KO · 10-Q · 2026Q3 · Full report

BodyArmor Trademark Impairment

COCA COLA CO · 2026-07-29 · Importance 52 · Surprise 42

The Company recorded a $960 million impairment charge for the BodyArmor trademark during the three months ended December 31, 2025. The charge followed weaker operating results and lower projected future performance, including a slower long-term category growth rate, stronger competition and more focused innovation and international rollout plans. The trademark retained a $2,440 million carrying value as of July 3, 2026, with fair value approximately equal to carrying value. Failure to achieve revised projections or an increase in the discount rate could require an additional impairment charge.

Key facts

• During the three months ended December 31, 2025, the Company recorded an impairment charge of $960 million related to the BodyArmor trademark.
• The remaining carrying value of the BodyArmor trademark is $2,440 million.
• The Company recorded a $56 million reduction in the previously recorded impairment charge related to our bottling operations in Africa, which are held for sale, during the six months ended July 3, 2026.
• During the six months ended June 27, 2025 the Company recorded other-than-temporary impairment charges of $40 million related to an equity method investee in Latin America and $25 million related to a joint venture in Latin America.
• As of July 3, 2026, the fair value of the BodyArmor trademark approximates its carrying value.