EXHIBIT 99-2
[TABLE #1 - 1 OF 3 PAGES]
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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 September 30, 2003, and September 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.
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[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
Third Quarter
(UNAUDITED)
(In Millions, except per share data and margins)
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Three Months Ended September 30, 2003
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Items Impacting Results
------------------------------------------------------------------------
Gains on Charges
Reported Charges Issuances of Related to After
(GAAP) Related to Stock by the Write Down Considering
Streamlining Equity of Assets in Items
Initiatives Investees Latin America (Non-GAAP)
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NET OPERATING REVENUES $ 5,662 $ 5,662
Cost of goods sold 2,150 2,150
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GROSS PROFIT $ 3,512 3,512
Selling, general and administrative
expenses (includes $104 in 2003 and
$95 in 2002 related to the impact
of the adoption of the fair value
method of accounting for
stock-based compensation) 2,006 2,006
Other operating charges 55 $ (43) $ (12) --
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OPERATING INCOME 1,451 43 12 1,506
Interest income 37 37
Interest expense 42 42
Equity income 86 95 181
Other income (loss) - net (42) (42)
Gains on issuances of stock by equity
investees 8 $ (8) --
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INCOME BEFORE INCOME TAXES 1,498 43 (8) 107 1,640
Income Taxes 275 12 (3) 3 287
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NET INCOME $ 1,223 $ 31 (5) $ 104 $ 1,353
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DILUTED NET INCOME PER SHARE $ 0.50 $ 0.01 $ -- $ 0.04 $ 0.55
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AVERAGE SHARES OUTSTANDING - DILUTED 2,458 2,458 2,458 2,458 2.458
=========================================================================================
GROSS MARGIN 62.0% 62.0%
OPERATING MARGIN 25.6% 26.6%
EFFECTIVE TAX RATE 18.4% 17.6% *
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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.
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*Effective tax rate calculated on full figures.
[TABLE #1 - 2 OF 3 PAGES]
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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 September 30, 2003, and September 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.
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[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
Third Quarter
(UNAUDITED)
(In Millions, except per share data and margins)
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Three Months Ended September 30, 2002
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Item Impacting After
Results Considering
Reported -------------------- Items
(GAAP) Charge Primarily (Non-GAAP)
Related to
Investments Latin
America
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NET OPERATING REVENUES $ 5,322 $ 5,322
Cost of goods sold 2,083 2,083
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GROSS PROFIT 3,239 3,239
Selling, general and administrative
expenses (includes $104 in 2003 and
$95 in 2002 related to the impact
of the adoption of the fair value method
of accounting for stock-based compensation) 1,789 1,789
Other operating charges -- --
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OPERATING INCOME 1,450 1,450
Interest income 46 46
Interest expense 52 52
Equity income 113 $ 40 153
Other income (loss) - net (62) 1 (61)
Gains on issuances of stock by equity investees -- --
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INCOME BEFORE INCOME TAXES 1,495 41 1,536
Income Taxes 404 10 414
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NET INCOME $ 1,091 31 $ 1,122
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DILUTED NET INCOME PER SHARE $ 0.44 .01 $ 0.45
=======================================================
AVERAGE SHARES OUTSTANDING - DILUTED 2,483 2,483 2,483
=======================================================
GROSS MARGIN 60.9% 60.9%
OPERATING MARGIN 27.2% 27.2%
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]
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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 September 30, 2003, and September 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.
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[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
Third 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 3% 3%
GROSS PROFIT 8% 8%
Selling, general and administrative expenses
(includes $104 in 2003 and $95 in 2002 related
to the impact of the adoption of the fair value
method of accounting for stock-based compensation) 12% 12%
Other operating charges -- --
OPERATING INCOME 0% 4%
Interest income -20% -20%
Interest expense -19% -19%
Equity income -24% 18%
Other income (loss) - net -- --
Gains on issuances of stock by equity investees -- --
INCOME BEFORE INCOME TAXES 0% 7%
Income Taxes -32 -31%
NET INCOME 12% 21%
DILUTED NET INCOME PER SHARE 14% 22%
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]
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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 nine months ended September 30, 2003, and September 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.
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[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
September Year-to-Date
(UNAUDITED)
(In Millions, except per share data and margins)
- -----------------------------------------------------------------------------------------------------------------------------------
Nine Months Ended September 30, 2003
---------------------------------------------------------------------------
Items Impacting Results
--------------------------------------------------------------------------------------
After
Reported Charges Gains on Charges Related to Considering
(GAAP) Related to Gain on Issuances of the Write Down of Items
Streamlining Vitamin Stock by Assets in Latin (Non-GAAP)
Initiatives Settlement Equity Investees America
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NET OPERATING REVENUES $ 15,851 $ 15,851
Cost of goods sold 5,865 $ 52 5,917
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GROSS PROFIT 9,986 (52) 9,934
Selling, general and administrative
expenses (includes $323 in 2003 and
$282 in 2002 related to the impact
of the adoption of the fair value method
of accounting for stock-based compensation) 5,573 5,573
Other operating charges 284 $ (272) $ (12) --
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OPERATING INCOME 4,129 272 (52) 12 4.361
Interest income 138 138
Interest expense 130 130
Equity income 325 95 420
Other income (loss) - net (99) (99)
Gains on issuances of stock by equity
investee 8 $ (8) --
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INCOME BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 4,371 272 (52) (8) 107 4,690
Income Taxes 951 95 (18) (3) 3 1,028
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NET INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 3,420 177 (34) (5) 104 3,662
Cumulative effect of accounting change, net of
income taxes
SFAS No. 142: Company Operations
Equity Investees
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NET INCOME $ 3,420 $ 177 $ (34) $ (5) $ 104 $ 3,662
====================================================================================
DILUTED NET INCOME PER SHARE BEFORE
CUMULATIVE EFFECT $ 1.39 $ 0.07 $(0.01) $ -- $ 0.04 $ 1.49
=====================================================================================
DILUTED NET INCOME PER SHARE $ 1.39 $ 0.07 $(0.01) $ -- $ 0.04 $ 1.49
=====================================================================================
AVERAGE SHARES OUTSTANDING - DILUTED 2,465 2,465 2,465 2,465 2,465 2,465
=====================================================================================
GROSS MARGIN 63.0% 62.7%
OPERATING MARGIN 26.0% 27.5%
EFFECTIVE TAX RATE 21.8% 21.9%
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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.
[TABLE #2 - 2 OF 3 PAGES]
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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 nine months ended September 30, 2003, and September 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.
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[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
September Year-to-Date
(UNAUDITED)
(In Millions, except per share data and margins)
- -----------------------------------------------------------------------------------------------------------------------------------
Nine Months Ended September 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 $ 14,769 $ 14,769
Cost of goods sold 5,404 5,404
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GROSS PROFIT 9,365 9,365
elling, general and administrative
expenses (includes $323 in 2003 and
$282 in 2002 related to the impact
of the adoption of the fair value method
of accounting for stock-based compensation) 5,197 5,197
Other operating charges -- --
------------------------------------------------------------------------
OPERATING INCOME 4,168 4,168
Interest income 156 156
Interest expense 156 156
Equity income 350 $ (21) $ 33 362
Other income (loss) - net (292) (22) $ 157 (157)
Gains on issuances ofstock by equity investees -- --
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INCOME BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 4,226 (43) 190 4,373
Income Taxes 1,180 (14) 14 1,180
------------------------------------------------------------------------
NET INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 3,046 (29) 176 3,193
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 $ 2,120 $ 926 $ (29) $ 176 $ 3,193
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DILUTED NET INCOME PER SHARE BEFORE
CUMULATIVE EFFECT $ 1.23 $ - $ (0.01) $ 0.07 $ 1.28*
========================================================================
DILUTED NET INCOME PER SHARE $ 0.85 $ 0.37 $ (0.01) $ 0.07 $ 1.28
========================================================================
AVERAGE SHARES OUTSTANDING - DILUTED 2,485 2,485 2,485 2,485 2,485
========================================================================
GROSS MARGIN 63.4% 63.4%
OPERATING MARGIN 28.2% 28.2%
EFFECTIVE TAX RATE 27.9% 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.
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*Sum of items may not foot across due to rounding.
[TABLE #2 - 3 OF 3 PAGES
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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 nine months ended September 30, 2003, and September 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
September Year-to-Date
(UNAUDITED)
(In Millions, except per share data and margins)
- ---------------------------------------------------------------------------------------------------
% Change -
% Change - After
Reported Considering
(GAAP) Items
(Non-GAAP)
----------------------------------------
NET OPERATING REVENUES 7% 7%
Cost of goods sold 9% 9%
GROSS PROFIT 7% 6%
Selling, general and administrative expenses
(includes $323 in 2003 and $282 in 2002 related
to the impact of the adoption of the fair value method
of accounting for stock-based compensation) 7% 7%
Other operating charges -- --
OPERATING INCOME -1% 5%
Interest income -12% -12%
Interest expense -17% -17%
Equity income -7% 16%
Other income (loss) - net -- --
Gains on issuances of tock by equity investees -- --
INCOME BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 3% 7%
Income Taxes -19% -13%
NET INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 12% 15%
Cumulative effect of accounting change, net of
income taxes
SFAS No. 142: Company Operations -- --
Equity Investees -- --
NET INCOME 61% 15%
DILUTED NET INCOME PER SHARE BEFORE
CUMULATIVE EFFECT 13% 16%
DILUTED NET INCOME PER SHARE 64% 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.