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Quarterly Data (Unaudited)
First Second Third Fourth Full
Year Ended December 31, Quarter Quarter Quarter Quarter Year
(In millions, except per share data)
2003
Net operating revenues $ 4,502 $ 5,695 $ 5,671 $ 5,176 $ 21,044
Gross profit 2,885 3,568 3,503 3,326 13,282
Net income 835 1,362 1,223 927 4,347
Basic net income per share $ 0.34 $ 0.55 $ 0.50 $ 0.38 $ 1.77
Diluted net income per share $ 0.34 $ 0.55 $ 0.50 $ 0.38 $ 1.77
2002
Net operating revenues $ 4,079 $ 5,368 $ 5,322 $ 4,795 $ 19,564
Gross profit 2,685 3,441 3,239 3,094 12,459
Net income before cumulative effect of accounting change 732 1,223 1,091 930 3,976
Net income (loss) (194) 1,223 1,091 930 3,050
Basic net income (loss) per share:
Before accounting change $ 0.29 $ 0.49 $ 0.44 $ 0.38 $ 1.60
Cumulative effect of accounting change (0.37) — — — (0.37)
Total $ (0.08) $ 0.49 $ 0.44 $ 0.38 $ 1.23
Diluted net income (loss) per share:
Before accounting change $ 0.29 $ 0.49 $ 0.44 $ 0.38 $ 1.60
Cumulative effect of accounting change (0.37) — — — (0.37)
Total $ (0.08) $ 0.49 $ 0.44 $ 0.38 $ 1.23
Certain amounts previously reported in our 2003 Quarterly Reports on Form 10-Q were reclassified to conform to our
year-end 2003 presentation.
In the first quarter of 2003, the Company reached a settlement with certain defendants in a vitamin antitrust litigation
matter. The Company received a settlement relating to this litigation of approximately $52 million on a pretax basis. Refer
to Note 16.
In 2003, the Company took steps to streamline and simplify its operations, primarily in North America and Germany.
Selected other operations also took steps to streamline their operations to improve overall efficiency and effectiveness. The
pretax expense of these streamlining initiatives for the three months ended March 31, 2003, June 30, 2003, September 30,
2003 and December 31, 2003 was $159 million, $70 million, $43 million and $289 million, respectively. Refer to Note 17.
Effective May 6, 2003, one of our Company’s equity method investees, Coca-Cola FEMSA, S.A. de C.V. (‘‘Coca-Cola
FEMSA’’) consummated a merger with another of the Company’s equity method investees, Panamerican Beverages, Inc.
During the third quarter of 2003, our Company recorded a pretax noncash charge to equity income—net of $95 million
primarily related to Coca-Cola FEMSA streamlining initiatives and impairment of certain intangible assets. During the
fourth quarter of 2003, our Company recorded a pretax noncash charge of $7 million related solely to the streamlining and
integration of these operations. Refer to Note 2.
In the fourth quarter of 2003, we favorably resolved various tax matters (approximately $50 million), partially offset by
additional taxes primarily related to the repatriation of funds.
Effective January 1, 2002, our Company adopted Statement of Financial Accounting Standards No. 142, ‘‘Goodwill and
Other Intangible Assets.’’ For the Company’s intangible assets, the cumulative effect of this change in accounting principle
was a decrease to net income after taxes in the first quarter of 2002 of approximately $367 million. For the Company’s
proportionate share of its equity method investees, the cumulative effect of this change in accounting principle was a
decrease to net income after taxes in the first quarter of 2002 of approximately $559 million. Refer to Note 4.
The first quarter of 2002 included a noncash pretax charge of approximately $157 million primarily related to the
write-down of our investments in Latin America. Refer to Note 16.
In the first quarter of 2002, Cervejarias Kaiser S.A. sold its investment in Cervejarias Kaiser Brazil, Ltda to Molson Inc.
(‘‘Molson’’) for cash of approximately $485 million and shares of Molson valued at approximately $150 million. Our
Company’s pretax share of the gain related to this sale was approximately $43 million. Refer to Note 16.
The third quarter of 2002 includes a noncash pretax charge of approximately $33 million related to our proportionate
share of impairment and restructuring charges taken by certain investees in Latin America. Refer to Note 16.
102