Quarterly report pursuant to Section 13 or 15(d)

OTHER COMPREHENSIVE INCOME (Tables)

v3.22.2.2
OTHER COMPREHENSIVE INCOME (Tables)
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
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):
September 30,
2022		 December 31,
2021
Net foreign currency translation adjustments $ (14,656) $ (12,595)
Accumulated net gains (losses) on derivatives 270  20 
Unrealized net gains (losses) on available-for-sale debt securities (74) (62)
Adjustments to pension and other postretirement benefit liabilities (1,409) (1,693)
Accumulated other comprehensive income (loss) $ (15,869) $ (14,330)
Comprehensive Income (Loss), Apportioned between Shareowners of the Coca-Cola Company and Noncontrolling Interests
The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):
Nine Months Ended September 30, 2022
Shareowners of
The Coca-Cola Company		 Noncontrolling
Interests		 Total
Consolidated net income $ 7,511  $ 4  $ 7,515 
Other comprehensive income:
Net foreign currency translation adjustments (2,061) (204) (2,265)
Net gains (losses) on derivatives1
250  —  250 
Net change in unrealized gains (losses) on available-for-sale debt securities2
(12) —  (12)
Net change in pension and other postretirement benefit liabilities 284  —  284 
Total comprehensive income (loss) $ 5,972  $ (200) $ 5,772 
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.
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 September 30, 2022 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ (401) $ (3) $ (404)
Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,340) —  (1,340)
Gains (losses) on net investment hedges arising during the period1
708  (177) 531 
Net foreign currency translation adjustments $ (1,033) $ (180) $ (1,213)
Derivatives:
Gains (losses) arising during the period $ 150  $ (38) $ 112 
Reclassification adjustments recognized in net income (26) 7  (19)
Net gains (losses) on derivatives1
$ 124  $ (31) $ 93 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (12) $ (1) $ (13)
Reclassification adjustments recognized in net income 41  (10) 31 
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ 29  $ (11) $ 18 
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ 21  $ (7) $ 14 
Reclassification adjustments recognized in net income 26  (6) 20 
Net change in pension and other postretirement benefit liabilities $ 47  $ (13) $ 34 
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ (833) $ (235) $ (1,068)
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.
Nine Months Ended September 30, 2022 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ (27) $ (216) $ (243)
Reclassification adjustments recognized in net income 200  —  200 
Gains (losses) on intra-entity transactions that are of a long-term investment nature (3,343) —  (3,343)
Gains (losses) on net investment hedges arising during the period1
1,766  (441) 1,325 
Net foreign currency translation adjustments $ (1,404) $ (657) $ (2,061)
Derivatives:
Gains (losses) arising during the period $ 330  $ (90) $ 240 
Reclassification adjustments recognized in net income 13  (3) 10 
Net gains (losses) on derivatives1
$ 343  $ (93) $ 250 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (56) $ 9  $ (47)
Reclassification adjustments recognized in net income 46  (11) 35 
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (10) $ (2) $ (12)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ 287  $ (65) $ 222 
Reclassification adjustments recognized in net income 82  (20) 62 
Net change in pension and other postretirement benefit liabilities $ 369  $ (85) $ 284 
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ (702) $ (837) $ (1,539)
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 October 1, 2021 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ (636) $ 39  $ (597)
Reclassification adjustments recognized in net income 13  —  13 
Gains (losses) on intra-entity transactions that are of a long-term investment nature (575) —  (575)
Gains (losses) on net investment hedges arising during the period1
310  (77) 233 
Net foreign currency translation adjustments $ (888) $ (38) $ (926)
Derivatives:
Gains (losses) arising during the period $ (26) $ 7  $ (19)
Reclassification adjustments recognized in net income 63  (16) 47 
Net gains (losses) on derivatives1
$ 37  $ (9) $ 28 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (28) $ 8  $ (20)
Reclassification adjustments recognized in net income (2) —  (2)
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (30) $ 8  $ (22)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ (102) $ 29  $ (73)
Reclassification adjustments recognized in net income 56  (14) 42 
Net change in pension and other postretirement benefit liabilities $ (46) $ 15  $ (31)
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ (927) $ (24) $ (951)
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.
Nine Months Ended October 1, 2021 Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period $ 505  $ (8) $ 497 
Reclassification adjustments recognized in net income 193  —  193 
Gains (losses) on intra-entity transactions that are of a long-term investment nature (1,317) —  (1,317)
Gains (losses) on net investment hedges arising during the period1
672  (168) 504 
Reclassification adjustments for net investment hedges recognized in net income1
4  —  4 
Net foreign currency translation adjustments $ 57  $ (176) $ (119)
Derivatives:
Gains (losses) arising during the period $ 108  $ (30) $ 78 
Reclassification adjustments recognized in net income 139  (33) 106 
Net gains (losses) on derivatives1
$ 247  $ (63) $ 184 
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period $ (131) $ 45  $ (86)
Reclassification adjustments recognized in net income 4  (1) 3 
Net change in unrealized gains (losses) on available-for-sale debt securities2
$ (127) $ 44  $ (83)
Pension and other postretirement benefit liabilities:
Net pension and other postretirement benefit liabilities arising during the period $ 251  $ (46) $ 205 
Reclassification adjustments recognized in net income 218  (54) 164 
Net change in pension and other postretirement benefit liabilities $ 469  $ (100) $ 369 
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola
   Company		 $ 646  $ (295) $ 351 
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.
Reclassification out of Accumulated Other Comprehensive Income
The following table presents the amounts and line items in our 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 September 30, 2022 Nine Months Ended September 30, 2022
Foreign currency translation adjustments:
Divestitures, deconsolidations and other1
Other income (loss) — net $ —  $ 200 
Income before income taxes —  200 
Income taxes —  — 
Consolidated net income $ —  $ 200 
Derivatives:
Foreign currency contracts Net operating revenues $ (88) $ (148)
Foreign currency contracts Cost of goods sold (10) (13)
Foreign currency contracts Interest expense 1  3 
Foreign currency contracts Other income (loss) — net 71  171 
Income before income taxes (26) 13 
Income taxes 7  (3)
Consolidated net income $ (19) $ 10 
Available-for-sale debt securities:
Sale of debt securities Other income (loss) — net $ 41  $ 46 
Income before income taxes 41  46 
Income taxes (10) (11)
Consolidated net income $ 31  $ 35 
Pension and other postretirement benefit liabilities:
Recognized net actuarial loss Other income (loss) — net $ 26  $ 84 
Recognized prior service cost (credit) Other income (loss) — net —  (2)
Income before income taxes 26  82 
Income taxes (6) (20)
Consolidated net income $ 20  $ 62 
1Related to the sale of our ownership interest in one of our equity method investments and the issuance of additional shares of stock by one of our equity method investees. Refer to Note 2 and Note 15, respectively