Equity Method Investment, Realized Gain (Loss) on Disposal

  


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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|  | April 2,2021 | December 31,2020 |
| Cash and cash equivalents | $ | 8,484  |  | $ | 6,795  |  |  |
| Restricted cash and restricted cash equivalents included in other noncurrent assets1 | 327  |  | 315  |  |  |
| Cash, cash equivalents, restricted cash and restricted cash equivalents | $ | 8,811  |  | $ | 7,110  |  |  |

1Amounts represent restricted cash and restricted cash equivalents in our solvency capital portfolio set aside primarily to cover pension obligations in certain of our European and Canadian pension plans. Refer to Note 4.NOTE 2: ACQUISITIONS AND DIVESTITURESAcquisitionsOur Company’s acquisitions of businesses, equity method investments and nonmarketable securities totaled $5 million and $4 million during the three months ended April 1, 2022 and April 2, 2021, respectively.DivestituresProceeds from disposals of businesses, equity method investments and nonmarketable securities during the three months ended April 1, 2022 and April 2, 2021 totaled $218 million and $2 million, respectively. In 2022, we sold our ownership interest in one of our equity method investments for cash proceeds of $123 million. We recognized a net gain of $13 million as a result of the sale, which was recorded in the line item other income (loss) — net in our consolidated statement of income. Assets and Liabilities Held for SaleThe Company had certain bottling operations in Asia Pacific that met the criteria to be classified as held for sale. As a result, we were required to record their assets and liabilities at the lower of carrying value or fair value less any costs to sell. As the fair value less any costs to sell exceeded the carrying value, the related assets and liabilities were recorded at their carrying value. These assets and liabilities were included in the Bottling Investments operating segment. The Company expects these bottling operations to be refranchised during the second half of 2022.The 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, respectively, in our consolidated balance sheets (in millions):

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| --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|  | April 1,2022 | December 31, 2021 |
| Cash, cash equivalents and short-term investments | $ | 220  |  | $ | 228  |  |
| Trade accounts receivable, less allowances | 15  |  | 21  |  |
| Inventories | 50  |  | 55  |  |
| Prepaid expenses and other current assets | 42  |  | 36  |  |
| Other noncurrent assets | 36  |  | 9  |  |
| Deferred income tax assets | 6  |  | 6  |  |
| Property, plant and equipment — net | 287  |  | 282  |  |
| Goodwill | 36  |  | 37  |  |
|   Assets held for sale | $ | 692  |  | $ | 674  |  |
| Accounts payable and accrued expenses | $ | 137  |  | $ | 139  |  |
| Accrued income taxes | 5  |  | 4  |  |
| Other noncurrent liabilities | 9  |  | 9  |  |
| Deferred income tax liabilities | 5  |  | 5  |  |
|   Liabilities held for sale | $ | 156  |  | $ | 157  |  |

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