Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 20, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MDLZ | |
Entity Registrant Name | Mondelez International, Inc. | |
Entity Central Index Key | 1,103,982 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,466,560,999 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Income Statement [Abstract] | |||||||
Net revenues | $ 6,112 | $ 5,986 | [1] | $ 12,877 | $ 12,400 | [1] | |
Cost of sales | 3,572 | 3,672 | 7,488 | 7,568 | |||
Gross profit | 2,540 | 2,314 | 5,389 | 4,832 | |||
Selling, general and administrative expenses | 1,904 | 1,455 | 3,431 | 2,938 | |||
Asset impairment and exit costs | 111 | 176 | 165 | 342 | |||
Loss on divestiture | 0 | 3 | 0 | 3 | |||
Amortization of intangibles | 44 | 44 | 88 | 88 | |||
Operating income | 481 | 636 | 1,705 | 1,461 | |||
Benefit plan non-service income | [2] | (15) | (5) | (28) | (20) | ||
Interest and other expense, net | 248 | 124 | 328 | 243 | |||
Earnings before income taxes | 248 | 517 | 1,405 | 1,238 | |||
Provision for income taxes | (14) | (84) | (321) | (238) | |||
Equity method investment net earnings | 91 | 67 | 185 | 133 | |||
Net earnings | 325 | 500 | 1,269 | 1,133 | |||
Noncontrolling interest earnings | (2) | (2) | (8) | (5) | |||
Net earnings attributable to Mondelēz International | $ 323 | $ 498 | $ 1,261 | $ 1,128 | |||
Per share data: | |||||||
Basic earnings per share attributable to Mondeléz International (in dollars per share) | $ 0.22 | $ 0.33 | $ 0.85 | $ 0.74 | |||
Diluted earnings per share attributable to Mondélez International (in dollars per share) | 0.22 | 0.32 | 0.84 | 0.73 | |||
Dividends declared (in dollars per share) | $ 0.22 | $ 0.19 | $ 0.44 | $ 0.38 | |||
[1] | During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. | ||||||
[2] | During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard, we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line item, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income and segment operating income to reflect this reclassification, which had no impact to earnings before income taxes or net earnings. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 325 | $ 500 | $ 1,269 | $ 1,133 |
Other comprehensive earnings/(losses), net of tax: | ||||
Currency translation adjustment | (874) | 380 | (667) | 923 |
Pension and other benefit plans | 168 | (33) | 162 | (32) |
Derivative cash flow hedges | 26 | 12 | (20) | 30 |
Total other comprehensive earnings/(losses) | (680) | 359 | (525) | 921 |
Comprehensive earnings/(losses) | (355) | 859 | 744 | 2,054 |
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | (10) | 14 | 11 | 21 |
Comprehensive earnings/(losses) attributable to Mondelēz International | $ (345) | $ 845 | $ 733 | $ 2,033 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 1,246 | $ 761 |
Trade receivables (net of allowances of $40 at June 30, 2018 and $50 at December 31, 2017) | 2,416 | 2,691 |
Other receivables (net of allowances of $61 at June 30, 2018 and $98 at December 31, 2017) | 818 | 835 |
Inventories, net | 2,683 | 2,557 |
Other current assets | 1,039 | 676 |
Total current assets | 8,202 | 7,520 |
Property, plant and equipment, net | 8,384 | 8,677 |
Goodwill | 21,002 | 21,085 |
Intangible assets, net | 18,362 | 18,639 |
Prepaid pension assets | 169 | 158 |
Deferred income taxes | 259 | 319 |
Equity method investments | 6,223 | 6,345 |
Other assets | 373 | 366 |
TOTAL ASSETS | 62,974 | 63,109 |
LIABILITIES | ||
Short-term borrowings | 4,074 | 3,517 |
Current portion of long-term debt | 780 | 1,163 |
Accounts payable | 5,248 | 5,705 |
Accrued marketing | 1,587 | 1,728 |
Accrued employment costs | 614 | 721 |
Other current liabilities | 2,529 | 2,959 |
Total current liabilities | 14,832 | 15,793 |
Long-term debt | 14,857 | 12,972 |
Deferred income taxes | 3,395 | 3,376 |
Accrued pension costs | 1,389 | 1,669 |
Accrued postretirement health care costs | 395 | 419 |
Other liabilities | 2,819 | 2,689 |
TOTAL LIABILITIES | 37,687 | 36,918 |
Commitments and Contingencies (Note 12) | ||
EQUITY | ||
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at June 30, 2018 and December 31, 2017) | 0 | 0 |
Additional paid-in capital | 31,913 | 31,915 |
Retained earnings | 23,305 | 22,749 |
Accumulated other comprehensive losses | (10,526) | (9,998) |
Treasury stock, at cost (530,175,356 shares at June 30, 2018 and 508,401,694 shares at December 31, 2017) | (19,489) | (18,555) |
Total Mondelēz International Shareholders’ Equity | 25,203 | 26,111 |
Noncontrolling interest | 84 | 80 |
TOTAL EQUITY | 25,287 | 26,191 |
TOTAL LIABILITIES AND EQUITY | $ 62,974 | $ 63,109 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 40 | $ 50 |
Other receivables, allowances | $ 61 | $ 98 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued (in shares) | 1,996,537,778 | 1,996,537,778 |
Treasury stock, at cost (in shares) | 530,175,356 | 508,401,694 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/(Losses) | Treasury Stock | Noncontrolling Interest | [1] |
Balance at beginning of period at Dec. 31, 2016 | $ 25,215 | $ 0 | $ 31,847 | $ 21,149 | $ (11,122) | $ (16,713) | $ 54 | |
Comprehensive earnings/(losses): | ||||||||
Net earnings | 1,133 | |||||||
Other comprehensive earnings/(losses), net of income taxes | 921 | |||||||
Balance at end of period at Jun. 30, 2017 | (10,217) | |||||||
Balance at beginning of period at Dec. 31, 2016 | 25,215 | 0 | 31,847 | 21,149 | (11,122) | (16,713) | 54 | |
Comprehensive earnings/(losses): | ||||||||
Net earnings | 2,936 | 2,922 | 14 | |||||
Other comprehensive earnings/(losses), net of income taxes | 1,152 | 1,124 | 28 | |||||
Exercise of stock options and issuance of other stock awards | 345 | 68 | (83) | 360 | ||||
Common Stock repurchased | (2,202) | (2,202) | ||||||
Cash dividends declared ($0.44 per share for 2018 and $0.82 per share for 2017) | (1,239) | (1,239) | ||||||
Dividends paid on noncontrolling interest and other activities | (16) | (16) | ||||||
Balance at end of period at Dec. 31, 2017 | 26,191 | 0 | 31,915 | 22,749 | (9,998) | (18,555) | 80 | |
Balance at beginning of period at Mar. 31, 2017 | (10,564) | |||||||
Comprehensive earnings/(losses): | ||||||||
Net earnings | 500 | |||||||
Other comprehensive earnings/(losses), net of income taxes | 359 | |||||||
Balance at end of period at Jun. 30, 2017 | (10,217) | |||||||
Balance at beginning of period at Dec. 31, 2017 | 26,191 | 0 | 31,915 | 22,749 | (9,998) | (18,555) | 80 | |
Comprehensive earnings/(losses): | ||||||||
Net earnings | 1,269 | 1,261 | 8 | |||||
Other comprehensive earnings/(losses), net of income taxes | (525) | (528) | 3 | |||||
Exercise of stock options and issuance of other stock awards | 154 | (2) | (60) | 216 | ||||
Common Stock repurchased | (1,150) | (1,150) | ||||||
Cash dividends declared ($0.44 per share for 2018 and $0.82 per share for 2017) | (651) | (651) | ||||||
Dividends paid on noncontrolling interest and other activities | (1) | 6 | (7) | |||||
Balance at end of period at Jun. 30, 2018 | 25,287 | 0 | 31,913 | 23,305 | (10,526) | (19,489) | 84 | |
Balance at beginning of period at Mar. 31, 2018 | (9,858) | |||||||
Comprehensive earnings/(losses): | ||||||||
Net earnings | 325 | |||||||
Other comprehensive earnings/(losses), net of income taxes | (680) | |||||||
Balance at end of period at Jun. 30, 2018 | $ 25,287 | $ 0 | $ 31,913 | $ 23,305 | $ (10,526) | $ (19,489) | $ 84 | |
[1] | Noncontrolling interest as of June 30, 2017 was $72 million, as compared to $54 million as of January 1, 2017. The change of $18 million during the six months ended June 30, 2017 was due to $16 million of other comprehensive earnings, net of taxes, and $5 million of net earnings offset by $(3) million of dividends paid. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash dividends declared (in dollars per share) | $ 0.22 | $ 0.19 | $ 0.44 | $ 0.38 | $ 0.82 | |
Noncontrolling interest | $ 84 | $ 84 | $ 80 | |||
Other comprehensive earnings, net of taxes, attributable to noncontrolling interest | (12) | $ 12 | 3 | $ 16 | ||
Net earnings attributable to noncontrolling interest | $ 2 | 2 | $ 8 | 5 | ||
Noncontrolling Interest | ||||||
Noncontrolling interest | $ 72 | 72 | $ 54 | |||
Change in noncontrolling interest | 18 | |||||
Other comprehensive earnings, net of taxes, attributable to noncontrolling interest | 16 | |||||
Net earnings attributable to noncontrolling interest | 5 | |||||
Dividends paid to noncontrolling interest | $ (3) |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | ||
Net earnings | $ 1,269 | $ 1,133 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 407 | 395 |
Stock-based compensation expense | 67 | 77 |
U.S. tax reform transition tax | 86 | 0 |
Deferred income tax provision | (46) | 0 |
Asset impairments and accelerated depreciation | 43 | 168 |
Loss on early extinguishment of debt | 140 | 11 |
Loss on divestiture | 0 | 3 |
Equity method investment net earnings | (185) | (133) |
Distributions from equity method investments | 151 | 132 |
Other non-cash items, net | 366 | (29) |
Change in assets and liabilities, net of acquisitions and divestitures: | ||
Receivables, net | 112 | 153 |
Inventories, net | (240) | (181) |
Accounts payable | (325) | (430) |
Other current assets | (41) | (88) |
Other current liabilities | (481) | (646) |
Change in pension and postretirement assets and liabilities, net | (141) | (303) |
Net cash provided by operating activities | 1,182 | 262 |
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | ||
Capital expenditures | (532) | (488) |
Acquisition, net of cash received | (528) | 0 |
Proceeds from divestiture, net of disbursements | 0 | 169 |
Proceeds from sale of property, plant and equipment and other assets | 19 | 33 |
Net cash used in investing activities | (1,041) | (286) |
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | ||
Issuances of commercial paper, maturities greater than 90 days | 1,315 | 1,150 |
Repayments of commercial paper, maturities greater than 90 days | (1,020) | (1,141) |
Net issuances of other short-term borrowings | 298 | 2,230 |
Long-term debt proceeds | 2,948 | 350 |
Long-term debt repaid | (1,442) | (1,469) |
Repurchase of Common Stock | (1,177) | (1,069) |
Dividends paid | (657) | (581) |
Other | 124 | 154 |
Net cash provided by/(used in) financing activities | 389 | (376) |
Effect of exchange rate changes on cash and cash equivalents | (45) | 56 |
Cash and cash equivalents: | ||
Increase/(decrease) | 485 | (344) |
Balance at beginning of period | 761 | 1,741 |
Balance at end of period | $ 1,246 | $ 1,397 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results. For a complete set of consolidated financial statements and related notes, refer to our Annual Report on Form 10-K for the year ended December 31, 2017 . Principles of Consolidation: The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries. As of the close of the 2015 fiscal year, we deconsolidated and fully impaired our investment in our Venezuelan operations. As such, for all periods presented, we have excluded the results of operations, financial position and cash flows of our Venezuelan subsidiaries from our condensed consolidated financial statements. We account for investments over which we exercise significant influence under the equity method of accounting. Investments over which we do not have significant influence or control are not material and are carried at cost as there is no readily determinable fair value for the equity interests. Currency Translation and Highly Inflationary Accounting : We translate the results of operations of our subsidiaries from multiple currencies using average exchange rates during each period and translate balance sheet accounts using exchange rates at the end of each period. We record currency translation adjustments as a component of equity and realized exchange gains and losses on transactions in earnings. Highly inflationary accounting is triggered when a country’s three-year cumulative inflation rate exceeds 100%. It requires the remeasurement of financial statements of subsidiaries in the country from the functional currency of the subsidiary to our U.S. dollar reporting currency, with currency remeasurement gains or losses recorded in earnings. As of June 30, 2018 , none of our consolidated subsidiaries were subject to highly inflationary accounting. As discussed below, beginning on July 1, 2018, we expect to apply highly inflationary accounting for our operations in Argentina. Argentina. During the quarter ended June 30, 2018 , primarily based on published estimates which indicate that Argentina's three-year cumulative inflation rate has exceeded 100%, we concluded that Argentina has become a highly inflationary economy. Beginning July 1, 2018, we expect to apply highly inflationary accounting for our Argentinian subsidiaries. We will change the functional currency from the Argentinian peso to the U.S. dollar. Local currency monetary assets and liabilities will be remeasured into U.S. dollars using exchange rates as of the latest balance sheet date, with remeasurement adjustments and other transaction gains and losses recognized in net earnings. Our Argentinian operations contributed $267 million , or 2.1% of consolidated net revenues in the six months ended June 30, 2018 . Based on a review of our Argentinian peso-denominated monetary assets and liabilities, our Argentinian operations had an immaterial net monetary liability position as of June 30, 2018 . Other Countries. Since we sell in approximately 160 countries and have operations in over 80 countries, we monitor economic and currency-related risks and seek to take protective measures in response to these exposures. Some of the countries in which we do business have recently experienced periods of significant economic uncertainty and exchange rate volatility, including Brazil, China, Mexico, Russia, United Kingdom (Brexit), Ukraine, Turkey, Egypt, Nigeria, South Africa and Pakistan. We continue to monitor operations, currencies and net monetary exposures in these countries. At this time, we do not anticipate that these countries are at risk of becoming highly inflationary countries. Revenue Recognition: We predominantly sell food and beverage products across several product categories and in all regions as detailed in Note 16, Segment Reporting . We recognize revenue when control over the products transfers to our customers, which generally occurs upon delivery or shipment of the products. A small percentage of our net revenues relates to the licensing of our intellectual property, predominantly brand and trade names, and we record these revenues when earned within the period of the license term. We account for product shipping, handling and insurance as fulfillment activities with revenues for these activities recorded within net revenue and costs recorded within cost of sales. Any taxes collected on behalf of government authorities are excluded from net revenues. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. We base these estimates of expected amounts principally on historical utilization and redemption rates. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one year or shorter duration. As such, we do not capitalize contract inception costs and we capitalize product fulfillment costs in accordance with U.S. GAAP and our inventory policies. We generally do not have any unbilled receivables at the end of a period. Deferred revenues are not material and primarily include customer advance payments typically collected a few days before product delivery, at which time deferred revenues are reclassified and recorded as net revenues. We generally do not receive noncash consideration for the sale of goods nor do we grant payment financing terms greater than one year. Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have non-recourse factoring arrangements in which we sell eligible trade receivables primarily to banks in exchange for cash. We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the banks. The outstanding principal amount of receivables under these arrangements amounted to $719 million as of June 30, 2018 and $843 million as of December 31, 2017 . The incremental cost of factoring receivables under this arrangement was not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows. New Accounting Pronouncements: In June 2018, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that requires entities to record share-based payment transactions for acquiring goods and services from non-employees at fair value as of adoption date. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. In February 2018, the FASB issued an ASU that permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 enactment of U.S. tax reform legislation. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. In August 2017, the FASB issued an ASU to better align hedge accounting with an entity’s risk management activities and improve disclosures surrounding hedging. For cash flow and net investment hedges as of the adoption date, the ASU requires a modified retrospective transition approach. Presentation and disclosure requirements related to this ASU are required prospectively. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We early adopted the standard as of January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. Refer to Note 9, Financial Instruments , for additional information. In February 2016, the FASB issued an ASU on lease accounting. The ASU revises existing U.S. GAAP and outlines a new model for lessors and lessees to use in accounting for lease contracts. The guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases, with the exception of short-term leases. In the statement of earnings, lessees will classify leases as either operating (resulting in straight-line expense) or financing (resulting in a front-loaded expense pattern). The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We anticipate adopting the new standard on January 1, 2019. We continue to make progress in our data collection and evaluation of our leasing arrangements, practical expedients, accounting policy elections and implementing our lease accounting system. We completed the initial design of changes to our business processes to meet the new lease accounting and disclosure requirements. At this time, we are unable to reasonably estimate the expected increase in assets and liabilities on our balance sheet for our operating leases. In January 2016, the FASB issued an ASU that provides updated guidance for the recognition, measurement, presentation and disclosure of financial assets and liabilities. The standard requires that equity investments (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) be measured at fair value, with changes in fair value recognized in net income. The standard also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The ASU is effective for fiscal years beginning after December 15, 2017. We adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. In May 2014, the FASB issued an ASU on revenue recognition from contracts with customers. The ASU outlines a new, single comprehensive model for companies to use in accounting for revenue. The core principle is that an entity should recognize revenue to depict the transfer of control over promised goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for the goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including significant judgments made in recognizing revenue. In 2016 and 2017, the FASB issued several ASUs that clarified principal versus agent (gross versus net) revenue presentation considerations, confirmed the accounting for certain prepaid stored-value products and clarified the guidance for identifying performance obligations within a contract, the accounting for licenses and partial sales of nonfinancial assets. The FASB also issued two ASUs providing technical corrections, narrow scope exceptions and practical expedients to clarify and improve the implementation of the new revenue recognition guidance. The revenue guidance is effective for annual reporting periods beginning after December 15, 2017. We adopted the new standard on January 1, 2018 on a full retrospective basis. There was no material financial impact from adopting the new revenue standards in any of the historical periods presented. Refer to the Revenue Recognition section above and Note 16, Segment Reporting , for additional information. Reclassifications: Certain amounts previously reported have been reclassified to conform to current-year presentation. On January 1, 2018, we adopted an ASU that changed the presentation of net periodic pension and postretirement costs on the condensed consolidated statements of earnings. As a result of this adoption, we disaggregated the components of our net periodic pension and postretirement benefit costs and moved components other than service costs to a new line item, benefit plan non-service income, located below operating income. Prior-period cost of sales, selling, general and administrative expenses and asset impairment and exit costs as well as segment operating income results were updated to reflect the reclassification. All components of net periodic pension and postretirement benefit costs are summarized in Note 10, Benefit Plans . |
Divestitures and Acquisitions
Divestitures and Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Divestitures and Acquisitions | Note 2. Divestitures and Acquisitions On June 7, 2018 , we acquired a U.S. premium biscuit company, Tate’s Bake Shop, within our North America segment and extended our premium biscuit offerings. We paid $528 million , net of cash received, and we expect to finalize the purchase price paid later this year once final working capital adjustments are confirmed. We accounted for the transaction as a business combination. We are working to complete the valuation work and have recorded a preliminary purchase price allocation of $40 million to definite-lived intangible assets, $170 million to indefinite-lived intangible assets, $337 million to goodwill, $14 million to property, plant and equipment, $5 million to inventory, $9 million to accounts receivable, $6 million to current liabilities and $41 million to deferred tax liabilities. On December 28, 2017, we completed the sale of a confectionery business in Japan. We received cash proceeds of ¥2.8 billion ( $24 million as of December 28, 2017) and recorded an immaterial pre-tax loss on the divestiture within our AMEA segment. On October 2, 2017, we completed the sale of one of our equity method investments and received cash proceeds of $65 million . We recorded a pre-tax gain of $40 million within the gain on equity method investment transactions and $15 million of tax expense. In connection with the 2012 spin-off of Kraft Foods Group, Inc. (now a part of The Kraft Heinz Company (“KHC”)), Kraft Foods Group and we each granted the other various licenses to use certain trademarks in connection with particular product categories in specified jurisdictions. On August 17, 2017, we entered into two agreements with KHC to terminate the licenses of certain KHC-owned brands used in our grocery business within our Europe region and to transfer to KHC inventory and certain other assets. On August 17, 2017, the first transaction closed and we received cash proceeds of €9 million ( $11 million as of August 17, 2017) and on October 23, 2017, the second transaction closed and we received cash proceeds of €2 million ( $3 million as of October 23, 2017). The gain on both transactions combined was immaterial. On July 4, 2017, we completed the sale of most of our grocery business in Australia and New Zealand to Bega Cheese Limited for $456 million Australian dollars ( $347 million as of July 4, 2017). We divested $27 million of current assets, $135 million of non-current assets and $4 million of current liabilities based on the July 4, 2017 exchange rate. We recorded a pre-tax gain of $247 million Australian dollars ( $187 million as of July 4, 2017) on the sale. During the third and fourth quarters of 2017, we also recorded divestiture-related costs of $2 million and a foreign currency hedge loss of $3 million . In the fourth quarter of 2017, we recorded a final $3 million inventory-related working capital adjustment, increasing the pre-tax gain to $190 million in 2017. On April 28, 2017, we completed the sale of several manufacturing facilities in France and the sale or license of several local confectionery brands. We received cash of approximately €157 million ( $169 million as of April 28, 2017), net of cash divested with the businesses. On April 28, 2017, we divested $44 million of current assets, $155 million of non-current assets, $8 million of current liabilities and $22 million of non-current liabilities based on the April 28, 2017 exchange rate. During the three months ended March 31, 2018, we reversed $3 million of accrued expenses no longer required. We also incurred divestiture-related costs of $3 million in the three months and $21 million in the six months ended June 30, 2017 . We recorded a $3 million loss on the sale during the three months ended June 30, 2017. Divestiture-related costs were recorded within cost of sales and selling, general and administrative expenses primarily within our Europe segment. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of June 30, As of December 31, (in millions) Raw materials $ 726 $ 711 Finished product 2,070 1,975 2,796 2,686 Inventory reserves (113 ) (129 ) Inventories, net $ 2,683 $ 2,557 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment Property, plant and equipment consisted of the following: As of June 30, As of December 31, (in millions) Land and land improvements $ 439 $ 458 Buildings and building improvements 2,950 2,979 Machinery and equipment 10,947 11,195 Construction in progress 984 1,048 15,320 15,680 Accumulated depreciation (6,936 ) (7,003 ) Property, plant and equipment, net $ 8,384 $ 8,677 For the six months ended June 30, 2018 , capital expenditures of $532 million excluded $268 million of accrued capital expenditures remaining unpaid at June 30, 2018 and included payment for a portion of the $357 million of capital expenditures that were accrued and unpaid at December 31, 2017 . For the six months ended June 30, 2017 , capital expenditures of $488 million excluded $190 million of accrued capital expenditures remaining unpaid at June 30, 2017 and included payment for a portion of the $343 million of capital expenditures that were accrued and unpaid at December 31, 2016 . In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) in the condensed consolidated statements of earnings within asset impairment and exit costs and within the segment results as follows (refer to Note 7, 2014-2018 Restructuring Program ). For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Latin America $ 6 $ 6 $ 14 $ 12 AMEA 4 30 8 42 Europe 1 4 6 42 North America 2 7 8 22 Non-cash property, plant and equipment write-downs $ 13 $ 47 $ 36 $ 118 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill by segment was: As of June 30, As of December 31, (in millions) Latin America $ 821 $ 901 AMEA 3,289 3,371 Europe 7,655 7,880 North America 9,237 8,933 Goodwill $ 21,002 $ 21,085 Intangible assets consisted of the following: As of June 30, As of December 31, (in millions) Non-amortizable intangible assets $ 17,463 $ 17,671 Amortizable intangible assets 2,363 2,386 19,826 20,057 Accumulated amortization (1,464 ) (1,418 ) Intangible assets, net $ 18,362 $ 18,639 Non-amortizable intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the Spanish and Portuguese operations of United Biscuits, the global LU biscuit business of Groupe Danone S.A. and Cadbury Limited. Amortizable intangible assets consist primarily of trademarks, customer-related intangibles, process technology, licenses and non-compete agreements. Amortization expense for intangible assets was $44 million in each of the three months and $88 million in each of the six months ended June 30, 2018 and June 30, 2017 . For the next five years, we currently estimate annual amortization expense of approximately $175 million for the next three years and approximately $85 million in years four and five (reflecting June 30, 2018 exchange rates). Changes in goodwill and intangible assets consisted of: Goodwill Intangible Assets, at cost (in millions) Balance at January 1, 2018 $ 21,085 $ 20,057 Currency/other (420 ) (441 ) Acquisition 337 210 Balance at June 30, 2018 $ 21,002 $ 19,826 Changes to goodwill and intangibles were: • Acquisition – During the second quarter of 2018, in connection with the acquisition of Tate's Bake Shop, we recorded a preliminary purchase price allocation of $337 million to goodwill and $210 million to intangible assets. See Note 2, Divestitures and Acquisitions , for additional information. During our 2017 annual testing of non-amortizable intangible assets, we recorded $70 million of impairment charges in the third quarter of 2017 related to five trademarks recorded across all regions. During that annual review, we identified thirteen brands, including the five impaired trademarks, with $938 million of aggregate book value as of June 30, 2018 that each had a fair value in excess of book value of 10% or less. We believe our current plans for each of these brands will allow them to continue to not be impaired, but if the product line expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then a brand or brands could become impaired in the future. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 6. Equity Method Investments Our investments accounted for under the equity method of accounting totaled $6,223 million as of June 30, 2018 and $6,345 million as of December 31, 2017 . Our largest investments are in Jacobs Douwe Egberts (“JDE”) and Keurig Green Mountain, Inc. (“Keurig”). JDE: As of June 30, 2018 , we held a 26.5% voting interest, a 26.4% ownership interest and a 26.3% profit and dividend sharing interest in JDE. We recorded JDE equity earnings of $42 million in the second quarter of 2018 and $19 million in the second quarter of 2017 and $88 million in the first six months of 2018 and $38 million in the first six months of 2017 . We also recorded $73 million of cash dividends received during the first quarter of 2018 and $49 million of cash dividends received during the first quarter of 2017. Keurig: As of June 30, 2018 , we held a 24.2% ownership interest in Keurig. We recorded Keurig equity earnings, shareholder loan interest and cash dividends of $20 million , $6 million and $2 million in the second quarter of 2018 and $15 million , $6 million and $2 million in the second quarter of 2017 . We recorded Keurig equity earnings, shareholder loan interest and cash dividends of $36 million , $12 million and $5 million in the first six months of 2018 and $29 million , $12 million and $6 million in the first six months of 2017 . Keurig Dr Pepper Transaction: On July 9, 2018, Keurig closed on its definitive merger agreement with Dr Pepper Snapple Group, Inc., and formed Keurig Dr Pepper Inc. ("Keurig Dr Pepper", NYSE: “KDP”). Following the close of the merger, our ownership in Keurig Dr Pepper was 13.8% . In our third quarter 2018, we expect to record a gain related to the conversion of our investment in Keurig (including our shareholder loan receivable) into an investment in Keurig Dr Pepper. As we will continue to have significant influence, we will continue to account for our investment in Keurig Dr Pepper under the equity method, resulting in recognizing our share of their earnings within our earnings and our share of their dividends within our cash flows. We have nominated two directors to the board of Keurig Dr Pepper and will have certain additional governance rights. In our future filings, we will recast our financial statements and reflect our share of Keurig’s historical results and Keurig Dr Pepper’s ongoing results on a quarter lag basis. A lag will allow us to record our share of Keurig Dr Pepper’s results timely after they have publicly reported their results and to facilitate comparisons of our operating results across all reported periods. |
2014-2018 Restructuring Program
2014-2018 Restructuring Program | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
2014-2018 Restructuring Program | Note 7. 2014-2018 Restructuring Program On May 6, 2014, our Board of Directors approved a $3.5 billion restructuring program and up to $2.2 billion of capital expenditures. On August 31, 2016, our Board of Directors approved a $600 million reallocation between restructuring program cash costs and capital expenditures so that now the $5.7 billion program consists of approximately $4.1 billion of restructuring program costs ( $3.1 billion cash costs and $1 billion non-cash costs) and up to $1.6 billion of capital expenditures. The primary objective of the 2014-2018 Restructuring Program is to reduce our operating cost structure in both our supply chain and overhead costs. The program is intended primarily to cover severance as well as asset disposals and other manufacturing-related one-time costs. Since inception, we have incurred total restructuring and related implementation charges of $3.6 billion related to the 2014-2018 Restructuring Program. We expect to incur the full $4.1 billion of program charges by year-end 2018. Restructuring Costs : We recorded restructuring charges of $112 million in the second quarter of 2018 and $148 million in the second quarter of 2017 and $164 million in the first six months of 2018 and $305 million in the first six months of 2017 within asset impairment and exit costs or benefit plan non-service income. The 2014-2018 Restructuring Program liability activity for the six months ended June 30, 2018 was: Severance and related costs Asset Write-downs Total (in millions) Liability balance, January 1, 2018 $ 464 $ — $ 464 Charges 125 39 164 Cash spent (161 ) — (161 ) Non-cash settlements/adjustments — (39 ) (39 ) Currency (24 ) — (24 ) Liability balance, June 30, 2018 $ 404 $ — $ 404 We spent $82 million in the second quarter of 2018 and $78 million in the second quarter of 2017 and $161 million in the first six months of 2018 and $162 million in the first six months of 2017 in cash severance and related costs. We also recognized non-cash asset write-downs (including accelerated depreciation and asset impairments) and other non-cash adjustments totaling $14 million in the second quarter of 2018 and $54 million in the second quarter of 2017 and $39 million in the first six months of 2018 and $126 million in the first six months of 2017 . At June 30, 2018 , $323 million of our net restructuring liability was recorded within other current liabilities and $81 million was recorded within other long-term liabilities. Implementation Costs: Implementation costs are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. We believe the disclosure of implementation costs provides readers of our financial statements with more information on the total costs of our 2014-2018 Restructuring Program. Implementation costs primarily relate to reorganizing our operations and facilities in connection with our supply chain reinvention program and other identified productivity and cost saving initiatives. The costs include incremental expenses related to the closure of facilities, costs to terminate certain contracts and the simplification of our information systems. Within our continuing results of operations, we recorded implementation costs of $70 million in the second quarter of 2018 and $63 million in the second quarter of 2017 and $132 million in the first six months of 2018 and $117 million in the first six months of 2017 . We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs: During the three and six months ended June 30, 2018 and June 30, 2017 , and since inception of the 2014-2018 Restructuring Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes: Latin America AMEA Europe North America (1) Corporate (2) Total (in millions) For the Three Months Ended June 30, 2018 Restructuring Costs $ 12 $ 17 $ 63 $ 14 $ 6 $ 112 Implementation Costs 15 8 13 21 13 70 Total $ 27 $ 25 $ 76 $ 35 $ 19 $ 182 For the Three Months Ended June 30, 2017 Restructuring Costs $ 8 $ 48 $ 50 $ 26 $ 16 $ 148 Implementation Costs 10 10 19 13 11 63 Total $ 18 $ 58 $ 69 $ 39 $ 27 $ 211 For the Six Months Ended Restructuring Costs $ 36 $ 23 $ 70 $ 26 $ 9 $ 164 Implementation Costs 30 20 29 38 15 132 Total $ 66 $ 43 $ 99 $ 64 $ 24 $ 296 For the Six Months Ended Restructuring Costs $ 31 $ 73 $ 119 $ 65 $ 17 $ 305 Implementation Costs 20 20 31 25 21 117 Total $ 51 $ 93 $ 150 $ 90 $ 38 $ 422 Total Project 2014-2018 (3) Restructuring Costs $ 466 $ 471 $ 909 $ 445 $ 107 $ 2,398 Implementation Costs 182 149 301 291 236 1,159 Total $ 648 $ 620 $ 1,210 $ 736 $ 343 $ 3,557 (1) During 2018 and 2017 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. (2) During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard, we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income, segment operating income and restructuring and implementation costs by segment to reflect this reclassification, which had no impact to earnings before income taxes or net earnings. The benefit plan non-service income amounts no longer recorded in segment operating income are included within the Corporate column in the table above. The Corporate column also includes minor adjustments for rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through June 30, 2018 . |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Borrowing Arrangements | Note 8. Debt and Borrowing Arrangements Short-Term Borrowings: Our short-term borrowings and related weighted-average interest rates consisted of: As of June 30, 2018 As of December 31, 2017 Amount Outstanding Weighted- Average Rate Amount Outstanding Weighted- Average Rate (in millions) (in millions) Commercial paper $ 3,900 2.4 % $ 3,410 1.7 % Bank loans 174 13.4 % 107 11.5 % Total short-term borrowings $ 4,074 $ 3,517 As of June 30, 2018 , commercial paper issued and outstanding had between 2 and 172 days remaining to maturity. Commercial paper borrowings increased since year end primarily as a result of issuances to finance the payment of long-term debt maturities, dividend payments and share repurchases during the year. Some of our international subsidiaries maintain primarily uncommitted credit lines to meet short-term working capital needs. Collectively, these credit lines amounted to $1.8 billion at June 30, 2018 and $2.0 billion at December 31, 2017 . Borrowings on these lines were $174 million at June 30, 2018 and $107 million at December 31, 2017 . Borrowing Arrangements: On April 2, 2018, in connection with the tender offer described below, we entered into a $2.0 billion revolving credit agreement for a 364 -day senior unsecured credit facility that is scheduled to expire on April 1, 2019. The agreement includes the same terms and conditions as our existing $4.5 billion multi-year credit facility discussed below. On April 17, 2018, we borrowed $714 million on this facility to fund the debt tender described below and availability under the facility was reduced to match the borrowed amount. On May 7, 2018, we repaid the $714 million from the net proceeds received from the May 2018 $2.5 billion long-term debt issuance and terminated this credit facility. On February 28, 2018, to supplement our commercial paper program, we entered into a $1.5 billion revolving credit agreement for a 364 -day senior unsecured credit facility that is scheduled to expire on February 27, 2019 . The agreement replaces our previous credit agreement that matured on February 28, 2018 and includes the same terms and conditions as our existing $4.5 billion multi-year credit facility discussed below. As of June 30, 2018 , no amounts were drawn on the facility. We also maintain a $4.5 billion multi-year senior unsecured revolving credit facility for general corporate purposes, including working capital needs, and to support our commercial paper program. On October 14, 2016, the revolving credit agreement, which was scheduled to expire on October 11, 2018 , was extended through October 11, 2021 . The revolving credit agreement includes a covenant that we maintain a minimum shareholders’ equity of at least $24.6 billion , excluding accumulated other comprehensive earnings/(losses) and the cumulative effects of any changes in accounting principles. At June 30, 2018 , we complied with this covenant as our shareholders’ equity, as defined by the covenant, was $35.7 billion . The revolving credit facility agreement also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. As of June 30, 2018 , no amounts were drawn on the facility. Long-Term Debt: On May 3, 2018, we issued $2.5 billion of U.S. dollar-denominated, fixed-rate notes consisting of: • $750 million of 3.000% notes that mature in May 2020 • $750 million of 3.625% notes that mature in May 2023 • $700 million of 4.125% notes that mature in May 2028 • $300 million of 4.625% notes that mature in May 2048 On May 7, 2018, we received net proceeds of $2.48 billion that were used to repay amounts outstanding under our revolving credit agreement facility and for other general corporate purposes, including the repayment of outstanding commercial paper borrowings and other debt. We recorded approximately $22 million of discounts and deferred financing costs net of various fees associated for the bond transaction and underwriter fee reimbursement, which will be amortized into interest expense over the life of the notes. On April 17, 2018, we completed a cash tender offer and retired $570 million of the long-term U.S. dollar debt consisting of: • $241 million of our 6.500% notes due in February 2040 • $97.6 million of our 5.375% notes due in February 2020 • $75.8 million of our 6.500% notes due in November 2031 • $72.1 million of our 6.875% notes due in February 2038 • $42.6 million of our 6.125% notes due in August 2018 • $29.3 million of our 6.875% notes due in January 2039 • $11.7 million of our 7.000% notes due in August 2037 We financed the repurchase of the notes, including the payment of accrued interest and other costs incurred, from the $2.0 billion revolving credit agreement entered into on April 2, 2018. We recorded a loss on debt extinguishment of $140 million within interest and other expense, net related to the amount we paid to retire the debt in excess of its carrying value and from recognizing unamortized discounts, deferred financing and other cash costs in earnings at the time of the debt extinguishment. Cash costs related to tendering the debt are included in long-term debt repayments in the condensed consolidated statement of cash flows for the six months ended June 30, 2018 . On March 2, 2018, we launched an offering of C$600 million of 3.250% Canadian-dollar denominated notes that mature on March 7, 2025. On March 7, 2018, we received C$595 million (or $461 million ) of proceeds, net of discounts and underwriting fees, to be used for general corporate purposes. We recorded approximately $4 million of discounts and deferred financing costs, which will be amortized into interest expense over the life of the notes. On February 1, 2018, $478 million of our 6.125% U.S. dollar notes matured. The notes and accrued interest to date were paid with the issuance of commercial paper and cash on hand. On January 26, 2018, fr 250 million (or $260 million ) of our 0.080% Swiss franc notes matured. The notes and accrued interest to date were paid with the issuance of commercial paper and cash on hand. Our weighted-average interest rate on our total debt was 2.4% as of June 30, 2018 , 2.1% as of December 31, 2017 and 2.2% as of December 31, 2016 . Fair Value of Our Debt: The fair value of our short-term borrowings at June 30, 2018 and December 31, 2017 reflects current market interest rates and approximates the amounts we have recorded on our condensed consolidated balance sheets. The fair value of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations. At June 30, 2018 , the aggregate fair value of our total debt was $20,089 million and its carrying value was $19,711 million . At December 31, 2017 , the aggregate fair value of our total debt was $18,354 million and its carrying value was $17,652 million . Interest and Other Expense, net: Interest and other expense, net consisted of: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Interest expense, debt $ 115 $ 103 $ 217 $ 206 Loss on debt extinguishment 140 11 140 11 Loss/(gain) related to interest rate swaps 5 — (9 ) — Other (income)/expense, net (12 ) 10 (20 ) 26 Interest and other expense, net $ 248 $ 124 $ 328 $ 243 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 9. Financial Instruments Fair Value of Derivative Instruments: Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of June 30, 2018 As of December 31, 2017 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 20 $ 403 $ 15 $ 509 Net investment hedge contracts 385 — — — $ 405 $ 403 $ 15 $ 509 Derivatives not designated as accounting hedges: Currency exchange contracts $ 111 $ 53 $ 65 $ 76 Commodity contracts 217 122 84 229 Interest rate contracts 7 5 15 11 $ 335 $ 180 $ 164 $ 316 Total fair value $ 740 $ 583 $ 179 $ 825 Derivatives designated as accounting hedges include cash flow, fair value and net investment hedge contracts. Derivatives not designated as accounting hedges include our economic hedges. Non-U.S. dollar denominated debt, designated as a hedge of our net investments in non-U.S. operations, is not reflected in the table above, but is included in long-term debt summarized in Note 8, Debt and Borrowing Arrangements . We record derivative assets and liabilities on a gross basis on our condensed consolidated balance sheets. The fair value of our asset derivatives is recorded within other current assets and the fair value of our liability derivatives is recorded within other current liabilities. The fair values (asset/(liability)) of our derivative instruments were determined using: As of June 30, 2018 Total Fair Value of Net Asset/(Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Currency exchange contracts $ 58 $ — $ 58 $ — Commodity contracts 95 65 30 — Interest rate contracts (381 ) — (381 ) — Net investment hedge contracts 385 — 385 — Total derivatives $ 157 $ 65 $ 92 $ — As of December 31, 2017 Total Fair Value of Net Asset/(Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Currency exchange contracts $ (11 ) $ — $ (11 ) $ — Commodity contracts (145 ) (138 ) (7 ) — Interest rate contracts (490 ) — (490 ) — Total derivatives $ (646 ) $ (138 ) $ (508 ) $ — Level 1 financial assets and liabilities consist of exchange-traded commodity futures and listed options. The fair value of these instruments is determined based on quoted market prices on commodity exchanges. We are required to maintain cash margin accounts in connection with funding the settlement of our open positions, and the margin requirements generally fluctuate daily based on market conditions. In connection with our exchange-traded derivatives, we have recorded margin requirements of $25 million as of June 30, 2018 within accounts payable and margin deposits of $171 million as of December 31, 2017 within other current assets. Level 2 financial assets and liabilities consist primarily of over-the-counter (“OTC”) currency exchange forwards, options and swaps; commodity forwards and options; and interest rate swaps. Our currency exchange contracts are valued using an income approach based on observable market forward rates less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the observable market commodity index prices less the contract rate multiplied by the notional amount or based on pricing models that rely on market observable inputs such as commodity prices. Our calculation of the fair value of interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the observable market interest rate curve. Our calculation of the fair value of financial instruments takes into consideration the risk of nonperformance, including counterparty credit risk. Our OTC derivative transactions are governed by International Swap Dealers Association agreements and other standard industry contracts. Under these agreements, we do not post nor require collateral from our counterparties. The majority of our derivative contracts do not have a legal right of set-off. We manage the credit risk in connection with these and all our derivatives by entering into transactions with counterparties with investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. Derivative Volume: The net notional values of our hedging instruments were: Notional Amount As of June 30, 2018 As of December 31, 2017 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,378 $ 7,089 Forecasted transactions 2,355 2,213 Commodity contracts 580 1,204 Interest rate contracts 9,117 6,532 Net investment hedge contracts 7,114 — Net investment hedge debt: Euro notes 3,581 3,679 British pound sterling notes 448 459 Swiss franc notes 1,413 1,694 Canadian dollar notes 457 — Cash Flow Hedges: Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Accumulated (loss)/gain at beginning of period $ (159 ) $ (103 ) $ (113 ) $ (121 ) Transfer of realized (gains)/losses in fair value to earnings 5 (4 ) (9 ) 3 Unrealized gain/(loss) in fair value 21 16 (11 ) 27 Accumulated (loss)/gain at end of period $ (133 ) $ (91 ) $ (133 ) $ (91 ) After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Currency exchange contracts – forecasted transactions $ — $ 1 $ — $ 1 Commodity contracts $ — $ 3 $ — $ (4 ) Interest rate contracts (5 ) — 9 — Total $ (5 ) $ 4 $ 9 $ (3 ) After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Currency exchange contracts – forecasted transactions $ — $ (14 ) $ — $ (26 ) Commodity contracts — 6 — 6 Interest rate contracts 21 24 (11 ) 47 Total $ 21 $ 16 $ (11 ) $ 27 We recognized a loss of $5 million in the three months and a gain of $9 million in the six months ended June 30, 2018 in interest and other expense, net related to certain forward-starting interest rate swaps for which the planned timing of the related forecasted debt was changed. We record pre-tax (i) gains or losses reclassified from accumulated other comprehensive earnings/(losses) into earnings, (ii) gains or losses on ineffectiveness and (iii) gains or losses on amounts excluded from effectiveness testing in: • cost of sales for currency exchange contracts related to forecasted transactions; • cost of sales for commodity contracts; and • interest and other expense, net for interest rate contracts and currency exchange contracts related to intercompany loans. Based on current market conditions, we would expect to transfer gains of less than $1 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. Cash Flow Hedge Coverage: As of June 30, 2018 , our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 5 years and 4 months. Fair Value Hedges: Pre-tax gains/(losses) due to changes in fair value of our interest rate swaps and related hedged long-term debt were recorded in interest and other expense, net: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Borrowings $ — $ 1 $ 1 $ (2 ) Derivatives — (1 ) (1 ) 2 Total $ — $ — $ — $ — The carrying amount of our hedged fixed interest rate debt is detailed below and is recorded in the current portion of long-term debt as this debt will mature during the third quarter of 2018. As of June 30, 2018 As of December 31, 2017 (in millions) Notional value of borrowings (and related derivatives) $ (279 ) $ (801 ) Cumulative fair value hedging adjustments (1 ) — Carrying amount of borrowings $ (280 ) $ (801 ) Hedges of Net Investments in International Operations: Beginning in the first quarter of 2018, we entered into cross-currency interest rate swaps and forwards to hedge certain investments in our non-U.S. operations against movements in exchange rates. The aggregate notional value as of June 30, 2018 was $7.1 billion . The after-tax gain on these net investment hedge contracts was recorded in the cumulative translation adjustment section of other comprehensive income and was $276 million for the three months and $265 million for the six months ended June 30, 2018 . There were no after-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings in the three or six months ended June 30, 2018 . We elected to record changes in the fair value of amounts excluded from the assessment of effectiveness in net earnings. Amounts excluded from the assessment of hedge effectiveness were $33 million for the three months and $50 million for the six months ended June 30, 2018 and were recorded as income in interest and other expense, net. After-tax gains/(losses) related to hedges of net investments in international operations in the form of euro, British pound sterling, Swiss franc and Canadian dollar-denominated debt were recorded within the cumulative translation adjustment section of other comprehensive income and were: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Euro notes $ 151 $ (168 ) $ 76 $ (196 ) British pound sterling notes 21 (10 ) 8 (15 ) Swiss franc notes 42 (49 ) 16 (64 ) Canadian notes 6 — 4 — Economic Hedges: Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Three Months Ended June 30, For the Six Months Ended Location of Gain/(Loss) Recognized in Earnings 2018 2017 2018 2017 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 7 $ 3 $ 14 $ 5 Interest and other expense, net Forecasted transactions 72 18 65 2 Cost of sales Forecasted transactions — 1 (5 ) (2 ) Interest and other expense, net Forecasted transactions (1 ) 2 (4 ) 2 Selling, general and administrative expenses Commodity contracts (48 ) (97 ) 101 (160 ) Cost of sales Total $ 30 $ (73 ) $ 171 $ (153 ) |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 10. Benefit Plans Pension Plans Components of Net Periodic Pension Cost: Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended 2018 2017 2018 2017 (in millions) Service cost $ 10 $ 10 $ 37 $ 38 Interest cost 15 16 50 49 Expected return on plan assets (22 ) (25 ) (114 ) (108 ) Amortization: Net loss from experience differences 9 9 42 40 Prior service cost/(benefit) — — (1 ) — Settlement losses and other expenses 8 18 — 1 Net periodic pension cost $ 20 $ 28 $ 14 $ 20 U.S. Plans Non-U.S. Plans For the Six Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Service cost $ 22 $ 22 $ 75 $ 77 Interest cost 30 31 102 97 Expected return on plan assets (44 ) (50 ) (231 ) (212 ) Amortization: Net loss from experience differences 20 17 84 81 Prior service cost/(benefit) 1 1 (1 ) (1 ) Settlement losses and other expenses 15 21 — 2 Net periodic pension cost $ 44 $ 42 $ 29 $ 44 Within settlement losses and other expenses are losses of $3 million for the three and six months ended June 30, 2018 and $11 million for the three and six months ended June 30, 2017 , that are related to our 2014-2018 Restructuring Program and are recorded within asset impairment and exit costs on our condensed consolidated statements of earnings. Employer Contributions: During the six months ended June 30, 2018 , we contributed $5 million to our U.S. pension plans and $199 million to our non-U.S. pension plans, including $137 million to plans in the United Kingdom and Ireland. We make contributions to our pension plans in accordance with local funding arrangements and statutory minimum funding requirements. Discretionary contributions are made to the extent that they are tax deductible and do not generate an excise tax liability. As of June 30, 2018 , over the remainder of 2018, we plan to make further contributions of approximately $34 million to our U.S. plans and approximately $102 million to our non-U.S. plans. Our actual contributions may be different due to many factors, including changes in tax and other benefit laws, significant differences between expected and actual pension asset performance or interest rates. Multiemployer Pension Plans: In the United States, we contribute to multiemployer pension plans based on obligations arising from our collective bargaining agreements. The most individually significant multiemployer plan we participated in as of the beginning of the second quarter of 2018 was the Bakery and Confectionery Union and Industry International Pension Fund (the “Fund”). Our obligation to contribute to the Fund arose with respect to 8 collective bargaining agreements covering most of our employees represented by the Bakery, Confectionery, Tobacco and Grain Millers Union (“BCTGM”). All of those collective bargaining agreements expired in 2016. During the second quarter of 2018, we implemented two aspects of our second revised last, best and final offer made to the BCTGM with respect to 7 of the 8 expired collective bargaining agreements. Implementation resulted in our withdrawing from the Fund with respect to those employees covered by the 7 collective bargaining agreements. In connection with that action, we estimated a partial withdrawal liability of $567 million and within our North America segment, we recorded a discounted liability and charge of $408 million , $305 million net of tax, which represents our best estimate of the partial withdrawal liability absent an assessment from the Fund. We may receive an assessment in 2018 or later, and the ultimate withdrawal liability may change from the currently estimated amount. We will record any future adjustments in the period during which the liability is confirmed or as new information becomes available. We expect to pay the liability in installments over a period of 20 years from the date of the assessment. We determined the net present value of the liability using a risk-free interest rate. We recorded the pre-tax non-cash charge in selling, general and administrative expense (and in other non-cash items, net in the condensed consolidated statement of cash flows) and the liability in long-term other liabilities. Postretirement Benefit Plans Net periodic postretirement health care benefit consisted of the following: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Service cost $ 1 $ 2 $ 3 $ 4 Interest cost 3 3 7 7 Amortization: Net loss from experience differences 3 4 7 7 Prior service credit (1) (9 ) (10 ) (19 ) (20 ) Net periodic postretirement health care benefit $ (2 ) $ (1 ) $ (2 ) $ (2 ) (1) Amortization of prior service credit included gains of $8 million for the three months ended June 30, 2018 and June 30, 2017 and $16 million for the six months ended June 30, 2018 and June 30, 2017 related to a change in the eligibility requirement and a change in benefits to Medicare-eligible participants. Postemployment Benefit Plans Net periodic postemployment cost consisted of the following: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Service cost $ 1 $ 2 $ 3 $ 3 Interest cost 1 1 2 2 Amortization of net gains — (1 ) (1 ) (2 ) Net periodic postemployment cost $ 2 $ 2 $ 4 $ 3 |
Stock Plans
Stock Plans | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Note 11. Stock Plans Stock Options: Stock option activity is reflected below: Shares Subject to Option Weighted- Average Exercise or Grant Price Per Share Average Remaining Contractual Term Aggregate Intrinsic Value Balance at January 1, 2018 48,434,655 $29.92 5 years $ 626 million Annual grant to eligible employees 5,666,530 43.51 Additional options issued 82,720 40.82 Total options granted 5,749,250 43.47 Options exercised (1) (4,541,932 ) 25.60 $ 81 million Options canceled (541,994 ) 38.39 Balance at June 30, 2018 49,099,979 31.81 6 years $ 478 million (1) Cash received from options exercised was $31 million in the three months and $116 million in the six months ended June 30, 2018 . The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $1 million in the three months and $9 million in the six months ended June 30, 2018 . Performance Share Units and Other Stock-Based Awards: Our performance share unit, deferred stock unit and historically granted restricted stock activity is reflected below: Number of Shares Grant Date Weighted-Average Fair Value Per Share (3) Weighted-Average Aggregate Fair Value (3) Balance at January 1, 2018 7,669,705 $39.74 Annual grant to eligible employees: Feb 22, 2018 Performance share units 1,048,770 51.23 Deferred stock units 788,310 43.51 Additional shares granted (1) 306,426 Various 40.97 Total shares granted 2,143,506 46.92 $ 101 million Vested (2) (2,162,663 ) 38.33 $ 83 million Forfeited (2) (352,565 ) 40.10 Balance at June 30, 2018 7,297,983 42.25 (1) Includes performance share units and deferred stock units. (2) Includes performance share units, deferred stock units and historically granted restricted stock. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled less than $1 million in the three months and $4 million in the six months ended June 30, 2018 . (3) The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided. Share Repurchase Program: Between 2013 and 2017, our Board of Directors authorized the repurchase of a total of $13.7 billion of our Common Stock through December 31, 2018 . On January 31, 2018 , our Finance Committee, with authorization delegated from our Board of Directors, approved an increase of $6.0 billion in the share repurchase program, raising the authorization to $19.7 billion of Common Stock repurchases, and extended the program through December 31, 2020 . Repurchases under the program are determined by management and are wholly discretionary. Prior to January 1, 2018, we had repurchased $13.0 billion of Common Stock pursuant to this authorization. During the six months ended June 30, 2018 , we repurchased approximately 27.6 million shares of Common Stock at an average cost of $41.65 per share, or an aggregate cost of approximately $1.2 billion , all of which was paid during the period. All share repurchases were funded through available cash and commercial paper issuances. As of June 30, 2018 , we have $5.5 billion in remaining share repurchase capacity. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Legal Proceedings: We routinely are involved in legal proceedings, claims and governmental inspections or investigations (“Legal Matters”) arising in the ordinary course of our business. In February 2013 and March 2014, Cadbury India Limited (now known as Mondelez India Foods Private Limited), a subsidiary of Mondelēz International, and other parties received show cause notices from the Indian Central Excise Authority (the “Excise Authority”) calling upon the parties to demonstrate why the Excise Authority should not collect a total of 3.7 billion Indian rupees ( $55 million as of June 30, 2018 ) of unpaid excise tax and an equivalent amount of penalties, as well as interest, related to production at the same Indian facility. We contested these demands for unpaid excise taxes, penalties and interest. On March 27, 2015, after several hearings, the Commissioner of the Excise Authority issued an order denying the excise exemption that we claimed for the Indian facility and confirming the Excise Authority’s demands for total taxes and penalties in the amount of 5.8 billion Indian rupees ( $85 million as of June 30, 2018 ). We have appealed this order. In addition, the Excise Authority issued additional show cause notices in February 2015, December 2015 and October 2017 on the same issue but covering the periods January to October 2014, November 2014 to September 2015 and October 2015 to June 2017, respectively. These notices added a total of 4.9 billion Indian rupees ( $72 million as of June 30, 2018 ) of unpaid excise taxes as well as penalties to be determined up to an amount equivalent to that claimed by the Excise Authority plus interest. With the implementation of the new Goods and Services Tax in India in July 2017, we will not receive any further show cause notices for additional amounts on this issue. We believe that the decision to claim the excise tax benefit is valid and we are continuing to contest the show cause notices through the administrative and judicial process. On April 1, 2015 , the U.S. Commodity Futures Trading Commission ("CFTC") filed a complaint against Kraft Foods Group and Mondelēz Global LLC (“Mondelēz Global”) in the U.S. District Court for the Northern District of Illinois, Eastern Division (the “CFTC action”) following its investigation of activities related to the trading of December 2011 wheat futures contracts that occurred prior to the spin-off of Kraft Foods Group. The complaint alleges that Kraft Foods Group and Mondelēz Global (1) manipulated or attempted to manipulate the wheat markets during the fall of 2011; (2) violated position limit levels for wheat futures and (3) engaged in non-competitive trades by trading both sides of exchange-for-physical Chicago Board of Trade wheat contracts. The CFTC seeks civil monetary penalties of either triple the monetary gain for each violation of the Commodity Exchange Act (the “Act”) or $1 million for each violation of Section 6(c)(1), 6(c)(3) or 9(a)(2) of the Act and $140,000 for each additional violation of the Act, plus post-judgment interest; an order of permanent injunction prohibiting Kraft Foods Group and Mondelēz Global from violating specified provisions of the Act; disgorgement of profits; and costs and fees. Additionally, several class action complaints were filed against Kraft Foods Group and Mondelēz Global in the U.S. District Court for the Northern District of Illinois by investors in wheat futures and options on behalf of themselves and others similarly situated. The complaints make similar allegations as those made in the CFTC action and seek class action certification; an unspecified amount for damages, interest and unjust enrichment; costs and fees; and injunctive, declaratory and other unspecified relief. In June 2015, these suits were consolidated in the Northern District of Illinois. It is not possible to predict the outcome of these matters; however, based on our Separation and Distribution Agreement with Kraft Foods Group dated as of September 27, 2012, we expect to bear any monetary penalties or other payments in connection with the CFTC action. We are a party to various legal proceedings incidental to our business, including those noted above in this section. At present we believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations or cash flows. However, legal proceedings and government investigations are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial monetary damages. In addition, in matters for which conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices or requiring other remedies. An unfavorable outcome might result in a material adverse impact on our business, results of operations or financial position. Third-Party Guarantees: We enter into third-party guarantees primarily to cover long-term obligations of our vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures. At June 30, 2018 , we had no material third-party guarantees recorded on our condensed consolidated balance sheet. Tax Matters: We are a party to various tax matter proceedings incidental to our business. These proceedings are subject to inherent uncertainties, and unfavorable outcomes could subject us to additional tax liabilities and could materially adversely impact our business, results of operations or financial position. A tax indemnification matter related to our 2007 acquisition of the LU biscuit business was closed during the quarter ended June 30, 2018. The closure had no impact on net earnings, however, it did result in a $15 million tax benefit that was fully offset by an $11 million expense in selling, general and administrative expenses and a $4 million expense in interest and other expense, net. As part of our 2010 Cadbury acquisition, we became the responsible party for tax matters under a February 2, 2006 dated Deed of Tax Covenant between the Cadbury Schweppes PLC and related entities (“Schweppes”) and Black Lion Beverages and related entities. The tax matters included an ongoing transfer pricing case with the Spanish tax authorities related to the Schweppes businesses Cadbury divested prior to our acquisition of Cadbury. During the first quarter of 2017, the Spanish Supreme Court decided the case in our favor. As a result of the final ruling, during the first quarter of 2017, we recorded a favorable earnings impact of $46 million in selling, general and administrative expenses and $12 million in interest and other expense, net, for a total pre-tax impact of $58 million due to the non-cash reversal of Cadbury-related accrued liabilities related to this matter. We recorded a total of $4 million of income over the third and fourth quarters of 2017 in connection with the related bank guarantee releases. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Reclassifications from Accumulated Other Comprehensive Income | Note 13. Reclassifications from Accumulated Other Comprehensive Income The following table summarizes the changes in the accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net losses of $45 million in the second quarter of 2018 and $41 million in the second quarter of 2017 and $72 million in the first six months of 2018 and $83 million in the first six months of 2017 . For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (7,549 ) $ (8,375 ) $ (7,741 ) $ (8,914 ) Currency translation adjustments (718 ) 252 (558 ) 764 Tax (expense)/benefit (156 ) 128 (109 ) 159 Other comprehensive earnings/(losses) (874 ) 380 (667 ) 923 Less: (earnings)/loss attributable to noncontrolling interests 12 (12 ) (3 ) (16 ) Balance at end of period (8,411 ) (8,007 ) (8,411 ) (8,007 ) Pension and Other Benefit Plans: Balance at beginning of period $ (2,150 ) $ (2,086 ) $ (2,144 ) $ (2,087 ) Net actuarial gain/(loss) arising during period 38 16 45 9 Tax (expense)/benefit on net actuarial gain/(loss) (9 ) (2 ) (9 ) — Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (1) 44 42 91 83 Settlement losses and other expenses (1) 8 15 15 18 Tax expense/(benefit) on reclassifications (2) (12 ) (12 ) (25 ) (21 ) Currency impact 99 (92 ) 45 (121 ) Other comprehensive earnings/(losses) 168 (33 ) 162 (32 ) Balance at end of period (1,982 ) (2,119 ) (1,982 ) (2,119 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (159 ) $ (103 ) $ (113 ) $ (121 ) Net derivative gains/(losses) 17 22 (12 ) 29 Tax (expense)/benefit on net derivative gain/(loss) (4 ) (1 ) (4 ) 4 Losses/(gains) reclassified into net earnings: Currency exchange contracts – forecasted transactions (3) — (1 ) — — Commodity contracts (3) — (2 ) — 6 Interest rate contracts (4) 7 — (11 ) — Tax expense/(benefit) on reclassifications (2) (2 ) (1 ) 2 (3 ) Currency impact 8 (5 ) 5 (6 ) Other comprehensive earnings/(losses) 26 12 (20 ) 30 Balance at end of period (133 ) (91 ) (133 ) (91 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (9,858 ) $ (10,564 ) $ (9,998 ) $ (11,122 ) Total other comprehensive earnings/(losses) (680 ) 359 (525 ) 921 Less: (earnings)/loss attributable to noncontrolling interests 12 (12 ) (3 ) (16 ) Other comprehensive earnings/(losses) attributable to Mondelēz International (668 ) 347 (528 ) 905 Balance at end of period $ (10,526 ) $ (10,217 ) $ (10,526 ) $ (10,217 ) (1) These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 10, Benefit Plans . (2) Taxes reclassified to earnings are recorded within the provision for income taxes. (3) These reclassified gains or losses are recorded within cost of sales. (4) These reclassified gains or losses are recorded within interest and other expense, net. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes On December 22, 2017, the United States enacted tax reform legislation that included a broad range of business tax provisions, including a reduction in the U.S. federal tax rate from 35% to 21% . In addition to the tax rate reduction, the legislation establishes new provisions that affect our 2018 results, including but not limited to, the creation of a new minimum tax called the base erosion anti-abuse tax (BEAT); a new provision that taxes U.S. allocated expenses (e.g. interest and general administrative expenses) as well as currently taxes certain income from foreign operations (Global Intangible Low-Tax Income, or “GILTI”); a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; a new limitation on deductible interest expense; the repeal of the domestic manufacturing deduction; and limitations on the deductibility of certain employee compensation. Certain impacts of the new legislation would have generally required accounting to be completed in the period of enactment, however in response to the complexities of this new legislation, the SEC issued guidance to provide companies with relief. The SEC provided up to a one-year window for companies to finalize the accounting for the impacts of this new legislation and we anticipate finalizing our accounting during 2018. While our accounting for the enactment of the new U.S. tax legislation is not complete, during the three months ended June 30, 2018, we recorded an additional $2 million discrete net tax benefit, consisting of an $8 million decrease in our transition tax liability that was partially offset by $6 million of costs from other provisional tax reform updates. During the six months ended June 30, 2018, we recorded $87 million in discrete net tax costs primarily comprised of an increase to our transition tax liability of $86 million as a result of additional guidance issued by the Internal Revenue Service and various state taxing authorities, new state legislation enacted during the period and further refinement of various components of the underlying calculations. Based on current tax laws, our estimated annual effective tax rate for 2018 , excluding discrete tax impacts, is 21.9% , reflecting favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions and the reduction in the U.S. federal tax rate, partially offset by unfavorable provisions within the new U.S. tax reform legislation. Our 2018 second quarter effective tax rate of 5.6% was favorably impacted by a discrete net tax benefit of $32 million . The discrete net tax benefit primarily consisted of $27 million benefit from the release of uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions. Our effective tax rate for the six months ended June 30, 2018 of 22.8% was unfavorably impacted by net tax expense of $14 million from discrete one-time events. The discrete net tax expense primarily consisted of $86 million of additional transition tax liability recognized as an adjustment to the prior provisional estimate, offset by $43 million benefit from the release of uncertain tax positions due to expirations of statutes of limitations and audit settlements in various jurisdictions and a $22 million benefit related to pending Argentinean refund claims. As of the end of the second quarter of 2017 , our estimated annual effective tax rate for 2017 , excluding discrete tax impacts, was 25.8% , reflecting favorable impacts from the mix of pre-tax income in various non-U.S. tax jurisdictions, partially offset by an increase in domestic earnings. Our 2017 second quarter effective tax rate of 16.2% was favorably impacted by net tax benefits from $47 million of discrete one-time events. The discrete net tax benefits primarily consisted of a $46 million benefit from release of uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions. Our effective tax rate for the six months ended June 30, 2017 of 19.2% was favorably impacted by net tax benefits of $83 million from discrete one-time events. The discrete net tax benefits primarily consisted of a $62 million benefit from the release of uncertain tax positions due to expirations of statutes of limitations and audit settlements in various jurisdictions and a $16 million benefit relating to the U.S. domestic production activities deduction. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 15. Earnings per Share Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions, except per share data) Net earnings $ 325 $ 500 $ 1,269 $ 1,133 Noncontrolling interest (earnings) (2 ) (2 ) (8 ) (5 ) Net earnings attributable to Mondelēz International $ 323 $ 498 $ 1,261 $ 1,128 Weighted-average shares for basic EPS 1,475 1,519 1,482 1,524 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 13 20 14 20 Weighted-average shares for diluted EPS 1,488 1,539 1,496 1,544 Basic earnings per share attributable to Mondelēz International $ 0.22 $ 0.33 $ 0.85 $ 0.74 Diluted earnings per share attributable to Mondelēz International $ 0.22 $ 0.32 $ 0.84 $ 0.73 We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We excluded antidilutive stock options of 12.7 million in the second quarter of 2018 and 8.6 million in the second quarter of 2017 and 11.2 million in the first six months of 2018 and 7.7 million in the first six months of 2017 . |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 16. Segment Reporting We manufacture and market primarily snack food products, including biscuits (cookies, crackers and salted snacks), chocolate, gum & candy and various cheese & grocery products, as well as powdered beverage products. We manage our global business and report operating results through geographic units. We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise in our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions. We use segment operating income to evaluate segment performance and allocate resources. We believe it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating income excludes unrealized gains and losses on hedging activities (which are a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses) and amortization of intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. We exclude these items from segment operating income in order to provide better transparency of our segment operating results. Furthermore, we centrally manage benefit plan non-service income and interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the segment profitability measure that management reviews. Our segment net revenues and earnings were: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Net revenues: Latin America $ 774 $ 848 $ 1,665 $ 1,758 AMEA 1,360 1,394 2,902 2,885 Europe 2,303 2,171 5,009 4,536 North America 1,675 1,573 3,301 3,221 Net revenues $ 6,112 $ 5,986 $ 12,877 $ 12,400 Earnings before income taxes: Operating income: Latin America $ 92 $ 102 $ 218 $ 213 AMEA 177 161 405 342 Europe 367 321 864 714 North America (95 ) 225 180 517 Unrealized gains/(losses) on hedging activities 88 (46 ) 294 (97 ) General corporate expenses (91 ) (80 ) (155 ) (137 ) Amortization of intangibles (44 ) (44 ) (88 ) (88 ) Loss on divestiture — (3 ) — (3 ) Acquisition-related costs (13 ) — (13 ) — Operating income 481 636 1,705 1,461 Benefit plan non-service income (1) 15 5 28 20 Interest and other expense, net (248 ) (124 ) (328 ) (243 ) Earnings before income taxes $ 248 $ 517 $ 1,405 $ 1,238 (1) During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard, we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line item, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income and segment operating income to reflect this reclassification, which had no impact to earnings before income taxes or net earnings. Items impacting our segment operating results are discussed in Note 1, Basis of Presentation , Note 2, Divestitures and Acquisitions , Note 4, Property, Plant and Equipment , Note 5, Goodwill and Intangible Assets , Note 7, 2014-2018 Restructuring Program , and Note 12, Commitments and Contingencies . Also see Note 8, Debt and Borrowing Arrangements , and Note 9, Financial Instruments , for more information on our interest and other expense, net for each period. Net revenues by product category were: For the Three Months Ended June 30, 2018 Latin America AMEA Europe North America Total (in millions) Biscuits $ 192 $ 387 $ 810 $ 1,403 $ 2,792 Chocolate 161 440 1,003 46 1,650 Gum & Candy 224 236 200 226 886 Beverages 116 173 19 — 308 Cheese & Grocery 81 124 271 — 476 Total net revenues $ 774 $ 1,360 $ 2,303 $ 1,675 $ 6,112 For the Three Months Ended June 30, 2017 (1) Latin America AMEA Europe North America Total (in millions) Biscuits $ 200 $ 356 $ 734 $ 1,301 $ 2,591 Chocolate 194 424 930 50 1,598 Gum & Candy 241 238 204 222 905 Beverages 129 189 24 — 342 Cheese & Grocery 84 187 279 — 550 Total net revenues $ 848 $ 1,394 $ 2,171 $ 1,573 $ 5,986 For the Six Months Ended June 30, 2018 Latin America AMEA Europe North America Total (in millions) Biscuits $ 375 $ 829 $ 1,605 $ 2,736 $ 5,545 Chocolate 404 1,013 2,426 103 3,946 Gum & Candy 448 471 386 462 1,767 Beverages 277 345 47 — 669 Cheese & Grocery 161 244 545 — 950 Total net revenues $ 1,665 $ 2,902 $ 5,009 $ 3,301 $ 12,877 For the Six Months Ended June 30, 2017 (1) Latin America AMEA Europe North America Total (in millions) Biscuits $ 370 $ 756 $ 1,399 $ 2,634 $ 5,159 Chocolate 453 938 2,139 120 3,650 Gum & Candy 454 467 397 467 1,785 Beverages 322 362 65 — 749 Cheese & Grocery 159 362 536 — 1,057 Total net revenues $ 1,758 $ 2,885 $ 4,536 $ 3,221 $ 12,400 (1) During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results. For a complete set of consolidated financial statements and related notes, refer to our Annual Report on Form 10-K for the year ended December 31, 2017 . |
Principles of Consolidation | Principles of Consolidation: The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries. As of the close of the 2015 fiscal year, we deconsolidated and fully impaired our investment in our Venezuelan operations. As such, for all periods presented, we have excluded the results of operations, financial position and cash flows of our Venezuelan subsidiaries from our condensed consolidated financial statements. We account for investments over which we exercise significant influence under the equity method of accounting. Investments over which we do not have significant influence or control are not material and are carried at cost as there is no readily determinable fair value for the equity interests. |
Currency Translation and Highly Inflationary Accounting | Currency Translation and Highly Inflationary Accounting : We translate the results of operations of our subsidiaries from multiple currencies using average exchange rates during each period and translate balance sheet accounts using exchange rates at the end of each period. We record currency translation adjustments as a component of equity and realized exchange gains and losses on transactions in earnings. Highly inflationary accounting is triggered when a country’s three-year cumulative inflation rate exceeds 100%. It requires the remeasurement of financial statements of subsidiaries in the country from the functional currency of the subsidiary to our U.S. dollar reporting currency, with currency remeasurement gains or losses recorded in earnings. As of June 30, 2018 , none of our consolidated subsidiaries were subject to highly inflationary accounting. As discussed below, beginning on July 1, 2018, we expect to apply highly inflationary accounting for our operations in Argentina. Argentina. During the quarter ended June 30, 2018 , primarily based on published estimates which indicate that Argentina's three-year cumulative inflation rate has exceeded 100%, we concluded that Argentina has become a highly inflationary economy. Beginning July 1, 2018, we expect to apply highly inflationary accounting for our Argentinian subsidiaries. We will change the functional currency from the Argentinian peso to the U.S. dollar. Local currency monetary assets and liabilities will be remeasured into U.S. dollars using exchange rates as of the latest balance sheet date, with remeasurement adjustments and other transaction gains and losses recognized in net earnings. Our Argentinian operations contributed $267 million , or 2.1% of consolidated net revenues in the six months ended June 30, 2018 . Based on a review of our Argentinian peso-denominated monetary assets and liabilities, our Argentinian operations had an immaterial net monetary liability position as of June 30, 2018 . Other Countries. Since we sell in approximately 160 countries and have operations in over 80 countries, we monitor economic and currency-related risks and seek to take protective measures in response to these exposures. Some of the countries in which we do business have recently experienced periods of significant economic uncertainty and exchange rate volatility, including Brazil, China, Mexico, Russia, United Kingdom (Brexit), Ukraine, Turkey, Egypt, Nigeria, South Africa and Pakistan. We continue to monitor operations, currencies and net monetary exposures in these countries. At this time, we do not anticipate that these countries are at risk of becoming highly inflationary countries. |
Revenue Recognition | Revenue Recognition: We predominantly sell food and beverage products across several product categories and in all regions as detailed in Note 16, Segment Reporting . We recognize revenue when control over the products transfers to our customers, which generally occurs upon delivery or shipment of the products. A small percentage of our net revenues relates to the licensing of our intellectual property, predominantly brand and trade names, and we record these revenues when earned within the period of the license term. We account for product shipping, handling and insurance as fulfillment activities with revenues for these activities recorded within net revenue and costs recorded within cost of sales. Any taxes collected on behalf of government authorities are excluded from net revenues. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. We base these estimates of expected amounts principally on historical utilization and redemption rates. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one year or shorter duration. As such, we do not capitalize contract inception costs and we capitalize product fulfillment costs in accordance with U.S. GAAP and our inventory policies. We generally do not have any unbilled receivables at the end of a period. Deferred revenues are not material and primarily include customer advance payments typically collected a few days before product delivery, at which time deferred revenues are reclassified and recorded as net revenues. We generally do not receive noncash consideration for the sale of goods nor do we grant payment financing terms greater than one year. |
Transfers of Financial Assets | Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have non-recourse factoring arrangements in which we sell eligible trade receivables primarily to banks in exchange for cash. We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the banks. The outstanding principal amount of receivables under these arrangements amounted to $719 million as of June 30, 2018 and $843 million as of December 31, 2017 . The incremental cost of factoring receivables under this arrangement was not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows. |
New Accounting Pronouncements | New Accounting Pronouncements: In June 2018, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that requires entities to record share-based payment transactions for acquiring goods and services from non-employees at fair value as of adoption date. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. In February 2018, the FASB issued an ASU that permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 enactment of U.S. tax reform legislation. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. In August 2017, the FASB issued an ASU to better align hedge accounting with an entity’s risk management activities and improve disclosures surrounding hedging. For cash flow and net investment hedges as of the adoption date, the ASU requires a modified retrospective transition approach. Presentation and disclosure requirements related to this ASU are required prospectively. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We early adopted the standard as of January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. Refer to Note 9, Financial Instruments , for additional information. In February 2016, the FASB issued an ASU on lease accounting. The ASU revises existing U.S. GAAP and outlines a new model for lessors and lessees to use in accounting for lease contracts. The guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases, with the exception of short-term leases. In the statement of earnings, lessees will classify leases as either operating (resulting in straight-line expense) or financing (resulting in a front-loaded expense pattern). The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We anticipate adopting the new standard on January 1, 2019. We continue to make progress in our data collection and evaluation of our leasing arrangements, practical expedients, accounting policy elections and implementing our lease accounting system. We completed the initial design of changes to our business processes to meet the new lease accounting and disclosure requirements. At this time, we are unable to reasonably estimate the expected increase in assets and liabilities on our balance sheet for our operating leases. In January 2016, the FASB issued an ASU that provides updated guidance for the recognition, measurement, presentation and disclosure of financial assets and liabilities. The standard requires that equity investments (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) be measured at fair value, with changes in fair value recognized in net income. The standard also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The ASU is effective for fiscal years beginning after December 15, 2017. We adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. In May 2014, the FASB issued an ASU on revenue recognition from contracts with customers. The ASU outlines a new, single comprehensive model for companies to use in accounting for revenue. The core principle is that an entity should recognize revenue to depict the transfer of control over promised goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for the goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including significant judgments made in recognizing revenue. In 2016 and 2017, the FASB issued several ASUs that clarified principal versus agent (gross versus net) revenue presentation considerations, confirmed the accounting for certain prepaid stored-value products and clarified the guidance for identifying performance obligations within a contract, the accounting for licenses and partial sales of nonfinancial assets. The FASB also issued two ASUs providing technical corrections, narrow scope exceptions and practical expedients to clarify and improve the implementation of the new revenue recognition guidance. The revenue guidance is effective for annual reporting periods beginning after December 15, 2017. We adopted the new standard on January 1, 2018 on a full retrospective basis. There was no material financial impact from adopting the new revenue standards in any of the historical periods presented. On January 1, 2018, we adopted an ASU that changed the presentation of net periodic pension and postretirement costs on the condensed consolidated statements of earnings. As a result of this adoption, we disaggregated the components of our net periodic pension and postretirement benefit costs and moved components other than service costs to a new line item, benefit plan non-service income, located below operating income. Prior-period cost of sales, selling, general and administrative expenses and asset impairment and exit costs as well as segment operating income results were updated to reflect the reclassification. |
Reclassifications | Reclassifications: Certain amounts previously reported have been reclassified to conform to current-year presentation. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | Inventories consisted of the following: As of June 30, As of December 31, (in millions) Raw materials $ 726 $ 711 Finished product 2,070 1,975 2,796 2,686 Inventory reserves (113 ) (129 ) Inventories, net $ 2,683 $ 2,557 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of June 30, As of December 31, (in millions) Land and land improvements $ 439 $ 458 Buildings and building improvements 2,950 2,979 Machinery and equipment 10,947 11,195 Construction in progress 984 1,048 15,320 15,680 Accumulated depreciation (6,936 ) (7,003 ) Property, plant and equipment, net $ 8,384 $ 8,677 |
2014-2018 Restructuring Program | |
Property, Plant and Equipment [Line Items] | |
Schedule of Restructuring Charges Related to Property, Plant and Equipment | During the three and six months ended June 30, 2018 and June 30, 2017 , and since inception of the 2014-2018 Restructuring Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes: Latin America AMEA Europe North America (1) Corporate (2) Total (in millions) For the Three Months Ended June 30, 2018 Restructuring Costs $ 12 $ 17 $ 63 $ 14 $ 6 $ 112 Implementation Costs 15 8 13 21 13 70 Total $ 27 $ 25 $ 76 $ 35 $ 19 $ 182 For the Three Months Ended June 30, 2017 Restructuring Costs $ 8 $ 48 $ 50 $ 26 $ 16 $ 148 Implementation Costs 10 10 19 13 11 63 Total $ 18 $ 58 $ 69 $ 39 $ 27 $ 211 For the Six Months Ended Restructuring Costs $ 36 $ 23 $ 70 $ 26 $ 9 $ 164 Implementation Costs 30 20 29 38 15 132 Total $ 66 $ 43 $ 99 $ 64 $ 24 $ 296 For the Six Months Ended Restructuring Costs $ 31 $ 73 $ 119 $ 65 $ 17 $ 305 Implementation Costs 20 20 31 25 21 117 Total $ 51 $ 93 $ 150 $ 90 $ 38 $ 422 Total Project 2014-2018 (3) Restructuring Costs $ 466 $ 471 $ 909 $ 445 $ 107 $ 2,398 Implementation Costs 182 149 301 291 236 1,159 Total $ 648 $ 620 $ 1,210 $ 736 $ 343 $ 3,557 (1) During 2018 and 2017 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. (2) During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard, we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income, segment operating income and restructuring and implementation costs by segment to reflect this reclassification, which had no impact to earnings before income taxes or net earnings. The benefit plan non-service income amounts no longer recorded in segment operating income are included within the Corporate column in the table above. The Corporate column also includes minor adjustments for rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through June 30, 2018 . |
Property Plant and Equipment | Asset impairment and exit costs | |
Property, Plant and Equipment [Line Items] | |
Schedule of Restructuring Charges Related to Property, Plant and Equipment | In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) in the condensed consolidated statements of earnings within asset impairment and exit costs and within the segment results as follows (refer to Note 7, 2014-2018 Restructuring Program ). For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Latin America $ 6 $ 6 $ 14 $ 12 AMEA 4 30 8 42 Europe 1 4 6 42 North America 2 7 8 22 Non-cash property, plant and equipment write-downs $ 13 $ 47 $ 36 $ 118 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | Goodwill by segment was: As of June 30, As of December 31, (in millions) Latin America $ 821 $ 901 AMEA 3,289 3,371 Europe 7,655 7,880 North America 9,237 8,933 Goodwill $ 21,002 $ 21,085 |
Schedule of Intangible Assets Disclosure | Intangible assets consisted of the following: As of June 30, As of December 31, (in millions) Non-amortizable intangible assets $ 17,463 $ 17,671 Amortizable intangible assets 2,363 2,386 19,826 20,057 Accumulated amortization (1,464 ) (1,418 ) Intangible assets, net $ 18,362 $ 18,639 |
Schedule of Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: Goodwill Intangible Assets, at cost (in millions) Balance at January 1, 2018 $ 21,085 $ 20,057 Currency/other (420 ) (441 ) Acquisition 337 210 Balance at June 30, 2018 $ 21,002 $ 19,826 |
2014-2018 Restructuring Progr29
2014-2018 Restructuring Program (Tables) - 2014-2018 Restructuring Program | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Program Liability | The 2014-2018 Restructuring Program liability activity for the six months ended June 30, 2018 was: Severance and related costs Asset Write-downs Total (in millions) Liability balance, January 1, 2018 $ 464 $ — $ 464 Charges 125 39 164 Cash spent (161 ) — (161 ) Non-cash settlements/adjustments — (39 ) (39 ) Currency (24 ) — (24 ) Liability balance, June 30, 2018 $ 404 $ — $ 404 |
Schedule of Restructuring and Implementation Costs by Segment | During the three and six months ended June 30, 2018 and June 30, 2017 , and since inception of the 2014-2018 Restructuring Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes: Latin America AMEA Europe North America (1) Corporate (2) Total (in millions) For the Three Months Ended June 30, 2018 Restructuring Costs $ 12 $ 17 $ 63 $ 14 $ 6 $ 112 Implementation Costs 15 8 13 21 13 70 Total $ 27 $ 25 $ 76 $ 35 $ 19 $ 182 For the Three Months Ended June 30, 2017 Restructuring Costs $ 8 $ 48 $ 50 $ 26 $ 16 $ 148 Implementation Costs 10 10 19 13 11 63 Total $ 18 $ 58 $ 69 $ 39 $ 27 $ 211 For the Six Months Ended Restructuring Costs $ 36 $ 23 $ 70 $ 26 $ 9 $ 164 Implementation Costs 30 20 29 38 15 132 Total $ 66 $ 43 $ 99 $ 64 $ 24 $ 296 For the Six Months Ended Restructuring Costs $ 31 $ 73 $ 119 $ 65 $ 17 $ 305 Implementation Costs 20 20 31 25 21 117 Total $ 51 $ 93 $ 150 $ 90 $ 38 $ 422 Total Project 2014-2018 (3) Restructuring Costs $ 466 $ 471 $ 909 $ 445 $ 107 $ 2,398 Implementation Costs 182 149 301 291 236 1,159 Total $ 648 $ 620 $ 1,210 $ 736 $ 343 $ 3,557 (1) During 2018 and 2017 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. (2) During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard, we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income, segment operating income and restructuring and implementation costs by segment to reflect this reclassification, which had no impact to earnings before income taxes or net earnings. The benefit plan non-service income amounts no longer recorded in segment operating income are included within the Corporate column in the table above. The Corporate column also includes minor adjustments for rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through June 30, 2018 . |
Debt and Borrowing Arrangemen30
Debt and Borrowing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings and Related Weighted-Average Interest Rates | Our short-term borrowings and related weighted-average interest rates consisted of: As of June 30, 2018 As of December 31, 2017 Amount Outstanding Weighted- Average Rate Amount Outstanding Weighted- Average Rate (in millions) (in millions) Commercial paper $ 3,900 2.4 % $ 3,410 1.7 % Bank loans 174 13.4 % 107 11.5 % Total short-term borrowings $ 4,074 $ 3,517 |
Schedule of Interest and Other Expense | Interest and other expense, net consisted of: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Interest expense, debt $ 115 $ 103 $ 217 $ 206 Loss on debt extinguishment 140 11 140 11 Loss/(gain) related to interest rate swaps 5 — (9 ) — Other (income)/expense, net (12 ) 10 (20 ) 26 Interest and other expense, net $ 248 $ 124 $ 328 $ 243 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash Flow Hedges | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Cash Flow Hedges Effect on Accumulated Other Comprehensive Earnings/(Losses), Net of Taxes | Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Accumulated (loss)/gain at beginning of period $ (159 ) $ (103 ) $ (113 ) $ (121 ) Transfer of realized (gains)/losses in fair value to earnings 5 (4 ) (9 ) 3 Unrealized gain/(loss) in fair value 21 16 (11 ) 27 Accumulated (loss)/gain at end of period $ (133 ) $ (91 ) $ (133 ) $ (91 ) |
Schedule of Effects of Derivative Instruments | After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Currency exchange contracts – forecasted transactions $ — $ 1 $ — $ 1 Commodity contracts $ — $ 3 $ — $ (4 ) Interest rate contracts (5 ) — 9 — Total $ (5 ) $ 4 $ 9 $ (3 ) After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Currency exchange contracts – forecasted transactions $ — $ (14 ) $ — $ (26 ) Commodity contracts — 6 — 6 Interest rate contracts 21 24 (11 ) 47 Total $ 21 $ 16 $ (11 ) $ 27 |
Fair Value Hedges | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Effects of Derivative Instruments | Pre-tax gains/(losses) due to changes in fair value of our interest rate swaps and related hedged long-term debt were recorded in interest and other expense, net: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Borrowings $ — $ 1 $ 1 $ (2 ) Derivatives — (1 ) (1 ) 2 Total $ — $ — $ — $ — |
Economic Hedging | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Effects of Derivative Instruments | Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Three Months Ended June 30, For the Six Months Ended Location of Gain/(Loss) Recognized in Earnings 2018 2017 2018 2017 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 7 $ 3 $ 14 $ 5 Interest and other expense, net Forecasted transactions 72 18 65 2 Cost of sales Forecasted transactions — 1 (5 ) (2 ) Interest and other expense, net Forecasted transactions (1 ) 2 (4 ) 2 Selling, general and administrative expenses Commodity contracts (48 ) (97 ) 101 (160 ) Cost of sales Total $ 30 $ (73 ) $ 171 $ (153 ) |
Net investment hedge debt | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Hedges of Net Investments in International Operations | After-tax gains/(losses) related to hedges of net investments in international operations in the form of euro, British pound sterling, Swiss franc and Canadian dollar-denominated debt were recorded within the cumulative translation adjustment section of other comprehensive income and were: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Euro notes $ 151 $ (168 ) $ 76 $ (196 ) British pound sterling notes 21 (10 ) 8 (15 ) Swiss franc notes 42 (49 ) 16 (64 ) Canadian notes 6 — 4 — |
Derivative | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of June 30, 2018 As of December 31, 2017 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 20 $ 403 $ 15 $ 509 Net investment hedge contracts 385 — — — $ 405 $ 403 $ 15 $ 509 Derivatives not designated as accounting hedges: Currency exchange contracts $ 111 $ 53 $ 65 $ 76 Commodity contracts 217 122 84 229 Interest rate contracts 7 5 15 11 $ 335 $ 180 $ 164 $ 316 Total fair value $ 740 $ 583 $ 179 $ 825 |
Schedule of Derivative Instruments Fair Value and Measurement Inputs | The fair values (asset/(liability)) of our derivative instruments were determined using: As of June 30, 2018 Total Fair Value of Net Asset/(Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Currency exchange contracts $ 58 $ — $ 58 $ — Commodity contracts 95 65 30 — Interest rate contracts (381 ) — (381 ) — Net investment hedge contracts 385 — 385 — Total derivatives $ 157 $ 65 $ 92 $ — As of December 31, 2017 Total Fair Value of Net Asset/(Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Currency exchange contracts $ (11 ) $ — $ (11 ) $ — Commodity contracts (145 ) (138 ) (7 ) — Interest rate contracts (490 ) — (490 ) — Total derivatives $ (646 ) $ (138 ) $ (508 ) $ — |
Schedule of Notional Values of Derivative Instruments | The net notional values of our hedging instruments were: Notional Amount As of June 30, 2018 As of December 31, 2017 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,378 $ 7,089 Forecasted transactions 2,355 2,213 Commodity contracts 580 1,204 Interest rate contracts 9,117 6,532 Net investment hedge contracts 7,114 — Net investment hedge debt: Euro notes 3,581 3,679 British pound sterling notes 448 459 Swiss franc notes 1,413 1,694 Canadian dollar notes 457 — |
Borrowings | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Notional Values of Derivative Instruments | The carrying amount of our hedged fixed interest rate debt is detailed below and is recorded in the current portion of long-term debt as this debt will mature during the third quarter of 2018. As of June 30, 2018 As of December 31, 2017 (in millions) Notional value of borrowings (and related derivatives) $ (279 ) $ (801 ) Cumulative fair value hedging adjustments (1 ) — Carrying amount of borrowings $ (280 ) $ (801 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended 2018 2017 2018 2017 (in millions) Service cost $ 10 $ 10 $ 37 $ 38 Interest cost 15 16 50 49 Expected return on plan assets (22 ) (25 ) (114 ) (108 ) Amortization: Net loss from experience differences 9 9 42 40 Prior service cost/(benefit) — — (1 ) — Settlement losses and other expenses 8 18 — 1 Net periodic pension cost $ 20 $ 28 $ 14 $ 20 U.S. Plans Non-U.S. Plans For the Six Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Service cost $ 22 $ 22 $ 75 $ 77 Interest cost 30 31 102 97 Expected return on plan assets (44 ) (50 ) (231 ) (212 ) Amortization: Net loss from experience differences 20 17 84 81 Prior service cost/(benefit) 1 1 (1 ) (1 ) Settlement losses and other expenses 15 21 — 2 Net periodic pension cost $ 44 $ 42 $ 29 $ 44 |
Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Net periodic postretirement health care benefit consisted of the following: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Service cost $ 1 $ 2 $ 3 $ 4 Interest cost 3 3 7 7 Amortization: Net loss from experience differences 3 4 7 7 Prior service credit (1) (9 ) (10 ) (19 ) (20 ) Net periodic postretirement health care benefit $ (2 ) $ (1 ) $ (2 ) $ (2 ) (1) Amortization of prior service credit included gains of $8 million for the three months ended June 30, 2018 and June 30, 2017 and $16 million for the six months ended June 30, 2018 and June 30, 2017 related to a change in the eligibility requirement and a change in benefits to Medicare-eligible participants. |
Postemployment Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Net periodic postemployment cost consisted of the following: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Service cost $ 1 $ 2 $ 3 $ 3 Interest cost 1 1 2 2 Amortization of net gains — (1 ) (1 ) (2 ) Net periodic postemployment cost $ 2 $ 2 $ 4 $ 3 |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Options Activity | Stock option activity is reflected below: Shares Subject to Option Weighted- Average Exercise or Grant Price Per Share Average Remaining Contractual Term Aggregate Intrinsic Value Balance at January 1, 2018 48,434,655 $29.92 5 years $ 626 million Annual grant to eligible employees 5,666,530 43.51 Additional options issued 82,720 40.82 Total options granted 5,749,250 43.47 Options exercised (1) (4,541,932 ) 25.60 $ 81 million Options canceled (541,994 ) 38.39 Balance at June 30, 2018 49,099,979 31.81 6 years $ 478 million (1) Cash received from options exercised was $31 million in the three months and $116 million in the six months ended June 30, 2018 . The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $1 million in the three months and $9 million in the six months ended June 30, 2018 . |
Deferred Stock Units, Performance Units and Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Performance Share Units and Stock-Based Awards Activity | Our performance share unit, deferred stock unit and historically granted restricted stock activity is reflected below: Number of Shares Grant Date Weighted-Average Fair Value Per Share (3) Weighted-Average Aggregate Fair Value (3) Balance at January 1, 2018 7,669,705 $39.74 Annual grant to eligible employees: Feb 22, 2018 Performance share units 1,048,770 51.23 Deferred stock units 788,310 43.51 Additional shares granted (1) 306,426 Various 40.97 Total shares granted 2,143,506 46.92 $ 101 million Vested (2) (2,162,663 ) 38.33 $ 83 million Forfeited (2) (352,565 ) 40.10 Balance at June 30, 2018 7,297,983 42.25 (1) Includes performance share units and deferred stock units. (2) Includes performance share units, deferred stock units and historically granted restricted stock. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled less than $1 million in the three months and $4 million in the six months ended June 30, 2018 . (3) The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided. |
Reclassifications from Accumu34
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Earnings/(Losses) | The following table summarizes the changes in the accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net losses of $45 million in the second quarter of 2018 and $41 million in the second quarter of 2017 and $72 million in the first six months of 2018 and $83 million in the first six months of 2017 . For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (7,549 ) $ (8,375 ) $ (7,741 ) $ (8,914 ) Currency translation adjustments (718 ) 252 (558 ) 764 Tax (expense)/benefit (156 ) 128 (109 ) 159 Other comprehensive earnings/(losses) (874 ) 380 (667 ) 923 Less: (earnings)/loss attributable to noncontrolling interests 12 (12 ) (3 ) (16 ) Balance at end of period (8,411 ) (8,007 ) (8,411 ) (8,007 ) Pension and Other Benefit Plans: Balance at beginning of period $ (2,150 ) $ (2,086 ) $ (2,144 ) $ (2,087 ) Net actuarial gain/(loss) arising during period 38 16 45 9 Tax (expense)/benefit on net actuarial gain/(loss) (9 ) (2 ) (9 ) — Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (1) 44 42 91 83 Settlement losses and other expenses (1) 8 15 15 18 Tax expense/(benefit) on reclassifications (2) (12 ) (12 ) (25 ) (21 ) Currency impact 99 (92 ) 45 (121 ) Other comprehensive earnings/(losses) 168 (33 ) 162 (32 ) Balance at end of period (1,982 ) (2,119 ) (1,982 ) (2,119 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (159 ) $ (103 ) $ (113 ) $ (121 ) Net derivative gains/(losses) 17 22 (12 ) 29 Tax (expense)/benefit on net derivative gain/(loss) (4 ) (1 ) (4 ) 4 Losses/(gains) reclassified into net earnings: Currency exchange contracts – forecasted transactions (3) — (1 ) — — Commodity contracts (3) — (2 ) — 6 Interest rate contracts (4) 7 — (11 ) — Tax expense/(benefit) on reclassifications (2) (2 ) (1 ) 2 (3 ) Currency impact 8 (5 ) 5 (6 ) Other comprehensive earnings/(losses) 26 12 (20 ) 30 Balance at end of period (133 ) (91 ) (133 ) (91 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (9,858 ) $ (10,564 ) $ (9,998 ) $ (11,122 ) Total other comprehensive earnings/(losses) (680 ) 359 (525 ) 921 Less: (earnings)/loss attributable to noncontrolling interests 12 (12 ) (3 ) (16 ) Other comprehensive earnings/(losses) attributable to Mondelēz International (668 ) 347 (528 ) 905 Balance at end of period $ (10,526 ) $ (10,217 ) $ (10,526 ) $ (10,217 ) (1) These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 10, Benefit Plans . (2) Taxes reclassified to earnings are recorded within the provision for income taxes. (3) These reclassified gains or losses are recorded within cost of sales. (4) These reclassified gains or losses are recorded within interest and other expense, net. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions, except per share data) Net earnings $ 325 $ 500 $ 1,269 $ 1,133 Noncontrolling interest (earnings) (2 ) (2 ) (8 ) (5 ) Net earnings attributable to Mondelēz International $ 323 $ 498 $ 1,261 $ 1,128 Weighted-average shares for basic EPS 1,475 1,519 1,482 1,524 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 13 20 14 20 Weighted-average shares for diluted EPS 1,488 1,539 1,496 1,544 Basic earnings per share attributable to Mondelēz International $ 0.22 $ 0.33 $ 0.85 $ 0.74 Diluted earnings per share attributable to Mondelēz International $ 0.22 $ 0.32 $ 0.84 $ 0.73 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Net Revues and Earnings | Our segment net revenues and earnings were: For the Three Months Ended For the Six Months Ended 2018 2017 2018 2017 (in millions) Net revenues: Latin America $ 774 $ 848 $ 1,665 $ 1,758 AMEA 1,360 1,394 2,902 2,885 Europe 2,303 2,171 5,009 4,536 North America 1,675 1,573 3,301 3,221 Net revenues $ 6,112 $ 5,986 $ 12,877 $ 12,400 Earnings before income taxes: Operating income: Latin America $ 92 $ 102 $ 218 $ 213 AMEA 177 161 405 342 Europe 367 321 864 714 North America (95 ) 225 180 517 Unrealized gains/(losses) on hedging activities 88 (46 ) 294 (97 ) General corporate expenses (91 ) (80 ) (155 ) (137 ) Amortization of intangibles (44 ) (44 ) (88 ) (88 ) Loss on divestiture — (3 ) — (3 ) Acquisition-related costs (13 ) — (13 ) — Operating income 481 636 1,705 1,461 Benefit plan non-service income (1) 15 5 28 20 Interest and other expense, net (248 ) (124 ) (328 ) (243 ) Earnings before income taxes $ 248 $ 517 $ 1,405 $ 1,238 (1) During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard, we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line item, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income and segment operating income to reflect this reclassification, which had no impact to earnings before income taxes or net earnings. |
Schedule of Net Revenues by Product Category | Net revenues by product category were: For the Three Months Ended June 30, 2018 Latin America AMEA Europe North America Total (in millions) Biscuits $ 192 $ 387 $ 810 $ 1,403 $ 2,792 Chocolate 161 440 1,003 46 1,650 Gum & Candy 224 236 200 226 886 Beverages 116 173 19 — 308 Cheese & Grocery 81 124 271 — 476 Total net revenues $ 774 $ 1,360 $ 2,303 $ 1,675 $ 6,112 For the Three Months Ended June 30, 2017 (1) Latin America AMEA Europe North America Total (in millions) Biscuits $ 200 $ 356 $ 734 $ 1,301 $ 2,591 Chocolate 194 424 930 50 1,598 Gum & Candy 241 238 204 222 905 Beverages 129 189 24 — 342 Cheese & Grocery 84 187 279 — 550 Total net revenues $ 848 $ 1,394 $ 2,171 $ 1,573 $ 5,986 For the Six Months Ended June 30, 2018 Latin America AMEA Europe North America Total (in millions) Biscuits $ 375 $ 829 $ 1,605 $ 2,736 $ 5,545 Chocolate 404 1,013 2,426 103 3,946 Gum & Candy 448 471 386 462 1,767 Beverages 277 345 47 — 669 Cheese & Grocery 161 244 545 — 950 Total net revenues $ 1,665 $ 2,902 $ 5,009 $ 3,301 $ 12,877 For the Six Months Ended June 30, 2017 (1) Latin America AMEA Europe North America Total (in millions) Biscuits $ 370 $ 756 $ 1,399 $ 2,634 $ 5,159 Chocolate 453 938 2,139 120 3,650 Gum & Candy 454 467 397 467 1,785 Beverages 322 362 65 — 749 Cheese & Grocery 159 362 536 — 1,057 Total net revenues $ 1,758 $ 2,885 $ 4,536 $ 3,221 $ 12,400 (1) During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018USD ($)SubsidiaryCountry | Jun. 30, 2017USD ($) | [1] | Jun. 30, 2018USD ($)SubsidiaryCountry | Jun. 30, 2017USD ($) | [1] | Dec. 31, 2017USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||||||
Number of consolidated subsidiaries subject to highly inflationary accounting | Subsidiary | 0 | 0 | |||||
Net revenues | $ 6,112 | $ 5,986 | $ 12,877 | $ 12,400 | |||
Number of countries in which products are sold | Country | 160 | 160 | |||||
Number of countries in which entity operates (more than) | Country | 80 | 80 | |||||
Outstanding principal amount of receivables sold under factoring arrangement | $ 719 | $ 719 | $ 843 | ||||
Argentina | |||||||
Summary of Significant Accounting Policies [Line Items] | |||||||
Net revenues | $ 267 | ||||||
Percentage of consolidated net revenues | 2.10% | ||||||
[1] | During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. |
Divestitures and Acquisitions -
Divestitures and Acquisitions - Acquisitions (Details) - USD ($) $ in Millions | Jun. 07, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Payment to acquire business, net of cash received | $ 528 | $ 0 | ||
Goodwill | 21,002 | $ 21,085 | ||
North America | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 9,237 | $ 8,933 | ||
Tate’s Bake Shop | North America | ||||
Business Acquisition [Line Items] | ||||
Payment to acquire business, net of cash received | $ 528 | |||
Definite-lived intangibles assets acquired | 40 | |||
Indefinite-lived intangibles assets acquired | 170 | |||
Goodwill | 337 | |||
Property, plant, and equipment acquired | 14 | |||
Inventory acquired | 5 | |||
Accounts receivable acquired | 9 | |||
Current liabilities assumed | 6 | |||
Deferred tax liabilities assumed | $ 41 |
Divestitures and Acquisitions39
Divestitures and Acquisitions - Divestitures (Details) € in Millions, $ in Millions, ¥ in Billions | Dec. 28, 2017USD ($) | Dec. 28, 2017JPY (¥) | Oct. 23, 2017EUR (€) | Oct. 23, 2017USD ($) | Oct. 02, 2017USD ($) | Aug. 17, 2017EUR (€) | Aug. 17, 2017USD ($) | Jul. 04, 2017USD ($) | Jul. 04, 2017AUD ($) | Apr. 28, 2017EUR (€) | Apr. 28, 2017USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017AUD ($) |
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Proceeds from sale of equity method investments | $ 65,000,000 | ||||||||||||||||||
Gain on sale of equity method investment | 40,000,000 | ||||||||||||||||||
Tax on gain on sale of equity method investment | $ 15,000,000 | ||||||||||||||||||
Loss on divestiture | $ 0 | $ (3,000,000) | $ 0 | $ (3,000,000) | |||||||||||||||
Proceeds from sale of property, plant and equipment and other | $ 19,000,000 | 33,000,000 | |||||||||||||||||
Europe | Disposal Group, Disposed of by Sale, Not Discontinued Operations | KHC | |||||||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Proceeds from divestiture of businesses | € 2 | $ 3,000,000 | € 9 | $ 11,000,000 | |||||||||||||||
Japan | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Proceeds from divestiture of businesses | $ 24,000,000 | ¥ 2.8 | |||||||||||||||||
Australia and New Zealand | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Proceeds from divestiture of businesses | $ 347,000,000 | $ 456 | |||||||||||||||||
Disposal group, including discontinued operation, other current assets | 27,000,000 | ||||||||||||||||||
Disposal group, including discontinued operation, other non current assets | 135,000,000 | ||||||||||||||||||
Disposal group, including discontinued operation, other current liabilities | 4,000,000 | ||||||||||||||||||
Loss on divestiture | $ 187,000,000 | $ 247 | $ 190 | ||||||||||||||||
Costs related to divestiture | $ 3,000,000 | $ 2,000,000 | |||||||||||||||||
Inventory-related working capital adjustments | $ 3,000,000 | ||||||||||||||||||
France | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Disposal group, including discontinued operation, other current assets | $ 44,000,000 | ||||||||||||||||||
Disposal group, including discontinued operation, other non current assets | 155,000,000 | ||||||||||||||||||
Disposal group, including discontinued operation, other current liabilities | 8,000,000 | ||||||||||||||||||
Loss on divestiture | (3,000,000) | ||||||||||||||||||
Costs related to divestiture | $ 3,000,000 | $ 21,000,000 | |||||||||||||||||
Proceeds from sale of property, plant and equipment and other | € 157 | 169,000,000 | |||||||||||||||||
Disposal group, including discontinued operation, other non current liabilities | $ 22,000,000 | ||||||||||||||||||
Disposal group, including discontinued operations, reversed accrued expenses | $ 3,000,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 726 | $ 711 |
Finished product | 2,070 | 1,975 |
Inventories, gross | 2,796 | 2,686 |
Inventory reserves | (113) | (129) |
Inventories, net | $ 2,683 | $ 2,557 |
Property, Plant and Equipment41
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 15,320 | $ 15,680 |
Accumulated depreciation | (6,936) | (7,003) |
Property, plant and equipment, net | 8,384 | 8,677 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 439 | 458 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,950 | 2,979 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,947 | 11,195 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 984 | $ 1,048 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | $ 532 | $ 488 |
Accrued capital expenditures unpaid | 268 | 190 |
Payments for capital expenditures accrued in the prior year | $ 357 | $ 343 |
Property, Plant and Equipment43
Property, Plant and Equipment - Asset Impairment and Exit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | $ 43 | $ 168 | ||
2014-2018 Restructuring Program | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | $ 13 | $ 47 | 36 | 118 |
2014-2018 Restructuring Program | Latin America | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | 6 | 6 | 14 | 12 |
2014-2018 Restructuring Program | AMEA | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | 4 | 30 | 8 | 42 |
2014-2018 Restructuring Program | Europe | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | 1 | 4 | 6 | 42 |
2014-2018 Restructuring Program | North America | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | $ 2 | $ 7 | $ 8 | $ 22 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Goodwill by Segment (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 21,002 | $ 21,085 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 821 | 901 |
AMEA | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 3,289 | 3,371 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 7,655 | 7,880 |
North America | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 9,237 | $ 8,933 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Non-amortizable intangible assets | $ 17,463 | $ 17,671 |
Amortizable intangible assets | 2,363 | 2,386 |
Total intangible assets, gross | 19,826 | 20,057 |
Accumulated amortization | (1,464) | (1,418) |
Intangible assets, net | $ 18,362 | $ 18,639 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($)Brand | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 07, 2018USD ($) | Dec. 31, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Amortization expense for intangible assets | $ 44 | $ 44 | $ 88 | $ 88 | |||
Estimated amortization expense in year 1 | 175 | 175 | |||||
Estimated amortization expense in year 2 | 175 | 175 | |||||
Estimated amortization expense in year 3 | 175 | 175 | |||||
Estimated amortization expense in year 4 | 85 | 85 | |||||
Estimated amortization expense in year 5 | 85 | 85 | |||||
Goodwill | 21,002 | 21,002 | $ 21,085 | ||||
Trademarks | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Intangible asset impairment | $ 70 | ||||||
Number of impaired trademarks | Brand | 5 | ||||||
Number of trademarks with fair value in excess of book value, 10% or less | Brand | 13 | ||||||
Book value of trademarks with fair value in excess of book value, 10% or less | 938 | 938 | |||||
North America | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Goodwill | $ 9,237 | $ 9,237 | $ 8,933 | ||||
Tate’s Bake Shop | North America | |||||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||||
Goodwill | $ 337 | ||||||
Intangible assets acquired | $ 210 |
Goodwill and Intangible Asset47
Goodwill and Intangible Assets - Changes in Goodwill and Intangible Assets (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill | |
Balance at January 1, 2018 | $ 21,085 |
Currency/other | (420) |
Acquisition | 337 |
Balance at June 30, 2018 | 21,002 |
Intangible Assets, at cost | |
Balance at January 1, 2018 | 20,057 |
Currency/other | (441) |
Acquisition | 210 |
Balance at June 30, 2018 | $ 19,826 |
Equity Method Investments (Deta
Equity Method Investments (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jul. 09, 2018director | Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investments | $ 6,223 | $ 6,223 | $ 6,345 | |||||
Equity method investment net earnings | $ 91 | $ 67 | $ 185 | $ 133 | ||||
JDE | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investment, voting interest percentage | 26.50% | 26.50% | ||||||
Equity method investment, ownership percentage | 26.40% | 26.40% | ||||||
Equity method investment, profit and dividend sharing interest percentage | 26.30% | 26.30% | ||||||
Cash dividends received from equity method investments | $ 73 | $ 49 | ||||||
JDE | Equity Earnings | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investment net earnings | $ 42 | 19 | $ 88 | 38 | ||||
Keurig | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investment, ownership percentage | 24.20% | 24.20% | ||||||
Cash dividends received from equity method investments | $ 2 | 2 | $ 5 | 6 | ||||
Keurig | Equity Earnings | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investment net earnings | 20 | 15 | 36 | 29 | ||||
Keurig | Shareholder Loan Interest Income | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investment net earnings | $ 6 | $ 6 | $ 12 | $ 12 | ||||
Keurig Dr Pepper | Keurig with Dr Pepper Snapple Group, Inc. | Subsequent Event | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investment, ownership percentage | 13.80% | |||||||
Number of nominated directors | director | 2 |
2014-2018 Restructuring Progr49
2014-2018 Restructuring Program - Additional Information (Details) - USD ($) $ in Millions | Aug. 31, 2016 | May 06, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Approved capital expenditures | $ 532 | $ 488 | ||||||||
2014-2018 Restructuring Program | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Approved restructuring program cost | $ 5,700 | |||||||||
Reallocation of previously approved capital expenditures to be spent on restructuring program cash costs | 600 | |||||||||
Restructuring and related cost, cost incurred | $ 182 | $ 211 | 296 | 422 | $ 3,557 | [1] | ||||
Restructuring charges | 112 | 148 | 164 | 305 | 2,398 | [1] | ||||
Cash spent in restructuring | 161 | |||||||||
Non-cash asset write-downs | 14 | 54 | 39 | 126 | ||||||
Restructuring reserve | 404 | 404 | 404 | $ 464 | ||||||
Implementation Costs | 70 | 63 | 132 | 117 | 1,159 | [1] | ||||
2014-2018 Restructuring Program | Maximum | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Approved capital expenditures | 1,600 | $ 2,200 | ||||||||
2014-2018 Restructuring Program | Other current liabilities | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve | 323 | 323 | 323 | |||||||
2014-2018 Restructuring Program | Other liabilities | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve | 81 | 81 | 81 | |||||||
2014-2018 Restructuring Program | Restructuring Program Costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Approved restructuring program cost | 4,100 | $ 3,500 | ||||||||
2014-2018 Restructuring Program | Restructuring Program Costs | Scenario, Forecast | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Approved restructuring program cost | $ 4,100 | |||||||||
2014-2018 Restructuring Program | Cash Costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Approved restructuring program cost | 3,100 | |||||||||
2014-2018 Restructuring Program | Non-cash Costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Approved restructuring program cost | $ 1,000 | |||||||||
2014-2018 Restructuring Program | Severance and related costs | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring charges | 125 | |||||||||
Cash spent in restructuring | 82 | $ 78 | 161 | $ 162 | ||||||
Non-cash asset write-downs | 0 | |||||||||
Restructuring reserve | $ 404 | $ 404 | $ 404 | $ 464 | ||||||
[1] | Includes all charges recorded since program inception on May 6, 2014 through June 30, 2018. |
2014-2018 Restructuring Progr50
2014-2018 Restructuring Program - Restructuring Liability Activity (Details) - 2014-2018 Restructuring Program - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 50 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | ||
Restructuring Reserve [Roll Forward] | ||||||
Liability balance, January 1, 2018 | $ 464 | |||||
Charges | $ 112 | $ 148 | 164 | $ 305 | $ 2,398 | [1] |
Cash spent | (161) | |||||
Non-cash settlements/adjustments | (14) | (54) | (39) | (126) | ||
Currency | (24) | |||||
Liability balance, June 30, 2018 | 404 | 404 | 404 | |||
Severance and related costs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Liability balance, January 1, 2018 | 464 | |||||
Charges | 125 | |||||
Cash spent | (82) | $ (78) | (161) | $ (162) | ||
Non-cash settlements/adjustments | 0 | |||||
Currency | (24) | |||||
Liability balance, June 30, 2018 | 404 | 404 | 404 | |||
Asset Write-downs | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Liability balance, January 1, 2018 | 0 | |||||
Charges | 39 | |||||
Cash spent | 0 | |||||
Non-cash settlements/adjustments | (39) | |||||
Currency | 0 | |||||
Liability balance, June 30, 2018 | $ 0 | $ 0 | $ 0 | |||
[1] | Includes all charges recorded since program inception on May 6, 2014 through June 30, 2018. |
2014-2018 Restructuring Progr51
2014-2018 Restructuring Program - Restructuring and Implementation Costs by Segments (Details) - 2014-2018 Restructuring Program - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 50 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | [1] | ||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | $ 112 | $ 148 | $ 164 | $ 305 | $ 2,398 | ||
Implementation Costs | 70 | 63 | 132 | 117 | 1,159 | ||
Total | 182 | 211 | 296 | 422 | 3,557 | ||
Operating Segments | Latin America | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | 12 | 8 | 36 | 31 | 466 | ||
Implementation Costs | 15 | 10 | 30 | 20 | 182 | ||
Total | 27 | 18 | 66 | 51 | 648 | ||
Operating Segments | AMEA | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | 17 | 48 | 23 | 73 | 471 | ||
Implementation Costs | 8 | 10 | 20 | 20 | 149 | ||
Total | 25 | 58 | 43 | 93 | 620 | ||
Operating Segments | Europe | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | 63 | 50 | 70 | 119 | 909 | ||
Implementation Costs | 13 | 19 | 29 | 31 | 301 | ||
Total | 76 | 69 | 99 | 150 | 1,210 | ||
Operating Segments | North America | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | [2] | 14 | 26 | 26 | 65 | 445 | |
Implementation Costs | [2] | 21 | 13 | 38 | 25 | 291 | |
Total | [2] | 35 | 39 | 64 | 90 | 736 | |
Corporate | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | [3] | 6 | 16 | 9 | 17 | 107 | |
Implementation Costs | [3] | 13 | 11 | 15 | 21 | 236 | |
Total | [3] | $ 19 | $ 27 | $ 24 | $ 38 | $ 343 | |
[1] | Includes all charges recorded since program inception on May 6, 2014 through June 30, 2018. | ||||||
[2] | During 2018 and 2017, our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. | ||||||
[3] | During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard, we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income, segment operating income and restructuring and implementation costs by segment to reflect this reclassification, which had no impact to earnings before income taxes or net earnings. The benefit plan non-service income amounts no longer recorded in segment operating income are included within the Corporate column in the table above. The Corporate column also includes minor adjustments for rounding. |
Debt and Borrowing Arrangemen52
Debt and Borrowing Arrangements - Short-Term Borrowings and Related Weighted-Average Interest Rates (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 4,074 | $ 3,517 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 3,900 | $ 3,410 |
Weighted-Average Rate | 2.40% | 1.70% |
Bank loans | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 174 | $ 107 |
Weighted-Average Rate | 13.40% | 11.50% |
Debt and Borrowing Arrangemen53
Debt and Borrowing Arrangements - Additional Information (Details) SFr in Millions | May 07, 2018USD ($) | Apr. 17, 2018USD ($) | Apr. 02, 2018USD ($) | Mar. 02, 2018USD ($) | Mar. 02, 2018CAD ($) | Feb. 28, 2018USD ($) | Feb. 01, 2018USD ($) | Jan. 26, 2018USD ($) | Jan. 26, 2018CHF (SFr) | Oct. 13, 2016 | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2017 | May 03, 2018USD ($) | Mar. 02, 2018CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||||||||||||||
Proceeds from issuance of debt | $ 2,948,000,000 | $ 350,000,000 | |||||||||||||||||
Loss on debt extinguishment | $ 140,000,000 | $ 11,000,000 | 140,000,000 | 11,000,000 | |||||||||||||||
Long-term debt repaid | $ 1,442,000,000 | $ 1,469,000,000 | |||||||||||||||||
Weighted-average interest rate | 2.40% | 2.40% | 2.10% | 2.20% | |||||||||||||||
Fair value of total debt | $ 20,089,000,000 | $ 20,089,000,000 | $ 18,354,000,000 | ||||||||||||||||
Carrying value of total debt | 19,711,000,000 | 19,711,000,000 | 17,652,000,000 | ||||||||||||||||
Notes Payable | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, principal amount | $ 2,500,000,000 | ||||||||||||||||||
Proceeds from issuance of debt | $ 2,480,000,000 | ||||||||||||||||||
Debt issuance costs | 22,000,000 | ||||||||||||||||||
Debt repurchased amount | $ 570,000,000 | ||||||||||||||||||
Notes Payable | 3.000% U.S. dollar-denominated Fixed-rate Notes Due May 2020 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, principal amount | $ 750,000,000 | ||||||||||||||||||
Debt instrument, interest rate | 3.00% | ||||||||||||||||||
Notes Payable | 3.625% U.S. dollar-denominated Fixed-rate Notes Due May 2023 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, principal amount | $ 750,000,000 | ||||||||||||||||||
Debt instrument, interest rate | 3.625% | ||||||||||||||||||
Notes Payable | 4.125% U.S. dollar-denominated Fixed-rate Notes Due May 2028 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, principal amount | $ 700,000,000 | ||||||||||||||||||
Debt instrument, interest rate | 4.125% | ||||||||||||||||||
Notes Payable | 4.625% U.S. dollar-denominated Fixed-rate Notes Due May 2048 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, principal amount | $ 300,000,000 | ||||||||||||||||||
Debt instrument, interest rate | 4.625% | ||||||||||||||||||
Notes Payable | 6.500% U.S. dollar-denominated Notes Due February 2040 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, interest rate | 6.50% | ||||||||||||||||||
Debt repurchased amount | $ 241,000,000 | ||||||||||||||||||
Notes Payable | 5.375% U.S. dollar-denominated Notes Due February 2020 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, interest rate | 5.375% | ||||||||||||||||||
Debt repurchased amount | $ 97,600,000 | ||||||||||||||||||
Notes Payable | 6.500% U.S. dollar-denominated Notes Due November 2031 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, interest rate | 6.50% | ||||||||||||||||||
Debt repurchased amount | $ 75,800,000 | ||||||||||||||||||
Notes Payable | 6.875% U.S. dollar-denominated Notes Due February 2038 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, interest rate | 6.875% | ||||||||||||||||||
Debt repurchased amount | $ 72,100,000 | ||||||||||||||||||
Notes Payable | 6.125% U.S. dollar-denominated Notes Due August 2018 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, interest rate | 6.125% | ||||||||||||||||||
Debt repurchased amount | $ 42,600,000 | ||||||||||||||||||
Notes Payable | 6.875% U.S. dollar-denominated Notes Due January 2039 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, interest rate | 6.875% | ||||||||||||||||||
Debt repurchased amount | $ 29,300,000 | ||||||||||||||||||
Notes Payable | 7.000% U.S. dollar-denominated Notes Due August 2037 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, interest rate | 7.00% | ||||||||||||||||||
Debt repurchased amount | $ 11,700,000 | ||||||||||||||||||
Notes Payable | 3.250% Canadian dollar-denominated Notes Due March 2025 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, principal amount | $ 600,000,000 | ||||||||||||||||||
Debt instrument, interest rate | 3.25% | 3.25% | |||||||||||||||||
Debt issuance costs | $ 4,000,000 | ||||||||||||||||||
Proceeds from issuance of debt, net of discounts and underwriting fees | $ 461,000,000 | $ 595,000,000 | |||||||||||||||||
Notes Payable | 6.125% U.S. dollar-denominated Notes | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, interest rate | 6.125% | ||||||||||||||||||
Long-term debt repaid | $ 478,000,000 | ||||||||||||||||||
Notes Payable | 0.080% Swiss franc-denominated Notes | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Debt instrument, interest rate | 0.08% | 0.08% | |||||||||||||||||
Long-term debt repaid | $ 260,000,000 | SFr 250 | |||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||||||||||||||||||
Line of credit facility outstanding amount | 0 | 0 | |||||||||||||||||
Line of credit, expiration period | 364 days | ||||||||||||||||||
Revolving credit facility expiration date | Feb. 27, 2019 | ||||||||||||||||||
Revolving Credit Facility, October 11, 2021 | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 4,500,000,000 | 4,500,000,000 | 4,500,000,000 | ||||||||||||||||
Line of credit facility outstanding amount | 0 | 0 | |||||||||||||||||
Revolving credit facility expiration date | Oct. 11, 2018 | Oct. 11, 2021 | |||||||||||||||||
Revolving credit facility debt covenant | 24,600,000,000 | ||||||||||||||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings / (losses) | 35,700,000,000 | 35,700,000,000 | |||||||||||||||||
International Subsidiaries | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 1,800,000,000 | $ 1,800,000,000 | $ 2,000,000,000 | ||||||||||||||||
Commercial paper | Minimum | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Commercial paper, maturity period | 2 days | ||||||||||||||||||
Commercial paper | Maximum | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Commercial paper, maturity period | 172 days | ||||||||||||||||||
Bank loans | Revolving Credit Facility | 364-Day Senior Unsecured Credit Facility | |||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 2,000,000,000 | ||||||||||||||||||
Borrowings from line of credit facility | $ 714,000,000 | ||||||||||||||||||
Repayments of lines of credit | $ 714,000,000 | ||||||||||||||||||
Line of credit, expiration period | 364 days | ||||||||||||||||||
Loss on debt extinguishment | $ 140,000,000 |
Debt and Borrowing Arrangemen54
Debt and Borrowing Arrangements - Interest and Other Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Disclosure [Abstract] | ||||
Interest expense, debt | $ 115 | $ 103 | $ 217 | $ 206 |
Loss on debt extinguishment | 140 | 11 | 140 | 11 |
Loss/(gain) related to interest rate swaps | 5 | 0 | (9) | 0 |
Other (income)/expense, net | (12) | 10 | (20) | 26 |
Interest and other expense, net | $ 248 | $ 124 | $ 328 | $ 243 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 740 | $ 179 |
Liability Derivatives | 583 | 825 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 405 | 15 |
Liability Derivatives | 403 | 509 |
Derivatives Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 20 | 15 |
Liability Derivatives | 403 | 509 |
Derivatives Designated as Hedging Instruments | Net investment hedge contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 385 | 0 |
Liability Derivatives | 0 | 0 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 335 | 164 |
Liability Derivatives | 180 | 316 |
Derivatives Not Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 111 | 65 |
Liability Derivatives | 53 | 76 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 217 | 84 |
Liability Derivatives | 122 | 229 |
Derivatives Not Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 7 | 15 |
Liability Derivatives | $ 5 | $ 11 |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Fair Value and Measurement Inputs (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ 157 | $ (646) |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 58 | (11) |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 95 | (145) |
Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (381) | (490) |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 385 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 65 | (138) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 65 | (138) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 92 | (508) |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 58 | (11) |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 30 | (7) |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (381) | (490) |
Significant Other Observable Inputs (Level 2) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 385 | |
Significant Unobservable Inputs (Level 3) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | $ 0 |
Significant Unobservable Inputs (Level 3) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) related to interest rate swaps | $ (5,000,000) | $ 0 | $ 9,000,000 | $ 0 | |
Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains/(losses), net of taxes recognized in earnings/(losses) | 21,000,000 | 16,000,000 | (11,000,000) | 27,000,000 | |
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | (5,000,000) | 4,000,000 | 9,000,000 | (3,000,000) | |
Interest rate contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, aggregate notional value | 9,117,000,000 | 9,117,000,000 | $ 6,532,000,000 | ||
Interest rate contracts | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Expected transfers of unrealized gains (losses) to earnings, within next 12 months or less | 1,000,000 | ||||
Gains/(losses), net of taxes recognized in earnings/(losses) | 21,000,000 | 24,000,000 | (11,000,000) | 47,000,000 | |
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | (5,000,000) | $ 0 | $ 9,000,000 | $ 0 | |
Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Hedged forecasted transaction period | 5 years 4 months 24 days | ||||
Net investment hedge contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, aggregate notional value | 7,114,000,000 | $ 7,114,000,000 | 0 | ||
Gains/(losses), net of taxes recognized in earnings/(losses) | 276,000,000 | 265,000,000 | |||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | 0 | 0 | |||
Net investment hedge contracts | Net investment hedge debt | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses), net of taxes, recognized in income, excluded from effectiveness testing | (33,000,000) | (50,000,000) | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Exchange Traded Options | Accounts payable | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, margin requirement liability | $ 25,000,000 | $ 25,000,000 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Exchange Traded Options | Other current assets | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, margin deposit asset | $ 171,000,000 |
Financial Instruments - Notiona
Financial Instruments - Notional Values of Hedging Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Net investment hedge debt | Euro notes | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,581 | $ 3,679 |
Net investment hedge debt | British pound sterling notes | ||
Derivative [Line Items] | ||
Notional Amount | 448 | 459 |
Net investment hedge debt | Swiss franc notes | ||
Derivative [Line Items] | ||
Notional Amount | 1,413 | 1,694 |
Net investment hedge debt | Canadian dollar notes | ||
Derivative [Line Items] | ||
Notional Amount | 457 | 0 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | ||
Derivative [Line Items] | ||
Notional Amount | 3,378 | 7,089 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 2,355 | 2,213 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 580 | 1,204 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 9,117 | 6,532 |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 7,114 | $ 0 |
Financial Instruments - Cash Fl
Financial Instruments - Cash Flow Hedges Effect on Accumulated Other Comprehensive Earnings/(Losses), Net of Tax (Details) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Accumulated (loss)/gain at beginning of period | $ (159) | $ (103) | $ (113) | $ (121) |
Transfer of realized (gains)/losses in fair value to earnings | 5 | (4) | (9) | 3 |
Unrealized gain/(loss) in fair value | 21 | 16 | (11) | 27 |
Accumulated (loss)/gain at end of period | $ (133) | $ (91) | $ (133) | $ (91) |
Financial Instruments - Cash 60
Financial Instruments - Cash Flow Hedges After-tax Gains/(Losses) (Details) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | $ (5) | $ 4 | $ 9 | $ (3) |
Gains/(losses), net of taxes recognized in earnings/(losses) | 21 | 16 | (11) | 27 |
Currency exchange contracts | Forecasted transactions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | 0 | 1 | 0 | 1 |
Gains/(losses), net of taxes recognized in earnings/(losses) | 0 | (14) | 0 | (26) |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | 0 | 3 | 0 | (4) |
Gains/(losses), net of taxes recognized in earnings/(losses) | 0 | 6 | 0 | 6 |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | (5) | 0 | 9 | 0 |
Gains/(losses), net of taxes recognized in earnings/(losses) | $ 21 | $ 24 | $ (11) | $ 47 |
Financial Instruments - Fair 61
Financial Instruments - Fair Value Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in income on fair value of hedges | $ 0 | $ 0 | $ 0 | $ 0 |
Borrowings | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in income on fair value of hedges | 0 | 1 | 1 | (2) |
Derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in income on fair value of hedges | $ 0 | $ (1) | $ (1) | $ 2 |
Financial Instruments - Carryin
Financial Instruments - Carrying Amount of Hedged Fixed Interest Rate Debt (Details) - Debt - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Notional value of borrowings (and related derivatives) | $ (279) | $ (801) |
Cumulative fair value hedging adjustments | (1) | 0 |
Carrying amount of borrowings | $ (280) | $ (801) |
Financial Instruments - Hedges
Financial Instruments - Hedges of Net Investments in International Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Euro notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | $ 151 | $ (168) | $ 76 | $ (196) |
British pound sterling notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | 21 | (10) | 8 | (15) |
Swiss franc notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | 42 | (49) | 16 | (64) |
Canadian dollar notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | $ 6 | $ 0 | $ 4 | $ 0 |
Financial Instruments - Economi
Financial Instruments - Economic Hedges (Details) - Economic Hedging - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | $ 30 | $ (73) | $ 171 | $ (153) |
Currency exchange contracts | Intercompany loans and forecasted interest payments | Interest and other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 7 | 3 | 14 | 5 |
Currency exchange contracts | Forecasted transactions | Interest and other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 0 | 1 | (5) | (2) |
Currency exchange contracts | Forecasted transactions | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 72 | 18 | 65 | 2 |
Currency exchange contracts | Forecasted transactions | Selling, general and administrative expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (1) | 2 | (4) | 2 |
Commodity contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | $ (48) | $ (97) | $ 101 | $ (160) |
Benefit Plans - Pension Costs (
Benefit Plans - Pension Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement losses and other expenses | $ 3 | $ 11 | $ 3 | $ 11 |
Pension Plans | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 10 | 10 | 22 | 22 |
Interest cost | 15 | 16 | 30 | 31 |
Expected return on plan assets | (22) | (25) | (44) | (50) |
Net loss from experience differences | 9 | 9 | 20 | 17 |
Prior service cost/(benefit) | 0 | 0 | 1 | 1 |
Settlement losses and other expenses | 8 | 18 | 15 | 21 |
Net periodic benefit costs | 20 | 28 | 44 | 42 |
Pension Plans | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 37 | 38 | 75 | 77 |
Interest cost | 50 | 49 | 102 | 97 |
Expected return on plan assets | (114) | (108) | (231) | (212) |
Net loss from experience differences | 42 | 40 | 84 | 81 |
Prior service cost/(benefit) | (1) | 0 | (1) | (1) |
Settlement losses and other expenses | 0 | 1 | 0 | 2 |
Net periodic benefit costs | $ 14 | $ 20 | $ 29 | $ 44 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)arrangement | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)arrangement | Jun. 30, 2017USD ($) | Apr. 01, 2018arrangement | |
U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement losses and other expenses | $ 3 | $ 11 | $ 3 | $ 11 | |
U.S. Plans | Multiemployer Plans, Pension | Fund | BCTGM | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer plan, number of expired collective-bargaining arrangements | arrangement | 8 | 8 | 8 | ||
Multiemployer plan, number of collective-bargaining arrangements | arrangement | 7 | 7 | |||
U.S. Plans | Multiemployer Plans, Pension | Fund | BCTGM | North America | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer plan, partial withdrawal liability | $ 567 | $ 567 | |||
Multiemployer plan, withdrawal obligation | 408 | 408 | |||
Multiemployer plan, withdrawal obligation, net of tax | $ 305 | ||||
Multiemployer plan, withdrawal obligation term | 20 years | ||||
Pension Plans | U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement losses and other expenses | $ 8 | 18 | 15 | 21 | |
Employer contribution | 5 | ||||
Estimated future employer contributions | 34 | 34 | |||
Pension Plans | Non-U.S. Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement losses and other expenses | 0 | $ 1 | 0 | $ 2 | |
Employer contribution | 199 | ||||
Estimated future employer contributions | $ 102 | 102 | |||
Pension Plans | Non-U.S. Plans | United Kingdom and Ireland | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer contribution | $ 137 |
Benefit Plans - Postretirement
Benefit Plans - Postretirement Health Care Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Gain related to a change in the eligibility requirement and a change in benefits to Medicare-eligible participants | $ 8 | $ 8 | $ 16 | $ 16 | |
Postretirement Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 1 | 2 | 3 | 4 | |
Interest cost | 3 | 3 | 7 | 7 | |
Net loss from experience differences | 3 | 4 | 7 | 7 | |
Prior service credit | [1] | (9) | (10) | (19) | (20) |
Net periodic benefit costs | $ (2) | $ (1) | $ (2) | $ (2) | |
[1] | $8 million for the three months ended June 30, 2018 and June 30, 2017 and $16 million for the six months ended June 30, 2018 and June 30, 2017 related to a change in the eligibility requirement and a change in benefits to Medicare-eligible participants. |
Benefit Plans - Postemployment
Benefit Plans - Postemployment Benefit Costs (Details) - Postemployment Benefit Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 2 | $ 3 | $ 3 |
Interest cost | 1 | 1 | 2 | 2 |
Amortization of net gains | 0 | (1) | (1) | (2) |
Net periodic benefit costs | $ 2 | $ 2 | $ 4 | $ 3 |
Stock Plans - Stock Option Acti
Stock Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | ||
Shares Subject to Option | ||||
Balance at January 1, 2018 (In shares) | 48,434,655 | |||
Options granted (in shares) | 5,749,250 | |||
Options exercised (in shares) | [1] | (4,541,932) | ||
Options canceled (in shares) | (541,994) | |||
Balance at June 30, 2018 (in shares) | 49,099,979 | 49,099,979 | 48,434,655 | |
Weighted- Average Exercise or Grant Price Per Share | ||||
Balance at January 1, 2018 (in dollars per share) | $ 29.92 | |||
Options granted (in dollars per share) | 43.47 | |||
Options exercised (in dollars per share) | [1] | 25.60 | ||
Options canceled (in dollars per share) | 38.39 | |||
Balance at June 30, 2018 (in dollars per share) | $ 31.81 | $ 31.81 | $ 29.92 | |
Average Remaining Contractual Term | ||||
Average remaining contractual term | 6 years | 5 years | ||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value | $ 478 | $ 478 | $ 626 | |
Aggregate intrinsic value options exercised | [1] | 81 | ||
Cash received from options exercised | 31 | 116 | ||
Actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises | $ 1 | $ 9 | ||
Annual grant to eligible employees | ||||
Shares Subject to Option | ||||
Options granted (in shares) | 5,666,530 | |||
Weighted- Average Exercise or Grant Price Per Share | ||||
Options granted (in dollars per share) | $ 43.51 | |||
Additional options issued | ||||
Shares Subject to Option | ||||
Options granted (in shares) | 82,720 | |||
Weighted- Average Exercise or Grant Price Per Share | ||||
Options granted (in dollars per share) | $ 40.82 | |||
[1] | Cash received from options exercised was $31 million in the three months and $116 million in the six months ended June 30, 2018. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $1 million in the three months and $9 million in the six months ended June 30, 2018. |
Stock Plans - Performance Share
Stock Plans - Performance Share Units and Other Stock-Based Awards Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | ||
Number of Shares | |||
Balance at January 1, 2018 (in shares) | 7,669,705 | ||
Shares granted (in shares) | 2,143,506 | ||
Vested (in shares) | [1] | (2,162,663) | |
Forfeited (in shares) | [1] | (352,565) | |
Balance at June 30, 2018 (in shares) | 7,297,983 | 7,297,983 | |
Weighted-average grant date fair value per share | |||
Balance at January 1, 2018 (in dollars per share) | [2] | $ 39.74 | |
Shares granted (in dollars per share) | [2] | 46.92 | |
Vested (in dollars per share) | [1],[2] | 38.33 | |
Forfeited (in dollars per share) | [1],[2] | 40.10 | |
Balance at June 30, 2018 (in dollars per share) | [2] | $ 42.25 | $ 42.25 |
Weighted-Average Aggregate Fair Value | |||
Weighted average grant date fair value of shares granted | [2] | $ 101 | |
Weighted average grant date fair value of shares vested | [1],[2] | 83 | |
Maximum | |||
Weighted-Average Aggregate Fair Value | |||
Actual tax benefit realized for the tax deductions from the shares vested | $ 1 | $ 4 | |
Annual grant to eligible employees | |||
Grant Date | |||
Grant Date | Feb. 22, 2018 | ||
Performance share units | |||
Number of Shares | |||
Shares granted (in shares) | 1,048,770 | ||
Weighted-average grant date fair value per share | |||
Shares granted (in dollars per share) | [2] | $ 51.23 | |
Deferred stock units | |||
Number of Shares | |||
Shares granted (in shares) | 788,310 | ||
Weighted-average grant date fair value per share | |||
Shares granted (in dollars per share) | [2] | $ 43.51 | |
Additional shares granted | |||
Number of Shares | |||
Shares granted (in shares) | [3] | 306,426 | |
Weighted-average grant date fair value per share | |||
Shares granted (in dollars per share) | [2],[3] | $ 40.97 | |
[1] | Includes performance share units, deferred stock units and historically granted restricted stock. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled less than $1 million in the three months and $4 million in the six months ended June 30, 2018. | ||
[2] | The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided. | ||
[3] | Includes performance share units and deferred stock units. |
Stock Plans - Share Repurchase
Stock Plans - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions | Jan. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2013 |
Class of Stock [Line Items] | |||||
Common shares repurchased | $ 1,150,000,000 | $ 2,202,000,000 | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of shares repurchased (in shares) | 27.6 | ||||
Average cost of shares repurchased (in dollars per share) | $ 41.65 | ||||
Common shares repurchased | $ 1,200,000,000 | ||||
Stock repurchase remaining amount | $ 5,500,000,000 | ||||
Common Stock | Share Repurchase Program amended July 29, 2015 | |||||
Class of Stock [Line Items] | |||||
Stock repurchase value | $ 19,700,000,000 | ||||
Increase in share repurchase value | $ 6,000,000,000 | ||||
Stock repurchase expiration date | Dec. 31, 2020 | ||||
Common Stock | Prior to January 1, 2018 | |||||
Class of Stock [Line Items] | |||||
Stock repurchase value | $ 13,700,000,000 | ||||
Common shares repurchased | $ 13,000,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ₨ in Billions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018INR (₨) | |
Loss Contingencies [Line Items] | |||||||
Income tax benefit | $ (14,000,000) | $ (84,000,000) | $ (321,000,000) | $ (238,000,000) | |||
Selling, general and administrative expense to offset tax benefit | 1,904,000,000 | $ 1,455,000,000 | $ 3,431,000,000 | $ 2,938,000,000 | |||
Income due to reversal of accrued liability under tax indemnity | $ 58,000,000 | ||||||
Groupe Danone S.A. Global LU Biscuit Business (“LU Biscuit”) [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Income tax benefit | 15,000,000 | ||||||
Selling, general and administrative expense to offset tax benefit | 11,000,000 | ||||||
Interest expense to offset tax benefit | 4,000,000 | ||||||
Selling, general and administrative expenses | |||||||
Loss Contingencies [Line Items] | |||||||
Income due to reversal of accrued liability under tax indemnity | 46,000,000 | ||||||
Interest and other expense, net | |||||||
Loss Contingencies [Line Items] | |||||||
Income due to reversal of accrued liability under tax indemnity | $ 12,000,000 | ||||||
Selling, General and Administrative Expenses and Interest and Other Expense, Net | |||||||
Loss Contingencies [Line Items] | |||||||
Income due to reversal of accrued liability under tax indemnity | $ 4,000,000 | ||||||
U.S. Commodity Futures Trading Commission ("CFTC") | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, filling date | April 1, 2015 | ||||||
Loss contingency, damages sought | $ 1,000,000 | ||||||
U.S. Commodity Futures Trading Commission ("CFTC") | Each Additional Violation of the Commodity Exchange Act | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, damages sought | 140,000 | ||||||
Cadbury | Indian Department of Central Excise Authority | |||||||
Loss Contingencies [Line Items] | |||||||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | 55,000,000 | 55,000,000 | ₨ 3.7 | ||||
Cadbury | Indian Department of Central Excise Authority | Show Cause Notice | |||||||
Loss Contingencies [Line Items] | |||||||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | 72,000,000 | 72,000,000 | 4.9 | ||||
Cadbury | Indian Department of Central Excise Authority | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Tax penalties and interest expense | $ 85,000,000 | $ 85,000,000 | ₨ 5.8 |
Reclassifications from Accumu73
Reclassifications from Accumulated Other Comprehensive Income - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Net loss amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) | $ 45 | $ 41 | $ 72 | $ 83 |
Reclassifications from Accumu74
Reclassifications from Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Earnings/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||||
Balance at beginning of period | $ 26,191 | $ 25,215 | $ 25,215 | |||
Total other comprehensive earnings/(losses) | $ (680) | $ 359 | (525) | 921 | 1,152 | |
Less: (earnings)/loss attributable to noncontrolling interests | 12 | (12) | (3) | (16) | ||
Tax expense/(benefit) on reclassifications | (14) | (84) | (321) | (238) | ||
Losses/(gains) reclassified into net earnings | (3,572) | (3,672) | (7,488) | (7,568) | ||
Other comprehensive earnings/(losses) attributable to Mondelēz International | (668) | 347 | (528) | 905 | ||
Balance at end of period | 25,287 | 25,287 | 26,191 | |||
Currency Translation Adjustments | ||||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||||
Balance at beginning of period | (7,549) | (8,375) | (7,741) | (8,914) | (8,914) | |
Currency translation adjustments | (718) | 252 | (558) | 764 | ||
Tax (expense)/benefit | (156) | 128 | (109) | 159 | ||
Total other comprehensive earnings/(losses) | (874) | 380 | (667) | 923 | ||
Less: (earnings)/loss attributable to noncontrolling interests | 12 | (12) | (3) | (16) | ||
Balance at end of period | (8,411) | (8,007) | (8,411) | (8,007) | (7,741) | |
Pension and Other Benefits | ||||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||||
Balance at beginning of period | (2,150) | (2,086) | (2,144) | (2,087) | (2,087) | |
Total other comprehensive earnings/(losses) | 168 | (33) | 162 | (32) | ||
Net actuarial gain/(loss) arising during period | 38 | 16 | 45 | 9 | ||
Tax (expense)/benefit on net actuarial gain/(loss) | (9) | (2) | (9) | 0 | ||
Currency impact, pension and other benefit plans | 99 | (92) | 45 | (121) | ||
Balance at end of period | (1,982) | (2,119) | (1,982) | (2,119) | (2,144) | |
Derivative Cash Flow Hedges | ||||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||||
Balance at beginning of period | (159) | (103) | (113) | (121) | (121) | |
Total other comprehensive earnings/(losses) | 26 | 12 | (20) | 30 | ||
Net derivative gains/(losses) | 17 | 22 | (12) | 29 | ||
Tax (expense)/benefit on net derivative gain/(loss) | (4) | (1) | (4) | 4 | ||
Currency impact derivative cash flow hedges | 8 | (5) | 5 | (6) | ||
Balance at end of period | (133) | (91) | (133) | (91) | (113) | |
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||||
Balance at beginning of period | (9,858) | (10,564) | (9,998) | (11,122) | (11,122) | |
Total other comprehensive earnings/(losses) | (528) | 1,124 | ||||
Balance at end of period | (10,526) | (10,217) | (10,526) | (10,217) | $ (9,998) | |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other Benefits | ||||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||||
Amortization of experience losses and prior service costs | [1] | 44 | 42 | 91 | 83 | |
Settlement losses and other expenses | [1] | 8 | 15 | 15 | 18 | |
Tax expense/(benefit) on reclassifications | [2] | (12) | (12) | (25) | (21) | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Currency exchange contracts | ||||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||||
Losses/(gains) reclassified into net earnings | [3] | 7 | 0 | (11) | 0 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Currency exchange contracts | Forecasted transactions | ||||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||||
Losses/(gains) reclassified into net earnings | [4] | 0 | (1) | 0 | 0 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Commodity contracts | ||||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||||
Losses/(gains) reclassified into net earnings | [4] | 0 | (2) | 0 | 6 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Interest rate contracts | ||||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||||
Tax expense/(benefit) on reclassifications | [2] | $ (2) | $ (1) | $ 2 | $ (3) | |
[1] | These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 10, Benefit Plans. | |||||
[2] | Taxes reclassified to earnings are recorded within the provision for income taxes. | |||||
[3] | These reclassified gains or losses are recorded within interest and other expense, net. | |||||
[4] | These reclassified gains or losses are recorded within cost of sales. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Contingency [Line Items] | ||||
Provisional discrete net tax expense (benefit) | $ (2) | $ 87 | ||
Increase (decrease) in liability for transition tax due to U.S. tax reform | (8) | $ 86 | $ 0 | |
Tax expense for other provisional tax updates | $ 6 | |||
Estimated effective tax rate | 21.90% | 25.80% | ||
Effective tax rate | 5.60% | 16.20% | 22.80% | 19.20% |
Total unfavorable discrete items benefit (expense) | $ 32 | $ 47 | $ 14 | $ 83 |
Net favorable tax audit settlements and expirations of statutes of limitations | 27 | $ 46 | 43 | 62 |
Benefit relating to the U.S. domestic production activities deduction | $ 16 | |||
Foreign Tax Authority | Argentina Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Benefit from pending tax refund claim | $ 22 | $ 22 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||
Net earnings | $ 325 | $ 500 | $ 1,269 | $ 1,133 | $ 2,936 |
Noncontrolling interest (earnings) | (2) | (2) | (8) | (5) | |
Net earnings attributable to Mondelēz International | $ 323 | $ 498 | $ 1,261 | $ 1,128 | |
Weighted-average shares for basic EPS (in shares) | 1,475 | 1,519 | 1,482 | 1,524 | |
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares (in shares) | 13 | 20 | 14 | 20 | |
Weighted-average shares for diluted EPS (in shares) | 1,488 | 1,539 | 1,496 | 1,544 | |
Basic earnings per share attributable to Mondeléz International (in dollars per share) | $ 0.22 | $ 0.33 | $ 0.85 | $ 0.74 | |
Diluted earnings per share attributable to Mondélez International (in dollars per share) | $ 0.22 | $ 0.32 | $ 0.84 | $ 0.73 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Mondelez International stock options excluded from the calculation of diluted EPS (in shares) | 12.7 | 8.6 | 11.2 | 7.7 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 6,112 | $ 5,986 | [1] | $ 12,877 | $ 12,400 | [1] | |
Operating income | 481 | 636 | 1,705 | 1,461 | |||
General corporate expenses | (91) | (80) | (155) | (137) | |||
Amortization of intangibles | (44) | (44) | (88) | (88) | |||
Loss on divestiture | 0 | (3) | 0 | (3) | |||
Acquisition-related costs | (13) | 0 | (13) | 0 | |||
Benefit plan non-service income (1) | [2] | 15 | 5 | 28 | 20 | ||
Interest and other expense, net | (248) | (124) | (328) | (243) | |||
Earnings before income taxes | 248 | 517 | 1,405 | 1,238 | |||
Cost of sales | |||||||
Segment Reporting Information [Line Items] | |||||||
Unrealized gains/(losses) on hedging activities (mark-to-market impacts) | 88 | (46) | 294 | (97) | |||
Latin America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 774 | 848 | [1] | 1,665 | 1,758 | [1] | |
Operating income | 92 | 102 | 218 | 213 | |||
AMEA | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,360 | 1,394 | [1] | 2,902 | 2,885 | [1] | |
Operating income | 177 | 161 | 405 | 342 | |||
Europe | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 2,303 | 2,171 | [1] | 5,009 | 4,536 | [1] | |
Operating income | 367 | 321 | 864 | 714 | |||
North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,675 | 1,573 | [1] | 3,301 | 3,221 | [1] | |
Operating income | $ (95) | $ 225 | $ 180 | $ 517 | |||
[1] | During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. | ||||||
[2] | During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard, we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line item, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income and segment operating income to reflect this reclassification, which had no impact to earnings before income taxes or net earnings. |
Segment Reporting - Net Reven79
Segment Reporting - Net Revenues by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | [1] | Jun. 30, 2018 | Jun. 30, 2017 | [1] | |
Segment Reporting Information [Line Items] | ||||||
Total net revenues | $ 6,112 | $ 5,986 | $ 12,877 | $ 12,400 | ||
Biscuits | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 2,792 | 2,591 | 5,545 | 5,159 | ||
Chocolate | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 1,650 | 1,598 | 3,946 | 3,650 | ||
Gum & Candy | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 886 | 905 | 1,767 | 1,785 | ||
Beverages | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 308 | 342 | 669 | 749 | ||
Cheese & Grocery | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 476 | 550 | 950 | 1,057 | ||
Latin America | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 774 | 848 | 1,665 | 1,758 | ||
Latin America | Biscuits | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 192 | 200 | 375 | 370 | ||
Latin America | Chocolate | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 161 | 194 | 404 | 453 | ||
Latin America | Gum & Candy | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 224 | 241 | 448 | 454 | ||
Latin America | Beverages | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 116 | 129 | 277 | 322 | ||
Latin America | Cheese & Grocery | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 81 | 84 | 161 | 159 | ||
AMEA | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 1,360 | 1,394 | 2,902 | 2,885 | ||
AMEA | Biscuits | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 387 | 356 | 829 | 756 | ||
AMEA | Chocolate | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 440 | 424 | 1,013 | 938 | ||
AMEA | Gum & Candy | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 236 | 238 | 471 | 467 | ||
AMEA | Beverages | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 173 | 189 | 345 | 362 | ||
AMEA | Cheese & Grocery | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 124 | 187 | 244 | 362 | ||
Europe | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 2,303 | 2,171 | 5,009 | 4,536 | ||
Europe | Biscuits | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 810 | 734 | 1,605 | 1,399 | ||
Europe | Chocolate | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 1,003 | 930 | 2,426 | 2,139 | ||
Europe | Gum & Candy | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 200 | 204 | 386 | 397 | ||
Europe | Beverages | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 19 | 24 | 47 | 65 | ||
Europe | Cheese & Grocery | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 271 | 279 | 545 | 536 | ||
North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 1,675 | 1,573 | 3,301 | 3,221 | ||
North America | Biscuits | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 1,403 | 1,301 | 2,736 | 2,634 | ||
North America | Chocolate | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 46 | 50 | 103 | 120 | ||
North America | Gum & Candy | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 226 | 222 | 462 | 467 | ||
North America | Beverages | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | 0 | 0 | 0 | 0 | ||
North America | Cheese & Grocery | ||||||
Segment Reporting Information [Line Items] | ||||||
Total net revenues | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. |