The Coca-Cola Company :: 2005 Annual Review

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2005 Annual Report on
Form 10-K

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Net Income Per Share   Operating Income
(in millions)
2003 = $1.77, 2004 = $2.00, 2005 = $2.04   2003 = $5,221, 2004 = $5,698, 2005 = $6,085

Financial Highlights
Year ended December 31, 2005 2004 Percent Change
(in millions except per share data, percent change and unit case volume)
Net operating revenues $ 23,104 $ 21,742 6%
Operating income $ 6,085 $ 5,698 7%
Net income $ 4,872 $ 4,847 1%
Net income per share (basic and diluted) $ 2.041 $ 2.002 2%
Net cash provided by operating activities $ 6,423 $ 5,968 8%
Dividends paid $ 2,678 $ 2,429 10%
Share repurchase activity $ 2,019 $ 1,754 15%
Unit case volume (in billions)      
International operations 14.8 14.1 5%
North America operations 5.8 5.7 2%
Worldwide 20.6 19.8 4%


1 2005 basic and diluted net income per share included a net decrease of $0.13 as a result of the following items: a $0.13 per share decrease related to taxes recorded on the repatriation of previously unremitted foreign earnings under the American Jobs Creation Act; a $0.04 per share decrease related to impairment charges from write-downs of certain trademarks; a $0.02 per share decrease related to a change in an estimate used in accounting for stock-based compensation awards; a $0.01 per share decrease related to the Company's proportionate share of significant nonoperating items at one of our equity method investees, Coca-Cola Enterprises Inc. (CCE); a $0.04 per share increase related to reversals of previously accrued taxes resulting from favorable resolution of tax matters; a $0.01 per share increase related to the settlement of a class-action lawsuit concerning price fixing by one of the Company's vendors; and a $0.01 per share increase related to gains on issuances of stock by one of our Company's equity method investees, Coca-Cola Amatil Limited. Per share amounts do not add due to rounding.
2 2004 basic and diluted net income per share included a net decrease of $0.06 as a result of the following items: a $0.13 per share decrease related to impairment charges from write-downs of certain manufacturing investments, an intangible asset, and franchise rights; a $0.03 per share decrease related to the recognition of a valuation allowance on certain deferred taxes of Coca-Cola Erfrischungsgetränke AG; a $0.02 per share decrease related to a donation to The Coca-Cola Foundation; a $0.05 per share increase related to reversals of previously accrued taxes resulting from favorable resolution of tax matters; a $0.02 per share increase resulting from the realization of certain tax credits related to new tax legislation; a $0.02 per share increase due to an insurance settlement related to the class-action lawsuit that was settled in 2000; a $0.01 per share increase for the Company's proportionate share of a favorable tax settlement related to one of our equity method investees, Coca-Cola FEMSA, S.A. de C.V.; and a $0.01 per share increase related to gains on issuances of stock by CCE. Per share amounts do not add due to rounding.

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