| Operating Segments |
OPERATING SEGMENTS
Information about our Company's operations by operating segment as of and for the three months ended March 31, 2017 and April 1, 2016 is as follows (in millions):
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Europe, Middle East & Africa |
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Latin
America |
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North
America |
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Asia Pacific |
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Bottling
Investments |
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Corporate |
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Eliminations |
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Consolidated |
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2017 |
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Net operating revenues: |
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Third party |
$ |
1,632 |
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$ |
913 |
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$ |
1,622 |
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$ |
1,078 |
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$ |
3,844 |
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$ |
29 |
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$ |
— |
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$ |
9,118 |
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Intersegment |
— |
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13 |
|
772 |
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130 |
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23 |
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— |
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(938 |
) |
— |
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Total net revenues |
1,632 |
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926 |
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2,394 |
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1,208 |
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3,867 |
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29 |
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(938 |
) |
9,118 |
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Operating income (loss) |
867 |
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505 |
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569 |
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545 |
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(110 |
) |
(394 |
) |
— |
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1,982 |
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Income (loss) before income taxes |
885 |
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507 |
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473 |
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549 |
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(542 |
) |
(365 |
) |
— |
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1,507 |
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Identifiable operating assets |
5,044 |
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1,959 |
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17,040 |
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2,157 |
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15,165 |
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31,853 |
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— |
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73,218 |
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Noncurrent investments |
1,345 |
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874 |
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106 |
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166 |
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12,056 |
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3,436 |
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— |
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17,983 |
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2016 |
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Net operating revenues: |
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Third party |
$ |
1,609 |
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$ |
917 |
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$ |
1,421 |
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$ |
1,102 |
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$ |
5,251 |
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$ |
(18 |
) |
$ |
— |
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$ |
10,282 |
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Intersegment |
141 |
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18 |
|
943 |
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133 |
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41 |
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3 |
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(1,279 |
) |
— |
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Total net revenues |
1,750 |
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935 |
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2,364 |
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1,235 |
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5,292 |
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(15 |
) |
(1,279 |
) |
10,282 |
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Operating income (loss) |
927 |
|
523 |
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581 |
|
551 |
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(118 |
) |
(323 |
) |
— |
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2,141 |
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Income (loss) before income taxes |
950 |
|
518 |
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580 |
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554 |
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(432 |
) |
(276 |
) |
— |
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1,894 |
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Identifiable operating assets |
4,316 |
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2,108 |
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16,776 |
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2,178 |
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22,266 |
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29,823 |
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— |
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77,467 |
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Noncurrent investments |
1,356 |
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692 |
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106 |
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160 |
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8,170 |
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3,312 |
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— |
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13,796 |
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As of December 31, 2016 |
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Identifiable operating assets |
$ |
4,067 |
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$ |
1,785 |
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$ |
16,566 |
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$ |
2,024 |
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$ |
15,973 |
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$ |
29,606 |
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$ |
— |
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$ |
70,021 |
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Noncurrent investments |
1,302 |
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804 |
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109 |
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164 |
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11,456 |
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3,414 |
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— |
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17,249 |
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During the three months ended March 31, 2017, the results of our operating segments were impacted by the following items:
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $2 million for Europe, Middle East and Africa, $35 million for North America, $1 million for Asia Pacific, $14 million for Bottling Investments and $87 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.
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $57 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 10.
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Operating income (loss) and income (loss) before income taxes were reduced by $84 million for Bottling Investments and $20 million for Corporate due to impairment charges recorded on certain of the Company's intangible assets. Refer to Note 1 and Note 10.
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• |
Income (loss) before income taxes was reduced by $4 million for Europe, Middle East and Africa, $53 million for Bottling Investments and $1 million for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 10.
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Income (loss) before income taxes was reduced by $106 million for North America 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.
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• |
Income (loss) before income taxes was reduced by $497 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 10.
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During the three months ended April 1, 2016, the results of our operating segments were impacted by the following items:
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $3 million for Europe, Middle East and Africa, $31 million for North America, $1 million for Asia Pacific, $220 million for Bottling Investments and $7 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.
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Operating income (loss) and income (loss) before income taxes were reduced by $45 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 2 and Note 10.
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Income (loss) before income taxes was reduced by $369 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 10.
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Income (loss) before income taxes was reduced by $3 million for Bottling Investments due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. Refer to Note 10.
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• |
Income (loss) before income taxes was increased by $18 million for Corporate as a result of the disposal of our investment in Keurig. Refer to Note 2.
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