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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

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