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OPERATING SEGMENTS | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
OPERATING SEGMENTS | OPERATING SEGMENTS Our organizational structure consists of the following operating segments: Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Global Ventures; and Bottling Investments. Our operating structure also includes Corporate, which consists of two components: (1) a center focusing on strategic initiatives, policy, governance and scaling global initiatives, and (2) a platform services organization supporting operating units, global marketing category leadership teams and the center by providing efficient and scaled global services and capabilities, including, but not limited to, transactional work, data management, consumer analytics, digital commerce and social/digital hubs. Segment Products and Services The business of our Company is primarily nonalcoholic beverages. Our geographic operating segments (Europe, Middle East and Africa; Latin America; North America; and Asia Pacific) derive a majority of their revenues from the manufacture and sale of beverage concentrates and syrups and, in some cases, the sale of finished beverages. Our Global Ventures operating segment includes the results of our Costa, innocent and doğadan businesses as well as fees earned pursuant to distribution coordination agreements between the Company and Monster. Our Bottling Investments operating segment is composed of our consolidated bottling operations, regardless of the geographic location of the bottler. Our Bottling Investments operating segment also includes equity income from the majority of our equity method investees. Our consolidated bottling operations derive the majority of their revenues from the manufacture and sale of finished beverages. Generally, finished product operations produce higher net operating revenues but lower gross profit margins than concentrate operations. Refer to Note 3. The following table sets forth the percentage of total net operating revenues attributable to concentrate operations and finished product operations:
Year Ended December 31, | 2022 | 2021 | 2020
Concentrate operations | 56 | % | 56 | % | 56 | %
Finished product operations | 44 |  | 44 |  | 44 |
Total | 100 | % | 100 | % | 100 | %
Method of Determining Segment Income or Loss Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting financial performance. Our Company manages income taxes and certain treasury-related items, such as interest income and interest expense, on a global basis within Corporate. We evaluate operating segment performance based primarily on net operating revenues and operating income (loss). Geographic Data The following table provides information related to our net operating revenues (in millions):
Year Ended December 31, | 2022 | 2021 | 2020
United States | $ | 15,413 |  | $ | 13,010 |  | $ | 11,281 |
International | 27,591 |  | 25,645 |  | 21,733 |
Net operating revenues | $ | 43,004 |  | $ | 38,655 |  | $ | 33,014 |
The following table provides information related to our property, plant and equipment — net (in millions):
Year Ended December 31, | 2022 | 2021 | 2020
United States | $ | 3,494 |  | $ | 3,420 |  | $ | 3,988 |
International | 6,347 |  | 6,500 |  | 6,789 |
Property, plant and equipment — net | $ | 9,841 |  | $ | 9,920 |  | $ | 10,777 |
Information about our Company’s operations by operating segment and Corporate is as follows (in millions):
| Europe, Middle East & Africa |  | Latin America |  | North America |  | Asia Pacific |  | Global Ventures |  | Bottling Investments |  | Corporate |  | Eliminations |  | Consolidated
As of and for the Year Ended December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net operating revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third party | $ | 6,896 |  |  | $ | 4,910 |  |  | $ | 15,667 |  |  | $ | 4,711 |  |  | $ | 2,843 |  |  | $ | 7,883 |  |  | $ | 94 |  |  | $ | — |  |  | $ | 43,004 |
Intersegment | 627 |  |  | — |  |  | 7 |  |  | 734 |  |  | — |  |  | 8 |  |  | — |  |  | (1,376) |  |  | — |
Total net operating revenues | 7,523 |  |  | 4,910 |  |  | 15,674 |  |  | 5,445 |  |  | 2,843 |  |  | 7,891 |  |  | 94 |  |  | (1,376) |  |  | 43,004 |
Operating income (loss) | 3,958 |  |  | 2,870 |  |  | 3,742 |  |  | 2,303 |  |  | 185 |  |  | 487 |  |  | (2,636) |  |  | — |  |  | 10,909 |
Interest income | — |  |  | — |  |  | 29 |  |  | — |  |  | 9 |  |  | — |  |  | 411 |  |  | — |  |  | 449 |
Interest expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 882 |  |  | — |  |  | 882 |
Depreciation and amortization | 63 |  |  | 39 |  |  | 330 |  |  | 58 |  |  | 140 |  |  | 435 |  |  | 195 |  |  | — |  |  | 1,260 |
Equity income (loss) — net | 43 |  |  | 7 |  |  | (1) |  |  | 9 |  |  | — |  |  | 1,184 |  |  | 230 |  |  | — |  |  | 1,472 |
Income (loss) before income taxes | 3,952 |  |  | 2,879 |  |  | 3,768 |  |  | 2,320 |  |  | 196 |  |  | 1,743 |  |  | (3,172) |  |  | — |  |  | 11,686 |
Identifiable operating assets | 7,088 |  |  | 2,067 |  |  | 25,760 |  |  | 2,368 |  | 2 | 7,325 |  |  | 10,232 |  | 2 | 19,158 |  |  | — |  |  | 73,998 |
Investments 1 | 410 |  |  | 629 |  |  | 15 |  |  | 219 |  |  | — |  |  | 12,892 |  |  | 4,600 |  |  | — |  |  | 18,765 |
Capital expenditures | 50 |  |  | 4 |  |  | 280 |  |  | 22 |  |  | 179 |  |  | 697 |  |  | 252 |  |  | — |  |  | 1,484 |
As of and for the Year Ended December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net operating revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third party | $ | 6,564 |  |  | $ | 4,143 |  |  | $ | 13,184 |  |  | $ | 4,682 |  |  | $ | 2,805 |  |  | $ | 7,194 |  |  | $ | 83 |  |  | $ | — |  |  | $ | 38,655 |
Intersegment | 629 |  |  | — |  |  | 6 |  |  | 609 |  |  | — |  |  | 9 |  |  | 2 |  |  | (1,255) |  |  | — |
Total net operating revenues | 7,193 |  |  | 4,143 |  |  | 13,190 |  |  | 5,291 |  |  | 2,805 |  |  | 7,203 |  |  | 85 |  |  | (1,255) |  |  | 38,655 |
Operating income (loss) | 3,735 |  |  | 2,534 |  |  | 3,331 |  |  | 2,325 |  |  | 293 |  |  | 473 |  |  | (2,383) |  |  | — |  |  | 10,308 |
Interest income | — |  |  | — |  |  | 40 |  |  | — |  |  | 10 |  |  | — |  |  | 226 |  |  | — |  |  | 276 |
Interest expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,597 |  |  | — |  |  | 1,597 |
Depreciation and amortization | 76 |  |  | 39 |  |  | 388 |  |  | 49 |  |  | 135 |  |  | 529 |  |  | 236 |  |  | — |  |  | 1,452 |
Equity income (loss) — net | 33 |  |  | 9 |  |  | 22 |  |  | 8 |  |  | (6) |  |  | 1,071 |  |  | 301 |  |  | — |  |  | 1,438 |
Income (loss) before income taxes | 3,821 |  |  | 2,542 |  |  | 3,140 |  |  | 2,350 |  |  | 310 |  |  | 1,596 |  |  | (1,334) |  |  | — |  |  | 12,425 |
Identifiable operating assets | 7,908 |  |  | 1,720 |  |  | 25,730 |  |  | 2,355 |  | 2 | 7,949 |  |  | 10,312 |  | 2 | 19,964 |  |  | — |  |  | 75,938 |
Investments 1 | 436 |  |  | 594 |  |  | 21 |  |  | 230 |  |  | — |  |  | 12,669 |  |  | 4,466 |  |  | — |  |  | 18,416 |
Capital expenditures | 35 |  |  | 2 |  |  | 228 |  |  | 65 |  |  | 285 |  |  | 560 |  |  | 192 |  |  | — |  |  | 1,367 |
Year Ended December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net operating revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Third party | $ | 5,534 |  |  | $ | 3,499 |  |  | $ | 11,473 |  |  | $ | 4,213 |  |  | $ | 1,991 |  |  | $ | 6,258 |  |  | $ | 46 |  |  | $ | — |  |  | $ | 33,014 |
Intersegment | 523 |  |  | — |  |  | 4 |  |  | 509 |  |  | — |  |  | 7 |  |  | — |  |  | (1,043) |  |  | — |
Total net operating revenues | 6,057 |  |  | 3,499 |  |  | 11,477 |  |  | 4,722 |  |  | 1,991 |  |  | 6,265 |  |  | 46 |  |  | (1,043) |  |  | 33,014 |
Operating income (loss) | 3,313 |  |  | 2,116 |  |  | 2,471 |  |  | 2,133 |  |  | (123) |  |  | 308 |  |  | (1,221) |  |  | — |  |  | 8,997 |
Interest income | — |  |  | — |  |  | 64 |  |  | — |  |  | 11 |  |  | — |  |  | 295 |  |  | — |  |  | 370 |
Interest expense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,437 |  |  | — |  |  | 1,437 |
Depreciation and amortization | 86 |  |  | 45 |  |  | 439 |  |  | 47 |  |  | 122 |  |  | 551 |  |  | 246 |  |  | — |  |  | 1,536 |
Equity income (loss) — net | 31 |  |  | (72) |  |  | — |  |  | 8 |  |  | (9) |  |  | 779 |  |  | 241 |  |  | — |  |  | 978 |
Income (loss) before income taxes | 3,379 |  |  | 2,001 |  |  | 2,500 |  |  | 2,158 |  |  | (120) |  |  | 898 |  |  | (1,067) |  |  | — |  |  | 9,749 |
Capital expenditures | 27 |  |  | 6 |  |  | 182 |  |  | 20 |  |  | 261 |  |  | 474 |  |  | 207 |  |  | — |  |  | 1,177 |
1 Principally equity method investments and other investments in bottling companies. 2 Property, plant and equipment — net in the Philippines represented 10 percent of consolidated property, plant and equipment — net as of December 31, 2022 and 2021. During 2022, 2021 and 2020, our operating segments and Corporate were impacted by acquisition and divestiture activities. Refer to Note 2. In 2022, the results of our operating segments and Corporate were impacted by the following items: •Operating income (loss) and income (loss) before income taxes were increased by $7 million for Europe, Middle East and Africa and were reduced by $1 million for Corporate due to revisions of management’s estimates related to the Company’s strategic realignment initiatives. Refer to Note 18. •Operating income (loss) and income (loss) before income taxes were reduced by $1,000 million for Corporate due to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 2. •Operating income (loss) and income (loss) before income taxes were reduced by $85 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 18. •Operating income (loss) and income (loss) before income taxes were reduced by $59 million for Corporate and were increased by $21 million for North America related to our acquisition of BodyArmor in 2021. Refer to Note 17. •Operating income (loss) and income (loss) before income taxes were reduced by $57 million for Asia Pacific due to the impairment of a trademark. Refer to Note 16. •Operating income (loss) and income (loss) before income taxes were reduced by $38 million for North America due to the restructuring of our North America operating unit. Refer to Note 18. •Operating income (loss) and income (loss) before income taxes were reduced by $33 million and $34 million, respectively, for North America, and income (loss) before income taxes was reduced by $2 million for Corporate due to the restructuring of our manufacturing operations in the United States. •Income (loss) before income taxes was increased by $153 million for Corporate due to the refranchising of our bottling operations in Cambodia. Refer to Note 2. •Income (loss) before income taxes was reduced by $371 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. •Income (loss) before income taxes was reduced by $96 million for Europe, Middle East and Africa due to an other-than-temporary impairment charge related to an equity method investee in Russia. Refer to Note 16. •Income (loss) before income taxes was reduced by $34 million for Bottling Investments due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. •Income (loss) before income taxes was reduced by $24 million for Corporate due to one of our equity method investees issuing additional shares of its stock. Refer to Note 16. In 2021, the results of our operating segments and Corporate were impacted by the following items: •Operating income (loss) and income (loss) before income taxes were reduced by $369 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 2. •Operating income (loss) and income (loss) before income taxes were reduced by $115 million for Corporate due to the Company’s productivity and reinvestment program. Refer to Note 18. •Operating income (loss) and income (loss) before income taxes were reduced by $98 million for Corporate and $21 million for North America related to various costs incurred in conjunction with our acquisition of BodyArmor. Refer to Note 17. •Operating income (loss) and income (loss) before income taxes were reduced by $78 million for Europe, Middle East and Africa related to the impairment of a trademark. Refer to Note 16. •Operating income (loss) and income (loss) before income taxes were reduced by $63 million and $61 million, respectively, for Europe, Middle East and Africa; $46 million and $160 million, respectively, for Corporate; $12 million and $14 million, respectively, for Asia Pacific; and $11 million and $12 million, respectively, for Latin America due to the Company’s strategic realignment initiatives. In addition, operating income (loss) and income (loss) before income taxes were reduced by $14 million for North America, and income (loss) before income taxes was reduced by $2 million for Bottling Investments due to the Company’s strategic realignment initiatives. Refer to Note 18. •Operating income (loss) and income (loss) before income taxes were reduced by $52 million and $316 million, respectively, for North America, and income (loss) before income taxes was reduced by $2 million for Corporate related to the restructuring of our manufacturing operations in the United States. Refer to Note 16. •Operating income (loss) and income (loss) before income taxes were reduced by $15 million for Corporate related to tax litigation expense. Refer to Note 11. •Income (loss) before income taxes was increased by $834 million for Corporate in conjunction with our acquisition of BodyArmor, which resulted from the remeasurement of our previously held equity interest in BodyArmor to fair value. Refer to Note 2. •Income (loss) before income taxes was increased by $695 million for Corporate related to the sale of our ownership interest in CCA, an equity method investee. Refer to Note 2. •Income (loss) before income taxes was increased by $467 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4. •Income (loss) before income taxes was increased by $114 million for Corporate related to the sale of our ownership interest in an equity method investee and the sale of a portion of our ownership interest in another equity method investee. •Income (loss) before income taxes was reduced by $650 million for Corporate related to charges associated with the extinguishment of long-term debt. Refer to Note 10. •Income (loss) before income taxes was reduced by $45 million for Bottling Investments and was increased by $32 million for Corporate due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. In 2020, the results of our operating segments and Corporate were impacted by the following items: •Operating income (loss) and income (loss) before income taxes for North America were reduced by $160 million related to the impairment of the Odwalla trademark and $33 million related to the cost of discontinuing the Odwalla juice business. •Operating income (loss) and income (loss) before income taxes were reduced by $145 million and $153 million, respectively, for Corporate; $31 million and $30 million, respectively, for Asia Pacific; $21 million and $26 million, respectively, for Bottling Investments; and $19 million and $21 million, respectively, for Latin America due to the Company’s strategic realignment initiatives. Additionally, operating income (loss) and income (loss) before income taxes were reduced by $115 million for North America; $78 million for Europe, Middle East and Africa; and $4 million for Global Ventures due to the Company’s strategic realignment initiatives. Refer to Note 18. •Operating income (loss) and income (loss) before income taxes were reduced by $104 million for Corporate due to the Company’s productivity and reinvestment program. Operating income (loss) and income (loss) before income taxes were increased by $5 million for Europe, Middle East and Africa due to the refinement of previously established accruals related to the Company’s productivity and reinvestment program. Refer to Note 18. •Operating income (loss) and income (loss) before income taxes were reduced by $59 million and $84 million, respectively, for North America related to the restructuring of our manufacturing operations in the United States. •Operating income (loss) and income (loss) before income taxes were reduced by $55 million for North America related to the impairment of a trademark. •Operating income (loss) and income (loss) before income taxes were reduced by $51 million for Corporate related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition. Refer to Note 2. •Income (loss) before income taxes was increased by $902 million for Corporate in conjunction with our fairlife acquisition, which resulted from the remeasurement of our previously held equity interest in fairlife to fair value. Refer to Note 2. •Income (loss) before income taxes was increased by $148 million for Corporate related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities. Refer to Note 4. •Income (loss) before income taxes was increased by $35 million for Corporate related to the sale of our ownership interest in an equity method investee and the sale of a portion of our ownership interest in another equity method investee. Refer to Note 2. •Income (loss) before income taxes was reduced by $484 million for Corporate related to charges associated with the extinguishment of long-term debt. Refer to Note 10. •Income (loss) before income taxes was reduced by $252 million for Bottling Investments and $38 million for Latin America due to other-than-temporary impairment charges related to certain of our equity method investees. •Income (loss) before income taxes was reduced by $145 million for Bottling Investments, $70 million for Latin America and $1 million for North America due to the Company’s proportionate share of significant operating and nonoperating items recorded by certain of our equity method investees. •Income (loss) before income taxes was reduced by $26 million for Corporate due to an impairment charge associated with an investment in an equity security without a readily determinable fair value.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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