8-KOther Events

COCA COLA CO 8-K Report (Mar 7, 2002)

Filed March 7, 2002For Securities:KO

Summary

This 8-K filing from The Coca-Cola Company provides audited consolidated financial statements for the fiscal year ended December 31, 2001. The company reported Net Operating Revenues of $20.092 billion, a slight increase from $19.889 billion in 2000. Net Income for 2001 was $3.969 billion, a significant jump from $2.177 billion in 2000. This strong performance was driven by higher operating income and a lower effective tax rate. The filing also details changes in accounting standards, including the adoption of SFAS No. 133, and outlines significant equity investments, particularly in Coca-Cola Enterprises Inc., and their financial performance. Key financial highlights include a robust increase in Net Income year-over-year, primarily due to improved operating performance and a reduction in 'Other operating charges' compared to the prior year. The company also reported a substantial increase in cash provided by operating activities. The balance sheet shows growth in assets, particularly in 'Other assets' and 'Trademarks and other intangible assets', while liabilities saw a decrease in 'Loans and notes payable'. The company's strategic initiatives and equity investments remain a significant focus, as detailed in the extensive notes to the financial statements.

Key Highlights

  • 1Net Operating Revenues increased to $20.092 billion in 2001 from $19.889 billion in 2000.
  • 2Net Income saw a substantial increase to $3.969 billion in 2001, up from $2.177 billion in 2000.
  • 3Operating income improved significantly to $5.352 billion in 2001, compared to $3.691 billion in 2000, benefiting from a reduction in 'Other operating charges'.
  • 4Cash provided by operating activities increased to $4.110 billion in 2001 from $3.585 billion in 2000.
  • 5The company adopted SFAS No. 133 regarding derivative instruments and hedging activities, effective January 1, 2001.
  • 6The investment in Coca-Cola Enterprises Inc. is highlighted, with its value at December 31, 2001, exceeding its carrying value by approximately $2.4 billion.
  • 7The company disclosed an estimated non-cash charge of approximately $1 billion in the first quarter of 2002 related to the adoption of SFAS No. 142 for goodwill and other intangible assets.

Frequently Asked Questions

The most significant takeaway is the substantial increase in Net Income for 2001, reaching $3.969 billion, a notable improvement from $2.177 billion in 2000. This was driven by higher operating income and a decrease in prior year 'Other operating charges', indicating improved profitability and operational efficiency.

Net Operating Revenues saw a modest increase, reaching $20.092 billion in 2001, up from $19.889 billion in 2000. While revenue growth was not dramatic, the significant jump in net income suggests effective cost management and improved margins.

The company adopted Statement of Financial Accounting Standards (SFAS) No. 133, 'Accounting for Derivative Instruments and Hedging Activities,' effective January 1, 2001. Additionally, the filing notes the upcoming adoption of SFAS No. 142, 'Goodwill and Other Intangible Assets,' effective January 1, 2002, which is expected to result in a significant non-cash charge.

The filing provides extensive details on equity investments, particularly in Coca-Cola Enterprises Inc. (CCE). The carrying value of the investment in CCE was $788 million at year-end 2001, and its market value significantly exceeded this, indicating a strong performance of that investment. Other equity investments are also detailed, with summaries of their financial performance.