Financial Highlights

Year Ended December 31,   2006     2005   Percent Change
(in millions except per share data and percent change)
 
Net operating revenues $  24,088 $  23,104 4%
Operating income $ 6,308 $ 6,085 4%
Net income $ 5,080 $ 4,872 4%
Net income per share (basic and diluted) $ 2.161 $ 2.042 6%
Net cash provided by operating activities $ 5,957 $ 6,423 (7%)
Dividends paid $ 2,911 $ 2,678 9%
Share repurchase activity $ 2,474 $ 2,019 23%
 
Unit case volume (in billions)  
   International operations
15.6
14.8
6%3
   North America operations
5.8
5.8
0%
   Worldwide
21.4
20.6
4%

1   2006 basic and diluted net income per share included a net decrease of $0.21 per share as a result of the following items: a $0.23 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 $0.07 per share decrease due to contract termination costs related to production capacity efficiencies, asset impairments and other restructuring costs; a $0.03 per share decrease related to a donation made to The Coca-Cola Foundation; a $0.01 per share decrease due to changes in reserves related to certain tax matters; and a $0.13 per share increase related to the sale of Coca-Cola FEMSA, S.A.B. de C.V. shares and the sale of a portion of our investment in Coca-Cola Icecek A.S. in an initial public offering.
2   2005 basic and diluted net income per share included a net decrease of $0.13 per share 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 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.
3   Percent change is calculated using full figures.

As used in this report, "sparkling beverages" means nonalcoholic ready-to-drink beverages with carbonation. "Still beverages" means nonalcoholic beverages without carbonation.
2006 Annual Review