Significant Operating and Nonoperating Items |
3 Months Ended |
|---|---|
Mar. 31, 2017 | |
| Significant Operating and Nonoperating Items | |
| Significant Operating and Nonoperating Items |
SIGNIFICANT OPERATING AND NONOPERATING ITEMS
Other Operating Charges
During the three months ended March 31, 2017, the Company recorded other operating charges of $308 million. These charges primarily consisted of $139 million related to the Company's productivity and reinvestment program and charges of $104 million related to certain intangible assets. The charges related to intangible assets included an $84 million impairment of CCR goodwill and impairments of $20 million related to Venezuelan intangible assets. In addition, other operating charges included $57 million related to costs incurred to refranchise certain of our bottling operations. These costs include, among other items, internal and external costs for individuals directly working on the refranchising efforts, severance, and costs associated with the implementation of information technology systems to facilitate consistent data standards and availability throughout our North America bottling system. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives. Refer to Note 1 for additional information about the Venezuelan intangible assets and Note 14 for information on how the Company determined the asset impairment charges. Refer to Note 15 for the impact these charges had on our operating segments.
During the three months ended April 1, 2016, the Company incurred other operating charges of $311 million. These charges included $63 million due to the Company's productivity and reinvestment program and $199 million due to the integration of our German bottling operations. In addition, the Company recorded charges of $45 million related to costs incurred to refranchise certain of our bottling operations. Refer to Note 11 for additional information on the Company's productivity, integration and restructuring initiatives and Note 15 for the impact these charges had on our operating segments.
Other Nonoperating Items
Equity Income (Loss) — Net
During the three months ended March 31, 2017 and April 1, 2016, the Company recorded net charges of $58 million and $3 million, respectively. These amounts primarily represent the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 15 for the impact these items had on our operating segments.
Other Income (Loss) — Net
During the three months ended March 31, 2017, the Company recognized losses of $497 million due to the refranchising of certain bottling territories in North America and charges of $106 million primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2 for additional information on the North America refranchising and the conversion payments. Refer to Note 15 for the impact these items had on our operating segments.
During the three months ended April 1, 2016, the Company recognized losses of $369 million due to the refranchising of certain bottling territories in North America, partially offset by a gain of $18 million resulting from the Company's disposal of its investment in Keurig. Refer to Note 2 for additional information on the North America refranchising and the Keurig investment disposal. Refer to Note 15 for the impact these items had on our operating segments.
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