Coca Cola 2004 Annual Report Download - page 120

Quarterly Data (Unaudited)
First Second Third Fourth
Year Ended December 31, Quarter Quarter Quarter Quarter Full Year
(In millions, except per share data)
2004
Net operating revenues $ 5,078 $ 5,965 $ 5,662 $ 5,257 $ 21,962
Gross profit 3,325 3,935 3,610 3,454 14,324
Net income 1,127 1,584 935 1,201 4,847
Basic net income per share: $ 0.46 $ 0.65 $ 0.39 $ 0.50 $ 2.00
Diluted net income per share: $ 0.46 $ 0.65 $ 0.39 $ 0.50 $ 2.00
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
In the first quarter of 2004 as compared to the first quarter of 2003, the results were impacted by four additional
shipping days. The increase in shipping days in the first quarter were largely offset in the fourth quarter of 2004.
In the second quarter of 2004, our Company’s equity income benefited by approximately $37 million for our
proportionate share of a favorable tax settlement related to Coca-Cola FEMSA. Refer to Note 2.
In the second quarter of 2004, our Company recorded impairment charges totaling approximately $88 million primarily
related to write-downs of certain manufacturing investments and an intangible asset. Refer to Note 16.
In the second quarter of 2004, our Company recorded approximately $49 million of noncash pretax gains on issuances
of stock by CCE. Refer to Note 3.
In the second quarter of 2004, our Company recorded an income tax benefit of approximately $41 million related to
the reversal of previously accrued taxes resulting from a favorable agreement with authorities. Refer to Note 15.
In the third quarter of 2004, our Company recorded an income tax benefit of approximately $39 million related to the
reversal of previously accrued taxes resulting from favorable resolution of tax matters. Refer to Note 15.
In the third quarter of 2004, our Company recorded an income tax expense of approximately $75 million related to the
recognition of a valuation allowance on certain deferred taxes of CCEAG. Refer to Note 15.
In the third quarter of 2004, our Company recorded impairment charges totaling approximately $392 million primarily
related to franchise rights at CCEAG. Refer to Note 16.
In the fourth quarter of 2004, our Company received a $75 million insurance settlement related to the class-action
lawsuit that was settled in 2000. Also in the fourth quarter of 2004, the Company donated $75 million to the Coca-Cola
Foundation. Refer to Note 16.
In the fourth quarter of 2004, our Company recorded an income tax benefit of approximately $48 million related to the
reversal of previously accrued taxes resulting from favorable resolution of tax matters. Refer to Note 15.
In the fourth quarter of 2004, our Company recorded an income tax benefit of approximately $50 million related to the
realization of certain foreign tax credits per provisions of the Jobs Creation Act. Refer to Note 15.
In the fourth quarter of 2004, our Company recorded approximately $25 million of noncash pretax losses to adjust the
amount of the gain recognized in the second quarter of 2004 on issuances of stock by CCE. Refer to Note 3.
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, 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.
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