Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v2.4.0.8
Operating Segments
 9 Months Ended
Sep. 26, 2014
Operating Segments [Abstract]  
Operating Segments
OPERATING SEGMENTS
Effective January 1, 2014, the Company changed the name of the Pacific segment to Asia Pacific. This change did not impact the results of the segments, but the name of the segment has been updated in all information presented herein.
Information about our Company's operations as of and for the three months ended September 26, 2014 and September 27, 2013, by operating segment, is as follows (in millions):
 
Eurasia
& Africa

Europe

Latin
America

North
America

Asia Pacific

Bottling
Investments

Corporate

Eliminations

Consolidated

2014
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
709

$
1,242

$
1,161

$
5,596

$
1,421

$
1,804

$
43

$
—

$
11,976

Intersegment
—

187

16

3

154

19

—

(379
)
—

Total net revenues
709

1,429

1,177

5,599

1,575

1,823

43

(379
)
11,976

Operating income (loss)
265

752

653

760

638

14

(371
)
—

2,711

Income (loss) before income taxes
272

763

654

486

648

205

(368
)
—

2,660

Identifiable operating assets
1,421

3,610

2,777

33,750

1,934

6,887

31,616

—

81,995

Noncurrent investments
1,162

98

790

43

158

9,381

2,687

—

14,319

2013
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
669

$
1,232

$
1,208

$
5,715

$
1,368

$
1,811

$
27

$
—

$
12,030

Intersegment
—

188

22

4

128

21

—

(363
)
—

Total net revenues
669

1,420

1,230

5,719

1,496

1,832

27

(363
)
12,030

Operating income (loss)
231

742

720

803

575

22

(621
)
—

2,472

Income (loss) before income taxes
228

755

719

805

585

214

74

—

3,380

Identifiable operating assets
1,340

3,567

2,672

34,278

1,848

6,836

27,356

—

77,897

Noncurrent investments
1,160

104

525

44

140

9,486

76

—

11,535

As of December 31, 2013
 
 
 
 
 
 
 
 
 
Identifiable operating assets
$
1,273

$
3,713

$
2,918

$
33,964

$
1,922

$
7,011

$
27,742

$
—

$
78,543

Noncurrent investments
1,157

106

545

49

143

9,424

88

—

11,512


During the three months ended September 26, 2014, the results of our operating segments were impacted by the following items:
•
Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Eurasia and Africa, $2 million for Europe, $59 million for North America, $2 million for Asia Pacific, $34 million for Bottling Investments and $20 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11 for additional information on each of the Company's productivity, restructuring and integration initiatives.
•
Operating income (loss) and income (loss) before income taxes were reduced by $7 million for Bottling Investments as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. Refer to Note 10.
•
Income (loss) before income taxes was reduced by $270 million for North America due to the refranchising of certain territories in North America. Refer to Note 2 and Note 10.
•
Income (loss) before income taxes was reduced by $8 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10.
During the three months ended September 27, 2013, the results of our operating segments were impacted by the following items:
•
Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Europe, $53 million for North America, $2 million for Asia Pacific, $45 million for Bottling Investments and $41 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11.
•
Operating income (loss) and income (loss) before income taxes were reduced by $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 10 and Note 14.
•
Income (loss) before income taxes was increased by $615 million for Corporate due to a gain recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. Refer to Note 2 and Note 10.
•
Income (loss) before income taxes was increased by $30 million for Corporate due to a gain recognized on the merger of four of the Company's Japanese bottling partners. Refer to Note 10 and Note 14.
•
Income (loss) before income taxes was increased by $8 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10.
Information about our Company's operations for the nine months ended September 26, 2014 and September 27, 2013, by operating segment, is as follows (in millions):
 
Eurasia
& Africa

Europe

Latin
America

North
America

Asia Pacific

Bottling
Investments

Corporate

Eliminations

Consolidated

2014
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
2,099

$
3,761

$
3,360

$
16,096

$
4,181

$
5,503

$
126

$
—

$
35,126

Intersegment
—

530

46

13

432

53

—

(1,074
)
—

Total net revenues
2,099

4,291

3,406

16,109

4,613

5,556

126

(1,074
)
35,126

Operating income (loss)
858

2,363

1,954

2,015

2,041

26

(1,000
)
—

8,257

Income (loss) before income taxes
893

2,398

1,957

1,593

2,059

481

(1,132
)
—

8,249

2013
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
2,103

$
3,545

$
3,504

$
16,306

$
4,185

$
6,047

$
124

$
—

$
35,814

Intersegment
—

520

169

13

431

61

—

(1,194
)
—

Total net revenues
2,103

4,065

3,673

16,319

4,616

6,108

124

(1,194
)
35,814

Operating income (loss)
845

2,261

2,209

1,875

2,024

186

(1,277
)
—

8,123

Income (loss) before income taxes
868

2,318

2,213

1,879

2,042

677

(748
)
—

9,249


During the nine months ended September 26, 2014, the results of our operating segments were impacted by the following items:
•
Operating income (loss) and income (loss) before income taxes were reduced by $1 million for Eurasia and Africa, $2 million for Europe, $192 million for North America, $10 million for Asia Pacific, $142 million for Bottling Investments and $54 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11 for additional information on each of the Company's productivity, restructuring and integration initiatives.
•
Operating income (loss) and income (loss) before income taxes were reduced by $32 million for Bottling Investments as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. Refer to Note 10.
•
Income (loss) before income taxes was reduced by $410 million for North America due to the refranchising of certain territories in North America. Refer to Note 2 and Note 10.
•
Income (loss) before income taxes was reduced by $21 million for Bottling Investments and $247 million for Corporate due to the expansion of the Venezuelan government's currency conversion markets, including a write-down of receivables related to concentrate sales to our bottling partner in Venezuela as well as our proportionate share of the charge incurred by this bottler, an equity method investee. Refer to Note 1 and Note 10.
•
Income (loss) before income taxes was reduced by $20 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10.
During the nine months ended September 27, 2013, the results of our operating segments were impacted by the following items:
•
Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Eurasia and Africa, $7 million for Europe, $190 million for North America, $16 million for Asia Pacific, $86 million for Bottling Investments and $97 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11.
•
Operating income (loss) and income (loss) before income taxes were reduced by $190 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 10 and Note 14.
•
Income (loss) before income taxes was increased by $615 million for Corporate due to a gain recognized on the deconsolidation of our Brazilian bottling operations as a result of their combination with an independent bottling partner. Refer to Note 2 and Note 10.
•
Income (loss) before income taxes was reduced by $9 million for Bottling Investments and $140 million for Corporate due to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method investee that has operations in Venezuela. Refer to Note 1 and Note 10.
•
Income (loss) before income taxes was reduced by $114 million for Corporate due to a loss related to the merger of four of the Company's Japanese bottling partners. Refer to Note 10 and Note 14.
•
Income (loss) before income taxes was increased by $139 million for Corporate due to a gain the Company recognized as a result of Coca-Cola FEMSA issuing additional shares of its own stock during the period at a per share amount greater than the carrying value of the Company's per share investment. Refer to Note 10 and Note 14.
•
Income (loss) before income taxes was reduced by $25 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees.
•
Income (loss) before income taxes was reduced by $23 million for Corporate due to a charge the Company recognized as a result of the early extinguishment of certain long-term debt.