Net foreign currency translation adjustments attributable to noncontrolling interests

  
facts and circumstances as of December 31, 2021, would result in an incremental annual tax liability that would increase the Company’s effective tax rate by approximately 3.5 percent.The Company does not know when the Tax Court will issue its opinion regarding the effect of Brazilian legal restrictions on the payment of royalties by the Company’s licensee in Brazil for the 2007 through 2009 tax years. After the Tax Court issues its opinion on the Company’s Brazilian licensee, the Company and the IRS will be provided time to agree on the tax impact, if any, of both opinions, after which the Tax Court would render a final decision in the case. The Company will have 90 days thereafter to file a notice of appeal to the U.S. Court of Appeals for the Eleventh Circuit and pay the tax liability and interest related to the 2007 through 2009 tax years. The Company currently estimates that the payment to be made at that time related to the 2007 through 2009 tax years, which is included in the above estimate of the potential aggregate incremental tax and interest liability, would be approximately $5.0 billion (including interest accrued through April 1, 2022), plus any additional interest accrued through the time of payment. Some or all of this amount would be refunded if the Company were to prevail on appeal. Risk Management ProgramsThe Company has numerous global insurance programs in place to help protect the Company from the risk of loss. In general, we are self-insured for large portions of many different types of claims; however, we do use commercial insurance above our self-insured retentions to reduce the Company’s risk of catastrophic loss. Our reserves for the Company’s self-insured losses are estimated using actuarial methods and assumptions of the insurance industry, adjusted for our specific expectations based on our claims history. Our self-insurance reserves totaled $228 million and $229 million as of April 1, 2022 and December 31, 2021, respectively.NOTE 9: OTHER COMPREHENSIVE INCOME AOCI attributable to shareowners of The Coca-Cola Company is separately presented in our consolidated balance sheet as a component of The Coca-Cola Company’s shareowners’ equity, which also includes our proportionate share of equity method investees’ AOCI. OCI attributable to noncontrolling interests is allocated to, and included in, our consolidated balance sheet as part of the line item equity attributable to noncontrolling interests.AOCI attributable to shareowners of The Coca-Cola Company consisted of the following, net of tax (in millions):

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
|  | April 1,2022 | December 31,2021 |
| Net foreign currency translation adjustments | $ | (11,719) |  | $ | (12,595) |  |
| Accumulated net gains (losses) on derivatives | 84  |  | 20  |  |
| Unrealized net gains (losses) on available-for-sale debt securities | (97) |  | (62) |  |
| Adjustments to pension and other postretirement benefit liabilities | (1,608) |  | (1,693) |  |
| Accumulated other comprehensive income (loss) | $ | (13,340) |  | $ | (14,330) |  |

The following table summarizes the allocation of total comprehensive income between shareowners of The Coca-Cola Company and noncontrolling interests (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended April 1, 2022 |
|  | Shareowners ofThe Coca-Cola Company | NoncontrollingInterests | Total |
| Consolidated net income | $ | 2,781  |  | $ | 12  |  | $ | 2,793  |  |
| Other comprehensive income: |  |  |  |
| Net foreign currency translation adjustments | 876  |  | 133  |  | 1,009  |  |
| Net gains (losses) on derivatives1 | 64  |  | —  |  | 64  |  |
| Net change in unrealized gains (losses) on available-for-sale debt securities2 | (35) |  | —  |  | (35) |  |
| Net change in pension and other postretirement benefit liabilities | 85  |  | —  |  | 85  |  |
|  |  |  |  |
| Total comprehensive income (loss) | $ | 3,771  |  | $ | 145  |  | $ | 3,916  |  |

1Refer to Note 6 for additional information related to the net gains or losses on derivative instruments.2Refer to Note 4 for additional information related to the net unrealized gains or losses on available-for-sale debt securities.17
