Coca Cola 2005 Annual Report Download - page 122

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Quarterly Data (Unaudited)
First Second Third Fourth
Year Ended December 31, Quarter Quarter Quarter Quarter Full Year
(In millions, except per share data)
2005
Net operating revenues $ 5,206 $ 6,310 $ 6,037 $ 5,551 $ 23,104
Gross profit 3,388 4,164 3,802 3,555 14,909
Net income 1,002 1,723 1,283 864 4,872
Basic net income per share $ 0.42 $ 0.72 $ 0.54 $ 0.36 $ 2.04
Diluted net income per share $ 0.42 $ 0.72 $ 0.54 $ 0.36 $ 2.04
2004
Net operating revenues $ 5,028 $ 5,914 $ 5,596 $ 5,204 $ 21,742
Gross profit 3,267 3,875 3,535 3,391 14,068
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
Our reporting period ends on the Friday closest to the last day of the quarterly calendar period. Our fiscal
year ends on December 31 regardless of the day of the week on which December 31 falls.
Certain amounts previously reported in our 2005 and 2004 Quarterly Reports on Form 10-Q were
reclassified to conform to our year-end presentation.
The Company’s first quarter of 2005 results were impacted by two fewer shipping days as compared to the
first quarter of 2004. Additionally, the Company recorded the following transactions which impacted results:
• Provision for taxes on unremitted foreign earnings of approximately $152 million. Refer to Note 16.
• Approximately $22 million of noncash pretax gains on issuances of stock by Coca-Cola Amatil in connection with the
acquisition of SPC Ardmona Pty. Ltd., an Australian fruit company. Refer to Note 3.
• An income tax benefit of approximately $56 million related to the reversal of previously accrued taxes resulting from
favorable resolution of tax matters. Refer to Note 16.
• Approximately $50 million of accelerated amortization of stock-based compensation expense related to a change in
our estimated service period for retirement-eligible participants. Refer to Note 14.
In the second quarter of 2005, the Company recorded the following transactions which impacted results:
• The receipt of approximately $42 million related to the settlement of a class action lawsuit concerning the purchase
of HFCS. Refer to Note 17.
• An approximate $21 million benefit to equity income for our proportionate share of CCE’s HFCS lawsuit
settlement. Refer to Note 2.
• An income tax benefit of approximately $17 million related to the reversal of previously accrued taxes resulting from
favorable resolution of tax matters. Refer to Note 16.
• An income tax benefit of approximately $25 million as a result of additional guidance issued by the United States
Internal Revenue Service and the United States Department of Treasury related to the Jobs Creation Act. Refer to
Note 16.
In the third quarter of 2005, the Company recorded the following transactions which impacted results:
• Approximately $89 million of impairment charges primarily related to intangible assets (mainly trademark beverages
sold in the Philippines market). Approximately $85 million and $4 million of these impairment charges are recorded
in the line items other operating charges and equity income — net, respectively, in our consolidated statements of
income. Refer to Note 17.
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