| Operating Segments |
OPERATING SEGMENTS
Effective January 1, 2016, we transferred CCR's bottling and associated supply chain operations in the United States and Canada from our North America segment to our Bottling Investments segment. Accordingly, all prior period segment information presented herein has been adjusted to reflect this change in our organizational structure.
Information about our Company's operations as of and for the three months ended April 1, 2016 and April 3, 2015 by operating segment is as follows (in millions):
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Eurasia
& Africa |
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Europe |
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Latin
America |
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North
America |
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Asia Pacific |
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Bottling
Investments |
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Corporate |
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Eliminations |
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Consolidated |
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2016 |
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Net operating revenues: |
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Third party |
$ |
540 |
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$ |
1,069 |
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$ |
917 |
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$ |
1,421 |
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$ |
1,102 |
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$ |
5,251 |
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$ |
(18 |
) |
$ |
— |
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$ |
10,282 |
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Intersegment |
6 |
|
135 |
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18 |
|
943 |
|
133 |
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41 |
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3 |
|
(1,279 |
) |
— |
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Total net revenues |
546 |
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1,204 |
|
935 |
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2,364 |
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1,235 |
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5,292 |
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(15 |
) |
(1,279 |
) |
10,282 |
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Operating income (loss) |
236 |
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691 |
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523 |
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581 |
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551 |
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(118 |
) |
(323 |
) |
— |
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2,141 |
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Income (loss) before income taxes |
246 |
|
704 |
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518 |
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580 |
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554 |
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(432 |
) |
(276 |
) |
— |
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1,894 |
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Identifiable operating assets |
1,147 |
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3,169 |
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2,108 |
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16,776 |
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2,178 |
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22,266 |
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29,823 |
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— |
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77,467 |
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Noncurrent investments |
1,275 |
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81 |
|
692 |
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106 |
|
160 |
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8,170 |
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3,312 |
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— |
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13,796 |
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2015 |
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Net operating revenues: |
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Third party |
$ |
638 |
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$ |
1,068 |
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$ |
1,047 |
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$ |
1,276 |
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$ |
1,156 |
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$ |
5,486 |
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$ |
40 |
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$ |
— |
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$ |
10,711 |
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Intersegment |
— |
|
144 |
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19 |
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1,041 |
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129 |
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45 |
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— |
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(1,378 |
) |
— |
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Total net revenues |
638 |
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1,212 |
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1,066 |
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2,317 |
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1,285 |
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5,531 |
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40 |
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(1,378 |
) |
10,711 |
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Operating income (loss) |
279 |
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716 |
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578 |
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535 |
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544 |
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(10 |
) |
(346 |
) |
— |
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2,296 |
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Income (loss) before income taxes |
286 |
|
724 |
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588 |
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532 |
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548 |
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(46 |
) |
(651 |
) |
— |
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1,981 |
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Identifiable operating assets |
1,298 |
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3,211 |
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2,215 |
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17,103 |
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1,794 |
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23,312 |
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28,101 |
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— |
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77,034 |
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Noncurrent investments |
1,113 |
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88 |
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684 |
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36 |
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158 |
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8,732 |
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3,084 |
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— |
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13,895 |
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As of December 31, 2015 |
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Identifiable operating assets |
$ |
1,148 |
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$ |
3,008 |
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$ |
1,627 |
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$ |
16,396 |
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$ |
1,639 |
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$ |
22,688 |
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$ |
27,702 |
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$ |
— |
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$ |
74,208 |
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Noncurrent investments |
1,061 |
|
77 |
|
657 |
|
107 |
|
158 |
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8,084 |
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5,644 |
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— |
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15,788 |
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During the three months ended April 1, 2016, the results of our operating segments were impacted by the following items:
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $4 million for Europe, $31 million for North America, $1 million for Asia Pacific, $220 million for Bottling Investments and $7 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $1 million for Eurasia and Africa due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. Refer to Note 9 and Note 10 for additional information on each of the Company's productivity, restructuring and integration initiatives.
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $45 million for Bottling Investments due to costs incurred to refranchise our North America bottling territories. Refer to Note 9.
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• |
Income (loss) before income taxes was reduced by $3 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 9.
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• |
Income (loss) before income taxes was reduced by $369 million for Bottling Investments primarily due to the refranchising of certain territories in North America. Refer to Note 2 and Note 9.
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• |
Income (loss) before income taxes was increased by $18 million for Corporate as a result of the disposal of our investment in Keurig. Refer to Note 2.
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During the three months ended April 3, 2015, the results of our operating segments were impacted by the following items:
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $12 million for Eurasia and Africa, $42 million for North America, $67 million for Bottling Investments and $20 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $11 million for Europe and $5 million for Asia Pacific due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. Refer to Note 9 and Note 10.
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• |
Income (loss) before income taxes was reduced by $1 million for Europe and $72 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 9.
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• |
Income (loss) before income taxes was reduced by $21 million for Bottling Investments due to the refranchising of certain territories in North America. Refer to Note 2 and Note 9.
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Income (loss) before income taxes was reduced by $320 million for Corporate due to charges the Company recognized on the early extinguishment of debt. Refer to Note 9.
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Income (loss) before income taxes was reduced by $33 million for Latin America and $102 million for Corporate due to the remeasurement of the net monetary assets of our local Venezuelan subsidiary into U.S. dollars using the SIMADI exchange rate, an impairment of a Venezuelan trademark and a write-down the Company recorded on receivables from our bottling partner in Venezuela. Refer to Note 1 and Note 9.
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Income (loss) before income taxes was reduced by $19 million for Corporate as a result of the remeasurement of our previously held equity interest in a South African bottler to fair value upon our acquisition of the bottling operations. Refer to Note 2 and Note 9.
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Income (loss) before income taxes was reduced by $6 million for Corporate as a result of a Brazilian bottling entity's majority interest owners exercising their option to acquire from us an additional equity interest at an exercise price less than that of our carrying value. Refer to Note 9.
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