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 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 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)
- ---------------------------------------------------------------------------------------------------------------------------------- Three Months Ended September 30, 2003 ------------------------------------------------------------------------------------------ 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) ----------------------------------------------------------------------------------------- NET OPERATING REVENUES $ 5,662 $ 5,662 Cost of goods sold 2,150 2,150 ----------------------------------------------------------------------------------------- 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) -- ----------------------------------------------------------------------------------------- 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) -- ----------------------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 1,498 43 (8) 107 1,640 Income Taxes 275 12 (3) 3 287 ----------------------------------------------------------------------------------------- NET INCOME $ 1,223 $ 31 (5) $ 104 $ 1,353 ========================================================================================= DILUTED NET INCOME PER SHARE $ 0.50 $ 0.01 $ -- $ 0.04 $ 0.55 ========================================================================================= 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% * -----------------------------------------------------------------------------------------
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. - ---------- *Effective tax rate calculated on full figures. [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 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 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)
- ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended September 30, 2002 ------------------------------------------------------------------------- Item Impacting After Results Considering Reported -------------------- Items (GAAP) Charge Primarily (Non-GAAP) Related to Investments Latin America ------------------------------------------------------- NET OPERATING REVENUES $ 5,322 $ 5,322 Cost of goods sold 2,083 2,083 ------------------------------------------------------- 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 -- -- ------------------------------------------------------- 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 -- -- ------------------------------------------------------- INCOME BEFORE INCOME TAXES 1,495 41 1,536 Income Taxes 404 10 414 ------------------------------------------------------- NET INCOME $ 1,091 31 $ 1,122 ======================================================= 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] - -------------------------------------------------------------------------------- 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. - -------------------------------------------------------------------------------- [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] - -------------------------------------------------------------------------------- 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 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 ------------------------------------------------------------------------------------- NET OPERATING REVENUES $ 15,851 $ 15,851 Cost of goods sold 5,865 $ 52 5,917 ------------------------------------------------------------------------------------- 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) -- ------------------------------------------------------------------------------------- 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) -- ------------------------------------------------------------------------------------ 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 ------------------------------------------------------------------------------------ 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 ------------------------------------------------------------------------------------ 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% -------------------------------------------------------------------------------------
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] - -------------------------------------------------------------------------------- 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 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 ------------------------------------------------------------------------ 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 -- -- ------------------------------------------------------------------------ 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 - ------------------------------------------------------------------------ NET INCOME $ 2,120 $ 926 $ (29) $ 176 $ 3,193 ======================================================================== 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. - --------- *Sum of items may 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 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.