Coca Cola 2006 Annual Report Download - page 116

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 17: INCOME TAXES (Continued)
Income tax expense (benefit) consisted of the following for the years ended December 31, 2006, 2005 and
2004 (in millions):
United State and
States Local International Total
2006
Current $ 608 $ 47 $ 878 $ 1,533
Deferred (20) (22) 7 (35)
2005
Current $ 873 $ 188 $ 845 $ 1,906
Deferred (72) (25) 9 (88)
2004
Current $ 350 $ 64 $ 799 $ 1,213
Deferred 209 29 (76) 162
We made income tax payments of approximately $1,601 million, $1,676 million and $1,500 million in 2006,
2005 and 2004, respectively.
A reconciliation of the statutory U.S. federal tax rate and effective tax rates is as follows:
Year Ended December 31, 2006 2005 2004
Statutory U.S. federal rate 35.0 % 35.0 % 35.0 %
State and local income taxes — net of federal benefit 0.7 1.2 1.0
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (11.4)1(12.1)5(9.4)9,10
Equity income or loss (0.6)2(2.3) (3.1)11
Other operating charges 0.630.46(0.9)12
Other — net (1.5)40.37(0.5)13
Repatriation under the Jobs Creation Act —4.78—
Effective rates 22.8 % 27.2 % 22.1 %
1Includes approximately $24 million (or 0.4 percent) tax charge related to the resolution of certain tax
matters in various international jurisdictions.
2Includes approximately 2.4 percent impact to our effective tax rate related to charges recorded by our
equity method investees. Refer to Note 3 and Note 18.
3Includes the tax rate impact related to the impairment of assets and investments in our bottling
operations, contract termination costs related to production capacity efficiencies and other
restructuring charges. Refer to Note 18.
4Includes approximately 1.8 percent tax rate benefit related to the sale of a portion of our investment
in Coca-Cola FEMSA and Coca-Cola Icecek. Refer to Note 3 and Note 18.
5Includes approximately $29 million (or 0.4 percent) tax benefit related to the favorable resolution of
certain tax matters in various international jurisdictions.
6Includes approximately $4 million tax benefit related to the Philippines impairment charges. Refer to
Note 6 and Note 18.
7Includes approximately $72 million (or 1.1 percent) tax benefit related to the favorable resolution of
certain domestic tax matters.
8Related to repatriation of approximately $6.1 billion of previously unremitted foreign earnings under
the Jobs Creation Act, resulting in a tax provision of approximately $315 million.
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