Quarterly report pursuant to Section 13 or 15(d)

Comprehensive Income (Tables)

v3.21.2
Comprehensive Income (Tables)
 6 Months Ended
Jul. 02, 2021
Comprehensive Income  
AOCI attributable to the shareowners of The Coca Cola Company
AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions):
July 2,
2021		 December 31, 2020
Net foreign currency translation adjustments $ (11,221) $ (12,028)
Accumulated net gains (losses) on derivatives (38) (194)
Unrealized net gains (losses) on available-for-sale debt securities (33) 28 
Adjustments to pension and other postretirement benefit liabilities (2,007) (2,407)
Accumulated other comprehensive income (loss) $ (13,299) $ (14,601)
Comprehensive Income (Loss), Apportioned between Shareowners of the Coca-Cola Company and Noncontrolling Interests [Text Block]
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
Six Months Ended July 2, 2021
Shareowners of
The Coca-Cola Company		 Noncontrolling
Interests		 Total
Consolidated net income $ 4,886  $ (7) $ 4,879 
Other comprehensive income:      
Net foreign currency translation adjustments 807  53  860 
Net gains (losses) on derivatives1
156  —  156 
Net change in unrealized gains (losses) on available-for-sale debt
   securities2
(61) —  (61)
Net change in pension and other postretirement benefit liabilities 400  —  400 
Total comprehensive income (loss) $ 6,188  $ 46  $ 6,234 
1 Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
2 Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
OCI attributable to the shareowners of The Coca-Cola Company
The following tables present OCI attributable to shareowners of The Coca-Cola Company, including our proportionate share of equity method investees’ OCI (in millions):
Three Months Ended July 2, 2021 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ 517  $ (24) $ 493 
Reclassification adjustments recognized in net income 180  —  180 
Gains (losses) on intra-entity transactions that are of a long-term investment nature 212  —  212 
Gains (losses) on net investment hedges arising during the period1
(113) 27  (86)
Reclassification adjustments for net investment hedges recognized in net income1
4  —  4 
Net foreign currency translation adjustments $ 800  $ 3  $ 803 
Derivatives:
Gains (losses) arising during the period $ (40) $ 6  $ (34)
Reclassification adjustments recognized in net income 112  (26) 86 
Net gains (losses) on derivatives1
$ 72  $ (20) $ 52 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (11) $ 7  $ (4)
Reclassification adjustments recognized in net income 3  —  3 
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (8) $ 7  $ (1)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ (100) $ 34  $ (66)
Reclassification adjustments recognized in net income 61  (15) 46 
Net change in pension and other postretirement benefit liabilities $ (39) $ 19  $ (20)
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ 825  $ 9  $ 834 
1Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
Six Months Ended July 2, 2021 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ 1,141  $ (47) $ 1,094 
Reclassification adjustments recognized in net income 180  —  180 
Gains (losses) on intra-entity transactions that are of a long-term investment nature (742) —  (742)
Gains (losses) on net investment hedges arising during the period1
362  (91) 271 
Reclassification adjustments for net investment hedges recognized in net income1
4  —  4 
Net foreign currency translation adjustments $ 945  $ (138) $ 807 
Derivatives:
Gains (losses) arising during the period $ 134  $ (37) $ 97 
Reclassification adjustments recognized in net income 76  (17) 59 
Net gains (losses) on derivatives1
$ 210  $ (54) $ 156 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (103) $ 37  $ (66)
Reclassification adjustments recognized in net income 6  (1) 5 
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (97) $ 36  $ (61)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ 353  $ (75) $ 278 
Reclassification adjustments recognized in net income 162  (40) 122 
Net change in pension and other postretirement benefit liabilities $ 515  $ (115) $ 400 
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ 1,573  $ (271) $ 1,302 
1Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
Three Months Ended June 26, 2020 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ (894) $ 14  $ (880)
Reclassification adjustments recognized in net income —  —  — 
Gains (losses) on intra-entity transactions that are of a long-term investment nature 160  —  160 
Gains (losses) on net investment hedges arising during the period1
(64) 16  (48)
Net foreign currency translation adjustments $ (798) $ 30  $ (768)
Derivatives:
Gains (losses) arising during the period $ (88) $ 25  $ (63)
Reclassification adjustments recognized in net income 49  (12) 37 
Net gains (losses) on derivatives1
$ (39) $ 13  $ (26)
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (14) $ 5  $ (9)
Reclassification adjustments recognized in net income (3) 1  (2)
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (17) $ 6  $ (11)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ 1  $ 7  $ 8 
Reclassification adjustments recognized in net income 43  (10) 33 
Net change in pension and other postretirement benefit liabilities $ 44  $ (3) $ 41 
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ (810) $ 46  $ (764)
1Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
Six Months Ended June 26, 2020 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ (3,175) $ 226  $ (2,949)
Reclassification adjustments recognized in net income 3  —  3 
Gains (losses) on intra-entity transactions that are of a long-term investment nature 3  —  3 
Gains (losses) on net investment hedges arising during the period1
12  (3) 9 
Net foreign currency translation adjustments $ (3,157) $ 223  $ (2,934)
Derivatives:
Gains (losses) arising during the period $ (65) $ 17  $ (48)
Reclassification adjustments recognized in net income 50  (12) 38 
Net gains (losses) on derivatives1
$ (15) $ 5  $ (10)
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (22) $ 10  $ (12)
Reclassification adjustments recognized in net income (9) 2  (7)
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (31) $ 12  $ (19)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ (24) $ 6  $ (18)
Reclassification adjustments recognized in net income 86  (21) 65 
Net change in pension and other postretirement benefit liabilities $ 62  $ (15) $ 47 
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ (3,141) $ 225  $ (2,916)
1Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.
2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.
Income statement location of adjustments reclassified from AOCI into income
The following table presents the amounts and line items in our condensed consolidated statements of income where adjustments reclassified from AOCI into income were recorded (in millions):
Amount Reclassified from AOCI
into Income
Description of AOCI Component Financial Statement Line Item Three Months Ended July 2, 2021 Six Months Ended July 2, 2021
Foreign currency translation adjustments:
Divestitures, deconsolidations and other1
Other income (loss) — net $ 184  $ 184 
Income before income taxes 184  184 
Income taxes —  — 
Consolidated net income $ 184  $ 184 
Derivatives:
Foreign currency contracts Net operating revenues $ 27  $ 50 
Foreign currency contracts Cost of goods sold 2  3 
Foreign currency contracts Other income (loss) — net (18) (84)
Divestitures, deconsolidations and other1
Other income (loss) — net 6  6 
Foreign currency and interest rate contracts Interest expense 95  101 
Income before income taxes 112  76 
Income taxes (26) (17)
Consolidated net income $ 86  $ 59 
Available-for-sale debt securities:
Sale of debt securities Other income (loss) — net $ 3  $ 6 
Income before income taxes 3  6 
Income taxes —  (1)
Consolidated net income $ 3  $ 5 
Pension and other postretirement benefit liabilities:
Settlement charges2
Other income (loss) — net $ 29  $ 83 
Recognized net actuarial loss Other income (loss) — net 33  81 
Recognized prior service cost (credit) Other income (loss) — net —  (1)
Divestitures, deconsolidations and other1
Other income (loss) — net (1) (1)
Income before income taxes 61  162 
Income taxes (15) (40)
Consolidated net income $ 46  $ 122 
1 Primarily related to the sale of our ownership interest in CCA. Refer to Note 2.
2 The settlement charges were related to our strategic realignment initiatives. Refer to Note 12.