| OTHER COMPREHENSIVE INCOME AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our 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 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):
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|
|
| December 31, |
2023 |
2022 |
| Net foreign currency translation adjustments |
$ |
(12,726) |
|
$ |
(13,609) |
|
| Accumulated net gains (losses) on derivatives |
(154) |
|
24 |
|
| Unrealized net gains (losses) on available-for-sale debt securities |
(1) |
|
(25) |
|
| Adjustments to pension and other postretirement benefit liabilities |
(1,394) |
|
(1,285) |
|
| Accumulated other comprehensive income (loss) |
$ |
(14,275) |
|
$ |
(14,895) |
|
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
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Year Ended December 31, 2023 |
|
Shareowners of
The Coca-Cola Company |
Noncontrolling
Interests |
Total |
| Consolidated net income |
$ |
10,714 |
|
$ |
(11) |
|
$ |
10,703 |
|
| Other comprehensive income: |
|
|
|
| Net foreign currency translation adjustments |
883 |
|
(147) |
|
736 |
|
Net gains (losses) on derivatives1
|
(178) |
|
— |
|
(178) |
|
|
Net change in unrealized gains (losses) on available-for-sale debt
securities2
|
24 |
|
— |
|
24 |
|
Net change in pension and other postretirement benefit liabilities3
|
(109) |
|
— |
|
(109) |
|
| Total comprehensive income |
$ |
11,334 |
|
$ |
(158) |
|
$ |
11,176 |
|
1 Refer to Note 5 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.
3 Refer to Note 14 for additional information related to the Company’s pension and other postretirement benefit liabilities.
The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees’ OCI (in millions):
|
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|
|
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|
|
Before-Tax Amount |
Income Tax |
After-Tax Amount |
| 2023 |
|
|
|
| Foreign currency translation adjustments: |
|
|
|
| Translation adjustments arising during the year |
$ |
366
|
|
$ |
(131) |
|
$ |
235
|
|
| Reclassification adjustments recognized in net income |
223
|
|
—
|
|
223
|
|
| Gains (losses) on intra-entity transactions that are of a long-term investment nature |
712
|
|
—
|
|
712
|
|
Gains (losses) on net investment hedges arising during the year1
|
(382) |
|
95
|
|
(287) |
|
|
|
|
|
| Net foreign currency translation adjustments |
$ |
919
|
|
$ |
(36) |
|
$ |
883
|
|
| Derivatives: |
|
|
|
| Gains (losses) arising during the year |
$ |
(194) |
|
$ |
23
|
|
$ |
(171) |
|
| Reclassification adjustments recognized in net income |
(10) |
|
3
|
|
(7) |
|
Net gains (losses) on derivatives1
|
$ |
(204) |
|
$ |
26
|
|
$ |
(178) |
|
| Available-for-sale debt securities: |
|
|
|
| Unrealized gains (losses) arising during the year |
$ |
28
|
|
$ |
(10) |
|
$ |
18
|
|
| Reclassification adjustments recognized in net income |
7
|
|
(1) |
|
6
|
|
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$ |
35
|
|
$ |
(11) |
|
$ |
24
|
|
| Pension and other postretirement benefit liabilities: |
|
|
|
| Net pension and other postretirement benefit liabilities arising during the year |
$ |
(314) |
|
$ |
80
|
|
$ |
(234) |
|
| Reclassification adjustments recognized in net income |
157
|
|
(32) |
|
125
|
|
Net change in pension and other postretirement benefit liabilities3
|
$ |
(157) |
|
$ |
48
|
|
$ |
(109) |
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company |
$ |
593
|
|
$ |
27
|
|
$ |
620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2022 |
|
|
|
| Foreign currency translation adjustments: |
|
|
|
| Translation adjustments arising during the year |
$ |
(125) |
|
$ |
(226) |
|
$ |
(351) |
|
| Reclassification adjustments recognized in net income |
200 |
|
— |
|
200 |
|
| Gains (losses) on intra-entity transactions that are of a long-term investment nature |
(1,419) |
|
— |
|
(1,419) |
|
Gains (losses) on net investment hedges arising during the year1
|
741 |
|
(185) |
|
556 |
|
|
|
|
|
| Net foreign currency translation adjustments |
$ |
(603) |
|
$ |
(411) |
|
$ |
(1,014) |
|
| Derivatives: |
|
|
|
| Gains (losses) arising during the year |
$ |
165 |
|
$ |
(40) |
|
$ |
125 |
|
| Reclassification adjustments recognized in net income |
(161) |
|
40 |
|
(121) |
|
Net gains (losses) on derivatives1
|
$ |
4 |
|
$ |
— |
|
$ |
4 |
|
| Available-for-sale debt securities: |
|
|
|
| Unrealized gains (losses) arising during the year |
$ |
(69) |
|
$ |
4 |
|
$ |
(65) |
|
| Reclassification adjustments recognized in net income |
131 |
|
(29) |
|
102 |
|
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$ |
62 |
|
$ |
(25) |
|
$ |
37 |
|
| Pension and other postretirement benefit liabilities: |
|
|
|
| Net pension and other postretirement benefit liabilities arising during the year |
$ |
420 |
|
$ |
(90) |
|
$ |
330 |
|
| Reclassification adjustments recognized in net income |
104 |
|
(26) |
|
78 |
|
Net change in pension and other postretirement benefit liabilities3
|
$ |
524 |
|
$ |
(116) |
|
$ |
408 |
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company |
$ |
(13) |
|
$ |
(552) |
|
$ |
(565) |
|
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|
|
Before-Tax Amount |
Income Tax |
After-Tax Amount |
| 2021 |
|
|
|
| Foreign currency translation adjustments: |
|
|
|
| Translation adjustments arising during the year |
$ |
263 |
|
$ |
19 |
|
$ |
282 |
|
| Reclassification adjustments recognized in net income |
257 |
|
— |
|
257 |
|
| Gains (losses) on intra-entity transactions that are of a long-term investment nature |
(1,798) |
|
— |
|
(1,798) |
|
Gains (losses) on net investment hedges arising during the year1
|
918 |
|
(230) |
|
688 |
|
| Reclassification adjustments for net investment hedges recognized in net income |
4 |
|
— |
|
4 |
|
| Net foreign currency translation adjustments |
$ |
(356) |
|
$ |
(211) |
|
$ |
(567) |
|
| Derivatives: |
|
|
|
| Gains (losses) arising during the year |
$ |
160 |
|
$ |
(41) |
|
$ |
119 |
|
| Reclassification adjustments recognized in net income |
124 |
|
(29) |
|
95 |
|
Net gains (losses) on derivatives1
|
$ |
284 |
|
$ |
(70) |
|
$ |
214 |
|
| Available-for-sale debt securities: |
|
|
|
| Unrealized gains (losses) arising during the year |
$ |
(141) |
|
$ |
48 |
|
$ |
(93) |
|
| Reclassification adjustments recognized in net income |
4 |
|
(1) |
|
3 |
|
Net change in unrealized gains (losses) on available-for-sale debt securities2
|
$ |
(137) |
|
$ |
47 |
|
$ |
(90) |
|
| Pension and other postretirement benefit liabilities: |
|
|
|
| Net pension and other postretirement benefit liabilities arising during the year |
$ |
653 |
|
$ |
(138) |
|
$ |
515 |
|
| Reclassification adjustments recognized in net income |
265 |
|
(66) |
|
199 |
|
Net change in pension and other postretirement benefit liabilities3
|
$ |
918 |
|
$ |
(204) |
|
$ |
714 |
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
Company |
$ |
709 |
|
$ |
(438) |
|
$ |
271 |
|
1Refer to Note 5 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.
3Refer to Note 14 for additional information related to the Company’s pension and other postretirement benefit liabilities.
The following table presents the reclassifications from AOCI into income recorded during the year ended December 31, 2023 (in millions):
|
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| Description of AOCI Component |
Financial Statement Line Item Impacted |
Amount Reclassified from AOCI |
| Foreign currency translation adjustments: |
|
|
Divestitures, deconsolidations and other1
|
Other income (loss) — net |
$ |
223 |
|
|
Income before income taxes |
223 |
|
|
Income taxes |
— |
|
|
Consolidated net income |
$ |
223 |
|
| Derivatives: |
|
|
| Foreign currency contracts |
Net operating revenues |
$ |
3 |
|
|
|
|
| Foreign currency contracts |
Other income (loss) — net |
(17) |
|
|
|
|
| Foreign currency contracts |
Interest expense |
4 |
|
|
Income before income taxes |
(10) |
|
|
Income taxes |
3 |
|
|
Consolidated net income |
$ |
(7) |
|
| Available-for-sale debt securities: |
|
|
|
|
|
| Sale of debt securities |
Other income (loss) — net |
$ |
7 |
|
|
Income before income taxes |
7 |
|
|
Income taxes |
(1) |
|
|
Consolidated net income |
$ |
6 |
|
| Pension and other postretirement benefit liabilities: |
|
|
Divestitures, deconsolidations and other2
|
Other income (loss) — net |
$ |
1 |
|
| Settlement charges (credits) |
Other income (loss) — net |
67 |
|
|
|
|
| Recognized net actuarial loss (gain) |
Other income (loss) — net |
91 |
|
| Recognized prior service cost (credit) |
Other income (loss) — net |
(2) |
|
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|
|
|
Income before income taxes |
157 |
|
|
Income taxes |
(32) |
|
|
Consolidated net income |
$ |
125 |
|
1 Related to the refranchising of our bottling operations in Vietnam and the sale of our ownership interest in our equity method investees in Pakistan and Indonesia. Refer to Note 2.
2
|