Who/what made the determination that Coca-Cola inappropriately located too much of its profits outside of the
United States?
Based on the discussion in the article, summarize your understanding of the Coca-Cola operating structure.
Do you think the Coca-Cola subsidiary locations are solely driven by the level of taxation in their location?
Explain.
What factors formed the basis for the ruling that Coca-Cola improperly shifted profits away from the U.S. to
foreign locations with lower tax rates?
How should intercompany transactions be priced?
Does intercompany pricing impact overall operating results as shown in Coca-Cola’s consolidated financial
statements? Explain your answer, specifically addressing Coca-Cola’s warning to investors that the results of
this case could have a material adverse impact.
Explain your understanding of how pricing of intercompany sales determines profitability reported in separate
legal entities that form a consolidated group.
