Coca Cola 2005 Annual Report Download - page 123

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• Approximately $5 million of a pretax noncash charge to equity income — net due to our proportionate share of
CCE’s restructuring charges. Refer to Note 2.
• Approximately $18 million in income tax benefit related to the reversal of previously accrued taxes resulting from
favorable resolution of tax matters. Refer to Note 16.
The Company’s fourth quarter of 2005 results were impacted by one additional shipping day as compared to
the fourth quarter of 2004. Additionally, the Company recorded the following transactions in the fourth quarter
of 2005 which impacted results:
• A receipt of approximately $5 million related to the settlement of a class action lawsuit concerning the purchase of
HFCS. Refer to Note 17.
• An approximate $49 million reduction to our equity income due to our proportionate share of CCE’s tax expense
related to repatriation of previously unremitted foreign earnings under the Jobs Creation Act and restructuring
charges recorded by CCE, partially offset by changes in certain of CCE’s state and provincial tax rates and additional
proceeds from CCE’s HFCS lawsuit settlement. Refer to Note 2.
• An income tax benefit of approximately $10 million related to the reversal of previously accrued taxes resulting from
favorable resolution of tax matters. Refer to Note 16.
• A provision for taxes on unremitted foreign earnings of approximately $188 million. Refer to Note 16.
In the second quarter of 2004, the Company recorded the following transactions which impacted results:
• Equity income benefited by approximately $37 million for our proportionate share of a favorable tax settlement
related to Coca-Cola FEMSA. Refer to Note 2.
• Impairment charges totaling approximately $88 million primarily related to write-downs of certain manufacturing
investments and an intangible asset. Refer to Note 17.
• Approximately $49 million of noncash pretax gains on issuances of stock by CCE. Refer to Note 3.
• An income tax benefit of approximately $41 million related to the reversal of previously accrued taxes resulting from
a favorable agreement with authorities. Refer to Note 16.
In the third quarter of 2004, the Company recorded the following transactions which impacted results:
• An income tax benefit of approximately $39 million related to the reversal of previously accrued taxes resulting from
favorable resolution of tax matters. Refer to Note 16.
• An income tax expense of approximately $75 million related to the recognition of a valuation allowance on certain
deferred taxes of CCEAG. Refer to Note 16.
• Impairment charges totaling approximately $392 million primarily related to franchise rights at CCEAG. Refer to
Note 17.
In the fourth quarter of 2004, the Company recorded the following transactions which impacted results:
• A receipt of $75 million for an insurance settlement related to the class action lawsuit that was settled in 2000 and a
donation of $75 million to The Coca-Cola Foundation. Refer to Note 17.
• An income tax benefit of approximately $48 million related to the reversal of previously accrued taxes resulting from
favorable resolution of tax matters. Refer to Note 16.
• An income tax benefit of approximately $50 million related to the realization of certain foreign tax credits per
provisions of the Jobs Creation Act. Refer to Note 16.
• Approximately $25 million of noncash pretax losses to adjust the amount of the gain recognized in the second
quarter of 2004 on issuances of stock by CCE. Refer to Note 3.
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