Coca Cola 2004 Annual Report Download - page 51

Cash flows from operating activities increased by 9 percent for 2004 compared to 2003. The key component
was increased profits in 2004 versus 2003. The following items also significantly impacted cash flows provided by
operating activities:
• In 2004, net income included noncash charges of approximately $480 million. Refer to the heading
‘‘Other Operating Charges.’’
• Funding of our primary qualified U.S. pension plan was approximately $139 million in 2004 compared to
approximately $166 million in 2003.
• In 2004, payments related to streamlining initiatives of approximately $157 million impacted cash flows
from operations.
Cash flows from operating activities increased by 15 percent for 2003 compared to 2002. The key
component was increased profits in 2003 versus 2002. The following items also significantly impacted cash flows
provided by operating activities:
• Collection by the Company in 2002 of approximately $280 million, in connection with the Advanced
Pricing Agreement (‘‘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.
Purchases of property, plant and equipment accounted for the most significant cash outlays for investing
activities in each of the three years ended December 31, 2004. Our Company currently estimates that purchases
of property, plant and equipment in 2005 will be less than $1 billion.
Total capital expenditures for property, plant and equipment (including our investments in information
technology) and the percentage of such totals by operating segment for 2004, 2003 and 2002 are as follows:
Year Ended December 31, 2004 2003 2002
Capital expenditures (in millions) $ 755 $ 812 $ 851
North America 32.7% 38.1% 39.2%
Africa 3.7% 1.6% 2.1%
Asia 12.2% 18.2% 24.6%
Europe, Eurasia and Middle East 30.9% 24.4% 19.0%
Latin America 5.0% 4.3% 4.3%
Corporate 15.5% 13.4% 10.8%
In 2004, proceeds from disposals of property, plant and equipment of approximately $341 million related
primarily to cash received from the sale of production assets in Japan. Refer to Note 2.
Acquisitions and investments represented the next most significant investing activity, accounting for
$267 million in 2004, $359 million in 2003 and $544 million in 2002. In 2004, cash payments for our acquisition
items related primarily to the purchase of trademarks in Latin America.
In 2003, our single largest acquisition requiring the use of cash was the purchase of a 100 percent ownership
interest in Truesdale Packaging Company LLC (‘‘Truesdale’’) from CCE for cash consideration of approximately
$58 million. Truesdale owns a noncarbonated beverage production facility. In 2003, acquisitions of intangible
assets totaled approximately $142 million. Of this amount, approximately $88 million related to the Company’s
acquisition of certain intangible assets with indefinite lives, primarily trademarks and brands in various parts of
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