Coca Cola 2010 Annual Report Download - page 138

A reconciliation of the statutory U.S. federal tax rate and effective tax rates is as follows:
Year Ended December 31, 2010 2009 2008
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 0.8
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (5.6)1(11.6)9(14.5)14,15,16
Equity income or loss (1.9)2(2.3)10 0.217
CCE transaction (12.5)3,4 ——
Nordic bottler sale 0.45——
Other operating charges 0.460.611 0.718
Other — net 0.37,8 0.412,13 (0.5)19,20
Effective tax rates 16.7% 22.8% 21.7%
1Includes tax expense of $265 million (or 1.9 percent), primarily related to deferred tax expense on certain current year
undistributed foreign earnings that are not considered indefinitely reinvested and amounts required to be recorded for changes to
our uncertain tax positions, including interest and penalties.
2Includes an approximate 0.1 percent impact to our effective tax rate related to charges recorded by our equity method investees.
Refer to Note 17.
3Includes a tax benefit of $34 million related to the remeasurement of our equity investment in CCE to fair value upon our
acquisition of CCE’s North American business. The tax benefit reflects the impact of reversing deferred tax liabilities associated
with our equity investment in CCE prior to the acquisition. Refer to Note 2.
4Includes an approximate 37 percent effective tax rate on charges related to preexisting relationships with CCE. Refer to Note 2.
5Includes an approximate 0.4 percent impact to our effective tax rate related to the sale of our Norwegian and Swedish bottling
operations. Refer to Note 2.
6Includes an approximate 0.5 percent impact to our effective tax rate, primarily related to the Company’s productivity, integration
and restructuring initiatives, transaction costs and charitable contributions. Refer to Note 17.
7Includes an approximate 0.5 percent impact to our effective tax rate on charges related to the repurchase of certain long-term debt
and costs associated with the settlement of treasury rate locks issued in connection with the debt tender offer, the loss related to
the remeasurement of our Venezuelan subsidiary’s net assets, other-than-temporary impairment charges and a donation of
preferred shares in one of our equity method investees. Refer to Note 17.
8Includes a $31 million (or 0.2 percent) tax expense related to amounts required to be recorded for changes to our uncertain tax
positions, including interest and penalties, and other tax matters in certain domestic jurisdictions.
9Includes a $16 million (or 0.2 percent) tax benefit related to amounts required to be recorded for changes to our uncertain tax
positions, including interest and penalties, in various international jurisdictions.
10 Includes an approximate 0.1 percent impact to our effective tax rate related to charges recorded by our equity method investees.
Refer to Note 17.
11 Includes an approximate 0.6 percent impact to our effective tax rate related to restructuring charges and asset impairments. Refer
to Note 17.
12 Includes an approximate negative 0.2 percent impact to our effective tax rate related to the sale of all or a portion of certain
investments. Refer to Note 3.
13 Includes an approximate 0.1 percent impact to our effective tax rate related to an other-than-temporary impairment of a cost
method investment. Refer to Note 17.
14 Includes a $17 million (or 0.2 percent) tax charge related to amounts required to be recorded for changes to our uncertain tax
positions, including interest and penalties, in various international jurisdictions.
15 Includes an approximate 0.2 percent impact on our effective tax rate related to impairments of assets and investments in our
bottling operations. Refer to Note 17.
16 Includes a $10 million (or 0.1 percent) impact on our effective tax rate related to recording valuation allowances offsetting deferred
tax assets booked in prior periods.
17 Includes an approximate 2.7 percent impact to our effective tax rate related to charges recorded by our equity method investees.
Refer to Note 17.
18 Includes an approximate 0.7 percent impact to our effective tax rate related to restructuring charges, contract termination fees,
productivity initiatives and asset impairments. Refer to Note 17.
19 Includes a $22 million (or 0.3 percent) tax benefit related to amounts required to be recorded for changes to our uncertain tax
positions, including interest and penalties, in certain domestic jurisdictions.
20 Includes an approximate negative 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 17.
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