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 ------------------------------------------------------------------------- Items to Consider for Comparability After ----------------------------------- Considering Reported Charges Items (GAAP) Related to Gain on (Non-GAAP) Streamlining Vitamin Initiatives Settlement ------------------------------------------------------------------------- NET OPERATING REVENUES $ 4,498 $ 4,498 Cost of goods sold 1,602 $ 52 1,654 ------------------------------------------------------------------------- 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) - ------------------------------------------------------------------------- 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) ------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 1,123 159 (52) 1,230 Income Taxes 288 56 (18) 326 ------------------------------------------------------------------------- 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 ------------------------------------------------------------------------- NET INCOME (LOSS) $ 835 $ 103 $ (34) $ 904 ========================================================================= 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% -------------------------------------------------------------------------
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 ------------------------------------------------------------------------- NET OPERATING REVENUES $ 4,079 $ 4,079 Cost of goods sold 1,394 1,394 ------------------------------------------------------------------------- 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 - - ------------------------------------------------------------------------- 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) ------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 1,056 (51) 157 1,162 Income Taxes 324 (17) 7 314 ------------------------------------------------------------------------- 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 - ------------------------------------------------------------------------- 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% -------------------------------------------------------------------------
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.