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):
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|
|
|
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|
March 30,
2018 |
|
|
December 31, 2017 |
|
Foreign currency translation adjustments |
$ |
(8,288 |
) |
|
$ |
(8,957 |
) |
Accumulated derivative net gains (losses) |
(135 |
) |
|
(119 |
) |
Unrealized net gains (losses) on available-for-sale securities1
|
73 |
|
|
493 |
|
Adjustments to pension and other benefit liabilities |
(1,688 |
) |
|
(1,722 |
) |
Accumulated other comprehensive income (loss) |
$ |
(10,038 |
) |
|
$ |
(10,305 |
) |
1 The change in the balance from December 31, 2017 includes the $409 million reclassification to retained earnings upon the adoption of ASU
2016-01. Refer to Note 1 and Note 4.
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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|
Three Months Ended March 30, 2018 |
|
Shareowners of
The Coca-Cola Company
|
|
Noncontrolling
Interests
|
|
Total |
|
Consolidated net income |
$ |
1,368 |
|
$ |
32 |
|
$ |
1,400 |
|
Other comprehensive income: |
|
|
|
Net foreign currency translation adjustments |
669 |
|
59 |
|
728 |
|
Net gain (loss) on derivatives1
|
(16 |
) |
— |
|
(16 |
) |
Net change in unrealized gain (loss) on available-for-sale debt securities2
|
(11 |
) |
— |
|
(11 |
) |
Net change in pension and other benefit liabilities3
|
34 |
|
— |
|
34 |
|
Total comprehensive income |
$ |
2,044 |
|
$ |
91 |
|
$ |
2,135 |
|
1 Refer to Note 6 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 4 for additional information related to the net unrealized gain or loss on available-for-sale debt securities.
3 Refer to Note 13 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):
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|
|
Three Months Ended March 30, 2018 |
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the period |
$ |
167 |
|
|
$ |
(68 |
) |
|
$ |
99 |
|
Reclassification adjustments recognized in net income |
56 |
|
|
— |
|
|
56 |
|
Gains (losses) on intra-entity transactions that are of a long-term investment nature |
796 |
|
|
— |
|
|
796 |
|
Gains (losses) on net investment hedges arising during the period1
|
(411 |
) |
|
129 |
|
|
(282 |
) |
Net foreign currency translation adjustments |
$ |
608 |
|
|
$ |
61 |
|
|
$ |
669 |
|
Derivatives: |
|
|
|
|
|
Gains (losses) arising during the period |
$ |
66 |
|
|
$ |
(38 |
) |
|
$ |
28 |
|
Reclassification adjustments recognized in net income |
(58 |
) |
|
14 |
|
|
(44 |
) |
Net gains (losses) on derivatives1
|
$ |
8 |
|
|
$ |
(24 |
) |
|
$ |
(16 |
) |
Available-for-sale debt securities: |
|
|
|
|
|
Unrealized gains (losses) arising during the period |
$ |
(13 |
) |
|
$ |
(2 |
) |
|
$ |
(15 |
) |
Reclassification adjustments recognized in net income |
5 |
|
|
(1 |
) |
|
4 |
|
Net change in unrealized gain (loss) on available-for-sale debt securities2
|
$ |
(8 |
) |
|
$ |
(3 |
) |
|
$ |
(11 |
) |
Pension and other benefit liabilities: |
|
|
|
|
|
Net pension and other benefit liabilities arising during the period |
$ |
10 |
|
|
$ |
(1 |
) |
|
$ |
9 |
|
Reclassification adjustments recognized in net income |
33 |
|
|
(8 |
) |
|
25 |
|
Net change in pension and other benefit liabilities3
|
$ |
43 |
|
|
$ |
(9 |
) |
|
$ |
34 |
|
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company
|
$ |
651 |
|
|
$ |
25 |
|
|
$ |
676 |
|
|
|
1 |
Refer to Note 6 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
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|
2 |
Includes reclassification adjustments related to divestitures of certain available-for-sale debt securities. Refer to Note 4 for additional information related to these divestitures.
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|
|
3 |
Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities.
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|
Three Months Ended March 31, 2017 |
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the period |
$ |
472 |
|
|
$ |
47 |
|
|
$ |
519 |
|
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
408 |
|
|
— |
|
|
408 |
|
Gains (losses) on net investment hedges arising during the period1
|
(11 |
) |
|
4 |
|
|
(7 |
) |
Net foreign currency translation adjustments |
$ |
869 |
|
|
$ |
51 |
|
|
$ |
920 |
|
Derivatives: |
|
|
|
|
|
Gains (losses) arising during the period |
$ |
(78 |
) |
|
$ |
32 |
|
|
$ |
(46 |
) |
Reclassification adjustments recognized in net income |
(120 |
) |
|
45 |
|
|
(75 |
) |
Net gains (losses) on derivatives1
|
$ |
(198 |
) |
|
$ |
77 |
|
|
$ |
(121 |
) |
Available-for-sale securities: |
|
|
|
|
|
Unrealized gains (losses) arising during the period |
$ |
258 |
|
|
$ |
(87 |
) |
|
$ |
171 |
|
Reclassification adjustments recognized in net income |
(19 |
) |
|
7 |
|
|
(12 |
) |
Net change in unrealized gain (loss) on available-for-sale securities2
|
$ |
239 |
|
|
$ |
(80 |
) |
|
$ |
159 |
|
Pension and other benefit liabilities: |
|
|
|
|
|
Net pension and other benefit liabilities arising during the period |
$ |
(4 |
) |
|
$ |
19 |
|
|
$ |
15 |
|
Reclassification adjustments recognized in net income |
41 |
|
|
(15 |
) |
|
26 |
|
Net change in pension and other benefit liabilities3
|
$ |
37 |
|
|
$ |
4 |
|
|
$ |
41 |
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company |
$ |
947 |
|
|
$ |
52 |
|
|
$ |
999 |
|
|
|
1 |
Refer to Note 6 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
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|
|
2 |
Includes reclassification adjustments related to divestitures of certain available-for-sale securities. Refer to Note 4 for additional information related to these divestitures.
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|
|
3 |
Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities.
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The following table presents the amounts and line items in our condensed consolidated statement 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 March 30, 2018 |
|
Foreign currency translation adjustments: |
|
|
|
Divestitures, deconsolidations and other1
|
Other income (loss) — net |
$ |
56 |
|
|
|
Income from continuing operations before income taxes |
56 |
|
|
|
Income taxes from continuing operations |
— |
|
|
|
Consolidated net income |
$ |
56 |
|
|
Derivatives: |
|
|
|
Foreign currency contracts |
Net operating revenues |
$ |
(15 |
) |
|
Foreign currency and commodity contracts |
Cost of goods sold |
1 |
|
|
Foreign currency contracts |
Other income (loss) — net |
(71 |
) |
|
Foreign currency and commodity contracts |
Income from discontinued operations |
8 |
|
|
Foreign currency and interest rate contracts |
Interest expense |
19 |
|
|
|
Income from continuing operations before income taxes |
(58 |
) |
|
|
Income taxes from continuing operations |
14 |
|
|
|
Consolidated net income |
$ |
(44 |
) |
|
Available-for-sale securities: |
|
|
|
Sale of securities |
Other income (loss) — net |
$ |
5 |
|
|
|
Income from continuing operations before income taxes |
5 |
|
|
|
Income taxes from continuing operations |
(1 |
) |
|
|
Consolidated net income |
$ |
4 |
|
|
Pension and other benefit liabilities: |
|
|
|
Recognized net actuarial loss (gain) |
Other income (loss) — net |
$ |
35 |
|
|
Recognized prior service cost (credit) |
Other income (loss) — net |
(2 |
) |
|
|
Income from continuing operations before income taxes |
33 |
|
|
|
Income taxes from continuing operations |
(8 |
) |
|
|
Consolidated net income |
$ |
25 |
|
|
1 Primarily related to the reversal of the cumulative translation adjustments resulting from the substantial liquidation of the Company's
former Russian juice operations.
|