Coca Cola 2003 Annual Report Download - page 95

Download and view the complete annual report

Please find page 95 of the 2003 Coca Cola annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 123

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Coca-Cola Company and Subsidiaries
NOTE 15: INCOME TAXES (Continued)
The tax effects of temporary differences and carryforwards that give rise to deferred tax assets and liabilities
consist of the following (in millions):
December 31, 2003 2002
Deferred tax assets:
Property, plant and equipment $87$ 227
Trademarks and other intangible assets 68 97
Equity method investments (including translation adjustment) 485 468
Other liabilities 242 123
Benefit plans 669 541
Net operating/capital loss carryforwards 711 663
Other 195 307
Gross deferred tax assets 2,457 2,426
Valuation allowance (630) (738)
Total deferred tax assets1$ 1,827 $ 1,688
Deferred tax liabilities:
Property, plant and equipment $ (737) $ (757)
Trademarks and other intangible assets (247) (135)
Equity method investments (including translation adjustment) (468) (465)
Other liabilities (55) (55)
Other (211) (222)
Total deferred tax liabilities $ (1,718) $ (1,634)
Net deferred tax assets $ 109 $54
1Deferred tax assets of $446 million and $358 million were included in the line item other assets at
December 31, 2003 and 2002, respectively.
On December 31, 2003 and 2002, we had approximately $160 million and $129 million, respectively, of net
deferred tax assets located in countries outside the United States.
On December 31, 2003, we had $2,511 million of loss carryforwards available to reduce future taxable
income. Loss carryforwards of $791 million must be utilized within the next five years; $673 million must be
utilized within the next 10 years; and the remainder can be utilized over an indefinite period.
NOTE 16: SIGNIFICANT OPERATING AND NONOPERATING ITEMS
In the first quarter of 2003, the Company reached a settlement with certain defendants in a vitamin antitrust
litigation matter. In that litigation, the Company alleged that certain vitamin manufacturers participated in a
global conspiracy to fix the price of some vitamins, including vitamins used in the manufacture of some of the
Company’s products. During the first quarter of 2003, the Company received a settlement relating to this
litigation of approximately $52 million on a pretax basis, or $0.01 per share on an after-tax basis. The amount
was recorded as a reduction to cost of goods sold.
Refer to Note 2 for disclosure regarding the merger of Coca-Cola FEMSA and Panamco in 2003 and the
recording of a $102 million noncash pretax charge to the line item equity income—net.
92