Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.2.0.727
Operating Segments
 6 Months Ended
Jul. 03, 2015
Operating Segments [Abstract]  
Operating Segments
OPERATING SEGMENTS
Information about our Company's operations as of and for the three months ended July 3, 2015 and June 27, 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
$
651

$
1,284

$
955

$
5,911

$
1,413

$
1,917

$
25

$
—

$
12,156

Intersegment
7

151

18

6

188

13

—

(383
)
—

Total net revenues
658

1,435

973

5,917

1,601

1,930

25

(383
)
12,156

Operating income (loss)
275

836

525

887

761

31

(780
)
—

2,535

Income (loss) before income taxes
287

843

526

874

766

231

834

—

4,361

Identifiable operating assets
1,332

3,282

2,190

33,657

1,880

6,910

28,514

—

77,765

Noncurrent investments
1,110

88

711

45

163

8,507

5,149

—

15,773

2014
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
732

$
1,385

$
1,105

$
5,710

$
1,550

$
2,042

$
50

$
—

$
12,574

Intersegment
—

184

13

7

173

18

—

(395
)
—

Total net revenues
732

1,569

1,118

5,717

1,723

2,060

50

(395
)
12,574

Operating income (loss)
290

892

633

827

846

38

(356
)
—

3,170

Income (loss) before income taxes
313

904

636

682

851

254

(256
)
—

3,384

Identifiable operating assets
1,411

4,014

2,871

34,426

2,117

7,119

29,073

—

81,031

Noncurrent investments
1,189

115

807

51

149

9,557

2,590

—

14,458

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 July 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 $3 million for Eurasia and Africa, $3 million for Latin America, $79 million for North America, $2 million for Asia Pacific, $95 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 for additional information on each of the Company's productivity, restructuring and integration initiatives.
•
Operating income (loss) and income (loss) before income taxes were reduced by a $380 million for Corporate due to an impairment charge primarily related to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction. Refer to Note 2 and Note 10.
•
Operating income (loss) and income (loss) before income taxes were reduced by $100 million for Corporate as a result of a cash donation to The Coca-Cola Foundation. Refer to Note 10.
•
Income (loss) before income taxes was increased by $1,402 million for Corporate as a result of the Monster Transaction. Refer to Note 2 and Note 10.
•
Income (loss) before income taxes was reduced by $12 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 $5 million for Europe and $4 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.
During the three months ended June 27, 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 $58 million for North America, $1 million for Asia Pacific, $66 million for Bottling Investments and $30 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.
•
Operating income (loss) and income (loss) before income taxes were reduced by $25 million for Bottling Investments as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. Refer to Note 10.
•
Income (loss) before income taxes was reduced by $21 million for Corporate as a result of a write-down of receivables from our bottling partner in Venezuela due to limited government-approved exchange rate conversion mechanisms. Refer to Note 1 and Note 10.
•
Income (loss) before income taxes was reduced by $140 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 $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.
Information about our Company's operations as of and for the six months ended July 3, 2015 and June 27, 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
$
1,289

$
2,352

$
2,002

$
11,008

$
2,569

$
3,582

$
65

$
—

$
22,867

Intersegment
7

295

37

10

317

26

—

(692
)
—

Total net revenues
1,296

2,647

2,039

11,018

2,886

3,608

65

(692
)
22,867

Operating income (loss)
554

1,552

1,103

1,398

1,305

45

(1,126
)
—

4,831

Income (loss) before income taxes
573

1,567

1,114

1,361

1,314

230

183

—

6,342

2014
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
1,390

$
2,519

$
2,199

$
10,500

$
2,760

$
3,699

$
83

$
—

$
23,150

Intersegment
—

343

30

10

278

34

—

(695
)
—

Total net revenues
1,390

2,862

2,229

10,510

3,038

3,733

83

(695
)
23,150

Operating income (loss)
593

1,611

1,301

1,255

1,403

12

(629
)
—

5,546

Income (loss) before income taxes
621

1,635

1,303

1,107

1,411

276

(764
)
—

5,589


During the six months ended July 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 $15 million for Eurasia and Africa, $3 million for Latin America, $154 million for North America, $129 million for Bottling Investments and $24 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 $3 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.
•
Operating income (loss) and income (loss) before income taxes were reduced by a $380 million for Corporate due to an impairment charge primarily related to the discontinuation of the energy products in the glacéau portfolio as a result of the Monster Transaction. Refer to Note 2 and Note 10.
•
Operating income (loss) and income (loss) before income taxes were reduced by $100 million for Corporate as a result of a cash donation to The Coca-Cola Foundation. Refer to Note 10.
•
Income (loss) before income taxes was increased by $1,402 million for Corporate as a result of the Monster Transaction. Refer to Note 2 and Note 10.
•
Income (loss) before income taxes was reduced by $33 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.
•
Income (loss) before income taxes was reduced by $6 million for Europe and $76 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.
During the six months ended June 27, 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 $133 million for North America, $8 million for Asia Pacific, $108 million for Bottling Investments and $34 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.
•
Operating income (loss) and income (loss) before income taxes were reduced by $25 million for Bottling Investments as a result of the restructuring and transition of the Company's Russian juice operations to an existing joint venture with an unconsolidated bottling partner. Refer to Note 10.
•
Income (loss) before income taxes was reduced by $21 million for Bottling Investments and $247 million for Corporate due to the expansion of the Venezuelan government's currency conversion markets, including a write-down of receivables from our bottling partner in Venezuela as well as our proportionate share of the charge incurred by this bottler, an equity method investee. Refer to Note 1 and Note 10.
•
Income (loss) before income taxes was reduced by $140 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 $12 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.