Coca Cola 2008 Annual Report Download - page 128

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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, 2008 2007 2006
Statutory U.S. federal tax rate 35.0 % 35.0 % 35.0 %
State and local income taxes — net of federal benefit 0.8 0.6 0.7
Earnings in jurisdictions taxed at rates different from the
statutory U.S. federal rate (14.3)1,2,3 (10.8)8,9 (11.4)14
Equity income or loss 0.24(1.3)10,11 (0.6)15
Other operating charges 0.750.512 0.616
Other — net (0.5)6,7 0.013 (1.5)17
Effective tax rates 21.9 % 24.0 % 22.8 %
1Includes approximately $17 million (or 0.2 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.
2Includes approximately 0.2 percent impact on our effective tax rate related to impairments of assets
and investments in our bottling operations. Refer to Note 19.
3Includes approximately $10 million (or 0.2 percent) impact on our effective tax rate related to
recording valuation allowances offsetting deferred tax assets booked in prior periods.
4Includes approximately 2.7 percent impact to our effective tax rate related to charges recorded by our
equity method investments. Refer to Note 3 and Note 19.
5Includes approximately 0.7 percent impact to our effective tax rate related to restructuring charges,
contract termination fees, productivity initiatives and asset impairments. Refer to Note 19.
6Includes approximately $22 million (or 0.3 percent) tax benefit 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 (0.2) percent impact to our effective tax rate related to the sale of all or a
portion of our investments in certain bottling operations. Refer to Note 3 and Note 19.
8Includes approximately $19 million (or 0.2 percent) tax benefit related to tax rate change in Germany.
9Includes 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.
10 Includes 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.
11 Includes 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.
12 Includes 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.
13 Includes 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.
14 Includes approximately $24 million (or 0.4 percent) tax charge related to the resolution of certain tax
matters in various international jurisdictions.
15 Includes 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.
16 Includes 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.
17 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.
126