Coca Cola 2003 Annual Report Download - page 45

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Liquidity, Capital Resources and Financial Position
We believe our ability to generate cash from operations to reinvest in our business is one of our
fundamental financial strengths. We expect cash flows from operations to be strong in 2004 and in future years.
For the five-year period from 2004 through 2008, we currently estimate that cumulative net cash provided from
operating activities will be in excess of $32 billion. Accordingly, our Company expects to meet all our financial
commitments and operating needs during this time frame. We expect to use cash generated from operating
activities primarily for dividends, share repurchases, acquisitions and aggregate contractual obligations.
Cash Flows from Operating Activities and Investing Activities
Our statements of cash flows are summarized as follows (in millions):
Year Ended December 31, 2003 2002 2001
Net cash provided by operating activities $ 5,456 $ 4,742 $ 4,110
Cash flows (used in) provided by investing activities:
Acquisitions and investments $ (359) $ (544) $ (651)
Purchases of investments and other assets (177) (141) (456)
Proceeds from disposals of investments and other assets 147 243 455
Purchases of property, plant and equipment (812) (851) (769)
Other investing activities 265 228 233
Net cash used in investing activities $ (936) $ (1,065) $ (1,188)
Cash flows from operating activities increased by 15 percent for 2003 compared to 2002. The key
component of this increase was increased profits in 2003 versus 2002. The following items also significantly
impacted cash flows:
• Collection by the Company in 2002 of approximately $280 million, in connection with the APA reached
between the United States and Japan in 2000, impacted the net change in operating assets and liabilities
for 2002. The APA established the level of royalties paid by Coca-Cola (Japan) Company Ltd. to our
Company for the years 1993 through 2001.
• Funding of our primary qualified U.S. pension plan impacted our cash flows from operations.
Approximately $166 million was funded in 2003 compared to approximately $124 million in 2002.
• Streamlining costs in 2003 accounted for significant cash payments. Refer to Note 17.
Cash flows from operating activities increased by 15 percent for 2002 compared to 2001, primarily as a
result of improved worldwide business operating results. Additionally, as stated above, collection of
approximately $280 million in connection with the APA increased our 2002 cash flows. These increases were
partially offset by the following:
• Funding in 2002 of our primary qualified U.S. pension plan of approximately $124 million as stated
above. We made a payment of approximately $105 million to the primary qualified U.S. pension plan
in 2001.
• A stronger U.S. dollar.
Purchases of property, plant and equipment accounted for the most significant cash outlays for investing
activities in each of three years ended December 31, 2003. Our Company currently estimates that purchases of
property, plant and equipment in 2004 will be less than $1 billion.
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