SUPPLY CHAIN FINANCE PROGRAM

12 Months Ended

Dec. 31, 2025

Our current payment terms with the majority of our suppliers are 120 days. Certain financial institutions offer a voluntary SCF program, which enables our suppliers, at their sole discretion, to sell their receivables from the Company to these financial institutions on a non-recourse basis at a rate that leverages our credit rating and thus may be more beneficial to them. The SCF program is available to suppliers of goods and services included in cost of goods sold and selling, general and administrative expenses in our consolidated statement of income. The Company and our suppliers agree on contractual terms for the goods and services we procure, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF program. The suppliers sell goods or services, as applicable, to the Company and issue the associated invoices to the Company based on the agreed-upon contractual terms. Then, if they are participating in the SCF program, our suppliers sell their invoices to the financial institutions. Our suppliers’ voluntary participation in the SCF program has no bearing on our payment terms. No guarantees are provided by the Company or any of our subsidiaries under the SCF program. We have no economic interest in a supplier’s decision to participate in the SCF program, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program. Accordingly, amounts due to our suppliers that elected to participate in the SCF program are included in the line items accounts payable and accrued expenses and liabilities held for sale in our consolidated balance sheet, as applicable. All activity related to amounts due to suppliers that elected to participate in the SCF program is reflected within the operating activities section of our consolidated statement of cash flows.

The summary of the Company’s outstanding obligations confirmed as valid under the SCF program is as follows (in millions):


	2025			2024
Confirmed obligations outstanding at beginning of year	$	1,330		$	1,421
Invoices confirmed	5,019			5,105
Confirmed invoices paid	(4,974)			(5,196)
Translation and other	(12)			—
Confirmed obligations outstanding at end of year	$	1,363	1	$	1,330

1Includes $37 million of confirmed obligations outstanding at end of year related to our bottling operations in Africa that are currently held for sale. Refer to Note 2.