Coca Cola 2003 Annual Report Download - page 69

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 2: BOTTLING INVESTMENTS (Continued)
Other Equity Investments
Operating results include our proportionate share of income (loss) from our equity investments. A summary
of financial information for our equity investments in the aggregate, other than CCE, is as follows (in millions):
December 31, 2003 2002
Current assets $ 6,416 $ 5,649
Noncurrent assets 17,394 14,453
Total assets $ 23,810 $ 20,102
Current liabilities $ 5,467 $ 4,816
Noncurrent liabilities 9,011 6,010
Total liabilities $ 14,478 $ 10,826
Share-owners’ equity $ 9,332 $ 9,276
Company equity investment $ 3,964 $ 3,765
Year Ended December 31, 2003 2002 2001
Net operating revenues $ 19,797 $ 17,7141$ 19,7401
Cost of goods sold 11,661 10,112111,3371
Gross profit $ 8,136 $ 7,6021$ 8,4031
Operating income $ 1,666 $ 1,744 $ 1,770
Cumulative effect of accounting change2$—$ (1,428) $ —
Net income (loss) $ 580 $ (630) $ 735
Equity investments include nonbottling investees.
1These amounts were reclassified to reflect the January 1, 2003 adoption of EITF Issue No. 02-16,
‘‘Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a
Vendor.’’
2Accounting change is the adoption of SFAS No. 142.
Net sales to equity investees other than CCE, the majority of which are located outside the United States,
were $4.0 billion in 2003, $3.2 billion in 2002 and $3.7 billion in 2001. Total support payments, primarily
marketing, made to equity investees other than CCE were approximately $511 million, $488 million and
$636 million for 2003, 2002 and 2001, respectively.
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. (‘‘Panamco’’). Our Company received new Coca-Cola FEMSA shares in exchange
for all Panamco shares previously held by the Company. Our Company’s ownership interest in Coca-Cola
FEMSA increased from 30 percent to approximately 40 percent as a result of this merger. This exchange of
shares was treated as a nonmonetary exchange of similar productive assets, and no gain was recorded by our
Company as a result of this merger.
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