XML 36 R15.htm IDEA: XBRL DOCUMENT v3.25.4
EQUITY METHOD INVESTMENTS
 12 Months Ended
Dec. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
EQUITY METHOD INVESTMENTS EQUITY METHOD INVESTMENTS
Our consolidated net income includes our Company’s proportionate share of the net income or loss of our equity method investees. When we record our proportionate share of net income, it increases equity income (loss) — net in our consolidated statement of income and our carrying value of that investment. Conversely, when we record our proportionate share of a net loss, it decreases equity income (loss) — net in our consolidated statement of income and our carrying value of that investment. The Company’s proportionate share of the net income or loss of our equity method investees includes our proportionate share of significant operating and nonoperating items recorded by our equity method investees. These items can have a significant impact on the amount of equity income (loss) — net in our consolidated statement of income and our carrying value of those investments. Refer to Note 18 for additional information related to significant operating and nonoperating items recorded by our equity method investees. The carrying values of our equity method investments are also impacted by our proportionate share of items impacting the equity method investees’ AOCI.
We eliminate from our financial results all significant intercompany transactions to the extent of our ownership interest, including the intercompany portion of transactions with equity method investees.
The Company’s equity method investments include, but are not limited to, our ownership interests in CCEP; Monster; AC Bebidas, S. de R.L. de C.V.; Coca-Cola FEMSA; CCHBC; and Coca-Cola Bottlers Japan Holdings Inc. As of December 31, 2025, we owned 18%, 21%, 20%, 28%, 22% and 24%, respectively, of these companies’ outstanding shares. As of December 31, 2025, our investments in our equity method investees in the aggregate exceeded our proportionate share of the net assets of these equity method investees by $8,744 million. This difference is not amortized.
A summary of financial information for our equity method investees in the aggregate is as follows (in millions):
Year Ended December 31,1
202520242023
Net operating revenues$102,800 $99,043 $93,862 
Cost of goods sold60,622 58,527 55,780 
Gross profit$42,178 $40,516 $38,082 
Operating income$13,426 $12,536 $11,868 
Consolidated net income$9,355 $8,439 $7,657 
Less: Net income attributable to noncontrolling interests153 98 75 
Net income attributable to common shareowners$9,202 $8,341 $7,582 
Company equity income (loss) — net$2,031 $1,770 $1,691 
1The financial information represents the results of the equity method investees during the Company’s period of ownership.
December 31,20252024
Current assets$35,272 $33,720 
Noncurrent assets79,826 72,039 
Total assets$115,098 $105,759 
Current liabilities$29,933 $26,959 
Noncurrent liabilities34,406 33,004 
Total liabilities$64,339 $59,963 
Equity attributable to shareowners of investees$48,967 $44,295 
Equity attributable to noncontrolling interests1,792 1,501 
Total equity$50,759 $45,796 
Company equity method investments$20,235 $18,087 
Net sales to equity method investees, the majority of which are located outside the United States, were $19,044 million, $18,278 million and $17,736 million in 2025, 2024 and 2023, respectively. Total payments, primarily related to marketing, made to equity method investees were $271 million, $331 million and $294 million in 2025, 2024 and 2023, respectively. In addition, purchases of beverage products from equity method investees were $648 million, $635 million and $579 million in 2025, 2024 and 2023, respectively.
The following table presents the difference between calculated fair value, based on quoted closing prices of publicly traded shares, and our Company’s carrying value in investments in publicly traded companies accounted for under the equity method (in millions):
December 31, 2025Fair ValueCarrying ValueDifference
Monster Beverage Corporation$15,659 $5,593 $10,066 
Coca-Cola Europacific Partners plc7,163 3,926 3,237 
Coca-Cola FEMSA, S.A.B. de C.V.5,543 2,236 3,307 
Coca-Cola HBC AG4,051 1,391 2,660 
Coca-Cola Bottlers Japan Holdings Inc.822 459 363 
Coca-Cola İçecek A.Ş.770 288 482 
Embotelladora Andina S.A.278 106 172 
Total$34,286 $13,999 $20,287 
Net Receivables and Dividends from Equity Method Investees
Total net receivables due from equity method investees were $1,413 million and $1,357 million as of December 31, 2025 and 2024, respectively. The total amount of dividends received from equity method investees was $993 million, $968 million and $672 million for the years ended December 31, 2025, 2024 and 2023, respectively. The amount of consolidated reinvested earnings that represents undistributed earnings of investments accounted for under the equity method as of December 31, 2025 was $9,067 million.