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FAIR VALUE MEASUREMENTS (Tables)
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12 Months Ended |
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Dec. 31, 2011
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| Fair Value Measurements Disclosure [Abstract] |
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| Assets and liabilities measured at fair value on a recurring basis |
The following tables summarize those assets and liabilities measured at fair value on a recurring basis (in millions):
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December 31, 2011 |
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Level 1 |
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Level 2 |
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Level 3 |
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Netting
Adjustment1
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Fair Value
Measurements
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Assets: |
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Trading securities |
$ |
166 |
|
|
$ |
41 |
|
|
$ |
4 |
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|
$ |
— |
|
|
$ |
211 |
|
Available-for-sale securities |
1,071 |
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|
214 |
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|
116 |
|
2 |
— |
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|
1,401 |
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Derivatives3
|
39 |
|
|
467 |
|
|
— |
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|
(117 |
) |
|
389 |
|
Total assets |
$ |
1,276 |
|
|
$ |
722 |
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|
$ |
120 |
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|
$ |
(117 |
) |
|
$ |
2,001 |
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Liabilities: |
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Derivatives3
|
$ |
5 |
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|
$ |
201 |
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|
$ |
— |
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|
$ |
(121 |
) |
|
$ |
85 |
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Total liabilities |
$ |
5 |
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|
$ |
201 |
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|
$ |
— |
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|
$ |
(121 |
) |
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$ |
85 |
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1 |
Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. |
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2 |
Primarily related to long-term debt securities that mature in 2018. |
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3 |
Refer to Note 5 for additional information related to the composition of our derivative portfolio. |
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December 31, 2010 |
|
Level 1 |
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Level 2 |
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Level 3 |
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Netting
Adjustment1
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Fair Value
Measurements
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Assets: |
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Trading securities |
$ |
183 |
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|
$ |
23 |
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|
$ |
3 |
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|
$ |
— |
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|
$ |
209 |
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Available-for-sale securities |
480 |
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|
5 |
|
|
— |
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|
— |
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|
485 |
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Derivatives2
|
19 |
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|
151 |
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|
4 |
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(143 |
) |
|
31 |
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Total assets |
$ |
682 |
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|
$ |
179 |
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|
$ |
7 |
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$ |
(143 |
) |
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$ |
725 |
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Liabilities: |
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Derivatives2
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$ |
2 |
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$ |
382 |
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$ |
— |
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$ |
(142 |
) |
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$ |
242 |
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Total liabilities |
$ |
2 |
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$ |
382 |
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$ |
— |
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$ |
(142 |
) |
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$ |
242 |
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1 |
Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. |
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2 |
Refer to Note 5 for additional information related to the composition of our derivative portfolio. |
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| Assets measured at fair value on a nonrecurring basis |
Assets measured at fair value on a nonrecurring basis for the years ended December 31, 2011 and 2010, are summarized below (in millions):
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Gains (Losses) |
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December 31, |
2011 |
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|
2010 |
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Exchange of investment in equity securities |
$ |
418 |
|
1 |
$ |
— |
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Valuation of shares in equity method investee |
122 |
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2 |
— |
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Equity method investments |
(41 |
) |
3 |
(15 |
) |
6 |
Available-for-sale securities |
(17 |
) |
4 |
(26 |
) |
7 |
Inventories |
(11 |
) |
5 |
— |
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Cold-drink equipment |
(1 |
) |
5 |
— |
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Investment in formerly unconsolidated subsidiary |
— |
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|
4,978 |
|
8 |
Retained investment in formerly consolidated subsidiary |
— |
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|
12 |
|
9 |
Total |
$ |
470 |
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$ |
4,949 |
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1 |
As a result of the merger of Arca and Contal, the Company recognized a gain on the exchange of the shares we previously owned in Contal for shares in the newly formed entity Arca Contal. The gain represents the difference between the carrying value of the Contal shares we relinquished and the fair value of the Arca Contal shares we received as a result of the transaction. The gain and initial carrying value of our investment were calculated based on Level 1 inputs. Refer to Note 17.
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2 |
The Company recognized a net gain of $122 million, primarily as a result of an equity method investee issuing additional shares of its own stock at per share amounts greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company sold a proportionate share of its investment in the equity method investee. The gains the Company recognized as a result of the previous transactions were partially offset by charges associated with certain of the Company's equity method investments in Japan. The gains and charges were determined using Level 1 inputs. Refer to Note 17.
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3 |
The Company recognized impairment charges of $41 million related to an investment in an entity accounted for under the equity method of accounting. Subsequent to the recognition of these impairment charges, the Company's remaining financial exposure related to this entity is not significant. This charge was determined using Level 3 inputs. Refer to Note 17.
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4 |
The Company recognized other-than-temporary impairment charges of $17 million on certain available-for-sale securities. The Company determined the fair value of these securities based on Level 1 inputs. Refer to Note 17.
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5 |
These assets primarily consisted of Company-owned inventory as well as cold-drink equipment that were damaged or lost as a result of the natural disasters in Japan on March 11, 2011. We recorded impairment charges of $11 million and $1 million related to Company-owned inventory and cold-drink equipment, respectively. These charges were determined using Level 3 inputs based on the carrying value of the inventory and cold-drink equipment prior to the disasters. Refer to Note 17.
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6 |
The Company recognized an other-than-temporary impairment charge of $15 million. The carrying value of the Company's investment prior to recognizing the impairment was $15 million. The Company determined that the fair value of the investment was zero based on Level 3 inputs. Refer to Note 17.
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7 |
The Company recognized other-than-temporary impairment charges on certain available-for-sale securities. The aggregate carrying value of these securities prior to recognizing the impairment charges was $131 million. The Company determined the fair value of these securities based on Level 1 and Level 2 inputs. The fair value of the Level 2 security was based on a dealer quotation. Refer to Note 17.
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8 |
The Company recognized a gain on our previously held investment in CCE, which had been accounted for under the equity method of accounting prior to our acquisition of CCE's North American business. Accounting principles generally accepted in the United States require the acquirer to remeasure its previously held noncontrolling equity interest in the acquired entity to fair value as of the acquisition date and recognize any gains or losses in earnings. The Company remeasured our equity interest in CCE based on Level 1 inputs. Refer to Note 2 and Note 17.
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9 |
The Company sold 50 percent of our investment in Leão Junior, which was a wholly owned subsidiary prior to this transaction. The gain on the transaction consisted of two parts: (1) the difference between the consideration received and 50 percent of the carrying value of our investment and (2) the fair value adjustment for our remaining 50 percent ownership. The gain in the table above represents the portion of the total gain related to the remeasurement of our retained investment in Leão Junior, which was based on Level 3 inputs. Refer to Note 17 for further discussion of this transaction.
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| Summary of the fair value of pension plan assets for U.S. and non-U.S. pension plans |
The following table summarizes the levels within the fair value hierarchy used to determine the fair value of our pension plan assets for our U.S. and non-U.S. pension plans as of December 31, 2011 and 2010 (in millions):
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December 31, 2011 |
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December 31, 2010 |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Cash and cash equivalents |
$ |
152 |
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$ |
75 |
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$ |
— |
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$ |
227 |
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$ |
50 |
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$ |
76 |
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|
— |
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$ |
126 |
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Equity securities: |
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U.S.-based companies |
1,366 |
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|
15 |
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|
14 |
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1,395 |
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|
1,325 |
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|
14 |
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|
15 |
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|
1,354 |
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International-based companies |
865 |
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|
82 |
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|
6 |
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|
953 |
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|
689 |
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|
49 |
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|
— |
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|
738 |
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Fixed-income securities: |
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Government bonds |
— |
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|
773 |
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|
— |
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|
773 |
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|
— |
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|
431 |
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|
— |
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|
431 |
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Corporate bonds and debt securities |
— |
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|
718 |
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|
— |
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|
718 |
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|
— |
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|
645 |
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|
— |
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|
645 |
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Mutual, pooled and commingled funds |
167 |
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|
557 |
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|
5 |
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|
729 |
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|
248 |
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|
863 |
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|
20 |
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1,131 |
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Hedge funds / limited partnerships |
— |
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|
140 |
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|
349 |
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|
489 |
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|
— |
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|
121 |
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|
317 |
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|
438 |
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Real estate |
— |
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|
— |
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|
270 |
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|
270 |
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|
— |
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|
— |
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|
242 |
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|
242 |
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Other |
— |
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|
99 |
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|
518 |
|
1 |
617 |
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|
3 |
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|
86 |
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|
303 |
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1 |
392 |
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Total |
$ |
2,550 |
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$ |
2,459 |
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$ |
1,162 |
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$ |
6,171 |
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$ |
2,315 |
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$ |
2,285 |
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$ |
897 |
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$ |
5,497 |
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1 |
Includes $514 million and $299 million of purchased annuity contracts as of December 31, 2011 and 2010, respectively.
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| Reconciliation of the beginning and ending balance of Level 3 assets for U.S. and non-U.S. pension plans |
The following table provides a reconciliation of the beginning and ending balance of Level 3 assets for our U.S. and non-U.S. pension plans for the years ended December 31, 2011 and 2010 (in millions):
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Corporate
Bonds and
Debt Securities
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Hedge
Funds/Limited
Partnerships
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Real Estate |
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Equity
Securities
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Mutual,
Pooled and
Commingled
Funds
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Other |
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Total |
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2010 |
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Balance at beginning of year |
$ |
10 |
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$ |
80 |
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$ |
153 |
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|
$ |
— |
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$ |
— |
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|
$ |
45 |
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|
$ |
288 |
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Actual return on plan assets: |
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Related to assets still held at the reporting date |
— |
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|
19 |
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|
4 |
|
|
5 |
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|
(1 |
) |
|
10 |
|
|
37 |
|
Related to assets sold during the year |
— |
|
|
(3 |
) |
|
— |
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|
— |
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|
1 |
|
|
(1 |
) |
|
(3 |
) |
Purchases, sales and settlements — net |
(10 |
) |
|
7 |
|
|
(36 |
) |
|
10 |
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|
(4 |
) |
|
288 |
|
|
255 |
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Business combinations and divestitures — net1
|
— |
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|
213 |
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|
121 |
|
|
— |
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|
24 |
|
|
5 |
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|
363 |
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Transfers in or out of Level 3 — net |
— |
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|
1 |
|
|
— |
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|
— |
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|
— |
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(5 |
) |
|
(4 |
) |
Translation |
— |
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|
— |
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|
— |
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|
— |
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|
— |
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|
(39 |
) |
|
(39 |
) |
Balance at end of year |
$ |
— |
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|
$ |
317 |
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|
$ |
242 |
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$ |
15 |
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$ |
20 |
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$ |
303 |
|
2 |
$ |
897 |
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2011 |
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Balance at beginning of year |
$ |
— |
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|
$ |
317 |
|
|
$ |
242 |
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|
$ |
15 |
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|
$ |
20 |
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|
$ |
303 |
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|
$ |
897 |
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Actual return on plan assets: |
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Related to assets still held at the reporting date |
— |
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|
9 |
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|
35 |
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|
4 |
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|
(5 |
) |
|
61 |
|
|
104 |
|
Related to assets sold during the year |
— |
|
|
(3 |
) |
|
(5 |
) |
|
— |
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|
6 |
|
|
— |
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|
(2 |
) |
Purchases, sales and settlements — net |
— |
|
|
26 |
|
|
(2 |
) |
|
(1 |
) |
|
(16 |
) |
|
146 |
|
|
153 |
|
Business combinations and divestitures — net |
— |
|
|
— |
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|
— |
|
|
— |
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|
— |
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|
— |
|
|
— |
|
Transfers in or out of Level 3 — net |
— |
|
|
1 |
|
|
— |
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|
2 |
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|
— |
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|
2 |
|
|
5 |
|
Translation |
— |
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|
(1 |
) |
|
— |
|
|
— |
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|
— |
|
|
6 |
|
|
5 |
|
Balance at end of year |
$ |
— |
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|
$ |
349 |
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|
$ |
270 |
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|
$ |
20 |
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$ |
5 |
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$ |
518 |
|
2 |
$ |
1,162 |
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1 |
Primarily related to our acquisition of CCE's North American business and the sale of our Norwegian and Swedish bottling operations to New CCE. Refer to Note 2. |
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2 |
Includes $514 million and $299 million of purchased annuity contracts as of December 31, 2011 and 2010, respectively.
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| Summary of the fair value of postretirement benefit plan assets |
The following table summarizes the levels within the fair value hierarchy used to determine the fair value of our other postretirement benefit plan assets as of December 31, 2011 and 2010 (in millions):
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December 31, 2011 |
|
December 31, 2010 |
|
Level 1 |
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Level 2 |
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Level 3 1
|
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Total |
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|
Level 1 |
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Level 2 |
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Level 3 1
|
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|
Total |
|
Cash and cash equivalents |
$ |
— |
|
|
$ |
86 |
|
|
$ |
— |
|
|
$ |
86 |
|
|
$ |
— |
|
|
$ |
84 |
|
|
$ |
— |
|
|
$ |
84 |
|
Equity securities: |
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|
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U.S.-based companies |
70 |
|
|
— |
|
|
— |
|
|
70 |
|
|
75 |
|
|
— |
|
|
— |
|
|
75 |
|
International-based companies |
13 |
|
|
— |
|
|
— |
|
|
13 |
|
|
14 |
|
|
— |
|
|
— |
|
|
14 |
|
Fixed-income securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Government bonds |
— |
|
|
2 |
|
|
— |
|
|
2 |
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
Corporate bonds and debt securities |
— |
|
|
6 |
|
|
— |
|
|
6 |
|
|
— |
|
|
6 |
|
|
— |
|
|
6 |
|
Mutual, pooled and commingled funds |
— |
|
|
3 |
|
|
— |
|
|
3 |
|
|
— |
|
|
3 |
|
|
— |
|
|
3 |
|
Hedge funds / limited partnerships |
— |
|
|
— |
|
|
2 |
|
|
2 |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
Real estate |
— |
|
|
— |
|
|
2 |
|
|
2 |
|
|
— |
|
|
— |
|
|
2 |
|
|
2 |
|
Other |
— |
|
|
1 |
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
Total |
$ |
83 |
|
|
$ |
98 |
|
|
$ |
4 |
|
|
$ |
185 |
|
|
$ |
89 |
|
|
$ |
95 |
|
|
$ |
3 |
|
|
$ |
187 |
|
|
|
1 |
Level 3 assets are not a significant portion of other postretirement benefit plan assets. |
|