Annual report pursuant to Section 13 and 15(d)

OTHER COMPREHENSIVE INCOME

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OTHER COMPREHENSIVE INCOME
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
OTHER COMPREHENSIVE INCOME 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):
December 31, 2022 2021
Net foreign currency translation adjustments $ (13,609) $ (12,595)
Accumulated net gains (losses) on derivatives 24  20 
Unrealized net gains (losses) on available-for-sale debt securities (25) (62)
Adjustments to pension and other postretirement benefit liabilities (1,285) (1,693)
Accumulated other comprehensive income (loss) $ (14,895) $ (14,330)
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, 2022
Shareowners of
The Coca-Cola Company
Noncontrolling
Interests
Total
Consolidated net income $ 9,542  $ 29  $ 9,571 
Other comprehensive income:
Net foreign currency translation adjustments (1,014) (118) (1,132)
Net gains (losses) on derivatives1
— 
Net change in unrealized gains (losses) on available-for-sale debt
   securities2
37  —  37 
Net change in pension and other postretirement benefit liabilities3
408  —  408 
Total comprehensive income $ 8,977  $ (89) $ 8,888 
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.
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
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)
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 — 
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 (1)
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 
Before-Tax Amount Income Tax After-Tax Amount
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)
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.
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, 2022 (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 $ 200 
Income before income taxes 200 
Income taxes — 
Consolidated net income $ 200 
Derivatives:
Foreign currency contracts Net operating revenues $ (218)
Foreign currency and commodity contracts Cost of goods sold (26)
Foreign currency contracts Other income (loss) — net 79 
Foreign currency contracts Interest expense
Income before income taxes (161)
Income taxes 40 
Consolidated net income $ (121)
Available-for-sale debt securities:
Sale of debt securities Other income (loss) — net $ 131 
Income before income taxes 131 
Income taxes (29)
Consolidated net income $ 102 
Pension and other postretirement benefit liabilities:
Settlement charges (credits) Other income (loss) — net $ (1)
Curtailment charges (credits) Other income (loss) — net (1)
Recognized net actuarial loss Other income (loss) — net 109 
Recognized prior service cost (credit) Other income (loss) — net (3)
Income before income taxes 104 
Income taxes (26)
Consolidated net income $ 78 
1 Refer to Note 2.