Coca Cola 2014 Annual Report Download - page 60

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A reconciliation of the statutory U.S. federal tax rate and our effective tax rate is as follows:
Year Ended December 31, 2014 2013 2012
Statutory U.S. federal tax rate 35.0% 35.0% 35.0%
State and local income taxes — net of federal benefit 1.0 1.0 1.1
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal rate (11.5
)
1,2 (10.3)5,6,7 (9.5)10,11
Reversal of valuation allowances —— (2.4)12
Equity income or loss
(2.2)
(1.4)8(2.0)
Other operating charges 2.93,4 1.29
0.4
13
Other — net
(1.6)
(0.7) 0.5
Effective tax rate 23.6% 24.8% 23.1%
1
Includes a $6 million tax expense on a pretax net charge of $372 million (or a 1.5 percent impact on our effective tax rate) due to the remeasurement of
the net monetary assets of our local Venezuelan subsidiary into U.S. dollars using the SICAD 2 exchange rate. Refer to Note 1 of Notes to Consolidated
Financial Statements.
2
Includes a tax expense of $18 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.
3
Includes a tax expense of $55 million on a pretax charge of $352 million (or a 1.9 percent impact on our effective tax rate) primarily due to an impairment
of a Venezuelan trademark, a write-down the Company recorded on the concentrate sales receivables from our bottling partner in Venezuela, a charge
associated with certain of the Company’s fixed assets, and as a result of the restructuring and transition of the Company’s Russian juice operations to an
existing joint venture with an unconsolidated bottling partner. Refer to Note 1 and Note 17 of Notes to Consolidated Financial Statements.
4
Includes a tax benefit of $191 million on pretax charges of $809 million (or a 1 percent impact on our effective tax rate) primarily related to the
Company’s productivity and reinvestment program as well as other restructuring initiatives. Refer to Note 18 of Notes to Consolidated Financial
Statements.
5
Includes 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.
6
Includes 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 of Notes to Consolidated Financial Statements.
7
Includes 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 of Notes to Consolidated Financial Statements.
8
Includes 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 of Notes to Consolidated Financial Statements.
9
Includes 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 of Notes to Consolidated Financial Statements.
10
Includes 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.
11
Includes 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 Andina and 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 then pending sale of a majority ownership interest in our consolidated Philippine bottling operations to Coca-Cola FEMSA; and the expense
recorded for the premium the Company paid over the publicly traded market price to acquire an ownership interest in Mikuni. Refer to Note 17 of Notes
to Consolidated Financial Statements.
12
Relates to a net tax benefit of $283 million associated with the reversal of valuation allowances in certain of the Company’s foreign jurisdictions.
13
Includes a tax benefit of $95 million on pretax charges of $416 million (or a 0.4 percent impact on our effective tax rate) primarily related to the
Company’s productivity and reinvestment program as well as other restructuring initiatives; the refinement of previously established accruals related to
the Company’s 2008–2011 productivity initiatives; and the refinement of previously established accruals related to the Company’s integration of CCE’s
former North America business. Refer to Note 18 of Notes to Consolidated Financial Statements.