Annual report pursuant to Section 13 and 15(d)

OTHER COMPREHENSIVE INCOME (Tables)

v3.22.0.1
OTHER COMPREHENSIVE INCOME (Tables)
12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
AOCI attributable to the shareowners of The Coca-Cola Company
AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions):
December 31, 2021 2020
Net foreign currency translation adjustments $ (12,595) $ (12,028)
Accumulated net gains (losses) on derivatives 20  (194)
Unrealized net gains (losses) on available-for-sale debt securities (62) 28 
Adjustments to pension and other postretirement benefit liabilities (1,693) (2,407)
Accumulated other comprehensive income (loss) $ (14,330) $ (14,601)
Comprehensive Income (Loss) Apportioned between Shareowners of the The Coca-Cola Company and Noncontrolling Interests
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
Year Ended December 31, 2021
Shareowners of
The Coca-Cola Company
Noncontrolling
Interests
Total
Consolidated net income $ 9,771  $ 33  $ 9,804 
Other comprehensive income:
Net foreign currency translation adjustments (567) (132) (699)
Net gains (losses) on derivatives1
214  —  214 
Net change in unrealized gains (losses) on available-for-sale debt
   securities2
(90) —  (90)
Net change in pension and other postretirement benefit liabilities3
714  (2) 712 
Total comprehensive income $ 10,042  $ (101) $ 9,941 
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 13 for additional information related to the Company’s pension and other postretirement benefit liabilities.
OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees' OCI
The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees’ OCI (in millions):
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 income1
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 
2020
Foreign currency translation adjustments:
Translation adjustments arising during the year $ (2,223) $ 150  $ (2,073)
Reclassification adjustments recognized in net income — 
Gains (losses) on intra-entity transactions that are of a long-term investment nature 2,133  —  2,133 
Gains (losses) on net investment hedges arising during the year1
(1,094) 273  (821)
     Net foreign currency translation adjustments $ (1,181) $ 423  $ (758)
Derivatives:
Gains (losses) arising during the year $ (54) $ 13  $ (41)
Reclassification adjustments recognized in net income 74  (18) 56 
Net gains (losses) on derivatives1
$ 20  $ (5) $ 15 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the year $ (64) $ 22  $ (42)
Reclassification adjustments recognized in net income (7) (5)
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (71) $ 24  $ (47)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the year $ (560) $ 138  $ (422)
Reclassification adjustments recognized in net income 206  (51) 155 
Net change in pension and other postretirement benefit liabilities3
$ (354) $ 87  $ (267)
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company
$ (1,586) $ 529  $ (1,057)
Before-Tax Amount Income Tax After-Tax Amount
2019
Foreign currency translation adjustments:
Translation adjustments arising during the year $ 52  $ (54) $ (2)
Reclassification adjustments recognized in net income 192  —  192 
Gains (losses) on intra-entity transactions that are of a long-term investment nature (307) —  (307)
Gains (losses) on net investment hedges arising during the year1
195  (49) 146 
     Net foreign currency translation adjustments $ 132  $ (103) $ 29 
Derivatives:
Gains (losses) arising during the year $ (225) $ 49  $ (176)
Reclassification adjustments recognized in net income 163  (41) 122 
Net gains (losses) on derivatives1
$ (62) $ $ (54)
Available-for-sale debt securities:
Unrealized gains (losses) arising during the year $ 47  $ (4) $ 43 
Reclassification adjustments recognized in net income (31) (25)
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ 16  $ $ 18 
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the year $ (379) $ 105  $ (274)
Reclassification adjustments recognized in net income 151  (36) 115 
Net change in pension and other postretirement benefit liabilities3
$ (228) $ 69  $ (159)
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company
$ (142) $ (24) $ (166)
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 13 for additional information related to the Company’s pension and other postretirement benefit liabilities.
Reclassification out of Accumulated Other Comprehensive Income
The following table presents the amounts and line items in our consolidated statement of income where adjustments reclassified from AOCI into income were recorded during the year ended December 31, 2021 (in millions):
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 $ 261 
Income before income taxes 261 
Income taxes — 
Consolidated net income $ 261 
Derivatives:
Foreign currency contracts Net operating revenues $ 77 
Foreign currency and commodity contracts Cost of goods sold 10 
Foreign currency contracts Other income (loss) — net (74)
Divestitures, deconsolidations and other1
Other income (loss) — net
Foreign currency and interest rate contracts Interest expense 103 
Income before income taxes 124 
Income taxes (29)
Consolidated net income $ 95 
Available-for-sale debt securities:
Sale of debt securities Other income (loss) — net $
Income before income taxes
Income taxes (1)
Consolidated net income $
Pension and other postretirement benefit liabilities:
Settlement charges2
Other income (loss) — net $ 117 
Curtailment charges (credits)2
Other income (loss) — net (2)
Recognized net actuarial loss Other income (loss) — net 150 
Recognized prior service cost (credit) Other income (loss) — net (2)
Divestitures, deconsolidations and other1
Other income (loss) — net
Income before income taxes 265 
Income taxes (66)
Consolidated net income $ 199 
1 Refer to Note 2.
2 The settlement charges and curtailment credits were related to our strategic realignment initiatives. Refer to Note 13 and Note 18.