Annual report pursuant to Section 13 and 15(d)

EQUITY METHOD INVESTMENTS

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EQUITY METHOD INVESTMENTS
 12 Months Ended
Dec. 31, 2020
EQUITY METHOD INVESTMENTS [Abstract]  
EQUITY METHOD INVESTMENTS EQUITY METHOD INVESTMENTS
Our consolidated net income includes our Company's proportionate share of the net income or loss of our equity method investees. When we record our proportionate share of net income, it increases equity income (loss) — net in our consolidated statement of income and our carrying value of that investment. Conversely, when we record our proportionate share of a net loss, it decreases equity income (loss) — net in our consolidated statement of income and our carrying value of that investment. The Company's proportionate share of the net income or loss of our equity method investees includes significant operating and nonoperating items recorded by our equity method investees. These items can have a significant impact on the amount of equity income (loss) — net in our consolidated statement of income and our carrying value of those investments. Refer to Note 17 for additional information related to significant operating and nonoperating items recorded by our equity method investees. The carrying values of our equity method investments are also impacted by our proportionate share of items impacting the equity method investees' AOCI.
We eliminate from our financial results all significant intercompany transactions to the extent of our ownership interest, including the intercompany portion of transactions with equity method investees.
The Company's equity method investments include, but are not limited to, our ownership interests in Coca-Cola European Partners plc ("CCEP"), Monster, AC Bebidas, Coca-Cola FEMSA, Coca-Cola HBC AG ("Coca-Cola Hellenic") and Coca-Cola Bottlers Japan Holdings Inc. ("CCBJHI"). As of December 31, 2020, we owned approximately 19 percent, 19 percent, 20 percent, 28 percent, 23 percent and 19 percent, respectively, of these companies' outstanding shares. As of December 31, 2020, our investments in our equity method investees in the aggregate exceeded our proportionate share of the net assets of these equity method investees by $8,762 million. This difference is not amortized.
A summary of financial information for our equity method investees in the aggregate is as follows (in millions):
Year Ended December 31,1
2020 2019 2018
Net operating revenues $ 69,384  $ 75,980  $ 75,482 
Cost of goods sold 41,139  44,881  44,933 
Gross profit $ 28,245  $ 31,099  $ 30,549 
Operating income $ 7,056  $ 7,748  $ 7,511 
Consolidated net income $ 4,176  $ 4,597  $ 4,646 
Less: Net income attributable to noncontrolling interests 54  63  101 
Net income attributable to common shareowners $ 4,122  $ 4,534  $ 4,545 
Company equity income (loss) — net $ 978  $ 1,049  $ 1,008 
1 The financial information represents the results of the equity method investees during the Company's period of ownership.
December 31, 2020 2019
Current assets $ 29,431  $ 25,654 
Noncurrent assets 67,900  68,269 
Total assets $ 97,331  $ 93,923 
Current liabilities $ 20,033  $ 20,271 
Noncurrent liabilities 33,613  31,321 
Total liabilities $ 53,646  $ 51,592 
Equity attributable to shareowners of investees $ 42,622  $ 41,203 
Equity attributable to noncontrolling interests 1,063  1,128 
Total equity $ 43,685  $ 42,331 
Company equity method investments $ 19,273  $ 19,025 
Net sales to equity method investees, the majority of which are located outside the United States, were $13,041 million, $14,832 million and $14,799 million in 2020, 2019 and 2018, respectively. Total payments, primarily related to marketing, made to equity method investees were $547 million, $897 million and $1,131 million in 2020, 2019 and 2018, respectively. The decrease in net sales to, and payments made to, equity method investees in 2020 was primarily due to the impact of the COVID-19 pandemic. The decrease in payments made to equity method investees in 2019 was primarily due to changes in bottler funding arrangements. In addition, purchases of beverage products from equity method investees were $452 million, $426 million and $536 million in 2020, 2019 and 2018, respectively. The decrease in purchases of beverage products in 2019 was primarily due to reduced purchases of Monster products as a result of the North America refranchising activities. Refer to Note 2.
The following table presents the difference between calculated fair value, based on quoted closing prices of publicly traded shares, and our Company's carrying value in investments in publicly traded companies accounted for under the equity method (in millions):
December 31, 2020 Fair Value Carrying Value Difference
Monster Beverage Corporation $ 9,444  $ 4,020  $ 5,424 
Coca-Cola European Partners plc 4,383  3,959  424 
Coca-Cola FEMSA, S.A.B. de C.V. 2,657  1,632  1,025 
Coca-Cola HBC AG 2,657  1,282  1,375 
Coca-Cola Amatil Limited 2,222  707  1,515 
Coca-Cola Consolidated, Inc. 661  169  492 
Coca-Cola Bottlers Japan Holdings Inc. 522  522  — 
Coca-Cola İçecek A.Ş. 440  197  243 
Embotelladora Andina S.A. 143  116  27 
Total $ 23,129  $ 12,604  $ 10,525 
Net Receivables and Dividends from Equity Method Investees
Total net receivables due from equity method investees were $1,025 million and $1,707 million as of December 31, 2020 and 2019, respectively. The total amount of dividends received from equity method investees was $467 million, $628 million and $551 million for the years ended December 31, 2020, 2019 and 2018, respectively. The amount of consolidated reinvested earnings that represents undistributed earnings of investments accounted for under the equity method as of December 31, 2020 was $5,498 million.