| 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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Nine Months Ended |
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September 28,
2018 |
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September 29,
2017 |
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September 28,
2018 |
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September 29,
2017 |
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Asset impairments |
$ |
— |
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1 |
$ |
— |
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9 |
$ |
(116 |
) |
1 |
$ |
(164 |
) |
9 |
Productivity and reinvestment program |
(33 |
) |
2 |
(44 |
) |
10 |
(90 |
) |
2 |
(127 |
) |
10 |
Transaction gains and losses |
107 |
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3 |
(361 |
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11 |
74 |
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4 |
172 |
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12 |
Certain tax matters |
(149 |
) |
5 |
(40 |
) |
13 |
(60 |
) |
6 |
(110 |
) |
14 |
Other — net |
27 |
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7 |
(12 |
) |
15 |
12 |
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8 |
(41 |
) |
16 |
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1 |
Related to charges of $205 million and $257 million during the three and nine months ended September 28, 2018, respectively, due to other-than-temporary impairments of certain of our equity method investees and charges of $450 million during the nine months ended September 28, 2018 due to impairments of certain CCR assets. Refer to Note 11 and Note 15.
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2 |
Related to charges of $107 million and $313 million during the three and nine months ended September 28, 2018, respectively, due to the Company's productivity and reinvestment program. Also related to pension settlement charges of $35 million and $74 million during the three and nine months ended September 28, 2018, respectively. Refer to Note 11, Note 12 and Note 13.
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3 |
Related primarily to a net gain of $370 million on the sale of our equity ownership in Lindley and a gain of $11 million related to the refranchising of our Latin American bottling operations partially offset by net charges of $275 million as a result of the refranchising of certain bottling territories in North America, charges of $38 million related to costs incurred to refranchise certain of our North America bottling operations and charges of $12 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. Refer to Note 2 and Note 11.
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4 |
Related primarily to net charges of $379 million as a result of the refranchising of certain bottling territories in North America, charges of $117 million related to costs incurred to refranchise certain of our North America 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 and charges of $33 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. These charges were partially offset by a $370 million net gain related to the sale of our equity ownership in Lindley and a net gain of $47 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 |
Includes $125 million of income tax benefit related to tax adjustments made in accordance with U.S. Securities and Exchange Commission ("SEC") Staff Accounting Bulletin No. 118 ("SAB 118") with respect to the adjustment of our original provisional estimate of the impact of the Tax Reform Act. The Company also recorded $27 million of excess tax benefits associated with the Company's share-based compensation arrangements. These tax benefits were partially offset by a net tax charge of $3 million primarily related to changes to our uncertain tax positions, including interest and penalties, as well as for agreed-upon tax matters.
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6 |
Includes $114 million of excess tax benefits associated with the Company's share-based compensation arrangements partially offset by $45 million primarily related to changes to our uncertain tax positions, including interest and penalties, as well as for agreed-upon tax matters. The Company also recorded charges of $9 million of income tax expense related to tax adjustments made in accordance with SAB 118 with respect to the adjustment of our original provisional estimate of the impact of the Tax Reform Act.
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7 |
Related to a net gain of $64 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, a net gain of $27 million related to the extinguishment of long-term debt and a net benefit of $19 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees, partially offset by a charge of $4 million due to tax litigation expense. Refer to Note 4, Note 7, Note 8 and Note 11.
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8 |
Related primarily to a net charge of $65 million due to our proportionate share of unusual or infrequent items recorded by certain of our equity method investees, a charge of $31 million due to tax litigation expense, partially offset by a net gain of $27 million related to the extinguishment of long-term debt and a net gain of $15 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 4, Note 7, Note 8 and Note 11.
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9 |
Related to charges of $50 million and $821 million during the three and nine months ended September 29, 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 $129 million and $355 million during the three and nine months ended September 29, 2017, respectively. These charges were due to the Company's productivity and reinvestment program. Refer to Note 12.
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11 |
Related primarily to $762 million of charges as a result of the refranchising of certain bottling territories in North America, $213 million related to costs incurred to refranchise certain of our bottling operations and $72 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. These charges were partially offset by a $79 million gain related to the refranchising of our remaining China bottling operations and related cost method investment. Refer to Note 2 and Note 11.
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12 |
Related primarily to $1,473 million of net charges as a result of the refranchising of certain bottling territories in North America, $314 million of charges related to costs incurred to refranchise certain of our bottling operations, $287 million of charges 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 and a $26 million charge 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, an $88 million gain related to the refranchising of our China bottling operations and related cost method investment and a $25 million gain related to Coca-Cola FEMSA, an equity method investee, issuing additional shares of its stock. Refer to Note 2 and Note 11.
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13 |
Related to $40 million of excess tax benefits associated with the Company's share-based compensation arrangements.
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14 |
Related to $122 million of excess tax benefits associated with the Company's share-based compensation arrangements 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.
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15 |
Related primarily to an $18 million charge related to tax litigation expense and a $16 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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16 |
Related primarily to a net charge of $38 million related to the extinguishment of long-term debt, a $43 million charge related to tax litigation expense and a net charge of $37 million 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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