XML 74 R46.htm IDEA: XBRL DOCUMENT
v3.24.0.1

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of income before income taxes | Income before income taxes consisted of the following (in millions):
Year Ended December 31, | 2023 |  | 2022 |  | 2021 |
United States | $ | 2,766 |  |  | $ | 3,452 |  |  | $ | 3,538 |  |
International | 10,186 |  |  | 8,234 |  |  | 8,887 |  |
Total | $ | 12,952 |  |  | $ | 11,686 |  |  | $ | 12,425 |  |
Schedule of income tax expense (benefit) | Income taxes consisted of the following (in millions):
| United States | State and Local | International |  | Total
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) |
2021 |  |  |  |  |
Current | $ | 243 |  | $ | 106 |  | $ | 1,378 |  |  | $ | 1,727 |
Deferred | 229 |  | (10) |  | 675 |  | 1 | 894 |
1 Includes net tax expense of $195 million related to changes in tax laws in certain foreign jurisdictions.
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, | 2023 |  | 2022 | 2021 |  |  |
Statutory U.S. federal tax rate | 21.0 | % |  | 21.0 | % | 21.0 | % |  |  |
State and local income taxes — net of federal benefit | 1.1 |  |  | 1.4 |  | 1.1 |  |  |  |
Earnings in jurisdictions taxed at rates different from the statutory U.S. federal tax rate | (0.3) |  |  | (0.6) |  | 2.3 |  | 2 |  |
Equity income or loss | (2.1) |  |  | (2.7) |  | (2.0) |  |  |  |
Excess tax benefits on stock-based compensation | (0.3) |  |  | (0.7) |  | (0.5) |  |  |  |
Other — net | (2.0) |  | 1 | (0.3) |  | (0.8) |  | 3 |  |
Effective tax rate | 17.4 | % |  | 18.1 | % | 21.1 | % |  |  |
1 Includes 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. 2 Includes net tax charges of $375 million (or a 3.0% impact on our effective tax rate) related to changes in tax laws in certain foreign jurisdictions, amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions, as well as other discrete items. 3 Includes a tax benefit of $14 million (or a 1.5% impact on our effective tax rate) associated with the $834 million gain recorded upon the acquisition of the remaining ownership interest in BodyArmor. Refer to Note 2.
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, | 2023 | 2022 | 2021
Balance of unrecognized tax benefits at beginning of year | $ | 926 |  | $ | 906 |  | $ | 915 |
Increase related to prior period tax positions | 2 |  | 6 |  | 9 |
Decrease related to prior period tax positions | (25) |  | — |  | (50) |
Increase related to current period tax positions | 32 |  | 38 |  | 37 |
Decrease related to settlements with taxing authorities | — |  | (2) |  | (4) |
Decrease due to lapse of the applicable statute of limitations | (2) |  | — |  | — |
Effect of foreign currency translation | (4) |  | (22) |  | (1) |
Balance of unrecognized tax benefits at end of year | $ | 929 |  | $ | 926 |  | $ | 906 |
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, | 2023 | 2022
Deferred tax assets: |  |
Property, plant and equipment | $ | 25 |  | $ | 40 |
Trademarks and other intangible assets | 1,414 |  | 1,617 |
Equity method investments (including net foreign currency translation adjustments) | 239 |  | 366 |
Derivative financial instruments | 156 |  | 207 |
Other liabilities | 1,709 |  | 1,503 |
Benefit plans | 554 |  | 522 |
Net operating loss carryforwards | 273 |  | 248 |
Other | 445 |  | 530 |
Gross deferred tax assets | 4,815 |  | 5,033 |
Valuation allowances | (396) |  | (424) |
Total deferred tax assets | $ | 4,419 |  | $ | 4,609 |
Deferred tax liabilities: |  |
Property, plant and equipment | $ | (748) |  | $ | (741) |
Trademarks and other intangible assets | (1,917) |  | (1,843) |
Equity method investments (including net foreign currency translation adjustments) | (1,633) |  | (1,632) |
Derivative financial instruments | (282) |  | (488) |
Other liabilities | (330) |  | (372) |
Benefit plans | (428) |  | (490) |
Other | (159) |  | (211) |
Total deferred tax liabilities | $ | (5,497) |  | $ | (5,777) |
Net deferred tax assets (liabilities) | $ | (1,078) |  | $ | (1,168) |
Summary of Valuation Allowance | An analysis of our deferred tax asset valuation allowances is as follows (in millions):
Year Ended December 31, | 2023 | 2022 | 2021
Balance at beginning of year | $ | 424 |  | $ | 401 |  | $ | 406 |
Additions | 28 |  | 47 |  | 25 |
Deductions | (56) |  | (24) |  | (30) |
Balance at end of year | $ | 396 |  | $ | 424 |  | $ | 401 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration