Below are excerpts from the effective tax rate reconciliation disclosures by two companies:
Heineken N.V., a Dutch brewer, and Colgate Palmolive, a US consumer products company. Use the disclosures to answer the following questions:
1. Which company’s home country has a lower statutory tax rate?
2. What was the impact of multinational operations on each company’s 2011 effective tax rate?
3. Changes in the tax rate impact of multinational operations can often be explained by changes of profit mix between countries with higher or lower marginal tax rates. What do Heineken’s disclosures suggest about the geographic mix of its 2011 profit?

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Heineken N.V. Annual Report 2011 Notes to the consolidated financial statem 13. Income tax expense (excerpt) tements Reconciliation of the effective tax rate In millions of EUR Profit before income tax Share of net profit of associates and joint ventures and impairments thereof Profit before income tax excluding share of profit of associates and joint ventures (inclusive impairments thereof) 2011 2,025 (240) 1,785 2010 1,982 (193) 1,789