Coca Cola 2003 Annual Report Download - page 36

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Operations Review
Analysis of Consolidated Statements of Income
Percent Change
Year Ended December 31, 2003 2002 2001 03 vs. 02 02 vs. 01
(In millions except per share data and percentages)
NET OPERATING REVENUES $ 21,044 $ 19,564 $ 17,545 8 12
Cost of goods sold 7,762 7,105 6,044 9 18
GROSS PROFIT 13,282 12,459 11,501 7 8
GROSS PROFIT MARGIN 63.1% 63.7% 65.6%
Selling, general and administrative expenses 7,488 7,001 6,149 7 14
Other operating charges 573 ——**
OPERATING INCOME 5,221 5,458 5,352 (4) 2
OPERATING MARGIN 24.8% 27.9% 30.5%
Interest income 176 209 325 (16) (36)
Interest expense 178 199 289 (11) (31)
Equity income—net 406 384 152 6 153
Other income (loss)—net (138) (353) 39 * *
Gains on issuances of stock by equity investees 8—91**
INCOME BEFORE INCOME TAXES AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 5,495 5,499 5,670 — (3)
Income taxes 1,148 1,523 1,691 (25) (10)
Effective tax rate 20.9% 27.7% 29.8%
NET INCOME BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 4,347 3,976 3,979 9 —
Cumulative effect of accounting change for SFAS No. 142,
net of income taxes:
Company operations —(367) — * *
Equity investees —(559) — * *
Cumulative effect of accounting change for SFAS No. 133,
net of income taxes —— (10) * *
NET INCOME $ 4,347 $ 3,050 $ 3,969 43 (23)
PERCENTAGE OF NET OPERATING REVENUES 20.7% 15.6% 22.6%
NET INCOME PER SHARE:
Basic $ 1.77 $ 1.23 $ 1.60 44 (23)
Diluted $ 1.77 $ 1.23 $ 1.60 44 (23)
* Calculation is not meaningful.
Refer to the above Analysis of Consolidated Statements of Income in condensed form while reading the
operations review below.
33