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OTHER COMPREHENSIVE INCOME AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our condensed consolidated balance sheet 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 sheet 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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|
September 27,
2019 |
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|
December 31, 2018 |
|
Foreign currency translation adjustments1
|
$ |
(11,803 |
) |
|
$ |
(11,045 |
) |
Accumulated derivative net gains (losses)1, 2
|
(125 |
) |
|
(126 |
) |
Unrealized net gains (losses) on available-for-sale debt securities1
|
103 |
|
|
50 |
|
Adjustments to pension and other benefit liabilities1
|
(1,881 |
) |
|
(1,693 |
) |
Accumulated other comprehensive income (loss) |
$ |
(13,706 |
) |
|
$ |
(12,814 |
) |
1 The change in the balance from December 31, 2018 includes a portion of a $513 million reclassification to reinvested earnings from AOCI
upon the adoption of ASU 2018-02. Refer to Note 1.
2 The change in the balance from December 31, 2018 includes a $6 million reclassification to reinvested earnings from AOCI upon the
adoption of ASU 2017-12. Refer to Note 1 and Note 6.
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 27, 2019 |
|
Shareowners of
The Coca-Cola Company
|
|
Noncontrolling
Interests
|
|
Total |
|
Consolidated net income |
$ |
6,878 |
|
$ |
42 |
|
$ |
6,920 |
|
Other comprehensive income: |
|
|
|
Net foreign currency translation adjustments |
(549 |
) |
(130 |
) |
(679 |
) |
Net gains (losses) on derivatives1
|
30 |
|
— |
|
30 |
|
|
Net change in unrealized gains (losses) on available-for-sale debt
securities2
|
46 |
|
— |
|
46 |
|
Net change in pension and other benefit liabilities |
100 |
|
— |
|
100 |
|
Total comprehensive income |
$ |
6,505 |
|
$ |
(88 |
) |
$ |
6,417 |
|
1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
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 September 27, 2019 |
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the period |
$ |
(256 |
) |
|
$ |
(6 |
) |
|
$ |
(262 |
) |
Gains (losses) on intra-entity transactions that are of a long-term investment nature |
(924 |
) |
|
— |
|
|
(924 |
) |
Gains (losses) on net investment hedges arising during the period1
|
489 |
|
|
(122 |
) |
|
367 |
|
Net foreign currency translation adjustments |
$ |
(691 |
) |
|
$ |
(128 |
) |
|
$ |
(819 |
) |
Derivatives: |
|
|
|
|
|
Gains (losses) arising during the period |
$ |
(2 |
) |
|
$ |
1 |
|
|
$ |
(1 |
) |
Reclassification adjustments recognized in net income |
62 |
|
|
(15 |
) |
|
47 |
|
Net gains (losses) on derivatives1
|
$ |
60 |
|
|
$ |
(14 |
) |
|
$ |
46 |
|
Available-for-sale debt securities: |
|
|
|
|
|
Unrealized gains (losses) arising during the period |
$ |
29 |
|
|
$ |
(7 |
) |
|
$ |
22 |
|
Reclassification adjustments recognized in net income |
(8 |
) |
|
2 |
|
|
(6 |
) |
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$ |
21 |
|
|
$ |
(5 |
) |
|
$ |
16 |
|
Pension and other benefit liabilities: |
|
|
|
|
|
Net pension and other benefit liabilities arising during the period |
$ |
4 |
|
|
$ |
— |
|
|
$ |
4 |
|
Reclassification adjustments recognized in net income |
37 |
|
|
(9 |
) |
|
28 |
|
Net change in pension and other benefit liabilities |
$ |
41 |
|
|
$ |
(9 |
) |
|
$ |
32 |
|
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company
|
$ |
(569 |
) |
|
$ |
(156 |
) |
|
$ |
(725 |
) |
|
|
1 |
Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
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2 |
Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
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|
Nine Months Ended September 27, 2019 |
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the period |
$ |
(141 |
) |
|
$ |
(77 |
) |
|
$ |
(218 |
) |
Reclassification adjustments recognized in net income |
192 |
|
|
— |
|
|
192 |
|
Gains (losses) on intra-entity transactions that are of a long-term investment nature |
(888 |
) |
|
— |
|
|
(888 |
) |
Gains (losses) on net investment hedges arising during the period1
|
486 |
|
|
(121 |
) |
|
365 |
|
Net foreign currency translation adjustments |
$ |
(351 |
) |
|
$ |
(198 |
) |
|
$ |
(549 |
) |
Derivatives: |
|
|
|
|
|
Gains (losses) arising during the period |
$ |
(119 |
) |
|
$ |
24 |
|
|
$ |
(95 |
) |
Reclassification adjustments recognized in net income |
166 |
|
|
(41 |
) |
|
125 |
|
Net gains (losses) on derivatives1
|
$ |
47 |
|
|
$ |
(17 |
) |
|
$ |
30 |
|
Available-for-sale debt securities: |
|
|
|
|
|
Unrealized gains (losses) arising during the period |
$ |
88 |
|
|
$ |
(17 |
) |
|
$ |
71 |
|
Reclassification adjustments recognized in net income |
(32 |
) |
|
7 |
|
|
(25 |
) |
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$ |
56 |
|
|
$ |
(10 |
) |
|
$ |
46 |
|
Pension and other benefit liabilities: |
|
|
|
|
|
Net pension and other benefit liabilities arising during the period |
$ |
11 |
|
|
$ |
5 |
|
|
$ |
16 |
|
Reclassification adjustments recognized in net income |
111 |
|
|
(27 |
) |
|
84 |
|
Net change in pension and other benefit liabilities |
$ |
122 |
|
|
$ |
(22 |
) |
|
$ |
100 |
|
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company
|
$ |
(126 |
) |
|
$ |
(247 |
) |
|
$ |
(373 |
) |
|
|
1 |
Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
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2 |
Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
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|
Three Months Ended September 28, 2018 |
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the period |
$ |
(446 |
) |
|
$ |
19 |
|
|
$ |
(427 |
) |
Reclassification adjustments recognized in net income |
170 |
|
|
— |
|
|
170 |
|
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
(119 |
) |
|
— |
|
|
(119 |
) |
Gains (losses) on net investment hedges arising during the period1
|
59 |
|
|
(15 |
) |
|
44 |
|
Net foreign currency translation adjustments |
$ |
(336 |
) |
|
$ |
4 |
|
|
$ |
(332 |
) |
Derivatives: |
|
|
|
|
|
Gains (losses) arising during the period |
$ |
19 |
|
|
$ |
(7 |
) |
|
$ |
12 |
|
Reclassification adjustments recognized in net income |
(58 |
) |
|
16 |
|
|
(42 |
) |
Net gains (losses) on derivatives1
|
$ |
(39 |
) |
|
$ |
9 |
|
|
$ |
(30 |
) |
Available-for-sale debt securities: |
|
|
|
|
|
Unrealized gains (losses) arising during the period |
$ |
(13 |
) |
|
$ |
24 |
|
|
$ |
11 |
|
Reclassification adjustments recognized in net income |
(3 |
) |
|
2 |
|
|
(1 |
) |
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$ |
(16 |
) |
|
$ |
26 |
|
|
$ |
10 |
|
Pension and other benefit liabilities: |
|
|
|
|
|
Net pension and other benefit liabilities arising during the period |
$ |
7 |
|
|
$ |
— |
|
|
$ |
7 |
|
Reclassification adjustments recognized in net income |
65 |
|
|
(16 |
) |
|
49 |
|
Net change in pension and other benefit liabilities |
$ |
72 |
|
|
$ |
(16 |
) |
|
$ |
56 |
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company |
$ |
(319 |
) |
|
$ |
23 |
|
|
$ |
(296 |
) |
|
|
1 |
Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
|
|
|
2 |
Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
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|
|
|
|
|
Nine Months Ended September 28, 2018 |
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the period |
$ |
(1,431 |
) |
|
$ |
(66 |
) |
|
$ |
(1,497 |
) |
Reclassification adjustments recognized in net income |
268 |
|
|
— |
|
|
268 |
|
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
(695 |
) |
|
— |
|
|
(695 |
) |
Gains (losses) on net investment hedges arising during the period1
|
353 |
|
|
(88 |
) |
|
265 |
|
Net foreign currency translation adjustments |
$ |
(1,505 |
) |
|
$ |
(154 |
) |
|
$ |
(1,659 |
) |
Derivatives: |
|
|
|
|
|
Gains (losses) arising during the period |
$ |
84 |
|
|
$ |
(21 |
) |
|
$ |
63 |
|
Reclassification adjustments recognized in net income |
(56 |
) |
|
15 |
|
|
(41 |
) |
Net gains (losses) on derivatives1
|
$ |
28 |
|
|
$ |
(6 |
) |
|
$ |
22 |
|
Available-for-sale debt securities: |
|
|
|
|
|
Unrealized gains (losses) arising during the period |
$ |
(139 |
) |
|
$ |
45 |
|
|
$ |
(94 |
) |
Reclassification adjustments recognized in net income |
2 |
|
|
1 |
|
|
3 |
|
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$ |
(137 |
) |
|
$ |
46 |
|
|
$ |
(91 |
) |
Pension and other benefit liabilities: |
|
|
|
|
|
Net pension and other benefit liabilities arising during the period |
$ |
278 |
|
|
$ |
(62 |
) |
|
$ |
216 |
|
Reclassification adjustments recognized in net income |
209 |
|
|
(53 |
) |
|
156 |
|
Net change in pension and other benefit liabilities |
$ |
487 |
|
|
$ |
(115 |
) |
|
$ |
372 |
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company |
$ |
(1,127 |
) |
|
$ |
(229 |
) |
|
$ |
(1,356 |
) |
|
|
1 |
Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
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|
2 |
Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
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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 27, 2019 |
|
|
Nine Months Ended September 27, 2019 |
|
|
Foreign currency translation adjustments: |
|
|
|
|
|
Divestitures, deconsolidations and other1
|
Other income (loss) — net |
$ |
— |
|
|
$ |
192 |
|
|
|
Income before income taxes |
— |
|
|
192 |
|
|
|
Income taxes |
— |
|
|
— |
|
|
|
Consolidated net income |
$ |
— |
|
|
$ |
192 |
|
|
Derivatives: |
|
|
|
|
|
Foreign currency contracts |
Net operating revenues |
$ |
5 |
|
|
$ |
(2 |
) |
|
Foreign currency contracts |
Cost of goods sold |
(2 |
) |
|
(9 |
) |
|
Foreign currency contracts |
Other income (loss) — net |
46 |
|
|
139 |
|
|
Divestitures, deconsolidations and other |
Other income (loss) — net |
— |
|
|
1 |
|
|
Foreign currency and interest rate contracts |
Interest expense |
13 |
|
|
37 |
|
|
|
Income before income taxes |
62 |
|
|
166 |
|
|
|
Income taxes |
(15 |
) |
|
(41 |
) |
|
|
Consolidated net income |
$ |
47 |
|
|
$ |
125 |
|
|
Available-for-sale debt securities: |
|
|
|
|
|
Sale of debt securities |
Other income (loss) — net |
$ |
(8 |
) |
|
$ |
(32 |
) |
|
|
Income before income taxes |
(8 |
) |
|
(32 |
) |
|
|
Income taxes |
2 |
|
|
7 |
|
|
|
Consolidated net income |
$ |
(6 |
) |
|
$ |
(25 |
) |
|
Pension and other benefit liabilities: |
|
|
|
|
|
Recognized net actuarial loss |
Other income (loss) — net |
$ |
39 |
|
|
$ |
116 |
|
|
Recognized prior service cost (credit) |
Other income (loss) — net |
(2 |
) |
|
(5 |
) |
|
|
Income before income taxes |
37 |
|
|
111 |
|
|
|
Income taxes |
(9 |
) |
|
(27 |
) |
|
|
Consolidated net income |
$ |
28 |
|
|
$ |
84 |
|
|
1
Primarily related to our previously held equity ownership interest in CHI and the sale of a portion of our equity ownership interest in Andina. Refer to Note 2.
|