Piedmont Coca-Cola Bottling Partnership

12 Months Ended

Jan. 01, 2017

2.	Piedmont Coca-Cola Bottling Partnership

In 1993, the Company and The Coca‑Cola Company formed Piedmont to distribute and market nonalcoholic beverages primarily in portions of North Carolina and South Carolina. The Company provides a portion of the nonalcoholic beverage products to Piedmont at cost and receives a fee for managing the operations of Piedmont pursuant to a management agreement. These intercompany transactions are eliminated in the consolidated financial statements.

The Company currently provides financing to Piedmont under an agreement that expires on December 31, 2017. Piedmont pays the Company interest on its borrowings at the Company’s average cost of funds plus 0.50%. There were no amounts outstanding under this agreement at January 1, 2017 or January 3, 2016.

Noncontrolling interest as of January 1, 2017, January 3, 2016 and December 28, 2014 primarily represents the portion of Piedmont owned by The Coca‑Cola Company. The Coca‑Cola Company’s interest in Piedmont was 22.7% in all periods reported.

Noncontrolling interest income of $6.5 million in 2016, $6.0 million in 2015 and $4.7 million in 2014 is included in net income on the Company’s consolidated statements of operations. In addition, the amount of consolidated net income attributable to both the Company and noncontrolling interest are shown on the Company’s consolidated statements of operations.

Noncontrolling interest primarily related to Piedmont is shown as noncontrolling interest in the equity section of the Company’s consolidated balance sheets and totaled $85.9 million at January 1, 2017 and $79.4 million at January 3, 2016.