Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.20.1
Operating Segments
3 Months Ended
Mar. 27, 2020
Operating Segments [Abstract]  
Operating Segments OPERATING SEGMENTS
Information about our Company's 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 27, 2020
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
 
 
Third party
$
1,573

 
$
930

$
2,849

$
989

$
573

$
1,656

 
$
31

$

$
8,601

Intersegment
152

 

1

139


2

 

(294
)

Total net operating revenues
1,725

 
930

2,850

1,128

573

1,658

 
31

(294
)
8,601

Operating income (loss)
960

 
539

387

511

19

63

 
(99
)

2,380

Income (loss) before income taxes
971

 
535

402

513

18

198

 
373


3,010

Identifiable operating assets
8,172

1 
1,853

20,600

2,312

7,378

10,184

1 
24,842


75,341

Investments2
498

 
661

357

225

11

12,968

 
3,952


18,672

As of and for the Three Months Ended March 29, 2019
 
 
 
 
 
 
 
 
 
 
 
Net operating revenues:
 
 
 
 
 
 
 
 
 
 
 
Third party
$
1,634

 
$
896

$
2,681

$
1,060

$
583

$
1,808

 
$
32

$

$
8,694

Intersegment
138

 

2

127

2

2

 

(271
)

Total net operating revenues
1,772

 
896

2,683

1,187

585

1,810

 
32

(271
)
8,694

Operating income (loss)
978

 
496

586

542

66

100

 
(333
)

2,435

Income (loss) before income taxes
988

 
491

537

550

68

(100
)
 
(309
)

2,225

Identifiable operating assets
8,379

1 
1,838

18,316

2,088

7,350

10,867

1 
19,305


68,143

Investments2
719

 
786

343

223


14,360

 
3,773


20,204

As of December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Identifiable operating assets
$
8,143

1 
$
1,801

$
17,687

$
2,060

$
7,265

$
11,170

1 
$
18,376

$

$
66,502

Investments2
543

 
716

358

224

14

14,093

 
3,931


19,879


1 Property, plant and equipment — net in South Africa represented 14 percent, 14 percent and 16 percent of consolidated property, plant and equipment — net as of March 27, 2020, March 29, 2019 and December 31, 2019, respectively.
2 Principally equity method investments and other investments in bottling companies.
During the three months ended March 27, 2020, the results of our operating segments and Corporate were impacted by the following items:
Operating income (loss) and income (loss) before income taxes were reduced by $152 million for North America due to an impairment charge related to a trademark, which was primarily driven by revised projections of future operating results due to reduced availability at retail customer outlets and a change in brand focus in the Company's portfolio. Refer to Note 15.
Operating income (loss) and income (loss) before income taxes were reduced by $39 million for Corporate due to the Company's productivity and reinvestment program. Refer to Note 12.
Operating income (loss) and income (loss) before income taxes were reduced by $11 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of the remaining interest in fairlife. Refer to Note 2.
Income (loss) before income taxes was increased by $902 million for Corporate in conjunction with our acquisition of the remaining interest in fairlife, which resulted from the remeasurement of our previously held equity interest in fairlife to fair value. Refer to Note 2.
Income (loss) before income taxes was increased by $18 million for Corporate related to the sale of a portion of our ownership interest in one of our equity method investments.
Income (loss) before income taxes was reduced by $392 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) before income taxes was reduced by $38 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.
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) 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 12.
Operating income (loss) and income (loss) 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) 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 11.
Income (loss) 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) 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.
Income (loss) 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 15.
Income (loss) before income taxes was reduced by $121 million for Corporate resulting from a loss in conjunction with our acquisition of the remaining interest in CHI. Refer to Note 2 and Note 15.
Income (loss) 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 15.
Income (loss) 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.