COCA COLA CO
For the period ended Oct 2, 2026. Filed Oct 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 2, 2026 · Filed Oct 28, 2026
KO$95.67-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-07-03; filed 2026-07-29.
0001628280-26-050503
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-10-02; filed 2026-10-28.
0001628280-26-067844
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 174 previous paragraphs and 177 current paragraphs.
84 unchanged; 81 reworded; 7 added; 5 removed; 4 previous and 5 current paragraphs rearranged.
Tables are not compared: 6 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
•Latin America — favorable pricing initiatives, including inflationary pricing, and favorable mix;
Current report
During the three months ended October 2, 2026, selling, general and administrative expenses were $3,975 million, compared to $3,618 million during the three months ended September 26, 2025, an increase of $357 million, or 10%. The increase was primarily due to increased marketing spending and increased annual incentive expense due to timing.
Current report
During the three months ended October 2, 2026, operating income was $4,465 million, compared to $3,982 million during the three months ended September 26, 2025, an increase of $483 million, or 12%. The increase was primarily driven by an increase in concentrate sales volume of 7%, favorable price/mix, lower commodity costs, lower other operating charges and a favorable foreign currency exchange rate impact of 3%, partially offset by increased marketing spending and higher operating expenses.
Current report
Bottling Investments’ operating income for the nine months ended October 2, 2026 and September 26, 2025 was $487 million and $235 million, respectively. The increase in operating income was primarily driven by an increase in unit case volume of 10%, favorable price/mix, lower commodity costs and lower operating expenses, partially offset by increased marketing spending.
Current report
During the three months ended September 26, 2025, other income (loss) — net was a loss of $237 million. The Company recorded a charge of $393 million related to certain operations held for sale in Nigeria, $13 million of costs related to our trade accounts receivable factoring program, net foreign currency exchange losses of $11 million and a charge of $8 million related to the refranchising of certain bottling operations in Ghana. Additionally, the Company recognized a net gain of $151 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, and dividend income of $36 million. Other income (loss) — net also included income of $4 million related to the non-service cost components of net periodic benefit cost.
Current report
Proceeds from Sale of a Noncontrolling Interest
Current report
During the nine months ended September 26, 2025, the Company received proceeds of $1,277 million from the sale of a noncontrolling interest. Refer to Note 11 of Notes to Consolidated Financial Statements for additional information.
Removed paragraphs (5)
Previous report
As previously disclosed in the Company’s Current Report on Form 8-K filed on July 16, 2026, the Company announced a ransomware event at its fairlife operations in the U.S., which are a part of the North America operating segment. The event involved unauthorized access by a third party to a portion of fairlife’s systems and the taking of certain data, and led to a temporary suspension of production operations. A majority of production operations have resumed, and based on the information currently available and the Company’s investigation to date, the Company believes that the incident has not had, and is not reasonably likely to have, a material impact on the Company’s financial condition or results of operations.
Previous report
•Bottling Investments — favorable mix and favorable pricing initiatives.
Previous report
During the three months ended July 3, 2026, operating income was $4,672 million, compared to $4,280 million during the three months ended June 27, 2025, an increase of $392 million, or 9%. The increase was primarily driven by an increase in concentrate sales volume of 4%, favorable price/mix, lower operating expenses, lower other operating charges and a favorable foreign currency exchange rate impact of 5%, partially offset by higher commodity costs and increased marketing spending partly due to timing.
Previous report
Bottling Investments’ operating income for the six months ended July 3, 2026 and June 27, 2025 was $282 million and $178 million, respectively. The increase in operating income was primarily driven by an increase in unit case volume of 10% and lower commodity costs, partially offset by higher operating expenses and the impact of refranchising certain territories of our bottling operations in India.
Previous report
During the three months ended June 27, 2025, other income (loss) — net was income of $212 million. The Company recognized a net gain of $163 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, a gain of $102 million related to the refranchising of our bottling operations in certain territories in India and dividend income of $36 million. Additionally, the Company recorded an other-than-temporary impairment charge of $40 million related to an equity method investee in Latin America, a charge of $28 million related to assets held for sale, $12 million of costs related to our trade accounts receivable factoring program and net foreign currency exchange losses of $4 million. Other income (loss) — net also included income of $3 million related to the non-service cost components of net periodic benefit cost.
Reworded paragraphs (81)
Previous wording
Unit case volume growth is a key metric used by management to evaluate the Company’s performance because it measures demand for our products at the consumer level. The Company’s unit case volume represents the number of unit cases (or unit case equivalents) of Company beverage products directly or indirectly sold by the Company and its bottling partners
Current wording
Unit case volume growth is a key metric used by management to evaluate the Company’s performance because it measures demand for our products at the consumer level. The Company’s unit case volume represents the number of unit cases (or unit case equivalents) of Company beverage products directly or indirectly sold by the Company and its bottling partners (collectively, “Coca-Cola system”) to customers or consumers and, therefore, reflects unit case volume for both consolidated and unconsolidated bottlers. Refer to the heading “Beverage Volume” below.
Previous wording
In May 2025, the Company refranchised our bottling operations in certain territories in India. The impact of this refranchising 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 and six months ended July 3, 2026. Additionally, in October 2025, the Company sold our finished product operations in Nigeria. The impact of this sale has been included as a divestiture in our analysis of net operating revenues on a consolidated basis as well as for the EMEA operating segment for the three and six months ended July 3, 2026.
Current wording
In May 2025, the Company refranchised our bottling operations in certain territories in India. The impact of this refranchising 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 nine months ended October 2, 2026. Additionally, in October 2025, the Company sold our finished product operations in Nigeria. The impact of this sale has been included as a divestiture in our analysis of net operating revenues on a consolidated basis as well as for the EMEA operating segment for the three and nine months ended October 2, 2026.
Previous wording
5 After considering the impact of structural changes, unit case volume for Bottling Investments for the three and six months ended July 3, 2026 increased 8% and 6%, respectively.
Current wording
5 After considering the impact of structural changes, unit case volume for Bottling Investments for the three and nine months ended October 2, 2026 increased 10% and 7%, respectively.
Previous wording
6 After considering the impact of structural changes, concentrate sales volume for Asia Pacific for both the three and six months ended July 3, 2026 increased 11%.
Current wording
6 After considering the impact of divestiture activities, worldwide concentrate sales volume for the three months ended October 2, 2026 increased 7%.
Previous wording
Unit case volume in EMEA increased 4%, which included 4% growth in Trademark Coca-Cola, 7% growth in water, sports, coffee and tea, as well as growth in energy drinks, partially offset by a 9% decline in juice, value-added dairy and plant-based beverages, which was driven by the impact of the sale of our finished product operations in Nigeria. Unit case volume in sparkling flavors was even. The operating segment’s volume performance included an increase in unit case volume of 6% in the Eurasia and Middle East operating unit, 3% in the Europe operating unit and 4% in the Africa operating unit.
Current wording
Unit case volume in EMEA increased 5%, which included 6% growth in Trademark Coca-Cola, 5% growth in water, sports, coffee and tea, 3% growth in sparkling flavors, as well as growth in energy drinks, partially offset by an 8% decline in juice, value-added dairy and plant-based beverages, which was driven by the impact of the sale of our finished product operations in Nigeria in 2025. The operating segment’s volume performance included an increase in unit case volume of 8% in the Eurasia and Middle East operating unit, 7% in the Africa operating unit and 2% in the Europe operating unit.
Previous wording
Unit case volume in Latin America increased 3%, which included 3% growth in Trademark Coca-Cola, 4% growth in water, sports, coffee and tea, 2% growth in sparkling flavors, as well as growth in energy drinks. Unit case volume in juice, value-added dairy and plant-based beverages was even. The operating segment’s volume performance included 6% growth in Brazil, 20% growth in Colombia and 16% growth in Peru. Unit case volume in Mexico was even.
Current wording
Unit case volume in Latin America increased 6%, which included 6% growth in Trademark Coca-Cola, 7% growth in water, sports, coffee and tea, 6% growth in sparkling flavors, 2% growth in juice, value-added dairy and plant-based beverages, as well as growth in energy drinks. The operating segment’s volume performance included 3% growth in Mexico, 6% growth in Brazil, 26% growth in Peru and 17% growth in Colombia.
Previous wording
Unit case volume in North America increased 3%, which included 5% growth in Trademark Coca-Cola, 2% growth in both water, sports, coffee and tea and juice, value-added dairy and plant-based beverages, 1% growth in sparkling flavors, as well as growth in energy drinks.
Current wording
Unit case volume in North America was even, which included 2% growth in Trademark Coca-Cola, 1% growth in juice, value-added dairy and plant-based beverages, as well as growth in energy drinks, offset by a 4% decline in water, sports, coffee and tea as well as a 2% decline in sparkling flavors.
Previous wording
Unit case volume in Asia Pacific increased 8%, which included 8% growth in both sparkling flavors and Trademark Coca-Cola, 9% growth in water, sports, coffee and tea, 8% growth in juice, value-added dairy and plant-based beverages, as well as growth in energy drinks. The operating segment’s volume performance included 13% growth in the India and Southwest Asia operating unit, 8% growth in both the Greater China and Mongolia and the ASEAN and South Pacific operating units, and 2% growth in the Japan and South Korea operating unit.
Current wording
Unit case volume in Asia Pacific increased 6%, which included 7% growth in both Trademark Coca-Cola and water, sports, coffee and tea, 4% growth in sparkling flavors, 3% growth in juice, value-added dairy and plant-based beverages, as well as growth in energy drinks. The operating segment’s volume performance included 17% growth in the India and Southwest Asia operating unit, 6% growth in both the Greater China and Mongolia and the ASEAN and South Pacific operating units, partially offset by a 5% decline in the Japan and South Korea operating unit.
Previous wording
Unit case volume in EMEA increased 3%, which included 2% growth in Trademark Coca-Cola, 5% growth in water, sports, coffee and tea, 2% growth in sparkling flavors, as well as growth in energy drinks, partially offset by a 12% decline in juice, value-added dairy and plant-based beverages, which was driven by the impact of the sale of our finished product operations in Nigeria. The operating segment’s volume performance included an increase in unit case volume of 4% in both the Africa and the Eurasia and Middle East operating units and 2% growth in the Europe operating unit.
Current wording
Unit case volume in EMEA increased 3%, which included 3% growth in Trademark Coca-Cola, 5% growth in water, sports, coffee and tea, 2% growth in sparkling flavors, as well as growth in energy drinks, partially offset by an 11% decline in juice, value-added dairy and plant-based beverages, which was driven by the impact of the sale of our finished product operations in Nigeria. The operating segment’s volume performance included an increase in unit case volume of 5% in both the Eurasia and Middle East and Africa operating units and 2% growth in the Europe operating unit.
Previous wording
Unit case volume in Latin America increased 2%, which included 2% growth in Trademark Coca-Cola, 3% growth in water, sports, coffee and tea, 2% growth in sparkling flavors, as well as growth in energy drinks. Unit case volume in juice, value-added dairy and plant-based beverages was even. The operating segment’s volume performance included 4% growth in Brazil, 14% growth in Colombia and 11% growth in Peru, partially offset by declines of 1% in Mexico and 5% in Argentina.
Current wording
Unit case volume in Latin America increased 3%, which included 3% growth in Trademark Coca-Cola, 4% growth in water, sports, coffee and tea, 3% growth in sparkling flavors, 1% growth in juice, value-added dairy and plant-based beverages, as well as growth in energy drinks. The operating segment’s volume performance included 5% growth in Brazil, 16% growth in Peru, 15% growth in Colombia and 1% growth in Mexico, partially offset by a decline of 4% in Argentina.
Previous wording
Unit case volume in North America increased 3%, which included 5% growth in Trademark Coca-Cola, 4% growth in juice, value-added dairy and plant-based beverages, 1% growth in sparkling flavors, as well as growth in energy drinks. Unit case volume in water, sports, coffee and tea was even.
Current wording
Unit case volume in North America increased 2%, which included 4% growth in Trademark Coca-Cola, 2% growth in juice, value-added dairy and plant-based beverages, as well as growth in energy drinks. Unit case volume in both sparkling flavors and water, sports, coffee and tea was even.
Previous wording
Unit case volume in Asia Pacific increased 7%, which included 7% growth in Trademark Coca-Cola, 6% growth in sparkling flavors, 8% growth in water, sports, coffee and tea, 5% growth in juice, value-added dairy and plant-based beverages, as well as growth in energy drinks. The operating segment’s volume performance included 8% growth in the Greater China and Mongolia operating unit, 9% growth in the India and Southwest Asia operating unit, 5% growth in the ASEAN and South Pacific operating unit and 3% growth in the Japan and South Korea operating unit.
Current wording
Unit case volume in Asia Pacific increased 7%, which included 7% growth in Trademark Coca-Cola, 8% growth in water, sports, coffee and tea, 6% growth in sparkling flavors, 4% growth in juice, value-added dairy and plant-based beverages, as well as growth in energy drinks. The operating segment’s volume performance included 11% growth in the India and Southwest Asia operating unit, 7% growth in the Greater China and Mongolia operating unit and 6% growth in the ASEAN and South Pacific operating unit. Unit case volume in the Japan and South Korea operating unit was even.
Previous wording
Unit case volume for Bottling Investments increased 5%, primarily driven by growth in India, partially offset by the impact of refranchising certain territories of our bottling operations in India.
Current wording
Unit case volume for Bottling Investments increased 5%, primarily driven by growth in India and Africa, partially offset by the impact of refranchising certain territories of our bottling operations in India.
Previous wording
During the three months ended July 3, 2026, worldwide concentrate sales volume increased 4% and unit case volume increased 5% compared to the three months ended June 27, 2025. During the six months ended July 3, 2026, worldwide concentrate sales volume increased 6% and unit case volume increased 4% compared to the six months ended June 27, 2025. Concentrate sales volume growth is calculated based on the amount sold during the reporting periods, which is impacted by the number of days. Conversely, unit case volume growth is calculated based on average daily sales, which is not impacted by the number of days in the reporting periods. The first quarter of 2026 had six additional days when compared to the first quarter of 2025, which contributed to the differences between concentrate sales volume and unit case volume growth rates on a consolidated basis and for the individual operating segments during the six months ended July 3, 2026. Additionally, the differences between concentrate sales volume and unit case volume growth rates for the operating segments were impacted by the timing of concentrate shipments. We generally expect the differences between concentrate sales volume and unit case volume growth rates to be minimal on a full year basis; however, for the full year 2026 we currently expect worldwide concentrate sales volume growth to be slightly behind unit case volume growth.
Current wording
During the three months ended October 2, 2026, worldwide concentrate sales volume increased 6% and unit case volume increased 5% compared to the three months ended September 26, 2025. During the nine months ended October 2, 2026, worldwide concentrate sales volume increased 6% and unit case volume increased 4% compared to the nine months ended September 26, 2025. Concentrate sales volume growth is calculated based on the amount sold during the reporting periods, which is impacted by the number of days. Conversely, unit case volume growth is calculated based on average daily sales, which is not impacted by the number of days in the reporting periods. The first quarter of 2026 had six additional days when compared to the first quarter of 2025, which contributed to the differences between concentrate sales volume and unit case volume growth rates on a consolidated basis and for the individual operating segments during the nine months ended October 2, 2026. Additionally, the differences between concentrate sales volume and unit case volume growth rates for the operating segments were impacted by the timing of concentrate shipments. We generally expect the differences between concentrate sales volume and unit case volume growth rates to be minimal on a full year basis; however, for the full year 2026 we currently expect worldwide concentrate sales volume growth to be slightly behind unit case volume growth.
Previous wording
During the three months ended July 3, 2026, net operating revenues were $13,380 million, compared to $12,535 million during the three months ended June 27, 2025, an increase of $845 million, or 7%.
Current wording
During the three months ended October 2, 2026, net operating revenues were $13,380 million, compared to $12,455 million during the three months ended September 26, 2025, an increase of $925 million, or 7%.
Previous wording
Price/mix had a 2% favorable impact on our consolidated net operating revenues. Price/mix was impacted by a variety of factors and events, including, but not limited to, the following:
Current wording
Price/mix had a 1% favorable impact on our consolidated net operating revenues. Price/mix was impacted by a variety of factors and events, including, but not limited to, the following:
Previous wording
•Latin America — favorable pricing initiatives, including inflationary pricing, partially offset by unfavorable mix;
Current wording
•Latin America — favorable pricing initiatives, including inflationary pricing, and favorable mix;
Previous wording
•Asia Pacific — unfavorable mix and affordability initiatives; and
Current wording
•Asia Pacific — unfavorable mix; and
Previous wording
•Bottling Investments — favorable pricing initiatives, offset by unfavorable mix.
Current wording
•Bottling Investments — favorable pricing initiatives, partially offset by unfavorable mix.
Previous wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, favorably impacted our consolidated net operating revenues by 2%. Net operating revenues were favorably impacted by a weaker U.S. dollar compared to certain foreign currencies, including the Mexican peso, Brazilian real, euro and South African rand, which had a favorable impact on our Latin America, EMEA and Bottling Investments operating segments. The favorable impact of a weaker U.S. dollar compared to the currencies listed above was partially offset by the impact of a stronger U.S. dollar compared to certain other foreign currencies, including the Indian rupee, Japanese yen, Argentine peso and Turkish lira, which had an unfavorable impact on our Asia Pacific, Latin America, EMEA and Bottling Investments operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Current wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, favorably impacted our consolidated net operating revenues by 1%. Net operating revenues were favorably impacted by a weaker U.S. dollar compared to certain foreign currencies, including the Mexican peso, Brazilian real, South African rand and Chinese yuan, which had a favorable impact on our Latin America, EMEA, Asia Pacific and Bottling Investments operating segments. The favorable impact of a weaker U.S. dollar compared to the currencies listed above was partially offset by the impact of a stronger U.S. dollar compared to certain other foreign currencies, including the Japanese yen, Indian rupee, euro and Turkish lira, which had an unfavorable impact on our Asia Pacific, EMEA and Bottling Investments operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Previous wording
During the six months ended July 3, 2026, net operating revenues were $25,852 million, compared to $23,664 million during the six months ended June 27, 2025, an increase of $2,188 million, or 9%.
Current wording
During the nine months ended October 2, 2026, net operating revenues were $39,232 million, compared to $36,119 million during the nine months ended September 26, 2025, an increase of $3,113 million, or 9%.
Previous wording
Price/mix had a 2% favorable impact on our consolidated net operating revenues. Price/mix was impacted by a variety of factors and events, including, but not limited to, the following:
Current wording
Price/mix had a 1% favorable impact on our consolidated net operating revenues. Price/mix was impacted by a variety of factors and events, including, but not limited to, the following:
Previous wording
•North America — favorable pricing initiatives;
Current wording
•North America — favorable pricing initiatives, partially offset by unfavorable mix;
Previous wording
•Asia Pacific — unfavorable mix and affordability initiatives; and
Current wording
•Asia Pacific — unfavorable mix, including affordability initiatives; and
Previous wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, favorably impacted our consolidated net operating revenues by 2%. Net operating revenues were favorably impacted by a weaker U.S. dollar compared to certain foreign currencies, including the Mexican peso, Brazilian real, euro and South African rand, which had a favorable impact on our Latin America, EMEA and Bottling Investments operating segments. The favorable impact of a weaker U.S. dollar compared to the currencies listed above was partially offset by the impact of a stronger U.S. dollar compared to certain other foreign currencies, including the Indian rupee, Japanese yen, Turkish lira and Argentine peso, which had an unfavorable impact on our Asia Pacific, EMEA, Latin America and Bottling Investments operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Current wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, favorably impacted our consolidated net operating revenues by 2%. Net operating revenues were favorably impacted by a weaker U.S. dollar compared to certain foreign currencies, including the Mexican peso, Brazilian real, South African rand and euro, which had a favorable impact on our Latin America, EMEA and Bottling Investments operating segments. The favorable impact of a weaker U.S. dollar compared to the currencies listed above was partially offset by the impact of a stronger U.S. dollar compared to certain other foreign currencies, including the Indian rupee, Japanese yen, Turkish lira and Argentine peso, which had an unfavorable impact on our Asia Pacific, EMEA, Latin America and Bottling Investments operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Previous wording
Our gross profit margin increased to 62.9% for the three months ended July 3, 2026, compared to 62.4% for the three months ended June 27, 2025. Our gross profit margin increased to 62.9% for the six months ended July 3, 2026, compared to 62.5% for the six months ended June 27, 2025. The increases were primarily due to the favorable impact of pricing initiatives and foreign currency exchange rate fluctuations, as well as the impact of the sale of our finished product operations in Nigeria, partially offset by higher commodity costs.
Current wording
Our gross profit margin increased to 63.2% for the three months ended October 2, 2026, compared to 61.5% for the three months ended September 26, 2025. Our gross profit margin increased to 63.0% for the nine months ended October 2, 2026, compared to 62.1% for the nine months ended September 26, 2025. The increases were primarily due to the favorable impact of pricing initiatives and foreign currency exchange rate fluctuations, commodity cost stabilization, as well as the impact of the sale of our finished product operations in Nigeria.
Previous wording
During the three months ended July 3, 2026, selling, general and administrative expenses were $3,720 million, compared to $3,470 million during the three months ended June 27, 2025, an increase of $250 million, or 7%. During the six months ended July 3, 2026, selling, general and administrative expenses were $7,192 million, compared to $6,704 million during the six months ended June 27, 2025, an increase of $488 million, or 7%. These increases were primarily due to increased marketing spending partly due to timing. Additionally, during the three and six months ended July 3, 2026, foreign currency exchange rate fluctuations increased selling, general and administrative expenses by 1% and 2%, respectively. These increases were partially offset by lower annual incentive expense and the impact of the sale of our finished product operations in Nigeria.
Current wording
During the nine months ended October 2, 2026, selling, general and administrative expenses were $11,167 million, compared to $10,322 million during the nine months ended September 26, 2025, an increase of $845 million, or 8%. The increase was primarily due to increased marketing spending, partially offset by lower annual incentive expense. Additionally, during the nine months ended October 2, 2026, foreign currency exchange rate fluctuations increased selling, general and administrative expenses by 2%.
Previous wording
Advertising expenses for the three months ended July 3, 2026 and June 27, 2025 were $1,565 million and $1,328 million, respectively. Advertising expenses for the six months ended July 3, 2026 and June 27, 2025 were $2,942 million and $2,417 million, respectively.
Current wording
Advertising expenses for the three months ended October 2, 2026 and September 26, 2025 were $1,777 million and $1,523 million, respectively. Advertising expenses for the nine months ended October 2, 2026 and September 26, 2025 were $4,719 million and $3,940 million, respectively.
Previous wording
During the three months ended July 3, 2026, the Company recorded other operating charges of $23 million. These charges consisted of $9 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $6 million related to North America modernization initiatives, $5 million related to tax litigation expense and $3 million for the amortization of noncompete agreements related to the BodyArmor acquisition.
Current wording
During the three months ended October 2, 2026, the Company recorded other operating charges of $10 million. These charges consisted of $6 million related to North America modernization initiatives and $4 million for the amortization of noncompete agreements related to the BodyArmor acquisition.
Previous wording
During the six months ended July 3, 2026, the Company recorded other operating charges of $44 million. These charges consisted of $19 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $10 million related to North America modernization initiatives, $8 million related to tax litigation expense and $7 million for the amortization of noncompete agreements related to the BodyArmor acquisition.
Current wording
During the nine months ended October 2, 2026, the Company recorded other operating charges of $54 million. These charges consisted of $19 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $16 million related to North America modernization initiatives, $11 million for the amortization of noncompete agreements related to the BodyArmor acquisition and $8 million related to tax litigation expense.
Previous wording
During the three months ended June 27, 2025, the Company recorded other operating charges of $71 million. These charges primarily included $31 million related to the impairment of a trademark in Latin America, $28 million related to the Company’s productivity and reinvestment program, $7 million of 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 BodyArmor acquisition and $2 million related to tax litigation expense.
Current wording
During the three months ended September 26, 2025, the Company recorded other operating charges of $58 million. These charges included $27 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $24 million related to the Company’s productivity and reinvestment program, $4 million for the amortization of noncompete agreements related to the BodyArmor acquisition and $3 million related to tax litigation expense.
Previous wording
During the six months ended June 27, 2025, the Company recorded other operating charges of $144 million. These charges consisted of $47 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife in 2020, which brought the total liability to $6,173 million and was paid in March 2025. Additionally, other operating charges included $39 million related to the Company’s productivity and reinvestment program, $31 million related to the impairment of a trademark in Latin America, $8 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $7 million for the amortization of noncompete agreements related to the BodyArmor acquisition, $7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India and $5 million related to tax litigation expense.
Current wording
During the nine months ended September 26, 2025, the Company recorded other operating charges of $202 million. These charges consisted of $47 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife in 2020, which brought the total liability to $6,173 million and was paid in March 2025. Additionally, other operating charges included $63 million related to the Company’s productivity and reinvestment program, $35 million related to an indemnification agreement entered into as a part of the refranchising of certain of our bottling operations, $31 million related to the impairment of a trademark in Latin America, $11 million for the amortization of noncompete agreements related to the BodyArmor acquisition, $8 million related to tax litigation expense and $7 million of transaction costs related to the refranchising of our bottling operations in certain territories in India.
Previous wording
Refer to Note 2 of Notes to Consolidated Financial Statements for additional information on the refranchising of our bottling operations in certain territories in India. Refer to Note 9 of Notes to Consolidated Financial Statements for additional information on the tax litigation. Refer to Note 15 of Notes to Consolidated Financial Statements for additional information on the impairment charge.
Current wording
Refer to Note 2 of Notes to Consolidated Financial Statements for additional information on our divestiture activities. Refer to Note 9 of Notes to Consolidated Financial Statements for additional information on the tax litigation. Refer to Note 15 of Notes to Consolidated Financial Statements for additional information on the impairment charge.
Previous wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, favorably impacted consolidated operating income by 5% due to a weaker U.S. dollar compared to certain foreign currencies, including the Mexican peso, Brazilian real and euro, which had a favorable impact on our Latin America and EMEA operating segments. The favorable impact of a weaker U.S. dollar compared to the currencies listed above was partially offset by the impact of a stronger U.S. dollar compared to certain other foreign currencies, including the Japanese yen, which had an unfavorable impact on our Asia Pacific operating segment. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Current wording
Fluctuations in foreign currency exchange rates, including the effects of our hedging activities, favorably impacted consolidated operating income by 3% due to a weaker U.S. dollar compared to certain foreign currencies, including the Mexican peso and Brazilian real, which had a favorable impact on our Latin America operating segment. The favorable impact of a weaker U.S. dollar compared to the currencies listed above was partially offset by the impact of a stronger U.S. dollar compared to certain other foreign currencies, including the Japanese yen and euro, which had an unfavorable impact on our Asia Pacific and EMEA operating segments. Refer to the heading “Liquidity, Capital Resources and Financial Position — Foreign Exchange” below.
Previous wording
The EMEA operating segment reported operating income of $1,309 million and $1,325 million for the three months ended July 3, 2026 and June 27, 2025, respectively. The decrease in operating income was primarily driven by increased marketing spending and higher operating expenses, partially offset by an increase in concentrate sales volume of 1%, favorable price/mix, lower commodity costs and a favorable foreign currency exchange rate impact of 4%.
Current wording
The EMEA operating segment reported operating income of $1,171 million and $1,097 million for the three months ended October 2, 2026 and September 26, 2025, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 6%, favorable price/mix and lower commodity costs, partially offset by increased marketing spending and higher operating expenses.
Previous wording
Latin America reported operating income of $2,215 million and $1,861 million for the six months ended July 3, 2026 and June 27, 2025, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 4%, favorable price/mix, lower commodity costs, lower operating expenses, lower other operating charges and a favorable foreign currency exchange rate impact of 10%, partially offset by increased marketing spending partly due to timing.
Current wording
Latin America reported operating income of $1,152 million and $897 million for the three months ended October 2, 2026 and September 26, 2025, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 8%, favorable price/mix, lower commodity costs, lower operating expenses and a favorable foreign currency exchange rate impact of 14%, partially offset by increased marketing spending.
Previous wording
Operating income for North America for the six months ended July 3, 2026 and June 27, 2025 was $3,301 million and $2,962 million, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 7%, favorable price/mix, lower operating expenses and a favorable foreign currency exchange rate impact of 1%, partially offset by higher commodity costs, higher other operating charges and increased marketing spending partly due to timing.
Current wording
Operating income for North America for the three months ended October 2, 2026 and September 26, 2025 was $1,766 million and $1,681 million, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 2%, favorable price/mix and decreased marketing spending partly due to timing, partially offset by higher commodity costs, higher operating expenses and higher other operating charges.
Previous wording
Asia Pacific’s operating income for the three months ended July 3, 2026 and June 27, 2025 was $656 million and $647 million, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 11%, lower commodity costs, lower operating expenses and a favorable foreign currency exchange rate impact of 1%, partially offset by unfavorable price/mix and increased marketing spending.
Current wording
Asia Pacific’s operating income for the three months ended October 2, 2026 and September 26, 2025 was $563 million and $521 million, respectively. The increase in operating income was primarily driven by an increase in concentrate sales volume of 8%, partially offset by unfavorable price/mix and an unfavorable foreign currency exchange rate impact of 6%.
Previous wording
Bottling Investments’ operating income for the three months ended July 3, 2026 and June 27, 2025 was $91 million and $59 million, respectively. The increase in operating income was primarily driven by an increase in unit case volume of 8%, favorable price/mix and lower commodity costs, partially offset by higher operating expenses, the impact of refranchising certain territories of our bottling operations in India and an unfavorable foreign currency exchange rate impact of 24%.
Current wording
Bottling Investments’ operating income for the three months ended October 2, 2026 and September 26, 2025 was $205 million and $57 million, respectively. The increase in operating income was primarily driven by an increase in unit case volume of 10%, favorable price/mix, lower commodity costs and lower operating expenses, partially offset by an unfavorable foreign currency exchange rate impact of 2%.
Previous wording
Corporate’s operating loss for the six months ended July 3, 2026 and June 27, 2025 was $527 million and $723 million, respectively. This decrease is primarily a result of lower annual incentive expense and lower other operating charges.
Current wording
Corporate’s operating loss for the three months ended October 2, 2026 and September 26, 2025 was $392 million and $271 million, respectively. This increase is primarily a result of higher annual incentive expense due to timing and increased marketing expenses, partially offset by lower other operating charges.
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Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Unit case volume for Bottling Investments increased 8%, primarily driven by growth in India and Africa.
Current report — wording carried from elsewhere
•EMEA — favorable pricing initiatives, including inflationary pricing, partially offset by unfavorable mix;
Current report — wording carried from elsewhere
•Bottling Investments — favorable pricing initiatives, partially offset by unfavorable mix.
Current report — wording carried from elsewhere
On August 2, 2024, the Tax Court entered a decision reflecting additional federal income tax of $2.7 billion for the 2007 through 2009 tax years. With applicable interest, the total liability for the 2007 through 2009 tax years resulting from the Tax Court’s decision is $6.0 billion, for which the IRS issued the Company invoices on September 3, 2024. The Company paid the IRS Tax Litigation Deposit on September 10, 2024, which stopped interest from accruing on the additional tax due for the 2007 through 2009 tax years. That amount, plus interest earned, would be refunded in full or in part if the Company’s tax positions are ultimately sustained on appeal. For the three and nine months ended October 2, 2026, the Company recorded net interest income of $57 million and $155 million, respectively, and for the three and nine months ended September 26, 2025, the Company recorded net interest income of $55 million and $162 million, respectively, related to this tax payment in the line item income taxes in our consolidated statements of income, in accordance with our accounting policy. The payment of the IRS invoices and the related accrued interest were recorded in the line item other noncurrent assets in our consolidated balance sheets as of October 2, 2026 and December 31, 2025. On October 22, 2024, the Company appealed the Tax Court’s decision to the U.S. Court of Appeals for the Eleventh Circuit. The Company filed its principal appellate brief with the U.S. Court of Appeals for the Eleventh Circuit on March 12, 2025. The IRS filed its appellate brief on July 7, 2025. The Company filed its reply brief on August 27, 2025. The U.S. Court of Appeals for the Eleventh Circuit heard the case on June 25, 2026.
Current report — wording carried from elsewhere
The Company strongly disagrees with the IRS’ positions and the portions of the Opinions affirming such positions and intends to vigorously defend our positions utilizing every available avenue of appeal. While the Company believes that it is more likely than not that we will ultimately prevail in this litigation upon appeal, it is possible that all, or some portion of, the adjustments proposed by the IRS and sustained by the Tax Court could ultimately be upheld. In that event, the Company would not receive a refund of the applicable portion or all of the $6.0 billion it paid in response to the IRS invoices issued in September 2024 and the related accrued interest receivable of $589 million as of October 2, 2026. Additionally, the Company would likely be subject to significant additional liabilities for subsequent years, which could have a material adverse impact on the Company’s financial position, results of operations and cash flows. The Company estimates that the potential aggregate remaining incremental tax and interest liability for the tax years 2010 through 2025 could be approximately $14 billion as of December 31, 2025. Additional income tax and interest on any unpaid potential liabilities for the 2010 through 2025 tax years would continue to accrue until the time any such potential liability, or portion thereof, were to be paid. The Company estimates the impact of the continued application of the methodology asserted by the IRS and affirmed in the Opinions for the three and nine months ended October 2, 2026 would increase the potential aggregate incremental tax and interest liability by approximately $450 million and $1.4 billion, respectively. Refer to Note 9 of Notes to Consolidated Financial Statements for additional information on the tax litigation.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
(collectively, “Coca-Cola system”) to customers or consumers and, therefore, reflects unit case volume for both consolidated and unconsolidated bottlers. Refer to the heading “Beverage Volume” below.
Previous report — wording carried elsewhere
Unit case volume for Bottling Investments increased 3%, primarily driven by growth in India, partially offset by the impact of refranchising certain territories of our bottling operations in India.
Previous report — wording carried elsewhere
•EMEA — favorable pricing initiatives, including inflationary pricing;
Previous report — wording carried elsewhere
•Latin America — favorable pricing initiatives, including inflationary pricing, partially offset by unfavorable mix;