Quarterly report pursuant to Section 13 or 15(d)

Comprehensive Income (Tables)

v3.20.2
Comprehensive Income (Tables)
 6 Months Ended
Jun. 26, 2020
Comprehensive Income  
AOCI attributable to the shareowners of The Coca Cola Company
AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions):
June 26,
2020		 December 31, 2019
Foreign currency translation adjustments $ (14,204)   $ (11,270)  
Accumulated derivative net gains (losses) (219)   (209)  
Unrealized net gains (losses) on available-for-sale debt securities 56    75   
Adjustments to pension and other benefit liabilities (2,093)   (2,140)  
Accumulated other comprehensive income (loss) $ (16,460)   $ (13,544)  
Comprehensive Income (Loss), Apportioned between Shareowners of the Coca-Cola Company and Noncontrolling Interests [Text Block]
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
Six Months Ended June 26, 2020
Shareowners of
The Coca-Cola Company		 Noncontrolling
Interests		 Total
Consolidated net income $ 4,554    $ —    $ 4,554   
Other comprehensive income:      
Net foreign currency translation adjustments (2,934)   (401)   (3,335)  
Net gains (losses) on derivatives1
(10)   —    (10)  
Net change in unrealized gains (losses) on available-for-sale debt
   securities2
(19)   —    (19)  
Net change in pension and other benefit liabilities 47    —    47   
Total comprehensive income (loss) $ 1,638    $ (401)   $ 1,237   
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.
OCI attributable to the shareowners of The Coca-Cola Company
The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI (in millions):
Three Months Ended June 26, 2020 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ (894)   $ 14    $ (880)  
Reclassification adjustments recognized in net income —    —    —   
Gains (losses) on intra-entity transactions that are of a long-term investment nature 160    —    160   
Gains (losses) on net investment hedges arising during the period1
(64)   16    (48)  
Net foreign currency translation adjustments $ (798)   $ 30    $ (768)  
Derivatives:
Gains (losses) arising during the period $ (88)   $ 25    $ (63)  
Reclassification adjustments recognized in net income 49    (12)   37   
Net gains (losses) on derivatives1
$ (39)   $ 13    $ (26)  
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (14)   $ 5    $ (9)  
Reclassification adjustments recognized in net income (3)   1    (2)  
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (17)   $ 6    $ (11)  
Pension and other benefit liabilities:
Net pension and other benefit liabilities arising during the period $ 1    $ 7    $ 8   
Reclassification adjustments recognized in net income 43    (10)   33   
Net change in pension and other benefit liabilities $ 44    $ (3)   $ 41   
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company		 $ (810)   $ 46    $ (764)  
1Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
Six Months Ended June 26, 2020 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ (3,175)   $ 226    $ (2,949)  
Reclassification adjustments recognized in net income 3    —    3   
Gains (losses) on intra-entity transactions that are of a long-term investment nature 3    —    3   
Gains (losses) on net investment hedges arising during the period1
12    (3)   9   
Net foreign currency translation adjustments $ (3,157)   $ 223    $ (2,934)  
Derivatives:
Gains (losses) arising during the period $ (65)   $ 17    $ (48)  
Reclassification adjustments recognized in net income 50    (12)   38   
Net gains (losses) on derivatives1
$ (15)   $ 5    $ (10)  
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (22)   $ 10    $ (12)  
Reclassification adjustments recognized in net income (9)   2    (7)  
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (31)   $ 12    $ (19)  
Pension and other benefit liabilities:
Net pension and other benefit liabilities arising during the period $ (24)   $ 6    $ (18)  
Reclassification adjustments recognized in net income 86    (21)   65   
Net change in pension and other benefit liabilities $ 62    $ (15)   $ 47   
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company		 $ (3,141)   $ 225    $ (2,916)  
1Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
Three Months Ended June 28, 2019 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ (882)   $ 2    $ (880)  
Gains (losses) on intra-entity transactions that are of a long-term investment nature 323    —    323   
Gains (losses) on net investment hedges arising during the period1
(156)   29    (127)  
Net foreign currency translation adjustments $ (715)   $ 31    $ (684)  
Derivatives:
Gains (losses) arising during the period $ (81)   $ 19    $ (62)  
Reclassification adjustments recognized in net income 51    (13)   38   
Net gains (losses) on derivatives1
$ (30)   $ 6    $ (24)  
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ 35    $ (3)   $ 32   
Reclassification adjustments recognized in net income (22)   5    (17)  
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ 13    $ 2    $ 15   
Pension and other benefit liabilities:
Net pension and other benefit liabilities arising during the period $ 8    $ 1    $ 9   
Reclassification adjustments recognized in net income 37    (9)   28   
Net change in pension and other benefit liabilities $ 45    $ (8)   $ 37   
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company		 $ (687)   $ 31    $ (656)  
1Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
Six Months Ended June 28, 2019 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ 115    $ (71)   $ 44   
Reclassification adjustments recognized in net income 192    —    192   
Gains (losses) on intra-entity transactions that are of a long-term investment nature 36    —    36   
Gains (losses) on net investment hedges arising during the period1
(3)   1    (2)  
Net foreign currency translation adjustments $ 340    $ (70)   $ 270   
Derivatives:
Gains (losses) arising during the period $ (117)   $ 23    $ (94)  
Reclassification adjustments recognized in net income 104    (26)   78   
Net gains (losses) on derivatives1
$ (13)   $ (3)   $ (16)  
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ 59    $ (10)   $ 49   
Reclassification adjustments recognized in net income (24)   5    (19)  
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ 35    $ (5)   $ 30   
Pension and other benefit liabilities:
Net pension and other benefit liabilities arising during the period $ 7    $ 5    $ 12   
Reclassification adjustments recognized in net income 74    (18)   56   
Net change in pension and other benefit liabilities $ 81    $ (13)   $ 68   
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company		 $ 443    $ (91)   $ 352   
1Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
Income statement location of adjustments reclassified from AOCI into income
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):
Amount Reclassified from AOCI
into Income
Description of AOCI Component Financial Statement Line Item Three Months Ended June 26, 2020 Six Months Ended June 26, 2020
Foreign currency translation adjustments:
Divestitures, deconsolidations and other1
Other income (loss) — net $ —    $ 3   
Income before income taxes —    3   
Income taxes —    —   
Consolidated net income $ —    $ 3   
Derivatives:
Foreign currency contracts Net operating revenues $ (3)   $ 1   
Foreign currency contracts Cost of goods sold (4)   (5)  
Foreign currency contracts Other income (loss) — net 44    29   
Foreign currency and interest rate contracts Interest expense 12    25   
Income before income taxes 49    50   
Income taxes (12)   (12)  
Consolidated net income $ 37    $ 38   
Available-for-sale debt securities:
Sale of debt securities Other income (loss) — net $ (3)   $ (9)  
Income before income taxes (3)   (9)  
Income taxes 1    2   
Consolidated net income $ (2)   $ (7)  
Pension and other benefit liabilities:
Recognized net actuarial loss Other income (loss) — net $ 43    $ 87   
Recognized prior service cost (credit) Other income (loss) — net —    (1)  
Income before income taxes 43    86   
Income taxes (10)   (21)  
Consolidated net income $ 33    $ 65   
1Related to the sale of a portion of our ownership interest in one of our equity method investments. Refer to Note 2.