ACQUISITIONS AND DIVESTITURES

9 Months Ended

Sep. 26, 2025

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

ACQUISITIONS AND DIVESTITURES

Acquisitions

Our Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $356 million and $153 million during the nine months ended September 26, 2025 and September 27, 2024, respectively. The activity during 2025 included an additional investment of $54 million in an equity method investee in Japan. The activity during the nine months ended September 26, 2025 and September 27, 2024 included $271 million and $114 million, respectively, of investments in alternative energy limited partnerships. Refer to Note 15 for additional information on these investments.

Divestitures

Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the nine months ended September 26, 2025 totaled $1,020 million. In March 2025, the Company sold a portion of our ownership interest in Coca-Cola Europacific Partners plc (“CCEP”), an equity method investee, for which we received cash proceeds of $741 million and recognized a net gain of $331 million. In May 2025, the Company refranchised our bottling operations in certain territories in India that were held for sale as of December 31, 2024, for which we received net cash proceeds of $218 million and recognized a net gain of $102 million.

Proceeds from disposals of businesses, equity method investments and nonmarketable securities during the nine months ended September 27, 2024 totaled $3,468 million. The Company refranchised our bottling operations in certain territories in India in January and February 2024, for which we received net cash proceeds of $474 million and recognized a net gain of $290 million. In February 2024, the Company refranchised our bottling operations in the Philippines to CCEP and a local business partner, for which we received net cash proceeds of $1,652 million and recognized a net gain of $595 million. We also sold our ownership interest in an equity method investee in Thailand, for which we received net cash proceeds of $718 million and recognized a net gain of $506 million. Additionally, the Company refranchised our bottling operations in Bangladesh to Coca-Cola İçecek A.Ş., an equity method investee, 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 reclassification of net foreign currency translation adjustments to income. During the nine months ended September 26, 2025, the Company recognized an additional loss of $14 million related to post-closing adjustments and a corresponding reduction in the outstanding note receivable balance. In July 2024, we sold a portion of our interest in Coca-Cola Consolidated, Inc. (“Coke Consolidated”), an equity method investee, to Coke Consolidated, for which we received cash proceeds of $554 million and recognized a net gain of $338 million.

These gains and losses were recorded in the line item other income (loss) — net in our consolidated statements of income.

Assets and Liabilities Held for Sale

As of September 26, 2025, certain of the Company’s finished product operations in Nigeria, which were included in the Europe, Middle East & Africa operating segment, met the criteria to be classified as held for sale. As a result, we were required to record the related assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the estimated proceeds. As there are significant negative net foreign currency translation adjustments that will be reclassified to income upon sale, the carrying amount of the assets held for sale (including the net foreign currency translation adjustments) exceeded the estimated proceeds, which required us to record an impairment loss in excess of the carrying amount of the assets held for sale (excluding the net foreign currency translation adjustments).

As a result, during the three and nine months ended September 26, 2025, the Company recorded a charge of $393 million, which consisted of a $235 million charge to write off the carrying amount of the assets held for sale (excluding the net foreign currency translation adjustments) and a $158 million charge to accrue the remaining difference between the carrying amount (including the net foreign currency translation adjustments) and the estimated proceeds. The accrual was recorded in the line item accounts payable and accrued expenses in our consolidated balance sheet. These charges were recorded in the line item other income (loss) — net in our consolidated statements of income. The sale of these operations was completed on October 2, 2025.

Assets and Liabilities Held for Sale — Subsequent Event

In October 2025, the Company entered into a definitive agreement to sell a portion of our interest in our bottling operations in Africa to Coca-Cola HBC AG (“CCHBC”), an equity method investee. Closing is subject to various regulatory approvals and is expected by the end of 2026, upon which we will deconsolidate these bottling operations. We have also agreed to a separate option arrangement for CCHBC to acquire the Company’s remaining 25% ownership interest within a six-year period from closing. As these operations met the criteria to be classified as held for sale during the fourth quarter, we will be required to record the related assets and liabilities at the lower of carrying value or fair value less any costs to sell based on the estimated proceeds. Due to the significant negative net foreign currency translation adjustments that will be reclassified to income upon sale, we will be required to reduce the carrying amount of the assets held for sale, which will result in an impairment charge of approximately $1 billion during the fourth quarter of 2025.

The following table presents information related to the major classes of assets and liabilities of our bottling operations in Africa as of September 26, 2025, which were included in the Bottling Investments operating segment, that will be classified as held for sale during the fourth quarter of 2025 (in millions):


	September 26, 2025
Cash, cash equivalents and short-term investments	$	121
Trade accounts receivable, less allowances	393
Inventories	445
Prepaid expenses and other current assets	162
Equity method investments	5
Deferred income tax assets	33
Property, plant and equipment — net	1,817
Trademarks with indefinite lives	2
Goodwill	3,206
Other noncurrent assets	52

Assets held for sale	$	6,236
Accounts payable and accrued expenses	$	641
Loans and notes payable	226
Current maturities of long-term debt	375

Long-term debt	903
Other noncurrent liabilities	139
Deferred income tax liabilities	157
Liabilities held for sale	$	2,441