Quarterly report pursuant to Section 13 or 15(d)

Operating Segments

v3.21.2
Operating Segments
 6 Months Ended
Jul. 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 July 2, 2021                
Net operating revenues:                
Third party $ 1,874  $ 1,067  $ 3,379  $ 1,350  $ 707  $ 1,735  $ 17  $ —  $ 10,129 
Intersegment 143  —  2  153  —  3  —  (301) — 
Total net operating revenues 2,017  1,067  3,381  1,503  707  1,738  17  (301) 10,129 
Operating income (loss) 1,142  678  950  766  75  92  (687) —  3,016 
Income (loss) before income taxes 1,169  681  959  779  78  422  (470) —  3,618 
Identifiable operating assets 8,574 
2
 1,748  19,646  2,252 
3
 7,854  10,375 
2,3
 20,329  —  70,778 
Investments1
478  630  346  231  3  13,382  4,346  —  19,416 
As of and for the Three Months Ended June 26, 2020                
Net operating revenues:                
Third party $ 1,135  $ 755  $ 2,647  $ 1,068  $ 295  $ 1,262  $ (12) $ —  $ 7,150 
Intersegment 75  —  1  115  —  1  —  (192) — 
Total net operating revenues 1,210  755  2,648  1,183  295  1,263  (12) (192) 7,150 
Operating income (loss) 715  504  489  652  (102) 12  (289) —  1,981 
Income (loss) before income taxes 736  444  483  661  (103) 166  (190) —  2,197 
Identifiable operating assets 8,065 
2
 1,643  20,320  2,131 
3
 6,983  9,817 
2,3
 26,795  —  75,754 
Investments1
534  573  356  226  5  13,199  4,042  —  18,935 
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 16 percent, 14 percent and 15 percent of consolidated property, plant and equipment — net as of July 2, 2021, June 26, 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 July 2, 2021, June 26, 2020 and December 31, 2020.
During the three months ended July 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 $247 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.
•Operating income (loss) and income (loss) before income taxes were reduced by $11 million for Europe, Middle East and Africa and $1 million for North America, and operating income (loss) and income (loss) before income taxes were reduced by $17 million and $46 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 $22 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 $16 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 $4 million for Corporate related to tax litigation expense. Refer to Note 8.
•Income (loss) before income taxes was increased by $695 million for Corporate related to the sale of our ownership interest in CCA, an equity method investee. Refer to Note 2.
•Income (loss) before income taxes was increased by $203 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 $592 million for Corporate related to charges associated with the extinguishment of long-term debt. Refer to Note 7.
•Income (loss) before income taxes was reduced by $60 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 June 26, 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 $55 million for North America related to the impairment of a trademark, which was primarily driven by the impact of the COVID-19 pandemic, revised projections of future operating results and a change in brand focus in the Company’s portfolio.
•Operating income (loss) and income (loss) before income taxes were reduced by $39 million for North America for charges related to the cost of discontinuing the Odwalla juice business and $8 million related to the impairment of the Odwalla trademark.
•Operating income (loss) and income (loss) before income taxes were reduced by $25 million and $44 million, respectively, 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 $22 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 $18 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 $247 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 $28 million for Latin America, $1 million for North America and $34 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) before income taxes was reduced by $38 million for Latin America due to an other-than-temporary impairment charge related to one of our equity method investees.
Europe, Middle East & Africa Latin
America 		North
America		 Asia Pacific Global Ventures Bottling
Investments		 Corporate Eliminations Consolidated
Six Months Ended July 2, 2021                
Net operating revenues:                
Third party $ 3,336  $ 1,976  $ 6,315  $ 2,582  $ 1,277  $ 3,629  $ 34  $ —  $ 19,149 
Intersegment 304  —  3  323  —  5  —  (635) — 
Total net operating revenues 3,640  1,976  6,318  2,905  1,277  3,634  34  (635) 19,149 
Operating income (loss) 1,962  1,230  1,742  1,452  101  233  (982) —  5,738 
Income (loss) before income taxes 1,999  1,236  1,775  1,474  105  739  (947) —  6,381 
Six Months Ended June 26, 2020                
Net operating revenues:                
Third party $ 2,708  $ 1,685  $ 5,496  $ 2,057  $ 868  $ 2,918  $ 19  $ —  $ 15,751 
Intersegment 227  —  2  254  —  3  —  (486) — 
Total net operating revenues 2,935  1,685  5,498  2,311  868  2,921  19  (486) 15,751 
Operating income (loss) 1,675  1,043  876  1,163  (83) 75  (388) —  4,361 
Income (loss) before income taxes 1,707  979  885  1,174  (85) 364  183  —  5,207 
During the six months ended July 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 $251 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.
•Operating income (loss) and income (loss) before income taxes were reduced by $61 million for Europe, Middle East and Africa, $11 million for Latin America, $13 million for North America and $13 million for Asia Pacific, and operating income (loss) and income (loss) before income taxes were reduced by $24 million and $107 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 $40 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 $35 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 $13 million for Corporate related to tax litigation expense. Refer to Note 8.
•Income (loss) before income taxes was increased by $695 million for Corporate related to the sale of our ownership interest in CCA, an equity method investee. Refer to Note 2.
•Income (loss) before income taxes was increased by $336 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 $650 million for Corporate related to charges associated with the extinguishment of long-term debt. Refer to Note 7.
•Income (loss) before income taxes was reduced by $55 million for Bottling Investments and increased by $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.
During the six months ended June 26, 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 $160 million for North America related to the impairment of our Odwalla trademark and $39 million related to the cost of discontinuing the Odwalla juice business.
•Operating income (loss) and income (loss) before income taxes were reduced by $61 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 $55 million for North America related to the impairment of a trademark, which was primarily driven by the impact of the COVID-19 pandemic, revised projections of future operating results and a change in brand focus in the Company’s portfolio.
•Operating income (loss) and income (loss) before income taxes were reduced by $25 million and $44 million, respectively, 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 $29 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 $144 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 $28 million for Latin America, $1 million for North America and $72 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) before income taxes was reduced by $38 million for Latin America due to an other-than-temporary impairment charge related to one of our equity method investees.