Coca Cola 2007 Annual Report Download - page 115

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THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 17: INCOME TAXES (Continued)
A reconciliation of the statutory U.S. federal tax rate and effective tax rates is as follows:
Year Ended December 31, 2007 2006 2005
Statutory U.S. federal tax rate 35.0% 35.0% 35.0%
State and local income taxes—net of federal benefit 0.6 0.7 1.2
Earnings in jurisdictions taxed at rates different from the statutory U.S.
federal rate (10.8)1,2 (11.4)7(12.1)11
Equity income or loss (1.3)3,4 (0.6)8(2.3)
Other operating charges 0.550.690.412
Other—net 0.06(1.5)10 0.313
Repatriation under the Jobs Creation Act — — 4.714
Effective tax rates 24.0% 22.8% 27.2%
1Includes approximately $19 million (or 0.2 percent) tax benefit related to tax rate change in
Germany.
2Includes approximately $85 million (or 1.1 percent) tax charge related to amounts required to be
recorded for changes to our uncertain tax positions under Interpretation No. 48, including interest
and penalties, in various international jurisdictions.
3Includes approximately 0.4 percent impact to our effective tax rate related to charges recorded by
our equity method investments. Refer to Note 3 and Note 19.
4Includes approximately 0.4 percent impact to our effective tax rate related to the sale of a portion
of our investment in Coca-Cola Amatil and the sale of our investment in Vonpar. Refer to Note 3
and Note 19.
5Includes approximately 0.5 percent impact to our effective tax rate related to the impairment of
assets and investments in our bottling operations and other restructuring charges. Refer to Note 18.
6Includes approximately $11 million (or 0.1 percent) tax charge related to amounts required to be
recorded for changes to our uncertain tax positions under Interpretation No. 48, including interest
and penalties, in certain domestic jurisdictions.
7Includes approximately $24 million (or 0.4 percent) tax charge related to the resolution of certain
tax matters in various international jurisdictions.
8Includes 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 19.
9Includes 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 19.
10 Includes 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 19.
11 Includes approximately $29 million (or 0.4 percent) tax benefit related to the favorable resolution
of certain tax matters in various international jurisdictions.
12 Includes approximately $4 million tax benefit related to the Philippines impairment charges. Refer
to Note 19.
13 Includes approximately $72 million (or 1.1 percent) tax benefit related to the favorable resolution
of certain domestic tax matters.
14 Related 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.
113