Current report filing

OTHER COMPREHENSIVE INCOME

v3.5.0.2
OTHER COMPREHENSIVE INCOME
12 Months Ended
Dec. 31, 2015
OTHER COMPREHENSIVE INCOME [Abstract]  
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME
AOCI attributable to shareowners of The Coca-Cola Company is separately presented on our 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. Other comprehensive income (loss) ("OCI") attributable to noncontrolling interests is allocated to, and included in, our 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):
December 31,
2015

 
2014

Foreign currency translation adjustment
$
(9,167
)
 
$
(5,226
)
Accumulated derivative net gains (losses)
696

 
554

Unrealized net gains (losses) on available-for-sale securities
288

 
972

Adjustments to pension and other benefit liabilities
(1,991
)
 
(2,077
)
Accumulated other comprehensive income (loss)
$
(10,174
)
 
$
(5,777
)

The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
 
Year Ended December 31, 2015
 
Shareowners of
The Coca-Cola Company

Noncontrolling
Interests

Total

Consolidated net income
$
7,351

$
15

$
7,366

Other comprehensive income:
 
 
 
Net foreign currency translation adjustment
(3,941
)
(18
)
(3,959
)
Net gain (loss) on derivatives1
142


142

Net unrealized gain (loss) on available-for-sale securities2
(684
)

(684
)
Net change in pension and other benefit liabilities3
86


86

Total comprehensive income
$
2,954

$
(3
)
$
2,951


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 information related to the net unrealized gain or loss on available-for-sale securities.
3 
Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities.
OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI, for the years ended December 31, 2015, 2014 and 2013, is as follows (in millions):
 
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

2015
 
 
 
 
 
Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustment arising during the year
$
(4,626
)
 
$
243

 
$
(4,383
)
Reclassification adjustments recognized in net income
63

 
(14
)
 
49

Unrealized gains (losses) on net investment hedges arising during the year
637

 
(244
)
 
393

     Net foreign currency translation adjustment
(3,926
)
 
(15
)
 
(3,941
)
Derivatives:
 
 
 
 
 
Unrealized gains (losses) arising during the year
853

 
(314
)
 
539

Reclassification adjustments recognized in net income
(638
)
 
241

 
(397
)
Net gain (loss) on derivatives1
215

 
(73
)
 
142

Available-for-sale securities:
 
 
 
 
 
Unrealized gains (losses) arising during the year
(973
)
 
328

 
(645
)
Reclassification adjustments recognized in net income
(61
)
 
22

 
(39
)
Net change in unrealized gain (loss) on available-for-sale securities2
(1,034
)
 
350

 
(684
)
Pension and other benefit liabilities:
 
 
 
 
 
Net pension and other benefits arising during the year
(169
)
 
43

 
(126
)
Reclassification adjustments recognized in net income
337

 
(125
)
 
212

Net change in pension and other benefit liabilities3
168

 
(82
)
 
86

Other comprehensive income (loss) attributable to The Coca-Cola Company
$
(4,577
)
 
$
180

 
$
(4,397
)
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 13 for additional information related to the Company's pension and other postretirement benefit liabilities.
 
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

2014
 
 
 
 
 
Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustment arising during the year
$
(2,560
)
 
$
183

 
$
(2,377
)
     Net foreign currency translation adjustment
(2,560
)
 
183

 
(2,377
)
Derivatives:
 
 
 
 
 
Unrealized gains (losses) arising during the year
620

 
(231
)
 
389

Reclassification adjustments recognized in net income
(50
)
 
18

 
(32
)
Net gain (loss) on derivatives1
570

 
(213
)
 
357

Available-for-sale securities:
 
 
 
 
 
Unrealized gains (losses) arising during the year
1,139

 
(412
)
 
727

Reclassification adjustments recognized in net income
(17
)
 
4

 
(13
)
Net change in unrealized gain (loss) on available-for-sale securities2
1,122

 
(408
)
 
714

Pension and other benefit liabilities:
 
 
 
 
 
Net pension and other benefits arising during the year
(1,666
)
 
588

 
(1,078
)
Reclassification adjustments recognized in net income
60

 
(21
)
 
39

Net change in pension and other benefit liabilities3
(1,606
)
 
567

 
(1,039
)
Other comprehensive income (loss) attributable to The Coca-Cola Company
$
(2,474
)
 
$
129

 
$
(2,345
)
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 13 for additional information related to the Company's pension and other postretirement benefit liabilities.
 
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

2013
 
 
 
 
 
Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustment arising during the year
$
(1,046
)
 
$
56

 
$
(990
)
Reclassification adjustments recognized in net income
(194
)
 

 
(194
)
     Net foreign currency translation adjustment
(1,240
)
 
56

 
(1,184
)
Derivatives:
 
 
 
 
 
Unrealized gains (losses) arising during the year
425

 
(173
)
 
252

Reclassification adjustments recognized in net income
(167
)
 
66

 
(101
)
Net gain (loss) on derivatives1
258

 
(107
)
 
151

Available-for-sale securities:
 
 
 
 
 
Unrealized gains (losses) arising during the year
(134
)
 
42

 
(92
)
Reclassification adjustments recognized in net income
12

 

 
12

Net change in unrealized gain (loss) on available-for-sale securities2
(122
)
 
42

 
(80
)
Pension and other benefit liabilities:
 
 
 
 
 
Net pension and other benefits arising during the year
1,490

 
(550
)
 
940

Reclassification adjustments recognized in net income
198

 
(72
)
 
126

Net change in pension and other benefit liabilities3
1,688

 
(622
)
 
1,066

Other comprehensive income (loss) attributable to The Coca-Cola Company
$
584

 
$
(631
)
 
$
(47
)
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 13 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 consolidated statements of income where adjustments reclassified from AOCI into income were recorded during the year ended December 31, 2015 (in millions):
Description of AOCI Component
Financial Statement Line Item
Amount Reclassified from
AOCI into Income

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
$
(630
)
Foreign currency and commodity contracts
Cost of goods sold
(59
)
Foreign currency contracts
Other income (loss) — net
40

Foreign currency and interest rate contracts
Interest expense
11

 
Income before income taxes
$
(638
)
 
Income taxes
241

 
Consolidated net income
$
(397
)
Available-for-sale securities:
 
 
Sale of securities
Other income (loss) — net
$
(61
)
 
Income before income taxes
$
(61
)
 
Income taxes
22

 
Consolidated net income
$
(39
)
Pension and other benefit liabilities:
 
 
Recognized net actuarial loss (gain)
*
$
358

Recognized prior service cost (credit)
*
(21
)
 
Income before income taxes
$
337

 
Income taxes
(125
)
 
Consolidated net income
$
212

*
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 consolidated statements of income in its entirety. Refer to Note 13 for additional information.