Faster, stronger, better. Annual report 2019 creating more smiles with every sip

Balance,
Beginning
2018
Acquisitions/
(Divestitures)
Translation
and Other
Balance,
End of
2018
Acquisitions/
(Divestitures)
Translation
and Other
Balance,
End of
2019
FLNA
Goodwill
$
280 $
28 $
(11) $
297 $
(3) $
5
$
299
Brands
25
138
(2)
161
—
1
162
Total
305
166
(13)
458
(3)
6
461
QFNA
Goodwill
175
9
—
184
6
(1)
189
Brands
—
25
—
25
(14)
—
11
Total
175
34
—
209
(8)
(1)
200
PBNA 
(a)
Goodwill
9,854
—
(41)
9,813
66
19
9,898
Reacquired franchise rights
7,126
—
(68)
7,058
—
31
7,089
Acquired franchise rights
1,525
—
(15)
1,510
—
7
1,517
Brands
353
—
—
353
418
(8)
763
Total
18,858
—
(124)
18,734
484
49
19,267
LatAm
Goodwill
555
—
(46)
509
—
(8)
501
Brands
141
—
(14)
127
—
(2)
125
Total
696
—
(60)
636
—
(10)
626
Europe 
(b) (c)
Goodwill
3,202
526
(367)
3,361
440
160
3,961
Reacquired franchise rights
549
(1)
(51)
497
—
8
505
Acquired franchise rights
195
(25)
(9)
161
—
(4)
157
Brands
2,545
1,993
(350)
4,188
(139)
132
4,181
Total
6,491
2,493
(777)
8,207
301
296
8,804
AMESA
Goodwill
437
—
—
437
11
(2)
446
Total
437
—
—
437
11
(2)
446
APAC
Goodwill
241
—
(34)
207
—
—
207
Brands
111
—
(10)
101
—
(1)
100
Total
352
—
(44)
308
—
(1)
307
Total goodwill
14,744
563
(499)
14,808
520
173
15,501
Total reacquired franchise rights
7,675
(1)
(119)
7,555
—
39
7,594
Total acquired franchise rights
1,720
(25)
(24)
1,671
—
3
1,674
Total brands
3,175
2,156
(376)
4,955
265
122
5,342
Total
$
27,314 $
2,693 $
(1,018) $
28,989 $
785 $
337
$
30,111
(a) The change in acquisitions/(divestitures) in 2019 is primarily related to our acquisition of CytoSport Inc.
(b) The change in acquisitions/(divestitures) in 2019 and 2018 is primarily related to our acquisition of SodaStream. See Note 14 for further 
information. 
(c) The change in translation and other in 2019 primarily reflects the appreciation of the Russian ruble. The change in translation and other 
in 2018 primarily reflects the depreciation of the Russian ruble, euro and Pound sterling.

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93
Note 5 — Income Taxes
The components of income before income taxes are as follows:
2019
2018
2017
United States
$
4,123 $ 3,864 $ 3,452
Foreign
5,189
5,325
6,150
$
9,312 $ 9,189 $ 9,602
The provision for/(benefit from) income taxes consisted of the following:
2019
2018
2017
Current:
U.S. Federal
$
652 $
437 $
4,925
Foreign
807
378
724
State
196
63
136
1,655
878
5,785
Deferred:
U.S. Federal
325
140
(1,159)
Foreign
(31)
(4,379)
(9)
State
10
(9)
77
304
(4,248)
(1,091)
$
1,959 $ (3,370) $ 4,694
A reconciliation of the U.S. Federal statutory tax rate to our annual tax rate is as follows:
2019
2018
2017
U.S. Federal statutory tax rate
21.0%
21.0 %
35.0%
State income tax, net of U.S. Federal tax benefit
1.6
0.5
0.9
Lower taxes on foreign results
(0.9)
(2.2)
(9.4)
One-time mandatory transition tax - TCJ Act
(0.1)
0.1
41.4
Remeasurement of deferred taxes - TCJ Act
—
(0.4)
(15.9)
International reorganizations
—
(47.3)
—
Tax settlements
—
(7.8)
—
Other, net
(0.6)
(0.6)
(3.1)
Annual tax rate
21.0%
(36.7)%
48.9%
Tax Cuts and Jobs Act
During the fourth quarter of 2017, the TCJ Act was enacted in the United States. Among its many provisions, 
the TCJ Act imposed a mandatory one-time transition tax on undistributed international earnings and reduced 
the U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018. 
In 2017, the SEC issued guidance related to the TCJ Act which allowed recording of provisional tax expense 
using a measurement period, not to exceed one year, when information necessary to complete the accounting 
for the effects of the TCJ Act is not available. We elected to apply the measurement period provisions of this 
guidance to certain income tax effects of the TCJ Act when it became effective in the fourth quarter of 2017. 
As a result of the enactment of the TCJ Act, we recognized a provisional net tax expense of $2.5 billion
($1.70 per share) in the fourth quarter of 2017. Included in the provisional net tax expense of $2.5 billion
recognized in 2017, was a provisional mandatory one-time transition tax of approximately $4 billion on 
undistributed international earnings, included in other liabilities. This provisional mandatory one-time 
transition tax was partially offset by a provisional $1.5 billion benefit resulting from the required 

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94
remeasurement of our deferred tax assets and liabilities to the new, lower U.S. corporate income tax rate, 
effective January 1, 2018. The effect of the remeasurement was recorded in the fourth quarter of 2017, 
consistent with the enactment date of the TCJ Act, and reflected in our provision for income taxes. 
The provisional measurement period allowed by the SEC ended in the fourth quarter of 2018. As a result, in 
2018, we recognized a net tax benefit of $28 million ($0.02 per share) related to the TCJ Act, primarily 
reflecting the impact of the final analysis of certain foreign exchange gains or losses, substantiation of foreign 
tax credits, as well as cash and cash equivalents as of November 30, 2018, the tax year-end of our foreign 
subsidiaries, partially offset by additional transition tax guidance issued by the United States Department of 
Treasury, as well as the TCJ Act impact of both the conclusion of certain international tax audits and the 
resolution with the IRS of all open matters related to the audits of taxable years 2012 and 2013, each discussed 
below. 
While our accounting for the recorded impact of the TCJ Act was deemed to be complete, additional guidance 
issued by the IRS impacted, and may continue to impact, our recorded amounts after December 29, 2018. 
In 2019, we recognized a net tax benefit totaling $8 million ($0.01 per share) related to the TCJ Act, including 
the impact of additional guidance issued by the IRS in the first quarter of 2019 and adjustments related to 
the filing of our 2018 U.S. federal tax return. 
As of December 28, 2019, our mandatory transition tax liability was $3.3 billion, which must be paid through 
2026 under the provisions of the TCJ Act. We reduced our liability through cash payments and application 
of tax overpayments by $663 million in 2019 and $150 million in 2018. We currently expect to pay 
approximately $0.1 billion of this liability in 2020. 
The TCJ Act also created a requirement that certain income earned by foreign subsidiaries, known as global 
intangible low-tax income (GILTI), must be included in the gross income of their U.S. shareholder. The 
FASB allows an accounting policy election of either recognizing deferred taxes for temporary differences 
expected to reverse as GILTI in future years or recognizing such taxes as a current-period expense when 
incurred. During the first quarter of 2018, we elected to treat the tax effect of GILTI as a current-period 
expense when incurred.