Coca Cola 2007 Annual Report Download - page 135

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• Charges totaling approximately $31 million primarily related to costs associated with production capacity
efficiencies and other restructuring costs in Asia and the European Union. Refer to Note 19.
• An approximate $21 million benefit to equity income for our proportionate share of favorable changes in
certain of CCE’s state and Canadian federal and provincial tax rates. Refer to Note 3 and Note 19.
• Approximately $22 million of income tax expense related to the anticipated future resolution of certain tax
matters. Refer to Note 17.
• An income tax benefit of approximately $14 million related to the sale of a portion of our investment in
Coca-Cola Icecek. Refer to Note 17.
In the third quarter of 2006, the Company recorded the following transactions which impacted results:
• Approximately $39 million of charges primarily related to the impairment of certain intangible assets and
investments in certain bottling operations, costs to rationalize production and other restructuring costs in
Africa, the European Union and Asia. Refer to Note 19.
• An approximate $3 million charge to equity income—net for our proportionate share of items impacting
investees. Refer to Note 3 and Note 19.
• 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 and Note 19.
• 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 and
Note 19.
• Approximately $74 million of charges primarily related to restructuring and asset impairments in the Pacific
and certain bottling operations. Refer to Note 19.
• A $100 million donation made to The Coca-Cola Foundation. Refer to Note 19.
• 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 19.
• 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. Refer to Note 17.
• 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.
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