Quarterly report pursuant to Section 13 or 15(d)

OPERATING SEGMENTS

v3.22.2
OPERATING SEGMENTS
 6 Months Ended
Jul. 01, 2022
Segment Reporting [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 1, 2022                
Net operating revenues:                
Third party $ 2,018  $ 1,140  $ 4,029  $ 1,343  $ 695  $ 2,077  $ 23  $ —  $ 11,325 
Intersegment 166  —  1  223  —  2  —  (392) — 
Total net operating revenues 2,184  1,140  4,030  1,566  695  2,079  23  (392) 11,325 
Operating income (loss) 1,291  674  840  753  44  113  (1,374) —  2,341 
Income (loss) before income taxes 1,225  680  848  757  48  453  (1,727) —  2,284 
Identifiable operating assets 7,721 
2
 2,054  26,372  2,628 
3
 7,210  9,881 
2,3
 18,928  —  74,794 
Investments1
439  605  19  222  —  12,569  4,521  —  18,375 
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 December 31, 2021                
Identifiable operating assets $ 7,908 
2
 $ 1,720  $ 25,730  $ 2,355 
3
 $ 7,949  $ 10,312 
2,3
 $ 19,964  $ —  $ 75,938 
Investments1
436  594  21  230  —  12,669  4,466  —  18,416 
1Principally equity method investments and other investments in bottling companies.
2Property, plant and equipment — net in South Africa represented 17 percent, 16 percent and 16 percent of consolidated property, plant and equipment — net as of July 1, 2022, July 2, 2021 and December 31, 2021, respectively.
3Property, plant and equipment — net in the Philippines represented 10 percent of consolidated property, plant and equipment — net as of July 1, 2022, July 2, 2021 and December 31, 2021.
During the three months ended July 1, 2022, 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 $917 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition in 2020. Refer to Note 15.
•Operating income (loss) and income (loss) before income taxes were reduced by $19 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 increased by $2 million for North America and were reduced by $15 million for Corporate related to our acquisition of BodyArmor in 2021. Refer to Note 11.
•Operating income (loss) and income (loss) before income taxes were reduced by $11 million for North America related to the restructuring of our manufacturing operations in the United States.
•Income (loss) before income taxes was reduced by $267 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 $96 million for Europe, Middle East and Africa due to an other-than-temporary impairment charge related to an equity method investee in Russia. Refer to Note 15.
•Income (loss) before income taxes was reduced by $35 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 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 15.
•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.
•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.
•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.
Europe, Middle East & Africa Latin
America 		North
America		 Asia Pacific Global Ventures Bottling
Investments		 Corporate Eliminations Consolidated
Six Months Ended July 1, 2022                
Net operating revenues:                
Third party $ 3,679  $ 2,354  $ 7,618  $ 2,574  $ 1,424  $ 4,119  $ 48  $ —  $ 21,816 
Intersegment 338  —  2  403  —  4  —  (747) — 
Total net operating revenues 4,017  2,354  7,620  2,977  1,424  4,123  48  (747) 21,816 
Operating income (loss) 2,298  1,434  1,896  1,417  95  306  (1,700) —  5,746 
Income (loss) before income taxes 2,248  1,437  1,912  1,427  104  846  (2,232) —  5,742 
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 
During the six months ended July 1, 2022, 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 $939 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 15.
•Operating income (loss) and income (loss) before income taxes were reduced by $29 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 $22 million and $23 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 increased by $21 million for North America and were reduced by $29 million for Corporate related to our acquisition of BodyArmor in 2021. Refer to Note 11.
•Income (loss) before income taxes was reduced by $371 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 $96 million for Europe, Middle East and Africa due to an other-than-temporary impairment charge related to an equity method investee in Russia. Refer to Note 15.
•Income (loss) before income taxes was reduced by $30 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 $24 million for Corporate due to one of our equity method investees issuing additional shares of its stock. Refer to Note 15.
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 15.
•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.
•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.
•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.