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 September 30, 2004, and September 30, 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 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, 2004 |
Three Months Ended September 30, 2003 |
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Items Impacting Results |
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Items Impacting Results |
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% Change— After Considering Items (Non-GAAP) |
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Reported (GAAP) |
Asset Write- downs |
Resolution of Tax Matters |
German Deferred Tax Asset |
After Considering Items (Non-GAAP) |
Reported (GAAP) |
Charges Related to Streamlining Initiatives |
Gain on Issuance of Stock by Equity Investee |
Charge Related to the Write Down of Assets in Latin America |
After Considering Items (Non-GAAP) |
% Change— Reported (GAAP) |
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| Net Operating Revenues | $ | 5,662 | $ | 5,662 | $ | 5,671 | $ | 5,671 | — | — | |||||||||||||||||||||||||
| Cost of goods sold | 2,052 | 2,052 | 2,168 | 2,168 | (5 | ) | (5 | ) | |||||||||||||||||||||||||||
| Gross Profit | 3,610 | 3,610 | 3,503 | 3,503 | 3 | 3 | |||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 2,121 | 2,121 | 1,997 | 1,997 | 6 | 6 | |||||||||||||||||||||||||||||
| Other operating charges | 392 | $ | (392 | ) | — | 55 | $ | (43 | ) | $ | (12 | ) | — | — | — | ||||||||||||||||||||
| Operating Income | 1,097 | 392 | 1,489 | 1,451 | 43 | — | 12 | 1,506 | (24 | ) | (1 | ) | |||||||||||||||||||||||
| Interest income | 39 | 39 | 37 | 37 | 5 | 5 | |||||||||||||||||||||||||||||
| Interest expense | 47 | 47 | 42 | 42 | 12 | 12 | |||||||||||||||||||||||||||||
| Equity income | 180 | 180 | 86 | 95 | 181 | 109 | (1 | ) | |||||||||||||||||||||||||||
| Other income (loss) — net | (34 | ) | (34 | ) | (42 | ) | (42 | ) | — | — | |||||||||||||||||||||||||
| Gain on issuance of stock by equity investees | — | — | 8 | $ | (8 | ) | — | — | — | ||||||||||||||||||||||||||
| Income Before Income Taxes | 1,235 | 392 | 1,627 | 1,498 | 43 | (8 | ) | 107 | 1,640 | (18 | ) | (1 | ) | ||||||||||||||||||||||
| Income taxes | 300 | 141 | $ | 39 | $ | (75 | ) | 405 | 275 | 12 | (3 | ) | 3 | 287 | 9 | 41 | |||||||||||||||||||
| Net Income | $ | 935 | $ | 251 | $ | (39 | ) | $ | 75 | $ | 1,222 | $ | 1,223 | $ | 31 | $ | (5 | ) | $ | 104 | $ | 1,353 | (24 | ) | (10 | ) | |||||||||
| Diluted Net Income Per Share | $ | 0.39 | $ | 0.10 | $ | (0.02 | ) | $ | 0.03 | $ | 0.50 | $ | 0.50 | $ | 0.01 | $ | — | $ | 0.04 | $ | 0.55 | (22 | ) | (9 | ) | ||||||||||
| Average Shares Outstanding — Diluted | 2,424 | 2,424 | 2,424 | 2,424 | 2,424 | 2,458 | 2,458 | 2,458 | 2,458 | 2,458 | (1 | ) | (1 | ) | |||||||||||||||||||||
| Gross Margin | 63.8 | % | 63.8 | % | 61.8 | % | 61.8 | % | |||||||||||||||||||||||||||
| Operating Margin | 19.4 | % | 26.3 | % | 25.6 | % | 26.6 | % | |||||||||||||||||||||||||||
| Effective Tax Rate* | 24.3 | % | 25.0 | % | 18.4 | % | 17.5 | % | |||||||||||||||||||||||||||
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.
*Effective Tax Rate calculated on full figures.
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 nine months ended September 30, 2004, and September 30, 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 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, 2004 |
Nine Months Ended September 30, 2003 |
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Items Impacting Results |
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Items Impacting Results |
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Reported (GAAP) |
Tax Settlement at Coca-Cola Femsa |
Gain on Issuance of Stock by Equity Investee |
Asset Write-downs |
Resolution of Tax Matters |
German Deferred Tax Asset |
After Considering Items (Non-GAAP) |
Reported (GAAP) |
Charges Related to Streamlining Initiatives |
Gain on Vitamin Settlement |
Gain on Issuance of Stock by Equity Investee |
Charge Related to the Write Down of Assets in Latin America |
After Considering Items (Non-GAAP) |
% Change— Reported (GAAP) |
% Change— After Considering Items (Non-GAAP) |
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| Net Operating Revenues | $ | 16,705 | $ | 16,705 | $ | 15,868 | $ | 15,868 | 5 | 5 | ||||||||||||||||||||||||||||||||||
| Cost of goods sold | 5,835 | 5,835 | 5,912 | $ | 52 | 5,964 | (1 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||
| Gross Profit | 10,870 | 10,870 | 9,956 | — | (52 | ) | 9,904 | 9 | 10 | |||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 6,039 | 6,039 | 5,543 | 5,543 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||
| Other operating charges | 480 | $ | (480 | ) | — | 284 | $ | (272 | ) | $ | (12 | ) | — | — | — | |||||||||||||||||||||||||||||
| Operating Income | 4,351 | 480 | 4,831 | 4,129 | 272 | (52 | ) | — | 12 | 4,361 | 5 | 11 | ||||||||||||||||||||||||||||||||
| Interest income | 106 | 106 | 138 | 138 | (23 | ) | (23 | ) | ||||||||||||||||||||||||||||||||||||
| Interest expense | 138 | 138 | 130 | 130 | 6 | 6 | ||||||||||||||||||||||||||||||||||||||
| Equity income | 496 | $ | (37 | ) | 459 | 325 | 95 | 420 | 53 | 9 | ||||||||||||||||||||||||||||||||||
| Other income (loss) — net | (64 | ) | (64 | ) | (99 | ) | (99 | ) | — | — | ||||||||||||||||||||||||||||||||||
| Gain on issuance of stock by equity investees | 49 | $ | (49 | ) | — | 8 | $ | (8 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Income Before Income Taxes | 4,800 | (37 | ) | (49 | ) | 480 | 5,194 | 4,371 | 272 | (52 | ) | (8 | ) | 107 | 4,690 | 10 | 11 | |||||||||||||||||||||||||||
| Income taxes | 1,154 | (13 | ) | (19 | ) | 171 | $ | 80 | $ | (75 | ) | 1,298 | 951 | 95 | (18 | ) | (3 | ) | 3 | 1,028 | 21 | 26 | ||||||||||||||||||||||
| Net Income | $ | 3,646 | $ | (24 | ) | $ | (30 | ) | $ | 309 | $ | (80 | ) | $ | 75 | $ | 3,896 | $ | 3,420 | $ | 177 | $ | (34 | ) | $ | (5 | ) | $ | 104 | $ | 3,662 | 7 | 6 | |||||||||||
| Diluted Net Income Per Share* | $ | 1.50 | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.13 | $ | (0.03 | ) | $ | 0.03 | $ | 1.60 | $ | 1.39 | $ | 0.07 | $ | (0.01 | ) | $ | — | $ | 0.04 | $ | 1.49 | 8 | 7 | ||||||||||||
| Average Shares Outstanding — Diluted | 2,434 | 2,434 | 2,434 | 2,434 | 2,434 | 2,434 | 2,434 | 2,465 | 2,465 | 2,465 | 2,465 | 2,465 | 2,465 | (1 | ) | (1 | ) | |||||||||||||||||||||||||||
| Gross Margin | 65.1 | % | 65.1 | % | 62.7 | % | 62.4 | % | ||||||||||||||||||||||||||||||||||||
| Operating Margin | 26.0 | % | 28.9 | % | 26.0 | % | 27.5 | % | ||||||||||||||||||||||||||||||||||||
| Effective Tax Rate | 24.0 | % | 25.0 | % | 21.8 | % | 21.9 | % | ||||||||||||||||||||||||||||||||||||
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.
*Certain items may not add across due to rounding.
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 September 30, 2004, and September 30, 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 AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
Operating Income by Segment
Third Quarter
(UNAUDITED)
(In Millions)
| |
Operating Income Three Months Ended September 30, 2004 |
Operating Income Three Months Ended September 30, 2003 |
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Item Impacting Results |
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Items Impacting Results |
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Reported (GAAP) |
Asset Write-downs |
After Considering Items (Non-GAAP) |
Reported (GAAP) |
Charges Related to Streamlining Initiatives |
Charge Related to the Write Down of Assets in Latin America |
After Considering Items (Non-GAAP) |
% Change— Reported (GAAP) Fav. / (Unfav.) |
% Change— After Considering Items (Non-GAAP) Fav. / (Unfav.) |
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| Operating Segment | ||||||||||||||||||||||||||
| North America | $ | 377 | $ | 377 | $ | 361 | $ | 13 | $ | 374 | 4 | 1 | ||||||||||||||
| Africa | 83 | 83 | 65 | 1 | 66 | 28 | 26 | |||||||||||||||||||
| Asia | 451 | $ | 15 | 466 | 410 | 410 | 10 | 14 | ||||||||||||||||||
| Europe, Eurasia & Middle East | 160 | 371 | 531 | 589 | 23 | 612 | (73 | ) | (13 | ) | ||||||||||||||||
| Latin America | 266 | 266 | 250 | 1 | $ | 12 | 263 | 6 | 1 | |||||||||||||||||
| Corporate | (240 | ) | 6 | (234 | ) | (224 | ) | 5 | (219 | ) | (7 | ) | (7 | ) | ||||||||||||
| Consolidated | $ | 1,097 | $ | 392 | $ | 1,489 | $ | 1,451 | $ | 43 | $ | 12 | $ | 1,506 | (24 | ) | (1 | ) | ||||||||
Note: Items to consider for comparability include primarily charges, and gains. Charges negatively impacting operating income are reflected as increases to reported operating income. Gains positively impacting operating income are reflected as deductions to reported operating income.
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 nine months ended September 30, 2004, and September 30, 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 AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Financial Measures
Operating Income by Segment
September Year-to-Date
(UNAUDITED)
(In Millions)
| |
Operating Income Nine Months Ended September 30, 2004 |
Operating Income Nine Months Ended September 30, 2003 |
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Item Impacting Results |
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Items Impacting Results |
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% Change— After Considering Items (Non-GAAP) Fav. / (Unfav.) |
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Reported (GAAP) |
Asset Write-downs |
After Considering Items (Non-GAAP) |
Reported (GAAP) |
Charges Related to Streamlining Initiatives |
Gain on Vitamin Settlement |
Charge Related to the Write Down of Assets in Latin America |
After Considering Items (Non-GAAP) |
% Change— Reported (GAAP) Fav. / (Unfav.) |
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| Operating Segment | |||||||||||||||||||||||||||||
| North America | $ | 1,248 | $ | 18 | $ | 1,266 | $ | 1,017 | $ | 147 | $ | 1,164 | 23 | 9 | |||||||||||||||
| Africa | 239 | 239 | 183 | 1 | 184 | 31 | 30 | ||||||||||||||||||||||
| Asia | 1,411 | 15 | 1,426 | 1,244 | 1,244 | 13 | 15 | ||||||||||||||||||||||
| Europe, Eurasia & Middle East | 1,422 | 377 | 1,799 | 1,531 | 92 | 1,623 | (7 | ) | 11 | ||||||||||||||||||||
| Latin America | 781 | 6 | 787 | 725 | 4 | $ | 12 | 741 | 8 | 6 | |||||||||||||||||||
| Corporate | (750 | ) | 64 | (686 | ) | (571 | ) | 28 | $ | (52 | ) | (595 | ) | (31 | ) | (15 | ) | ||||||||||||
| Consolidated | $ | 4,351 | $ | 480 | $ | 4,831 | $ | 4,129 | $ | 272 | $ | (52 | ) | $ | 12 | $ | 4,361 | 5 | 11 | ||||||||||
Note: Items to consider for comparability include primarily charges, and gains. Charges negatively impacting operating income are reflected as increases to reported operating income. Gains positively impacting operating income are reflected as deductions to reported operating income.