------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported) January 27, 1994
Commission File No. 1-2217
The Coca-Cola Company
(Exact name of Registrant as specified in its Charter)
Delaware 58-0628465
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
One Coca-Cola Plaza, N.W. 30313
Atlanta, Georgia (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code (404) 676-2121
---------------------------------------------
<PAGE>
Item 5. Other Events
The Coca-Cola Company and subsidiaries (the "Company") has retroactively
adopted Statement of Financial Accounting Standards No. 112, "Employers'
Accounting for Postemployment Benefits" (SFAS 112) as of January 1, 1993.
Results for the first quarter of 1993 have been restated to include the
recognition of a one-time, noncash, after-tax charge of $12 million related to
consolidated operations. This amount is net of income tax benefits of $8
million. The transition effect charge consists primarily of health benefits
for surviving spouses and disabled employees. The incremental impact of SFAS
112 on 1993 consolidated operations is immaterial and will be included in the
results of operations for the fourth quarter of 1993. The adoption impact of
SFAS 112 on the Company's bottling investees accounted for by the equity method
is immaterial and, therefore, has not been included in the transition effect
charge. Net income per share for the first quarter of 1993 has been reduced by
$0.01 for the adoption of SFAS 112.
2
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits
(c) Exhibits:
99.1 Restated condensed consolidated financial statements (unaudited) of
The Coca-Cola Company and subsidiaries for the three months ended
March 31, 1993.*
99.2 Restated condensed consolidated financial statements (unaudited) of
The Coca-Cola Company and subsidiaries for the three and six months
ended June 30, 1993.*
99.3 Restated condensed consolidated financial statements (unaudited) of
The Coca-Cola Company and subsidiaries for the three and nine months
ended September 30, 1993.*
* The notes to the unaudited condensed consolidated financial
statements originally provided in the Company's 1993 quarterly
reports on Form 10-Q that were not affected by the Company's
adoption of the new accounting standard discussed in Item 5, "Other
Events" have not been included herein.
3
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
THE COCA-COLA COMPANY
(REGISTRANT)
Date: January 27, 1994 By: /s/ James E. Chestnut
-------------------------------------
James E. Chestnut
Vice President and Controller
(On behalf of the Registrant and
as Chief Accounting Officer)
4
<PAGE>
Exhibit Index
Exhibit Number and Description Page
99.1 Restated condensed consolidated financial statements
(unaudited) of The Coca-Cola Company and subsidiaries
for the three months ended March 31, 1993.* 6
99.2 Restated condensed consolidated financial statements
(unaudited) of The Coca-Cola Company and subsidiaries
for the three and six months ended June 30, 1993.* 10
99.3 Restated condensed consolidated financial statements
(unaudited) of The Coca-Cola Company and subsidiaries
for the three and nine months ended September 30, 1993.* 14
* The notes to the unaudited condensed consolidated
financial statements originally provided in the Company's
1993 quarterly reports on Form 10-Q that were not affected
by the Company's adoption of the new accounting standard
discussed in Item 5, "Other Events" have not been included herein.
5
Exhibit 99.1
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions except share data)
ASSETS
<TABLE>
<CAPTION>
March 31,
1993 December 31,
(Restated) 1992
----------- ------------
<S> <C> <C>
Current
Cash and cash equivalents $ 774 $ 956
Marketable securities, at cost 90 107
----------- -----------
864 1,063
Trade accounts receivable, less
allowances of $40 at March 31
and $33 at December 31 1,072 1,055
Finance subsidiary receivables 28 31
Inventories 1,071 1,019
Prepaid expenses and other assets 1,100 1,080
----------- -----------
Total Current Assets 4,135 4,248
----------- -----------
Investments and Other Assets
Investments
Coca-Cola Enterprises Inc. 517 518
Coca-Cola Amatil Limited 570 548
Other, principally bottling companies 1,077 1,097
Finance subsidiary receivables 89 95
Marketable securities and other assets 569 637
----------- -----------
2,822 2,895
----------- -----------
Property, Plant and Equipment
Land 214 203
Buildings and improvements 1,552 1,529
Machinery and equipment 3,203 3,137
Containers 363 374
----------- -----------
5,332 5,243
Less allowances for depreciation 1,755 1,717
----------- -----------
3,577 3,526
----------- -----------
Goodwill and Other Intangible Assets 411 383
----------- -----------
$ 10,945 $ 11,052
=========== ===========
</TABLE>
6
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
LIABILITIES AND SHARE-OWNERS' EQUITY
<TABLE>
<CAPTION>
March 31,
1993 December 31,
(Restated) 1992
---------- ------------
<S> <C> <C>
Current
Accounts payable and accrued expenses $ 2,030 $ 2,253
Loans and notes payable 1,976 1,967
Finance subsidiary notes payable 103 105
Current maturities of long-term debt 11 15
Accrued taxes 1,017 963
----------- -----------
Total Current Liabilities 5,137 5,303
----------- -----------
Long-Term Debt 1,128 1,120
----------- -----------
Other Liabilities 683 659
----------- -----------
Deferred Income Taxes 47 82
----------- -----------
Share-Owners' Equity
Common stock, $.25 par value -
Authorized: 2,800,000,000 shares;
Issued: 1,697,059,216 shares at March 31;
1,696,202,840 shares at December 31 424 424
Capital surplus 893 871
Reinvested earnings 8,386 8,165
Unearned compensation related to
outstanding restricted stock (95) (100)
Foreign currency translation adjustment (350) (271)
----------- -----------
9,258 9,089
Less treasury stock, at cost
(391,989,441 common shares at March 31;
389,431,622 common shares at December 31) 5,308 5,201
----------- -----------
3,950 3,888
----------- -----------
$ 10,945 $ 11,052
=========== ===========
See Note to Condensed Consolidated Financial Statements.
</TABLE>
7
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In millions except per share data)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------
1993
(Restated) 1992
----------- -----------
<S> <C> <C>
Net Operating Revenues $ 3,056 $ 2,772
Cost of goods sold 1,093 1,032
----------- -----------
Gross Profit 1,963 1,740
Selling, administrative and general expenses 1,286 1,166
----------- -----------
Operating Income 677 574
Interest income 35 40
Interest expense 46 42
Equity income 29 8
Other deductions - net 39 17
----------- -----------
Income before Income Taxes and Changes
in Accounting Principles 656 563
Income taxes 202 177
----------- -----------
Income before Changes in
Accounting Principles 454 386
Transition effects of changes in
accounting principles
Postemployment benefits (12) --
Postretirement benefits other than pensions
Consolidated operations -- (146)
Equity investments -- (73)
----------- -----------
Net Income $ 442 $ 167
=========== ===========
Income per Share
Before changes in accounting principles $ .35 $ .29
Transition effects of changes in
accounting principles
Postemployment benefits (.01) --
Postretirement benefits other than pensions
Consolidated operations -- (.11)
Equity investments -- (.05)
----------- -----------
Net Income per Share $ .34 $ .13
=========== ===========
Dividends per Share $ .17 $ .14
=========== ===========
Average Shares Outstanding 1,306 1,327
=========== ===========
See Note to Condensed Consolidated Financial Statements.
</TABLE>
8
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In millions)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------
1993
(Restated) 1992
----------- -----------
<S> <C> <C>
Operating Activities
Net income $ 442 $ 167
Transition effects of changes in
accounting principles 12 219
Depreciation and amortization 88 73
Deferred income taxes 16 2
Equity income, net of dividends (21) (5)
Foreign currency adjustments 8 16
Other noncash items 16 5
Net change in operating assets
and liabilities (302) (408)
----------- -----------
Net cash provided by operating activities 259 69
----------- -----------
Investing Activities
Additions to finance subsidiary receivables (5) (4)
Collections of finance subsidiary
receivables 14 233
Acquisitions and investments (64) (34)
Proceeds from disposals of investments
and other assets 87 35
Decrease (increase) in marketable
securities 15 (22)
Purchases of property, plant and equipment (209) (182)
Proceeds from disposals of property, plant
and equipment 17 21
All other investing activities -- 1
----------- -----------
Net cash provided by (used in) investing
activities (145) 48
----------- -----------
Net cash provided by operations
after reinvestment 114 117
----------- -----------
Financing Activities
Issuances of debt 268 208
Payments of debt (262) (2)
Issuances of stock 15 33
Purchases of stock for treasury (107) (446)
Dividends (200) --
----------- -----------
Net cash used in financing activities (286) (207)
----------- -----------
Effect of Exchange Rate Changes on
Cash and Cash Equivalents (10) (47)
----------- -----------
Cash and Cash Equivalents
Net decrease during the period (182) (137)
Balance at beginning of period 956 1,058
----------- -----------
Balance at end of period $ 774 $ 921
=========== ===========
Interest Paid $ 59 $ 50
=========== ===========
Income Taxes Paid $ 178 $ 270
=========== ===========
See Note to Condensed Consolidated Financial Statements.
</TABLE>
9
Exhibit 99.2
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions except share data)
ASSETS
<TABLE>
<CAPTION>
June 30,
1993 December 31,
(Restated) 1992
----------- ------------
<S> <C> <C>
Current
Cash and cash equivalents $ 933 $ 956
Marketable securities, at cost 147 107
----------- -----------
1,080 1,063
Trade accounts receivable, less
allowances of $37 at June 30
and $33 at December 31 1,351 1,055
Finance subsidiary receivables 32 31
Inventories 1,115 1,019
Prepaid expenses and other assets 1,298 1,080
----------- -----------
Total Current Assets 4,876 4,248
----------- -----------
Investments and Other Assets
Investments
Coca-Cola Enterprises Inc. 516 518
Coca-Cola Amatil Limited 554 548
Other, principally bottling companies 1,086 1,097
Finance subsidiary receivables 97 95
Marketable securities and other assets 554 637
----------- -----------
2,807 2,895
----------- -----------
Property, Plant and Equipment
Land 224 203
Buildings and improvements 1,614 1,529
Machinery and equipment 3,333 3,137
Containers 374 374
----------- -----------
5,545 5,243
Less allowances for depreciation 1,816 1,717
----------- -----------
3,729 3,526
----------- -----------
Goodwill and Other Intangible Assets 436 383
----------- -----------
$ 11,848 $ 11,052
=========== ===========
</TABLE>
10
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
LIABILITIES AND SHARE-OWNERS' EQUITY
<TABLE>
<CAPTION>
June 30,
1993 December 31,
(Restated) 1992
---------- ------------
<S> <C> <C>
Current
Accounts payable and accrued expenses $ 2,219 $ 2,253
Loans and notes payable 2,196 1,967
Finance subsidiary notes payable 116 105
Current maturities of long-term debt 11 15
Accrued taxes 1,169 963
----------- -----------
Total Current Liabilities 5,711 5,303
----------- -----------
Long-Term Debt 1,163 1,120
----------- -----------
Other Liabilities 700 659
----------- -----------
Deferred Income Taxes 28 82
----------- -----------
Share-Owners' Equity
Common stock, $.25 par value -
Authorized: 2,800,000,000 shares;
Issued: 1,701,470,836 shares at June 30;
1,696,202,840 shares at December 31 425 424
Capital surplus 1,034 871
Reinvested earnings 8,843 8,165
Unearned compensation related to
outstanding restricted stock (91) (100)
Foreign currency translation adjustment (328) (271)
----------- -----------
9,883 9,089
Less treasury stock, at cost
(400,372,136 common shares at June 30;
389,431,622 common shares at December 31) 5,637 5,201
----------- -----------
4,246 3,888
----------- -----------
$ 11,848 $ 11,052
=========== ===========
See Note to Condensed Consolidated Financial Statements.
</TABLE>
11
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In millions except per share data)
<TABLE>
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
1993
1993 1992 (Restated) 1992
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net Operating Revenues $ 3,899 $ 3,550 $ 6,955 $ 6,322
Cost of goods sold 1,464 1,373 2,557 2,405
---------- ---------- ---------- ----------
Gross Profit 2,435 2,177 4,398 3,917
Selling, administrative
and general expenses 1,476 1,345 2,762 2,511
---------- ---------- ---------- ----------
Operating Income 959 832 1,636 1,406
Interest income 32 33 67 73
Interest expense 40 44 86 86
Equity income 39 15 68 23
Other deductions - net 10 12 49 29
---------- ---------- ---------- ----------
Income before Income
Taxes and Changes in
Accounting Principles 980 824 1,636 1,387
Income taxes 302 259 504 436
---------- ---------- ---------- ----------
Income before Changes
in Accounting
Principles 678 565 1,132 951
Transition effects of
changes in accounting
principles
Postemployment benefits -- -- (12) --
Postretirement benefits
other than pensions
Consolidated
operations -- -- -- (146)
Equity investments -- -- -- (73)
---------- ---------- ---------- ----------
Net Income $ 678 $ 565 $ 1,120 $ 732
========== ========== ========== ==========
Income per Share
Before changes in
accounting principles $ .52 $ .43 $ .87 $ .72
Transition effects of
changes in accounting
principles
Postemployment benefits -- -- (.01) --
Postretirement benefits
other than pensions
Consolidated
operations -- -- -- (.11)
Equity investments -- -- -- (.06)
---------- ---------- ---------- ----------
Net Income per Share $ .52 $ .43 $ .86 $ .55
========== ========== ========== ==========
Dividends per Share $ .17 $ .14 $ .34 $ .28
========== ========== ========== ==========
Average Shares
Outstanding 1,303 1,318 1,304 1,322
========== ========== ========== ==========
See Note to Condensed Consolidated Financial Statements.
</TABLE>
12
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In millions)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
-----------------------
1993
(Restated) 1992
----------- -----------
<S> <C> <C>
Operating Activities
Net income $ 1,120 $ 732
Transition effects of changes in
accounting principles 12 219
Depreciation and amortization 173 160
Deferred income taxes (19) (34)
Equity income, net of dividends (36) (7)
Foreign currency adjustments (10) 4
Other noncash items 12 15
Net change in operating assets and
liabilities (242) (490)
----------- -----------
Net cash provided by operating activities 1,010 599
----------- -----------
Investing Activities
Additions to finance subsidiary receivables (26) (8)
Collections of finance subsidiary
receivables 23 243
Acquisitions and investments (430) (169)
Proceeds from disposals of investments
and other assets 399 38
Increase in marketable securities (42) (24)
Purchases of property, plant and equipment (398) (402)
Proceeds from disposals of property, plant
and equipment 24 81
All other investing activities (14) 1
----------- -----------
Net cash used in investing activities (464) (240)
----------- -----------
Net cash provided by operations
after reinvestment 546 359
----------- -----------
Financing Activities
Issuances of debt 436 540
Payments of debt (267) (92)
Issuances of stock 121 41
Purchases of stock for treasury (436) (704)
Dividends (422) (185)
----------- -----------
Net cash used in financing activities (568) (400)
----------- -----------
Effect of Exchange Rate Changes on Cash
and Cash Equivalents (1) (30)
----------- -----------
Cash and Cash Equivalents
Net decrease during the period (23) (71)
Balance at beginning of period 956 1,058
----------- -----------
Balance at end of period $ 933 $ 987
=========== ===========
Interest Paid $ 96 $ 89
=========== ===========
Income Taxes Paid $ 314 $ 581
=========== ===========
See Note to Condensed Consolidated Financial Statements.
</TABLE>
13
Exhibit 99.3
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In millions except share data)
ASSETS
<TABLE>
<CAPTION>
September 30,
1993 December 31,
(Restated) 1992
------------ -----------
<S> <C> <C>
Current
Cash and cash equivalents $ 1,040 $ 956
Marketable securities, at cost 149 107
----------- -----------
1,189 1,063
Trade accounts receivable, less
allowances of $38 at September 30
and $33 at December 31 1,151 1,055
Finance subsidiary receivables 46 31
Inventories 1,078 1,019
Prepaid expenses and other assets 988 1,080
----------- -----------
Total Current Assets 4,452 4,248
----------- -----------
Investments and Other Assets
Investments
Coca-Cola Enterprises Inc. 497 518
Coca-Cola Amatil Limited 539 548
Other, principally bottling companies 1,170 1,097
Finance subsidiary receivables 200 95
Marketable securities and other assets 657 637
----------- -----------
3,063 2,895
----------- -----------
Property, Plant and Equipment
Land 218 203
Buildings and improvements 1,573 1,529
Machinery and equipment 3,389 3,137
Containers 371 374
----------- -----------
5,551 5,243
Less allowances for depreciation 1,840 1,717
----------- -----------
3,711 3,526
----------- -----------
Goodwill and Other Intangible Assets 439 383
----------- -----------
$ 11,665 $ 11,052
=========== ===========
</TABLE>
14
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
LIABILITIES AND SHARE-OWNERS' EQUITY
<TABLE>
<CAPTION>
September 30,
1993 December 31,
(Restated) 1992
------------- ------------
<S> <C> <C>
Current
Accounts payable and accrued expenses $ 2,138 $ 2,253
Loans and notes payable 1,387 1,967
Finance subsidiary notes payable 233 105
Current maturities of long-term debt 12 15
Accrued taxes 1,160 963
----------- -----------
Total Current Liabilities 4,930 5,303
----------- -----------
Long-Term Debt 1,479 1,120
----------- -----------
Other Liabilities 712 659
----------- -----------
Deferred Income Taxes 62 82
----------- -----------
Share-Owners' Equity
Common stock, $.25 par value -
Authorized: 2,800,000,000 shares;
Issued: 1,702,309,902 shares at September
30; 1,696,202,840 shares at December 31 426 424
Capital surplus 1,050 871
Reinvested earnings 9,211 8,165
Unearned compensation related to
outstanding restricted stock (85) (100)
Foreign currency translation adjustment (357) (271)
----------- -----------
10,245 9,089
Less treasury stock, at cost
(403,274,643 common shares at September
30; 389,431,622 common shares at
December 31) 5,763 5,201
----------- -----------
4,482 3,888
----------- -----------
$ 11,665 $ 11,052
=========== ===========
See Note to Condensed Consolidated Financial Statements.
</TABLE>
15
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(In millions except per share data)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30, Ended September 30,
------------------------ ------------------------
1993
1993 1992 (Restated) 1992
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net Operating Revenues $ 3,629 $ 3,508 $ 10,584 $ 9,830
Cost of goods sold 1,343 1,386 3,900 3,791
---------- ---------- ---------- ----------
Gross Profit 2,286 2,122 6,684 6,039
Selling, administrative
and general expenses 1,457 1,356 4,219 3,867
---------- ---------- ---------- ----------
Operating Income 829 766 2,465 2,172
Interest income 38 47 105 120
Interest expense 38 42 124 128
Equity income 24 34 92 57
Other income
(deductions) - net 17 (18) (32) (47)
---------- ---------- ---------- ----------
Income before Income
Taxes and Changes in
Accounting Principles 870 787 2,506 2,174
Income taxes 280 247 784 683
---------- ---------- ---------- ----------
Income before Changes
in Accounting
Principles 590 540 1,722 1,491
Transition effects of
changes in accounting
principles
Postemployment benefits -- -- (12) --
Postretirement benefits
other than pensions
Consolidated
operations -- -- -- (146)
Equity investments -- -- -- (73)
---------- ---------- ---------- ----------
Net Income $ 590 $ 540 $ 1,710 $ 1,272
========== ========== ========== ==========
Income per Share
Before changes in
accounting principles $ .45 $ .41 $ 1.32 $ 1.13
Transition effects of
changes in accounting
principles
Postemployment benefits -- -- (.01) --
Postretirement benefits
other than pensions
Consolidated
operations -- -- -- (.11)
Equity investments -- -- -- (.06)
---------- ---------- ---------- ----------
Net Income per Share $ .45 $ .41 $ 1.31 $ .96
========== ========== ========== ==========
Dividends per Share $ .17 $ .14 $ .51 $ .42
========== ========== ========== ==========
Average Shares
Outstanding 1,300 1,314 1,303 1,319
========== ========== ========== ==========
See Note to Condensed Consolidated Financial Statements.
</TABLE>
16
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In millions)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-----------------------
1993
(Restated) 1992
----------- -----------
<S> <C> <C>
Operating Activities
Net income $ 1,710 $ 1,272
Transition effects of changes in accounting
principles 12 219
Depreciation and amortization 263 249
Deferred income taxes 19 (9)
Equity income, net of dividends (44) (35)
Foreign currency adjustments (7) (9)
Other noncash items 33 22
Net change in operating assets and
liabilities (108) (257)
----------- -----------
Net cash provided by operating activities 1,878 1,452
----------- -----------
Investing Activities
Additions to finance subsidiary receivables (157) (33)
Collections of finance subsidiary receivables 36 249
Acquisitions and investments (568) (247)
Proceeds from disposals of investments
and other assets 645 67
Increase in current marketable securities (43) (21)
Purchases of property, plant and equipment (582) (743)
Proceeds from disposals of property, plant
and equipment 129 87
All other investing activities (40) 1
----------- -----------
Net cash used in investing activities (580) (640)
----------- -----------
Net cash provided by operations after
reinvestment 1,298 812
----------- -----------
Financing Activities
Issuances of debt 424 385
Payments of debt (561) (227)
Issuances of stock 138 59
Purchases of stock for treasury (562) (859)
Dividends (643) (369)
----------- -----------
Net cash used in financing activities (1,204) (1,011)
----------- -----------
Effect of Exchange Rate Changes on Cash
and Cash Equivalents (10) (18)
----------- -----------
Cash and Cash Equivalents
Net increase (decrease) during the period 84 (217)
Balance at beginning of period 956 1,058
----------- -----------
Balance at end of period $ 1,040 $ 841
=========== ===========
Interest Paid $ 150 $ 137
=========== ===========
Income Taxes Paid $ 489 $ 790
=========== ===========
See Note to Condensed Consolidated Financial Statements.
</TABLE>
17
<PAGE>
THE COCA-COLA COMPANY AND SUBSIDIARIES
NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Note - Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. They do not include all information and notes
required by generally accepted accounting principles for complete financial
statements. However, except as disclosed herein, there has been no material
change in the information disclosed in the notes to consolidated financial
statements included in the Annual Report on Form 10-K of The Coca-Cola Company
(the Company) for the year ended December 31, 1992. In the opinion of
Management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the quarterly and year-to-date periods ended March 31, 1993, June
30, 1993, and September 30, 1993 are not necessarily indicative of the results
that may be expected for the year ending December 31, 1993.
The Company filed a Form 8-K on February 17, 1993 restating the 1992
quarterly reports for the adoption of Statement of Financial Accounting
Standards No. 106, "Employers' Accounting for Postretirement Benefits Other
Than Pensions" (SFAS 106) and Statement of Financial Accounting Standards No.
109, "Accounting for Income Taxes" (SFAS 109). The impact of the restatement
on the first quarter of 1992 includes the after-tax transition charge of $219
million related to SFAS 106.
The Company retroactively adopted SFAS 109 by restating financial statements
beginning in 1989. The effect of SFAS 109 for the first three quarters of 1992
for consolidated operations was not material. However, the income statements
for the first, second and third quarters of 1992 have been restated for the
impact of SFAS 109 on the Company's equity investees. Equity income has been
increased by $12 million in the first quarter of 1992, reduced by $15 million
in the second quarter of 1992 and increased by $6 million in the third quarter
of 1992 for the impact of SFAS 109 on the Company's equity investees. Equity
income was reduced $3 million in each of the first, second and third quarters
of 1992 for the Company's proportionate share of additional postretirement
benefits expense recognized by the Company's equity investees after transition
to SFAS 106.
18
<PAGE>
The Company has retroactively adopted Statement of Financial Accounting
Standards No. 112, "Employers' Accounting for Postemployment Benefits" (SFAS
112) as of January 1, 1993. Results for the first quarter of 1993 have been
restated to include the recognition of a one-time, noncash, after-tax charge of
$12 million related to consolidated operations. This amount is net of income
tax benefits of $8 million. The transition effect charge consists primarily of
health benefits for surviving spouses and disabled employees. The incremental
impact of SFAS 112 on 1993 consolidated operations is immaterial and will be
included in the results of operations for the fourth quarter of 1993. The
adoption impact of SFAS 112 on the Company's bottling investees accounted for
by the equity method is immaterial and, therefore, has not been included in the
transition effect charge. Net income per share for the first quarter of 1993
has been reduced by $0.01 for the adoption of SFAS 112.
19
