| Operating Segments |
OPERATING SEGMENTS
Information about our Company's continuing operations by operating segment is as follows (in millions):
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Europe, Middle East & Africa |
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Latin
America |
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North
America |
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Asia Pacific |
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Bottling
Investments |
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Corporate |
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Eliminations |
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Consolidated |
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As of and for the three months ended June 29, 2018 |
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Net operating revenues: |
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Third party |
$ |
2,046 |
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$ |
1,012 |
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$ |
3,046 |
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$ |
1,399 |
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$ |
1,235 |
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$ |
65 |
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$ |
— |
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$ |
8,803 |
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Intersegment |
124 |
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19 |
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71 |
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118 |
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— |
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— |
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(208 |
) |
124 |
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1 |
Total net operating revenues |
2,170 |
|
1,031 |
|
3,117 |
|
1,517 |
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1,235 |
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65 |
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(208 |
) |
8,927 |
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Operating income (loss) |
1,095 |
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593 |
|
684 |
|
705 |
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(56 |
) |
(294 |
) |
— |
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2,727 |
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Income (loss) from continuing
operations before income taxes
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1,117 |
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541 |
|
699 |
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712 |
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91 |
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(277 |
) |
— |
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2,883 |
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Identifiable operating assets |
8,838 |
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1,847 |
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18,346 |
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2,429 |
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3,696 |
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26,137 |
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— |
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61,293 |
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2 |
Noncurrent investments |
1,172 |
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777 |
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105 |
|
200 |
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15,700 |
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3,665 |
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— |
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21,619 |
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As of and for the three months ended June 30, 2017 |
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Net operating revenues:3
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Third party |
$ |
2,037 |
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$ |
935 |
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$ |
2,326 |
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$ |
1,384 |
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$ |
2,975 |
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$ |
45 |
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$ |
— |
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$ |
9,702 |
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Intersegment |
— |
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15 |
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577 |
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123 |
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23 |
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— |
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(738 |
) |
— |
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Total net operating revenues |
2,037 |
|
950 |
|
2,903 |
|
1,507 |
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2,998 |
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45 |
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(738 |
) |
9,702 |
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Operating income (loss)3,4
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1,076 |
|
559 |
|
755 |
|
709 |
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(651 |
) |
(411 |
) |
— |
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2,037 |
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Income (loss) from continuing
operations before income taxes3
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1,111 |
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559 |
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659 |
|
716 |
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(519 |
) |
98 |
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— |
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2,624 |
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Identifiable operating assets |
5,409 |
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1,787 |
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17,423 |
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2,340 |
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8,157 |
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34,027 |
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— |
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69,143 |
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Noncurrent investments |
1,330 |
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880 |
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110 |
|
168 |
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16,035 |
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3,480 |
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— |
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22,003 |
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As of December 31, 2017 |
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Identifiable operating assets |
$ |
5,475 |
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$ |
1,896 |
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$ |
17,619 |
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$ |
2,072 |
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$ |
4,493 |
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$ |
27,060 |
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$ |
— |
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$ |
58,615 |
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5 |
Noncurrent investments |
1,238 |
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891 |
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112 |
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177 |
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15,998 |
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3,536 |
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— |
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21,952 |
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1 Intersegment revenues do not eliminate on a consolidated basis in the table above due to intercompany sales to our discontinued operations.
2 Identifiable operating assets excludes $6,681 million of assets held for sale — discontinued operations.
3 Amounts have been adjusted to reflect the reclassification of certain revenue streams from the Bottling Investments operating segment to the North America operating segment effective January 1, 2018.
4 Amounts have been adjusted to reflect the adoption of ASU 2017-07. Refer to Note 1.
5 Identifiable operating assets excludes $7,329 million of assets held for sale — discontinued operations.
During the three months ended June 29, 2018, the results of our operating segments were impacted by the following items:
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $1 million for Latin America, $47 million for North America, $1 million for Asia Pacific, $16 million for Bottling Investments and $46 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 12.
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• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $60 million for Bottling Investments due to asset impairment charges. Refer to Note 11 and Note 15.
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• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $34 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 11.
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• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $22 million for Corporate due to tax litigation expense. Refer to Note 11.
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Income (loss) from continuing operations before income taxes was reduced by $102 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 11.
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Income (loss) from continuing operations before income taxes was reduced by $52 million for Latin America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 11 and Note 15.
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• |
Income (loss) from continuing operations before income taxes was reduced by $47 million for Bottling Investments and $39 million for Corporate due to pension settlements. Refer to Note 11 and Note 13.
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• |
Income (loss) from continuing operations before income taxes was reduced by $31 million for Bottling Investments and$2 million for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 11.
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• |
Income (loss) from continuing operations before income taxes was increased by $36 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4 and Note 11.
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• |
Income (loss) from continuing operations before income taxes was increased by $36 million for Corporate related to the refranchising of our Latin American bottling operations. Refer to Note 2.
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During the three months ended June 30, 2017, the results of our operating segments were impacted by the following items:
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• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $1 million for Latin America, $49 million for North America, $2 million for Asia Pacific, $10 million for Bottling Investments and $31 million for Corporate due to the Company's productivity and reinvestment program. Operating income (loss) and income (loss) from continuing operations before income taxes were increased by $6 million for Europe, Middle East and Africa due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. Refer to Note 12.
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• |
Operating income (loss) was reduced by $47 million and income (loss) from continuing operations before income taxes was reduced by $44 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 2.
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $653 million for Bottling Investments and $14 million for Corporate due to asset impairment charges. Refer to Note 1, Note 11 and Note 15.
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• |
Income (loss) from continuing operations before income taxes was increased by $38 million for Bottling Investments and reduced by $1 million for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 11.
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Income (loss) from continuing operations before income taxes was reduced by $109 million for North America primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2.
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Income (loss) from continuing operations before income taxes was reduced by $214 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 11.
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Income (loss) from continuing operations before income taxes was increased by $445 million for Corporate due to a gain recognized resulting from the merger of CCW and CCEJ. Refer to Note 11.
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Income (loss) from continuing operations before income taxes was increased by $9 million for Corporate due to a gain recognized upon refranchising a substantial portion of our China bottling operations. Refer to Note 2.
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Income (loss) from continuing operations before income taxes was increased by $25 million for Corporate due to Coca‑Cola FEMSA, an equity method investee, issuing additional shares of its stock during the period at a per share amount greater than the carrying value of the Company's per share investment.
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Income (loss) from continuing operations before income taxes was reduced by $26 million for Corporate due to charges related to our former German bottling operations.
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• |
Income (loss) from continuing operations before income taxes was reduced by $38 million for Corporate due to the early extinguishment of long-term debt.
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Europe, Middle East & Africa |
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Latin
America |
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North
America |
|
Asia Pacific |
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Bottling
Investments |
|
Corporate |
|
Eliminations |
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Consolidated |
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Six months ended June 29, 2018 |
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Net operating revenues: |
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Third party |
$ |
3,738 |
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$ |
1,991 |
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$ |
5,671 |
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$ |
2,511 |
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$ |
2,286 |
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$ |
83 |
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$ |
— |
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$ |
16,280 |
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Intersegment |
273 |
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38 |
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126 |
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224 |
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— |
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— |
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(388 |
) |
273 |
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1 |
Total net operating revenues |
4,011 |
|
2,029 |
|
5,797 |
|
2,735 |
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2,286 |
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83 |
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(388 |
) |
16,553 |
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Operating income (loss) |
2,009 |
|
1,165 |
|
1,215 |
|
1,270 |
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(517 |
) |
(604 |
) |
— |
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4,538 |
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Income (loss) from continuing
operations before income taxes
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2,044 |
|
1,107 |
|
1,230 |
|
1,286 |
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(297 |
) |
(654 |
) |
— |
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4,716 |
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Six months ended June 30, 2017 |
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Net operating revenues:2
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Third party |
$ |
3,669 |
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$ |
1,848 |
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$ |
3,979 |
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$ |
2,462 |
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$ |
6,788 |
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$ |
74 |
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$ |
— |
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$ |
18,820 |
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Intersegment |
— |
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28 |
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1,341 |
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253 |
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46 |
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— |
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(1,668 |
) |
— |
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Total net operating revenues |
3,669 |
|
1,876 |
|
5,320 |
|
2,715 |
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6,834 |
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74 |
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(1,668 |
) |
18,820 |
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Operating income (loss)2,3
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1,936 |
|
1,064 |
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1,329 |
|
1,250 |
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(740 |
) |
(839 |
) |
— |
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4,000 |
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Income (loss) from continuing
operations before income taxes2
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1,996 |
|
1,066 |
|
1,136 |
|
1,265 |
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(1,065 |
) |
(267 |
) |
— |
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4,131 |
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1 Intersegment revenues do not eliminate on a consolidated basis in the table above due to intercompany sales to our discontinued operations.
2 Amounts have been adjusted to reflect the reclassification of certain revenue streams from the Bottling Investments operating segment to the North America operating segment effective January 1, 2018.
3 Amounts have been adjusted to reflect the adoption of ASU 2017-07. Refer to Note 1.
During the six months ended June 29, 2018, the results of our operating segments were impacted by the following items:
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• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $2 million for Europe, Middle East and Africa, $3 million for Latin America, $99 million for North America, $1 million for Asia Pacific, $22 million for Bottling Investments and $79 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 12.
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $450 million for Bottling Investments due to asset impairment charges. Refer to Note 11 and Note 15.
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• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $79 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 11.
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• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $27 million for Corporate due to tax litigation expense. Refer to Note 11.
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• |
Income (loss) from continuing operations before income taxes was reduced by $104 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 11.
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• |
Income (loss) from continuing operations before income taxes was reduced by $99 million for Bottling Investments and increased by $15 million for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 11.
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• |
Income (loss) from continuing operations before income taxes was reduced by $52 million for Latin America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 11 and Note 15.
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• |
Income (loss) from continuing operations before income taxes was reduced by $49 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4 and Note 11.
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• |
Income (loss) from continuing operations before income taxes was reduced by $47 million for Bottling Investments and $39 million for Corporate due to pension settlements. Refer to Note 11 and Note 13.
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Income (loss) from continuing operations before income taxes was reduced by $33 million for Bottling Investments primarily due to the reversal of the cumulative translation adjustments resulting from the substantial liquidation of the Company's former Russian juice operations. Refer to Note 11.
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Income (loss) from continuing operations before income taxes was reduced by $21 million for North America primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2.
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• |
Income (loss) from continuing operations before income taxes was increased by $36 million for Corporate related to the refranchising of our Latin American bottling operations. Refer to Note 2.
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During the six months ended June 30, 2017, the results of our operating segments were impacted by the following items:
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• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $1 million for Latin America, $84 million for North America, $3 million for Asia Pacific, $24 million for Bottling Investments and$118 million for Corporate due to the Company's productivity and reinvestment program. Operating income (loss) and income (loss) from continuing operations before income taxes were increased by $4 million for Europe, Middle East and Africa due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. Refer to Note 12.
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• |
Operating income (loss) was reduced by $86 million and income (loss) from continuing operations before income taxes was reduced by $101 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 2.
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• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $737 million for Bottling Investments and $34 million for Corporate due to asset impairment charges. Refer to Note 1 and Note 11.
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• |
Income (loss) from continuing operations before income taxes was reduced by $4 million for Europe, Middle East and Africa, $15 million for Bottling Investments and $2 million for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 11.
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• |
Income (loss) from continuing operations before income taxes was reduced by $215 million for North America primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2.
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• |
Income (loss) from continuing operations before income taxes was reduced by $711 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 11.
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• |
Income (loss) from continuing operations before income taxes was increased by $445 million for Corporate due to a gain recognized resulting from the merger of CCW and CCEJ. Refer to Note 11.
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• |
Income (loss) from continuing operations before income taxes was increased by $9 million for Corporate due to a gain recognized upon refranchising a substantial portion of our China bottling operations. Refer to Note 2.
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• |
Income (loss) from continuing operations before income taxes was increased by $25 million for Corporate due to Coca‑Cola FEMSA, an equity method investee, issuing additional shares of its stock during the period at a per share amount greater than the carrying value of the Company's per share investment.
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• |
Income (loss) from continuing operations before income taxes was reduced by $26 million for Corporate due to charges related to our former German bottling operations.
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• |
Income (loss) from continuing operations before income taxes was reduced by $38 million for Corporate due to the early extinguishment of long-term debt.
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