Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MDLZ | |
Entity Registrant Name | Mondelez International, Inc. | |
Entity Central Index Key | 1103982 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,626,622,679 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Net revenues | $7,762 | $8,641 | [1] |
Cost of sales | 4,821 | 5,437 | |
Gross profit | 2,941 | 3,204 | |
Selling, general and administrative expenses | 1,924 | 2,265 | |
Asset impairment and exit costs | 160 | 42 | |
Amortization of intangibles | 46 | 54 | |
Operating income | 811 | 843 | |
Interest and other expense, net | 386 | 720 | |
Earnings before income taxes | 425 | 123 | |
Provision / (benefit) for income taxes | 113 | -27 | |
Net earnings | 312 | 150 | |
Noncontrolling interest | -12 | -13 | |
Net earnings attributable to Mondelez International | $324 | $163 | |
Per share data: | |||
Basic earnings per share attributable to Mondelez International | $0.20 | $0.10 | |
Diluted earnings per share attributable to Mondelez International | $0.19 | $0.09 | |
Dividends declared | $0.15 | $0.14 | |
[1] | During 2014, 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 2015 presentation. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Earnings (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Net earnings | $312 | $150 | ||
Currency translation adjustment: | ||||
Translation adjustment | -1,721 | -233 | ||
Tax (expense) / benefit | -192 | 6 | ||
Pension and other benefits: | ||||
Net actuarial gain / (loss) arising during period | 6 | |||
Reclassification of (gains) / losses into net earnings: | ||||
Amortization of experience losses and prior service costs | 52 | [1] | 34 | [1] |
Settlement losses | 3 | [1] | 7 | [1] |
Tax (expense) / benefit | -13 | -13 | ||
Derivatives accounted for as hedges: | ||||
Net derivative gains / (losses) | -56 | -56 | ||
Reclassification of (gains) / losses into net earnings | -4 | -2 | ||
Tax (expense) / benefit | 16 | 23 | ||
Total other comprehensive earnings / (losses) | -1,915 | -228 | ||
Comprehensive earnings / (losses) | -1,603 | -78 | ||
less: Comprehensive earnings / (losses) attributable to noncontrolling interests | -37 | -14 | ||
Comprehensive earnings / (losses) attributable to Mondelez International | ($1,566) | ($64) | ||
[1] | These items are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans. |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $1,835 | $1,631 |
Trade receivables (net of allowances of $63 at March 31, 2015 and $66 at December 31, 2014) | 4,061 | 3,802 |
Other receivables (net of allowances of $93 at March 31, 2015 and $91 at December 31, 2014) | 852 | 949 |
Inventories, net | 3,421 | 3,480 |
Deferred income taxes | 557 | 480 |
Other current assets | 1,138 | 1,408 |
Total current assets | 11,864 | 11,750 |
Property, plant and equipment, net | 9,261 | 9,827 |
Goodwill | 22,356 | 23,389 |
Intangible assets, net | 19,434 | 20,335 |
Prepaid pension assets | 51 | 53 |
Other assets | 1,240 | 1,461 |
TOTAL ASSETS | 64,206 | 66,815 |
LIABILITIES | ||
Short-term borrowings | 3,688 | 1,305 |
Current portion of long-term debt | 2,195 | 1,530 |
Accounts payable | 5,199 | 5,299 |
Accrued marketing | 1,872 | 2,047 |
Accrued employment costs | 803 | 946 |
Other current liabilities | 2,709 | 2,880 |
Total current liabilities | 16,466 | 14,007 |
Long-term debt | 12,822 | 13,865 |
Deferred income taxes | 5,373 | 5,512 |
Accrued pension costs | 2,406 | 2,912 |
Accrued postretirement health care costs | 524 | 526 |
Other liabilities | 2,003 | 2,140 |
TOTAL LIABILITIES | 39,594 | 38,962 |
Commitments and Contingencies (Note 11) | ||
EQUITY | ||
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at March 31, 2015 and December 31, 2014) | 0 | 0 |
Additional paid-in capital | 31,645 | 31,651 |
Retained earnings | 14,582 | 14,529 |
Accumulated other comprehensive losses | -9,208 | -7,318 |
Treasury stock, at cost (370,308,929 shares at March 31, 2015 and 332,896,779 shares at December 31, 2014) | -12,473 | -11,112 |
Total Mondelez International Shareholders' Equity | 24,546 | 27,750 |
Noncontrolling interest | 66 | 103 |
TOTAL EQUITY | 24,612 | 27,853 |
TOTAL LIABILITIES AND EQUITY | $64,206 | $66,815 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Trade receivables, allowances | $63 | $66 |
Other receivables, allowances | $93 | $91 |
Common Stock, no par value | ||
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common Stock, shares issued | 1,996,537,778 | 1,996,537,778 |
Treasury stock, shares | 370,308,929 | 332,896,779 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Equity (USD $) | Total | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/(Losses) | Treasury Stock | Noncontrolling Interest | |
In Millions, unless otherwise specified | |||||||
Balances at Dec. 31, 2013 | $32,532 | $31,396 | $13,419 | ($2,889) | ($9,553) | $159 | [1] |
Comprehensive earnings / (losses): | |||||||
Net earnings | 2,201 | 2,184 | 17 | [1] | |||
Other comprehensive losses, net of income taxes | -4,462 | -4,429 | -33 | [1] | |||
Exercise of stock options and issuance of other stock awards | 505 | 271 | -98 | 332 | |||
Common Stock repurchased | -1,891 | -1,891 | |||||
Cash dividends declared ($0.15 per share for 2015 and $0.58 per share for 2014) | -976 | -976 | |||||
Dividends paid on noncontrolling interest and other activities | -56 | -16 | -40 | [1] | |||
Balances at Dec. 31, 2014 | 27,853 | 31,651 | 14,529 | -7,318 | -11,112 | 103 | [1] |
Comprehensive earnings / (losses): | |||||||
Net earnings | 312 | 324 | -12 | [1] | |||
Other comprehensive losses, net of income taxes | -1,915 | -1,890 | -25 | [1] | |||
Exercise of stock options and issuance of other stock awards | 106 | -6 | -27 | 139 | |||
Common Stock repurchased | -1,500 | -1,500 | |||||
Cash dividends declared ($0.15 per share for 2015 and $0.58 per share for 2014) | -244 | -244 | |||||
Balances at Mar. 31, 2015 | $24,612 | $31,645 | $14,582 | ($9,208) | ($12,473) | $66 | [1] |
[1] | Noncontrolling interest as of March 31, 2014 was $127 million, as compared to $159 million as of January 1, 2014. The change of $(32) million during the three months ended March 31, 2014 was due to $(18) million of dividends paid, $(13) million of net earnings and $(1) million of other comprehensive losses, net of taxes. |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash dividends declared, per share | $0.15 | $0.14 | $0.58 | |
Noncontrolling interest | $66 | $127 | $103 | $159 |
Change in noncontrolling interest | -32 | |||
Dividends paid to noncontrolling interest | -18 | -56 | ||
Net earnings | -12 | -13 | ||
Other comprehensive losses, net of taxes | ($1) |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES | ||
Net earnings | $312 | $150 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 232 | 262 |
Stock-based compensation expense | 36 | 35 |
Deferred income tax provision / (benefit) | 25 | -98 |
Asset impairments | 78 | 12 |
Loss on early extinguishment of debt | 708 | 492 |
Unrealized gain on planned coffee business divestiture currency hedges | -240 | |
Gain on monetization of planned coffee business divestiture currency hedges | -311 | |
Other non-cash items, net | 67 | 48 |
Change in assets and liabilities, net of acquisition and divestitures: | ||
Receivables, net | -558 | -305 |
Inventories, net | -178 | -299 |
Accounts payable | 317 | 67 |
Other current assets | -50 | -59 |
Other current liabilities | -481 | -815 |
Change in pension and postretirement assets and liabilities, net | -239 | -67 |
Net cash used in operating activities | -282 | -577 |
CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES | ||
Capital expenditures | -439 | -326 |
Proceeds from planned coffee business divestiture currency hedge settlements | 939 | |
Acquisition, net of cash received | -81 | |
Proceeds from sale of property, plant and equipment and other | -2 | 9 |
Net cash provided by / (used in) investing activities | 417 | -317 |
CASH PROVIDED BY / (USED IN) FINANCING ACTIVITIES | ||
Issuances of commercial paper, maturities greater than 90 days | 333 | 1,607 |
Repayments of commercial paper, maturities greater than 90 days | -96 | -723 |
Net issuances / (repayments) of other short-term borrowings | 2,154 | -68 |
Long-term debt proceeds | 3,601 | 2,994 |
Long-term debt repaid | -4,085 | -2,514 |
Repurchase of Common Stock | -1,500 | -468 |
Dividends paid | -249 | -238 |
Other | 27 | 40 |
Net cash provided by financing activities | 185 | 630 |
Effect of exchange rate changes on cash and cash equivalents | -116 | -27 |
Cash and cash equivalents: | ||
Increase / (decrease) | 204 | -291 |
Balance at beginning of period | 1,631 | 2,622 |
Balance at end of period | $1,835 | $2,331 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | ||
Mar. 31, 2015 | |||
Basis of Presentation | Note 1. Basis of Presentation | ||
The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries. | |||
Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our financial position and operating results. Net revenues and net earnings for any interim period are not necessarily indicative of future or annual results. | |||
We derived the condensed consolidated balance sheet data as of December 31, 2014 from audited financial statements, but do not include all disclosures required by U.S. GAAP. You should read these statements in conjunction with our consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2014. | |||
Accounting Calendar Change: | |||
In connection with moving toward a common consolidation date across the Company, in the first quarter of 2015, we changed the consolidation date for our North America segment from the last Saturday of each period to the last calendar day of each period. The change had a favorable impact of $39 million on net revenues and $19 million on operating income in the three months ended March 31, 2015. | |||
As a result of this change, each of our operating subsidiaries now reports results as of the last calendar day of the period. We believe the change will improve business planning and financial reporting by better matching the close dates of the operating subsidiaries and bringing the reporting dates to the period-end date. As the effect to prior-period results was not material, we have not revised prior-period results. | |||
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 such as in Venezuela) and realized exchange gains and losses on transactions in earnings. | |||
Venezuela. As prescribed by U.S. GAAP for highly inflationary economies, we have been accounting for the results of our Venezuelan subsidiaries using the U.S. dollar as the functional currency since January 1, 2010. | |||
On February 8, 2013, the Venezuelan government announced the devaluation of the official Venezuelan bolivar exchange rate from 4.30 bolivars to 6.30 bolivars to the U.S. dollar. The official rate of 6.30 is the rate applied to import food and other essential items, and we purchase a material portion of our imported raw materials using U.S. dollars secured at this rate. | |||
On January 24, 2014, the Venezuelan government announced the expansion of a new auction-based currency transaction program which became known as SICAD I and new profit margin controls. The application of the SICAD I rate was extended to include foreign investments and significant operating activities, including contracts for leasing and services, use and exploitation of patents and trademarks, payments of royalties and contracts for technology import and technical assistance. On March 24, 2014, the Venezuelan government launched a new market-based currency exchange market, SICAD II, and at that time indicated that it may be used voluntarily to exchange bolivars into U.S. dollars. | |||
As of March 31, 2014, we began to apply the SICAD I exchange rate to remeasure our bolivar-denominated net monetary assets, and we began translating our Venezuelan operating results at the SICAD I rate in the second quarter of 2014. On March 31, 2014, we recognized a $142 million currency remeasurement loss within selling, general and administrative expenses of our Latin America segment as a result of revaluing our bolivar-denominated net monetary assets from the official exchange rate of 6.30 bolivars to the U.S. dollar to the then-prevailing SICAD I exchange rate of 10.70 bolivars to the U.S. dollar. | |||
On February 10, 2015, the Venezuelan government combined the SICAD I and SICAD II (“SICAD”) exchange rate mechanisms and in addition created a new market-based SIMADI rate, while retaining the 6.30 official rate for food and other essentials. The Venezuelan government also announced an opening SICAD auction rate of 12.00 bolivars to the U.S. dollar, which as of March 31, 2015 is the prevailing SICAD rate until our specific industry group auctions make U.S. dollars available at another offered SICAD rate. We continue to expect to secure U.S. dollars at the SICAD rate in addition to the official rate. The SIMADI rate was designed as a free market exchange rate that makes U.S. dollars available for any transactions based on the available supply of U.S. dollars at the offered rate. As of March 31, 2015, the SIMADI exchange rate was 193.05 bolivars to the U.S. dollar and availability of U.S. dollars at the SIMADI rate was limited. At this time, we do not anticipate using the SIMADI rate frequently in managing our local operations. | |||
Our Venezuelan operations produce a range of biscuit, cheese & grocery, confectionery and beverage products. Based on the currency exchange developments this year, we reviewed our domestic and international sourcing of goods and services and the exchange rates we believe will be applicable. We evaluated the level of primarily raw material imports that we believe would continue to be sourced in exchange for U.S. dollars converted at the official 6.30 exchange rate. Our remaining imported goods and services would primarily be valued at the SICAD exchange rate. Imports that do not currently qualify for either the official rate or SICAD rate could be sourced at the SIMADI rate. | |||
We believe the SICAD rate continues to be the most economically representative rate for us to use to value our net monetary assets and translate our operating results in Venezuela. While some of our net monetary assets or liabilities qualify for settlement at the official exchange rate, other operations do not, and we have utilized the SICAD auction process and expect to use the new SIMADI auctions on an as needed basis. | |||
In the first quarter of 2015, we recognized an $11 million remeasurement loss, reflecting an increase in the SICAD exchange rate from 11.50 to 12.00 bolivars to the U.S. dollar. | |||
The following table sets forth net revenues for our Venezuelan operations for the three months ended March 31, 2015 (measured at the SICAD rate), and cash, net monetary assets and net assets of our Venezuelan subsidiaries as of March 31, 2015 (translated at a SICAD rate of 12.00 bolivars to the U.S. dollar): | |||
Venezuela operations | Three Months Ended March 31, 2015 | ||
Net revenues | $218 million or 2.8% of consolidated net revenues | ||
As of March 31, 2015 | |||
Cash | $313 million | ||
Net monetary assets | $234 million | ||
Net assets | $522 million | ||
Unlike the official rate that is fixed at 6.30 bolivars to the U.S. dollar, the SICAD rate can vary over time. If any of the three-tier currency exchange rates, or the application of the rates to our business, were to change, we would recognize additional currency losses, or gains, which could be significant. | |||
In light of the ongoing difficult macroeconomic environment in Venezuela, we continue to monitor and actively manage our investment and exposures in Venezuela. We plan to continue to do business in the country as long as we can successfully operate our business there. We strive to locally source and produce a significant amount of the products we sell in Venezuela. We have taken other protective measures against currency devaluation, such as converting monetary assets into non-monetary assets that we can use in our business. However, suitable protective measures have become less available and more expensive and may not offset further currency devaluation that could occur. | |||
Argentina. On January 23, 2014, the Central Bank of Argentina adjusted its currency policy, removed its currency stabilization measures and allowed the Argentine peso exchange rate to float relative to the U.S. dollar. On that day, the value of the Argentine peso relative to the U.S. dollar fell by 15%. In July 2014, Argentina had a technical default on its debt as the government was blocked from making payments on its restructured debt by certain creditors who did not participate in a debt restructuring in 2001. Further volatility in the exchange rate is expected. Since December 31, 2014 and through March 31, 2015, the value of the peso declined 4%. While the business operating environment remains challenging, we continue to monitor and actively manage our investment and exposures in Argentina. We continue refining our product portfolio to improve our product offerings, mix and profitability. We also continue to implement additional cost initiatives to protect the business. Further currency declines, economic controls or other business restrictions could have an adverse impact on our ongoing results of operations. Our Argentinian operations contributed approximately $175 million, or 2.3% of consolidated net revenues for the three months ended March 31, 2015. As of March 31, 2015, the net monetary liabilities of our Argentina operations were not material. Argentina is not designated as a highly-inflationary economy for accounting purposes and so we continue to record currency translation adjustments within equity and realized exchange gains and losses on transactions in earnings. | |||
Russia. During the fourth quarter of 2014, the value of the Russian ruble relative to the U.S. dollar declined 50%. In the first quarter of 2015, the value of the ruble relative to the U.S. dollar fluctuated significantly, declining 18% in January then increasing 17% across February and March. Due to the significant currency movements, we continue to take actions to protect our near-term operating results, financial condition and cash flow. Our operations in Russia contributed approximately $170 million, or 2.2% of consolidated net revenues for the three months ended March 31, 2015. As of March 31, 2015, the net monetary assets of our Russia operations were not material. Russia is not designated as a highly-inflationary economy for accounting purposes and so we continue to record currency translation adjustments within equity and realized exchange gains and losses on transactions in earnings. | |||
Ukraine. On February 5, 2015, the National Bank of Ukraine changed its currency policy by eliminating daily auctions, which effectively supported the exchange rate, and allowed the Ukrainian hryvnya exchange rate to float relative to the U.S. dollar. During the quarter, the International Monetary Fund also extended $18 billion of financing to Ukraine to support it meeting short- and near-term commitments. The value of the Ukrainian hryvnya relative to the U.S. dollar declined 49% from December 31, 2014 through March 31, 2015, and further volatility in the currency is expected. We continue to take actions to protect our near-term operating results, cash flow and financial condition. Our Ukrainian operations contributed approximately $45 million, or 0.6% of consolidated net revenues for the three months ended March 31, 2015. As of March 31, 2015, the net monetary assets of our Ukrainian operations were not material. Ukraine is not designated as a highly-inflationary economy for accounting purposes and so we continue to record currency translation adjustments within equity and realized exchange gains and losses on transactions in earnings. | |||
New Accounting Pronouncements: | |||
In April 2015, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that provides guidance on evaluating whether a cloud computing arrangement includes a software license. If there is a software license component, software licensing accounting should be applied; otherwise, service contract accounting should be applied. The ASU is effective for fiscal years beginning after December 31, 2015, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. | |||
In April 2015, the FASB issued an ASU that provides a practical expedient for reporting entities with a fiscal year end that does not coincide with a month end when measuring the fair value of plan assets of a defined benefit pension or other postretirement benefit plan. It allows the measurement of plan assets and obligations using the month end that is closest to the entity’s fiscal year end. The ASU requires prospective application and is effective for fiscal years beginning after December 31, 2015, with early adoption permitted. As our current fiscal year end coincides with a calendar month end, we do not expect the standard to have an impact on our consolidated financial statements. | |||
In April 2015, the FASB issued an ASU that simplifies the presentation of debt issuance costs. The standard requires debt issuance costs related to a recognized debt obligation to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt instead of being presented as an asset, similar to the presentation of debt discounts. The ASU requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. We plan to adopt the new standard on or by the January 1, 2016 effective date and are currently assessing the impact on our consolidated financial statements. | |||
In February 2015, the FASB issued an ASU that amends current consolidation guidance related to the evaluation of whether certain legal entities should be consolidated. The standard modifies both the variable interest entity (“VIE”) model and the voting interest model, including analyses of whether limited partnerships are VIEs and the impact of service fees and related party interests in determining if an entity is a VIE to the reporting entity. The guidance is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. We plan to adopt the new standard on the January 1, 2016 effective date and are currently assessing the impact on our consolidated financial statements. | |||
In January 2015, the FASB issued an ASU to simplify income statement classification by removing the concept of extraordinary items from U.S. GAAP. As a result, items that are both unusual and infrequent will no longer be separately reported net of tax after continuing operations. The guidance is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. The standard is not expected to have a material impact on our consolidated financial statements. | |||
In May 2014, the FASB issued an ASU on revenue recognition from contracts with customers. The new ASU outlines a new, single comprehensive model for companies to use in accounting for revenue. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for the goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including significant judgments made in recognizing revenue. The guidance is effective for annual reporting periods beginning after December 15, 2016, with early adoption prohibited. In April 2015, the FASB proposed to defer the effective date by one year and allow early adoption as of the original effective date; the deferral has not yet been approved by the board but approval is expected. The ASU may be applied retrospectively to historical periods presented or as a cumulative-effect adjustment as of the date of adoption. We plan to adopt the new standard on the January 1, 2017 effective date and are currently assessing the impact of the new standard on our consolidated financial statements. |
Divestitures_and_Acquisitions
Divestitures and Acquisitions | 3 Months Ended |
Mar. 31, 2015 | |
Divestitures and Acquisitions | Note 2. Divestitures and Acquisitions |
Planned Coffee Business Transactions: | |
On May 7, 2014, we announced that we entered into an agreement to combine our wholly owned coffee portfolio (outside of France) with D.E Master Blenders 1753 B.V. (“DEMB”). In conjunction with this transaction, Acorn Holdings B.V. (“AHBV”), owner of DEMB, also made a binding offer to receive our coffee business in France. The parties also invited our partners in certain joint ventures to join the new company. | |
During the first quarter of 2015, we entered into an agreement to sell our interest in a Japanese coffee joint venture to our joint venture partner so they may operate the business independently. In lieu of contributing our interest in the joint venture, we will instead contribute the net cash proceeds from the sale of the interest. Please see discussion of the pending divestiture of the Japanese coffee joint venture below under Other Divestiture and Acquisitions. | |
Upon completion of all proposed transactions, we expect to receive cash of approximately €4 billion and an equity interest of approximately 49 percent in the new company, to be called Jacobs Douwe Egberts (“JDE”). AHBV will hold a majority share in the proposed combined company and will have a majority of the seats on the board, which will be chaired by current DEMB Chairman Bart Becht. We will have certain minority rights. AHBV is owned by an investor group led by JAB Holding Company s.à r.l. | |
Once we have contributed our coffee businesses to the new company, we expect to record our interest in JDE as an equity method investment on our consolidated balance sheet and to include our share of its earnings prospectively within our continuing results of operations. We also anticipate recording a gain on the divested assets of our coffee business portfolio. | |
The transactions remain subject to regulatory approvals and the completion of employee information and consultation requirements. We continue to expect the transactions to be completed in the third quarter of 2015, subject to closing conditions, including regulatory approvals. In December 2014, the European Commission announced its intention to further evaluate the proposed transaction against EU antitrust regulations and in order to make a final determination on merger clearance, which we currently expect in the second quarter of 2015. We and DEMB also continue to undertake consultations with Works Councils and employee representatives as required in connection with the transactions. | |
In connection with the expected receipt of approximately €4 billion upon closing, we entered into currency exchange forward contracts in the second quarter of 2014 to lock in an expected U.S. dollar value of approximately $5 billion. On February 11, 2015, we monetized these forward contracts and realized total pre-tax gains of $939 million, of which $311 million was recognized in the first quarter of 2015. We also entered into new currency exchange forward contracts to lock in an expected euro/U.S. dollar exchange rate on the expected €4 billion cash receipt that generated a $240 million unrealized gain in the first quarter of 2015. The unrealized gain was recorded within interest and other expense, net and the asset derivative is recorded within other current assets. On April 17, 2015, we monetized the new forward contracts for a realized gain of $296 million and executed new currency exchange forward contracts to continue to lock in an expected U.S. dollar value on the receipt of the €4 billion at closing. Based on changes in the euro/U.S. dollar exchange rate, the actual closing date of the planned coffee business transactions and the settlement dates of the hedges or other hedges we may put into place, the actual amount of U.S. dollars we receive could change. | |
We have incurred incremental expenses related to readying our coffee businesses for the planned transactions that totaled $28 million in the three months ended March 31, 2015 and were recorded within selling, general and administrative expenses of primarily our Europe and Eastern Europe, Middle East and Africa segments and within our general corporate expenses. | |
Other Divestiture and Acquisitions: | |
On February 27, 2015, we announced our agreement to sell our 50 percent interest in a Japanese coffee joint venture to our joint venture partner. During the first quarter of 2015, we reclassified our $96 million held for sale investment from long-term other assets to other current assets, and we recognized $32 million of tax charges related to the pending sale. We also will divest $42 million of cumulative translation losses in connection with the sale. On April 23, 2015, we closed on the transaction and received cash proceeds of 27 billion Japanese yen ($225 million U.S. dollars as of April 23, 2015). | |
On February 16, 2015, we acquired a U.S. snacking company, Enjoy Life Foods (“Enjoy Life”) within our North America segment. We paid cash and settled debt totaling $81 million in connection with the acquisition. As of March 31, 2015, we recorded a preliminary $81 million purchase price allocation of $58 million in estimated identifiable intangible assets, $19 million of estimated goodwill and $4 million of other net assets. We currently expect to finalize the valuation in the second quarter of 2015. The acquisition-related costs and operating results of the acquisition were not material to our condensed consolidated financial statements as of and for the three months ended March 31, 2015. | |
On November 11, 2014, we announced the pending acquisition of a biscuit operation in Vietnam. The biscuit operation will become a subsidiary within our Asia Pacific segment. The total consideration to be paid is expected to be up to 12,656 billion Vietnamese dong ($596 million U.S. dollars as of March 31, 2015). We expect to close the initial phase of the transaction in mid 2015 after regulatory and other matters are resolved. We deposited $46 million in escrow upon signing the purchase agreement on November 10, 2014. We expect to pay approximately 9,935 billion Vietnamese dong ($468 million U.S. dollars as of March 31, 2015) and deposit an additional 991 billion Vietnamese dong ($47 million U.S. dollars as of March 31, 2015) in escrow upon completing the initial phase of the transaction in mid 2015, which we expect to fund from current borrowing capacity. The balance will be paid upon the satisfaction of final conditions, including the resolution of warranty or other claims and purchase price adjustments. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories | Note 3. Inventories | ||||||||
Inventories consisted of the following: | |||||||||
As of March 31, | As of December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Raw materials | $ | 1,210 | $ | 1,122 | |||||
Finished product | 2,211 | 2,358 | |||||||
Inventories, net | $ | 3,421 | $ | 3,480 | |||||
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment | Note 4. Property, Plant and Equipment | ||||||||
Property, plant and equipment consisted of the following: | |||||||||
As of March 31, | As of December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Land and land improvements | $ | 540 | $ | 574 | |||||
Buildings and building improvements | 2,946 | 3,117 | |||||||
Machinery and equipment | 11,107 | 11,737 | |||||||
Construction in progress | 1,490 | 1,484 | |||||||
16,083 | 16,912 | ||||||||
Accumulated depreciation | (6,822 | ) | (7,085 | ) | |||||
Property, plant and equipment, net | $ | 9,261 | $ | 9,827 | |||||
In connection with our 2012-2014 Restructuring Program and 2014-2018 Restructuring Program (see Note 6, Restructuring Programs), we recorded non-cash asset write-downs (including accelerated depreciation and asset impairments) of $78 million in the three months ended March 31, 2015 and $12 million in the three months ended March 31, 2014. These charges were recorded in the consolidated statements of earnings within asset impairment and exit costs as follows: | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Latin America | $ | 13 | $ | – | |||||
Asia Pacific | 19 | – | |||||||
EEMEA | – | – | |||||||
Europe | 25 | 1 | |||||||
North America | 21 | 11 | |||||||
Total non-cash asset write-downs | $ | 78 | $ | 12 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets | ||||||||
Goodwill by reportable segment was: | |||||||||
As of March 31, | As of December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Latin America | $ | 1,004 | $ | 1,127 | |||||
Asia Pacific | 2,314 | 2,395 | |||||||
EEMEA | 1,775 | 1,942 | |||||||
Europe | 8,338 | 8,952 | |||||||
North America | 8,925 | 8,973 | |||||||
Goodwill | $ | 22,356 | $ | 23,389 | |||||
Intangible assets consisted of the following: | |||||||||
As of March 31, | As of December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Non-amortizable intangible assets | $ | 18,017 | $ | 18,810 | |||||
Amortizable intangible assets | 2,407 | 2,525 | |||||||
20,424 | 21,335 | ||||||||
Accumulated amortization | (990 | ) | (1,000 | ) | |||||
Intangible assets, net | $ | 19,434 | $ | 20,335 | |||||
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. At March 31, 2015, the weighted-average life of our amortizable intangible assets was 13.3 years. | |||||||||
Amortization expense for intangible assets was $46 million in the three months ended March 31, 2015 and $54 million in the three months ended March 31, 2014. We currently estimate annual amortization expense for each of the next five years to be approximately $190 million, estimated using March 31, 2015 exchange rates. | |||||||||
During our 2014 review of non-amortizable intangible assets, we recorded an impairment charge of $57 million within asset impairment and exit costs for the impairment of intangible assets in Asia Pacific and Europe. We also noted three brands with $341 million of aggregate book value as of December 31, 2014 that each had a fair value in excess of book value of 10% or less. While these intangible assets passed our annual impairment testing and we believe our current plans for each of these brands will allow them to continue to not be impaired, if 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. | |||||||||
Changes in goodwill and intangible assets consisted of: | |||||||||
Intangible | |||||||||
Goodwill | Assets, at Cost | ||||||||
(in millions) | |||||||||
Balance at January 1, 2015 | $ | 23,389 | $ | 21,335 | |||||
Changes due to: | |||||||||
Currency | (1,052 | ) | (969 | ) | |||||
Acquisition | 19 | 58 | |||||||
Balance at March 31, 2015 | $ | 22,356 | $ | 20,424 | |||||
Refer to Note 2, Divestitures and Acquisitions, for additional information related to the Enjoy Life acquisition completed in the first quarter. |
Restructuring_Programs
Restructuring Programs | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Restructuring Programs | Note 6. Restructuring Programs | ||||||||||||||||||||||||||||
2014-2018 Restructuring Program | |||||||||||||||||||||||||||||
On May 6, 2014, our Board of Directors approved a $3.5 billion restructuring program, comprised of approximately $2.5 billion in cash costs and $1 billion in non-cash costs (the “2014-2018 Restructuring Program”), and up to $2.2 billion of capital expenditures. The primary objective of the 2014-2018 Restructuring Program is to reduce our operating cost structure in both our supply chain and overhead costs. The program is intended primarily to cover severance as well as asset disposals and other manufacturing-related one-time costs. We expect to incur the majority of the program’s charges in 2015 and 2016 and to complete the program by year-end 2018. Since inception, we have incurred total restructuring and related implementation charges of $605 million related to the 2014-2018 Restructuring Program. | |||||||||||||||||||||||||||||
Restructuring Costs: | |||||||||||||||||||||||||||||
We recorded restructuring charges of $163 million in the three months ended March 31, 2015 within asset impairment and exit costs. The activity for the 2014-2018 Restructuring Program liability for the three months ended March 31, 2015 was: | |||||||||||||||||||||||||||||
Severance | Asset | Total | |||||||||||||||||||||||||||
and related | Write-downs | ||||||||||||||||||||||||||||
costs | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Liability balance, January 1, 2015 | $ | 224 | $ | – | $ | 224 | |||||||||||||||||||||||
Charges | 85 | 78 | 163 | ||||||||||||||||||||||||||
Cash spent | (39 | ) | – | (39 | ) | ||||||||||||||||||||||||
Non-cash settlements / adjustments | – | (78 | ) | (78 | ) | ||||||||||||||||||||||||
Currency | (14 | ) | – | (14 | ) | ||||||||||||||||||||||||
Liability balance, March, 31, 2015 | $ | 256 | $ | – | $ | 256 | |||||||||||||||||||||||
We spent $39 million in the three months ended March 31, 2015 in cash severance and related costs. We also recognized non-cash asset write-downs (including accelerated depreciation and asset impairments) and other non-cash adjustments totaling $78 million in the three months ended March 31, 2015. At March 31, 2015, $248 million of our net restructuring liability was recorded within other current liabilities and $8 million was recorded within other long-term liabilities. | |||||||||||||||||||||||||||||
Implementation Costs: | |||||||||||||||||||||||||||||
Implementation costs are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. We believe the disclosure of implementation costs provides readers of our financial statements with more information on the total costs of our 2014-2018 Restructuring Program. Implementation costs primarily relate to reorganizing our operations and facilities in connection with our supply chain reinvention program and other identified productivity and cost saving initiatives. The costs include incremental expenses related to the closure of facilities, costs to terminate certain contracts and the simplification of our information systems. Within our continuing results of operations, we recorded implementation costs of $61 million in the three months ended March 31, 2015. 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 2015 and 2014, we recorded restructuring and implementation costs related to the 2014-2018 Restructuring Program within operating income as follows: | |||||||||||||||||||||||||||||
Latin | Asia | EEMEA | Europe | North | Corporate (1) | Total | |||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Restructuring Costs | $ | 15 | $ | 25 | $ | 2 | $ | 109 | $ | 11 | $ | 1 | $ | 163 | |||||||||||||||
Implementation Costs | 9 | 4 | 4 | 20 | 9 | 15 | 61 | ||||||||||||||||||||||
Total | $ | 24 | $ | 29 | $ | 6 | $ | 129 | $ | 20 | $ | 16 | $ | 224 | |||||||||||||||
Total Project 2014-2015 (2) | |||||||||||||||||||||||||||||
Restructuring Costs | $ | 96 | $ | 41 | $ | 21 | $ | 200 | $ | 68 | $ | 11 | $ | 437 | |||||||||||||||
Implementation Costs | 25 | 13 | 8 | 57 | 14 | 51 | 168 | ||||||||||||||||||||||
Total | $ | 121 | $ | 54 | $ | 29 | $ | 257 | $ | 82 | $ | 62 | $ | 605 | |||||||||||||||
-1 | Includes adjustment for rounding. | ||||||||||||||||||||||||||||
-2 | Includes all charges recorded since program inception on May 6, 2014 through March 31, 2015. | ||||||||||||||||||||||||||||
2012-2014 Restructuring Program | |||||||||||||||||||||||||||||
On October 1, 2012, we completed the Spin-Off of our North American grocery business, Kraft Foods Group, Inc. (“Kraft Foods Group”), to our shareholders (the “Spin-Off”). Prior to this transaction, in 2012, our Board of Directors approved $1.5 billion of related restructuring and implementation costs (the “2012-2014 Restructuring Program”) reflecting primarily severance, asset disposals and other manufacturing-related one-time costs. The primary objective of the 2012-2014 Restructuring Program was to ensure that Mondelēz International and Kraft Foods Group were each set up to operate efficiently and execute on our respective business strategies upon separation and in the future. | |||||||||||||||||||||||||||||
Of the $1.5 billion of 2012-2014 Restructuring Program costs, we retained approximately $925 million and Kraft Foods Group retained the balance of the program. Through the end of 2014, we incurred total restructuring and related implementation charges of $899 million, and completed incurring planned charges on the 2012-2014 Restructuring Program. | |||||||||||||||||||||||||||||
Restructuring Costs: | |||||||||||||||||||||||||||||
We recorded reversals to the restructuring charges of $2 million in the three months ended March 31, 2015 related to accruals no longer required. We recorded restructuring charges of $42 million in the three months ended March 31, 2014 within asset impairment and exit costs. The activity for the 2012-2014 Restructuring Program liability for the three months ended March 31, 2015 was: | |||||||||||||||||||||||||||||
Severance | Asset | Total | |||||||||||||||||||||||||||
and related | Write-downs | ||||||||||||||||||||||||||||
costs | |||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Liability balance, January 1, 2015 | $ | 128 | $ | – | $ | 128 | |||||||||||||||||||||||
Charges | (2 | ) | – | (2 | ) | ||||||||||||||||||||||||
Cash spent | (19 | ) | – | (19 | ) | ||||||||||||||||||||||||
Non-cash settlements | – | – | – | ||||||||||||||||||||||||||
Currency | (5 | ) | – | (5 | ) | ||||||||||||||||||||||||
Liability balance, March 31, 2015 | $ | 102 | $ | – | $ | 102 | |||||||||||||||||||||||
We spent $19 million in the three months ended March 31, 2015 and $28 million in the three months ended March 31, 2014 in cash severance and related costs. We also recognized non-cash pension plan settlement losses (See Note 9, Benefit Plans), non-cash asset write-downs (including accelerated depreciation and asset impairments) and other non-cash adjustments totaling $13 million in the three months ended March 31, 2014. At March 31, 2015, $74 million of our net restructuring liability was recorded within other current liabilities and $28 million was recorded within other long-term liabilities. | |||||||||||||||||||||||||||||
Implementation Costs: | |||||||||||||||||||||||||||||
Implementation costs related to our 2012-2014 Restructuring Program primarily relate to activities in connection with the Spin-Off such as reorganizing our operations and facilities, the discontinuance of certain product lines and incremental expenses related to the closure of facilities, replicating our information systems infrastructure and reorganizing our sales function. Within our continuing results of operations, we recorded implementation costs of $24 million in the three months ended March 31, 2014. We recorded these costs within cost of sales and selling, general and administrative expenses. | |||||||||||||||||||||||||||||
Restructuring and Implementation Costs in Operating Income: | |||||||||||||||||||||||||||||
During the three months ended March 31, 2014 and since inception of the 2012-2014 Restructuring Program, we recorded restructuring and implementation costs within operating income as follows: | |||||||||||||||||||||||||||||
Latin | Asia | EEMEA | Europe | North | Corporate (1) | Total | |||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||
Restructuring Costs | $ | 1 | $ | – | $ | 4 | $ | 17 | $ | 20 | $ | – | $ | 42 | |||||||||||||||
Implementation Costs | – | – | 1 | 15 | 7 | 1 | 24 | ||||||||||||||||||||||
Total | $ | 1 | $ | – | $ | 5 | $ | 32 | $ | 27 | $ | 1 | $ | 66 | |||||||||||||||
Total Project 2012-2014 (2) | |||||||||||||||||||||||||||||
Restructuring Costs | $ | 36 | $ | 36 | $ | 69 | $ | 249 | $ | 337 | $ | 2 | $ | 729 | |||||||||||||||
Implementation Costs | 3 | 6 | 4 | 88 | 65 | 4 | 170 | ||||||||||||||||||||||
Total | $ | 39 | $ | 42 | $ | 73 | $ | 337 | $ | 402 | $ | 6 | $ | 899 | |||||||||||||||
-1 | Includes adjustment for rounding. | ||||||||||||||||||||||||||||
-2 | Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. |
Debt
Debt | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Debt | Note 7. Debt | ||||||||||||||||
Short-Term Borrowings: | |||||||||||||||||
Our short-term borrowings and related weighted-average interest rates consisted of: | |||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
Amount | Weighted- | Amount | Weighted- | ||||||||||||||
Outstanding | Average Rate | Outstanding | Average Rate | ||||||||||||||
(in millions) | (in millions) | ||||||||||||||||
Commercial paper | $ | 3,465 | 0.50% | $ | 1,101 | 0.40% | |||||||||||
Bank loans | 223 | 12.10% | 204 | 8.80% | |||||||||||||
Total short-term borrowings | $ | 3,688 | $ | 1,305 | |||||||||||||
As of March 31, 2015, the commercial paper issued and outstanding had between 1 and 92 days remaining to maturity. Bank loans include borrowings on primarily uncommitted credit lines maintained by some of our international subsidiaries to meet short-term working capital needs. | |||||||||||||||||
Borrowing Arrangements: | |||||||||||||||||
We maintain a revolving credit facility for general corporate purposes, including for working capital purposes and to support our commercial paper program. Our $4.5 billion multi-year senior unsecured revolving credit facility expires on October 11, 2018. 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 March 31, 2015, we complied with the covenant as our shareholders’ equity as defined by the covenant was $33.8 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 March 31, 2015, no amounts were drawn on the facility. | |||||||||||||||||
Some of our international subsidiaries maintain primarily uncommitted credit lines to meet short-term working capital needs. Collectively, these credit lines amounted to $2.0 billion at March 31, 2015 and $2.1 billion at December 31, 2014. Borrowings on these lines amounted to $223 million at March 31, 2015 and $204 million at December 31, 2014. | |||||||||||||||||
Long-Term Debt: | |||||||||||||||||
On March 30, 2015, we issued fr.675 million of Swiss franc-denominated notes, or approximately $694 million in U.S. dollars as of March 31, 2015, consisting of: | |||||||||||||||||
• | fr.175 million (or $180 million) of 0.000% fixed rate notes that mature on March 30, 2017 | ||||||||||||||||
• | fr.300 million (or $308 million) of 0.625% fixed rate notes that mature on December 30, 2021 | ||||||||||||||||
• | fr.200 million (or $206 million) of 1.125% fixed rate notes that mature on December 30, 2025 | ||||||||||||||||
We received net proceeds of $675 million that were used for general corporate purposes. We recorded approximately $2 million of premiums and deferred financing costs, which will be amortized into interest expense over the life of the notes. | |||||||||||||||||
On March 20, 2015, €850 million of our 6.250% euro-denominated notes matured. The notes and accrued interest to date were paid with the issuance of commercial paper and cash on hand. | |||||||||||||||||
On March 20, 2015, we completed a cash tender offer and retired $2.5 billion of our long-term U.S. dollar debt consisting of: | |||||||||||||||||
• | $102 million of our 6.500% Notes due in August 2017 | ||||||||||||||||
• | $115 million of our 6.125% Notes due in February 2018 | ||||||||||||||||
• | $80 million of our 6.125% Notes due in August 2018 | ||||||||||||||||
• | $691 million of our 5.375% Notes due in February 2020 | ||||||||||||||||
• | $201 million of our 6.500% Notes due in November 2031 | ||||||||||||||||
• | $26 million of our 7.000% Notes due in August 2037 | ||||||||||||||||
• | $71 million of our 6.875% Notes due in February 2038 | ||||||||||||||||
• | $69 million of our 6.875% Notes due in January 2039 | ||||||||||||||||
• | $1,143 million of our 6.500% Notes due in February 2040 | ||||||||||||||||
We financed the repurchase of these notes, including the payment of accrued interest and other costs incurred, from net proceeds received from the $2.8 billion notes issuance on March 6, 2015 described below and the issuance of commercial paper. In connection with retiring this debt, during the first three months of 2015, we recorded a $708 million loss on extinguishment of debt within interest expense related to the amount we paid to retire the debt in excess of its carrying value and from recognizing unamortized discounts and deferred financing costs in earnings at the time of the debt extinguishment. The loss on extinguishment is included in long-term debt repayments in the condensed consolidated statement of cash flows for the three months ended March 31, 2015. We also recognized $5 million of charges within interest expense from hedging instruments related to the retired debt. Upon extinguishing the debt, the deferred cash flow hedge amounts were recorded in earnings. | |||||||||||||||||
On March 6, 2015, we issued €2.0 billion of euro-denominated notes and £450 million of British pound sterling-denominated notes, or approximately $2.8 billion in U.S. dollars as of March 31, 2015, consisting of: | |||||||||||||||||
• | €500 million (or $537 million) of 1.000% fixed rate notes that mature on March 7, 2022 | ||||||||||||||||
• | €750 million (or $805 million) of 1.625% fixed rate notes that mature on March 8, 2027 | ||||||||||||||||
• | €750 million (or $805 million) of 2.375% fixed rate notes that mature on March 6, 2035 | ||||||||||||||||
• | £450 million (or $667 million) of 3.875% fixed rate notes that mature on March 6, 2045 | ||||||||||||||||
We received net proceeds of $2,890 million that were used to fund the March 2015 tender offer and for other general corporate purposes. We recorded approximately $29 million of discounts and deferred financing costs, which will be amortized into interest expense over the life of the notes. | |||||||||||||||||
Our weighted-average interest rate on our total debt was 3.1% as of March 31, 2015, following the completion of our tender offer and debt issuances in the first quarter. Our weighted-average interest rate on our total debt as of December 31, 2014 was 4.3%, down from 4.8% as of December 31, 2013. | |||||||||||||||||
Fair Value of Our Debt: | |||||||||||||||||
The fair value of our short-term borrowings at March 31, 2015 and December 31, 2014 reflects current market interest rates and approximates the amounts we have recorded on our consolidated balance sheet. 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 March 31, 2015, the aggregate fair value of our total debt was $19,986 million and its carrying value was $18,705 million. At December 31, 2014, the aggregate fair value of our total debt was $18,463 million and its carrying value was $16,700 million. | |||||||||||||||||
Interest and Other Expense, Net: | |||||||||||||||||
Interest and other expense, net within our results of continuing operations consisted of: | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Interest expense, debt | $ | 175 | $ | 202 | |||||||||||||
Loss on debt extinguishment and related expenses | 713 | 494 | |||||||||||||||
Realized gain on planned coffee business divestiture currency hedges | (311 | ) | – | ||||||||||||||
Unrealized gain on planned coffee business divestiture currency hedges | (240 | ) | – | ||||||||||||||
Loss related to interest rate swaps | 34 | – | |||||||||||||||
Other expense, net | 15 | 24 | |||||||||||||||
Total interest and other expense, net | $ | 386 | $ | 720 | |||||||||||||
See Note 2, Divestitures and Acquisitions, and Note 8, Financial Instruments, for information on the currency exchange forward contracts associated with the planned coffee business transactions. Also see Note 8, Financial Instruments, for information on the loss related to U.S. dollar interest rate swaps no longer designated as accounting cash flow hedges during the quarter. |
Financial_Instruments
Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Financial Instruments | Note 8. Financial Instruments | ||||||||||||||||
Fair Value of Derivative Instruments: | |||||||||||||||||
Derivative instruments were recorded at fair value in the consolidated balance sheets as follows: | |||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
Asset | Liability | Asset | Liability | ||||||||||||||
Derivatives | Derivatives | Derivatives | Derivatives | ||||||||||||||
(in millions) | |||||||||||||||||
Derivatives designated as | |||||||||||||||||
accounting hedges: | |||||||||||||||||
Currency exchange contracts | $ | 90 | $ | 33 | $ | 69 | $ | 17 | |||||||||
Commodity contracts | 1 | 57 | 12 | 33 | |||||||||||||
Interest rate contracts | 17 | 73 | 13 | 42 | |||||||||||||
$ | 108 | $ | 163 | $ | 94 | $ | 92 | ||||||||||
Derivatives not designated as | |||||||||||||||||
accounting hedges: | |||||||||||||||||
Currency exchange contracts | $ | 284 | $ | 77 | $ | 735 | $ | 24 | |||||||||
Commodity contracts | 107 | 156 | 90 | 194 | |||||||||||||
Interest rate contracts | 50 | 33 | 59 | 39 | |||||||||||||
$ | 441 | $ | 266 | $ | 884 | $ | 257 | ||||||||||
Total fair value | $ | 549 | $ | 429 | $ | 978 | $ | 349 | |||||||||
We record derivative assets and liabilities on a gross basis in our condensed consolidated balance sheet. 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. See our consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2014 for additional information on our risk management strategies and use of derivatives and related accounting. | |||||||||||||||||
The fair values (asset / (liability)) of our derivative instruments were determined using: | |||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Total | Quoted Prices in | Significant | Significant | ||||||||||||||
Fair Value of Net | Active Markets | Other Observable | Unobservable | ||||||||||||||
Asset / (Liability) | for Identical | Inputs (Level 2) | Inputs | ||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts | $ | 264 | $ | – | $ | 264 | $ | – | |||||||||
Commodity contracts | (105 | ) | (105 | ) | – | – | |||||||||||
Interest rate contracts | (39 | ) | – | (39 | ) | – | |||||||||||
Total derivatives | $ | 120 | $ | (105 | ) | $ | 225 | $ | – | ||||||||
As of December 31, 2014 | |||||||||||||||||
Total | Quoted Prices in | Significant | Significant | ||||||||||||||
Fair Value of Net | Active Markets | Other Observable | Unobservable | ||||||||||||||
Asset / (Liability) | for Identical | Inputs (Level 2) | Inputs | ||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts | $ | 763 | $ | – | $ | 763 | $ | – | |||||||||
Commodity contracts | (125 | ) | (49 | ) | (76 | ) | – | ||||||||||
Interest rate contracts | (9 | ) | – | (9 | ) | – | |||||||||||
Total derivatives | $ | 629 | $ | (49 | ) | $ | 678 | $ | – | ||||||||
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. Our exchange-traded derivatives are generally subject to master netting arrangements that permit net settlement of transactions with the same counterparty when certain criteria are met, such as in the event of default. We also are required to maintain cash margin accounts in connection with funding the settlement of our open positions, and the margin requirements generally fluctuate daily based on market conditions. We have recorded margin deposits related to our exchange-traded derivatives of $146 million as of March 31, 2015 and $84 million as of December 31, 2014 within other current assets. Based on our net asset or liability positions with individual counterparties, in the event of default and immediate net settlement of all of our open positions, for derivatives we have in a net liability position, we would owe $1 million as of March 31, 2015 and $3 million as of December 31, 2014, and for derivatives we have in a net asset position, our counterparties would owe us a total of $42 million as of March 31, 2015 and $38 million as of December 31, 2014. | |||||||||||||||||
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 commodity and currency exchange OTC derivatives do not have a legal right of set-off. In connection with our OTC derivatives that could be net-settled in the event of default, assuming all parties were to fail to comply with the terms of the agreements, for derivatives we have in a net liability position, we would owe $159 million as of March 31, 2015 and $156 million as of December 31, 2014, and for derivatives we have in a net asset position, our counterparties would owe us a total of $67 million as of March 31, 2015 and $72 million as of December 31, 2014. 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 March 31, | As of December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts: | |||||||||||||||||
Intercompany loans and forecasted interest payments | $ | 3,639 | $ | 3,640 | |||||||||||||
Forecasted transactions | 6,670 | 6,681 | |||||||||||||||
Commodity contracts | 1,196 | 1,569 | |||||||||||||||
Interest rate contracts | 3,037 | 3,970 | |||||||||||||||
Net investment hedge – euro notes | 4,722 | 3,932 | |||||||||||||||
Net investment hedge – pound sterling notes | 1,185 | 545 | |||||||||||||||
Net investment hedge – Swiss franc notes | 694 | – | |||||||||||||||
Cash Flow Hedges: | |||||||||||||||||
Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings / (losses) included: | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Accumulated gain / (loss) at beginning of period | $ | (2 | ) | $ | 117 | ||||||||||||
Transfer of realized losses / (gains) in fair value to earnings | (18 | ) | (1 | ) | |||||||||||||
Unrealized gain / (loss) in fair value | (26 | ) | (34 | ) | |||||||||||||
Accumulated gain / (loss) at end of period | $ | (46 | ) | $ | 82 | ||||||||||||
After-tax gains / (losses) reclassified from accumulated other comprehensive earnings / (losses) into net earnings were: | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts – forecasted transactions | $ | 46 | $ | (2 | ) | ||||||||||||
Commodity contracts | (2 | ) | 5 | ||||||||||||||
Interest rate contracts | (26 | ) | (2 | ) | |||||||||||||
Total | $ | 18 | $ | 1 | |||||||||||||
After-tax gains / (losses) recognized in other comprehensive earnings / (losses) were: | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts -forecasted transactions | $ | 49 | $ | 2 | |||||||||||||
Commodity contracts | (38 | ) | 11 | ||||||||||||||
Interest rate contracts | (37 | ) | (47 | ) | |||||||||||||
Total | $ | (26 | ) | $ | (34 | ) | |||||||||||
Cash flow hedge ineffectiveness was not material for all periods presented. | |||||||||||||||||
Pre-tax gains / (losses) on amounts excluded from effectiveness testing recognized in net earnings from continuing operations included a pre-tax loss of $34 million recognized in the three months ended March 31, 2015 within interest and other expense, net related to certain U.S. dollar interest rate swaps that we no longer designate as accounting cash flow hedges due to a change in financing and hedging plans. In the first quarter, our plans to issue U.S. dollar debt changed and we issued euro, British pound sterling and Swiss franc-denominated notes due to lower overall cost and our decision to hedge a greater portion of our net investments in operations that use these currencies as their functional currencies. In the prior-year period, amounts excluded from effectiveness testing were not material. | |||||||||||||||||
We record pre-tax and after-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 commodity contracts; | ||||||||||||||||
• | cost of sales for currency exchange contracts related to forecasted transactions; 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 $55 million (net of taxes) for commodity cash flow hedges, unrealized gains of $55 million (net of taxes) for currency cash flow hedges and unrealized losses of $1 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. | |||||||||||||||||
Hedge Coverage: | |||||||||||||||||
As of March 31, 2015, we hedged transactions forecasted to impact cash flows over the following periods: | |||||||||||||||||
• | commodity transactions for periods not exceeding the next 16 months; | ||||||||||||||||
• | interest rate transactions for periods not exceeding the next 30 years and 11 months; and | ||||||||||||||||
• | currency exchange transactions for periods not exceeding the next 11 months. | ||||||||||||||||
Fair Value Hedges: | |||||||||||||||||
Pre-tax gains / (losses) due to changes in fair value of our interest rate swaps and related hedged long-term debt were recorded in interest and other expense, net: | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Derivatives | $ | 4 | $ | – | |||||||||||||
Borrowings | (4 | ) | – | ||||||||||||||
Fair value hedge ineffectiveness and amounts excluded from effectiveness testing were not material for all periods presented. | |||||||||||||||||
Economic Hedges: | |||||||||||||||||
Pre-tax gains / (losses) recorded in net earnings for economic hedges were: | |||||||||||||||||
Location of | |||||||||||||||||
For the Three Months Ended | Gain / (Loss) | ||||||||||||||||
March 31, | Recognized | ||||||||||||||||
2015 | 2014 | in Earnings | |||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts: | |||||||||||||||||
Intercompany loans and forecasted | $ | 7 | $ | (2 | ) | Interest and other | |||||||||||
interest payments | expense, net | ||||||||||||||||
Forecasted transactions | (3 | ) | (10 | ) | Cost of sales | ||||||||||||
Forecasted transactions | 553 | (5 | ) | Interest and other | |||||||||||||
expense, net | |||||||||||||||||
Forecasted transactions | (11 | ) | (1 | ) | Selling, general and | ||||||||||||
administrative expenses | |||||||||||||||||
Interest rate contracts | 1 | – | Interest and other | ||||||||||||||
expense, net | |||||||||||||||||
Commodity contracts | (41 | ) | 38 | Cost of sales | |||||||||||||
Total | $ | 506 | $ | 20 | |||||||||||||
In connection with the planned coffee business transactions, we entered into euro to U.S. dollar currency exchange forward contracts to hedge an expected cash receipt of €4 billion upon closing. As the forward contracts relate to a pending business divestiture, unrealized gains and losses on the derivative are recorded in earnings. We recorded a $311 million realized gain and a $240 million unrealized gain for the three months ended March 31, 2015 within interest and other expense, net in connection with the forward contracts as the U.S. dollar strengthened relative to the euro. See Note 2, Divestitures and Acquisitions—Planned Coffee Business Transactions, for additional information on our currency exchange forward contracts transactions in the first quarter of 2015. | |||||||||||||||||
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, pound sterling and Swiss franc-denominated debt were: | |||||||||||||||||
For the Three Months Ended | Location of | ||||||||||||||||
March 31, | Gain / (Loss) | ||||||||||||||||
Recognized in | |||||||||||||||||
2015 | 2014 | AOCI | |||||||||||||||
(in millions) | |||||||||||||||||
Euro notes | $ | 314 | $ | (5 | ) | Currency | |||||||||||
Pound sterling notes | 32 | (4 | ) | Translation | |||||||||||||
Swiss franc notes | (13 | ) | – | Adjustment |
Benefit_Plans
Benefit Plans | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Benefit Plans | Note 9. Benefit Plans | ||||||||||||||||
Pension Plans | |||||||||||||||||
Components of Net Periodic Pension Cost: | |||||||||||||||||
Net periodic pension cost consisted of the following: | |||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
For the Three Months Ended March 31, | For the Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in millions) | |||||||||||||||||
Service cost | $ | 17 | $ | 15 | $ | 50 | $ | 44 | |||||||||
Interest cost | 17 | 17 | 77 | 97 | |||||||||||||
Expected return on plan assets | (23 | ) | (20 | ) | (119 | ) | (123 | ) | |||||||||
Amortization: | |||||||||||||||||
Net loss from experience differences | 12 | 8 | 39 | 27 | |||||||||||||
Settlement losses | 3 | 2 | – | 5 | |||||||||||||
Net periodic pension cost | $ | 26 | $ | 22 | $ | 47 | $ | 50 | |||||||||
Employer Contributions: | |||||||||||||||||
We make contributions to our U.S. and non-U.S. pension plans primarily to the extent that they are tax deductible and do not generate an excise tax liability. During the three months ended March 31, 2015, we contributed $202 million to our U.S. plans and $116 million to our non-U.S. plans. Based on current tax law, we plan to make further contributions of approximately $8 million to our U.S. plans and approximately $203 million to our non-U.S. plans during the remainder of 2015. However, our actual contributions may differ due to many factors, including changes in tax and other benefit laws or significant differences between expected and actual pension asset performance or interest rates. | |||||||||||||||||
Postretirement Benefit Plans | |||||||||||||||||
Net postretirement health care costs consisted of the following: | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Service cost | $ | 4 | $ | 3 | |||||||||||||
Interest cost | 6 | 5 | |||||||||||||||
Amortization: | |||||||||||||||||
Net loss from experience differences | 3 | 2 | |||||||||||||||
Prior service credit | (2 | ) | (3 | ) | |||||||||||||
Net postretirement health care costs | $ | 11 | $ | 7 | |||||||||||||
Postemployment Benefit Plans | |||||||||||||||||
Net postemployment costs consisted of the following: | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Service cost | $ | 2 | $ | 2 | |||||||||||||
Interest cost | 1 | 2 | |||||||||||||||
Net postemployment costs | $ | 3 | $ | 4 |
Stock_Plans
Stock Plans | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Stock Plans | Note 10. Stock Plans | ||||||||||||||||
Stock Options: | |||||||||||||||||
Stock option activity consisted of the following: | |||||||||||||||||
Shares Subject | Weighted-Average | Aggregate | |||||||||||||||
to Option | Exercise or | Intrinsic | |||||||||||||||
Grant Price | Value | ||||||||||||||||
Per Share | |||||||||||||||||
Balance at January 1, 2015 | 56,431,551 | $ | 24.19 | $ | 685 million | ||||||||||||
Annual grant to eligible employees | 8,899,530 | 36.94 | |||||||||||||||
Additional options issued | 808,460 | 35.48 | |||||||||||||||
Total options granted | 9,707,990 | 36.82 | |||||||||||||||
Options exercised | (2,598,094 | ) | 23.16 | $ | 35 million | ||||||||||||
Options cancelled | (632,703 | ) | 31.37 | ||||||||||||||
Balance at March 31, 2015 | 62,908,744 | 26.11 | $ | 635 million | |||||||||||||
Restricted and Deferred Stock: | |||||||||||||||||
Restricted and deferred stock activity consisted of the following: | |||||||||||||||||
Number of | Grant Date | Weighted-Average | Weighted-Average | ||||||||||||||
Shares | Fair Value | Aggregate | |||||||||||||||
Per Share | Fair Value | ||||||||||||||||
Balance at January 1, 2015 | 10,582,640 | $ | 28.56 | ||||||||||||||
Performance share units granted | 1,598,290 | Feb. 18, 2015 | 36.94 | ||||||||||||||
Annual grant to eligible employees | 1,253,550 | Feb. 18, 2015 | 36.94 | ||||||||||||||
Additional shares issued | 643,413 | Various | 36.71 | ||||||||||||||
Total shares granted | 3,495,253 | 36.9 | $ | 129 million | |||||||||||||
Vested | (3,234,075 | ) | 36.95 | $ | 119 million | ||||||||||||
Forfeited | (267,181 | ) | 32.49 | ||||||||||||||
Balance at March 31, 2015 | 10,576,637 | 28.65 | |||||||||||||||
Share Repurchase Program: | |||||||||||||||||
During 2013, our Board of Directors authorized the repurchase of $7.7 billion of our Common Stock through December 31, 2016. Repurchases under the program are determined by management and are wholly discretionary. During the three months ended March 31, 2015, we repurchased 41.7 million shares of Common Stock at an average cost of $35.98 per share, or an aggregate cost of $1.5 billion, which was paid during the quarter. All share repurchases were funded through available cash and commercial paper issuances. As of March 31, 2015, we have $1.6 billion in remaining share repurchase capacity. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies | Note 11. 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. | |
A compliant and ethical corporate culture, which includes adhering to laws and industry regulations in all jurisdictions in which we do business, is integral to our success. Accordingly, after we acquired Cadbury in February 2010, we began reviewing and adjusting, as needed, Cadbury’s operations in light of applicable standards as well as our policies and practices. We initially focused on such high priority areas as food safety, the Foreign Corrupt Practices Act (“FCPA”) and antitrust. Based upon Cadbury’s pre-acquisition policies and compliance programs and our post-acquisition reviews, our preliminary findings indicated that Cadbury’s overall state of compliance was sound. Nonetheless, through our reviews, we determined that in certain jurisdictions, including India, there appeared to be facts and circumstances warranting further investigation. We are continuing our investigations in certain jurisdictions, including in India, and we continue to cooperate with governmental authorities. | |
As we previously disclosed, on February 1, 2011, we received a subpoena from the SEC in connection with an investigation under the FCPA, primarily related to a facility in India that we acquired in the Cadbury acquisition. The subpoena primarily requests information regarding dealings with Indian governmental agencies and officials to obtain approvals related to the operation of that facility. We are continuing to cooperate with the U.S. and Indian governments in their investigations of these matters, including through ongoing meetings with the U.S. government to discuss potential conclusion of the U.S. government investigation. | |
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 (approximately $60 million U.S. dollars as of March 31, 2015) 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 (approximately $94 million U.S. dollars as of March 31, 2015). We plan to appeal this order. In addition, the Excise Authority issued another show cause notice, dated February 6, 2015, on the same issue but covering the period January to October 2014, thereby adding 1.0 billion Indian rupees (approximately $17 million U.S. dollars as of March 31, 2015) of unpaid excise taxes as well as 1.0 billion Indian rupees (approximately $17 million U.S. dollars as of March 31, 2015) of penalties, as well as interest, to the amount claimed by the Excise Authority. 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. | |
In April 2013, the staff of the U.S. Commodity Futures Trading Commission (“CFTC”) advised us and Kraft Foods Group that it was investigating activities related to the trading of December 2011 wheat futures contracts that occurred prior to the Spin-Off of Kraft Foods Group. We cooperated with the staff in its investigation. On April 1, 2015, the CFTC filed a complaint against Kraft Foods Group and Mondelēz Global LLC in the U.S. District Court for the Northern District of Illinois, Eastern Division (the “CFTC action”). The complaint alleges that Kraft Foods Group and we (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 us from violating specified provisions of the Act; disgorgement of profits; and costs and fees. In addition, class action complaints were filed against Kraft Foods Group and us in the U.S. District Court for the Northern District of Illinois. These were filed on April 2, 2015 by Harry Ploss, as trustee for the Harry Ploss Trust dated 8/16/1993, on April 9, 2015 by Richard Dennis, on April 16, 2015 by Henrik Christensen, on April 22, 2015 by White Oak Fund, LP and on April 24, 2015 by Budicak Inc., in each case on behalf of themselves and others similarly situated. The complaints make the same allegations as those made in the CFTC action and seek class action certification; an unspecified amount for damages, interest and unjust enrichment; and costs and fees. 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 predominantly bear any monetary penalties or other payments in connection with the CFTC action. | |
While we cannot predict with certainty the results of any Legal Matters in which we are currently involved, we do not expect that the ultimate costs to resolve any of these Legal Matters, individually or in the aggregate, will have a material effect on our financial results. | |
Third-Party Guarantees: | |
We enter into third-party guarantees primarily to cover the 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 March 31, 2015, we had no material third-party guarantees recorded on our consolidated balance sheet. |
Reclassifications_from_Accumul
Reclassifications from Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Income | Note 12. Reclassifications from Accumulated Other Comprehensive Income | ||||||||||||||||
The components of accumulated other comprehensive earnings / (losses) attributable to Mondelēz International were: | |||||||||||||||||
Mondelēz International Shareholders’ Equity | |||||||||||||||||
Currency | Pension and | Derivatives | Total | ||||||||||||||
Translation | Other Benefits | Accounted for | |||||||||||||||
Adjustments | as Hedges | ||||||||||||||||
(in millions) | |||||||||||||||||
Balances at January 1, 2014 | $ | (1,414 | ) | $ | (1,592 | ) | $ | 117 | $ | (2,889 | ) | ||||||
Other comprehensive earnings / (losses), | |||||||||||||||||
before reclassifications: | |||||||||||||||||
Currency translation adjustment (1) | (225 | ) | 8 | – | (217 | ) | |||||||||||
Pension and other benefits | – | 6 | – | 6 | |||||||||||||
Derivatives accounted for as hedges | (15 | ) | – | (56 | ) | (71 | ) | ||||||||||
Losses / (gains) reclassified into | – | 41 | (2 | ) | 39 | ||||||||||||
net earnings | |||||||||||||||||
Tax (expense) / benefit | 6 | (13 | ) | 23 | 16 | ||||||||||||
Total other comprehensive | (227 | ) | |||||||||||||||
earnings / (losses) | |||||||||||||||||
Balances at March 31, 2014 | $ | (1,648 | ) | $ | (1,550 | ) | $ | 82 | $ | (3,116 | ) | ||||||
Balances at January 1, 2015 | $ | (5,042 | ) | $ | (2,274 | ) | $ | (2 | ) | $ | (7,318 | ) | |||||
Other comprehensive earnings / (losses), | |||||||||||||||||
before reclassifications: | |||||||||||||||||
Currency translation adjustment(1) | (2,352 | ) | 131 | – | (2,221 | ) | |||||||||||
Pension and other benefits | – | – | – | – | |||||||||||||
Derivatives accounted for as hedges | 525 | – | (56 | ) | 469 | ||||||||||||
Losses / (gains) reclassified into | – | 55 | (4 | ) | 51 | ||||||||||||
net earnings | |||||||||||||||||
Tax (expense) / benefit | (192 | ) | (13 | ) | 16 | (189 | ) | ||||||||||
Total other comprehensive | (1,890 | ) | |||||||||||||||
earnings / (losses) | |||||||||||||||||
Balances at March 31, 2015 | $ | (7,061 | ) | $ | (2,101 | ) | $ | (46 | ) | $ | (9,208 | ) | |||||
-1 | The condensed consolidated statement of other comprehensive earnings includes currency translation adjustment attributable to noncontrolling interests of $(25) million for the three months ended March 31, 2015 and $(1) million for the three months ended March 31, 2014. | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive earnings / (losses) and their locations in the condensed consolidated financial statements were as follows: | |||||||||||||||||
For the Three Months Ended | Location of | ||||||||||||||||
Gain / (Loss) | |||||||||||||||||
March 31, | Recognized | ||||||||||||||||
2015 | 2014 | in Net Earnings | |||||||||||||||
(in millions) | |||||||||||||||||
Pension and other benefits: | |||||||||||||||||
Reclassification of losses / (gains) into | |||||||||||||||||
net earnings: | |||||||||||||||||
Amortization of experience losses and | $ | 52 | $ | 34 | |||||||||||||
prior service costs (1) | |||||||||||||||||
Settlement losses (1) | 3 | 7 | |||||||||||||||
Tax impact | (13 | ) | (13 | ) | Provision for income taxes | ||||||||||||
Derivatives accounted for as hedges: | |||||||||||||||||
Reclassification of losses / (gains) into | |||||||||||||||||
net earnings: | |||||||||||||||||
Currency exchange contracts – | (50 | ) | 2 | Cost of sales | |||||||||||||
forecasted transactions | |||||||||||||||||
Commodity contracts | 5 | (7 | ) | Cost of sales | |||||||||||||
Interest rate contracts | 41 | 3 | Interest and other | ||||||||||||||
expense, net | |||||||||||||||||
Tax impact | (14 | ) | – | Provision for income taxes | |||||||||||||
Total reclassifications into net earnings, net of tax | 24 | 26 | |||||||||||||||
-1 | These items are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Taxes | Note 13. Income Taxes |
During 2015, as part of our ongoing remediation efforts related to the material weakness in internal controls over the accounting for income taxes, we recorded out-of-period adjustments that had an immaterial impact on the provision for income taxes of $7 million for the three months ended March 31, 2015. The out-of-period adjustments were not material to the consolidated financial statements for any prior period. | |
Based on current tax laws, our estimated annual effective tax rate for 2015 is 20.5%, reflecting favorable impacts from the mix of pre-tax income in various non-U.S. tax jurisdictions. Our 2015 first quarter effective tax rate of 26.6% was unfavorably impacted by net tax expense from $25 million of discrete one-time events. The discrete net tax expense primarily consisted of a $32 million tax charge related to the sale of our interest in a Japanese coffee joint venture that subsequently closed on April 23, 2015. The investment’s change to held-for-sale status in the first quarter of 2015 resulted in the recognition of the tax charge since we are no longer indefinitely reinvested in this joint venture. | |
As of the first quarter of 2014, our estimated annual effective tax rate for 2014 was 20.1%, reflecting favorable impacts from the mix of pre-tax income in various non-U.S. tax jurisdictions, partially offset by the remeasurement of our Venezuelan net monetary assets. Our 2014 first quarter effective tax rate of (22.0)% was due to net tax benefits from discrete one-time events and lower pre-tax income due to the tender-related loss on debt extinguishment and the remeasurement of the Venezuela net monetary assets. Of the discrete net tax benefits of $52 million in the quarter, $51 million related to favorable tax audit settlements and expirations of statutes of limitations in several jurisdictions. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share | Note 14. Earnings Per Share | ||||||||
Basic and diluted earnings per share (“EPS”) were calculated using the following: | |||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in millions, except per share data) | |||||||||
Net earnings | $ | 312 | $ | 150 | |||||
Noncontrolling interest | (12 | ) | (13 | ) | |||||
Net earnings attributable to Mondelēz International | $ | 324 | $ | 163 | |||||
Weighted-average shares for basic EPS | 1,648 | 1,704 | |||||||
Plus incremental shares from assumed conversions of | 17 | 18 | |||||||
stock options and long-term incentive plan shares | |||||||||
Weighted-average shares for diluted EPS | 1,665 | 1,722 | |||||||
Basic earnings per share attributable to Mondelēz International | $ | 0.2 | $ | 0.1 | |||||
Diluted earnings per share attributable to Mondelēz International | $ | 0.19 | $ | 0.09 | |||||
We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We excluded 10.9 million antidilutive stock options for the three months ended March 31, 2015 and 4.7 million antidilutive stock options for the three months ended March 31, 2014. |
Segment_Reporting
Segment Reporting | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Segment Reporting | Note 15. Segment Reporting | ||||||||||||||||||||||||
We manufacture and market primarily snack food and beverage products, including biscuits (cookies, crackers and salted snacks), chocolate, gum & candy, coffee & powdered beverages and various cheese & grocery products. We manage our global business and report operating results through geographic units. | |||||||||||||||||||||||||
Our operations and management structure are organized into five reportable operating segments: | |||||||||||||||||||||||||
• | Latin America | ||||||||||||||||||||||||
• | Asia Pacific | ||||||||||||||||||||||||
• | Eastern Europe, Middle East and Africa (“EEMEA”) | ||||||||||||||||||||||||
• | Europe | ||||||||||||||||||||||||
• | North America | ||||||||||||||||||||||||
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. Beginning in 2015, within each region, we also manage by product category. The change did not affect our operating or reportable segments. In 2014, we managed our operations within Latin America, Asia Pacific and EEMEA by location and within Europe and North America by product category. Also, in 2015, we began to report stock-based compensation for our corporate employees, which was previously reported within our North America region, within general corporate expenses. During the first quarter of 2015, we reclassified $11 million of corporate stock-based compensation expense out of the North America segment. | |||||||||||||||||||||||||
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, gains and losses on divestitures or acquisitions 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 interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the segment profitability measure that management reviews. | |||||||||||||||||||||||||
Our segment net revenues and earnings were: | |||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||
Latin America | $ | 1,257 | $ | 1,356 | |||||||||||||||||||||
Asia Pacific | 1,153 | 1,223 | |||||||||||||||||||||||
EEMEA | 695 | 838 | |||||||||||||||||||||||
Europe | 2,975 | 3,557 | |||||||||||||||||||||||
North America | 1,682 | 1,667 | |||||||||||||||||||||||
Net revenues | $ | 7,762 | $ | 8,641 | |||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Earnings before income taxes: | |||||||||||||||||||||||||
Operating income: | |||||||||||||||||||||||||
Latin America | $ | 154 | $ | 44 | |||||||||||||||||||||
Asia Pacific | 146 | 188 | |||||||||||||||||||||||
EEMEA | 32 | 64 | |||||||||||||||||||||||
Europe | 326 | 463 | |||||||||||||||||||||||
North America | 281 | 203 | |||||||||||||||||||||||
Unrealized gains / (losses) on hedging activities | (7 | ) | 7 | ||||||||||||||||||||||
General corporate expenses | (74 | ) | (72 | ) | |||||||||||||||||||||
Amortization of intangibles | (46 | ) | (54 | ) | |||||||||||||||||||||
Acquisition-related costs | (1 | ) | – | ||||||||||||||||||||||
Operating income | 811 | 843 | |||||||||||||||||||||||
Interest and other expense, net | (386 | ) | (720 | ) | |||||||||||||||||||||
Earnings before income taxes | $ | 425 | $ | 123 | |||||||||||||||||||||
Items impacting our segment operating results are discussed in Note 1, Basis of Presentation, including the Venezuelan currency devaluation, Note 2, Divestitures and Acquisitions and Note 6, Restructuring Programs. Also see Note 7, Debt, and Note 8, Financial Instruments, for more information on our interest and other expense, net for each period. | |||||||||||||||||||||||||
Net revenues by product category were: | |||||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||||||
Latin | Asia | North | |||||||||||||||||||||||
America | Pacific | EEMEA | Europe | America | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Biscuits | $ | 309 | $ | 316 | $ | 124 | $ | 594 | $ | 1,358 | $ | 2,701 | |||||||||||||
Chocolate | 294 | 402 | 199 | 1,228 | 56 | 2,179 | |||||||||||||||||||
Gum & Candy | 295 | 191 | 118 | 183 | 268 | 1,055 | |||||||||||||||||||
Beverages | 214 | 115 | 185 | 674 | – | 1,188 | |||||||||||||||||||
Cheese & Grocery | 145 | 129 | 69 | 296 | – | 639 | |||||||||||||||||||
Total net revenues | $ | 1,257 | $ | 1,153 | $ | 695 | $ | 2,975 | $ | 1,682 | $ | 7,762 | |||||||||||||
For the Three Months Ended March 31, 2014 (1) | |||||||||||||||||||||||||
Latin | Asia | North | |||||||||||||||||||||||
America | Pacific | EEMEA | Europe | America | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Biscuits | $ | 327 | $ | 331 | $ | 147 | $ | 722 | $ | 1,341 | $ | 2,868 | |||||||||||||
Chocolate | 324 | 418 | 243 | 1,476 | 63 | 2,524 | |||||||||||||||||||
Gum & Candy | 286 | 206 | 147 | 223 | 263 | 1,125 | |||||||||||||||||||
Beverages | 255 | 122 | 228 | 777 | – | 1,382 | |||||||||||||||||||
Cheese & Grocery | 164 | 146 | 73 | 359 | – | 742 | |||||||||||||||||||
Total net revenues | $ | 1,356 | $ | 1,223 | $ | 838 | $ | 3,557 | $ | 1,667 | $ | 8,641 | |||||||||||||
-1 | During 2014, 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 2015 presentation. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Basis of Presentation | The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries. | ||
Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our financial position and operating results. Net revenues and net earnings for any interim period are not necessarily indicative of future or annual results. | |||
We derived the condensed consolidated balance sheet data as of December 31, 2014 from audited financial statements, but do not include all disclosures required by U.S. GAAP. You should read these statements in conjunction with our consolidated financial statements and related notes in our Annual Report on Form 10-K for the year ended December 31, 2014. | |||
Accounting Calendar Change | Accounting Calendar Change: | ||
In connection with moving toward a common consolidation date across the Company, in the first quarter of 2015, we changed the consolidation date for our North America segment from the last Saturday of each period to the last calendar day of each period. The change had a favorable impact of $39 million on net revenues and $19 million on operating income in the three months ended March 31, 2015. | |||
As a result of this change, each of our operating subsidiaries now reports results as of the last calendar day of the period. We believe the change will improve business planning and financial reporting by better matching the close dates of the operating subsidiaries and bringing the reporting dates to the period-end date. As the effect to prior-period results was not material, we have not revised prior-period results. | |||
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 such as in Venezuela) and realized exchange gains and losses on transactions in earnings. | |||
Venezuela. As prescribed by U.S. GAAP for highly inflationary economies, we have been accounting for the results of our Venezuelan subsidiaries using the U.S. dollar as the functional currency since January 1, 2010. | |||
On February 8, 2013, the Venezuelan government announced the devaluation of the official Venezuelan bolivar exchange rate from 4.30 bolivars to 6.30 bolivars to the U.S. dollar. The official rate of 6.30 is the rate applied to import food and other essential items, and we purchase a material portion of our imported raw materials using U.S. dollars secured at this rate. | |||
On January 24, 2014, the Venezuelan government announced the expansion of a new auction-based currency transaction program which became known as SICAD I and new profit margin controls. The application of the SICAD I rate was extended to include foreign investments and significant operating activities, including contracts for leasing and services, use and exploitation of patents and trademarks, payments of royalties and contracts for technology import and technical assistance. On March 24, 2014, the Venezuelan government launched a new market-based currency exchange market, SICAD II, and at that time indicated that it may be used voluntarily to exchange bolivars into U.S. dollars. | |||
As of March 31, 2014, we began to apply the SICAD I exchange rate to remeasure our bolivar-denominated net monetary assets, and we began translating our Venezuelan operating results at the SICAD I rate in the second quarter of 2014. On March 31, 2014, we recognized a $142 million currency remeasurement loss within selling, general and administrative expenses of our Latin America segment as a result of revaluing our bolivar-denominated net monetary assets from the official exchange rate of 6.30 bolivars to the U.S. dollar to the then-prevailing SICAD I exchange rate of 10.70 bolivars to the U.S. dollar. | |||
On February 10, 2015, the Venezuelan government combined the SICAD I and SICAD II (“SICAD”) exchange rate mechanisms and in addition created a new market-based SIMADI rate, while retaining the 6.30 official rate for food and other essentials. The Venezuelan government also announced an opening SICAD auction rate of 12.00 bolivars to the U.S. dollar, which as of March 31, 2015 is the prevailing SICAD rate until our specific industry group auctions make U.S. dollars available at another offered SICAD rate. We continue to expect to secure U.S. dollars at the SICAD rate in addition to the official rate. The SIMADI rate was designed as a free market exchange rate that makes U.S. dollars available for any transactions based on the available supply of U.S. dollars at the offered rate. As of March 31, 2015, the SIMADI exchange rate was 193.05 bolivars to the U.S. dollar and availability of U.S. dollars at the SIMADI rate was limited. At this time, we do not anticipate using the SIMADI rate frequently in managing our local operations. | |||
Our Venezuelan operations produce a range of biscuit, cheese & grocery, confectionery and beverage products. Based on the currency exchange developments this year, we reviewed our domestic and international sourcing of goods and services and the exchange rates we believe will be applicable. We evaluated the level of primarily raw material imports that we believe would continue to be sourced in exchange for U.S. dollars converted at the official 6.30 exchange rate. Our remaining imported goods and services would primarily be valued at the SICAD exchange rate. Imports that do not currently qualify for either the official rate or SICAD rate could be sourced at the SIMADI rate. | |||
We believe the SICAD rate continues to be the most economically representative rate for us to use to value our net monetary assets and translate our operating results in Venezuela. While some of our net monetary assets or liabilities qualify for settlement at the official exchange rate, other operations do not, and we have utilized the SICAD auction process and expect to use the new SIMADI auctions on an as needed basis. | |||
In the first quarter of 2015, we recognized an $11 million remeasurement loss, reflecting an increase in the SICAD exchange rate from 11.50 to 12.00 bolivars to the U.S. dollar. | |||
The following table sets forth net revenues for our Venezuelan operations for the three months ended March 31, 2015 (measured at the SICAD rate), and cash, net monetary assets and net assets of our Venezuelan subsidiaries as of March 31, 2015 (translated at a SICAD rate of 12.00 bolivars to the U.S. dollar): | |||
Venezuela operations | Three Months Ended March 31, 2015 | ||
Net revenues | $218 million or 2.8% of consolidated net revenues | ||
As of March 31, 2015 | |||
Cash | $313 million | ||
Net monetary assets | $234 million | ||
Net assets | $522 million | ||
Unlike the official rate that is fixed at 6.30 bolivars to the U.S. dollar, the SICAD rate can vary over time. If any of the three-tier currency exchange rates, or the application of the rates to our business, were to change, we would recognize additional currency losses, or gains, which could be significant. | |||
In light of the ongoing difficult macroeconomic environment in Venezuela, we continue to monitor and actively manage our investment and exposures in Venezuela. We plan to continue to do business in the country as long as we can successfully operate our business there. We strive to locally source and produce a significant amount of the products we sell in Venezuela. We have taken other protective measures against currency devaluation, such as converting monetary assets into non-monetary assets that we can use in our business. However, suitable protective measures have become less available and more expensive and may not offset further currency devaluation that could occur. | |||
Argentina. On January 23, 2014, the Central Bank of Argentina adjusted its currency policy, removed its currency stabilization measures and allowed the Argentine peso exchange rate to float relative to the U.S. dollar. On that day, the value of the Argentine peso relative to the U.S. dollar fell by 15%. In July 2014, Argentina had a technical default on its debt as the government was blocked from making payments on its restructured debt by certain creditors who did not participate in a debt restructuring in 2001. Further volatility in the exchange rate is expected. Since December 31, 2014 and through March 31, 2015, the value of the peso declined 4%. While the business operating environment remains challenging, we continue to monitor and actively manage our investment and exposures in Argentina. We continue refining our product portfolio to improve our product offerings, mix and profitability. We also continue to implement additional cost initiatives to protect the business. Further currency declines, economic controls or other business restrictions could have an adverse impact on our ongoing results of operations. Our Argentinian operations contributed approximately $175 million, or 2.3% of consolidated net revenues for the three months ended March 31, 2015. As of March 31, 2015, the net monetary liabilities of our Argentina operations were not material. Argentina is not designated as a highly-inflationary economy for accounting purposes and so we continue to record currency translation adjustments within equity and realized exchange gains and losses on transactions in earnings. | |||
Russia. During the fourth quarter of 2014, the value of the Russian ruble relative to the U.S. dollar declined 50%. In the first quarter of 2015, the value of the ruble relative to the U.S. dollar fluctuated significantly, declining 18% in January then increasing 17% across February and March. Due to the significant currency movements, we continue to take actions to protect our near-term operating results, financial condition and cash flow. Our operations in Russia contributed approximately $170 million, or 2.2% of consolidated net revenues for the three months ended March 31, 2015. As of March 31, 2015, the net monetary assets of our Russia operations were not material. Russia is not designated as a highly-inflationary economy for accounting purposes and so we continue to record currency translation adjustments within equity and realized exchange gains and losses on transactions in earnings. | |||
Ukraine. On February 5, 2015, the National Bank of Ukraine changed its currency policy by eliminating daily auctions, which effectively supported the exchange rate, and allowed the Ukrainian hryvnya exchange rate to float relative to the U.S. dollar. During the quarter, the International Monetary Fund also extended $18 billion of financing to Ukraine to support it meeting short- and near-term commitments. The value of the Ukrainian hryvnya relative to the U.S. dollar declined 49% from December 31, 2014 through March 31, 2015, and further volatility in the currency is expected. We continue to take actions to protect our near-term operating results, cash flow and financial condition. Our Ukrainian operations contributed approximately $45 million, or 0.6% of consolidated net revenues for the three months ended March 31, 2015. As of March 31, 2015, the net monetary assets of our Ukrainian operations were not material. Ukraine is not designated as a highly-inflationary economy for accounting purposes and so we continue to record currency translation adjustments within equity and realized exchange gains and losses on transactions in earnings. | |||
New Accounting Pronouncements | New Accounting Pronouncements: | ||
In April 2015, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) that provides guidance on evaluating whether a cloud computing arrangement includes a software license. If there is a software license component, software licensing accounting should be applied; otherwise, service contract accounting should be applied. The ASU is effective for fiscal years beginning after December 31, 2015, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. | |||
In April 2015, the FASB issued an ASU that provides a practical expedient for reporting entities with a fiscal year end that does not coincide with a month end when measuring the fair value of plan assets of a defined benefit pension or other postretirement benefit plan. It allows the measurement of plan assets and obligations using the month end that is closest to the entity’s fiscal year end. The ASU requires prospective application and is effective for fiscal years beginning after December 31, 2015, with early adoption permitted. As our current fiscal year end coincides with a calendar month end, we do not expect the standard to have an impact on our consolidated financial statements. | |||
In April 2015, the FASB issued an ASU that simplifies the presentation of debt issuance costs. The standard requires debt issuance costs related to a recognized debt obligation to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt instead of being presented as an asset, similar to the presentation of debt discounts. The ASU requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. We plan to adopt the new standard on or by the January 1, 2016 effective date and are currently assessing the impact on our consolidated financial statements. | |||
In February 2015, the FASB issued an ASU that amends current consolidation guidance related to the evaluation of whether certain legal entities should be consolidated. The standard modifies both the variable interest entity (“VIE”) model and the voting interest model, including analyses of whether limited partnerships are VIEs and the impact of service fees and related party interests in determining if an entity is a VIE to the reporting entity. The guidance is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. We plan to adopt the new standard on the January 1, 2016 effective date and are currently assessing the impact on our consolidated financial statements. | |||
In January 2015, the FASB issued an ASU to simplify income statement classification by removing the concept of extraordinary items from U.S. GAAP. As a result, items that are both unusual and infrequent will no longer be separately reported net of tax after continuing operations. The guidance is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. The standard is not expected to have a material impact on our consolidated financial statements. | |||
In May 2014, the FASB issued an ASU on revenue recognition from contracts with customers. The new ASU outlines a new, single comprehensive model for companies to use in accounting for revenue. The core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for the goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including significant judgments made in recognizing revenue. The guidance is effective for annual reporting periods beginning after December 15, 2016, with early adoption prohibited. In April 2015, the FASB proposed to defer the effective date by one year and allow early adoption as of the original effective date; the deferral has not yet been approved by the board but approval is expected. The ASU may be applied retrospectively to historical periods presented or as a cumulative-effect adjustment as of the date of adoption. We plan to adopt the new standard on the January 1, 2017 effective date and are currently assessing the impact of the new standard on our consolidated financial statements. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 3 Months Ended | ||
Mar. 31, 2015 | |||
Net Revenues, Cash, Net Monetary and Net Assets of Company's Venezuelan Subsidiaries | The following table sets forth net revenues for our Venezuelan operations for the three months ended March 31, 2015 (measured at the SICAD rate), and cash, net monetary assets and net assets of our Venezuelan subsidiaries as of March 31, 2015 (translated at a SICAD rate of 12.00 bolivars to the U.S. dollar): | ||
Venezuela operations | Three Months Ended March 31, 2015 | ||
Net revenues | $218 million or 2.8% of consolidated net revenues | ||
As of March 31, 2015 | |||
Cash | $313 million | ||
Net monetary assets | $234 million | ||
Net assets | $522 million |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Components of Inventories | Inventories consisted of the following: | ||||||||
As of March 31, | As of December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Raw materials | $ | 1,210 | $ | 1,122 | |||||
Finished product | 2,211 | 2,358 | |||||||
Inventories, net | $ | 3,421 | $ | 3,480 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: | ||||||||||||||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Land and land improvements | $ | 540 | $ | 574 | |||||||||||||||||||||||||
Buildings and building improvements | 2,946 | 3,117 | |||||||||||||||||||||||||||
Machinery and equipment | 11,107 | 11,737 | |||||||||||||||||||||||||||
Construction in progress | 1,490 | 1,484 | |||||||||||||||||||||||||||
16,083 | 16,912 | ||||||||||||||||||||||||||||
Accumulated depreciation | (6,822 | ) | (7,085 | ) | |||||||||||||||||||||||||
Property, plant and equipment, net | $ | 9,261 | $ | 9,827 | |||||||||||||||||||||||||
Property Plant and Equipment | Asset Impairment Charges | |||||||||||||||||||||||||||||
Schedule of Restructuring and Implementation Costs | These charges were recorded in the consolidated statements of earnings within asset impairment and exit costs as follows: | ||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Latin America | $ | 13 | $ | – | |||||||||||||||||||||||||
Asia Pacific | 19 | – | |||||||||||||||||||||||||||
EEMEA | – | – | |||||||||||||||||||||||||||
Europe | 25 | 1 | |||||||||||||||||||||||||||
North America | 21 | 11 | |||||||||||||||||||||||||||
Total non-cash asset write-downs | $ | 78 | $ | 12 | |||||||||||||||||||||||||
2014-2018 Restructuring Program | |||||||||||||||||||||||||||||
Schedule of Restructuring and Implementation Costs | During 2015 and 2014, we recorded restructuring and implementation costs related to the 2014-2018 Restructuring Program within operating income as follows: | ||||||||||||||||||||||||||||
Latin | Asia | EEMEA | Europe | North | Corporate (1) | Total | |||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Restructuring Costs | $ | 15 | $ | 25 | $ | 2 | $ | 109 | $ | 11 | $ | 1 | $ | 163 | |||||||||||||||
Implementation Costs | 9 | 4 | 4 | 20 | 9 | 15 | 61 | ||||||||||||||||||||||
Total | $ | 24 | $ | 29 | $ | 6 | $ | 129 | $ | 20 | $ | 16 | $ | 224 | |||||||||||||||
Total Project 2014-2015 (2) | |||||||||||||||||||||||||||||
Restructuring Costs | $ | 96 | $ | 41 | $ | 21 | $ | 200 | $ | 68 | $ | 11 | $ | 437 | |||||||||||||||
Implementation Costs | 25 | 13 | 8 | 57 | 14 | 51 | 168 | ||||||||||||||||||||||
Total | $ | 121 | $ | 54 | $ | 29 | $ | 257 | $ | 82 | $ | 62 | $ | 605 | |||||||||||||||
-1 | Includes adjustment for rounding. | ||||||||||||||||||||||||||||
-2 | Includes all charges recorded since program inception on May 6, 2014 through March 31, 2015. | ||||||||||||||||||||||||||||
2012-2014 Restructuring Program | |||||||||||||||||||||||||||||
Schedule of Restructuring and Implementation Costs | During the three months ended March 31, 2014 and since inception of the 2012-2014 Restructuring Program, we recorded restructuring and implementation costs within operating income as follows: | ||||||||||||||||||||||||||||
Latin | Asia | EEMEA | Europe | North | Corporate (1) | Total | |||||||||||||||||||||||
America | Pacific | America | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||
Restructuring Costs | $ | 1 | $ | – | $ | 4 | $ | 17 | $ | 20 | $ | – | $ | 42 | |||||||||||||||
Implementation Costs | – | – | 1 | 15 | 7 | 1 | 24 | ||||||||||||||||||||||
Total | $ | 1 | $ | – | $ | 5 | $ | 32 | $ | 27 | $ | 1 | $ | 66 | |||||||||||||||
Total Project 2012-2014 (2) | |||||||||||||||||||||||||||||
Restructuring Costs | $ | 36 | $ | 36 | $ | 69 | $ | 249 | $ | 337 | $ | 2 | $ | 729 | |||||||||||||||
Implementation Costs | 3 | 6 | 4 | 88 | 65 | 4 | 170 | ||||||||||||||||||||||
Total | $ | 39 | $ | 42 | $ | 73 | $ | 337 | $ | 402 | $ | 6 | $ | 899 | |||||||||||||||
-1 | Includes adjustment for rounding. | ||||||||||||||||||||||||||||
-2 | Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Schedule of Goodwill by Reportable Segment | Goodwill by reportable segment was: | ||||||||
As of March 31, | As of December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Latin America | $ | 1,004 | $ | 1,127 | |||||
Asia Pacific | 2,314 | 2,395 | |||||||
EEMEA | 1,775 | 1,942 | |||||||
Europe | 8,338 | 8,952 | |||||||
North America | 8,925 | 8,973 | |||||||
Goodwill | $ | 22,356 | $ | 23,389 | |||||
Intangible Assets Disclosure | Intangible assets consisted of the following: | ||||||||
As of March 31, | As of December 31, | ||||||||
2015 | 2014 | ||||||||
(in millions) | |||||||||
Non-amortizable intangible assets | $ | 18,017 | $ | 18,810 | |||||
Amortizable intangible assets | 2,407 | 2,525 | |||||||
20,424 | 21,335 | ||||||||
Accumulated amortization | (990 | ) | (1,000 | ) | |||||
Intangible assets, net | $ | 19,434 | $ | 20,335 | |||||
Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: | ||||||||
Intangible | |||||||||
Goodwill | Assets, at Cost | ||||||||
(in millions) | |||||||||
Balance at January 1, 2015 | $ | 23,389 | $ | 21,335 | |||||
Changes due to: | |||||||||
Currency | (1,052 | ) | (969 | ) | |||||
Acquisition | 19 | 58 | |||||||
Balance at March 31, 2015 | $ | 22,356 | $ | 20,424 | |||||
Restructuring_Programs_Tables
Restructuring Programs (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
2014-2018 Restructuring Program | |||||||||||||
Schedule of Restructuring Costs | The activity for the 2014-2018 Restructuring Program liability for the three months ended March 31, 2015 was: | ||||||||||||
Severance | Asset | Total | |||||||||||
and related | Write-downs | ||||||||||||
costs | |||||||||||||
(in millions) | |||||||||||||
Liability balance, January 1, 2015 | $ | 224 | $ | – | $ | 224 | |||||||
Charges | 85 | 78 | 163 | ||||||||||
Cash spent | (39 | ) | – | (39 | ) | ||||||||
Non-cash settlements / adjustments | – | (78 | ) | (78 | ) | ||||||||
Currency | (14 | ) | – | (14 | ) | ||||||||
Liability balance, March, 31, 2015 | $ | 256 | $ | – | $ | 256 | |||||||
2012-2014 Restructuring Program | |||||||||||||
Schedule of Restructuring Costs | The activity for the 2012-2014 Restructuring Program liability for the three months ended March 31, 2015 was: | ||||||||||||
Severance | Asset | Total | |||||||||||
and related | Write-downs | ||||||||||||
costs | |||||||||||||
(in millions) | |||||||||||||
Liability balance, January 1, 2015 | $ | 128 | $ | – | $ | 128 | |||||||
Charges | (2 | ) | – | (2 | ) | ||||||||
Cash spent | (19 | ) | – | (19 | ) | ||||||||
Non-cash settlements | – | – | – | ||||||||||
Currency | (5 | ) | – | (5 | ) | ||||||||
Liability balance, March 31, 2015 | $ | 102 | $ | – | $ | 102 | |||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Short-Term Borrowings and Related Weighted-Average Interest Rates | Our short-term borrowings and related weighted-average interest rates consisted of: | ||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
Amount | Weighted- | Amount | Weighted- | ||||||||||||||
Outstanding | Average Rate | Outstanding | Average Rate | ||||||||||||||
(in millions) | (in millions) | ||||||||||||||||
Commercial paper | $ | 3,465 | 0.50% | $ | 1,101 | 0.40% | |||||||||||
Bank loans | 223 | 12.10% | 204 | 8.80% | |||||||||||||
Total short-term borrowings | $ | 3,688 | $ | 1,305 | |||||||||||||
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 Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Interest expense, debt | $ | 175 | $ | 202 | |||||||||||||
Loss on debt extinguishment and related expenses | 713 | 494 | |||||||||||||||
Realized gain on planned coffee business divestiture currency hedges | (311 | ) | – | ||||||||||||||
Unrealized gain on planned coffee business divestiture currency hedges | (240 | ) | – | ||||||||||||||
Loss related to interest rate swaps | 34 | – | |||||||||||||||
Other expense, net | 15 | 24 | |||||||||||||||
Total interest and other expense, net | $ | 386 | $ | 720 | |||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the consolidated balance sheets as follows: | ||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||
Asset | Liability | Asset | Liability | ||||||||||||||
Derivatives | Derivatives | Derivatives | Derivatives | ||||||||||||||
(in millions) | |||||||||||||||||
Derivatives designated as | |||||||||||||||||
accounting hedges: | |||||||||||||||||
Currency exchange contracts | $ | 90 | $ | 33 | $ | 69 | $ | 17 | |||||||||
Commodity contracts | 1 | 57 | 12 | 33 | |||||||||||||
Interest rate contracts | 17 | 73 | 13 | 42 | |||||||||||||
$ | 108 | $ | 163 | $ | 94 | $ | 92 | ||||||||||
Derivatives not designated as | |||||||||||||||||
accounting hedges: | |||||||||||||||||
Currency exchange contracts | $ | 284 | $ | 77 | $ | 735 | $ | 24 | |||||||||
Commodity contracts | 107 | 156 | 90 | 194 | |||||||||||||
Interest rate contracts | 50 | 33 | 59 | 39 | |||||||||||||
$ | 441 | $ | 266 | $ | 884 | $ | 257 | ||||||||||
Total fair value | $ | 549 | $ | 429 | $ | 978 | $ | 349 | |||||||||
Notional Values of Derivative Instruments | The net notional values of our derivative instruments were: | ||||||||||||||||
Notional Amount | |||||||||||||||||
As of March 31, | As of December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts: | |||||||||||||||||
Intercompany loans and forecasted interest payments | $ | 3,639 | $ | 3,640 | |||||||||||||
Forecasted transactions | 6,670 | 6,681 | |||||||||||||||
Commodity contracts | 1,196 | 1,569 | |||||||||||||||
Interest rate contracts | 3,037 | 3,970 | |||||||||||||||
Net investment hedge – euro notes | 4,722 | 3,932 | |||||||||||||||
Net investment hedge – pound sterling notes | 1,185 | 545 | |||||||||||||||
Net investment hedge – Swiss franc notes | 694 | – | |||||||||||||||
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, pound sterling and Swiss franc-denominated debt were: | ||||||||||||||||
For the Three Months Ended | Location of | ||||||||||||||||
March 31, | Gain / (Loss) | ||||||||||||||||
Recognized in | |||||||||||||||||
2015 | 2014 | AOCI | |||||||||||||||
(in millions) | |||||||||||||||||
Euro notes | $ | 314 | $ | (5 | ) | Currency | |||||||||||
Pound sterling notes | 32 | (4 | ) | Translation | |||||||||||||
Swiss franc notes | (13 | ) | – | Adjustment | |||||||||||||
Derivative | |||||||||||||||||
Schedule of Derivative Instruments Fair Value and Measurement Inputs | The fair values (asset / (liability)) of our derivative instruments were determined using: | ||||||||||||||||
As of March 31, 2015 | |||||||||||||||||
Total | Quoted Prices in | Significant | Significant | ||||||||||||||
Fair Value of Net | Active Markets | Other Observable | Unobservable | ||||||||||||||
Asset / (Liability) | for Identical | Inputs (Level 2) | Inputs | ||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts | $ | 264 | $ | – | $ | 264 | $ | – | |||||||||
Commodity contracts | (105 | ) | (105 | ) | – | – | |||||||||||
Interest rate contracts | (39 | ) | – | (39 | ) | – | |||||||||||
Total derivatives | $ | 120 | $ | (105 | ) | $ | 225 | $ | – | ||||||||
As of December 31, 2014 | |||||||||||||||||
Total | Quoted Prices in | Significant | Significant | ||||||||||||||
Fair Value of Net | Active Markets | Other Observable | Unobservable | ||||||||||||||
Asset / (Liability) | for Identical | Inputs (Level 2) | Inputs | ||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts | $ | 763 | $ | – | $ | 763 | $ | – | |||||||||
Commodity contracts | (125 | ) | (49 | ) | (76 | ) | – | ||||||||||
Interest rate contracts | (9 | ) | – | (9 | ) | – | |||||||||||
Total derivatives | $ | 629 | $ | (49 | ) | $ | 678 | $ | – | ||||||||
Fair Value Hedges | |||||||||||||||||
Schedule of Effects of Derivative Instruments | Pre-tax gains / (losses) due to changes in fair value of our interest rate swaps and related hedged long-term debt were recorded in interest and other expense, net: | ||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Derivatives | $ | 4 | $ | – | |||||||||||||
Borrowings | (4 | ) | – | ||||||||||||||
Cash Flow Hedges | |||||||||||||||||
Schedule of Cash Flow Hedges Effect on Accumulated Other Comprehensive Income, Net of Taxes | Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings / (losses) included: | ||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Accumulated gain / (loss) at beginning of period | $ | (2 | ) | $ | 117 | ||||||||||||
Transfer of realized losses / (gains) in fair value to earnings | (18 | ) | (1 | ) | |||||||||||||
Unrealized gain / (loss) in fair value | (26 | ) | (34 | ) | |||||||||||||
Accumulated gain / (loss) at end of period | $ | (46 | ) | $ | 82 | ||||||||||||
Schedule of Effects of Derivative Instruments | After-tax gains / (losses) reclassified from accumulated other comprehensive earnings / (losses) into net earnings were: | ||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts – forecasted transactions | $ | 46 | $ | (2 | ) | ||||||||||||
Commodity contracts | (2 | ) | 5 | ||||||||||||||
Interest rate contracts | (26 | ) | (2 | ) | |||||||||||||
Total | $ | 18 | $ | 1 | |||||||||||||
After-tax gains / (losses) recognized in other comprehensive earnings / (losses) were: | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts -forecasted transactions | $ | 49 | $ | 2 | |||||||||||||
Commodity contracts | (38 | ) | 11 | ||||||||||||||
Interest rate contracts | (37 | ) | (47 | ) | |||||||||||||
Total | $ | (26 | ) | $ | (34 | ) | |||||||||||
Economic Hedging | |||||||||||||||||
Schedule of Effects of Derivative Instruments | Pre-tax gains / (losses) recorded in net earnings for economic hedges were: | ||||||||||||||||
Location of | |||||||||||||||||
For the Three Months Ended | Gain / (Loss) | ||||||||||||||||
March 31, | Recognized | ||||||||||||||||
2015 | 2014 | in Earnings | |||||||||||||||
(in millions) | |||||||||||||||||
Currency exchange contracts: | |||||||||||||||||
Intercompany loans and forecasted | $ | 7 | $ | (2 | ) | Interest and other | |||||||||||
interest payments | expense, net | ||||||||||||||||
Forecasted transactions | (3 | ) | (10 | ) | Cost of sales | ||||||||||||
Forecasted transactions | 553 | (5 | ) | Interest and other | |||||||||||||
expense, net | |||||||||||||||||
Forecasted transactions | (11 | ) | (1 | ) | Selling, general and | ||||||||||||
administrative expenses | |||||||||||||||||
Interest rate contracts | 1 | – | Interest and other | ||||||||||||||
expense, net | |||||||||||||||||
Commodity contracts | (41 | ) | 38 | Cost of sales | |||||||||||||
Total | $ | 506 | $ | 20 | |||||||||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Postretirement Benefit Plans | |||||||||||||||||
Components of Net Costs | Net postretirement health care costs consisted of the following: | ||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Service cost | $ | 4 | $ | 3 | |||||||||||||
Interest cost | 6 | 5 | |||||||||||||||
Amortization: | |||||||||||||||||
Net loss from experience differences | 3 | 2 | |||||||||||||||
Prior service credit | (2 | ) | (3 | ) | |||||||||||||
Net postretirement health care costs | $ | 11 | $ | 7 | |||||||||||||
Postemployment Benefit Plans | |||||||||||||||||
Components of Net Costs | Net postemployment costs consisted of the following: | ||||||||||||||||
For the Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(in millions) | |||||||||||||||||
Service cost | $ | 2 | $ | 2 | |||||||||||||
Interest cost | 1 | 2 | |||||||||||||||
Net postemployment costs | $ | 3 | $ | 4 | |||||||||||||
Pension Plans | |||||||||||||||||
Components of Net Costs | Net periodic pension cost consisted of the following: | ||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
For the Three Months Ended March 31, | For the Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in millions) | |||||||||||||||||
Service cost | $ | 17 | $ | 15 | $ | 50 | $ | 44 | |||||||||
Interest cost | 17 | 17 | 77 | 97 | |||||||||||||
Expected return on plan assets | (23 | ) | (20 | ) | (119 | ) | (123 | ) | |||||||||
Amortization: | |||||||||||||||||
Net loss from experience differences | 12 | 8 | 39 | 27 | |||||||||||||
Settlement losses | 3 | 2 | – | 5 | |||||||||||||
Net periodic pension cost | $ | 26 | $ | 22 | $ | 47 | $ | 50 | |||||||||
Stock_Plans_Tables
Stock Plans (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Stock Options Activity | Stock option activity consisted of the following: | ||||||||||||||||
Shares Subject | Weighted-Average | Aggregate | |||||||||||||||
to Option | Exercise or | Intrinsic | |||||||||||||||
Grant Price | Value | ||||||||||||||||
Per Share | |||||||||||||||||
Balance at January 1, 2015 | 56,431,551 | $ | 24.19 | $ | 685 million | ||||||||||||
Annual grant to eligible employees | 8,899,530 | 36.94 | |||||||||||||||
Additional options issued | 808,460 | 35.48 | |||||||||||||||
Total options granted | 9,707,990 | 36.82 | |||||||||||||||
Options exercised | (2,598,094 | ) | 23.16 | $ | 35 million | ||||||||||||
Options cancelled | (632,703 | ) | 31.37 | ||||||||||||||
Balance at March 31, 2015 | 62,908,744 | 26.11 | $ | 635 million | |||||||||||||
Restricted And Deferred Stock | |||||||||||||||||
Restricted and Deferred Stock Activity | Restricted and deferred stock activity consisted of the following: | ||||||||||||||||
Number of | Grant Date | Weighted-Average | Weighted-Average | ||||||||||||||
Shares | Fair Value | Aggregate | |||||||||||||||
Per Share | Fair Value | ||||||||||||||||
Balance at January 1, 2015 | 10,582,640 | $ | 28.56 | ||||||||||||||
Performance share units granted | 1,598,290 | Feb. 18, 2015 | 36.94 | ||||||||||||||
Annual grant to eligible employees | 1,253,550 | Feb. 18, 2015 | 36.94 | ||||||||||||||
Additional shares issued | 643,413 | Various | 36.71 | ||||||||||||||
Total shares granted | 3,495,253 | 36.9 | $ | 129 million | |||||||||||||
Vested | (3,234,075 | ) | 36.95 | $ | 119 million | ||||||||||||
Forfeited | (267,181 | ) | 32.49 | ||||||||||||||
Balance at March 31, 2015 | 10,576,637 | 28.65 | |||||||||||||||
Reclassifications_from_Accumul1
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Components of Accumulated Other Comprehensive Earnings /(Losses) | The components of accumulated other comprehensive earnings / (losses) attributable to Mondelēz International were: | ||||||||||||||||
Mondelēz International Shareholders’ Equity | |||||||||||||||||
Currency | Pension and | Derivatives | Total | ||||||||||||||
Translation | Other Benefits | Accounted for | |||||||||||||||
Adjustments | as Hedges | ||||||||||||||||
(in millions) | |||||||||||||||||
Balances at January 1, 2014 | $ | (1,414 | ) | $ | (1,592 | ) | $ | 117 | $ | (2,889 | ) | ||||||
Other comprehensive earnings / (losses), | |||||||||||||||||
before reclassifications: | |||||||||||||||||
Currency translation adjustment (1) | (225 | ) | 8 | – | (217 | ) | |||||||||||
Pension and other benefits | – | 6 | – | 6 | |||||||||||||
Derivatives accounted for as hedges | (15 | ) | – | (56 | ) | (71 | ) | ||||||||||
Losses / (gains) reclassified into | – | 41 | (2 | ) | 39 | ||||||||||||
net earnings | |||||||||||||||||
Tax (expense) / benefit | 6 | (13 | ) | 23 | 16 | ||||||||||||
Total other comprehensive | (227 | ) | |||||||||||||||
earnings / (losses) | |||||||||||||||||
Balances at March 31, 2014 | $ | (1,648 | ) | $ | (1,550 | ) | $ | 82 | $ | (3,116 | ) | ||||||
Balances at January 1, 2015 | $ | (5,042 | ) | $ | (2,274 | ) | $ | (2 | ) | $ | (7,318 | ) | |||||
Other comprehensive earnings / (losses), | |||||||||||||||||
before reclassifications: | |||||||||||||||||
Currency translation adjustment(1) | (2,352 | ) | 131 | – | (2,221 | ) | |||||||||||
Pension and other benefits | – | – | – | – | |||||||||||||
Derivatives accounted for as hedges | 525 | – | (56 | ) | 469 | ||||||||||||
Losses / (gains) reclassified into | – | 55 | (4 | ) | 51 | ||||||||||||
net earnings | |||||||||||||||||
Tax (expense) / benefit | (192 | ) | (13 | ) | 16 | (189 | ) | ||||||||||
Total other comprehensive | (1,890 | ) | |||||||||||||||
earnings / (losses) | |||||||||||||||||
Balances at March 31, 2015 | $ | (7,061 | ) | $ | (2,101 | ) | $ | (46 | ) | $ | (9,208 | ) | |||||
-1 | The condensed consolidated statement of other comprehensive earnings includes currency translation adjustment attributable to noncontrolling interests of $(25) million for the three months ended March 31, 2015 and $(1) million for the three months ended March 31, 2014. | ||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Earnings/ (Losses) | Amounts reclassified from accumulated other comprehensive earnings / (losses) and their locations in the condensed consolidated financial statements were as follows: | ||||||||||||||||
For the Three Months Ended | Location of | ||||||||||||||||
Gain / (Loss) | |||||||||||||||||
March 31, | Recognized | ||||||||||||||||
2015 | 2014 | in Net Earnings | |||||||||||||||
(in millions) | |||||||||||||||||
Pension and other benefits: | |||||||||||||||||
Reclassification of losses / (gains) into | |||||||||||||||||
net earnings: | |||||||||||||||||
Amortization of experience losses and | $ | 52 | $ | 34 | |||||||||||||
prior service costs (1) | |||||||||||||||||
Settlement losses (1) | 3 | 7 | |||||||||||||||
Tax impact | (13 | ) | (13 | ) | Provision for income taxes | ||||||||||||
Derivatives accounted for as hedges: | |||||||||||||||||
Reclassification of losses / (gains) into | |||||||||||||||||
net earnings: | |||||||||||||||||
Currency exchange contracts – | (50 | ) | 2 | Cost of sales | |||||||||||||
forecasted transactions | |||||||||||||||||
Commodity contracts | 5 | (7 | ) | Cost of sales | |||||||||||||
Interest rate contracts | 41 | 3 | Interest and other | ||||||||||||||
expense, net | |||||||||||||||||
Tax impact | (14 | ) | – | Provision for income taxes | |||||||||||||
Total reclassifications into net earnings, net of tax | 24 | 26 | |||||||||||||||
-1 | These items are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated using the following: | ||||||||
For the Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in millions, except per share data) | |||||||||
Net earnings | $ | 312 | $ | 150 | |||||
Noncontrolling interest | (12 | ) | (13 | ) | |||||
Net earnings attributable to Mondelēz International | $ | 324 | $ | 163 | |||||
Weighted-average shares for basic EPS | 1,648 | 1,704 | |||||||
Plus incremental shares from assumed conversions of | 17 | 18 | |||||||
stock options and long-term incentive plan shares | |||||||||
Weighted-average shares for diluted EPS | 1,665 | 1,722 | |||||||
Basic earnings per share attributable to Mondelēz International | $ | 0.2 | $ | 0.1 | |||||
Diluted earnings per share attributable to Mondelēz International | $ | 0.19 | $ | 0.09 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Net Revenues by Segment | |||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||
Latin America | $ | 1,257 | $ | 1,356 | |||||||||||||||||||||
Asia Pacific | 1,153 | 1,223 | |||||||||||||||||||||||
EEMEA | 695 | 838 | |||||||||||||||||||||||
Europe | 2,975 | 3,557 | |||||||||||||||||||||||
North America | 1,682 | 1,667 | |||||||||||||||||||||||
Net revenues | $ | 7,762 | $ | 8,641 | |||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | |||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Earnings before income taxes: | |||||||||||||||||||||||||
Operating income: | |||||||||||||||||||||||||
Latin America | $ | 154 | $ | 44 | |||||||||||||||||||||
Asia Pacific | 146 | 188 | |||||||||||||||||||||||
EEMEA | 32 | 64 | |||||||||||||||||||||||
Europe | 326 | 463 | |||||||||||||||||||||||
North America | 281 | 203 | |||||||||||||||||||||||
Unrealized gains / (losses) on hedging activities | (7 | ) | 7 | ||||||||||||||||||||||
General corporate expenses | (74 | ) | (72 | ) | |||||||||||||||||||||
Amortization of intangibles | (46 | ) | (54 | ) | |||||||||||||||||||||
Acquisition-related costs | (1 | ) | – | ||||||||||||||||||||||
Operating income | 811 | 843 | |||||||||||||||||||||||
Interest and other expense, net | (386 | ) | (720 | ) | |||||||||||||||||||||
Earnings before income taxes | $ | 425 | $ | 123 | |||||||||||||||||||||
Net Revenues by Consumer Sector | Net revenues by product category were: | ||||||||||||||||||||||||
For the Three Months Ended March 31, 2015 | |||||||||||||||||||||||||
Latin | Asia | North | |||||||||||||||||||||||
America | Pacific | EEMEA | Europe | America | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Biscuits | $ | 309 | $ | 316 | $ | 124 | $ | 594 | $ | 1,358 | $ | 2,701 | |||||||||||||
Chocolate | 294 | 402 | 199 | 1,228 | 56 | 2,179 | |||||||||||||||||||
Gum & Candy | 295 | 191 | 118 | 183 | 268 | 1,055 | |||||||||||||||||||
Beverages | 214 | 115 | 185 | 674 | – | 1,188 | |||||||||||||||||||
Cheese & Grocery | 145 | 129 | 69 | 296 | – | 639 | |||||||||||||||||||
Total net revenues | $ | 1,257 | $ | 1,153 | $ | 695 | $ | 2,975 | $ | 1,682 | $ | 7,762 | |||||||||||||
For the Three Months Ended March 31, 2014 (1) | |||||||||||||||||||||||||
Latin | Asia | North | |||||||||||||||||||||||
America | Pacific | EEMEA | Europe | America | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Biscuits | $ | 327 | $ | 331 | $ | 147 | $ | 722 | $ | 1,341 | $ | 2,868 | |||||||||||||
Chocolate | 324 | 418 | 243 | 1,476 | 63 | 2,524 | |||||||||||||||||||
Gum & Candy | 286 | 206 | 147 | 223 | 263 | 1,125 | |||||||||||||||||||
Beverages | 255 | 122 | 228 | 777 | – | 1,382 | |||||||||||||||||||
Cheese & Grocery | 164 | 146 | 73 | 359 | – | 742 | |||||||||||||||||||
Total net revenues | $ | 1,356 | $ | 1,223 | $ | 838 | $ | 3,557 | $ | 1,667 | $ | 8,641 | |||||||||||||
-1 | During 2014, 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 2015 presentation. |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 2 Months Ended | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 23, 2014 | Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 08, 2013 | Jan. 02, 2010 | ||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Change in accounting policy effect of change on net revenue | $39,000,000 | ||||||||
Change in accounting policy effect of change on operating results | 19,000,000 | ||||||||
Net revenue | 7,762,000,000 | 8,641,000,000 | [1] | ||||||
Argentina | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net revenue | 175,000,000 | ||||||||
Percentage of consolidated net revenues | 2.30% | ||||||||
Russia | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net revenue | 170,000,000 | ||||||||
Percentage of consolidated net revenues | 2.20% | ||||||||
UKRAINE | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Net revenue | 45,000,000 | ||||||||
Percentage of consolidated net revenues | 0.60% | ||||||||
International Monetary Fund financing provided to Ukraine | 18,000,000,000 | 18,000,000,000 | |||||||
SICAD I | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Foreign currency impacts relating to highly inflationary accounting | -142,000,000 | ||||||||
SICAD | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Foreign currency impacts relating to highly inflationary accounting | ($11,000,000) | ||||||||
Venezuelan bolC-var fuerte | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Foreign currency exchange rate translation | 6.3 | 6.3 | 6.3 | 4.3 | |||||
Venezuelan bolC-var fuerte | SICAD I | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Foreign currency exchange rate translation | 10.7 | ||||||||
Venezuelan bolC-var fuerte | SIMADI | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Foreign currency exchange rate translation | 193.05 | 193.05 | |||||||
Venezuelan bolC-var fuerte | SICAD | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Foreign currency exchange rate translation | 12 | 12 | 11.5 | ||||||
Argentina, Pesos | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Devalued percentage against US Dollar | 4.00% | 15.00% | |||||||
Russia, Rubles | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Devalued percentage against US Dollar | 18.00% | 50.00% | |||||||
Percentage strengthened against US Dollar | 17.00% | ||||||||
Ukraine, Hryvnia | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||
Devalued percentage against US Dollar | 49.00% | ||||||||
[1] | During 2014, 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 2015 presentation. |
Net_Revenues_Cash_Net_Monetary
Net Revenues, Cash, Net Monetary and Net Assets of Company's Venezuelan Subsidiaries (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Information [Line Items] | |||
Net revenues | $7,762 | $8,641 | [1] |
Venezuela | |||
Segment Information [Line Items] | |||
Net revenues | 218 | ||
Percentage of consolidated net revenues | 2.80% | ||
Venezuela | SICAD I | |||
Segment Information [Line Items] | |||
Cash | 313 | ||
Net monetary assets | 234 | ||
Net assets | $522 | ||
[1] | During 2014, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2015 presentation. |
Divestitures_and_Acquisition_A
Divestitures and Acquisition - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||
Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Nov. 10, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Feb. 11, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Feb. 16, 2015 | Mar. 31, 2015 | Feb. 27, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Apr. 17, 2015 | Apr. 23, 2015 | Apr. 23, 2015 | Mar. 31, 2015 | |
USD ($) | Scenario, Forecast | Scenario, Forecast | Vietnam | Vietnam | Vietnam | Vietnam | Foreign Exchange Forward | Foreign Exchange Forward | Foreign Exchange Forward | Maximum | Maximum | Enjoy Life Foods | Enjoy Life Foods | Japanese Coffee Joint Venture | Japanese Coffee Joint Venture | Japanese Coffee Joint Venture | Japanese Coffee Joint Venture | Subsequent Event | Subsequent Event | Subsequent Event | Europe And EEMEA segments | |
USD ($) | EUR (€) | USD ($) | Scenario, Forecast | Scenario, Forecast | Scenario, Forecast | USD ($) | Gain (Loss) on Derivative Instruments | Interest and other expense | Vietnam | Vietnam | USD ($) | USD ($) | USD ($) | Scenario, Forecast | Other Current Assets | Foreign Exchange Forward | Japanese Coffee Joint Venture | Japanese Coffee Joint Venture | Selling, general and administrative expenses | |||
VND | USD ($) | VND | USD ($) | USD ($) | Scenario, Forecast | Scenario, Forecast | USD ($) | USD ($) | USD ($) | USD ($) | JPY (¥) | USD ($) | ||||||||||
VND | USD ($) | |||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||
Expected cash receipts from planned coffee business transactions | $5,000,000,000 | € 4,000,000,000 | ||||||||||||||||||||
Estimated percentage of equity interest in Jacobs Douwe Egberts | 49.00% | 49.00% | ||||||||||||||||||||
Proceeds from planned coffee business divestiture currency hedge settlements | 939,000,000 | 939,000,000 | 296,000,000 | |||||||||||||||||||
Realized gain on planned coffee business transactions currency hedge | 311,000,000 | 311,000,000 | ||||||||||||||||||||
Unrealized gain on planned coffee business divestiture currency hedge | 240,000,000 | 240,000,000 | ||||||||||||||||||||
Expenses related to readying businesses for planned transactions | 28,000,000 | |||||||||||||||||||||
Sale of stock, percentage of ownership before transaction | 50.00% | |||||||||||||||||||||
Held for sale investment reclassified from long-term other assets | 96,000,000 | |||||||||||||||||||||
Tax charges related to the pending sale | 32,000,000 | 32,000,000 | ||||||||||||||||||||
Divested cumulative translation losses in connection with the sale | 42,000,000 | |||||||||||||||||||||
Proceeds from divestiture of interest | 225,000,000 | 27,000,000,000 | ||||||||||||||||||||
Business combination, consideration transferred | 81,000,000 | |||||||||||||||||||||
Cash paid for acquisition | 9,935,000,000,000 | 468,000,000 | 12,656,000,000,000 | 596,000,000 | 81,000,000 | |||||||||||||||||
Intangible assets acquired | 58,000,000 | |||||||||||||||||||||
Other net assets acquired | 4,000,000 | |||||||||||||||||||||
Goodwill acquired during the period | 19,000,000 | 19,000,000 | ||||||||||||||||||||
Escrow deposit upon signing the purchase agreement | $46,000,000 | $47,000,000 | 991,000,000,000 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials | $1,210 | $1,122 |
Finished product | 2,211 | 2,358 |
Inventories, net | $3,421 | $3,480 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $16,083 | $16,912 |
Accumulated depreciation | -6,822 | -7,085 |
Property, plant and equipment, net | 9,261 | 9,827 |
Land and Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 540 | 574 |
Buildings and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,946 | 3,117 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 11,107 | 11,737 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $1,490 | $1,484 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Asset impairment charges | $78 | $12 |
2012-2014 Restructuring Program and 2014-2018 Restructuring Program | ||
Property, Plant and Equipment [Line Items] | ||
Asset impairment charges | $78 | $12 |
Summary_of_Asset_Impairment_an
Summary of Asset Impairment and Exit Costs (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Asset impairment charges | $78 | $12 |
2012-2014 Restructuring Program and 2014-2018 Restructuring Program | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Asset impairment charges | 78 | 12 |
2012-2014 Restructuring Program and 2014-2018 Restructuring Program | Latin America Segment | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Asset impairment charges | 13 | |
2012-2014 Restructuring Program and 2014-2018 Restructuring Program | Asia Pacific Segment | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Asset impairment charges | 19 | |
2012-2014 Restructuring Program and 2014-2018 Restructuring Program | Europe Segment | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Asset impairment charges | 25 | 1 |
2012-2014 Restructuring Program and 2014-2018 Restructuring Program | North America Segment | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Asset impairment charges | $21 | $11 |
Goodwill_by_Reportable_Segment
Goodwill by Reportable Segment (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $22,356 | $23,389 |
Latin America Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 1,004 | 1,127 |
Asia Pacific Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 2,314 | 2,395 |
EEMEA Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 1,775 | 1,942 |
Europe Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 8,338 | 8,952 |
North America Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $8,925 | $8,973 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Intangible Assets [Line Items] | ||
Non-amortizable intangible assets | $18,017 | $18,810 |
Amortizable intangible assets | 2,407 | 2,525 |
Total intangible assets, gross | 20,424 | 21,335 |
Accumulated amortization | -990 | -1,000 |
Intangible assets, net | $19,434 | $20,335 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Amortization expense for intangible assets | $46 | $54 | |
Estimated amortization expense in year 1 | 190 | ||
Estimated amortization expense in year 2 | 190 | ||
Estimated amortization expense in year 3 | 190 | ||
Estimated amortization expense in year 4 | 190 | ||
Estimated amortization expense in year 5 | 190 | ||
Number of brands | 3 | ||
Intangible asset, aggregate book value | 18,017 | 18,810 | |
Fair Value Over Book Value 10% or Less | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Intangible asset, aggregate book value | 341 | ||
Asia Pacific and Europe | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Asset impairment charges on intangible assets | $57 | ||
Weighted Average | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Life of our amortizable intangible assets (in years) | 13 years 3 months 18 days |
Changes_in_Goodwill_and_Intang
Changes in Goodwill and Intangible Assets (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Goodwill And Intangible Assets [Line Items] | |
Goodwill beginning balance | $23,389 |
Currency | -1,052 |
Acquisition | 19 |
Goodwill ending balance | 22,356 |
Intangible Assets, at Cost beginning balance | 21,335 |
Currency | -969 |
Acquisition | 58 |
Intangible Assets, at Cost ending balance | $20,424 |
Restructuring_Programs_Additio
Restructuring Programs - Additional Information (Detail) (USD $) | 3 Months Ended | 11 Months Ended | 0 Months Ended | 12 Months Ended | 36 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | 6-May-14 | Dec. 31, 2012 | Dec. 31, 2014 | |||
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved restructuring program cost related to capital expenditure | $439,000,000 | $326,000,000 | ||||||
2014-2018 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved restructuring program cost | 3,500,000,000 | |||||||
Restructuring and related cost, cost incurred | 224,000,000 | 605,000,000 | [1] | |||||
Restructuring charges | 163,000,000 | 437,000,000 | [1] | |||||
Cash spent | 39,000,000 | |||||||
Non-cash asset write-downs | 78,000,000 | |||||||
Restructuring reserve | 256,000,000 | 256,000,000 | 224,000,000 | |||||
Implementation costs | 61,000,000 | 168,000,000 | [1] | |||||
2014-2018 Restructuring Program | Selling, general and administrative expenses | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Implementation costs | 61,000,000 | |||||||
2014-2018 Restructuring Program | Other Current Liabilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring reserve | 248,000,000 | 248,000,000 | ||||||
2014-2018 Restructuring Program | Other Long Term Liabilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring reserve | 8,000,000 | 8,000,000 | ||||||
2014-2018 Restructuring Program | Maximum | Scenario, Forecast | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved restructuring program cost related to capital expenditure | 2,200,000,000 | |||||||
2014-2018 Restructuring Program | Cash Expense | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved restructuring program cost | 2,500,000,000 | |||||||
2014-2018 Restructuring Program | Non Cash Expense | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved restructuring program cost | 1,000,000,000 | |||||||
2012-2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved restructuring program cost | 925,000,000 | |||||||
Restructuring and related cost, cost incurred | 66,000,000 | 899,000,000 | [2] | |||||
Restructuring charges | -2,000,000 | 42,000,000 | 729,000,000 | [2] | ||||
Cash spent | 19,000,000 | 28,000,000 | ||||||
Non-cash asset write-downs | 13,000,000 | |||||||
Restructuring reserve | 102,000,000 | 102,000,000 | 128,000,000 | |||||
Implementation costs | 24,000,000 | 170,000,000 | [2] | |||||
Restructuring and related activities, authorized amount | 1,500,000,000 | |||||||
Restructuring and related cost, cost incurred | 899,000,000 | |||||||
2012-2014 Restructuring Program | Selling, general and administrative expenses | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Implementation costs | 24,000,000 | |||||||
2012-2014 Restructuring Program | Other Current Liabilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring reserve | 74,000,000 | 74,000,000 | ||||||
2012-2014 Restructuring Program | Other Long Term Liabilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring reserve | $28,000,000 | $28,000,000 | ||||||
[1] | Includes all charges recorded since program inception on May 6, 2014 through March 31, 2015. | |||||||
[2] | Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. |
Schedule_of_Restructuring_Cost
Schedule of Restructuring Costs (Detail) (USD $) | 3 Months Ended | 11 Months Ended | 3 Months Ended | 36 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | ||
2014-2018 Restructuring Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Balance at beginning of period | $224 | |||||
Charges | 163 | 437 | [1] | |||
Cash spent | -39 | |||||
Non-cash settlements | -78 | |||||
Currency | -14 | |||||
Balance at end of period | 256 | 256 | ||||
2014-2018 Restructuring Program | Severance And Related Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Balance at beginning of period | 224 | |||||
Charges | 85 | |||||
Cash spent | -39 | |||||
Currency | -14 | |||||
Balance at end of period | 256 | 256 | ||||
2014-2018 Restructuring Program | Asset Write-Downs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 78 | |||||
Non-cash settlements | -78 | |||||
2012-2014 Restructuring Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Balance at beginning of period | 128 | |||||
Charges | -2 | 42 | 729 | [2] | ||
Cash spent | -19 | -28 | ||||
Non-cash settlements | -13 | |||||
Currency | -5 | |||||
Balance at end of period | 102 | 102 | 128 | |||
2012-2014 Restructuring Program | Severance And Related Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Balance at beginning of period | 128 | |||||
Charges | -2 | |||||
Cash spent | -19 | |||||
Currency | -5 | |||||
Balance at end of period | $102 | $102 | ||||
[1] | Includes all charges recorded since program inception on May 6, 2014 through March 31, 2015. | |||||
[2] | Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. |
Restructuring_and_Implementati
Restructuring and Implementation Costs (Detail) (USD $) | 3 Months Ended | 36 Months Ended | 11 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | ||||
2012-2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | ($2) | $42 | $729 | [1] | ||||
Implementation costs | 24 | 170 | [1] | |||||
Total | 66 | 899 | [1] | |||||
2014-2018 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 163 | 437 | [2] | |||||
Implementation costs | 61 | 168 | [2] | |||||
Total | 224 | 605 | [2] | |||||
Operating Segments | 2012-2014 Restructuring Program | Latin America Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 1 | 36 | [1] | |||||
Implementation costs | 3 | [1] | ||||||
Total | 1 | 39 | [1] | |||||
Operating Segments | 2012-2014 Restructuring Program | Asia Pacific Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 36 | [1] | ||||||
Implementation costs | 6 | [1] | ||||||
Total | 42 | [1] | ||||||
Operating Segments | 2012-2014 Restructuring Program | EEMEA Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 4 | 69 | [1] | |||||
Implementation costs | 1 | 4 | [1] | |||||
Total | 5 | 73 | [1] | |||||
Operating Segments | 2012-2014 Restructuring Program | Europe Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 17 | 249 | [1] | |||||
Implementation costs | 15 | 88 | [1] | |||||
Total | 32 | 337 | [1] | |||||
Operating Segments | 2012-2014 Restructuring Program | North America Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 20 | 337 | [1] | |||||
Implementation costs | 7 | 65 | [1] | |||||
Total | 27 | 402 | [1] | |||||
Operating Segments | 2014-2018 Restructuring Program | Latin America Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 15 | 96 | [2] | |||||
Implementation costs | 9 | 25 | [2] | |||||
Total | 24 | 121 | [2] | |||||
Operating Segments | 2014-2018 Restructuring Program | Asia Pacific Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 25 | 41 | [2] | |||||
Implementation costs | 4 | 13 | [2] | |||||
Total | 29 | 54 | [2] | |||||
Operating Segments | 2014-2018 Restructuring Program | EEMEA Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 2 | 21 | [2] | |||||
Implementation costs | 4 | 8 | [2] | |||||
Total | 6 | 29 | [2] | |||||
Operating Segments | 2014-2018 Restructuring Program | Europe Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 109 | 200 | [2] | |||||
Implementation costs | 20 | 57 | [2] | |||||
Total | 129 | 257 | [2] | |||||
Operating Segments | 2014-2018 Restructuring Program | North America Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 11 | 68 | [2] | |||||
Implementation costs | 9 | 14 | [2] | |||||
Total | 20 | 82 | [2] | |||||
Corporate | 2012-2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 2 | [1],[3] | ||||||
Implementation costs | 1 | [3] | 4 | [1],[3] | ||||
Total | 1 | [3] | 6 | [1],[3] | ||||
Corporate | 2014-2018 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 1 | [3] | 11 | [2],[3] | ||||
Implementation costs | 15 | [3] | 51 | [2],[3] | ||||
Total | $16 | [3] | $62 | [2],[3] | ||||
[1] | Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. | |||||||
[2] | Includes all charges recorded since program inception on May 6, 2014 through March 31, 2015. | |||||||
[3] | Includes adjustment for rounding. |
ShortTerm_Borrowings_and_Relat
Short-Term Borrowings and Related Weighted-Average Interest Rates (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Short-term Debt [Line Items] | ||
Amount outstanding | $3,688 | $1,305 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Amount outstanding | 3,465 | 1,101 |
Weighted-average rate | 0.50% | 0.40% |
Bank Loans | ||
Short-term Debt [Line Items] | ||
Amount outstanding | $223 | $204 |
Weighted-average rate | 12.10% | 8.80% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
Mar. 30, 2015 | Mar. 06, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 30, 2015 | Mar. 20, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 20, 2015 | Mar. 31, 2015 | Mar. 30, 2015 | Mar. 30, 2015 | Mar. 30, 2015 | Mar. 30, 2015 | Mar. 30, 2015 | Mar. 30, 2015 | Mar. 30, 2015 | Mar. 30, 2015 | Mar. 30, 2015 | Mar. 30, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 06, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | GBP (£) | USD ($) | 6.250% Senior Notes | 6.250% Senior Notes | International Subsidiaries | International Subsidiaries | Revolving Credit Facility | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Tender Offer | Franc Notes | Franc Notes | 0.000% Fixed Rate Notes | 0.000% Fixed Rate Notes | 0.000% Fixed Rate Notes | 0.625% Fixed Rate Notes | 0.625% Fixed Rate Notes | 0.625% Fixed Rate Notes | 1.125% Fixed Rate Notes | 1.125% Fixed Rate Notes | 1.125% Fixed Rate Notes | 1.000% Fixed rate notes, due March 7, 2022 | 1.000% Fixed rate notes, due March 7, 2022 | 1.000% Fixed rate notes, due March 7, 2022 | 1.625% Fixed rate notes due , March 8, 2027 | 1.625% Fixed rate notes due , March 8, 2027 | 1.625% Fixed rate notes due , March 8, 2027 | 2.375% Fixed rate notes, due March 6, 2035 | 2.375% Fixed rate notes, due March 6, 2035 | 2.375% Fixed rate notes, due March 6, 2035 | 3.875% Fixed rate notes, due March 6, 2045 | 3.875% Fixed rate notes, due March 6, 2045 | 3.875% Fixed rate notes, due March 6, 2045 | Commercial Paper | Commercial Paper | ||
EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | 6.500% Notes due in August 2017 | 6.500% Notes due in August 2017 | 6.125% Notes due in February 2018 | 6.125% Notes due in February 2018 | 6.125% Notes due in August 2018 | 6.125% Notes due in August 2018 | 5.375% Notes due in February 2020 | 5.375% Notes due in February 2020 | 6.500% Notes due in November 2031 | 6.500% Notes due in November 2031 | 7.000% Notes due in August 2037 | 7.000% Notes due in August 2037 | 6.875% Notes due in February 2038 | 6.875% Notes due in February 2038 | 6.875% Notes due in 2039 | 6.875% Notes due in 2039 | 6.500% Notes due in February 2040 | 6.500% Notes due in February 2040 | Cash Flow Hedges | USD ($) | CHF | USD ($) | CHF | USD ($) | CHF | USD ($) | CHF | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | Minimum | Maximum | ||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||
USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper, Maturity period | 1 day | 92 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $2,000,000,000 | $2,100,000,000 | $4,500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving credit facility expiration date | 11-Oct-18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving credit facility debt covenant | 24,600,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving credit facility debt covenant terms | 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving credit facility debt covenant compliance | At March 31, 2015, we complied with the covenant | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings / (losses) | 33,800,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility outstanding amount | 223,000,000 | 204,000,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, principal amount | 2,800,000,000 | 2,800,000,000 | 2,000,000,000 | 450,000,000 | 694,000,000 | 675,000,000 | 180,000,000 | 175,000,000 | 308,000,000 | 300,000,000 | 206,000,000 | 200,000,000 | 537,000,000 | 500,000,000 | 805,000,000 | 750,000,000 | 805,000,000 | 750,000,000 | 667,000,000 | 450,000,000 | |||||||||||||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.00% | 0.00% | 0.63% | 0.63% | 1.13% | 1.13% | 1.00% | 1.00% | 1.63% | 1.63% | 2.38% | 2.38% | 3.88% | 3.88% | |||||||||||||||||||||||||||||||||||||||||||||||
Deb instrument maturity Year | 30-Mar-17 | 30-Dec-21 | 30-Dec-25 | 7-Mar-22 | 8-Mar-27 | 6-Mar-35 | 6-Mar-45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net proceeds from issuance of notes | 675,000,000 | 2,890,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discounts and deferred financing costs | 2,000,000 | 29,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of debt | 4,085,000,000 | 2,514,000,000 | 850,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument interest rate | 6.25% | 6.50% | 6.13% | 6.13% | 5.38% | 6.50% | 7.00% | 6.88% | 6.88% | 6.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||
Cash tender offer amount | 2,500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument repurchased, principal amount | 102,000,000 | 115,000,000 | 80,000,000 | 691,000,000 | 201,000,000 | 26,000,000 | 71,000,000 | 69,000,000 | 1,143,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument expiration | 2017-08 | 2018-02 | 2018-08 | 2020-02 | 2031-11 | 2037-08 | 2038-02 | 2039-01 | 2040-02 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | -708,000,000 | -492,000,000 | -708,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average interest rate | 3.10% | 4.30% | 4.80% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of total debt | 19,986,000,000 | 18,463,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying value of total debt | $18,705,000,000 | $16,700,000,000 |
Interest_and_Other_Expense_Net
Interest and Other Expense Net Within Results of Continuing Operations (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ||
Interest expense, debt | $175 | $202 |
Loss on debt extinguishment and related expenses | 713 | 494 |
Realized gain on planned coffee business divestiture currency hedges | -311 | |
Unrealized gain on planned coffee business divestiture currency hedges | -240 | |
Loss related to interest rate swaps | 34 | |
Other expense, net | 15 | 24 |
Total interest and other expense, net | $386 | $720 |
Fair_Value_of_Derivative_Instr
Fair Value of Derivative Instruments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $549 | $978 |
Liability Derivatives | 429 | 349 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 108 | 94 |
Liability Derivatives | 163 | 92 |
Derivatives Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 90 | 69 |
Liability Derivatives | 33 | 17 |
Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 1 | 12 |
Liability Derivatives | 57 | 33 |
Derivatives Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 17 | 13 |
Liability Derivatives | 73 | 42 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 441 | 884 |
Liability Derivatives | 266 | 257 |
Derivatives Not Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 284 | 735 |
Liability Derivatives | 77 | 24 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 107 | 90 |
Liability Derivatives | 156 | 194 |
Derivatives Not Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 50 | 59 |
Liability Derivatives | $33 | $39 |
Derivative_Instruments_Fair_Va
Derivative Instruments Fair Value and Measurement Inputs (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $120 | $629 |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 264 | 763 |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | -105 | -125 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | -39 | -9 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | -105 | -49 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | -105 | -49 |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 225 | 678 |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 264 | 763 |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | -76 | |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | ($39) | ($9) |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
USD ($) | Quoted Prices In Active Markets For Identical Assets (Level 1) | Quoted Prices In Active Markets For Identical Assets (Level 1) | Quoted Prices In Active Markets For Identical Assets (Level 1) | Quoted Prices In Active Markets For Identical Assets (Level 1) | Quoted Prices In Active Markets For Identical Assets (Level 1) | Quoted Prices In Active Markets For Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Commodity contracts | Commodity contracts | Currency exchange contracts | Currency exchange contracts | Interest rate contracts | Interest rate contracts | Interest rate contracts | Foreign Exchange Forward | Foreign Exchange Forward | Foreign Exchange Forward | Foreign Exchange Forward | |
USD ($) | USD ($) | Exchange Traded Options | Exchange Traded Options | Exchange Traded Options | Exchange Traded Options | USD ($) | USD ($) | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | Cash Flow Hedges | USD ($) | Interest and other expense | Economic Hedging | Economic Hedging | |||||
USD ($) | USD ($) | Other Current Assets | Other Current Assets | USD ($) | USD ($) | USD ($) | Maximum | USD ($) | EUR (€) | Interest and other expense | ||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||
Margin deposits related to exchange traded derivatives | $146,000,000 | $84,000,000 | ||||||||||||||||||
Derivative assets after effects of netting | 42,000,000 | 38,000,000 | 67,000,000 | 72,000,000 | ||||||||||||||||
Derivative liabilities after effects of netting | 1,000,000 | 3,000,000 | 159,000,000 | 156,000,000 | ||||||||||||||||
Loss related to interest rate swaps | -34,000,000 | -34,000,000 | ||||||||||||||||||
Expected transfers of unrealized gains (losses) to earnings, within next 12 months | 55,000,000 | 55,000,000 | 1,000,000 | |||||||||||||||||
Hedged forecasted transactions | 16 months | 11 months | 30 years 11 months | |||||||||||||||||
Expected cash receipt related to planned coffee business transactions, amount hedged | 4,000,000,000 | |||||||||||||||||||
Unrealized gains (losses) recorded in earnings related to planned coffee business transactions | 240,000,000 | 240,000,000 | 240,000,000 | |||||||||||||||||
Realized gain on planned coffee business transactions currency hedge | $311,000,000 | $311,000,000 |
Notional_Values_of_Derivative_
Notional Values of Derivative Instruments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Net Investment Hedging | Euro Notes | ||
Derivative [Line Items] | ||
Notional Amount | $4,722 | $3,932 |
Net Investment Hedging | Pound Sterling Notes | ||
Derivative [Line Items] | ||
Notional Amount | 1,185 | 545 |
Net Investment Hedging | Franc Notes | ||
Derivative [Line Items] | ||
Notional Amount | 694 | |
Currency exchange contracts | Intercompany Loans And Forecasted Interest Payments | ||
Derivative [Line Items] | ||
Notional Amount | 3,639 | 3,640 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 6,670 | 6,681 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 1,196 | 1,569 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | $3,037 | $3,970 |
Schedule_of_Cash_Flow_Hedges_E
Schedule of Cash Flow Hedges Effect on Accumulated Other Comprehensive Income, Net of Taxes (Detail) (Cash Flow Hedges, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Accumulated gain / (loss) at beginning of period | ($2) | $117 |
Transfer of realized losses / (gains) in fair value to earnings | -18 | -1 |
Unrealized gain / (loss) in fair value | -26 | -34 |
Accumulated gain / (loss) at end of period | ($46) | $82 |
Effects_of_Cash_Flow_Hedges_De
Effects of Cash Flow Hedges (Detail) (Cash Flow Hedges, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains / (losses) reclassified from AOCI into earnings | $18 | $1 |
Gains / (losses) recognized in OCI | -26 | -34 |
Currency exchange contracts | Forecasted transactions | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains / (losses) reclassified from AOCI into earnings | 46 | -2 |
Gains / (losses) recognized in OCI | 49 | 2 |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains / (losses) reclassified from AOCI into earnings | -2 | 5 |
Gains / (losses) recognized in OCI | -38 | 11 |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains / (losses) reclassified from AOCI into earnings | -26 | -2 |
Gains / (losses) recognized in OCI | ($37) | ($47) |
Fair_Value_Hedges_Detail
Fair Value Hedges (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Interest Rate Swap | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gain / (loss) recognized in income on fair value of hedges | $4 |
Long-term Debt | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Gain / (loss) recognized in income on fair value of hedges | ($4) |
Economic_Hedges_Detail
Economic Hedges (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (Loss) Recognized in Earnings | $311 | |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (Loss) Recognized in Earnings | 506 | 20 |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Interest rate contracts | Interest and other expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (Loss) Recognized in Earnings | 1 | |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Commodity contracts | Cost of Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (Loss) Recognized in Earnings | -41 | 38 |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Forecasted transactions | Currency exchange contracts | Cost of Sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (Loss) Recognized in Earnings | -3 | -10 |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Forecasted transactions | Currency exchange contracts | Interest and other expense/(income) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (Loss) Recognized in Earnings | 553 | -5 |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Forecasted transactions | Currency exchange contracts | Selling, general and administrative expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (Loss) Recognized in Earnings | -11 | -1 |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Forecasted Interest Payments | Intercompany loans | Currency exchange contracts | Interest and other expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (Loss) Recognized in Earnings | $7 | ($2) |
Hedges_of_Net_Investments_in_I
Hedges of Net Investments in International Operations (Detail) (Net Investment Hedging, Currency Translation Adjustments, Currency exchange contracts, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Euro Notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains / (losses) recognized in OCI | $314 | ($5) |
Pound Sterling Notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains / (losses) recognized in OCI | 32 | -4 |
Franc Notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains / (losses) recognized in OCI | ($13) |
Components_of_Net_Pension_Cost
Components of Net Pension Cost (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $17 | $15 |
Interest cost | 17 | 17 |
Expected return on plan assets | -23 | -20 |
Net loss from experience differences | 12 | 8 |
Settlement losses | 3 | 2 |
Net periodic benefit cost | 26 | 22 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 50 | 44 |
Interest cost | 77 | 97 |
Expected return on plan assets | -119 | -123 |
Net loss from experience differences | 39 | 27 |
Settlement losses | 5 | |
Net periodic benefit cost | $47 | $50 |
Benefit_Plans_Additional_Infor
Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contribution | $202 |
Estimated future employer contributions for remainder of the year | 8 |
Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contribution | 116 |
Estimated future employer contributions for remainder of the year | $203 |
Components_of_Net_Postretireme
Components of Net Postretirement Health Care Costs (Detail) (Postretirement Benefit Plans, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $4 | $3 |
Interest cost | 6 | 5 |
Net loss from experience differences | 3 | 2 |
Prior service credit | -2 | -3 |
Net periodic benefit cost | $11 | $7 |
Components_of_Net_Postemployme
Components of Net Postemployment Costs (Detail) (Postemployment Benefit Plans, USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Postemployment Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $2 | $2 |
Interest cost | 1 | 2 |
Net periodic benefit cost | $3 | $4 |
Stock_Option_Activity_Detail
Stock Option Activity (Detail) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Shares subject to option | ||
Beginning balance | 56,431,551 | |
Options granted | 9,707,990 | |
Options exercised | -2,598,094 | |
Options cancelled | -632,703 | |
Ending balance | 62,908,744 | |
Weighted-average exercise price | ||
Beginning balance | $24.19 | |
Options granted | $36.82 | |
Options exercised | $23.16 | |
Options cancelled | $31.37 | |
Ending balance | $26.11 | |
Aggregate intrinsic value | ||
Options exercised | $35 | |
Aggregate Intrinsic Value | $635 | $685 |
Annual grant to eligible employees | ||
Shares subject to option | ||
Options granted | 8,899,530 | |
Weighted-average exercise price | ||
Options granted | $36.94 | |
Additional issued | ||
Shares subject to option | ||
Options granted | 808,460 | |
Weighted-average exercise price | ||
Options granted | $35.48 |
Restricted_and_Deferred_Stock_
Restricted and Deferred Stock Activity (Detail) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Number of Shares | |
Beginning balance | 10,582,640 |
Shares granted | 3,495,253 |
Vested | -3,234,075 |
Forfeited | -267,181 |
Ending balance | 10,576,637 |
Weighted-average grant date fair value per share | |
Beginning balance | $28.56 |
Shares granted | $36.90 |
Vested | $36.95 |
Forfeited | $32.49 |
Ending balance | $28.65 |
Weighted-Average Aggregate Fair Value | |
Total shares granted | $129 |
Vested | $119 |
Performance share units granted | |
Number of Shares | |
Shares granted | 1,598,290 |
Grant date | |
Grant date | Feb. 18, 2015 |
Weighted-average grant date fair value per share | |
Shares granted | $36.94 |
Annual grant to eligible employees | |
Number of Shares | |
Shares granted | 1,253,550 |
Grant date | |
Grant date | Feb. 18, 2015 |
Weighted-average grant date fair value per share | |
Shares granted | $36.94 |
Additional issued | |
Number of Shares | |
Shares granted | 643,413 |
Grant date | |
Grant date | Various |
Weighted-average grant date fair value per share | |
Shares granted | $36.71 |
Stock_Plans_Additional_Informa
Stock Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cost of shares repurchased | $1,500,000,000 | $1,891,000,000 | |
Common Class A | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock repurchase value | 7,700,000,000 | ||
Stock repurchase expiration date | 31-Dec-16 | ||
Number of shares repurchased | 41.7 | ||
Average cost of shares repurchased | $35.98 | ||
Cost of shares repurchased | 1,500,000,000 | ||
Stock repurchase remaining amount | $1,600,000,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended | 0 Months Ended | |||||||||||||
Mar. 31, 2015 | Mar. 31, 2015 | Apr. 02, 2015 | Apr. 09, 2015 | Apr. 16, 2015 | Apr. 22, 2015 | Apr. 24, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
U.S. Commodity Futures Trading Commission ("CFTC") | U.S. Commodity Futures Trading Commission ("CFTC") | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Indian Department of Central Excise Authority | Indian Department of Central Excise Authority | Indian Department of Central Excise Authority | Indian Department of Central Excise Authority | Indian Department of Central Excise Authority | Indian Department of Central Excise Authority | Indian Department of Central Excise Authority | Indian Department of Central Excise Authority | |
USD ($) | Each Additional Violation of the Commodity Exchange Act | Harry Ploss, Class Action Lawsuit | Richard Dennis, Class Action Lawsuit | Henrik Christensen, Class Action Lawsuit | White Oak Fund, LP, Class Action Lawsuit | Budicak Inc, Class Action Lawsuit | Cadbury | Cadbury | Cadbury | Cadbury | Cadbury | Cadbury | Cadbury | Cadbury | |
USD ($) | USD ($) | INR | February to December 2013 | February to December 2013 | Maximum | Maximum | Maximum | Maximum | |||||||
USD ($) | INR | USD ($) | INR | February to December 2013 | February to December 2013 | ||||||||||
USD ($) | INR | ||||||||||||||
Loss Contingencies [Line Items] | |||||||||||||||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | $60,000,000 | 3,700,000,000 | $17,000,000 | 1,000,000,000 | |||||||||||
Tax penalties and interest expense | 94,000,000 | 5,800,000,000 | 17,000,000 | 1,000,000,000 | |||||||||||
Loss contingency, filling date | 1-Apr-15 | 2-Apr-15 | 9-Apr-15 | 16-Apr-15 | 22-Apr-15 | 24-Apr-15 | |||||||||
Loss contingency, damages sought | $1,000,000 | $140,000 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Earnings / (Losses) (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balances | ($7,318) | ($2,889) | ||
Currency translation adjustment | -2,221 | [1] | -217 | [1] |
Pension and other benefits | 6 | |||
Derivatives accounted for as hedges | -56 | -56 | ||
Losses / (gains) reclassified into net earnings | 51 | 39 | ||
Tax (expense) / benefit | -189 | 16 | ||
Total other comprehensive earnings / (losses) | -1,890 | -227 | ||
Ending balances | -9,208 | -3,116 | ||
Derivatives Designated as Hedging Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Derivatives accounted for as hedges | 469 | -71 | ||
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balances | -5,042 | -1,414 | ||
Currency translation adjustment | -2,352 | [1] | -225 | [1] |
Tax (expense) / benefit | -192 | 6 | ||
Ending balances | -7,061 | -1,648 | ||
Currency Translation Adjustments | Derivatives Designated as Hedging Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Derivatives accounted for as hedges | 525 | -15 | ||
Pension and Other Benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balances | -2,274 | -1,592 | ||
Currency translation adjustment | 131 | [1] | 8 | [1] |
Pension and other benefits | 6 | |||
Losses / (gains) reclassified into net earnings | 55 | 41 | ||
Tax (expense) / benefit | -13 | -13 | ||
Ending balances | -2,101 | -1,550 | ||
Derivatives Accounted for as Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balances | -2 | 117 | ||
Losses / (gains) reclassified into net earnings | -4 | -2 | ||
Tax (expense) / benefit | 16 | 23 | ||
Ending balances | -46 | 82 | ||
Derivatives Accounted for as Hedges | Derivatives Designated as Hedging Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Derivatives accounted for as hedges | ($56) | ($56) | ||
[1] | The condensed consolidated statement of other comprehensive earnings includes currency translation adjustment attributable to noncontrolling interests of $(25) million for the three months ended March 31, 2015 and $(1) million for the three months ended March 31, 2014. |
Components_of_Accumulated_Othe1
Components of Accumulated Other Comprehensive Earnings / (Losses) (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Currency translation adjustment attributable to noncontrolling interests | ($25) | ($1) |
Amounts_Reclassified_from_Accu
Amounts Reclassified from Accumulated Other Comprehensive Earnings (Losses) (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Amortization of experience losses and prior service costs | $52 | [1] | $34 | [1] |
Settlement losses / (gains) | 3 | [1] | 7 | [1] |
Derivatives accounted for as hedges, Reclassification of losses / (gains) included in net earnings | 4 | 2 | ||
Total reclassifications into net earnings, net of tax | 24 | 26 | ||
Provision for income taxes | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax impact | -14 | |||
Currency exchange contracts | Forecasted transactions | Cost of Sales | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Derivatives accounted for as hedges, Reclassification of losses / (gains) included in net earnings | -50 | 2 | ||
Commodity contracts | Cost of Sales | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Derivatives accounted for as hedges, Reclassification of losses / (gains) included in net earnings | 5 | -7 | ||
Interest rate contracts | Interest and other expense/ (income) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Derivatives accounted for as hedges, Reclassification of losses / (gains) included in net earnings | 41 | 3 | ||
Pension and Other Benefits | Provision for income taxes | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax impact | ($13) | ($13) | ||
[1] | These items are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2015 |
Income Tax Contingency [Line Items] | ||||
Impact on provision for income tax, out-of-period adjustments | $7 | |||
Effective tax rate | 26.60% | -22.00% | 20.10% | |
Total favorable discrete items | 25 | 52 | ||
Net unfavorable tax charge related to the sale of joint venture | 32 | |||
Net favorable tax audit settlements and expirations of statutes of limitations | $51 | |||
Scenario, Forecast | ||||
Income Tax Contingency [Line Items] | ||||
Estimated effective tax rate | 20.50% |
Basic_and_Diluted_Earnings_per
Basic and Diluted Earnings per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Earnings Per Share [Line Items] | |||
Net earnings | $312 | $150 | $2,201 |
Noncontrolling interest | -12 | -13 | |
Net earnings attributable to Mondelez International | $324 | $163 | |
Weighted-average shares for basic EPS | 1,648 | 1,704 | |
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares | 17 | 18 | |
Weighted-average shares for diluted EPS | 1,665 | 1,722 | |
Basic earnings per share attributable to Mondelez International | $0.20 | $0.10 | |
Diluted earnings per share attributable to Mondelez International | $0.19 | $0.09 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Mondelez International stock options excluded from the calculation of diluted EPS | 10.9 | 4.7 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 5 | |
Stock-based compensation expense | $36 | $35 |
North America Segment | Scenario, Previously Reported | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | -11 | |
Corporate | Scenario, Adjustment | ||
Segment Reporting Information [Line Items] | ||
Stock-based compensation expense | $11 |
Net_Revenues_by_Segment_Detail
Net Revenues by Segment (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $7,762 | $8,641 | [1] |
Latin America Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,257 | 1,356 | [1] |
Asia Pacific Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,153 | 1,223 | [1] |
EEMEA Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 695 | 838 | [1] |
Europe Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,975 | 3,557 | [1] |
North America Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $1,682 | $1,667 | [1] |
[1] | During 2014, 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 2015 presentation. |
Operating_Income_by_Segment_De
Operating Income by Segment (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Unrealized gains (losses) on derivatives | $240 | |
General corporate expenses | -74 | -72 |
Amortization of intangibles | -46 | -54 |
Acquisition-related costs | -1 | |
Operating income | 811 | 843 |
Interest and other expense, net | -386 | -720 |
Earnings before income taxes | 425 | 123 |
Cost of Sales | ||
Segment Reporting Information [Line Items] | ||
Unrealized gains (losses) on derivatives | -7 | 7 |
Latin America Segment | ||
Segment Reporting Information [Line Items] | ||
Operating income | 154 | 44 |
Asia Pacific Segment | ||
Segment Reporting Information [Line Items] | ||
Operating income | 146 | 188 |
EEMEA Segment | ||
Segment Reporting Information [Line Items] | ||
Operating income | 32 | 64 |
Europe Segment | ||
Segment Reporting Information [Line Items] | ||
Operating income | 326 | 463 |
North America Segment | ||
Segment Reporting Information [Line Items] | ||
Operating income | $281 | $203 |
Net_Revenues_by_Consumer_Secto
Net Revenues by Consumer Sector (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $7,762 | $8,641 | [1] |
Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,701 | 2,868 | [1] |
Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,179 | 2,524 | [1] |
Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,055 | 1,125 | [1] |
Beverages | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,188 | 1,382 | [1] |
Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 639 | 742 | [1] |
Latin America Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,257 | 1,356 | [1] |
Latin America Segment | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 309 | 327 | [1] |
Latin America Segment | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 294 | 324 | [1] |
Latin America Segment | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 295 | 286 | [1] |
Latin America Segment | Beverages | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 214 | 255 | [1] |
Latin America Segment | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 145 | 164 | [1] |
Asia Pacific Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,153 | 1,223 | [1] |
Asia Pacific Segment | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 316 | 331 | [1] |
Asia Pacific Segment | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 402 | 418 | [1] |
Asia Pacific Segment | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 191 | 206 | [1] |
Asia Pacific Segment | Beverages | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 115 | 122 | [1] |
Asia Pacific Segment | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 129 | 146 | [1] |
EEMEA Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 695 | 838 | [1] |
EEMEA Segment | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 124 | 147 | [1] |
EEMEA Segment | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 199 | 243 | [1] |
EEMEA Segment | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 118 | 147 | [1] |
EEMEA Segment | Beverages | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 185 | 228 | [1] |
EEMEA Segment | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 69 | 73 | [1] |
Europe Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,975 | 3,557 | [1] |
Europe Segment | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 594 | 722 | [1] |
Europe Segment | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,228 | 1,476 | [1] |
Europe Segment | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 183 | 223 | [1] |
Europe Segment | Beverages | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 674 | 777 | [1] |
Europe Segment | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 296 | 359 | [1] |
North America Segment | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,682 | 1,667 | [1] |
North America Segment | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,358 | 1,341 | [1] |
North America Segment | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 56 | 63 | [1] |
North America Segment | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $268 | $263 | [1] |
[1] | During 2014, 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 2015 presentation. |