Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.3.0.814
Operating Segments
 9 Months Ended
Oct. 02, 2015
Operating Segments [Abstract]  
Operating Segments
OPERATING SEGMENTS
Information about our Company's operations as of and for the three months ended October 2, 2015 and September 26, 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
$
588

$
1,176

$
993

$
5,635

$
1,247

$
1,733

$
55

$
—

$
11,427

Intersegment
15

154

19

4

159

13

—

(364
)
—

Total net revenues
603

1,330

1,012

5,639

1,406

1,746

55

(364
)
11,427

Operating income (loss)
208

722

538

681

571

(11
)
(330
)
—

2,379

Income (loss) before income taxes
212

733

535

(116
)
576

150

(365
)
—

1,725

Identifiable operating assets
1,238

3,268

1,463

32,524

1,784

6,926

30,871

—

78,074

Noncurrent investments
1,076

85

673

128

166

8,134

4,672

—

14,934

2014
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
709

$
1,242

$
1,161

$
5,596

$
1,421

$
1,804

$
43

$
—

$
11,976

Intersegment
—

187

16

3

154

19

—

(379
)
—

Total net revenues
709

1,429

1,177

5,599

1,575

1,823

43

(379
)
11,976

Operating income (loss)
265

752

653

760

638

14

(371
)
—

2,711

Income (loss) before income taxes
272

763

654

486

648

205

(368
)
—

2,660

Identifiable operating assets
1,421

3,610

2,777

33,750

1,934

6,887

31,616

—

81,995

Noncurrent investments
1,162

98

790

43

158

9,381

2,687

—

14,319

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 October 2, 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 $1 million for Eurasia and Africa, $4 million for Latin America, $85 million for North America, $2 million for Asia Pacific, $97 million for Bottling Investments and $29 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 $2 million for Europe 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 $48 million for Corporate primarily due to impairment charges on certain of the Company's intangible assets. Refer to Note 10 and Note 14.
•
Income (loss) before income taxes was increased by $3 million for Eurasia and Africa 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 $794 million for North America and $21 million for Corporate primarily due to the refranchising of certain territories in North America. Refer to Note 2 and Note 10.
During the three months ended September 26, 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 $1 million for Eurasia and Africa, $2 million for Europe, $59 million for North America, $2 million for Asia Pacific, $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. Refer to Note 10 and Note 11.
•
Operating income (loss) and income (loss) before income taxes were reduced by $7 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 $270 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 $8 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 nine months ended October 2, 2015 and September 26, 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
$
1,877

$
3,528

$
2,995

$
16,643

$
3,816

$
5,315

$
120

$
—

$
34,294

Intersegment
22

449

56

14

476

39

—

(1,056
)
—

Total net revenues
1,899

3,977

3,051

16,657

4,292

5,354

120

(1,056
)
34,294

Operating income (loss)
762

2,274

1,641

2,079

1,876

34

(1,456
)
—

7,210

Income (loss) before income taxes
785

2,300

1,649

1,245

1,890

380

(182
)
—

8,067

2014
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
Third party
$
2,099

$
3,761

$
3,360

$
16,096

$
4,181

$
5,503

$
126

$
—

$
35,126

Intersegment
—

530

46

13

432

53

—

(1,074
)
—

Total net revenues
2,099

4,291

3,406

16,109

4,613

5,556

126

(1,074
)
35,126

Operating income (loss)
858

2,363

1,954

2,015

2,041

26

(1,000
)
—

8,257

Income (loss) before income taxes
893

2,398

1,957

1,593

2,059

481

(1,132
)
—

8,249


During the nine months ended October 2, 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 $16 million for Eurasia and Africa, $7 million for Latin America, $239 million for North America, $226 million for Bottling Investments and $53 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 $13 million for Europe and $1 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 $418 million for Corporate primarily due to an impairment charge 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 $827 million for North America and $21 million for Corporate primarily 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 certain long-term debt. Refer to Note 6 and Note 10.
•
Income (loss) before income taxes was reduced by $33 million for Latin America and $105 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 increased by $3 million for Eurasia and Africa and 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 nine months ended September 26, 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 $1 million for Eurasia and Africa, $2 million for Europe, $192 million for North America, $10 million for Asia Pacific, $142 million for Bottling Investments and $54 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 $32 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 $410 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 $20 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.