Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v2.4.1.9
Operating Segments
 3 Months Ended
Apr. 03, 2015
Operating Segments [Abstract]  
Operating Segments
OPERATING SEGMENTS
Information about our Company's operations as of and for the three months ended April 3, 2015 and March 28, 2014, by operating segment, is as follows (in millions):
 
Eurasia
& Africa

Europe

Latin
America

North
America

Asia Pacific

Bottling
Investments

Corporate

Eliminations

Consolidated

2015
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
638

$
1,068

$
1,047

$
5,097

$
1,156

$
1,665

$
40

$
—

$
10,711

Intersegment
—

144

19

4

129

13

—

(309
)
—

Total net revenues
638

1,212

1,066

5,101

1,285

1,678

40

(309
)
10,711

Operating income (loss)
279

716

578

511

544

14

(346
)
—

2,296

Income (loss) before income taxes
286

724

588

487

548

(1
)
(651
)
—

1,981

Identifiable operating assets
1,298

3,211

2,215

33,471

1,794

6,944

28,188

—

77,121

Noncurrent investments
1,113

88

684

50

158

8,718

3,084

—

13,895

2014
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
658

$
1,134

$
1,094

$
4,790

$
1,210

$
1,657

$
33

$
—

$
10,576

Intersegment
—

159

17

3

105

16

—

(300
)
—

Total net revenues
658

1,293

1,111

4,793

1,315

1,673

33

(300
)
10,576

Operating income (loss)
303

719

668

428

557

(26
)
(273
)
—

2,376

Income (loss) before income taxes
308

731

667

425

560

22

(508
)
—

2,205

Identifiable operating assets
1,333

3,868

2,809

34,255

1,996

7,156

26,745

—

78,162

Noncurrent investments
1,145

109

602

50

145

9,183

1,893

—

13,127

As of December 31, 2014
 
 
 
 
 
 
 
 
 
Identifiable operating assets
$
1,298

$
3,358

$
2,426

$
33,066

$
1,793

$
6,975

$
29,482

$
—

$
78,398

Noncurrent investments
1,081

90

757

48

157

8,781

2,711

—

13,625


During the three months ended April 3, 2015, the results of our operating segments were impacted by the following items:
•
Operating income (loss) and income (loss) before income taxes were reduced by $12 million for Eurasia and Africa, $75 million for North America, $34 million for Bottling Investments and $20 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Operating income (loss) and income (loss) before income taxes were increased by $11 million for Europe and $5 million for Asia Pacific due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. Refer to Note 10 and Note 11 for additional information on each of the Company's productivity, restructuring and integration initiatives.
•
Income (loss) before income taxes was reduced by $1 million for Europe and $72 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10.
•
Income (loss) before income taxes was reduced by $21 million for North America due to the refranchising of certain territories in North America. Refer to Note 2 and Note 10.
•
Income (loss) before income taxes was reduced by $320 million for Corporate due to charges the Company recognized on the early extinguishment of debt. Refer to Note 6 and Note 10.
•
Income (loss) before income taxes was reduced by $33 million for Latin America and $102 million for Corporate due to the remeasurement of the net monetary assets of our local Venezuelan subsidiary into U.S. dollars using the SIMADI exchange rate, an impairment of a Venezuelan trademark, and a write-down the Company recorded on receivables from our bottling partner in Venezuela. Refer to Note 1 and Note 10.
•
Income (loss) before income taxes was reduced by $19 million for Corporate as a result of the remeasurement of our previously held equity interest in a South African bottler to fair value upon our acquisition of the bottling operations. Refer to Note 2 and Note 10.
•
Income (loss) before income taxes was reduced by $6 million for Corporate as a result of a Brazilian bottling entity's majority interest owners exercising their option to acquire from us an additional equity interest at an exercise price less than that of our carrying value. Refer to Note 2 and Note 10.
During the three months ended March 28, 2014, the results of our operating segments were impacted by the following items:
•
Operating income (loss) and income (loss) before income taxes were reduced by $75 million for North America, $7 million for Asia Pacific, $42 million for Bottling Investments and $4 million for Corporate due to the Company's productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 10 and Note 11.
•
Income (loss) before income taxes was reduced by $21 million for Bottling Investments and $226 million for Corporate due to the devaluation of the Venezuelan bolivar, including our proportionate share of the charge incurred by an equity method investee that has operations in Venezuela. Refer to Note 1 and Note 10.
•
Income (loss) before income taxes was reduced by $6 million for Bottling Investments due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10.