Financial Overview

Unit Case Volume (in billions): 2004, 19.8; 2005, 20.6; 2006, 21.4; 2007, 22.7; 2008, 23.7

Net Operating Revenues (in millions): 2004, $21,742; 2005 $23,104; 2006, $24,088: 2007, $28,857; 2008, $31,944

Operating income (in millions): 2004, $5,698; 2005, $6,085; 2006, $6,308; 2007, $7,252; 2008, $8,446

Operating Cash Flow (in millions): 2004, $5,968; 2005, $6,423; 2006, $5,957; 2007, $7,150; 2008, $7,571

Unit Case Data
Year Ended December 31,		2008		2007		2006		2005		2004

Unit Case Volume (in billions)		23.7		22.7		21.4		20.6		19.8
Selected Financial Data
Year Ended December 31,		2008		2007¹		2006²		2005³		2004^3,4

(in millions except per share data)

SUMMARY OF OPERATIONS
Net operating revenues	$	31,944	$	28,857	$	24,088	$	23,104	$	21,742
Cost of goods sold		11,374		10,406		8,164		8,195		7,674

Gross profit		20,570		18,451		15,924		14,909		14,068
Selling, general and administrative expenses		11,774		10,945		9,431		8,739		7,890
Other operating charges		350		254		185		85		480

Operating income		8,446		7,252		6,308		6,085		5,698
Interest income		333		236		193		235		157
Interest expense		438		456		220		240		196
Equity income (loss)—net		(874)		668		102		680		621
Other income (loss)—net		(28)		173		195		(93)		(82)
Gains on issuances of stock by equity investees		—		—		—		23		24

Income before income taxes		7,439		7,873		6,578		6,690		6,222
Income taxes		1,632		1,892		1,498		1,818		1,375

Net income	$	5,807	$	5,981	$	5,080	$	4,872	$	4,847

Average shares outstanding		2,315		2,313		2,348		2,392		2,426
Average shares outstanding assuming dilution		2,336		2,331		2,350		2,393		2,429

PER SHARE DATA
Basic net income	$	2.51	$	2.59	$	2.16	$	2.04	$	2.00
Diluted net income		2.49		2.57		2.16		2.04		2.00
Cash dividends		1.52		1.36		1.24		1.12		1.00
Closing market price on December 31		45.27		61.37		48.25		40.31		41.64

TOTAL MARKET VALUE OF COMMON STOCK	$	104,683	$	142,289	$	111,857	$	95,504	$	100,325

BALANCE SHEET DATA
Cash, cash equivalents and current marketable securities	$	4,979	$	4,308	$	2,590	$	4,767	$	6,768
Property, plant and equipment—net		8,326		8,493		6,903		5,831		6,091
Depreciation		993		958		763		752		715
Capital expenditures		1,968		1,648		1,407		899		755
Total assets		40,519		43,269		29,963		29,427		31,441
Long-term debt		2,781		3,277		1,314		1,154		1,157
Shareowners' equity		20,472		21,744		16,920		16,355		15,935

NET CASH PROVIDED BY OPERATING ACTIVITIES	$	7,571	$	7,150	$	5,957	$	6,423	$	5,968

Certain prior year amounts have been reclassified to conform to the current year presentation.

¹ In 2007, we adopted Financial Accounting Standards Board (FASB) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” and recorded an approximate $65 million increase in accrued income taxes in our consolidated balance sheet for unrecognized tax benefits, which was accounted for as a cumulative effect adjustment to the January 1, 2007, balance of reinvested earnings.

² In 2006, we adopted Statement of Financial Accounting Standards (SFAS) No.158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements No. 87, 88, 106, and 132(R).”

³ We adopted FASB Staff Position (FSP) No. 109-2, “Accounting and Disclosure Guidance for the Foreign Earnings Repatriation Provision within the American Jobs Creation Act of 2004” in 2004. FSP No. 109-2 allowed the Company to record the tax expense associated with the repatriation of foreign earnings in 2005 when the previously unremitted foreign earnings were actually repatriated.

⁴ We adopted FASB Interpretation No. 46(R), “Consolidation of Variable Interest Entities,” effective April 2, 2004.

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Buy. Drink. Smile. 2008 Year in Review

Financial Overview

Unit Case Data

Selected Financial Data

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