FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Oct. 02, 2026

Assets and liabilities measured at fair value on a recurring basis

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


October 2, 2026	Level 1		Level 2		Level 3		Other3		Netting Adjustment		4	Fair Value Measurements
Assets:
Equity securities with readily determinable values1	$	2,208	$	535	$	92	$	395	$	—		$	3,230
Debt securities1	—		2,718		—		—		—			2,718
Derivatives2	—		767		—		—		(596)		5	171		7
Total assets	$	2,208	$	4,020	$	92	$	395	$	(596)		$	6,119
Liabilities:
Derivatives2	$	2	$	1,186	$	—	$	—	$	(1,171)	6	$	17	7
Total liabilities	$	2	$	1,186	$	—	$	—	$	(1,171)		$	17

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 6 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 6.

5The Company is obligated to return $90 million in cash collateral it has netted against its derivative position.

6The Company has the right to reclaim $657 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: $11 million in the line item assets held for sale, $160 million in the line item other noncurrent assets, $2 million in the line item liabilities held for sale and $15 million in the line item other noncurrent liabilities. Refer to Note 6 for additional information related to the composition of our derivatives portfolio.


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 6 for additional information related to the composition of our derivatives portfolio.

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

6The Company had the right to reclaim $597 million in cash collateral it had 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 6 for additional information related to the composition of our derivatives portfolio.

Fair Value Measurements, Nonrecurring

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


	Gains (Losses)
	Three Months Ended						Nine Months Ended
	October 2, 2026			September 26, 2025			October 2, 2026			September 26, 2025
Assets held for sale	$	5	1	$	(235)	2	$	61	1	$	(263)	2
Other-than-temporary impairment charges	—			—			—			(65)		3,4
Impairment of intangible assets	—			—			—			(31)		5
Total	$	5		$	(235)		$	61		$	(359)

1During the three and nine months ended October 2, 2026, the Company recorded reductions in the previously recorded impairment charge related to our bottling operations in Africa, which are held for sale, of $5 million and $61 million, respectively, based on Level 3 inputs. These reductions were recorded in the line item other income (loss) — net in our consolidated statements of income. Refer to Note 2.

2The 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 agreed-upon sale price. During the three and nine months ended September 26, 2025, the Company recorded a charge of $235 million in the line item other income (loss) — net in our consolidated statements of income. This charge was due to the write-off of assets related to the sale of certain finished product operations in Nigeria and was calculated based on Level 3 inputs. Additionally, during the nine months ended September 26, 2025, the Company recorded a charge of $28 million in the line item other income (loss) — net in our consolidated statement of income. This charge was 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.

3During the nine months ended September 26, 2025, the Company recorded an other-than-temporary impairment charge of $40 million related to an equity method investee in Latin America. This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results. This charge was recorded in the line item other income (loss) — net in our consolidated statement of income.

4During the nine months ended September 26, 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.

5During the nine months ended September 26, 2025, the Company recorded an asset impairment charge of $31 million related to a trademark in Latin America. This impairment charge was derived using Level 3 inputs and was primarily driven by revised projections of future operating results and changes in macroeconomic conditions. This charge was recorded in the line item other operating charges in our consolidated statement of income. The remaining carrying value of the trademark is $55 million.