EXHIBIT 99-2
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES
The Company reports its financial results in accordance with generally
accepted accounting principles (GAAP). However, management believes that certain
non-GAAP performance measures and ratios, used in managing the business, may
provide users of this financial information additional meaningful comparisons
between current results and results in prior operating periods. See the Table
below for supplemental financial data and corresponding reconciliations to GAAP
financial measures for the three months ended March 31, 2003, and March 31,
2002. Non-GAAP financial measures should be viewed in addition to, and not as an
alternative for, the Company's reported results prepared in accordance with
GAAP.
[THIS TABLE CONSISTS OF 3 SETS OF COLUMNS.
THE FOLLOWING IS SET 1 OF 3 SETS OF COLUMNS]
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
First Quarter
(UNAUDITED)
(In Millions, except per share data and margins)
- ------------------------------------------------------------------------------------------------------------------------------------
Three Months Ended March 31, 2003
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Items to Consider for Comparability After
----------------------------------- Considering
Reported Charges Items
(GAAP) Related to Gain on (Non-GAAP)
Streamlining Vitamin
Initiatives Settlement
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NET OPERATING REVENUES $ 4,498 $ 4,498
Cost of goods sold 1,602 $ 52 1,654
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GROSS PROFIT 2,896 (52) 2,844
Selling, general and administrative expenses
(includes $114 in 2003 and $95 in 2002 related
to the impact of the adoption of the fair value method
of accounting for stock-based compensation) 1,661 1,661
Other operating charges 159 $ (159) -
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OPERATING INCOME 1,076 159 (52) 1,183
Interest income 56 56
Interest expense 45 45
Equity income 49 49
Other income (loss) - net (13) (13)
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INCOME BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 1,123 159 (52) 1,230
Income Taxes 288 56 (18) 326
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NET INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 835 103 (34) 904
Cumulative effect of accounting change, net of
Income Taxes
SFAS No. 142: Company Operations
Equity Investees
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NET INCOME (LOSS) $ 835 $ 103 $ (34) $ 904
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DILUTED NET INCOME PER SHARE BEFORE
CUMULATIVE EFFECT $ 0.34 $ 0.04 $ (0.01) $ 0.37
=========================================================================
DILUTED NET INCOME (LOSS) PER SHARE* $ 0.34 $ 0.04 $ (0.01) $ 0.37
=========================================================================
AVERAGE SHARES OUTSTANDING - DILUTED* 2,472 2,472 2,472 2,472
=========================================================================
GROSS MARGIN 64.4% 63.2%
OPERATING MARGIN 23.9% 26.3%
EFFECTIVE TAX RATE 25.6% 26.5%
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Note: Items to consider for comparability include primarily charges, gains, and
accounting changes. Charges and accounting gains negatively impacting net income
are reflected as add-backs to reported net income. Gains and accounting changes
positively impacting net income are reflected as deductions to reported net
income.
[THIS TABLE CONSISTS OF 3 SETS OF COLUMNS.
THE FOLLOWING IS SET 2 OF 3 SETS OF COLUMNS]
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
First Quarter
(UNAUDITED)
(In Millions, except per share data and margins)
- ------------------------------------------------------------------------------------------------------------------------------------
Three Months Ended March 31, 2002
-------------------------------------------------------------------------
Items to Consider for Comparability After
--------------------------------------------- Considering
Reported Charge Primarily Items
(GAAP) SFAS 142 Related to (Non-GAAP)
Accounting Gain on Sale Investments Latin
Change of Kaiser America
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NET OPERATING REVENUES $ 4,079 $ 4,079
Cost of goods sold 1,394 1,394
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GROSS PROFIT 2,685 2,685
Selling, general and administrative expenses
(includes $114 in 2003 and $95 in 2002 related
to the impact of the adoption of the fair value method
of accounting for stock-based compensation) 1,527 1,527
Other operating charges - -
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OPERATING INCOME 1,158 1,158
Interest income 58 58
Interest expense 46 46
Equity income 61 $ (28) 33
Other income (loss) - net (175) (23) $ 157 (41)
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INCOME BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 1,056 (51) 157 1,162
Income Taxes 324 (17) 7 314
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NET INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 732 (34) 150 848
Cumulative effect of accounting change, net of
Income Taxes
SFAS No. 142: Company Operations (367) $ 367 -
Equity Investees (559) 559 -
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NET INCOME (LOSS) $ (194) $ 926 $ (34) $ 150 $ 848
=========================================================================
DILUTED NET INCOME PER SHARE BEFORE
CUMULATIVE EFFECT $ 0.29 $ - $ (0.01) $ 0.06 $ 0.34
=========================================================================
DILUTED NET INCOME (LOSS) PER SHARE* $ (0.08) $ 0.37 $ (0.01) $ 0.06 $ 0.34
=========================================================================
AVERAGE SHARES OUTSTANDING - DILUTED* 2,486 2,486 2,486 2,486 2,486
=========================================================================
GROSS MARGIN 65.8% 65.8%
OPERATING MARGIN 28.4% 28.4%
EFFECTIVE TAX RATE 30.7% 27.0%
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Note: Items to consider for comparability include primarily charges, gains, and
accounting changes. Charges and accounting gains negatively impacting net income
are reflected as add-backs to reported net income. Gains and accounting changes
positively impacting net income are reflected as deductions to reported net
income.
[THIS TABLE CONSISTS OF 3 SETS OF COLUMNS.
THE FOLLOWING IS SET 3 OF 3 SETS OF COLUMNS]
THE COCA-COLA COMPANY AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
First Quarter
(UNAUDITED)
(In Millions, except per share data and margins)
- ---------------------------------------------------------------------------------------------------------------
% Change -
% Change - After
Reported Considering
(GAAP) Items (Non-GAAP)
--------------------------------------------
NET OPERATING REVENUES 10% 10%
Cost of goods sold 15% 19%
--------------------------------------------
GROSS PROFIT 8% 6%
Selling, general and administrative expenses
(includes $114 in 2003 and $95 in 2002 related
to the impact of the adoption of the fair value method
of accounting for stock-based compensation) 9% 9%
Other operating charges -- --
--------------------------------------------
OPERATING INCOME -7% 2%
Interest income -3% -3%
Interest expense -2% -2%
Equity income -20% 48%
Other income (loss) - net -- --
--------------------------------------------
INCOME BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 6% 6%
Income Taxes -11% 4%
--------------------------------------------
NET INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 14% 7%
Cumulative effect of accounting change, net of
Income Taxes
SFAS No. 142: Company Operations -- --
Equity Investees -- --
NET INCOME (LOSS) -- 7%
============================================
DILUTED NET INCOME PER SHARE BEFORE
CUMULATIVE EFFECT 17% 9%
============================================
DILUTED NET INCOME (LOSS) PER SHARE* -- 9%
============================================
AVERAGE SHARES OUTSTANDING - DILUTED* -1% -1%
============================================
GROSS MARGIN
OPERATING MARGIN
EFFECTIVE TAX RATE
--------------------------------------------
Note: Items to consider for comparability include primarily charges, gains, and
accounting changes. Charges and accounting gains negatively impacting net income
are reflected as add-backs to reported net income. Gains and accounting changes
positively impacting net income are reflected as deductions to reported net
income.