OTHER COMPREHENSIVE INCOME
AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our consolidated balance sheets 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 sheets 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, |
2017 |
|
|
2016 |
|
Foreign currency translation adjustments |
$ |
(8,957 |
) |
|
$ |
(9,780 |
) |
Accumulated derivative net gain (loss) |
(119 |
) |
|
314 |
|
Unrealized net gain (loss) on available-for-sale securities |
493 |
|
|
305 |
|
Adjustments to pension and other benefit liabilities |
(1,722 |
) |
|
(2,044 |
) |
Accumulated other comprehensive income (loss) |
$ |
(10,305 |
) |
|
$ |
(11,205 |
) |
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, 2017 |
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Shareowners of
The Coca-Cola Company
|
|
Noncontrolling
Interests
|
|
Total |
|
Consolidated net income |
$ |
1,248 |
|
$ |
35 |
|
$ |
1,283 |
|
Other comprehensive income: |
|
|
|
Net foreign currency translation adjustment |
823 |
|
38 |
|
861 |
|
Net gain (loss) on derivatives1
|
(433 |
) |
— |
|
(433 |
) |
Net change in unrealized gain (loss) on available-for-sale securities2
|
188 |
|
— |
|
188 |
|
Net change in pension and other benefit liabilities3
|
322 |
|
— |
|
322 |
|
Total comprehensive income |
$ |
2,148 |
|
$ |
73 |
|
$ |
2,221 |
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1
|
Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
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2
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Refer to Note 3 for additional information related to the net unrealized gain or loss on available-for-sale securities.
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3 |
Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities.
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OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI, for the years ended December 31, 2017, 2016 and 2015, is as follows (in millions):
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|
|
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
2017 |
|
|
|
|
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the year |
$ |
(1,350 |
) |
|
$ |
(242 |
) |
|
$ |
(1,592 |
) |
Reclassification adjustments recognized in net income |
23 |
|
|
(6 |
) |
|
17 |
|
|
Gains (losses) on intra-entity transactions that are of a long-term investment nature
|
3,332 |
|
|
— |
|
|
3,332 |
|
Gains (losses) on net investment hedges arising during the year |
(1,512 |
) |
|
578 |
|
|
(934 |
) |
Net foreign currency translation adjustments |
493 |
|
|
330 |
|
|
823 |
|
Derivatives: |
|
|
|
|
|
Gains (losses) arising during the year |
(184 |
) |
|
65 |
|
|
(119 |
) |
Reclassification adjustments recognized in net income |
(506 |
) |
|
192 |
|
|
(314 |
) |
Net gain (loss) on derivatives1
|
(690 |
) |
|
257 |
|
|
(433 |
) |
Available-for-sale securities: |
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|
|
|
|
Unrealized gains (losses) arising during the year |
405 |
|
|
(136 |
) |
|
269 |
|
Reclassification adjustments recognized in net income |
(123 |
) |
|
42 |
|
|
(81 |
) |
Net change in unrealized gain (loss) on available-for-sale securities2
|
282 |
|
|
(94 |
) |
|
188 |
|
Pension and other benefit liabilities: |
|
|
|
|
|
Net pension and other benefits arising during the year |
120 |
|
|
(7 |
) |
|
113 |
|
Reclassification adjustments recognized in net income |
325 |
|
|
(116 |
) |
|
209 |
|
Net change in pension and other benefit liabilities3
|
445 |
|
|
(123 |
) |
|
322 |
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company |
$ |
530 |
|
|
$ |
370 |
|
|
$ |
900 |
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|
|
1 |
Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
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2 |
Refer to Note 3 for additional information related to the net unrealized gain or loss on available for sale securities.
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3 |
Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities.
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|
|
|
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
2016 |
|
|
|
|
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the year |
$ |
(1,103 |
) |
|
$ |
51 |
|
|
$ |
(1,052 |
) |
Reclassification adjustments recognized in net income |
368 |
|
|
(18 |
) |
|
350 |
|
Gains (losses) on net investment hedges arising during the year |
67 |
|
|
(25 |
) |
|
42 |
|
Reclassification adjustments for net investment hedges recognized in net income |
77 |
|
|
(30 |
) |
|
47 |
|
Net foreign currency translation adjustments |
(591 |
) |
|
(22 |
) |
|
(613 |
) |
Derivatives: |
|
|
|
|
|
Gains (losses) arising during the year |
(43 |
) |
|
11 |
|
|
(32 |
) |
Reclassification adjustments recognized in net income |
(563 |
) |
|
213 |
|
|
(350 |
) |
Net gain (loss) on derivatives1
|
(606 |
) |
|
224 |
|
|
(382 |
) |
Available-for-sale securities: |
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|
|
|
Unrealized gains (losses) arising during the year |
124 |
|
|
(28 |
) |
|
96 |
|
Reclassification adjustments recognized in net income |
(105 |
) |
|
26 |
|
|
(79 |
) |
Net change in unrealized gain (loss) on available-for-sale securities2
|
19 |
|
|
(2 |
) |
|
17 |
|
Pension and other benefit liabilities: |
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|
|
|
Net pension and other benefits arising during the year |
(374 |
) |
|
99 |
|
|
(275 |
) |
Reclassification adjustments recognized in net income |
342 |
|
|
(120 |
) |
|
222 |
|
Net change in pension and other benefit liabilities3
|
(32 |
) |
|
(21 |
) |
|
(53 |
) |
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company |
$ |
(1,210 |
) |
|
$ |
179 |
|
|
$ |
(1,031 |
) |
|
|
1 |
Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
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|
2 |
Refer to Note 3 for additional information related to the net unrealized gain or loss on available for sale securities.
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3 |
Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities.
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|
Before-Tax Amount |
|
|
Income Tax |
|
|
After-Tax Amount |
|
2015 |
|
|
|
|
|
Foreign currency translation adjustments: |
|
|
|
|
|
Translation adjustments arising during the year |
$ |
(4,626 |
) |
|
$ |
243 |
|
|
$ |
(4,383 |
) |
Reclassification adjustments recognized in net income |
63 |
|
|
(14 |
) |
|
49 |
|
Unrealized gains (losses) on net investment hedges arising during the year |
637 |
|
|
(244 |
) |
|
393 |
|
Net foreign currency translation adjustments |
(3,926 |
) |
|
(15 |
) |
|
(3,941 |
) |
Derivatives: |
|
|
|
|
|
Unrealized gains (losses) arising during the year |
853 |
|
|
(314 |
) |
|
539 |
|
Reclassification adjustments recognized in net income |
(638 |
) |
|
241 |
|
|
(397 |
) |
Net gain (loss) on derivatives1
|
215 |
|
|
(73 |
) |
|
142 |
|
Available-for-sale securities: |
|
|
|
|
|
Unrealized gains (losses) arising during the year |
(973 |
) |
|
328 |
|
|
(645 |
) |
Reclassification adjustments recognized in net income |
(61 |
) |
|
22 |
|
|
(39 |
) |
Net change in unrealized gain (loss) on available-for-sale securities2
|
(1,034 |
) |
|
350 |
|
|
(684 |
) |
Pension and other benefit liabilities: |
|
|
|
|
|
Net pension and other benefits arising during the year |
(169 |
) |
|
43 |
|
|
(126 |
) |
Reclassification adjustments recognized in net income |
337 |
|
|
(125 |
) |
|
212 |
|
Net change in pension and other benefit liabilities3
|
168 |
|
|
(82 |
) |
|
86 |
|
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company |
$ |
(4,577 |
) |
|
$ |
180 |
|
|
$ |
(4,397 |
) |
|
|
1 |
Refer to Note 5 for additional information related to the net gain or loss on derivative instruments designated and qualifying as cash flow hedging instruments.
|
|
|
2 |
Refer to Note 3 for additional information related to the net unrealized gain or loss on available for sale securities.
|
|
|
3 |
Refer to Note 13 for additional information related to the Company's pension and other postretirement benefit liabilities.
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The following table presents the amounts and line items in our consolidated statements of income where adjustments reclassified from AOCI into income were recorded during the year ended December 31, 2017 (in millions):
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Description of AOCI Component |
Financial Statement Line Item |
Amount Reclassified from AOCI into Income |
|
Foreign currency translation adjustments: |
|
|
Divestitures, deconsolidations and other1
|
Other income (loss) — net |
$ |
23 |
|
|
Income from continuing operations before income taxes |
$ |
23 |
|
|
Income taxes from continuing operations |
(6 |
) |
|
Consolidated net income |
$ |
17 |
|
Derivatives: |
|
|
Foreign currency contracts |
Net operating revenues |
$ |
(444 |
) |
Foreign currency and commodity contracts |
Cost of goods sold |
3 |
|
Foreign currency and interest rate contracts |
Interest expense |
44 |
|
Foreign currency contracts |
Other income (loss) — net |
(110 |
) |
Divestitures, deconsolidations and other2
|
Other income (loss) — net |
1 |
|
|
Income from continuing operations before income taxes |
$ |
(506 |
) |
|
Income taxes from continuing operations
|
192 |
|
|
Consolidated net income |
$ |
(314 |
) |
Available-for-sale securities: |
|
|
Divestitures, deconsolidations and other2
|
Other income (loss) — net |
$ |
(87 |
) |
Sale of securities |
Other income (loss) — net |
(36 |
) |
|
Income from continuing operations before income taxes |
$ |
(123 |
) |
|
Income taxes from continuing operations
|
42 |
|
|
Consolidated net income |
$ |
(81 |
) |
Pension and other benefit liabilities: |
|
|
|
Curtailment charges (credits)3
|
Other operating charges |
$ |
(75 |
) |
|
Settlement charges (credits)3
|
Other operating charges |
228 |
|
Divestitures, deconsolidations and other2
|
Other income (loss) — net |
7 |
|
Recognized net actuarial loss (gain) |
* |
183 |
|
Recognized prior service cost (credit) |
* |
(18 |
) |
|
Income from continuing operations before income taxes |
$ |
325 |
|
|
Income taxes from continuing operations |
(116 |
) |
|
Consolidated net income |
$ |
209 |
|
1 Includes a $104 million loss related to the integration of CCW and CCEJ to establish CCBJI and an $80 million gain related to the derecognition of our previously held equity interests in CCBA and its South African subsidiary upon the consolidation of CCBA. Refer to Note 2 and Note 17.
2 Primarily related to the integration of CCW and CCEJ to establish CCBJI. Refer to Note 17.
3 The curtailment charges (credits) and settlement charges (credits) were primarily related to North America refranchising and the Company's productivity, restructuring and integration initiatives. Refer to Note 13 and Note 18.
* This component of AOCI is included in the Company's computation of net periodic benefit cost and is not reclassified out of AOCI into a single line item in our consolidated statements of income in its entirety. Refer to Note 13.
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