Coca-Cola is preparing for a pivotal federal appeals court hearing in a long-running $20 billion IRS tax dispute over transfer pricing between the US parent and foreign subsidiaries. The case carries up to $20 billion in combined tax exposure across past and prospective years, and its outcome could influence how other multinationals handle profit allocation. The hearing crystallizes a long-running uncertainty around how Coca-Cola allocates profits, and a multibillion-dollar liability could pressure free cash flow that might otherwise support dividends, buybacks, or growth projects. Investors are watching whether any eventual liability would be a manageable balance-sheet item or a constraint on capital returns and reinvestment. The dispute also places Coca-Cola alongside peers such as PepsiCo and Nestlé in the broader discussion about transfer-pricing rules.
The Coca-Cola CompanyCoca-Cola faces a $20 billion IRS tax dispute over transfer pricing, with a pivotal appeals court hearing that could pressure free cash flow and constrain dividends, buybacks, or growth.
Coca-Cola Europacific Partners PLC
Nestle S.A.
PepsiCo Inc