| Operating Segments |
OPERATING SEGMENTS
Effective January 1, 2019, we established a new operating segment, Global Ventures, which includes the results of Costa, which we acquired in January 2019, and the results of our innocent and doğadan businesses as well as fees earned pursuant to distribution coordination agreements between the Company and Monster. Additionally, during the three months ended June 28, 2019, the Company updated its plans for CCBA and now intends to maintain its majority stake in CCBA for the foreseeable future. As a result, the Company now presents the financial results of CCBA within its results from continuing operations and includes the results of CCBA in the Bottling Investments operating segment. Accordingly, all prior period operating segment and Corporate information presented herein has been adjusted to reflect these changes.
Information about our Company's operations by operating segment and Corporate 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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Global Ventures |
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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 28, 2019 |
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Net operating revenues: |
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Third party |
$ |
1,804 |
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$ |
1,003 |
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$ |
3,158 |
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$ |
1,350 |
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$ |
635 |
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$ |
2,024 |
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$ |
23 |
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$ |
— |
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$ |
9,997 |
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Intersegment |
126 |
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— |
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4 |
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190 |
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— |
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2 |
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— |
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(322 |
) |
— |
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Total net operating revenues |
1,930 |
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1,003 |
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3,162 |
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1,540 |
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635 |
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2,026 |
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23 |
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(322 |
) |
9,997 |
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Operating income (loss) |
1,038 |
|
588 |
|
711 |
|
731 |
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73 |
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119 |
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(272 |
) |
— |
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2,988 |
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Income (loss) before income taxes |
1,062 |
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540 |
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729 |
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738 |
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75 |
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393 |
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(488 |
) |
— |
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3,049 |
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Identifiable operating assets |
8,511 |
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2,008 |
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18,512 |
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2,266 |
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7,236 |
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10,727 |
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20,424 |
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— |
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69,684 |
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Noncurrent investments |
731 |
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728 |
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364 |
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223 |
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16 |
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14,420 |
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3,830 |
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— |
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20,312 |
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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 |
$ |
1,884 |
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$ |
1,011 |
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$ |
3,010 |
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$ |
1,396 |
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$ |
210 |
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$ |
1,853 |
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$ |
57 |
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$ |
— |
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$ |
9,421 |
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Intersegment |
124 |
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19 |
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70 |
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118 |
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1 |
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2 |
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— |
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(334 |
) |
— |
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Total net operating revenues |
2,008 |
|
1,030 |
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3,080 |
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1,514 |
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211 |
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1,855 |
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57 |
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(334 |
) |
9,421 |
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Operating income (loss) |
1,093 |
|
593 |
|
648 |
|
703 |
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37 |
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(17 |
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(291 |
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— |
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2,766 |
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Income (loss) before income taxes |
1,114 |
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541 |
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660 |
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710 |
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40 |
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131 |
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(254 |
) |
— |
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2,942 |
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Identifiable operating assets |
8,240 |
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1,847 |
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17,951 |
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2,427 |
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995 |
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10,198 |
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26,310 |
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— |
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67,968 |
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Noncurrent investments |
1,172 |
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777 |
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105 |
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200 |
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— |
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15,706 |
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3,665 |
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— |
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21,625 |
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As of December 31, 2018 |
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Identifiable operating assets |
$ |
7,414 |
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$ |
1,715 |
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$ |
17,519 |
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$ |
1,996 |
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$ |
968 |
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$ |
10,525 |
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$ |
22,800 |
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$ |
— |
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$ |
62,937 |
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Noncurrent investments |
789 |
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784 |
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400 |
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216 |
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— |
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14,372 |
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3,718 |
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— |
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20,279 |
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During the three months ended June 28, 2019, the results of our operating segments and Corporate were impacted by the following items:
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Operating income (loss) and income (loss) before income taxes were reduced by $13 million for North America, $1 million for Bottling Investments and $41 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 13.
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Operating income (loss) and income (loss) before income taxes were reduced by $29 million for Bottling Investments related to costs incurred to refranchise certain of our North America bottling operations. Refer to Note 12.
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Income (loss) before income taxes was reduced by $160 million for Corporate as result of CCBA asset adjustments. Refer to Note 2.
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Income (loss) before income taxes was reduced by $24 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.
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• |
Income (loss) before income taxes was reduced by $49 million for Latin America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 16.
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During the three months ended June 29, 2018, the results of our operating segments and Corporate were impacted by the following items:
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Operating income (loss) and income (loss) 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 13.
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Operating income (loss) and income (loss) before income taxes were reduced by $60 million for Bottling Investments due to asset impairment charges. Refer to Note 16.
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Operating income (loss) and income (loss) 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 12.
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Operating income (loss) and income (loss) before income taxes were reduced by $22 million for Corporate due to tax litigation expense.
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Income (loss) 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.
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Income (loss) 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 16.
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Income (loss) before income taxes was reduced by $47 million for Bottling Investments and $39 million for Corporate due to pension settlements. Refer to Note 14.
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Income (loss) 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.
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Income (loss) 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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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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Global Ventures |
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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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Six Months Ended June 28, 2019 |
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Net operating revenues: |
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Third party |
$ |
3,438 |
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$ |
1,899 |
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$ |
5,839 |
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$ |
2,410 |
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$ |
1,218 |
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$ |
3,832 |
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$ |
55 |
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$ |
— |
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$ |
18,691 |
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Intersegment |
264 |
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— |
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6 |
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317 |
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2 |
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4 |
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— |
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(593 |
) |
— |
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Total net operating revenues |
3,702 |
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1,899 |
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5,845 |
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2,727 |
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1,220 |
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3,836 |
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55 |
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(593 |
) |
18,691 |
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Operating income (loss) |
2,016 |
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1,084 |
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1,297 |
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1,273 |
|
139 |
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219 |
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(605 |
) |
— |
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5,423 |
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Income (loss) before income taxes |
2,050 |
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1,031 |
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1,266 |
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1,288 |
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143 |
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293 |
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(797 |
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— |
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5,274 |
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Six Months Ended June 29, 2018 |
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Net operating revenues: |
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Third party |
$ |
3,421 |
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$ |
1,989 |
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$ |
5,608 |
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$ |
2,505 |
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$ |
403 |
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$ |
3,725 |
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$ |
68 |
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$ |
— |
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$ |
17,719 |
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Intersegment |
273 |
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38 |
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124 |
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224 |
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2 |
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4 |
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— |
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(665 |
) |
— |
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Total net operating revenues |
3,694 |
|
2,027 |
|
5,732 |
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2,729 |
|
405 |
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3,729 |
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68 |
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(665 |
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17,719 |
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Operating income (loss) |
2,007 |
|
1,164 |
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1,151 |
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1,265 |
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66 |
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(342 |
) |
(598 |
) |
— |
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4,713 |
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Income (loss) before income taxes |
2,041 |
|
1,106 |
|
1,160 |
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1,281 |
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72 |
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(122 |
) |
(651 |
) |
— |
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4,887 |
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During the six months ended June 28, 2019, the results of our operating segments and Corporate were impacted by the following items:
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, Middle East and Africa, $30 million for North America, $3 million for Bottling Investments and $89 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 13.
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Operating income (loss) and income (loss) before income taxes were reduced by $46 million for Corporate related to transaction costs associated with the purchase of Costa, which we acquired in January 2019. Refer to Note 2.
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $40 million for Bottling Investments related to costs incurred to refranchise certain of our North America bottling operations. Refer to Note 12.
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Income (loss) before income taxes was reduced by $286 million for Bottling Investments due to an other-than-temporary impairment charge related to CCBJHI, an equity method investee. Refer to Note 16.
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Income (loss) before income taxes was reduced by $121 million for Corporate resulting from a loss in conjunction with our acquisition of the remaining equity ownership interest in CHI. Refer to Note 2.
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Income (loss) before income taxes was reduced by $57 million for North America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 16.
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Income (loss) before income taxes was reduced by $66 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.
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Income (loss) before income taxes was increased by $39 million for Corporate related to the sale of a portion of our equity ownership interest in Andina. Refer to Note 2.
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Income (loss) before income taxes was reduced by $160 million for Corporate as result of CCBA asset adjustments. Refer to Note 2.
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• |
Income (loss) before income taxes was reduced by $49 million for Latin America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 16.
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During the six months ended June 29, 2018, the results of our operating segments and Corporate were impacted by the following items:
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Operating income (loss) and income (loss) 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 13.
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Operating income (loss) and income (loss) before income taxes were reduced by $450 million for Bottling Investments due to asset impairment charges. Refer to Note 16.
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• |
Operating income (loss) and income (loss) 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 12.
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $27 million for Corporate due to tax litigation expense.
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• |
Income (loss) 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.
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• |
Income (loss) before income taxes was reduced by $99 million for Bottling Investments and was 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.
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• |
Income (loss) 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 16.
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• |
Income (loss) before income taxes was reduced by $47 million for Bottling Investments and $39 million for Corporate due to pension settlements. Refer to Note 13.
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• |
Income (loss) 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.
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Income (loss) 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) 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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