What Is A Report Of Independent Registered Public Accounting Firm

Report of Contained Registered Public Accounting Firm Lath of Directors and Shareowners The Coca-Cola Company We have audited the accompanying consolidated balance sheets of The Coca-Cola Company and subsidiaries equally of December 31, 2006 and 2005, and the related consolidated statements of income, shareowners' equity, and greenbacks flows for each of the three years in the catamenia ended December 31, 2006. These financial statements are the responsibility of the Company'due south management. Our responsibleness is to express an stance on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United states). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are complimentary of material misstatement. An audit includes examining, on a examination basis, evidence supporting the amounts and disclosures in the financial statements. An audit as well includes assessing the accounting principles used and meaning estimates fabricated past direction, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable footing for our opinion. In our opinion, the financial statements referred to in a higher place present fairly, in all material respects, the consolidated financial position of The Coca-Cola Company and subsidiaries at December 31, 2006 and 2005, and the consolidated results of their operations and their cash flows for each of the iii years in the period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles. As discussed in Note 1 to the consolidated financial statements, in 2006 the Company adopted SFAS No. 158 related to divers benefit pension and other postretirement plans. We also have audited, in accord with the standards of the Public Company Accounting Oversight Board (Us), the effectiveness of The Coca-Cola Company and subsidiaries' internal control over financial reporting equally of December 31, 2006, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our study dated February 20, 2007, expressed an unqualified opinion thereon. Atlanta, Georgia Feb 20, 2007 126 Written report of Independent Registered Public Accounting Firm on Internal Command Over Financial Reporting Board of Directors and Shareowners The Coca-Cola Visitor We have audited management'due south cess, included in the accompanying Written report of Direction on Internal Command Over Fiscal Reporting, that The Coca-Cola Company and subsidiaries maintained effective internal control over financial reporting every bit of December 31, 2006, based on criteria established in Internal Command—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Coca-Cola Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over fiscal reporting. Our responsibility is to limited an opinion on management's assessment and an opinion on the effectiveness of the Visitor's internal control over fiscal reporting based on our audit. We conducted our audit in accord with the standards of the Public Visitor Bookkeeping Oversight Lath (United States). Those standards crave that we plan and perform the audit to obtain reasonable balls about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over fiscal reporting, evaluating management'due south assessment, testing and evaluating the blueprint and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances. Nosotros believe that our audit provides a reasonable basis for our opinion. A company'southward internal control over fiscal reporting is a process designed to provide reasonable assurance regarding the reliability of fiscal reporting and the preparation of financial statements for external purposes in accordance with generally accustomed accounting principles. A company'south internal command over fiscal reporting includes those policies and procedures that (one) pertain to the maintenance of records that, in reasonable item, accurately and fairly reflect the transactions and dispositions of the avails of the visitor; (two) provide reasonable balls that transactions are recorded as necessary to permit preparation of financial statements in accordance with mostly accepted accounting principles, and that receipts and expenditures of the company are existence made simply in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, employ, or disposition of the company's assets that could accept a material effect on the financial statements. Considering of its inherent limitations, internal command over fiscal reporting may not forestall or detect misstatements. Besides, projections of whatever evaluation of effectiveness to time to come periods are discipline to the take a chance that controls may go inadequate because of changes in atmospheric condition, or that the degree of compliance with the policies or procedures may deteriorate. Every bit indicated in the accompanying Report of Management on Internal Control Over Financial Reporting, management'south assessment of and conclusion on the effectiveness of internal command over financial reporting did not include the internal controls of Kerry Beverages Limited (afterward renamed Coca-Cola China Industries Limited), Brucephil, Inc., Apollinaris GmbH and TJC Holdings (Pty) Ltd. which are included in the 2006 consolidated financial statements of The Coca-Cola Visitor and subsidiaries and constituted approximately 6.1 percent of the Company's consolidated total assets as of December 31, 2006 and approximately one.vi pct of the Company'due south consolidated internet operating revenues for the yr and so concluded. Our audit of internal control over financial reporting of The Coca-Cola Company as well did not include an evaluation of the internal control over financial reporting of Kerry Beverages Limited (subsequently renamed Coca-Cola Cathay Industries Limited), Brucephil, Inc., Apollinaris GmbH and TJC Holdings (Pty) Ltd. In our stance, management's cess that The Coca-Cola Company and subsidiaries maintained effective internal control over fiscal reporting as of December 31, 2006, is fairly stated, in all cloth respects, based on the COSO criteria. Besides, in our stance, The Coca-Cola Visitor and subsidiaries maintained, in all textile respects, effective internal command over financial reporting as of December 31, 2006, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Bookkeeping Oversight Board (U.s.a.), the consolidated balance sheets of The Coca-Cola Company and subsidiaries as of Dec 31, 2006 and 2005, and the related consolidated statements of income, shareowners' equity, and cash flows for each of the three years in the period ended December 31, 2006, and our report dated Feb twenty, 2007, expressed an unqualified opinion thereon. Atlanta, Georgia February 20, 2007 127 Quarterly Data (Unaudited) Year Ended Dec 31, Showtime Quarter Second Quarter Third Quarter Fourth Quarter Full Year (In millions, except per share information) 2006 Net operating revenues $  5,226 $  six,476 $  6,454 $  5,932 $  24,088 Gross profit 3,500 4,366 four,189 3,869 15,924 Net income 1,106 1,836 1,460 678 v,080 Bones cyberspace income per share $    0.47 $    0.78 $    0.62 $    0.29 $      two.xvi Diluted net income per share $    0.47 $    0.78 $    0.62 $    0.29 $      2.xvi 2005 Net operating revenues $  v,206 $  6,310 $  6,037 $  5,551 $  23,104 Gross profit three,388 4,164 3,802 3,555 xiv,909 Net income i,002 ane,723 one,283 864 iv,872 Basic net income per share $    0.42 $    0.72 $    0.54 $    0.36 $      two.04 Diluted internet income per share $    0.42 $    0.72 $    0.54 $    0.36 $      two.04 Our reporting flow ends on the Fri closest to the last day of the quarterly calendar period. Our financial year ends on Dec 31 regardless of the twenty-four hours of the week on which December 31 falls. The Company'south first quarter of 2006 results were impacted past ane less aircraft twenty-four hour period equally compared to the first quarter of 2005. Additionally, the Visitor recorded the post-obit transactions which impacted results: • Harm charges totaling approximately $42 million primarily related to the harm of certain assets and investments in certain bottling operations in Asia. Refer to Note 18. • Approximately $iii million of charges primarily related to restructuring in East, South Asia and Pacific Rim. Refer to Note 18. • An guess $9 million charge to equity income for our proportionate share of CCE's restructuring costs. Refer to Note three. • An income tax benefit of approximately $vii million primarily related to nugget damage and restructuring charges in Asia. Refer to Note 17. • Approximately $10 million of income tax expense primarily related to increases in tax reserves. Refer to Note 17. In the second quarter of 2006, the Visitor recorded the following transactions which impacted results: • An gauge $123 million internet gain related to the sale of a portion of our investment in Coca-Cola Icecek in an initial public offering. This gain was recorded in the line item other income (loss) — internet. Refer to Annotation xviii. • Charges totaling approximately $31 million primarily related to costs associated with product chapters efficiencies and other restructuring costs in Asia and the European Matrimony. Refer to Annotation 18. • An approximate $21 one thousand thousand do good to equity income for our proportionate share of favorable changes in sure of CCE'southward state and Canadian federal and provincial tax rates. Refer to Notation iii. • Approximately $22 million of income tax expense related to the anticipated future resolution of sure tax matters. Refer to Note 17. • An income tax benefit of approximately $14 million related to the sale of a portion of our investment in Coca-Cola Icecek. Refer to Annotation 17. In the third quarter of 2006, the Company recorded the following transactions which impacted results: • Approximately $39 million of charges primarily related to the impairment of certain intangible assets and investments in certain bottling operations, costs to rationalize production and other restructuring costs in Africa, the Eu and Asia. Refer to Note 18. 128 • An guess $3 meg charge to equity income — internet for our proportionate share of items impacting investees. Refer to Notation three. • An income taxation benefit of approximately $41 million related to the reversal of a tax valuation allowance due to the sale of a portion of our equity method investment in Coca-Cola FEMSA, partially start by a accuse for the predictable future resolution of certain tax matters and a change in the tax rate applicable to a portion of the temporary difference betwixt the book and tax basis of our investment in Coca-Cola FEMSA. Refer to Notation 3. • An income revenue enhancement do good of approximately $12 million associated with impairment charges, costs to rationalize product and other restructuring costs. Refer to Note 17. The Company's fourth quarter of 2006 results were impacted by one additional shipping solar day as compared to the quaternary quarter of 2005. Additionally, the Company recorded the following transactions which impacted results: • An approximate $615 million charge to equity income related to the Company's proportionate share of CCE'southward damage charges and restructuring charges recorded by other disinterestedness method investees, partially offset past changes in certain of CCE's state and Canadian federal and provincial tax rates. Refer to Note 3. • Approximately $74 1000000 of charges primarily related to restructuring and asset impairments in East, South Asia and Pacific Rim and sure bottling operations and asset impairments in North Asia, Eurasia and Middle East. Refer to Note 18. • A $100 one thousand thousand donation made to The Coca-Cola Foundation. • An approximate $175 1000000 net gain related to the auction of Coca-Cola FEMSA shares. This proceeds was recorded in the line item other income (loss) — net. Refer to Note 18. • An income tax do good of approximately $10 million associated with restructuring costs and damage charges. Refer to Notation 17. • An income tax benefit of approximately $38 million associated with a donation fabricated to The Coca-Cola Foundation. • An income tax benefit of approximately $37 meg related to the reversal of previously accrued taxes resulting from the anticipated future resolution of certain revenue enhancement matters. Refer to Note 17. • An income taxation do good of approximately $57 million associated with items impacting investees. Refer to Notation 17. • Approximately $76 million of income revenue enhancement expense associated with the gain on the sale of Coca-Cola FEMSA shares. Refer to Note 17. In the commencement quarter of 2005, the Company recorded the following transactions which impacted results: • A provision for taxes on unremitted foreign earnings of approximately $152 million. Refer to Note 17. • Approximately $23 million of noncash pretax gains on issuances of stock by Coca-Cola Amatil in connexion with the conquering of SPC Ardmona Pty. Ltd., an Australian fruit company. Refer to Notation 4. • An income tax benefit of approximately $56 meg related to the reversal of previously accrued taxes resulting from favorable resolution of tax matters. Refer to Note 17. • Approximately $l one thousand thousand of accelerated amortization of stock-based bounty expense related to a change in our estimated service menses for retirement-eligible participants. Refer to Note 15. In the 2nd quarter of 2005, the Company recorded the post-obit transactions which impacted results: • The receipt of approximately $42 one thousand thousand related to the settlement of a form action lawsuit apropos the purchase of HFCS. Refer to Notation 18. • An approximate $21 million do good to disinterestedness income for our proportionate share of CCE'south HFCS lawsuit settlement. Refer to Note 3. • An income tax benefit of approximately $17 one thousand thousand related to the reversal of previously accrued taxes resulting from favorable resolution of tax matters. Refer to Annotation 17. 129 • An income tax benefit of approximately $25 meg as a result of additional guidance issued past the The states Internal Revenue Service and the United States Department of the Treasury related to the Jobs Cosmos Act. Refer to Note 17. In the third quarter of 2005, the Visitor recorded the following transactions which impacted results: • Approximately $89 million of impairment charges primarily related to intangible assets (mainly trademark beverages sold in the Philippines market). Approximately $85 one thousand thousand and $4 1000000 of these impairment charges are recorded in the line items other operating charges and equity income — net, respectively. Refer to Notation 18. • Approximately $5 one thousand thousand of a noncash pretax accuse to disinterestedness income — net due to our proportionate share of CCE's restructuring charges. Refer to Notation 3. • An income tax benefit of approximately $18 million related to the reversal of previously accrued taxes resulting from favorable resolution of revenue enhancement matters. Refer to Note 17. • An income tax do good of approximately $iv meg primarily related to the Philippines impairment charges. Refer to Notation 17. In the quaternary quarter of 2005, the Company recorded the following transactions which impacted results: • The receipt of approximately $5 million related to the settlement of a form action lawsuit concerning the buy of HFCS. Refer to Annotation 18. • An approximate $49 meg reduction to disinterestedness income due to our proportionate share of CCE'due south tax expense related to repatriation of previously unremitted foreign earnings nether the Jobs Cosmos Act and restructuring charges recorded by CCE, partially offset by changes in sure of CCE's state and provincial taxation rates and boosted proceeds from CCE's HFCS lawsuit settlement. Refer to Notation 3. • An income taxation benefit of approximately $10 one thousand thousand related to the reversal of previously accrued taxes resulting from favorable resolution of revenue enhancement matters. Refer to Note 17. • A provision for taxes on unremitted strange earnings of approximately $188 one thousand thousand. Refer to Note 17. 130

Source: http://sec.edgar-online.com/coca-cola-co/10-k-annual-report/2007/02/21/section21.aspx

Posted by: melosolivocks.blogspot.com

Share this post