Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.23.3
OPERATING SEGMENTS
 3 Months Ended
Sep. 29, 2023
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 September 29, 2023                
Net operating revenues:                
Third party $ 2,009  $ 1,574  $ 4,461  $ 1,235  $ 779  $ 1,855  $ 40  $ —  $ 11,953 
Intersegment 167  —  2  167  —  4  —  (340) — 
Total net operating revenues 2,176  1,574  4,463  1,402  779  1,859  40  (340) 11,953 
Operating income (loss) 1,136  985  1,276  491  81  132  (831) —  3,270 
Income (loss) before income taxes 1,154  988  1,295  491  84  571  (1,046) —  3,537 
Identifiable operating assets 7,142  3,124  25,591  2,324 
2
 7,349  9,342 
2
 23,346  —  78,218 
Investments1
372  709  15  71  —  13,310  4,883  —  19,360 
As of and for the Three Months Ended September 30, 2022                
Net operating revenues:                
Third party $ 1,844  $ 1,267  $ 4,197  $ 1,263  $ 679  $ 1,784  $ 29  $ —  $ 11,063 
Intersegment 143  —  4  164  —  2  —  (313) — 
Total net operating revenues 1,987  1,267  4,201  1,427  679  1,786  29  (313) 11,063 
Operating income (loss) 1,046  712  1,082  589  67  46  (454) —  3,088 
Income (loss) before income taxes 1,078  715  1,090  598  69  466  (572) —  3,444 
Identifiable operating assets 7,153  2,072  25,989  2,347 
3
 6,741  9,384 
3
 20,480  —  74,166 
Investments1
433  607  19  215  —  12,479  4,552  —  18,305 
As of December 31, 2022                
Identifiable operating assets $ 7,088  $ 2,067  $ 25,760  $ 2,368 
3
 $ 7,325  $ 10,232 
3
 $ 19,158  $ —  $ 73,998 
Investments1
410  629  15  219  —  12,892  4,600  —  18,765 
1Principally equity method investments and other investments in bottling companies.
2Property, plant and equipment — net in India represented 12% of consolidated property, plant and equipment — net as of September 29, 2023.
3Property, plant and equipment — net in the Philippines represented 10% of consolidated property, plant and equipment — net as of September 30, 2022 and December 31, 2022. As of September 29, 2023, the Company’s bottling operations in the Philippines met the criteria to be classified as held for sale. Refer to Note 2.
During the three months ended September 29, 2023, 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 $296 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 16.
•Operating income (loss) and income (loss) before income taxes were reduced by $58 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 13.
•Operating income (loss) and income (loss) before income taxes were reduced by $4 million for North America due to the restructuring of our manufacturing operations in the United States.
•Operating income (loss) and income (loss) before income taxes were reduced by $4 million for Corporate due to charges related to our acquisition of BodyArmor. Refer to Note 12.
•Income (loss) before income taxes was reduced by $119 million for Corporate due 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 $6 million for Asia Pacific and $42 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 30, 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 reduced by $57 million for Asia Pacific due to the impairment of a trademark. Refer to Note 16.
•Operating income (loss) and income (loss) before income taxes were reduced by $32 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 16.
•Operating income (loss) and income (loss) before income taxes were reduced by $27 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 13.
•Operating income (loss) and income (loss) before income taxes were reduced by $15 million for Corporate related to our acquisition of BodyArmor. Refer to Note 12.
•Operating income (loss) and income (loss) before income taxes were reduced by $8 million for North America due to the restructuring of our manufacturing operations in the United States.
•Income (loss) before income taxes was reduced by $78 million for Corporate due 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 $14 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 September 29, 2023                
Net operating revenues:                
Third party $ 5,883  $ 4,338  $ 12,728  $ 3,769  $ 2,251  $ 5,841  $ 95  $ —  $ 34,905 
Intersegment 505  —  6  571  —  6  —  (1,088) — 
Total net operating revenues 6,388  4,338  12,734  4,340  2,251  5,847  95  (1,088) 34,905 
Operating income (loss) 3,404  2,635  3,525  1,727  210  393  (2,856) —  9,038 
Income (loss) before income taxes 3,443  2,645  3,563  1,589  219  1,652  (2,641) —  10,470 
Nine Months Ended September 30, 2022                
Net operating revenues:                
Third party $ 5,523  $ 3,621  $ 11,815  $ 3,837  $ 2,103  $ 5,903  $ 77  $ —  $ 32,879 
Intersegment 481  —  6  567  —  6  —  (1,060) — 
Total net operating revenues 6,004  3,621  11,821  4,404  2,103  5,909  77  (1,060) 32,879 
Operating income (loss) 3,344  2,146  2,978  2,006  162  352  (2,154) —  8,834 
Income (loss) before income taxes 3,326  2,152  3,002  2,025  173  1,312  (2,804) —  9,186 
During the nine months ended September 29, 2023, 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 $1,620 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 16.
•Operating income (loss) and income (loss) before income taxes were reduced by $110 million for Corporate due to the Company’s productivity and reinvestment program. Operating income (loss) and income (loss) before income taxes were increased by $1 million for North America due to the refinement of previously established accruals related to the Company’s productivity and reinvestment program. Refer to Note 13.
•Operating income (loss) and income (loss) before income taxes were reduced by $35 million for Asia Pacific due to the discontinuation of certain manufacturing operations.
•Operating income (loss) and income (loss) before income taxes were reduced by $26 million for North America due to the restructuring of our North America operating unit. Refer to Note 13.
•Operating income (loss) and income (loss) before income taxes were reduced by $15 million for North America due to the restructuring of our manufacturing operations in the United States.
•Operating income (loss) and income (loss) before income taxes were reduced by $11 million for Corporate due to charges related to our acquisition of BodyArmor. Refer to Note 12.
•Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Corporate related to tax litigation expense. Refer to Note 9.
•Income (loss) before income taxes was increased by $439 million for Corporate due to the refranchising of our bottling operations in Vietnam. Refer to Note 2.
•Income (loss) before income taxes was increased by $121 million for Corporate due 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 $146 million for Asia Pacific and was increased by $14 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 nine months ended September 30, 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 reduced by $971 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 16.
•Operating income (loss) and income (loss) before income taxes were reduced by $57 million for Asia Pacific due to the impairment of a trademark. Refer to Note 16.
•Operating income (loss) and income (loss) before income taxes were reduced by $56 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 13.
•Operating income (loss) and income (loss) before income taxes were reduced by $30 million and $31 million, respectively, for North America due to the restructuring of our manufacturing operations in the United States.
•Operating income (loss) and income (loss) before income taxes were increased by $21 million for North America and were reduced by $44 million for Corporate related to our acquisition of BodyArmor. Refer to Note 12.
•Income (loss) before income taxes was reduced by $449 million for Corporate due 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 $96 million for Europe, Middle East and Africa due to an other-than-temporary impairment charge related to an equity method investee in Russia. Refer to Note 16.
•Income (loss) before income taxes was reduced by $44 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 $24 million for Corporate due to one of our equity method investees issuing additional shares of its stock. Refer to Note 16.