| Operating Segments |
OPERATING SEGMENTS
Information about our Company's continuing 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 28, 2018 |
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Net operating revenues: |
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Third party |
$ |
1,848 |
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$ |
1,002 |
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$ |
3,008 |
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$ |
1,351 |
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$ |
898 |
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$ |
14 |
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$ |
— |
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$ |
8,121 |
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Intersegment |
124 |
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1 |
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119 |
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72 |
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11 |
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— |
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(203 |
) |
124 |
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1 |
Total net operating revenues |
1,972 |
|
1,003 |
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3,127 |
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1,423 |
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909 |
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14 |
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(203 |
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8,245 |
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Operating income (loss) |
944 |
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642 |
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698 |
|
615 |
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(64 |
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(309 |
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— |
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2,526 |
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Income (loss) from continuing
operations before income taxes
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953 |
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637 |
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700 |
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629 |
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(240 |
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168 |
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— |
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2,847 |
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Identifiable operating assets |
8,456 |
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1,685 |
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18,088 |
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2,256 |
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2,638 |
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25,633 |
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— |
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58,756 |
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2 |
Noncurrent investments |
1,158 |
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760 |
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404 |
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220 |
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15,698 |
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3,710 |
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— |
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21,950 |
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As of and for the three months ended September 29, 2017 |
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Net operating revenues:3
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Third party |
$ |
1,959 |
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$ |
1,009 |
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$ |
2,348 |
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$ |
1,345 |
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$ |
2,369 |
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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 |
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433 |
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87 |
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23 |
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— |
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(569 |
) |
— |
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Total net operating revenues |
1,959 |
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1,035 |
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2,781 |
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1,432 |
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2,392 |
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48 |
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(569 |
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9,078 |
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Operating income (loss)3,4
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932 |
|
563 |
|
648 |
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573 |
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(46 |
) |
(425 |
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— |
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2,245 |
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Income (loss) from continuing
operations before income taxes3
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962 |
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561 |
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585 |
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588 |
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(675 |
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(347 |
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— |
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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 December 31, 2017 |
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Identifiable operating assets |
$ |
5,475 |
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$ |
1,896 |
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$ |
17,619 |
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$ |
2,072 |
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$ |
4,493 |
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$ |
27,060 |
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$ |
— |
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$ |
58,615 |
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5 |
Noncurrent investments |
1,238 |
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891 |
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112 |
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177 |
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15,998 |
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3,536 |
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— |
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21,952 |
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1 Intersegment revenues do not eliminate on a consolidated basis in the table above due to intercompany sales to our discontinued operations.
2 Identifiable operating assets excludes $6,171 million of assets held for sale — discontinued operations.
3 Amounts have been adjusted to reflect the reclassification of certain revenue streams from the Bottling Investments operating segment to the North America operating segment effective January 1, 2018.
4 Amounts have been adjusted to reflect the adoption of ASU 2017-07. Refer to Note 1.
5 Identifiable operating assets excludes $7,329 million of assets held for sale — discontinued operations.
During the three months ended September 28, 2018, the results of our operating segments were impacted by the following items:
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $39 million for North America, $10 million for Bottling Investments and $65 million for Corporate due to the Company's productivity and reinvestment program. Operating income (loss) and income (loss) from continuing operations before income taxes were increased by $4 million for Europe, Middle East and Africa, $1 million for Latin America and $2 million for Asia Pacific due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. In addition, income (loss) from continuing operations before income taxes was reduced by $35 million for Corporate due to pension settlements related to the Company's productivity and reinvestment program. Refer to Note 11, Note 12 and Note 13.
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $38 million for Bottling Investments due to costs incurred to refranchise certain of our North America bottling operations. Refer to Note 11.
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $4 million for Corporate due to tax litigation expense. Refer to Note 8 and Note 11.
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Income (loss) from continuing operations before income taxes was reduced by $275 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 11.
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Income (loss) from continuing operations before income taxes was reduced by $205 million for Bottling Investments due to an other-than-temporary impairment charge related to our equity method investee in Indonesia. Refer to Note 11 and Note 15.
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Income (loss) from continuing operations before income taxes was reduced by $12 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) from continuing operations before income taxes was increased by $370 million for Corporate related to the sale of our equity ownership in Lindley. Refer to Note 2.
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Income (loss) from continuing operations before income taxes was increased by $64 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4 and Note 11.
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Income (loss) from continuing operations before income taxes was increased by $33 million for Corporate related to economic hedging activity associated with certain acquisition and divestiture activities. Refer to Note 6 and Note 11.
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Income (loss) from continuing operations before income taxes was increased by $27 million for Corporate related to a net gain on the extinguishment of long-term debt. Refer to Note 7.
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Income (loss) from continuing operations before income taxes was increased by $21 million for Bottling Investments and reduced by $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 11.
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Income (loss) from continuing operations before income taxes was increased by $11 million for Corporate related to the refranchising of our Latin American bottling operations. Refer to Note 2.
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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) from continuing operations 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 12.
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Operating income (loss) was reduced by $47 million and income (loss) from continuing operations before income taxes was reduced by $213 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 2.
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $18 million for Corporate due to tax litigation expense. Refer to Note 8.
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Income (loss) from continuing operations 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 11.
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Income (loss) from continuing operations 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) from continuing operations 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) from continuing operations 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) from continuing operations 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 15.
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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 28, 2018 |
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Net operating revenues: |
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Third party |
$ |
5,586 |
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$ |
2,993 |
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$ |
8,679 |
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$ |
3,862 |
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$ |
3,184 |
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$ |
97 |
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$ |
— |
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$ |
24,401 |
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Intersegment |
397 |
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39 |
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245 |
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296 |
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11 |
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— |
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(591 |
) |
397 |
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1 |
Total net operating revenues |
5,983 |
|
3,032 |
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8,924 |
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4,158 |
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3,195 |
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97 |
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(591 |
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24,798 |
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Operating income (loss) |
2,953 |
|
1,807 |
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1,913 |
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1,885 |
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(581 |
) |
(913 |
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— |
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7,064 |
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Income (loss) from continuing
operations before income taxes
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2,997 |
|
1,744 |
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1,930 |
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1,915 |
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(537 |
) |
(486 |
) |
— |
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7,563 |
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Nine months ended September 29, 2017 |
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Net operating revenues:2
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Third party |
$ |
5,628 |
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$ |
2,857 |
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$ |
6,327 |
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$ |
3,807 |
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$ |
9,157 |
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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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1,774 |
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340 |
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69 |
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— |
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(2,237 |
) |
— |
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Total net operating revenues |
5,628 |
|
2,911 |
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8,101 |
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4,147 |
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9,226 |
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122 |
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(2,237 |
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27,898 |
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Operating income (loss)2,3
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2,868 |
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1,627 |
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1,977 |
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1,823 |
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(786 |
) |
(1,264 |
) |
— |
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6,245 |
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Income (loss) from continuing
operations before income taxes2
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2,958 |
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1,627 |
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1,721 |
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1,853 |
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(1,740 |
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(614 |
) |
— |
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5,805 |
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1 Intersegment revenues do not eliminate on a consolidated basis in the table above due to intercompany sales to our discontinued operations.
2 Amounts have been adjusted to reflect the reclassification of certain revenue streams from the Bottling Investments operating segment to the North America operating segment effective January 1, 2018.
3 Amounts have been adjusted to reflect the adoption of ASU 2017-07. Refer to Note 1.
During the nine months ended September 28, 2018, the results of our operating segments were impacted by the following items:
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $2 million for Latin America, $138 million for North America, $32 million for Bottling Investments and $144 million for Corporate due to the Company's productivity and reinvestment program. Operating income (loss) and income (loss) from continuing operations before income taxes were increased by $2 million for Europe, Middle East and Africa and $1 million for Asia Pacific due to the refinement of previously established accruals related to the Company's productivity and reinvestment program. In addition, income (loss) from continuing operations before income taxes was reduced by $74 million for Corporate due to pension settlements related to the Company's productivity and reinvestment program. Refer to Note 11, Note 12 and Note 13.
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $450 million for Bottling Investments due to asset impairment charges. Refer to Note 11 and Note 15.
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $117 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 11.
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Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $31 million for Corporate due to tax litigation expense. Refer to Note 8 and Note 11.
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• |
Income (loss) from continuing operations before income taxes was reduced by $379 million for Bottling Investments due to the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 11.
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• |
Income (loss) from continuing operations before income taxes was reduced by $205 million for Bottling Investments due to an other-than-temporary impairment charge related to our equity method investee in Indonesia. Income (loss) from continuing operations before income taxes was reduced by $52 million for Latin America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 11 and Note 15.
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Income (loss) from continuing operations before income taxes was reduced by $78 million for Bottling Investments and increased by $13 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 11.
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Income (loss) from continuing operations before income taxes was reduced by $47 million for Bottling Investments due to pension settlements.
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Income (loss) from continuing operations before income taxes was reduced by $33 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) from continuing operations before income taxes was reduced by $33 million for Bottling Investments primarily due to the reversal of the cumulative translation adjustments resulting from the substantial liquidation of the Company's former Russian juice operations. Refer to Note 11.
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Income (loss) from continuing operations before income taxes was increased by $370 million for Corporate related to the sale of our equity ownership in Lindley. Refer to Note 2 and Note 11.
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• |
Income (loss) from continuing operations before income taxes was increased by $47 million for Corporate related to the refranchising of our Latin American bottling operations. Refer to Note 2.
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• |
Income (loss) from continuing operations before income taxes was increased by $33 million for Corporate related to economic hedging activity associated with certain acquisition and divestiture activities. Refer to Note 6 and Note 11.
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• |
Income (loss) from continuing operations before income taxes was increased by $27 million for Corporate related to a net gain on the extinguishment of long-term debt. Refer to Note 7.
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• |
Income (loss) from continuing operations before income taxes was increased by $15 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4 and Note 11.
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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) from continuing operations 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 12.
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• |
Operating income (loss) was reduced by $133 million and income (loss) from continuing operations before income taxes was reduced by $314 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations. Refer to Note 2.
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Operating income (loss) and income (loss) from continuing operations 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 11.
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• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $43 million for Corporate due to tax litigation expense. Refer to Note 8.
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• |
Income (loss) from continuing operations 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 15.
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• |
Income (loss) from continuing operations 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 11.
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• |
Income (loss) from continuing operations 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) from continuing operations 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) from continuing operations 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 11.
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• |
Income (loss) from continuing operations 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) from continuing operations 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) from continuing operations 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) from continuing operations before income taxes was reduced by $38 million for Corporate due to the early extinguishment of long-term debt.
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