| 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, in the second quarter of 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 September 27, 2019 |
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Net operating revenues: |
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Third party |
$ |
1,672 |
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$ |
1,045 |
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$ |
3,137 |
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$ |
1,319 |
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$ |
629 |
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$ |
1,681 |
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$ |
24 |
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$ |
— |
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$ |
9,507 |
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Intersegment |
156 |
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— |
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1 |
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143 |
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— |
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3 |
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— |
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(303 |
) |
— |
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Total net operating revenues |
1,828 |
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1,045 |
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3,138 |
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1,462 |
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629 |
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1,684 |
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24 |
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(303 |
) |
9,507 |
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Operating income (loss) |
886 |
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603 |
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641 |
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594 |
|
77 |
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7 |
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(309 |
) |
— |
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2,499 |
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Income (loss) before income taxes |
651 |
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605 |
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658 |
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603 |
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80 |
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55 |
|
440 |
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— |
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3,092 |
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Identifiable operating assets |
8,363 |
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1,895 |
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17,895 |
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2,118 |
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6,935 |
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10,456 |
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20,204 |
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— |
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67,866 |
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Noncurrent investments |
483 |
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719 |
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365 |
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223 |
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14 |
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13,892 |
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3,871 |
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— |
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19,567 |
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As of and for the Three Months Ended September 28, 2018 |
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Net operating revenues: |
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Third party |
$ |
1,702 |
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$ |
1,001 |
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$ |
2,972 |
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$ |
1,348 |
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$ |
183 |
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$ |
1,552 |
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$ |
17 |
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$ |
— |
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$ |
8,775 |
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Intersegment |
124 |
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1 |
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119 |
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72 |
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— |
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13 |
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— |
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(329 |
) |
— |
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Total net operating revenues |
1,826 |
|
1,002 |
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3,091 |
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1,420 |
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183 |
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1,565 |
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17 |
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(329 |
) |
8,775 |
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Operating income (loss) |
933 |
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640 |
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663 |
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614 |
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44 |
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24 |
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(304 |
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— |
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2,614 |
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Income (loss) before income taxes |
943 |
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636 |
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662 |
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628 |
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47 |
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(152 |
) |
(391 |
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— |
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2,373 |
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Identifiable operating assets |
7,884 |
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1,685 |
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17,693 |
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2,254 |
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969 |
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8,647 |
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25,790 |
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— |
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64,922 |
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Noncurrent investments |
1,158 |
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760 |
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404 |
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220 |
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— |
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15,703 |
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3,710 |
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— |
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21,955 |
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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 September 27, 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 $12 million for North America, $1 million for Europe, Middle East and Africa and $48 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 $42 million for Asia Pacific due to an impairment charge related to a trademark. Refer to Note 16.
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Operating income (loss) and income (loss) before income taxes were reduced by $21 million for Bottling Investments due to costs incurred to refranchise certain of our North America bottling operations.
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Income (loss) before income taxes was reduced by $255 million for Europe, Middle East and Africa due to other-than-temporary impairment charges related to certain of our equity method investees in the Middle East. Refer to Note 16.
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Income (loss) before income taxes was reduced by $120 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 $103 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 12.
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Income (loss) before income taxes was reduced by $39 million for Bottling Investments 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 $739 million for Corporate as a result of the sale of a retail and office building in New York City.
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During the three months ended September 28, 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 $39 million for North America, $10 million for Bottling Investments, and $65 million for Corporate due to the Company's productivity and reinvestment program. Operating income (loss) and income (loss) before income taxes were increased by $4 million for Europe, Middle East and Africa, $1 million for Latin America, and $2 million for Asia Pacific due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. In addition, income (loss) before income taxes was reduced by $35 million for Corporate due to pension settlements related to the Company's productivity and reinvestment program. Refer to Note 13 and Note 14.
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Operating income (loss) and income (loss) before income taxes were reduced by $38 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) before income taxes were reduced by $4 million for Corporate due to tax litigation expense.
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Income (loss) before income taxes was reduced by $554 million for Corporate as a result of an impairment charge related to assets held by CCBA. Refer to Note 16.
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Income (loss) before income taxes was reduced by $275 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 $205 million for Bottling Investments due to an other-than-temporary impairment charge related to our equity method investee in Indonesia. Refer to Note 16.
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Income (loss) before income taxes was reduced by $12 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 $370 million for Corporate related to the sale of our equity ownership in Lindley. Refer to Note 2.
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Income (loss) before income taxes was increased by $27 million for Corporate related to a net gain on the extinguishment of long-term debt.
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Income (loss) before income taxes was increased by $21 million for Bottling Investments and reduced by $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 $11 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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Nine Months Ended September 27, 2019 |
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Net operating revenues: |
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Third party |
$ |
5,110 |
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$ |
2,944 |
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$ |
8,976 |
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$ |
3,729 |
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$ |
1,847 |
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$ |
5,513 |
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$ |
79 |
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$ |
— |
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$ |
28,198 |
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Intersegment |
420 |
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— |
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7 |
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460 |
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2 |
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7 |
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— |
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(896 |
) |
— |
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Total net operating revenues |
5,530 |
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2,944 |
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8,983 |
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4,189 |
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1,849 |
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5,520 |
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79 |
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(896 |
) |
28,198 |
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Operating income (loss) |
2,902 |
|
1,687 |
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1,938 |
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1,867 |
|
216 |
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226 |
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(914 |
) |
— |
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7,922 |
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Income (loss) before income taxes |
2,701 |
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1,636 |
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1,924 |
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1,891 |
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223 |
|
348 |
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(357 |
) |
— |
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8,366 |
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Nine Months Ended September 28, 2018 |
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Net operating revenues: |
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Third party |
$ |
5,123 |
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$ |
2,990 |
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$ |
8,580 |
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$ |
3,853 |
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$ |
586 |
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$ |
5,277 |
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$ |
85 |
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$ |
— |
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$ |
26,494 |
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Intersegment |
397 |
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39 |
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243 |
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296 |
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2 |
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17 |
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— |
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(994 |
) |
— |
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Total net operating revenues |
5,520 |
|
3,029 |
|
8,823 |
|
4,149 |
|
588 |
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5,294 |
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85 |
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(994 |
) |
26,494 |
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Operating income (loss) |
2,940 |
|
1,804 |
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1,814 |
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1,879 |
|
110 |
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(318 |
) |
(902 |
) |
— |
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7,327 |
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Income (loss) before income taxes |
2,984 |
|
1,742 |
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1,822 |
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1,909 |
|
119 |
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(274 |
) |
(1,042 |
) |
— |
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7,260 |
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During the nine months ended September 27, 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 $2 million for Europe, Middle East and Africa, $42 million for North America, $3 million for Bottling Investments and $137 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 $61 million for Bottling Investments due to costs incurred to refranchise certain of our North America bottling operations. Refer to Note 2.
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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 $42 million for Asia Pacific due to an impairment charge related to a trademark. Refer to Note 16.
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• |
Income (loss) before income taxes was reduced by $406 million for Bottling Investments due to other-than-temporary impairment charges related to CCBJHI, an equity method investee. Refer to Note 16.
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• |
Income (loss) before income taxes was reduced by $255 million for Europe, Middle East and Africa due to other-than-temporary impairment charges related to certain of our equity method investees in the Middle East. Refer to Note 16.
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Income (loss) before income taxes was reduced by $160 million for Corporate as a result of CCBA asset adjustments. Refer to Note 2.
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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 $105 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 $107 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 $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 $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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• |
Income (loss) before income taxes was increased by $739 million for Corporate as a result of the sale of a retail and office building in New York City.
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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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During the nine months ended September 28, 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 Latin America, $138 million for North America, $32 million for Bottling Investments and $144 million for Corporate due to the Company's productivity and reinvestment program. Operating income (loss) and income (loss) before income taxes were increased by $2 million for Europe, Middle East and Africa and $1 million for Asia Pacific due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. In addition, income (loss) before income taxes was reduced by $74 million for Corporate due to pension settlements related to the Company's productivity and reinvestment program. Refer to Note 13 and Note 14.
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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 $117 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 $31 million for Corporate due to tax litigation expense.
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• |
Income (loss) before income taxes was reduced by $554 million for Corporate as a result of an impairment charge related to assets held by CCBA. Refer to Note 16.
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• |
Income (loss) before income taxes was reduced by $379 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 $205 million for Bottling Investments due to an other-than-temporary impairment charge related to our equity method investee in Indonesia. Refer to Note 16.
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• |
Income (loss) before income taxes was reduced by $78 million for Bottling Investments and was increased by $13 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 due to pension settlements related to the refranchising of North America bottling operations. Refer to Note 14.
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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 $33 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 $370 million for Corporate related to the sale of our equity ownership in Lindley. Refer to Note 2.
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• |
Income (loss) before income taxes was increased by $47 million for Corporate related to the refranchising of our Latin American bottling operations. Refer to Note 2.
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Income (loss) before income taxes was increased by $27 million for Corporate related to a net gain on the extinguishment of long-term debt.
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