XML 59 R40.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2017
Provision for Income Taxes | Earnings/(losses) from continuing operations before income taxes and the provision for income taxes consisted of:
|  | For the Years Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in millions) |
Earnings/(losses) from continuing operations before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 354 |  |  | $ | (364 | ) |  | $ | 43 |
Outside United States |  |  | 2,770 |  |  |  | 1,818 |  |  |  | 7,841 |
Total |  | $ | 3,124 |  |  | $ | 1,454 |  |  | $ | 7,884 |
Provision for income taxes: |  |  |  |  |  |  |  |  |  |  |  |
United States federal: |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | 1,322 |  |  | $ | (227 | ) |  | $ | (90 | )
Deferred |  |  | (1,256 | ) |  |  | 141 |  |  |  | 136 |
|  |  | 66 |  |  |  | (86 | ) |  |  | 46 |
State and local: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 33 |  |  |  | 7 |  |  |  | 6 |
Deferred |  |  | 33 |  |  |  | 8 |  |  |  | (3 | )
|  |  | 66 |  |  |  | 15 |  |  |  | 3 |
Total United States |  |  | 132 |  |  |  | (71 | ) |  |  | 49 |
Outside United States: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 541 |  |  |  | 490 |  |  |  | 707 |
Deferred |  |  | 15 |  |  |  | (290 | ) |  |  | (163 | )
Total outside United States |  |  | 556 |  |  |  | 200 |  |  |  | 544 |
Total provision for income taxes |  | $ | 688 |  |  | $ | 129 |  |  | $ | 593 |
Effective Income Tax Rate | The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate for the following reasons:
|  | For the Years Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
U.S. federal statutory rate |  |  | 35.0% |  |  |  | 35.0% |  |  |  | 35.0% |
Increase/(decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State and local income taxes, net of federal tax benefit excluding IRS audit impacts |  |  | 0.8% |  |  |  | 0.8% |  |  |  | (0.1)% |
Foreign rate differences |  |  | (10.8)% |  |  |  | (18.6)% |  |  |  | (2.5)% |
Changes in judgment on realizability of deferred tax assets |  |  | 3.2% |  |  |  | – |  |  |  | – |
Reversal of other tax accruals no longer required |  |  | (1.7)% |  |  |  | (7.7)% |  |  |  | (1.4)% |
Tax accrual on investment in Keurig |  |  | 2.7% |  |  |  | 2.3% |  |  |  | – |
Excess tax benefits from equity compensation |  |  | (1.2)% |  |  |  | – |  |  |  | – |
Tax legislation (non-U.S. tax reform) |  |  | (2.7)% |  |  |  | (4.0)% |  |  |  | (0.5)% |
U.S. tax reform - deferred benefit from tax rate change |  |  | (42.0)% |  |  |  | – |  |  |  | – |
U.S. tax reform - transition tax |  |  | 42.2% |  |  |  | – |  |  |  | – |
U.S. tax reform - changes in indefinite reinvestment assertion |  |  | (2.0)% |  |  |  | – |  |  |  | – |
Gains on coffee business transactions and divestitures |  |  | – |  |  |  | – |  |  |  | (26.9)% |
Business sales |  |  | (0.9)% |  |  |  | – |  |  |  | – |
Loss on deconsolidation of Venezuela |  |  | – |  |  |  | – |  |  |  | 3.5% |
Non-deductible expenses |  |  | 0.4% |  |  |  | 0.9% |  |  |  | 0.3% |
Other |  |  | (1.0)% |  |  |  | 0.2% |  |  |  | 0.1% |
Effective tax rate |  |  | 22.0% |  |  |  | 8.9% |  |  |  | 7.5% |
Deferred Tax Assets and Liabilities Temporary Differences | The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following:
|  | As of December 31, |
|  | 2017 |  |  | 2016 |
|  | (in millions) |
Deferred income tax assets: |  |  |  |  |  |  |  |
Accrued postretirement and postemployment benefits |  | $ | 191 |  |  | $ | 214 |
Accrued pension costs |  |  | 313 |  |  |  | 370 |
Other employee benefits |  |  | 155 |  |  |  | 237 |
Accrued expenses |  |  | 269 |  |  |  | 379 |
Loss carryforwards |  |  | 773 |  |  |  | 619 |
Tax credit carryforwards |  |  | 370 |  |  |  | — |
Other |  |  | 342 |  |  |  | 331 |
Total deferred income tax assets |  |  | 2,413 |  |  |  | 2,150 |
Valuation allowance |  |  | (853 | ) |  |  | (310 | )
Net deferred income tax assets |  | $ | 1,560 |  |  | $ | 1,840 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
Intangible assets |  | $ | (3,977 | ) |  | $ | (5,174 | )
Property, plant and equipment |  |  | (452 | ) |  |  | (557 | )
Other |  |  | (188 | ) |  |  | (472 | )
Total deferred income tax liabilities |  |  | (4,617 | ) |  |  | (6,203 | )
Net deferred income tax liabilities |  | $ | (3,057 | ) |  | $ | (4,363 | )
Changes in Unrecognized Tax Benefit | The changes in our unrecognized tax benefits were:
|  | For the Years Ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |
|  | (in millions) |
January 1 |  | $ | 610 |  |  | $ | 756 |  |  | $ | 852 |
Increases from positions taken during prior periods |  |  | 33 |  |  |  | 18 |  |  |  | 34 |
Decreases from positions taken during prior periods |  |  | (93 | ) |  |  | (123 | ) |  |  | (74 | )
Increases from positions taken during the current period |  |  | 64 |  |  |  | 90 |  |  |  | 84 |
Decreases relating to settlements with taxing authorities |  |  | (54 | ) |  |  | (75 | ) |  |  | (13 | )
Reductions resulting from the lapse of the applicable statute of limitations |  |  | (29 | ) |  |  | (43 | ) |  |  | (41 | )
Currency/other |  |  | 48 |  |  |  | (13 | ) |  |  | (86 | )
December 31 |  | $ | 579 |  |  | $ | 610 |  |  | $ | 756 |

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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum: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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum: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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration