Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MDLZ | ||
Entity Registrant Name | Mondelez International, Inc. | ||
Entity Central Index Key | 1,103,982 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 1,444,169,449 | ||
Entity Public Float | $ 59 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Income Statement [Abstract] | ||||||
Net revenues | $ 25,938 | $ 25,896 | [1] | $ 25,923 | [1] | |
Cost of sales | 15,586 | 15,862 | 15,819 | |||
Gross profit | 10,352 | 10,034 | 10,104 | |||
Selling, general and administrative expenses | 6,475 | 5,938 | 6,546 | |||
Asset impairment and exit costs | 389 | 642 | 837 | |||
Net gain on divestitures | 0 | (186) | (9) | |||
Amortization of intangibles | 176 | 178 | 176 | |||
Operating income | 3,312 | 3,462 | 2,554 | |||
Benefit plan non-service income | [2] | (50) | (44) | (15) | ||
Interest and other expense, net | 520 | 382 | 1,115 | |||
Earnings before income taxes | 2,842 | 3,124 | 1,454 | |||
Provision for income taxes | (773) | (666) | (114) | |||
Gain on equity method investment transactions | 778 | 40 | 43 | |||
Equity method investment net earnings | 548 | 344 | 262 | |||
Net earnings | 3,395 | 2,842 | 1,645 | |||
Noncontrolling interest earnings | (14) | (14) | (10) | |||
Net earnings attributable to Mondelēz International | $ 3,381 | $ 2,828 | $ 1,635 | |||
Per share data: | ||||||
Basic earnings per share attributable to Mondelēz International (in dollars per share) | $ 2.30 | $ 1.87 | $ 1.05 | |||
Diluted earnings per share attributable to Mondelēz International (in dollars per share) | $ 2.28 | $ 1.85 | $ 1.04 | |||
[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 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. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 3,395 | $ 2,842 | $ 1,645 |
Other comprehensive earnings/(losses), net of tax: | |||
Currency translation adjustment | (865) | 1,198 | (921) |
Pension and other benefit plans | 284 | (57) | (153) |
Derivative cash flow hedges | (54) | 8 | (75) |
Total other comprehensive earnings/(losses) | (635) | 1,149 | (1,149) |
Comprehensive earnings | 2,760 | 3,991 | 496 |
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | 12 | 42 | (7) |
Comprehensive earnings attributable to Mondelēz International | $ 2,748 | $ 3,949 | $ 503 |
Consolidated Balance Sheets, as
Consolidated Balance Sheets, as of December 31 - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 1,100 | $ 761 |
Trade receivables (net of allowances of $40 at December 31, 2018 and $50 at December 31, 2017) | 2,262 | 2,691 |
Other receivables (net of allowances of $47 at December 31, 2018 and $98 at December 31, 2017) | 744 | 835 |
Inventories, net | 2,592 | 2,557 |
Other current assets | 906 | 676 |
Total current assets | 7,604 | 7,520 |
Property, plant and equipment, net | 8,482 | 8,677 |
Goodwill | 20,725 | 21,085 |
Intangible assets, net | 18,002 | 18,639 |
Prepaid pension assets | 132 | 158 |
Deferred income taxes | 255 | 319 |
Equity method investments | 7,123 | 6,193 |
Other assets | 406 | 366 |
TOTAL ASSETS | 62,729 | 62,957 |
LIABILITIES | ||
Short-term borrowings | 3,192 | 3,517 |
Current portion of long-term debt | 2,648 | 1,163 |
Accounts payable | 5,794 | 5,705 |
Accrued marketing | 1,756 | 1,728 |
Accrued employment costs | 701 | 721 |
Other current liabilities | 2,646 | 2,959 |
Total current liabilities | 16,737 | 15,793 |
Long-term debt | 12,532 | 12,972 |
Deferred income taxes | 3,552 | 3,341 |
Accrued pension costs | 1,221 | 1,669 |
Accrued postretirement health care costs | 351 | 419 |
Other liabilities | 2,623 | 2,689 |
TOTAL LIABILITIES | 37,016 | 36,883 |
Commitments and Contingencies (Note 13) | ||
EQUITY | ||
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at December 31, 2018 and December 31, 2017) | 0 | 0 |
Additional paid-in capital | 31,961 | 31,915 |
Retained earnings | 24,491 | 22,631 |
Accumulated other comprehensive losses | (10,630) | (9,997) |
Treasury stock, at cost (545,537,923 shares at December 31, 2018 and 508,401,694 shares at December 31, 2017) | (20,185) | (18,555) |
Total Mondelēz International Shareholders’ Equity | 25,637 | 25,994 |
Noncontrolling interest | 76 | 80 |
TOTAL EQUITY | 25,713 | 26,074 |
TOTAL LIABILITIES AND EQUITY | $ 62,729 | $ 62,957 |
Consolidated Balance Sheets, _2
Consolidated Balance Sheets, as of December 31 (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 40 | $ 50 |
Other receivables, allowances | $ 47 | $ 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, shares (in shares) | 545,537,923 | 508,401,694 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/ (Losses) | Treasury Stock | Non-controlling Interest |
Balance at beginning of period at Dec. 31, 2015 | $ 28,100 | $ 0 | $ 31,760 | $ 20,700 | $ (9,986) | $ (14,462) | $ 88 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 1,645 | 1,635 | 10 | ||||
Other comprehensive earnings/ (losses), net of income taxes | (1,149) | (1,132) | (17) | ||||
Exercise of stock options and issuance of other stock awards | 343 | 87 | (94) | 350 | |||
Common Stock repurchased | (2,601) | (2,601) | |||||
Cash dividends declared ( $0.96, $0.82, and $0.72 per share for 2018, 2017 and 2016, respectively) | (1,116) | (1,116) | |||||
Dividends paid on noncontrolling interest and other activities | (27) | (27) | |||||
Balance at end of period at Dec. 31, 2016 | 25,195 | 0 | 31,847 | 21,125 | (11,118) | (16,713) | 54 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 2,842 | 2,828 | 14 | ||||
Other comprehensive earnings/ (losses), net of income taxes | 1,149 | 1,121 | 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 ( $0.96, $0.82, and $0.72 per share for 2018, 2017 and 2016, respectively) | (1,239) | (1,239) | |||||
Dividends paid on noncontrolling interest and other activities | (16) | (16) | |||||
Balance at end of period at Dec. 31, 2017 | 26,074 | 0 | 31,915 | 22,631 | (9,997) | (18,555) | 80 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 3,395 | 3,381 | 14 | ||||
Other comprehensive earnings/ (losses), net of income taxes | (635) | (633) | (2) | ||||
Exercise of stock options and issuance of other stock awards | 292 | 46 | (118) | 364 | |||
Common Stock repurchased | (1,994) | (1,994) | |||||
Cash dividends declared ( $0.96, $0.82, and $0.72 per share for 2018, 2017 and 2016, respectively) | (1,409) | (1,409) | |||||
Dividends paid on noncontrolling interest and other activities | (10) | 6 | (16) | ||||
Balance at end of period at Dec. 31, 2018 | $ 25,713 | $ 0 | $ 31,961 | $ 24,491 | $ (10,630) | $ (20,185) | $ 76 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retained Earnings | |||
Cash dividends declared per share (in dollars per share) | $ 0.96 | $ 0.82 | $ 0.72 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | |||
Net earnings | $ 3,395 | $ 2,842 | $ 1,645 |
Adjustments to reconcile net earnings to operating cash flows: | |||
Depreciation and amortization | 811 | 816 | 823 |
Stock-based compensation expense | 128 | 137 | 140 |
U.S. tax reform transition tax (benefit)/tax | (38) | 1,317 | 0 |
Deferred income tax provision/(benefit) | 233 | (1,228) | (156) |
Asset impairments and accelerated depreciation | 141 | 334 | 446 |
Loss on early extinguishment of debt | 140 | 11 | 428 |
Net gain on divestitures | 0 | (186) | (9) |
Gain on equity method investment transactions | (778) | (40) | (43) |
Equity method investment net earnings | (548) | (344) | (262) |
Distributions from equity method investments | 180 | 152 | 75 |
Other non-cash items, net | 381 | (225) | (43) |
Change in assets and liabilities, net of acquisitions and divestitures: | |||
Receivables, net | 257 | (24) | 31 |
Inventories, net | (204) | (18) | 62 |
Accounts payable | 236 | 5 | 409 |
Other current assets | (25) | 14 | (176) |
Other current liabilities | (136) | (637) | 60 |
Change in pension and postretirement assets and liabilities, net | (225) | (333) | (592) |
Net cash provided by operating activities | 3,948 | 2,593 | 2,838 |
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | |||
Capital expenditures | (1,095) | (1,014) | (1,224) |
Acquisitions, net of cash received | (528) | 0 | (246) |
Proceeds from divestitures, net of disbursements | 1 | 604 | 303 |
Proceeds from sale of property, plant and equipment and other assets | 398 | 109 | 138 |
Net cash used in investing activities | (1,224) | (301) | (1,029) |
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | |||
Issuances of commercial paper, maturities greater than 90 days | 3,981 | 1,808 | 1,540 |
Repayments of commercial paper, maturities greater than 90 days | (2,856) | (1,911) | (1,031) |
Net issuances of other short-term borrowings | (1,413) | 1,027 | 1,741 |
Long-term debt proceeds | 2,948 | 350 | 5,640 |
Long-term debt repaid | (1,821) | (1,470) | (6,186) |
Repurchase of Common Stock | (2,020) | (2,174) | (2,601) |
Dividends paid | (1,359) | (1,198) | (1,094) |
Other | 211 | 207 | 129 |
Net cash used in financing activities | (2,329) | (3,361) | (1,862) |
Effect of exchange rate changes on cash and cash equivalents | (56) | 89 | (76) |
Cash and cash equivalents: | |||
Increase/(decrease) | 339 | (980) | (129) |
Balance at beginning of period | 761 | 1,741 | 1,870 |
Balance at end of period | 1,100 | 761 | 1,741 |
Cash paid: | |||
Interest | 491 | 398 | 630 |
Income taxes | $ 864 | $ 848 | $ 527 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Description of Business: Mondelēz International, Inc. was incorporated in 2000 in the Commonwealth of Virginia. Mondelēz International, Inc., through its subsidiaries (collectively “Mondelēz International,” “we,” “us” and “our”), sells food and beverage products to consumers in over 150 countries. Principles of Consolidation: The consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries which were deconsolidated in 2015. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors’ interests in the results of subsidiaries that we control and consolidate. 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. Under the cost method of accounting, earnings are recognized to the extent cash is received. Use of Estimates: We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require us to make estimates and assumptions that affect a number of amounts in our consolidated financial statements. Significant accounting policy elections, estimates and assumptions include, among others, pension and benefit plan assumptions, valuation assumptions of goodwill and intangible assets, useful lives of long-lived assets, restructuring program liabilities, marketing program accruals, insurance and self-insurance reserves and income taxes. We base our estimates on historical experience and other assumptions that we believe are reasonable. If actual amounts differ from estimates, we include the revisions in our consolidated results of operations in the period the actual amounts become known. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a material effect on our consolidated financial statements. Segment Change : On October 1, 2016, we integrated our Eastern Europe, Middle East, and Africa (“EEMEA”) operating segment into our Europe and Asia Pacific operating segments to further leverage and optimize the operating scale built within the Europe and Asia Pacific regions. Russia, Ukraine, Turkey, Belarus, Georgia and Kazakhstan were combined within our Europe region, while the remaining Middle East and African countries were combined within our Asia Pacific region to form a new Asia, Middle East and Africa (“AMEA”) operating segment. We have reflected the segment change as if it had occurred in all periods presented. Our operations and management structure are organized into four operating segments: • Latin America • AMEA • Europe • North America See Note 17, Segment Reporting , for additional information on our segments. 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 (except for highly inflationary currencies) 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 discussed below, beginning on July 1, 2018, we began to apply highly inflationary accounting for our operations in Argentina. Argentina. During the second quarter of 2018, primarily based on published estimates which indicated that Argentina's three-year cumulative inflation rate exceeded 100%, we concluded that Argentina became a highly inflationary economy for accounting purposes. As of July 1, 2018, we began to apply highly inflationary accounting for our Argentinean subsidiaries and changed their functional currency from the Argentinean peso to the U.S. dollar. On July 1, 2018, both monetary and non-monetary assets and liabilities denominated in Argentinean pesos were remeasured into U.S. dollars using the exchange rate as of the balance sheet date, with remeasurement and other transaction gains and losses recorded in net earnings. As of December 31, 2018 , our Argentinean operations had less than $1 million of Argentinean peso denominated net monetary liabilities . Our Argentinean operations contributed $469 million , or 1.8% of consolidated net revenues in 2018 . During 2018 we recorded an $11 million remeasurement loss within selling, general and administrative expenses related to the devaluation of the Argentinean peso denominated net monetary assets from July 1, 2018 through December 31, 2018 . Brexit. In 2018, we generated 8.6% of our net revenues in the United Kingdom. We continue to monitor the U.K. planned exit from the European Union ("Brexit") and take protective measures in response to the potential impacts on our results of operations and financial condition. Following the Brexit vote in June 2016, there was significant volatility in the global stock markets and currency exchange rates. The value of the British pound sterling relative to the U.S. dollar declined significantly and negatively affected our translated results reported in U.S. dollars. If the ultimate terms of the United Kingdom’s separation from the European Union negatively impact the U.K. economy or result in disruptions to sales or our supply chain, the impact to our results of operations and financial condition could be material. We are taking measures to increase our resources in customer service & logistics together with increasing our inventory levels of imported raw materials, packaging and finished goods in the United Kingdom to help us manage through the Brexit transition and the inherent risks. Other Countries. Since we sell our products in over 150 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, 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 economies. Cash and Cash Equivalents: Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. 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 nonrecourse 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 $819 million as of December 31, 2018 , $843 million as of December 31, 2017 and $677 million as of December 31, 2016 . The incremental costs of factoring receivables under this arrangement were $10 million or less in each of the years presented. The proceeds from the sales of receivables are included in cash from operating activities in the consolidated statements of cash flows. Inventories: We value our inventory using the average cost method. We also record inventory allowances for overstock and obsolete inventories due to ingredient and packaging changes. Long-Lived Assets: Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 20 years and buildings and building improvements over periods up to 40 years. We review long-lived assets, including amortizable intangible assets, for realizability on an ongoing basis. Changes in depreciation, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. We also review for impairment when conditions exist that indicate the carrying amount of the assets may not be fully recoverable. In those circumstances, we perform undiscounted operating cash flow analyses to determine if an impairment exists. When testing for asset impairment, we group assets and liabilities at the lowest level for which cash flows are separately identifiable. Any impairment loss is calculated as the excess of the asset’s carrying value over its estimated fair value. Fair value is estimated based on the discounted cash flows for the asset group over the remaining useful life or based on the expected cash proceeds for the asset less costs of disposal. Any significant impairment losses would be recorded within asset impairment and exit costs in the consolidated statements of earnings. Software Costs: We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are included in property, plant and equipment and amortized on a straight-line basis over the estimated useful lives of the software, which do not exceed seven years. Goodwill and Non-Amortizable Intangible Assets: We test goodwill and non-amortizable intangible assets for impairment on an annual basis on July 1. We assess goodwill impairment risk throughout the year by performing a qualitative review of entity-specific, industry, market and general economic factors affecting our goodwill reporting units. We review our operating segment and reporting unit structure for goodwill testing annually or as significant changes in the organization occur. Annually, we may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, we may elect to do quantitative testing instead. In our quantitative testing, we compare a reporting unit’s estimated fair value with its carrying value. We estimate a reporting unit’s fair value using a discounted cash flow method that incorporates planned growth rates, market-based discount rates and estimates of residual value. This year, for our Europe and North America reporting units, we used a market-based, weighted-average cost of capital of 7.3% to discount the projected cash flows of those operations. For our Latin America and AMEA reporting units, we used a risk-rated discount rate of 10.3% . Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans, industry and economic conditions, and our actual results and conditions may differ over time. If the carrying value of a reporting unit’s net assets exceeds its fair value, we would recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. Annually we assess non-amortizable intangible assets for impairment by performing a qualitative review and assessing events and circumstances that could affect the fair value or carrying value of the indefinite-lived intangible assets. If significant potential impairment risk exists for a specific asset, we quantitatively test it for impairment by comparing its estimated fair value with its carrying value. We determine estimated fair value using planned growth rates, market-based discount rates and estimates of royalty rates. If the carrying value of the asset exceeds its fair value, we consider the asset impaired and reduce its carrying value to the estimated fair value. We amortize definite-lived intangible assets over their estimated useful lives and evaluate them for impairment as we do other long-lived assets. Insurance and Self-Insurance: We use a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability, product liability and our obligation for employee healthcare benefits. We estimate the liabilities associated with these risks on an undiscounted basis by evaluating and making judgments about historical claims experience and other actuarial assumptions and the estimated impact on future results. Revenue Recognition: We predominantly sell food and beverage products across several product categories and in all regions as disclosed in Note 17, 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. Marketing, Advertising and Research and Development: We promote our products with marketing and advertising programs. These programs include, but are not limited to, cooperative advertising, in-store displays and consumer marketing promotions. For interim reporting purposes, advertising and consumer promotion expenses are charged to operations as a percentage of volume, based on estimated sales volume and estimated program spending. We do not defer costs on our year-end consolidated balance sheet and all marketing and advertising costs are recorded as an expense in the year incurred. Advertising expense was $1,173 million in 2018 , $1,248 million in 2017 and $1,396 million in 2016 . We expense product research and development costs as incurred. Research and development expense was $362 million in 2018 , $366 million in 2017 and $376 million in 2016 . We record marketing and advertising as well as research and development expenses within selling, general and administrative expenses. Stock-based Compensation: Stock-based compensation awarded to employees and non-employee directors is valued at fair value on the grant date. We record stock-based compensation expense over the vesting period, generally three years. Forfeitures are estimated on the grant date for all of our stock-based compensation awards. Employee Benefit Plans: We provide a range of benefits to our current and retired employees. These include pension benefits, postretirement health care benefits and postemployment benefits depending upon jurisdiction, tenure, job level and other factors. Local statutory requirements govern many of the benefit plans we provide around the world. Local government plans generally cover health care benefits for retirees outside the United States, Canada and United Kingdom. As such, our U.S., Canadian and U.K. subsidiaries provide health care and other benefits to most retired employees. Our postemployment benefit plans provide primarily severance benefits for eligible salaried and certain hourly employees. The cost for these plans is recognized in earnings primarily over the working life of the covered employee. Financial Instruments: We use financial instruments to manage our currency exchange rate, commodity price and interest rate risks. We monitor and manage these exposures as part of our overall risk management program, which focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results. A principal objective of our risk management strategies is to reduce significant, unanticipated earnings fluctuations that may arise from volatility in currency exchange rates, commodity prices and interest rates, principally through the use of derivative instruments. We use a combination of primarily currency forward contracts, futures, options and swaps; commodity forward contracts, futures and options; and interest rate swaps to manage our exposure to cash flow variability, protect the value of our existing currency assets and liabilities and protect the value of our debt. See Note 9, Financial Instruments , for more information on the types of derivative instruments we use. We record derivative financial instruments on a gross basis and at fair value in our consolidated balance sheets within other current assets or other current liabilities due to their relatively short-term duration. Cash flows from derivative instruments are classified in the consolidated statements of cash flows based on the nature of the derivative instrument. Changes in the fair value of a derivative that is designated as a cash flow hedge, to the extent that the hedge is effective, are recorded in accumulated other comprehensive earnings/(losses) and reclassified to earnings when the hedged item affects earnings. Changes in fair value of economic hedges and the ineffective portion of all hedges are recognized in current period earnings. Changes in the fair value of a derivative that is designated as a fair value hedge, along with the changes in the fair value of the related hedged asset or liability, are recorded in earnings in the same period. We use non-U.S. dollar denominated debt to hedge a portion of our net investment in non-U.S. operations against adverse movements in exchange rates. Currency movements related to our non-U.S. debt and our net investments in non-U.S. operations, as well as the related deferred taxes, are recorded within currency translation adjustment in accumulated other comprehensive earnings/(losses). In order to qualify for hedge accounting, a specified level of hedging effectiveness between the derivative instrument and the item being hedged must exist at inception and throughout the hedged period. We must also formally document the nature of and relationship between the derivative and the hedged item, as well as our risk management objectives, strategies for undertaking the hedge transaction and method of assessing hedge effectiveness. Additionally, for a hedge of a forecasted transaction, the significant characteristics and expected term of the forecasted transaction must be specifically identified, and it must be probable that the forecasted transaction will occur. If it is no longer probable that the hedged forecasted transaction will occur, we would recognize the gain or loss related to the derivative in earnings. When we use derivatives, we are exposed to credit and market risks. Credit risk exists when a counterparty to a derivative contract might fail to fulfill its performance obligations under the contract. We reduce our credit risk by entering into transactions with counterparties with high quality, investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. We also maintain a policy of requiring that all significant, non-exchange traded derivative contracts with a duration of one year or longer are governed by an International Swaps and Derivatives Association master agreement. Market risk exists when the value of a derivative or other financial instrument might be adversely affected by changes in market conditions and commodity prices, currency exchange rates or interest rates. We manage derivative market risk by limiting the types of derivative instruments and derivative strategies we use and the degree of market risk that we plan to hedge through the use of derivative instruments. Commodity derivatives . We are exposed to price risk related to forecasted purchases of certain commodities that we primarily use as raw materials. We enter into commodity forward contracts primarily for wheat, sugar and other sweeteners, soybean and vegetable oils and cocoa. Commodity forward contracts generally are not subject to the accounting requirements for derivative instruments and hedging activities under the normal purchases exception. We also use commodity futures and options to hedge the price of certain input costs, including cocoa, energy costs, sugar and other sweeteners, wheat, packaging, dairy, corn, and soybean and vegetable oils. We also sell commodity futures to unprice future purchase commitments, and we occasionally use related futures to cross-hedge a commodity exposure. We are not a party to leveraged derivatives and, by policy, do not use financial instruments for speculative purposes. During the third quarter of 2016, we discontinued designating commodity derivatives for hedge accounting treatment. Any unrealized gains or losses (mark-to-market impacts) and realized gains or losses are recorded in earnings. Currency exchange derivatives . We use various financial instruments to mitigate our exposure to changes in exchange rates from third-party and intercompany current and forecasted transactions. These instruments may include currency exchange forward contracts, futures, options and swaps. Based on the size and location of our businesses, we use these instruments to hedge our exposure to certain currencies, including the euro, pound sterling, Swiss franc, Canadian dollar and Mexican peso. During the third quarter of 2016, we discontinued designating currency exchange derivatives for hedge accounting treatment. Any unrealized gains or losses (mark-to-market impacts) and realized gains or losses are recorded in earnings (see Note 9, Financial Instruments , for additional information). Interest rate cash flow and fair value hedges . We manage interest rate volatility by modifying the pricing or maturity characteristics of certain liabilities so that the net impact on expense is not, on a material basis, adversely affected by movements in interest rates. As a result of interest rate fluctuations, hedged fixed-rate liabilities appreciate or depreciate in market value. We expect the effect of this unrealized appreciation or depreciation to be substantially offset by our gains or losses on the derivative instruments that are linked to these hedged liabilities. We use derivative instruments, including interest rate swaps that have indices related to the pricing of specific liabilities as part of our interest rate risk management strategy. As a matter of policy, we do not use highly leveraged derivative instruments for interest rate risk management. We use interest rate swaps to economically convert a portion of our fixed-rate debt into variable-rate debt. Under the interest rate swap contracts, we agree with other parties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts, which is calculated based on an agreed-upon notional amount. We use interest rate swaps to hedge the variability of interest payment cash flows on a portion of our future debt obligations. We also execute cross-currency interest rate swaps to hedge interest payments on newly issued debt denominated in a different currency than the functional currency of the borrowing entity. Substantially all of these derivative instruments are highly effective and qualify for hedge accounting treatment. Hedges of net investments in non-U.S. operations . We have numerous investments outside the United States. The net assets of these subsidiaries are exposed to changes and volatility in currency exchange rates. We use local currency denominated debt to hedge our non-U.S. net investments against adverse movements in exchange rates. We designated our euro, pound sterling, Swiss franc and Canadian dollar-denominated borrowings as a net investment hedge of a portion of our overall international operations. The gains and losses on our net investment in these designated international operations are economically offset by losses and gains on our euro, pound sterling, Swiss franc and Canadian dollar-denominated borrowings. The change in the debt’s value, net of deferred taxes, is recorded in the currency translation adjustment component of accumulated other comprehensive earnings/(losses). Additionally, 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 after-tax gain/(loss) on these net investment hedge contracts is recorded in the cumulative translation adjustment section of other comprehensive income and the pre-tax impacts of the cash flows from these contracts are reported as other investing activities in the consolidated statement of cash flows. Income Taxes: Our provision for income taxes includes amounts payable or refundable for the current year, the effects of deferred taxes and impacts from uncertain tax positions. We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of our assets and liabilities, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those differences are expected to reverse. The realization of certain deferred tax assets is dependent on generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. When assessing the need for a valuation allowance, we consider any carryback potential, future reversals of existing taxable temporary differences (including liabilities for unrecognized tax benefits), future taxable income and tax planning strategies. We recognize tax benefits in our financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained based on the technical merits of the position. The amount we recognize is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon resolution. Future changes related to the expected resolution of uncertain tax positions could affect tax expense in the period when the change occurs. We monitor for changes in tax laws and reflect the impacts of tax law changes in the period of enactment. In response to the United States tax reform legislation enacted on December 22, 2017 (“U.S. tax reform”), the U.S. Securities and Exchange Commission (“SEC”) issued guidance that allowed us to record provisional amounts for the impacts of U.S. tax reform if the full accounting could not be completed before we filed our 2017 financial statements. For provisions of the tax law where we were unable to make a reasonable estimate of the impact, the guidance allowed us to continue to apply the historical tax provisions in computing our income tax liability and deferred tax assets and liabilities as of December 31, 2017 . The guidance allowed us to finalize accounting for the U.S. tax reform changes within one year of the December 22, 2017 enactment date. We have finalized our accounting for the new provisions based on the guidance that has been issued and included the impacts in our 2018 consolidated financial statements. See Note 15, Income Taxes , for additional information on the impacts of U.S. tax reform. New Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs for internal-use software. This ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. In August 2018, the FASB issued an ASU that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The new standard may impact our disclosures and is not expected to have an impact on our consolidated financial statements. In August 2018, the FASB issued an ASU that modifies the disclosure requirements on fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The new standard may impact our disclosures and is not expected to have an impact on our consolidated financial statements. In June 2018, the FASB issued an 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. This ASU is not expected to have a material 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 do not expect to elect to reclassify these stranded tax effects from U.S. tax reform when we adopt this ASU in the first quarter of 2019. As such, this ASU is not expected to have a material 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 this 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 June 2016, the FAS |
Divestitures and Acquisitions
Divestitures and Acquisitions | 12 Months Ended |
Dec. 31, 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 for $528 million cash paid, net of cash received, and extended our premium biscuit offerings. We expect to finalize the purchase price paid and related purchase price allocation once working capital and other adjustments are finalized. We accounted for the transaction as a business combination. As of December 31, 2018, we recorded a preliminary purchase price allocation of $45 million to definite-lived intangible assets, $205 million to indefinite-lived intangible assets, $298 million to goodwill, $16 million to property, plant and equipment, $5 million to inventory, $9 million to accounts receivable, $6 million to current liabilities and $44 million to deferred tax liabilities. The acquisition added incremental net revenues of $52 million and incremental operating income of $7 million in 2018. We also recorded $13 million of acquisition-related costs in 2018. 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. 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. We also recorded divestiture-related costs of $2 million and a foreign currency hedge loss of $3 million during 2017. In the fourth quarter of 2017, we recorded a $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. We recorded a $3 million loss on the sale and divestiture-related costs of $27 million in 2017 and $84 million in 2016. These divestiture-related costs were recorded within cost of sales and selling, general and administrative expenses primarily within our Europe segment. In prior periods, we recorded a $5 million impairment charge in May 2016 for a candy trademark to reduce the overall net assets to the estimated net sales proceeds after transaction costs. On March 31, 2016, we recorded a $14 million impairment charge for another gum & candy trademark as a portion of its carrying value would not be recoverable based on future cash flows expected under a planned license agreement with the buyer. During the year ended December 31, 2016, we also completed the following sale transactions: • On December 31, 2016, we completed the sale of a chocolate factory in Belgium. In connection with this transaction, we recorded a pre-tax loss of €65 million ( $68 million as of December 31, 2016), within asset impairment and exit costs in our Europe segment. The loss includes a fixed asset impairment charge of €30 million ( $31 million as of December 31, 2016), a loss on disposal of €22 million ( 23 million as of December 31, 2016) and incremental expenses we incurred and accrued of €13 million ( $14 million as of December 31, 2016) related to selling the factory. • On December 1, 2016, we completed the sale of a confectionery business in Costa Rica represented by a local brand. The sales price was $28 million and we recorded a pre-tax gain of $9 million within gains on divestiture within our Latin America segment. We divested approximately $11 million of property, plant and equipment, $4 million of goodwill and $2 million of inventory. In connection with this transaction, we incurred $2 million of transaction costs and accrued expenses. • On August 26, 2016, we recorded a $7 million gain for the sale of a U.S.-owned biscuit trademark. The gain was recorded within selling, general and administrative expenses in 2016. • On May 2, 2016, we completed the sale of certain local biscuit brands in Finland. The sales price was €14 million ( $16 million as of May 2, 2016) and we recorded a pre-tax gain of $6 million ( $5 million after tax) within selling, general and administrative expenses of our Europe segment in the year ended December 31, 2016. We divested $8 million of indefinite-lived intangible assets and less than $1 million of other assets. We received cash proceeds of €12 million ( $14 million as of May 2, 2016) upon closing and another €2 million ( $2 million as of October 31, 2016) of consideration following the completion of post-closing requirements. The additional $2 million of consideration increased the pre-tax gain to $8 million ( $6 million after tax) through December 31, 2016. On November 2, 2016, we purchased from Burton’s Biscuit Company certain intangibles, which included the license to manufacture, market and sell Cadbury-branded biscuits in additional key markets around the world, including in the United Kingdom, France, Ireland, North America and Saudi Arabia. The transaction was accounted for as a business combination. Total cash paid for the acquired assets was €199 million ( $245 million as of November 2, 2016). During the third quarter of 2017, we completed the valuation work and finalized the purchase price allocation of $66 million to definite-lived intangible assets, $173 million to goodwill, $2 million to property, plant and equipment and $4 million to inventory, reflecting a November 2, 2016 exchange rate. The acquisition added incremental net revenues of $59 million in 2017 and $16 million in 2016 and added incremental operating income of $8 million in 2017 and $1 million in 2016. During the third quarter of 2016, we completed the acquisition of a Vietnamese biscuit operation within our AMEA segment. On July 15, 2015, we acquired an 80% interest in the biscuit operation and on August 22, 2016, we acquired the remaining 20% interest. Total cash paid for the biscuit operation, intellectual property, non-compete and consulting agreements less purchase price adjustments was 12,404 billion Vietnamese dong ( $569 million using applicable exchange rates on July 15, 2015, November 27, 2015 and August 22, 2016). On August 22, 2016, in connection with acquiring the remaining 20% interest in the biscuit operation, escrowed funds of $70 million were released and we retained an agreed $20 million related to two outstanding acquisition-related matters. We subsequently released $5 million in 2016 and $9 million in 2017 to the sellers and expect to pay $4 million within five years as remaining indemnified obligations are resolved. On August 22, 2016, we also made a final payment of 759 billion Vietnamese dong ( $35 million as of August 22, 2016) for the non-compete and consulting agreements. The non-compete and consulting agreements were recorded as prepaid contracts within other current and non-current assets and will be amortized into net earnings over the term of the agreements. During the third quarter of 2016, we also finalized the valuation and purchase price allocation of the acquired net assets of the business, which included $10 million of inventory, $49 million of property, plant and equipment, $86 million of intangible assets, $385 million of goodwill and $31 million of other net liabilities. In periods following the initial July 15, 2015 first closing date, the allocation of the net asset fair values had an immaterial impact on our operating results. The acquisition added incremental net revenues of $71 million in 2016 and added incremental operating income of $5 million in 2016. Within selling, general and administrative expenses, we recorded integration costs of $7 million in 2016. We also recorded acquisition integration costs of $4 million in 2018 and $3 million in 2017. Sales of Property: On November 9, 2016, we completed the sale of a manufacturing plant in Russia and recorded total expenses of $12 million , including a related fixed asset impairment charge of $4 million within asset impairments and exit costs. The sale of the land, buildings and equipment generated cash proceeds of $6 million . In 2016, we also sold property within our North America segment and from our centrally held corporate assets. In the third quarter of 2016, we sold property in North America that generated cash proceeds of $10 million and a pre-tax gain of $6 million and we sold a corporate aircraft hangar that generated cash proceeds of $3 million and a pre-tax gain of $1 million . In the second quarter of 2016, we also sold property within our North America segment and from our centrally held corporate assets. The North America sale generated cash proceeds of $40 million and a pre-tax gain of $33 million . The corporate aircraft sale generated cash proceeds of $20 million and a pre-tax gain of $6 million |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of December 31, 2018 2017 (in millions) Raw materials $ 726 $ 711 Finished product 1,987 1,975 2,713 2,686 Inventory reserves (121 ) (129 ) Inventories, net $ 2,592 $ 2,557 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 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 December 31, 2018 2017 (in millions) Land and land improvements $ 424 $ 458 Buildings and building improvements 2,984 2,979 Machinery and equipment 10,943 11,195 Construction in progress 894 1,048 15,245 15,680 Accumulated depreciation (6,763 ) (7,003 ) Property, plant and equipment, net $ 8,482 $ 8,677 Capital expenditures as presented on the statement of cash flow were $1.1 billion , $1.0 billion and $1.2 billion for the years ending December 31, 2018 , 2017 and 2016 and excluded $331 million , $357 million and $343 million for accrued capital expenditures not yet paid. In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) of $59 million in 2018 , $206 million in 2017 and $301 million in 2016 (see Note 7, Restructuring Program ). These charges related to property, plant and equipment were recorded in the consolidated statements of earnings within asset impairment and exit costs and in the segment results as follows: For the Years Ended December 31, 2018 2017 2016 (in millions) Latin America $ 25 $ 36 $ 22 AMEA 5 81 44 Europe 15 58 122 North America 13 30 111 Corporate 1 1 2 Non-cash property, plant and equipment write-downs $ 59 $ 206 $ 301 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill by operating segment was: As of December 31, 2018 2017 (in millions) Latin America $ 823 $ 901 AMEA 3,210 3,371 Europe 7,519 7,880 North America 9,173 8,933 Goodwill $ 20,725 $ 21,085 Intangible assets consisted of the following: As of December 31, 2018 2017 (in millions) Non-amortizable intangible assets $ 17,201 $ 17,671 Amortizable intangible assets 2,328 2,386 19,529 20,057 Accumulated amortization (1,527 ) (1,418 ) Intangible assets, net $ 18,002 $ 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 $176 million in 2018 , $178 million in 2017 and $176 million in 2016 . For the next five years, we estimate annual amortization expense of approximately $170 million for the next two years and approximately $85 million in years three to five, reflecting December 31, 2018 exchange rates. Changes in goodwill and intangible assets consisted of: 2018 2017 Goodwill Intangible Assets, at cost Goodwill Intangible Assets, at cost (in millions) Balance at January 1 $ 21,085 $ 20,057 $ 20,276 $ 19,319 Changes due to: Currency (658 ) (710 ) 909 954 Divestitures — — (114 ) (100 ) Acquisitions 298 250 15 (7 ) Asset impairments — (68 ) — (109 ) Other — — (1 ) — Balance at December 31 $ 20,725 $ 19,529 $ 21,085 $ 20,057 Changes to goodwill and intangibles were: • Divestitures – During 2017, in connection with the divestiture of several manufacturing facilities, primarily in France, we divested $23 million of goodwill and $62 million of amortizable and non-amortizable intangible assets. In 2017, we also completed a sale of most of our grocery business in Australia and New Zealand and divested $86 million of related goodwill. Furthermore, we completed a sale of a confectionery business in Japan and divested $5 million of goodwill and $24 million of definite lived intangible assets. Finally, we divested $14 million of definite lived intangible asset as part of our sale of one of our equity method investments. See Note 2, Divestitures and Acquisitions , for additional information. • Acquisitions – In connection with the acquisition of Tate's Bake Shop in the second quarter of 2018, we recorded a preliminary purchase price allocation of $298 million to goodwill and $250 million to intangible assets. During 2017, we recorded a $15 million adjustment to goodwill and a $7 million adjustment to indefinite lived assets in connection with finalizing the valuation and purchase price allocation for the Burton’s Biscuit Company purchase completed in the fourth quarter of 2016. See Note 2, Divestitures and Acquisitions , for additional information. • Asset impairments – As further discussed below, we recorded $68 million of intangible asset impairments in 2018 and $109 million in 2017 . In 2018 , 2017 and 2016 , there were no goodwill impairments and each of our reporting units had sufficient fair value in excess of its carrying value. While all reporting units passed our annual impairment testing, if planned business performance expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then the estimated fair values of a reporting unit or reporting units might decline and lead to a goodwill impairment in the future. During our 2018 annual testing of non-amortizable intangible assets, we recorded $68 million of impairment charges in the third quarter related to five trademarks. We recorded charges related to gum, chocolate, biscuits and candy trademarks of $45 million in Europe, $14 million in North America and $9 million in AMEA. We also identified seven brands, including the five impaired trademarks, with $538 million of aggregate book value as of December 31, 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. In 2017 , we recorded $109 million of impairment charges, of which $70 million related to annual testing impairment charges for candy and gum trademarks of $52 million in AMEA, $11 million in Europe, $5 million in Latin America and $2 million in North America. During 2017, we also recorded a $38 million intangible asset impairment charge resulting from a category decline and lower than expected product growth related to a gum trademark in our North America segment and a $1 million intangible asset impairment charge related to a transaction. In 2016 , we recorded $137 million of impairment charges, of which $98 million related to annual testing impairment charges related to biscuits, candy and gum trademarks of $41 million in AMEA, $32 million in North America, $22 million in Europe, and $3 million in Latin America. During 2016, we also recorded $20 million of impairments related to the planned sale of a confectionery business in France and we also recorded $19 million of charges in our Europe, North America and AMEA segments resulting from the discontinuation of four biscuit products and one |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 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 $7,123 million as of December 31, 2018 and $6,193 million as of December 31, 2017 . In both years, our largest equity method investments were in Jacobs Douwe Egberts (“JDE”) and Keurig Green Mountain, Inc. ("Keurig") prior to July 9, 2018 and Keurig Dr Pepper Inc. (NYSE: "KDP”) subsequent to July 9, 2018. JDE: On July 2, 2015, we completed transactions to combine our wholly owned coffee businesses with those of D.E Master Blenders 1753 B.V. (“DEMB”) to create a new company, JDE. Through March 7, 2016, we held a 43.5% interest in JDE. Following the March 7, 2016 exchange of a portion of our investment in JDE for an interest in Keurig, we held a 26.5% equity interest in JDE. (See Keurig below.) The remaining 73.5% equity interest in JDE was held by a subsidiary of Acorn Holdings B.V. (“AHBV,” owner of DEMB prior to July 2, 2015). As of December 31, 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 $230 million (which includes a deferred tax benefit from a Dutch tax rate reduction) in 2018 , $129 million in 2017 and $100 million in 2016 . We also recorded $73 million of cash dividends received in 2018 and $49 million of cash dividends received in 2017. On June 30, 2016, we entered into agreements with AHBV and its affiliates to establish a new stock-based compensation arrangement tied to the issuance of JDE equity compensation awards to JDE employees. This arrangement replaced a temporary equity compensation program tied to the issuance of AHBV equity compensation to JDE employees. New Class C, D and E JDE shares were authorized and issued for investments made by, and vested stock-based compensation awards granted to, JDE employees. Under these arrangements, share ownership dilution from the JDE Class C, D and E shareholders was limited to 2% . On July 5, 2016, we received an expected cash payment of $275 million from JDE to settle an outstanding receivable related to tax formation costs related to the formation of JDE. On July 19, 2016, the Supreme Court of Spain reached a final resolution on a challenged JDE tax position held by a predecessor DEMB company that resulted in an unfavorable tax expense of €114 million . As a result, our share of JDE’s equity earnings during the third quarter of 2016 was negatively affected by €30 million ( $34 million ). Keurig: On March 3, 2016, a subsidiary of AHBV completed a $13.9 billion acquisition of all of the outstanding common stock of Keurig through a merger transaction. On March 7, 2016, we exchanged with a subsidiary of AHBV a portion of our equity interest in JDE with a carrying value of €1.70 billion (approximately $2.0 billion as of March 7, 2016) for an interest in Keurig with a fair value of $2.0 billion based on the merger consideration per share for Keurig. We recorded the difference between the fair value of Keurig and our basis in JDE shares as a $43 million gain on the equity method investment exchange in March 2016. Immediately following the exchange, our ownership interest in JDE was 26.5% and our interest in Keurig was 24.2% . Our initial $2.0 billion investment in Keurig included a $1.6 billion Keurig equity interest and a $0.4 billion shareholder loan receivable, which were reported on a combined basis within equity method investments prior to the Keurig Dr. Pepper transaction described below. The shareholder loan had a 5.5% interest rate and was payable at the end of a seven -year term on February 27, 2023. Within equity method investment net earnings, we recorded shareholder loan interest income of $12 million in 2018 , $24 million in 2017 and $20 million in 2016 . We received shareholder loan interest payments of $12 million in 2018 , $30 million in 2017 and $14 million in 2016 and dividends of $34 million in 2018 , $14 million in 2017 and $4 million in 2016 . Keurig Dr Pepper: On July 9, 2018, Keurig closed on its definitive merger agreement with Dr Pepper Snapple Group, Inc., and formed KDP, a publicly traded company. Following the close of the transaction, our 24.2% investment in Keurig together with our shareholder loan receivable became a 13.8% investment in KDP. During the third quarter of 2018, we recorded a preliminary pre-tax gain of $757 million reported as a gain on equity method transaction and $ 184 million of deferred tax expense reported in the provision for income taxes (or $573 million after-tax gain) related to the change in our ownership interest while KDP finalized the valuation for the transaction. During our fourth quarter of 2018, KDP finalized its opening balance sheet and we increased our pre-tax gain by $21 million (or $13 million after-tax) to $778 million (or $586 million after-tax) while recording $8 million of deferred tax expense related to the increase for a total deferred tax expense of $192 million for 2018. We hold two director positions on the KDP board as well as additional governance rights. As we continue to have significant influence, we continue to account for our investment in KDP 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. In connection with this transaction, we changed our accounting principle during the third quarter of 2018 to reflect our share of Keurig's historical and KDP's ongoing earnings on a one-quarter lag basis while we continue to record dividends when cash is received. We determined a lag was preferable as it enables us to continue to report our quarterly and annual results on a timely basis and to record our share of KDP’s ongoing results once KDP has publicly reported its results. This change in accounting principle was applied retrospectively to all periods. While our operating income did not change, equity method investment net earnings, net earnings and earnings per share have been adjusted to reflect the lag across all reported periods. The following tables show the primary line items on the consolidated statements of earnings and comprehensive earnings and the consolidated balance sheet that changed as a result of the lag. The consolidated statements of cash flow and equity were also updated to reflect these changes. For the Years Ended December 31, 2017 December 31, 2016 As Reported As Adjusted As Reported As Adjusted (in millions, except per share data) Statements of Earnings Provision for income taxes $ (688 ) $ (666 ) $ (129 ) $ (114 ) Equity method investment net earnings 460 344 301 262 Net earnings 2,936 2,842 1,669 1,645 Net earnings attributable to Mondelēz International 2,922 2,828 1,659 1,635 Earnings per share attributable to Mondelēz International: Basic EPS $ 1.93 $ 1.87 $ 1.07 $ 1.05 Diluted EPS $ 1.91 $ 1.85 $ 1.05 $ 1.04 Statements of Other Comprehensive Earnings Currency translation adjustment $ 1,201 $ 1,198 $ (925 ) $ (921 ) Total other comprehensive earnings/(losses) 1,152 1,149 (1,153 ) (1,149 ) Comprehensive earnings attributable to Mondelēz International 4,046 3,949 523 503 As of December 31, 2017 As Reported As Adjusted (in millions) Balance Sheet Equity method investments $ 6,345 $ 6,193 Deferred income taxes 3,376 3,341 Retained earnings 22,749 22,631 Accumulated other comprehensive losses (9,998 ) (9,997 ) Total Mondelēz International shareholders' equity 26,111 25,994 Total equity 26,191 26,074 As of December 31, 2018 , we held a 13.8% ownership interest in KDP. Our ownership interest in KDP may change over time due to stock-based compensation arrangements and other transactions by KDP. As of December 31, 2018 , the fair value of our ownership interest in KDP was approximately $4.9 billion based on KDP's closing stock price. Keurig and KDP equity earnings, as adjusted for the one-quarter lag basis, totaled $213 million in 2018 (which includes a deferred tax benefit Keurig recorded as a result of U.S. tax reform), $92 million in 2017 and $38 million in 2016 . Other Equity Method Investment transactions: 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. Summary Financial Information for Equity Method Investments: Summarized financial information related to our equity method investments is reflected below. The tables below reflect the adjustments noted above for the Keurig and KDP one-quarter lag. As of December 31, 2018 2017 (in millions) Current assets $ 5,695 $ 5,033 Noncurrent assets 69,445 38,320 Total assets $ 75,140 $ 43,353 Current liabilities $ 9,434 $ 5,709 Noncurrent liabilities 29,296 16,510 Total liabilities $ 38,730 $ 22,219 Equity attributable to shareowners of investees $ 36,365 $ 21,064 Equity attributable to noncontrolling interests 46 71 Total net equity of investees $ 36,411 $ 21,135 Mondelēz International ownership interests 13-50% 24-50% Mondelēz International share of investee net equity (1) $ 7,123 $ 5,753 Keurig shareholder loan — 440 Equity method investments $ 7,123 $ 6,193 For the Years Ended December 31, 2018 2017 2016 (in millions) Net revenues $ 14,185 $ 12,824 $ 9,709 Gross profit 6,076 4,913 3,748 Income from continuing operations 1,980 1,118 680 Net income 1,980 1,118 680 Net income attributable to investees $ 1,970 $ 1,115 $ 679 Mondelēz International ownership interests 13-50% 24-50% 24-50% Mondelēz International share of investee net income $ 536 $ 320 $ 242 Keurig shareholder loan interest income 12 24 20 Equity method investment net earnings $ 548 $ 344 $ 262 (1) Includes a basis difference of approximately $340 million as of December 31, 2018 and $360 million as of December 31, 2017 between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees’ equity. |
Restructuring Program
Restructuring Program | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Program | Note 7. Restructuring Program On May 6, 2014, our Board of Directors approved a $3.5 billion 2014-2018 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 the $5.7 billion program consisted of approximately $4.1 billion of restructuring program costs ( $3.1 billion cash costs and $1.0 billion non-cash costs) and up to $1.6 billion of capital expenditures. On September 6, 2018, our Board of Directors approved an extension of the restructuring program through 2022, an increase of $1.3 billion in the program charges and an increase of $700 million in capital expenditures. The total $7.7 billion program now consists of $5.4 billion of program charges ( $4.1 billion of cash costs and $1.3 billion of non-cash costs) and total capital expenditures of $2.3 billion to be incurred over the life of the program. The restructuring program, as increased and extended by these actions, is now called the Simplify to Grow Program. The primary objective of the Simplify to Grow Program is to reduce our operating cost structure in both our supply chain and overhead costs. The program covers severance as well as asset disposals and other manufacturing and procurement-related one-time costs. Since inception, we have incurred total restructuring and related implementation charges of $3.9 billion related to the Simplify to Grow Program. We expect to incur the program charges by year-end 2022. Restructuring Costs : The Simplify to Grow Program liability activity for the years ended December 31, 2018 and 2017 was: Severance and related costs Asset Write-downs Total (in millions) Liability Balance, January 1, 2017 $ 464 $ — $ 464 Charges 323 212 535 Cash spent (347 ) — (347 ) Non-cash settlements/adjustments (3 ) (212 ) (215 ) Currency 27 — 27 Liability Balance, December 31, 2017 $ 464 $ — $ 464 Charges 253 63 316 Cash spent (310 ) — (310 ) Non-cash settlements/adjustments (4 ) (63 ) (67 ) Currency (30 ) — (30 ) Liability Balance, December 31, 2018 $ 373 $ — $ 373 We recorded restructuring charges of $316 million in 2018 , $535 million in 2017 and $714 million in 2016 within asset impairment and exit costs. We spent $310 million in 2018 and $347 million in 2017 in cash severance and related costs. We also recognized non-cash pension settlement losses (See Note 10, Benefit Plans ) , non-cash asset write-downs (including accelerated depreciation and asset impairments) and other non-cash adjustments totaling $67 million in 2018 and $215 million in 2017 . At December 31, 2018 , $307 million of our net restructuring liability was recorded within other current liabilities and $66 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 Simplify to Grow 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 $315 million in 2018 , $257 million in 2017 and $372 million in 2016 . We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs in Operating Income: During 2018 , 2017 and 2016 , and since inception of the Simplify to Grow 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 Year Ended Restructuring Costs $ 63 $ 69 $ 132 $ 32 $ 20 $ 316 Implementation Costs 67 39 73 79 57 315 Total $ 130 $ 108 $ 205 $ 111 $ 77 $ 631 For the Year Ended Restructuring Costs $ 93 $ 140 $ 195 $ 84 $ 23 $ 535 Implementation Costs 43 43 68 58 45 257 Total $ 136 $ 183 $ 263 $ 142 $ 68 $ 792 For the Year Ended Restructuring Costs $ 111 $ 96 $ 310 $ 173 $ 24 $ 714 Implementation Costs 54 48 88 121 61 372 Total $ 165 $ 144 $ 398 $ 294 $ 85 $ 1,086 Total Project (3) Restructuring Costs $ 493 $ 517 $ 971 $ 453 $ 116 $ 2,550 Implementation Costs 219 168 345 332 278 1,342 Total $ 712 $ 685 $ 1,316 $ 785 $ 394 $ 3,892 (1) During 2016-2018, 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 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 December 31, 2018 |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 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 December 31, 2018 2017 Amount Outstanding Weighted- Average Rate Amount Outstanding Weighted- Average Rate (in millions) (in millions) Commercial paper $ 3,054 2.9 % $ 3,410 1.7 % Bank loans 138 10.5 % 107 11.5 % Total short-term borrowings $ 3,192 $ 3,517 As of December 31, 2018 , commercial paper issued and outstanding had between 2 and 109 days remaining to maturity. Commercial paper borrowings decreased since the 2017 year-end primarily as a result of higher operating cash flows and long-term debt issuances net of repayments, partially offset by increased commercial paper borrowings for share repurchases and shareholder dividends. Bank loans include borrowings on primarily uncommitted credit lines maintained by some of our international subsidiaries to meet short-term working capital needs. Collectively, these credit lines amounted to $1.7 billion at December 31, 2018 and $2.0 billion at December 31, 2017 . Borrowings on these lines were $138 million at December 31, 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 December 31, 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 December 31, 2018 , we complied with this covenant as our shareholders’ equity, as defined by the covenant, was $36.3 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 December 31, 2018 , no amounts were drawn on the facility. Long-Term Debt: Our long-term debt consisted of (interest rates are as of December 31, 2018 ): As of December 31, 2018 2017 (in millions) U.S. dollar notes, 1.625% to 7.000% (weighted-average effective rate 3.412%), due through 2040 $ 9,492 $ 8,327 Euro notes, 1.000% to 2.375% (weighted-average effective rate 1.934%), due through 2035 3,492 3,653 Pound sterling notes, 3.875% to 4.500% (weighted-average effective rate 4.151%), due through 2045 333 456 Swiss franc notes, 0.050% to 1.125% (weighted-average effective rate 0.703%), due through 2025 1,424 1,694 Canadian dollar notes, 3.250% (effective rate 3.320%), due through 2025 437 — Capital leases and other obligations 2 5 Total 15,180 14,135 Less current portion of long-term debt (2,648 ) (1,163 ) Long-term debt $ 12,532 $ 12,972 Deferred debt issuance costs of $32 million as of December 31, 2018 and $33 million as of December 31, 2017 are netted against the related debt in the table above. Deferred financing costs related to our revolving credit facility are classified in long-term other assets and were immaterial for all periods presented. As of December 31, 2018 , aggregate maturities of our debt and capital leases based on stated contractual maturities, excluding unamortized non-cash bond premiums, discounts, bank fees and mark-to-market adjustments of $(70) million , were (in millions): 2019 2020 2021 2022 2023 Thereafter Total $2,648 $1,544 $3,334 $726 $1,822 $5,176 $15,250 On August 23, 2018, $280 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 July 18, 2018, £76 million (or $99 million ) of our 7.25% pound sterling notes matured. The notes and accrued interest to date were paid with the issuance of commercial paper and cash on hand. 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 consolidated statement of cash flows for the twelve months ended December 31, 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. On April 12, 2017, we discharged $488 million of our 6.500% U.S. dollar-denominated debt. We paid $504 million , representing principal as well as past and future interest accruals from February 2017 through the August 2017 maturity date. We recorded an $11 million loss on debt extinguishment within interest expense and a $5 million reduction in accrued interest. On March 30, 2017, fr. 175 million (approximately $175 million ) of our 0.000% Swiss franc-denominated notes matured. The notes and accrued interest to date were paid with net proceeds from the fr . 350 million Swiss franc-denominated notes issued on March 13, 2017. On March 13, 2017, we launched an offering of fr . 349 million of Swiss franc-denominated notes, or $349 million in U.S. dollars as of March 31, 2017, consisting of: • fr . 225 million (or $224 million ) of 0.050% fixed rate notes that mature on March 30, 2020 • fr . 125 million (or $125 million ) of 0.617% fixed rate notes that mature on September 30, 2024 On March 30, 2017, we received net proceeds of fr. 349 million (or $349 million ) that were used for general corporate purposes. On January 26, 2017, €750 million (approximately $801 million ) of our 1.125% euro-denominated 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 2.3% as of December 31, 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 December 31, 2018 and December 31, 2017 reflects current market interest rates and approximates the amounts we have recorded on our 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 December 31, 2018 , the aggregate fair value of our total debt was $18,650 million and its carrying value was $18,372 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 within our results of continuing operations consisted of: For the Years Ended December 31, 2018 2017 2016 (in millions) Interest expense, debt $ 462 $ 396 $ 515 Loss on debt extinguishment and related expenses 140 11 427 (Gain)/loss related to interest rate swaps (10 ) — 97 Other (income)/expense, net (72 ) (25 ) 76 Interest and other expense, net $ 520 $ 382 $ 1,115 See Note 9, Financial Instruments , for information on the gain/loss related to U.S. dollar interest rate swaps no longer designated as accounting cash flow hedges during 2018 and 2016 and for information on the $120 million of other income recorded in 2018 relating to our new net investment hedges and amounts excluded from hedge effectiveness. See Note 13, Commitments and Contingencies , for information on the $59 million |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets as follows: As of December 31, 2018 2017 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 17 $ 355 $ 15 $ 509 Net investment hedge derivative contracts (1) 337 28 — — $ 354 $ 383 $ 15 $ 509 Derivatives not designated as accounting hedges: Currency exchange contracts $ 72 $ 37 $ 65 $ 76 Commodity contracts 191 210 84 229 Interest rate contracts — — 15 11 $ 263 $ 247 $ 164 $ 316 Total fair value $ 617 $ 630 $ 179 $ 825 (1) Net investment hedge contracts consist of cross-currency interest rate swaps and forward contracts. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote. Derivatives designated as accounting hedges have included cash flow, fair value and net investment hedge derivative contracts. Our economic hedges are derivatives not designated as accounting hedges. We record derivative assets and liabilities on a gross basis on our 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 December 31, 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 $ 35 $ — $ 35 $ — Commodity contracts (19 ) (1 ) (18 ) — Interest rate contracts (338 ) — (338 ) — Net investment hedge contracts 309 — 309 — Total derivatives $ (13 ) $ (1 ) $ (12 ) $ — As of December 31, 2017 Total Quoted Prices in Significant Significant (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. 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 derivative instruments were: Notional Amount As of December 31, 2018 2017 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,239 $ 7,089 Forecasted transactions 2,396 2,213 Commodity contracts 393 1,204 Interest rate contracts 8,679 6,532 Net investment hedges: Net investment hedge derivative contracts 6,678 — Non-U.S. dollar debt designated as net investment hedges Euro notes 3,514 3,679 British pound sterling notes 336 459 Swiss franc notes 1,424 1,694 Canadian dollar notes 440 — Cash Flow Hedges: Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included: For the Years Ended December 31, 2018 2017 2016 (in millions) Accumulated (loss)/gain at beginning of period $ (113 ) $ (121 ) $ (45 ) Transfer of realized (gains)/losses in fair value to earnings (9 ) 27 53 Unrealized gain/(loss) in fair value (45 ) (19 ) (129 ) Accumulated (loss)/gain at end of period $ (167 ) $ (113 ) $ (121 ) After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were: For the Years Ended December 31, 2018 2017 2016 (in millions) Currency exchange contracts – forecasted transactions $ — $ (3 ) $ (1 ) Commodity contracts — (24 ) (4 ) Interest rate contracts 9 — (48 ) Total $ 9 $ (27 ) $ (53 ) After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Years Ended December 31, 2018 2017 2016 (in millions) Currency exchange contracts – forecasted transactions $ — $ (38 ) $ 8 Commodity contracts — 7 (34 ) Interest rate contracts (45 ) 12 (103 ) Total $ (45 ) $ (19 ) $ (129 ) Cash flow hedge ineffectiveness was not material for all periods presented. We recognized a gain of $10 million in 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 also recorded pre-tax losses of $97 million within interest and other expense, net in the first quarter of 2016 related to amounts excluded from effectiveness testing. These amounts relate to interest rate swaps no longer designated as cash flow hedges due to changes in financing plans. Due to lower overall costs and our decision to hedge a greater portion of our net investments in operations that use currencies other than the U.S. dollar as their functional currencies, we changed our plans to issue U.S. dollar-denominated debt and instead issued euro and Swiss franc-denominated notes in 2016. Amounts excluded from effectiveness testing were not material for all other periods presented. 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 unrealized losses of $106 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. Cash Flow Hedge Coverage: As of December 31, 2018 , our longest dated cash flow hedges are interest rate swaps that hedge forecasted interest rate payments over the next 4 years and 10 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 Years Ended December 31, 2018 2017 2016 (in millions) Borrowings $ 1 $ 4 $ 6 Derivatives (1 ) (4 ) (6 ) Total $ — $ — $ — The carrying amount of our hedged fixed interest rate debt at December 31, 2017 was $801 million and was recorded in the current portion of long-term debt until this debt matured during the third quarter of 2018. As of December 31, 2018 2017 (in millions) Notional value of borrowings (and related derivatives) $ — $ (801 ) Cumulative fair value hedging adjustments — — Carrying amount of borrowings $ — $ (801 ) Fair value hedge ineffectiveness and amounts excluded from effectiveness testing were not material for all periods presented. Hedges of Net Investments in International Operations: Net investment hedge derivative contracts: 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 December 31, 2018 was $6.7 billion . The after-tax unrealized gain/(loss) on these net investment hedge contracts was recorded in the cumulative translation adjustment section of other comprehensive income and was $207 million in 2018 . In addition, the after-tax realized gain on net investment hedge contracts settled in 2018 was recorded in the cumulative translation adjustment section of other comprehensive income and was $191 million . There were no after-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings in 2018 . During the fourth quarter of 2018, we replaced six cross-currency swaps with new derivative contracts and received $127 million in cash. Also, during 2018, eight currency forward contracts matured and we received $152 million in cash upon the settlement. The cash received was recorded within other investing activities on the consolidated statement of cash flows. 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 $120 million in 2018 and were recorded as income in interest and other expense, net. The cash flows from these contracts are reported as other investing activities in the consolidated statement of cash flows. Non-U.S. dollar debt designated as net investment hedges: 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 Years Ended December 31, 2018 2017 2016 (in millions) Euro notes $ 126 $ (323 ) $ 73 British pound sterling notes 19 (26 ) 148 Swiss franc notes 7 (49 ) 12 Canadian notes 17 — — Economic Hedges: Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Years Ended December 31, Recognized in Earnings 2018 2017 2016 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 98 $ 13 $ 21 Interest and other expense, net Forecasted transactions 103 (37 ) (76 ) Cost of sales Forecasted transactions (4 ) (2 ) 11 Interest and other expense, net Forecasted transactions (3 ) 3 7 Selling, general and administrative expenses Commodity contracts 40 (218 ) (101 ) Cost of sales Total $ 234 $ (241 ) $ (138 ) |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 10. Benefit Plans Pension Plans Obligations and Funded Status: The projected benefit obligations, plan assets and funded status of our pension plans were: U.S. Plans Non-U.S. Plans 2018 2017 2018 2017 (in millions) Projected benefit obligation at January 1 $ 1,762 $ 1,614 $ 10,852 $ 9,814 Service cost 43 46 146 156 Interest cost 61 62 199 199 Benefits paid (29 ) (32 ) (462 ) (471 ) Settlements paid (118 ) (111 ) (2 ) — Actuarial (gains)/losses (208 ) 179 (640 ) 180 Divestiture — — — (14 ) Currency — — (528 ) 976 Other — 4 13 12 Projected benefit obligation at December 31 1,511 1,762 9,578 10,852 Fair value of plan assets at January 1 1,717 1,620 9,327 7,926 Actual return on plan assets (99 ) 217 (243 ) 592 Contributions 39 23 323 482 Benefits paid (29 ) (32 ) (462 ) (471 ) Settlements paid (118 ) (111 ) (2 ) — Divestiture — — — — Currency — — (478 ) 798 Fair value of plan assets at December 31 1,510 1,717 8,465 9,327 Net pension (liabilities)/assets at December 31 $ (1 ) $ (45 ) $ (1,113 ) $ (1,525 ) The accumulated benefit obligation, which represents benefits earned to the measurement date, was $1,488 million at December 31, 2018 and $1,715 million at December 31, 2017 for the U.S. pension plans. The accumulated benefit obligation for the non-U.S. pension plans was $9,374 million at December 31, 2018 and $10,610 million at December 31, 2017 . Salaried and non-union hourly employees hired after January 1, 2009 in the U.S. and after January 1, 2011 in Canada (or earlier for certain legacy Cadbury employees) are no longer eligible to participate in the defined benefit pension plans. These employees are given an enhanced Company contribution to our employee defined contribution plans. For those salaried and non-union hourly employees who are currently participating in the defined benefit pension plans in the U.S. and Canada, benefit accruals will cease December 31, 2019 . The combined U.S. and non-U.S. pension plans resulted in a net pension liability of $1,114 million at December 31, 2018 and $1,570 million at December 31, 2017 . We recognized these amounts in our consolidated balance sheets as follows: As of December 31, 2018 2017 (in millions) Prepaid pension assets $ 132 $ 158 Other current liabilities (25 ) (59 ) Accrued pension costs (1,221 ) (1,669 ) $ (1,114 ) $ (1,570 ) Certain of our U.S. and non-U.S. plans are underfunded with an accumulated benefit obligations in excess of plan assets. For these plans, the projected benefit obligations, accumulated benefit obligations and the fair value of plan assets were: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2018 2017 2018 2017 (in millions) Projected benefit obligation $ 52 $ 94 $ 3,343 $ 9,345 Accumulated benefit obligation 50 90 3,194 9,138 Fair value of plan assets 2 2 2,169 7,709 We used the following weighted-average assumptions to determine our benefit obligations under the pension plans: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2018 2017 2018 2017 (in millions) Discount rate 4.40 % 3.68 % 2.45 % 2.20 % Expected rate of return on plan assets 5.75 % 5.50 % 4.80 % 4.90 % Rate of compensation increase 4.00 % 4.00 % 3.31 % 3.31 % Year-end discount rates for our U.S., Canadian, Eurozone and U.K. plans were developed from a model portfolio of high quality, fixed-income debt instruments with durations that match the expected future cash flows of the benefit obligations. Year-end discount rates for our remaining non-U.S. plans were developed from local bond indices that match local benefit obligations as closely as possible. Changes in our discount rates were primarily the result of changes in bond yields year-over-year. We determine our expected rate of return on plan assets from the plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term returns by asset class. For the periods presented, we measure service and interest costs by applying the specific spot rates along a yield curve used to measure plan obligations to the plans’ liability cash flows. We believe this approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. Components of Net Periodic Pension Cost: Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2018 2017 2016 2018 2017 2016 (in millions) Service cost $ 43 $ 46 $ 57 $ 146 $ 156 $ 147 Interest cost 61 62 61 199 199 229 Expected return on plan assets (88 ) (101 ) (97 ) (448 ) (434 ) (418 ) Amortization: Net loss from experience differences 32 37 42 163 167 120 Prior service cost/(benefit) 2 2 2 (2 ) (3 ) (3 ) Settlement losses and other expenses (1) 35 35 30 5 6 6 Net periodic pension cost $ 85 $ 81 $ 95 $ 63 $ 91 $ 81 (1) Settlement losses include $5 million for the year ended December 31, 2018 , $11 million for the year ended December 31, 2017 and $15 million for the year ended December 31, 2016 of pension settlement losses for employees who elected lump- sum payments in connection with our Simplify to Grow Program. Retired employees who elected lump-sum payments resulted in net settlement losses of $31 million for our U.S. plans and $4 million for our non-U.S. plans in 2018 , $21 million for our U.S. plans and $6 million for our non-U.S. plans in 2017 and $15 million for our U.S. plans and $6 million for our non-U.S. plans in 2016 . See Note 7, Restructuring Program , for more information. For the U.S. plans, we determine the expected return on plan assets component of net periodic benefit cost using a calculated market return value that recognizes the cost over a four year period. For our non-U.S. plans, we utilize a similar approach with varying cost recognition periods for some plans, and with others, we determine the expected return on plan assets based on asset fair values as of the measurement date. As of December 31, 2018 , for the combined U.S. and non-U.S. pension plans, we expected to amortize from accumulated other comprehensive earnings/(losses) into net periodic pension cost during 2019 : • an estimated $168 million of net loss from experience differences; and • an estimated $6 million of prior service credit. We used the following weighted-average assumptions to determine our net periodic pension cost: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2018 2017 2016 2018 2017 2016 Discount rate 3.68 % 4.19 % 4.50 % 2.20 % 2.31 % 3.11 % Expected rate of return on plan assets 5.50 % 6.25 % 6.75 % 4.90 % 5.14 % 5.87 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 3.31 % 3.29 % 3.18 % Plan Assets: The fair value of pension plan assets was determined using the following fair value measurements: As of December 31, 2018 Asset Category Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) U.S. equity securities $ 2 $ 2 $ — $ — Non-U.S. equity securities 5 5 — — Pooled funds - equity securities 1,951 743 1,208 — Total equity securities 1,958 750 1,208 — Government bonds 3,156 62 3,094 — Pooled funds - fixed-income securities 573 429 144 — Corporate bonds and other fixed-income securities 2,050 87 931 1,032 Total fixed-income securities 5,779 578 4,169 1,032 Real estate 130 108 — 22 Private equity 2 — — 2 Cash 44 32 12 — Other 2 1 — 1 Total assets in the fair value hierarchy $ 7,915 $ 1,469 $ 5,389 $ 1,057 Investments measured at net asset value 1,993 Total investments at fair value $ 9,908 As of December 31, 2017 Asset Category Total Fair Quoted Prices Significant Significant (in millions) U.S. equity securities $ 2 $ 2 $ — $ — Non-U.S. equity securities 5 5 — — Pooled funds - equity securities 2,340 848 1,492 — Total equity securities 2,347 855 1,492 — Government bonds 3,237 34 3,203 — Pooled funds - fixed-income securities 602 449 153 — Corporate bonds and other fixed-income securities 2,102 133 1,179 790 Total fixed-income securities 5,941 616 4,535 790 Real estate 156 120 13 23 Private equity 2 — — 2 Cash 86 66 20 — Other 2 1 — 1 Total assets in the fair value hierarchy $ 8,534 $ 1,658 $ 6,060 $ 816 Investments measured at net asset value 2,439 Total investments at fair value $ 10,973 We excluded plan assets of $67 million at December 31, 2018 and $71 million at December 31, 2017 from the above tables related to certain insurance contracts as they are reported at contract value, in accordance with authoritative guidance. Fair value measurements: • Level 1 – includes primarily U.S and non-U.S. equity securities and government bonds valued using quoted prices in active markets. • Level 2 – includes primarily pooled funds, including assets in real estate pooled funds, valued using net asset values of participation units held in common collective trusts, as reported by the managers of the trusts and as supported by the unit prices of actual purchase and sale transactions. Level 2 plan assets also include corporate bonds and other fixed-income securities, valued using independent observable market inputs, such as matrix pricing, yield curves and indices. • Level 3 – includes investments valued using unobservable inputs that reflect the plans’ assumptions that market participants would use in pricing the assets, based on the best information available. • Fair value estimates for pooled funds are calculated by the investment advisor when reliable quotations or pricing services are not readily available for certain underlying securities. The estimated value is based on either cost or last sale price for most of the securities valued in this fashion. • Fair value estimates for private equity investments are calculated by the general partners using the market approach to estimate the fair value of private investments. The market approach utilizes prices and other relevant information generated by market transactions, type of security, degree of liquidity, restrictions on the disposition, latest round of financing data, company financial statements, relevant valuation multiples and discounted cash flow analyses. • Fair value estimates for private debt placements are calculated using standardized valuation methods, including but not limited to income-based techniques such as discounted cash flow projections or market-based techniques utilizing public and private transaction multiples as comparables. • Fair value estimates for real estate investments are calculated by investment managers using the present value of future cash flows expected to be received from the investments, based on valuation methodologies such as appraisals, local market conditions, and current and projected operating performance. • Fair value estimates for certain fixed-income securities such as insurance contracts are calculated based on the future stream of benefit payments discounted using prevailing interest rates based on the valuation date. • Net asset value – primarily includes equity funds, fixed income funds, real estate funds, hedge funds and private equity investments for which net asset values are normally used. Changes in our Level 3 plan assets, which are recorded in other comprehensive earnings/(losses), included: Asset Category January 1, Net Realized and Unrealized Gains/ (Losses) Net Purchases, Issuances and Settlements Net Transfers Into/(Out of) Level 3 Currency Impact December 31, (in millions) Non-U.S. equity $ — $ — $ — $ — $ — $ — Pooled funds- fixed-income securities — — — — — — Corporate bond and other fixed-income securities 790 62 236 — (56 ) 1,032 Real estate 23 1 (1 ) — (1 ) 22 Private equity and other 3 — — — — 3 Total Level 3 investments $ 816 $ 63 $ 235 $ — $ (57 ) $ 1,057 Asset Category January 1, Net Realized and Unrealized Gains/ (Losses) Net Purchases, Issuances and Settlements Net Transfers Into/(Out of) Level 3 Currency Impact December 31, (in millions) Non-U.S. equity $ 3 $ — $ — $ (3 ) $ — $ — Pooled funds- fixed-income securities 35 — (16 ) (21 ) 2 — Corporate bond and other fixed-income securities 538 10 182 — 60 790 Real estate 22 1 — — — 23 Private equity and other 4 — — (1 ) — 3 Total Level 3 investments $ 602 $ 11 $ 166 $ (25 ) $ 62 $ 816 The increase in Level 3 pension plan investments during 2018 and 2017 was primarily due to additional purchases of corporate bond and other fixed income securities, which includes private debt placements. The percentage of fair value of pension plan assets was: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, Asset Category 2018 2017 2018 2017 Equity securities 15 % 15 % 26 % 28 % Fixed-income securities 85 % 85 % 65 % 60 % Real estate — — 6 % 6 % Hedge funds — — 2 % 4 % Private equity — — — % 1 % Cash — — 1 % 1 % Total 100 % 100 % 100 % 100 % For our U.S. plans, our investment strategy is to reduce the risk of underfunded plans in part through appropriate asset allocation within our plan assets. We attempt to maintain our target asset allocation by rebalancing between asset classes as we make contributions and monthly benefit payments. The strategy involves using indexed U.S. equity and international equity securities and actively managed U.S. investment grade fixed-income securities (which constitute 95% or more of fixed-income securities) with smaller allocations to high yield fixed-income securities. For our non-U.S. plans, the investment strategy is subject to local regulations and the asset/liability profiles of the plans in each individual country. In aggregate, the asset allocation targets of our non-U.S. plans are broadly characterized as a mix of approximately 31% equity securities (including investments in real estate), approximately 67% fixed-income securities and approximately 2% for other types of securities. Our investment strategy for our largest non-U.S. plan, which comprises 63% of our non-U.S. pension assets, is designed to balance risk and return by diversifying across a wide range of return-seeking and liability matching assets, invested in a range of both active and passive mandates. We target an allocation of approximately 23% in equity securities, 20% credit, and 57% liability matching assets. The strategy uses indexed global developed equities, actively managed global investment grade and alternative credit, real estate and other liability matching assets including a buy-in annuity policy. Employer Contributions: In 2018 , we contributed $39 million to our U.S. pension plans and $310 million to our non-U.S. pension plans. In addition, employees contributed $13 million to our non-U.S. plans. 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. In 2019 , we estimate that our pension contributions will be $5 million to our U.S. plans and $232 million to our non-U.S. plans based on current tax laws. 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. Future Benefit Payments: The estimated future benefit payments from our pension plans at December 31, 2018 were (in millions): 2019 2020 2021 2022 2023 2024-2028 U.S. Plans $ 107 $ 91 $ 91 $ 93 $ 92 $ 483 Non-U.S. Plans 357 362 378 382 395 2,098 Multiemployer Pension Plans: In accordance with obligations we have under collective bargaining agreements, we made contributions to multiemployer pension plans of $17 million in 2018 , $26 million in 2017 and $25 million in 2016 . In 2017 and 2016, the only individually significant multiemployer plan we contributed to 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. All of those collective bargaining agreements expired in 2016 and we continued to contribute to the Fund through 2018. Our contributions to the Fund were $12 million in 2018 , $22 million in 2017 and $21 million in 2016 , while our contributions to other multiemployer pension plans that were not individually significant were $5 million in 2018 , $4 million in 2017 and $4 million in 2016 . Our contributions are based on our contribution rates under our collective bargaining agreements, the number of our eligible employees and Fund surcharges. Pension Fund EIN / Pension Plan Number Pension Protection Act Zone Status FIP / RP Status Pending / Implemented Surcharge Imposed Expiration Date of Collective-Bargaining Agreements Bakery and Confectionery Union and Industry International Pension Fund 526118572 Red Implemented Yes 2/29/2016 Effective January 1, 2012, the Fund’s zone status changed to “Red”. As a result of this certification, beginning in July 2012, we were charged a 5% surcharge on our contribution rates. This surcharge increased to 10% for contributions paid from February 2013 forward. As of August 28, 2016, the 10% surcharge was no longer applicable and we were required to pay higher contributions under the Fund’s rehabilitation plan Default schedule. We continued to contribute to the Fund until December 2018. In the fourth quarter of 2018, we executed a complete withdrawal from the Fund. We estimated a withdrawal liability of $573 million , which represents our best estimate of the withdrawal liability absent an assessment from the Fund. We anticipate receiving an assessment in 2019, 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 over a period of 20 years from the date of the assessment. During 2018, within our North America segment, we recorded a discounted liability and related charge of $423 million or $316 million net of tax. We determined the net present value of the liability using a risk-free interest rate. We recorded the pre-tax non-cash charges in selling, general and administrative expense (and in other non-cash items, net in the consolidated statement of cash flows) and the liability in long-term other liabilities. During 2018, we also recorded $6 million of accreted interest related to the long-term liability within interest and other expense, net. Other Costs: We sponsor and contribute to employee defined contribution plans. These plans cover eligible salaried, non-union and union employees. Our contributions and costs are determined by the matching of employee contributions, as defined by the plans. Amounts charged to expense in continuing operations for defined contribution plans totaled $57 million in 2018 , $43 million in 2017 and $44 million in 2016 . Postretirement Benefit Plans Obligations: Our postretirement health care plans are not funded. The changes in and the amount of the accrued benefit obligation were: As of December 31, 2018 2017 (in millions) Accrued benefit obligation at January 1 $ 435 $ 394 Service cost 6 7 Interest cost 15 15 Benefits paid (19 ) (15 ) Currency (11 ) 8 Assumption changes (39 ) 30 Actuarial losses/(gains) (21 ) (4 ) Accrued benefit obligation at December 31 $ 366 $ 435 The current portion of our accrued postretirement benefit obligation of $15 million at December 31, 2018 and $16 million at December 31, 2017 was included in other current liabilities. We used the following weighted-average assumptions to determine our postretirement benefit obligations: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2018 2017 2018 2017 Discount rate 4.37 % 3.66 % 4.40 % 4.24 % Health care cost trend rate assumed for next year 6.25 % 6.25 % 5.44 % 5.56 % Ultimate trend rate 5.00 % 4.81 % 5.44 % 5.56 % Year that the rate reaches the ultimate trend rate 2024 2024 2018 2018 Year-end discount rates for our U.S., Canadian and U.K. plans were developed from a model portfolio of high quality, fixed-income debt instruments with durations that match the expected future cash flows of the benefit obligations. Year-end discount rates for our remaining non-U.S. plans were developed from local bond indices that match local benefit obligations as closely as possible. Changes in our discount rates were primarily the result of changes in bond yields year-over-year. Our expected health care cost trend rate is based on historical costs. For the periods presented, we measure service and interest costs for other postretirement benefits by applying the specific spot rates along a yield curve used to measure plan obligations to the plans’ liability cash flows. We believe this approach provides a good measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. Assumed health care cost trend rates have a significant impact on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: As of December 31, 2018 One-Percentage-Point Increase Decrease (in millions) Effect on postretirement benefit obligation $ 37 $ (30 ) Effect on annual service and interest cost 2 (2 ) Components of Net Periodic Postretirement Health Care Costs: Net periodic postretirement health care costs consisted of the following: For the Years Ended December 31, 2018 2017 2016 (in millions) Service cost $ 6 $ 7 $ 12 Interest cost 14 15 20 Amortization: Net loss from experience differences 15 14 10 Prior service credit (1) (39 ) (40 ) (20 ) Net periodic postretirement health care costs $ (4 ) $ (4 ) $ 22 (1) In the fourth quarter of 2016, the prior service credit included a one-time $9 million curtailment gain related to a change in the eligibility requirement resulting in ongoing amortization of $10 million . We continued to amortize the prior service credit and recorded $39 million in 2018 and $40 million in 2017 . As of December 31, 2018 , we expected to amortize from accumulated other comprehensive earnings/(losses) into pre-tax net periodic postretirement health care costs during 2019 : • an estimated $7 million of net loss from experience differences, and • an estimated $39 million of prior service credit. We used the following weighted-average assumptions to determine our net periodic postretirement health care cost: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2018 2017 2016 2018 2017 2016 Discount rate 3.66% 4.14% 4.60% 4.24% 4.55% 4.77% Health care cost trend rate 6.25% 6.50% 6.50% 5.56% 5.50% 5.50% Future Benefit Payments: Our estimated future benefit payments for our postretirement health care plans at December 31, 2018 were (in millions): 2019 2020 2021 2022 2023 2024-2028 U.S. Plans $ 11 $ 12 $ 13 $ 14 $ 15 $ 78 Non-U.S. Plans 5 5 5 5 5 30 Other Costs: We made contributions to multiemployer medical plans totaling $19 million in 2018 , $18 million in 2017 and $19 million in 2016 . These plans provide medical benefits to active employees and retirees under certain collective bargaining agreements. Postemployment Benefit Plans Obligations: Our postemployment plans are primarily not funded. The changes in and the amount of the accrued benefit obligation at December 31, 2018 and 2017 were: As of December 31, 2018 2017 (in millions) Accrued benefit obligation at January 1 $ 76 $ 71 Service cost 6 5 Interest cost 4 4 Benefits paid (7 ) (6 ) Assumption changes (1 ) — Actuarial losses/(gains) (4 ) 2 Accrued benefit obligation at December 31 $ 74 $ 76 The accrued benefit obligation was determined using a weighted-average discount rate of 6.7% in 2018 and 6.5% in 2017 , an assumed weighted-average ultimate annual turnover rate of 0.3% in 2018 and 2017 , assumed compensation cost increases of 4.0% in 2018 and 2017 and assumed benefits as defined in the respective plans. Postemployment costs arising from actions that offer employees benefits in excess of those specified in the respective plans are charged to expense when incurred. Components of Net Periodic Postemployment Costs: Net periodic postemployment costs consisted of the following: For the Years Ended December 31, 2018 2017 2016 (in millions) Service cost $ 6 $ 5 $ 7 Interest cost 4 4 6 Amortization of net gains (3 ) (3 ) (1 ) Net periodic postemployment costs $ 7 $ 6 $ 12 As of December 31, 2018 , the estimated net gain for the postemployment benefit plans that we expect to amortize from accumulated other comprehensive earnings/(losses) into net periodic postemployment costs during 2019 is approximately $3 million |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Note 11. Stock Plans Under our Amended and Restated 2005 Performance Incentive Plan (the “Plan”), we are authorized through May 21, 2024 to issue a maximum of 243.7 million shares of our Common Stock to employees and non-employee directors. As of December 31, 2018 , there were 61.1 million shares available to be granted under the Plan. Stock Options: Stock options (including stock appreciation rights) are granted at an exercise price equal to the market value of the underlying stock on the grant date, generally become exercisable in three annual installments beginning on the first anniversary of the grant date and have a maximum term of ten years. We account for our employee stock options under the fair value method of accounting using a Black-Scholes methodology or a Lattice Model to measure stock option expense at the date of grant. The fair value of the stock options at the date of grant is amortized to expense over the vesting period. We recorded compensation expense related to stock options held by our employees of $43 million in 2018 , $50 million in 2017 and $57 million in 2016 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $7 million in 2018 , $12 million in 2017 and $15 million in 2016 . The unamortized compensation expense related to our employee stock options was $42 million at December 31, 2018 and is expected to be recognized over a weighted-average period of 1.3 years . Our weighted-average Black-Scholes and Lattice Model fair value assumptions were: Risk-Free Interest Rate Expected Life Expected Volatility Expected Dividend Yield Fair Value at Grant Date 2018 2.68 % 5 years 20.96 % 2.02 % $ 8.30 2017 2.04 % 6 years 22.75 % 1.74 % $ 8.57 2016 1.40 % 6 years 23.11 % 1.61 % $ 7.86 The risk-free interest rate represents the constant maturity U.S. government treasuries rate with a remaining term equal to the expected life of the options. The expected life is the period over which our employees are expected to hold their options. Volatility reflects historical movements in our stock price for a period commensurate with the expected life of the options. The dividend yield reflects the dividend yield in place at the time of the historical grants. 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, 2016 57,034,108 $ 26.12 $ 1,068 million Annual grant to eligible employees 7,517,290 39.70 Additional options issued 115,800 42.26 Total options granted 7,633,090 39.74 Options exercised (1) (8,883,101 ) 24.09 $ 174 million Options cancelled (2,182,485 ) 35.23 Balance at December 31, 2016 53,601,612 28.02 $ 874 million Annual grant to eligible employees 6,012,140 43.20 Additional options issued 162,880 42.54 Total options granted 6,175,020 43.18 Options exercised (1) (9,431,009 ) 26.17 $ 170 million Options cancelled (1,910,968 ) 38.10 Balance at December 31, 2017 48,434,655 29.92 $ 626 million Annual grant to eligible employees 5,666,530 43.51 Additional options issued 168,306 31.40 Total options granted 5,834,836 43.16 Options exercised (1) (9,333,271 ) 25.16 $ 170 million Options cancelled (1,117,390 ) 42.93 Balance at December 31, 2018 43,818,830 32.36 5 years $ 371 million Exercisable at December 31, 2018 33,902,437 29.35 4 years $ 369 million (1) Cash received from options exercised was $231 million in 2018 , $257 million in 2017 and $221 million in 2016 . The actual tax benefit realized for the tax deductions from the option exercises totaled $21 million in 2018 , $31 million in 2017 and $31 million in 2016 . Deferred Stock Units, Performance Share Units and Restricted Stock: Historically we have made grants of deferred stock units, performance share units and restricted stock. Beginning in 2016, we only grant deferred stock units and performance share units and no longer grant restricted stock. We may grant shares of deferred stock units to eligible employees, giving them, in most instances, all of the rights of shareholders, except that they may not sell, assign, pledge or otherwise encumber the shares and our deferred stock units do not have voting rights until vested. Shares of deferred stock units are subject to forfeiture if certain employment conditions are not met. Deferred stock units generally vest on the third anniversary of the grant date. Performance share units granted under our 2005 Plan vest based on varying performance, market and service conditions. The unvested performance share units have no voting rights and do not pay dividends. Dividend equivalents accumulated over the vesting period are paid only after the performance share units vest. The fair value of the deferred stock units, performance share units and restricted stock at the date of grant is amortized to earnings over the vesting period. The fair value of our deferred stock units and restricted stock is measured at the market price of our Common Stock on the grant date. Performance share unit awards generally have targets tied to both performance and market-based conditions. For market condition components, market volatility and other factors are taken into consideration in determining the grant date fair value and the related compensation expense is recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. For performance condition components, we estimate the probability that the performance conditions will be achieved each quarter and adjust compensation expenses accordingly. 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 market price of our Common Stock on the grant date for performance-based components. The number of performance share units that ultimately vest ranges from 0 - 200 percent of the number granted, based on the achievement of the performance and market-based components. We recorded compensation expense related to deferred stock units, performance share units and restricted stock of $85 million in 2018 , $87 million in 2017 and $83 million in 2016 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $12 million in 2018 , $23 million in 2017 and $22 million in 2016 . The unamortized compensation expense related to our deferred stock units, performance share units and restricted stock was $113 million at December 31, 2018 and is expected to be recognized over a weighted-average period of 1.5 years . Our performance share unit, deferred stock unit and 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, 2016 9,418,216 $ 33.71 Annual grant to eligible employees: Feb. 22, 2016 Performance share units 1,406,500 34.35 Deferred stock units 1,040,790 39.70 Additional shares granted (1) 864,851 Various 32.90 Total shares granted 3,312,141 35.65 $ 118 million Vested (2) (3,992,902 ) 28.15 $ 112 million Forfeited (2) (1,143,828 ) 37.58 Balance at December 31, 2016 7,593,627 36.90 Annual grant to eligible employees: Feb. 16, 2017 Performance share units 1,087,010 43.14 Deferred stock units 845,550 43.20 Additional shares granted (1) 1,537,763 Various 42.22 Total shares granted 3,470,323 42.75 $ 148 million Vested (2) (2,622,807 ) 35.78 $ 94 million Forfeited (2) (771,438 ) 38.69 Balance at December 31, 2017 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) 446,752 Various 41.78 Total shares granted 2,283,832 46.72 $ 107 million Vested (2) (2,511,992 ) 38.91 $ 98 million Forfeited (2) (882,535 ) 42.00 Balance at December 31, 2018 6,559,010 42.19 (1) Includes performance share units and deferred stock units. (2) Includes performance share units, deferred stock units and restricted stock. The actual tax benefit realized for the tax deductions from the shares vested totaled $3 million in 2018 , $7 million in 2017 and $18 million in 2016 . (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. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2018 | |
Common Class A | |
Class of Stock [Line Items] | |
Capital Stock | Note 12. Capital Stock Our amended and restated articles of incorporation authorize 5.0 billion shares of Class A common stock (“Common Stock”) and 500 million shares of preferred stock. There were no preferred shares issued and outstanding at December 31, 2018 , 2017 and 2016 . Shares of Common Stock issued, in treasury and outstanding were: Shares Issued Treasury Shares Shares Outstanding Balance at January 1, 2016 1,996,537,778 (416,504,624 ) 1,580,033,154 Shares repurchased — (61,972,713 ) (61,972,713 ) Exercise of stock options and issuance of other stock awards — 10,305,100 10,305,100 Balance at December 31, 2016 1,996,537,778 (468,172,237 ) 1,528,365,541 Shares repurchased — (50,598,902 ) (50,598,902 ) Exercise of stock options and issuance of other stock awards — 10,369,445 10,369,445 Balance at December 31, 2017 1,996,537,778 (508,401,694 ) 1,488,136,084 Shares repurchased — (47,258,884 ) (47,258,884 ) Exercise of stock options and issuance of other stock awards — 10,122,655 10,122,655 Balance at December 31, 2018 1,996,537,778 (545,537,923 ) 1,450,999,855 Stock plan awards to employees and non-employee directors are issued from treasury shares. At December 31, 2018 , 111 million shares of Common Stock held in treasury were reserved for stock options and other stock awards. 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 approximately $13.0 billion of Common Stock pursuant to this authorization. During 2018 , we repurchased approximately 47.3 million shares of Common Stock at an average cost of $42.18 per share, or an aggregate cost of approximately $2.0 billion , all of which was paid during the period. All share repurchases were funded through available cash and commercial paper issuances. As of December 31, 2018 , we have approximately $4.7 billion |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. 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 ( $54 million as of December 31, 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 ( $84 million as of December 31, 2018 ) plus accrued interest. 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 ( $70 million as of December 31, 2018 ) of allegedly unpaid excise taxes subject to penalties up to an equivalent amount plus accrued interest. Interest will continue to accrue until the matters are resolved. 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. As part of a continuing appeals process, we may be required to deposit an amount up to the equivalent of the total demand for unpaid excise taxes under the five show cause notices, which will be repaid if the proceedings conclude in our favor. We do not expect to be required to make any such deposit before 2020. 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. We are awaiting the outcome of our motion for summary judgment. If our motion is denied, the case could proceed to trial in 2019. 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. We are contesting the plaintiffs’ request for class certification. 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. Although the CFTC action and the class action complaints involve the same alleged conduct, a resolution or decision with respect to one of the matters may not be dispositive as to the outcome of the other matter. On August 21, 2018, the Virginia Department of Environmental Quality (“VDEQ”) issued a Notice of Violation (“NOV”) to Mondelēz Global. In the NOV, the VDEQ alleges that in our Richmond bakery, one operating line did not have the proper minimum temperature on its pollution control equipment and that the bakery failed to provide certain observation and training records. The VDEQ indicated that the alleged violations may lead to a fine and/or injunctive relief. We are working with the VDEQ to reach a resolution of this matter, and we do not expect this matter to have a material effect on our financial results. 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 December 31, 2018 , we had no material third-party guarantees recorded on our 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. During the first quarter of 2017, the Brazilian Supreme Court (the “Court”) ruled against the Brazilian tax authorities in a leading case related to the computation of certain indirect taxes. The Court ruled that the indirect tax base should not include a value-added tax known as “ICMS”. By removing the ICMS from the tax base, the Court effectively eliminated a “tax on a tax.” In lower courts, our Brazilian subsidiaries filed lawsuits to recover amounts paid and to discontinue subsequent payments related to the “tax on a tax.” Our Brazilian subsidiaries received injunctions against making payments for the “tax on a tax” in 2008 and since that time until December 2016, had accrued this portion of the tax each quarter in the event that the tax was reaffirmed by the Brazilian courts. On September 30, 2017, based on legal advice and the publication of the Court’s decision related to this case, we determined that the likelihood that the increased tax base would be reinstated and assessed against us was remote. Accordingly, we reversed our accrual of 667 million Brazilian reais, or $212 million as of September 30, 2017, of which $153 million was recorded within selling, general and administrative expenses and $59 million was recorded within interest and other expense, net. In connection with the Court's 2017 decision, the Brazilian tax authority filed a motion seeking clarification and adjustment of the terms of enforcement and that motion is still to be decided. We continue to monitor developments in this matter and currently do not expect a material future impact on our financial statements. During the fourth quarter of 2018, in one of our lower court cases, the Brazilian Federal Court of Appeals ruled in our favor against the Brazilian tax authority, allowing one of our Brazil subsidiaries to recover amounts previously paid. As a result, we recorded a net benefit in selling, general and administrative expenses of $26 million . 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. Leases: Rental expenses recorded in continuing operations were $260 million in 2018 , $284 million in 2017 and $317 million in 2016 . As of December 31, 2018 , minimum rental commitments under non-cancelable operating leases in effect at year-end were (in millions): 2019 2020 2021 2022 2023 Thereafter Total $ 208 $ 165 $ 114 $ 79 $ 57 $ 157 $ 780 |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Reclassifications from Accumulated Other Comprehensive Income | Note 14. 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 $169 million in 2018 , $174 million in 2017 and $250 million in 2016 . For the Years Ended December 31, 2018 2017 2016 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (7,740 ) $ (8,910 ) $ (8,006 ) Currency translation adjustments (698 ) 984 (843 ) Reclassification to net earnings related to: Equity method investment transactions 6 — 57 Tax (expense)/benefit (173 ) 214 (135 ) Other comprehensive earnings/(losses) (865 ) 1,198 (921 ) Less: (earnings)/loss attributable to noncontrolling interests 2 (28 ) 17 Balance at end of period (8,603 ) (7,740 ) (8,910 ) Pension and Other Benefit Plans: Balance at beginning of period $ (2,144 ) $ (2,087 ) $ (1,934 ) Net actuarial gain/(loss) arising during period 36 (71 ) (491 ) Tax (expense)/benefit on net actuarial gain/(loss) (16 ) 50 70 Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs 168 174 150 Settlement losses 40 38 36 Tax (expense)/benefit on reclassifications (1) (36 ) (65 ) (46 ) Currency impact 92 (183 ) 128 Other comprehensive earnings/(losses) 284 (57 ) (153 ) Balance at end of period (1,860 ) (2,144 ) (2,087 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (113 ) $ (121 ) $ (46 ) Net derivative gains/(losses) (58 ) (17 ) (151 ) Tax (expense)/benefit on net derivative gain/(loss) 6 9 20 Losses/(gains) reclassified into net earnings: Currency exchange contracts - forecasted transactions (2) — 4 3 Commodity contracts (2) — 29 9 Interest rate contracts (3) (11 ) — 83 Tax (expense)/benefit on reclassifications (1) 2 (6 ) (42 ) Currency impact 7 (11 ) 3 Other comprehensive earnings/(losses) (54 ) 8 (75 ) Balance at end of period (167 ) (113 ) (121 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (9,997 ) $ (11,118 ) $ (9,986 ) Total other comprehensive earnings/(losses) (635 ) 1,149 (1,149 ) Less: (earnings)/loss attributable to noncontrolling interests 2 (28 ) 17 Other comprehensive earnings/(losses) attributable to Mondelēz International (633 ) 1,121 (1,132 ) Balance at end of period $ (10,630 ) $ (9,997 ) $ (11,118 ) (1) Taxes reclassified to earnings are recorded within the provision for income taxes. (2) These reclassified gains or losses are recorded within cost of sales. (3) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Income Taxes On December 22, 2017, new U.S. tax reform legislation was enacted that included a broad range of complex provisions impacting the taxation of businesses. Certain impacts of the new legislation would have generally required accounting to be completed and incorporated into our 2017 year-end financial statements, 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. We finalized our accounting for the new provisions during the fourth quarter of 2018. The impact on our 2018 results from finalizing the accounting for the new provisions was a discrete net tax expense of $19 million . The $19 million expense in 2018 is primarily comprised of a $60 million expense related to finalizing the changes in our indefinite reinvestment assertion, partially offset by a $38 million decrease to the provisional transition tax recorded as of December 31, 2017. In general, the transition tax is a result of the deemed repatriation imposed by the new legislation that results in the taxation of our accumulated foreign earnings and profits (“E&P”) at a 15.5% rate on liquid assets (i.e. cash and other specified assets) and 8% on the remaining unremitted foreign E&P, both net of foreign tax credits. We finalized the accounting for this provision during the fourth quarter of 2018. During 2018 we recognized a $38 million decrease to the $1,317 million provisional transition tax recorded as December 31, 2017 for a total transition net tax expense and gross U.S. tax reform transition tax liability (before payments) of $1,279 million which will be paid in installments through 2026. During the fourth quarter of 2018, we also finalized our accounting for the deferred tax benefit resulting from the revaluation of our net U.S. deferred tax liabilities. The $1,311 million deferred tax benefit recorded as of 2017 year-end was reduced to $1,295 million as a result of the change to lag accounting for Keurig. As a result of U.S. tax reform, we changed our indefinite reinvestment assertion for most companies owned directly by our U.S. subsidiaries. As of 2017 year end, we accrued deferred tax assets related to two entities where the deferred tax benefits were expected to be realized. As of 2018 year end, we finalized our analysis related to the change in our indefinite reinvestment assertion and recognized $60 million in deferred tax expense to capture the foreign and state tax impacts of the US GAAP over tax basis difference in those subsidiaries where we are no longer indefinitely reinvested. The legislation established various new provisions, including 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”). As of December 31, 2018, we have made a policy decision and elected to treat taxes due from GILTI as a current period expense. Earnings/(losses) from continuing operations before income taxes and the provision for income taxes consisted of: For the Years Ended December 31, 2018 2017 2016 (in millions) Earnings/(losses) from continuing operations before income taxes: United States $ (170 ) $ 354 $ (364 ) Outside United States 3,012 2,770 1,818 $ 2,842 $ 3,124 $ 1,454 Provision for income taxes: United States federal: Current $ (34 ) $ 1,322 $ (227 ) Deferred 171 (1,274 ) 127 137 48 (100 ) State and local: Current 23 32 7 Deferred 61 30 7 84 62 14 Total United States 221 110 (86 ) Outside United States: Current 552 541 490 Deferred — 15 (290 ) Total outside United States 552 556 200 Total provision for income taxes $ 773 $ 666 $ 114 The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate as follows: For the Years Ended December 31, 2018 2017 2016 U.S. federal statutory rate 21.0 % 35.0 % 35.0 % Increase/(decrease) resulting from: State and local income taxes, net of federal tax benefit 0.4 % 0.8 % 0.8 % Foreign rate differences (1.9 )% (10.8 )% (18.6 )% Changes in judgment on realizability of deferred tax assets (0.4 )% 3.2 % — Reversal of other tax accruals no longer required (1.8 )% (1.7 )% (7.6 )% Tax accrual on investment in Keurig (including tax impact of the gain from the KDP transaction) 8.4 % 1.2 % 1.2 % Excess tax benefits from equity compensation (0.8 )% (1.2 )% — Tax legislation (non-U.S. tax reform) 0.3 % (2.6 )% (4 )% U.S. tax reform - deferred benefit from tax rate change — (41.5 )% — U.S. tax reform - transition tax (1.3 )% 42.2 % — U.S. tax reform - changes in indefinite reinvestment assertion 2.1 % (2.0 )% — Foreign tax provisions under TCJA (GILTI, FDII and BEAT) (1) 1.1 % — — Other 0.1 % (1.3 )% 1.0 % Effective tax rate 27.2 % 21.3 % 7.8 % (1) The Tax Cuts and Jobs Act of 2017 ("TCJA") established the Global Intangible Low-Tax Income ("GILTI") provision, which taxes U.S. allocated expenses and certain income from foreign operations; the Foreign-Derived Intangible Income ("FDII") provision, which allows a deduction against certain types of US taxable income resulting in a lower effective US tax rate on such income; and the Base Erosion Anti-abuse Tax ("BEAT"), which is a new minimum tax based on cross-border service payments by U.S. entities. Our 2018 effective tax rate of 27.2% was unfavorably impacted by net tax expenses from $128 million of discrete one-time events as well as unfavorable provisions within the new U.S. tax reform legislation, partially offset by the favorable mix of pre-tax income in various non-U.S. tax jurisdictions as well as the reduction in the U.S. federal tax rate. The discrete net tax expenses included a $192 million deferred tax expense related to a $778 million gain on the KDP transaction reported as a gain on equity method investment as well as $19 million expense from the final updates to the provisional impacts from U.S. tax reform reported as of 2017 year-end, partially offset by an $81 million benefit from favorable audit settlements and statutes of limitations in various jurisdictions. Our 2017 effective tax rate of 21.3% was favorably impacted by the mix of pre-tax income in various non-U.S. tax jurisdictions and net tax benefits from $97 million of discrete one-time events, partially offset by an increase in domestic earnings as compared to the prior year. The discrete net tax benefits included the provisional net impact from U.S. tax reform discussed previously, favorable audit settlements and statutes of limitations in various jurisdictions, and the net reduction of our French and Belgian deferred tax liabilities resulting from tax legislation enacted during 2017 that reduced the corporate income tax rates in each country, partially offset by the addition of a valuation allowance in one of our Chinese entities. Our 2016 effective tax rate of 7.8% was favorably impacted by the mix of pre-tax income in various non-U.S. tax jurisdictions and net tax benefits from $161 million of discrete one-time events. The discrete net tax benefits related to favorable audit settlements and statutes of limitations in various jurisdictions and the net reduction of our U.K. and French deferred tax liabilities resulting from tax legislation enacted during 2016 that reduced the corporate income tax rates in each country. Tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of: As of December 31, 2018 2017 (in millions) Deferred income tax assets: Accrued postretirement and postemployment benefits $ 147 $ 191 Accrued pension costs 349 313 Other employee benefits 147 155 Accrued expenses 283 269 Loss carryforwards 707 773 Tax credit carryforwards 747 370 Other 302 342 Total deferred income tax assets 2,682 2,413 Valuation allowance (1,153 ) (853 ) Net deferred income tax assets $ 1,529 $ 1,560 Deferred income tax liabilities: Intangible assets $ (3,861 ) $ (3,977 ) Property, plant and equipment (473 ) (452 ) Other (492 ) (153 ) Total deferred income tax liabilities (4,826 ) (4,582 ) Net deferred income tax liabilities $ (3,297 ) $ (3,022 ) Our significant valuation allowances are in the U.S., China and Mexico. The U.S. valuation allowance relates to excess foreign tax credits generated by the deemed repatriation under U.S. tax reform. The valuation allowance in China results from a change in judgment in 2017 as to the realizability of one of our Chinese entity’s deferred tax assets. The Mexico valuation allowance relates to loss carryforwards where we do not currently expect to generate gains of the proper character to utilize the carryforwards in the future. At December 31, 2018 , the Company has pre-tax loss carryforwards of $3,744 million , of which $1,114 million will expire at various dates between 2019 and 2038 and the remaining $2,630 million can be carried forward indefinitely. The unremitted earnings as of December 31, 2018 in those subsidiaries where we continue to be indefinitely reinvested is approximately $1.7 billion . We currently have not recognized approximately $115 million of deferred tax liabilities related to those unremitted earnings. Future tax law changes or changes in the needs of our non-U.S. subsidiaries could require us to recognize deferred tax liabilities on a portion, or all, of our accumulated earnings that are currently indefinitely reinvested. The changes in our unrecognized tax benefits were: For the Years Ended December 31, 2018 2017 2016 (in millions) January 1 $ 579 $ 610 $ 756 Increases from positions taken during prior periods 36 33 18 Decreases from positions taken during prior periods (43 ) (93 ) (123 ) Increases from positions taken during the current period 57 64 90 Decreases relating to settlements with taxing authorities (45 ) (54 ) (75 ) Reductions resulting from the lapse of the applicable statute of limitations (31 ) (29 ) (43 ) Currency/other (37 ) 48 (13 ) December 31 $ 516 $ 579 $ 610 As of January 1, 2018, our unrecognized tax benefits were $579 million . If we had recognized all of these benefits, the net impact on our income tax provision would have been $524 million . Our unrecognized tax benefits were $516 million at December 31, 2018, and if we had recognized all of these benefits, the net impact on our income tax provision would have been $463 million . Within the next 12 months, our unrecognized tax benefits could increase by approximately $40 million due to unfavorable audit developments or decrease by approximately $151 million due to audit settlements and the expiration of statutes of limitations in various jurisdictions. We include accrued interest and penalties related to uncertain tax positions in our tax provision. We had accrued interest and penalties of $212 million as of January 1, 2018 and $180 million as of December 31, 2018. Our 2018 provision for income taxes included $9 million benefit for interest and penalties. Our income tax filings are regularly examined by federal, state and non-U.S. tax authorities. U.S. federal, state and non-U.S. jurisdictions have statutes of limitations generally ranging from three to five |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 16. Earnings per Share Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Years Ended December 31, 2018 2017 2016 (in millions, except per share data) Net earnings $ 3,395 $ 2,842 $ 1,645 Noncontrolling interest (earnings) (14 ) (14 ) (10 ) Net earnings attributable to Mondelēz International $ 3,381 $ 2,828 $ 1,635 Weighted-average shares for basic EPS 1,472 1,513 1,556 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 14 18 17 Weighted-average shares for diluted EPS 1,486 1,531 1,573 Basic earnings per share attributable to Mondelēz International $ 2.30 $ 1.87 $ 1.05 Diluted earnings per share attributable to Mondelēz International $ 2.28 $ 1.85 $ 1.04 We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We excluded antidilutive stock options of 11.6 million for the year ended December 31, 2018 , 8.5 million for the year ended December 31, 2017 and 7.8 million for the year ended December 31, 2016 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 17. 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. Our operations and management structure are organized into four operating segments: • Latin America • AMEA • Europe • North America On October 1, 2016, we integrated our EEMEA operating segment into our Europe and Asia Pacific operating segments to further leverage and optimize the operating scale built within the Europe and Asia Pacific regions. Russia, Ukraine, Turkey, Belarus, Georgia and Kazakhstan were combined within our Europe operating segment, while the remaining Middle East and African countries were combined within our Asia Pacific region to form the AMEA operating segment. We have reflected the segment change as if it had occurred in all periods presented. 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), amortization of intangibles, net gain 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, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2018 2017 2016 (in millions) Net revenues: Latin America $ 3,202 $ 3,566 $ 3,392 AMEA 5,729 5,739 5,816 Europe 10,122 9,794 9,755 North America 6,885 6,797 6,960 Net revenues $ 25,938 $ 25,896 $ 25,923 For the Years Ended December 31, 2018 2017 2016 (in millions) Earnings before income taxes: Operating income: Latin America $ 410 $ 564 $ 272 AMEA 702 514 505 Europe 1,734 1,610 1,198 North America 849 1,144 1,128 Unrealized gains/(losses) on hedging activities (mark-to-market impacts) 141 (96 ) (94 ) General corporate expenses (335 ) (282 ) (287 ) Amortization of intangibles (176 ) (178 ) (176 ) Net gain on divestitures — 186 9 Acquisition-related costs (13 ) — (1 ) Operating income 3,312 3,462 2,554 Benefit plan non-service income (1) 50 44 15 Interest and other expense, net (520 ) (382 ) (1,115 ) Earnings before income taxes $ 2,842 $ 3,124 $ 1,454 (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 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. No single customer accounted for 10% or more of our net revenues from continuing operations in 2018 . Our five largest customers accounted for 16.8% and our ten largest customers accounted for 23.0% of net revenues from continuing operations in 2018 . Items impacting our segment operating results are discussed in Note 1, Summary of Significant Accounting Policies , Note 2, Divestitures and Acquisitions , Note 4, Property, Plant and Equipment , Note 5, Goodwill and Intangible Assets , Note 7, Restructuring Program , and Note 13, 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. Total assets, depreciation expense and capital expenditures by segment, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2018 2017 2016 (in millions) Total assets: Latin America (1) $ 4,699 $ 4,948 $ 5,156 AMEA (1) 9,571 9,883 10,031 Europe (1) 19,426 21,611 19,934 North America (1) 21,015 20,709 20,694 Equity method investments 7,123 6,193 5,553 Unallocated assets and adjustments (2) 895 (387 ) 138 Total assets $ 62,729 $ 62,957 $ 61,506 (1) Segment assets do not reflect outstanding intercompany asset balances as intercompany accounts are eliminated at a segment level. (2) Unallocated assets consist primarily of cash and cash equivalents, deferred income taxes, centrally held property, plant and equipment, prepaid pension assets and derivative financial instrument balances. Final adjustments for jurisdictional netting of deferred tax assets and liabilities is done at a consolidated level. For the Years Ended December 31, 2018 2017 2016 (in millions) Depreciation expense: Latin America $ 97 $ 107 $ 92 AMEA 159 157 161 Europe 248 239 253 North America 131 135 141 Total depreciation expense $ 635 $ 638 $ 647 For the Years Ended December 31, 2018 2017 2016 (in millions) Capital expenditures: Latin America $ 261 $ 226 $ 321 AMEA 277 280 349 Europe 326 278 294 North America 231 230 260 Total capital expenditures $ 1,095 $ 1,014 $ 1,224 Geographic data for net revenues (recognized in the countries where products are sold) and long-lived assets, excluding deferred tax, goodwill, intangible assets and equity method investments, were: For the Years Ended December 31, 2018 2017 2016 (in millions) Net revenues: United States $ 6,401 $ 6,275 $ 6,329 Other 19,537 19,621 19,594 Total net revenues $ 25,938 $ 25,896 $ 25,923 As of December 31, 2018 2017 2016 (in millions) Long-lived assets: United States $ 1,481 $ 1,468 $ 1,508 Other 7,539 7,733 7,229 Total long-lived assets $ 9,020 $ 9,201 $ 8,737 No individual country within Other exceeded 10% of our net revenues or long-lived assets for all periods presented. Net revenues by product category, reflecting our current segment structure for all periods presented, were: For the Year Ended December 31, 2018 Latin AMEA Europe North America Total (in millions) Biscuits $ 727 $ 1,724 $ 3,127 $ 5,607 $ 11,185 Chocolate 747 2,080 5,083 267 8,177 Gum & Candy 865 879 736 1,011 3,491 Beverages 533 553 98 — 1,184 Cheese & Grocery 330 493 1,078 — 1,901 Total net revenues $ 3,202 $ 5,729 $ 10,122 $ 6,885 $ 25,938 For the Year Ended December 31, 2017 (1) Latin AMEA Europe North America Total (in millions) Biscuits $ 779 $ 1,637 $ 2,944 $ 5,479 $ 10,839 Chocolate 862 2,008 4,869 293 8,032 Gum & Candy 919 919 775 1,025 3,638 Beverages 665 569 121 — 1,355 Cheese & Grocery 341 606 1,085 — 2,032 Total net revenues $ 3,566 $ 5,739 $ 9,794 $ 6,797 $ 25,896 For the Year Ended December 31, 2016 (1) Latin AMEA Europe North America Total (in millions) Biscuits $ 734 $ 1,592 $ 2,765 $ 5,565 $ 10,656 Chocolate 743 1,897 4,778 255 7,673 Gum & Candy 938 953 916 1,140 3,947 Beverages 657 611 177 — 1,445 Cheese & Grocery 320 763 1,119 — 2,202 Total net revenues $ 3,392 $ 5,816 $ 9,755 $ 6,960 $ 25,923 (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. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 18. Quarterly Financial Data (Unaudited) Our summarized operating results by quarter are detailed below. 2018 Quarters First Second Third Fourth (in millions, except per share data) Net revenues $ 6,765 $ 6,112 $ 6,288 $ 6,773 Gross profit 2,849 2,540 2,414 2,549 Provision for income taxes (337 ) (15 ) (310 ) (111 ) Gain on equity method investment transactions — — 757 21 Equity method investment net earnings 232 87 80 149 Net earnings (1) $ 1,052 $ 320 $ 1,197 $ 826 Noncontrolling interest (6 ) (2 ) (3 ) (3 ) Net earnings attributable to Mondelēz International $ 1,046 $ 318 $ 1,194 $ 823 Weighted-average shares for basic EPS 1,489 1,475 1,466 1,457 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 16 13 14 13 Weighted-average shares for diluted EPS 1,505 1,488 1,480 1,470 Per share data: Basic EPS attributable to Mondelēz International: $ 0.70 $ 0.22 $ 0.81 $ 0.56 Diluted EPS attributable to Mondelēz International: $ 0.70 $ 0.21 $ 0.81 $ 0.56 Dividends declared $ 0.22 $ 0.22 $ 0.26 $ 0.26 2017 Quarters First Second Third Fourth (in millions, except per share data) Net revenues $ 6,414 $ 5,986 $ 6,530 $ 6,966 Gross profit 2,518 2,314 2,549 2,653 Provision for income taxes (154 ) (84 ) (272 ) (156 ) Gain on equity method investment transactions — — — 40 Equity method investment net earnings 90 67 92 95 Net earnings (1) $ 657 $ 500 $ 982 $ 703 Noncontrolling interest (3 ) (2 ) (1 ) (8 ) Net earnings attributable to Mondelēz International $ 654 $ 498 $ 981 $ 695 Weighted-average shares for basic EPS 1,529 1,519 1,507 1,497 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 21 20 17 16 Weighted-average shares for diluted EPS 1,550 1,539 1,524 1,513 Per share data: Basic EPS attributable to Mondelēz International: $ 0.43 $ 0.33 $ 0.65 $ 0.46 Diluted EPS attributable to Mondelēz International: $ 0.42 $ 0.32 $ 0.64 $ 0.46 Dividends declared $ 0.19 $ 0.19 $ 0.22 $ 0.22 (1) See the following table for significant items that affected the comparability of earnings each quarter. Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not equal the total for the year. During 2018 and 2017 , we recorded the following pre-tax (charges)/benefits in earnings from continuing operations: 2018 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (54 ) $ (111 ) $ (125 ) $ (99 ) Divestiture-related costs 3 — — (2 ) Gain on equity method investment transaction — — 757 21 Gain/(loss) related to interest rate swaps 14 (5 ) 1 — Loss on early extinguishment of debt and related expenses — (140 ) — — Impact from the resolution of tax matters — (15 ) — 26 Impact from pension participation changes — (409 ) (3 ) (17 ) $ (37 ) $ (680 ) $ 630 $ (71 ) 2017 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (166 ) $ (176 ) $ (182 ) $ (118 ) Net gain on divestitures — (3 ) 187 2 Divestiture-related costs (19 ) (9 ) 2 (8 ) Loss on early extinguishment of debt and related expenses — (11 ) — — Impact from the resolution of tax matters 58 — 215 8 $ (127 ) $ (199 ) $ 222 $ (116 ) Items impacting our operating results are discussed in Note 1, Summary of Significant Accounting Policies , Note 2, Divestitures and Acquisitions , Note 5, Goodwill and Intangible Assets , Note 6, Equity Method Investments , Note 7, Restructuring Program , Note 8, Debt and Borrowing Arrangements , Note 10, Benefit Plans , and Note 13, Commitments and Contingencies – Tax Matters |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Mondelēz International, Inc. and Subsidiaries Valuation and Qualifying Accounts For the Years Ended December 31, 2018 , 2017 and 2016 (in millions) Col. A Col. B Col. C Col. D Col. E Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period (a) (b) 2018: Allowance for trade receivables $ 50 $ 3 $ (6 ) $ 7 $ 40 Allowance for other current receivables 98 (10 ) (24 ) 17 47 Allowance for long-term receivables 21 — 3 — 24 Allowance for deferred taxes 853 409 4 113 1,153 $ 1,022 $ 402 $ (23 ) $ 137 $ 1,264 2017: Allowance for trade receivables $ 58 $ 21 $ (8 ) $ 21 $ 50 Allowance for other current receivables 93 6 6 7 98 Allowance for long-term receivables 20 (1 ) 3 1 21 Allowance for deferred taxes 310 549 25 31 853 $ 481 $ 575 $ 26 $ 60 $ 1,022 2016: Allowance for trade receivables $ 54 $ 18 $ (1 ) $ 13 $ 58 Allowance for other current receivables 109 (2 ) (13 ) 1 93 Allowance for long-term receivables 16 1 3 — 20 Allowance for deferred taxes 303 67 (28 ) 32 310 $ 482 $ 84 $ (39 ) $ 46 $ 481 Notes: (a) Primarily related to divestitures, acquisitions and currency translation. (b) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business: Mondelēz International, Inc. was incorporated in 2000 in the Commonwealth of Virginia. Mondelēz International, Inc., through its subsidiaries (collectively “Mondelēz International,” “we,” “us” and “our”), sells food and beverage products to consumers in over 150 |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries which were deconsolidated in 2015. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors’ interests in the results of subsidiaries that we control and consolidate. 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. Under the cost method of accounting, earnings are recognized to the extent cash is received. |
Use of Estimates | Use of Estimates:We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require us to make estimates and assumptions that affect a number of amounts in our consolidated financial statements. Significant accounting policy elections, estimates and assumptions include, among others, pension and benefit plan assumptions, valuation assumptions of goodwill and intangible assets, useful lives of long-lived assets, restructuring program liabilities, marketing program accruals, insurance and self-insurance reserves and income taxes. We base our estimates on historical experience and other assumptions that we believe are reasonable. If actual amounts differ from estimates, we include the revisions in our consolidated results of operations in the period the actual amounts become known. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a material effect on our consolidated financial statements. |
Segment Change | Segment Change : On October 1, 2016, we integrated our Eastern Europe, Middle East, and Africa (“EEMEA”) operating segment into our Europe and Asia Pacific operating segments to further leverage and optimize the operating scale built within the Europe and Asia Pacific regions. Russia, Ukraine, Turkey, Belarus, Georgia and Kazakhstan were combined within our Europe region, while the remaining Middle East and African countries were combined within our Asia Pacific region to form a new Asia, Middle East and Africa (“AMEA”) operating segment. We have reflected the segment change as if it had occurred in all periods presented. Our operations and management structure are organized into four operating segments: • Latin America • AMEA • Europe • |
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 (except for highly inflationary currencies) 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 discussed below, beginning on July 1, 2018, we began to apply highly inflationary accounting for our operations in Argentina. Argentina. During the second quarter of 2018, primarily based on published estimates which indicated that Argentina's three-year cumulative inflation rate exceeded 100%, we concluded that Argentina became a highly inflationary economy for accounting purposes. As of July 1, 2018, we began to apply highly inflationary accounting for our Argentinean subsidiaries and changed their functional currency from the Argentinean peso to the U.S. dollar. On July 1, 2018, both monetary and non-monetary assets and liabilities denominated in Argentinean pesos were remeasured into U.S. dollars using the exchange rate as of the balance sheet date, with remeasurement and other transaction gains and losses recorded in net earnings. As of December 31, 2018 , our Argentinean operations had less than $1 million of Argentinean peso denominated net monetary liabilities . Our Argentinean operations contributed $469 million , or 1.8% of consolidated net revenues in 2018 . During 2018 we recorded an $11 million remeasurement loss within selling, general and administrative expenses related to the devaluation of the Argentinean peso denominated net monetary assets from July 1, 2018 through December 31, 2018 . Brexit. In 2018, we generated 8.6% of our net revenues in the United Kingdom. We continue to monitor the U.K. planned exit from the European Union ("Brexit") and take protective measures in response to the potential impacts on our results of operations and financial condition. Following the Brexit vote in June 2016, there was significant volatility in the global stock markets and currency exchange rates. The value of the British pound sterling relative to the U.S. dollar declined significantly and negatively affected our translated results reported in U.S. dollars. If the ultimate terms of the United Kingdom’s separation from the European Union negatively impact the U.K. economy or result in disruptions to sales or our supply chain, the impact to our results of operations and financial condition could be material. We are taking measures to increase our resources in customer service & logistics together with increasing our inventory levels of imported raw materials, packaging and finished goods in the United Kingdom to help us manage through the Brexit transition and the inherent risks. Other Countries. Since we sell our products in over 150 countries and have operations in over 80 |
Cash and Cash Equivalents | Cash and Cash Equivalents:Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. |
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 nonrecourse 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 $819 million as of December 31, 2018 , $843 million as of December 31, 2017 and $677 million as of December 31, 2016 . The incremental costs of factoring receivables under this arrangement were $10 million |
Inventories | Inventories:We value our inventory using the average cost method. We also record inventory allowances for overstock and obsolete inventories due to ingredient and packaging changes. |
Long-Lived Assets | Long-Lived Assets: Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 20 years and buildings and building improvements over periods up to 40 years. |
Software Costs | Software Costs: We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are included in property, plant and equipment and amortized on a straight-line basis over the estimated useful lives of the software, which do not exceed seven |
Goodwill and Non-Amortizable Intangible Assets | Goodwill and Non-Amortizable Intangible Assets: We test goodwill and non-amortizable intangible assets for impairment on an annual basis on July 1. We assess goodwill impairment risk throughout the year by performing a qualitative review of entity-specific, industry, market and general economic factors affecting our goodwill reporting units. We review our operating segment and reporting unit structure for goodwill testing annually or as significant changes in the organization occur. Annually, we may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, we may elect to do quantitative testing instead. In our quantitative testing, we compare a reporting unit’s estimated fair value with its carrying value. We estimate a reporting unit’s fair value using a discounted cash flow method that incorporates planned growth rates, market-based discount rates and estimates of residual value. This year, for our Europe and North America reporting units, we used a market-based, weighted-average cost of capital of 7.3% to discount the projected cash flows of those operations. For our Latin America and AMEA reporting units, we used a risk-rated discount rate of 10.3% . Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans, industry and economic conditions, and our actual results and conditions may differ over time. If the carrying value of a reporting unit’s net assets exceeds its fair value, we would recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. |
Insurance and Self-Insurance | Insurance and Self-Insurance:We use a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability, product liability and our obligation for employee healthcare benefits. We estimate the liabilities associated with these risks on an undiscounted basis by evaluating and making judgments about historical claims experience and other actuarial assumptions and the estimated impact on future results. |
Revenue Recognition | Revenue Recognition: We predominantly sell food and beverage products across several product categories and in all regions as disclosed in Note 17, 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. |
Marketing, Advertising and Research and Development | Marketing, Advertising and Research and Development: We promote our products with marketing and advertising programs. These programs include, but are not limited to, cooperative advertising, in-store displays and consumer marketing promotions. For interim reporting purposes, advertising and consumer promotion expenses are charged to operations as a percentage of volume, based on estimated sales volume and estimated program spending. We do not defer costs on our year-end consolidated balance sheet and all marketing and advertising costs are recorded as an expense in the year incurred. Advertising expense was $1,173 million in 2018 , $1,248 million in 2017 and $1,396 million in 2016 . We expense product research and development costs as incurred. Research and development expense was $362 million in 2018 , $366 million in 2017 and $376 million in 2016 |
Stock-based Compensation | Stock-based Compensation: Stock-based compensation awarded to employees and non-employee directors is valued at fair value on the grant date. We record stock-based compensation expense over the vesting period, generally three |
Employee Benefit Plans | Employee Benefit Plans:We provide a range of benefits to our current and retired employees. These include pension benefits, postretirement health care benefits and postemployment benefits depending upon jurisdiction, tenure, job level and other factors. Local statutory requirements govern many of the benefit plans we provide around the world. Local government plans generally cover health care benefits for retirees outside the United States, Canada and United Kingdom. As such, our U.S., Canadian and U.K. subsidiaries provide health care and other benefits to most retired employees. Our postemployment benefit plans provide primarily severance benefits for eligible salaried and certain hourly employees. The cost for these plans is recognized in earnings primarily over the working life of the covered employee. |
Financial Instruments | Financial Instruments: We use financial instruments to manage our currency exchange rate, commodity price and interest rate risks. We monitor and manage these exposures as part of our overall risk management program, which focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results. A principal objective of our risk management strategies is to reduce significant, unanticipated earnings fluctuations that may arise from volatility in currency exchange rates, commodity prices and interest rates, principally through the use of derivative instruments. We use a combination of primarily currency forward contracts, futures, options and swaps; commodity forward contracts, futures and options; and interest rate swaps to manage our exposure to cash flow variability, protect the value of our existing currency assets and liabilities and protect the value of our debt. See Note 9, Financial Instruments , for more information on the types of derivative instruments we use. We record derivative financial instruments on a gross basis and at fair value in our consolidated balance sheets within other current assets or other current liabilities due to their relatively short-term duration. Cash flows from derivative instruments are classified in the consolidated statements of cash flows based on the nature of the derivative instrument. Changes in the fair value of a derivative that is designated as a cash flow hedge, to the extent that the hedge is effective, are recorded in accumulated other comprehensive earnings/(losses) and reclassified to earnings when the hedged item affects earnings. Changes in fair value of economic hedges and the ineffective portion of all hedges are recognized in current period earnings. Changes in the fair value of a derivative that is designated as a fair value hedge, along with the changes in the fair value of the related hedged asset or liability, are recorded in earnings in the same period. We use non-U.S. dollar denominated debt to hedge a portion of our net investment in non-U.S. operations against adverse movements in exchange rates. Currency movements related to our non-U.S. debt and our net investments in non-U.S. operations, as well as the related deferred taxes, are recorded within currency translation adjustment in accumulated other comprehensive earnings/(losses). In order to qualify for hedge accounting, a specified level of hedging effectiveness between the derivative instrument and the item being hedged must exist at inception and throughout the hedged period. We must also formally document the nature of and relationship between the derivative and the hedged item, as well as our risk management objectives, strategies for undertaking the hedge transaction and method of assessing hedge effectiveness. Additionally, for a hedge of a forecasted transaction, the significant characteristics and expected term of the forecasted transaction must be specifically identified, and it must be probable that the forecasted transaction will occur. If it is no longer probable that the hedged forecasted transaction will occur, we would recognize the gain or loss related to the derivative in earnings. When we use derivatives, we are exposed to credit and market risks. Credit risk exists when a counterparty to a derivative contract might fail to fulfill its performance obligations under the contract. We reduce our credit risk by entering into transactions with counterparties with high quality, investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. We also maintain a policy of requiring that all significant, non-exchange traded derivative contracts with a duration of one year or longer are governed by an International Swaps and Derivatives Association master agreement. Market risk exists when the value of a derivative or other financial instrument might be adversely affected by changes in market conditions and commodity prices, currency exchange rates or interest rates. We manage derivative market risk by limiting the types of derivative instruments and derivative strategies we use and the degree of market risk that we plan to hedge through the use of derivative instruments. Commodity derivatives . We are exposed to price risk related to forecasted purchases of certain commodities that we primarily use as raw materials. We enter into commodity forward contracts primarily for wheat, sugar and other sweeteners, soybean and vegetable oils and cocoa. Commodity forward contracts generally are not subject to the accounting requirements for derivative instruments and hedging activities under the normal purchases exception. We also use commodity futures and options to hedge the price of certain input costs, including cocoa, energy costs, sugar and other sweeteners, wheat, packaging, dairy, corn, and soybean and vegetable oils. We also sell commodity futures to unprice future purchase commitments, and we occasionally use related futures to cross-hedge a commodity exposure. We are not a party to leveraged derivatives and, by policy, do not use financial instruments for speculative purposes. During the third quarter of 2016, we discontinued designating commodity derivatives for hedge accounting treatment. Any unrealized gains or losses (mark-to-market impacts) and realized gains or losses are recorded in earnings. Currency exchange derivatives . We use various financial instruments to mitigate our exposure to changes in exchange rates from third-party and intercompany current and forecasted transactions. These instruments may include currency exchange forward contracts, futures, options and swaps. Based on the size and location of our businesses, we use these instruments to hedge our exposure to certain currencies, including the euro, pound sterling, Swiss franc, Canadian dollar and Mexican peso. During the third quarter of 2016, we discontinued designating currency exchange derivatives for hedge accounting treatment. Any unrealized gains or losses (mark-to-market impacts) and realized gains or losses are recorded in earnings (see Note 9, Financial Instruments , for additional information). Interest rate cash flow and fair value hedges . We manage interest rate volatility by modifying the pricing or maturity characteristics of certain liabilities so that the net impact on expense is not, on a material basis, adversely affected by movements in interest rates. As a result of interest rate fluctuations, hedged fixed-rate liabilities appreciate or depreciate in market value. We expect the effect of this unrealized appreciation or depreciation to be substantially offset by our gains or losses on the derivative instruments that are linked to these hedged liabilities. We use derivative instruments, including interest rate swaps that have indices related to the pricing of specific liabilities as part of our interest rate risk management strategy. As a matter of policy, we do not use highly leveraged derivative instruments for interest rate risk management. We use interest rate swaps to economically convert a portion of our fixed-rate debt into variable-rate debt. Under the interest rate swap contracts, we agree with other parties to exchange, at specified intervals, the difference between fixed-rate and floating-rate interest amounts, which is calculated based on an agreed-upon notional amount. We use interest rate swaps to hedge the variability of interest payment cash flows on a portion of our future debt obligations. We also execute cross-currency interest rate swaps to hedge interest payments on newly issued debt denominated in a different currency than the functional currency of the borrowing entity. Substantially all of these derivative instruments are highly effective and qualify for hedge accounting treatment. Hedges of net investments in non-U.S. operations . We have numerous investments outside the United States. The net assets of these subsidiaries are exposed to changes and volatility in currency exchange rates. We use local currency denominated debt to hedge our non-U.S. net investments against adverse movements in exchange rates. We designated our euro, pound sterling, Swiss franc and Canadian dollar-denominated borrowings as a net investment hedge of a portion of our overall international operations. The gains and losses on our net investment in these designated international operations are economically offset by losses and gains on our euro, pound sterling, Swiss franc and Canadian dollar-denominated borrowings. The change in the debt’s value, net of deferred taxes, is recorded in the currency translation adjustment component of accumulated other comprehensive earnings/(losses). |
Income Taxes | Income Taxes: Our provision for income taxes includes amounts payable or refundable for the current year, the effects of deferred taxes and impacts from uncertain tax positions. We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of our assets and liabilities, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those differences are expected to reverse. The realization of certain deferred tax assets is dependent on generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. When assessing the need for a valuation allowance, we consider any carryback potential, future reversals of existing taxable temporary differences (including liabilities for unrecognized tax benefits), future taxable income and tax planning strategies. We recognize tax benefits in our financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained based on the technical merits of the position. The amount we recognize is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon resolution. Future changes related to the expected resolution of uncertain tax positions could affect tax expense in the period when the change occurs. We monitor for changes in tax laws and reflect the impacts of tax law changes in the period of enactment. In response to the United States tax reform legislation enacted on December 22, 2017 (“U.S. tax reform”), the U.S. Securities and Exchange Commission (“SEC”) issued guidance that allowed us to record provisional amounts for the impacts of U.S. tax reform if the full accounting could not be completed before we filed our 2017 financial statements. For provisions of the tax law where we were unable to make a reasonable estimate of the impact, the guidance allowed us to continue to apply the historical tax provisions in computing our income tax liability and deferred tax assets and liabilities as of December 31, 2017 . The guidance allowed us to finalize accounting for the U.S. tax reform changes within one year of the December 22, 2017 enactment date. We have finalized our |
New Accounting Pronouncements | New Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs for internal-use software. This ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. In August 2018, the FASB issued an ASU that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The new standard may impact our disclosures and is not expected to have an impact on our consolidated financial statements. In August 2018, the FASB issued an ASU that modifies the disclosure requirements on fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The new standard may impact our disclosures and is not expected to have an impact on our consolidated financial statements. In June 2018, the FASB issued an 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. This ASU is not expected to have a material 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 do not expect to elect to reclassify these stranded tax effects from U.S. tax reform when we adopt this ASU in the first quarter of 2019. As such, this ASU is not expected to have a material 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 this 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 June 2016, the FASB issued an ASU on the measurement of credit losses on financial instruments. This ASU requires entities to measure the impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. We are currently assessing the guidance. This ASU is not expected to have a material impact on our consolidated financial statements. In February 2016, the FASB issued an ASU on lease accounting to increase transparency and comparability among organizations by requiring the recognition of Right of Use ("ROU") assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. 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). In July 2018, the FASB issued an ASU which allows for an alternative transition approach, which will not require adjustments to comparative prior-period amounts. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We adopted the new standard on January 1, 2019. We elected to apply the package of practical expedients, including not reassessing whether expired or existing contracts contained leases, the classification of those leases and not reassessing initial direct costs for any existing leases. We elected not to separate non-lease components from lease components and to account for both as a single lease component by class of the underlying asset. The most significant impact from adopting the standard is the initial recognition of operating lease ROU assets and lease liabilities on our balance sheet, while our accounting for finance leases (i.e. capital leases) remains substantially unchanged. We continue to finalize our implementation efforts and currently estimate recording during the first quarter of 2019 an amount between approximately $650 to $800 million for long-term operating lease ROU assets and from approximately $650 to $800 million for operating lease liabilities, of which approximately $240 to $290 million will be recorded in other current liabilities and $410 to $510 million will be recorded in long-term operating lease liabilities. The transition method we elected for adoption of the standard requires us to make a cumulative effect adjustment as of January 1, 2019 and we do not believe that this amount will be material. |
Reclassifications | Reclassifications:Certain amounts previously reported have been reclassified to conform to current-year presentation. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | Inventories consisted of the following: As of December 31, 2018 2017 (in millions) Raw materials $ 726 $ 711 Finished product 1,987 1,975 2,713 2,686 Inventory reserves (121 ) (129 ) Inventories, net $ 2,592 $ 2,557 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of December 31, 2018 2017 (in millions) Land and land improvements $ 424 $ 458 Buildings and building improvements 2,984 2,979 Machinery and equipment 10,943 11,195 Construction in progress 894 1,048 15,245 15,680 Accumulated depreciation (6,763 ) (7,003 ) Property, plant and equipment, net $ 8,482 $ 8,677 |
Schedule of Changes Related to Property in Connection with Restructuring Program | These charges related to property, plant and equipment were recorded in the consolidated statements of earnings within asset impairment and exit costs and in the segment results as follows: For the Years Ended December 31, 2018 2017 2016 (in millions) Latin America $ 25 $ 36 $ 22 AMEA 5 81 44 Europe 15 58 122 North America 13 30 111 Corporate 1 1 2 Non-cash property, plant and equipment write-downs $ 59 $ 206 $ 301 2018 , 2017 and 2016 , and since inception of the Simplify to Grow 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 Year Ended Restructuring Costs $ 63 $ 69 $ 132 $ 32 $ 20 $ 316 Implementation Costs 67 39 73 79 57 315 Total $ 130 $ 108 $ 205 $ 111 $ 77 $ 631 For the Year Ended Restructuring Costs $ 93 $ 140 $ 195 $ 84 $ 23 $ 535 Implementation Costs 43 43 68 58 45 257 Total $ 136 $ 183 $ 263 $ 142 $ 68 $ 792 For the Year Ended Restructuring Costs $ 111 $ 96 $ 310 $ 173 $ 24 $ 714 Implementation Costs 54 48 88 121 61 372 Total $ 165 $ 144 $ 398 $ 294 $ 85 $ 1,086 Total Project (3) Restructuring Costs $ 493 $ 517 $ 971 $ 453 $ 116 $ 2,550 Implementation Costs 219 168 345 332 278 1,342 Total $ 712 $ 685 $ 1,316 $ 785 $ 394 $ 3,892 (1) During 2016-2018, 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 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 December 31, 2018 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Reportable Operating Segment | Goodwill by operating segment was: As of December 31, 2018 2017 (in millions) Latin America $ 823 $ 901 AMEA 3,210 3,371 Europe 7,519 7,880 North America 9,173 8,933 Goodwill $ 20,725 $ 21,085 |
Schedule of Intangible Assets | Intangible assets consisted of the following: As of December 31, 2018 2017 (in millions) Non-amortizable intangible assets $ 17,201 $ 17,671 Amortizable intangible assets 2,328 2,386 19,529 20,057 Accumulated amortization (1,527 ) (1,418 ) Intangible assets, net $ 18,002 $ 18,639 |
Schedule of Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: 2018 2017 Goodwill Intangible Assets, at cost Goodwill Intangible Assets, at cost (in millions) Balance at January 1 $ 21,085 $ 20,057 $ 20,276 $ 19,319 Changes due to: Currency (658 ) (710 ) 909 954 Divestitures — — (114 ) (100 ) Acquisitions 298 250 15 (7 ) Asset impairments — (68 ) — (109 ) Other — — (1 ) — Balance at December 31 $ 20,725 $ 19,529 $ 21,085 $ 20,057 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Impact of Change in Accounting Principle on Consolidated Financial Statements | The following tables show the primary line items on the consolidated statements of earnings and comprehensive earnings and the consolidated balance sheet that changed as a result of the lag. The consolidated statements of cash flow and equity were also updated to reflect these changes. For the Years Ended December 31, 2017 December 31, 2016 As Reported As Adjusted As Reported As Adjusted (in millions, except per share data) Statements of Earnings Provision for income taxes $ (688 ) $ (666 ) $ (129 ) $ (114 ) Equity method investment net earnings 460 344 301 262 Net earnings 2,936 2,842 1,669 1,645 Net earnings attributable to Mondelēz International 2,922 2,828 1,659 1,635 Earnings per share attributable to Mondelēz International: Basic EPS $ 1.93 $ 1.87 $ 1.07 $ 1.05 Diluted EPS $ 1.91 $ 1.85 $ 1.05 $ 1.04 Statements of Other Comprehensive Earnings Currency translation adjustment $ 1,201 $ 1,198 $ (925 ) $ (921 ) Total other comprehensive earnings/(losses) 1,152 1,149 (1,153 ) (1,149 ) Comprehensive earnings attributable to Mondelēz International 4,046 3,949 523 503 As of December 31, 2017 As Reported As Adjusted (in millions) Balance Sheet Equity method investments $ 6,345 $ 6,193 Deferred income taxes 3,376 3,341 Retained earnings 22,749 22,631 Accumulated other comprehensive losses (9,998 ) (9,997 ) Total Mondelēz International shareholders' equity 26,111 25,994 Total equity 26,191 26,074 |
Schedule of Summarized Financial Information of Equity Method Investments | Summarized financial information related to our equity method investments is reflected below. The tables below reflect the adjustments noted above for the Keurig and KDP one-quarter lag. As of December 31, 2018 2017 (in millions) Current assets $ 5,695 $ 5,033 Noncurrent assets 69,445 38,320 Total assets $ 75,140 $ 43,353 Current liabilities $ 9,434 $ 5,709 Noncurrent liabilities 29,296 16,510 Total liabilities $ 38,730 $ 22,219 Equity attributable to shareowners of investees $ 36,365 $ 21,064 Equity attributable to noncontrolling interests 46 71 Total net equity of investees $ 36,411 $ 21,135 Mondelēz International ownership interests 13-50% 24-50% Mondelēz International share of investee net equity (1) $ 7,123 $ 5,753 Keurig shareholder loan — 440 Equity method investments $ 7,123 $ 6,193 For the Years Ended December 31, 2018 2017 2016 (in millions) Net revenues $ 14,185 $ 12,824 $ 9,709 Gross profit 6,076 4,913 3,748 Income from continuing operations 1,980 1,118 680 Net income 1,980 1,118 680 Net income attributable to investees $ 1,970 $ 1,115 $ 679 Mondelēz International ownership interests 13-50% 24-50% 24-50% Mondelēz International share of investee net income $ 536 $ 320 $ 242 Keurig shareholder loan interest income 12 24 20 Equity method investment net earnings $ 548 $ 344 $ 262 (1) Includes a basis difference of approximately $340 million as of December 31, 2018 and $360 million as of December 31, 2017 |
Restructuring Program (Tables)
Restructuring Program (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Program Liability | The Simplify to Grow Program liability activity for the years ended December 31, 2018 and 2017 was: Severance and related costs Asset Write-downs Total (in millions) Liability Balance, January 1, 2017 $ 464 $ — $ 464 Charges 323 212 535 Cash spent (347 ) — (347 ) Non-cash settlements/adjustments (3 ) (212 ) (215 ) Currency 27 — 27 Liability Balance, December 31, 2017 $ 464 $ — $ 464 Charges 253 63 316 Cash spent (310 ) — (310 ) Non-cash settlements/adjustments (4 ) (63 ) (67 ) Currency (30 ) — (30 ) Liability Balance, December 31, 2018 $ 373 $ — $ 373 |
Schedule of Restructuring and Implementation Costs | These charges related to property, plant and equipment were recorded in the consolidated statements of earnings within asset impairment and exit costs and in the segment results as follows: For the Years Ended December 31, 2018 2017 2016 (in millions) Latin America $ 25 $ 36 $ 22 AMEA 5 81 44 Europe 15 58 122 North America 13 30 111 Corporate 1 1 2 Non-cash property, plant and equipment write-downs $ 59 $ 206 $ 301 2018 , 2017 and 2016 , and since inception of the Simplify to Grow 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 Year Ended Restructuring Costs $ 63 $ 69 $ 132 $ 32 $ 20 $ 316 Implementation Costs 67 39 73 79 57 315 Total $ 130 $ 108 $ 205 $ 111 $ 77 $ 631 For the Year Ended Restructuring Costs $ 93 $ 140 $ 195 $ 84 $ 23 $ 535 Implementation Costs 43 43 68 58 45 257 Total $ 136 $ 183 $ 263 $ 142 $ 68 $ 792 For the Year Ended Restructuring Costs $ 111 $ 96 $ 310 $ 173 $ 24 $ 714 Implementation Costs 54 48 88 121 61 372 Total $ 165 $ 144 $ 398 $ 294 $ 85 $ 1,086 Total Project (3) Restructuring Costs $ 493 $ 517 $ 971 $ 453 $ 116 $ 2,550 Implementation Costs 219 168 345 332 278 1,342 Total $ 712 $ 685 $ 1,316 $ 785 $ 394 $ 3,892 (1) During 2016-2018, 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 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 December 31, 2018 |
Debt and Borrowing Arrangemen_2
Debt and Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2018 2017 Amount Outstanding Weighted- Average Rate Amount Outstanding Weighted- Average Rate (in millions) (in millions) Commercial paper $ 3,054 2.9 % $ 3,410 1.7 % Bank loans 138 10.5 % 107 11.5 % Total short-term borrowings $ 3,192 $ 3,517 |
Schedule of Long-Term Debt | Our long-term debt consisted of (interest rates are as of December 31, 2018 ): As of December 31, 2018 2017 (in millions) U.S. dollar notes, 1.625% to 7.000% (weighted-average effective rate 3.412%), due through 2040 $ 9,492 $ 8,327 Euro notes, 1.000% to 2.375% (weighted-average effective rate 1.934%), due through 2035 3,492 3,653 Pound sterling notes, 3.875% to 4.500% (weighted-average effective rate 4.151%), due through 2045 333 456 Swiss franc notes, 0.050% to 1.125% (weighted-average effective rate 0.703%), due through 2025 1,424 1,694 Canadian dollar notes, 3.250% (effective rate 3.320%), due through 2025 437 — Capital leases and other obligations 2 5 Total 15,180 14,135 Less current portion of long-term debt (2,648 ) (1,163 ) Long-term debt $ 12,532 $ 12,972 |
Schedule of Aggregate Maturities of Debt and Capital Leases Based on Stated Contractual Maturities | As of December 31, 2018 , aggregate maturities of our debt and capital leases based on stated contractual maturities, excluding unamortized non-cash bond premiums, discounts, bank fees and mark-to-market adjustments of $(70) million , were (in millions): 2019 2020 2021 2022 2023 Thereafter Total $2,648 $1,544 $3,334 $726 $1,822 $5,176 $15,250 |
Schedule of Interest and Other Expense Net Within Results of Continuing Operations | Interest and other expense, net within our results of continuing operations consisted of: For the Years Ended December 31, 2018 2017 2016 (in millions) Interest expense, debt $ 462 $ 396 $ 515 Loss on debt extinguishment and related expenses 140 11 427 (Gain)/loss related to interest rate swaps (10 ) — 97 Other (income)/expense, net (72 ) (25 ) 76 Interest and other expense, net $ 520 $ 382 $ 1,115 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 Years Ended December 31, Recognized in Earnings 2018 2017 2016 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 98 $ 13 $ 21 Interest and other expense, net Forecasted transactions 103 (37 ) (76 ) Cost of sales Forecasted transactions (4 ) (2 ) 11 Interest and other expense, net Forecasted transactions (3 ) 3 7 Selling, general and administrative expenses Commodity contracts 40 (218 ) (101 ) Cost of sales Total $ 234 $ (241 ) $ (138 ) |
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 Years Ended December 31, 2018 2017 2016 (in millions) Accumulated (loss)/gain at beginning of period $ (113 ) $ (121 ) $ (45 ) Transfer of realized (gains)/losses in fair value to earnings (9 ) 27 53 Unrealized gain/(loss) in fair value (45 ) (19 ) (129 ) Accumulated (loss)/gain at end of period $ (167 ) $ (113 ) $ (121 ) |
Schedule of Effects of Derivative Instruments | After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were: For the Years Ended December 31, 2018 2017 2016 (in millions) Currency exchange contracts – forecasted transactions $ — $ (3 ) $ (1 ) Commodity contracts — (24 ) (4 ) Interest rate contracts 9 — (48 ) Total $ 9 $ (27 ) $ (53 ) After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Years Ended December 31, 2018 2017 2016 (in millions) Currency exchange contracts – forecasted transactions $ — $ (38 ) $ 8 Commodity contracts — 7 (34 ) Interest rate contracts (45 ) 12 (103 ) Total $ (45 ) $ (19 ) $ (129 ) |
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 Years Ended December 31, 2018 2017 2016 (in millions) Borrowings $ 1 $ 4 $ 6 Derivatives (1 ) (4 ) (6 ) Total $ — $ — $ — |
Net Investment Hedging | |
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 Years Ended December 31, 2018 2017 2016 (in millions) Euro notes $ 126 $ (323 ) $ 73 British pound sterling notes 19 (26 ) 148 Swiss franc notes 7 (49 ) 12 Canadian notes 17 — — |
Derivatives | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value of Derivative Instruments | Derivative instruments were recorded at fair value in the consolidated balance sheets as follows: As of December 31, 2018 2017 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 17 $ 355 $ 15 $ 509 Net investment hedge derivative contracts (1) 337 28 — — $ 354 $ 383 $ 15 $ 509 Derivatives not designated as accounting hedges: Currency exchange contracts $ 72 $ 37 $ 65 $ 76 Commodity contracts 191 210 84 229 Interest rate contracts — — 15 11 $ 263 $ 247 $ 164 $ 316 Total fair value $ 617 $ 630 $ 179 $ 825 (1) Net investment hedge contracts consist of cross-currency interest rate swaps and forward contracts. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations |
Schedule of Derivative instruments Fair Value and Measurement Inputs | The fair values (asset/(liability)) of our derivative instruments were determined using: As of December 31, 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 $ 35 $ — $ 35 $ — Commodity contracts (19 ) (1 ) (18 ) — Interest rate contracts (338 ) — (338 ) — Net investment hedge contracts 309 — 309 — Total derivatives $ (13 ) $ (1 ) $ (12 ) $ — As of December 31, 2017 Total Quoted Prices in Significant Significant (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 derivative instruments were: Notional Amount As of December 31, 2018 2017 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,239 $ 7,089 Forecasted transactions 2,396 2,213 Commodity contracts 393 1,204 Interest rate contracts 8,679 6,532 Net investment hedges: Net investment hedge derivative contracts 6,678 — Non-U.S. dollar debt designated as net investment hedges Euro notes 3,514 3,679 British pound sterling notes 336 459 Swiss franc notes 1,424 1,694 Canadian dollar notes 440 — |
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 at December 31, 2017 was $801 million and was recorded in the current portion of long-term debt until this debt matured during the third quarter of 2018. As of December 31, 2018 2017 (in millions) Notional value of borrowings (and related derivatives) $ — $ (801 ) Cumulative fair value hedging adjustments — — Carrying amount of borrowings $ — $ (801 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans | The projected benefit obligations, plan assets and funded status of our pension plans were: U.S. Plans Non-U.S. Plans 2018 2017 2018 2017 (in millions) Projected benefit obligation at January 1 $ 1,762 $ 1,614 $ 10,852 $ 9,814 Service cost 43 46 146 156 Interest cost 61 62 199 199 Benefits paid (29 ) (32 ) (462 ) (471 ) Settlements paid (118 ) (111 ) (2 ) — Actuarial (gains)/losses (208 ) 179 (640 ) 180 Divestiture — — — (14 ) Currency — — (528 ) 976 Other — 4 13 12 Projected benefit obligation at December 31 1,511 1,762 9,578 10,852 Fair value of plan assets at January 1 1,717 1,620 9,327 7,926 Actual return on plan assets (99 ) 217 (243 ) 592 Contributions 39 23 323 482 Benefits paid (29 ) (32 ) (462 ) (471 ) Settlements paid (118 ) (111 ) (2 ) — Divestiture — — — — Currency — — (478 ) 798 Fair value of plan assets at December 31 1,510 1,717 8,465 9,327 Net pension (liabilities)/assets at December 31 $ (1 ) $ (45 ) $ (1,113 ) $ (1,525 ) |
Schedule of Pension Plans Resulted in Net Pension Liability | The combined U.S. and non-U.S. pension plans resulted in a net pension liability of $1,114 million at December 31, 2018 and $1,570 million at December 31, 2017 . We recognized these amounts in our consolidated balance sheets as follows: As of December 31, 2018 2017 (in millions) Prepaid pension assets $ 132 $ 158 Other current liabilities (25 ) (59 ) Accrued pension costs (1,221 ) (1,669 ) $ (1,114 ) $ (1,570 ) |
Schedule of Projected Benefit Obligations, Accumulated Benefit Obligations and Fair Value of Plan Assets | Certain of our U.S. and non-U.S. plans are underfunded with an accumulated benefit obligations in excess of plan assets. For these plans, the projected benefit obligations, accumulated benefit obligations and the fair value of plan assets were: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2018 2017 2018 2017 (in millions) Projected benefit obligation $ 52 $ 94 $ 3,343 $ 9,345 Accumulated benefit obligation 50 90 3,194 9,138 Fair value of plan assets 2 2 2,169 7,709 |
Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations | We used the following weighted-average assumptions to determine our benefit obligations under the pension plans: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2018 2017 2018 2017 (in millions) Discount rate 4.40 % 3.68 % 2.45 % 2.20 % Expected rate of return on plan assets 5.75 % 5.50 % 4.80 % 4.90 % Rate of compensation increase 4.00 % 4.00 % 3.31 % 3.31 % U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2018 2017 2016 2018 2017 2016 Discount rate 3.68 % 4.19 % 4.50 % 2.20 % 2.31 % 3.11 % Expected rate of return on plan assets 5.50 % 6.25 % 6.75 % 4.90 % 5.14 % 5.87 % Rate of compensation increase 4.00 % 4.00 % 4.00 % 3.31 % 3.29 % 3.18 % |
Schedule of Components of Net Costs | Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2018 2017 2016 2018 2017 2016 (in millions) Service cost $ 43 $ 46 $ 57 $ 146 $ 156 $ 147 Interest cost 61 62 61 199 199 229 Expected return on plan assets (88 ) (101 ) (97 ) (448 ) (434 ) (418 ) Amortization: Net loss from experience differences 32 37 42 163 167 120 Prior service cost/(benefit) 2 2 2 (2 ) (3 ) (3 ) Settlement losses and other expenses (1) 35 35 30 5 6 6 Net periodic pension cost $ 85 $ 81 $ 95 $ 63 $ 91 $ 81 (1) Settlement losses include $5 million for the year ended December 31, 2018 , $11 million for the year ended December 31, 2017 and $15 million for the year ended December 31, 2016 of pension settlement losses for employees who elected lump- sum payments in connection with our Simplify to Grow Program. Retired employees who elected lump-sum payments resulted in net settlement losses of $31 million for our U.S. plans and $4 million for our non-U.S. plans in 2018 , $21 million for our U.S. plans and $6 million for our non-U.S. plans in 2017 and $15 million for our U.S. plans and $6 million for our non-U.S. plans in 2016 . See Note 7, Restructuring Program |
Schedule of Changes in Level 3 Plan Assets | Changes in our Level 3 plan assets, which are recorded in other comprehensive earnings/(losses), included: Asset Category January 1, Net Realized and Unrealized Gains/ (Losses) Net Purchases, Issuances and Settlements Net Transfers Into/(Out of) Level 3 Currency Impact December 31, (in millions) Non-U.S. equity $ — $ — $ — $ — $ — $ — Pooled funds- fixed-income securities — — — — — — Corporate bond and other fixed-income securities 790 62 236 — (56 ) 1,032 Real estate 23 1 (1 ) — (1 ) 22 Private equity and other 3 — — — — 3 Total Level 3 investments $ 816 $ 63 $ 235 $ — $ (57 ) $ 1,057 Asset Category January 1, Net Realized and Unrealized Gains/ (Losses) Net Purchases, Issuances and Settlements Net Transfers Into/(Out of) Level 3 Currency Impact December 31, (in millions) Non-U.S. equity $ 3 $ — $ — $ (3 ) $ — $ — Pooled funds- fixed-income securities 35 — (16 ) (21 ) 2 — Corporate bond and other fixed-income securities 538 10 182 — 60 790 Real estate 22 1 — — — 23 Private equity and other 4 — — (1 ) — 3 Total Level 3 investments $ 602 $ 11 $ 166 $ (25 ) $ 62 $ 816 |
Schedule of Fair Values of Pension Plan Assets | The percentage of fair value of pension plan assets was: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, Asset Category 2018 2017 2018 2017 Equity securities 15 % 15 % 26 % 28 % Fixed-income securities 85 % 85 % 65 % 60 % Real estate — — 6 % 6 % Hedge funds — — 2 % 4 % Private equity — — — % 1 % Cash — — 1 % 1 % Total 100 % 100 % 100 % 100 % As of December 31, 2018 Asset Category Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) U.S. equity securities $ 2 $ 2 $ — $ — Non-U.S. equity securities 5 5 — — Pooled funds - equity securities 1,951 743 1,208 — Total equity securities 1,958 750 1,208 — Government bonds 3,156 62 3,094 — Pooled funds - fixed-income securities 573 429 144 — Corporate bonds and other fixed-income securities 2,050 87 931 1,032 Total fixed-income securities 5,779 578 4,169 1,032 Real estate 130 108 — 22 Private equity 2 — — 2 Cash 44 32 12 — Other 2 1 — 1 Total assets in the fair value hierarchy $ 7,915 $ 1,469 $ 5,389 $ 1,057 Investments measured at net asset value 1,993 Total investments at fair value $ 9,908 As of December 31, 2017 Asset Category Total Fair Quoted Prices Significant Significant (in millions) U.S. equity securities $ 2 $ 2 $ — $ — Non-U.S. equity securities 5 5 — — Pooled funds - equity securities 2,340 848 1,492 — Total equity securities 2,347 855 1,492 — Government bonds 3,237 34 3,203 — Pooled funds - fixed-income securities 602 449 153 — Corporate bonds and other fixed-income securities 2,102 133 1,179 790 Total fixed-income securities 5,941 616 4,535 790 Real estate 156 120 13 23 Private equity 2 — — 2 Cash 86 66 20 — Other 2 1 — 1 Total assets in the fair value hierarchy $ 8,534 $ 1,658 $ 6,060 $ 816 Investments measured at net asset value 2,439 Total investments at fair value $ 10,973 |
Schedule of Estimated Future Benefit Payments | The estimated future benefit payments from our pension plans at December 31, 2018 were (in millions): 2019 2020 2021 2022 2023 2024-2028 U.S. Plans $ 107 $ 91 $ 91 $ 93 $ 92 $ 483 Non-U.S. Plans 357 362 378 382 395 2,098 |
Schedule of Individually Significant Multiemployer Pension Plan | Pension Fund EIN / Pension Plan Number Pension Protection Act Zone Status FIP / RP Status Pending / Implemented Surcharge Imposed Expiration Date of Collective-Bargaining Agreements Bakery and Confectionery Union and Industry International Pension Fund 526118572 Red Implemented Yes 2/29/2016 |
Postretirement Health Care Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations | We used the following weighted-average assumptions to determine our net periodic postretirement health care cost: U.S. Plans Non-U.S. Plans For the Years Ended December 31, For the Years Ended December 31, 2018 2017 2016 2018 2017 2016 Discount rate 3.66% 4.14% 4.60% 4.24% 4.55% 4.77% Health care cost trend rate 6.25% 6.50% 6.50% 5.56% 5.50% 5.50% |
Schedule of Components of Net Costs | Net periodic postretirement health care costs consisted of the following: For the Years Ended December 31, 2018 2017 2016 (in millions) Service cost $ 6 $ 7 $ 12 Interest cost 14 15 20 Amortization: Net loss from experience differences 15 14 10 Prior service credit (1) (39 ) (40 ) (20 ) Net periodic postretirement health care costs $ (4 ) $ (4 ) $ 22 (1) In the fourth quarter of 2016, the prior service credit included a one-time $9 million curtailment gain related to a change in the eligibility requirement resulting in ongoing amortization of $10 million . We continued to amortize the prior service credit and recorded $39 million in 2018 and $40 million in 2017 |
Schedule of Estimated Future Benefit Payments | Our estimated future benefit payments for our postretirement health care plans at December 31, 2018 were (in millions): 2019 2020 2021 2022 2023 2024-2028 U.S. Plans $ 11 $ 12 $ 13 $ 14 $ 15 $ 78 Non-U.S. Plans 5 5 5 5 5 30 |
Schedule of Changes in Accumulated Postemployment Benefit Obligations | Our postretirement health care plans are not funded. The changes in and the amount of the accrued benefit obligation were: As of December 31, 2018 2017 (in millions) Accrued benefit obligation at January 1 $ 435 $ 394 Service cost 6 7 Interest cost 15 15 Benefits paid (19 ) (15 ) Currency (11 ) 8 Assumption changes (39 ) 30 Actuarial losses/(gains) (21 ) (4 ) Accrued benefit obligation at December 31 $ 366 $ 435 |
Schedule of Weighted-Average Assumptions to Determine Benefit Obligations | We used the following weighted-average assumptions to determine our postretirement benefit obligations: U.S. Plans Non-U.S. Plans As of December 31, As of December 31, 2018 2017 2018 2017 Discount rate 4.37 % 3.66 % 4.40 % 4.24 % Health care cost trend rate assumed for next year 6.25 % 6.25 % 5.44 % 5.56 % Ultimate trend rate 5.00 % 4.81 % 5.44 % 5.56 % Year that the rate reaches the ultimate trend rate 2024 2024 2018 2018 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects: As of December 31, 2018 One-Percentage-Point Increase Decrease (in millions) Effect on postretirement benefit obligation $ 37 $ (30 ) Effect on annual service and interest cost 2 (2 ) |
Postemployment Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Our postemployment plans are primarily not funded. The changes in and the amount of the accrued benefit obligation at December 31, 2018 and 2017 were: As of December 31, 2018 2017 (in millions) Accrued benefit obligation at January 1 $ 76 $ 71 Service cost 6 5 Interest cost 4 4 Benefits paid (7 ) (6 ) Assumption changes (1 ) — Actuarial losses/(gains) (4 ) 2 Accrued benefit obligation at December 31 $ 74 $ 76 |
Schedule of Changes in Accumulated Postemployment Benefit Obligations | Net periodic postemployment costs consisted of the following: For the Years Ended December 31, 2018 2017 2016 (in millions) Service cost $ 6 $ 5 $ 7 Interest cost 4 4 6 Amortization of net gains (3 ) (3 ) (1 ) Net periodic postemployment costs $ 7 $ 6 $ 12 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Weighted-Average Black-Scholes Fair Value Assumptions | Our weighted-average Black-Scholes and Lattice Model fair value assumptions were: Risk-Free Interest Rate Expected Life Expected Volatility Expected Dividend Yield Fair Value at Grant Date 2018 2.68 % 5 years 20.96 % 2.02 % $ 8.30 2017 2.04 % 6 years 22.75 % 1.74 % $ 8.57 2016 1.40 % 6 years 23.11 % 1.61 % $ 7.86 |
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, 2016 57,034,108 $ 26.12 $ 1,068 million Annual grant to eligible employees 7,517,290 39.70 Additional options issued 115,800 42.26 Total options granted 7,633,090 39.74 Options exercised (1) (8,883,101 ) 24.09 $ 174 million Options cancelled (2,182,485 ) 35.23 Balance at December 31, 2016 53,601,612 28.02 $ 874 million Annual grant to eligible employees 6,012,140 43.20 Additional options issued 162,880 42.54 Total options granted 6,175,020 43.18 Options exercised (1) (9,431,009 ) 26.17 $ 170 million Options cancelled (1,910,968 ) 38.10 Balance at December 31, 2017 48,434,655 29.92 $ 626 million Annual grant to eligible employees 5,666,530 43.51 Additional options issued 168,306 31.40 Total options granted 5,834,836 43.16 Options exercised (1) (9,333,271 ) 25.16 $ 170 million Options cancelled (1,117,390 ) 42.93 Balance at December 31, 2018 43,818,830 32.36 5 years $ 371 million Exercisable at December 31, 2018 33,902,437 29.35 4 years $ 369 million (1) Cash received from options exercised was $231 million in 2018 , $257 million in 2017 and $221 million in 2016 . The actual tax benefit realized for the tax deductions from the option exercises totaled $21 million in 2018 , $31 million in 2017 and $31 million in 2016 |
Deferred Stock Units, Performance Units and Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Deferred Stock Units, Performance Share Units and Restricted Stock Activity | Our performance share unit, deferred stock unit and 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, 2016 9,418,216 $ 33.71 Annual grant to eligible employees: Feb. 22, 2016 Performance share units 1,406,500 34.35 Deferred stock units 1,040,790 39.70 Additional shares granted (1) 864,851 Various 32.90 Total shares granted 3,312,141 35.65 $ 118 million Vested (2) (3,992,902 ) 28.15 $ 112 million Forfeited (2) (1,143,828 ) 37.58 Balance at December 31, 2016 7,593,627 36.90 Annual grant to eligible employees: Feb. 16, 2017 Performance share units 1,087,010 43.14 Deferred stock units 845,550 43.20 Additional shares granted (1) 1,537,763 Various 42.22 Total shares granted 3,470,323 42.75 $ 148 million Vested (2) (2,622,807 ) 35.78 $ 94 million Forfeited (2) (771,438 ) 38.69 Balance at December 31, 2017 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) 446,752 Various 41.78 Total shares granted 2,283,832 46.72 $ 107 million Vested (2) (2,511,992 ) 38.91 $ 98 million Forfeited (2) (882,535 ) 42.00 Balance at December 31, 2018 6,559,010 42.19 (1) Includes performance share units and deferred stock units. (2) Includes performance share units, deferred stock units and restricted stock. The actual tax benefit realized for the tax deductions from the shares vested totaled $3 million in 2018 , $7 million in 2017 and $18 million in 2016 . (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. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Authorized Common Stock Repurchase Programs | Shares of Common Stock issued, in treasury and outstanding were: Shares Issued Treasury Shares Shares Outstanding Balance at January 1, 2016 1,996,537,778 (416,504,624 ) 1,580,033,154 Shares repurchased — (61,972,713 ) (61,972,713 ) Exercise of stock options and issuance of other stock awards — 10,305,100 10,305,100 Balance at December 31, 2016 1,996,537,778 (468,172,237 ) 1,528,365,541 Shares repurchased — (50,598,902 ) (50,598,902 ) Exercise of stock options and issuance of other stock awards — 10,369,445 10,369,445 Balance at December 31, 2017 1,996,537,778 (508,401,694 ) 1,488,136,084 Shares repurchased — (47,258,884 ) (47,258,884 ) Exercise of stock options and issuance of other stock awards — 10,122,655 10,122,655 Balance at December 31, 2018 1,996,537,778 (545,537,923 ) 1,450,999,855 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Rental Commitments | As of December 31, 2018 , minimum rental commitments under non-cancelable operating leases in effect at year-end were (in millions): 2019 2020 2021 2022 2023 Thereafter Total $ 208 $ 165 $ 114 $ 79 $ 57 $ 157 $ 780 |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 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 $169 million in 2018 , $174 million in 2017 and $250 million in 2016 . For the Years Ended December 31, 2018 2017 2016 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (7,740 ) $ (8,910 ) $ (8,006 ) Currency translation adjustments (698 ) 984 (843 ) Reclassification to net earnings related to: Equity method investment transactions 6 — 57 Tax (expense)/benefit (173 ) 214 (135 ) Other comprehensive earnings/(losses) (865 ) 1,198 (921 ) Less: (earnings)/loss attributable to noncontrolling interests 2 (28 ) 17 Balance at end of period (8,603 ) (7,740 ) (8,910 ) Pension and Other Benefit Plans: Balance at beginning of period $ (2,144 ) $ (2,087 ) $ (1,934 ) Net actuarial gain/(loss) arising during period 36 (71 ) (491 ) Tax (expense)/benefit on net actuarial gain/(loss) (16 ) 50 70 Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs 168 174 150 Settlement losses 40 38 36 Tax (expense)/benefit on reclassifications (1) (36 ) (65 ) (46 ) Currency impact 92 (183 ) 128 Other comprehensive earnings/(losses) 284 (57 ) (153 ) Balance at end of period (1,860 ) (2,144 ) (2,087 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (113 ) $ (121 ) $ (46 ) Net derivative gains/(losses) (58 ) (17 ) (151 ) Tax (expense)/benefit on net derivative gain/(loss) 6 9 20 Losses/(gains) reclassified into net earnings: Currency exchange contracts - forecasted transactions (2) — 4 3 Commodity contracts (2) — 29 9 Interest rate contracts (3) (11 ) — 83 Tax (expense)/benefit on reclassifications (1) 2 (6 ) (42 ) Currency impact 7 (11 ) 3 Other comprehensive earnings/(losses) (54 ) 8 (75 ) Balance at end of period (167 ) (113 ) (121 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (9,997 ) $ (11,118 ) $ (9,986 ) Total other comprehensive earnings/(losses) (635 ) 1,149 (1,149 ) Less: (earnings)/loss attributable to noncontrolling interests 2 (28 ) 17 Other comprehensive earnings/(losses) attributable to Mondelēz International (633 ) 1,121 (1,132 ) Balance at end of period $ (10,630 ) $ (9,997 ) $ (11,118 ) (1) Taxes reclassified to earnings are recorded within the provision for income taxes. (2) These reclassified gains or losses are recorded within cost of sales. (3) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | Earnings/(losses) from continuing operations before income taxes and the provision for income taxes consisted of: For the Years Ended December 31, 2018 2017 2016 (in millions) Earnings/(losses) from continuing operations before income taxes: United States $ (170 ) $ 354 $ (364 ) Outside United States 3,012 2,770 1,818 $ 2,842 $ 3,124 $ 1,454 Provision for income taxes: United States federal: Current $ (34 ) $ 1,322 $ (227 ) Deferred 171 (1,274 ) 127 137 48 (100 ) State and local: Current 23 32 7 Deferred 61 30 7 84 62 14 Total United States 221 110 (86 ) Outside United States: Current 552 541 490 Deferred — 15 (290 ) Total outside United States 552 556 200 Total provision for income taxes $ 773 $ 666 $ 114 |
Schedule of Effective Income Tax Rate Reconciliation | The effective income tax rate on pre-tax earnings differed from the U.S. federal statutory rate as follows: For the Years Ended December 31, 2018 2017 2016 U.S. federal statutory rate 21.0 % 35.0 % 35.0 % Increase/(decrease) resulting from: State and local income taxes, net of federal tax benefit 0.4 % 0.8 % 0.8 % Foreign rate differences (1.9 )% (10.8 )% (18.6 )% Changes in judgment on realizability of deferred tax assets (0.4 )% 3.2 % — Reversal of other tax accruals no longer required (1.8 )% (1.7 )% (7.6 )% Tax accrual on investment in Keurig (including tax impact of the gain from the KDP transaction) 8.4 % 1.2 % 1.2 % Excess tax benefits from equity compensation (0.8 )% (1.2 )% — Tax legislation (non-U.S. tax reform) 0.3 % (2.6 )% (4 )% U.S. tax reform - deferred benefit from tax rate change — (41.5 )% — U.S. tax reform - transition tax (1.3 )% 42.2 % — U.S. tax reform - changes in indefinite reinvestment assertion 2.1 % (2.0 )% — Foreign tax provisions under TCJA (GILTI, FDII and BEAT) (1) 1.1 % — — Other 0.1 % (1.3 )% 1.0 % Effective tax rate 27.2 % 21.3 % 7.8 % (1) |
Schedule of Deferred Tax Assets and Liabilities Temporary Differences | Tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of: As of December 31, 2018 2017 (in millions) Deferred income tax assets: Accrued postretirement and postemployment benefits $ 147 $ 191 Accrued pension costs 349 313 Other employee benefits 147 155 Accrued expenses 283 269 Loss carryforwards 707 773 Tax credit carryforwards 747 370 Other 302 342 Total deferred income tax assets 2,682 2,413 Valuation allowance (1,153 ) (853 ) Net deferred income tax assets $ 1,529 $ 1,560 Deferred income tax liabilities: Intangible assets $ (3,861 ) $ (3,977 ) Property, plant and equipment (473 ) (452 ) Other (492 ) (153 ) Total deferred income tax liabilities (4,826 ) (4,582 ) Net deferred income tax liabilities $ (3,297 ) $ (3,022 ) |
Schedule of Changes in Unrecognized Tax Benefit | The changes in our unrecognized tax benefits were: For the Years Ended December 31, 2018 2017 2016 (in millions) January 1 $ 579 $ 610 $ 756 Increases from positions taken during prior periods 36 33 18 Decreases from positions taken during prior periods (43 ) (93 ) (123 ) Increases from positions taken during the current period 57 64 90 Decreases relating to settlements with taxing authorities (45 ) (54 ) (75 ) Reductions resulting from the lapse of the applicable statute of limitations (31 ) (29 ) (43 ) Currency/other (37 ) 48 (13 ) December 31 $ 516 $ 579 $ 610 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Years Ended December 31, 2018 2017 2016 (in millions, except per share data) Net earnings $ 3,395 $ 2,842 $ 1,645 Noncontrolling interest (earnings) (14 ) (14 ) (10 ) Net earnings attributable to Mondelēz International $ 3,381 $ 2,828 $ 1,635 Weighted-average shares for basic EPS 1,472 1,513 1,556 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 14 18 17 Weighted-average shares for diluted EPS 1,486 1,531 1,573 Basic earnings per share attributable to Mondelēz International $ 2.30 $ 1.87 $ 1.05 Diluted earnings per share attributable to Mondelēz International $ 2.28 $ 1.85 $ 1.04 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Net Revenues by Segment | Our segment net revenues and earnings, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2018 2017 2016 (in millions) Net revenues: Latin America $ 3,202 $ 3,566 $ 3,392 AMEA 5,729 5,739 5,816 Europe 10,122 9,794 9,755 North America 6,885 6,797 6,960 Net revenues $ 25,938 $ 25,896 $ 25,923 |
Schedule of Operating Income by Segment | Our segment net revenues and earnings, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2018 2017 2016 (in millions) Earnings before income taxes: Operating income: Latin America $ 410 $ 564 $ 272 AMEA 702 514 505 Europe 1,734 1,610 1,198 North America 849 1,144 1,128 Unrealized gains/(losses) on hedging activities (mark-to-market impacts) 141 (96 ) (94 ) General corporate expenses (335 ) (282 ) (287 ) Amortization of intangibles (176 ) (178 ) (176 ) Net gain on divestitures — 186 9 Acquisition-related costs (13 ) — (1 ) Operating income 3,312 3,462 2,554 Benefit plan non-service income (1) 50 44 15 Interest and other expense, net (520 ) (382 ) (1,115 ) Earnings before income taxes $ 2,842 $ 3,124 $ 1,454 (1) |
Schedule of Total Assets, Depreciation Expense and Capital Expenditure by Segment | Total assets, depreciation expense and capital expenditures by segment, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2018 2017 2016 (in millions) Total assets: Latin America (1) $ 4,699 $ 4,948 $ 5,156 AMEA (1) 9,571 9,883 10,031 Europe (1) 19,426 21,611 19,934 North America (1) 21,015 20,709 20,694 Equity method investments 7,123 6,193 5,553 Unallocated assets and adjustments (2) 895 (387 ) 138 Total assets $ 62,729 $ 62,957 $ 61,506 (1) Segment assets do not reflect outstanding intercompany asset balances as intercompany accounts are eliminated at a segment level. (2) Unallocated assets consist primarily of cash and cash equivalents, deferred income taxes, centrally held property, plant and equipment, prepaid pension assets and derivative financial instrument balances. Final adjustments for jurisdictional netting of deferred tax assets and liabilities is done at a consolidated level. For the Years Ended December 31, 2018 2017 2016 (in millions) Depreciation expense: Latin America $ 97 $ 107 $ 92 AMEA 159 157 161 Europe 248 239 253 North America 131 135 141 Total depreciation expense $ 635 $ 638 $ 647 For the Years Ended December 31, 2018 2017 2016 (in millions) Capital expenditures: Latin America $ 261 $ 226 $ 321 AMEA 277 280 349 Europe 326 278 294 North America 231 230 260 Total capital expenditures $ 1,095 $ 1,014 $ 1,224 |
Schedule of Net Revenues by Geographic Area | Geographic data for net revenues (recognized in the countries where products are sold) and long-lived assets, excluding deferred tax, goodwill, intangible assets and equity method investments, were: For the Years Ended December 31, 2018 2017 2016 (in millions) Net revenues: United States $ 6,401 $ 6,275 $ 6,329 Other 19,537 19,621 19,594 Total net revenues $ 25,938 $ 25,896 $ 25,923 |
Schedule of Long-lived Assets by Geographic Area | As of December 31, 2018 2017 2016 (in millions) Long-lived assets: United States $ 1,481 $ 1,468 $ 1,508 Other 7,539 7,733 7,229 Total long-lived assets $ 9,020 $ 9,201 $ 8,737 |
Schedule of Net Revenues by Product Category | Net revenues by product category, reflecting our current segment structure for all periods presented, were: For the Year Ended December 31, 2018 Latin AMEA Europe North America Total (in millions) Biscuits $ 727 $ 1,724 $ 3,127 $ 5,607 $ 11,185 Chocolate 747 2,080 5,083 267 8,177 Gum & Candy 865 879 736 1,011 3,491 Beverages 533 553 98 — 1,184 Cheese & Grocery 330 493 1,078 — 1,901 Total net revenues $ 3,202 $ 5,729 $ 10,122 $ 6,885 $ 25,938 For the Year Ended December 31, 2017 (1) Latin AMEA Europe North America Total (in millions) Biscuits $ 779 $ 1,637 $ 2,944 $ 5,479 $ 10,839 Chocolate 862 2,008 4,869 293 8,032 Gum & Candy 919 919 775 1,025 3,638 Beverages 665 569 121 — 1,355 Cheese & Grocery 341 606 1,085 — 2,032 Total net revenues $ 3,566 $ 5,739 $ 9,794 $ 6,797 $ 25,896 For the Year Ended December 31, 2016 (1) Latin AMEA Europe North America Total (in millions) Biscuits $ 734 $ 1,592 $ 2,765 $ 5,565 $ 10,656 Chocolate 743 1,897 4,778 255 7,673 Gum & Candy 938 953 916 1,140 3,947 Beverages 657 611 177 — 1,445 Cheese & Grocery 320 763 1,119 — 2,202 Total net revenues $ 3,392 $ 5,816 $ 9,755 $ 6,960 $ 25,923 (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. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Summary of Operating Results | Our summarized operating results by quarter are detailed below. 2018 Quarters First Second Third Fourth (in millions, except per share data) Net revenues $ 6,765 $ 6,112 $ 6,288 $ 6,773 Gross profit 2,849 2,540 2,414 2,549 Provision for income taxes (337 ) (15 ) (310 ) (111 ) Gain on equity method investment transactions — — 757 21 Equity method investment net earnings 232 87 80 149 Net earnings (1) $ 1,052 $ 320 $ 1,197 $ 826 Noncontrolling interest (6 ) (2 ) (3 ) (3 ) Net earnings attributable to Mondelēz International $ 1,046 $ 318 $ 1,194 $ 823 Weighted-average shares for basic EPS 1,489 1,475 1,466 1,457 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 16 13 14 13 Weighted-average shares for diluted EPS 1,505 1,488 1,480 1,470 Per share data: Basic EPS attributable to Mondelēz International: $ 0.70 $ 0.22 $ 0.81 $ 0.56 Diluted EPS attributable to Mondelēz International: $ 0.70 $ 0.21 $ 0.81 $ 0.56 Dividends declared $ 0.22 $ 0.22 $ 0.26 $ 0.26 2017 Quarters First Second Third Fourth (in millions, except per share data) Net revenues $ 6,414 $ 5,986 $ 6,530 $ 6,966 Gross profit 2,518 2,314 2,549 2,653 Provision for income taxes (154 ) (84 ) (272 ) (156 ) Gain on equity method investment transactions — — — 40 Equity method investment net earnings 90 67 92 95 Net earnings (1) $ 657 $ 500 $ 982 $ 703 Noncontrolling interest (3 ) (2 ) (1 ) (8 ) Net earnings attributable to Mondelēz International $ 654 $ 498 $ 981 $ 695 Weighted-average shares for basic EPS 1,529 1,519 1,507 1,497 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 21 20 17 16 Weighted-average shares for diluted EPS 1,550 1,539 1,524 1,513 Per share data: Basic EPS attributable to Mondelēz International: $ 0.43 $ 0.33 $ 0.65 $ 0.46 Diluted EPS attributable to Mondelēz International: $ 0.42 $ 0.32 $ 0.64 $ 0.46 Dividends declared $ 0.19 $ 0.19 $ 0.22 $ 0.22 (1) |
Schedule of Pre-Tax (Charges)/Gains in Earnings From Continuing Operations | During 2018 and 2017 , we recorded the following pre-tax (charges)/benefits in earnings from continuing operations: 2018 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (54 ) $ (111 ) $ (125 ) $ (99 ) Divestiture-related costs 3 — — (2 ) Gain on equity method investment transaction — — 757 21 Gain/(loss) related to interest rate swaps 14 (5 ) 1 — Loss on early extinguishment of debt and related expenses — (140 ) — — Impact from the resolution of tax matters — (15 ) — 26 Impact from pension participation changes — (409 ) (3 ) (17 ) $ (37 ) $ (680 ) $ 630 $ (71 ) 2017 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (166 ) $ (176 ) $ (182 ) $ (118 ) Net gain on divestitures — (3 ) 187 2 Divestiture-related costs (19 ) (9 ) 2 (8 ) Loss on early extinguishment of debt and related expenses — (11 ) — — Impact from the resolution of tax matters 58 — 215 8 $ (127 ) $ (199 ) $ 222 $ (116 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018USD ($)country | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segmentcountry | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2019USD ($) | Jul. 01, 2018 | |||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Number of countries in which products are sold (over 150) | country | 150 | 150 | |||||||||||||
Number of operating segments | segment | 4 | ||||||||||||||
Net revenues | $ 6,773 | $ 6,288 | $ 6,112 | $ 6,765 | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 25,938 | $ 25,896 | [1] | $ 25,923 | [1] | ||
Number of countries in which entity operates (over 80) | country | 80 | 80 | |||||||||||||
Outstanding principal amount of receivables sold under factoring arrangement | $ 819 | $ 843 | $ 819 | 843 | 677 | ||||||||||
Advertising expense | 1,173 | 1,248 | 1,396 | ||||||||||||
Research and development expense | 362 | 366 | 376 | ||||||||||||
Europe | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Weighted-average cost of capital rate | 7.30% | ||||||||||||||
North America | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Weighted-average cost of capital rate | 7.30% | ||||||||||||||
Latin America | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Risk-rated discount rate | 10.30% | ||||||||||||||
AMEA | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Risk-rated discount rate | 10.30% | ||||||||||||||
Minimum | ASU 2016-02 | Scenario, Forecast | Subsequent Event | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
ROU assets for operating leases | $ 650 | ||||||||||||||
Operating lease liabilities | 650 | ||||||||||||||
Current operating lease liabilities | 240 | ||||||||||||||
Long-term operating lease liabilities | 410 | ||||||||||||||
Maximum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Incremental cost of factoring receivables | $ 10 | $ 10 | $ 10 | ||||||||||||
Maximum | ASU 2016-02 | Scenario, Forecast | Subsequent Event | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
ROU assets for operating leases | 800 | ||||||||||||||
Operating lease liabilities | 800 | ||||||||||||||
Current operating lease liabilities | 290 | ||||||||||||||
Long-term operating lease liabilities | $ 510 | ||||||||||||||
Machinery and equipment | Minimum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Useful life, in years | 3 years | ||||||||||||||
Machinery and equipment | Maximum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Useful life, in years | 20 years | ||||||||||||||
Buildings and building improvements | Maximum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Useful life, in years | 40 years | ||||||||||||||
Software | Maximum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Useful life, in years | 7 years | ||||||||||||||
Argentina | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Net monetary liabilities | $ 1 | $ 1 | |||||||||||||
Net revenues | $ 469 | ||||||||||||||
Percentage of consolidated net revenues | 1.80% | ||||||||||||||
U.K. | Geographic Concentration Risk | Net Revenues | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Concentration risk percentage | 8.60% | ||||||||||||||
Selling, general and administrative expenses | Argentina | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Remeasurement loss due to inflationary accounting | $ 11 | ||||||||||||||
[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 (Details) € in Millions, £ in Millions, $ in Millions, ₫ in Billions, ¥ in Billions | Jun. 07, 2018USD ($) | Dec. 28, 2017USD ($) | Dec. 28, 2017JPY (¥) | Oct. 23, 2017EUR (€) | Oct. 23, 2017USD ($) | Aug. 17, 2017EUR (€) | Aug. 17, 2017USD ($) | Jul. 04, 2017AUD ($) | Jul. 04, 2017USD ($) | Apr. 28, 2017EUR (€) | Apr. 28, 2017USD ($) | Dec. 01, 2016USD ($) | Nov. 09, 2016USD ($) | Nov. 02, 2016GBP (£) | Nov. 02, 2016USD ($) | Oct. 13, 2016EUR (€) | Oct. 13, 2016USD ($) | Aug. 26, 2016USD ($) | Aug. 22, 2016VND (₫) | Aug. 22, 2016USD ($) | May 02, 2016EUR (€) | May 02, 2016USD ($) | Mar. 31, 2016USD ($) | May 31, 2016USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2017VND (₫) | Dec. 31, 2017USD ($) | Jul. 15, 2015 | ||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Payment to acquire business, net of cash received | $ 528,000,000 | $ 0 | $ 246,000,000 | |||||||||||||||||||||||||||||||||||||||||
Goodwill | $ 20,725,000,000 | $ 21,085,000,000 | $ 20,276,000,000 | 20,725,000,000 | 21,085,000,000 | 20,276,000,000 | $ 21,085,000,000 | |||||||||||||||||||||||||||||||||||||
Acquisition-related costs | 13,000,000 | 0 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||
Net gain on divestitures | 2,000,000 | $ 187,000,000 | $ (3,000,000) | $ 0 | 0 | 186,000,000 | 9,000,000 | |||||||||||||||||||||||||||||||||||||
Divestiture-related costs | (2,000,000) | $ 0 | $ 0 | $ 3,000,000 | (8,000,000) | 2,000,000 | (9,000,000) | (19,000,000) | ||||||||||||||||||||||||||||||||||||
Proceeds from sale of property, plant and equipment and other | 398,000,000 | 109,000,000 | 138,000,000 | |||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 68,000,000 | 109,000,000 | 137,000,000 | |||||||||||||||||||||||||||||||||||||||||
Net revenues | 6,773,000,000 | 6,288,000,000 | 6,112,000,000 | $ 6,765,000,000 | 6,966,000,000 | $ 6,530,000,000 | $ 5,986,000,000 | $ 6,414,000,000 | 25,938,000,000 | 25,896,000,000 | [1] | 25,923,000,000 | [1] | |||||||||||||||||||||||||||||||
Operating income (loss) | 3,312,000,000 | 3,462,000,000 | 2,554,000,000 | |||||||||||||||||||||||||||||||||||||||||
Trademarks | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | $ 68,000,000 | 70,000,000 | 98,000,000 | |||||||||||||||||||||||||||||||||||||||||
AMEA | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 3,210,000,000 | 3,371,000,000 | 3,210,000,000 | 3,371,000,000 | 3,371,000,000 | |||||||||||||||||||||||||||||||||||||||
Net revenues | 5,729,000,000 | 5,739,000,000 | [1] | 5,816,000,000 | [1] | |||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 702,000,000 | 514,000,000 | 505,000,000 | |||||||||||||||||||||||||||||||||||||||||
North America | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 9,173,000,000 | 8,933,000,000 | 9,173,000,000 | 8,933,000,000 | 8,933,000,000 | |||||||||||||||||||||||||||||||||||||||
Net revenues | 6,885,000,000 | 6,797,000,000 | [1] | 6,960,000,000 | [1] | |||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 849,000,000 | 1,144,000,000 | 1,128,000,000 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 10,000,000 | $ 40,000,000 | ||||||||||||||||||||||||||||||||||||||||||
North America | Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of property | 6,000,000 | 33,000,000 | ||||||||||||||||||||||||||||||||||||||||||
North America | Trademarks | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 38,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Europe | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 7,519,000,000 | 7,880,000,000 | 7,519,000,000 | 7,880,000,000 | 7,880,000,000 | |||||||||||||||||||||||||||||||||||||||
Net revenues | 10,122,000,000 | 9,794,000,000 | [1] | 9,755,000,000 | [1] | |||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 1,734,000,000 | 1,610,000,000 | 1,198,000,000 | |||||||||||||||||||||||||||||||||||||||||
Europe | Trademarks | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 19,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Latin America | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 823,000,000 | 901,000,000 | 823,000,000 | 901,000,000 | 901,000,000 | |||||||||||||||||||||||||||||||||||||||
Net revenues | 3,202,000,000 | 3,566,000,000 | [1] | 3,392,000,000 | [1] | |||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 410,000,000 | 564,000,000 | 272,000,000 | |||||||||||||||||||||||||||||||||||||||||
Corporate | Corporate Aircraft | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | 3,000,000 | 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Corporate | Selling, general and administrative expenses | Corporate Aircraft | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of property | 1,000,000 | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Disposed of by Sale | The Kraft Heinz Company | Europe | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | € 2 | $ 3,000,000 | € 9 | $ 11,000,000 | ||||||||||||||||||||||||||||||||||||||||
Japan | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill of disposal group | 5,000,000 | 5,000,000 | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||
Indefinite-lived Intangible assets, divested | 24,000,000 | 24,000,000 | 24,000,000 | |||||||||||||||||||||||||||||||||||||||||
Japan | Discontinued Operations, Disposed of by Sale | AMEA | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 24,000,000 | ¥ 2.8 | ||||||||||||||||||||||||||||||||||||||||||
Australia and New Zealand | Discontinued Operations, Disposed of by Sale | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 456 | $ 347,000,000 | ||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||
Net gain on divestitures | $ 247 | $ 187,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Divestiture-related costs | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on foreign currency derivatives | (3,000,000) | |||||||||||||||||||||||||||||||||||||||||||
Inventory-related working capital adjustment | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||||||||||||||||||||||||||||||||||
Gain (loss) on inventory working capital adjustment | $ 190,000,000 | |||||||||||||||||||||||||||||||||||||||||||
France | Discontinued Operations, Disposed of by Sale | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [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 | |||||||||||||||||||||||||||||||||||||||||||
Net gain on divestitures | (3,000,000) | |||||||||||||||||||||||||||||||||||||||||||
Divestiture-related costs | 27,000,000 | 84,000,000 | ||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||
France | Discontinued Operations, Disposed of by Sale | Trademarks | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | $ 14,000,000 | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Belgium | Discontinued Operations, Disposed of by Sale | Confectionery Business in Costa Rica and Chocolate Factory in Belgium | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Divestiture-related costs | € 13 | 14,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Gain or loss on deconsolidation | 65 | 68,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Fixed asset impairment charge | 30 | 31,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Disposal group, not discontinued operation, gain (loss) on disposal | € 22 | 23,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Costa Rica | Discontinued Operations, Disposed of by Sale | Confectionery Business in Costa Rica and Chocolate Factory in Belgium | Latin America | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 28,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Divestiture-related costs | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Gain or loss on deconsolidation | 9,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, divested | 11,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Goodwill of disposal group | 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Inventory, divested | $ 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||
United States | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 6,401,000,000 | 6,275,000,000 | 6,329,000,000 | |||||||||||||||||||||||||||||||||||||||||
United States | Trademarks | Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | $ 7,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Finland | Discontinued Operations, Disposed of by Sale | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | € 14 | $ 16,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Divestiture-related costs | $ 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property, plant and equipment and other | € 2 | $ 2,000,000 | € 12 | 14,000,000 | ||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Gain after transaction costs, net of tax | 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived Intangible assets, divested | 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Finland | Discontinued Operations, Disposed of by Sale | Maximum | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Other assets, divested | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Finland | Discontinued Operations, Disposed of by Sale | Europe | Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Gain after transaction costs, net of tax | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Vietnam | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Cash paid for acquisition | ₫ 12,404 | $ 569,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Net revenues | 71,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 80.00% | |||||||||||||||||||||||||||||||||||||||||||
Percentage of remaining equity interest acquired | 20.00% | 20.00% | ||||||||||||||||||||||||||||||||||||||||||
Escrow deposit | $ 70,000,000 | 9,000,000 | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||
Escrowed retained amount | 20,000,000 | 4,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Payment for the non-compete and continued consulting agreements | ₫ 759 | $ 35,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Vietnam | Final Valuation | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 385,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment acquired | 49,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Inventory acquired | 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Intangible assets acquired | 86,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Other net assets (liabilities) acquired | $ 31,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Vietnam | Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Integration-related costs | 4,000,000 | 3,000,000 | 7,000,000 | |||||||||||||||||||||||||||||||||||||||||
Russia | Discontinued Operations, Disposed of by Sale | Manufacturing Plant | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Fixed asset impairment charge | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Amount of expenses associated with property disposal | 12,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Tate’s Bake Shop | North America | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Payment to acquire business, net of cash received | $ 528,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Definite-life intangible assets acquired | 45,000,000 | 45,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived intangible assets acquired | 205,000,000 | 205,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Goodwill | 298,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment acquired | 16,000,000 | 16,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Inventory acquired | 5,000,000 | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Accounts receivables acquired | 9,000,000 | 9,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Current liabilities assumed | 6,000,000 | 6,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Deferred tax liabilities assumed | $ 44,000,000 | 44,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Incremental net revenues from acquisition | 52,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Incremental operating income from acquisition | 7,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Acquisition-related costs | $ 13,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Intangible assets acquired | $ 250,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Burton's Biscuit Company | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||
Definite-life intangible assets acquired | $ 66,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Goodwill | 173,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment acquired | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Inventory acquired | 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||
Cash paid for acquisition | £ 199 | $ 245,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Net revenues | 59,000,000 | 16,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $ 8,000,000 | $ 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||
[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. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 726 | $ 711 |
Finished product | 1,987 | 1,975 |
Inventories, gross | 2,713 | 2,686 |
Inventory reserves | (121) | (129) |
Inventories, net | $ 2,592 | $ 2,557 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 15,245 | $ 15,680 |
Accumulated depreciation | (6,763) | (7,003) |
Property, plant and equipment, net | 8,482 | 8,677 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 424 | 458 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,984 | 2,979 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,943 | 11,195 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 894 | $ 1,048 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Total capital expenditures | $ 1,095 | $ 1,014 | $ 1,224 |
Accrued capital expenditures unpaid | 331 | 357 | 343 |
Asset impairments and accelerated depreciation | 141 | 334 | 446 |
Simplify to Grow Program | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairments and accelerated depreciation | $ 59 | $ 206 | $ 301 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Asset Impairment and Exit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | $ 141 | $ 334 | $ 446 |
Simplify to Grow Program | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | 59 | 206 | 301 |
Simplify to Grow Program | Latin America | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | 25 | 36 | 22 |
Simplify to Grow Program | AMEA | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | 5 | 81 | 44 |
Simplify to Grow Program | Europe | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | 15 | 58 | 122 |
Simplify to Grow Program | North America | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | 13 | 30 | 111 |
Simplify to Grow Program | Corporate | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | $ 1 | $ 1 | $ 2 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill by Reportable Operating Segment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | |||
Goodwill | $ 20,725 | $ 21,085 | $ 20,276 |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 823 | 901 | |
AMEA | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 3,210 | 3,371 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 7,519 | 7,880 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 9,173 | $ 8,933 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Non-amortizable intangible assets | $ 17,201 | $ 17,671 | |
Amortizable intangible assets | 2,328 | 2,386 | |
Total intangible assets, gross | 19,529 | 20,057 | $ 19,319 |
Accumulated amortization | (1,527) | (1,418) | |
Intangible assets, net | $ 18,002 | $ 18,639 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($)brand | Dec. 31, 2018USD ($)brand | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)product | Jun. 30, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Amortization expense for intangible assets | $ 176,000,000 | $ 178,000,000 | $ 176,000,000 | ||
Estimated amortization expense for intangible assets in year 1 | 170,000,000 | ||||
Estimated amortization expense for intangible assets in year 2 | 170,000,000 | ||||
Estimated amortization expense for intangible assets in year 3 | 85,000,000 | ||||
Estimated amortization expense for intangible assets in year 4 | 85,000,000 | ||||
Estimated amortization expense for intangible assets in year 5 | 85,000,000 | ||||
Goodwill, divestitures | 0 | 114,000,000 | |||
Intangible assets, divestitures | 0 | 100,000,000 | |||
Goodwill | 20,725,000,000 | 21,085,000,000 | 20,276,000,000 | ||
Business acquisition, goodwill adjustments | 15,000,000 | ||||
Intangible assets acquired, adjustments | 7,000,000 | ||||
Intangible asset impairment | 68,000,000 | 109,000,000 | 137,000,000 | ||
Impairment of goodwill | 0 | 0 | $ 0 | ||
North America | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 1,000,000 | ||||
North America | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill | $ 9,173,000,000 | 8,933,000,000 | |||
Biscuits | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Number of discontinued products | product | 4 | ||||
Candy | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Number of discontinued products | product | 1 | ||||
Trademarks | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | $ 68,000,000 | 70,000,000 | $ 98,000,000 | ||
Number of impaired trademarks | brand | 5 | ||||
Number of trademarks with fair value in excess of book value, 10% or less | brand | 7 | ||||
Book value of trademarks with fair value in excess of book value, 10% or less | $ 538,000,000 | ||||
Trademarks | Europe | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 11,000,000 | 22,000,000 | |||
Trademarks | North America | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 2,000,000 | 32,000,000 | |||
Trademarks | AMEA | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 52,000,000 | 41,000,000 | |||
Trademarks | Latin America | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 5,000,000 | 3,000,000 | |||
Trademarks | North America | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 38,000,000 | ||||
Trademarks | Gum, Chocolate, Biscuits and Candy | Europe | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | $ 45,000,000 | ||||
Trademarks | Gum, Chocolate, Biscuits and Candy | North America | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 14,000,000 | ||||
Trademarks | Gum, Chocolate, Biscuits and Candy | AMEA | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | $ 9,000,000 | ||||
Tate’s Bake Shop | North America | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill | $ 298,000,000 | ||||
Intangible assets acquired | $ 250,000,000 | ||||
Equity Method Investments | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible assets | 14,000,000 | ||||
Sale of Confectionery Business in France | Trademarks | Europe | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | $ 20,000,000 | ||||
France | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill, divestitures | 23,000,000 | ||||
Intangible assets, divestitures | 62,000,000 | ||||
Australia and New Zealand | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill, divestitures | 86,000,000 | ||||
Japan | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill of disposal group | 5,000,000 | ||||
Intangible assets | $ 24,000,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | |||
Balance at January 1 | $ 21,085,000,000 | $ 20,276,000,000 | |
Currency | (658,000,000) | 909,000,000 | |
Divestitures | 0 | (114,000,000) | |
Acquisitions | 298,000,000 | 15,000,000 | |
Asset impairments | 0 | 0 | $ 0 |
Other | 0 | (1,000,000) | |
Balance at December 31 | 20,725,000,000 | 21,085,000,000 | 20,276,000,000 |
Intangible Assets, at cost | |||
Balance at January 1 | 20,057,000,000 | 19,319,000,000 | |
Currency | (710,000,000) | 954,000,000 | |
Divestitures | 0 | (100,000,000) | |
Acquisitions | 250,000,000 | (7,000,000) | |
Asset impairments | (68,000,000) | (109,000,000) | (137,000,000) |
Other | 0 | 0 | |
Balance at December 31 | $ 19,529,000,000 | $ 20,057,000,000 | $ 19,319,000,000 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) € in Millions, $ in Millions | Oct. 02, 2017USD ($) | Jul. 05, 2016USD ($) | Jun. 30, 2016 | Mar. 07, 2016EUR (€) | Mar. 07, 2016USD ($) | Mar. 03, 2016USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016EUR (€) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 09, 2018director | Jul. 19, 2016EUR (€) | Jul. 02, 2015 |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Equity method investments | $ 7,123 | $ 6,193 | $ 7,123 | $ 6,193 | |||||||||||||||||||
Equity method investment net earnings | 149 | $ 80 | $ 87 | $ 232 | 95 | $ 92 | $ 67 | $ 90 | 548 | 344 | $ 262 | ||||||||||||
Dividends received on equity method investments | 180 | 152 | 75 | ||||||||||||||||||||
Pre-tax gain on equity method investment transaction | $ 21 | 757 | $ 0 | $ 0 | $ 40 | $ 0 | $ 0 | $ 0 | $ 778 | 40 | 43 | ||||||||||||
Tax Authority, Spain | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Income tax examination, penalties and interest | € 30 | $ 34 | |||||||||||||||||||||
Acorn Holdings BV | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Percentage of voting interest acquired by other parties | 73.50% | ||||||||||||||||||||||
JDE | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Mondelēz International ownership interests | 26.50% | 26.40% | 26.40% | 43.50% | |||||||||||||||||||
Equity method investment, voting interest percentage | 26.50% | 26.50% | |||||||||||||||||||||
Equity method investment, profit and dividend sharing interest percentage | 26.30% | 26.30% | |||||||||||||||||||||
Cash dividends received from equity method investments | $ 73 | 49 | |||||||||||||||||||||
Proceeds from divestiture of businesses | $ 275 | ||||||||||||||||||||||
Gain on equity method investment transaction | $ 43 | ||||||||||||||||||||||
JDE | Tax Authority, Spain | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Income tax examination, penalties and interest of equity method investment | € | € 114 | ||||||||||||||||||||||
JDE | Class C, D And E | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Maximum dilution of equity method investment total shares percentage | 2.00% | ||||||||||||||||||||||
JDE | Equity Earnings | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Equity method investment net earnings | 230 | 129 | 100 | ||||||||||||||||||||
JDE | Acorn Holdings BV | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Equity method investment, amount sold | € 1,700 | $ 2,000 | |||||||||||||||||||||
Keurig | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Equity method investments | $ 1,600 | ||||||||||||||||||||||
Mondelēz International ownership interests | 24.20% | ||||||||||||||||||||||
Shareholder loan receivable | $ 400 | ||||||||||||||||||||||
Interest rate percentage on shareholder loan receivable | 5.50% | 5.50% | |||||||||||||||||||||
Shareholder loan receivable term | 7 years | 7 years | |||||||||||||||||||||
Shareholder loan interest payment received | 12 | 30 | 14 | ||||||||||||||||||||
Dividends received on equity method investments | 34 | 14 | 4 | ||||||||||||||||||||
Keurig | Interest Income | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Equity method investment net earnings | 12 | 24 | 20 | ||||||||||||||||||||
Keurig | Acorn Holdings BV | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Consideration transferred on business acquisition | $ 13,900 | ||||||||||||||||||||||
Keurig | Keurig with Dr Pepper Snapple Group, Inc. | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Mondelēz International ownership interests | 24.20% | ||||||||||||||||||||||
Deferred tax expense related to gain on equity method investment transaction | $ 8 | 184 | $ 192 | ||||||||||||||||||||
KDP | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Mondelēz International ownership interests | 13.80% | 13.80% | |||||||||||||||||||||
Equity method investment net earnings | $ 213 | $ 92 | $ 38 | ||||||||||||||||||||
Quoted market price of ownership interest in equity method investment | $ 4,900 | 4,900 | |||||||||||||||||||||
KDP | Keurig with Dr Pepper Snapple Group, Inc. | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Mondelēz International ownership interests | 13.80% | ||||||||||||||||||||||
Pre-tax gain on equity method investment transaction | 757 | 778 | |||||||||||||||||||||
After-tax gain on equity method investment transaction | $ 573 | $ 586 | |||||||||||||||||||||
Increase to pre-tax gain on equity method investment transaction | 21 | ||||||||||||||||||||||
Increase to after-tax gain on equity method investment transaction | $ 13 | ||||||||||||||||||||||
Number of director positions | director | 2 | ||||||||||||||||||||||
Other Equity Method Investment | |||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||
Gain on equity method investment transaction | $ 40 | ||||||||||||||||||||||
Proceeds from sale of equity method investments | 65 | ||||||||||||||||||||||
Tax expense on sale of equity method investment | $ 15 |
Equity Method Investments - Imp
Equity Method Investments - Impact of Change in Accounting Principle on Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Statements of Earnings | ||||||||||||||||||||
Provision for income taxes | $ (111) | $ (310) | $ (15) | $ (337) | $ (156) | $ (272) | $ (84) | $ (154) | $ (773) | $ (666) | $ (114) | |||||||||
Equity method investment net earnings | 149 | 80 | 87 | 232 | 95 | 92 | 67 | 90 | 548 | 344 | 262 | |||||||||
Net earnings | 826 | [1] | 1,197 | [1] | 320 | [1] | 1,052 | [1] | 703 | [1] | 982 | [1] | 500 | [1] | 657 | [1] | 3,395 | 2,842 | 1,645 | |
Net earnings attributable to Mondelēz International | $ 823 | $ 1,194 | $ 318 | $ 1,046 | $ 695 | $ 981 | $ 498 | $ 654 | $ 3,381 | $ 2,828 | $ 1,635 | |||||||||
Earnings per share attributable to Mondelēz International: | ||||||||||||||||||||
Basic EPS (in dollars per share) | $ 0.56 | $ 0.81 | $ 0.22 | $ 0.70 | $ 0.46 | $ 0.65 | $ 0.33 | $ 0.43 | $ 2.30 | $ 1.87 | $ 1.05 | |||||||||
Diluted EPS (in dollars per share) | $ 0.56 | $ 0.81 | $ 0.21 | $ 0.70 | $ 0.46 | $ 0.64 | $ 0.32 | $ 0.42 | $ 2.28 | $ 1.85 | $ 1.04 | |||||||||
Statements of Other Comprehensive Earnings | ||||||||||||||||||||
Currency translation adjustment | $ (865) | $ 1,198 | $ (921) | |||||||||||||||||
Other comprehensive earnings/ (losses), net of income taxes | (635) | 1,149 | (1,149) | |||||||||||||||||
Comprehensive earnings attributable to Mondelēz International | 2,748 | 3,949 | 503 | |||||||||||||||||
Balance Sheet | ||||||||||||||||||||
Equity method investments | $ 7,123 | $ 6,193 | 7,123 | 6,193 | ||||||||||||||||
Deferred income taxes | 3,552 | 3,341 | 3,552 | 3,341 | ||||||||||||||||
Retained earnings | 24,491 | 22,631 | 24,491 | 22,631 | ||||||||||||||||
Accumulated other comprehensive losses | (10,630) | (9,997) | (10,630) | (9,997) | ||||||||||||||||
Total Mondelēz International Shareholders’ Equity | 25,637 | 25,994 | 25,637 | 25,994 | ||||||||||||||||
TOTAL EQUITY | $ 25,713 | 26,074 | $ 25,713 | 26,074 | 25,195 | $ 28,100 | ||||||||||||||
Change in Accounting Method Accounted of Earnings in Equity Method Investments [Member] | As Reported | ||||||||||||||||||||
Statements of Earnings | ||||||||||||||||||||
Provision for income taxes | (688) | (129) | ||||||||||||||||||
Equity method investment net earnings | 460 | 301 | ||||||||||||||||||
Net earnings | 2,936 | 1,669 | ||||||||||||||||||
Net earnings attributable to Mondelēz International | $ 2,922 | $ 1,659 | ||||||||||||||||||
Earnings per share attributable to Mondelēz International: | ||||||||||||||||||||
Basic EPS (in dollars per share) | $ 1.93 | $ 1.07 | ||||||||||||||||||
Diluted EPS (in dollars per share) | $ 1.91 | $ 1.05 | ||||||||||||||||||
Statements of Other Comprehensive Earnings | ||||||||||||||||||||
Currency translation adjustment | $ 1,201 | $ (925) | ||||||||||||||||||
Other comprehensive earnings/ (losses), net of income taxes | 1,152 | (1,153) | ||||||||||||||||||
Comprehensive earnings attributable to Mondelēz International | 4,046 | $ 523 | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||||
Equity method investments | 6,345 | 6,345 | ||||||||||||||||||
Deferred income taxes | 3,376 | 3,376 | ||||||||||||||||||
Retained earnings | 22,749 | 22,749 | ||||||||||||||||||
Accumulated other comprehensive losses | (9,998) | (9,998) | ||||||||||||||||||
Total Mondelēz International Shareholders’ Equity | 26,111 | 26,111 | ||||||||||||||||||
TOTAL EQUITY | $ 26,191 | $ 26,191 | ||||||||||||||||||
[1] | See the following table for significant items that affected the comparability of earnings each quarter. |
Equity Method Investments - Sum
Equity Method Investments - Summarized Financial Information of Equity Method Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 07, 2016 | |
Summary Balance Sheet for Equity Method Investments | ||||
Equity method investments | $ 7,123 | $ 6,193 | ||
Summary Statement of Operations for Equity Method Investments | ||||
Mondelēz International share of investee net income | 548 | 344 | $ 262 | |
JDE and Other Equity Method Investments | ||||
Summary Balance Sheet for Equity Method Investments | ||||
Current assets | 5,695 | 5,033 | ||
Noncurrent assets | 69,445 | 38,320 | ||
Total assets | 75,140 | 43,353 | ||
Current liabilities | 9,434 | 5,709 | ||
Noncurrent liabilities | 29,296 | 16,510 | ||
Total liabilities | 38,730 | 22,219 | ||
Equity attributable to noncontrolling interests | 46 | 71 | ||
Keurig shareholder loan | 0 | 440 | ||
Summary Statement of Operations for Equity Method Investments | ||||
Net revenues | 14,185 | 12,824 | 9,709 | |
Gross profit | 6,076 | 4,913 | 3,748 | |
Income from continuing operations | 1,980 | 1,118 | 680 | |
Net income | $ 1,980 | $ 1,118 | $ 680 | |
JDE and Other Equity Method Investments | Minimum | ||||
Summary Balance Sheet for Equity Method Investments | ||||
Mondelēz International ownership interests | 13.00% | 24.00% | 24.00% | |
JDE and Other Equity Method Investments | Maximum | ||||
Summary Balance Sheet for Equity Method Investments | ||||
Mondelēz International ownership interests | 50.00% | 50.00% | 50.00% | |
JDE and Other Equity Method Investments | Investee | ||||
Summary Balance Sheet for Equity Method Investments | ||||
Equity attributable to shareowners of investees | $ 36,365 | $ 21,064 | ||
Total net equity of investees | 36,411 | 21,135 | ||
Equity method investments | 7,123 | 5,753 | ||
Summary Statement of Operations for Equity Method Investments | ||||
Net income | 1,970 | 1,115 | $ 679 | |
Mondelēz International share of investee net income | 536 | 320 | 242 | |
Keurig | ||||
Summary Balance Sheet for Equity Method Investments | ||||
Mondelēz International ownership interests | 24.20% | |||
Equity method investments | $ 1,600 | |||
Keurig | Interest Income | ||||
Summary Statement of Operations for Equity Method Investments | ||||
Mondelēz International share of investee net income | 12 | 24 | $ 20 | |
Adjustment Due to Change in Accounting Basis | ||||
Summary Balance Sheet for Equity Method Investments | ||||
Difference between U.S. GAAP accounting basis for equity method investments and the investees' equity | $ 340 | $ 360 |
Restructuring Program - Additio
Restructuring Program - Additional Information (Details) - USD ($) $ in Millions | Sep. 06, 2018 | Aug. 31, 2016 | May 06, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 |
2014-2018 Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program costs | $ 5,700 | $ 3,500 | |||||
Reallocation of previously approved capital expenditures to be spent on restructuring program cash costs | 600 | ||||||
2014-2018 Restructuring Program | Maximum | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Capital expenditures, authorized amount | 1,600 | $ 2,200 | |||||
2014-2018 Restructuring Program | Program charges | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program costs | 4,100 | ||||||
2014-2018 Restructuring Program | Cash costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program costs | 3,100 | ||||||
2014-2018 Restructuring Program | Non-cash costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program costs | $ 1,000 | ||||||
Simplify to Grow Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program costs | $ 7,700 | ||||||
Restructuring and related cost, cost incurred | $ 631 | $ 792 | $ 1,086 | $ 3,892 | |||
Restructuring charges | 316 | 535 | 714 | 2,550 | |||
Cash spent | 310 | 347 | |||||
Non-cash asset write-downs | 67 | 215 | |||||
Restructuring reserve | 373 | 464 | 464 | 373 | |||
Implementation costs | 315 | $ 257 | $ 372 | 1,342 | |||
Simplify to Grow Program | Maximum | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Capital expenditures, authorized amount | 2,300 | ||||||
Increase in restructuring program costs | 1,300 | ||||||
Increase in capital expenditures | 700 | ||||||
Simplify to Grow Program | Program charges | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program costs | 5,400 | ||||||
Simplify to Grow Program | Cash costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program costs | 4,100 | ||||||
Simplify to Grow Program | Non-cash costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program costs | $ 1,300 | ||||||
Simplify to Grow Program | Other current liabilities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve | 307 | 307 | |||||
Simplify to Grow Program | Other liabilities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve | $ 66 | $ 66 |
Restructuring Program - Restruc
Restructuring Program - Restructuring Liability Activity (Details) - Simplify to Grow Program - USD ($) $ in Millions | 12 Months Ended | 56 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Liability balance, January 1 | $ 464 | $ 464 | ||
Charges | 316 | 535 | $ 714 | $ 2,550 |
Cash spent | (310) | (347) | ||
Non-cash settlements/adjustments | (67) | (215) | ||
Currency | (30) | 27 | ||
Liability balance, December 31 | 373 | 464 | 464 | 373 |
Severance and related costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability balance, January 1 | 464 | 464 | ||
Charges | 253 | 323 | ||
Cash spent | (310) | (347) | ||
Non-cash settlements/adjustments | (4) | (3) | ||
Currency | (30) | 27 | ||
Liability balance, December 31 | 373 | 464 | 464 | 373 |
Asset Write-downs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Liability balance, January 1 | 0 | 0 | ||
Charges | 63 | 212 | ||
Cash spent | 0 | 0 | ||
Non-cash settlements/adjustments | (63) | (212) | ||
Currency | 0 | 0 | ||
Liability balance, December 31 | $ 0 | $ 0 | $ 0 | $ 0 |
Restructuring Program - Restr_2
Restructuring Program - Restructuring and Implementation Costs (Details) - Simplify to Grow Program - USD ($) $ in Millions | 12 Months Ended | 56 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 316 | $ 535 | $ 714 | $ 2,550 |
Implementation Costs | 315 | 257 | 372 | 1,342 |
Total | 631 | 792 | 1,086 | 3,892 |
Operating Segments | Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 63 | 93 | 111 | 493 |
Implementation Costs | 67 | 43 | 54 | 219 |
Total | 130 | 136 | 165 | 712 |
Operating Segments | AMEA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 69 | 140 | 96 | 517 |
Implementation Costs | 39 | 43 | 48 | 168 |
Total | 108 | 183 | 144 | 685 |
Operating Segments | Europe | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 132 | 195 | 310 | 971 |
Implementation Costs | 73 | 68 | 88 | 345 |
Total | 205 | 263 | 398 | 1,316 |
Operating Segments | North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 32 | 84 | 173 | 453 |
Implementation Costs | 79 | 58 | 121 | 332 |
Total | 111 | 142 | 294 | 785 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 20 | 23 | 24 | 116 |
Implementation Costs | 57 | 45 | 61 | 278 |
Total | $ 77 | $ 68 | $ 85 | $ 394 |
Debt and Borrowing Arrangemen_3
Debt and Borrowing Arrangements - Short-Term Borrowings and Related Weighted-Average Interest Rates (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 3,192 | $ 3,517 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 3,054 | $ 3,410 |
Weighted- Average Rate | 2.90% | 1.70% |
Bank loans | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 138 | $ 107 |
Weighted- Average Rate | 10.50% | 11.50% |
Debt and Borrowing Arrangemen_4
Debt and Borrowing Arrangements - Additional Information (Details) € in Millions, £ in Millions, SFr in Millions, R$ in Millions | Aug. 23, 2018USD ($) | Jul. 18, 2018GBP (£) | Jul. 18, 2018USD ($) | 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) | Sep. 30, 2017USD ($) | Sep. 30, 2017BRL (R$) | Apr. 12, 2017USD ($) | Mar. 30, 2017USD ($) | Mar. 30, 2017CHF (SFr) | Mar. 13, 2017CHF (SFr) | Oct. 13, 2016 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | May 03, 2018USD ($) | Mar. 02, 2018CAD ($) | Mar. 31, 2017USD ($) | Mar. 30, 2017CHF (SFr) | Jan. 26, 2017EUR (€) | Jan. 26, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Short-term borrowings | $ 3,192,000,000 | $ 3,517,000,000 | $ 3,517,000,000 | ||||||||||||||||||||||||||
Deferred debt issuance costs | 32,000,000 | 33,000,000 | $ 33,000,000 | ||||||||||||||||||||||||||
Unamortized non-cash bond premiums, discounts, bank fees and mark-to-market adjustments | (70,000,000) | ||||||||||||||||||||||||||||
Long-term debt repaid | 1,821,000,000 | 1,470,000,000 | $ 6,186,000,000 | ||||||||||||||||||||||||||
Long-term debt proceeds | 2,948,000,000 | 350,000,000 | 5,640,000,000 | ||||||||||||||||||||||||||
Loss on early extinguishment of debt | $ 140,000,000 | $ 11,000,000 | $ 428,000,000 | ||||||||||||||||||||||||||
Weighted-average interest rate | 2.30% | 2.10% | 2.20% | 2.10% | |||||||||||||||||||||||||
Fair value of total debt | $ 18,650,000,000 | $ 18,354,000,000 | $ 18,354,000,000 | ||||||||||||||||||||||||||
Carrying value of total debt | 18,372,000,000 | 17,652,000,000 | $ 17,652,000,000 | ||||||||||||||||||||||||||
Contingency provision accruals | $ 212,000,000 | R$ 667 | |||||||||||||||||||||||||||
Net Investment Hedging | Net investment hedge contracts | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Gains (losses), net of taxes, recognized in income, excluded from effectiveness testing | 120,000,000 | ||||||||||||||||||||||||||||
Interest and other expense, net | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Contingency provision accruals | $ 59,000,000 | 59,000,000 | |||||||||||||||||||||||||||
6.500% U.S. Dollar-denominated Notes due February 2040 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 488,000,000 | ||||||||||||||||||||||||||||
Long-term debt repaid | $ 504,000,000 | ||||||||||||||||||||||||||||
Debt instrument, interest rate | 6.50% | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | $ 11,000,000 | ||||||||||||||||||||||||||||
Decrease in accrued interest | $ 5,000,000 | ||||||||||||||||||||||||||||
0.000% Swiss Franc-denominated Notes due March 2017 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 175,000,000 | SFr 175 | |||||||||||||||||||||||||||
Debt instrument, interest rate | 0.00% | 0.00% | |||||||||||||||||||||||||||
Swiss franc notes | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | SFr 350 | $ 349,000,000 | |||||||||||||||||||||||||||
Net proceeds from issuance of notes | $ 349,000,000 | SFr 349 | |||||||||||||||||||||||||||
0.050% Swiss Franc-denominated Fixed Rate Notes due March 30, 2020 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | SFr 225 | 224,000,000 | |||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.05% | ||||||||||||||||||||||||||||
Debt instrument maturity year | Mar. 30, 2020 | ||||||||||||||||||||||||||||
0.617% Swiss Franc-denominated Fixed Rate Notes due September 30, 2024 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | SFr 125 | 125,000,000 | |||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.617% | ||||||||||||||||||||||||||||
Debt instrument maturity year | Sep. 30, 2024 | ||||||||||||||||||||||||||||
1.125% Euro-denominated Notes due January 2017 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | € 750 | $ 801,000,000 | |||||||||||||||||||||||||||
Debt instrument, interest rate | 1.125% | 1.125% | |||||||||||||||||||||||||||
Loans Payable | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 2,500,000,000 | $ 2,500,000,000 | |||||||||||||||||||||||||||
Long-term debt proceeds | 2,480,000,000 | ||||||||||||||||||||||||||||
Unamortized discount and deferred financing costs | 22,000,000 | ||||||||||||||||||||||||||||
Debt instrument, repurchased amount | $ 570,000,000 | ||||||||||||||||||||||||||||
Loans Payable | 6.125% U.S. Dollar-denominated Notes due August 2018 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Long-term debt repaid | $ 280,000,000 | ||||||||||||||||||||||||||||
Debt instrument, interest rate | 6.125% | 6.125% | |||||||||||||||||||||||||||
Debt instrument, repurchased amount | $ 42,600,000 | ||||||||||||||||||||||||||||
Loans Payable | 7.25% Pound Sterling-denominated Notes | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Long-term debt repaid | £ 76 | $ 99,000,000 | |||||||||||||||||||||||||||
Debt instrument, interest rate | 7.25% | 7.25% | |||||||||||||||||||||||||||
Loans Payable | 3.000% U.S. Dollar-denominated Notes due May 2020 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 750,000,000 | ||||||||||||||||||||||||||||
Debt instrument, interest rate | 3.00% | ||||||||||||||||||||||||||||
Loans Payable | 3.625% U.S. Dollar-denominated Notes due May 2023 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 750,000,000 | ||||||||||||||||||||||||||||
Debt instrument, interest rate | 3.625% | ||||||||||||||||||||||||||||
Loans Payable | 4.125% U.S. Dollar-denominated Notes due May 2028 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 700,000,000 | ||||||||||||||||||||||||||||
Debt instrument, interest rate | 4.125% | ||||||||||||||||||||||||||||
Loans Payable | 4.625% U.S. Dollar-denominated Notes due May 2048 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 300,000,000 | ||||||||||||||||||||||||||||
Debt instrument, interest rate | 4.625% | ||||||||||||||||||||||||||||
Loans Payable | 6.500% U.S. Dollar-denominated Notes due February 2040 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, interest rate | 650.00% | ||||||||||||||||||||||||||||
Debt instrument, repurchased amount | $ 241,000,000 | ||||||||||||||||||||||||||||
Loans Payable | 5.375% U.S. Dollar-denominated Notes due February 2020 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, interest rate | 5.375% | ||||||||||||||||||||||||||||
Debt instrument, repurchased amount | $ 97,600,000 | ||||||||||||||||||||||||||||
Loans Payable | 6.500% U.S. Dollar-denominated Notes due November 2031 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, interest rate | 6.50% | ||||||||||||||||||||||||||||
Debt instrument, repurchased amount | $ 75,800,000 | ||||||||||||||||||||||||||||
Loans Payable | 6.875% U.S. Dollar-denominated Notes due February 2038 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, interest rate | 6.875% | ||||||||||||||||||||||||||||
Debt instrument, repurchased amount | $ 72,100,000 | ||||||||||||||||||||||||||||
Loans Payable | 6.875% U.S. Dollar-denominated Notes due January 2039 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, interest rate | 6.875% | ||||||||||||||||||||||||||||
Debt instrument, repurchased amount | $ 29,300,000 | ||||||||||||||||||||||||||||
Loans Payable | 7.000% U.S. Dollar-denominated Notes due August 2037 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt instrument, interest rate | 7.00% | ||||||||||||||||||||||||||||
Debt instrument, repurchased amount | $ 11,700,000 | ||||||||||||||||||||||||||||
Loans 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% | |||||||||||||||||||||||||||
Unamortized discount and deferred financing costs | $ 4,000,000 | ||||||||||||||||||||||||||||
Proceeds from issuance of debt, net of discounts and underwriting fees | $ 461,000,000 | $ 595,000,000 | |||||||||||||||||||||||||||
Loans Payable | 6.125% U.S. Dollar-denominated Notes due February 2018 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Long-term debt repaid | $ 478,000,000 | ||||||||||||||||||||||||||||
Debt instrument, interest rate | 6.125% | ||||||||||||||||||||||||||||
Loans Payable | 0.080% Swiss Franc-denominated Notes due January 2018 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Long-term debt repaid | $ 260,000,000 | SFr 250 | |||||||||||||||||||||||||||
Debt instrument, interest rate | 0.08% | 0.08% | |||||||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||||||||||||||||||||||||||||
Line of credit facility outstanding amount | 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 | |||||||||||||||||||||||||||
Line of credit facility outstanding amount | 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) | 36,300,000,000 | ||||||||||||||||||||||||||||
International Subsidiaries | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | 1,700,000,000 | 2,000,000,000 | $ 2,000,000,000 | ||||||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Short-term borrowings | $ 3,054,000,000 | 3,410,000,000 | 3,410,000,000 | ||||||||||||||||||||||||||
Commercial paper | Minimum | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Commercial paper, maturity period | 2 days | ||||||||||||||||||||||||||||
Commercial paper | Maximum | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Commercial paper, maturity period | 109 days | ||||||||||||||||||||||||||||
Line of Credit | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Short-term borrowings | $ 138,000,000 | $ 107,000,000 | $ 107,000,000 | ||||||||||||||||||||||||||
Line of Credit | Revolving Credit Facility | 364-Day Senior Unsecured Credit Facility | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 2,000,000,000 | ||||||||||||||||||||||||||||
Line of credit, expiration period | 364 days | ||||||||||||||||||||||||||||
Borrowings under line of credit | $ 714,000,000 | ||||||||||||||||||||||||||||
Repayment of line of credit | $ 714,000,000 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | $ 140,000,000 |
Debt and Borrowing Arrangemen_5
Debt and Borrowing Arrangements - Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Notes payable | $ 15,250 | |
Capital leases and other obligations | 2 | $ 5 |
Total | 15,180 | 14,135 |
Less current portion of long-term debt | (2,648) | (1,163) |
Long-term debt | 12,532 | 12,972 |
U.S. dollar notes | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 9,492 | 8,327 |
Maturity date | 2,040 | |
U.S. dollar notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.625% | |
U.S. dollar notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 7.00% | |
U.S. dollar notes | Weighted Average | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 3.412% | |
Euro notes | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 3,492 | 3,653 |
Maturity date | 2,035 | |
Euro notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.00% | |
Euro notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 2.375% | |
Euro notes | Weighted Average | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.934% | |
Pound sterling notes | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 333 | 456 |
Maturity date | 2,045 | |
Pound sterling notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 3.875% | |
Pound sterling notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 4.50% | |
Pound sterling notes | Weighted Average | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 4.151% | |
Swiss franc notes | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 1,424 | 1,694 |
Maturity date | 2,025 | |
Swiss franc notes | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 0.05% | |
Swiss franc notes | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 1.125% | |
Swiss franc notes | Weighted Average | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 0.703% | |
Canadian dollar notes | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 437 | $ 0 |
Debt instrument, effective interest rate | 3.25% | |
Maturity date | 2,025 | |
Canadian dollar notes | Weighted Average | ||
Debt Instrument [Line Items] | ||
Debt instrument, effective interest rate | 3.32% |
Debt and Borrowing Arrangemen_6
Debt and Borrowing Arrangements - Aggregate Maturities of Debt and Capital Leases Based on Stated Contractual Maturities (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,019 | $ 2,648 |
2,020 | 1,544 |
2,021 | 3,334 |
2,022 | 726 |
2,023 | 1,822 |
Thereafter | 5,176 |
Total | $ 15,250 |
Debt and Borrowing Arrangemen_7
Debt and Borrowing Arrangements - Interest and Other Expense Net Within Results of Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||||||||||
Interest expense, debt | $ 462 | $ 396 | $ 515 | ||||||||
Loss on debt extinguishment and related expenses | $ 0 | $ 0 | $ 140 | $ 0 | $ 0 | $ 0 | $ 11 | $ 0 | 140 | 11 | 427 |
(Gain)/loss related to interest rate swaps | (10) | 0 | 97 | ||||||||
Other (income)/expense, net | (72) | (25) | 76 | ||||||||
Interest and other expense, net | $ 520 | $ 382 | $ 1,115 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | $ 617 | $ 179 | |
Liability Derivatives | 630 | 825 | |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 354 | 15 | |
Liability Derivatives | 383 | 509 | |
Designated as Hedging Instrument | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 17 | 15 | |
Liability Derivatives | 355 | 509 | |
Designated as Hedging Instrument | Net investment hedge contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | [1] | 337 | 0 |
Liability Derivatives | [1] | 28 | 0 |
Derivatives Not Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 263 | 164 | |
Liability Derivatives | 247 | 316 | |
Derivatives Not Designated as Hedging Instrument | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 0 | 15 | |
Liability Derivatives | 0 | 11 | |
Derivatives Not Designated as Hedging Instrument | Currency exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 72 | 65 | |
Liability Derivatives | 37 | 76 | |
Derivatives Not Designated as Hedging Instrument | Commodity contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 191 | 84 | |
Liability Derivatives | $ 210 | $ 229 | |
[1] | Net investment hedge contracts consist of cross-currency interest rate swaps and forward contracts. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Fair Value and Measurement Inputs (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ (13) | $ (646) |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 35 | (11) |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (19) | (145) |
Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (338) | (490) |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 309 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (1) | (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) | (1) | (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) | (12) | (508) |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 35 | (11) |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (18) | (7) |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (338) | (490) |
Significant Other Observable Inputs (Level 2) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 309 | |
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) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018USD ($)derivate | Mar. 31, 2016USD ($) | Dec. 31, 2018USD ($)derivate | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) related to interest rate swaps | $ 10,000,000 | $ 0 | $ (97,000,000) | ||
Borrowings | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Carrying amount of hedged fixed interest rate debt | $ 0 | 0 | 801,000,000 | ||
Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net derivatives gains/(losses) | (45,000,000) | (19,000,000) | (129,000,000) | ||
Gains/(losses) reclassified from accumulated other comprehensive income into earnings | $ 9,000,000 | (27,000,000) | (53,000,000) | ||
Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Hedged forecasted transaction period | 4 years 10 months | ||||
Interest rate contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, aggregate notional value | 8,679,000,000 | $ 8,679,000,000 | 6,532,000,000 | ||
Interest rate contracts | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) related to interest rate swaps | $ (97,000,000) | ||||
Expected transfers of unrealized losses to earnings, within next 12 months | 106,000,000 | ||||
Net derivatives gains/(losses) | (45,000,000) | 12,000,000 | (103,000,000) | ||
Gains/(losses) reclassified from accumulated other comprehensive income into earnings | 9,000,000 | 0 | $ (48,000,000) | ||
Net investment hedge contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, aggregate notional value | $ 6,678,000,000 | 6,678,000,000 | $ 0 | ||
Net derivatives gains/(losses) | 207,000,000 | ||||
After-tax gain on net investment contracts settled recorded as cumulative translation adjustment in other comprehensive income | 191,000,000 | ||||
Gains/(losses) reclassified from accumulated other comprehensive income into earnings | 0 | ||||
Net investment hedge contracts | Net Investment Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses), net of taxes, recognized in income, excluded from effectiveness testing | $ 120,000,000 | ||||
Cross Currency Interest Rate Contract | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Number of derivative contracts matured or settled | derivate | 6 | 6 | |||
Cash proceeds received on derivative instruments | $ 127,000,000 | ||||
Foreign Exchange Forward | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Number of derivative contracts matured or settled | derivate | 8 | 8 | |||
Cash proceeds received on derivative instruments | $ 152,000,000 |
Financial Instruments - Notiona
Financial Instruments - Notional Values of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Net Investment Hedging | Euro notes | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,514 | $ 3,679 |
Net Investment Hedging | British pound sterling notes | ||
Derivative [Line Items] | ||
Notional Amount | 336 | 459 |
Net Investment Hedging | Swiss franc notes | ||
Derivative [Line Items] | ||
Notional Amount | 1,424 | 1,694 |
Net Investment Hedging | Canadian dollar notes | ||
Derivative [Line Items] | ||
Notional Amount | 440 | 0 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | ||
Derivative [Line Items] | ||
Notional Amount | 3,239 | 7,089 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 2,396 | 2,213 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 393 | 1,204 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 8,679 | 6,532 |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 6,678 | $ 0 |
Financial Instruments - Cash Fl
Financial Instruments - Cash Flow Hedges Effect on Accumulated Other Comprehensive Earnings/(Losses), Net of Taxes (Details) - Cash Flow Hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated (loss)/gain at beginning of period | $ (113) | $ (121) | $ (45) |
Transfer of realized (gains)/losses in fair value to earnings | (9) | 27 | 53 |
Unrealized gain/(loss) in fair value | (45) | (19) | (129) |
Accumulated (loss)/gain at end of period | $ (167) | $ (113) | $ (121) |
Financial Instruments - Cash _2
Financial Instruments - Cash Flow Hedges After-tax Gains/(Losses) (Details) - Cash Flow Hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) reclassified from accumulated other comprehensive income into earnings | $ 9 | $ (27) | $ (53) |
Net derivatives gains/(losses) | (45) | (19) | (129) |
Currency exchange contracts | Forecasted transactions | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) reclassified from accumulated other comprehensive income into earnings | 0 | (3) | (1) |
Net derivatives gains/(losses) | 0 | (38) | 8 |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) reclassified from accumulated other comprehensive income into earnings | 0 | (24) | (4) |
Net derivatives gains/(losses) | 0 | 7 | (34) |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses) reclassified from accumulated other comprehensive income into earnings | 9 | 0 | (48) |
Net derivatives gains/(losses) | $ (45) | $ 12 | $ (103) |
Financial Instruments - Fair _2
Financial Instruments - Fair Value Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in income on fair value of hedges | $ 0 | $ 0 | $ 0 |
Borrowings | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in income on fair value of hedges | 1 | 4 | 6 |
Derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in income on fair value of hedges | $ (1) | $ (4) | $ (6) |
Financial Instruments - Carryin
Financial Instruments - Carrying Amount of Hedged Fixed Interest Rate Debt (Details) - Borrowings - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Notional value of borrowings (and related derivatives) | $ 0 | $ (801) |
Cumulative fair value hedging adjustments | 0 | 0 |
Carrying amount of borrowings | $ 0 | $ 801 |
Financial Instruments - Hedges
Financial Instruments - Hedges of Net Investments in International Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Euro notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains/(losses) related to hedges of net investments in international operations | $ 126 | $ (323) | $ 73 |
British pound sterling notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains/(losses) related to hedges of net investments in international operations | 19 | (26) | 148 |
Swiss franc notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains/(losses) related to hedges of net investments in international operations | 7 | (49) | 12 |
Canadian dollar notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gains/(losses) related to hedges of net investments in international operations | $ 17 | $ 0 | $ 0 |
Financial Instruments - Economi
Financial Instruments - Economic Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain/(loss) related to interest rate swaps | $ 0 | $ 1 | $ (5) | $ 14 | |||
Not Designated as Hedging Instrument, Economic Hedge | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain/(loss) related to interest rate swaps | $ 234 | $ (241) | $ (138) | ||||
Not Designated as Hedging Instrument, Economic Hedge | Commodity contracts | Cost of sales | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain/(loss) related to interest rate swaps | 40 | (218) | (101) | ||||
Not Designated as Hedging Instrument, Economic Hedge | Intercompany loans and forecasted interest payments | Currency exchange contracts | Interest and other expense, net | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain/(loss) related to interest rate swaps | 98 | 13 | 21 | ||||
Not Designated as Hedging Instrument, Economic Hedge | Forecasted transactions | Currency exchange contracts | Interest and other expense, net | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain/(loss) related to interest rate swaps | (4) | (2) | 11 | ||||
Not Designated as Hedging Instrument, Economic Hedge | Forecasted transactions | Currency exchange contracts | Cost of sales | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain/(loss) related to interest rate swaps | 103 | (37) | (76) | ||||
Not Designated as Hedging Instrument, Economic Hedge | Forecasted transactions | Currency exchange contracts | Selling, general and administrative expenses | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain/(loss) related to interest rate swaps | $ (3) | $ 3 | $ 7 |
Benefit Plans - Projected Benef
Benefit Plans - Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans (Details) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1 | $ 10,973 | ||
Fair value of plan assets at December 31 | 9,908 | $ 10,973 | |
U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at January 1 | 1,762 | 1,614 | |
Service cost | 43 | 46 | $ 57 |
Interest cost | 61 | 62 | 61 |
Benefits paid | (29) | (32) | |
Settlements paid | (118) | (111) | |
Actuarial (gains)/losses | (208) | 179 | |
Divestiture | 0 | 0 | |
Currency | 0 | 0 | |
Other | 0 | 4 | |
Projected benefit obligation at December 31 | 1,511 | 1,762 | 1,614 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1 | 1,717 | 1,620 | |
Actual return on plan assets | (99) | 217 | |
Contributions | 39 | 23 | |
Benefits paid | (29) | (32) | |
Settlements paid | (118) | (111) | |
Divestiture | 0 | 0 | |
Currency | 0 | 0 | |
Fair value of plan assets at December 31 | 1,510 | 1,717 | 1,620 |
Net pension (liabilities)/assets at December 31 | (1) | (45) | |
Non-U.S. Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at January 1 | 10,852 | 9,814 | |
Service cost | 146 | 156 | 147 |
Interest cost | 199 | 199 | 229 |
Benefits paid | (462) | (471) | |
Settlements paid | (2) | 0 | |
Actuarial (gains)/losses | (640) | 180 | |
Divestiture | 0 | (14) | |
Currency | (528) | 976 | |
Other | 13 | 12 | |
Projected benefit obligation at December 31 | 9,578 | 10,852 | 9,814 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1 | 9,327 | 7,926 | |
Actual return on plan assets | (243) | 592 | |
Contributions | 323 | 482 | |
Benefits paid | (462) | (471) | |
Settlements paid | (2) | 0 | |
Divestiture | 0 | 0 | |
Currency | (478) | 798 | |
Fair value of plan assets at December 31 | 8,465 | 9,327 | $ 7,926 |
Net pension (liabilities)/assets at December 31 | $ (1,113) | $ (1,525) |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) | Aug. 28, 2016 | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($)arrangement | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Pension plans resulted in net pension liability | $ (1,114,000,000) | $ (1,114,000,000) | $ (1,570,000,000) | |||||
Plan assets related to certain insurance contracts | 67,000,000 | 67,000,000 | 71,000,000 | |||||
Impact from pension participation changes | $ 17,000,000 | $ 3,000,000 | $ 409,000,000 | $ 0 | ||||
Expense for defined contribution plans | 57,000,000 | 43,000,000 | $ 44,000,000 | |||||
Multiemployer Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Multiemployer pension plans contributions | 17,000,000 | $ 26,000,000 | $ 25,000,000 | |||||
Multiemployer Pension Plans | Minimum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Company's contribution of the total contribution of each plan | 5.00% | 5.00% | ||||||
Multiemployer Pension Plans | Bakery and Confectionery Union and Industry International Pension Fund | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Multiemployer pension plans contributions | 12,000,000 | $ 22,000,000 | $ 21,000,000 | |||||
Multiemployer plan, surcharge percentage imposed | 10.00% | |||||||
Multiemployer Pension Plans | Multiemployer Plan, Individually Insignificant Multiemployer Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Multiemployer pension plans contributions | 5,000,000 | 4,000,000 | 4,000,000 | |||||
Multiemployer Plans, Postretirement Benefit | Multiemployer Medical Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Multiemployer pension plans contributions | $ 19,000,000 | 18,000,000 | $ 19,000,000 | |||||
U.S. And International Investment Grade Debt Securities | Fixed-income securities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target allocation percentage | 95.00% | 95.00% | ||||||
U.S. Plans | Bakery, Confectionery, Tobacco and Grain Millers Union (“BCTGM”) | Multiemployer Pension Plans | Bakery and Confectionery Union and Industry International Pension Fund [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Multiemployer plan, number of expired collective-bargaining arrangements | arrangement | 8 | |||||||
U.S. Plans | North America | Bakery, Confectionery, Tobacco and Grain Millers Union (“BCTGM”) | Multiemployer Pension Plans | Bakery and Confectionery Union and Industry International Pension Fund [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Multiemployer plan, partial withdrawal liability | $ 573,000,000 | $ 573,000,000 | ||||||
Multiemployer plan, withdrawal obligation term | 20 years | |||||||
Multiemployer plan, withdrawal obligation | 423,000,000 | 423,000,000 | ||||||
Impact from pension participation changes | 316,000,000 | |||||||
Multiemployer plans, accreted interest on the long-term liability | 6,000,000 | |||||||
Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Pension plans resulted in net pension liability | (1,114,000,000) | (1,114,000,000) | (1,570,000,000) | |||||
Estimated from experience differences | 168,000,000 | 168,000,000 | ||||||
Pension Plans | Maximum | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Estimated prior service cost | 6,000,000 | 6,000,000 | ||||||
Pension Plans | Non-U.S. Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Accumulated benefit obligation | $ 9,374,000,000 | $ 9,374,000,000 | $ 10,610,000,000 | |||||
Allocation of pension plan asset percentage | 100.00% | 100.00% | 100.00% | |||||
Employer contribution | $ 310,000,000 | |||||||
Employees contribution | 13,000,000 | |||||||
Estimated future employer contributions | $ 232,000,000 | $ 232,000,000 | ||||||
Weighted-average discount rate | 2.45% | 2.45% | 2.20% | |||||
Rate of compensation increase | 3.31% | 3.31% | 3.31% | |||||
Pension Plans | Non-U.S. Plans | Fixed-income securities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target allocation percentage | 67.00% | 67.00% | ||||||
Allocation of pension plan asset percentage | 65.00% | 65.00% | 60.00% | |||||
Pension Plans | Non-U.S. Plans | Other Plan Asset | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target allocation percentage | 2.00% | 2.00% | ||||||
Pension Plans | Non-U.S. Plans | Equity securities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target allocation percentage | 31.00% | 31.00% | ||||||
Allocation of pension plan asset percentage | 26.00% | 26.00% | 28.00% | |||||
Pension Plans | Non-U.S. Plans | Non US Pension Assets | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Allocation of pension plan asset percentage | 63.00% | 63.00% | ||||||
Pension Plans | Non-U.S. Plans | Non US Pension Assets | Equity securities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target allocation percentage | 23.00% | 23.00% | ||||||
Pension Plans | Non-U.S. Plans | Non US Pension Assets | Debt Securities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target allocation percentage | 20.00% | 20.00% | ||||||
Pension Plans | Non-U.S. Plans | Non US Pension Assets | Liability Matching Assets | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Target allocation percentage | 57.00% | 57.00% | ||||||
Pension Plans | U.S. Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Accumulated benefit obligation | $ 1,488,000,000 | $ 1,488,000,000 | $ 1,715,000,000 | |||||
Allocation of pension plan asset percentage | 100.00% | 100.00% | 100.00% | |||||
Employer contribution | $ 39,000,000 | |||||||
Estimated future employer contributions | $ 5,000,000 | $ 5,000,000 | ||||||
Weighted-average discount rate | 4.40% | 4.40% | 3.68% | |||||
Rate of compensation increase | 4.00% | 4.00% | 4.00% | |||||
Pension Plans | U.S. Plans | Fixed-income securities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Allocation of pension plan asset percentage | 85.00% | 85.00% | 85.00% | |||||
Pension Plans | U.S. Plans | Equity securities | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Allocation of pension plan asset percentage | 15.00% | 15.00% | 15.00% | |||||
Postretirement Benefit Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Current portion of our accrued postretirement benefit obligation | $ 15,000,000 | $ 15,000,000 | $ 16,000,000 | |||||
Postretirement Benefit Plans | Non-U.S. Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Weighted-average discount rate | 4.40% | 4.40% | 4.24% | |||||
Postretirement Benefit Plans | U.S. Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Weighted-average discount rate | 4.37% | 4.37% | 3.66% | |||||
Postretirement Health Care Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Estimated from experience differences | $ 7,000,000 | $ 7,000,000 | ||||||
Estimated prior service cost | $ 39,000,000 | $ 39,000,000 | ||||||
Postemployment Benefit Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Weighted-average discount rate | 6.70% | 6.70% | 6.50% | |||||
Ultimate annual turnover rate | 0.30% | |||||||
Rate of compensation increase | 4.00% | |||||||
Defined benefit plan, amount to be amortized from accumulated other comprehensive income (loss) next fiscal year | $ 3,000,000 | $ 3,000,000 |
Benefit Plans - Pension Plans R
Benefit Plans - Pension Plans Resulted in Net Pension Liability (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid pension assets | $ 132 | $ 158 |
Other current liabilities | (25) | (59) |
Accrued pension costs | (1,221) | (1,669) |
Total | (1,114) | (1,570) |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | (1,114) | (1,570) |
Pension Plans | U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 52 | 94 |
Accumulated benefit obligation | 50 | 90 |
Fair value of plan assets | 2 | 2 |
Pension Plans | Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 3,343 | 9,345 |
Accumulated benefit obligation | 3,194 | 9,138 |
Fair value of plan assets | $ 2,169 | $ 7,709 |
Benefit Plans - Weighted-Averag
Benefit Plans - Weighted-Average Assumptions to Determine Benefit Obligations (Details) - Pension Plans | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.40% | 3.68% |
Expected rate of return on plan assets | 5.75% | 5.50% |
Rate of compensation increase | 4.00% | 4.00% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.45% | 2.20% |
Expected rate of return on plan assets | 4.80% | 4.90% |
Rate of compensation increase | 3.31% | 3.31% |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Simplify to Grow Program | Severance and related costs | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement losses | $ 5 | $ 11 | $ 15 | |
Pension Plans | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 43 | 46 | 57 | |
Interest cost | 61 | 62 | 61 | |
Expected return on plan assets | (88) | (101) | (97) | |
Net loss from experience differences | 32 | 37 | 42 | |
Prior service cost/(benefit) | 2 | 2 | 2 | |
Settlement losses and other expenses | [1] | 35 | 35 | 30 |
Net periodic pension cost | 85 | 81 | 95 | |
Settlement losses | 31 | 21 | 15 | |
Pension Plans | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 146 | 156 | 147 | |
Interest cost | 199 | 199 | 229 | |
Expected return on plan assets | (448) | (434) | (418) | |
Net loss from experience differences | 163 | 167 | 120 | |
Prior service cost/(benefit) | (2) | (3) | (3) | |
Settlement losses and other expenses | [1] | 5 | 6 | 6 |
Net periodic pension cost | 63 | 91 | 81 | |
Settlement losses | $ 4 | $ 6 | $ 6 | |
[1] | Settlement losses include $5 million for the year ended December 31, 2018 , $11 million for the year ended December 31, 2017 and $15 million for the year ended December 31, 2016 of pension settlement losses for employees who elected lump- sum payments in connection with our Simplify to Grow Program. Retired employees who elected lump-sum payments resulted in net settlement losses of $31 million for our U.S. plans and $4 million for our non-U.S. plans in 2018 , $21 million for our U.S. plans and $6 million for our non-U.S. plans in 2017 and $15 million for our U.S. plans and $6 million for our non-U.S. plans in 2016 . See Note 7, Restructuring Program |
Benefit Plans - Weighted-Aver_2
Benefit Plans - Weighted-Average Assumptions to Determine Net Periodic Pension Cost (Details) - Pension Plans | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.68% | 4.19% | 4.50% |
Expected rate of return on plan assets | 5.50% | 6.25% | 6.75% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.20% | 2.31% | 3.11% |
Expected rate of return on plan assets | 4.90% | 5.14% | 5.87% |
Rate of compensation increase | 3.31% | 3.29% | 3.18% |
Benefit Plans - Fair Value of P
Benefit Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | $ 1,057 | $ 816 | $ 602 |
Significant Unobservable Inputs (Level 3) | Pooled funds - fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | 35 |
Significant Unobservable Inputs (Level 3) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,032 | 790 | $ 538 |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 9,908 | 10,973 | |
Pension Plans | Total Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 7,915 | 8,534 | |
Pension Plans | Total Fair Value | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 2 | 2 | |
Pension Plans | Total Fair Value | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 5 | 5 | |
Pension Plans | Total Fair Value | Pooled funds - equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,951 | 2,340 | |
Pension Plans | Total Fair Value | Total equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,958 | 2,347 | |
Pension Plans | Total Fair Value | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 3,156 | 3,237 | |
Pension Plans | Total Fair Value | Pooled funds - fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 573 | 602 | |
Pension Plans | Total Fair Value | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 2,050 | 2,102 | |
Pension Plans | Total Fair Value | Total fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 5,779 | 5,941 | |
Pension Plans | Total Fair Value | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 130 | 156 | |
Pension Plans | Total Fair Value | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 2 | 2 | |
Pension Plans | Total Fair Value | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 44 | 86 | |
Pension Plans | Total Fair Value | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 2 | 2 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,469 | 1,658 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 2 | 2 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 5 | 5 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds - equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 743 | 848 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 750 | 855 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 62 | 34 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pooled funds - fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 429 | 449 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 87 | 133 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Total fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 578 | 616 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 108 | 120 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 32 | 66 | |
Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1 | 1 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 5,389 | 6,060 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Pooled funds - equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,208 | 1,492 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Total equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,208 | 1,492 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 3,094 | 3,203 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Pooled funds - fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 144 | 153 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 931 | 1,179 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Total fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 4,169 | 4,535 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 13 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 12 | 20 | |
Pension Plans | Significant Other Observable Inputs (Level 2) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,057 | 816 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Non-U.S. equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Pooled funds - equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Total equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Government bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Pooled funds - fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Corporate bonds and other fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,032 | 790 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Total fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1,032 | 790 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Real estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 22 | 23 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Private equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 2 | 2 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 0 | 0 | |
Pension Plans | Significant Unobservable Inputs (Level 3) | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | 1 | 1 | |
Pension Plans | Total assets in the fair value hierarchy | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments at fair value | $ 1,993 | $ 2,439 |
Benefit Plans - Schedule of Cha
Benefit Plans - Schedule of Changes in Level 3 Plan Assets (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at January 1 | $ 816 | $ 602 |
Net Realized and Unrealized Gains/ (Losses) | 63 | 11 |
Net Purchases, Issuances and Settlements | 235 | 166 |
Net Transfers Into/(Out of) Level 3 | 0 | (25) |
Currency Impact | (57) | 62 |
Fair value of plan assets at December 31 | 1,057 | 816 |
Non-U.S. equity securities | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at January 1 | 0 | 3 |
Net Realized and Unrealized Gains/ (Losses) | 0 | 0 |
Net Purchases, Issuances and Settlements | 0 | 0 |
Net Transfers Into/(Out of) Level 3 | 0 | (3) |
Currency Impact | 0 | 0 |
Fair value of plan assets at December 31 | 0 | 0 |
Pooled funds - fixed-income securities | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at January 1 | 0 | 35 |
Net Realized and Unrealized Gains/ (Losses) | 0 | 0 |
Net Purchases, Issuances and Settlements | 0 | (16) |
Net Transfers Into/(Out of) Level 3 | 0 | (21) |
Currency Impact | 0 | 2 |
Fair value of plan assets at December 31 | 0 | 0 |
Corporate bonds and other fixed-income securities | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at January 1 | 790 | 538 |
Net Realized and Unrealized Gains/ (Losses) | 62 | 10 |
Net Purchases, Issuances and Settlements | 236 | 182 |
Net Transfers Into/(Out of) Level 3 | 0 | 0 |
Currency Impact | (56) | 60 |
Fair value of plan assets at December 31 | 1,032 | 790 |
Real estate | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at January 1 | 23 | 22 |
Net Realized and Unrealized Gains/ (Losses) | 1 | 1 |
Net Purchases, Issuances and Settlements | (1) | 0 |
Net Transfers Into/(Out of) Level 3 | 0 | 0 |
Currency Impact | (1) | 0 |
Fair value of plan assets at December 31 | 22 | 23 |
Private equity and other | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at January 1 | 3 | 4 |
Net Realized and Unrealized Gains/ (Losses) | 0 | 0 |
Net Purchases, Issuances and Settlements | 0 | 0 |
Net Transfers Into/(Out of) Level 3 | 0 | (1) |
Currency Impact | 0 | 0 |
Fair value of plan assets at December 31 | $ 3 | $ 3 |
Benefit Plans - Percentage of F
Benefit Plans - Percentage of Fair Value of Pension Plan Assets (Details) - Pension Plans | Dec. 31, 2018 | Dec. 31, 2017 |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 100.00% | 100.00% |
U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 15.00% | 15.00% |
U.S. Plans | Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 85.00% | 85.00% |
U.S. Plans | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0.00% | 0.00% |
U.S. Plans | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0.00% | 0.00% |
U.S. Plans | Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0.00% | 0.00% |
U.S. Plans | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0.00% | 0.00% |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 100.00% | 100.00% |
Non-U.S. Plans | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 26.00% | 28.00% |
Non-U.S. Plans | Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 65.00% | 60.00% |
Non-U.S. Plans | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 6.00% | 6.00% |
Non-U.S. Plans | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 2.00% | 4.00% |
Non-U.S. Plans | Private equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0.00% | 1.00% |
Non-U.S. Plans | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 1.00% | 1.00% |
Benefit Plans - Estimated Futur
Benefit Plans - Estimated Future Benefit Payments for Pension Plans (Details) - Pension Plans $ in Millions | Dec. 31, 2018USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 107 |
2,020 | 91 |
2,021 | 91 |
2,022 | 93 |
2,023 | 92 |
2024-2028 | 483 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 357 |
2,020 | 362 |
2,021 | 378 |
2,022 | 382 |
2,023 | 395 |
2024-2028 | $ 2,098 |
Benefit Plans - Schedule of Ind
Benefit Plans - Schedule of Individually Significant Multiemployer Pension Plan (Details) - Multiemployer Pension Plans - Bakery and Confectionery Union and Industry International Pension Fund | 12 Months Ended |
Dec. 31, 2018 | |
Multiemployer Plans [Line Items] | |
Pension Fund | Bakery and Confectionery Union and Industry International Pension Fund |
EIN / Pension Plan Number | 526,118,572 |
Pension Protection Act Zone Status | Red |
FIP / RP Status Pending / Implemented | Implemented |
Surcharge Imposed | Yes |
Expiration Date of Collective-Bargaining Agreements | Feb. 29, 2016 |
Benefit Plans - Benefit Obligat
Benefit Plans - Benefit Obligation of Postretirement Benefit Plans (Details) - Postretirement Benefit Plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Projected benefit obligation at January 1 | $ 435 | $ 394 |
Service cost | 6 | 7 |
Interest cost | 15 | 15 |
Benefits paid | (19) | (15) |
Currency | (11) | 8 |
Assumption changes | (39) | 30 |
Actuarial losses/(gains) | (21) | (4) |
Projected benefit obligation at December 31 | $ 366 | $ 435 |
Benefit Plans - Weighted-Aver_3
Benefit Plans - Weighted-Average Assumptions to Determine Postretirement Benefit Obligations (Details) - Postretirement Benefit Plans | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.37% | 3.66% |
Health care cost trend rate assumed for next year | 6.25% | 6.25% |
Ultimate trend rate | 5.00% | 4.81% |
Year that the rate reaches the ultimate trend rate | 2,024 | 2,024 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.40% | 4.24% |
Health care cost trend rate assumed for next year | 5.44% | 5.56% |
Ultimate trend rate | 5.44% | 5.56% |
Year that the rate reaches the ultimate trend rate | 2,018 | 2,018 |
Benefit Plans - One-Percentage-
Benefit Plans - One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) - Postretirement Health Care Plan $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on postretirement benefit obligation, Increase | $ 37 |
Effect on annual service and interest cost, Increase | 2 |
Effect on postretirement benefit obligation, Decrease | (30) |
Effect on annual service and interest cost, Decrease | $ (2) |
Benefit Plans - Components of_2
Benefit Plans - Components of Net Periodic Postretirement Health Care Costs (Details) - Postretirement Health Care Plan - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 6 | $ 7 | $ 12 | ||
Interest cost | 14 | 15 | 20 | ||
Net loss from experience differences | $ (10) | 15 | 14 | 10 | |
Prior service credit | [1] | (39) | (40) | (20) | |
Net periodic postretirement health care costs | $ (4) | $ (4) | $ 22 | ||
Curtailment gain | $ 9 | ||||
[1] | In the fourth quarter of 2016, the prior service credit included a one-time $9 million curtailment gain related to a change in the eligibility requirement resulting in ongoing amortization of $10 million . We continued to amortize the prior service credit and recorded $39 million in 2018 and $40 million in 2017 |
Benefit Plans - Weighted-Aver_4
Benefit Plans - Weighted-Average Assumptions to Determine Net Periodic Postretirement Health Care Cost (Details) - Postretirement Health Care Plan | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.66% | 4.14% | 4.60% |
Health care cost trend rate | 6.25% | 6.50% | 6.50% |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.24% | 4.55% | 4.77% |
Health care cost trend rate | 5.56% | 5.50% | 5.50% |
Benefit Plans - Future Benefit
Benefit Plans - Future Benefit Payments for Postretirement Health Care Plans (Details) - Postretirement Health Care Plan $ in Millions | Dec. 31, 2018USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 11 |
2,020 | 12 |
2,021 | 13 |
2,022 | 14 |
2,023 | 15 |
2024-2028 | 78 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 5 |
2,020 | 5 |
2,021 | 5 |
2,022 | 5 |
2,023 | 5 |
2024-2028 | $ 30 |
Benefit Plans - Changes in Accu
Benefit Plans - Changes in Accumulated Postemployment Benefit Obligations (Details) - Postemployment Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at January 1 | $ 76 | $ 71 | |
Service cost | 6 | 5 | $ 7 |
Interest cost | 4 | 4 | 6 |
Benefits paid | (7) | (6) | |
Assumption changes | (1) | 0 | |
Actuarial losses/(gains) | (4) | 2 | |
Projected benefit obligation at December 31 | $ 74 | $ 76 | $ 71 |
Benefit Plans - Components of_3
Benefit Plans - Components of Net Postemployment Costs (Details) - Postemployment Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 6 | $ 5 | $ 7 |
Interest cost | 4 | 4 | 6 |
Amortization of net gains | (3) | (3) | (1) |
Net periodic benefit cost | $ 7 | $ 6 | $ 12 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance share units vest ranges | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance share units vest ranges | 200.00% | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of annual installments of stock options | 3 | ||
Maximum term of stock options | 10 years | ||
Compensation expense | $ 43 | $ 50 | $ 57 |
Deferred tax benefit related to compensation expense | 7 | 12 | 15 |
Unamortized compensation expense related to stock options | $ 42 | ||
Unamortized compensation expense recognition period | 1 year 3 months 18 days | ||
Restricted stock, deferred stock units and performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 85 | 87 | 83 |
Deferred tax benefit related to compensation expense | $ 12 | $ 23 | $ 22 |
Unamortized compensation expense recognition period | 1 year 6 months | ||
Unamortized compensation expense related to deferred stock units, performance share units and restricted stock | $ 113 | ||
Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares award expiration date | May 21, 2024 | ||
Shares authorized to be issued under stock option plan (in shares) | shares | 243.7 | ||
Shares available to be granted (in shares) | shares | 61.1 |
Stock Plans - Weighted-Average
Stock Plans - Weighted-Average Black-Scholes Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-Free Interest Rate | 2.68% | 2.04% | 1.40% |
Expected Life (in years) | 5 years | 6 years | 6 years |
Expected Volatility | 20.96% | 22.75% | 23.11% |
Expected Dividend Yield | 2.02% | 1.74% | 1.61% |
Fair Value at Grant Date (in dollars per share) | $ 8.30 | $ 8.57 | $ 7.86 |
Stock Plans - Stock Option Acti
Stock Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Shares Subject to Option | |||||
Beginning balance (in shares) | 48,434,655 | 53,601,612 | 57,034,108 | ||
Options granted (in shares) | 5,834,836 | 6,175,020 | 7,633,090 | ||
Options exercised (in shares) | [1] | (9,333,271) | (9,431,009) | (8,883,101) | |
Options cancelled (in shares) | (1,117,390) | (1,910,968) | (2,182,485) | ||
Ending balance (in shares) | 43,818,830 | 48,434,655 | 53,601,612 | ||
Exercisable at end of the period (in shares) | 33,902,437 | ||||
Weighted- Average Exercise or Grant Price Per Share | |||||
Beginning balance (in dollars per share) | $ 29.92 | $ 28.02 | $ 26.12 | ||
Options granted (in dollars per share) | 43.16 | 43.18 | 39.74 | ||
Options exercised (in dollars per share) | 25.16 | 26.17 | 24.09 | ||
Options cancelled (in dollars per share) | 42.93 | 38.10 | 35.23 | ||
Ending balance (in dollars per share) | 32.36 | $ 29.92 | $ 28.02 | ||
Exercisable at end of the period (in dollars per share) | $ 29.35 | ||||
Average Remaining Contractual Term | |||||
Ending balance | 5 years | ||||
Exercisable at end of the period (in years) | 4 years | ||||
Aggregate Intrinsic Value | |||||
Options exercised | $ 170 | $ 170 | $ 174 | ||
Aggregate intrinsic value | 371 | 626 | 874 | $ 1,068 | |
Exercisable at end of the period | 369 | ||||
Cash received from options exercised | 231 | 257 | 221 | ||
Actual tax benefit realized for the tax deductions from the option exercises | $ 21 | $ 31 | $ 31 | ||
Annual grant to eligible employees | |||||
Shares Subject to Option | |||||
Options granted (in shares) | 5,666,530 | 6,012,140 | 7,517,290 | ||
Weighted- Average Exercise or Grant Price Per Share | |||||
Options granted (in dollars per share) | $ 43.51 | $ 43.20 | $ 39.70 | ||
Additional options issued | |||||
Shares Subject to Option | |||||
Options granted (in shares) | 168,306 | 162,880 | 115,800 | ||
Weighted- Average Exercise or Grant Price Per Share | |||||
Options granted (in dollars per share) | $ 31.40 | $ 42.54 | $ 42.26 | ||
[1] | Cash received from options exercised was $231 million in 2018 , $257 million in 2017 and $221 million in 2016 . The actual tax benefit realized for the tax deductions from the option exercises totaled $21 million in 2018 , $31 million in 2017 and $31 million in 2016 . |
Stock Plans - Deferred Stock Un
Stock Plans - Deferred Stock Units, Performance Share Units and Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Number of Shares | ||||
Beginning balance (in shares) | 7,669,705 | 7,593,627 | 9,418,216 | |
Shares granted (in shares) | 2,283,832 | 3,470,323 | 3,312,141 | |
Vested (in shares) | [1] | (2,511,992) | (2,622,807) | (3,992,902) |
Forfeited (in shares) | [1] | (882,535) | (771,438) | (1,143,828) |
Ending balance (in shares) | 6,559,010 | 7,669,705 | 7,593,627 | |
Weighted-Average Fair Value Per Share | ||||
Beginning balance (in dollars per share) | [2] | $ 39.74 | $ 36.90 | $ 33.71 |
Shares granted (in dollars per share) | [2] | 46.72 | 42.75 | 35.65 |
Vested (in dollars per share) | [2] | 38.91 | 35.78 | 28.15 |
Forfeited (in dollars per share) | [2] | 42 | 38.69 | 37.58 |
Ending balance (in dollars per share) | [2] | $ 42.19 | $ 39.74 | $ 36.90 |
Weighted-Average Aggregate Fair Value | ||||
Total shares granted | [2] | $ 107 | $ 148 | $ 118 |
Vested | [2] | 98 | 94 | 112 |
Actual tax benefit realized for the tax deductions from the shares vested | $ 3 | $ 7 | $ 18 | |
Performance share units | ||||
Number of Shares | ||||
Shares granted (in shares) | 1,048,770 | 1,087,010 | 1,406,500 | |
Weighted-Average Fair Value Per Share | ||||
Shares granted (in dollars per share) | [2] | $ 51.23 | $ 43.14 | $ 34.35 |
Deferred stock units | ||||
Number of Shares | ||||
Shares granted (in shares) | 788,310 | 845,550 | 1,040,790 | |
Weighted-Average Fair Value Per Share | ||||
Shares granted (in dollars per share) | [2] | $ 43.51 | $ 43.20 | $ 39.70 |
Additional shares granted | ||||
Number of Shares | ||||
Shares granted (in shares) | [3] | 446,752 | 1,537,763 | 864,851 |
Weighted-Average Fair Value Per Share | ||||
Shares granted (in dollars per share) | [2] | $ 41.78 | $ 42.22 | $ 32.90 |
Annual grant to eligible employees | ||||
Grant Date | ||||
Grant date | Feb. 22, 2018 | Feb. 16, 2017 | Feb. 22, 2016 | |
[1] | Includes performance share units, deferred stock units and restricted stock. The actual tax benefit realized for the tax deductions from the shares vested totaled $3 million in 2018 , $7 million in 2017 and $18 million in 2016 | |||
[2] | ||||
[3] | Includes performance share units and deferred stock units. |
Capital Stock Capital Stock - A
Capital Stock Capital Stock - Additional Information (Details) - USD ($) | Jan. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 | 5,000,000,000 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | |
Cost of shares repurchased | $ 1,994,000,000 | $ 2,202,000,000 | $ 2,601,000,000 | ||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 5,000,000,000 | ||||
Preferred stock, shares authorized (in shares) | 500,000,000 | ||||
Common stock reserved for stock option and other stock awards (in shares) | 111,000,000 | ||||
Stock repurchase value | $ 13,700,000,000 | ||||
Cost of shares repurchased | $ 2,000,000,000 | ||||
Number of shares repurchased (in shares) | 47,258,884 | 50,598,902 | 61,972,713 | ||
Average cost of shares repurchased | $ 42.18 | ||||
Stock repurchase remaining amount | $ 4,700,000,000 | ||||
Common Class A | Share Repurchase Program amended January 1, 2018 | |||||
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] | |||||
Cost of shares repurchased | $ 13,000,000,000 |
Capital Stock - Authorized Comm
Capital Stock - Authorized Common Stock Repurchase Programs (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares Issued | |||
Balance at January 1 (in shares) | 1,996,537,778 | ||
Balance at December 31 (in shares) | 1,996,537,778 | 1,996,537,778 | |
Treasury Shares | |||
Balance at January 1 (in shares) | (508,401,694) | ||
Balance at December 31 (in shares) | (545,537,923) | (508,401,694) | |
Common Class A | |||
Shares Issued | |||
Balance at January 1 (in shares) | 1,996,537,778 | 1,996,537,778 | 1,996,537,778 |
Exercise of stock options and issuance of other stock awards (in shares) | 0 | 0 | 0 |
Balance at December 31 (in shares) | 1,996,537,778 | 1,996,537,778 | 1,996,537,778 |
Treasury Shares | |||
Balance at January 1 (in shares) | (508,401,694) | (468,172,237) | (416,504,624) |
Shares repurchased (in shares) | (47,258,884) | (50,598,902) | (61,972,713) |
Exercise of stock options and issuance of other stock awards (in shares) | 10,122,655 | 10,369,445 | 10,305,100 |
Balance at December 31 (in shares) | (545,537,923) | (508,401,694) | (468,172,237) |
Shares Outstanding | |||
Balance at January 1 (in shares) | 1,488,136,084 | 1,528,365,541 | 1,580,033,154 |
Shares repurchased (in shares) | (47,258,884) | (50,598,902) | (61,972,713) |
Exercise of stock options and issuance of other stock awards (in shares) | 10,122,655 | 10,369,445 | 10,305,100 |
Balance at December 31 (in shares) | 1,450,999,855 | 1,488,136,084 | 1,528,365,541 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) R$ in Millions, ₨ in Billions | Sep. 30, 2017USD ($) | Sep. 30, 2017BRL (R$) | Apr. 01, 2015USD ($) | Dec. 31, 2018USD ($)claim | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018INR (₨)claim |
Loss Contingencies [Line Items] | ||||||||||||||||
Provision for income taxes | $ (111,000,000) | $ (310,000,000) | $ (15,000,000) | $ (337,000,000) | $ (156,000,000) | $ (272,000,000) | $ (84,000,000) | $ (154,000,000) | $ (773,000,000) | $ (666,000,000) | $ (114,000,000) | |||||
Selling, general and administrative expenses to offset tax benefit | 6,475,000,000 | 5,938,000,000 | 6,546,000,000 | |||||||||||||
Contingency provision accruals | $ 212,000,000 | R$ 667 | ||||||||||||||
Income due to reversal of accrued liability under tax indemnity | 58,000,000 | |||||||||||||||
Rental expenses | 260,000,000 | 284,000,000 | $ 317,000,000 | |||||||||||||
Selling, general and administrative expenses | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Contingency provision accruals | 153,000,000 | |||||||||||||||
Income due to reversal of accrued liability under tax indemnity | 46,000,000 | |||||||||||||||
Interest and other expense, net | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Contingency provision accruals | $ 59,000,000 | $ 59,000,000 | ||||||||||||||
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 | |||||||||||||||
Groupe Danone S.A. Global LU Biscuit Business (“LU Biscuit”) [Member] | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Provision for income taxes | 15,000,000 | |||||||||||||||
Selling, general and administrative expenses to offset tax benefit | 11,000,000 | |||||||||||||||
Interest and other expense to offset tax benefit | $ 4,000,000 | |||||||||||||||
Indian Department of Central Excise Authority | Cadbury | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | 54,000,000 | 54,000,000 | ₨ 3.7 | |||||||||||||
Indian Department of Central Excise Authority | Cadbury | Show case notice | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | $ 70,000,000 | $ 70,000,000 | ₨ 4.9 | |||||||||||||
Number of show cause notices | claim | 5 | 5 | 5 | |||||||||||||
Indian Department of Central Excise Authority | Cadbury | Maximum | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Tax penalties and interest expense | $ 84,000,000 | $ 84,000,000 | ₨ 5.8 | |||||||||||||
BRAZIL | Selling, general and administrative expenses | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Net benefit for legal settlement | $ 26,000,000 | |||||||||||||||
U.S. Commodity Futures Trading Commission ("CFTC") | ||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||
Loss contingency, filling date | Apr. 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 |
Commitments and Contingencies_2
Commitments and Contingencies - Minimum Rental Commitments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 208 |
2,020 | 165 |
2,021 | 114 |
2,022 | 79 |
2,023 | 57 |
Thereafter | 157 |
Total | $ 780 |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive Income - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Net losses reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) | $ 169 | $ 174 | $ 250 |
Reclassifications from Accumu_4
Reclassifications from Accumulated Other Comprehensive Income - Changes in the Accumulated Balance of Components of Other Comprehensive Earnings/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||||
Balance at beginning of period | $ 26,074 | $ 25,195 | $ 26,074 | $ 25,195 | $ 28,100 | |||||||
Total other comprehensive earnings/(losses) | (635) | 1,149 | (1,149) | |||||||||
Less: (earnings)/loss attributable to noncontrolling interests | 2 | (28) | 17 | |||||||||
Tax (expense)/benefit on reclassifications | $ (111) | $ (310) | $ (15) | (337) | $ (156) | $ (272) | $ (84) | (154) | (773) | (666) | (114) | |
Other comprehensive earnings/(losses) attributable to Mondelēz International | (633) | 1,121 | (1,132) | |||||||||
Balance at end of period | 25,713 | 26,074 | 25,713 | 26,074 | 25,195 | |||||||
Currency Translation Adjustments | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||||
Balance at beginning of period | (7,740) | (8,910) | (7,740) | (8,910) | (8,006) | |||||||
Currency translation adjustments | (698) | 984 | (843) | |||||||||
Equity method investment transactions | 6 | 0 | 57 | |||||||||
Tax (expense)/benefit | (173) | 214 | (135) | |||||||||
Total other comprehensive earnings/(losses) | (865) | 1,198 | (921) | |||||||||
Less: (earnings)/loss attributable to noncontrolling interests | 2 | (28) | 17 | |||||||||
Balance at end of period | (8,603) | (7,740) | (8,603) | (7,740) | (8,910) | |||||||
Pension and Other Benefits | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||||
Balance at beginning of period | (2,144) | (2,087) | (2,144) | (2,087) | (1,934) | |||||||
Total other comprehensive earnings/(losses) | 284 | (57) | (153) | |||||||||
Net actuarial gain/(loss) arising during period | 36 | (71) | (491) | |||||||||
Tax (expense)/benefit on net actuarial gain/(loss) | (16) | 50 | 70 | |||||||||
Currency impact, pension and other benefit plans | 92 | (183) | 128 | |||||||||
Balance at end of period | (1,860) | (2,144) | (1,860) | (2,144) | (2,087) | |||||||
Derivative Cash Flow Hedges | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||||
Balance at beginning of period | (113) | (121) | (113) | (121) | (46) | |||||||
Total other comprehensive earnings/(losses) | (54) | 8 | (75) | |||||||||
Unrealized gain/(loss) in fair value | (58) | (17) | (151) | |||||||||
Tax (expense)/benefit on net derivative gain/(loss) | 6 | 9 | 20 | |||||||||
Currency impact, derivative cash flow hedges | 7 | (11) | 3 | |||||||||
Balance at end of period | (167) | (113) | (167) | (113) | (121) | |||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||||
Balance at beginning of period | $ (9,997) | $ (11,118) | (9,997) | (11,118) | (9,986) | |||||||
Total other comprehensive earnings/(losses) | (633) | 1,121 | (1,132) | |||||||||
Balance at end of period | $ (10,630) | $ (9,997) | (10,630) | (9,997) | (11,118) | |||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other Benefits | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||||
Amortization of experience losses and prior service costs | 168 | 174 | 150 | |||||||||
Settlement losses | 40 | 38 | 36 | |||||||||
Tax (expense)/benefit on reclassifications | [1] | (36) | (65) | (46) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||||
Tax (expense)/benefit on reclassifications | [1] | 2 | (6) | (42) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Currency exchange contracts | Forecasted transactions | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||||
Losses/(gains) reclassified into net earnings | [2] | 0 | 4 | 3 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Commodity contracts | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||||
Losses/(gains) reclassified into net earnings | [2] | 0 | 29 | 9 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Interest rate contracts | ||||||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||||||
Losses/(gains) reclassified into net earnings | [3] | $ (11) | $ 0 | $ 83 | ||||||||
[1] | Taxes reclassified to earnings are recorded within the provision for income taxes. | |||||||||||
[2] | These reclassified gains or losses are recorded within cost of sales. | |||||||||||
[3] | These reclassified losses are recorded within interest and other expense, net. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||||||||||||
Discrete tax expense from finalizing accounting for new provisions | $ 19 | ||||||||||||
Discrete tax expense related to changes in our indefinite reinvestment assertion | 60 | ||||||||||||
Decrease in provisional transition tax recorded in prior year | $ (38) | ||||||||||||
U.S. tax reform transition tax (benefit)/tax | $ 1,317 | ||||||||||||
U.S. tax reform transition tax liability (before payments) | 1,279 | ||||||||||||
Provisional deferred tax benefit | $ 1,311 | ||||||||||||
Deferred tax benefit recorded after finalizing accounting for revaluation of U.S. deferred tax liabilities | $ 1,295 | ||||||||||||
Effective tax rate | 27.20% | 21.30% | 7.80% | ||||||||||
Discrete one-time events expense (benefit) | $ 128 | $ (97) | $ (161) | ||||||||||
Gain on equity method investment transactions | 21 | $ 757 | $ 0 | $ 0 | $ 40 | $ 0 | $ 0 | $ 0 | 778 | 40 | 43 | ||
Tax benefit from audit settlements and statue of limitations | 81 | ||||||||||||
Loss carryforwards | 3,744 | 3,744 | |||||||||||
Loss carryforwards, expire at various dates between 2019 and 2038 | 1,114 | 1,114 | |||||||||||
Loss carryforwards, indefinitely | 2,630 | 2,630 | |||||||||||
Unremitted earnings indefinitely reinvested | 1,700 | 1,700 | |||||||||||
Deferred tax liabilities not recognized to unremitted earnings indefinitely reinvested | 115 | 115 | |||||||||||
Unrecognized tax benefits | 516 | $ 579 | 516 | $ 579 | $ 610 | $ 579 | $ 756 | ||||||
Impact on tax provision from unrecognized tax benefits | 463 | 463 | 524 | ||||||||||
Unrecognized tax benefits reasonably possible increase resulting from unfavorable audit developments | 40 | ||||||||||||
Unrecognized tax benefits reasonably possible decrease resulting from audit settlements and the expiration of statutes of limitations in various jurisdictions | 151 | 151 | |||||||||||
Unrecognized tax benefits, income tax penalties and interest accrued | 180 | 180 | $ 212 | ||||||||||
Net benefit for interest and penalties | $ 9 | ||||||||||||
Unremitted Foreign Earnings And Profits [Member] | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Accumulated foreign earnings and profits, percentage | 8.00% | ||||||||||||
Liquid Assets | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Accumulated foreign earnings and profits, percentage | 15.50% | ||||||||||||
Keurig | Keurig with Dr Pepper Snapple Group, Inc. | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Deferred tax expense related to gain on equity method investment transaction | $ 8 | 184 | $ 192 | ||||||||||
KDP | Keurig with Dr Pepper Snapple Group, Inc. | |||||||||||||
Income Tax Contingency [Line Items] | |||||||||||||
Gain on equity method investment transactions | $ 757 | $ 778 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings/(losses) from continuing operations before income taxes: | |||||||||||
United States | $ (170) | $ 354 | $ (364) | ||||||||
Outside United States | 3,012 | 2,770 | 1,818 | ||||||||
Earnings before income taxes | 2,842 | 3,124 | 1,454 | ||||||||
United States federal: | |||||||||||
Current | (34) | 1,322 | (227) | ||||||||
Deferred | 171 | (1,274) | 127 | ||||||||
Federal income tax | 137 | 48 | (100) | ||||||||
State and local: | |||||||||||
Current | 23 | 32 | 7 | ||||||||
Deferred | 61 | 30 | 7 | ||||||||
State and local taxes | 84 | 62 | 14 | ||||||||
Total United States | 221 | 110 | (86) | ||||||||
Outside United States: | |||||||||||
Current | 552 | 541 | 490 | ||||||||
Deferred | 0 | 15 | (290) | ||||||||
Total outside United States | 552 | 556 | 200 | ||||||||
Total provision for income taxes | $ 111 | $ 310 | $ 15 | $ 337 | $ 156 | $ 272 | $ 84 | $ 154 | $ 773 | $ 666 | $ 114 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory rate | 21.00% | 35.00% | 35.00% | |
Increase/(decrease) resulting from: | ||||
State and local income taxes, net of federal tax benefit | 0.40% | 0.80% | 0.80% | |
Foreign rate differences | (1.90%) | (10.80%) | (18.60%) | |
Changes in judgment on realizability of deferred tax assets | (0.40%) | 3.20% | 0.00% | |
Reversal of other tax accruals no longer required | (1.80%) | (1.70%) | (7.60%) | |
Tax accrual on investment in Keurig (including tax impact of the gain from the KDP transaction) | 8.40% | 1.20% | 1.20% | |
Excess tax benefits from equity compensation | (0.80%) | (1.20%) | 0.00% | |
Tax legislation (non-U.S. tax reform) | 0.30% | (2.60%) | (4.00%) | |
U.S. tax reform - deferred benefit from tax rate change | 0.00% | (41.50%) | 0.00% | |
U.S. tax reform - transition tax | (1.30%) | 42.20% | 0.00% | |
U.S. tax reform - changes in indefinite reinvestment assertion | 2.10% | (2.00%) | 0.00% | |
Foreign tax provisions under TCJA (GILTI, FDII and BEAT)(1) | [1] | 1.10% | 0.00% | 0.00% |
Other | 0.10% | (1.30%) | 1.00% | |
Effective tax rate | 27.20% | 21.30% | 7.80% | |
[1] | The Tax Cuts and Jobs Act of 2017 ("TCJA") established the Global Intangible Low-Tax Income ("GILTI") provision, which taxes U.S. allocated expenses and certain income from foreign operations; the Foreign-Derived Intangible Income ("FDII") provision, which allows a deduction against certain types of US taxable income resulting in a lower effective US tax rate on such income; and the Base Erosion Anti-abuse Tax ("BEAT"), which is a new minimum tax based on cross-border service payments by U.S. entities. |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities Temporary Differences (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Accrued postretirement and postemployment benefits | $ 147 | $ 191 |
Accrued pension costs | 349 | 313 |
Other employee benefits | 147 | 155 |
Accrued expenses | 283 | 269 |
Loss carryforwards | 707 | 773 |
Tax credit carryforwards | 747 | 370 |
Other | 302 | 342 |
Total deferred income tax assets | 2,682 | 2,413 |
Valuation allowance | (1,153) | (853) |
Net deferred income tax assets | 1,529 | 1,560 |
Deferred income tax liabilities: | ||
Intangible assets | (3,861) | (3,977) |
Property, plant and equipment | (473) | (452) |
Other | (492) | (153) |
Total deferred income tax liabilities | (4,826) | (4,582) |
Net deferred income tax liabilities | $ (3,297) | $ (3,022) |
Income Taxes - Change in Unreco
Income Taxes - Change in Unrecognized Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
January 1 | $ 579 | $ 610 | $ 756 |
Increases from positions taken during prior periods | 36 | 33 | 18 |
Decreases from positions taken during prior periods | (43) | (93) | (123) |
Increases from positions taken during the current period | 57 | 64 | 90 |
Decreases relating to settlements with taxing authorities | (45) | (54) | (75) |
Reductions resulting from the lapse of the applicable statute of limitations | (31) | (29) | (43) |
Currency/other | (37) | 48 | (13) |
December 31 | $ 516 | $ 579 | $ 610 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net earnings | $ 826 | [1] | $ 1,197 | [1] | $ 320 | [1] | $ 1,052 | [1] | $ 703 | [1] | $ 982 | [1] | $ 500 | [1] | $ 657 | [1] | $ 3,395 | $ 2,842 | $ 1,645 |
Noncontrolling interest (earnings) | (3) | (3) | (2) | (6) | (8) | (1) | (2) | (3) | (14) | (14) | (10) | ||||||||
Net earnings attributable to Mondelēz International | $ 823 | $ 1,194 | $ 318 | $ 1,046 | $ 695 | $ 981 | $ 498 | $ 654 | $ 3,381 | $ 2,828 | $ 1,635 | ||||||||
Weighted-average shares for basic EPS (in shares) | 1,457 | 1,466 | 1,475 | 1,489 | 1,497 | 1,507 | 1,519 | 1,529 | 1,472 | 1,513 | 1,556 | ||||||||
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares (in shares) | 13 | 14 | 13 | 16 | 16 | 17 | 20 | 21 | 14 | 18 | 17 | ||||||||
Weighted-average shares for diluted EPS (in shares) | 1,470 | 1,480 | 1,488 | 1,505 | 1,513 | 1,524 | 1,539 | 1,550 | 1,486 | 1,531 | 1,573 | ||||||||
Basic earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.56 | $ 0.81 | $ 0.22 | $ 0.70 | $ 0.46 | $ 0.65 | $ 0.33 | $ 0.43 | $ 2.30 | $ 1.87 | $ 1.05 | ||||||||
Diluted earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.56 | $ 0.81 | $ 0.21 | $ 0.70 | $ 0.46 | $ 0.64 | $ 0.32 | $ 0.42 | $ 2.28 | $ 1.85 | $ 1.04 | ||||||||
[1] | See the following table for significant items that affected the comparability of earnings each quarter. |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Antidilutive Mondelez International stock options excluded from the calculation of diluted EPS | 11.6 | 8.5 | 7.8 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 4 |
Number of customers accounted for 10% or more of net revenue | No single customer accounted for 10% or more of our net revenues from continuing operations in 2018 |
Customer Concentration Risk | Net Revenues | Five Largest Customers | |
Segment Reporting Information [Line Items] | |
Largest customer, percentage of net revenues | 16.80% |
Customer Concentration Risk | Net Revenues | Ten Largest Customers | |
Segment Reporting Information [Line Items] | |
Largest customer, percentage of net revenues | 23.00% |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | $ 6,773 | $ 6,288 | $ 6,112 | $ 6,765 | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 25,938 | $ 25,896 | $ 25,923 | ||
Latin America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 3,202 | 3,566 | 3,392 | ||||||||||
AMEA | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 5,729 | 5,739 | 5,816 | ||||||||||
Europe | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 10,122 | 9,794 | 9,755 | ||||||||||
North America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | $ 6,885 | $ 6,797 | $ 6,960 | ||||||||||
[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. |
Segment Reporting - Operating I
Segment Reporting - Operating Income by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment Reporting Information [Line Items] | ||||||||
Operating income | $ 3,312 | $ 3,462 | $ 2,554 | |||||
Unrealized gains/(losses) on hedging activities (mark-to-market impacts) | 141 | (96) | (94) | |||||
General corporate expenses | (335) | (282) | (287) | |||||
Amortization of intangibles | (176) | (178) | (176) | |||||
Net gain on divestitures | $ 2 | $ 187 | $ (3) | $ 0 | 0 | 186 | 9 | |
Acquisition-related costs | (13) | 0 | (1) | |||||
Benefit plan non-service income | [1] | 50 | 44 | 15 | ||||
Interest and other expense, net | (520) | (382) | (1,115) | |||||
Earnings before income taxes | 2,842 | 3,124 | 1,454 | |||||
Latin America | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating income | 410 | 564 | 272 | |||||
AMEA | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating income | 702 | 514 | 505 | |||||
Europe | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating income | 1,734 | 1,610 | 1,198 | |||||
North America | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Operating income | $ 849 | $ 1,144 | $ 1,128 | |||||
[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 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 - Total Asset
Segment Reporting - Total Assets by Segment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 62,729 | $ 62,957 | $ 61,506 | |
Equity Method Investments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 7,123 | 6,193 | 5,553 |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 4,699 | 4,948 | 5,156 |
AMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 9,571 | 9,883 | 10,031 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 19,426 | 21,611 | 19,934 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | 21,015 | 20,709 | 20,694 |
Unallocated Assets and Adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [2] | $ 895 | $ (387) | $ 138 |
[1] | Segment assets do not reflect outstanding intercompany asset balances as intercompany accounts are eliminated at a segment level. | |||
[2] | Unallocated assets consist primarily of cash and cash equivalents, deferred income taxes, centrally held property, plant and equipment, prepaid pension assets and derivative financial instrument balances. Final adjustments for jurisdictional netting of deferred tax assets and liabilities is done at a consolidated level. |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation Expense and Capital Expenditure by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total depreciation expense | $ 635 | $ 638 | $ 647 |
Total capital expenditures | 1,095 | 1,014 | 1,224 |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Total depreciation expense | 97 | 107 | 92 |
Total capital expenditures | 261 | 226 | 321 |
AMEA | |||
Segment Reporting Information [Line Items] | |||
Total depreciation expense | 159 | 157 | 161 |
Total capital expenditures | 277 | 280 | 349 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Total depreciation expense | 248 | 239 | 253 |
Total capital expenditures | 326 | 278 | 294 |
North America | |||
Segment Reporting Information [Line Items] | |||
Total depreciation expense | 131 | 135 | 141 |
Total capital expenditures | $ 231 | $ 230 | $ 260 |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | $ 6,773 | $ 6,288 | $ 6,112 | $ 6,765 | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 25,938 | $ 25,896 | [1] | $ 25,923 | [1] |
United States | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 6,401 | 6,275 | 6,329 | ||||||||||
Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | $ 19,537 | $ 19,621 | $ 19,594 | ||||||||||
[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. |
Segment Reporting - Long-lived
Segment Reporting - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | |||
Total long-lived assets | $ 9,020 | $ 9,201 | $ 8,737 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total long-lived assets | 1,481 | 1,468 | 1,508 |
Other | |||
Segment Reporting Information [Line Items] | |||
Total long-lived assets | $ 7,539 | $ 7,733 | $ 7,229 |
Segment Reporting - Net Reven_3
Segment Reporting - Net Revenues by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | [1] | |
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | $ 6,773 | $ 6,288 | $ 6,112 | $ 6,765 | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 25,938 | $ 25,896 | $ 25,923 | ||
Biscuits | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 11,185 | 10,839 | 10,656 | ||||||||||
Chocolate | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 8,177 | 8,032 | 7,673 | ||||||||||
Gum & Candy | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 3,491 | 3,638 | 3,947 | ||||||||||
Beverages | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 1,184 | 1,355 | 1,445 | ||||||||||
Cheese & Grocery | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 1,901 | 2,032 | 2,202 | ||||||||||
Latin America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 3,202 | 3,566 | 3,392 | ||||||||||
Latin America | Biscuits | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 727 | 779 | 734 | ||||||||||
Latin America | Chocolate | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 747 | 862 | 743 | ||||||||||
Latin America | Gum & Candy | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 865 | 919 | 938 | ||||||||||
Latin America | Beverages | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 533 | 665 | 657 | ||||||||||
Latin America | Cheese & Grocery | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 330 | 341 | 320 | ||||||||||
AMEA | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 5,729 | 5,739 | 5,816 | ||||||||||
AMEA | Biscuits | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 1,724 | 1,637 | 1,592 | ||||||||||
AMEA | Chocolate | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 2,080 | 2,008 | 1,897 | ||||||||||
AMEA | Gum & Candy | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 879 | 919 | 953 | ||||||||||
AMEA | Beverages | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 553 | 569 | 611 | ||||||||||
AMEA | Cheese & Grocery | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 493 | 606 | 763 | ||||||||||
Europe | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 10,122 | 9,794 | 9,755 | ||||||||||
Europe | Biscuits | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 3,127 | 2,944 | 2,765 | ||||||||||
Europe | Chocolate | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 5,083 | 4,869 | 4,778 | ||||||||||
Europe | Gum & Candy | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 736 | 775 | 916 | ||||||||||
Europe | Beverages | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 98 | 121 | 177 | ||||||||||
Europe | Cheese & Grocery | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 1,078 | 1,085 | 1,119 | ||||||||||
North America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 6,885 | 6,797 | 6,960 | ||||||||||
North America | Biscuits | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 5,607 | 5,479 | 5,565 | ||||||||||
North America | Chocolate | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 267 | 293 | 255 | ||||||||||
North America | Gum & Candy | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 1,011 | 1,025 | 1,140 | ||||||||||
North America | Beverages | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 0 | 0 | 0 | ||||||||||
North America | Cheese & Grocery | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | $ 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. |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summary of Operating Results (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Net revenues | $ 6,773 | $ 6,288 | $ 6,112 | $ 6,765 | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 25,938 | $ 25,896 | [1] | $ 25,923 | [1] | ||||||||
Gross profit | 2,549 | 2,414 | 2,540 | 2,849 | 2,653 | 2,549 | 2,314 | 2,518 | 10,352 | 10,034 | 10,104 | ||||||||||
Provision for income taxes | (111) | (310) | (15) | (337) | (156) | (272) | (84) | (154) | (773) | (666) | (114) | ||||||||||
Gain on equity method investment transactions | 21 | 757 | 0 | 0 | 40 | 0 | 0 | 0 | 778 | 40 | 43 | ||||||||||
Equity method investment net earnings | 149 | 80 | 87 | 232 | 95 | 92 | 67 | 90 | 548 | 344 | 262 | ||||||||||
Net earnings | 826 | [2] | 1,197 | [2] | 320 | [2] | 1,052 | [2] | 703 | [2] | 982 | [2] | 500 | [2] | 657 | [2] | 3,395 | 2,842 | 1,645 | ||
Noncontrolling interest (earnings) | (3) | (3) | (2) | (6) | (8) | (1) | (2) | (3) | (14) | (14) | (10) | ||||||||||
Net earnings attributable to Mondelēz International | $ 823 | $ 1,194 | $ 318 | $ 1,046 | $ 695 | $ 981 | $ 498 | $ 654 | $ 3,381 | $ 2,828 | $ 1,635 | ||||||||||
Weighted-average shares for basic EPS (in shares) | 1,457 | 1,466 | 1,475 | 1,489 | 1,497 | 1,507 | 1,519 | 1,529 | 1,472 | 1,513 | 1,556 | ||||||||||
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares (in shares) | 13 | 14 | 13 | 16 | 16 | 17 | 20 | 21 | 14 | 18 | 17 | ||||||||||
Weighted-average shares for diluted EPS (in shares) | 1,470 | 1,480 | 1,488 | 1,505 | 1,513 | 1,524 | 1,539 | 1,550 | 1,486 | 1,531 | 1,573 | ||||||||||
Per share data: | |||||||||||||||||||||
Basic earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.56 | $ 0.81 | $ 0.22 | $ 0.70 | $ 0.46 | $ 0.65 | $ 0.33 | $ 0.43 | $ 2.30 | $ 1.87 | $ 1.05 | ||||||||||
Diluted earnings per share attributable to Mondelēz International (in dollars per share) | 0.56 | 0.81 | 0.21 | 0.70 | 0.46 | 0.64 | 0.32 | 0.42 | $ 2.28 | $ 1.85 | $ 1.04 | ||||||||||
Dividends declared (in dollars per share) | $ 0.26 | $ 0.26 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.19 | $ 0.19 | |||||||||||||
[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] | See the following table for significant items that affected the comparability of earnings each quarter. |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) - Pre-Tax (Charges)/Gains in Earnings from Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Asset impairment and exit costs | $ (99) | $ (125) | $ (111) | $ (54) | $ (118) | $ (182) | $ (176) | $ (166) | $ (389) | $ (642) | $ (837) |
Divestiture-related costs | (2) | 0 | 0 | 3 | (8) | 2 | (9) | (19) | |||
Gain on equity method investment transactions | 21 | 757 | 0 | 0 | 40 | 0 | 0 | 0 | 778 | 40 | 43 |
Net gain on divestitures | 2 | 187 | (3) | 0 | 0 | 186 | 9 | ||||
Gain/(loss) related to interest rate swaps | 0 | 1 | (5) | 14 | |||||||
Loss on early extinguishment of debt and related expenses | 0 | 0 | (140) | 0 | 0 | 0 | (11) | 0 | $ (140) | $ (11) | $ (427) |
Impact from the resolution of tax matters | 26 | 0 | (15) | 0 | 8 | 215 | 0 | 58 | |||
Impact from pension participation changes | (17) | (3) | (409) | 0 | |||||||
Pre-tax charges/(gains) in earnings from continuing operations | $ (71) | $ 630 | $ (680) | $ (37) | $ (116) | $ 222 | $ (199) | $ (127) |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 1,022 | $ 481 | $ 482 | |
Additions, Charged to Costs and Expenses | 402 | 575 | 84 | |
Additions, Charged to Other Accounts | [1] | (23) | 26 | (39) |
Deductions | [2] | 137 | 60 | 46 |
Balance at End of Period | 1,264 | 1,022 | 481 | |
Allowance for trade receivables | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 50 | 58 | 54 | |
Additions, Charged to Costs and Expenses | 3 | 21 | 18 | |
Additions, Charged to Other Accounts | [1] | (6) | (8) | (1) |
Deductions | [2] | 7 | 21 | 13 |
Balance at End of Period | 40 | 50 | 58 | |
Allowance for other current receivables | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 98 | 93 | 109 | |
Additions, Charged to Costs and Expenses | (10) | 6 | (2) | |
Additions, Charged to Other Accounts | [1] | (24) | 6 | (13) |
Deductions | [2] | 17 | 7 | 1 |
Balance at End of Period | 47 | 98 | 93 | |
Allowance for long-term receivables | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 21 | 20 | 16 | |
Additions, Charged to Costs and Expenses | 0 | (1) | 1 | |
Additions, Charged to Other Accounts | [1] | 3 | 3 | 3 |
Deductions | [2] | 0 | 1 | 0 |
Balance at End of Period | 24 | 21 | 20 | |
Allowance for deferred taxes | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 853 | 310 | 303 | |
Additions, Charged to Costs and Expenses | 409 | 549 | 67 | |
Additions, Charged to Other Accounts | [1] | 4 | 25 | (28) |
Deductions | [2] | 113 | 31 | 32 |
Balance at End of Period | $ 1,153 | $ 853 | $ 310 | |
[1] | Primarily related to divestitures, acquisitions and currency translation. | |||
[2] | Represents charges for which allowances were created. |