EX-99.2 3 a2140624zex-99_2.htm EXHIBIT 99.2
QuickLinks -- Click here to rapidly navigate through this document


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. See the Table below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended June 30, 2004, and June 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

Second Quarter
(UNAUDITED)
(In Millions, except per share data and margins)

 
  Three Months Ended June 30, 2004
  Three Months Ended June 30, 2003
   
   
 
 
   
   
   
   
   
   
   
  Items Impacting Results
   
   
   
 
 
   
  Items Impacting Results
   
   
   
   
  % Change -
After
Considering
Items
(Non-GAAP)

 
 
   
  After
Considering
Items
(Non-GAAP)

   
  Charges
Related to
Streamlining
Initiatives

  After
Considering
Items
(Non-GAAP)

   
 
 
  Reported
(GAAP)

  Tax Settlement
at Coca-Cola Femsa

  Gain on
Issuance of Stock by Equity Investee

  Favorable Tax
Settlement

  Asset
Write-downs

  Reported
(GAAP)

  % Change -
Reported
(GAAP)

 
Net Operating Revenues   $ 5,965                           $ 5,965   $ 5,695         $ 5,695   5   5  
Cost of goods sold     2,030                             2,030     2,127           2,127   (5 ) (5 )
   
 
 
 
 
 
 
 
 
         
Gross Profit     3,935                             3,935     3,568           3,568   10   10  
Selling, general and administrative expenses     2,044                             2,044     1,896           1,896   8   8  
Other operating charges     88                     $ (88 )       70   $ (70 )        
   
 
 
 
 
 
 
 
 
         
Operating Income     1,803                       88     1,891     1,602     70     1,672   13   13  
Interest income     32                             32     45           45   (29 ) (29 )
Interest expense     47                             47     43           43   9   9  
Equity income     221   $ (37 )                     184     190           190   16   (3 )
Other income (loss) — net     (5 )                           (5 )   (44 )         (44 )    
Gain on issuance of stock by equity investee     49         $ (49 )                                  
   
 
 
 
 
 
 
 
 
         
Income Before Income Taxes     2,053     (37 )   (49 )         88     2,055     1,750     70     1,820   17   13  
Income taxes     469     (13 )   (19 ) $ 41     30     508     388     27     415   21   22  
   
 
 
 
 
 
 
 
 
         
Net Income   $ 1,584   $ (24 ) $ (30 ) $ (41 ) $ 58   $ 1,547   $ 1,362   $ 43   $ 1,405   16   10  
   
 
 
 
 
 
 
 
 
         
Diluted Net Income Per Share   $ 0.65   $ (0.01 ) $ (0.01 ) $ (0.02 ) $ 0.02   $ 0.64   $ 0.55   $ 0.02   $ 0.57   18   12  
   
 
 
 
 
 
 
 
 
         
Average Shares Outstanding — Diluted     2,434     2,434     2,434     2,434     2,434     2,434     2,466     2,466     2,466   (1 ) (1 )
   
 
 
 
 
 
 
 
 
         
Gross Margin     66.0 %                           66.0 %   62.7 %         62.7 %        
Operating Margin     30.2 %                           31.7 %   28.1 %         29.4 %        
Effective Tax Rate     22.8 %                           24.7 %   22.2 %         22.8 %        

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 six months ended June 30, 2004, and June 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

June Year-To-Date
(UNAUDITED)
(In Millions, except per share data and margins)

 
  Six Months Ended June 30, 2004
  Six Months Ended June 30, 2003
   
   
 
 
   
   
   
   
   
   
   
  Items Impacting Results
   
   
   
 
 
   
  Items Impacting Results
   
   
   
   
  % Change -
After
Considering
Items
(Non-GAAP)

 
 
   
  After
Considering
Items
(Non-GAAP)

   
   
  Charges
Related to
Streamlining
Initiatives

  After
Considering
Items
(Non-GAAP)

   
 
 
  Reported
(GAAP)

  Tax Settlement
at Coca-Cola Femsa

  Gain on
Issuance of Stock by Equity Investee

  Favorable Tax
Settlement

  Asset
Write-downs

  Reported
(GAAP)

  Gain on Vitamin Settlement
  % Change -
Reported
(GAAP)

 
Net Operating Revenues   $ 11,043                           $ 11,043   $ 10,197               $ 10,197   8   8  
Cost of goods sold     3,783                             3,783     3,744   $ 52           3,796   1   (0 )
   
 
 
 
 
 
 
 
 
 
         
Gross Profit     7,260                             7,260     6,453     (52 )         6,401   13   13  
Selling, general and administrative expenses     3,918                             3,918     3,546                 3,546   10   10  
Other operating charges     88                     $ (88 )       229         $ (229 )        
   
 
 
 
 
 
 
 
 
 
         
Operating Income     3,254                       88     3,342     2,678     (52 )   229     2,855   22   17  
Interest income     67                             67     101                 101   (34 ) (34 )
Interest expense     91                             91     88                 88   3   3  
Equity income     316   $ (37 )                     279     239                 239   32   17  
Other income (loss) — net     (30 )                           (30 )   (57 )               (57 )    
Gain on issuance of stock by equity investee     49         $ (49 )                                          
   
 
 
 
 
 
 
 
 
 
         
Income Before Income Taxes     3,565     (37 )   (49 )         88     3,567     2,873     (52 )   229     3,050   24   17  
Income taxes     854     (13 )   (19 ) $ 41     30     893     676     (18 )   83     741   26   21  
   
 
 
 
 
 
 
 
 
 
         
Net Income   $ 2,711   $ (24 ) $ (30 ) $ (41 ) $ 58   $ 2,674   $ 2,197   $ (34 ) $ 146   $ 2,309   23   16  
   
 
 
 
 
 
 
 
 
 
         
Diluted Net Income Per Share   $ 1.11   $ (0.01 ) $ (0.01 ) $ (0.02 ) $ 0.02   $ 1.10   $ 0.89   $ (0.01 ) $ 0.06   $ 0.94   25   17  
   
 
 
 
 
 
 
 
 
 
         
Average Shares Outstanding — Diluted     2,439     2,439     2,439     2,439     2,439     2,439     2,469     2,469     2,469     2,469   (1 ) (1 )
   
 
 
 
 
 
 
 
 
 
         
Gross Margin     65.7 %                           65.7 %   63.3 %               62.8 %        
Operating Margin     29.5 %                           30.3 %   26.3 %               28.0 %        
Effective Tax Rate     24.0 %                           30.3 %   23.5 %               24.3 %        

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. 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 six months ended June 30, 2004 and June 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
RECONCILIATION OF OPERATING INCOME EXCLUDING ASSET WRITE-DOWNS, VITAMIN SETTLEMENT, STREAMLINING INITIATIVES, AND CURRENCY IMPACT
(In millions)

 
  June Year-to-date
   
 
  2004
  2003
  % Change
Reported operating income   $ 3,254   $ 2,678   22
Asset write-downs     88          
Gain on vitamin settlement           (52 )  
Charges related to streamlining initiatives           229    
   
 
 
Operating income excluding asset write-downs, vitamin settlement and streamlining initiatives   $ 3,342   $ 2,855   17
   
 
   
Positive currency impact               9
               
Operating income excluding asset write-downs, vitamin settlement, streamlining initiatives, and currency impact               8
               



QuickLinks