Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v2.4.0.6
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 28, 2012
Fair Value Measurements [Abstract]  
Assets and liabilities measured at fair value on a recurring basis
The following table summarizes those assets and liabilities measured at fair value on a recurring basis as of September 28, 2012 (in millions):
 
Level 1

Level 2

Level 3

 
Netting
Adjustment1

Fair Value
Measurements

Assets
 
 
 
 
 
 
Trading securities
$
142

$
109

$
4

 
$
—

$
255

Available-for-sale securities2
1,713

3,150

141

3 

—

5,004

Derivatives4
52

516

—

 
(105
)
463

Total assets
$
1,907

$
3,775

$
145

 
$
(105
)
$
5,722

Liabilities
 
 
 
 
 
 
Derivatives4
$
18

$
158

$
—

 
$
(115
)
$
61

Total liabilities
$
18

$
158

$
—

 
$
(115
)
$
61

1 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. Refer to Note 5.
2 
Refer to Note 3 for additional information related to the composition of our available-for-sale securities.
3 Primarily related to long-term debt securities that mature in 2018.
4 Refer to Note 5 for additional information related to the composition of our derivative portfolio.
The following table summarizes those assets and liabilities measured at fair value on a recurring basis as of December 31, 2011 (in millions):
 
Level 1

Level 2

Level 3

 
Netting
Adjustment1

Fair Value
Measurements

Assets
 
 
 
 
 
 
Trading securities
$
166

$
41

$
4

 
$
—

$
211

Available-for-sale securities2
1,071

214

116

3 

—

1,401

Derivatives4
39

467

—

 
(117
)
389

Total assets
$
1,276

$
722

$
120

 
$
(117
)
$
2,001

Liabilities
 
 
 
 
 
 
Derivatives4
$
5

$
201

$
—

 
$
(121
)
$
85

Total liabilities
$
5

$
201

$
—

 
$
(121
)
$
85

1 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle positive and negative positions and also cash collateral held or placed with the same counterparties. Refer to Note 5.
2 
Refer to Note 3 for additional information related to the composition of our available-for-sale securities.
3 Primarily related to long-term debt securities that mature in 2018.
4 Refer to Note 5 for additional information related to the composition of our derivative portfolio.
Fair Value Measurements, Nonrecurring [Table Text Block]
The gains or losses on assets measured at fair value on a nonrecurring basis for the three and nine months ended September 28, 2012, and September 30, 2011, are summarized in the table below (in millions):
 
Gains (Losses)  
  
 
Three Months Ended
 
Nine Months Ended
  
 
September 28,
2012

 
September 30,
2011

 
September 28,
2012

 
September 30,
2011

  
Valuation of shares in equity method investee
$
—

 
$
—

 
$
92

1 
$
—

 
Exchange of investment in equity securities
—

 
—

 
—

 
418

4 
Equity method investments
—

 
(3
)
2 
—

 
(41
)
2 
Inventories
—

 
(5
)
3 
—

 
(12
)
3 
Cold-drink equipment
—

 
—

 
—

 
(1
)
3 
Total
$
—

 
$
(8
)
 
$
92

 
$
364

 
1 The Company recognized a gain of $92 million as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its own stock at a per share amount greater than the carrying value of the Company's per share investment. Accordingly, the Company is required to treat this type of transaction as if the Company had sold a proportionate share of its investment in Coca-Cola FEMSA. The gain was determined using Level 1 inputs. Refer to Note 10.
2 The Company recognized impairment charges of $3 million and $41 million during the three and nine months ended September 30, 2011, respectively. These charges related to an investment in an entity accounted for under the equity method of accounting. Subsequent to the recognition of these impairment charges, the Company's remaining financial exposure related to this entity was not significant. This charge was determined using Level 3 inputs. Refer to Note 10.
3 These assets primarily consisted of Company-owned inventory and cold-drink equipment that were damaged or lost as a result of the natural disasters in Japan on March 11, 2011. During the nine months ended September 30, 2011, we recorded impairment charges of $12 million and $1 million related to Company-owned inventory and cold-drink equipment, respectively. The impairment charges related to Company-owned inventory included a charge of $5 million recorded during the three months ended September 30, 2011. These charges represent the Company's best estimate as of September 30, 2011, and were determined using Level 3 inputs based on the carrying value of the inventory and cold-drink equipment prior to the natural disasters. Refer to Note 10.
4 As a result of the merger of Arca and Contal, the Company recognized a gain on the exchange of the shares we previously owned in Contal for shares in the newly formed entity Arca Contal. The gain represents the difference between the carrying value of the Contal shares we relinquished and the fair value of the Arca Contal shares we received as a result of the transaction. The gain and initial carrying value of our investment were calculated based on Level 1 inputs. Refer to Note 10.