What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-04-30 · 333 added, 131 removed, 750 unchanged (38% of the section changed)

3 unchanged sentences

(In millions except per share data)

Three Months Ended

2026 March 28,

Three Months Ended Six Months Ended

2026 June 27,

Net Operating Revenues $ 13,380 $ 12,535 $ 25,852 $ 23,664

25 unchanged sentences

(In millions)

Three Months Ended

2026 March 28,

Three Months Ended Six Months Ended

2026 June 27,

Consolidated Net Income $ 4,438 $ 3,803 $ 8,404 $ 7,138

57 unchanged sentences

(In millions)

Three Months Ended

2026 March 28,

Six Months Ended

2026 June 27,

Operating Activities

46 unchanged sentences

However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of The Coca-Cola Company for the year ended December 31, 2025.

Certain other amounts in the prior years’ consolidated financial statements and notes have been revised to conform to the current year presentation.

Certain other amounts in the prior year’s consolidated financial statements and notes have been revised to conform to the current year presentation.

When used in these notes, the terms “The Coca-Cola Company,” “Company,” “we,” “us” and “our” mean The Coca-Cola Company and all entities included in our consolidated financial statements.

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

Operating results for the three months ended April 3, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

Operating results for the three and six months ended July 3, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

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 2026 and the first quarter of 2025 ended on April 3, 2026 and March 28, 2025, respectively.

The second quarter of 2026 and the second quarter of 2025 ended on July 3, 2026 and June 27, 2025, respectively.

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

23 unchanged sentences

ACQUISITIONS AND DIVESTITURES

Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 37 million and $ 42 million during the three months ended April 3, 2026 and March 28, 2025, respectively.

The activity during the three months ended April 3, 2026 and March 28, 2025 included $ 32 million and $ 30 million, respectively, of investments in alternative energy limited partnerships.

Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $ 199 million and $ 179 million during the six months ended July 3, 2026 and June 27, 2025, respectively.

The activity during 2026 included additional investments of $ 112 million in an equity method investee in Japan.

The activity during the six months ended July 3, 2026 and June 27, 2025 included $ 75 million and $ 148 million, respectively, of investments in alternative energy limited partnerships.

Refer to Note 14 for additional information on these investments.

Proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $ 748 million during the three months ended March 28, 2025.

In March 2025, the Company sold a portion of our 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, which was recorded in the line item other income (loss) — net in our consolidated statement of income.

Proceeds from disposals of businesses, equity method investments and nonmarketable securities totaled $ 1 million and $ 973 million during the six months ended July 3, 2026 and June 27, 2025, respectively.

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.

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

Assets and Liabilities Held for Sale

4 unchanged sentences

This resulted in an impairment charge of $ 1,274 million, primarily due to the negative net foreign currency translation adjustments that will be reclassified to income upon sale.

During the three months ended April 3, 2026, we recorded an additional impairment charge of $ 10 million based on management’s revised estimates.

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

During the three and six months ended July 3, 2026, we recorded a gain to reduce this impairment charge by $ 66 million and $ 56 million, respectively, based on management’s revised estimates.

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

The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our consolidated balance sheets (in millions):

21 unchanged sentences

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 April 3, 2026

Three Months Ended July 3, 2026

Concentrate operations $ 2,426 $ 5,720 $ 8,146

1 unchanged sentence

Total $ 5,260 $ 8,120 $ 13,380

Three Months Ended March 28, 2025

Three Months Ended June 27, 2025

Concentrate operations $ 2,322 $ 5,296 $ 7,618

1 unchanged sentence

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

United States International Total

Six Months Ended July 3, 2026

Concentrate operations $ 4,614 $ 10,917 $ 15,531

Finished product operations 5,391 4,930 10,321

Total $ 10,005 $ 15,847 $ 25,852

Six Months Ended June 27, 2025

Concentrate operations $ 4,297 $ 9,915 $ 14,212

Finished product operations 4,891 4,561 9,452

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

Refer to Note 16 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

April 3, 2026

Marketable securities $ 547 $ —

7 unchanged sentences

Three Months Ended

2026 March 28,

2026 June 27,

Net gains (losses) recognized during the period related to equity securities $ 322 $ 165

3 unchanged sentences

still held at the end of the period

$ ( 33 ) $ ( 23 )

Six Months Ended

2026 June 27,

Net gains (losses) recognized during the period related to equity securities $ 305 $ 150

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

April 3, 2026

Trading securities

11 unchanged sentences

$ 1,865 $ 24 $ ( 65 ) $ 1,824

1 The estimated fair value as of April 3, 2026 includes $ 2,015 million of Brazilian government bonds with a cost of $ 2,075 million and gross unrealized losses of $ 60 million and, as of December 31, 2025, includes $ 1,207 million of Brazilian government bonds with a cost of $ 1,255 million, gross unrealized gains of $ 1 million and gross unrealized losses of $ 49 million.

1 The estimated fair value as of July 3, 2026 includes $ 2,056 million of Brazilian government bonds with a cost of $ 2,119 million and gross unrealized losses of $ 63 million and, as of December 31, 2025, includes $ 1,207 million of Brazilian government bonds with a cost of $ 1,255 million, gross unrealized gains of $ 1 million and gross unrealized losses of $ 49 million.

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

April 3, 2026 December 31, 2025

July 3, 2026 December 31, 2025

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

3 unchanged sentences

Total debt securities $ 49 $ 2,625 $ 50 $ 1,774

The contractual maturities of these available-for-sale debt securities as of April 3, 2026 were as follows (in millions):

The contractual maturities of these available-for-sale debt securities as of July 3, 2026 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

2026 March 28,

Three Months Ended Six Months Ended

2026 June 27,

Gross gains $ 1 $ 2 $ 2 $ 3

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 $ 2,667 million and $ 2,356 million as of April 3, 2026 and December 31, 2025, 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 $ 2,965 million and $ 2,356 million as of July 3, 2026 and December 31, 2025, 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):

11 unchanged sentences

Foreign currency contracts Other noncurrent assets 41 31

Commodity contracts Prepaid expenses and other current assets 17 —

Interest rate contracts Other noncurrent assets 132 142

16 unchanged sentences

Foreign currency contracts Other noncurrent assets 24 18

Foreign currency contracts Assets held for sale 2 —

Commodity contracts Prepaid expenses and other current assets 34 7

38 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 $ 10,447 million and $ 9,760 million as of April 3, 2026 and December 31, 2025, respectively.

The total notional values of derivatives that were designated and qualified for the Company’s foreign currency cash flow hedging program were $ 10,536 million and $ 9,760 million as of July 3, 2026 and December 31, 2025, 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 income 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 April 3, 2026 and December 31, 2025.

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 $ 33 million and $ 53 million as of April 3, 2026 and December 31, 2025, respectively.

The total notional values of derivatives that were designated and qualified for this program were $ 89 million and $ 53 million as of July 3, 2026 and December 31, 2025, 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 values of derivatives that were designated and qualified for this program were $ 778 million and $ 1,786 million as of April 3, 2026 and December 31, 2025, respectively.

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 income (in millions):

The total notional values of derivatives that were designated and qualified for this program were $ 775 million and $ 1,786 million as of July 3, 2026 and December 31, 2025, respectively.

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 income (in millions):

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

Three Months Ended April 3, 2026

Three Months Ended July 3, 2026

Foreign currency contracts $ ( 44 ) Net operating revenues $ ( 63 )

5 unchanged sentences

Total $ 28 $ ( 40 )

Three Months Ended March 28, 2025

Three Months Ended June 27, 2025

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

5 unchanged sentences

$ ( 485 ) $ ( 30 )

As of April 3, 2026, the Company estimates that it will reclassify into income during the next 12 months net losses of $ 97 million from the pretax amount recorded in AOCI as the anticipated cash flows occur.

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

Six Months Ended July 3, 2026

Foreign currency contracts $ 9 Net operating revenues $ ( 134 )

Foreign currency contracts 18 Cost of goods sold 5

Foreign currency contracts — Interest expense ( 2 )

Foreign currency contracts ( 3 ) Other income (loss) — net ( 15 )

Commodity contracts 46 Cost of goods sold 30

Interest rate contracts ( 1 ) Interest expense ( 2 )

Total $ 69 $ ( 118 )

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 )

$ ( 762 ) $ 39

As of July 3, 2026, the Company estimates that it will reclassify into income during the next 12 months net losses of $ 34 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 $ 13,501 million and $ 13,674 million as of April 3, 2026 and December 31, 2025, respectively.

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 $ 13,441 million and $ 13,674 million as of July 3, 2026 and December 31, 2025, respectively.

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

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

Three Months Ended

2026 March 28,

Three Months Ended Six Months Ended

2026 June 27,

Interest rate contracts Interest expense $ 38 $ 168 $ ( 11 ) $ 248

5 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 April 3,

Balance Sheet Location of Hedged Items July 3,

2026 December 31,

2025 April 3,

2026 December 31,

2025 April 3,

2026 December 31,

11 unchanged sentences

Notional Values Gain (Loss) Recognized in OCI

as of Three Months Ended

as of Three Months Ended Six Months Ended

2026 December 31,

2025 April 3,

2026 March 28,

2026 June 27,

Foreign currency contracts $ 1,377 $ 1,067 $ ( 9 ) $ — $ ( 10 ) $ ( 1 )

1 unchanged sentence

Total $ 15,979 $ 16,065 $ 93 $ ( 1,139 ) $ 386 $ ( 1,745 )

The Company did not reclassify any gains or losses during the three months ended April 3, 2026, nor the three months ended March 28, 2025.

The Company did not reclassify any gains or losses during the three and six months ended July 3, 2026, nor the three and six months ended June 27, 2025.

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 $ 10,207 million and $ 9,744 million as of April 3, 2026 and December 31, 2025, respectively.

The total notional values of derivatives related to our foreign currency economic hedges were $ 12,482 million and $ 9,744 million as of July 3, 2026 and December 31, 2025, 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 $ 528 million and $ 482 million as of April 3, 2026 and December 31, 2025, respectively.

The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on income (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 $ 716 million and $ 482 million as of July 3, 2026 and December 31, 2025, respectively.

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

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

1 unchanged sentence

Three Months Ended

2026 March 28,

2026 June 27,

Foreign currency contracts Net operating revenues $ ( 26 ) $ ( 111 )

4 unchanged sentences

Total $ 27 $ 15

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

Recognized in Income

Six Months Ended

2026 June 27,

Foreign currency contracts Net operating revenues $ ( 65 ) $ ( 182 )

Foreign currency contracts Cost of goods sold 35 79

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

Commodity contracts Cost of goods sold 32 ( 6 )

Other derivative instruments Selling, general and administrative expenses 26 12

Total $ 86 $ ( 1 )

SUPPLY CHAIN FINANCE PROGRAM

2 unchanged sentences

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.

The Company and our suppliers agree on contractual terms for the goods and services we procure, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF program.

The Company and our suppliers agree on contractual terms for the goods and services we procure, including prices, quantities and payment terms, regardless of whether

the supplier elects to participate in the SCF program.

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.

5 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 April 3, 2026 and December 31, 2025, the amount of obligations outstanding that the Company has confirmed as valid to the financial institutions under the SCF program was $ 1,262 million and $ 1,363 million, respectively.

As of April 3, 2026 and December 31, 2025, these amounts included $ 32 million and $ 37 million, respectively, of confirmed obligations outstanding related to our bottling operations in Africa that are currently held for sale.

As of July 3, 2026 and December 31, 2025, the amount of obligations outstanding that the Company has confirmed as valid to the financial institutions under the SCF program was $ 1,431 million and $ 1,363 million, respectively.

As of July 3, 2026 and December 31, 2025, these amounts included $ 22 million and $ 37 million, respectively, of confirmed obligations outstanding related to our bottling operations in Africa that are currently held for sale.

Refer to Note 2.

1 unchanged sentence

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

As of April 3, 2026 and December 31, 2025, we had $ 250 million and $ 1,495 million, respectively, in outstanding commercial paper borrowings.

As of December 31, 2025, we had $ 1,495 million in outstanding commercial paper borrowings.

We had no outstanding commercial paper borrowings as of July 3, 2026.

COMMITMENTS AND CONTINGENCIES

As of April 3, 2026, we were contingently liable for guarantees of indebtedness owed by third parties of $ 837 million, of which $ 63 million was related to variable interest entities.

As of July 3, 2026, we were contingently liable for guarantees of indebtedness owed by third parties of $ 874 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.

23 unchanged sentences

The Company and the IRS memorialized this accord in a closing agreement resolving that dispute (“Closing Agreement”).

The Closing Agreement provided that, absent a change in material facts or circumstances or relevant federal tax law, in calculating the Company’s income taxes going forward, the Company would not be assessed penalties by the IRS for using the agreed-upon tax calculation methodology that the Company and the IRS agreed would be used for the 1987 through 1995 tax years.

penalties by the IRS for using the agreed-upon tax calculation methodology that the Company and the IRS agreed would be used for the 1987 through 1995 tax years.

The IRS audited and confirmed the Company’s compliance with the agreed-upon Closing Agreement methodology in five successive audit cycles for tax years 1996 through 2006.

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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 April 3, 2026 and March 28, 2025, the Company recorded net interest income of $ 55 million and $ 53 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 April 3, 2026 and December 31, 2025.

For the three and six months ended July 3, 2026, the Company recorded net interest income of $ 43 million and $ 98 million, respectively, related to this tax payment.

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.

These amounts were recorded 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 July 3, 2026 and December 31, 2025.

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

4 unchanged sentences

The Company filed its reply brief on August 27, 2025.

Court of Appeals for the Eleventh Circuit heard the case on June 25, 2026.

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 April 3, 2026.

However, based on the required probability analysis and the accrual of interest through the current reporting period, we updated our tax reserve as of April 3, 2026 to $ 520 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 July 3, 2026.

However, based on the required probability analysis and the accrual of interest through the current reporting period, we updated our tax reserve as of July 3, 2026 to $ 529 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 $ 457 million as of April 3, 2026.

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.

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 2025 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

consent of the federal courts.

This impact would include taxes and interest accrued through December 31, 2025.

2 unchanged sentences

Additional income tax and interest on any unpaid potential liabilities for the 2010 through 2025 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 April 3, 2026 would increase the potential aggregate incremental tax and interest liability by approximately $ 450 million.

The Company estimates the impact of the continued application of the Tax Court Methodology for the three and six months ended July 3, 2026 would increase the potential aggregate incremental tax and interest liability by approximately $ 450 million and $ 900 million, respectively.

We currently project the continued application of the Tax Court Methodology in 2026, assuming similar facts and circumstances as of December 31, 2025 and reflecting changes enacted under the One Big Beautiful Bill Act effective in 2026, would result in an incremental annual tax liability that would increase the Company’s effective tax rate by approximately 3.8 %.

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 $ 159 million and $ 155 million as of April 3, 2026 and December 31, 2025, respectively .

Our self-insurance reserves totaled $ 156 million and $ 155 million as of July 3, 2026 and December 31, 2025, 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 April 3, 2026

Six Months Ended July 3, 2026

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 April 3, 2026 Before-Tax Amount Income Tax After-Tax Amount

Three Months Ended July 3, 2026 Before-Tax Amount Income Tax After-Tax Amount

Foreign currency translation adjustments:

2 unchanged sentences

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

Net foreign currency translation adjustments $ 394 $ ( 51 ) $ 343

Gains (losses) arising during the period $ 33 $ ( 3 ) $ 30

Reclassification adjustments recognized in net income 40 ( 10 ) 30

Net gains (losses) on derivatives 1

$ 73 $ ( 13 ) $ 60

Available-for-sale debt securities:

Unrealized gains (losses) arising during the period $ ( 5 ) $ 1 $ ( 4 )

Reclassification adjustments recognized in net income 1 — 1

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

$ ( 4 ) $ 1 $ ( 3 )

Pension and other postretirement benefit liabilities:

Net pension and other postretirement benefit liabilities arising during the period $ ( 1 ) $ ( 2 ) $ ( 3 )

Reclassification adjustments recognized in net income 22 ( 5 ) 17

Net change in pension and other postretirement benefit liabilities $ 21 $ ( 7 ) $ 14

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

Company $ 484 $ ( 70 ) $ 414

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 July 3, 2026 Before-Tax Amount Income Tax After-Tax Amount

Foreign currency translation adjustments:

Translation adjustments arising during the period $ 722 $ ( 9 ) $ 713

Gains (losses) on intra-entity transactions that are of a long-term investment nature ( 661 ) — ( 661 )

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

386 ( 93 ) 293

Net foreign currency translation adjustments $ 447 $ ( 102 ) $ 345

5 unchanged sentences

Unrealized gains (losses) arising during the period $ ( 20 ) $ 5 $ ( 15 )

Reclassification adjustments recognized in net income 1 — 1

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

8 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 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.

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 April 3, 2026

Description of AOCI Component Financial Statement Line Item Impacted Three Months Ended July 3, 2026 Six Months Ended July 3, 2026

Foreign currency contracts Net operating revenues $ 63 $ 134

5 unchanged sentences

Consolidated net income $ 30 $ 89

Available-for-sale debt securities:

Sale of debt securities Other income (loss) — net $ 1 $ 1

Income before income taxes 1 1

Income taxes — —

Consolidated net income $ 1 $ 1

Pension and other postretirement benefit liabilities:

6 unchanged sentences

Shareowners of The Coca-Cola Company

Three Months Ended April 3, 2026 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests

December 31, 2025 4,302 $ 34,275 $ 80,382 $ ( 14,131 ) $ 1,760 $ 20,581 $ ( 56,423 ) $ 2,106

Three Months Ended July 3, 2026 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests

April 3, 2026 4,303 $ 35,734 $ 82,026 $ ( 14,040 ) $ 1,760 $ 20,634 $ ( 56,747 ) $ 2,101

Comprehensive income (loss) — 4,908 4,425 414 — — — 69

Dividends paid/payable to

shareowners of The Coca-Cola

Company ($ 0.53 per share)

Dividends paid/payable to shareowners of The Coca-Cola Company ($ 0.53 per share)

— ( 2,282 ) ( 2,282 ) — — — — —

2 unchanged sentences

Purchases of treasury stock ( 2 ) ( 188 ) — — — — ( 188 ) —

Impact related to stock-based

compensation plans 6 90 — — — 53 37 —

April 3, 2026 4,303 $ 35,734 $ 82,026 $ ( 14,040 ) $ 1,760 $ 20,634 $ ( 56,747 ) $ 2,101

Impact related to stock-based compensation plans 2 148 — — — 107 41 —

July 3, 2026 4,303 $ 38,315 $ 84,169 $ ( 13,626 ) $ 1,760 $ 20,741 $ ( 56,894 ) $ 2,165

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

Six Months Ended July 3, 2026 Common Shares Outstanding Total Reinvested Earnings Accumulated Other Comprehensive Income (Loss) Common Stock Capital Surplus Treasury Stock Non-controlling Interests

December 31, 2025 4,302 $ 34,275 $ 80,382 $ ( 14,131 ) $ 1,760 $ 20,581 $ ( 56,423 ) $ 2,106

Comprehensive income (loss) — 8,921 8,349 505 — — — 67

Dividends paid/payable to

shareowners of The Coca-Cola

Company ($ 0.51 per share)

Dividends paid/payable to shareowners of The Coca-Cola Company ($ 1.06 per share)

— ( 4,562 ) ( 4,562 ) — — — — —

Dividends paid to noncontrolling

interests — ( 2 ) — — — — — ( 2 )

Dividends paid to noncontrolling interests — ( 8 ) — — — — — ( 8 )

Purchases of treasury stock ( 7 ) ( 549 ) — — — — ( 549 ) —

Impact related to stock-based

compensation plans 6 129 — — — 72 57 —

Impact related to stock-based compensation plans 8 238 — — — 160 78 —

July 3, 2026 4,303 $ 38,315 $ 84,169 $ ( 13,626 ) $ 1,760 $ 20,741 $ ( 56,894 ) $ 2,165

Shareowners of The Coca-Cola Company

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 interests — ( 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

Comprehensive income (loss) — 8,302 7,140 1,085 — — — 77

Dividends paid/payable to shareowners of The Coca-Cola Company ($ 1.02 per share)

— ( 4,391 ) ( 4,391 ) — — — — —

Dividends paid to noncontrolling interests — ( 9 ) — — — — — ( 9 )

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

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

Impact related to stock-based 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

SIGNIFICANT OPERATING AND NONOPERATING ITEMS

Other Operating Charges

During the three months ended April 3, 2026, the Company recorded other operating charges of $ 21 million.

These charges included $ 10 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $ 4 million related to North America modernization initiatives, $ 4 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 28, 2025, the Company recorded other operating charges of $ 73 million.

During the three months ended July 3, 2026, the Company recorded other operating charges of $ 23 million.

These charges consisted of $ 9 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $ 6 million related to North America modernization initiatives, $ 5 million related to tax litigation expense and $ 3 million for the amortization of noncompete agreements related to the BA Sports Nutrition, LLC (“BodyArmor”) acquisition in 2021.

During the six months ended July 3, 2026, the Company recorded other operating charges of $ 44 million.

These charges consisted of $ 19 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $ 10 million related to North America modernization initiatives, $ 8 million related to tax litigation expense and $ 7 million for the amortization of noncompete agreements related to the BodyArmor acquisition.

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 BodyArmor acquisition 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 BodyArmor acquisition and $ 3 million related to tax litigation expense.

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.

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

Refer to Note 9 for additional information on the tax litigation.

Refer to Note 15 for additional information on the impairment charge.

Other Nonoperating Items

Equity Income (Loss) — Net

During the three months ended April 3, 2026 and March 28, 2025, the Company recorded net charges of $ 33 million and $ 8 million, respectively.

During the three and six months ended July 3, 2026, the Company recorded a net benefit of $ 11 million and a net charge of $ 22 million, respectively.

During the three and six months ended June 27, 2025, the Company recorded net charges of $ 20 million and $ 28 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 April 3, 2026, the Company recognized 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 an impairment charge of $ 10 million related to our bottling operations in Africa, which are held for sale.

During the three months ended March 28, 2025, the Company recognized a 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 July 3, 2026, the Company recognized a net gain of $ 320 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 a reduction in the previously recorded impairment charge of $ 66 million related to our bottling operations in Africa, which are held for sale.

This reduction is based on management’s revised estimates.

During the six months ended July 3, 2026, the Company recognized a net gain of $ 301 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 a reduction in the previously recorded impairment charge of $ 56 million related to our bottling operations in Africa, which are held for sale.

This reduction is based on management’s revised estimates.

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 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 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 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.

Refer to Note 2 for additional information on our bottling operations in Africa and the sale of our ownership interest in CCEP.

Refer to Note 2 for additional information on our bottling operations in Africa and our divestiture activities.

Refer to Note 4 for additional information on equity and debt securities.

7 unchanged sentences

Three Months Ended

2026 March 28,

2025 April 3,

2026 March 28,

2026 June 27,

Service cost $ 26 $ 25 $ — $ 1

2 unchanged sentences

( 97 ) ( 104 ) ( 1 ) ( 1 )

Amortization of net actuarial loss (gain) 22 26 — —

Net periodic benefit cost (income) $ 26 $ 21 $ 2 $ 2

1 The weighted-average expected long-term rates of return on plan assets used in computing 2026 net periodic benefit cost (income) were 6.25 % for pension plans and 6.75 % for other postretirement benefit plans.

Pension Plans Other Postretirement

Benefit Plans

Six Months Ended

2026 June 27,

Service cost $ 52 $ 51 $ 1 $ 2

Interest cost 151 149 5 5

Expected return on plan assets 1

( 195 ) ( 208 ) ( 2 ) ( 2 )

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

7 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 April 3, 2026, the Company contributed $ 9 million to our pension trusts.

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 July 3, 2026, the Company contributed $ 14 million to our pension trusts.

We anticipate making additional contributions of approximately $ 13 million during the remainder of 2026.

The Company contributed $ 17 million to our pension trusts, offset by a $ 331 million transfer of surplus non-U.S.

plan assets from pension trusts to general assets of the Company during the three months ended March 28, 2025.

The Company recorded income taxes of $ 645 million ( 14.0 % effective tax rate) and $ 722 million ( 17.8 % effective tax rate) during the three months ended April 3, 2026 and March 28, 2025, respectively.

The Company’s effective tax rates for the three months ended April 3, 2026 and March 28, 2025 vary from the statutory U.S.

plan assets from pension trusts to general assets of the Company during the six months ended June 27, 2025.

The Company recorded income taxes of $ 1,037 million ( 18.9 % effective tax rate) and $ 993 million ( 20.7 % effective tax rate) during the three months ended July 3, 2026 and June 27, 2025, respectively.

The Company recorded income taxes of $ 1,682 million ( 16.7 % effective tax rate) and $ 1,715 million ( 19.4 % effective tax rate) during the six months ended July 3, 2026 and June 27, 2025, respectively.

The Company’s effective tax rates for the three and six months ended July 3, 2026 and June 27, 2025 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 April 3, 2026 included $ 279 million of net tax benefits related to various discrete tax items, including net interest income of $ 55 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 $ 194 million, primarily related to return to provision adjustments.

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 April 3, 2026, the Company invested $ 32 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 April 3, 2026, the Company received tax credits and other income tax benefits of $ 3 million and recognized amortization expense of $ 2 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 April 3, 2026.

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 April 3, 2026 and December 31, 2025, the carrying values of these investments were $ 30 million and $ 32 million, respectively.

The Company has no unfunded commitments related to these investments as of April 3, 2026.

The Company recorded $ 32 million of unfunded commitments related to these investments in the line item accounts payable and accrued expenses in our consolidated balance sheet as of December 31, 2025.

The Company’s effective tax rates for the three and six months ended July 3, 2026 included $ 40 million and $ 319 million, respectively, of net tax benefits related to various discrete tax items, including net interest income of $ 43 million and $ 98 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 rates for the three and six months ended July 3, 2026 also included net tax expense of $ 13 million and a net tax benefit of $ 181 million, respectively, primarily related to return to provision adjustments.

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.

During the six months ended July 3, 2026, the Company invested $ 75 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 July 3, 2026, the Company received tax credits and other income tax benefits of $ 2 million and $ 5 million, respectively, and recognized amortization expense of $ 2 million and $ 4 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 three and six months ended July 3, 2026.

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 three and six months ended June 27, 2025.

As of July 3, 2026 and December 31, 2025, the carrying values of these investments were $ 246 million and $ 32 million, respectively.

The Company recorded $ 174 million and $ 32 million of unfunded commitments related to these investments in the line item accounts payable and accrued expenses in our consolidated balance sheets as of July 3, 2026 and December 31, 2025, respectively.

We are currently in litigation with the IRS for tax years 2007 through 2009.

3 unchanged sentences

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

April 3, 2026 Level 1 Level 2 Level 3 Other 3

July 3, 2026 Level 1 Level 2 Level 3 Other 3

Equity securities with readily determinable values 1

40 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 were not significant for the three months ended April 3, 2026.

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

Gross realized and unrealized gains and losses on Level 3 assets and liabilities were not significant for the three and six months ended July 3, 2026.

Gross realized and unrealized gains and losses on Level 3 assets and liabilities, excluding the

remeasurement of the fairlife contingent consideration liability, were not significant for the three and six months ended June 27, 2025.

Refer to Note 12 for additional information on the fairlife contingent consideration liability.

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 April 3, 2026 and March 28, 2025.

Gross transfers between levels within the hierarchy were not significant for the three and six months ended July 3, 2026 and June 27, 2025.

Nonrecurring Fair Value Measurements

During the three months ended April 3, 2026, the Company recorded an impairment charge of $ 10 million related to our bottling operations in Africa, which are held for sale, based on Level 3 inputs.

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

2026 June 27,

Assets held for sale $ 66 1

Other-than-temporary impairment charges — ( 40 ) 3

Impairment of intangible assets — ( 31 ) 4

Total $ 66 $ ( 99 ) $ 56 $ ( 124 )

1 During the three and six months ended July 3, 2026, the Company recorded a reduction in the previously recorded impairment charge of $ 66 million and $ 56 million, respectively, related to our bottling operations in Africa, which are held for sale, based on Level 3 inputs.

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

Refer to Note 2.

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.

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

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.

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

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

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

4 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.

5 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.

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

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

Other Fair Value Disclosures

2 unchanged sentences

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

As of April 3, 2026, the carrying value and fair value of our long-term debt, including the current portion, were $ 43,558 million and $ 40,088 million, respectively.

As of July 3, 2026, the carrying value and fair value of our long-term debt, including the current portion, were $ 43,495 million and $ 38,825 million, respectively.

As of December 31, 2025, the carrying value and fair value of our long-term debt, including the current portion, were $ 43,941 million and $ 39,385 million, respectively.

6 unchanged sentences

Investments Operating Segments Total Corporate Eliminations Consolidated

Three Months Ended April 3, 2026

Three Months Ended July 3, 2026

Net operating revenues:

14 unchanged sentences

Depreciation and amortization 51 9 92 12 86 250 16 — 266

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 76 230 49 — 279

America North

America Asia Pacific Bottling

Investments Operating Segments Total Corporate Eliminations Consolidated

Six Months Ended July 3, 2026

Net operating revenues:

Third party $ 5,894 $ 3,517 $ 10,296 $ 2,913 $ 3,163 $ 25,783 $ 69 $ — $ 25,852

Intersegment 358 — 5 176 4 543 — ( 543 ) —

Total net operating revenues 6,252 3,517 10,301 3,089 3,167 26,326 69 ( 543 ) 25,852

Cost of goods sold 1,577 549 4,991 987 2,178 10,282 ( 154 ) ( 543 ) 9,585

Selling, general and administrative expenses 2,107 753 1,999 910 707 6,476 716 — 7,192

Other operating charges — — 10 — — 10 34 — 44

Operating income (loss) $ 2,568 $ 2,215 $ 3,301 $ 1,192 $ 282 $ 9,558 $ ( 527 ) $ — $ 9,031

Interest income 420

Interest expense 744

Equity income (loss) — net 988

Other income (loss) — net 391

Income before income taxes $ 10,086

Other segment information:

Capital expenditures $ 100 $ — $ 262 $ 1 $ 165 $ 528 $ 156 $ — $ 684

Depreciation and amortization 99 17 191 23 169 499 31 — 530

Six Months Ended June 27, 2025

Net operating revenues:

Third party $ 5,489 $ 3,064 $ 9,387 $ 2,789 $ 2,870 $ 23,599 $ 65 $ — $ 23,664

Intersegment 344 — 3 204 4 555 — ( 555 ) —

Total net operating revenues 5,833 3,064 9,390 2,993 2,874 24,154 65 ( 555 ) 23,664

Cost of goods sold 1,654 537 4,511 866 2,028 9,596 ( 164 ) ( 555 ) 8,877

Selling, general and administrative expenses 1,789 635 1,917 856 668 5,865 839 — 6,704

Other operating charges — 31 — — — 31 113 — 144

Operating income (loss) $ 2,390 $ 1,861 $ 2,962 $ 1,271 $ 178 $ 8,662 $ ( 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 $ 589 $ 162 $ — $ 751

Depreciation and amortization 99 15 162 22 152 450 96 — 546

Effective March 31, 2026, our Company’s chief operating decision maker (“CODM”) is our Chief Executive Officer.

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

During the three months ended April 3, 2026 and March 28, 2025, our operating segments and Corporate were impacted by acquisition and divestiture activities.

During the three and six months ended July 3, 2026 and June 27, 2025, our operating segments and Corporate were impacted by acquisition and divestiture activities.

Refer to Note 2.

Additionally, during the three months ended April 3, 2026 and March 28, 2025, our operating segments and Corporate were impacted by certain significant operating and nonoperating items.

Additionally, during the three and six months ended July 3, 2026 and June 27, 2025, our operating segments and Corporate were impacted by certain significant operating and nonoperating items.

Refer to Note 12.

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