Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
 3 Months Ended
Mar. 30, 2012
Income taxes  
Schedule of tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented
The following table illustrates the tax expense (benefit) associated with unusual and/or infrequent items for the interim periods presented (in millions):
 
Three Months Ended
 
 
March 30,
2012

 
April 1,
2011

 
Productivity and reinvestment program
$
(24
)
1 
$
—

 
Other productivity, integration and restructuring initiatives
—

 
(52
)
4 
Transaction gains and losses
—

 
36

5 
Certain tax matters
(8
)
2 
3

6 
Other — net
(7
)
3 
(37
)
7 
1 
Related to charges of $64 million due to the Company's productivity and reinvestment program announced in February 2012. Refer to Note 10 and Note 11.
2 
Related to a net tax benefit associated with the reversal of a valuation allowance in one of the Company's international jurisdictions, partially offset by amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. See below for additional details related to a change in the Company's uncertain tax positions.
3 
Related to a net gain of $15 million. This net gain is primarily due to a net gain of $44 million related to our proportionate share of a transaction gain and restructuring charges recorded by certain of our equity method investees, partially offset by charges of $20 million associated with changes in the Company's ready-to-drink tea strategy as a result of our current U.S. license agreement with Nestlé terminating at the end of 2012; charges of $3 million associated with changes in the structure of BPW; and charges of $6 million associated with the Company detecting residues of carbendazim, a fungicide that is not registered in the United States for use on citrus products, in orange juice imported from Brazil for distribution in the United States. Refer to Note 10.
4 
Related to charges of $162 million, primarily due to our productivity, integration and restructuring initiatives. These productivity and integration initiatives were outside the scope of the Company's productivity and reinvestment program announced in February 2012. Refer to Note 10 and Note 11.
5 
Related to a net gain of $102 million due to the sale of our investment in Embonor. Refer to Note 2 and Note 10.
6 
Related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were individually insignificant.
7 
Related to a net charge of $107 million, primarily due to charges related to the earthquake and tsunami that devastated northern and eastern Japan; the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's former North America business; our proportionate share of restructuring charges recorded by an equity method investee; and charges related to the repurchase of certain long-term debt. Refer to Note 10.
Reconciliation of the gross balance of unrecognized tax benefit
A reconciliation of the changes in the gross balance of unrecognized tax benefits during the three months ended March 30, 2012, is as follows (in millions):
Balance of unrecognized tax benefits as of December 31, 2011
$
320

Increase related to prior period tax positions
52

Increase related to current period tax positions
3

Decrease as a result of a lapse of the applicable statute of limitations
(4
)
Increase from effects of foreign currency exchange rates
8

Balance of unrecognized tax benefits as of March 30, 2012
$
379