| Operating Segments |
OPERATING SEGMENTS
Information about our Company's operations by operating segment 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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As of and for the three months ended September 29, 2017 |
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Net operating revenues: |
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Third party |
$ |
1,959 |
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$ |
1,009 |
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$ |
2,308 |
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$ |
1,345 |
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$ |
2,409 |
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$ |
48 |
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$ |
— |
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$ |
9,078 |
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Intersegment |
— |
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26 |
|
442 |
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87 |
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23 |
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— |
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(578 |
) |
— |
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Total net revenues |
1,959 |
|
1,035 |
|
2,750 |
|
1,432 |
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2,432 |
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48 |
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(578 |
) |
9,078 |
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Operating income (loss) |
936 |
|
563 |
|
646 |
|
577 |
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(217 |
) |
(385 |
) |
— |
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2,120 |
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Income (loss) before income taxes |
962 |
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561 |
|
583 |
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588 |
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(673 |
) |
(347 |
) |
— |
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1,674 |
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Identifiable operating assets |
5,475 |
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1,909 |
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17,224 |
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2,146 |
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6,433 |
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34,567 |
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— |
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67,754 |
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Noncurrent investments |
1,261 |
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908 |
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105 |
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178 |
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16,800 |
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3,509 |
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— |
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22,761 |
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As of and for the three months ended September 30, 2016 |
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Net operating revenues: |
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Third party |
$ |
1,852 |
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$ |
949 |
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$ |
1,661 |
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$ |
1,315 |
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$ |
4,809 |
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$ |
47 |
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$ |
— |
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$ |
10,633 |
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Intersegment |
— |
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16 |
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1,003 |
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145 |
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31 |
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— |
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(1,195 |
) |
— |
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Total net revenues |
1,852 |
|
965 |
|
2,664 |
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1,460 |
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4,840 |
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47 |
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(1,195 |
) |
10,633 |
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Operating income (loss) |
914 |
|
435 |
|
666 |
|
583 |
|
124 |
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(451 |
) |
— |
|
2,271 |
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Income (loss) before income taxes |
922 |
|
447 |
|
653 |
|
589 |
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(734 |
) |
(449 |
) |
— |
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1,428 |
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Identifiable operating assets |
4,337 |
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1,964 |
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16,406 |
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2,257 |
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17,390 |
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33,546 |
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— |
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75,900 |
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Noncurrent investments |
1,315 |
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823 |
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123 |
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166 |
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12,223 |
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3,377 |
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— |
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18,027 |
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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 |
|
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 September 29, 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 $6 million for Europe, Middle East and Africa, $2 million for Latin America, $47 million for North America, $1 million for Asia Pacific, $15 million for Bottling Investments and $58 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 11.
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Operating income (loss) and income (loss) before income taxes were reduced by $213 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 $18 million for Corporate due to tax litigation expense. Refer to Note 7.
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Income (loss) before income taxes was reduced by $14 million for Bottling Investments and $2 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 $72 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 $762 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2.
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Income (loss) before income taxes was increased by $79 million for Corporate due to a gain recognized upon refranchising our remaining China bottling operations and related cost method investment. Refer to Note 2.
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Income (loss) before income taxes was reduced by $50 million for Corporate due to an other-than-temporary impairment charge related to one of our international equity method investees. Refer to Note 10.
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During the three months ended September 30, 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 $2 million for Europe, Middle East and Africa, $22 million for North America, $22 million for Bottling Investments and $14 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 $1 million for Latin America due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. Refer to Note 11.
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Operating income (loss) and income (loss) before income taxes were reduced by $76 million for Latin America due to the write-down we recorded related to our receivables from our bottling partner in Venezuela due to changes in exchange rates. Refer to Note 1.
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Operating income (loss) and income (loss) before income taxes were reduced by $73 million for Bottling Investments due to costs incurred to refranchise certain of our North America bottling territories. Refer to Note 10.
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Income (loss) before income taxes was reduced by $14 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 reduced by $17 million for North America 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 $1,089 million for Bottling Investments primarily 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 $21 million for Corporate due to the deconsolidation of our South African bottling operations in exchange for investments in CCBA and CCBA's South African subsidiary. Refer to Note 2.
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During the three months ended September 29, 2017 and September 30, 2016, our operating segments were impacted by acquisition and divestiture activities. Refer to Note 2.
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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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Nine Months Ended September 29, 2017 |
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Net operating revenues: |
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Third party |
$ |
5,628 |
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$ |
2,857 |
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$ |
6,216 |
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$ |
3,807 |
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$ |
9,268 |
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$ |
122 |
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$ |
— |
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$ |
27,898 |
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Intersegment |
— |
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54 |
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1,799 |
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340 |
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69 |
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— |
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(2,262 |
) |
— |
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Total net revenues |
5,628 |
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2,911 |
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8,015 |
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4,147 |
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9,337 |
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122 |
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(2,262 |
) |
27,898 |
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Operating income (loss) |
2,884 |
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1,625 |
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1,967 |
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1,835 |
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(979 |
) |
(1,152 |
) |
— |
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6,180 |
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Income (loss) before income taxes |
2,958 |
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1,627 |
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1,711 |
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1,853 |
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(1,730 |
) |
(614 |
) |
— |
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5,805 |
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Nine Months Ended September 30, 2016 |
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Net operating revenues: |
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Third party |
$ |
5,369 |
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$ |
2,787 |
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$ |
4,759 |
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$ |
3,818 |
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$ |
15,631 |
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$ |
90 |
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$ |
— |
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$ |
32,454 |
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Intersegment |
264 |
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50 |
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2,978 |
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437 |
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116 |
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5 |
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(3,850 |
) |
— |
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Total net revenues |
5,633 |
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2,837 |
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7,737 |
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4,255 |
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15,747 |
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95 |
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(3,850 |
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32,454 |
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Operating income (loss) |
2,897 |
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1,470 |
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1,982 |
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1,892 |
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222 |
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(1,192 |
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— |
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7,271 |
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Income (loss) before income taxes |
2,950 |
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1,485 |
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1,978 |
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1,903 |
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(897 |
) |
202 |
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— |
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7,621 |
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During the nine months ended September 29, 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, $3 million for Latin America, $131 million for North America, $4 million for Asia Pacific, $39 million for Bottling Investments and $176 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 11.
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $314 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 $737 million for Bottling Investments and $34 million for Corporate due to asset impairment charges. Refer to Note 1 and Note 10.
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Operating income (loss) and income (loss) before income taxes were reduced by $43 million for Corporate due to tax litigation expense. Refer to Note 7.
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• |
Income (loss) before income taxes was reduced by $50 million for Corporate due to an other-than-temporary impairment charge related to one of our international equity method investees. Refer to Note 10.
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Income (loss) before income taxes was reduced by $4 million for Europe, Middle East and Africa, $29 million for Bottling Investments and $4 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 $287 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 $1,473 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2.
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Income (loss) before income taxes was increased by $445 million for Corporate due to a gain recognized resulting from the merger of CCW and CCEJ. Refer to Note 10.
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Income (loss) before income taxes was increased by $88 million for Corporate due to a gain recognized upon refranchising our China bottling operations and related cost method investment. Refer to Note 2.
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Income (loss) before income taxes was increased by $25 million for Corporate due to Coca-Cola FEMSA, an equity method investee, issuing additional shares of its stock during the period at a per share amount greater than the carrying value of the Company's per share investment.
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Income (loss) before income taxes was reduced by $26 million for Corporate due to a charge related to our former German bottling operations.
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Income (loss) before income taxes was reduced by $38 million for Corporate due to the extinguishment of long-term debt. Refer to Note 6.
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During the nine months ended September 30, 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 $6 million for Europe, Middle East and Africa, $80 million for North America, $1 million for Asia Pacific, $300 million for Bottling Investments and $42 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 Latin America due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. Refer to Note 11.
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $76 million for Latin America due to the write-down we recorded related to our receivables from our bottling partner in Venezuela due to changes in exchange rates. Refer to Note 1.
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• |
Operating income (loss) and income (loss) before income taxes were reduced by $170 million for Bottling Investments due to costs incurred to refranchise our North America bottling territories. Refer to Note 10.
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Operating income (loss) and income (loss) before income taxes were reduced by $8 million for Bottling Investments and $29 million for Corporate related to noncapitalizable transaction costs associated with pending and closed transactions. Refer to Note 10.
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Operating income (loss) and income (loss) before income taxes were reduced by $100 million for Corporate as a result of a cash contribution to The Coca-Cola Foundation. Refer to Note 10.
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Income (loss) before income taxes was reduced by $32 million for Bottling Investments and $3 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 $17 million for North America 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 $1,657 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 increased by $1,323 million for Corporate as a result of the deconsolidation of our German bottling operations. Refer to Note 2.
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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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Income (loss) before income taxes was reduced by $21 million for Corporate due to the deconsolidation of our South African bottling operations in exchange for investments in CCBA and CCBA's South African subsidiary. Refer to Note 2.
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During the nine months ended September 29, 2017 and September 30, 2016, our operating segments were impacted by acquisition and divestiture activities. Refer to Note 2.
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