Exhibit 99.3
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions except share data)
ASSETS
September 30,
1993 December 31,
(Restated) 1992
------------ -----------
Current
Cash and cash equivalents $ 1,040 $ 956
Marketable securities, at cost 149 107
----------- -----------
1,189 1,063
Trade accounts receivable, less
allowances of $38 at September 30
and $33 at December 31 1,151 1,055
Finance subsidiary receivables 46 31
Inventories 1,078 1,019
Prepaid expenses and other assets 988 1,080
----------- -----------
Total Current Assets 4,452 4,248
----------- -----------
Investments and Other Assets
Investments
Coca-Cola Enterprises Inc. 497 518
Coca-Cola Amatil Limited 539 548
Other, principally bottling companies 1,170 1,097
Finance subsidiary receivables 200 95
Marketable securities and other assets 657 637
----------- -----------
3,063 2,895
----------- -----------
Property, Plant and Equipment
Land 218 203
Buildings and improvements 1,573 1,529
Machinery and equipment 3,389 3,137
Containers 371 374
----------- -----------
5,551 5,243
Less allowances for depreciation 1,840 1,717
----------- -----------
3,711 3,526
----------- -----------
Goodwill and Other Intangible Assets 439 383
----------- -----------
$ 11,665 $ 11,052
=========== ===========
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THE COCA-COLA COMPANY AND SUBSIDIARIES
LIABILITIES AND SHARE-OWNERS' EQUITY
September 30,
1993 December 31,
(Restated) 1992
------------- ------------
Current
Accounts payable and accrued expenses $ 2,138 $ 2,253
Loans and notes payable 1,387 1,967
Finance subsidiary notes payable 233 105
Current maturities of long-term debt 12 15
Accrued taxes 1,160 963
----------- -----------
Total Current Liabilities 4,930 5,303
----------- -----------
Long-Term Debt 1,479 1,120
----------- -----------
Other Liabilities 712 659
----------- -----------
Deferred Income Taxes 62 82
----------- -----------
Share-Owners' Equity
Common stock, $.25 par value -
Authorized: 2,800,000,000 shares;
Issued: 1,702,309,902 shares at September
30; 1,696,202,840 shares at December 31 426 424
Capital surplus 1,050 871
Reinvested earnings 9,211 8,165
Unearned compensation related to
outstanding restricted stock (85) (100)
Foreign currency translation adjustment (357) (271)
----------- -----------
10,245 9,089
Less treasury stock, at cost
(403,274,643 common shares at September
30; 389,431,622 common shares at
December 31) 5,763 5,201
----------- -----------
4,482 3,888
----------- -----------
$ 11,665 $ 11,052
=========== ===========
See Note to Condensed Consolidated Financial Statements.
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THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In millions except per share data)
Three Months Nine Months
Ended September 30, Ended September 30,
------------------------ ------------------------
1993
1993 1992 (Restated) 1992
---------- ---------- ---------- ----------
Net Operating Revenues $ 3,629 $ 3,508 $ 10,584 $ 9,830
Cost of goods sold 1,343 1,386 3,900 3,791
---------- ---------- ---------- ----------
Gross Profit 2,286 2,122 6,684 6,039
Selling, administrative
and general expenses 1,457 1,356 4,219 3,867
---------- ---------- ---------- ----------
Operating Income 829 766 2,465 2,172
Interest income 38 47 105 120
Interest expense 38 42 124 128
Equity income 24 34 92 57
Other income
(deductions) - net 17 (18) (32) (47)
---------- ---------- ---------- ----------
Income before Income
Taxes and Changes in
Accounting Principles 870 787 2,506 2,174
Income taxes 280 247 784 683
---------- ---------- ---------- ----------
Income before Changes
in Accounting
Principles 590 540 1,722 1,491
Transition effects of
changes in accounting
principles
Postemployment benefits -- -- (12) --
Postretirement benefits
other than pensions
Consolidated
operations -- -- -- (146)
Equity investments -- -- -- (73)
---------- ---------- ---------- ----------
Net Income $ 590 $ 540 $ 1,710 $ 1,272
========== ========== ========== ==========
Income per Share
Before changes in
accounting principles $ .45 $ .41 $ 1.32 $ 1.13
Transition effects of
changes in accounting
principles
Postemployment benefits -- -- (.01) --
Postretirement benefits
other than pensions
Consolidated
operations -- -- -- (.11)
Equity investments -- -- -- (.06)
---------- ---------- ---------- ----------
Net Income per Share $ .45 $ .41 $ 1.31 $ .96
========== ========== ========== ==========
Dividends per Share $ .17 $ .14 $ .51 $ .42
========== ========== ========== ==========
Average Shares
Outstanding 1,300 1,314 1,303 1,319
========== ========== ========== ==========
See Note to Condensed Consolidated Financial Statements.
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THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In millions)
Nine Months Ended
September 30,
-----------------------
1993
(Restated) 1992
----------- -----------
Operating Activities
Net income $ 1,710 $ 1,272
Transition effects of changes in accounting
principles 12 219
Depreciation and amortization 263 249
Deferred income taxes 19 (9)
Equity income, net of dividends (44) (35)
Foreign currency adjustments (7) (9)
Other noncash items 33 22
Net change in operating assets and
liabilities (108) (257)
----------- -----------
Net cash provided by operating activities 1,878 1,452
----------- -----------
Investing Activities
Additions to finance subsidiary receivables (157) (33)
Collections of finance subsidiary receivables 36 249
Acquisitions and investments (568) (247)
Proceeds from disposals of investments
and other assets 645 67
Increase in current marketable securities (43) (21)
Purchases of property, plant and equipment (582) (743)
Proceeds from disposals of property, plant
and equipment 129 87
All other investing activities (40) 1
----------- -----------
Net cash used in investing activities (580) (640)
----------- -----------
Net cash provided by operations after
reinvestment 1,298 812
----------- -----------
Financing Activities
Issuances of debt 424 385
Payments of debt (561) (227)
Issuances of stock 138 59
Purchases of stock for treasury (562) (859)
Dividends (643) (369)
----------- -----------
Net cash used in financing activities (1,204) (1,011)
----------- -----------
Effect of Exchange Rate Changes on Cash
and Cash Equivalents (10) (18)
----------- -----------
Cash and Cash Equivalents
Net increase (decrease) during the period 84 (217)
Balance at beginning of period 956 1,058
----------- -----------
Balance at end of period $ 1,040 $ 841
=========== ===========
Interest Paid $ 150 $ 137
=========== ===========
Income Taxes Paid $ 489 $ 790
=========== ===========
See Note to Condensed Consolidated Financial Statements.
17
THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note - Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. They do not include all information and notes
required by generally accepted accounting principles for complete financial
statements. However, except as disclosed herein, there has been no material
change in the information disclosed in the notes to consolidated financial
statements included in the Annual Report on Form 10-K of The Coca-Cola Company
(the Company) for the year ended December 31, 1992. In the opinion of
Management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the quarterly and year-to-date periods ended March 31, 1993, June
30, 1993, and September 30, 1993 are not necessarily indicative of the results
that may be expected for the year ending December 31, 1993.
The Company filed a Form 8-K on February 17, 1993 restating the 1992
quarterly reports for the adoption of Statement of Financial Accounting
Standards No. 106, "Employers' Accounting for Postretirement Benefits Other
Than Pensions" (SFAS 106) and Statement of Financial Accounting Standards No.
109, "Accounting for Income Taxes" (SFAS 109). The impact of the restatement
on the first quarter of 1992 includes the after-tax transition charge of $219
million related to SFAS 106.
The Company retroactively adopted SFAS 109 by restating financial statements
beginning in 1989. The effect of SFAS 109 for the first three quarters of 1992
for consolidated operations was not material. However, the income statements
for the first, second and third quarters of 1992 have been restated for the
impact of SFAS 109 on the Company's equity investees. Equity income has been
increased by $12 million in the first quarter of 1992, reduced by $15 million
in the second quarter of 1992 and increased by $6 million in the third quarter
of 1992 for the impact of SFAS 109 on the Company's equity investees. Equity
income was reduced $3 million in each of the first, second and third quarters
of 1992 for the Company's proportionate share of additional postretirement
benefits expense recognized by the Company's equity investees after transition
to SFAS 106.
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The Company has retroactively adopted Statement of Financial Accounting
Standards No. 112, "Employers' Accounting for Postemployment Benefits" (SFAS
112) as of January 1, 1993. Results for the first quarter of 1993 have been
restated to include the recognition of a one-time, noncash, after-tax charge of
$12 million related to consolidated operations. This amount is net of income
tax benefits of $8 million. The transition effect charge consists primarily of
health benefits for surviving spouses and disabled employees. The incremental
impact of SFAS 112 on 1993 consolidated operations is immaterial and will be
included in the results of operations for the fourth quarter of 1993. The
adoption impact of SFAS 112 on the Company's bottling investees accounted for
by the equity method is immaterial and, therefore, has not been included in the
transition effect charge. Net income per share for the first quarter of 1993
has been reduced by $0.01 for the adoption of SFAS 112.
19