Quarterly report pursuant to Section 13 or 15(d)

Comprehensive Income

v3.5.0.2
Comprehensive Income
 9 Months Ended
Sep. 30, 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):
 
September 30, 2016

 
December 31, 2015

Foreign currency translation adjustments
$
(8,743
)
 
$
(9,167
)
Accumulated derivative net gains (losses)
30

 
696

Unrealized net gains (losses) on available-for-sale securities
367

 
288

Adjustments to pension and other benefit liabilities
(1,863
)
 
(1,991
)
Accumulated other comprehensive income (loss)
$
(10,209
)
 
$
(10,174
)

The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
 
Nine Months Ended September 30, 2016
 
Shareowners of
The Coca-Cola Company

Noncontrolling
Interests

Total

Consolidated net income
$
5,977

$
26

$
6,003

Other comprehensive income:
 
 
 
Net foreign currency translation adjustments
424

(9
)
415

Net gains (losses) on derivatives1
(666
)
—

(666
)
Net change in unrealized gains (losses) on available-for-sale securities2
79

—

79

Net change in pension and other benefit liabilities3
128

—

128

Total comprehensive income
$
5,942

$
17

$
5,959

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 Refer to Note 3 for additional information related to the net unrealized gain or loss on available-for-sale securities.
3 
Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities.
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 September 30, 2016
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustments arising during the period
$
(130
)
 
$
41

 
$
(89
)
Reclassification adjustments recognized in net income
242

 
(18
)
 
224

Gains (losses) on net investment hedges arising during the period1
(76
)
 
29

 
(47
)
Net foreign currency translation adjustments
36

 
52

 
88

Derivatives:

 

 

Gains (losses) arising during the period
22

 
(8
)
 
14

Reclassification adjustments recognized in net income
(186
)
 
71

 
(115
)
Net gains (losses) on derivatives1
(164
)
 
63

 
(101
)
Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
(98
)
 
31

 
(67
)
Reclassification adjustments recognized in net income
(19
)
 
4

 
(15
)
Net change in unrealized gain (loss) on available-for-sale securities2
(117
)
 
35

 
(82
)
Pension and other benefit liabilities:

 

 

Net pension and other benefit liabilities arising during the period
13

 
(2
)
 
11

Reclassification adjustments recognized in net income
43

 
(15
)
 
28

Net change in pension and other benefit liabilities3
56

 
(17
)
 
39

Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company
$
(189
)
 
$
133

 
$
(56
)
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.
Nine Months Ended September 30, 2016
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustments arising during the period
$
332

 
$
39

 
$
371

Reclassification adjustments recognized in net income
368

 
(18
)
 
350

Gains (losses) on net investment hedges arising during the period1
(558
)
 
214

 
(344
)
Reclassification adjustments for net investment hedges recognized in net income1
77

 
(30
)
 
47

Net foreign currency translation adjustments
219

 
205

 
424

Derivatives:

 

 

Gains (losses) arising during the period
(585
)
 
221

 
(364
)
Reclassification adjustments recognized in net income
(485
)
 
183

 
(302
)
Net gains (losses) on derivatives1
(1,070
)
 
404

 
(666
)
Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
196

 
(46
)
 
150

Reclassification adjustments recognized in net income
(93
)
 
22

 
(71
)
Net change in unrealized gain (loss) on available-for-sale securities2
103

 
(24
)
 
79

Pension and other benefit liabilities:

 

 

Net pension and other benefit liabilities arising during the period
1

 
(1
)
 
—

Reclassification adjustments recognized in net income
192

 
(64
)
 
128

Net change in pension and other benefit liabilities3
193

 
(65
)
 
128

Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company
$
(555
)
 
$
520

 
$
(35
)
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 October 2, 2015
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustments arising during the period
$
(1,279
)
 
$
22

 
$
(1,257
)
Net foreign currency translation adjustments
(1,279
)
 
22

 
(1,257
)
Derivatives:

 

 

Gains (losses) arising during the period
(200
)
 
79

 
(121
)
Reclassification adjustments recognized in net income
(183
)
 
68

 
(115
)
Net gains (losses) on derivatives1
(383
)
 
147

 
(236
)
Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
(606
)
 
13

 
(593
)
Reclassification adjustments recognized in net income
(29
)
 
14

 
(15
)
Net change in unrealized gain (loss) on available-for-sale securities2
(635
)
 
27

 
(608
)
Pension and other benefit liabilities:

 

 

Net pension and other benefit liabilities arising during the period
(7
)
 
1

 
(6
)
Reclassification adjustments recognized in net income
47

 
(17
)
 
30

Net change in pension and other benefit liabilities3
40

 
(16
)
 
24

Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company
$
(2,257
)
 
$
180

 
$
(2,077
)
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.
Nine Months Ended October 2, 2015
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustments arising during the period
$
(3,664
)
 
$
86

 
$
(3,578
)
Reclassification adjustments recognized in net income
63

 
(14
)
 
49

Net foreign currency translation adjustments
(3,601
)
 
72

 
(3,529
)
Derivatives:

 

 

Gains (losses) arising during the period
606

 
(229
)
 
377

Reclassification adjustments recognized in net income
(501
)
 
189

 
(312
)
Net gains (losses) on derivatives1
105

 
(40
)
 
65

Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
(2,034
)
 
369

 
(1,665
)
Reclassification adjustments recognized in net income
(58
)
 
22

 
(36
)
Net change in unrealized gain (loss) on available-for-sale securities2
(2,092
)
 
391

 
(1,701
)
Pension and other benefit liabilities:

 

 

Net pension and other benefit liabilities arising during the period
53

 
(15
)
 
38

Reclassification adjustments recognized in net income
142

 
(51
)
 
91

Net change in pension and other benefit liabilities3
195

 
(66
)
 
129

Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company
$
(5,393
)
 
$
357

 
$
(5,036
)
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 nine months ended September 30, 2016 (in millions):
 
 
Amount Reclassified from
AOCI into Income
 
Description of AOCI Component
Financial Statement Line Item
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
 
Foreign currency translation adjustments:
 
 
 
 
 
Divestitures, deconsolidations and other
Other income (loss) — net
$
242

1 
$
445

1,2 
 
Income before income taxes
242

 
445

 
 
Income taxes
(18
)
 
(48
)
 
 
Consolidated net income
$
224

 
$
397

 
Derivatives:
 
 
 
 
 
Foreign currency contracts
Net operating revenues
$
(139
)
 
$
(416
)
 
Foreign currency contracts
Cost of goods sold
(8
)
 
(40
)
 
Foreign currency contracts
Other income (loss) — net
(40
)
 
(38
)
 
Foreign currency and interest rate contracts
Interest expense
1

 
9

 
 
Income before income taxes
(186
)
 
(485
)
 
 
Income taxes
71

 
183

 
 
Consolidated net income
$
(115
)
 
$
(302
)
 
Available-for-sale securities:
 
 
 
 
 
Divestitures, deconsolidations and other1
Other income (loss) — net
$
(4
)
 
$
(4
)
 
Sale of securities
Other income (loss) — net
(15
)
 
(89
)
 
 
Income before income taxes
(19
)
 
(93
)
 
 
Income taxes
4

 
22

 
 
Consolidated net income
$
(15
)
 
$
(71
)
 
Pension and other benefit liabilities:
 
 
 
 
 
Divestitures, deconsolidations and other2
Other income (loss) — net
$
—

 
$
64

 
Recognized net actuarial loss (gain)
*
48

 
143

 
Recognized prior service cost (credit)
*
(5
)
 
(15
)
 
 
Income before income taxes
43

 
192

 
 
Income taxes
(15
)
 
(64
)
 
 
Consolidated net income
$
28

 
$
128

 
1 Primarily related to the deconsolidation of our South African bottling operations and related equity investment. Refer to Note 2.
2 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.