Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.24.2
OPERATING SEGMENTS
 3 Months Ended
Jun. 28, 2024
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 June 28, 2024                
Net operating revenues:                
Third party $ 2,184  $ 1,650  $ 4,808  $ 1,386  $ 768  $ 1,537  $ 30  $ —  $ 12,363 
Intersegment 155  —  4  126  —  2  —  (287) — 
Total net operating revenues 2,339  1,650  4,812  1,512  768  1,539  30  (287) 12,363 
Operating income (loss) 1,252  920  1,312  647  92  98  (1,689) —  2,632 
Income (loss) before income taxes 1,267  887  1,324  648  94  548  (1,740) —  3,028 
Identifiable operating assets 7,475  3,064  25,972  2,532 
2
 7,576  7,888 
2
 27,588  —  82,095 
Investments1
402  671  15  54  —  12,751  5,214  —  19,107 
As of and for the Three Months
Ended June 30, 2023		                
Net operating revenues:                
Third party $ 2,043  $ 1,378  $ 4,365  $ 1,349  $ 765  $ 2,042  $ 30  $ —  $ 11,972 
Intersegment 145  —  2  218  —  —  —  (365) — 
Total net operating revenues 2,188  1,378  4,367  1,567  765  2,042  30  (365) 11,972 
Operating income (loss) 1,133  797  1,216  673  78  122  (1,618) —  2,401 
Income (loss) before income taxes 1,147  802  1,227  675  78  577  (1,626) —  2,880 
Identifiable operating assets 7,729  2,474  26,109  2,453 
2, 3
 7,622  9,281 
2, 3
 23,368  —  79,036 
Investments1
394  728  15  76  —  13,406  4,801  —  19,420 
As of December 31, 2023                
Identifiable operating assets $ 7,117  $ 3,149  $ 25,808  $ 2,428 
2
 $ 7,607  $ 9,871 
2
 $ 21,934  $ —  $ 77,914 
Investments1
389  712  15  71  —  13,639  4,963  —  19,789 
1Principally equity method investments and other investments in bottling companies.
2Property, plant and equipment — net in India represented 14%, 10% and 12% of consolidated property, plant and equipment — net as of June 28, 2024, June 30, 2023 and December 31, 2023, respectively.
3Property, plant and equipment — net in the Philippines represented 10% of consolidated property, plant and equipment — net as of June 30, 2023. As of December 31, 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 June 28, 2024, 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 $1,337 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 $32 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 $7 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 $3 million for Corporate due to charges related to our acquisition of BodyArmor. Refer to Note 12.
•Income (loss) before income taxes was increased by $50 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 $34 million for Latin America due to an other-than-temporary impairment charge related to an equity method investee. Refer to Note 16.
•Income (loss) before income taxes was reduced by $21 million for Bottling Investments and $3 million for Latin America 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 June 30, 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 $1,262 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 $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 $25 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 $8 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 $6 million for Corporate related to tax litigation expense. Refer to Note 9.
•Operating income (loss) and income (loss) before income taxes were reduced by $5 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 $3 million for Corporate due to charges related to our acquisition of BodyArmor. Refer to Note 12.
•Income (loss) before income taxes was increased by $127 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 $2 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
Six Months Ended June 28, 2024                
Net operating revenues:                
Third party $ 3,960  $ 3,177  $ 8,980  $ 2,639  $ 1,498  $ 3,352  $ 57  $ —  $ 23,663 
Intersegment 352  —  6  342  —  4  —  (704) — 
Total net operating revenues 4,312  3,177  8,986  2,981  1,498  3,356  57  (704) 23,663 
Operating income (loss) 2,332  1,862  1,757  1,301  147  254  (2,880) —  4,773 
Income (loss) before income taxes 2,356  1,834  1,779  1,306  150  972  (1,497) —  6,900 
Six Months Ended June 30, 2023                
Net operating revenues:                
Third party $ 3,874  $ 2,764  $ 8,267  $ 2,534  $ 1,472  $ 3,986  $ 55  $ —  $ 22,952 
Intersegment 338  —  4  404  —  2  —  (748) — 
Total net operating revenues 4,212  2,764  8,271  2,938  1,472  3,988  55  (748) 22,952 
Operating income (loss) 2,268  1,650  2,249  1,236  129  261  (2,025) —  5,768 
Income (loss) before income taxes 2,289  1,657  2,268  1,098  135  1,081  (1,595) —  6,933 
During the six months ended June 28, 2024, 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 $2,102 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 $760 million for North America due to the impairment of our BodyArmor trademark. Refer to Note 16.
•Operating income (loss) and income (loss) before income taxes were reduced by $68 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 $10 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 $7 million for Corporate due to transaction costs related to the refranchising of our bottling operations in certain territories in India. Refer to Note 2.
•Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Corporate due to charges related to our acquisition of BodyArmor. Refer to Note 12.
•Income (loss) before income taxes was increased by $599 million for Corporate due to the refranchising of our bottling operations in the Philippines. Refer to Note 2.
•Income (loss) before income taxes was increased by $516 million for Corporate related to the sale of our ownership interest in an equity method investee in Thailand. Refer to Note 2.
•Income (loss) before income taxes was increased by $290 million for Corporate due to the refranchising of our bottling operations in certain territories in India, including the impact of post-closing adjustments. Refer to Note 2.
•Income (loss) before income taxes was increased by $228 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 $44 million for Bottling Investments, $3 million for Latin America and $2 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 $34 million for Latin America due to an other-than-temporary impairment charge related to an equity method investee. Refer to Note 16.
•Income (loss) before income taxes was reduced by $7 million for Corporate related to post-closing adjustments for the refranchising of our bottling operations in Vietnam. Refer to Note 2.
During the six months ended June 30, 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 $1,324 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 $52 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 $11 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 $7 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 $6 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 $240 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 $140 million for Asia Pacific and was increased by $56 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.