SUPPLEMENTAL INFORMATION I/C/W INVESTOR CONFERENCE AND WEBCAST
Published on November 12, 2004
EXHIBIT 99.2
- -------------------------------------------------------------------------------
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 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 year 1998 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
RECONCILIATION OF OPERATING INCOME ADJUSTED FOR CURRENCY AND ITEMS IMPACTING
RESULTS
(In millions)
*Compounded Annual Growth Rate
**Includes Corporate
- --------------------------------------------------------------------------------
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 more meaningful
reflection of underlying trends of the business because it provides a comparison
of historical information that excludes certain items that impact the overall
comparability due to the fact that these items do not represent results from the
fundamental operations of the Company. Further, the timeframe used is to provide
historical perspective to investors. See the Table below for supplemental
financial data and corresponding reconciliations to GAAP financial measures for
the fourteen year period from 1990 to 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 ONGOING DILUTED EARNINGS PER SHARE
* Per share amounts may not add due to rounding.
** Compounded Annual Growth Rate
1990
- ----
Gain
- ----
Gain on our investment in BCI Securities L.P. - $0.01 per share.
Charge
- ------
Charges related to United States soft drink business - $0.01 per share.
1991
- ----
Gains
- -----
Gain on sale of property in Japan - $0.01 per share.
Charges
- -------
Share of restructuring charges recorded by Coca-Cola Enterprises Inc. (CCE)
- $0.01 per share.
1992
- ----
Accounting Change
- -----------------
Transition charge related to the change in accounting for postemployment
benefits - $0.09 per share.
1993
- ----
Gains
- -----
Change in US tax law which reduced full year income - $0.02 per share.
Gain from the sale of citrus groves in the United States - $0.01 per share.
Gain from the sale of real estate in Japan - $0.01 per share.
Charges
- -------
Provisions to increase efficiencies in the United States, Greater Europe, and
Corporate - $0.01 per share.
Share of restructuring charges recorded by Coca-Cola Beverages Ltd. - $0.01 per
share.
1995
- ----
Gain
- ----
Noncash gain on the issuance of stock by Coca-Cola Amatil Limited (CCA)
- $0.02 per share.
Charge
- ------
Provisions related to increase efficiencies in the North America and Greater
Europe - $0.02 per share.
1996
- ----
Gains
- -----
Noncash gain from a tax settlement with the IRS - $0.13 per share.
Noncash gain on the issuance of stock by Coca-Cola Erfrischungsgetraenke AG
(CCEAG) - $0.04 per share.
Noncash gain on the issuance of stock by CCA - $0.03 per share.
Charges
- -------
Curtailment of concentrate shipments - approximately $0.08 per share.
Provisions related to management's strategic plans to strengthen our worldwide
system - $0.07 per share.
Charge for our decision to contribute to the corpus of The Coca-Cola Foundation,
a not-for-profit charitable organization - $0.01 per share.
Impairment charge to recognize Project Infinity's impact on existing information
systems - $0.02 per share.
continued
1997
- ----
Gains
- -----
Gain on sale of Coca-Cola Schweppes Beverages Ltd. to CCE - $0.08 per share.
Noncash gain on the issuance of stock by CCA - approximately $0.08 per share.
Gain on sale of Coca-Cola Beverages Ltd of Canada and The Coca-Cola Bottling
Company of New York to CCE - $0.04 per share.
Charges
- -------
Provisions related to enhancing manufacturing efficiencies in North America -
$0.02 per share.
1998
- ----
Gain
- ----
Gain on sale of our Italian bottling operations in northern and central Italy
to Coca-Coca Beverages - $0.03 per share.
Noncash gain on the issuance of stock by CCEAG - $0.01 per share.
Charges
- -------
Provisions related to impairment of certain assets in North America and
Corporate - $0.02 per share.
1999
- ----
Charges
- -------
Charges related to impairment of certain bottling, manufacturing and intangible
assets - $0.31 per share.
Impact of European product withdrawal - approximately $0.06 per share.
Share of charges recorded by equity investees in countries such as Venezuela
and the Philippines - $0.01 per share.
2000
- ----
Gains
- -----
Gain related to the merger of Coca-Cola Beverages and Hellenic Bottling Company
S.A. - $0.05 per share.
Charges
- -------
Charges related to the costs associated with a major organizational realignment
- $0.24 per share.
Share of charges recorded by equity investees - $0.19 per share.
Charges related to the impairment of certain bottling, manufacturing and
intangible assets, primarily within our Indian bottling operations -
$0.16 per share.
Planned concentrate inventory reduction by certain bottlers - approximately
$0.12 per share.
Charges related to the settlement terms of a class action discrimination lawsuit
- $0.05 per share.
Incremental marketing expense in Central Europe - $0.01 per share.
2001
- ----
Gain
- ----
Noncash gain on the issuance of stock by one of our equity investees, CCE
- $0.02 per share.
Charge
- ------
Incremental marketing expense in the United States, Japan and Europe
- $0.08 per share."
2002
- ----
Gain
- ----
Share of the gain related to the sale of Cervejarias Kaiser Brazil, Ltda.
- $0.01 per share.
Charges
- -------
Write-down of certain investments primarily related to Latin America
- $0.06 per share.
Share of impairment and restructuring charges taken by certain investees in
Latin America - $0.01 per share.
Accounting Changes
- ------------------
Adoption of SFAS No. 142 "Goodwill and Other Intangible Assets"
- $0.37 per share.
Adoption of SFAS No. 123 "Accounting for Stock-Based Compensation" using the
modified prospective method as described in SFAS No. 148 "Accounting for
Stock-Based Compensation - Transition and Disclosure" - $0.11 per share.
2003
- ----
Gains
- -----
Gain related to the litigation settlement - $0.01 per share.
Charges
- -------
Charges related to the costs associated with the streamlining initiatives
- $0.15 per share.
Write-down of certain investments primarily related to Latin America
- $0.05 per share.
Accounting Changes
- ------------------
Adoption of SFAS No. 123 "Accounting for Stock-Based Compensation" using
the modified prospective method as described in SFAS No. 148 "Accounting for
Stock-Based Compensation - Transition and Disclosure" - $0.13 per share.
- -------------------------------------------------------------------------------
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 reflection
of underlying trends of the business. See the table below for supplemental
financial data and corresponding reconciliations to GAAP financial measures for
the five year period from 2000 to 2004. 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 CASH FLOWS*
(In billions)
Total
2000-2004E**
------------
Net cash used in investing activities $ 5.2
Less: Purchases of PPE 4.0
------
Net cash used in investing activities excluding
purchases of property, plant and equipment 1.2 (A)
------
Net cash used in financing activities 14.3
Less: Purchases of stock for treasury 4.5
Less: Dividends 10.0
------
Net cash used in financing activities excluding
shares repurchased and dividends paid (0.2) (A)
------
Effect of Exchange Rate Changes on Cash and
Cash Equivalents (0.1) (A)
------
Increase in cash during the year 4.2 (A)
------
Sum of acquisitions, debt restructuring and other $ 5.1 Sum of (A)
======
* Relates to slides entitled "Strong Cash Flows are Expected to Continue."
** 2004E based on full year 2004 estimates.