Coca Cola 2015 Annual Report Download - page 126

As of December 31, 2015, undistributed earnings of the Company's foreign subsidiaries amounted to $31.9 billion. Those earnings are considered to be
indefinitely reinvested and, accordingly, no U.S. federal and state income taxes have been provided thereon. Upon distribution of those earnings in the form
of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes
payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable because of the
complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits would be available to reduce a portion of the U.S. tax
liability.
The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities consist of the following (in millions):
December 31, 
2014
Deferred tax assets:
Property, plant and equipment  
$ 96
Trademarks and other intangible assets 
68
Equity method investments (including foreign currency translation adjustment) 
462
Derivative financial instruments 
134
Other liabilities 
1,082
Benefit plans 
1,673
Net operating/capital loss carryforwards 
729
Other 
196
Gross deferred tax assets  
$ 4,440
Valuation allowances 
(649)
Total deferred tax assets1,2
 
$ 3,791
Deferred tax liabilities:
Property, plant and equipment  
$ (2,342)
Trademarks and other intangible assets 
(4,020)
Equity method investments (including foreign currency translation adjustment) 
(1,038)
Derivative financial instruments 
(457)
Other liabilities 
(110)
Benefit plans 
(487)
Other 
(944)
Total deferred tax liabilities3
 
$ (9,398)
Net deferred tax liabilities  
$ (5,607)
1 Noncurrent deferred tax assets of $360 million and $319 million were included in the line item other assets in our consolidated balance sheets as of December 31, 2015 and 2014,
respectively.
2 Current deferred tax assets of $151 million and $160 million were included in the line item prepaid expenses and other assets in our consolidated balance sheets as of
December 31, 2015 and 2014, respectively.
3 Current deferred tax liabilities of $743 million and $450 million were included in the line item accounts payable and accrued expenses in our consolidated balance sheets as of
December 31, 2015 and 2014, respectively.
As of December 31, 2015 and 2014, we had $62 million of net deferred tax assets and $643 million of net deferred tax liabilities, respectively, located in
countries outside the United States.
As of December 31, 2015, we had $4,419 million of loss carryforwards available to reduce future taxable income. Loss carryforwards of $356 million must be
utilized within the next five years, and the remainder can be utilized over a period greater than five years.
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