Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.22.1
OPERATING SEGMENTS
 3 Months Ended
Apr. 01, 2022
Segment Reporting [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 April 1, 2022                
Net operating revenues:                
Third party $ 1,661  $ 1,214  $ 3,589  $ 1,231  $ 729  $ 2,042  $ 25  $ —  $ 10,491 
Intersegment 172  —  1  180  —  2  —  (355) — 
Total net operating revenues 1,833  1,214  3,590  1,411  729  2,044  25  (355) 10,491 
Operating income (loss) 1,007  760  1,056  664  51  193  (326) —  3,405 
Income (loss) before income taxes 1,023  757  1,064  670  56  393  (505) —  3,458 
Identifiable operating assets 8,092 
2
 1,988  26,395  2,574 
3
 7,755  10,710 
2,3
 17,564  —  75,078 
Investments1
415  633  19  232  —  13,193  4,494  —  18,986 
As of and for the Three Months Ended April 2, 2021                
Net operating revenues:                
Third party $ 1,462  $ 909  $ 2,936  $ 1,232  $ 570  $ 1,894  $ 17  $ —  $ 9,020 
Intersegment 161  —  1  170  —  2  —  (334) — 
Total net operating revenues 1,623  909  2,937  1,402  570  1,896  17  (334) 9,020 
Operating income (loss) 820  552  792  686  26  141  (295) —  2,722 
Income (loss) before income taxes 830  555  816  695  27  317  (477) —  2,763 
Identifiable operating assets 8,335 
2
 1,650  19,792  2,332 
3
 7,843  10,426 
2,3
 19,843  —  70,221 
Investments1
466  595  343  249  4  13,833  4,282  —  19,772 
As of December 31, 2021                
Identifiable operating assets $ 7,908 
2
 $ 1,720  $ 25,730  $ 2,355 
3
 $ 7,949  $ 10,312 
2,3
 $ 19,964  $ —  $ 75,938 
Investments1
436  594  21  230  —  12,669  4,466  —  18,416 
1Principally equity method investments and other investments in bottling companies.
2Property, plant and equipment — net in South Africa represented 17 percent, 15 percent and 16 percent of consolidated property, plant and equipment — net as of April 1, 2022, April 2, 2021 and December 31, 2021, respectively.
3Property, plant and equipment — net in the Philippines represented 10 percent of consolidated property, plant and equipment — net as of April 1, 2022, April 2, 2021 and December 31, 2021.
During the three months ended April 1, 2022, the results of our operating segments and Corporate were impacted by the following items:
•Operating income (loss) and income (loss) before income taxes were increased by $19 million for North America and were reduced by $14 million for Corporate related to our acquisition of BodyArmor in 2021. Refer to Note 11.
•Operating income (loss) and income (loss) before income taxes were reduced by $22 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition in 2020. Refer to Note 15.
•Operating income (loss) and income (loss) before income taxes were reduced by $11 million and $12 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 $10 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 12.
•Income (loss) before income taxes was increased by $5 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 $104 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 $24 million for Corporate due to one of our equity method investees issuing additional shares of its stock. Refer to Note 15.
During the three months ended April 2, 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 $50 million for Europe, Middle East and Africa, $11 million for Latin America, $12 million for North America and $13 million for Asia Pacific, and operating income (loss) and income (loss) before income taxes were reduced by $7 million and $61 million, respectively, for Corporate due to the Company’s strategic realignment initiatives.
•Operating income (loss) and income (loss) before income taxes were reduced by $19 million 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 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 $9 million for Corporate related to tax litigation expense. Refer to Note 8.
•Operating income (loss) and income (loss) before income taxes were reduced by $4 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 15.
•Income (loss) before income taxes was increased by $133 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 $5 million for Bottling Investments and $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.
•Income (loss) before income taxes was reduced by $58 million for Corporate related to charges associated with the extinguishment of long-term debt.