Income related to strategic realignment initiatives

  
NOTE 10: CHANGES IN EQUITYThe following tables provide a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to shareowners of The Coca-Cola Company and equity attributable to noncontrolling interests (in millions):

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|  |  |   | Shareowners of The Coca-Cola Company   |   |
| Three Months Ended April 1, 2022 | Common Shares Outstanding  | Total | Reinvested Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock | Capital Surplus | Treasury Stock | Non-controlling Interests |
| December 31, 2021 | 4,325  |  | $ | 24,860  |  | $ | 69,094  |  | $ | (14,330) |  | $ | 1,760  |  | $ | 18,116  |  | $ | (51,641) |  | $ | 1,861  |  |
|  |  |  |  |  |  |  |  |  |
| Comprehensive income (loss) | —  |  | 3,916  |  | 2,781  |  | 990  |  | —  |  | —  |  | —  |  | 145  |  |
| Dividends paid/payable to   shareowners of The Coca-Cola   Company ($0.44 per share)  | —  |  | (1,906) |  | (1,906) |  | —  |  | —  |  | —  |  | —  |  | —  |  |
| Dividends paid to noncontrolling   interests | —  |  | (9) |  | —  |  | —  |  | —  |  | —  |  | —  |  | (9) |  |
| Acquisition of interests held by  noncontrolling owners | —  |  | (1) |  | —  |  | —  |  | —  |  | —  |  | —  |  | (1) |  |
|  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |
| Purchases of treasury stock | (8) |  | (471) |  | —  |  | —  |  | —  |  | —  |  | (471) |  | —  |  |
| Impact related to stock-based   compensation plans | 14  |  | 451  |  | —  |  | —  |  | —  |  | 271  |  | 180  |  | —  |  |
| Other activities | —  |  | 1  |  | —  |  | —  |  | —  |  | 1  |  | —  |  | —  |  |
| April 1, 2022 | 4,331  |  | $ | 26,841  |  | $ | 69,969  |  | $ | (13,340) |  | $ | 1,760  |  | $ | 18,388  |  | $ | (51,932) |  | $ | 1,996  |  |



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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|  |  |   | Shareowners of The Coca-Cola Company   |   |
| Three Months Ended April 2, 2021 | Common Shares Outstanding  | Total | Reinvested Earnings | Accumulated Other Comprehensive Income (Loss) | Common Stock | Capital Surplus | Treasury Stock | Non-controlling Interests |
| December 31, 2020 | 4,302  |  | $ | 21,284  |  | $ | 66,555  |  | $ | (14,601) |  | $ | 1,760  |  | $ | 17,601  |  | $ | (52,016) |  | $ | 1,985  |  |
| Adoption of accounting standards1 | —  |  | 19  |  | 19  |  | —  |  | —  |  | —  |  | —  |  | —  |  |
| Comprehensive income (loss) | —  |  | 2,723  |  | 2,245  |  | 468  |  | —  |  | —  |  | —  |  | 10  |  |
| Dividends paid/payable to   shareowners of The Coca-Cola    Company ($0.42 per share) | —  |  | (1,810) |  | (1,810) |  | —  |  | —  |  | —  |  | —  |  | —  |  |
| Dividends paid to noncontrolling    interests | —  |  | (18) |  | —  |  | —  |  | —  |  | —  |  | —  |  | (18) |  |
|  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |
| Impact related to stock-based    compensation plans | 9  |  | 134  |  | —  |  | —  |  | —  |  | 29  |  | 105  |  | —  |  |
|  |  |  |  |  |  |  |  |  |
| April 2, 2021 | 4,311  |  | $ | 22,332  |  | $ | 67,009  |  | $ | (14,133) |  | $ | 1,760  |  | $ | 17,630  |  | $ | (51,911) |  | $ | 1,977  |  |

1Represents the adoption of Accounting Standards Update 2019-12, Simplifying the Accounting for Income Taxes, effective January 1, 2021. NOTE 11: SIGNIFICANT OPERATING AND NONOPERATING ITEMSOther Operating ChargesDuring the three months ended April 1, 2022, the Company recorded other operating charges of $28 million. These charges primarily consisted of $22 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with our acquisition of fairlife, LLC (“fairlife”) in 2020, $10 million related to the Company’s productivity and reinvestment program and $2 million related to the restructuring of our manufacturing operations in the United States. These charges were partially offset by a net gain of $5 million, which included the reimbursement of distributor termination fees for BA Sports Nutrition, LLC (“BodyArmor”) recorded in the prior year partially offset by various transition and transaction costs, employee retention costs and the amortization of noncompete agreements, and income of $1 million related to the Company’s strategic realignment initiatives primarily as a result of a revision to estimated severance costs accrued in the prior year.During the three months ended April 2, 2021, the Company recorded other operating charges of $124 million. These charges primarily consisted of $93 million related to the Company’s strategic realignment initiatives and $18 million related to the Company’s productivity and reinvestment program. In addition, other operating charges included $4 million related to the remeasurement of our contingent consideration liability to fair value in conjunction with the fairlife acquisition and $9 million related to tax litigation expense. 20
