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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON,D.C.20549FORM 10-Q(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended March 29,2024 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT

2、OF 1934For the transition period from to Commission File Number 001-02217 COCA COLA CO (Exact name of Registrant as specified in its charter)Delaware 58-0628465(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)One Coca-Cola PlazaAtlanta Georgia30313(Add

3、ress of principal executive offices)(Zip Code)Registrants telephone number,including area code:(404)676-2121 Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon Stock,$0.25 Par ValueKONew York Stock Exchange1.8

4、75%Notes Due 2026KO26New York Stock Exchange0.750%Notes Due 2026KO26CNew York Stock Exchange1.125%Notes Due 2027KO27New York Stock Exchange0.125%Notes Due 2029KO29ANew York Stock Exchange0.125%Notes Due 2029KO29BNew York Stock Exchange0.400%Notes Due 2030KO30BNew York Stock Exchange1.250%Notes Due 2

5、031KO31New York Stock Exchange0.375%Notes Due 2033KO33New York Stock Exchange0.500%Notes Due 2033KO33ANew York Stock Exchange1.625%Notes Due 2035KO35New York Stock Exchange1.100%Notes Due 2036KO36New York Stock Exchange0.950%Notes Due 2036KO36ANew York Stock Exchange0.800%Notes Due 2040KO40BNew York

6、 Stock Exchange1.000%Notes Due 2041KO41New York Stock ExchangeIndicate by check mark whether the Registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the Registrant was requ

7、ired to file such reports)and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)duri

8、ng the preceding 12 months(or for such shorter period that the Registrant was required to submit such files).Yes No Indicate by check mark whether the Registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company or an emerging growth company.See th

9、e definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerAccelerated filer Non-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate

10、by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark if the Registrant is a shell company(as defined in Rule 12b-2 of the

11、 Exchange Act).Yes No Indicate the number of shares outstanding of each of the issuers classes of common stock as of the latest practicable date.Class of Common Stock Shares Outstanding as of April 30,2024$0.25 Par Value 4,307,955,307THE COCA-COLA COMPANY AND SUBSIDIARIESTable of Contents PageForwar

12、d-Looking Statements1Part I.Financial Information Item 1.Financial Statements2Consolidated Statements of Income Three Months Ended March 29,2024 and March 31,20232Consolidated Statements of Comprehensive Income Three Months Ended March 29,2024 andMarch 31,20233Consolidated Balance Sheets March 29,20

13、24 and December 31,20234Consolidated Statements of Cash Flows Three Months Ended March 29,2024 and March 31,20235Notes to Consolidated Financial Statements6Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations27Item 3.Quantitative and Qualitative Disclosures Abo

14、ut Market Risk39Item 4.Controls and Procedures39Part II.Other Information Item 1.Legal Proceedings40Item 1A.Risk Factors41Item 2.Unregistered Sales of Equity Securities and Use of Proceeds42Item 5.Other Information42Item 6.Exhibits42Signatures46FORWARD-LOOKING STATEMENTSThis report contains informat

15、ion that may constitute“forward-looking statements.”Generally,the words“believe,”“expect,”“intend,”“estimate,”“anticipate,”“project,”“will”and similar expressions identify forward-looking statements,which generally are not historical in nature.However,the absence of these words or similar expression

16、s does not mean that a statement is not forward-looking.All statements that address operating performance,events or developments that we expect or anticipate will occur in the future including statements relating to volume growth,share of sales and net income per share growth,and statements expressi

17、ng general views about future operating results are forward-looking statements.Management believes that these forward-looking statements are reasonable as and when made.However,caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak on

18、ly as of the date when made.Our Company undertakes no obligation to publicly update or revise any forward-looking statements,whether as a result of new information,future events or otherwise,except as required by law.In addition,forward-looking statements are subject to certain risks and uncertainti

19、es that could cause our Companys actual results to differ materially from historical experience and our present expectations or projections.These risks and uncertainties include,but are not limited to,the possibility that the assumptions used to calculate our estimated aggregate incremental tax and

20、interest liability related to the potential unfavorable outcome of the ongoing tax dispute with the U.S.Internal Revenue Service could significantly change;those described in Part II,“Item 1A.Risk Factors”and elsewhere in this report and in our Annual Report on Form 10-K for the year ended December

21、31,2023;and those described from time to time in our future reports filed with the Securities and Exchange Commission.1Part I.Financial InformationItem 1.Financial StatementsTHE COCA-COLA COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(In millions except per share data)Three Months EndedMa

22、rch 29,2024March 31,2023Net Operating Revenues$11,300$10,980 Cost of goods sold 4,235 4,317 Gross Profit 7,065 6,663 Selling,general and administrative expenses 3,351 3,185 Other operating charges 1,573 111 Operating Income 2,141 3,367 Interest income 246 168 Interest expense 382 372 Equity income(l

23、oss)net 354 275 Other income(loss)net 1,513 615 Income Before Income Taxes 3,872 4,053 Income taxes 687 940 Consolidated Net Income 3,185 3,113 Less:Net income(loss)attributable to noncontrolling interests 8 6 Net Income Attributable to Shareowners of The Coca-Cola Company$3,177$3,107 Basic Net Inco

24、me Per Share1$0.74$0.72 Diluted Net Income Per Share1$0.74$0.72 Average Shares Outstanding Basic 4,310 4,326 Effect of dilutive securities 12 19 Average Shares Outstanding Diluted 4,322 4,345 1 Calculated based on net income attributable to shareowners of The Coca-Cola Company.Refer to Notes to Cons

25、olidated Financial Statements.2THE COCA-COLA COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In millions)Three Months EndedMarch 29,2024March 31,2023Consolidated Net Income$3,185$3,113 Other Comprehensive Income:Net foreign currency translation adjustments(303)549 Net gains(l

26、osses)on derivatives 49 (70)Net change in unrealized gains(losses)on available-for-sale debt securities 5 8 Net change in pension and other postretirement benefit liabilities(4)11 Total Comprehensive Income 2,932 3,611 Less:Comprehensive income(loss)attributable to noncontrolling interests(16)(69)To

27、tal Comprehensive Income Attributable to Shareowners of The Coca-Cola Company$2,948$3,680 Refer to Notes to Consolidated Financial Statements.3THE COCA-COLA COMPANY AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In millions except par value)March 29,2024December 31,2023ASSETSCurrent Assets Cash and cas

28、h equivalents$10,443$9,366 Short-term investments 4,760 2,997 Total Cash,Cash Equivalents and Short-Term Investments 15,203 12,363 Marketable securities 1,716 1,300 Trade accounts receivable,less allowances of$504 and$502,respectively 4,244 3,410 Inventories 4,961 4,424 Prepaid expenses and other cu

29、rrent assets 3,338 5,235 Total Current Assets 29,462 26,732 Equity method investments 19,495 19,671 Other investments 147 118 Other noncurrent assets 7,291 7,162 Deferred income tax assets 1,457 1,561 Property,plant and equipment,less accumulated depreciation of$9,359 and$9,233,respectively 9,306 9,

30、236 Trademarks with indefinite lives 13,532 14,349 Goodwill 18,210 18,358 Other intangible assets 492 516 Total Assets$99,392$97,703 LIABILITIES AND EQUITYCurrent Liabilities Accounts payable and accrued expenses$19,425$15,485 Loans and notes payable 6,054 4,557 Current maturities of long-term debt

31、1,392 1,960 Accrued income taxes 1,485 1,569 Total Current Liabilities 28,356 23,571 Long-term debt 35,104 35,547 Other noncurrent liabilities 5,465 8,466 Deferred income tax liabilities 2,521 2,639 The Coca-Cola Company Shareowners Equity Common stock,$0.25 par value;authorized 11,200 shares;issued

32、 7,040 shares 1,760 1,760 Capital surplus 19,321 19,209 Reinvested earnings 74,868 73,782 Accumulated other comprehensive income(loss)(14,504)(14,275)Treasury stock,at cost 2,732 and 2,732 shares,respectively(55,016)(54,535)Equity Attributable to Shareowners of The Coca-Cola Company 26,429 25,941 Eq

33、uity attributable to noncontrolling interests 1,517 1,539 Total Equity 27,946 27,480 Total Liabilities and Equity$99,392$97,703 Refer to Notes to Consolidated Financial Statements.4THE COCA-COLA COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(In millions)Three Months Ended March 29,202

34、4March 31,2023Operating Activities Consolidated net income$3,185$3,113 Adjustments to reconcile consolidated net income to net cash provided by operating activities:Depreciation and amortization 262 286 Stock-based compensation expense 68 58 Deferred income taxes(173)260 Equity(income)loss net of di

35、vidends(58)(249)Foreign currency adjustments 17 25 Significant(gains)losses net(1,401)(442)Other operating charges 1,532 88 Other items(59)(102)Net change in operating assets and liabilities(2,845)(2,877)Net Cash Provided by Operating Activities 528 160 Investing Activities Purchases of investments(

36、2,552)(739)Proceeds from disposals of investments 444 815 Acquisitions of businesses,equity method investments and nonmarketable securities(8)(20)Proceeds from disposals of businesses,equity method investments and nonmarketable securities 2,893 319 Purchases of property,plant and equipment(370)(276)

37、Proceeds from disposals of property,plant and equipment 14 21 Collateral(paid)received associated with hedging activities net(105)18 Other investing activities 14 (21)Net Cash Provided by(Used in)Investing Activities 330 117 Financing Activities Issuances of loans,notes payable and long-term debt 2,

38、285 4,074 Payments of loans,notes payable and long-term debt(1,366)(1,174)Issuances of stock 290 229 Purchases of stock for treasury(702)(848)Dividends(99)(101)Other financing activities(2)(115)Net Cash Provided by(Used in)Financing Activities 406 2,065 Effect of Exchange Rate Changes on Cash,Cash E

39、quivalents,Restricted Cash and Restricted Cash Equivalents(138)113 Cash,Cash Equivalents,Restricted Cash and Restricted Cash EquivalentsNet increase(decrease)in cash,cash equivalents,restricted cash and restricted cash equivalents during the period 1,126 2,455 Cash,cash equivalents,restricted cash a

40、nd restricted cash equivalents at beginning of period 9,692 9,825 Cash,Cash Equivalents,Restricted Cash and Restricted Cash Equivalents at End of Period 10,818 12,280 Less:Restricted cash and restricted cash equivalents at end of period 375 276 Cash and Cash Equivalents at End of Period$10,443$12,00

41、4 Refer to Notes to Consolidated Financial Statements.5THE COCA-COLA COMPANY AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSNOTE 1:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of PresentationThe accompanying unaudited consolidated financial statements have been prepared in accordance w

42、ith accounting principles generally accepted in the United States(“U.S.GAAP”)for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.They do not include all information and notes required by U.S.GAAP for complete financial statements.However,except a

43、s disclosed herein,there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of The Coca-Cola Company for the year ended December 31,2023.When used in these notes,the terms“The Coca-Cola Company,”“Compa

44、ny,”“we,”“us”and“our”mean The Coca-Cola Company and all entities included in our consolidated financial statements.In the opinion of management,all adjustments(including normal recurring accruals)considered necessary for a fair presentation have been included.Operating results for the three months e

45、nded March 29,2024 are not necessarily indicative of the results that may be expected for the year ending December 31,2024.Sales of our ready-to-drink beverages are somewhat seasonal,with the second and third calendar quarters typically accounting for the highest sales volumes.The volume of sales in

46、 the beverage business may be affected by weather conditions.Each of our quarterly reporting periods,other than the fourth quarter,ends on the Friday closest to the last day of the corresponding quarterly calendar period.The first quarter of 2024 and the first quarter of 2023 ended on March 29,2024

47、and March 31,2023,respectively.Our fourth quarter and our fiscal year end on December 31 regardless of the day of the week on which December 31 falls.Advertising CostsThe Companys accounting policy related to advertising costs for annual reporting purposes is to expense production costs of print,rad

48、io,television and other advertisements as of the first date the advertisements take place.All other marketing expenditures are expensed in the annual period in which the expenditure is incurred.For quarterly reporting purposes,we allocate our estimated full year marketing expenditures that benefit m

49、ultiple quarters to each of those quarters.We use the proportion of each quarters actual unit case volume to the estimated full year unit case volume as the basis for the allocation.This methodology results in our marketing expenditures being recognized at a standard rate per unit case.At the end of

50、 each quarter,we review our estimated full year unit case volume and our estimated full year marketing expenditures that benefit multiple quarters in order to evaluate if a change in estimate is necessary.The impact of any change in the full year estimate is recognized in the quarter in which the ch

51、ange in estimate occurs.Our full year marketing expenditures are not impacted by this interim accounting policy.Cash,Cash Equivalents,Restricted Cash and Restricted Cash EquivalentsWe classify time deposits and other investments that are highly liquid and have maturities of three months or less at t

52、he date of purchase as cash equivalents or restricted cash equivalents,as applicable.Restricted cash and restricted cash equivalents generally consist of amounts held by our captive insurance companies,which are included in the line item other noncurrent assets in our consolidated balance sheet,and

53、when applicable,cash and cash equivalents related to assets held for sale are included in the line item prepaid expenses and other current assets in our consolidated balance sheets.We manage our exposure to counterparty credit risk through specific minimum credit standards,diversification of counter

54、parties and procedures to monitor our concentrations of credit risk.Refer to Note 2 for additional information on our assets held for sale and Note 4 for additional information on our captive insurance companies.The following tables provide a summary of cash,cash equivalents,restricted cash and rest

55、ricted cash equivalents that constitute the total amounts shown in our consolidated statements of cash flows(in millions):March 29,2024December 31,2023Cash and cash equivalents$10,443$9,366 Restricted cash and restricted cash equivalents 375 326 Cash,cash equivalents,restricted cash and restricted c

56、ash equivalents$10,818$9,692 6March 31,2023December 31,2022Cash and cash equivalents$12,004$9,519 Restricted cash and restricted cash equivalents 276 306 Cash,cash equivalents,restricted cash and restricted cash equivalents$12,280$9,825 Recently Issued Accounting GuidanceIn November 2023,the Financi

57、al Accounting Standards Board(“FASB”)issued Accounting Standards Update(“ASU”)2023-07,Segment Reporting(Topic 280):Improvements to Reportable Segment Disclosures,which expands annual and interim disclosure requirements for reportable segments,primarily through enhanced disclosures about significant

58、segment expenses.The expanded annual disclosures are effective for the year ending December 31,2024,and the expanded interim disclosures are effective in 2025 and will be applied retrospectively to all prior periods presented.The Company is currently evaluating the impact that ASU 2023-07 will have

59、on our consolidated financial statements.In December 2023,the FASB issued ASU 2023-09,Income Taxes(Topic 740):Improvements to Income Tax Disclosures,which requires,among other things,additional disclosures primarily related to the income tax rate reconciliation and income taxes paid.The expanded ann

60、ual disclosures are effective for the year ending December 31,2025.The Company is currently evaluating the impact that ASU 2023-09 will have on our consolidated financial statements and whether we will apply the standard prospectively or retrospectively.NOTE 2:ACQUISITIONS AND DIVESTITURESAcquisitio

61、nsOur Companys acquisitions of businesses,equity method investments and nonmarketable securities totaled$8 million and$20 million during the three months ended March 29,2024 and March 31,2023,respectively.DivestituresProceeds from disposals of businesses,equity method investments and nonmarketable s

62、ecurities during the three months ended March 29,2024 totaled$2,893 million,which primarily related to the refranchising of the Companys bottling operations that were classified as held for sale as of December 31,2023.Also included was the sale of our ownership interest in an equity method investee

63、in Thailand for which we received cash proceeds of$728 million and recognized a net gain of$516 million,which was recorded in the line item other income(loss)net in our consolidated statement of income.Proceeds from disposals of businesses,equity method investments and nonmarketable securities durin

64、g the three months ended March 31,2023 totaled$319 million,which primarily related to the sale of our ownership interest in an equity method investee in Indonesia to Coca-Cola Europacific Partners plc(“CCEP”),an equity method investee,for which we received cash proceeds of$302 million and recognized

65、 a net gain of$12 million.The Company also refranchised its bottling operations in Vietnam in January 2023 and recognized a net gain of$439 million as a result of the sale.The Company received the related cash proceeds of$823 million in December 2022.These gains were recorded in the line item other

66、income(loss)net in our consolidated statement of income.Assets and Liabilities Held for SaleAs of December 31,2023,the Companys bottling operations in the Philippines,Bangladesh and certain territories in India met the criteria to be classified as held for sale.As a result,we were required to record

67、 the related assets and liabilities at the lower of carrying value or fair value less any costs to sell.As the fair values less any costs to sell exceeded the carrying values,the related assets and liabilities were recorded at their carrying values.These assets and liabilities were included in the B

68、ottling Investments operating segment.The Company refranchised its bottling operations in certain territories in India in January and February of 2024,for which we received net cash proceeds of$476 million and recognized a net gain of$293 million.The Company refranchised its bottling operations in B

69、angladesh to Coca-Cola İecek A.(“CCI”),an equity method investee,in February 2024,for which we received net cash proceeds of$27 million and a note receivable of$29 million and recognized a net loss of$18 million,primarily due to the related reversal of cumulative translation adjustments.Additionally

70、,in February 2024,the Company refranchised its bottling operations in the Philippines to CCEP and a local business partner,for which we received net cash proceeds of$1,656 million and recognized a net gain of$599 million.These gains and losses were recorded in the line item other income(loss)net in

71、our consolidated statement of income.7The following table presents information related to the major classes of assets and liabilities that were classified as held for sale and were included in the line items prepaid expenses and other current assets and accounts payable and accrued expenses,respecti

72、vely,in our consolidated balance sheet(in millions):December 31,2023Cash,cash equivalents and short-term investments$37 Marketable securities 8 Trade accounts receivable,less allowances 95 Inventories 299 Prepaid expenses and other current assets 60 Equity method investments 4 Other noncurrent asset

73、s 51 Deferred income tax assets 28 Property,plant and equipment net 1,267 Goodwill 231 Other intangible assets 14 Assets held for sale$2,094 Accounts payable and accrued expenses$464 Loans and notes payable 63 Accrued income taxes 24 Long-term debt 2 Other noncurrent liabilities 108 Deferred income

74、tax liabilities 58 Liabilities held for sale$719 NOTE 3:NET OPERATING REVENUES The following table presents net operating revenues disaggregated between the United States and International and further by line of business(in millions):United StatesInternationalTotalThree Months Ended March 29,2024Con

75、centrate operations$2,125$4,530$6,655 Finished product operations 1,993 2,652 4,645 Total$4,118$7,182$11,300 Three Months Ended March 31,2023Concentrate operations$1,989$4,344$6,333 Finished product operations 1,860 2,787 4,647 Total$3,849$7,131$10,980 Refer to Note 17 for disclosures of net operati

76、ng revenues by operating segment and Corporate.8NOTE 4:INVESTMENTSEquity SecuritiesThe carrying values of our equity securities were included in the following line items in our consolidated balance sheets(in millions):March 29,2024Marketable securities$373$Other investments 105 42 Other noncurrent a

77、ssets 1,628 Total equity securities$2,106$42 December 31,2023Marketable securities$345$Other investments 76 42 Other noncurrent assets 1,585 Total equity securities$2,006$42 Fair Value with Changes Recognized in IncomeMeasurement Alternative No Readily Determinable Fair Value The calculation of net

78、unrealized gains and losses recognized during the period related to equity securities still held at the end of the period is as follows(in millions):Three Months EndedMarch 29,2024March 31,2023Net gains(losses)recognized during the period related to equity securities$183$125 Less:Net gains(losses)re

79、cognized during the period related to equity securities sold during the period 49 1 Net unrealized gains(losses)recognized during the period related to equity securitiesstill held at the end of the period$134$124 Debt SecuritiesOur debt securities consisted of the following(in millions):Gross Unreal

80、izedEstimatedFair Value CostGainsLossesMarch 29,2024Trading securities$45$1$(2)$44 Available-for-sale securities 1,516 29 (25)1,520 Total debt securities$1,561$30$(27)$1,564 December 31,2023Trading securities$43$(2)$41 Available-for-sale securities 1,136 26 (28)1,134 Total debt securities$1,179$26$(

81、30)$1,175 The carrying values of our debt securities were included in the following line items in our consolidated balance sheets(in millions):March 29,2024December 31,2023Trading Securities Available-for-Sale Securities Trading Securities Available-for-Sale Securities Marketable securities$44$1,299

82、$41$914 Other noncurrent assets 221 220 Total debt securities$44$1,520$41$1,134 9The contractual maturities of these available-for-sale debt securities as of March 29,2024 were as follows(in millions):CostEstimated Fair Value Within 1 year$224$224 After 1 year through 5 years 1,075 1,080 After 5 yea

83、rs through 10 years 45 57 After 10 years 172 159 Total$1,516$1,520 The Company expects that actual maturities may differ from the contractual maturities above because borrowers have the right to call or prepay certain obligations.The sale and/or maturity of available-for-sale debt securities resulte

84、d in the following realized activity(in millions):Three Months EndedMarch 29,2024March 31,2023Gross gains$1$Gross losses(7)(3)Proceeds 383 68 Captive Insurance CompaniesIn accordance with local insurance regulations,our consolidated captive insurance companies are required to meet and maintain minim

85、um solvency capital requirements.The Company elected to invest a majority of its solvency capital in a portfolio of marketable equity and debt securities.These securities are included in the disclosures above.The Company uses one of our consolidated captive insurance companies to reinsure group annu

86、ity insurance contracts that cover the obligations of certain of our European and Canadian pension plans.This captives solvency capital funds included total equity and debt securities of$1,679 million and$1,643 million as of March 29,2024 and December 31,2023,respectively,which were classified in th

87、e line item other noncurrent assets in our consolidated balance sheets because the assets were not available to satisfy our current obligations.NOTE 5:INVENTORIESInventories consisted of the following(in millions):March 29,2024December 31,2023Raw materials and packaging$2,924$2,618 Finished goods 1,

88、675 1,449 Other 362 357 Total inventories$4,961$4,424 10NOTE 6:HEDGING TRANSACTIONS AND DERIVATIVE FINANCIAL INSTRUMENTS The following table presents the fair values of the Companys derivative instruments that were designated and qualified as part of a hedging relationship(in millions):Fair Value1,2

89、Derivatives Designated as Hedging InstrumentsBalance Sheet Location1March 29,2024December 31,2023Assets:Foreign currency contractsPrepaid expenses and other current assets$140$109 Foreign currency contractsOther noncurrent assets 27 13 Interest rate contractsOther noncurrent assets 5 50 Total assets

90、$172$172 Liabilities:Foreign currency contractsAccounts payable and accrued expenses$107$111 Foreign currency contractsOther noncurrent liabilities 33 40 Commodity contractsAccounts payable and accrued expenses 1 3 Interest rate contractsAccounts payable and accrued expenses 5 Interest rate contract

91、sOther noncurrent liabilities 1,217 1,113 Total liabilities$1,358$1,272 1All of the Companys derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the s

92、ame counterparties,as applicable.Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral.Refer to Note 16 for the net presentation of the Companys derivative instruments.2Refer to Note 16 for addit

93、ional information related to the estimated fair value.The following table presents the fair values of the Companys derivative instruments that were not designated as hedging instruments(in millions):Fair Value1,2Derivatives Not Designated as Hedging InstrumentsBalance Sheet Location1March 29,2024Dec

94、ember 31,2023Assets:Foreign currency contractsPrepaid expenses and other current assets$94$91 Foreign currency contractsOther noncurrent assets 1 3 Commodity contractsPrepaid expenses and other current assets 7 5 Other derivative instrumentsPrepaid expenses and other current assets 1 4 Total assets$

95、103$103 Liabilities:Foreign currency contractsAccounts payable and accrued expenses$30$106 Foreign currency contractsOther noncurrent liabilities 3 3 Commodity contractsAccounts payable and accrued expenses 51 62 Commodity contractsOther noncurrent liabilities 1 1 Other derivative instrumentsAccount

96、s payable and accrued expenses 2 4 Total liabilities$87$176 1All of the Companys derivative instruments are carried at fair value in our consolidated balance sheets after considering the impact of legally enforceable master netting agreements and cash collateral held or placed with the same counterp

97、arties,as applicable.Current disclosure requirements mandate that derivatives must also be disclosed without reflecting the impact of master netting agreements and cash collateral.Refer to Note 16 for the net presentation of the Companys derivative instruments.2Refer to Note 16 for additional inform

98、ation related to the estimated fair value.11Credit Risk Associated with DerivativesWe have established strict counterparty credit guidelines and enter into transactions only with financial institutions of investment grade or better.We monitor counterparty exposures regularly and review any downgrade

99、 in credit rating immediately.If a downgrade in the credit rating of a counterparty were to occur,we have provisions requiring collateral for substantially all of our transactions.To mitigate presettlement risk,minimum credit standards become more stringent as the duration of the derivative financia

100、l instrument increases.In addition,the Companys master netting agreements reduce credit risk by permitting the Company to net settle for transactions with the same counterparty.To minimize the concentration of credit risk,we enter into derivative transactions with a portfolio of financial institutio

101、ns.Furthermore,for certain derivative financial instruments,the Company has agreements with counterparties that require collateral to be exchanged based on changes in the fair value of the instruments.The Company classifies collateral payments and receipts as investing cash flows when the collateral

102、 account is in an asset position and as financing cash flows when the collateral account is in a liability position.As a result of these factors,we consider the risk of counterparty default to be minimal.Cash Flow Hedging StrategyThe Company uses cash flow hedges to minimize the variability in cash

103、flows of assets or liabilities or forecasted transactions caused by fluctuations in foreign currency exchange rates,commodity prices or interest rates.The changes in the fair values of derivatives designated as cash flow hedges are recorded in accumulated other comprehensive income(loss)(“AOCI”)and

104、are reclassified into the line item in our consolidated statement of income in which the hedged items are recorded in the same period the hedged items affect earnings.The changes in the fair values of hedges that are determined to be ineffective are immediately reclassified from AOCI into earnings.T

105、he maximum length of time for which the Company hedges its exposure to the variability in future cash flows is typically three years.The Company maintains a foreign currency cash flow hedging program to reduce the risk that our U.S.dollar net cash inflows from sales outside the United States and U.S

106、.dollar net cash outflows from procurement activities will be adversely affected by fluctuations in foreign currency exchange rates.We enter into forward contracts and purchase foreign currency options and collars(principally euro,British pound and Japanese yen)to hedge certain portions of forecaste

107、d cash flows denominated in foreign currencies.When the U.S.dollar strengthens against the foreign currencies,the decline in the present value of future foreign currency cash flows is partially offset by gains in the fair value of the derivative instruments.Conversely,when the U.S.dollar weakens,the

108、 increase in the present value of future foreign currency cash flows is partially offset by losses in the fair value of the derivative instruments.The total notional values of derivatives that were designated and qualified for the Companys foreign currency cash flow hedging program were$9,145 millio

109、n and$9,408 million as of March 29,2024 and December 31,2023,respectively.The Company uses cross-currency swaps to hedge the changes in cash flows of certain of its foreign currency denominated debt and other monetary assets or liabilities due to fluctuations in foreign currency exchange rates.For t

110、his hedging program,the Company recognizes in earnings each period the changes in carrying values of these foreign currency denominated assets and liabilities due to fluctuations in exchange rates.The changes in fair values of the cross-currency swap derivatives are recorded in AOCI with an immediat

111、e reclassification into earnings for the changes in fair values attributable to fluctuations in foreign currency exchange rates.The total notional value of derivatives that were designated as cash flow hedges for the Companys foreign currency denominated assets and liabilities was$958 million as of

112、both March 29,2024 and December 31,2023.The Company has entered into commodity futures contracts and other derivative instruments on various commodities to mitigate the price risk associated with forecasted purchases of materials used in our manufacturing process.These derivative instruments were de

113、signated as part of the Companys commodity cash flow hedging program.The objective of this hedging program is to reduce the variability of cash flows associated with future purchases of certain commodities.The total notional values of derivatives that were designated and qualified for this program w

114、ere$32 million and$54 million as of March 29,2024 and December 31,2023,respectively.Our Company monitors our mix of short-term debt and long-term debt regularly.We manage our risk to interest rate fluctuations through the use of derivative financial instruments.From time to time,the Company has ente

115、red into interest rate swap agreements and has designated these instruments as part of the Companys interest rate cash flow hedging program.The objective of this hedging program is to mitigate the risk of adverse changes in benchmark interest rates on the Companys future interest payments.The total

116、notional values of derivatives that were designated and qualified for this program were$1,150 million and$750 million as of March 29,2024 and December 31,2023,respectively.12The following table presents the pretax impact that changes in the fair values of derivatives designated as cash flow hedges h

117、ad on other comprehensive income(“OCI”),AOCI and earnings(in millions):Gain(Loss)Recognized in OCI Location of Gain(Loss)Recognized in IncomeGain(Loss)Reclassified from AOCI into IncomeThree Months Ended March 29,2024Foreign currency contracts$48 Net operating revenues$(17)Foreign currency contracts

118、 11 Cost of goods sold 3 Foreign currency contracts Interest expense(1)Foreign currency contracts(15)Other income(loss)net(28)Commodity contracts 1 Cost of goods sold(1)Interest rate contracts 1 Interest expense Total$46$(44)Three Months Ended March 31,2023Foreign currency contracts$(36)Net operatin

119、g revenues$1 Foreign currency contracts 4 Cost of goods sold 4 Foreign currency contracts Interest expense(1)Foreign currency contracts(13)Other income(loss)net Commodity contracts(2)Cost of goods sold(3)Total$(47)$1 As of March 29,2024,the Company estimates that it will reclassify into earnings dur

120、ing the next 12 months net losses of$17 million from the pretax amount recorded in AOCI as the anticipated cash flows occur.Fair Value Hedging StrategyThe Company uses interest rate swap agreements designated as fair value hedges to minimize exposure to changes in the fair value of fixed-rate debt t

121、hat result from fluctuations in benchmark interest rates.The Company also uses cross-currency interest rate swaps to hedge the changes in the fair value of foreign currency denominated debt relating to fluctuations in foreign currency exchange rates and benchmark interest rates.The changes in the fa

122、ir values of derivatives designated as fair value hedges and the offsetting changes in the fair values of the hedged items are recognized in earnings.As a result,any difference is reflected in earnings as ineffectiveness.When a derivative is no longer designated as a fair value hedge for any reason,

123、including termination and maturity,the remaining unamortized difference between the carrying value of the hedged item at that time and the face value of the hedged item is amortized to earnings over the remaining life of the hedged item,or immediately if the hedged item has matured or has been extin

124、guished.The total notional values of derivatives that were designated and qualified as fair value hedges of this type were$12,958 million and$13,693 million as of March 29,2024 and December 31,2023,respectively.The following table summarizes the pretax impact that changes in the fair values of deriv

125、atives designated as fair value hedges had on earnings(in millions):Hedging Instruments and Hedged ItemsLocation of Gain(Loss)Recognized in IncomeGain(Loss)Recognized in IncomeThree Months EndedMarch 29,2024March 31,2023Interest rate contractsInterest expense$(145)$208 Fixed-rate debtInterest expens

126、e 147 (222)Net impact of fair value hedging instruments$2$(14)13The following table summarizes the amounts recorded in our consolidated balance sheets related to hedged items in fair value hedging relationships(in millions):Cumulative Amount of Fair Value Hedging Adjustments1Carrying Values of Hedge

127、d ItemsIncluded in the Carrying Values of Hedged ItemsRemaining for Which Hedge Accounting Has Been DiscontinuedBalance Sheet Location of Hedged ItemsMarch 29,2024December 31,2023March 29,2024December 31,2023March 29,2024December 31,2023Current maturities of long-term debt$552$1$Long-term debt 11,85

128、3 12,186 (1,236)(1,135)155 162 1Cumulative amount of fair value hedging adjustments does not include changes due to foreign currency exchange rate fluctuations.In June 2023,the Company amended the terms of its interest rate swap agreements to implement a forward-looking interest rate based on the Se

129、cured Overnight Financing Rate(“SOFR”)in place of the London Interbank Offered Rate(“LIBOR”).Since the interest rate swap agreements were affected by reference rate reform,the Company applied the expedients and exceptions provided to preserve the past presentation of its derivatives without de-desig

130、nating the existing hedging relationships.All amendments to interest rate swap agreements were executed with the existing counterparties and did not change the notional amounts,maturity dates or other critical terms of the hedging relationships.Hedges of Net Investments in Foreign Operations Strateg

131、yThe Company uses forward contracts and a portion of its foreign currency denominated debt,a non-derivative financial instrument,to protect the value of our net investments in a number of foreign operations.For derivative financial instruments that are designated and qualify as hedges of net investm

132、ents in foreign operations,the changes in the fair values of the derivative financial instruments are recognized in net foreign currency translation adjustments,a component of AOCI,to offset the changes in the values of the net investments being hedged.For non-derivative financial instruments that a

133、re designated and qualify as hedges of net investments in foreign operations,the changes in the carrying values of the designated portions of the non-derivative financial instruments due to fluctuations in foreign currency exchange rates are recorded in net foreign currency translation adjustments.A

134、ny ineffective portions of net investment hedges are reclassified from AOCI into earnings during the period of change.The following table summarizes the notional values and pretax impact of changes in the fair values of instruments designated as net investment hedges(in millions):Notional ValuesGain

135、(Loss)Recognized in OCIas ofThree Months Ended March 29,2024December 31,2023March 29,2024March 31,2023Foreign currency contracts$150$2$Foreign currency denominated debt 11,624 12,437 272 (154)Total$11,624$12,587$274$(154)The Company reclassified a gain of$3 million related to net investment hedges f

136、rom AOCI into earnings during the three months ended March 29,2024.The Company did not reclassify any gains or losses during the three months ended March 31,2023.In addition,the Company did not have any ineffectiveness related to net investment hedges during the three months ended March 29,2024 and

137、March 31,2023.The cash inflows and outflows associated with the Companys derivative contracts designated as net investment hedges are classified in the line item other investing activities in our consolidated statement of cash flows.Economic(Non-Designated)Hedging StrategyIn addition to derivative i

138、nstruments that have been designated and qualify for hedge accounting,the Company also uses certain derivatives as economic hedges of foreign currency,interest rate and commodity exposure.Although these derivatives were not designated and/or did not qualify for hedge accounting,they are effective ec

139、onomic hedges.The changes in the fair values of economic hedges are immediately recognized in earnings.The Company uses foreign currency economic hedges to offset the earnings impact that fluctuations in foreign currency exchange rates have on certain monetary assets and liabilities denominated in n

140、onfunctional currencies.The changes in the fair values of economic hedges used to offset those monetary assets and liabilities are immediately recognized in earnings in the line item other income(loss)net in our consolidated statement of income.In addition,we use foreign currency economic hedges to

141、minimize the variability in cash flows associated with fluctuations in foreign currency exchange rates,including those related 14to certain acquisition and divestiture activities.The changes in the fair values of economic hedges used to offset the variability in U.S.dollar net cash flows are immedia

142、tely recognized in earnings in the line items net operating revenues,cost of goods sold or other income(loss)net in our consolidated statement of income,as applicable.The total notional values of derivatives related to our foreign currency economic hedges were$6,023 million and$6,989 million as of M

143、arch 29,2024 and December 31,2023,respectively.The Company uses interest rate contracts as economic hedges to minimize exposure to changes in the fair value of fixed-rate debt that result from fluctuations in benchmark interest rates.As of March 29,2024 and December 31,2023,we did not have any inter

144、est rate contracts used as economic hedges.The Company also uses certain derivatives as economic hedges to mitigate the price risk associated with the purchase of materials used in the manufacturing process and vehicle fuel.The changes in the fair values of these economic hedges are immediately reco

145、gnized in earnings in the line items net operating revenues,cost of goods sold,or selling,general and administrative expenses in our consolidated statement of income,as applicable.The total notional values of derivatives related to our economic hedges of this type were$305 million and$325 million as

146、 of March 29,2024 and December 31,2023,respectively.The following table presents the pretax impact that changes in the fair values of derivatives not designated as hedging instruments had on earnings(in millions):Derivatives Not Designated as Hedging InstrumentsLocation of Gain(Loss)Recognized in In

147、comeGain(Loss)Recognized in IncomeThree Months EndedMarch 29,2024March 31,2023Foreign currency contractsNet operating revenues$61$(7)Foreign currency contractsCost of goods sold 14 28 Foreign currency contractsOther income(loss)net 38 (11)Commodity contractsCost of goods sold(19)(46)Other derivative

148、 instrumentsSelling,general and administrative expenses 6 3 Total$100$(33)NOTE 7:SUPPLY CHAIN FINANCE PROGRAMOur current payment terms with the majority of our suppliers are 120 days.Two global financial institutions offer a voluntary supply chain finance(“SCF”)program,which enables our suppliers,at

149、 their sole discretion,to sell their receivables from the Company to these financial institutions on a non-recourse basis at a rate that leverages our credit rating and thus may be more beneficial to them.The SCF program is available to suppliers of goods and services included in cost of goods sold

150、and selling,general and administrative expenses in our consolidated statement of income.The Company and our suppliers agree on contractual terms for the goods and services we procure,including prices,quantities and payment terms,regardless of whether the supplier elects to participate in the SCF pro

151、gram.The suppliers sell goods or services,as applicable,to the Company and issue the associated invoices to the Company based on the agreed-upon contractual terms.Then,if they are participating in the SCF program,our suppliers,at their sole discretion,determine which invoices,if any,they want to sel

152、l to the financial institutions.Our suppliers voluntary inclusion of invoices in the SCF program has no bearing on our payment terms.No guarantees are provided by the Company or any of our subsidiaries under the SCF program.We have no economic interest in a suppliers decision to participate in the S

153、CF program,and we have no direct financial relationship with the financial institutions,as it relates to the SCF program.Accordingly,amounts due to our suppliers that elected to participate in the SCF program are included in the line item accounts payable and accrued expenses in our consolidated bal

154、ance sheet.All activity related to amounts due to suppliers that elected to participate in the SCF program is reflected within the operating activities section of our consolidated statement of cash flows.As of March 29,2024 and December 31,2023,the amount of obligations outstanding that the Company

155、has confirmed as valid to the financial institutions under the SCF program was$1,181 million and$1,421 million,respectively.NOTE 8:DEBT AND BORROWING ARRANGEMENTSLoans and notes payable consist primarily of commercial paper issued in the United States.As of March 29,2024 and December 31,2023,we had$

156、5,722 million and$4,209 million,respectively,in outstanding commercial paper borrowings.15NOTE 9:COMMITMENTS AND CONTINGENCIES GuaranteesAs of March 29,2024,we were contingently liable for guarantees of indebtedness owed by third parties of$762 million,of which$85 million was related to variable int

157、erest entities.Our guarantees are primarily related to third-party customers,bottlers and vendors and have arisen through the normal course of business.These guarantees have various terms,and none of these guarantees is individually significant.These amounts represent the maximum potential future pa

158、yments that we could be required to make under the guarantees.However,management has concluded that the likelihood of any significant amounts being paid by our Company under these guarantees is not probable.Concentrations of Credit RiskWe believe our exposure to concentrations of credit risk is limi

159、ted due to the diverse geographic areas covered by our operations.Legal ContingenciesThe Company is involved in various legal proceedings.We establish reserves for specific legal proceedings when we determine that the likelihood of an unfavorable outcome is probable and the amount of loss can be rea

160、sonably estimated.Management has also identified certain other legal matters where we believe an unfavorable outcome is reasonably possible and/or for which no estimate of possible losses can be made.Management believes that the total liabilities of the Company that may arise as a result of currentl

161、y pending legal proceedings(excluding tax audit claims)will not have a material adverse effect on the Company taken as a whole.Tax AuditsThe Company is involved in various tax matters,with respect to some of which the outcome is uncertain.These uncertain tax matters may result in the assessment of a

162、dditional taxes.On September 17,2015,the Company received a Statutory Notice of Deficiency(“Notice”)from the United States Internal Revenue Service(“IRS”)seeking approximately$3.3 billion of additional federal income tax for years 2007 through 2009.In the Notice,the IRS stated its intent to realloca

163、te over$9 billion of income to the U.S.parent company from certain of its foreign affiliates that the U.S.parent company licensed to manufacture,distribute,sell,market and promote its products in certain non-U.S.markets.The Notice concerned the Companys transfer pricing between its U.S.parent compan

164、y and certain of its foreign affiliates.IRS rules governing transfer pricing require arms-length pricing of transactions between related parties such as the Companys U.S.parent and its foreign affiliates.To resolve the same transfer pricing issue for the tax years 1987 through 1995,the Company and t

165、he IRS had agreed in 1996 on an arms-length methodology for determining the amount of U.S.taxable income that the U.S.parent company would report as compensation from its foreign licensees.The Company and the IRS memorialized this accord in a closing agreement resolving that dispute(“Closing Agreeme

166、nt”).The Closing Agreement provided that,absent a change in material facts or circumstances or relevant federal tax law,in calculating the Companys income taxes going forward,the Company would not be assessed penalties by the IRS for using the agreed-upon tax calculation methodology that the Company

167、 and the IRS agreed would be used for the 1987 through 1995 tax years.The IRS audited and confirmed the Companys compliance with the agreed-upon Closing Agreement methodology in five successive audit cycles for tax years 1996 through 2006.The September 17,2015 Notice from the IRS retroactively rejec

168、ted the previously agreed-upon methodology for the 2007 through 2009 tax years in favor of an entirely different methodology,without prior notice to the Company.Using the new tax calculation methodology,the IRS reallocated over$9 billion of income to the U.S.parent company from its foreign licensees

169、 for tax years 2007 through 2009.Consistent with the Closing Agreement,the IRS did not assert penalties,and it has yet to do so.The IRS designated the Companys matter for litigation on October 15,2015.Litigation designation is an IRS determination that forecloses to a company any and all alternative

170、 means for resolution of a tax dispute.As a result of the IRS designation of the Companys matter for litigation,the Company was forced to either accept the IRS newly imposed tax assessment and pay the full amount of the asserted tax or litigate the matter in the federal courts.The matter remains sub

171、ject to the IRS litigation designation,preventing the Company from any attempt to settle or otherwise mutually resolve the matter with the IRS.The Company consequently initiated litigation by filing a petition in the U.S.Tax Court(“Tax Court”)in December 2015,challenging the tax adjustments enumerat

172、ed in the Notice.16Prior to trial,the IRS increased its transfer pricing adjustment by$385 million,resulting in an additional tax adjustment of$135 million.The Company obtained a summary judgment in its favor on a different matter related to Mexican foreign tax credits,which thereafter effectively r

173、educed the IRS potential tax adjustment by$138 million.The trial was held in the Tax Court from March through May 2018,and final post-trial briefs were filed and exchanged in April 2019.On November 18,2020,the Tax Court issued an opinion(“Opinion”)in which it predominantly sided with the IRS but agr

174、eed with the Company that dividends previously paid by the foreign licensees to the U.S.parent company in reliance upon the Closing Agreement should continue to be allowed to offset royalties,including those that would become payable to the Company in accordance with the Opinion.On November 8,2023,t

175、he Tax Court issued a supplemental opinion(together with the original Tax Court opinion,“Opinions”),siding with the IRS in concluding both that the blocked-income regulations apply to the Companys operations and that the Tax Court opinion in 3M Co.&Subs.v.Commissioner(February 9,2023)controlled as t

176、o the validity of those regulations.The Company believes that the IRS and the Tax Court misinterpreted and misapplied the applicable regulations in reallocating income earned by the Companys foreign licensees to increase the Companys U.S.tax.Moreover,the Company believes that the retroactive imposit

177、ion of such tax liability using a calculation methodology different from that previously agreed upon by the IRS and the Company,and audited by the IRS for over a decade,is unconstitutional.The Company intends to assert its claims on appeal and vigorously defend its position.In determining the amount

178、 of tax reserve to be recorded as of December 31,2020,the Company completed the required two-step evaluation process prescribed by Accounting Standards Codification 740,Accounting for Income Taxes.In doing so,we consulted with outside advisors,and we reviewed and considered relevant laws,rules,and r

179、egulations,including,but not limited to,the Opinions and relevant caselaw.We also considered our intention to vigorously defend our positions and assert our various well-founded legal claims via every available avenue of appeal.We concluded,based on the technical and legal merits of the Companys tax

180、 positions,that it is more likely than not the Companys tax positions will ultimately be sustained on appeal.In addition,we considered a number of alternative transfer pricing methodologies,including the methodology asserted by the IRS and affirmed in the Opinions(“Tax Court Methodology”),that could

181、 be applied by the courts upon final resolution of the litigation.Based on the required probability analysis,we determined the methodologies we believe the federal courts could ultimately order to be used in calculating the Companys tax.As a result of this analysis,we recorded a tax reserve of$438 m

182、illion during the year ended December 31,2020 related to the application of the resulting methodologies as well as the different tax treatment applicable to dividends originally paid to the U.S.parent company by its foreign licensees,in reliance upon the Closing Agreement,that would be recharacteriz

183、ed as royalties in accordance with the Opinions and the Companys analysis.The Companys conclusion that it is more likely than not the Companys tax positions will ultimately be sustained on appeal is unchanged as of March 29,2024.However,we updated our calculation of the methodologies we believe the

184、federal courts could ultimately order to be used in calculating the Companys tax.As a result of the application of the required probability analysis to these updated calculations and the accrual of interest through the current reporting period,we updated our tax reserve as of March 29,2024 to$447 mi

185、llion.While the Company strongly disagrees with the IRS positions and the portions of the Opinions affirming such positions,it is possible that some portion or all of the adjustment proposed by the IRS and sustained by the Tax Court could ultimately be upheld.In that event,the Company would likely b

186、e subject to significant additional liabilities for tax years 2007 through 2009,and potentially also for subsequent years,which could have a material adverse impact on the Companys financial position,results of operations and cash flows.The Company calculated the potential impact of applying the Tax

187、 Court Methodology to reallocate income from foreign licensees potentially covered within the scope of the Opinions,assuming such methodology were to be ultimately upheld by the courts,and the IRS were to decide to apply that methodology to subsequent years,with consent of the federal courts.This im

188、pact would include taxes and interest accrued through December 31,2023 for the 2007 through 2009 litigated tax years and for subsequent tax years from 2010 through 2023.The calculations incorporated the estimated impact of correlative adjustments to the previously accrued transition tax payable unde

189、r the 2017 Tax Cuts and Jobs Act.The Company estimates that the potential aggregate incremental tax and interest liability could be approximately$16 billion as of December 31,2023.Additional income tax and interest would continue to accrue until the time any such potential liability,or portion there

190、of,were to be paid.The Company estimates the impact of the continued application of the Tax Court Methodology for the three months ended March 29,2024 would increase the potential aggregate incremental tax and interest liability by approximately$500 million.We currently project the continued applica

191、tion of the Tax Court Methodology in future years,assuming similar facts and circumstances as of December 31,2023,would result in an incremental annual tax liability that would increase the Companys effective tax rate by approximately 3.5%.17The Company and the IRS are now in the process of agreeing

192、 on the tax impacts of the Opinions.Subsequent to the completion of this process,the Tax Court will render a decision in the case.The Company will have 90 days thereafter to file a notice of appeal to the U.S.Court of Appeals for the Eleventh Circuit.The IRS will then seek to collect,and the Company

193、 expects to pay,any additional tax related to the 2007 through 2009 tax years reflected in the Tax Court decision(and interest thereon).The Company currently estimates that the payment to be made at that time related to the 2007 through 2009 tax years,which is included in the above estimate of the p

194、otential aggregate incremental tax and interest liability,would be approximately$5.9 billion(including interest accrued through March 29,2024),plus any additional interest accrued through the time of payment.Some or all of this amount,plus accrued interest,would be refunded if the Company were to pr

195、evail on appeal.Risk Management ProgramsThe Company has numerous global insurance programs in place to help protect the Company from the risk of loss.In general,we are self-insured for large portions of many different types of claims;however,we do use commercial insurance above our self-insured rete

196、ntions to reduce the Companys risk of catastrophic loss.Our reserves for the Companys self-insured losses are estimated using actuarial methods and assumptions of the insurance industry,adjusted for our specific expectations based on our claims history.Our self-insurance reserves totaled$187 million

197、 and$197 million as of March 29,2024 and December 31,2023,respectively.NOTE 10:OTHER COMPREHENSIVE INCOME AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our consolidated balance sheet as a component of shareowners equity,which also includes our proportionate sha

198、re of equity method investees AOCI.OCI attributable to noncontrolling interests is allocated to,and included in,our consolidated balance sheet as part of the line item equity attributable to noncontrolling interests.AOCI attributable to shareowners of The Coca-Cola Company consisted of the following

199、,net of tax(in millions):March 29,2024December 31,2023Net foreign currency translation adjustments$(13,005)$(12,726)Accumulated net gains(losses)on derivatives(105)(154)Unrealized net gains(losses)on available-for-sale debt securities 4 (1)Adjustments to pension and other postretirement benefit liab

200、ilities(1,398)(1,394)Accumulated other comprehensive income(loss)$(14,504)$(14,275)The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests(in millions):Three Months Ended March 29,2024Shareowners ofThe Coca

201、-Cola CompanyNoncontrollingInterestsTotalConsolidated net income$3,177$8$3,185 Other comprehensive income:Net foreign currency translation adjustments(279)(24)(303)Net gains(losses)on derivatives1 49 49 Net change in unrealized gains(losses)on available-for-sale debt securities2 5 5 Net change in pe

202、nsion and other postretirement benefit liabilities(4)(4)Total comprehensive income(loss)$2,948$(16)$2,932 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

203、 on available-for-sale debt securities.18The 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 March 29,2024Before-Tax Amount Income TaxAfter-Tax Amount Foreign currency t

204、ranslation adjustments:Translation adjustments arising during the period$(34)$(35)$(69)Reclassification adjustments recognized in net income 103 103 Gains(losses)on intra-entity transactions that are of a long-term investment nature(518)(518)Gains(losses)on net investment hedges arising during the p

205、eriod1 274 (69)205 Net foreign currency translation adjustments$(175)$(104)$(279)Derivatives:Gains(losses)arising during the period$27$(11)$16 Reclassification adjustments recognized in net income 44 (11)33 Net gains(losses)on derivatives1$71$(22)$49 Available-for-sale debt securities:Reclassificati

206、on adjustments recognized in net income$6$(1)$5 Net change in unrealized gains(losses)on available-for-sale debt securities2$6$(1)$5 Pension and other postretirement benefit liabilities:Net pension and other postretirement benefit liabilities arising during the period$(13)$(8)$(21)Reclassification a

207、djustments recognized in net income 22 (5)17 Net change in pension and other postretirement benefit liabilities$9$(13)$(4)Other comprehensive income(loss)attributable to shareowners of The Coca-Cola Company$(89)$(140)$(229)1 Refer to Note 6 for additional information related to the net gains or loss

208、es 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.Three Months Ended March 31,2023Before-Tax Amount Income TaxAfter-Tax Amount Foreign currency translation adjustments:Translation adjustments

209、arising during the period$437$(91)$346 Reclassification adjustments recognized in net income 101 101 Gains(losses)on intra-entity transactions that are of a long-term investment nature 292 292 Gains(losses)on net investment hedges arising during the period1(154)39 (115)Net foreign currency translati

210、on adjustments$676$(52)$624 Derivatives:Gains(losses)arising during the period$(76)$7$(69)Reclassification adjustments recognized in net income(1)(1)Net gains(losses)on derivatives1$(77)$7$(70)Available-for-sale debt securities:Unrealized gains(losses)arising during the period$9$(3)$6 Reclassificati

211、on adjustments recognized in net income 3 (1)2 Net change in unrealized gains(losses)on available-for-sale debt securities2$12$(4)$8 Pension and other postretirement benefit liabilities:Net pension and other postretirement benefit liabilities arising during the period$(5)$(2)$(7)Reclassification adj

212、ustments recognized in net income 22 (4)18 Net change in pension and other postretirement benefit liabilities$17$(6)$11 Other comprehensive income(loss)attributable to shareowners of The Coca-Cola Company$628$(55)$573 1Refer to Note 6 for additional information related to the net gains or losses on

213、derivative instruments.2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.19The following table presents the amounts and line items in our consolidated statements of income where adjustments reclassified from AOCI into inco

214、me were recorded(in millions):Amount Reclassified from AOCIinto IncomeDescription of AOCI ComponentFinancial Statement Line ItemThree Months Ended March 29,2024Foreign currency translation adjustments:Divestitures,deconsolidations and other1Other income(loss)net$103 Income before income taxes 103 In

215、come taxes Consolidated net income$103 Derivatives:Foreign currency contractsNet operating revenues$17 Foreign currency contracts and commodity contracts Cost of goods sold(2)Foreign currency contractsInterest expense 1 Foreign currency contractsOther income(loss)net 28 Income before income taxes 44

216、 Income taxes(11)Consolidated net income$33 Available-for-sale debt securities:Sale of debt securitiesOther income(loss)net$6 Income before income taxes 6 Income taxes(1)Consolidated net income$5 Pension and other postretirement benefit liabilities:Divestitures,deconsolidations and other2Other incom

217、e(loss)net$(2)Recognized net actuarial loss(gain)Other income(loss)net 25 Recognized prior service cost(credit)Other income(loss)net(1)Income before income taxes 22 Income taxes(5)Consolidated net income$17 1Related to the refranchising of our bottling operations in the Philippines and Bangladesh an

218、d the sale of our ownership interest in an equity method investee in Thailand.Refer to Note 2.2Related to the refranchising of our bottling operations in the Philippines and Bangladesh.Refer to Note 2.20NOTE 11:CHANGES IN EQUITYThe following tables provide a reconciliation of the beginning and endin

219、g carrying amounts of total equity,equity attributable to shareowners of The Coca-Cola Company and equity attributable to noncontrolling interests(in millions):Shareowners of The Coca-Cola Company Three Months Ended March 29,2024Common Shares Outstanding TotalReinvested EarningsAccumulated Other Com

220、prehensive Income(Loss)Common StockCapital SurplusTreasury StockNon-controlling InterestsDecember 31,2023 4,308$27,480$73,782$(14,275)$1,760$19,209$(54,535)$1,539 Comprehensive income(loss)2,932 3,177 (229)(16)Dividends paid/payable to shareowners of The Coca-Cola Company($0.485 per share)(2,091)(2,

221、091)Dividends paid to noncontrolling interests (2)(2)Divestitures,deconsolidations and other (4)(4)Purchases of treasury stock(10)(621)(621)Impact related to stock-based compensation plans 10 252 112 140 March 29,2024 4,308$27,946$74,868$(14,504)$1,760$19,321$(55,016)$1,517 Shareowners of The Coca-C

222、ola Company Three Months Ended March 31,2023Common Shares Outstanding TotalReinvested EarningsAccumulated Other Comprehensive Income(Loss)Common StockCapital SurplusTreasury StockNon-controlling InterestsDecember 31,2022 4,328$25,826$71,019$(14,895)$1,760$18,822$(52,601)$1,721 Comprehensive income(l

223、oss)3,611 3,107 573 (69)Dividends paid/payable to shareowners of The Coca-Cola Company($0.46 per share)(1,989)(1,989)Dividends paid to noncontrolling interests (4)(4)Purchases of treasury stock(12)(749)(749)Impact related to stock-based compensation plans 9 173 70 103 Other activities (3)3 March 31,

224、2023 4,325$26,868$72,137$(14,322)$1,760$18,889$(53,247)$1,651 NOTE 12:SIGNIFICANT OPERATING AND NONOPERATING ITEMSOther Operating ChargesDuring the three months ended March 29,2024,the Company recorded other operating charges of$1,573 million.These charges primarily consisted of$765 million related

225、to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife,LLC(“fairlife”)in 2020,$760 million related to the impairment of our BodyArmor trademark and$36 million related to the Companys productivity and reinvestment program.In additi

226、on,other operating charges included$7 million for transaction costs related to the refranchising of our bottling operations in certain territories in India,$4 million for the amortization of noncompete agreements related to the BA Sports Nutrition,LLC(“BodyArmor”)acquisition in 2021 and$1 million re

227、lated to tax litigation expense.During the three months ended March 31,2023,the Company recorded other operating charges of$111 million.These charges primarily consisted of$62 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlif

228、e acquisition,$27 million related to the Companys productivity and reinvestment program and$18 million related to the restructuring of our North America operating unit.In addition,other operating charges included$4 million for the amortization of noncompete agreements related to the BodyArmor acquis

229、ition.21Refer to Note 2 for additional information on the refranchising of our bottling operations in certain territories in India.Refer to Note 9 for additional information on the tax litigation.Refer to Note 13 for additional information on the Companys restructuring initiatives.Refer to Note 16 f

230、or additional information on the fairlife acquisition and the BodyArmor impairment.Refer to Note 17 for the impact these charges had on our operating segments and Corporate.Other Nonoperating ItemsEquity Income(Loss)NetDuring the three months ended March 29,2024 and March 31,2023,the Company recorde

231、d net charges of$25 million and$82 million,respectively.These amounts represent the Companys proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.Refer to Note 17 for the impact these items had on our operating segments and Corporate.

232、Other Income(Loss)NetDuring the three months ended March 29,2024,the Company recognized net gains of$599 million and$293 million related to the refranchising of our bottling operations in the Philippines and certain territories in India,respectively.The Company also recognized a net gain of$516 mill

233、ion related to the sale of our ownership interest in an equity method investee in Thailand.Additionally,the Company recognized a net gain of$178 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on availa

234、ble-for-sale debt securities.The Company recorded a loss of$7 million related to post-closing adjustments for the refranchising of our bottling operations in Vietnam in 2023.During the three months ended March 31,2023,the Company recognized a net gain of$439 million related to the refranchising of o

235、ur bottling operations in Vietnam.Additionally,the Company recognized a net gain of$113 million 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 2 for addition

236、al information on the refranchising of our bottling operations,as well as the sale of our ownership interest in an equity method investee in Thailand.Refer to Note 4 for additional information on equity and debt securities.Refer to Note 17 for the impact these items had on our operating segments and

237、 Corporate.NOTE 13:RESTRUCTURINGProductivity and Reinvestment ProgramIn February 2012,the Company announced a productivity and reinvestment program designed to strengthen our brands and reinvest our resources to drive long-term profitable growth.The program was expanded multiple times,with the last

238、expansion occurring in April 2017.The remaining initiatives included in this program,which are primarily designed to further simplify and standardize our organization,will be completed in 2024.During the three months ended March 29,2024 and March 31,2023,the Company incurred expenses of$36 million a

239、nd$27 million,respectively,related to our productivity and reinvestment program.These expenses primarily included internal and external costs associated with the implementation of the programs initiatives and were recorded in the line item other operating charges in our consolidated statements of in

240、come.Refer to Note 17 for the impact these expenses had on our operating segments and Corporate.The Company has incurred total pretax expenses of$4,329 million related to this program since it commenced.North America Operating Unit RestructuringIn November 2022,the Company announced a restructuring

241、program for our North America operating unit designed to better align its operating structure with its customers and bottlers.The evolved operating structure brought together all bottler-related components(franchise leadership,commercial leadership,digital,governance and technical innovation)and hel

242、ped streamline how we work.During the three months ended March 31,2023,the Company incurred expenses of$18 million related to this program.These expenses primarily included severance costs and were recorded in the line item other operating charges in our consolidated statement of income.The Company

243、has incurred total pretax expenses of$65 million related to this program since it commenced.This restructuring program was complete as of December 31,2023.22NOTE 14:PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Net periodic benefit cost or income for our pension and other postretirement benefit pla

244、ns consisted of the following(in millions):Pension PlansOther Postretirement Benefit PlansThree Months EndedMarch 29,2024March 31,2023March 29,2024March 31,2023Service cost$27$24$1$1 Interest cost 77 81 4 7 Expected return on plan assets1(118)(119)(2)(4)Amortization of prior service cost(credit)(1)(

245、1)Amortization of net actuarial loss(gain)26 24 (1)(1)Net periodic benefit cost(income)$12$10$1$2 1The weighted-average expected long-term rates of return on plan assets used in computing 2024 net periodic benefit cost(income)were 7.00%for pension plans and 4.50%for other postretirement benefit plan

246、s.All of the amounts in the table above,other than service cost,were recorded in the line item other income(loss)net in our consolidated statements of income.During the three months ended March 29,2024,the Company contributed$6 million to our pension trusts,offset by a$44 million transfer of surplus

247、 international plan assets from pension trusts to general assets of the Company.We anticipate making additional contributions of approximately$27 million during the remainder of 2024.The Company contributed$5 million to our pension trusts during the three months ended March 31,2023.NOTE 15:INCOME TA

248、XESThe Company recorded income taxes of$687 million(17.7%effective tax rate)and$940 million(23.2%effective tax rate)during the three months ended March 29,2024 and March 31,2023,respectively.The Companys effective tax rates for the three months ended March 29,2024 and March 31,2023 vary from the sta

249、tutory U.S.federal tax rate of 21.0%primarily due to the tax impact of significant operating and nonoperating items,as described in Note 12,along with the tax benefits of having significant earnings generated outside of the United States and significant earnings generated in investments accounted fo

250、r under the equity method,both of which are generally taxed at rates lower than the statutory U.S.federal tax rate.On November 18,2020,the Tax Court issued the Opinion regarding the Companys 2015 litigation with the IRS involving transfer pricing tax adjustments in which it predominantly sided with

251、the IRS.On November 8,2023,the Tax Court issued a supplemental opinion,siding with the IRS in concluding both that the blocked-income regulations apply to the Companys operations and that the Tax Court opinion in 3M Co.&Subs.v.Commissioner(February 9,2023)controlled as to the validity of those regul

252、ations.The Company strongly disagrees with the Opinions and intends to vigorously defend its position.Refer to Note 9.NOTE 16:FAIR VALUE MEASUREMENTSRecurring Fair Value MeasurementsThe following tables summarize assets and liabilities measured at fair value on a recurring basis(in millions):March 2

253、9,2024Level 1Level 2Level 3Other3NettingAdjustment4Fair ValueMeasurementsAssets:Equity securities with readily determinable values1$1,814$197$7$88$2,106 Debt securities1 1,561 3 1,564 Derivatives2 275 (210)6 65 8Total assets$1,814$2,033$10$88$(210)$3,735 Liabilities:Contingent consideration liabilit

254、y$3,782 5$3,782 Derivatives2 1 1,444 (1,346)7 99 8Total liabilities$1$1,444$3,782$(1,346)$3,881 231Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities.2Refer to Note 6 for additional information related t

255、o the composition of our derivatives portfolio.3Certain investments that are measured at fair value using the net asset value per share(or its equivalent)practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4.4Amount

256、s represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties.There were no amounts subject to legally enforceable master netting agreements that manage

257、ment has chosen not to offset or that do not meet the offsetting requirements.Refer to Note 6.5Represents the fair value of the remaining milestone payment related to our acquisition of fairlife in 2020,which is contingent on fairlife achieving certain financial targets through 2024 and,if achieved,

258、is payable in 2025.This milestone payment is based on agreed-upon formulas related to fairlifes operating results,the resulting value of which is not subject to a ceiling.The fair value was determined using discounted cash flow analyses.We are required to remeasure this liability to fair value quart

259、erly,with any changes in the fair value recorded in income until the final milestone payment is made.6The Company is not obligated to return any cash collateral it has netted against its derivative position.7The Company has the right to reclaim$1,136 million in cash collateral it has netted against

260、its derivative position.8The Companys derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows:$32 million in the line item prepaid expenses and other current assets,$33 million in the line item other noncurrent assets,and$99 million in the line item

261、other noncurrent liabilities.Refer to Note 6 for additional information related to the composition of our derivatives portfolio.December 31,2023Level 1Level 2Level 3Other3NettingAdjustment4Fair ValueMeasurementsAssets:Equity securities with readily determinable values1$1,727$188$6$85$2,006 Debt secu

262、rities1 1,172 3 1,175 Derivatives2 275 (222)6 53 8Total assets$1,727$1,635$9$85$(222)$3,234 Liabilities:Contingent consideration liability$3,017 5$3,017 Derivatives2 3 1,445 (1,256)7 192 8Total liabilities$3$1,445$3,017$(1,256)$3,209 1Refer to Note 4 for additional information related to the composi

263、tion of our equity securities with readily determinable values and debt securities.2Refer to Note 6 for additional information related to the composition of our derivatives portfolio.3Certain investments that are measured at fair value using the net asset value per share(or its equivalent)practical

264、expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4.4Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collatera

265、l held or placed with the same counterparties.There were no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements.Refer to Note 6.5Represents the fair value of the remaining milestone payment related

266、to our acquisition of fairlife in 2020,which is contingent on fairlife achieving certain financial targets through 2024 and,if achieved,is payable in 2025.This milestone payment is based on agreed-upon formulas related to fairlifes operating results,the resulting value of which is not subject to a c

267、eiling.The fair value was determined using a Monte Carlo valuation model.We are required to remeasure this liability to fair value quarterly,with any changes in the fair value recorded in income until the final milestone payment is made.The Company made a milestone payment of$275 million during 2023

268、.6The Company was obligated to return$4 million in cash collateral it had netted against its derivative position.7The Company had the right to reclaim$1,039 million in cash collateral it had netted against its derivative position.8The Companys derivative financial instruments were recorded at fair v

269、alue in our consolidated balance sheet as follows:$53 million in the line item other noncurrent assets and$192 million in the line item other noncurrent liabilities.Refer to Note 6 for additional information related to the composition of our derivatives portfolio.Gross realized and unrealized gains

270、and losses on Level 3 assets and liabilities,excluding the contingent consideration liability,were not significant for the three months ended March 29,2024 and March 31,2023.The Company recognizes transfers between levels within the hierarchy as of the beginning of the reporting period.Gross transfe

271、rs between levels within the hierarchy were not significant for the three months ended March 29,2024 and March 31,2023.24Nonrecurring Fair Value MeasurementsDuring the three months ended March 29,2024,the Company recorded an asset impairment charge of$760 million related to our BodyArmor trademark i

272、n North America,which was primarily driven by revised projections of future operating results and higher discount rates resulting from changes in macroeconomic conditions since the acquisition date.The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inpu

273、ts.This charge was recorded in the line item other operating charges in our consolidated statement of income.The remaining carrying value of the trademark is$3,400 million.We did not recognize any gains or losses on assets measured at fair value on a nonrecurring basis during the three months ended

274、March 31,2023.Other Fair Value DisclosuresThe carrying values of cash and cash equivalents,short-term investments,trade accounts receivable,accounts payable and accrued expenses,and loans and notes payable approximate their fair values because of the relatively short-term maturities of these financi

275、al instruments.The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for those instruments.Where quoted prices are not available,the fair value is estimated using discounted cash flows and market-based expectations for interest rates,credit risk and the contra

276、ctual terms of the debt instruments.As of March 29,2024,the carrying value and fair value of our long-term debt,including the current portion,were$36,496 million and$31,883 million,respectively.As of December 31,2023,the carrying value and fair value of our long-term debt,including the current porti

277、on,were$37,507 million and$33,445 million,respectively.NOTE 17:OPERATING SEGMENTS Information about our Companys operations by operating segment and Corporate is as follows(in millions):Europe,Middle East&Africa Latin America NorthAmericaAsia Pacific Global Ventures BottlingInvestmentsCorporateElimi

278、nationsConsolidatedAs of and for the Three Months Ended March 29,2024 Net operating revenues:Third party$1,776$1,527$4,172$1,253$730$1,815$27$11,300 Intersegment 197 2 216 2 (417)Total net operating revenues 1,973 1,527 4,174 1,469 730 1,817 27 (417)11,300 Operating income(loss)1,080 942 445 654 55

279、156 (1,191)2,141 Income(loss)before income taxes 1,089 947 455 658 56 424 243 3,872 Identifiable operating assets 7,244 3,301 26,002 2,568 2 7,534 7,788 2 25,313 79,750 Investments1 386 725 15 70 13,349 5,097 19,642 As of and for the Three MonthsEnded March 31,2023 Net operating revenues:Third party

280、$1,831$1,386$3,902$1,185$707$1,944$25$10,980 Intersegment 193 2 186 2 (383)Total net operating revenues 2,024 1,386 3,904 1,371 707 1,946 25 (383)10,980 Operating income(loss)1,135 853 1,033 563 51 139 (407)3,367 Income(loss)before income taxes 1,142 855 1,041 423 57 504 31 4,053 Identifiable operat

281、ing assets 7,682 2,315 26,692 2,668 3 7,388 9,653 3 21,925 78,323 Investments1 401 681 15 77 13,200 4,707 19,081 As of December 31,2023 Identifiable operating assets$7,117$3,149$25,808$2,428 2$7,607$9,871 2$21,934$77,914 Investments1 389 712 15 71 13,639 4,963 19,789 1Principally equity method inves

282、tments and other investments in bottling companies.2Property,plant and equipment net in India represented 13%and 12%of consolidated property,plant and equipment net as of March 29,2024 and December 31,2023,respectively.3Property,plant and equipment net in the Philippines represented 10%of consolidat

283、ed property,plant and equipment net as of March 31,2023.As of December 31,2023,the Companys bottling operations in the Philippines met the criteria to be classified as held for sale.Refer to Note 2.25During the three months ended March 29,2024,the results of our operating segments and Corporate were

284、 impacted by the following items:Operating income(loss)and income(loss)before income taxes were reduced by$765 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.Refer to Note 16.Operating income(loss)an

285、d income(loss)before income taxes were reduced by$760 million for North America due to the impairment of our BodyArmor trademark.Refer to Note 16.Operating income(loss)and income(loss)before income taxes were reduced by$36 million for Corporate due to the Companys productivity and reinvestment progr

286、am.Refer to Note 13.Operating income(loss)and income(loss)before income taxes were reduced by$7 million for Corporate due to transaction costs related to the refranchising of our bottling operations in certain territories in India.Refer to Note 2.Operating income(loss)and income(loss)before income t

287、axes were reduced by$4 million for Corporate due to charges related to our acquisition of BodyArmor.Refer to Note 12.Income(loss)before income taxes was increased by$599 million for Corporate due to the refranchising of our bottling operations in the Philippines.Refer to Note 2.Income(loss)before in

288、come taxes was increased by$516 million for Corporate related to the sale of our ownership interest in an equity method investee in Thailand.Refer to Note 2.Income(loss)before income taxes was increased by$293 million for Corporate due to the refranchising of our bottling operations in certain terri

289、tories in India.Refer to Note 2.Income(loss)before income taxes was increased by$178 million for Corporate due 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.Incom

290、e(loss)before income taxes was reduced by$23 million for Bottling Investments and$2 million for Corporate due to the Companys proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees.Income(loss)before income taxes was reduced by$7 millio

291、n for Corporate related to post-closing adjustments for the refranchising of our bottling operations in Vietnam.Refer to Note 2.During the three months ended March 31,2023,the results of our operating segments and Corporate were impacted by the following items:Operating income(loss)and income(loss)b

292、efore income taxes were reduced by$62 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition.Refer to Note 16.Operating income(loss)and income(loss)before income taxes were reduced by$27 million for Corporat

293、e due to the Companys productivity and reinvestment program.Refer to Note 13.Operating income(loss)and income(loss)before income taxes were reduced by$18 million for North America due to the restructuring of our North America operating unit.Refer to Note 13.Operating income(loss)and income(loss)befo

294、re income taxes were reduced by$6 million for North America due 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 due to charges related to our acquisition of BodyArmor.Refer to

295、Note 12.Income(loss)before income taxes was increased by$439 million for Corporate due to the refranchising of our bottling operations in Vietnam.Refer to Note 2.Income(loss)before income taxes was increased by$113 million for Corporate due to realized and unrealized gains and losses on equity secur

296、ities 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$140 million for Asia Pacific and was increased by$58 million for Bottling Investments due to the Companys proportionate share of

297、 significant operating and nonoperating items recorded by certain of our equity method investees.26Item 2.Managements Discussion and Analysis of Financial Condition and Results of OperationsWhen used in this report,the terms“The Coca-Cola Company,”“Company,”“we,”“us”and“our”mean The Coca-Cola Compan

298、y and all entities included in our consolidated financial statements.CRITICAL ACCOUNTING POLICIES AND ESTIMATESRecoverability of Equity Method Investments and Indefinite-Lived Intangible AssetsOur Company faces many uncertainties and risks related to various economic,political and regulatory environ

299、ments in the countries and territories in which we operate,particularly in developing and emerging markets.Refer to the headings“Item 1A.Risk Factors”in Part I and“Our Business Challenges and Risks”in Part II of our Annual Report on Form 10-K for the year ended December 31,2023,as well as the headin

300、g“Operations Review”below for additional information related to our present business environment.As a result,management must make numerous assumptions,which involve a significant amount of judgment,when performing impairment tests of equity method investments and indefinite-lived intangible assets i

301、n various regions around the world.The performance of impairment tests involves critical accounting estimates.These estimates require significant management judgment and include inherent uncertainties.Factors that management must estimate include,among others,the economic lives of the assets,sales v

302、olume,pricing,royalty rates,cost of raw materials,delivery costs,long-term growth rates,discount rates,marketing spending,foreign currency exchange rates,tax rates,capital spending and proceeds from the sale of assets.The variability of these factors depends on a number of conditions,and thus our ac

303、counting estimates may change from period to period.These factors are even more difficult to estimate when global financial markets are highly volatile.As these factors are often interdependent and may not change in isolation,we do not believe it is practicable or meaningful to present the impact of

304、 changing a single factor.In November 2021,the Company acquired the remaining 85%ownership interest in,and now owns 100%of,BA Sports Nutrition,LLC(“BodyArmor”),which offers a line of sports performance and hydration beverages.During 2021,in conjunction with acquiring the remaining ownership interest

305、,we recognized a noncash gain of$834 million resulting from the remeasurement of our previously held equity interest in BodyArmor to fair value.The Company allocated$4.2 billion of the$5.6 billion purchase price to the BodyArmor trademark.As of December 31,2023,the fair value of the trademark approx

306、imated its carrying value.During the three months ended March 29,2024,the operating results related to the trademark were lower than expected.Therefore,the Company revised its projections of the future operating results related to the trademark which triggered the need to update its impairment analy

307、sis.As a result,the Company concluded that the fair value of the trademark was less than its carrying value and recorded an impairment charge of$760 million.The decrease in fair value was primarily driven by the revised projections of future operating results as well as higher discount rates resulti

308、ng from changes in macroeconomic conditions since the acquisition date.If the near-term operating results of this trademark do not achieve our revised financial projections,or if the macroeconomic conditions change causing the discount rate to increase without an offsetting increase in the operating

309、 results,it is likely that we would be required to recognize an additional impairment charge.Management will continue to monitor the fair value of this trademark in future periods.OPERATIONS REVIEWSales of our ready-to-drink beverages are somewhat seasonal,with the second and third calendar quarters

310、 typically accounting for the highest sales volumes.The volume of sales in the beverage business may be affected by weather conditions.Structural Changes,Acquired Brands and Newly Licensed BrandsIn order to continually improve upon the Companys operating performance,from time to time,we engage in bu

311、ying and selling ownership interests in bottling partners and other manufacturing operations.In addition,we periodically acquire brands and their related operations or enter into license agreements for certain brands to supplement our beverage offerings.These items impact our operating results and c

312、ertain key metrics used by management in assessing the Companys performance.Unit case volume growth is a key metric used by management to evaluate the Companys performance because it measures demand for our products at the consumer level.The Companys unit case volume represents the number of unit ca

313、ses(or unit case equivalents)of Company beverage products directly or indirectly sold by the Company and its bottling partners to customers or consumers and,therefore,reflects unit case volume for both consolidated and unconsolidated bottlers.Refer to the heading“Beverage Volume”below.Concentrate sa

314、les volume represents the amount of concentrates,syrups,source waters and powders/minerals(in all instances expressed in unit case equivalents)sold by,or used in finished products sold by,the Company to its bottling partners or other customers.For Costa non-ready-to-drink beverage products,concentra

315、te sales volume represents the amount of beverages,primarily measured in number of transactions(in all instances expressed in unit case equivalents),sold by the Company to customers or consumers.Refer to the heading“Beverage Volume”below.27When we analyze our net operating revenues,we generally cons

316、ider the following factors:(1)volume growth(concentrate sales volume or unit case volume,as applicable);(2)changes in price,product and geographic mix;(3)foreign currency exchange rate fluctuations;and(4)acquisitions and divestitures(including structural changes as defined below),as applicable.Refer

317、 to the heading“Net Operating Revenues”below.The Company sells concentrates and syrups to both consolidated and unconsolidated bottling partners.The ownership structure of our bottling partners impacts the timing of recognizing concentrate revenue and concentrate sales volume.When we sell concentrat

318、es or syrups to our consolidated bottling partners,we do not recognize the concentrate revenue or concentrate sales volume until the bottling partner has sold finished products manufactured from the concentrates or syrups to a third party.When we sell concentrates or syrups to our unconsolidated bot

319、tling partners,we recognize the concentrate revenue and concentrate sales volume when the concentrates or syrups are sold to the bottling partner.The subsequent sale of the finished products manufactured from the concentrates or syrups to a third party does not impact the timing of recognizing the c

320、oncentrate revenue or concentrate sales volume.When we account for an unconsolidated bottling partner as an equity method investment,we eliminate the intercompany profit related to concentrate sales,to the extent of our ownership interest,until the equity method investee has sold finished products m

321、anufactured from the concentrates or syrups to a third party.We typically report unit case volume when finished products manufactured from the concentrates or syrups are sold to a third party,regardless of our ownership interest in the bottling partner,if any.We generally refer to acquisitions and d

322、ivestitures of bottling operations as“structural changes,”which are a component of acquisitions and divestitures.Typically,structural changes do not impact the Companys unit case volume or concentrate sales volume on a consolidated basis or at the geographic operating segment level.We report unit ca

323、se volume for all sales of Company beverage products,regardless of our ownership interest in the bottling partner,if any.However,the unit case volume reported by our Bottling Investments operating segment is generally impacted by structural changes because it only includes the unit case volume of ou

324、r consolidated bottling operations.Refer to Note 2 of Notes to Consolidated Financial Statements for additional information on the Companys divestitures.“Acquired brands”refers to brands acquired during the past 12 months.Typically,the Company has not reported unit case volume or recognized concentr

325、ate sales volume related to acquired brands in periods prior to the closing of a transaction.Therefore,the unit case volume and concentrate sales volume related to an acquired brand are incremental to prior year volume.We generally do not consider the acquisition of a brand to be a structural change

326、.“Licensed brands”refers to brands not owned by the Company but for which we hold certain rights,generally including,but not limited to,distribution rights,and from which we derive an economic benefit when the related products are sold.Typically,the Company has not reported unit case volume or recog

327、nized concentrate sales volume related to a licensed brand in periods prior to the beginning of the term of a license agreement.Therefore,in the year that a license agreement is entered into,the unit case volume and concentrate sales volume related to a licensed brand are incremental to prior year v

328、olume.We generally do not consider the licensing of a brand to be a structural change.In May 2023,the Company acquired certain brands in Asia Pacific.The impact of acquiring these brands has been included in acquisitions and divestitures in our analysis of net operating revenues on a consolidated ba

329、sis as well as for the Asia Pacific operating segment.Additionally,in January 2023,the Company refranchised our bottling operations in Vietnam.In January and February 2024,the Company refranchised our bottling operations in certain territories in India,and in February 2024,the Company refranchised o

330、ur bottling operations in Bangladesh and the Philippines.The impact of each of these refranchisings has been included as a structural change in our analysis of net operating revenues on a consolidated basis as well as for the Bottling Investments and Asia Pacific operating segments for the three mon

331、ths ended March 29,2024.Beverage VolumeWe measure the volume of Company beverage products sold in two ways:(1)unit cases of finished products and(2)concentrate sales.As used in this report,“unit case”means a unit of measurement equal to 192 U.S.fluid ounces of finished beverage(24 eight-ounce servin

332、gs),with the exception of unit case equivalents for Costa non-ready-to-drink beverage products,which are primarily measured in number of transactions;and“unit case volume”means the number of unit cases(or unit case equivalents)of Company beverage products directly or indirectly sold by the Company a

333、nd its bottling partners to customers or consumers.Unit case volume primarily consists of beverage products bearing Company trademarks.Also included in unit case volume are certain brands licensed to,or distributed by,our Company,and brands owned by Coca-Cola system bottlers for which our Company provides marketing support and from the sale of which we derive an economic benefit.In addition,unit c