Quarterly report pursuant to Section 13 or 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
 6 Months Ended
Jun. 29, 2012
Income taxes  
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):
 
Three Months Ended
 
Six Months Ended
 
 
June 29,
2012

 
July 1,
2011

 
June 29,
2012

 
July 1,
2011

 
Asset impairments
$
—

 
$
(15
)
8 
$
—

 
$
(15
)
8 
Productivity and reinvestment program
(20
)
1 
—

 
(44
)
1 
—

 
Other productivity, integration and restructuring initiatives
1

2 
(34
)
9 
1

2 
(86
)
9 
Transaction gains and losses
33

3 
172

10 
33

3 
208

13 
Certain tax matters
(25
)
4 
16

11 
(33
)
6 
19

11 
Other — net
(7
)
5 
(1
)
12 
(14
)
7 
(38
)
14 
1 
Related to charges of $54 million and $118 million during the three and six months ended June 29, 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.
2 
Related to charges of $13 million and $27 million during the three and six months ended June 29, 2012, respectively. These charges were primarily due to the Company's other restructuring 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.
3 
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.
4 
Related to a net tax benefit primarily associated with the reversal of a valuation allowance in one of the Company's foreign jurisdictions as well as 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.
5 
Related to a charge of $18 million that consisted of a net charge of $1 million due to our proportionate share of restructuring charges and a transaction gain recorded by certain of our equity method investees; charges of $11 million associated with changes in the structure of BPW; and charges of $6 million associated with the Company's orange juice supply in the United States. Refer to Note 10.
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.
7 
Related to a net charge of $3 million. This net charge is primarily due to a net gain of $43 million related to our proportionate share of transaction gains and restructuring charges recorded by certain of our equity method investees, partially offset by charges of $20 million associated with changes in the Company's ready-to-drink tea strategy as a result of our current U.S. license agreement with Nestlé terminating at the end of 2012; charges of $14 million associated with changes in the structure of BPW; and charges of $12 million associated with the Company's orange juice supply in the United States. Refer to Note 10.
8 
Related to a $38 million charge due to the impairment of an entity accounted for under the equity method of accounting. Refer to Note 10.
9 
Related to charges of $121 million and $283 million during the three and six months ended July 1, 2011, 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.
10 
Related to a net gain of $391 million, primarily due to the gain on the merger of Arca and Contal, partially offset by costs associated with the merger. Refer to Note 10.
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.
12 
Related to a net charge of $4 million, primarily due to charges related to the earthquake and tsunami that devastated northern and eastern Japan; our proportionate share of restructuring charges recorded by an equity method investee; and a net gain on the repurchase of certain long-term debt we assumed in connection with our acquisition of CCE's former North America business. Refer to Note 10.
13 
Related to a net gain of $493 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. Refer to Note 10.
14 
Related to a net charge of $111 million, primarily due to charges related to the earthquake and tsunami that devastated northern and eastern Japan; the amortization of favorable supply contracts acquired in connection with our acquisition of CCE's former North America business; our proportionate share of restructuring charges recorded by an equity method investee; and a net expense on the repurchase of certain long-term debt we assumed in connection with the CCE transaction. Refer to Note 10.
Reconciliation of the gross balance of unrecognized tax benefit
A reconciliation of the changes in the gross balance of unrecognized tax benefits during the six months ended June 29, 2012, is as follows (in millions):
Balance of unrecognized tax benefits as of December 31, 2011
$
320

Increase related to prior period tax positions
66

Increase related to current period tax positions
13

Decrease as a result of a lapse of the applicable statute of limitations
(7
)
Decrease from effects of foreign currency exchange rates
(19
)
Balance of unrecognized tax benefits as of June 29, 2012
$
373