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NOTE 14: INCOME TAXES
Income before income taxes consisted of the following (in millions):
Year Ended December 31, 2013 2012 2011
United States $ 2,451 $ 3,526 $ 3,029
International 9,026 8,283 8,429
Total $ 11,477 $ 11,809 $ 11,458
Income tax expense consisted of the following for the years ended December 31, 2013, 2012 and 2011 (in millions):
United States State and Local International Total
2013
Current $ 713 $ 102 $ 1,388 $ 2,203
Deferred 305 38 305 648
2012
Current $ 602 $ 74 $ 1,415 $ 2,091
Deferred 936 33 (337) 632
2011
Current $ 286 $ 66 $ 1,425 $ 1,777
Deferred 898 27 110 1,035
We made income tax payments of $2,162 million, $981 million and $1,612 million in 2013, 2012 and 2011, respectively.
A reconciliation of the statutory U.S. federal tax rate and our effective tax rate is as follows:
Year Ended December 31, 2013 2012 2011
Statutory U.S. federal tax rate 35.0% 35.0% 35.0%
State and local income taxes — net of federal benefit 1.0 1.1 0.9
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (10.3)1,2,3 (9.5)6,7 (9.5)10,11,12
Reversal of valuation allowances —(2.4)8—
Equity income or loss (1.4)4(2.0) (1.4)13
Other operating charges 1.250.490.314
Other — net (0.7) 0.5 (0.8)15,16,17,18
Effective tax rate 24.8% 23.1% 24.5%
1Includes a tax benefit of $26 million (or a 0.2 percent impact on our effective tax rate) related to amounts required to be recorded for changes
to our uncertain tax positions, including interest and penalties, in various international jurisdictions.
2Includes a tax expense of $279 million on pretax net gains of $501 million (or a 0.9 percent impact on our effective tax rate) related to the
deconsolidation of our Brazilian bottling operations upon their combination with an independent bottler and a loss due to the merger of four of
the Company’s Japanese bottling partners. Refer to Note 2 and Note 17.
3Includes a tax expense of $3 million (or a 0.5 percent impact on our effective tax rate) related to a charge of $149 million due to the devaluation
of the Venezuelan bolivar. Refer to Note 19.
4Includes an $8 million tax benefit on a pretax charge of $159 million (or a 0.4 percent impact on our effective tax rate) related to our
proportionate share of unusual or infrequent items recorded by our equity method investees. Refer to Note 17.
5Includes a tax benefit of $175 million on pretax charges of $877 million (or a 1.2 percent impact on our effective tax rate) primarily related to
impairment charges recorded on certain of the Company’s intangible assets and charges related to the Company’s productivity and reinvestment
program as well as other restructuring initiatives. Refer to Note 17 and Note 18.
6Includes a tax expense of $133 million (or a 1.1 percent impact on our effective tax rate) related to amounts required to be recorded for changes
to our uncertain tax positions, including interest and penalties, in various international jurisdictions.
7Includes a tax expense of $57 million on pretax net gains of $76 million (or a 0.3 percent impact on our effective tax rate) related to the
following: a gain recognized as a result of the merger of Embotelladora Andina S.A. (‘‘Andina’’) and Embotelladoras Coca-Cola Polar S.A.
(‘‘Polar’’); a gain recognized as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its own stock at a per
share amount greater than the carrying value of the Company’s per share investment; the loss recognized on the pending sale of a
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