coca cola reconciliation of q2 and ytd 2007 non-gaap financial measures

Asset Impairments/Restructuring

Equity Investees

Gains on Sales of Assets

Certain Tax Matters (1)

Net Operating Revenues $7,733 $7,733 19 (2) 19

Cost of goods sold 2,736 ($6) 2,730 30 29

Gross Profit 4,997 6 5,003 14 15

Selling, general and administrative expenses 2,685 2,685 17 17

Other operating charges 42 (42) - -- --

Operating Income (3) 2,270 48 2,318 11 12

Interest income 54 54 15 15

Interest expense 102 102 62 62

Equity income - net 190 $89 279 (25) 21

Other income (loss) - net (4) $1 (3) -- --

Income Before Income Taxes 2,408 48 89 1 2,546 1 12

Income taxes 557 12 26 - ($30) 565 0 3

Net Income $1,851 $36 $63 $1 $30 $1,981 1 14

Diluted Net Income Per Share $0.80 $0.02 $0.03 $0.00 $0.01 $0.85 (4) 3 15

Average Shares Outstanding - Diluted 2,326 2,326 2,326 2,326 2,326 2,326

Gross Margin 64.6% 64.7%Operating Margin 29.4% 30.0%Effective Tax Rate 23.1% 22.2%


Equity Investee

Transaction Gains


Net Operating Revenues $6,476 $6,476

Cost of goods sold 2,110 2,110

Gross Profit 4,366 4,366

Selling, general and administrative expenses 2,296 2,296

Other operating charges 31 ($31) -

Operating Income 2,039 31 2,070

Interest income 47 47

Interest expense 63 63

Equity income - net 252 ($21) 231

Other income (loss) - net 116 ($123) (7)

Income Before Income Taxes 2,391 31 (21) (123) 2,278

Income taxes 555 1 (2) 14 ($22) 546

Net Income $1,836 $30 ($19) ($137) $22 $1,732

Diluted Net Income Per Share $0.78 $0.01 ($0.01) ($0.06) $0.01 $0.74 (4)



Note: Items to consider for comparability include primarily charges, gains, and accounting changes. Charges and accounting changes negatively impacting net income are reflected as increases to reported net income. Gains and accounting changes positively impacting net income are reflected as deductions to reported net income.

(1) Primarily related to changes in reserves related to certain tax matters.

(2) Net operating revenues excluding structural changes:2007 2006 % Change

Reported net operating revenues $7,733 $6,476 19% Structural changes (474) -- -- Net operating revenues excluding structural changes $7,259 $6,476 12%

(3) Operating income for the three months ended June 29, 2007 includes a positive currency impact of approximately 3%. Ongoing, currency neutral operating income growth is 9%.

(4) Per share amounts do not add due to rounding.

(In millions except per share data)

Three Months Ended June 29, 2007

The Company reports its financial results in accordance with U. S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current resultsand results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trendsof the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also usesthese non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table below forsupplemental financial data and corresponding reconciliations to GAAP financial measures for the three months ended June 29, 2007 and June 30, 2006. Non-GAAPfinancial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

THE COCA-COLA COMPANY AND SUBSIDIARIESReconciliation of GAAP to Non-GAAP Financial Measures

(UNAUDITED)

% Change - Reported (GAAP)

% Change - After

Considering Items

(Non-GAAP)Reported (GAAP)

After Considering

Items(Non-GAAP)

Reported (GAAP)

Items Impacting Comparability

Three Months Ended June 30, 2006Items Impacting Comparability

After Considering

Items(Non-GAAP)

of 4


Equity Investees

Gains on Sales of Assets


Net Operating Revenues $13,836 $13,836 18 18

Cost of goods sold 4,881 ($10) 4,871 27 27

Gross Profit 8,955 10 8,965 14 14

Selling, general and administrative expenses 5,010 5,010 15 15

Other operating charges 48 (48) - -- --

Operating Income (2) 3,897 58 3,955 13 13

Interest income 91 91 (22) (22)

Interest expense 173 173 37 37

Equity income - net 210 $162 372 (38) 14

Other income (loss) - net 112 ($136) (24) -- --

Income Before Income Taxes 4,137 58 162 (136) 4,221 7 11

Income taxes 1,024 14 26 (73) ($41) 950 11 4

Net Income $3,113 $44 $136 ($63) $41 $3,271 6 13

Diluted Net Income Per Share $1.34 $0.02 $0.06 ($0.03) $0.02 $1.41 7 15




Equity Investee

Transaction Gains


Net Operating Revenues $11,702 $11,702

Cost of goods sold 3,836 3,836

Gross Profit 7,866 7,866

Selling, general and administrative expenses 4,356 4,356

Other operating charges 76 ($76) -

Operating Income 3,434 76 3,510

Interest income 117 117

Interest expense 126 126

Equity income - net 338 ($12) 326

Other income (loss) - net 103 ($123) (20)

Income Before Income Taxes 3,866 76 (12) (123) 3,807

Income taxes 924 8 (1) 14 ($32) 913

Net Income $2,942 $68 ($11) ($137) $32 $2,894

Diluted Net Income Per Share $1.25 $0.03 $0.00 ($0.06) $0.01 $1.23



Note: Items to consider for comparability include primarily charges, gains, and accounting changes. Charges and accounting changes negatively impacting net income are reflected as increases to reported net income. Gains and accounting changes positively impacting net income are reflected as deductions to reported net income.

(1) Primarily related to changes in reserves related to certain tax matters.

(2) Operating income for the six months ended June 29, 2007 includes a positive currency impact of approximately 3%. Ongoing, currency neutral operating income growth is 10%.

% Change - After

Considering Items

(Non-GAAP)Reported (GAAP)

After Considering

Items(Non-GAAP)

The Company reports its financial results in accordance with U. S. generally accepted accounting principles (GAAP). However, management believes thatcertain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons betweencurrent results and results in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflectionof underlying trends of the business because they provide a comparison of historical information that excludes certain items that impact the overall comparability.Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company'sperformance. See the Table below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the six months ended June29, 2007 and June 30, 2006. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported resultsprepared in accordance with GAAP.


(In millions except per share data)

Six Months Ended June 29, 2007


(UNAUDITED)

Six Months Ended June 30, 2006Items Impacting Comparability

After Considering

Items(Non-GAAP)

% Change - Reported (GAAP)

Reported (GAAP)

of 4





% Favorable (Unfavorable) -

Reported (GAAP)


After Considering Items

(Non-GAAP)

Africa $79 $18 $97 $87 $87 (9) 11

Eurasia 162 162 126 126 29 29European Union 829 5 834 687 $27 714 21 17Latin America 413 2 415 346 346 19 20North America 500 500 493 493 1 1Pacific 506 1 507 492 2 494 3 3Bottling Investments 75 23 98 87 2 89 (14) 10Corporate (294) (1) (295) (279) (279) (5) (6)Consolidated $2,270 $48 $2,318 $2,039 $31 $2,070 11 12

The Company reports its financial results in accordance with U. S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results andresults in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of thebusiness because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table below for supplementalfinancial data and corresponding reconciliations to GAAP financial measures for the three months ended June 29, 2007 and June 30, 2006. Non-GAAP financialmeasures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

Reported (GAAP)

After Considering

Items (Non-GAAP)

Reported (GAAP)

After Considering

Items (Non-GAAP)

(UNAUDITED)(In millions)


Three Months Ended June 30, 2006Three Months Ended June 29, 2007

Operating Income (Loss) by Segment

of 4






Reported (GAAP)


After Considering Items

(Non-GAAP)

Africa $191 $20 $211 $190 $190 1 11

Eurasia 249 249 190 190 31 31European Union 1,433 5 1,438 1,142 $27 1,169 25 23Latin America 828 2 830 695 695 19 19North America 847 847 881 881 (4) (4)Pacific 878 1 879 855 5 860 3 2Bottling Investments 73 29 102 30 44 74 143 38Corporate (602) 1 (601) (549) (549) (10) (9)Consolidated $3,897 $58 $3,955 $3,434 $76 $3,510 13 13

Six Months Ended June 30, 2006Six Months Ended June 29, 2007

Operating Income (Loss) by Segment

The Company reports its financial results in accordance with U. S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures used in managing the business may provide users of this financial information additional meaningful comparisons between current results andresults in prior operating periods. Management believes that these non-GAAP financial measures can provide additional meaningful reflection of underlying trends of thebusiness because they provide a comparison of historical information that excludes certain items that impact the overall comparability. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company's performance. See the Table below for supplementalfinancial data and corresponding reconciliations to GAAP financial measures for the six months ended June 29, 2007 and June 30, 2006. Non-GAAP financial measuresshould be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP.

Reported (GAAP)

After Considering

Items (Non-GAAP)

Reported (GAAP)

After Considering

Items (Non-GAAP)

(UNAUDITED)(In millions)


of 4

coca cola reconciliation of q2 and ytd 2007 non-gaap financial measures

Economy & Finance