Quarterly report pursuant to Section 13 or 15(d)

Comprehensive Income

v3.5.0.2
Comprehensive Income
 6 Months Ended
Jul. 01, 2016
Comprehensive Income  
Comprehensive Income
COMPREHENSIVE INCOME
AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our condensed consolidated balance sheets as a component of The Coca-Cola Company's shareowners' equity, which also includes our proportionate share of equity method investees' AOCI. OCI attributable to noncontrolling interests is allocated to, and included in, our condensed consolidated balance sheets as part of the line item equity attributable to noncontrolling interests.
AOCI attributable to shareowners of The Coca-Cola Company consisted of the following (in millions):
 
July 1, 2016

 
December 31, 2015

Foreign currency translation adjustment
$
(8,831
)
 
$
(9,167
)
Accumulated derivative net gains (losses)
131

 
696

Unrealized net gains (losses) on available-for-sale securities
449

 
288

Adjustments to pension and other benefit liabilities
(1,902
)
 
(1,991
)
Accumulated other comprehensive income (loss)
$
(10,153
)
 
$
(10,174
)

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 1, 2016
 
Shareowners of
The Coca-Cola Company

Noncontrolling
Interests

Total

Consolidated net income
$
4,931

$
22

$
4,953

Other comprehensive income:
 
 
 
Net foreign currency translation adjustment
336

(7
)
329

Net gain (loss) on derivatives1
(565
)
—

(565
)
Net unrealized gain (loss) on available-for-sale securities2
161

—

161

Net change in pension and other benefit liabilities
89

—

89

Total comprehensive income
$
4,952

$
15

$
4,967

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 1, 2016
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustment arising during the period
$
428

 
$
(108
)
 
$
320

Reclassification adjustments recognized in net income
126

 
—

 
126

Gains (losses) on net investment hedges arising during the period1
184

 
(70
)
 
114

Reclassification adjustments for net investment hedges recognized in net income1
77

 
(30
)
 
47

Net foreign currency translation adjustments
815

 
(208
)
 
607

Derivatives:

 

 

Gains (losses) arising during the period
(122
)
 
47

 
(75
)
Reclassification adjustments recognized in net income
(100
)
 
37

 
(63
)
Net gain (loss) on derivatives1
(222
)
 
84

 
(138
)
Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
161

 
(49
)
 
112

Reclassification adjustments recognized in net income
(4
)
 
1

 
(3
)
Net change in unrealized gain (loss) on available-for-sale securities2
157

 
(48
)
 
109

Pension and other benefit liabilities:

 

 

Net pension and other benefits arising during the period
(18
)
 
4

 
(14
)
Reclassification adjustments recognized in net income
106

 
(34
)
 
72

Net change in pension and other benefit liabilities3
88

 
(30
)
 
58

Other comprehensive income (loss) attributable to The Coca-Cola Company
$
838

 
$
(202
)
 
$
636

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 and net investment hedging activity.
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 1, 2016
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustment arising during the period
$
462

 
$
(2
)
 
$
460

Reclassification adjustments recognized in net income
126

 
—

 
126

Gains (losses) on net investment hedges arising during the period1
(482
)
 
185

 
(297
)
Reclassification adjustments for net investment hedges recognized in net income1
77

 
(30
)
 
47

Net foreign currency translation adjustments
183

 
153

 
336

Derivatives:

 

 

Gains (losses) arising during the period
(607
)
 
229

 
(378
)
Reclassification adjustments recognized in net income
(299
)
 
112

 
(187
)
Net gain (loss) on derivatives1
(906
)
 
341

 
(565
)
Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
294

 
(77
)
 
217

Reclassification adjustments recognized in net income
(74
)
 
18

 
(56
)
Net change in unrealized gain (loss) on available-for-sale securities2
220

 
(59
)
 
161

Pension and other benefit liabilities:

 

 

Net pension and other benefits arising during the period
(12
)
 
1

 
(11
)
Reclassification adjustments recognized in net income
149

 
(49
)
 
100

Net change in pension and other benefit liabilities3
137

 
(48
)
 
89

Other comprehensive income (loss) attributable to The Coca-Cola Company
$
(366
)
 
$
387

 
$
21

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 and net investment hedging activity.
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 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:

 

 

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:

 

 

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.
The following table presents the amounts and line items in our condensed consolidated statements of income where adjustments reclassified from AOCI into income were recorded during the three and six months ended July 1, 2016 (in millions):
 
 
Amount Reclassified from
AOCI into Income
 
Description of AOCI Component
Financial Statement Line Item
Three Months Ended July 1, 2016
Six Months Ended July 1, 2016
 
Foreign currency translation adjustments:
 
 
 
 
Divestitures, deconsolidations and other1
Other income (loss) — net
$
203

$
203

 
 
Income before income taxes
203

203

 
 
Income taxes
(30
)
(30
)
 
 
Consolidated net income
$
173

$
173

 
Derivatives:
 
 
 
 
Foreign currency contracts
Net operating revenues
$
(137
)
$
(277
)
 
Foreign currency contracts
Cost of goods sold
(12
)
(32
)
 
Foreign currency contracts
Other income (loss) — net
45

2

 
Foreign currency and interest rate contracts
Interest expense
4

8

 
 
Income before income taxes
(100
)
(299
)
 
 
Income taxes
37

112

 
 
Consolidated net income
$
(63
)
$
(187
)
 
Available-for-sale securities:
 
 
 
 
Sale of securities
Other income (loss) — net
$
(4
)
$
(74
)
 
 
Income before income taxes
(4
)
(74
)
 
 
Income taxes
1

18

 
 
Consolidated net income
$
(3
)
$
(56
)
 
Pension and other benefit liabilities:
 
 
 
 
Divestitures, deconsolidations and other
Other income (loss) — net
$
64

$
64

 
Recognized net actuarial loss (gain)
*
47

95

 
Recognized prior service cost (credit)
*
(5
)
(10
)
 
 
Income before income taxes
106

149

 
 
Income taxes
(34
)
(49
)
 
 
Consolidated net income
$
72

$
100

 
1 Primarily related to the deconsolidation of our German bottling operations. Refer to Note 2.    
*
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.