Quarterly report pursuant to Section 13 or 15(d)

OTHER COMPREHENSIVE INCOME (Tables)

v3.22.2
OTHER COMPREHENSIVE INCOME (Tables)
 6 Months Ended
Jul. 01, 2022
Equity [Abstract]  
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):
July 1,
2022		 December 31,
2021
Net foreign currency translation adjustments $ (13,443) $ (12,595)
Accumulated net gains (losses) on derivatives 177  20 
Unrealized net gains (losses) on available-for-sale debt securities (92) (62)
Adjustments to pension and other postretirement benefit liabilities (1,443) (1,693)
Accumulated other comprehensive income (loss) $ (14,801) $ (14,330)
Comprehensive Income (Loss), Apportioned between Shareowners of the Coca-Cola Company and Noncontrolling Interests
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 July 1, 2022
Shareowners of
The Coca-Cola Company		 Noncontrolling
Interests		 Total
Consolidated net income $ 4,686  $ 7  $ 4,693 
Other comprehensive income:
Net foreign currency translation adjustments (848) (53) (901)
Net gains (losses) on derivatives1
157  —  157 
Net change in unrealized gains (losses) on available-for-sale debt securities2
(30) —  (30)
Net change in pension and other postretirement benefit liabilities 250  —  250 
Total comprehensive income (loss) $ 4,215  $ (46) $ 4,169 
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.
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 July 1, 2022 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ (950) $ 27  $ (923)
Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,333) —  (1,333)
Gains (losses) on net investment hedges arising during the period1
709  (177) 532 
Net foreign currency translation adjustments $ (1,574) $ (150) $ (1,724)
Derivatives:
Gains (losses) arising during the period $ 97  $ (31) $ 66 
Reclassification adjustments recognized in net income 36  (9) 27 
Net gains (losses) on derivatives1
$ 133  $ (40) $ 93 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ 2  $ 2  $ 4 
Reclassification adjustments recognized in net income 1  —  1 
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ 3  $ 2  $ 5 
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ 198  $ (54) $ 144 
Reclassification adjustments recognized in net income 28  (7) 21 
Net change in pension and other postretirement benefit liabilities $ 226  $ (61) $ 165 
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ (1,212) $ (249) $ (1,461)
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 July 1, 2022 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ 374  $ (213) $ 161 
Reclassification adjustments recognized in net income 200  —  200 
Gains (losses) on intra-entity transactions that are of a long-term investment nature (2,003) —  (2,003)
Gains (losses) on net investment hedges arising during the period1
1,058  (264) 794 
Net foreign currency translation adjustments $ (371) $ (477) $ (848)
Derivatives:
Gains (losses) arising during the period $ 180  $ (52) $ 128 
Reclassification adjustments recognized in net income 39  (10) 29 
Net gains (losses) on derivatives1
$ 219  $ (62) $ 157 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (44) $ 10  $ (34)
Reclassification adjustments recognized in net income 5  (1) 4 
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (39) $ 9  $ (30)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ 266  $ (58) $ 208 
Reclassification adjustments recognized in net income 56  (14) 42 
Net change in pension and other postretirement benefit liabilities $ 322  $ (72) $ 250 
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ 131  $ (602) $ (471)
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 July 2, 2021 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ 517  $ (24) $ 493 
Reclassification adjustments recognized in net income 180  —  180 
Gains (losses) on intra-entity transactions that are of a long-term investment nature 212  —  212 
Gains (losses) on net investment hedges arising during the period1
(113) 27  (86)
Reclassification adjustments for net investment hedges recognized in net income1
4  —  4 
Net foreign currency translation adjustments $ 800  $ 3  $ 803 
Derivatives:
Gains (losses) arising during the period $ (40) $ 6  $ (34)
Reclassification adjustments recognized in net income 112  (26) 86 
Net gains (losses) on derivatives1
$ 72  $ (20) $ 52 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (11) $ 7  $ (4)
Reclassification adjustments recognized in net income 3  —  3 
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (8) $ 7  $ (1)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ (100) $ 34  $ (66)
Reclassification adjustments recognized in net income 61  (15) 46 
Net change in pension and other postretirement benefit liabilities $ (39) $ 19  $ (20)
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ 825  $ 9  $ 834 
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 July 2, 2021 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ 1,141  $ (47) $ 1,094 
Reclassification adjustments recognized in net income 180  —  180 
Gains (losses) on intra-entity transactions that are of a long-term investment nature (742) —  (742)
Gains (losses) on net investment hedges arising during the period1
362  (91) 271 
Reclassification adjustments for net investment hedges recognized in net income1
4  —  4 
Net foreign currency translation adjustments $ 945  $ (138) $ 807 
Derivatives:
Gains (losses) arising during the period $ 134  $ (37) $ 97 
Reclassification adjustments recognized in net income 76  (17) 59 
Net gains (losses) on derivatives1
$ 210  $ (54) $ 156 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (103) $ 37  $ (66)
Reclassification adjustments recognized in net income 6  (1) 5 
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (97) $ 36  $ (61)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ 353  $ (75) $ 278 
Reclassification adjustments recognized in net income 162  (40) 122 
Net change in pension and other postretirement benefit liabilities $ 515  $ (115) $ 400 
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ 1,573  $ (271) $ 1,302 
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.
Reclassification out of Accumulated Other Comprehensive Income
The following table presents the amounts and line items in our 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 July 1, 2022 Six Months Ended July 1, 2022
Foreign currency translation adjustments:
Divestitures, deconsolidations and other1
Other income (loss) — net $ —  $ 200 
Income before income taxes —  200 
Income taxes —  — 
Consolidated net income $ —  $ 200 
Derivatives:
Foreign currency contracts Net operating revenues $ (52) $ (60)
Foreign currency contracts Cost of goods sold (2) (3)
Foreign currency contracts Interest expense 1  2 
Foreign currency contracts Other income (loss) — net 89  100 
Income before income taxes 36  39 
Income taxes (9) (10)
Consolidated net income $ 27  $ 29 
Available-for-sale debt securities:
Sale of debt securities Other income (loss) — net $ 1  $ 5 
Income before income taxes 1  5 
Income taxes —  (1)
Consolidated net income $ 1  $ 4 
Pension and other postretirement benefit liabilities:
Recognized net actuarial loss Other income (loss) — net $ 29  $ 58 
Recognized prior service cost (credit) Other income (loss) — net (1) (2)
Income before income taxes 28  56 
Income taxes (7) (14)
Consolidated net income $ 21  $ 42 
1Related to the sale of our ownership interest in one of our equity method investments and the issuance of additional shares of stock by one of our equity method investees. Refer to Note 2 and Note 15, respectively