Coca Cola 2010 Annual Report Download - page 73

• an approximate 44 percent effective tax rate on the gain related to the sale of our Norwegian and Swedish
bottling operations to New CCE (refer to Note 2 of Notes to Consolidated Financial Statements);
• an approximate 35 percent combined effective tax rate on the elimination of gross profit in inventory on
intercompany sales and an inventory fair value adjustment as a result of our acquisition of CCE’s North
American business (refer to the heading ‘‘Gross Profit Margin,’’ above);
• an approximate 37 percent combined effective tax rate on the amortization of favorable supply contracts
acquired in connection with our acquisition and mark-to-market gains related to non-designated hedges that are
associated with underlying transactions expected to occur in a future period;
• an approximate 38 percent effective tax rate on the acceleration of expense associated with certain share-based
replacement awards issued in connection with our acquisition of CCE’s North American business (refer to
Note 12 of Notes to Consolidated Financial Statements);
• an approximate 4 percent combined effective tax rate on other-than-temporary impairments and a donation of
preferred shares in one of our equity method investees (refer to Note 17 of Notes to Consolidated Financial
Statements);
• an approximate 33 percent combined effective tax rate on a charge related to the premiums paid to repurchase
long-term debt and the costs associated with the settlement of treasury rate locks issued in connection with the
debt tender offer (refer to Note 10 of Notes to Consolidated Financial Statements);
• a zero percent effective tax rate on the remeasurement of our Venezuelan subsidiary’s net assets (refer to Note 1
of Notes to Consolidated Financial Statements);
• an approximate 46 percent effective tax rate on the gain from the sale of 50 percent of our investment in Le˜ ao
Junior (refer to Note 17 of Notes to Consolidated Financial Statements);
• an approximate 14 percent effective tax rate on our proportionate share of unusual tax charges, asset
impairments, restructuring charges, transaction costs and a remeasurement gain recorded by equity method
investees (refer to Note 17 of Notes to Consolidated Financial Statements);
• a tax charge of approximately $14 million related to new legislation that changed the tax treatment of Medicare
Part D subsidies (refer to Note 13 of Notes to Consolidated Financial Statements);
• a net tax charge of approximately $216 million, primarily related to deferred tax expense on certain current year
undistributed foreign earnings that are not considered indefinitely reinvested (refer to Note 14 of Notes to
Consolidated Financial Statements); and
• a net tax charge of approximately $67 million related to amounts required to be recorded for changes to our
uncertain tax positions, including interest and penalties (refer to Note 14 of Notes to Consolidated Financial
Statements).
Our effective tax rate of approximately 22.8 percent for the year ended December 31, 2009, included the following:
• an approximate 17 percent combined effective tax rate on restructuring charges, productivity initiatives and asset
impairments (refer to Note 17 of Notes to Consolidated Financial Statements);
• an approximate 21 percent combined effective tax rate on our proportionate share of restructuring and asset
impairment charges recorded by equity method investees (refer to Note 17 of Notes to Consolidated Financial
Statements);
• a zero percent effective tax rate on an other-than-temporary impairment of a cost method investment (refer to
Note 17 of Notes to Consolidated Financial Statements);
• a zero percent effective tax rate on realized gains on sales of available-for-sale securities (refer to Note 3 and
Note 17 of Notes to Consolidated Financial Statements);
• a tax benefit of approximately $17 million due to the impact that a tax rate change had on certain deferred tax
liabilities (refer to Note 14 of Notes to Consolidated Financial Statements);
71