Coca-Cola, IRS Clash in Appeals Court Over $20 Billion Tax Bill
KO sits 23% above its 52-week low of $65.354 on light trading volume (0.4× avg).
Summary
Coca-Cola is currently clashing with the IRS in a federal appeals court over a tax assessment that could exceed $20 billion. This follows recent news that the company was preparing to challenge the assessment. While the Q1 10-Q mentioned a $14 billion IRS dispute with a positive legal development, this $20 billion figure covers tax years from 2007 through 2009 and all subsequent years. A potential liability of this magnitude is highly material for Coca-Cola, representing nearly 6% of its market capitalization. The appeals court decision could take several months.
At the time of this announcement, KO was trading at $80.29 on NYSE in the Trade & Services sector, with a market capitalization of approximately $345.4B. The 52-week trading range was $65.35 to $84.04. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.