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):
|
|
|
|
|
|
|
|
|
|
September 29,
2017 |
|
|
December 31, 2016 |
|
Foreign currency translation adjustments |
$ |
(8,271 |
) |
|
$ |
(9,780 |
) |
Accumulated derivative net gains (losses) |
(80 |
) |
|
314 |
|
Unrealized net gains (losses) on available-for-sale securities |
470 |
|
|
305 |
|
Adjustments to pension and other benefit liabilities |
(1,962 |
) |
|
(2,044 |
) |
Accumulated other comprehensive income (loss) |
$ |
(9,843 |
) |
|
$ |
(11,205 |
) |
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
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|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 29, 2017
|
|
Shareowners of
The Coca-Cola Company
|
|
Noncontrolling
Interests
|
|
Total |
|
Consolidated net income |
$ |
4,000 |
|
$ |
— |
|
$ |
4,000 |
|
Other comprehensive income: |
|
|
|
Net foreign currency translation adjustments |
1,509 |
|
2 |
|
1,511 |
|
Net gain (loss) on derivatives1
|
(394 |
) |
— |
|
(394 |
) |
Net change in unrealized gain (loss) on available-for-sale securities2
|
165 |
|
— |
|
165 |
|
Net change in pension and other benefit liabilities3
|
82 |
|
— |
|
82 |
|
Total comprehensive income |
$ |
5,362 |
|
$ |
2 |
|
$ |
5,364 |
|
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.
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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 29, 2017 |
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the period |
$ |
162 |
|
|
$ |
(174 |
) |
|
$ |
(12 |
) |
Reclassification adjustments recognized in net income |
(17 |
) |
|
— |
|
|
(17 |
) |
Gains (losses) on intra-entity transactions that are of a long-term-investment nature |
1,063 |
|
|
— |
|
|
1,063 |
|
Gains (losses) on net investment hedges arising during the period1
|
(553 |
) |
|
211 |
|
|
(342 |
) |
Net foreign currency translation adjustments |
655 |
|
|
37 |
|
|
692 |
|
Derivatives: |
|
|
|
|
|
Gains (losses) arising during the period |
54 |
|
|
(19 |
) |
|
35 |
|
Reclassification adjustments recognized in net income |
(207 |
) |
|
76 |
|
|
(131 |
) |
Net gains (losses) on derivatives1
|
(153 |
) |
|
57 |
|
|
(96 |
) |
Available-for-sale securities: |
|
|
|
|
|
Unrealized gains (losses) arising during the period |
20 |
|
|
(17 |
) |
|
3 |
|
Reclassification adjustments recognized in net income |
(4 |
) |
|
2 |
|
|
(2 |
) |
Net change in unrealized gain (loss) on available-for-sale securities2
|
16 |
|
|
(15 |
) |
|
1 |
|
Pension and other benefit liabilities: |
|
|
|
|
|
Net pension and other benefit liabilities arising during the period |
(120 |
) |
|
49 |
|
|
(71 |
) |
Reclassification adjustments recognized in net income |
193 |
|
|
(73 |
) |
|
120 |
|
Net change in pension and other benefit liabilities3
|
73 |
|
|
(24 |
) |
|
49 |
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company |
$ |
591 |
|
|
$ |
55 |
|
|
$ |
646 |
|
|
|
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.
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|
|
3 |
Refer to Note 12 for additional information related to the Company's pension and other postretirement benefit liabilities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 29, 2017 |
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the period |
$ |
(793 |
) |
|
$ |
(142 |
) |
|
$ |
(935 |
) |
Reclassification adjustments recognized in net income |
103 |
|
|
(6 |
) |
|
97 |
|
Gains (losses) on intra-entity transactions that are of a long-term-investment nature |
3,270 |
|
|
— |
|
|
3,270 |
|
Gains (losses) on net investment hedges arising during the period1
|
(1,494 |
) |
|
571 |
|
|
(923 |
) |
Net foreign currency translation adjustments |
1,086 |
|
|
423 |
|
|
1,509 |
|
Derivatives: |
|
|
|
|
|
Gains (losses) arising during the period |
(159 |
) |
|
56 |
|
|
(103 |
) |
Reclassification adjustments recognized in net income |
(466 |
) |
|
175 |
|
|
(291 |
) |
Net gains (losses) on derivatives1
|
(625 |
) |
|
231 |
|
|
(394 |
) |
Available-for-sale securities: |
|
|
|
|
|
Unrealized gains (losses) arising during the period |
365 |
|
|
(123 |
) |
|
242 |
|
Reclassification adjustments recognized in net income |
(117 |
) |
|
40 |
|
|
(77 |
) |
Net change in unrealized gain (loss) on available-for-sale securities2
|
248 |
|
|
(83 |
) |
|
165 |
|
Pension and other benefit liabilities: |
|
|
|
|
|
Net pension and other benefit liabilities arising during the period |
(161 |
) |
|
73 |
|
|
(88 |
) |
Reclassification adjustments recognized in net income |
266 |
|
|
(96 |
) |
|
170 |
|
Net change in pension and other benefit liabilities3
|
105 |
|
|
(23 |
) |
|
82 |
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company |
$ |
814 |
|
|
$ |
548 |
|
|
$ |
1,362 |
|
|
|
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 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.
|
|
|
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.
|
|
|
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):
|
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|
|
|
|
|
|
|
|
|
|
|
Amount Reclassified from
AOCI into Income
|
|
Description of AOCI Component |
Financial Statement Line Item |
Three Months Ended September 29, 2017 |
|
Nine Months Ended September 29, 2017 |
|
Foreign currency translation adjustments: |
|
|
|
|
|
Divestitures, deconsolidations and other1
|
Other income (loss) — net |
$ |
(17 |
) |
|
$ |
103 |
|
|
|
Income before income taxes |
(17 |
) |
|
103 |
|
|
|
Income taxes |
— |
|
|
(6 |
) |
|
|
Consolidated net income |
$ |
(17 |
) |
|
$ |
97 |
|
|
Derivatives: |
|
|
|
|
|
Foreign currency contracts |
Net operating revenues |
$ |
(116 |
) |
|
$ |
(338 |
) |
|
Foreign currency and commodity contracts |
Cost of goods sold |
5 |
|
|
(1 |
) |
|
Foreign currency contracts |
Other income (loss) — net |
(107 |
) |
|
(159 |
) |
|
|
Divestitures, deconsolidations and other1
|
Other income (loss) — net |
— |
|
|
1 |
|
|
Foreign currency and interest rate contracts |
Interest expense |
11 |
|
|
31 |
|
|
|
Income before income taxes |
(207 |
) |
|
(466 |
) |
|
|
Income taxes |
76 |
|
|
175 |
|
|
|
Consolidated net income |
$ |
(131 |
) |
|
$ |
(291 |
) |
|
Available-for-sale securities: |
|
|
|
|
|
|
Divestitures, deconsolidations and other1
|
Other income (loss) — net |
$ |
— |
|
|
$ |
(87 |
) |
|
Sale of securities |
Other income (loss) — net |
(4 |
) |
|
(30 |
) |
|
|
Income before income taxes |
(4 |
) |
|
(117 |
) |
|
|
Income taxes |
2 |
|
|
40 |
|
|
|
Consolidated net income |
$ |
(2 |
) |
|
$ |
(77 |
) |
|
Pension and other benefit liabilities: |
|
|
|
|
|
Curtailment charges (credits)2
|
Other operating charges |
$ |
1 |
|
|
$ |
(17 |
) |
|
Settlement charges (credits)2
|
Other operating charges |
150 |
|
|
150 |
|
|
Divestitures, deconsolidations and other1
|
Other income (loss) — net |
— |
|
|
7 |
|
|
Recognized net actuarial loss (gain) |
* |
46 |
|
|
139 |
|
|
Recognized prior service cost (credit) |
* |
(4 |
) |
|
(13 |
) |
|
|
Income before income taxes |
193 |
|
|
266 |
|
|
|
Income taxes |
(73 |
) |
|
(96 |
) |
|
|
Consolidated net income |
$ |
120 |
|
|
$ |
170 |
|
|
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.
2 The curtailment charges (credits) and settlement charges (credits) were primarily related to North America refranchising and the
Company's productivity, restructuring and integration initiatives.
*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.
|