Quarterly report pursuant to Section 13 or 15(d)

Comprehensive Income

v3.2.0.727
Comprehensive Income
 6 Months Ended
Jul. 03, 2015
Comprehensive Income  
Comprehensive Income
COMPREHENSIVE INCOME
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
 
Six Months Ended July 3, 2015
 
Shareowners of
The Coca-Cola Company

Noncontrolling
Interests

Total

Consolidated net income
$
4,665

$
12

$
4,677

Other comprehensive income:
 
 
 
Net foreign currency translation adjustment
(2,272
)
(6
)
(2,278
)
Net gain (loss) on derivatives1
301

—

301

Net unrealized gain (loss) on available-for-sale securities2
(1,093
)
—

(1,093
)
Net change in pension and other benefit liabilities
105

—

105

Total comprehensive income
$
1,706

$
6

$
1,712

1 Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
2 Refer to Note 3 for additional information related to the net unrealized gain or loss on available-for-sale securities.
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 July 3, 2015
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustment arising during the period
$
(946
)
 
$
154

 
$
(792
)
Reclassification adjustments recognized in net income
—

 
—

 
—

Net foreign currency translation adjustments
(946
)
 
154

 
(792
)
Derivatives:

 

 

Unrealized gains (losses) arising during the period
137

 
(52
)
 
85

Reclassification adjustments recognized in net income
(191
)
 
73

 
(118
)
Net gain (loss) on derivatives1
(54
)
 
21

 
(33
)
Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
(1,116
)
 
236

 
(880
)
Reclassification adjustments recognized in net income
(2
)
 
—

 
(2
)
Net change in unrealized gain (loss) on available-for-sale securities2
(1,118
)
 
236

 
(882
)
Pension and other benefit liabilities:

 

 

Net pension and other benefits arising during the period
8

 
1

 
9

Reclassification adjustments recognized in net income
48

 
(17
)
 
31

Net change in pension and other benefit liabilities3
56

 
(16
)
 
40

Other comprehensive income (loss) attributable to The Coca-Cola Company
$
(2,062
)
 
$
395

 
$
(1,667
)
1 
Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
2 
Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures.
3 
Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities.
Six Months Ended July 3, 2015
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustment arising during the period
$
(2,385
)
 
$
64

 
$
(2,321
)
Reclassification adjustments recognized in net income
63

 
(14
)
 
49

Net foreign currency translation adjustments
(2,322
)
 
50

 
(2,272
)
Derivatives:

 

 

Unrealized gains (losses) arising during the period
806

 
(308
)
 
498

Reclassification adjustments recognized in net income
(318
)
 
121

 
(197
)
Net gain (loss) on derivatives1
488

 
(187
)
 
301

Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
(1,428
)
 
356

 
(1,072
)
Reclassification adjustments recognized in net income
(29
)
 
8

 
(21
)
Net change in unrealized gain (loss) on available-for-sale securities2
(1,457
)
 
364

 
(1,093
)
Pension and other benefit liabilities:

 

 

Net pension and other benefits arising during the period
60

 
(16
)
 
44

Reclassification adjustments recognized in net income
95

 
(34
)
 
61

Net change in pension and other benefit liabilities3
155

 
(50
)
 
105

Other comprehensive income (loss) attributable to The Coca-Cola Company
$
(3,136
)
 
$
177

 
$
(2,959
)
1 
Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
2 
Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures.
3 
Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities.
Three Months Ended June 27, 2014
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustment arising during the period
$
364

 
$
(26
)
 
$
338

Reclassification adjustments recognized in net income
—

 
—

 
—

Net foreign currency translation adjustments
364

 
(26
)
 
338

Derivatives:

 

 

Unrealized gains (losses) arising during the period
(102
)
 
36

 
(66
)
Reclassification adjustments recognized in net income
(25
)
 
10

 
(15
)
Net gain (loss) on derivatives1
(127
)
 
46

 
(81
)
Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
488

 
(150
)
 
338

Reclassification adjustments recognized in net income
(4
)
 
—

 
(4
)
Net change in unrealized gain (loss) on available-for-sale securities2
484

 
(150
)
 
334

Pension and other benefit liabilities:

 

 

Net pension and other benefits arising during the period
11

 
(3
)
 
8

Reclassification adjustments recognized in net income
15

 
(6
)
 
9

Net change in pension and other benefit liabilities3
26

 
(9
)
 
17

Other comprehensive income (loss) attributable to The Coca-Cola Company
$
747

 
$
(139
)
 
$
608

1 
Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
2 
Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures.
3 
Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities.

Six Months Ended June 27, 2014
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustment arising during the period
$
(120
)
 
$
73

 
$
(47
)
Reclassification adjustments recognized in net income
—

 
—

 
—

Net foreign currency translation adjustments
(120
)
 
73

 
(47
)
Derivatives:

 

 

Unrealized gains (losses) arising during the period
(225
)
 
84

 
(141
)
Reclassification adjustments recognized in net income
(64
)
 
25

 
(39
)
Net gain (loss) on derivatives1
(289
)
 
109

 
(180
)
Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
968

 
(316
)
 
652

Reclassification adjustments recognized in net income
(3
)
 
—

 
(3
)
Net change in unrealized gain (loss) on available-for-sale securities2
965

 
(316
)
 
649

Pension and other benefit liabilities:

 

 

Net pension and other benefits arising during the period
8

 
(2
)
 
6

Reclassification adjustments recognized in net income
29

 
(11
)
 
18

Net change in pension and other benefit liabilities3
37

 
(13
)
 
24

Other comprehensive income (loss) attributable to The Coca-Cola Company
$
593

 
$
(147
)
 
$
446


1 
Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
2 
Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 3 for additional information related to these divestitures.
3 
Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities.
The following table presents the amounts and line items in our condensed consolidated statement of income where adjustments reclassified from AOCI into income were recorded during the three and six months ended July 3, 2015 (in millions):
 
 
Amount Reclassified from
AOCI into Income
 
Description of AOCI Component
Financial Statement Line Item
Three Months Ended July 3, 2015
Six Months Ended July 3, 2015
 
Foreign currency translation adjustments:
 
 
 
 
Divestitures, deconsolidations and other
Other income (loss) — net
$
—

$
63

 
 
Income before income taxes
—

63

 
 
Income taxes
—

(14
)
 
 
Consolidated net income
$
—

$
49

 
Derivatives:
 
 
 
 
Foreign currency contracts
Net operating revenues
$
(178
)
$
(298
)
 
Foreign currency and commodity contracts
Cost of goods sold
(15
)
(27
)
 
Foreign currency contracts
Interest expense
2

4

 
Interest rate contracts
Interest expense
—

3

 
 
Income before income taxes
(191
)
(318
)
 
 
Income taxes
73

121

 
 
Consolidated net income
$
(118
)
$
(197
)
 
Available-for-sale securities:
 
 
 
 
Sale of securities
Other income (loss) — net
$
(2
)
$
(29
)
 
 
Income before income taxes
(2
)
(29
)
 
 
Income taxes
—

8

 
 
Consolidated net income
$
(2
)
$
(21
)
 
Pension and other benefit liabilities:
 
 
 
 
Amortization of net actuarial loss
*
$
52

$
104

 
Amortization of prior service cost (credit)
*
(4
)
(9
)
 
 
Income before income taxes
48

95

 
 
Income taxes
(17
)
(34
)
 
 
Consolidated net income
$
31

$
61

 
*
This component of AOCI is included in the Company's computation of net periodic benefit cost and is not reclassified out of AOCI into a single line item in our condensed consolidated statements of income in its entirety. Refer to Note 12 for additional information.