| Operating Segments |
OPERATING SEGMENTS
Effective January 1, 2019, we established a new operating segment, Global Ventures, which includes the results of Costa, which we acquired in January 2019, and the results of our innocent and doğadan businesses as well as fees earned pursuant to distribution coordination agreements between the Company and Monster. Accordingly, all prior period operating segment and Corporate information presented herein has been adjusted to reflect this change in our organizational structure.
Information about our Company's continuing operations by operating segment and Corporate is as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe, Middle East & Africa |
|
Latin
America |
|
North
America |
|
Asia Pacific |
|
Global Ventures |
|
Bottling
Investments |
|
Corporate |
|
Eliminations |
|
Consolidated |
|
|
As of and for the three months ended March 29, 2019 |
|
|
|
|
|
|
|
|
|
|
Net operating revenues: |
|
|
|
|
|
|
|
|
|
|
Third party |
$ |
1,634 |
|
$ |
896 |
|
$ |
2,681 |
|
$ |
1,060 |
|
$ |
583 |
|
$ |
996 |
|
$ |
32 |
|
$ |
— |
|
$ |
7,882 |
|
|
Intersegment |
138 |
|
— |
|
2 |
|
127 |
|
2 |
|
— |
|
— |
|
(131 |
) |
138 |
|
1 |
Total net operating revenues |
1,772 |
|
896 |
|
2,683 |
|
1,187 |
|
585 |
|
996 |
|
32 |
|
(131 |
) |
8,020 |
|
|
Operating income (loss) |
978 |
|
496 |
|
586 |
|
542 |
|
66 |
|
1 |
|
(333 |
) |
— |
|
2,336 |
|
|
|
Income (loss) from continuing
operations before income taxes
|
988 |
|
491 |
|
537 |
|
550 |
|
68 |
|
(200 |
) |
(302 |
) |
— |
|
2,132 |
|
|
Identifiable operating assets |
8,379 |
|
1,838 |
|
18,316 |
|
2,088 |
|
7,350 |
|
4,449 |
|
19,102 |
|
— |
|
61,522 |
|
2 |
Noncurrent investments |
719 |
|
786 |
|
343 |
|
223 |
|
— |
|
14,354 |
|
3,773 |
|
— |
|
20,198 |
|
|
As of and for the three months ended March 30, 2018 |
|
|
|
|
|
|
|
|
|
|
Net operating revenues: |
|
|
|
|
|
|
|
|
|
|
Third party |
$ |
1,537 |
|
$ |
978 |
|
$ |
2,598 |
|
$ |
1,109 |
|
$ |
193 |
|
$ |
1,051 |
|
$ |
11 |
|
$ |
— |
|
$ |
7,477 |
|
|
Intersegment |
149 |
|
19 |
|
54 |
|
106 |
|
1 |
|
— |
|
— |
|
(180 |
) |
149 |
|
1 |
Total net operating revenues |
1,686 |
|
997 |
|
2,652 |
|
1,215 |
|
194 |
|
1,051 |
|
11 |
|
(180 |
) |
7,626 |
|
|
Operating income (loss) |
914 |
|
571 |
|
503 |
|
562 |
|
29 |
|
(461 |
) |
(307 |
) |
— |
|
1,811 |
|
|
|
Income (loss) from continuing
operations before income taxes
|
927 |
|
565 |
|
500 |
|
571 |
|
32 |
|
(388 |
) |
(374 |
) |
— |
|
1,833 |
|
|
Identifiable operating assets |
8,459 |
|
1,990 |
|
17,697 |
|
2,323 |
|
1,028 |
|
4,342 |
|
27,760 |
|
— |
|
63,599 |
|
3 |
Noncurrent investments |
1,239 |
|
889 |
|
119 |
|
185 |
|
— |
|
16,506 |
|
3,579 |
|
— |
|
22,517 |
|
|
As of December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
Identifiable operating assets |
$ |
7,414 |
|
$ |
1,715 |
|
$ |
17,519 |
|
$ |
1,996 |
|
$ |
968 |
|
$ |
4,135 |
|
$ |
22,649 |
|
$ |
— |
|
$ |
56,396 |
|
4 |
Noncurrent investments |
789 |
|
784 |
|
400 |
|
216 |
|
— |
|
14,367 |
|
3,718 |
|
— |
|
20,274 |
|
|
1 Intersegment revenues do not eliminate on a consolidated basis due to intercompany sales to our discontinued operations.
2 Identifiable operating assets excludes $6,627 million of assets held for sale — discontinued operations.
3 Identifiable operating assets excludes $7,166 million of assets held for sale — discontinued operations.
4 Identifiable operating assets excludes $6,546 million of assets held for sale — discontinued operations.
During the three months ended March 29, 2019, the results of our operating segments and Corporate were impacted by the following items:
|
|
• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $1 million for Europe, Middle East and Africa, $17 million for North America, $2 million for Bottling Investments and $48 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 13.
|
|
|
• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $46 million for Corporate related to transaction costs associated with the purchase of Costa, which we acquired in January 2019. Refer to Note 2.
|
|
|
• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $11 million for Bottling Investments related to costs incurred to refranchise certain of our North America bottling operations. Refer to Note 12.
|
|
|
• |
Income (loss) from continuing operations before income taxes was reduced by $286 million for Bottling Investments due to an other-than-temporary impairment charge related to CCBJHI, an equity method investee. Refer to Note 16.
|
|
|
• |
Income (loss) from continuing operations before income taxes was increased by $149 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.
|
|
|
• |
Income (loss) from continuing operations before income taxes was reduced by $121 million for Corporate resulting from a loss in conjunction with our acquisition of the remaining equity ownership interest in CHI. Refer to Note 12 and Note 16.
|
|
|
• |
Income (loss) from continuing operations before income taxes was reduced by $57 million for North America due to an other-than-temporary impairment charge related to one of our equity method investees. Refer to Note 16.
|
|
|
• |
Income (loss) from continuing operations before income taxes was reduced by $42 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.
|
|
|
• |
Income (loss) from continuing operations before income taxes was increased by $39 million for Corporate related to the sale of a portion of our equity ownership interest in Andina. Refer to Note 2.
|
During the three months ended March 30, 2018, the results of our operating segments and Corporate were impacted by the following items:
|
|
• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $2 million for Europe, Middle East and Africa, $2 million for Latin America, $52 million for North America, $6 million for Bottling Investments and $33 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 13.
|
|
|
• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $390 million for Bottling Investments due to asset impairment charges. Refer to Note 16.
|
|
|
• |
Operating income (loss) and income (loss) from continuing operations before income taxes were reduced by $45 million for Bottling Investments due to costs incurred to refranchise certain of our bottling operations.
|
|
|
• |
Income (loss) from continuing operations before income taxes was reduced by $68 million for Bottling Investments and increased by $17 million for Corporate due to the Company's proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.
|
|
|
• |
Income (loss) from continuing operations before income taxes was reduced by $85 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.
|
|
|
• |
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.
|
|
|
• |
Income (loss) from continuing operations before income taxes was reduced by $19 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.
|
|