 954 )

1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.

2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.

Six Months Ended June 28, 2024 Before-Tax Amount Income Tax After-Tax Amount

Foreign currency translation adjustments:

Translation adjustments arising during the period $ ( 1,143 ) $ 92 $ ( 1,051 )

Reclassification adjustments recognized in net income 103 — 103

Gains (losses) on intra-entity transactions that are of a long-term investment nature ( 688 ) — ( 688 )

7 unchanged sentences

Available-for-sale debt securities:

Unrealized gains (losses) arising during the period $ ( 38 ) $ 13 $ ( 25 )

Reclassification adjustments recognized in net income 4 ( 1 ) 3

9 unchanged sentences

2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.

The following table presents the amounts and line items in our consolidated statement of income where adjustments reclassified from AOCI into income were recorded (in millions):

The following table presents the amounts and line items in our consolidated statements of income where adjustments reclassified from AOCI into income were recorded (in millions):

Amount Reclassified from AOCI

Description of AOCI Component Financial Statement Line Item Impacted Three Months Ended March 28, 2025

Description of AOCI Component Financial Statement Line Item Impacted Three Months Ended June 27, 2025 Six Months Ended June 27, 2025

Foreign currency translation adjustments:

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Shareowners of The Coca-Cola Company

Three Months Ended March 28, 2025 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests

Three Months Ended June 27, 2025 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests

March 28, 2025 4,304 $ 27,754 $ 77,189 $ ( 16,482 ) $ 1,760 $ 19,873 $ ( 56,138 ) $ 1,552

Comprehensive income (loss) — 4,573 3,810 724 — — — 39

Dividends paid/payable to

shareowners of The Coca-Cola

Company ($ 0.51 per share)

— ( 2,196 ) ( 2,196 ) — — — — —

Dividends paid to noncontrolling

— ( 7 ) — — — — — ( 7 )

Contributions by noncontrolling interests — 13 — — — — — 13

Purchases of treasury stock ( 1 ) ( 81 ) — — — — ( 81 ) —

Impact related to stock-based

compensation plans 1 126 — — — 97 29 —

June 27, 2025 4,304 $ 30,182 $ 78,803 $ ( 15,758 ) $ 1,760 $ 19,970 $ ( 56,190 ) $ 1,597

Shareowners of The Coca-Cola Company

Six Months Ended June 27, 2025 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests

December 31, 2024 4,302 $ 26,372 $ 76,054 $ ( 16,843 ) $ 1,760 $ 19,801 $ ( 55,916 ) $ 1,516

6 unchanged sentences

— ( 9 ) — — — — — ( 9 )

Contributions by noncontrolling interests — 13 — — — — — 13

Purchases of treasury stock ( 5 ) ( 360 ) — — — — ( 360 ) —

1 unchanged sentence

compensation plans 7 255 — — — 169 86 —

June 27, 2025 4,304 $ 30,182 $ 78,803 $ ( 15,758 ) $ 1,760 $ 19,970 $ ( 56,190 ) $ 1,597

Shareowners of The Coca-Cola Company

Three Months Ended June 28, 2024 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests

March 29, 2024 4,308 $ 27,946 $ 74,868 $ ( 14,504 ) $ 1,760 $ 19,321 $ ( 55,016 ) $ 1,517

Comprehensive income (loss) — 1,505 2,411 ( 954 ) — — — 48

Dividends paid/payable to

shareowners of The Coca-Cola

Company ($ 0.485 per share)

— ( 2,090 ) ( 2,090 ) — — — — —

Dividends paid to noncontrolling

interests — ( 7 ) — — — — — ( 7 )

Purchases of treasury stock ( 3 ) ( 156 ) — — — — ( 156 ) —

Impact related to stock-based

compensation plans 4 213 — — — 147 66 —

June 28, 2024 4,309 $ 27,411 $ 75,189 $ ( 15,458 ) $ 1,760 $ 19,468 $ ( 55,106 ) $ 1,558

Shareowners of The Coca-Cola Company

Three Months Ended March 29, 2024 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests

Six Months Ended June 28, 2024 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests

December 31, 2023 4,308 $ 27,480 $ 73,782 $ ( 14,275 ) $ 1,760 $ 19,209 $ ( 54,535 ) $ 1,539

10 unchanged sentences

compensation plans 14 465 — — — 259 206 —

March 29, 2024 4,308 $ 27,946 $ 74,868 $ ( 14,504 ) $ 1,760 $ 19,321 $ ( 55,016 ) $ 1,517

June 28, 2024 4,309 $ 27,411 $ 75,189 $ ( 15,458 ) $ 1,760 $ 19,468 $ ( 55,106 ) $ 1,558

On July 22, 2025, we sold a noncontrolling interest in our bottling operations in India to a local partner for approximately $ 1.4 billion.

SIGNIFICANT OPERATING AND NONOPERATING ITEMS

Other Operating Charges

During the three months ended March 28, 2025, the Company recorded other operating charges of $ 73 million.

During the three months ended June 27, 2025, the Company recorded other operating charges of $ 71 million.

These charges primarily included $ 31 million related to the impairment of a trademark in Latin America, $ 28 million related to the Company’s productivity and reinvestment program, $ 7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India, $ 4 million for the amortization of noncompete agreements related to the BA Sports Nutrition, LLC (“BodyArmor”) acquisition in 2021 and $ 2 million related to tax litigation expense.

During the six months ended June 27, 2025, the Company recorded other operating charges of $ 144 million.

These charges consisted of $ 47 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, LLC (“fairlife”) in 2020, which brought the total liability to $ 6,173 million and was paid in March 2025.

Additionally, other operating charges included $ 11 million related to the Company’s productivity and reinvestment program, $ 9 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $ 3 million for the amortization of noncompete agreements related to the BA Sports Nutrition, LLC (“BodyArmor”) acquisition in 2021 and $ 3 million related to tax litigation expense.

During the three months ended March 29, 2024, the Company recorded other operating charges of $ 1,573 million.

Additionally, other operating charges included $ 39 million related to the Company’s productivity and reinvestment program, $ 31 million related to the impairment of a trademark in Latin America, $ 8 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $ 7 million for the amortization of noncompete agreements related to the BodyArmor acquisition, $ 7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India and $ 5 million related to tax litigation expense.

During the three months ended June 28, 2024, the Company recorded other operating charges of $ 1,370 million.

These charges consisted of $ 1,337 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition, $ 32 million related to the Company’s productivity and reinvestment program and $ 3 million for the amortization of noncompete agreements related to the BodyArmor acquisition.

These charges were partially offset by a net benefit of $ 2 million related to a revision of management’s estimates for tax litigation expense.

During the six months ended June 28, 2024, the Company recorded other operating charges of $ 2,943 million.

These charges consisted of $ 2,102 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 and $ 68 million related to the Company’s productivity and reinvestment program.

In addition, other operating charges included $ 7 million for transaction costs related to the refranchising of our bottling operations in certain territories in India, $ 4 million for the amortization of noncompete agreements related to the BodyArmor acquisition and $ 1 million related to tax litigation expense.

In addition, other operating charges included $ 7 million for transaction costs related to the refranchising of our bottling operations in certain territories in India and $ 7 million for the amortization of noncompete agreements related to the BodyArmor acquisition.

These charges were partially offset by a net benefit of $ 1 million related to a revision of management’s estimates for tax litigation expense.

Refer to Note 2 for additional information on the refranchising of our bottling operations in certain territories in India.

1 unchanged sentence

Refer to Note 13 for additional information on the Company’s restructuring initiatives.

Refer to Note 16 for additional information on the fairlife acquisition and the BodyArmor impairment.

Refer to Note 17 for the impact these charges had on our operating segments and Corporate.

Refer to Note 16 for additional information on the fairlife acquisition and the impairments.

Refer to Note 17 for the impact certain of these charges had on our operating segments and Corporate.

Other Nonoperating Items

Equity Income (Loss) — Net

During the three months ended March 28, 2025 and March 29, 2024, the Company recorded net charges of $ 8 million and $ 25 million, respectively.

During the three and six months ended June 27, 2025, the Company recorded net charges of $ 20 million and $ 28 million, respectively.

During the three and six months ended June 28, 2024, the Company recorded net charges of $ 24 million and $ 49 million, respectively.

These amounts represent the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.

Other Income (Loss) — Net

During the three months ended March 28, 2025, the Company recognized a net gain of $ 331 million related to the sale of a portion of our ownership interest in CCEP, an impairment charge of $ 25 million related to an equity method investee in Latin America and a net loss of $ 19 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.

The Company also recorded charges of $ 25 million and $ 11 million for special termination benefits and a curtailment loss, respectively, related to non-U.S.

During the three months ended June 27, 2025, the Company recognized a net gain of $ 163 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, a net gain of $ 102 million related to the refranchising of our bottling operations in certain territories in India, an other-than-temporary impairment charge of $ 40 million related to an equity method investee in Latin America and a charge of $ 28 million related to assets held for sale.

During the six months ended June 27, 2025, the Company recognized a net gain of $ 331 million related to the sale of a portion of our ownership interest in CCEP, a net gain of $ 144 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 $ 102 million related to the refranchising of our bottling operations in certain territories in India.

The Company also recorded other-than-temporary impairment charges of $ 40 million related to an equity method investee in Latin America and $ 25 million related to a joint venture in Latin America, as well as a charge of $ 28 million related to assets held for sale, and charges of $ 25 million and $ 11 million for special termination benefits and a curtailment loss, respectively, related to non-U.S.

pension activity.

During the three months ended March 29, 2024, the Company recognized net gains of $ 599 million and $ 293 million related to the refranchising of our bottling operations in the Philippines and certain territories in India, respectively.

During the three months ended June 28, 2024, the Company recognized a net gain of $ 50 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 an other-than-temporary impairment charge of $ 34 million related to an equity method investee in Latin America.

During the six months ended June 28, 2024, the Company recognized net gains of $ 599 million and $ 290 million related to the refranchising of our bottling operations in the Philippines and certain territories in India, respectively.

The Company also recognized a net gain of $ 516 million related to the sale of our ownership interest in an equity method investee in Thailand.

Additionally, the Company recognized a net gain of $ 228 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.

These gains were partially offset by an other-than-temporary impairment charge of $ 34 million related to an equity method investee in Latin America and a loss of $ 7 million related to post-closing adjustments for the refranchising of our bottling operations in Vietnam in 2023.

Refer to Note 2 for additional information on the sale of our ownership interest in CCEP, the sale of our ownership interest in an equity method investee in Thailand and the refranchising of our bottling operations.

2 unchanged sentences

pension curtailment and special termination benefits.

Refer to Note 16 for additional information on the impairment charge.

Refer to Note 16 for additional information on the impairment charges and the assets held for sale.

RESTRUCTURING

3 unchanged sentences

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.

During the three months ended March 28, 2025 and March 29, 2024, the Company incurred expenses of $ 11 million and $ 36 million, respectively, related to our productivity and reinvestment program.

During the three and six months ended June 27, 2025, the Company incurred expenses of $ 28 million and $ 39 million, respectively, and during the three and six months ended June 28, 2024, incurred expenses of $ 32 million and $ 68 million, respectively, related to our productivity and reinvestment program.

These expenses primarily included internal and external costs associated with the implementation of the program’s initiatives and were recorded in the line item other operating charges in our consolidated statements of income.

6 unchanged sentences

Three Months Ended

2025 March 29,

2024 March 28,

2025 March 29,

2025 June 28,

2024 June 27,

2025 June 28,

Service cost $ 25 $ 26 $ 1 $ 1

4 unchanged sentences

Amortization of net actuarial loss (gain) 26 25 — ( 1 )

Net periodic benefit cost (income) $ 21 $ 12 $ 2 $ 2

1 The weighted-average expected long-term rates of return on plan assets used in computing 2025 net periodic benefit cost (income) were 7.00 % for pension plans and 6.75 % for other postretirement benefit plans.

Pension Plans Other Postretirement

Benefit Plans

Six Months Ended

2025 June 28,

2024 June 27,

2025 June 28,

Service cost $ 51 $ 53 $ 2 $ 2

Interest cost 149 154 5 9

Expected return on plan assets 1

( 208 ) ( 235 ) ( 2 ) ( 4 )

Amortization of prior service cost (credit) — 1 ( 1 ) ( 2 )

Amortization of net actuarial loss (gain) 51 51 — ( 2 )

Curtailment loss (gain) 2

5 unchanged sentences

The Company intends to convert the buy-in to a buy-out in the future, at which time the insurer would assume full responsibility for the plan obligations.

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.

During the three months ended March 28, 2025, the Company contributed $ 11 million to our pension trusts, offset by a $ 61 million transfer of surplus non-U.S.

All of the amounts in the tables above, other than service cost, were recorded in the line item other income (loss) — net in our consolidated statements of income.

During the six months ended June 27, 2025, the Company contributed $ 17 million to our pension trusts, offset by $ 331 million in transfers of surplus non-U.S.

plan assets from pension trusts to general assets of the Company.

1 unchanged sentence

The Company contributed $ 16 million to our pension trusts, offset by a $ 44 million transfer of surplus non-U.S.

plan assets from pension trusts to general assets of the Company during the three months ended March 29, 2024.

The Company recorded income taxes of $ 722 million ( 17.8 % effective tax rate) and $ 687 million ( 17.7 % effective tax rate) during the three months ended March 28, 2025 and March 29, 2024, respectively.

The Company’s effective tax rates for the three months ended March 28, 2025 and March 29, 2024 vary from the statutory U.S.

plan assets from pension trusts to general assets of the Company during the six months ended June 28, 2024.

The Company recorded income taxes of $ 993 million ( 20.7 % effective tax rate) and $ 627 million ( 20.7 % effective tax rate) during the three months ended June 27, 2025 and June 28, 2024, respectively.

The Company recorded income taxes of $ 1,715 million ( 19.4 % effective tax rate) and $ 1,314 million ( 19.0 % effective tax rate) during the six months ended June 27, 2025 and June 28, 2024, respectively.

The Company’s effective tax rates for the three and six months ended June 27, 2025 and June 28, 2024 vary from the statutory U.S.

federal tax rate of 21.0 %, primarily due to the tax impact of significant operating and nonoperating items, as described in Note 12, along with the tax benefits of having significant earnings generated outside of the United States and significant earnings generated in investments accounted for under the equity method, both of which are generally taxed at rates lower than the statutory U.S.

federal tax rate.

The Company’s effective tax rate for the three months ended March 28, 2025 included $ 143 million of net tax benefits related to various discrete tax items, including net interest income of $ 53 million related to the IRS Tax Litigation Deposit recorded in the line item income taxes in our consolidated statement of income, in accordance with our accounting policy, and a tax benefit of $ 85 million related to a change in the Company’s indefinite reinvestment assertion for certain foreign entities.

During the three months ended March 28, 2025, the Company invested $ 30 million in limited partnerships that receive tax credits and other tax benefits by constructing, owning and operating alternative energy generation facilities.

During the three months ended March 28, 2025, the Company received tax credits and other income tax benefits of $ 9 million and recognized amortization expense of $ 7 million related to all of our investments of this nature.

The amount of non-income tax-related activity and other returns related to these investments was not material during the three months ended March 28, 2025.

As of March 28, 2025, the carrying value of these investments was $ 65 million.

The Company recorded $ 123 million of unfunded commitments related to these investments in the line item accounts payable and accrued expenses in our consolidated balance sheet as of March 28, 2025 and December 31, 2024.

The Company’s effective tax rates for the three and six months ended June 27, 2025 included $ 12 million and $ 155 million, respectively, of net tax benefits related to various discrete tax items, including net interest income of $ 54 million and

$ 107 million, respectively, related to the IRS Tax Litigation Deposit recorded in the line item income taxes in our consolidated statements of income, in accordance with our accounting policy.

The Company’s effective tax rate for the six months ended June 27, 2025 also included a tax benefit of $ 85 million related to a change in the Company’s indefinite reinvestment assertion for certain foreign entities.

The Company’s effective tax rates for the three and six months ended June 28, 2024 included $ 119 million and $ 60 million, respectively, of net tax expense related to various discrete tax items, including the resolution of certain foreign tax matters.

During the six months ended June 27, 2025, the Company invested $ 148 million in limited partnerships that receive tax credits and other tax benefits by constructing, owning and operating alternative energy generation facilities.

During the three and six months ended June 27, 2025, the Company received tax credits and other income tax benefits of $ 146 million and $ 155 million, respectively, and recognized amortization expense of $ 135 million and $ 142 million, respectively, related to all of our investments of this nature.

The amount of non-income tax-related activity and other returns related to these investments was not material during the six months ended June 27, 2025.

As of June 27, 2025, the carrying value of these investments was $ 48 million.

The Company expects to fulfill these unfunded commitments in 2025.

2 unchanged sentences

Commissioner (February 9, 2023) controlled as to the validity of those regulations.

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.

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.

With applicable interest, the total liability for the 2007 through 2009 tax years resulting from the Tax Court’s decision is $ 6.0 billion.

8 unchanged sentences

The following tables summarize assets and liabilities measured at fair value on a recurring basis (in millions):

March 28, 2025 Level 1 Level 2 Level 3 Other 3

June 27, 2025 Level 1 Level 2 Level 3 Other 3

Equity securities with readily determinable values 1

46 unchanged sentences

Refer to Note 6 for additional information related to the composition of our derivatives portfolio.

Gross realized and unrealized gains and losses on Level 3 assets and liabilities, excluding the contingent consideration liability, were not significant for the three months ended March 28, 2025 and March 29, 2024.

Gross realized and unrealized gains and losses on Level 3 assets and liabilities, excluding the contingent consideration liability, were not significant for the three and six months ended June 27, 2025 and June 28, 2024.

The Company recognizes transfers between levels within the hierarchy as of the beginning of the reporting period.

Gross transfers between levels within the hierarchy were not significant for the three months ended March 28, 2025 and March 29, 2024.

Gross transfers between levels within the hierarchy were not significant for the three and six months ended June 27, 2025 and June 28, 2024.

Nonrecurring Fair Value Measurements

During the three months ended March 28, 2025, the Company recorded an other-than-temporary impairment charge of $ 25 million related to a joint venture in Latin America.

The gains and losses on assets measured at fair value on a nonrecurring basis are summarized in the following table (in millions):

Gains (Losses)

Three Months Ended Six Months Ended

2025 June 28,

2024 June 27,

2025 June 28,

Other-than-temporary impairment charges $ ( 40 ) 1

Impairment of intangible assets ( 31 ) 2

Assets held for sale ( 28 ) 3

Total $ ( 99 ) $ ( 34 ) $ ( 124 ) $ ( 794 )

1 During the three and six months ended June 27, 2025 and June 28, 2024, the Company recorded other-than-temporary impairment charges of $ 40 million and $ 34 million, respectively, related to an equity method investee in Latin America.

These impairment charges were derived using Level 3 inputs and were primarily driven by revised projections of future operating results.

These charges were recorded in the line item other income (loss) — net in our consolidated statements of income.

2 During the three and six months ended June 27, 2025, the Company recorded an asset impairment charge of $ 31 million related to a trademark in Latin America.

This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results and changes in macroeconomic conditions.

This charge was recorded in the line item other operating charges in our consolidated statements of income.

The remaining carrying value of the trademark is $ 55 million.

3 The Company is required to record assets and liabilities that are held for sale at the lower of carrying value or fair value less any costs to sell based on the agreed-upon sale price.

During the three and six months ended June 27, 2025, the Company recorded a charge of $ 28 million in the line item other income (loss) — net in our consolidated statements of income.

This charge was due to the write-down of assets held for sale related to the refranchising of certain bottling operations in Ghana.

This charge, which was calculated based on Level 3 inputs, primarily impacted the line item property, plant and equipment in our consolidated balance sheet.

4 During the six months ended June 27, 2025, the Company recorded an other-than-temporary impairment charge of $ 25 million related to a joint venture in Latin America.

This impairment charge was derived using Level 3 inputs and was due to the joint venture’s restructuring and planned liquidation.

This charge was recorded in the line item other income (loss) — net in our consolidated statement of income.

During the three months ended March 29, 2024, the Company recorded an asset impairment charge of $ 760 million related to our BodyArmor trademark in North America, which was primarily driven by revised projections of future operating results and higher discount rates resulting from changes in macroeconomic conditions since the acquisition date.

5 During the six months ended June 28, 2024, the Company recorded an asset impairment charge of $ 760 million related to our BodyArmor trademark in North America, which was primarily driven by revised projections of future operating results and higher discount rates resulting from changes in macroeconomic conditions since the acquisition date.

The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs.

5 unchanged sentences

Where quoted prices are not available, the fair value is estimated using discounted cash flows and market-based expectations for interest rates, credit risk and the contractual terms of the debt instruments.

As of March 28, 2025, the carrying value and fair value of our long-term debt, including the current portion, were $ 43,693 million and $ 38,736 million, respectively.

As of June 27, 2025, the carrying value and fair value of our long-term debt, including the current portion, were $ 45,067 million and $ 40,184 million, respectively.

As of December 31, 2024, the carrying value and fair value of our long-term debt, including the current portion, were $ 43,023 million and $ 38,052 million, respectively.

OPERATING SEGMENTS

The Global Ventures operating segment was established primarily to oversee the Company’s ownership of Costa Limited (“Costa”), innocent and doğadan, as well as the fees earned pursuant to distribution coordination agreements between the Company and Monster Beverage Corporation (“Monster”).

In November 2024, we announced plans to sunset our Global Ventures operating segment to streamline and simplify our operating structure.

Effective January 1, 2025, the results of our Costa (excluding the ready-to-drink business), innocent and doğadan businesses are reported within the Company’s Europe, Middle East and Africa operating segment.

Costa’s ready-to-drink business and the fees related to Monster are reported in the respective geographic operating segments.

Our historical operating segment reporting disclosed below has been recast to reflect our current organizational structure.

I nformation about our Company’s operations by operating segment and Corporate is as follows (in millions):

Information about our Company’s operations by operating segment and Corporate is as follows (in millions):

Europe, Middle East & Africa Latin

2 unchanged sentences

Investments Corporate Eliminations Consolidated

Three Months Ended March 28, 2025

Three Months Ended June 27, 2025

Net operating revenues:

14 unchanged sentences

Depreciation and amortization 55 8 81 10 76 49 — 279

Three Months Ended March 29, 2024

Three Months Ended June 28, 2024

Net operating revenues:

15 unchanged sentences

Information about total assets by segment is not disclosed because such information is not regularly provided to, or used by, our Chief Operating Decision Maker.

During the three months ended March 28, 2025 and March 29, 2024, our operating segments and Corporate were impacted by acquisition and divestiture activities.

During the three and six months ended June 27, 2025 and June 28, 2024, our operating segments and Corporate were impacted by acquisition and divestiture activities.

Refer to Note 2.

Additionally, during the three months ended March 28, 2025, the results of our operating segments and Corporate were impacted by the following items:

Additionally, during the three months ended June 27, 2025, the results of our operating segments and Corporate were impacted by the following items:

• Operating income (loss) was reduced by $ 31 million for Latin America due to the impairment of a trademark.

Refer to Note 16.

• Operating income (loss) was reduced by $ 28 million for Corporate due to the Company’s productivity and reinvestment program.

Refer to Note 13.

• 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.

• Operating income (loss) was reduced by $ 4 million for Corporate due to charges related to our acquisition of BodyArmor.

Refer to Note 12.

During the three months ended June 28, 2024, the results of our operating segments and Corporate were impacted by the following items:

• Operating income (loss) was reduced by $ 1,337 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.

Refer to Note 16.

• Operating income (loss) was reduced by $ 32 million for Corporate due to the Company’s productivity and reinvestment program.

Refer to Note 13.

• Operating income (loss) was reduced by $ 9 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.

• Operating income (loss) was reduced by $ 7 million for North America due to the restructuring of our manufacturing operations in the United States.

• Operating income (loss) was reduced by $ 3 million for Corporate due to charges related to our acquisition of BodyArmor.

Refer to Note 12.

During the three months ended March 29, 2024, the results of our operating segments and Corporate were impacted by the following items:

Europe, Middle East & Africa Latin

America North

America Asia Pacific Bottling

Investments Corporate Eliminations Consolidated

Six Months Ended June 27, 2025

Net operating revenues:

Third party $ 5,489 $ 3,064 $ 9,387 $ 2,789 $ 2,870 $ 65 $ — $ 23,664

Intersegment 344 — 3 204 4 — ( 555 ) —

Total net operating revenues 5,833 3,064 9,390 2,993 2,874 65 ( 555 ) 23,664

Cost of goods sold 1,654 537 4,511 866 2,028 ( 164 ) ( 555 ) 8,877

Selling, general and administrative expenses 1,789 635 1,917 856 668 839 — 6,704

Other operating charges — 31 — — — 113 — 144

Operating income (loss) $ 2,390 $ 1,861 $ 2,962 $ 1,271 $ 178 $ ( 723 ) $ — $ 7,939

Interest income 368

Interest expense 832

Equity income (loss) — net 912

Other income (loss) — net 466

Income before income taxes $ 8,853

Other segment information:

Capital expenditures $ 90 $ 1 $ 269 $ 5 $ 224 $ 162 $ — $ 751

Depreciation and amortization 99 15 162 22 152 96 — 546

Six Months Ended June 28, 2024

Net operating revenues:

Third party $ 5,308 $ 3,182 $ 9,094 $ 2,661 $ 3,352 $ 66 $ — $ 23,663

Intersegment 352 — 6 342 4 — ( 704 ) —

Total net operating revenues 5,660 3,182 9,100 3,003 3,356 66 ( 704 ) 23,663

Cost of goods sold 1,549 566 4,625 835 2,361 ( 185 ) ( 704 ) 9,047

Selling, general and administrative expenses 1,749 750 1,842 865 741 953 — 6,900

Other operating charges — — 760 — — 2,183 — 2,943

Operating income (loss) $ 2,362 $ 1,866 $ 1,873 $ 1,303 $ 254 $ ( 2,885 ) $ — $ 4,773

Interest income 521

Interest expense 800

Equity income (loss) — net 891

Other income (loss) — net 1,515

Income before income taxes $ 6,900

Other segment information:

Capital expenditures $ 102 $ 1 $ 217 $ 10 $ 328 $ 134 $ — $ 792

Depreciation and amortization 90 14 159 21 169 78 — 531

During the six months ended June 27, 2025, the results of our operating segments and Corporate were impacted by the following items:

• Operating income (loss) was reduced by $ 47 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.

• Operating income (loss) was reduced by $ 39 million for Corporate due to the Company’s productivity and reinvestment program.

Refer to Note 13.

• Operating income (loss) was reduced by $ 31 million for Latin America due to the impairment of a trademark.

Refer to Note 16.

• Operating income (loss) was reduced by $ 8 million for Corporate due to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations.

• Operating income (loss) was reduced by $ 7 million for Corporate due to charges related to our acquisition of BodyArmor.

Refer to Note 12.

• 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.

During the six months ended June 28, 2024, the results of our operating segments and Corporate were impacted by the following items:

• Operating income (loss) was reduced by $ 2,102 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.

Refer to Note 16.

• Operating income (loss) was reduced by $ 760 million for North America due to the impairment of our BodyArmor trademark.

2 unchanged sentences

Refer to Note 13.

• Operating income (loss) was reduced by $ 10 million for North America due to the restructuring of our manufacturing operations in the United States.

• 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.

3 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.

What changed 10-Q

Item 1. Financial Statements