Coca Cola 2006 Annual Report Download - page 131

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• An approximate $3 million charge to equity income — net for our proportionate share of items impacting investees.
Refer to Note 3.
• An income tax benefit of approximately $41 million related to the reversal of a tax valuation allowance due to the
sale of a portion of our equity method investment in Coca-Cola FEMSA, partially offset by a charge for the
anticipated future resolution of certain tax matters and a change in the tax rate applicable to a portion of the
temporary difference between the book and tax basis of our investment in Coca-Cola FEMSA. Refer to Note 3.
• An income tax benefit of approximately $12 million associated with impairment charges, costs to rationalize
production and other restructuring costs. Refer to Note 17.
The Company’s fourth quarter of 2006 results were impacted by one additional shipping day as compared to
the fourth quarter of 2005. Additionally, the Company recorded the following transactions which impacted
results:
• An approximate $615 million charge to equity income related to the Company’s proportionate share of CCE’s
impairment charges and restructuring charges recorded by other equity method investees, partially offset by changes
in certain of CCE’s state and Canadian federal and provincial tax rates. Refer to Note 3.
• Approximately $74 million of charges primarily related to restructuring and asset impairments in East, South Asia
and Pacific Rim and certain bottling operations and asset impairments in North Asia, Eurasia and Middle East.
Refer to Note 18.
• A $100 million donation made to The Coca-Cola Foundation.
• An approximate $175 million net gain related to the sale of Coca-Cola FEMSA shares. This gain was recorded in the
line item other income (loss) — net. Refer to Note 18.
• An income tax benefit of approximately $10 million associated with restructuring costs and impairment charges.
Refer to Note 17.
• An income tax benefit of approximately $38 million associated with a donation made to The Coca-Cola Foundation.
• An income tax benefit of approximately $37 million related to the reversal of previously accrued taxes resulting from
the anticipated future resolution of certain tax matters. Refer to Note 17.
• An income tax benefit of approximately $57 million associated with items impacting investees. Refer to Note 17.
• Approximately $76 million of income tax expense associated with the gain on the sale of Coca-Cola FEMSA shares.
Refer to Note 17.
In the first quarter of 2005, the Company recorded the following transactions which impacted results:
• A provision for taxes on unremitted foreign earnings of approximately $152 million. Refer to Note 17.
• Approximately $23 million of noncash pretax gains on issuances of stock by Coca-Cola Amatil in connection with the
acquisition of SPC Ardmona Pty. Ltd., an Australian fruit company. Refer to Note 4.
• An income tax benefit of approximately $56 million related to the reversal of previously accrued taxes resulting from
favorable resolution of tax matters. Refer to Note 17.
• Approximately $50 million of accelerated amortization of stock-based compensation expense related to a change in
our estimated service period for retirement-eligible participants. Refer to Note 15.
In the second quarter of 2005, the Company recorded the following transactions which impacted results:
• The receipt of approximately $42 million related to the settlement of a class action lawsuit concerning the purchase
of HFCS. Refer to Note 18.
• An approximate $21 million benefit to equity income for our proportionate share of CCE’s HFCS lawsuit
settlement. Refer to Note 3.
• An income tax benefit of approximately $17 million related to the reversal of previously accrued taxes resulting from
favorable resolution of tax matters. Refer to Note 17.
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