Form: 8-K

Current report filing

April 21, 2004

Documents

RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIALS

Published on April 21, 2004


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, ratios, and trends 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,
2004, and March 31, 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.





[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, 2004
--------------------------------------------------------
After
Considering
Reported Items Impacting Items
(GAAP) Results (Non-GAAP)
---------------------------------------------------------

NET OPERATING REVENUES $ 5,078 $ - $ 5,078

Cost of goods sold 1,753 - 1,753
---------------------------------------------------------
GROSS PROFIT 3,325 - 3,325

Selling, general and administrative expenses 1,874 - 1,874

Other operating charges - - -
---------------------------------------------------------
OPERATING INCOME 1,451 - 1,451

Interest income 35 - 35

Interest expense 44 - 44

Equity income 95 - 95

Other income (loss) - net (25) - (25)
----------------------------------------------------------

INCOME BEFORE INCOME TAXES 1,512 - 1,512

Income taxes 385 - 385
----------------------------------------------------------

NET INCOME $ 1,127 $ - $ 1,127
==========================================================

DILUTED NET INCOME PER SHARE $ 0.46 $ 0.46
==========================================================

AVERAGE SHARES OUTSTANDING - DILUTED 2,444 2,444
==========================================================

GROSS MARGIN 65.5% 65.5%
OPERATING MARGIN 28.6% 28.6%
EFFECTIVE TAX RATE 25.5% 25.5%
----------------------------------------------------------


Note: Items to consider for comparability include primarily charges, gains, and
accounting changes. Charges and accounting changes negatively impacting net
income are reflected as increases to reported net income. Gains 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, 2003
-------------------------------------------------------------------------
Items Impacting Results After
----------------------------------- Considering
Reported Charges Items
(GAAP) Related to Gain on (Non-GAAP)
Streamlining Vitamin
Initiatives Settlement
-------------------------------------------------------------------------

NET OPERATING REVENUES $ 4,502 $ 4,502

Cost of goods sold 1,617 $ 52 1,669
-------------------------------------------------------------------------
GROSS PROFIT 2,885 (52) 2,833

Selling, general and administrative expenses 1,650 1,650

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 1,123 159 (52) 1,230

Income taxes 288 56 (18) 326
-------------------------------------------------------------------------

NET INCOME $ 835 $ 103 $ (34) $ 904
=========================================================================

DILUTED NET INCOME PER SHARE $ 0.34 $ 0.04 $ (0.01) $ 0.37
=========================================================================

AVERAGE SHARES OUTSTANDING - DILUTED 2,472 2,472 2,472 2,472
=========================================================================

GROSS MARGIN 64.1% 62.9%
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 changes negatively impacting net
income are reflected as increases to reported net income. Gains 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 13 13

Cost of goods sold 8 5

GROSS PROFIT 15 17

Selling, general and administrative expenses 14 14

Other operating charges -- --

OPERATING INCOME 35 23

Interest income (38) (38)

Interest expense (2) (2)

Equity income 94 94

Other income (loss) - net -- --

INCOME BEFORE INCOME TAXES 35 23

Income Taxes 34 18

NET INCOME 35 25

DILUTED NET INCOME PER SHARE 35 24


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 changes negatively impacting net
income are reflected as increases to reported net income. Gains positively
impacting net income are reflected as deductions to reported netincome.






================================================================================
The Company reports its financial results in accordance with generally accepted
accounting principles (GAAP). However, management believes that certain
non-GAAP performance measures, ratios and trends used in managing the business,
may provide users of this financial information additional meaningful
comparisons between current results and results in prior operating periods.
Management believes that these non-GAAP measures can provide additional
meaningful reflection of underlying trends of the business. See the tables below
for supplemental financial data and corresponding reconciliations to GAAP
financial measures for the three months ended March 31, 2004 and March 31,
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
RECONCILIATION OF GROSS PROFIT EXCLUDING VITAMIN SETTLEMENT AND CURRENCY IMPACT
(In millions)

Q1 2004 Q1 2003 % Change
-------- --------- --------
Reported gross profit $ 3,325 $ 2,885 15
Gain on vitamin settlement (52)
--------- ------- ------
Gross profit excluding vitamin settlement $ 3,325 $ 2,833 17
========= =======

Positive currency impact (9)
------
Gross profit excluding vitamin settlement
and currency impact 9*
======
* Percent change amounts do not add due to rounding


RECONCILIATION OF OPERATING INCOME EXCLUDING VITAMIN SETTLEMENT, STREAMLINING
INITIATIVES, AND CURRENCY IMPACT (In millions)

Q1 2004 Q1 2003 % Change
-------- -------- --------

Reported operating income $ 1,451 $ $1,076 35
Gain on vitamin settlement (52)
Charges related to streamlining
initiatives 159
-------- -------- --------
Operating income excluding vitamin
settlement and streamlining initiatives $ 1,451 $ 1,183 23
======== ========


Positive currency impact (12)
------
Operating income excluding vitamin
settlement, streamlining initiatives,
and currency impact 11
======