| Schedule of income tax expense (benefit) associated with significant operating and nonoperating items for the interim periods presented |
The following table illustrates the income tax expense (benefit) associated with significant operating and nonoperating items for the interim periods presented (in millions):
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Three Months Ended |
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Six Months Ended |
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June 29,
2018 |
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June 30,
2017 |
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June 29,
2018 |
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June 30,
2017 |
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Asset impairments |
$ |
(16 |
) |
1 |
$ |
(164 |
) |
9 |
$ |
(116 |
) |
1 |
$ |
(164 |
) |
9 |
Productivity and reinvestment program |
(34 |
) |
2 |
(31 |
) |
10 |
(57 |
) |
2 |
(83 |
) |
10 |
Transaction gains and losses |
(16 |
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3 |
707 |
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11 |
(33 |
) |
4 |
533 |
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12 |
Certain tax matters |
(37 |
) |
5 |
(40 |
) |
13 |
89 |
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6 |
(70 |
) |
13 |
Other — net |
3 |
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7 |
(12 |
) |
14 |
(15 |
) |
8 |
(29 |
) |
15 |
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1 |
Related to charges of $112 million and $502 million during the three and six months ended June 29, 2018, respectively, due to impairments of certain of the Company's assets. Refer to Note 11 and Note 15.
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2 |
Related to charges of $111 million and $206 million during the three and six months ended June 29, 2018, respectively, due to the Company's productivity and reinvestment program. Also related to pension settlement charges of $39 million during the three and six months ended June 29, 2018. Refer to Note 11, Note 12 and Note 13.
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3 |
Related to charges of $152 million, which included pretax charges of $47 million related to pension settlements, charges of $34 million related to costs incurred to refranchise certain of our bottling operations, charges of $2 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 net charges of $102 million as a result of the refranchising of certain bottling territories in North America, partially offset by a net gain of $36 million related to the refranchising of our Latin American bottling operations. Refer to Note 2, Note 11 and Note 13.
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4 |
Related to charges of $251 million, which included pretax charges of $79 million related to costs incurred to refranchise certain of our bottling operations, charges of $47 million related to pension settlements, charges 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 $21 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 net charges of $104 million as a result of the refranchising of certain bottling territories in North America, partially offset by a net gain of $36 million related to the refranchising of our Latin American bottling operations. Refer to Note 2, Note 11 and Note 13.
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5 |
Related to $42 million of income tax benefit 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 $3 million of excess tax benefits recorded in association with the Company's share-based compensation arrangements. These tax benefits were partially offset by a net tax charge of $8 million for changes to our uncertain tax positions, including interest and penalties, as well as for agreed upon tax matters.
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6 |
Related to $134 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 $42 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 $87 million of excess tax benefits recorded in association with the Company's share-based compensation arrangements.
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7 |
Related to charges of $14 million, which primarily consisted of a net charge of $33 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees and a charge of $22 million due to tax litigation expense, partially offset by a gain of $36 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. Refer to Note 11.
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8 |
Related to charges of $156 million, which primarily consisted of a net charge of $84 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees, a net loss of $49 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 charge of $27 million due to tax litigation expense. Refer to Note 11.
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9 |
Related to charges of $667 million and $771 million during the three and six months ended June 30, 2017, respectively, due to the impairment of certain assets. Refer to Note 11 and Note 15.
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10 |
Related to charges of $87 million and $226 million during the three and six months ended June 30, 2017, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 12.
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11 |
Related to a net gain of $82 million, which primarily consisted of a $445 million gain related to the merger of CCW and CCEJ, a $25 million gain related to Coca-Cola FEMSA, an equity method investee, issuing additional shares of its stock and a $9 million gain related to refranchising a substantial portion of our China bottling operations. These gains were partially offset by a net charge of $214 million as a result of the refranchising of certain bottling territories in North America, charges of $109 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, a charge of $44 million related to costs incurred to refranchise certain of our bottling operations and a charge of $26 million related to our former German bottling operations. Refer to Note 2 and Note 11.
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12 |
Related to charges of $583 million, which primarily consisted of $711 million of net charges as a result of the refranchising of certain bottling territories in North America, charges of $215 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, $101 million related to costs incurred to refranchise certain of our bottling operations and a charge of $26 million related to our former German bottling operations. These charges were partially offset by a $445 million gain related to the merger of CCW and CCEJ, a $25 million gain related to Coca‑Cola FEMSA, an equity method investee, issuing additional shares of its stock and a $9 million gain related to refranchising a substantial portion of our China bottling operations. Refer to Note 2 and Note 11.
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13 |
Related to $29 million and $82 million of excess tax benefits associated with the Company's share-based compensation arrangements during the three and six months ended June 30, 2017, respectively, and the tax benefit associated with the reversal of valuation allowances in certain of the Company's foreign jurisdictions, both of which were 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.
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14 |
Related to charges of $22 million, which primarily consisted of a $38 million net charge related to the extinguishment of long-term debt and $19 million due to tax litigation expense, partially offset by a $37 million net gain due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 11.
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15 |
Related to charges of $86 million, which primarily consisted of a $38 million net charge related to the extinguishment of long-term debt, $25 million due to tax litigation expense and a $21 million net charge due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 11.
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