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

2019
2018
Balance, beginning of year
$
1,440 $
2,212
Additions for tax positions related to the current year
179
142
Additions for tax positions from prior years
93
197
Reductions for tax positions from prior years
(201)
(822)
Settlement payments
(74)
(233)
Statutes of limitations expiration
(47)
(42)
Translation and other
5
(14)
Balance, end of year
$
1,395 $
1,440
Carryforwards and Allowances
Operating loss carryforwards totaling $24.7 billion at year-end 2019 are being carried forward in a number 
of foreign and state jurisdictions where we are permitted to use tax operating losses from prior periods to 
reduce future taxable income. These operating losses will expire as follows: $0.2 billion in 2020, $20.3 billion
between 2021 and 2039 and $4.2 billion may be carried forward indefinitely. We establish valuation 
allowances for our deferred tax assets if, based on the available evidence, it is more likely than not that some 
portion or all of the deferred tax assets will not be realized.
Undistributed International Earnings
In 2018, we repatriated $20.4 billion of cash, cash equivalents and short-term investments held in our foreign 
subsidiaries without such funds being subject to further U.S. federal income tax liability, related to the TCJ 
Act. As of December 28, 2019, we had approximately $6 billion of undistributed international earnings. We 
intend to continue to reinvest $6 billion of earnings outside the United States for the foreseeable future and 
while future distribution of these earnings would not be subject to U.S. federal tax expense, no deferred tax 
liabilities with respect to items such as certain foreign exchange gains or losses, foreign withholding taxes 
or state taxes have been recognized. It is not practicable for us to determine the amount of unrecognized tax 
expense on these reinvested international earnings.

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