Coca Cola 2003 Annual Report Download - page 101

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 19: OPERATING SEGMENTS (Continued)
Information about our Company’s operations by operating segment is as follows (in millions):
Europe,
Eurasia &
North Middle Latin
America Africa Asia East America Corporate Consolidated
2003
Net operating revenues $ 6,344 $ 827 $ 5,0521$ 6,556 $ 2,042 $ 223 $ 21,044
Operating income2,3 1,198 249 1,690 1,908 970 (794)45,221
Interest income 176 176
Interest expense 178 178
Depreciation and amortization 305 27 124 230 52 112 850
Equity income (loss)—net 13 13 65 78 (5)5242 406
Income before income taxes and cumulative effect of accounting
change2,3 1,242 249 1,740 1,921 975 (632)45,495
Identifiable operating assets 4,953 721 1,923 5,222 1,440 7,545 621,804
Investments7109 156 1,345 1,229 1,348 1,351 5,538
Capital expenditures 309 13 148 198 35 109 812
2002
Net operating revenues $ 6,264 $ 684 $ 5,0541$ 5,262 8$ 2,089 $ 211 $ 19,564
Operating income91,494 224 1,820 1,612 1,033 (725) 5,458
Interest income 209 209
Interest expense 199 199
Depreciation and amortization 266 37 133 193 57 120 806
Equity income (loss)—net 15 (25) 60 (18) 131 221 384
Income before income taxes and cumulative effect of accounting
change91,515 187 1,848 1,540 1,081 (672) 5,499
Identifiable operating assets 4,999 565 2,370 4,481 81,205 5,795 619,415
Investments7142 115 1,150 1,211 81,352 1,021 4,991
Capital expenditures 334 18 209 162 37 91 851
2001
Net operating revenues $ 5,729 $ 633 $ 4,8611$ 3,961 $ 2,181 $ 180 $ 17,545
Operating income 1,480 276 1,763 1,461 1,094 (722) 5,352
Interest income 325 325
Interest expense 289 289
Depreciation and amortization 249 43 144 118 90 159 803
Equity income (loss)—net 2 (9) 68 (52) 118 25 152
Income before income taxes and cumulative effect of accounting
change 1,472 262 1,808 1,413 1,279 (564)10 5,670
Identifiable operating assets 4,738 517 2,121 2,292 1,681 5,646 616,995
Investments7140 184 1,053 1,626 1,572 847 5,422
Capital expenditures 339 11 107 105 37 170 769
Intercompany transfers between operating segments are not material.
Certain prior-year amounts have been reclassified to conform to the current-year presentation.
1Net operating revenues in Japan represented approximately 67 percent of total Asia operating segment net operating revenues in 2003, 69 percent in
2002 and 74 percent in 2001.
2Operating income and income before income taxes and cumulative effect of accounting change were reduced by stock-based compensation expense of
$127 million for North America, $26 million for Africa, $55 million for Asia, $54 million for Europe, Eurasia and Middle East, $24 million for Latin
America and $113 million for Corporate.
3Operating income and income before income taxes and cumulative effect of accounting change were reduced by $273 million for North America,
$12 million for Africa, $18 million for Asia, $183 million for Europe, Eurasia and Middle East, $8 million for Latin America and $67 million for
Corporate as a result of streamlining charges. Refer to Note 17.
4Operating income and income before income taxes and cumulative effect of accounting change were increased by $52 million for Corporate as a result
of the Company’s receipt of a settlement related to a vitamin antitrust litigation matter. Refer to Note 16.
5Equity income (loss)—net for Latin America was reduced by $102 million primarily for a charge related to one of our equity method investees. Refer to
Note 2.
6Principally marketable securities, finance subsidiary receivables, goodwill, trademarks and other intangible assets, and property, plant and equipment.
7Principally equity investments in bottling companies.
8Net operating revenues, identifiable operating assets and investments for Europe, Eurasia and Middle East were significantly impacted by the
acquisition of CCEAG.
9Operating income and income before income taxes and cumulative effect of accounting change were reduced by $119 million for North America,
$24 million for Africa, $51 million for Asia, $51 million for Europe, Eurasia and Middle East, $22 million for Latin America and $106 million for
Corporate to include the impact of adopting the fair value method of accounting for stock-based compensation under SFAS No. 123.
10 Income before income taxes and cumulative effect of accounting change was increased by $91 million for Corporate due to a noncash gain that was
recognized on the issuance of stock by CCE, one of our equity investees.
98