| 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):
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Three Months Ended |
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Nine Months Ended |
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September 28,
2012 |
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September 30,
2011 |
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September 28,
2012 |
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September 30,
2011 |
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Asset impairments |
$ |
— |
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$ |
— |
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8 |
$ |
— |
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$ |
(15 |
) |
8 |
Productivity and reinvestment program |
(21 |
) |
1 |
— |
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(65 |
) |
1 |
— |
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Other productivity, integration and restructuring initiatives |
4 |
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2 |
(25 |
) |
9 |
5 |
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2 |
(111 |
) |
9 |
Transaction gains and losses |
— |
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(5 |
) |
10 |
33 |
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5 |
203 |
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13 |
Certain tax matters |
7 |
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3 |
(4 |
) |
11 |
(26 |
) |
6 |
15 |
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11 |
Other — net |
(4 |
) |
4 |
(6 |
) |
12 |
(18 |
) |
7 |
(44 |
) |
14 |
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1 |
Related to charges of $59 million and $177 million during the three and nine months ended September 28, 2012, respectively. These charges were due to the Company's productivity and reinvestment program announced in February 2012. Refer to Note 10 and Note 11.
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2 |
Related to net charges of $3 million and $30 million during the three and nine months ended September 28, 2012, respectively. These charges were primarily due to the Company's other productivity, restructuring and integration initiatives that are outside the scope of the Company's productivity and reinvestment program announced in February 2012. Refer to Note 10 and Note 11.
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3 |
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. |
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4 |
Related to a charge of $19 million that consisted of a charge of $10 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees and charges of $9 million associated with the Company's orange juice supply in the United States. Refer to Note 10.
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5 |
Related to a gain of $92 million the Company realized as a result of Coca-Cola FEMSA, an equity method investee, issuing additional shares of its own stock during the period at a per share amount greater than the carrying amount of the Company's per share investment. Refer to Note 10.
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6 |
Related to a net tax benefit primarily associated with the reversal of valuation allowances in the Company's foreign 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 the change in the Company's uncertain tax positions. |
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7 |
Related to a net charge of $22 million. This net charge is due to charges of $20 million associated with changes in the Company's ready-to-drink tea strategy in the United States, charges of $14 million associated with changes in the structure of BPW, and charges of $21 million associated with the Company's orange juice supply in the United States, partially offset by a net gain of $33 million related to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees. Refer to Note 10.
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8 |
Related to charges of $3 million and $41 million during the three and nine months ended September 30, 2011, respectively, due to the impairment of an entity accounted for under the equity method of accounting. Refer to Note 10. The Company does not expect to receive a tax benefit on the portion of the impairment recorded during the three months ended September 30, 2011.
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9 |
Related to charges of $89 million and $372 million during the three and nine months ended September 30, 2011, respectively, 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.
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10 |
Related to a charge of $14 million due to costs associated with the merger of Arca and Contal and the finalization of working capital adjustments related to the sale of all our ownership interests in our Norwegian and Swedish bottling operations to New CCE. Refer to Note 10.
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11 |
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. |
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12 |
Related to a net charge of $42 million, primarily due to the Company's proportionate share of unusual or infrequent items recorded by certain of our equity method investees; a net charge on the repurchase and/or exchange of certain long-term debt we assumed in connection with our acquisition of CCE's former North America business; and a net charge associated with the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011. Refer to Note 10.
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13 |
Related to a net gain of $479 million, primarily due to the gain on the merger of Arca and Contal and the gain on the sale of our investment in Embonor, partially offset by costs associated with the merger of Arca and Contal and the finalization of working capital adjustments related to the sale of all our ownership interests in our Norwegian and Swedish bottling operations to New CCE. Refer to Note 10.
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14 |
Related to a net charge of $151 million, primarily due to charges related to the earthquake and tsunami that devastated northern and eastern Japan on March 11, 2011; our proportionate share of unusual or infrequent items recorded by certain of our equity method investees; the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's former North America business; and a net charge on the repurchase and/or exchange of certain long-term debt we assumed in connection with the CCE transaction. Refer to Note 10.
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| Reconciliation of the gross balance of unrecognized tax benefit |
A reconciliation of the changes in the gross balance of unrecognized tax benefits during the nine months ended September 28, 2012, is as follows (in millions):
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Balance of unrecognized tax benefits as of December 31, 2011 |
$ |
320 |
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Increase related to prior period tax positions |
68 |
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Decrease related to prior period tax positions |
(7 |
) |
Increase related to current period tax positions |
17 |
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Decrease related to settlements with taxing authorities |
(45 |
) |
Decrease as a result of a lapse of the applicable statute of limitations |
(7 |
) |
Decrease from effects of foreign currency exchange rates |
(18 |
) |
Balance of unrecognized tax benefits as of September 28, 2012 |
$ |
328 |
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