Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.21.1
Operating Segments
 3 Months Ended
Apr. 02, 2021
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 April 2, 2021                
Net operating revenues:                
Third party $ 1,462  $ 909  $ 2,936  $ 1,232  $ 570  $ 1,894  $ 17  $ —  $ 9,020 
Intersegment 161  —  1  170  —  2  —  (334) — 
Total net operating revenues 1,623  909  2,937  1,402  570  1,896  17  (334) 9,020 
Operating income (loss) 820  552  792  686  26  141  (295) —  2,722 
Income (loss) before income taxes 830  555  816  695  27  317  (477) —  2,763 
Identifiable operating assets 8,335 
2
 1,650  19,792  2,332 
3
 7,843  10,426 
2,3
 19,843  —  70,221 
Investments1
466  595  343  249  4  13,833  4,282  —  19,772 
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 
2
 1,853  20,600  2,312  7,378  10,184 
2
 24,842  —  75,341 
Investments1
498  661  357  225  11  12,968  3,952  —  18,672 
As of December 31, 2020                
Identifiable operating assets $ 8,098 
2
 $ 1,597  $ 19,444  $ 2,073 
3
 $ 7,575  $ 10,521 
2,3
 $ 17,903  $ —  $ 67,211 
Investments1
517  603  345  240  4  14,183  4,193  —  20,085 
1 Principally equity method investments and other investments in bottling companies.
2 Property, plant and equipment — net in South Africa represented 15 percent, 14 percent and 15 percent of consolidated property, plant and equipment — net as of April 2, 2021, March 27, 2020 and December 31, 2020, respectively.
3 Property, plant and equipment — net in the Philippines represented 10 percent of consolidated property, plant and equipment — net as of April 2, 2021 and December 31, 2020.
During the three months ended April 2, 2021, 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 $50 million for Europe, Middle East and Africa, $11 million for Latin America, $12 million for North America and $13 million for Asia Pacific, and operating income (loss) and income (loss) before income taxes were reduced by $7 million and $61 million, respectively, for Corporate due to the Company’s strategic realignment initiatives. Refer to Note 12.
•Operating income (loss) and income (loss) before income taxes were reduced by $19 million for North America related to the restructuring of our manufacturing operations in the United States.
•Operating income (loss) and income (loss) before income taxes were reduced by $18 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 $9 million for Corporate related to tax litigation expense. Refer to Note 8.
•Operating income (loss) and income (loss) before income taxes were reduced by $4 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 2.
•Income (loss) before income taxes was increased by $133 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 $5 million for Bottling Investments and $32 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) before income taxes was reduced by $58 million for Corporate related to charges associated with the extinguishment of long-term debt. Refer to Note 7.
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 related to the impairment of our Odwalla trademark. 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 the fairlife acquisition. Refer to Note 2.
•Income (loss) before income taxes was increased by $902 million for Corporate in conjunction with the fairlife acquisition, 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.