FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2025

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

U.S. GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Additionally, the inputs used to measure fair value are prioritized based on a three-level hierarchy. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

•Level 1 — Quoted prices in active markets for identical assets or liabilities.

•Level 2 — Observable inputs other than quoted prices included in Level 1. We value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets, or other inputs that are observable or can be corroborated by observable market data.

•Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

Recurring Fair Value Measurements

In accordance with U.S. GAAP, certain assets and liabilities are required to be recorded at fair value on a recurring basis. For our Company, the only assets and liabilities that are adjusted to fair value on a recurring basis are investments in equity securities with readily determinable fair values, debt securities classified as trading or available-for-sale, derivative financial instruments and our contingent consideration liability. Additionally, the Company adjusts the carrying value of certain long-term debt as a result of the Company’s fair value hedging strategy.

Investments in Debt and Equity Securities

The fair values of our investments in debt and equity securities using quoted market prices from daily exchange traded markets are based on the closing price as of the balance sheet date and are classified as Level 1. The fair values of our investments in debt and equity securities classified as Level 2 are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. Inputs into these valuation techniques include actual trade data, benchmark yields, broker/dealer quotes and other similar data. These inputs are obtained from quoted market prices, independent pricing vendors or other sources.

Derivative Financial Instruments

The fair values of our futures contracts are primarily determined using quoted contract prices on futures exchange markets. The fair values of these instruments are based on the closing contract prices as of the balance sheet date and are classified as Level 1.

The fair values of our derivative instruments other than futures are determined using standard valuation models. The significant inputs used in these models are readily available in public markets, or can be derived from observable market transactions, and therefore have been classified as Level 2. Inputs used in these standard valuation models for derivative instruments other than futures include the applicable exchange rates, forward rates, interest rates, discount rates and commodity prices. The standard valuation model for options also uses implied volatility as an additional input. The discount rates are based on the historical U.S. Deposit or U.S. Treasury rates, and the implied volatility specific to options is based on quoted rates from financial institutions.

Included in the fair values of derivative instruments is an adjustment for nonperformance risk. The adjustment is based on current credit default swap (“CDS”) rates applied to each contract, by counterparty. We use our counterparty’s CDS rate when we are in an asset position and our own CDS rate when we are in a liability position. The adjustment for nonperformance risk did not have a significant impact on the estimated fair values of our derivative instruments.

The following tables summarize those assets and liabilities measured at fair value on a recurring basis (in millions):

	December 31, 2025
	Level 1		Level 2		Level 3		Other3		Netting Adjustment		4	Fair Value Measurements
Assets:
Equity securities with readily determinable values1	$	2,148	$	237	$	61	$	143	$	—		$	2,589
Debt securities1	—		1,824		—		—		—			1,824
Derivatives2	—		441		—		—		(403)		5	38		7
Total assets	$	2,148	$	2,502	$	61	$	143	$	(403)		$	4,451
Liabilities:
Derivatives2	$	9	$	1,040	$	—	$	—	$	(954)	6	$	95	7
Total liabilities	$	9	$	1,040	$	—	$	—	$	(954)		$	95

1Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities.

2Refer to Note 5 for additional information related to the composition of our derivatives portfolio.

3Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4.

4Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There were no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to Note 5.

5The Company is obligated to return $48 million in cash collateral it has netted against its derivative position.

6The Company has the right to reclaim $597 million in cash collateral it has netted against its derivative position.

7The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows: $3 million in the line item assets held for sale, $35 million in the line item other noncurrent assets, $5 million in the line item liabilities held for sale, and $90 million in the line item other noncurrent liabilities. Refer to Note 5 for additional information related to the composition of our derivatives portfolio.

	December 31, 2024
	Level 1		Level 2		Level 3			Other3		Netting Adjustment		4	Fair Value Measurements
Assets:
Equity securities with readily determinable values1	$	1,790	$	137	$	13		$	94	$	—		$	2,034
Debt securities1	—		1,676		—			—		—			1,676
Derivatives2	2		587		—			—		(370)		6	219		8
Total assets	$	1,792	$	2,400	$	13		$	94	$	(370)		$	3,929
Liabilities:
Contingent consideration liability	$	—	$	—	$	6,126	5	$	—	$	—		$	6,126
Derivatives2	—		1,119		—			—		(1,097)		7	22		8
Total liabilities	$	—	$	1,119	$	6,126		$	—	$	(1,097)		$	6,148

1Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities.

2Refer to Note 5 for additional information related to the composition of our derivatives portfolio.

3Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4.

4Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There were no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to Note 5.

5Represents the fair value of the remaining milestone payment related to our acquisition of fairlife, which is contingent on fairlife achieving certain financial targets through 2024 and is payable in 2025. This milestone payment is based on agreed-upon formulas related to fairlife’s operating results, the resulting value of which is not subject to a ceiling. The fair value was determined using discounted cash flow analyses. We are required to remeasure this liability to fair value quarterly, with any changes in the fair value recorded in income until the final milestone payment is made.

6The Company is obligated to return $12 million in cash collateral it had netted against its derivative position.

7The Company had the right to reclaim $735 million in cash collateral it had netted against its derivative position.

8The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows: $102 million in the line item prepaid expenses and other current assets, $117 million in the line item other noncurrent assets and $22 million in the line item other noncurrent liabilities. Refer to Note 5 for additional information related to the composition of our derivatives portfolio.

Gross realized and unrealized gains and losses on Level 3 assets and liabilities, excluding the contingent consideration liability in 2024, were not significant for the years ended December 31, 2025 and 2024.

The Company recognizes transfers between levels within the hierarchy as of the beginning of the reporting period. Gross transfers between levels within the hierarchy were not significant for the years ended December 31, 2025 and 2024.

Nonrecurring Fair Value Measurements

In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company records assets and liabilities at fair value on a nonrecurring basis as required by U.S. GAAP. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges or as a result of observable changes in equity securities using the measurement alternative.

The gains and losses on assets measured at fair value on a nonrecurring basis are summarized in the following table (in millions):

	Gains (Losses)
Year Ended December 31,	2025			2024
Assets held for sale	$	(1,537)	1	$	—
Impairment of intangible assets	(1,033)		2,3,4	(886)		2,3
Other-than-temporary impairment charges	(65)		5,6	(34)		5
Impairment of property, plant and equipment	(12)		4	(63)		7
Total	$	(2,647)		$	(983)

1The Company is required to record assets and liabilities that are held for sale at the lower of carrying value or fair value less any costs to sell based on the estimated proceeds. During the year ended December 31, 2025, the Company recorded a charge of $1,274 million due to the impairment of assets related to our bottling operations in Africa becoming held for sale and was calculated based on Level 3 inputs. Refer to Note 2. The Company also recorded a charge of $235 million due to the write-off of assets related to the sale of our finished product operations in Nigeria and was calculated based on Level 3 inputs. Refer to Note 2. Additionally, the Company recorded a charge of $28 million due to the write-down of assets held for sale related to the refranchising of certain bottling operations in Ghana. This charge, which was calculated based on Level 3 inputs, primarily related to property, plant and equipment. These operations were sold in July 2025, resulting in an additional loss of $8 million. These impairment charges were recorded in the line item other income (loss) — net in our consolidated statement of income.

2During the years ended December 31, 2025 and 2024, the Company recorded asset impairment charges of $44 million and $126 million, respectively, related to a trademark in Latin America. These impairment charges were derived using Level 3 inputs and were primarily driven by revised projections of future operating results and changes in macroeconomic conditions. These charges were recorded in the line item other operating charges in our consolidated statements of income. The remaining carrying value of the trademark is $42 million.

3During the years ended December 31, 2025 and 2024, the Company recorded asset impairment charges of $960 million and $760 million, respectively, related to our BodyArmor trademark in North America. The 2025 impairment charge was primarily driven by revised projections of future operating results, including a slowing of the projected long-term growth rate for the category, an intensifying competitive environment, and more focused innovation and international rollout plans. The 2024 impairment charge was primarily driven by revised projections of future operating results and higher discount rates resulting from changes in macroeconomic conditions since the acquisition date. The fair value of this trademark was derived using discounted cash flow analyses based on Level 3 inputs. These charges were recorded in the line item other operating charges in our consolidated statements of income. The remaining carrying value of the trademark is $2,440 million.

4During the year ended December 31, 2025, the Company recorded an asset impairment charge of $29 million related to a trademark in Asia Pacific and an asset impairment charge of $12 million related to the fixed assets of this business. These impairment charges were derived using Level 3 inputs and were primarily driven by revised projections of future operating results. These charges were recorded in the line item other operating charges in our consolidated statement of income.

5During the years ended December 31, 2025 and 2024, the Company recorded other-than-temporary impairment charges of $40 million and $34 million, respectively, related to an equity method investee in Latin America. These impairment charges were derived using Level 3 inputs and were primarily driven by revised projections of future operating results. These charges were recorded in the line item other income (loss) — net in our consolidated statements of income.

6During the year ended December 31, 2025, the Company recorded an other-than-temporary impairment charge of $25 million related to a joint venture in Latin America. This impairment charge was derived using Level 3 inputs and was due to the joint venture’s restructuring and planned liquidation. This charge was recorded in the line item other income (loss) — net in our consolidated statement of income.

7The Company recorded an asset impairment charge of $63 million during the year ended December 31, 2024 related to certain prototypes. This impairment charge, which was calculated based on Level 3 inputs, was driven by management’s strategic decision to cease use of the assets. This charge was recorded in the line item selling, general and administrative expenses in our consolidated statement of income.

Fair Value Measurements for Pension Plan Assets

The fair value hierarchy discussed above is not only applicable to assets and liabilities that are included in our consolidated balance sheet but is also applied to certain other assets that impact our consolidated financial statements. For example, our Company sponsors a number of pension plans. Assets contributed to these plans by the Company become the property of the individual plans. Even though the Company no longer has control over these assets, our consolidated financial statements are impacted by subsequent fair value adjustments to these assets. The actual return on these assets impacts the Company’s future net periodic benefit cost or income as well as amounts recognized in our consolidated balance sheet. Refer to Note 14. The Company uses the fair value hierarchy to measure the fair value of assets held by our pension plans.

The following table summarizes the levels within the fair value hierarchy for our pension plan assets (in millions):

	December 31, 2025													December 31, 2024
	Level 1		Level 2			Level 3			Other		1	Total		Level 1		Level 2			Level 3			Other		1	Total
Cash and cash equivalents	$	446	$	683		$	—		$	—		$	1,129	$	203	$	376		$	—		$	—		$	579
Equity securities:
U.S.-based companies	505		—			27			—			532		1,022		1			28			—			1,051
International-based companies	379		—			2			—			381		691		10			2			—			703
Fixed-income securities:
Government bonds	92		1,258			—			—			1,350		79		930			—			—			1,009
Corporate bonds and debt    securities	—		375			9			—			384		—		529			17			—			546
Mutual, pooled and commingled    funds	29		184			—			459		4	672		24		277			—			386		8	687
Hedge funds/limited    partnerships	—		—			—			899		5	899		—		—			—			1,023		5	1,023
Real assets	—		—			—			343		6	343		—		—			—			341		6	341
Derivative financial instruments	—		(9)		2	—			—			(9)		—		(63)		2	—			—			(63)
Other	—		—			576		3	266		7	842		—		—			311		3	248		7	559
Total	$	1,451	$	2,491		$	614		$	1,967		$	6,523	$	2,019	$	2,060		$	358		$	1,998		$	6,435

1Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 14.

2This class of assets includes investments in interest rate contracts, credit contracts and foreign exchange contracts.

3Includes purchased annuity insurance contracts.

4This class of assets primarily includes alternative investment funds and collective trust funds for qualified plans. These funds can be subject to monthly redemption restrictions, with a redemption notice period of up to 10 days prior to month end.

5This class of assets includes hedge funds that can be subject to redemption restrictions, ranging from monthly to semiannually, with a redemption notice period of up to one year and/or initial lock-up periods of up to three years, and private equity funds that are primarily closed-end funds in which the Company’s investments are generally not eligible for redemption. Distributions from these private equity funds will be received as the underlying assets are liquidated or distributed.

6This class of assets includes funds invested in real assets, including a privately held real estate investment trust, a real estate commingled pension trust fund, infrastructure limited partnerships and commingled investment funds. These funds seek current income and capital appreciation and can be subject to quarterly redemption restrictions, with a redemption notice period of up to 90 days.

7Primarily includes segregated portfolios of private investment funds that are invested in a portfolio of insurance-linked securities. These assets can be subject to a semiannual redemption, with a redemption notice period of 90 days, subject to certain gate restrictions.

8This class of assets primarily includes a mortgage-related fixed income securities fund, alternative investment funds and collective trust funds for qualified plans. There are no liquidity restrictions on these investments.

The following table provides a reconciliation of the beginning and ending balance of our Level 3 pension plan assets (in millions):

	Equity Securities		Fixed-Income Securities		Other1		Total
Balance as of January 1, 2024	$	32	$	27	$	323	$	382
Actual return on plan assets	1		2		8		11
Purchases, sales and settlements — net	(3)		(12)		(2)		(17)
Net foreign currency translation adjustments	—		—		(18)		(18)
Balance as of December 31, 2024	$	30	$	17	$	311	$	358
Actual return on plan assets	(1)		1		7		7
Purchases, sales and settlements — net	—		(7)		216		209
Transfers into (out of) Level 3 — net	—		(2)		—		(2)
Net foreign currency translation adjustments	—		—		42		42
Balance as of December 31, 2025	$	29	$	9	$	576	$	614

1Includes purchased annuity insurance contracts.

Other Fair Value Disclosures

The carrying values of cash and cash equivalents; short-term investments; trade accounts receivable; accounts payable and accrued expenses; and loans and notes payable approximate their fair values because of the relatively short-term maturities of these financial instruments. As of December 31, 2025, the carrying value and fair value of our long-term debt, including the current portion, were $43,941 million and $39,385 million, respectively. As of December 31, 2024, the carrying value and fair value of our long-term debt, including the current portion, were $43,023 million and $38,052 million, respectively.