Annual report pursuant to Section 13 and 15(d)

EQUITY METHOD INVESTMENTS

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EQUITY METHOD INVESTMENTS
 12 Months Ended
Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INVESTMENTS EQUITY METHOD INVESTMENTS
Our consolidated net income includes our Company’s proportionate share of the net income or loss of our equity method investees. When we record our proportionate share of net income, it increases equity income (loss) — net in our consolidated statement of income and our carrying value of that investment. Conversely, when we record our proportionate share of a net loss, it decreases equity income (loss) — net in our consolidated statement of income and our carrying value of that investment. The Company’s proportionate share of the net income or loss of our equity method investees includes our proportionate share of significant operating and nonoperating items recorded by our equity method investees. These items can have a significant impact on the amount of equity income (loss) — net in our consolidated statement of income and our carrying value of those investments. Refer to Note 18 for additional information related to significant operating and nonoperating items recorded by our equity method investees. The carrying values of our equity method investments are also impacted by our proportionate share of items impacting the equity method investees’ AOCI.
We eliminate from our financial results all significant intercompany transactions to the extent of our ownership interest, including the intercompany portion of transactions with equity method investees.
The Company’s equity method investments include, but are not limited to, our ownership interests in CCEP; Monster; AC Bebidas, S. de R.L. de C.V.; Coca-Cola FEMSA, S.A.B. de C.V.; Coca-Cola HBC AG; and Coca-Cola Bottlers Japan Holdings Inc. As of December 31, 2024, we owned 19%, 21%, 20%, 28%, 22% and 19%, respectively, of these companies’ outstanding shares. As of December 31, 2024, our investments in our equity method investees in the aggregate exceeded our proportionate share of the net assets of these equity method investees by $7,791 million. This difference is not amortized.
A summary of financial information for our equity method investees in the aggregate is as follows (in millions):
Year Ended December 31,1
2024 2023 2022
Net operating revenues $ 99,043  $ 93,862  $ 85,116 
Cost of goods sold 58,527  55,780  52,051 
Gross profit $ 40,516  $ 38,082  $ 33,065 
Operating income $ 12,536  $ 11,868  $ 9,719 
Consolidated net income $ 8,439  $ 7,657  $ 6,373 
Less: Net income attributable to noncontrolling interests 98  75  102 
Net income attributable to common shareowners $ 8,341  $ 7,582  $ 6,271 
Company equity income (loss) — net $ 1,770  $ 1,691  $ 1,472 
1 The financial information represents the results of the equity method investees during the Company’s period of ownership.
December 31, 2024 2023
Current assets $ 33,720  $ 35,087 
Noncurrent assets 72,039  74,464 
Total assets $ 105,759  $ 109,551 
Current liabilities $ 26,959  $ 26,929 
Noncurrent liabilities 33,004  33,989 
Total liabilities $ 59,963  $ 60,918 
Equity attributable to shareowners of investees $ 44,295  $ 47,473 
Equity attributable to noncontrolling interests 1,501  1,160 
Total equity $ 45,796  $ 48,633 
Company equity method investments $ 18,087  $ 19,671 
Net sales to equity method investees, the majority of which are located outside the United States, were $18,278 million, $17,736 million and $16,084 million in 2024, 2023 and 2022, respectively. Total payments, primarily related to marketing, made to equity method investees were $331 million, $294 million and $396 million in 2024, 2023 and 2022, respectively. In addition, purchases of beverage products from equity method investees were $635 million, $579 million and $505 million in 2024, 2023 and 2022, respectively.
The following table presents the difference between calculated fair value, based on quoted closing prices of publicly traded shares, and our Company’s carrying value in investments in publicly traded companies accounted for under the equity method (in millions):
December 31, 2024 Fair Value Carrying Value Difference
Monster Beverage Corporation $ 10,735  $ 5,186  $ 5,549 
Coca-Cola Europacific Partners plc 6,755  3,655  3,100 
Coca-Cola FEMSA, S.A.B. de C.V. 4,544  1,786  2,758 
Coca-Cola HBC AG 2,675  1,147  1,528 
Coca-Cola Consolidated, Inc. 2,373  342  2,031 
Coca-Cola Bottlers Japan Holdings Inc. 536  332  204 
Coca-Cola İçecek A.Ş. 954  257  697 
Embotelladora Andina S.A. 168  90  78 
Total $ 28,740  $ 12,795  $ 15,945 
Net Receivables and Dividends from Equity Method Investees
Total net receivables due from equity method investees were $1,357 million and $1,527 million as of December 31, 2024 and 2023, respectively. The total amount of dividends received from equity method investees was $968 million, $672 million and $634 million for the years ended December 31, 2024, 2023 and 2022, respectively. The amount of consolidated reinvested earnings that represents undistributed earnings of investments accounted for under the equity method as of December 31, 2024 was $8,594 million.