The following table illustrates the income tax expense (benefit) associated with significant operating and nonoperating items for the interim periods presented (in millions):
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 30,
2018 |
|
|
March 31,
2017 |
|
|
Asset impairments |
$ |
(100 |
) |
1 |
$ |
— |
|
1 |
Productivity and reinvestment program |
(23 |
) |
2 |
(52 |
) |
2 |
Transaction gains and losses |
(17 |
) |
3 |
(174 |
) |
6 |
Certain tax matters |
126 |
|
4 |
(30 |
) |
7 |
Other — net |
(18 |
) |
5 |
(17 |
) |
8 |
|
|
1 |
Related to charges of $390 million and $104 million during the three months ended March 30, 2018 and March 31, 2017, respectively, due to impairments of certain of the Company's assets. Refer to Note 11 and Note 15.
|
|
|
2 |
Related to charges of $95 million and $139 million during the three months ended March 30, 2018 and March 31, 2017, respectively, due to the Company's productivity and reinvestment program. Refer to Note 12.
|
|
|
3 |
Related to charges of $99 million which consisted of $45 million related to costs incurred to refranchise certain of our bottling operations, a net loss of $33 million primarily related to the reversal of the cumulative translation adjustments resulting from the substantial liquidation of the Company's former Russian juice operations, charges of $19 million related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements, and a loss of $2 million as a result of the refranchising of certain bottling territories in North America. Refer to Note 2 and Note 11.
|
|
|
4 |
Related to $176 million of income tax expense primarily as a result of adjustments to our provisional remeasurement of deferred taxes recorded as of December 31, 2017, related to the Tax Reform Act signed into law on December 22, 2017. The Company also recorded a net tax charge of $34 million for changes to our uncertain tax positions, including interest and penalties, as well as for agreed upon tax matters. These charges were partially offset by $84 million of excess tax benefits recorded in association with the Company's share-based compensation arrangements.
|
|
|
5 |
Related to charges of $154 million that primarily consisted of a net charge of $51 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees, a net loss of $85 million related to realized and unrealized gains and losses on equity securities and trading debt securities as well as realized gains and losses on available-for-sale debt securities and a $5 million charge due to tax litigation expense. Refer to Note 11.
|
|
|
6 |
Related to charges of $665 million that primarily consisted of a pretax loss of $497 million as a result of the refranchising of certain bottling territories in North America, charges of $57 million related to costs incurred to refranchise certain of our bottling operations, including special termination benefits, and charges of $106 million primarily related to payments made to convert the bottling agreements for certain North America bottling partners' territories to a single form of CBA with additional requirements. Refer to Note 2 and Note 11.
|
|
|
7 |
Related to $53 million of excess tax benefits associated with the Company's share-based compensation arrangements partially offset by
|
changes to our uncertain tax positions, including interest and penalties. The components of the net change in uncertain tax positions were
individually insignificant.
|
|
8 |
Related to charges of $64 million that included a $58 million net charge due to our proportionate share of significant operating and
|
nonoperating items recorded by certain of our equity method investees and a $6 million charge due to tax litigation expense. Refer
to Note 11.
|