Comprehensive Income (Tables)

9 Months Ended

Sep. 25, 2020

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 25, 2020		December 31, 2019
Foreign currency translation adjustments	$	(13,154)	$	(11,270)
Accumulated derivative net gains (losses)	(232)		(209)
Unrealized net gains (losses) on available-for-sale debt securities	35		75
Adjustments to pension and other benefit liabilities	(2,095)		(2,140)
Accumulated other comprehensive income (loss)	$	(15,446)	$	(13,544)

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):


	Nine Months Ended September 25, 2020
	Shareowners of The Coca-Cola Company		Noncontrolling Interests		Total
Consolidated net income	$	6,291	$	3	$	6,294
Other comprehensive income:
Net foreign currency translation adjustments	(1,884)		(399)		(2,283)
Net gains (losses) on derivatives¹	(23)		—		(23)
Net change in unrealized gains (losses) on available-for-sale debt securities²	(40)		—		(40)
Net change in pension and other benefit liabilities	45		—		45

Total comprehensive income (loss)	$	4,389	$	(396)	$	3,993

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 25, 2020	Before-Tax Amount		Income Tax		After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	548	$	(30)	$	518
Reclassification adjustments recognized in net income	—		—		—
Gains (losses) on intra-entity transactions that are of a long-term investment nature	883		—		883
Gains (losses) on net investment hedges arising during the period¹	(468)		117		(351)

Net foreign currency translation adjustments	$	963	$	87	$	1,050
Derivatives:
Gains (losses) arising during the period	$	41	$	(9)	$	32
Reclassification adjustments recognized in net income	(60)		15		(45)
Net gains (losses) on derivatives¹	$	(19)	$	6	$	(13)
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period	$	(32)	$	10	$	(22)
Reclassification adjustments recognized in net income	1		—		1

Net change in unrealized gains (losses) on available-for-sale debt securities²	$	(31)	$	10	$	(21)
Pension and other benefit liabilities:
Net pension and other benefit liabilities arising during the period	$	(44)	$	9	$	(35)
Reclassification adjustments recognized in net income	44		(11)		33
Net change in pension and other benefit liabilities	$	—	$	(2)	$	(2)
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company	$	913	$	101	$	1,014

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 25, 2020	Before-Tax Amount		Income Tax		After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	(2,627)	$	196	$	(2,431)
Reclassification adjustments recognized in net income	3		—		3
Gains (losses) on intra-entity transactions that are of a long-term investment nature	886		—		886
Gains (losses) on net investment hedges arising during the period¹	(456)		114		(342)

Net foreign currency translation adjustments	$	(2,194)	$	310	$	(1,884)
Derivatives:
Gains (losses) arising during the period	$	(24)	$	8	$	(16)
Reclassification adjustments recognized in net income	(10)		3		(7)
Net gains (losses) on derivatives¹	$	(34)	$	11	$	(23)
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period	$	(54)	$	20	$	(34)
Reclassification adjustments recognized in net income	(8)		2		(6)

Net change in unrealized gains (losses) on available-for-sale debt securities²	$	(62)	$	22	$	(40)
Pension and other benefit liabilities:
Net pension and other benefit liabilities arising during the period	$	(68)	$	15	$	(53)
Reclassification adjustments recognized in net income	130		(32)		98
Net change in pension and other benefit liabilities	$	62	$	(17)	$	45
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company	$	(2,228)	$	326	$	(1,902)

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 September 27, 2019	Before-Tax Amount		Income Tax		After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	(256)	$	(6)	$	(262)

Gains (losses) on intra-entity transactions that are of a long-term investment nature	(924)		—		(924)
Gains (losses) on net investment hedges arising during the period¹	489		(122)		367
Net foreign currency translation adjustments	$	(691)	$	(128)	$	(819)
Derivatives:
Gains (losses) arising during the period	$	(2)	$	1	$	(1)
Reclassification adjustments recognized in net income	62		(15)		47
Net gains (losses) on derivatives¹	$	60	$	(14)	$	46
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period	$	29	$	(7)	$	22
Reclassification adjustments recognized in net income	(8)		2		(6)
Net change in unrealized gains (losses) on available-for-sale debt securities²	$	21	$	(5)	$	16
Pension and other benefit liabilities:
Net pension and other benefit liabilities arising during the period	$	4	$	—	$	4
Reclassification adjustments recognized in net income	37		(9)		28
Net change in pension and other benefit liabilities	$	41	$	(9)	$	32
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company	$	(569)	$	(156)	$	(725)

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 27, 2019	Before-Tax Amount		Income Tax		After-Tax Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	(141)	$	(77)	$	(218)
Reclassification adjustments recognized in net income	192		—		192
Gains (losses) on intra-entity transactions that are of a long-term investment nature	(888)		—		(888)
Gains (losses) on net investment hedges arising during the period¹	486		(121)		365
Net foreign currency translation adjustments	$	(351)	$	(198)	$	(549)
Derivatives:
Gains (losses) arising during the period	$	(119)	$	24	$	(95)
Reclassification adjustments recognized in net income	166		(41)		125
Net gains (losses) on derivatives¹	$	47	$	(17)	$	30
Available-for-sale debt securities:
Unrealized gains (losses) arising during the period	$	88	$	(17)	$	71
Reclassification adjustments recognized in net income	(32)		7		(25)
Net change in unrealized gains (losses) on available-for-sale debt securities²	$	56	$	(10)	$	46
Pension and other benefit liabilities:
Net pension and other benefit liabilities arising during the period	$	11	$	5	$	16
Reclassification adjustments recognized in net income	111		(27)		84
Net change in pension and other benefit liabilities	$	122	$	(22)	$	100
Other comprehensive income (loss) attributable to shareowners of The Coca-Cola Company	$	(126)	$	(247)	$	(373)

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 September 25, 2020		Nine Months Ended September 25, 2020
Foreign currency translation adjustments:
Divestitures, deconsolidations and other¹	Other income (loss) — net	$	—	$	3
	Income before income taxes	—		3
	Income taxes	—		—
	Consolidated net income	$	—	$	3
Derivatives:
Foreign currency contracts	Net operating revenues	$	21	$	22
Foreign currency and commodity contracts	Cost of goods sold	(1)		(6)
Foreign currency contracts	Other income (loss) — net	(100)		(71)

Foreign currency and interest rate contracts	Interest expense	20		45
	Income before income taxes	(60)		(10)
	Income taxes	15		3
	Consolidated net income	$	(45)	$	(7)
Available-for-sale debt securities:

Sale of debt securities	Other income (loss) — net	$	1	$	(8)
	Income before income taxes	1		(8)
	Income taxes	—		2
	Consolidated net income	$	1	$	(6)
Pension and other benefit liabilities:




Recognized net actuarial loss	Other income (loss) — net	$	45	$	132
Recognized prior service cost (credit)	Other income (loss) — net	(1)		(2)

	Income before income taxes	44		130
	Income taxes	(11)		(32)
	Consolidated net income	$	33	$	98

1Related to the sale of a portion of our ownership interest in one of our equity method investments. Refer to Note 2.