Coca Cola 2006 Annual Report Download - page 132

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• An income tax benefit of approximately $25 million as a result of additional guidance issued by the United States
Internal Revenue Service and the United States Department of the Treasury related to the Jobs Creation Act. Refer
to Note 17.
In the third quarter of 2005, the Company recorded the following transactions which impacted results:
• Approximately $89 million of impairment charges primarily related to intangible assets (mainly trademark beverages
sold in the Philippines market). Approximately $85 million and $4 million of these impairment charges are recorded
in the line items other operating charges and equity income — net, respectively. Refer to Note 18.
• Approximately $5 million of a noncash pretax charge to equity income — net due to our proportionate share of
CCE’s restructuring charges. Refer to Note 3.
• An income tax benefit of approximately $18 million related to the reversal of previously accrued taxes resulting from
favorable resolution of tax matters. Refer to Note 17.
• An income tax benefit of approximately $4 million primarily related to the Philippines impairment charges. Refer to
Note 17.
In the fourth quarter of 2005, the Company recorded the following transactions which impacted results:
• The receipt of approximately $5 million related to the settlement of a class action lawsuit concerning the purchase of
HFCS. Refer to Note 18.
• An approximate $49 million reduction to 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 3.
• 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 17.
• A provision for taxes on unremitted foreign earnings of approximately $188 million. Refer to Note 17.
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