Quarterly report pursuant to Section 13 or 15(d)

Comprehensive Income

v3.21.1
Comprehensive Income
3 Months Ended
Apr. 02, 2021
Comprehensive Income  
Comprehensive Income 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):
April 2,
2021
December 31, 2020
Net foreign currency translation adjustments $ (12,024) $ (12,028)
Accumulated net gains (losses) on derivatives (90) (194)
Unrealized net gains (losses) on available-for-sale debt securities (32) 28 
Adjustments to pension and other postretirement benefit liabilities (1,987) (2,407)
Accumulated other comprehensive income (loss) $ (14,133) $ (14,601)
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
Three Months Ended April 2, 2021
Shareowners of
The Coca-Cola Company
Noncontrolling
Interests
Total
Consolidated net income $ 2,245  $ 10  $ 2,255 
Other comprehensive income:      
Net foreign currency translation adjustments — 
Net gains (losses) on derivatives1
104  —  104 
Net change in unrealized gains (losses) on available-for-sale debt
   securities2
(60) —  (60)
Net change in pension and other postretirement benefit liabilities 420  —  420 
Total comprehensive income (loss) $ 2,713  $ 10  $ 2,723 
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):
Three Months Ended April 2, 2021 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ 624  $ (23) $ 601 
Gains (losses) on intra-entity transactions that are of a long-term investment nature (954) —  (954)
Gains (losses) on net investment hedges arising during the period1
475  (118) 357 
Net foreign currency translation adjustments $ 145  $ (141) $
Derivatives:
Gains (losses) arising during the period $ 174  $ (43) $ 131 
Reclassification adjustments recognized in net income (36) (27)
Net gains (losses) on derivatives1
$ 138  $ (34) $ 104 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (92) $ 30  $ (62)
Reclassification adjustments recognized in net income (1)
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (89) $ 29  $ (60)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ 453  $ (109) $ 344 
Reclassification adjustments recognized in net income 101  (25) 76 
Net change in pension and other postretirement benefit liabilities $ 554  $ (134) $ 420 
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company
$ 748  $ (280) $ 468 
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 March 27, 2020 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ (2,281) $ 212  $ (2,069)
Reclassification adjustments recognized in net income — 
Gains (losses) on intra-entity transactions that are of a long-term investment nature (157) —  (157)
Gains (losses) on net investment hedges arising during the period1
76  (19) 57 
Net foreign currency translation adjustments $ (2,359) $ 193  $ (2,166)
Derivatives:
Gains (losses) arising during the period $ 23  $ (8) $ 15 
Reclassification adjustments recognized in net income — 
Net gains (losses) on derivatives1
$ 24  $ (8) $ 16 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (8) $ $ (3)
Reclassification adjustments recognized in net income (6) (5)
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (14) $ $ (8)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ (25) $ (1) $ (26)
Reclassification adjustments recognized in net income 43  (11) 32 
Net change in pension and other postretirement benefit liabilities $ 18  $ (12) $
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company
$ (2,331) $ 179  $ (2,152)
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.
The following table presents the amounts and line items in our condensed consolidated statement 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 April 2, 2021
Derivatives:
Foreign currency contracts Net operating revenues $ 23 
Foreign currency contracts Cost of goods sold
Foreign currency contracts Other income (loss) — net (66)
Foreign currency and interest rate contracts Interest expense
Income before income taxes (36)
Income taxes
Consolidated net income $ (27)
Available-for-sale debt securities:
Sale of debt securities Other income (loss) — net $
Income before income taxes
Income taxes (1)
Consolidated net income $
Pension and other postretirement benefit liabilities:
Settlement charges1
Other income (loss) — net $ 54 
Recognized net actuarial loss Other income (loss) — net 48 
Recognized prior service cost (credit) Other income (loss) — net (1)
Income before income taxes 101 
Income taxes (25)
Consolidated net income $ 76 
1 The settlement charges were related to the strategic realignment initiatives. Refer to Note 12.