EXHIBIT 99-2 [TABLE #1 - 1 OF 3 PAGES] - -------------------------------------------------------------------------------- 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 June 30, 2003, and June 30, 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 Second Quarter (UNAUDITED) (In Millions, except per share data and margins)
- ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended June 30, 2003 ------------------------------------------------------------------------- Items Impacting Results After ----------------- Considering Reported Charges Items (GAAP) Related to (Non-GAAP) Streamlining Initiatives ------------------------------------------------------- NET OPERATING REVENUES $ 5,691 $ 5,691 Cost of goods sold 2,113 2,113 ------------------------------------------------------- GROSS PROFIT 3,578 3,578 Selling, general and administrative expenses (includes $105 in 2003 and $92 in 2002 related to the impact of the adoption of the fair value method of accounting for stock-based compensation) 1,906 1,906 Other operating charges 70 $ (70) - ------------------------------------------------------- OPERATING INCOME 1,602 70 1,672 Interest income 45 45 Interest expense 43 43 Equity income 190 190 Other income (loss) - net (44) (44) ------------------------------------------------------- INCOME BEFORE INCOME TAXES 1,750 70 1,820 Income Taxes 388 27 415 ------------------------------------------------------- NET INCOME $ 1,362 $ 43 $ 1,405 ======================================================= DILUTED NET INCOME PER SHARE $ 0.55 $ 0.02 $ 0.57 ======================================================= AVERAGE SHARES OUTSTANDING - DILUTED 2,466 2,466 2,466 ======================================================= GROSS MARGIN 62.9% 62.9% OPERATING MARGIN 28.1% 29.4% EFFECTIVE TAX RATE 22.2% 22.8% -------------------------------------------------------
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. [TABLE #1 - 2 OF 3 PAGES] - -------------------------------------------------------------------------------- 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 June 30, 2003, and June 30, 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 2 OF 3 SETS OF COLUMNS] THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures Second Quarter (UNAUDITED) (In Millions, except per share data and margins)
- ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended June 30, 2002 ------------------------------------------------------------------------- After Considering Reported Items Impacting Items (GAAP) Results (Non-GAAP) ------------------------------------------------------- NET OPERATING REVENUES $ 5,368 $ 5,368 Cost of goods sold 1,927 1,927 ------------------------------------------------------- GROSS PROFIT 3,441 3,441 Selling, general and administrative expenses (includes $105 in 2003 and $92 in 2002 related to the impact of the adoption of the fair value method of accounting for stock-based compensation) 1,881 1,881 Other operating charges - - ------------------------------------------------------- OPERATING INCOME 1,560 1,560 Interest income 52 52 Interest expense 58 58 Equity income 176 176 Other income (loss) - net (55) (55) ------------------------------------------------------- INCOME BEFORE INCOME TAXES 1,675 1,675 Income Taxes 452 452 ------------------------------------------------------- NET INCOME $ 1,223 $ 1,223 ======================================================= DILUTED NET INCOME PER SHARE $ 0.49 $ 0.49 ======================================================= AVERAGE SHARES OUTSTANDING - DILUTED 2,487 2,487 ======================================================= GROSS MARGIN 64.1% 64.1% OPERATING MARGIN 29.1% 29.1% EFFECTIVE TAX RATE 27.0% 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. [TABLE #1 - 3 OF 3 PAGES] - -------------------------------------------------------------------------------- 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 June 30, 2003, and June 30, 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 3 OF 3 SETS OF COLUMNS] THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures Second Quarter (UNAUDITED) (In Millions, except per share data and margins)
- ------------------------------------------------------------------------------------------------------------------------------------ % Change - % Change - After Reported Considering (GAAP) Items (Non-GAAP) -------------------------------------------- NET OPERATING REVENUES 6% 6% Cost of goods sold 10% 10% GROSS PROFIT 4% 4% Selling, general and administrative expenses (includes $105 in 2003 and $92 in 2002 related to the impact of the adoption of the fair value method of accounting for stock-based compensation) 1% 1% Other operating charges -- -- OPERATING INCOME 3% 7% Interest income -13% -13% Interest expense -26% -26% Equity income 8% 8% Other income (loss) - net -- -- INCOME BEFORE INCOME TAXES 4% 9% Income Taxes -14% -8% NET INCOME 11% 15% DILUTED NET INCOME PER SHARE 12% 16% AVERAGE SHARES OUTSTANDING - DILUTED -1% -1%
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. [TABLE #2 - 1 OF 3 PAGES] - -------------------------------------------------------------------------------- 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 six months ended June 30, 2003, and June 30, 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 June Year-to-Date (UNAUDITED) (In Millions, except per share data and margins)
- ------------------------------------------------------------------------------------------------------------------------------------ Six Months Ended June 30, 2003 ------------------------------------------------------------------------- Items Impacting Results -------------------------- After Reported Charges Considering (GAAP) Related to Gain on Items Streamlining Vitamin (Non-GAAP) Initiatives Settlement ---------------------------------------------------------------- NET OPERATING REVENUES $ 10,189 $ 10,189 Cost of goods sold 3,715 $ 52 3,767 ---------------------------------------------------------------- GROSS PROFIT 6,474 (52) 6,422 Selling, general and administrative expenses (includes $219 in 2003 and $187 in 2002 related to the impact of the adoption of the fair value method of accounting for stock-based compensation) 3,567 3,567 Other operating charges 229 $ (229) - ---------------------------------------------------------------- OPERATING INCOME 2,678 229 (52) 2,855 Interest income 101 101 Interest expense 88 88 Equity income 239 239 Other income (loss) - net (57) (57) ---------------------------------------------------------------- INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 2,873 229 (52) 3,050 Income Taxes 676 83 (18) 741 ---------------------------------------------------------------- NET INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 2,197 146 (34) 2,309 Cumulative effect of accounting change, net of income taxes SFAS No. 142: Company Operations Equity Investees ---------------------------------------------------------------- NET INCOME $ 2,197 $ 146 $ (34) $ 2,309 ================================================================ DILUTED NET INCOME PER SHARE BEFORE CUMULATIVE EFFECT $ 0.89 $ 0.06 $ (0.01) $ 0.94 ================================================================ DILUTED NET INCOME PER SHARE $ 0.89 $ 0.06 $ (0.01) $ 0.94 ================================================================ AVERAGE SHARES OUTSTANDING - DILUTED 2,469 2,469 2,469 2,469 ================================================================ GROSS MARGIN 63.5% 63.0% OPERATING MARGIN 26.3% 28.0% EFFECTIVE TAX RATE 23.5% 24.3% --------------------------------------------------------------------
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. - --------- *Sum of items does not foot across due to rounding. [TABLE #2 - 2 OF 3 PAGES] - -------------------------------------------------------------------------------- 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 six months ended June 30, 2003, and June 30, 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 2 OF 3 SETS OF COLUMNS] THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures June Year-to-Date (UNAUDITED) (In Millions, except per share data and margins)
- ----------------------------------------------------------------------------------------------------------------------------------- Six Months Ended June 30, 2002 ------------------------------------------------------------------------ Items Impacting Results ------------------------------------------- After Reported Charge Primarily Considering (GAAP) SFAS 142 Related to Items Accounting Gain on Sale Investments Latin (Non-GAAP) Change of Kaiser America ------------------------------------------------------------------------ NET OPERATING REVENUES $ 9,447 $ 9,447 Cost of goods sold 3,321 3,321 ------------------------------------------------------------------------ GROSS PROFIT 6,126 6,126 Selling, general and administrative expenses (includes $219 in 2003 and $187 in 2002 related to the impact of the adoption of the fair value method of accounting for stock-based compensation) 3,408 3,408 Other operating charges - - ------------------------------------------------------------------------ OPERATING INCOME 2,718 2,718 Interest income 110 110 Interest expense 104 104 Equity income 237 $ (28) 209 Other income (loss) - net (230) (23) $ 157 (96) ------------------------------------------------------------------------ INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 2,731 (51) 157 2,837 Income Taxes 776 (17) 7 766 ------------------------------------------------------------------------ NET INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 1,955 (34) 150 2,071 Cumulative effect of accounting change, net of income taxes SFAS No. 142: Company Operations (367) $ 367 - Equity Investees (559) 559 - ------------------------------------------------------------------------ NET INCOME $ 1,029 $ 926 $ (34) $ 150 $ 2,071 ======================================================================== DILUTED NET INCOME PER SHARE BEFORE CUMULATIVE EFFECT $ 0.79 $ - $ (0.01) $ 0.06 $ 0.83* ======================================================================== DILUTED NET INCOME PER SHARE $ 0.41 $ 0.37 $ (0.01) $ 0.06 $ 0.83 ======================================================================== AVERAGE SHARES OUTSTANDING - DILUTED 2,486 2,486 2,486 2,486 2,486 ======================================================================== GROSS MARGIN 64.8% 64.8% OPERATING MARGIN 28.8% 28.8% EFFECTIVE TAX RATE 28.4% 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. - --------- *Sum of items does not foot across due to rounding. [TABLE #2 - 3 OF 3 PAGES - -------------------------------------------------------------------------------- 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 June 30, 2003, and June 30, 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 3 OF 3 SETS OF COLUMNS] THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures June Year-to-Date (UNAUDITED) (In Millions, except per share data and margins)
- --------------------------------------------------------------------------------------------------- % Change - % Change - After Reported Considering (GAAP) Items (Non-GAAP) ---------------------------------------- NET OPERATING REVENUES 8% 8% Cost of goods sold 12% 13% GROSS PROFIT 6% 5% Selling, general and administrative expenses (includes $219 in 2003 and $187 in 2002 related to the impact of the adoption of the fair value method of accounting for stock-based compensation) 5% 5% Other operating charges -- -- OPERATING INCOME -1% 5% Interest income -8% -8% Interest expense -15% -15% Equity income 1% 14% Other income (loss) - net -- -- INCOME BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE 5% 8% Income Taxes -13% -3% NET INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 12% 11% Cumulative effect of accounting change, net of income taxes SFAS No. 142: Company Operations -- -- Equity Investees -- -- NET INCOME 114% 11% DILUTED NET INCOME PER SHARE BEFORE CUMULATIVE EFFECT 13% 13% DILUTED NET INCOME PER SHARE 117% 13% AVERAGE SHARES OUTSTANDING - DILUTED -1% -1%
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. - --------- *Sum of items does not foot across due to rounding. [TABLE 3 - 1 OF 1 PAGE - -------------------------------------------------------------------------------- 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 second quarter and June year to date for 2002 and 2003. 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. - -------------------------------------------------------------------------------- THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP to Non-GAAP Financial Measures Second Quarter and June Year-to-Date (UNAUDITED) Operating Income (In Millions)
Three Months Ended June 30 Six Months Ended June 30 ---------------------------------------------------------------------- 2003 2002 % Change 2003 2002 % Change ---------------------------------------------------------------------- REPORTED OPERATING INCOME (GAAP) 1,602 1,560 3% 2,678 2,718 -1% Gain on Vitamin Settlement (52) Charges Related to Streamlining Initiatives 70 229 Increased Stock-Based Compensation Expense (2003 vs. 2002) 13 32 ---------------------------------------------------------------------- Operating Income After Considering Items Impacting Comparability 1,685 1,560 8% 2,887 2,718 6% ======================================================================
NOTE: Items to consider for comparability include primarily charges, gains, and accounting changes. Charges and accounting gains negatively impacting operating income are reflected as add-backs to reported operating income. Gains and accounting changes positively impacting operating income are reflected as deductions to reported operating income. June Year-to-Date (UNAUDITED) Cash From Operations (In Millions)
---------------------------------- Six Months Ended June 30 ---------------------------------- 2003 2002 % Change ---------------------------------- REPORTED NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) 2,130 2,156 -1% Collection of Tax Receivable in Connection with an Advance Pricing Agreement Reached Between the United States and Japan (279) ---------------------------------- NET CASH PROVIDED BY OPERATING ACTIVITIES EXCLUDING JAPAN TAX SETTLEMENT 2,130 1,877 13% ==================================
NOTE: Items to consider for comparability include the collection of the tax receivable in connection with an Advance Pricing Agreement reached between the United States and Japan.