Quarterly report pursuant to Section 13 or 15(d)

Comprehensive Income

v3.7.0.1
Comprehensive Income
 6 Months Ended
Jun. 30, 2017
Comprehensive Income  
Comprehensive Income
OTHER 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, net of tax (in millions):
 
June 30,
2017

 
December 31, 2016

Foreign currency translation adjustments
$
(8,963
)
 
$
(9,780
)
Accumulated derivative net gains (losses)
16

 
314

Unrealized net gains (losses) on available-for-sale securities
469

 
305

Adjustments to pension and other benefit liabilities
(2,011
)
 
(2,044
)
Accumulated other comprehensive income (loss)
$
(10,489
)
 
$
(11,205
)

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 June 30, 2017
 
Shareowners of
The Coca-Cola Company

Noncontrolling
Interests

Total

Consolidated net income
$
2,553

$
3

$
2,556

Other comprehensive income:
 
 
 
Net foreign currency translation adjustment
817

1

818

Net gain (loss) on derivatives1
(298
)
—

(298
)
Net change in unrealized gain (loss) on available-for-sale securities2
164

—

164

Net change in pension and other benefit liabilities3
33

—

33

Total comprehensive income
$
3,269

$
4

$
3,273

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 June 30, 2017
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustments arising during the period
$
(1,427
)
 
$
(15
)
 
$
(1,442
)
Reclassification adjustments recognized in net income
120

 
(6
)
 
114

Gains (losses) on intra-entity transactions that are of a long-term-investment nature
1,799

 
—

 
1,799

Gains (losses) on net investment hedges arising during the period1
(930
)
 
356

 
(574
)
Net foreign currency translation adjustments
(438
)
 
335

 
(103
)
Derivatives:

 

 

Gains (losses) arising during the period
(135
)
 
43

 
(92
)
Reclassification adjustments recognized in net income
(139
)
 
54

 
(85
)
Net gains (losses) on derivatives1
(274
)
 
97

 
(177
)
Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
87

 
(19
)
 
68

Reclassification adjustments recognized in net income
(94
)
 
31

 
(63
)
Net change in unrealized gain (loss) on available-for-sale securities2
(7
)
 
12

 
5

Pension and other benefit liabilities:

 

 

Net pension and other benefit liabilities arising during the period
(37
)
 
5

 
(32
)
Reclassification adjustments recognized in net income
32

 
(8
)
 
24

Net change in pension and other benefit liabilities3
(5
)
 
(3
)
 
(8
)
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company
$
(724
)
 
$
441

 
$
(283
)
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 and Note 10 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 30, 2017
Before-Tax Amount

 
Income Tax

 
After-Tax Amount

Foreign currency translation adjustments:
 
 
 
 
 
Translation adjustments arising during the period
$
(955
)
 
$
32

 
$
(923
)
Reclassification adjustments recognized in net income
120

 
(6
)
 
114

Gains (losses) on intra-entity transactions that are of a long-term-investment nature
2,207

 
—

 
2,207

Gains (losses) on net investment hedges arising during the period1
(941
)
 
360

 
(581
)
Net foreign currency translation adjustments
431

 
386

 
817

Derivatives:

 

 

Gains (losses) arising during the period
(213
)
 
75

 
(138
)
Reclassification adjustments recognized in net income
(259
)
 
99

 
(160
)
Net gains (losses) on derivatives1
(472
)
 
174

 
(298
)
Available-for-sale securities:

 

 

Unrealized gains (losses) arising during the period
345

 
(106
)
 
239

Reclassification adjustments recognized in net income
(113
)
 
38

 
(75
)
Net change in unrealized gain (loss) on available-for-sale securities2
232

 
(68
)
 
164

Pension and other benefit liabilities:

 

 

Net pension and other benefit liabilities arising during the period
(41
)
 
24

 
(17
)
Reclassification adjustments recognized in net income
73

 
(23
)
 
50

Net change in pension and other benefit liabilities3
32

 
1

 
33

Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company
$
223

 
$
493

 
$
716

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 and Note 10 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 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 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 gains (losses) 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 benefit liabilities 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 shareowners of 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.
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 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 gains (losses) 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 benefit liabilities 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 shareowners of 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.
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 (in millions):
 
 
Amount Reclassified from
AOCI into Income
 
Description of AOCI Component
Financial Statement Line Item
Three Months Ended June 30, 2017
 
Six Months Ended June 30, 2017
 
Foreign currency translation adjustments:
 
 
 
 
 
Divestitures, deconsolidations and other1
Other income (loss) — net
$
120

 
$
120

 
 
Income before income taxes
120

 
120

 
 
Income taxes
(6
)
 
(6
)
 
 
Consolidated net income
$
114

 
$
114

 
Derivatives:
 
 
 
 
 
Foreign currency contracts
Net operating revenues
$
(115
)
 
$
(222
)
 
Foreign currency and commodity contracts
Cost of goods sold
(2
)
 
(6
)
 
Foreign currency contracts
Other income (loss) — net
(33
)
 
(52
)
 
Divestitures, deconsolidations and other1

Other income (loss) — net
1

 
1

 
Foreign currency and interest rate contracts
Interest expense
10

 
20

 
 
Income before income taxes
(139
)
 
(259
)
 
 
Income taxes
54

 
99

 
 
Consolidated net income
$
(85
)
 
$
(160
)
 
Available-for-sale securities:
 
 
 
 
 
Divestitures, deconsolidations and other1

Other income (loss) — net
$
(87
)
 
$
(87
)
 
Sale of securities
Other income (loss) — net
(7
)
 
(26
)
 
 
Income before income taxes
(94
)
 
(113
)
 
 
Income taxes
31

 
38

 
 
Consolidated net income
$
(63
)
 
$
(75
)
 
Pension and other benefit liabilities:
 
 
 
 
 
Curtailment charge
Other operating charges
$
(18
)
 
$
(18
)
 
Divestitures, deconsolidations and other1
Other income (loss) — net
7

 
7

 
Recognized net actuarial loss (gain)
*
47

 
93

 
Recognized prior service cost (credit)
*
(4
)
 
(9
)
 
 
Income before income taxes
32

 
73

 
 
Income taxes
(8
)
 
(23
)
 
 
Consolidated net income
$
24

 
$
50

 

1 Primarily related to the integration of Coca-Cola West Co., Ltd. ("CCW") and Coca-Cola East Japan Co., Ltd. ("CCEJ") to establish Coca-Cola Bottlers Japan Inc. ("CCBJI"). Refer to Note 10.
*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.