The company faces significant financial risk from ongoing tax litigation with the IRS, potentially resulting in a $10 billion+ additional tax and interest liability for 2010-2023. Impairment charges for trademarks and equity method investments are also a risk, as are fluctuations in foreign currency exchange rates. The potential for unfavorable outcomes in pending legal proceedings, though not deemed material overall, is a concern.
Financial Upside
The company's refranchising of bottling operations and sales of equity method investments generated substantial gains, contributing to positive other income. Favorable pricing initiatives and volume growth in some segments also present upside potential. Strong cash flows from operating activities and access to debt financing provide a solid foundation for future operations.
