Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.25.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of income before income taxes
Income before income taxes consisted of the following (in millions):
Year Ended December 31, 2024 2023 2022
United States $ 3,757  $ 2,766  $ 3,452 
International 9,329  10,186  8,234 
Total $ 13,086  $ 12,952  $ 11,686 
Schedule of income tax expense (benefit)
Income taxes consisted of the following (in millions):
United States State and Local International Total
2024        
Current $ 324  $ 143  $ 1,981  $ 2,448 
Deferred (254) (134) 377  (11)
2023        
Current $ 83  $ 129  $ 2,039  $ 2,251 
Deferred (135) (78) 211  (2)
2022        
Current $ 468  $ 118  $ 1,651  $ 2,237 
Deferred (121) (4) 3  (122)
Reconciliation of the statutory U.S. federal tax rate and effective tax rates
A reconciliation of the statutory U.S. federal tax rate and our effective tax rate is as follows:
Year Ended December 31, 2024 2023 2022
Statutory U.S. federal tax rate 21.0  % 21.0  % 21.0  %
State and local income taxes — net of federal benefit 1.1  1.1  1.4 
Earnings in jurisdictions taxed at rates different from the statutory U.S.
   federal tax rate		 1.0 
1
 (0.3) (0.6)
Equity income or loss (2.6) (2.1) (2.7)
Excess tax benefits on stock-based compensation (0.5) (0.3) (0.7)
Other — net (1.4) (2.0)
2
 (0.3)
Effective tax rate 18.6  % 17.4  % 18.1  %
1Includes net tax expense of $161 million (or a 1.2% impact on our effective tax rate) related to agreed-upon tax issues with certain foreign jurisdictions.
2Includes a net tax benefit of $118 million (or a 0.9% impact on our effective tax rate) related to domestic provision to return adjustments, as well as for various discrete tax items. Also includes a tax benefit of $88 million (or a 0.7% impact on our effective tax rate) associated with the change in the Company’s indefinite reinvestment assertion for our Philippines and Bangladesh bottling operations.
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the changes in the gross amount of unrecognized tax benefits is as follows (in millions):
Year Ended December 31, 2024 2023 2022
Balance of unrecognized tax benefits at beginning of year $ 929  $ 926  $ 906 
Increase related to prior period tax positions 33  2  6 
Decrease related to prior period tax positions (52) (25) — 
Increase related to current period tax positions 30  32  38 
Decrease related to settlements with taxing authorities (57) —  (2)
Decrease due to lapse of the applicable statute of limitations —  (2) — 
Effect of foreign currency translation (3) (4) (22)
Balance of unrecognized tax benefits at end of year $ 880  $ 929  $ 926 
Deferred tax assets and liabilities
The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities consisted of the following (in millions):
December 31, 2024 2023
Deferred tax assets:    
Property, plant and equipment $ 23  $ 25 
Goodwill and intangible assets 1,133  1,414 
Equity method investments (including net foreign currency translation adjustments) 503  239 
Derivative financial instruments 332  156 
Other liabilities 2,650  1,709 
Benefit plans 483  554 
Net operating loss, and other carryforwards 874  357 
Other 325  361 
Gross deferred tax assets 6,323  4,815 
Valuation allowances (485) (396)
Total deferred tax assets $ 5,838  $ 4,419 
Deferred tax liabilities:    
Property, plant and equipment $ (777) $ (748)
Goodwill and intangible assets (1,750) (1,917)
Equity method investments (including net foreign currency translation adjustments) (1,649) (1,633)
Derivative financial instruments (877) (282)
Other liabilities (443) (330)
Benefit plans (441) (428)
Other (1,051)
1
 (159)
Total deferred tax liabilities $ (6,988) $ (5,497)
Net deferred tax assets (liabilities) $ (1,150) $ (1,078)
1Includes deferred tax associated with timing differences related to the IRS Tax Litigation Deposit. Refer to Note 12.
Summary of Valuation Allowance
An analysis of our deferred tax asset valuation allowances is as follows (in millions):
Year Ended December 31, 2024 2023 2022
Balance at beginning of year $ 396  $ 424  $ 401 
Additions 141  28  47 
Deductions (52) (56) (24)
Balance at end of year $ 485  $ 396  $ 424