KO · 10-Q · 2026Q3 · Full report

Operating Expense Trends

COCA COLA CO · 2026-07-29 · Importance 53 · Surprise 48 · From source text

Second-quarter selling, general and administrative expense increased 7% to $3,720 million from $3,470 million, while six-month expense increased 7% to $7,192 million from $6,704 million. Advertising expense increased 18% in the quarter to $1,565 million from $1,328 million and increased 22% year to date to $2,942 million from $2,417 million. Higher marketing spending, including timing effects, and foreign currency movements increased expenses, while lower annual incentive expense and the Nigeria divestiture partly offset the increases. Foreign currency fluctuations increased SG&A by 1% in the quarter and 2% year to date.

Key facts

• Selling, general and administrative expenses were $3,720 million for the three months ended July 3, 2026, an increase of $250 million, or 7%, from $3,470 million for the three months ended June 27, 2025.
• Selling, general and administrative expenses were $7,192 million for the six months ended July 3, 2026, an increase of $488 million, or 7%, from $6,704 million for the six months ended June 27, 2025.
• Advertising expenses were $2,942 million for the six months ended July 3, 2026 and $2,417 million for the six months ended June 27, 2025.
• Advertising expenses were $1,565 million for the three months ended July 3, 2026 and $1,328 million for the three months ended June 27, 2025.
• Other operating charges were $23 million for the three months ended July 3, 2026, consisting of $9 million indemnification related to refranchising, $6 million North America modernization initiatives, $5 million tax litigation expense, and $3 million amortization of noncompete agreements related to the BodyArmor acquisition.
• Other operating charges were $44 million for the six months ended July 3, 2026, consisting of $19 million indemnification related to refranchising, $10 million North America modernization initiatives, $8 million tax litigation expense, and $7 million amortization of noncompete agreements related to the BodyArmor acquisition.
• Other operating charges were $71 million for the three months ended June 27, 2025, which primarily included $31 million impairment of a trademark in Latin America, $28 million for the productivity and reinvestment program, $7 million transaction costs for India refranchising, $4 million amortization of BodyArmor noncompetes, and $2 million tax litigation expense.

Impact estimates