Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.21.2
Operating Segments
 9 Months Ended
Oct. 01, 2021
Operating Segments [Abstract]  
Operating Segments OPERATING SEGMENTS
Information about our Company’s operations by operating segment and Corporate is as follows (in millions):
Europe, Middle East & Africa Latin
America 		North
America		 Asia Pacific Global Ventures Bottling
Investments		 Corporate Eliminations Consolidated
As of and for the Three Months Ended October 1, 2021                
Net operating revenues:                
Third party $ 1,758  $ 1,137  $ 3,478  $ 1,229  $ 753  $ 1,663  $ 24  $ —  $ 10,042 
Intersegment 157  —  1  145  —  2  1  (306) — 
Total net operating revenues 1,915  1,137  3,479  1,374  753  1,665  25  (306) 10,042 
Operating income (loss) 1,028  712  868  594  114  81  (499) —  2,898 
Income (loss) before income taxes 1,050  716  630  604  116  462  (494) —  3,084 
Identifiable operating assets 8,213 
2
 1,839  19,118  2,254 
3
 7,784  10,213 
2,3
 22,004  —  71,425 
Investments1
482  606  331  238  2  13,137  4,385  —  19,181 
As of and for the Three Months Ended September 25, 2020                
Net operating revenues:                
Third party $ 1,556  $ 809  $ 3,087  $ 1,207  $ 513  $ 1,474  $ 6  $ —  $ 8,652 
Intersegment 137  —  1  127  —  1  —  (266) — 
Total net operating revenues 1,693  809  3,088  1,334  513  1,475  6  (266) 8,652 
Operating income (loss) 903  483  727  564  (31) 55  (403) —  2,298 
Income (loss) before income taxes 925  476  738  575  (29) 398  (902) —  2,181 
Identifiable operating assets 8,283 
2
 1,647  19,983  2,143 
3
 7,453  9,851 
2,3
 28,237  —  77,597 
Investments1
544  577  356  236  6  13,765  4,103  —  19,587 
As of December 31, 2020                
Identifiable operating assets $ 8,098 
2
 $ 1,597  $ 19,444  $ 2,073 
3
 $ 7,575  $ 10,521 
2,3
 $ 17,903  $ —  $ 67,211 
Investments1
517  603  345  240  4  14,183  4,193  —  20,085 
1 Principally equity method investments and other investments in bottling companies.
2 Property, plant and equipment — net in South Africa represented 16 percent, 14 percent and 15 percent of consolidated property, plant and equipment — net as of October 1, 2021, September 25, 2020 and December 31, 2020, respectively.
3 Property, plant and equipment — net in the Philippines represented 10 percent of consolidated property, plant and equipment — net as of October 1, 2021, September 25, 2020 and December 31, 2020.
During the three months ended October 1, 2021, the results of our operating segments and Corporate were impacted by the following items:
•Operating income (loss) and income (loss) before income taxes were reduced by $31 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 12.
•Operating income (loss) and income (loss) before income taxes were reduced by $12 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 2.
•Operating income (loss) and income (loss) before income taxes were reduced by $7 million and $273 million, respectively, for North America related to the restructuring of our manufacturing operations in the United States. Refer to Note 15.
•Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Europe, Middle East and Africa and $1 million for North America, and operating income (loss) and income (loss) before income taxes were reduced by $1 million and $22 million, respectively, for Corporate due to the Company’s strategic realignment initiatives. Refer to Note 12.
•Income (loss) before income taxes was increased by $63 million for Corporate related to the sale of a portion of our ownership interest in one of our equity method investments. Refer to Note 2.
•Income (loss) before income taxes was increased by $18 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.
During the three months ended September 25, 2020, the results of our operating segments and Corporate were impacted by the following items:
•Operating income (loss) and income (loss) before income taxes were reduced by $41 million for Europe, Middle East and Africa, $22 million for Latin America, $121 million for North America and $32 million for Asia Pacific, and operating income (loss) and income (loss) before income taxes were reduced by $116 million and $127 million, respectively, for Corporate due to the Company’s strategic realignment initiatives. Refer to Note 12.
•Operating income (loss) and income (loss) before income taxes were reduced by $23 million and $25 million, respectively, for North America related to the restructuring of our manufacturing operations in the United States.
•Operating income (loss) and income (loss) before income taxes were reduced by $18 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 2.
•Operating income (loss) and income (loss) before income taxes were reduced by $13 million for Corporate due to the Company’s productivity and reinvestment program. Operating income (loss) and income (loss) before income taxes were increased by $3 million for Europe, Middle East and Africa due to the refinement of previously established accruals related to the Company’s productivity and reinvestment program. Refer to Note 12.
•Income (loss) before income taxes was increased by $13 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4.
•Income (loss) before income taxes was reduced by $405 million for Corporate related to charges associated with the extinguishment of long-term debt.
•Income (loss) before income taxes was reduced by $27 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.

Europe, Middle East & Africa Latin
America 		North
America		 Asia Pacific Global Ventures Bottling
Investments		 Corporate Eliminations Consolidated
Nine Months Ended October 1, 2021                
Net operating revenues:                
Third party $ 5,094  $ 3,113  $ 9,793  $ 3,811  $ 2,030  $ 5,292  $ 58  $ —  $ 29,191 
Intersegment 461  —  4  468  —  7  1  (941) — 
Total net operating revenues 5,555  3,113  9,797  4,279  2,030  5,299  59  (941) 29,191 
Operating income (loss) 2,990  1,942  2,610  2,046  215  314  (1,481) —  8,636 
Income (loss) before income taxes 3,049  1,952  2,405  2,078  221  1,201  (1,441) —  9,465 
Nine Months Ended September 25, 2020                
Net operating revenues:                
Third party $ 4,264  $ 2,494  $ 8,583  $ 3,264  $ 1,381  $ 4,392  $ 25  $ —  $ 24,403 
Intersegment 364  —  3  381  —  4  —  (752) — 
Total net operating revenues 4,628  2,494  8,586  3,645  1,381  4,396  25  (752) 24,403 
Operating income (loss) 2,578  1,526  1,603  1,727  (114) 130  (791) —  6,659 
Income (loss) before income taxes 2,632  1,455  1,623  1,749  (114) 762  (719) —  7,388 
During the nine months ended October 1, 2021, the results of our operating segments and Corporate were impacted by the following items:
•Operating income (loss) and income (loss) before income taxes were reduced by $263 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 2.
•Operating income (loss) and income (loss) before income taxes were reduced by $71 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 12.
•Operating income (loss) and income (loss) before income taxes were reduced by $63 million for Europe, Middle East and Africa, $11 million for Latin America, $14 million for North America and $13 million for Asia Pacific, and operating income (loss) and income (loss) before income taxes were reduced by $25 million and $129 million, respectively, for Corporate due to the Company’s strategic realignment initiatives. Refer to Note 12.
•Operating income (loss) and income (loss) before income taxes were reduced by $42 million and $308 million, respectively, for North America related to the restructuring of our manufacturing operations in the United States. Refer to Note 15.
•Operating income (loss) and income (loss) before income taxes were reduced by $14 million for Corporate related to tax litigation expense. Refer to Note 8.
•Income (loss) before income taxes was increased by $695 million for Corporate related to the sale of our ownership interest in CCA, an equity method investee. Refer to Note 2.
•Income (loss) before income taxes was increased by $341 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4.
•Income (loss) before income taxes was increased by $63 million for Corporate related to the sale of a portion of our ownership interest in one of our equity method investments. Refer to Note 2.
•Income (loss) before income taxes was reduced by $650 million for Corporate related to charges associated with the extinguishment of long-term debt. Refer to Note 7.
•Income (loss) before income taxes was reduced by $37 million for Bottling Investments and was increased by $32 million for Corporate due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
During the nine months ended September 25, 2020, the results of our operating segments and Corporate were impacted by the following items:
•Operating income (loss) and income (loss) before income taxes were reduced by $160 million for North America related to the impairment of our Odwalla trademark and $37 million related to the cost of discontinuing the Odwalla juice business.
•Operating income (loss) and income (loss) before income taxes were reduced by $41 million for Europe, Middle East and Africa, $22 million for Latin America, $121 million for North America and $32 million for Asia Pacific, and operating income (loss) and income (loss) before income taxes were reduced by $116 million and $127 million, respectively, for Corporate due to the Company’s strategic realignment initiatives. Refer to Note 12.
•Operating income (loss) and income (loss) before income taxes were reduced by $74 million for Corporate due to the Company’s productivity and reinvestment program. Operating income (loss) and income (loss) before income taxes were increased by $3 million for Europe, Middle East and Africa due to the refinement of previously established accruals related to the Company’s productivity and reinvestment program. Refer to Note 12.
•Operating income (loss) and income (loss) before income taxes were reduced by $55 million for North America related to the impairment of a trademark, which was driven by the impact of the COVID-19 pandemic, revised projections of future operating results and a change in brand focus in the Company’s portfolio.
•Operating income (loss) and income (loss) before income taxes were reduced by $48 million and $69 million, respectively, for North America related to the restructuring of our manufacturing operations in the United States.
•Operating income (loss) and income (loss) before income taxes were reduced by $47 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 2.
•Income (loss) before income taxes was increased by $902 million for Corporate in conjunction with the fairlife acquisition, which resulted from the remeasurement of our previously held equity interest in fairlife to fair value. Refer to Note 2.
•Income (loss) before income taxes was increased by $18 million for Corporate related to the sale of a portion of our ownership interest in one of our equity method investments.
•Income (loss) before income taxes was reduced by $405 million for Corporate related to charges associated with the extinguishment of long-term debt.
•Income (loss) before income taxes was reduced by $127 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4.
•Income (loss) before income taxes was reduced by $28 million for Latin America, $1 million for North America and $99 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.
•Income (loss) before income taxes was reduced by $38 million for Latin America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 15.
•Income (loss) before income taxes was reduced by $26 million for Corporate due to an impairment charge associated with an investment in an equity security without a readily determinable fair value. Refer to Note 15.