Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 24, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MDLZ | |
Entity Registrant Name | Mondelez International, Inc. | |
Entity Central Index Key | 1,103,982 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,611,307,164 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||
Net revenues | $ 7,661 | $ 8,436 | [1] | $ 15,423 | $ 17,077 | [1] |
Cost of sales | 4,595 | 5,331 | 9,416 | 10,768 | ||
Gross profit | 3,066 | 3,105 | 6,007 | 6,309 | ||
Selling, general and administrative expenses | 1,961 | 2,038 | 3,885 | 4,303 | ||
Asset impairment and exit costs | 231 | 55 | 391 | 97 | ||
Gain on divestiture | (13) | (13) | ||||
Amortization of intangibles | 46 | 55 | 92 | 109 | ||
Operating income | 841 | 957 | 1,652 | 1,800 | ||
Interest and other expense, net | 314 | 224 | 700 | 944 | ||
Earnings before income taxes | 527 | 733 | 952 | 856 | ||
Provision for income taxes | 100 | 91 | 213 | 64 | ||
Net earnings | 427 | 642 | 739 | 792 | ||
Noncontrolling interest | 21 | 20 | 9 | 7 | ||
Net earnings attributable to Mondelez International | $ 406 | $ 622 | $ 730 | $ 785 | ||
Per share data: | ||||||
Basic earnings per share attributable to Mondelez International | $ 0.25 | $ 0.37 | $ 0.45 | $ 0.46 | ||
Diluted earnings per share attributable to Mondelez International | 0.25 | 0.36 | 0.44 | 0.46 | ||
Dividends declared | $ 0.15 | $ 0.14 | $ 0.30 | $ 0.28 | ||
[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 Stateme3
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net earnings | $ 427 | $ 642 | $ 739 | $ 792 |
Currency translation adjustment: | ||||
Translation adjustment | 397 | 373 | (1,324) | 140 |
Tax (expense) / benefit | 104 | (9) | (88) | (3) |
Pension and other benefits: | ||||
Net actuarial gain / (loss) arising during period | (28) | (6) | (28) | |
Reclassification of (gains) / losses into net earnings: | ||||
Amortization of experience losses and prior service costs | 67 | 35 | 119 | 69 |
Settlement losses | 10 | 9 | 13 | 16 |
Tax (expense) / benefit | (18) | (8) | (31) | (21) |
Derivatives accounted for as hedges: | ||||
Net derivative gains / (losses) | 66 | (56) | 10 | (112) |
Reclassification of (gains) / losses into net earnings | (44) | (2) | (48) | (4) |
Tax (expense) / benefit | (29) | 20 | (13) | 43 |
Total other comprehensive earnings / (losses) | 525 | 356 | (1,390) | 128 |
Comprehensive earnings / (losses) | 952 | 998 | (651) | 920 |
less: Comprehensive earnings / (losses) attributable to noncontrolling interests | 30 | 20 | (7) | 6 |
Comprehensive earnings / (losses) attributable to Mondelez International | $ 922 | $ 978 | $ (644) | $ 914 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 1,958 | $ 1,631 |
Trade receivables (net of allowances of $59 at June 30, 2015 and $66 at December 31, 2014) | 3,294 | 3,802 |
Other receivables (net of allowances of $93 at June 30, 2015 and $91 at December 31, 2014) | 955 | 949 |
Inventories, net | 3,000 | 3,480 |
Deferred income taxes | 569 | 480 |
Other current assets | 653 | 1,408 |
Total current assets | 11,888 | 11,750 |
Property, plant and equipment, net | 8,728 | 9,827 |
Goodwill | 21,055 | 23,389 |
Intangible assets, net | 19,677 | 20,335 |
Prepaid pension assets | 50 | 53 |
Other assets | 1,281 | 1,461 |
TOTAL ASSETS | 65,118 | 66,815 |
LIABILITIES | ||
Short-term borrowings | 4,483 | 1,305 |
Current portion of long-term debt | 1,764 | 1,530 |
Accounts payable | 4,499 | 5,299 |
Accrued marketing | 1,483 | 2,047 |
Accrued employment costs | 819 | 946 |
Other current liabilities | 2,917 | 2,880 |
Total current liabilities | 16,788 | 14,007 |
Long-term debt | 13,090 | 13,865 |
Deferred income taxes | 5,289 | 5,512 |
Accrued pension costs | 2,313 | 2,912 |
Accrued postretirement health care costs | 534 | 526 |
Other liabilities | 2,159 | 2,140 |
TOTAL LIABILITIES | $ 40,384 | $ 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 June 30, 2015 and December 31, 2014) | $ 0 | $ 0 |
Additional paid-in capital | 31,690 | 31,651 |
Retained earnings | 14,725 | 14,529 |
Accumulated other comprehensive losses | (8,692) | (7,318) |
Treasury stock, at cost (385,085,976 shares at June 30, 2015 and 332,896,779 shares at December 31, 2014) | (13,078) | (11,112) |
Total Mondelez International Shareholders' Equity | 24,645 | 27,750 |
Noncontrolling interest | 89 | 103 |
TOTAL EQUITY | 24,734 | 27,853 |
TOTAL LIABILITIES AND EQUITY | 65,118 | $ 66,815 |
Other Current Assets | ||
ASSETS | ||
Assets held for sale | 1,459 | |
Other Noncurrent Assets | ||
ASSETS | ||
Assets held for sale | 2,439 | |
Other Current Liabilities | ||
LIABILITIES | ||
Liabilities held for sale | 823 | |
Other Noncurrent Liabilities | ||
LIABILITIES | ||
Liabilities held for sale | $ 211 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions, None in scaling factor is -9223372036854775296 | Jun. 30, 2015 | Dec. 31, 2014 |
Trade receivables, allowances | $ 59 | $ 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 | 385,085,976 | 332,896,779 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/(Losses) | Treasury Stock | Noncontrolling Interest | [1] |
Balances at Dec. 31, 2013 | $ 32,532 | $ 31,396 | $ 13,419 | $ (2,889) | $ (9,553) | $ 159 | |
Comprehensive earnings / (losses): | |||||||
Net earnings | 2,201 | 2,184 | 17 | ||||
Other comprehensive losses, net of income taxes | (4,462) | (4,429) | (33) | ||||
Exercise of stock options and issuance of other stock awards | 505 | 271 | (98) | 332 | |||
Common Stock repurchased | (1,891) | (1,891) | |||||
Cash dividends declared ($0.30 per share for 2015 and $0.58 per share for 2014) | (976) | (976) | |||||
Dividends paid on noncontrolling interest and other activities | (56) | (16) | (40) | ||||
Balances at Dec. 31, 2014 | 27,853 | 31,651 | 14,529 | (7,318) | (11,112) | 103 | |
Comprehensive earnings / (losses): | |||||||
Net earnings | 739 | 730 | 9 | ||||
Other comprehensive losses, net of income taxes | (1,390) | (1,374) | (16) | ||||
Exercise of stock options and issuance of other stock awards | 191 | 38 | (47) | 200 | |||
Common Stock repurchased | (2,166) | (2,166) | |||||
Cash dividends declared ($0.30 per share for 2015 and $0.58 per share for 2014) | (487) | (487) | |||||
Dividends paid on noncontrolling interest and other activities | (6) | 1 | (7) | ||||
Balances at Jun. 30, 2015 | $ 24,734 | $ 31,690 | $ 14,725 | $ (8,692) | $ (13,078) | $ 89 | |
[1] | Noncontrolling interest as of June 30, 2014 was $139 million, as compared to $159 million as of January 1, 2014. The change of $(20) million during the six months ended June 30, 2014 was due to $(26) million of dividends paid, $7 million of net earnings and $(1) million of other comprehensive losses, net of taxes. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash dividends declared, per share | $ 0.15 | $ 0.14 | $ 0.30 | $ 0.28 | $ 0.58 | |
Noncontrolling interest | $ 89 | $ 139 | $ 89 | $ 139 | $ 103 | $ 159 |
Change in noncontrolling interest | (20) | |||||
Dividends paid to noncontrolling interest | $ (6) | (26) | $ (56) | |||
Net earnings | $ 21 | $ 20 | $ 9 | 7 | ||
Other comprehensive losses, net of taxes | $ (1) |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES | ||
Net earnings | $ 739 | $ 792 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 457 | 533 |
Stock-based compensation expense | 66 | 68 |
Deferred income tax provision / (benefit) | (52) | (180) |
Gain on divestiture | (13) | |
Asset impairments | 138 | 27 |
Loss on early extinguishment of debt | 708 | 493 |
Unrealized net loss on coffee business divestiture currency hedges | 200 | |
Gain on monetization of coffee business divestiture currency hedges | (607) | |
Other non-cash items, net | 143 | 132 |
Change in assets and liabilities, net of acquisition and divestitures: | ||
Receivables, net | (143) | 70 |
Inventories, net | (181) | (353) |
Accounts payable | (49) | (18) |
Other current assets | 52 | (60) |
Other current liabilities | (694) | (1,095) |
Change in pension and postretirement assets and liabilities, net | (193) | (41) |
Net cash provided by operating activities | 571 | 368 |
CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES | ||
Capital expenditures | (790) | (724) |
Proceeds from coffee business divestiture currency hedge settlements | 1,235 | |
Acquisition, net of cash received | (81) | |
Proceeds from divestiture, net of disbursements | 219 | |
Proceeds from sale of property, plant and equipment and other | 26 | |
Net cash provided by / (used in) investing activities | 583 | (698) |
CASH PROVIDED BY / (USED IN) FINANCING ACTIVITIES | ||
Issuances of commercial paper, maturities greater than 90 days | 613 | 1,956 |
Repayments of commercial paper, maturities greater than 90 days | (405) | (1,164) |
Net issuances / (repayments) of other short-term borrowings | 2,980 | (394) |
Long-term debt proceeds | 3,606 | 3,029 |
Long-term debt repaid | (4,539) | (2,516) |
Repurchase of Common Stock | (2,132) | (720) |
Dividends paid | (495) | (476) |
Other | 75 | 112 |
Net cash used in financing activities | (297) | (173) |
Effect of exchange rate changes on cash and cash equivalents | (88) | (39) |
Cash and cash equivalents: | ||
Increase / (decrease) | 769 | (542) |
Cash balance included in current assets held for sale | (442) | |
Balance at beginning of period | 1,631 | 2,622 |
Balance at end of period | $ 1,958 | $ 2,080 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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 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 six months ended June 30, 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. 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 June 30, 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 June 30, 2015, the SIMADI exchange rate was 197.30 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 and expect to utilize 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 and six months ended June 30, 2015 (measured at the SICAD rate), and cash, net monetary assets and net assets of our Venezuelan subsidiaries as of June 30, 2015 (translated at a SICAD rate of 12.00 bolivars to the U.S. dollar): Venezuela operations Three Months Ended June 30, 2015 Net revenues $300 million or 3.9% of consolidated net revenues Six Months Ended June 30, 2015 Net revenues $519 million or 3.4% of consolidated net revenues As of June 30, 2015 Cash $388 million Net monetary assets $312 million Net assets $564 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. Russia. Other Countries. New Accounting Pronouncements: In May 2015, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that applies to reporting entities who elect to measure the fair value of an investment using the net asset value (“NAV”) per share (or its equivalent) practical expedient. This ASU removes the requirement to include investments measured using the practical expedient within fair value hierarchy disclosures. Also, practical expedient disclosures previously required for all eligible investments are now only required for investments for which the practical expedient has been elected. The update is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. As we measure certain defined benefit plan assets using the NAV practical expedient, we plan to adopt the new standard on or by the January 1, 2016 effective date. The new standard will impact our disclosures as discussed above but is not otherwise expected to have an impact on our consolidated financial statements. In April 2015, the FASB issued an 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 15, 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 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. 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 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. In May 2015, the FASB proposed changes to the new guidance in the areas of licenses and identifying performance obligations. In July 2015, the FASB approved a deferral of the effective date by one year to annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date which was for annual reporting periods beginning after December 15, 2016. The ASU may be applied retrospectively to historical periods presented or as a cumulative-effect adjustment as of the date of adoption. We continue to assess the impact of the new standard on our consolidated financial statements. |
Divestitures and Acquisitions
Divestitures and Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Divestitures and Acquisitions | Note 2. Divestitures and Acquisitions Divestiture of Coffee Business: On July 2, 2015, we completed transactions to combine our wholly owned coffee businesses (including our coffee portfolio in France) with those of D.E Master Blenders 1753 B.V. (“DEMB”) to create a new company, Jacobs Douwe Egberts (“JDE”). Upon closing, the consideration we received for our coffee businesses was € Other Divestiture and Acquisitions We are currently in the process of determining the fair value of our investment in JDE as of the closing date. We expect to have a preliminary valuation completed in the third quarter of 2015. The sale proceeds are also subject to further adjustments, including finalization of working capital, net debt and other sale adjustments. We expect to finalize the sales price and related adjustments by the end of the second quarter of 2016. Some of the net asset and equity balances we divest in the third quarter may also change based on information that becomes available in the third quarter following the closing. As a result, the actual amount of consideration we receive and the gain we recognize on the divestiture may change until we conclude these matters. Following the transactions, our snacks net revenues, consisting of biscuits, chocolate, gum and candy, were approximately 85% of our 2014 net revenues excluding coffee net revenues. By retaining a significant stake in JDE, we will also continue to have a significant contribution from the coffee category. We plan to reflect our divested historical coffee results and future equity earnings from JDE in results from continuing operations as the coffee category continues to be a significant part of our strategy and net earnings. To lock in an expected U.S. dollar value of approximately $5 billion related to the estimated € € During the second quarter of 2015, we also entered into currency exchange forward contracts to hedge a portion of the cash payments to be made to our subsidiaries in multiple countries where coffee net assets and shares were divested. These hedges with a notional value of € Our coffee business results are reflected in our consolidated financial statements through June 30, 2015. The pre-tax earnings of the coffee businesses were: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Earnings before income taxes $ 212 $ 151 $ 342 $ 310 We also incurred incremental expenses related to readying our global coffee businesses for the divestiture that totaled $157 million in the three months and $185 million in the six months ended June 30, 2015 and $5 million in the three and six months ended June 30, 2014. These expenses were recorded within asset impairment and exit costs and selling, general and administrative expenses of primarily our Europe and Eastern Europe, Middle East and Africa (“EEMEA”) segments and within general corporate expenses. As of June 30, 2015, we have presented our global coffee businesses as held for sale on the consolidated balance sheet. We cleared the significant pre-closing sale conditions such that the planned divestiture was determined to be probable as of June 30, 2015. We received conditional approval for the transaction from the European Commission following their antitrust evaluation and made significant progress on our consultations with Work Councils and employee representations. The European Commission’s ruling was conditioned upon JDE’s divestiture of our contributed Carte Noire Merrild The major classes of the held for sale assets and liabilities consist of: As of June 30, 2015 (in millions) Assets Cash and cash equivalents $ 442 Trade receivables 471 Other receivables 26 Inventories, net 473 Deferred income taxes 5 Other current assets 42 Current assets held for sale 1,459 Property, plant and equipment, net 755 Goodwill 1,672 Intangible assets, net – Other assets 12 Noncurrent assets held for sale 2,439 Total assets held for sale $ 3,898 Liabilities Accounts payable $ 439 Accrued marketing 292 Accrued employment costs 29 Other current liabilities 63 Current liabilities held for sale 823 Deferred income taxes 28 Accrued pension costs 179 Other liabilities 4 Noncurrent liabilities held for sale 211 Total liabilities held for sale $ 1,034 Net assets held for sale $ 2,864 Other Divestiture and Acquisitions: On July 15, 2015, we acquired an 80% interest in a biscuit operation in Vietnam, which is now a subsidiary within our Asia Pacific segment. We will begin to account for the acquisition in the third quarter. Total cash paid to date for the biscuit operation, intellectual property, non-compete and consulting agreements was 11,843 billion Vietnamese dong ($543 million U.S. dollars as of July 15, 2015). We have made or expect to make the following cash payments in connection with the acquisition: • On November 10, 2014, we deposited $46 million in escrow upon signing the purchase agreement. • On July 15, 2015, we made a 9,122 billion Vietnamese dong ($418 million U.S. dollars as of July 15, 2015) payment for the biscuit operation, a $44 million additional escrow deposit and a 759 billion Vietnamese dong ($35 million U.S. dollars as of July 15, 2015) partial payment for the non-compete and continued consulting agreements. • Subject to the satisfaction of final conditions, including the resolution of warranty or other claims or purchase price adjustments, we expect to release previously escrowed funds of $90 million for the remaining 20% interest in the biscuit operation and to make a final payment of 759 billion Vietnamese dong ($35 million U.S. dollars as of July 15, 2015) for the non-compete and consulting agreements. We anticipate resolution of these conditions by the end of the third quarter of 2016. On April 23, 2015, we completed the divestiture of our 50 percent interest in AGF, our Japanese coffee joint venture, to our joint venture partner which generated cash proceeds of 27 billion Japanese yen ($225 million U.S. dollars as of April 23, 2015) and a pre-tax gain of $13 million (after-tax loss of $9 million). Upon closing, we divested our $99 million investment in the joint venture, $65 million of goodwill and $41 million of accumulated other comprehensive losses. We also incurred approximately $7 million of transaction costs. On February 16, 2015, we acquired a U.S. snacking company, Enjoy Life Foods, within our North America segment. We paid cash and settled debt totaling $81 million in connection with the acquisition. Upon finalizing the valuation of the acquired net assets during the second quarter, as of June 30, 2015, we had recorded an $81 million purchase price allocation of $58 million in identifiable intangible assets, $20 million of goodwill and $3 million of other net assets. 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 and six months ended June 30, 2015. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of June 30, As of December 31, 2015 2014 (in millions) Raw materials $ 1,008 $ 1,122 Finished product 1,992 2,358 Inventories, net $ 3,000 $ 3,480 The net inventory balance as of June 30, 2015 excludes our global coffee business net inventory that was presented within current assets held for sale, ahead of our July 2, 2015 divestiture of our global coffee businesses. See Note 2, Divestitures and Acquisitions |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment Property, plant and equipment consisted of the following: As of June 30, As of December 31, 2015 2014 (in millions) Land and land improvements $ 520 $ 574 Buildings and building improvements 2,743 3,117 Machinery and equipment 10,143 11,737 Construction in progress 1,478 1,484 14,884 16,912 Accumulated depreciation (6,156 ) (7,085 ) Property, plant and equipment, net $ 8,728 $ 9,827 The net property, plant and equipment balance as of June 30, 2015 excludes our global coffee business net property, plant and equipment balance that was presented within noncurrent assets held for sale, ahead of our July 2, 2015 divestiture of our global coffee businesses. See Note 2, Divestitures and Acquisitions In connection with our 2012-2014 Restructuring Program and 2014-2018 Restructuring Program, we recorded non-cash asset write-downs (including accelerated depreciation and asset impairments) of $57 million in the three months and $135 million in the six months ended June 30, 2015 and $14 million in the three months and $26 million in the six months ended June 30, 2014 (see Note 6, Restructuring Programs For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Latin America $ 21 $ – $ 34 $ – Asia Pacific 9 – 28 – EEMEA 2 1 2 1 Europe 12 – 37 1 North America 13 13 34 24 Total non-cash asset write-downs $ 57 $ 14 $ 135 $ 26 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill by reportable segment was: As of June 30, As of December 31, 2015 2014 (in millions) Latin America $ 1,010 $ 1,127 Asia Pacific 2,189 2,395 EEMEA 1,456 1,942 Europe 7,463 8,952 North America 8,937 8,973 Goodwill $ 21,055 $ 23,389 Intangible assets consisted of the following: As of June 30, As of December 31, 2015 2014 (in millions) Non-amortizable intangible assets $ 18,272 $ 18,810 Amortizable intangible assets 2,460 2,525 20,732 21,335 Accumulated amortization (1,055 ) (1,000 ) Intangible assets, net $ 19,677 $ 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 Amortization expense for intangible assets was $46 million in the three months and $92 million in the six months ended June 30, 2015 and $55 million in the three months and $109 million in the six months ended June 30, 2014. We currently estimate annual amortization expense for each of the next five years to be approximately $193 million, estimated using June 30, 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: Goodwill Intangible (in millions) Balance at January 1, 2015 $ 23,389 $ 21,335 Changes due to: Currency (616 ) (659 ) Held for sale due to coffee business transactions (1,672 ) – Divestiture (65 ) – Acquisition 20 58 Other (1 ) (2 ) Balance at June 30, 2015 $ 21,055 $ 20,732 Changes to goodwill and intangibles were: • Held for sale – On June 30, 2015, in connection with our July 2, 2015 contribution of our global coffee businesses to JDE, we reclassified $1,672 million of goodwill and less than $1 million of intangible assets to noncurrent assets held for sale. • Divestiture – On April 23, 2015, we completed the divestiture of our 50 percent interest in AGF, which resulted in divesting $65 million of goodwill. • Acquisition – On February 16, 2015, we acquired Enjoy Life Foods and recorded $20 million of goodwill and $58 million in identifiable intangible assets. For more information on these transactions, refer to Note 2, Divestitures and Acquisitions |
Restructuring Programs
Restructuring Programs | 6 Months Ended |
Jun. 30, 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 $787 million related to the 2014-2018 Restructuring Program. Restructuring Costs: We recorded restructuring charges of $135 million in the three months and $297 million in the six months ended June 30, 2015 and $1 million in the three and six months ended June 30, 2014 within asset impairment and exit costs. The activity for the 2014-2018 Restructuring Program liability for the six months ended June 30, 2015 was: Severance Asset Write-downs Total (in millions) Liability balance, January 1, 2015 $ 224 $ – $ 224 Charges 163 134 297 Cash spent (105 ) – (105 ) Non-cash settlements / adjustments (6 ) (134 ) (140 ) Currency (9 ) – (9 ) Liability balance, June 30, 2015 $ 267 $ – $ 267 We spent $66 million in the three months and $105 million in the six months ended June 30, 2015 and $1 million in the three and six months ended June 30, 2014 in cash severance and related costs. We also recognized non-cash pension settlement losses (See Note 9, Benefit Plans 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 $47 million in the three months and $109 million in the six months ended June 30, 2015 and $9 million in the three and six months ended June 30, 2014. 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 (in millions) For the Three Months Ended Restructuring Costs $ 32 $ 18 $ 11 $ 48 $ 19 $ 7 $ 135 Implementation Costs 14 7 3 6 13 4 47 Total $ 46 $ 25 $ 14 $ 54 $ 32 $ 11 $ 182 For the Six Months Ended Restructuring Costs $ 47 $ 45 $ 14 $ 157 $ 28 $ 6 $ 297 Implementation Costs 23 9 6 26 24 21 109 Total $ 70 $ 54 $ 20 $ 183 $ 52 $ 27 $ 406 For the Three and Six Months Restructuring Costs $ 1 $ – $ – $ – $ – $ – $ 1 Implementation Costs 1 – – – – 8 9 Total $ 2 $ – $ – $ – $ – $ 8 $ 10 Total Project 2014-2015 (2) Restructuring Costs $ 128 $ 61 $ 33 $ 248 $ 85 $ 16 $ 571 Implementation Costs 39 18 10 63 29 57 216 Total $ 167 $ 79 $ 43 $ 311 $ 114 $ 73 $ 787 (1) Includes adjustment for rounding. (2) Includes all charges recorded since program inception on May 6, 2014 through June 30, 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 $1 million in the three months and $3 million in the six months ended June 30, 2015 related to accruals no longer required. We recorded restructuring charges of $54 million in the three months and $96 million in the six months ended June 30, 2014 within asset impairment and exit costs. The activity for the 2012-2014 Restructuring Program liability for the six months ended June 30, 2015 was: Severance Asset Write-downs Total (in millions) Liability balance, January 1, 2015 $ 128 $ – $ 128 Charges (3 ) – (3 ) Cash spent (43 ) – (43 ) Non-cash settlements / adjustments 1 – 1 Currency (6 ) – (6 ) Liability balance, June 30, 2015 $ 77 $ – $ 77 We spent $24 million in the three months and $43 million in the six months ended June 30, 2015 and $38 million in the three months and $66 million in the six months ended June 30, 2014 in cash severance and related costs. We also recognized non-cash pension plan settlement losses (See Note 9, Benefit Plans 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 $19 million in the three months and $43 million in the six months ended June 30, 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 and six months ended June 30, 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 (in millions) For the Three Months Ended Restructuring Costs $ 3 $ 1 $ 8 $ 26 $ 16 $ – $ 54 Implementation Costs 1 – 1 13 6 (2 ) 19 Total $ 4 $ 1 $ 9 $ 39 $ 22 $ (2 ) $ 73 For the Six Months Ended Restructuring Costs $ 4 $ 1 $ 12 $ 43 $ 36 $ – $ 96 Implementation Costs 1 – 2 28 13 (1 ) 43 Total $ 5 $ 1 $ 14 $ 71 $ 49 $ (1 ) $ 139 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 | 6 Months Ended |
Jun. 30, 2015 | |
Debt | Note 7. Debt Short-Term Borrowings: Our short-term borrowings and related weighted-average interest rates consisted of: As of June 30, 2015 As of December 31, 2014 Amount Weighted- Amount Weighted- (in millions) (in millions) Commercial paper $ 4,211 0.5% $ 1,101 0.4% Bank loans 272 10.1% 204 8.8% Total short-term borrowings $ 4,483 $ 1,305 As of June 30, 2015, the commercial paper issued and outstanding had between 1 and 90 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: On June 11, 2015, we entered into a $500 million short-term senior unsecured revolving credit facility, which expired on July 31, 2015. The facility was intended to be used for general corporate purposes, including short-term working capital and other financing needs, supplementing our existing $4.5 billion revolving credit facility. The revolving credit agreement includes a covenant that we maintain a minimum shareholders’ equity of at least $24.6 billion, excluding accumulated other comprehensive earnings / (losses) and the cumulative effects of any changes in accounting principles. At June 30, 2015, we complied with the covenant as our shareholders’ equity as defined by the covenant was $33.3 billion. The revolving credit facility agreement also contains customary representations, covenants and events of default. As of June 30, 2015, no amounts were drawn on the facility. We also 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 June 30, 2015, we complied with the covenant as our shareholders’ equity as defined by the covenant was $33.3 billion. The revolving credit facility agreement also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. As of June 30, 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 June 30, 2015 and $2.1 billion at December 31, 2014. Borrowings on these lines amounted to $272 million at June 30, 2015 and $204 million at December 31, 2014. Long-Term Debt: On June 11, 2015, € On March 30, 2015, we issued fr • fr • fr • fr 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, € 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 six months ended June 30, 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 € • € • € • € • £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 June 30, 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 June 30, 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 June 30, 2015, the aggregate fair value of our total debt was $19,858 million and its carrying value was $19,337 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 For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Interest expense, debt $ 147 $ 192 $ 322 $ 394 Loss on debt extinguishment and related expenses – 1 713 495 Net loss / (gain) on coffee business divestiture currency hedges 144 (7 ) (407 ) (7 ) Loss related to interest rate swaps – – 34 – Other expense, net 23 38 38 62 Total interest and other expense, net $ 314 $ 224 $ 700 $ 944 See Note 2, Divestitures and Acquisitions, Financial Instruments, Financial Instruments |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 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 June 30, 2015 As of December 31, 2014 Asset Liability Asset Liability (in millions) Derivatives designated as Currency exchange contracts $ 25 $ 26 $ 69 $ 17 Commodity contracts 43 85 12 33 Interest rate contracts 19 8 13 42 $ 87 $ 119 $ 94 $ 92 Derivatives not designated as Currency exchange contracts $ 66 $ 247 $ 735 $ 24 Commodity contracts 107 72 90 194 Interest rate contracts 51 33 59 39 $ 224 $ 352 $ 884 $ 257 Total fair value $ 311 $ 471 $ 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 June 30, 2015 Total Quoted Prices in (Level 1) Significant Significant (Level 3) (in millions) Currency exchange contracts $ (182 ) $ – $ (182 ) $ – Commodity contracts (7 ) (10 ) 3 – Interest rate contracts 29 – 29 – Total derivatives $ (160 ) $ (10 ) $ (150 ) $ – As of December 31, 2014 Total Quoted Prices in (Level 1) Significant Significant (Level 3) (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 $57 million as of June 30, 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 $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 $48 million as of June 30, 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 $53 million as of June 30, 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 $73 million as of June 30, 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 June 30, As of December 31, 2015 2014 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 5,680 $ 3,640 Forecasted transactions 7,762 6,681 Commodity contracts 2,903 1,569 Interest rate contracts 3,078 3,970 Net investment hedge – euro notes 4,459 3,932 Net investment hedge – pound sterling notes 1,257 545 Net investment hedge – Swiss franc notes 722 – Cash Flow Hedges: Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings / (losses) included: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Accumulated gain / (loss) at beginning of period $ (46 ) $ 82 $ (2 ) $ 117 Transfer of realized losses / (gains) in fair value (36 ) (2 ) (54 ) (3 ) Unrealized gain / (loss) in fair value 29 (36 ) 3 (70 ) Accumulated gain / (loss) at end of period $ (53 ) $ 44 $ (53 ) $ 44 After-tax gains / (losses) reclassified from accumulated other comprehensive earnings / (losses) into net earnings were: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Currency exchange contracts – forecasted transactions $ 38 $ (2 ) $ 84 $ (4 ) Commodity contracts (2 ) 4 (4 ) 9 Interest rate contracts – – (26 ) (2 ) Total $ 36 $ 2 $ 54 $ 3 After-tax gains / (losses) recognized in other comprehensive earnings / (losses) were: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Currency exchange contracts – forecasted transactions $ (24 ) $ 5 $ 25 $ 7 Commodity contracts 15 (8 ) (23 ) 3 Interest rate contracts 38 (33 ) 1 (80 ) Total $ 29 $ (36 ) $ 3 $ (70 ) 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 second quarter of 2015 and the prior-year periods, 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 $37 million (net of taxes) for commodity cash flow hedges, unrealized losses of $7 million (net of taxes) for currency cash flow hedges and unrealized losses of less than $1 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. Hedge Coverage: As of June 30, 2015, we hedged transactions forecasted to impact cash flows over the following periods: • commodity transactions for periods not exceeding the next 18 months; • interest rate transactions for periods not exceeding the next 30 years and 8 months; and • currency exchange transactions for periods not exceeding the next 18 months. Fair Value Hedges: Pre-tax gains / (losses) due to changes in fair value of our interest rate swaps and related hedged long-term debt were recorded in interest and other expense, net: For the Three Months Ended For the Six Months Ended 2015 2014 2015 2014 (in millions) Derivatives $ – $ 14 $ 4 $ 14 Borrowings – (14 ) (4 ) (14 ) 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 For the Six Months Ended Gain / (Loss) June 30, June 30, Recognized 2015 2014 2015 2014 in Earnings (in millions) Currency exchange contracts: Intercompany loans and forecasted $ 7 $ 3 $ 14 $ 1 Interest and other expense, net Forecasted transactions (7 ) (30 ) (10 ) (40 ) Cost of sales Forecasted transactions (152 ) (9 ) 401 (14 ) Interest and other expense, net Forecasted transactions (5 ) (2 ) (16 ) (3 ) Selling, general and administrative expenses Interest rate contracts (1 ) 1 – 1 Interest and other expense, net Commodity contracts (18 ) (6 ) (59 ) 32 Cost of sales Total $ (176 ) $ (43 ) $ 330 $ (23 ) In connection with the coffee business transactions, we entered into euro to U.S. dollar currency exchange forward contracts to hedge an expected cash receipt of approximately € € Divestitures and Acquisitions—Divestiture of Coffee Business 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 For the Six Months Ended Location of Gain / (Loss) Recognized in 2015 2014 2015 2014 (in millions) Euro notes $ (118 ) $ 5 $ 196 $ – Currency Pound sterling notes (45 ) (19 ) (13 ) (23 ) Translation Swiss franc notes (17 ) – (30 ) – Adjustment |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Benefit Plans | Note 9. Benefit Plans Pension Plans Prior to the divestiture of our global coffee business, certain active employees who transitioned to JDE participated in our Non-U.S. pension plans. Following the divestiture, benefits will be provided directly by JDE to participants continuing with JDE. JDE assumed certain pension plan obligations and received the related plan assets. As of June 30, 2015, these amounts were reported as held for sale and included the net benefit plan liabilities of $179 million and the related deferred tax assets of $29 million. Refer to Note 2, Divestitures and Acquisitions – Divestiture of Coffee Business 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 June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Service cost $ 15 $ 13 $ 51 $ 45 Interest cost 17 16 77 100 Expected return on plan assets (24 ) (20 ) (119 ) (125 ) Amortization: Net loss from experience differences 10 7 38 27 Prior service cost (1) 1 1 16 1 Settlement losses (2) 10 4 – 5 Net periodic pension cost $ 29 $ 21 $ 63 $ 53 U.S. Plans Non-U.S. Plans For the Six Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 (in millions) Service cost $ 32 $ 28 $ 101 $ 89 Interest cost 34 33 154 197 Expected return on plan assets (47 ) (40 ) (238 ) (248 ) Amortization: Net loss from experience differences 22 15 77 54 Prior service cost (1) 1 1 16 1 Settlement losses (2) 13 6 – 10 Net periodic pension cost $ 55 $ 43 $ 110 $ 103 (1) For the three and six months ended June 30, 2015, amortization of prior service cost includes $17 million of pension curtailment losses related to employees who transitioned to JDE upon the divestiture of our global coffee business. Refer to Note 2, Divestitures and Acquisitions – Divestiture of Coffee Business (2) For the three and six months ended June 30, 2015, settlement losses include $6 million of pension settlement losses for employees who elected lump-sum payments in connection with our 2014-2018 Restructuring Program. See Note 6, Restructuring Programs 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 six months ended June 30, 2015, we contributed $207 million to our U.S. plans and $164 million to our non-U.S. plans. Based on current tax law, we plan to make further contributions of approximately $3 million to our U.S. plans and approximately $154 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 For the Six Months Ended 2015 2014 2015 2014 (in millions) Service cost $ 3 $ 3 $ 7 $ 6 Interest cost 6 6 12 11 Amortization: Net loss from experience differences 4 1 7 3 Prior service credit (2 ) (2 ) (4 ) (5 ) Net postretirement health care costs $ 11 $ 8 $ 22 $ 15 Postemployment Benefit Plans Net postemployment costs consisted of the following: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Service cost $ 1 $ 2 $ 3 $ 4 Interest cost 2 1 3 3 Net postemployment costs $ 3 $ 3 $ 6 $ 7 |
Stock Plans
Stock Plans | 6 Months Ended |
Jun. 30, 2015 | |
Stock Plans | Note 10. Stock Plans Stock Options: Stock option activity consisted of the following: Shares Subject Weighted-Average Grant Price Per Share Aggregate Balance at January 1, 2015 56,431,551 $ 24.19 $ 685 million Annual grants to eligible employees 8,899,530 36.94 Additional options granted 868,730 35.59 Total options granted 9,768,260 36.82 Options exercised (4,439,379 ) 22.90 $ 65 million Options cancelled (1,167,068 ) 31.72 Balance at June 30, 2015 60,593,364 26.18 $ 906 million Restricted Stock, Deferred Stock Units and Performance Share Units: Restricted stock, deferred stock unit and performance share unit activity consisted of the following: Number of Grant Date Weighted-Average Weighted-Average Balance at January 1, 2015 10,582,640 $ 28.56 Annual grants to eligible employees: Performance share units 1,598,290 Feb. 18, 2015 36.94 Restricted stock 386,910 Feb. 18, 2015 36.94 Deferred stock units 866,640 Feb. 18, 2015 36.94 Additional shares granted (1) 775,579 Various 37.06 Total shares granted 3,627,419 36.97 $ 134 million Vested (3,286,055 ) 36.97 $ 121 million Forfeited (737,151 ) 31.81 Balance at June 30, 2015 10,186,853 28.61 (1) Includes performance share units, restricted stock and deferred stock units. 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 six months ended June 30, 2015, we repurchased 58.2 million shares of Common Stock at an average cost of $37.17 per share, or an aggregate cost of $2.2 billion, of which $2.1 billion was paid during the period. All share repurchases were funded through available cash and commercial paper issuances. As of June 30, 2015, we had $0.9 billion in remaining share repurchase capacity. On July 29, 2015, our Finance Committee, with authorization delegated from our Board of Directors, approved an increase of $6.0 billion in the share repurchase plan, raising the authorization to $13.7 billion of Common Stock repurchases, and extended the program through December 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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 $59 million U.S. dollars as of June 30, 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 $92 million U.S. dollars as of June 30, 2015). We have appealed 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 $16 million U.S. dollars as of June 30, 2015) of unpaid excise taxes as well as penalties of up to 1.0 billion Indian rupees (approximately $16 million U.S. dollars as of June 30, 2015) and 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, Inc. (“Kraft”) that it was investigating activities related to the trading of December 2011 wheat futures contracts that occurred prior to the Spin-Off of Kraft. We cooperated with the staff in its investigation. On April 1, 2015, the CFTC filed a complaint against Kraft and Mondelēz Global LLC (“Mondelēz Global”) in the U.S. District Court for the Northern District of Illinois, Eastern Division (the “CFTC action”). The complaint alleges that Kraft and Mondelēz Global (1) manipulated or attempted to manipulate the wheat markets during the fall of 2011; (2) violated position limit levels for wheat futures and (3) engaged in non-competitive trades by trading both sides of exchange-for-physical Chicago Board of Trade wheat contracts. The CFTC seeks civil monetary penalties of either triple the monetary gain for each violation of the Commodity Exchange Act (the “Act”) or $1 million for each violation of Section 6(c)(1), 6(c)(3) or 9(a)(2) of the Act and $140,000 for each additional violation of the Act, plus post-judgment interest; an order of permanent injunction prohibiting Kraft and Mondelēz Global from violating specified provisions of the Act; disgorgement of profits; and costs and fees. On June 1, 2015, Mondelēz Global and Kraft filed a motion to dismiss the CFTC’s claims of market manipulation and attempted manipulation. Additionally, several class action complaints were filed against Kraft and Mondelēz Global in the U.S. District Court for the Northern District of Illinois by investors in wheat futures and options on behalf of themselves and others similarly situated. The complaints make similar allegations as those made in the CFTC action and seek class action certification; an unspecified amount for damages, interest and unjust enrichment; costs and fees; and injunctive, declaratory, and other unspecified relief. On June 4, 2015, these suits were consolidated in the Northern District of Illinois. It is not possible to predict the outcome of these matters; however, based on our Separation and Distribution Agreement with Kraft 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 June 30, 2015, we had no material third-party guarantees recorded on our consolidated balance sheet. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 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 (in millions) Balances at January 1, 2014 $ (1,414 ) $ (1,592 ) $ 117 $ (2,889 ) Other comprehensive earnings / (losses), before reclassifications: Currency translation adjustment (1) 167 (6 ) – 161 Pension and other benefits – – – – Derivatives accounted for as hedges (20 ) – (112 ) (132 ) Losses / (gains) reclassified into – 85 (4 ) 81 Tax (expense) / benefit (3 ) (21 ) 43 19 Total other comprehensive 129 Balances at June 30, 2014 $ (1,270 ) $ (1,534 ) $ 44 $ (2,760 ) Balances at January 1, 2015 $ (5,042 ) $ (2,274 ) $ (2 ) $ (7,318 ) Other comprehensive earnings / (losses), before reclassifications: Currency translation adjustment (1) (1,600 ) 51 – (1,549 ) Pension and other benefits – (28 ) – (28 ) Derivatives accounted for as hedges 241 – 10 251 Losses / (gains) reclassified into – 132 (48 ) 84 Tax (expense) / benefit (88 ) (31 ) (13 ) (132 ) Total other comprehensive (1,374 ) Balances at June 30, 2015 $ (6,489 ) $ (2,150 ) $ (53 ) $ (8,692 ) (1) The condensed consolidated statement of other comprehensive earnings includes currency translation adjustment attributable to noncontrolling interests of $(16) million for the six months ended June 30, 2015 and $(1) million for the six months ended June 30, 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 For the Six Months Ended Location of Gain / (Loss) Recognized in Net Earnings June 30, June 30, 2015 2014 2015 2014 (in millions) Pension and other benefits: Reclassification of losses / (gains) into net earnings: Amortization of experience losses and prior service costs (1) $ 67 $ 35 $ 119 $ 69 Settlement losses (1) 10 9 13 16 Tax impact (23 ) (8 ) (36 ) (21 ) Provision for income taxes Derivatives accounted for as hedges: Reclassification of losses / (gains) into net earnings: Currency exchange contracts – forecasted transactions (42 ) 2 (92 ) 4 Cost of sales Commodity contracts (2 ) (4 ) 3 (11 ) Cost of sales Interest rate contracts – – 41 3 Interest and other Tax impact 3 1 (10 ) 1 Provision for income taxes Total reclassifications into net earnings, net of tax $ 13 $ 35 $ 38 $ 61 (1) These items are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 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 $4 million for the three months and $11 million for the six months ended June 30, 2015. During 2014, we recorded immaterial out-of-period adjustments of $5 million for the three and six months ended June 30, 2014. 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 19.0%, reflecting favorable impacts from the mix of pre-tax income in various non-U.S. tax jurisdictions. Our 2015 second quarter effective tax rate of 19.0% included net tax expense from $8 million of discrete one-time events. The discrete net tax expense primarily consisted of $22 million related to the sale of our interest in AGF, partially offset by $11 million related to favorable audit settlements and expirations of statutes of limitations in several jurisdictions. Our effective tax rate for the six months ended June 30, 2015 of 22.4% was unfavorably impacted by net tax expense from $33 million of discrete one-time events. The discrete net tax expense primarily consisted of $54 million of tax charges related to the sale of our interest in AGF ($32 million in the first quarter upon the investment’s change to held-for-sale status and an additional $22 million upon the closing of the sale in the second quarter), partially offset by $33 million from favorable audit settlements and expirations of statutes of limitations in several jurisdictions. As of the second quarter of 2014, our estimated annual effective tax rate for 2014 was 19.6%, 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 second quarter effective tax rate of 12.4% was favorably impacted by net tax benefits from $52 million of discrete one-time events, of which $37 million related to tax return to provision adjustments and $9 million related to favorable tax audit settlements and expirations of statutes of limitations in several jurisdictions. Our effective tax rate for the six months ended June 30, 2014 of 7.5% was due to 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 $104 million, $60 million related to favorable tax audit settlements and expirations of statutes of limitations in several jurisdictions and $37 million related to tax return to provision adjustments. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 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 For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions, except per share data) Net earnings $ 427 $ 642 $ 739 $ 792 Noncontrolling interest 21 20 9 7 Net earnings attributable to $ 406 $ 622 $ 730 $ 785 Weighted-average shares for basic EPS 1,625 1,694 1,637 1,699 Plus incremental shares from assumed conversions of stock options and 18 18 17 18 Weighted-average shares for diluted EPS 1,643 1,712 1,654 1,717 Basic earnings per share attributable to Mondelēz International $ 0.25 $ 0.37 $ 0.45 $ 0.46 Diluted earnings per share attributable to Mondelēz International $ 0.25 $ 0.36 $ 0.44 $ 0.46 We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We excluded 12.6 million antidilutive stock options for the three months and 13.2 million antidilutive stock options for the six months ended June 30, 2015 and we excluded 9.9 million antidilutive stock options for the three months and 7.3 million antidilutive stock options for the six months ended June 30, 2014. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 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 • 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. 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. We reclassified corporate stock-based compensation expense out of the North America segment of $4 million during the three months and $15 million during the six months ended June 30, 2015. 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 For the Six Months Ended 2015 2014 2015 2014 (in millions) Net revenues: Latin America $ 1,240 $ 1,242 $ 2,497 $ 2,598 Asia Pacific 1,024 1,084 2,177 2,307 EEMEA 869 1,008 1,564 1,846 Europe 2,815 3,379 5,790 6,936 North America 1,713 1,723 3,395 3,390 Net revenues $ 7,661 $ 8,436 $ 15,423 $ 17,077 For the Three Months Ended For the Six Months Ended 2015 2014 2015 2014 (in millions) Earnings before income taxes: Operating income: Latin America $ 134 $ 140 $ 288 $ 184 Asia Pacific 104 111 250 299 EEMEA 100 146 132 210 Europe 261 463 587 926 North America 261 269 542 472 Unrealized gains / (losses) on 86 (54 ) 79 (47 ) General corporate expenses (71 ) (63 ) (145 ) (135 ) Amortization of intangibles (46 ) (55 ) (92 ) (109 ) Gain on divestiture 13 – 13 – Acquisition-related costs (1 ) – (2 ) – Operating income 841 957 1,652 1,800 Interest and other expense, net (314 ) (224 ) (700 ) (944 ) Earnings before income taxes $ 527 $ 733 $ 952 $ 856 Items impacting our segment operating results are discussed in Note 1, Basis of Presentation, Divestitures and Acquisitions, Restructuring Programs Debt Financial Instruments, Net revenues by product category were: For the Three Months Ended June 30, 2015 Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 407 $ 268 $ 147 $ 642 $ 1,400 $ 2,864 Chocolate 202 302 196 890 41 1,631 Gum & Candy 295 188 166 198 272 1,119 Beverages (1) 178 133 272 776 – 1,359 Cheese & Grocery 158 133 88 309 – 688 Total net revenues $ 1,240 $ 1,024 $ 869 $ 2,815 $ 1,713 $ 7,661 For the Three Months Ended June 30, 2014 (2) Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 333 $ 273 $ 171 $ 794 $ 1,398 $ 2,969 Chocolate 256 329 221 1,114 50 1,970 Gum & Candy 293 188 200 238 275 1,194 Beverages (1) 197 137 327 848 – 1,509 Cheese & Grocery 163 157 89 385 – 794 Total net revenues $ 1,242 $ 1,084 $ 1,008 $ 3,379 $ 1,723 $ 8,436 For the Six Months Ended June 30, 2015 Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 716 $ 584 $ 271 $ 1,236 $ 2,758 $ 5,565 Chocolate 496 704 395 2,118 97 3,810 Gum & Candy 590 379 284 381 540 2,174 Beverages (1) 392 248 457 1,450 – 2,547 Cheese & Grocery 303 262 157 605 – 1,327 Total net revenues $ 2,497 $ 2,177 $ 1,564 $ 5,790 $ 3,395 $ 15,423 For the Six Months Ended June 30, 2014 (2) Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 660 $ 604 $ 318 $ 1,516 $ 2,739 $ 5,837 Chocolate 580 747 464 2,590 113 4,494 Gum & Candy 579 394 347 461 538 2,319 Beverages (1) 452 259 555 1,625 – 2,891 Cheese & Grocery 327 303 162 744 – 1,536 Total net revenues $ 2,598 $ 2,307 $ 1,846 $ 6,936 $ 3,390 $ 17,077 (1) On July 2, 2015, we divested our global coffee businesses from our Europe, EEMEA and Asia Pacific segment beverage categories. Refer to Note 2, Divestitures and Acquisitions – Divestiture of Coffee Business (2) 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) | 6 Months Ended |
Jun. 30, 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 |
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 six months ended June 30, 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. 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 June 30, 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 June 30, 2015, the SIMADI exchange rate was 197.30 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 and expect to utilize 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 and six months ended June 30, 2015 (measured at the SICAD rate), and cash, net monetary assets and net assets of our Venezuelan subsidiaries as of June 30, 2015 (translated at a SICAD rate of 12.00 bolivars to the U.S. dollar): Venezuela operations Three Months Ended June 30, 2015 Net revenues $300 million or 3.9% of consolidated net revenues Six Months Ended June 30, 2015 Net revenues $519 million or 3.4% of consolidated net revenues As of June 30, 2015 Cash $388 million Net monetary assets $312 million Net assets $564 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. Russia. Other Countries. |
New Accounting Pronouncements | New Accounting Pronouncements: In May 2015, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that applies to reporting entities who elect to measure the fair value of an investment using the net asset value (“NAV”) per share (or its equivalent) practical expedient. This ASU removes the requirement to include investments measured using the practical expedient within fair value hierarchy disclosures. Also, practical expedient disclosures previously required for all eligible investments are now only required for investments for which the practical expedient has been elected. The update is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. As we measure certain defined benefit plan assets using the NAV practical expedient, we plan to adopt the new standard on or by the January 1, 2016 effective date. The new standard will impact our disclosures as discussed above but is not otherwise expected to have an impact on our consolidated financial statements. In April 2015, the FASB issued an 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 15, 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 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. 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 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. In May 2015, the FASB proposed changes to the new guidance in the areas of licenses and identifying performance obligations. In July 2015, the FASB approved a deferral of the effective date by one year to annual reporting periods beginning after December 15, 2017. Early adoption is permitted as of the original effective date which was for annual reporting periods beginning after December 15, 2016. The ASU may be applied retrospectively to historical periods presented or as a cumulative-effect adjustment as of the date of adoption. We continue to assess the impact of the new standard on our consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2015 (measured at the SICAD rate), and cash, net monetary assets and net assets of our Venezuelan subsidiaries as of June 30, 2015 (translated at a SICAD rate of 12.00 bolivars to the U.S. dollar): Venezuela operations Three Months Ended June 30, 2015 Net revenues $300 million or 3.9% of consolidated net revenues Six Months Ended June 30, 2015 Net revenues $519 million or 3.4% of consolidated net revenues As of June 30, 2015 Cash $388 million Net monetary assets $312 million Net assets $564 million |
Divestitures and Acquisitions (
Divestitures and Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Pre-tax Earnings and Major Classes of Assets and Liablities | Our coffee business results are reflected in our consolidated financial statements through June 30, 2015. The pre-tax earnings of the coffee businesses were: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Earnings before income taxes $ 212 $ 151 $ 342 $ 310 The major classes of the held for sale assets and liabilities consist of: As of June 30, 2015 (in millions) Assets Cash and cash equivalents $ 442 Trade receivables 471 Other receivables 26 Inventories, net 473 Deferred income taxes 5 Other current assets 42 Current assets held for sale 1,459 Property, plant and equipment, net 755 Goodwill 1,672 Intangible assets, net – Other assets 12 Noncurrent assets held for sale 2,439 Total assets held for sale $ 3,898 Liabilities Accounts payable $ 439 Accrued marketing 292 Accrued employment costs 29 Other current liabilities 63 Current liabilities held for sale 823 Deferred income taxes 28 Accrued pension costs 179 Other liabilities 4 Noncurrent liabilities held for sale 211 Total liabilities held for sale $ 1,034 Net assets held for sale $ 2,864 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Components of Inventories | Inventories consisted of the following: As of June 30, As of December 31, 2015 2014 (in millions) Raw materials $ 1,008 $ 1,122 Finished product 1,992 2,358 Inventories, net $ 3,000 $ 3,480 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of June 30, As of December 31, 2015 2014 (in millions) Land and land improvements $ 520 $ 574 Buildings and building improvements 2,743 3,117 Machinery and equipment 10,143 11,737 Construction in progress 1,478 1,484 14,884 16,912 Accumulated depreciation (6,156 ) (7,085 ) Property, plant and equipment, net $ 8,728 $ 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 For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Latin America $ 21 $ – $ 34 $ – Asia Pacific 9 – 28 – EEMEA 2 1 2 1 Europe 12 – 37 1 North America 13 13 34 24 Total non-cash asset write-downs $ 57 $ 14 $ 135 $ 26 |
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 (in millions) For the Three Months Ended Restructuring Costs $ 32 $ 18 $ 11 $ 48 $ 19 $ 7 $ 135 Implementation Costs 14 7 3 6 13 4 47 Total $ 46 $ 25 $ 14 $ 54 $ 32 $ 11 $ 182 For the Six Months Ended Restructuring Costs $ 47 $ 45 $ 14 $ 157 $ 28 $ 6 $ 297 Implementation Costs 23 9 6 26 24 21 109 Total $ 70 $ 54 $ 20 $ 183 $ 52 $ 27 $ 406 For the Three and Six Months Restructuring Costs $ 1 $ – $ – $ – $ – $ – $ 1 Implementation Costs 1 – – – – 8 9 Total $ 2 $ – $ – $ – $ – $ 8 $ 10 Total Project 2014-2015 (2) Restructuring Costs $ 128 $ 61 $ 33 $ 248 $ 85 $ 16 $ 571 Implementation Costs 39 18 10 63 29 57 216 Total $ 167 $ 79 $ 43 $ 311 $ 114 $ 73 $ 787 (1) Includes adjustment for rounding. (2) Includes all charges recorded since program inception on May 6, 2014 through June 30, 2015. |
2012-2014 Restructuring Program | |
Schedule of Restructuring and Implementation Costs | During the three and six months ended June 30, 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 (in millions) For the Three Months Ended Restructuring Costs $ 3 $ 1 $ 8 $ 26 $ 16 $ – $ 54 Implementation Costs 1 – 1 13 6 (2 ) 19 Total $ 4 $ 1 $ 9 $ 39 $ 22 $ (2 ) $ 73 For the Six Months Ended Restructuring Costs $ 4 $ 1 $ 12 $ 43 $ 36 $ – $ 96 Implementation Costs 1 – 2 28 13 (1 ) 43 Total $ 5 $ 1 $ 14 $ 71 $ 49 $ (1 ) $ 139 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 Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Goodwill by Reportable Segment | Goodwill by reportable segment was: As of June 30, As of December 31, 2015 2014 (in millions) Latin America $ 1,010 $ 1,127 Asia Pacific 2,189 2,395 EEMEA 1,456 1,942 Europe 7,463 8,952 North America 8,937 8,973 Goodwill $ 21,055 $ 23,389 |
Intangible Assets Disclosure | Intangible assets consisted of the following: As of June 30, As of December 31, 2015 2014 (in millions) Non-amortizable intangible assets $ 18,272 $ 18,810 Amortizable intangible assets 2,460 2,525 20,732 21,335 Accumulated amortization (1,055 ) (1,000 ) Intangible assets, net $ 19,677 $ 20,335 |
Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: Goodwill Intangible (in millions) Balance at January 1, 2015 $ 23,389 $ 21,335 Changes due to: Currency (616 ) (659 ) Held for sale due to coffee business transactions (1,672 ) – Divestiture (65 ) – Acquisition 20 58 Other (1 ) (2 ) Balance at June 30, 2015 $ 21,055 $ 20,732 Changes to goodwill and intangibles were: • Held for sale – On June 30, 2015, in connection with our July 2, 2015 contribution of our global coffee businesses to JDE, we reclassified $1,672 million of goodwill and less than $1 million of intangible assets to noncurrent assets held for sale. • Divestiture – On April 23, 2015, we completed the divestiture of our 50 percent interest in AGF, which resulted in divesting $65 million of goodwill. • Acquisition – On February 16, 2015, we acquired Enjoy Life Foods and recorded $20 million of goodwill and $58 million in identifiable intangible assets. |
Restructuring Programs (Tables)
Restructuring Programs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
2014-2018 Restructuring Program | |
Schedule of Restructuring Costs | The activity for the 2014-2018 Restructuring Program liability for the six months ended June 30, 2015 was: Severance Asset Write-downs Total (in millions) Liability balance, January 1, 2015 $ 224 $ – $ 224 Charges 163 134 297 Cash spent (105 ) – (105 ) Non-cash settlements / adjustments (6 ) (134 ) (140 ) Currency (9 ) – (9 ) Liability balance, June 30, 2015 $ 267 $ – $ 267 |
2012-2014 Restructuring Program | |
Schedule of Restructuring Costs | The activity for the 2012-2014 Restructuring Program liability for the six months ended June 30, 2015 was: Severance Asset Write-downs Total (in millions) Liability balance, January 1, 2015 $ 128 $ – $ 128 Charges (3 ) – (3 ) Cash spent (43 ) – (43 ) Non-cash settlements / adjustments 1 – 1 Currency (6 ) – (6 ) Liability balance, June 30, 2015 $ 77 $ – $ 77 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Short-Term Borrowings and Related Weighted-Average Interest Rates | Our short-term borrowings and related weighted-average interest rates consisted of: As of June 30, 2015 As of December 31, 2014 Amount Weighted- Amount Weighted- (in millions) (in millions) Commercial paper $ 4,211 0.5% $ 1,101 0.4% Bank loans 272 10.1% 204 8.8% Total short-term borrowings $ 4,483 $ 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 For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Interest expense, debt $ 147 $ 192 $ 322 $ 394 Loss on debt extinguishment and related expenses – 1 713 495 Net loss / (gain) on coffee business divestiture currency hedges 144 (7 ) (407 ) (7 ) Loss related to interest rate swaps – – 34 – Other expense, net 23 38 38 62 Total interest and other expense, net $ 314 $ 224 $ 700 $ 944 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the consolidated balance sheets as follows: As of June 30, 2015 As of December 31, 2014 Asset Liability Asset Liability (in millions) Derivatives designated as Currency exchange contracts $ 25 $ 26 $ 69 $ 17 Commodity contracts 43 85 12 33 Interest rate contracts 19 8 13 42 $ 87 $ 119 $ 94 $ 92 Derivatives not designated as Currency exchange contracts $ 66 $ 247 $ 735 $ 24 Commodity contracts 107 72 90 194 Interest rate contracts 51 33 59 39 $ 224 $ 352 $ 884 $ 257 Total fair value $ 311 $ 471 $ 978 $ 349 |
Notional Values of Derivative Instruments | The net notional values of our derivative instruments were: Notional Amount As of June 30, As of December 31, 2015 2014 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 5,680 $ 3,640 Forecasted transactions 7,762 6,681 Commodity contracts 2,903 1,569 Interest rate contracts 3,078 3,970 Net investment hedge – euro notes 4,459 3,932 Net investment hedge – pound sterling notes 1,257 545 Net investment hedge – Swiss franc notes 722 – |
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 For the Six Months Ended Location of Gain / (Loss) Recognized in 2015 2014 2015 2014 (in millions) Euro notes $ (118 ) $ 5 $ 196 $ – Currency Pound sterling notes (45 ) (19 ) (13 ) (23 ) Translation Swiss franc notes (17 ) – (30 ) – 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 June 30, 2015 Total Quoted Prices in (Level 1) Significant Significant (Level 3) (in millions) Currency exchange contracts $ (182 ) $ – $ (182 ) $ – Commodity contracts (7 ) (10 ) 3 – Interest rate contracts 29 – 29 – Total derivatives $ (160 ) $ (10 ) $ (150 ) $ – As of December 31, 2014 Total Quoted Prices in (Level 1) Significant Significant (Level 3) (in millions) Currency exchange contracts $ 763 $ – $ 763 $ – Commodity contracts (125 ) (49 ) (76 ) – Interest rate contracts (9 ) – (9 ) – Total derivatives $ 629 $ (49 ) $ 678 $ – |
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 For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Accumulated gain / (loss) at beginning of period $ (46 ) $ 82 $ (2 ) $ 117 Transfer of realized losses / (gains) in fair value (36 ) (2 ) (54 ) (3 ) Unrealized gain / (loss) in fair value 29 (36 ) 3 (70 ) Accumulated gain / (loss) at end of period $ (53 ) $ 44 $ (53 ) $ 44 |
Schedule of Effects of Derivative Instruments | After-tax gains / (losses) reclassified from accumulated other comprehensive earnings / (losses) into net earnings were: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Currency exchange contracts – forecasted transactions $ 38 $ (2 ) $ 84 $ (4 ) Commodity contracts (2 ) 4 (4 ) 9 Interest rate contracts – – (26 ) (2 ) Total $ 36 $ 2 $ 54 $ 3 After-tax gains / (losses) recognized in other comprehensive earnings / (losses) were: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Currency exchange contracts – forecasted transactions $ (24 ) $ 5 $ 25 $ 7 Commodity contracts 15 (8 ) (23 ) 3 Interest rate contracts 38 (33 ) 1 (80 ) Total $ 29 $ (36 ) $ 3 $ (70 ) |
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 For the Six Months Ended 2015 2014 2015 2014 (in millions) Derivatives $ – $ 14 $ 4 $ 14 Borrowings – (14 ) (4 ) (14 ) |
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 For the Six Months Ended Gain / (Loss) June 30, June 30, Recognized 2015 2014 2015 2014 in Earnings (in millions) Currency exchange contracts: Intercompany loans and forecasted $ 7 $ 3 $ 14 $ 1 Interest and other expense, net Forecasted transactions (7 ) (30 ) (10 ) (40 ) Cost of sales Forecasted transactions (152 ) (9 ) 401 (14 ) Interest and other expense, net Forecasted transactions (5 ) (2 ) (16 ) (3 ) Selling, general and administrative expenses Interest rate contracts (1 ) 1 – 1 Interest and other expense, net Commodity contracts (18 ) (6 ) (59 ) 32 Cost of sales Total $ (176 ) $ (43 ) $ 330 $ (23 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Postemployment Benefit Plans | |
Components of Net Costs | Net postemployment costs consisted of the following: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions) Service cost $ 1 $ 2 $ 3 $ 4 Interest cost 2 1 3 3 Net postemployment costs $ 3 $ 3 $ 6 $ 7 |
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 June 30, For the Three Months Ended June 30, 2015 2014 2015 2014 (in millions) Service cost $ 15 $ 13 $ 51 $ 45 Interest cost 17 16 77 100 Expected return on plan assets (24 ) (20 ) (119 ) (125 ) Amortization: Net loss from experience differences 10 7 38 27 Prior service cost (1) 1 1 16 1 Settlement losses (2) 10 4 – 5 Net periodic pension cost $ 29 $ 21 $ 63 $ 53 U.S. Plans Non-U.S. Plans For the Six Months Ended June 30, For the Six Months Ended June 30, 2015 2014 2015 2014 (in millions) Service cost $ 32 $ 28 $ 101 $ 89 Interest cost 34 33 154 197 Expected return on plan assets (47 ) (40 ) (238 ) (248 ) Amortization: Net loss from experience differences 22 15 77 54 Prior service cost (1) 1 1 16 1 Settlement losses (2) 13 6 – 10 Net periodic pension cost $ 55 $ 43 $ 110 $ 103 (1) For the three and six months ended June 30, 2015, amortization of prior service cost includes $17 million of pension curtailment losses related to employees who transitioned to JDE upon the divestiture of our global coffee business. Refer to Note 2, Divestitures and Acquisitions – Divestiture of Coffee Business (2) For the three and six months ended June 30, 2015, settlement losses include $6 million of pension settlement losses for employees who elected lump-sum payments in connection with our 2014-2018 Restructuring Program. See Note 6, Restructuring Programs |
Postretirement Benefit Plans | |
Components of Net Costs | Net postretirement health care costs consisted of the following: For the Three Months Ended For the Six Months Ended 2015 2014 2015 2014 (in millions) Service cost $ 3 $ 3 $ 7 $ 6 Interest cost 6 6 12 11 Amortization: Net loss from experience differences 4 1 7 3 Prior service credit (2 ) (2 ) (4 ) (5 ) Net postretirement health care costs $ 11 $ 8 $ 22 $ 15 |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stock Options Activity | Stock option activity consisted of the following: Shares Subject Weighted-Average Grant Price Per Share Aggregate Balance at January 1, 2015 56,431,551 $ 24.19 $ 685 million Annual grants to eligible employees 8,899,530 36.94 Additional options granted 868,730 35.59 Total options granted 9,768,260 36.82 Options exercised (4,439,379 ) 22.90 $ 65 million Options cancelled (1,167,068 ) 31.72 Balance at June 30, 2015 60,593,364 26.18 $ 906 million |
Restricted stock, deferred stock unit and performance share unit | |
Restricted Stock, Deferred Stock Unit and Performance Share Unit Activity | Restricted stock, deferred stock unit and performance share unit activity consisted of the following: Number of Grant Date Weighted-Average Weighted-Average Balance at January 1, 2015 10,582,640 $ 28.56 Annual grants to eligible employees: Performance share units 1,598,290 Feb. 18, 2015 36.94 Restricted stock 386,910 Feb. 18, 2015 36.94 Deferred stock units 866,640 Feb. 18, 2015 36.94 Additional shares granted (1) 775,579 Various 37.06 Total shares granted 3,627,419 36.97 $ 134 million Vested (3,286,055 ) 36.97 $ 121 million Forfeited (737,151 ) 31.81 Balance at June 30, 2015 10,186,853 28.61 (1) Includes performance share units, restricted stock and deferred stock units. |
Reclassifications from Accumu35
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 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 (in millions) Balances at January 1, 2014 $ (1,414 ) $ (1,592 ) $ 117 $ (2,889 ) Other comprehensive earnings / (losses), before reclassifications: Currency translation adjustment (1) 167 (6 ) – 161 Pension and other benefits – – – – Derivatives accounted for as hedges (20 ) – (112 ) (132 ) Losses / (gains) reclassified into – 85 (4 ) 81 Tax (expense) / benefit (3 ) (21 ) 43 19 Total other comprehensive 129 Balances at June 30, 2014 $ (1,270 ) $ (1,534 ) $ 44 $ (2,760 ) Balances at January 1, 2015 $ (5,042 ) $ (2,274 ) $ (2 ) $ (7,318 ) Other comprehensive earnings / (losses), before reclassifications: Currency translation adjustment (1) (1,600 ) 51 – (1,549 ) Pension and other benefits – (28 ) – (28 ) Derivatives accounted for as hedges 241 – 10 251 Losses / (gains) reclassified into – 132 (48 ) 84 Tax (expense) / benefit (88 ) (31 ) (13 ) (132 ) Total other comprehensive (1,374 ) Balances at June 30, 2015 $ (6,489 ) $ (2,150 ) $ (53 ) $ (8,692 ) (1) The condensed consolidated statement of other comprehensive earnings includes currency translation adjustment attributable to noncontrolling interests of $(16) million for the six months ended June 30, 2015 and $(1) million for the six months ended June 30, 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 For the Six Months Ended Location of Gain / (Loss) Recognized in Net Earnings June 30, June 30, 2015 2014 2015 2014 (in millions) Pension and other benefits: Reclassification of losses / (gains) into net earnings: Amortization of experience losses and prior service costs (1) $ 67 $ 35 $ 119 $ 69 Settlement losses (1) 10 9 13 16 Tax impact (23 ) (8 ) (36 ) (21 ) Provision for income taxes Derivatives accounted for as hedges: Reclassification of losses / (gains) into net earnings: Currency exchange contracts – forecasted transactions (42 ) 2 (92 ) 4 Cost of sales Commodity contracts (2 ) (4 ) 3 (11 ) Cost of sales Interest rate contracts – – 41 3 Interest and other Tax impact 3 1 (10 ) 1 Provision for income taxes Total reclassifications into net earnings, net of tax $ 13 $ 35 $ 38 $ 61 (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) | 6 Months Ended |
Jun. 30, 2015 | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated using the following: For the Three Months Ended For the Six Months Ended June 30, June 30, 2015 2014 2015 2014 (in millions, except per share data) Net earnings $ 427 $ 642 $ 739 $ 792 Noncontrolling interest 21 20 9 7 Net earnings attributable to $ 406 $ 622 $ 730 $ 785 Weighted-average shares for basic EPS 1,625 1,694 1,637 1,699 Plus incremental shares from assumed conversions of stock options and 18 18 17 18 Weighted-average shares for diluted EPS 1,643 1,712 1,654 1,717 Basic earnings per share attributable to Mondelēz International $ 0.25 $ 0.37 $ 0.45 $ 0.46 Diluted earnings per share attributable to Mondelēz International $ 0.25 $ 0.36 $ 0.44 $ 0.46 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Net Revenues by Segment | For the Three Months Ended For the Six Months Ended 2015 2014 2015 2014 (in millions) Net revenues: Latin America $ 1,240 $ 1,242 $ 2,497 $ 2,598 Asia Pacific 1,024 1,084 2,177 2,307 EEMEA 869 1,008 1,564 1,846 Europe 2,815 3,379 5,790 6,936 North America 1,713 1,723 3,395 3,390 Net revenues $ 7,661 $ 8,436 $ 15,423 $ 17,077 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | For the Three Months Ended For the Six Months Ended 2015 2014 2015 2014 (in millions) Earnings before income taxes: Operating income: Latin America $ 134 $ 140 $ 288 $ 184 Asia Pacific 104 111 250 299 EEMEA 100 146 132 210 Europe 261 463 587 926 North America 261 269 542 472 Unrealized gains / (losses) on 86 (54 ) 79 (47 ) General corporate expenses (71 ) (63 ) (145 ) (135 ) Amortization of intangibles (46 ) (55 ) (92 ) (109 ) Gain on divestiture 13 – 13 – Acquisition-related costs (1 ) – (2 ) – Operating income 841 957 1,652 1,800 Interest and other expense, net (314 ) (224 ) (700 ) (944 ) Earnings before income taxes $ 527 $ 733 $ 952 $ 856 |
Net Revenues by Consumer Sector | Net revenues by product category were: For the Three Months Ended June 30, 2015 Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 407 $ 268 $ 147 $ 642 $ 1,400 $ 2,864 Chocolate 202 302 196 890 41 1,631 Gum & Candy 295 188 166 198 272 1,119 Beverages (1) 178 133 272 776 – 1,359 Cheese & Grocery 158 133 88 309 – 688 Total net revenues $ 1,240 $ 1,024 $ 869 $ 2,815 $ 1,713 $ 7,661 For the Three Months Ended June 30, 2014 (2) Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 333 $ 273 $ 171 $ 794 $ 1,398 $ 2,969 Chocolate 256 329 221 1,114 50 1,970 Gum & Candy 293 188 200 238 275 1,194 Beverages (1) 197 137 327 848 – 1,509 Cheese & Grocery 163 157 89 385 – 794 Total net revenues $ 1,242 $ 1,084 $ 1,008 $ 3,379 $ 1,723 $ 8,436 For the Six Months Ended June 30, 2015 Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 716 $ 584 $ 271 $ 1,236 $ 2,758 $ 5,565 Chocolate 496 704 395 2,118 97 3,810 Gum & Candy 590 379 284 381 540 2,174 Beverages (1) 392 248 457 1,450 – 2,547 Cheese & Grocery 303 262 157 605 – 1,327 Total net revenues $ 2,497 $ 2,177 $ 1,564 $ 5,790 $ 3,395 $ 15,423 For the Six Months Ended June 30, 2014 (2) Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 660 $ 604 $ 318 $ 1,516 $ 2,739 $ 5,837 Chocolate 580 747 464 2,590 113 4,494 Gum & Candy 579 394 347 461 538 2,319 Beverages (1) 452 259 555 1,625 – 2,891 Cheese & Grocery 327 303 162 744 – 1,536 Total net revenues $ 2,598 $ 2,307 $ 1,846 $ 6,936 $ 3,390 $ 17,077 (1) On July 2, 2015, we divested our global coffee businesses from our Europe, EEMEA and Asia Pacific segment beverage categories. Refer to Note 2, Divestitures and Acquisitions – Divestiture of Coffee Business (2) 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 - Additio
Basis of Presentation - Additional Information (Detail) $ in Millions | Jan. 23, 2014 | Jun. 30, 2015USD ($)Country | Mar. 31, 2015USD ($) | Dec. 31, 2014 | Jun. 30, 2014USD ($) | [1] | Mar. 31, 2014USD ($) | Jun. 30, 2015USD ($)Country | Jun. 30, 2014USD ($) | [1] | Feb. 10, 2015 | Feb. 08, 2013 | Jan. 02, 2010 |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Change in accounting policy effect of change on net revenue | $ 39 | ||||||||||||
Change in accounting policy effect of change on operating results | 19 | ||||||||||||
Net revenue | $ 7,661 | $ 8,436 | $ 15,423 | $ 17,077 | |||||||||
Number of countries in which entity operates | Country | 80 | 80 | |||||||||||
Number of countries in which products are sold | Country | 165 | ||||||||||||
Argentina | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Net revenue | $ 185 | $ 360 | |||||||||||
Percentage of consolidated net revenues | 2.40% | 2.30% | |||||||||||
Russia | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Net revenue | $ 210 | $ 380 | |||||||||||
Percentage of consolidated net revenues | 2.70% | 2.50% | |||||||||||
SICAD I | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Foreign currency impacts relating to highly inflationary accounting | $ (142) | ||||||||||||
SICAD | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Foreign currency impacts relating to highly inflationary accounting | $ (11) | ||||||||||||
Venezuelan bolívar fuerte | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Foreign currency exchange rate translation | 6.30 | 6.30 | 6.30 | 4.30 | |||||||||
Venezuelan bolívar fuerte | SICAD I | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Foreign currency exchange rate translation | 10.70 | ||||||||||||
Venezuelan bolívar fuerte | SICAD | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Foreign currency exchange rate translation | 12 | 11.50 | 12 | ||||||||||
Venezuelan bolívar fuerte | SIMADI | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Foreign currency exchange rate translation | 197.30 | 197.30 | |||||||||||
Argentina, Pesos | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Devalued percentage against US Dollar | 15.00% | 7.00% | |||||||||||
Russia, Rubles | |||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Devalued percentage against US Dollar | 50.00% | ||||||||||||
Percentage strengthened against US Dollar | 6.00% | ||||||||||||
[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 Monetar
Net Revenues, Cash, Net Monetary and Net Assets of Company's Venezuelan Subsidiaries (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | [1] | Jun. 30, 2015 | Jun. 30, 2014 | [1] | |
Segment Information [Line Items] | ||||||
Net revenues | $ 7,661 | $ 8,436 | $ 15,423 | $ 17,077 | ||
Venezuela | ||||||
Segment Information [Line Items] | ||||||
Net revenues | $ 300 | $ 519 | ||||
Percentage of consolidated net revenues | 3.90% | 3.40% | ||||
Venezuela | SICAD | ||||||
Segment Information [Line Items] | ||||||
Cash | $ 388 | $ 388 | ||||
Net monetary assets | 312 | 312 | ||||
Net assets | $ 564 | $ 564 | ||||
[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 -
Divestitures and Acquisition - Additional Information (Detail) $ in Millions, € in Billions, ₫ in Billions, ¥ in Billions | Jul. 15, 2015USD ($) | Jul. 15, 2015VND (₫) | Jul. 06, 2015USD ($) | Jul. 02, 2015USD ($) | Jul. 02, 2015EUR (€) | Apr. 23, 2015USD ($) | Apr. 23, 2015JPY (¥) | Apr. 17, 2015USD ($) | Feb. 16, 2015USD ($) | Jul. 31, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016VND (₫) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Feb. 11, 2015USD ($) | Dec. 31, 2014USD ($) | Jul. 06, 2015USD ($) | Nov. 10, 2014USD ($) | May. 31, 2014USD ($) |
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Gain (loss) on monetization of planned coffee business divestiture currency hedges | $ 607 | ||||||||||||||||||||||
Unrealized loss on planned coffee business divestiture currency hedges | (200) | ||||||||||||||||||||||
Proceeds from planned coffee business divestiture currency hedge settlements | 1,235 | ||||||||||||||||||||||
Escrow Deposit | $ 46 | ||||||||||||||||||||||
Intangible assets acquired | $ 58 | ||||||||||||||||||||||
Goodwill, Acquisition | 20 | $ 20 | |||||||||||||||||||||
Product Concentration Risk | Net Revenues | Snacks | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Concentration risk, percentage | 85.00% | ||||||||||||||||||||||
Enjoy Life Foods | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Cash paid for acquisition | $ 81 | ||||||||||||||||||||||
Business combination, consideration transferred | $ 81 | ||||||||||||||||||||||
Intangible assets acquired | $ 58 | 58 | |||||||||||||||||||||
Other net assets acquired | 3 | 3 | |||||||||||||||||||||
Goodwill, Acquisition | 20 | ||||||||||||||||||||||
Vietnam | Scenario, Forecast | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Escrow Deposit | $ 90 | ||||||||||||||||||||||
Partial payment for the non-compete and continued consulting agreements | $ 35 | ₫ 759 | |||||||||||||||||||||
Remaining interest in biscuit operation to be acquired | 20.00% | ||||||||||||||||||||||
Selling, general and administrative expenses | Europe And EEMEA segments | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Expenses related to readying businesses for planned transactions | $ 157 | $ 5 | 185 | $ 5 | |||||||||||||||||||
Coffee Business | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Gain (loss) on monetization of planned coffee business divestiture currency hedges | (144) | $ 7 | 407 | $ 7 | |||||||||||||||||||
Goodwill held for sale | 1,672 | 1,672 | |||||||||||||||||||||
Japanese Coffee Joint Venture | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Sale of stock, percentage of ownership before transaction | 50.00% | 50.00% | |||||||||||||||||||||
Held for sale investment reclassified from long-term other assets | 99 | 99 | |||||||||||||||||||||
Pre-tax gain on divestiture of joint venture | 13 | ||||||||||||||||||||||
After-tax loss on divestiture of joint venture | 9 | ||||||||||||||||||||||
Goodwill held for sale | 65 | 65 | |||||||||||||||||||||
Divested cumulative translation losses in connection with the sale | 41 | ||||||||||||||||||||||
Proceeds from divestiture of interest | $ 225 | ¥ 27 | |||||||||||||||||||||
Amount of expenses associated with business disposal | 7 | ||||||||||||||||||||||
Foreign Exchange Forward | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Notional Amount | 1,600 | 1,600 | |||||||||||||||||||||
Foreign Exchange Forward | Interest and other expense, net | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Unrealized loss on planned coffee business divestiture currency hedges | 21 | ||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Notional Amount | $ 5,000 | ||||||||||||||||||||||
Gain (loss) on monetization of planned coffee business divestiture currency hedges | $ 296 | 56 | $ 311 | $ 939 | $ 628 | ||||||||||||||||||
Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | Interest and other expense, net | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Unrealized loss on planned coffee business divestiture currency hedges | $ 221 | $ 221 | |||||||||||||||||||||
Subsequent Event | Vietnam | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Cash paid for acquisition | $ 543 | ₫ 11,843 | |||||||||||||||||||||
Percentage of equity interest acquired | 80.00% | ||||||||||||||||||||||
Escrow Deposit | $ 44 | ||||||||||||||||||||||
Subsequent Event | Vietnam | Non-compete and Continued Consulting Agreements | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Partial payment for the non-compete and continued consulting agreements | 35 | 759 | |||||||||||||||||||||
Subsequent Event | Vietnam | Maximum | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Cash paid for acquisition | $ 418 | ₫ 9,122 | |||||||||||||||||||||
Subsequent Event | Acorn Holdings B.V. | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Percentage of equity interest acquired by other parties | 56.50% | ||||||||||||||||||||||
Subsequent Event | Coffee Business | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 4,200 | € 3.8 | |||||||||||||||||||||
Divestiture of business, receivable | 275 | ||||||||||||||||||||||
Cash received related to reimbursement of costs expected to incur or have incurred related to separating the business | $ 76 | ||||||||||||||||||||||
Subsequent Event | Foreign Exchange Forward | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Gain (loss) on monetization of planned coffee business divestiture currency hedges | $ 17 | ||||||||||||||||||||||
Subsequent Event | Jacobs Douwe Egberts | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Equity method investment, ownership percentage | 43.50% | ||||||||||||||||||||||
Subsequent Event | Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | |||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||
Gain (loss) on monetization of planned coffee business divestiture currency hedges | $ 202 | ||||||||||||||||||||||
Proceeds from planned coffee business divestiture currency hedge settlements | $ 1,000 | $ 4,200 | € 3.8 | $ 5,200 |
Pre-tax earnings of Coffee Busi
Pre-tax earnings of Coffee Businesses (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Significant Acquisitions and Disposals [Line Items] | ||||
Earnings before income taxes | $ 527 | $ 733 | $ 952 | $ 856 |
Coffee Business | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Earnings before income taxes | $ 212 | $ 151 | $ 342 | $ 310 |
Major Classes of Held for Sale
Major Classes of Held for Sale Assets and Liabilities (Detail) $ in Millions | Jun. 30, 2015USD ($) |
Assets | |
Cash and cash equivalents | $ (442) |
Other Current Assets | |
Assets | |
Assets held for sale | 1,459 |
Other Noncurrent Assets | |
Assets | |
Assets held for sale | 2,439 |
Other Current Liabilities | |
Liabilities | |
Liabilities held for sale | 823 |
Other Noncurrent Liabilities | |
Liabilities | |
Liabilities held for sale | 211 |
Coffee Business | |
Assets | |
Cash and cash equivalents | 442 |
Trade receivables | 471 |
Other receivables | 26 |
Inventories, net | 473 |
Deferred income taxes | 5 |
Other current assets | 42 |
Property, plant and equipment, net | 755 |
Goodwill | 1,672 |
Intangible assets, net | 0 |
Other assets | 12 |
Assets held for sale | 3,898 |
Liabilities | |
Accounts payable | 439 |
Accrued marketing | 292 |
Accrued employment costs | 29 |
Other current liabilities | 63 |
Deferred income taxes | 28 |
Accrued pension costs | 179 |
Other liabilities | 4 |
Liabilities held for sale | (1,034) |
Net assets held for sale | 2,864 |
Coffee Business | Other Current Assets | |
Assets | |
Assets held for sale | 1,459 |
Coffee Business | Other Noncurrent Assets | |
Assets | |
Assets held for sale | 2,439 |
Coffee Business | Other Current Liabilities | |
Liabilities | |
Liabilities held for sale | 823 |
Coffee Business | Other Noncurrent Liabilities | |
Liabilities | |
Liabilities held for sale | $ 211 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 1,008 | $ 1,122 |
Finished product | 1,992 | 2,358 |
Inventories, net | $ 3,000 | $ 3,480 |
Property, Plant and Equipment44
Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 14,884 | $ 16,912 |
Accumulated depreciation | (6,156) | (7,085) |
Property, plant and equipment, net | 8,728 | 9,827 |
Land and Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 520 | 574 |
Buildings and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,743 | 3,117 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,143 | 11,737 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,478 | $ 1,484 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | $ 138 | $ 27 | ||
2012-2014 Restructuring Program and 2014-2018 Restructuring Program | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | $ 57 | $ 14 | $ 135 | $ 26 |
Summary of Asset Impairment and
Summary of Asset Impairment and Exit Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Asset impairment charges | $ 138 | $ 27 | ||
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 | $ 57 | $ 14 | 135 | 26 |
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 | 21 | 34 | ||
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 | 9 | 28 | ||
2012-2014 Restructuring Program and 2014-2018 Restructuring Program | EEMEA Segment | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Asset impairment charges | 2 | 1 | 2 | 1 |
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 | 12 | 37 | 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 | $ 13 | $ 13 | $ 34 | $ 24 |
Goodwill by Reportable Segment
Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 21,055 | $ 23,389 |
Latin America Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 1,010 | 1,127 |
Asia Pacific Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 2,189 | 2,395 |
EEMEA Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 1,456 | 1,942 |
Europe Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 7,463 | 8,952 |
North America Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 8,937 | $ 8,973 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Intangible Assets [Line Items] | ||
Non-amortizable intangible assets | $ 18,272 | $ 18,810 |
Amortizable intangible assets | 2,460 | 2,525 |
Total intangible assets, gross | 20,732 | 21,335 |
Accumulated amortization | (1,055) | (1,000) |
Intangible assets, net | $ 19,677 | $ 20,335 |
Goodwill and Intangible Asset49
Goodwill and Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)Brand | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Amortization expense for intangible assets | $ 46 | $ 55 | $ 92 | $ 109 | |
Estimated amortization expense in year 1 | 193 | 193 | |||
Estimated amortization expense in year 2 | 193 | 193 | |||
Estimated amortization expense in year 3 | 193 | 193 | |||
Estimated amortization expense in year 4 | 193 | 193 | |||
Estimated amortization expense in year 5 | 193 | 193 | |||
Number of brands | Brand | 3 | ||||
Intangible asset, aggregate book value | $ 18,272 | $ 18,272 | $ 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 6 months |
Changes in Goodwill and Intangi
Changes in Goodwill and Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Apr. 23, 2015 | Feb. 16, 2015 | Jun. 30, 2015 |
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill beginning balance | $ 23,389 | |||
Goodwill, Currency | (616) | |||
Goodwill, Divestiture | $ (65) | (65) | ||
Goodwill, Acquisition | $ 20 | 20 | ||
Goodwill, Other | (1) | |||
Goodwill ending balance | $ 21,055 | 21,055 | ||
Intangible Assets, at Cost beginning balance | 21,335 | |||
Intangible Assets, Currency | (659) | |||
Intangible Assets, Divestiture | 0 | |||
Intangible Assets, Acquisition | 58 | |||
Intangible Assets, Other | (2) | |||
Intangible Assets, at Cost ending balance | 20,732 | 20,732 | ||
Coffee Business | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill, Held for sale due to coffee business transactions | $ (1,672) | $ (1,672) |
Changes in Goodwill and Intan51
Changes in Goodwill and Intangible Assets (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Apr. 23, 2015 | Feb. 16, 2015 | Jun. 30, 2015 |
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill, Divestiture | $ 65 | $ 65 | ||
Percentage of Divestiture | 50.00% | |||
Goodwill, Acquisition | $ 20 | 20 | ||
Acquisition | $ 58 | |||
Coffee Business | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill, Held for sale due to coffee business transactions | $ 1,672 | $ 1,672 | ||
Maximum | Coffee Business | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Intangible Assets, Held for sale due to coffee business transactions | $ 1 |
Restructuring Programs - Additi
Restructuring Programs - Additional Information (Detail) - USD ($) | May. 06, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2015 | Dec. 31, 2014 | ||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Approved restructuring program cost related to capital expenditure | $ 790,000,000 | $ 724,000,000 | ||||||||
2014-2018 Restructuring Program | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Approved restructuring program cost | $ 3,500,000,000 | |||||||||
Restructuring and related cost, cost incurred | $ 182,000,000 | $ 10,000,000 | 406,000,000 | 10,000,000 | $ 787,000,000 | [1] | ||||
Restructuring charges | 135,000,000 | 1,000,000 | 297,000,000 | 1,000,000 | 571,000,000 | [1] | ||||
Cash spent | 66,000,000 | 1,000,000 | 105,000,000 | 1,000,000 | ||||||
Non-cash asset write-downs | 62,000,000 | 140,000,000 | ||||||||
Restructuring reserve | 267,000,000 | 267,000,000 | 267,000,000 | $ 224,000,000 | ||||||
Implementation costs | 47,000,000 | 9,000,000 | 109,000,000 | 9,000,000 | 216,000,000 | [1] | ||||
2014-2018 Restructuring Program | Selling, general and administrative expenses | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Implementation costs | 47,000,000 | 9,000,000 | 109,000,000 | 9,000,000 | ||||||
2014-2018 Restructuring Program | Other Current Liabilities | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve | 237,000,000 | 237,000,000 | 237,000,000 | |||||||
2014-2018 Restructuring Program | Other Long Term Liabilities | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve | 30,000,000 | 30,000,000 | 30,000,000 | |||||||
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 | 73,000,000 | 139,000,000 | 899,000,000 | [2] | ||||||
Restructuring charges | 54,000,000 | 96,000,000 | 729,000,000 | [2] | ||||||
Cash spent | 24,000,000 | 38,000,000 | 43,000,000 | 66,000,000 | ||||||
Non-cash asset write-downs | 11,000,000 | (1,000,000) | 24,000,000 | |||||||
Restructuring reserve | 77,000,000 | 77,000,000 | 77,000,000 | 128,000,000 | ||||||
Implementation costs | 19,000,000 | 43,000,000 | 170,000,000 | [2] | ||||||
Restructuring and related activities, authorized amount | $ 1,500,000,000 | |||||||||
Restructuring and related cost, cost incurred | $ 899,000,000 | |||||||||
Reversal to restructuring charges | 1,000,000 | 3,000,000 | ||||||||
2012-2014 Restructuring Program | Selling, general and administrative expenses | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Implementation costs | $ 19,000,000 | $ 43,000,000 | ||||||||
2012-2014 Restructuring Program | Other Current Liabilities | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve | 63,000,000 | 63,000,000 | 63,000,000 | |||||||
2012-2014 Restructuring Program | Other Long Term Liabilities | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring reserve | $ 14,000,000 | $ 14,000,000 | $ 14,000,000 | |||||||
[1] | Includes all charges recorded since program inception on May 6, 2014 through June 30, 2015. | |||||||||
[2] | Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. |
Schedule of Restructuring Costs
Schedule of Restructuring Costs (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 14 Months Ended | 36 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | |||
2014-2018 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Balance at beginning of period | $ 224,000,000 | |||||||
Charges | $ 135,000,000 | $ 1,000,000 | 297,000,000 | $ 1,000,000 | $ 571,000,000 | [1] | ||
Cash spent | (66,000,000) | (1,000,000) | (105,000,000) | (1,000,000) | ||||
Non-cash settlements / adjustments | (62,000,000) | (140,000,000) | ||||||
Currency | (9,000,000) | |||||||
Balance at end of period | 267,000,000 | 267,000,000 | 267,000,000 | $ 224,000,000 | ||||
2014-2018 Restructuring Program | Severance and Related Costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Balance at beginning of period | 224,000,000 | |||||||
Charges | 163,000,000 | |||||||
Cash spent | (105,000,000) | |||||||
Non-cash settlements / adjustments | (6,000,000) | (6,000,000) | ||||||
Currency | (9,000,000) | |||||||
Balance at end of period | 267,000,000 | 267,000,000 | 267,000,000 | 224,000,000 | ||||
2014-2018 Restructuring Program | Asset Write-Downs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Charges | 134,000,000 | |||||||
Non-cash settlements / adjustments | (134,000,000) | |||||||
2012-2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Balance at beginning of period | 128,000,000 | |||||||
Charges | 54,000,000 | 96,000,000 | 729,000,000 | [2] | ||||
Reversal to restructuring charges | (1,000,000) | (3,000,000) | ||||||
Cash spent | (24,000,000) | (38,000,000) | (43,000,000) | (66,000,000) | ||||
Non-cash settlements / adjustments | $ (11,000,000) | 1,000,000 | $ (24,000,000) | |||||
Currency | (6,000,000) | |||||||
Balance at end of period | 77,000,000 | 77,000,000 | 77,000,000 | 128,000,000 | ||||
2012-2014 Restructuring Program | Severance and Related Costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Balance at beginning of period | 128,000,000 | |||||||
Reversal to restructuring charges | (3,000,000) | |||||||
Cash spent | (43,000,000) | |||||||
Non-cash settlements / adjustments | 1,000,000 | |||||||
Currency | (6,000,000) | |||||||
Balance at end of period | 77,000,000 | 77,000,000 | 77,000,000 | 128,000,000 | ||||
2012-2014 Restructuring Program | Asset Write-Downs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Balance at beginning of period | 0 | |||||||
Balance at end of period | $ 0 | $ 0 | $ 0 | $ 0 | ||||
[1] | Includes all charges recorded since program inception on May 6, 2014 through June 30, 2015. | |||||||
[2] | Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. |
Restructuring and Implementatio
Restructuring and Implementation Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 14 Months Ended | 36 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | [2] | Dec. 31, 2014 | |||
2012-2014 Restructuring Program | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | $ 54 | $ 96 | $ 729 | [1] | |||||
Implementation costs | 19 | 43 | 170 | [1] | |||||
Total | 73 | 139 | 899 | [1] | |||||
2014-2018 Restructuring Program | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | $ 135 | 1 | $ 297 | 1 | $ 571 | ||||
Implementation costs | 47 | 9 | 109 | 9 | 216 | ||||
Total | 182 | 10 | 406 | 10 | 787 | ||||
Operating Segments | 2012-2014 Restructuring Program | Latin America Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 3 | 4 | 36 | [1] | |||||
Implementation costs | 1 | 1 | 3 | [1] | |||||
Total | 4 | 5 | 39 | [1] | |||||
Operating Segments | 2012-2014 Restructuring Program | Asia Pacific Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 1 | 1 | 36 | [1] | |||||
Implementation costs | [1] | 6 | |||||||
Total | 1 | 1 | 42 | [1] | |||||
Operating Segments | 2012-2014 Restructuring Program | EEMEA Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 8 | 12 | 69 | [1] | |||||
Implementation costs | 1 | 2 | 4 | [1] | |||||
Total | 9 | 14 | 73 | [1] | |||||
Operating Segments | 2012-2014 Restructuring Program | Europe Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 26 | 43 | 249 | [1] | |||||
Implementation costs | 13 | 28 | 88 | [1] | |||||
Total | 39 | 71 | 337 | [1] | |||||
Operating Segments | 2012-2014 Restructuring Program | North America Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 16 | 36 | 337 | [1] | |||||
Implementation costs | 6 | 13 | 65 | [1] | |||||
Total | 22 | 49 | 402 | [1] | |||||
Operating Segments | 2014-2018 Restructuring Program | Latin America Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 32 | 1 | 47 | 1 | 128 | ||||
Implementation costs | 14 | 1 | 23 | 1 | 39 | ||||
Total | 46 | 2 | 70 | 2 | 167 | ||||
Operating Segments | 2014-2018 Restructuring Program | Asia Pacific Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 18 | 45 | 61 | ||||||
Implementation costs | 7 | 9 | 18 | ||||||
Total | 25 | 54 | 79 | ||||||
Operating Segments | 2014-2018 Restructuring Program | EEMEA Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 11 | 14 | 33 | ||||||
Implementation costs | 3 | 6 | 10 | ||||||
Total | 14 | 20 | 43 | ||||||
Operating Segments | 2014-2018 Restructuring Program | Europe Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 48 | 157 | 248 | ||||||
Implementation costs | 6 | 26 | 63 | ||||||
Total | 54 | 183 | 311 | ||||||
Operating Segments | 2014-2018 Restructuring Program | North America Segment | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 19 | 28 | 85 | ||||||
Implementation costs | 13 | 24 | 29 | ||||||
Total | 32 | 52 | 114 | ||||||
Corporate | 2012-2014 Restructuring Program | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | [1],[3] | 2 | |||||||
Implementation costs | [3] | (2) | (1) | 4 | [1] | ||||
Total | [3] | (2) | (1) | $ 6 | [1] | ||||
Corporate | 2014-2018 Restructuring Program | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | [3] | 7 | 6 | 16 | |||||
Implementation costs | [3] | 4 | 8 | 21 | 8 | 57 | |||
Total | [3] | $ 11 | $ 8 | $ 27 | $ 8 | $ 73 | |||
[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 June 30, 2015. | ||||||||
[3] | Includes adjustment for rounding. |
Short-Term Borrowings and Relat
Short-Term Borrowings and Related Weighted-Average Interest Rates (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Amount outstanding | $ 4,483 | $ 1,305 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Amount outstanding | $ 4,211 | $ 1,101 |
Weighted-average rate | 0.50% | 0.40% |
Bank Loans | ||
Short-term Debt [Line Items] | ||
Amount outstanding | $ 272 | $ 204 |
Weighted-average rate | 10.10% | 8.80% |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions, £ in Millions, SFr in Millions | Jun. 11, 2015USD ($) | Mar. 30, 2015USD ($) | Mar. 20, 2015USD ($) | Mar. 20, 2015EUR (€) | Mar. 06, 2015USD ($) | Jun. 30, 2015EUR (€) | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Mar. 30, 2015CHF (SFr) | Mar. 06, 2015EUR (€) | Mar. 06, 2015GBP (£) | Dec. 31, 2014USD ($) | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||||||||||||||
Revolving credit facility debt covenant | $ 24,600,000,000 | |||||||||||||
Repayment of debt | 4,539,000,000 | $ 2,516,000,000 | ||||||||||||
Debt instrument, principal amount | $ 2,800,000,000 | $ 2,800,000,000 | € 2,000 | £ 450 | ||||||||||
Net proceeds from issuance of notes | $ 675,000,000 | 2,890,000,000 | ||||||||||||
Discounts and deferred financing costs | 2,000,000 | 29,000,000 | ||||||||||||
Cash tender offer amount | $ 2,500,000,000 | |||||||||||||
Loss on extinguishment of debt | $ (708,000,000) | $ (493,000,000) | ||||||||||||
Weighted-average interest rate | 3.10% | 4.30% | 4.80% | |||||||||||
Fair value of total debt | $ 19,858,000,000 | $ 18,463,000,000 | ||||||||||||
Carrying value of total debt | 19,337,000,000 | 16,700,000,000 | ||||||||||||
6.250% Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayment of debt | € | € 850 | |||||||||||||
Debt instrument interest rate | 6.25% | |||||||||||||
International Subsidiaries | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Revolving credit facility, maximum borrowing capacity | 2,000,000,000 | 2,100,000,000 | ||||||||||||
Line of credit facility outstanding amount | 272,000,000 | $ 204,000,000 | ||||||||||||
Revolving Credit Facility, October 11, 2018 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 4,500,000,000 | |||||||||||||
Revolving credit facility expiration date | Oct. 11, 2018 | |||||||||||||
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 June 30, 2015, we complied with the covenant | |||||||||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings / (losses) | $ 33,300,000,000 | |||||||||||||
Line of credit facility outstanding amount | $ 0 | |||||||||||||
Revolving Credit Facility, July 31, 2015 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Revolving credit facility expiration date | Jul. 31, 2015 | |||||||||||||
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 June 30, 2015, we complied with the covenant | |||||||||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings / (losses) | $ 33,300,000,000 | |||||||||||||
Line of credit facility outstanding amount | $ 0 | |||||||||||||
Tender Offer | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Loss on extinguishment of debt | (708,000,000) | |||||||||||||
Tender Offer | 6.500% Notes due in August 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate | 6.50% | |||||||||||||
Debt instrument repurchased, principal amount | $ 102,000,000 | |||||||||||||
Debt instrument expiration | 2017-08 | 2017-08 | ||||||||||||
Tender Offer | 6.125% Notes due in February 2018 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate | 6.125% | |||||||||||||
Debt instrument repurchased, principal amount | $ 115,000,000 | |||||||||||||
Debt instrument expiration | 2018-02 | 2018-02 | ||||||||||||
Tender Offer | 6.125% Notes due in August 2018 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate | 6.125% | |||||||||||||
Debt instrument repurchased, principal amount | $ 80,000,000 | |||||||||||||
Debt instrument expiration | 2018-08 | 2018-08 | ||||||||||||
Tender Offer | 5.375% Notes due in February 2020 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate | 5.375% | |||||||||||||
Debt instrument repurchased, principal amount | $ 691,000,000 | |||||||||||||
Debt instrument expiration | 2020-02 | 2020-02 | ||||||||||||
Tender Offer | 6.500% Notes due in November 2031 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate | 6.50% | |||||||||||||
Debt instrument repurchased, principal amount | $ 201,000,000 | |||||||||||||
Debt instrument expiration | 2031-11 | 2031-11 | ||||||||||||
Tender Offer | 7.000% Notes due in August 2037 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate | 7.00% | |||||||||||||
Debt instrument repurchased, principal amount | $ 26,000,000 | |||||||||||||
Debt instrument expiration | 2037-08 | 2037-08 | ||||||||||||
Tender Offer | 6.875% Notes due in February 2038 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate | 6.875% | |||||||||||||
Debt instrument repurchased, principal amount | $ 71,000,000 | |||||||||||||
Debt instrument expiration | 2038-02 | 2038-02 | ||||||||||||
Tender Offer | 6.875% Notes due in 2039 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate | 6.875% | |||||||||||||
Debt instrument repurchased, principal amount | $ 69,000,000 | |||||||||||||
Debt instrument expiration | 2039-01 | 2039-01 | ||||||||||||
Tender Offer | 6.500% Notes due in February 2040 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument interest rate | 6.50% | |||||||||||||
Debt instrument repurchased, principal amount | $ 1,143,000,000 | |||||||||||||
Debt instrument expiration | 2040-02 | 2040-02 | ||||||||||||
Tender Offer | Cash Flow Hedges | Interest rate contracts | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest expense | $ 5,000,000 | |||||||||||||
Euro Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayment of debt | € | € 400 | |||||||||||||
Franc Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, principal amount | $ 694,000,000 | SFr 675 | ||||||||||||
0.000% Fixed Rate Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, principal amount | $ 180,000,000 | SFr 175 | ||||||||||||
Debt instrument, fixed interest rate | 0.00% | 0.00% | ||||||||||||
Deb instrument maturity Year | Mar. 30, 2017 | |||||||||||||
0.625% Fixed Rate Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, principal amount | $ 308,000,000 | SFr 300 | ||||||||||||
Debt instrument, fixed interest rate | 0.625% | 0.625% | ||||||||||||
Deb instrument maturity Year | Dec. 30, 2021 | |||||||||||||
1.125% Fixed Rate Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, principal amount | $ 206,000,000 | SFr 200 | ||||||||||||
Debt instrument, fixed interest rate | 1.125% | 1.125% | ||||||||||||
Deb instrument maturity Year | Dec. 30, 2025 | |||||||||||||
1.000% Fixed rate notes, due March 7, 2022 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, principal amount | $ 537,000,000 | € 500 | ||||||||||||
Debt instrument, fixed interest rate | 1.00% | 1.00% | 1.00% | |||||||||||
Deb instrument maturity Year | Mar. 7, 2022 | |||||||||||||
1.625% Fixed rate notes due , March 8, 2027 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, principal amount | $ 805,000,000 | € 750 | ||||||||||||
Debt instrument, fixed interest rate | 1.625% | 1.625% | 1.625% | |||||||||||
Deb instrument maturity Year | Mar. 8, 2027 | |||||||||||||
2.375% Fixed rate notes, due March 6, 2035 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, principal amount | $ 805,000,000 | € 750 | ||||||||||||
Debt instrument, fixed interest rate | 2.375% | 2.375% | 2.375% | |||||||||||
Deb instrument maturity Year | Mar. 6, 2035 | |||||||||||||
3.875% Fixed rate notes, due March 6, 2045 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, principal amount | $ 667,000,000 | € 450 | ||||||||||||
Debt instrument, fixed interest rate | 3.875% | 3.875% | 3.875% | |||||||||||
Deb instrument maturity Year | Mar. 6, 2045 | |||||||||||||
Commercial Paper | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Commercial paper, Maturity period | 1 day | |||||||||||||
Commercial Paper | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Commercial paper, Maturity period | 90 days | |||||||||||||
Senior Unsecured Short-term Debt | Revolving Credit Facility, July 31, 2015 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 500,000,000 |
Interest and Other Expense Net
Interest and Other Expense Net Within Results of Continuing Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Interest expense, debt | $ 147 | $ 192 | $ 322 | $ 394 |
Loss on debt extinguishment and related expenses | 1 | 713 | 495 | |
Net loss / (gain) on coffee business divestiture currency hedges | (607) | |||
Loss related to interest rate swaps | 34 | |||
Other expense, net | 23 | 38 | 38 | 62 |
Total interest and other expense, net | 314 | 224 | 700 | 944 |
Coffee Business | ||||
Debt Instrument [Line Items] | ||||
Net loss / (gain) on coffee business divestiture currency hedges | $ 144 | $ (7) | $ (407) | $ (7) |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 311 | $ 978 |
Liability Derivatives | 471 | 349 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 87 | 94 |
Liability Derivatives | 119 | 92 |
Derivatives Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 25 | 69 |
Liability Derivatives | 26 | 17 |
Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 43 | 12 |
Liability Derivatives | 85 | 33 |
Derivatives Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 19 | 13 |
Liability Derivatives | 8 | 42 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 224 | 884 |
Liability Derivatives | 352 | 257 |
Derivatives Not Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 66 | 735 |
Liability Derivatives | 247 | 24 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 107 | 90 |
Liability Derivatives | 72 | 194 |
Derivatives Not Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 51 | 59 |
Liability Derivatives | $ 33 | $ 39 |
Derivative Instruments Fair Val
Derivative Instruments Fair Value and Measurement Inputs (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ (160) | $ 629 |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (182) | 763 |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (7) | (125) |
Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 29 | (9) |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (10) | (49) |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (10) | (49) |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (150) | 678 |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (182) | 763 |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 3 | (76) |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ 29 | $ (9) |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Millions, € in Billions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015EUR (€) | Dec. 31, 2014USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Loss related to interest rate swaps | $ (34) | ||||
Unrealized gains (losses) recorded in earnings related to planned coffee business transactions | $ (200) | ||||
Interest rate contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Hedged forecasted transactions | 30 years 8 months | ||||
Notional Amount | $ 3,078 | $ 3,078 | $ 3,970 | ||
Interest rate contracts | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Loss related to interest rate swaps | $ (34) | ||||
Interest rate contracts | Cash Flow Hedges | Maximum | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Expected transfers of unrealized gains (losses) to earnings, within next 12 months | $ (1) | ||||
Commodity contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Hedged forecasted transactions | 18 months | ||||
Notional Amount | 2,903 | $ 2,903 | 1,569 | ||
Commodity contracts | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Expected transfers of unrealized gains (losses) to earnings, within next 12 months | $ (37) | ||||
Currency exchange contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Hedged forecasted transactions | 18 months | ||||
Currency exchange contracts | Cash Flow Hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Expected transfers of unrealized gains (losses) to earnings, within next 12 months | $ (7) | ||||
Foreign Exchange Forward | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional Amount | 1,600 | 1,600 | |||
Foreign Exchange Forward | Interest and other expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gains (losses) recorded in earnings related to planned coffee business transactions | 21 | ||||
Foreign Exchange Forward | Economic Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Expected cash receipt related to planned coffee business transactions, amount hedged | € | € 4 | ||||
Notional Amount | € | € 1.6 | ||||
Foreign Exchange Forward | Relate to a business divestiture pending | Economic Hedging | Interest and other expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gains (losses) recorded in earnings related to planned coffee business transactions | (165) | 386 | |||
Foreign Exchange Forward | Related to cash proceeds distribution | Economic Hedging | Interest and other expense, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Unrealized gains (losses) recorded in earnings related to planned coffee business transactions | 21 | 21 | |||
Quoted Prices In Active Markets For Identical Assets (Level 1) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative liabilities after effects of netting | 3 | ||||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Exchange Traded Options | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative assets after effects of netting | 48 | 48 | 38 | ||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Exchange Traded Options | Other Current Assets | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Margin deposits related to exchange traded derivatives | 57 | 57 | 84 | ||
Significant Other Observable Inputs (Level 2) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative assets after effects of netting | 73 | 73 | 72 | ||
Derivative liabilities after effects of netting | $ 53 | $ 53 | $ 156 |
Notional Values of Derivative I
Notional Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Net Investment Hedging | Euro Notes | ||
Derivative [Line Items] | ||
Notional Amount | $ 4,459 | $ 3,932 |
Net Investment Hedging | Pound Sterling Notes | ||
Derivative [Line Items] | ||
Notional Amount | 1,257 | 545 |
Net Investment Hedging | Franc Notes | ||
Derivative [Line Items] | ||
Notional Amount | 722 | |
Currency exchange contracts | Intercompany Loans And Forecasted Interest Payments | ||
Derivative [Line Items] | ||
Notional Amount | 5,680 | 3,640 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 7,762 | 6,681 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 2,903 | 1,569 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,078 | $ 3,970 |
Schedule of Cash Flow Hedges Ef
Schedule of Cash Flow Hedges Effect on Accumulated Other Comprehensive Income, Net of Taxes (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Accumulated gain / (loss) at beginning of period | $ (46) | $ 82 | $ (2) | $ 117 |
Transfer of realized losses / (gains) in fair value to earnings | (36) | (2) | (54) | (3) |
Unrealized gain / (loss) in fair value | 29 | (36) | 3 | (70) |
Accumulated gain / (loss) at end of period | $ (53) | $ 44 | $ (53) | $ 44 |
Effects of Cash Flow Hedges (De
Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) reclassified from AOCI into earnings | $ 36 | $ 2 | $ 54 | $ 3 |
Gains / (losses) recognized in OCI | 29 | (36) | 3 | (70) |
Currency exchange contracts | Forecasted transactions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) reclassified from AOCI into earnings | 38 | (2) | 84 | (4) |
Gains / (losses) recognized in OCI | (24) | 5 | 25 | 7 |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) reclassified from AOCI into earnings | (2) | 4 | (4) | 9 |
Gains / (losses) recognized in OCI | 15 | (8) | (23) | 3 |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) reclassified from AOCI into earnings | (26) | (2) | ||
Gains / (losses) recognized in OCI | $ 38 | $ (33) | $ 1 | $ (80) |
Fair Value Hedges (Detail)
Fair Value Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain / (loss) recognized in income on fair value of hedges | $ 14 | $ 4 | $ 14 |
Long-term Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain / (loss) recognized in income on fair value of hedges | $ (14) | $ (4) | $ (14) |
Economic Hedges (Detail)
Economic Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (Loss) Recognized in Earnings | $ 607 | |||
Derivatives Not Designated as Hedging Instruments | Economic Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (Loss) Recognized in Earnings | $ (176) | $ (43) | 330 | $ (23) |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Interest rate contracts | Interest and other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (Loss) Recognized in Earnings | (1) | 1 | 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 | (18) | (6) | (59) | 32 |
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 | (7) | (30) | (10) | (40) |
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 | (152) | (9) | 401 | (14) |
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 | (5) | (2) | (16) | (3) |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Forecasted Interest Payments | Intercompany loans | Currency exchange contracts | Interest and other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (Loss) Recognized in Earnings | $ 7 | $ 3 | $ 14 | $ 1 |
Hedges of Net Investments in In
Hedges of Net Investments in International Operations (Detail) - Net Investment Hedging - Currency Translation Adjustments - Currency exchange contracts - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Euro Notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) recognized in OCI | $ (118) | $ 5 | $ 196 | |
Pound Sterling Notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) recognized in OCI | (45) | $ (19) | (13) | $ (23) |
Franc Notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) recognized in OCI | $ (17) | $ (30) |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Coffee Business | |
Defined Benefit Plan Disclosure [Line Items] | |
Benefit plan liabilities held for sale | $ 179 |
Deferred tax assets transferred | 5 |
U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contribution | 207 |
Estimated future employer contributions for remainder of the year | 3 |
Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contribution | 164 |
Estimated future employer contributions for remainder of the year | 154 |
Non-U.S. Pension Plans | Coffee Business | |
Defined Benefit Plan Disclosure [Line Items] | |
Deferred tax assets transferred | $ 29 |
Components of Net Pension Cost
Components of Net Pension Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
U.S. Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 15 | $ 13 | $ 32 | $ 28 | |
Interest cost | 17 | 16 | 34 | 33 | |
Expected return on plan assets | (24) | (20) | (47) | (40) | |
Net loss from experience differences | 10 | 7 | 22 | 15 | |
Prior service cost | [1] | 1 | 1 | 1 | 1 |
Settlement losses | [2] | 10 | 4 | 13 | 6 |
Net periodic benefit cost | 29 | 21 | 55 | 43 | |
Non-U.S. Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 51 | 45 | 101 | 89 | |
Interest cost | 77 | 100 | 154 | 197 | |
Expected return on plan assets | (119) | (125) | (238) | (248) | |
Net loss from experience differences | 38 | 27 | 77 | 54 | |
Prior service cost | [1] | 16 | 1 | 16 | 1 |
Settlement losses | [2] | 5 | 10 | ||
Net periodic benefit cost | $ 63 | $ 53 | $ 110 | $ 103 | |
[1] | For the three and six months ended June 30, 2015, amortization of prior service cost includes $17 million of pension curtailment losses related to employees who transitioned to JDE upon the divestiture of our global coffee business. Refer to Note 2, Divestitures and Acquisitions - Divestiture of Coffee Business, for more information. | ||||
[2] | For the three and six months ended June 30, 2015, settlement losses include $6 million of pension settlement losses for employees who elected lump-sum payments in connection with our 2014-2018 Restructuring Program. See Note 6, Restructuring Programs, for more information. |
Components of Net Pension Cos69
Components of Net Pension Cost (Parenthetical) (Detail) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Severance and Related Costs | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension curtailment losses | $ (17) | $ (17) |
2014-2018 Restructuring Program | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-cash settlements / adjustments | (62) | (140) |
2014-2018 Restructuring Program | Severance and Related Costs | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Non-cash settlements / adjustments | $ (6) | $ (6) |
Components of Net Postretiremen
Components of Net Postretirement Health Care Costs (Detail) - Postretirement Benefit Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3 | $ 3 | $ 7 | $ 6 |
Interest cost | 6 | 6 | 12 | 11 |
Net loss from experience differences | 4 | 1 | 7 | 3 |
Prior service credit | (2) | (2) | (4) | (5) |
Net periodic benefit cost | $ 11 | $ 8 | $ 22 | $ 15 |
Components of Net Postemploymen
Components of Net Postemployment Costs (Detail) - Postemployment Benefit Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 2 | $ 3 | $ 4 |
Interest cost | 2 | 1 | 3 | 3 |
Net periodic benefit cost | $ 3 | $ 3 | $ 6 | $ 7 |
Stock Option Activity (Detail)
Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Shares subject to option | ||
Beginning balance | 56,431,551 | |
Options granted | 9,768,260 | |
Options exercised | (4,439,379) | |
Options cancelled | (1,167,068) | |
Ending balance | 60,593,364 | |
Weighted-average exercise price | ||
Beginning balance | $ 24.19 | |
Options granted | 36.82 | |
Options exercised | 22.90 | |
Options cancelled | 31.72 | |
Ending balance | $ 26.18 | |
Aggregate intrinsic value | ||
Options exercised | $ 65 | |
Aggregate Intrinsic Value | $ 906 | $ 685 |
Annual grant to eligible employees | ||
Shares subject to option | ||
Options granted | 8,899,530 | |
Weighted-average exercise price | ||
Options granted | $ 36.94 | |
Additional granted | ||
Shares subject to option | ||
Options granted | 868,730 | |
Weighted-average exercise price | ||
Options granted | $ 35.59 |
Restricted Stock, Deferred Stoc
Restricted Stock, Deferred Stock Unit and Performance Share Unit Activity (Detail) - 6 months ended Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Millions | Total | |
Number of Shares | ||
Beginning balance | 10,582,640 | |
Shares granted | 3,627,419 | |
Vested | (3,286,055) | |
Forfeited | (737,151) | |
Ending balance | 10,186,853 | |
Weighted-average grant date fair value per share | ||
Beginning balance | $ 28.56 | |
Shares granted | 36.97 | |
Vested | 36.97 | |
Forfeited | 31.81 | |
Ending balance | $ 28.61 | |
Weighted-Average Aggregate Fair Value | ||
Total shares granted | $ 134 | |
Vested | $ 121 | |
Performance Share Units | ||
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 | |
Restricted Stock | ||
Number of Shares | ||
Shares granted | 386,910 | |
Grant date | ||
Grant date | Feb. 18, 2015 | |
Weighted-average grant date fair value per share | ||
Shares granted | $ 36.94 | |
Deferred Stock Units | ||
Number of Shares | ||
Shares granted | 866,640 | |
Grant date | ||
Grant date | Feb. 18, 2015 | |
Weighted-average grant date fair value per share | ||
Shares granted | $ 36.94 | |
Additional granted | ||
Number of Shares | ||
Shares granted | [1] | 775,579 |
Weighted-average grant date fair value per share | ||
Shares granted | [1] | $ 37.06 |
[1] | Includes performance share units, restricted stock and deferred stock units. |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 29, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cost of shares repurchased | $ 2,166 | $ 1,891 | |||
Payment for repurchase of common stock | $ 2,132 | $ 720 | |||
Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase value | $ 7,700 | ||||
Stock repurchase expiration date | Dec. 31, 2016 | ||||
Number of shares repurchased | 58.2 | ||||
Average cost of shares repurchased | $ 37.17 | ||||
Cost of shares repurchased | $ 2,200 | ||||
Payment for repurchase of common stock | 2,100 | ||||
Stock repurchase remaining amount | $ 900 | ||||
Common Class A | Subsequent Event | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase value | $ 13,700 | ||||
Stock repurchase expiration date | Dec. 31, 2018 | ||||
Increase in share repurchase value | $ 6,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Jun. 30, 2015 ₨ in Billions | USD ($) | INR (₨) |
Indian Department of Central Excise Authority | Cadbury | ||
Loss Contingencies [Line Items] | ||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | $ 59,000,000 | ₨ 3.7 |
Indian Department of Central Excise Authority | Cadbury | January to October 2014 | ||
Loss Contingencies [Line Items] | ||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | 16,000,000 | 1 |
Indian Department of Central Excise Authority | Cadbury | Maximum | ||
Loss Contingencies [Line Items] | ||
Tax penalties and interest expense | 92,000,000 | 5.8 |
Indian Department of Central Excise Authority | Cadbury | Maximum | January to October 2014 | ||
Loss Contingencies [Line Items] | ||
Tax penalties and interest expense | $ 16,000,000 | ₨ 1 |
U.S. Commodity Futures Trading Commission ("CFTC") | ||
Loss Contingencies [Line Items] | ||
Loss contingency, filling date | April 1, 2015 | |
Loss contingency, damages sought | $ 1,000,000 | |
U.S. Commodity Futures Trading Commission ("CFTC") | Each Additional Violation of the Commodity Exchange Act | ||
Loss Contingencies [Line Items] | ||
Loss contingency, damages sought | $ 140,000 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Earnings / (Losses) (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balances | $ (7,318) | $ (2,889) | |
Currency translation adjustment | [1] | (1,549) | 161 |
Pension and other benefits | (28) | ||
Derivatives accounted for as hedges | 251 | (132) | |
Losses / (gains) reclassified into net earnings | 84 | 81 | |
Tax (expense) / benefit | (132) | 19 | |
Total other comprehensive earnings / (losses) | (1,374) | 129 | |
Ending balances | (8,692) | (2,760) | |
Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balances | (5,042) | (1,414) | |
Currency translation adjustment | [1] | (1,600) | 167 |
Derivatives accounted for as hedges | 241 | (20) | |
Tax (expense) / benefit | (88) | (3) | |
Ending balances | (6,489) | (1,270) | |
Pension and other benefits | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balances | (2,274) | (1,592) | |
Currency translation adjustment | [1] | 51 | (6) |
Pension and other benefits | (28) | ||
Losses / (gains) reclassified into net earnings | 132 | 85 | |
Tax (expense) / benefit | (31) | (21) | |
Ending balances | (2,150) | (1,534) | |
Derivatives accounted for as hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balances | (2) | 117 | |
Derivatives accounted for as hedges | 10 | (112) | |
Losses / (gains) reclassified into net earnings | (48) | (4) | |
Tax (expense) / benefit | (13) | 43 | |
Ending balances | $ (53) | $ 44 | |
[1] | The condensed consolidated statement of other comprehensive earnings includes currency translation adjustment attributable to noncontrolling interests of $(16) million for the six months ended June 30, 2015 and $(1) million for the six months ended June 30, 2014. |
Components of Accumulated Oth77
Components of Accumulated Other Comprehensive Earnings / (Losses) (Parenthetical) (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Currency translation adjustment attributable to noncontrolling interests | $ (16) | $ (1) |
Amounts Reclassified from Accum
Amounts Reclassified from Accumulated Other Comprehensive Earnings (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Reclassification of losses / (gains) into net earnings: | ||||||
Amortization of experience losses and prior service costs | $ 67 | $ 35 | $ 119 | $ 69 | ||
Interest and other expense, net | (314) | (224) | (700) | (944) | ||
Settlement losses | 10 | 9 | 13 | 16 | ||
Tax impact | (100) | (91) | (213) | (64) | ||
Cost of sales | (4,595) | (5,331) | (9,416) | (10,768) | ||
Net earnings | 427 | 642 | 739 | 792 | $ 2,201 | |
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Reclassification of losses / (gains) into net earnings: | ||||||
Net earnings | 13 | 35 | 38 | 61 | ||
Reclassification out of Accumulated Other Comprehensive Income | Pension and other benefits | ||||||
Reclassification of losses / (gains) into net earnings: | ||||||
Amortization of experience losses and prior service costs | [1] | 67 | 35 | 119 | 69 | |
Settlement losses | [1] | 10 | 9 | 13 | 16 | |
Tax impact | (23) | (8) | (36) | (21) | ||
Reclassification out of Accumulated Other Comprehensive Income | Derivatives accounted for as hedges | ||||||
Reclassification of losses / (gains) into net earnings: | ||||||
Tax impact | 3 | 1 | (10) | 1 | ||
Reclassification out of Accumulated Other Comprehensive Income | Derivatives accounted for as hedges | Currency exchange contracts | ||||||
Reclassification of losses / (gains) into net earnings: | ||||||
Cost of sales | (42) | 2 | (92) | 4 | ||
Reclassification out of Accumulated Other Comprehensive Income | Derivatives accounted for as hedges | Commodity contracts | ||||||
Reclassification of losses / (gains) into net earnings: | ||||||
Cost of sales | $ (2) | $ (4) | 3 | (11) | ||
Reclassification out of Accumulated Other Comprehensive Income | Derivatives accounted for as hedges | Interest rate contracts | ||||||
Reclassification of losses / (gains) into net earnings: | ||||||
Interest and other expense, net | $ 41 | $ 3 | ||||
[1] | These items are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||||||
Impact on provision for income tax, out-of-period adjustments | $ 4 | $ 5 | $ 11 | $ 5 | |||
Effective tax rate | 19.00% | 12.40% | 22.40% | 7.50% | 19.60% | ||
Total favorable discrete items | $ 8 | $ 52 | $ 33 | $ 104 | |||
Net unfavorable tax charge related to the sale of joint venture | 22 | $ 32 | 54 | ||||
Net favorable tax audit settlements and expirations of statutes of limitations | $ 11 | 9 | $ 33 | 60 | |||
Tax return to provision adjustments | $ 37 | $ 37 | |||||
Scenario, Forecast | |||||||
Income Tax Contingency [Line Items] | |||||||
Estimated effective tax rate | 19.00% |
Basic and Diluted Earnings per
Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Earnings Per Share [Line Items] | |||||
Net earnings | $ 427 | $ 642 | $ 739 | $ 792 | $ 2,201 |
Noncontrolling interest | 21 | 20 | 9 | 7 | |
Net earnings attributable to Mondelez International | $ 406 | $ 622 | $ 730 | $ 785 | |
Weighted-average shares for basic EPS | 1,625 | 1,694 | 1,637 | 1,699 | |
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares | 18 | 18 | 17 | 18 | |
Weighted-average shares for diluted EPS | 1,643 | 1,712 | 1,654 | 1,717 | |
Basic earnings per share attributable to Mondelez International | $ 0.25 | $ 0.37 | $ 0.45 | $ 0.46 | |
Diluted earnings per share attributable to Mondelez International | $ 0.25 | $ 0.36 | $ 0.44 | $ 0.46 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Mondelez International stock options excluded from the calculation of diluted EPS | 12.6 | 9.9 | 13.2 | 7.3 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($)Segment | Jun. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 5 | ||
Stock-based compensation expense | $ 66 | $ 68 | |
Corporate | Scenario, Adjustment | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | $ 4 | 15 | |
North America Segment | Scenario, Previously Reported | |||
Segment Reporting Information [Line Items] | |||
Stock-based compensation expense | $ 4 | $ 15 |
Net Revenues by Segment (Detail
Net Revenues by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | [1] | Jun. 30, 2015 | Jun. 30, 2014 | [1] | |
Segment Reporting Information [Line Items] | ||||||
Net revenues | $ 7,661 | $ 8,436 | $ 15,423 | $ 17,077 | ||
Latin America Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 1,240 | 1,242 | 2,497 | 2,598 | ||
Asia Pacific Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 1,024 | 1,084 | 2,177 | 2,307 | ||
EEMEA Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 869 | 1,008 | 1,564 | 1,846 | ||
Europe Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | 2,815 | 3,379 | 5,790 | 6,936 | ||
North America Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net revenues | $ 1,713 | $ 1,723 | $ 3,395 | $ 3,390 | ||
[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 ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Unrealized gains (losses) on derivatives | $ (200) | |||
General corporate expenses | $ (71) | $ (63) | (145) | $ (135) |
Amortization of intangibles | (46) | (55) | (92) | (109) |
Gain on divestiture | 13 | 13 | ||
Acquisition-related costs | (1) | (2) | ||
Operating income | 841 | 957 | 1,652 | 1,800 |
Interest and other expense, net | (314) | (224) | (700) | (944) |
Earnings before income taxes | 527 | 733 | 952 | 856 |
Cost of Sales | ||||
Segment Reporting Information [Line Items] | ||||
Unrealized gains (losses) on derivatives | 86 | (54) | 79 | (47) |
Latin America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 134 | 140 | 288 | 184 |
Asia Pacific Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 104 | 111 | 250 | 299 |
EEMEA Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 100 | 146 | 132 | 210 |
Europe Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 261 | 463 | 587 | 926 |
North America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 261 | $ 269 | $ 542 | $ 472 |
Net Revenues by Consumer Sector
Net Revenues by Consumer Sector (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | [1] | Jun. 30, 2015 | Jun. 30, 2014 | [1] | ||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 7,661 | $ 8,436 | $ 15,423 | $ 17,077 | |||
Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 2,864 | 2,969 | 5,565 | 5,837 | |||
Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,631 | 1,970 | 3,810 | 4,494 | |||
Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,119 | 1,194 | 2,174 | 2,319 | |||
Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [2] | 1,359 | 1,509 | 2,547 | 2,891 | ||
Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 688 | 794 | 1,327 | 1,536 | |||
Latin America Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,240 | 1,242 | 2,497 | 2,598 | |||
Latin America Segment | Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 407 | 333 | 716 | 660 | |||
Latin America Segment | Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 202 | 256 | 496 | 580 | |||
Latin America Segment | Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 295 | 293 | 590 | 579 | |||
Latin America Segment | Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [2] | 178 | 197 | 392 | 452 | ||
Latin America Segment | Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 158 | 163 | 303 | 327 | |||
Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,024 | 1,084 | 2,177 | 2,307 | |||
Asia Pacific Segment | Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 268 | 273 | 584 | 604 | |||
Asia Pacific Segment | Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 302 | 329 | 704 | 747 | |||
Asia Pacific Segment | Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 188 | 188 | 379 | 394 | |||
Asia Pacific Segment | Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [2] | 133 | 137 | 248 | 259 | ||
Asia Pacific Segment | Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 133 | 157 | 262 | 303 | |||
EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 869 | 1,008 | 1,564 | 1,846 | |||
EEMEA Segment | Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 147 | 171 | 271 | 318 | |||
EEMEA Segment | Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 196 | 221 | 395 | 464 | |||
EEMEA Segment | Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 166 | 200 | 284 | 347 | |||
EEMEA Segment | Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [2] | 272 | 327 | 457 | 555 | ||
EEMEA Segment | Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 88 | 89 | 157 | 162 | |||
Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 2,815 | 3,379 | 5,790 | 6,936 | |||
Europe Segment | Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 642 | 794 | 1,236 | 1,516 | |||
Europe Segment | Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 890 | 1,114 | 2,118 | 2,590 | |||
Europe Segment | Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 198 | 238 | 381 | 461 | |||
Europe Segment | Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [2] | 776 | 848 | 1,450 | 1,625 | ||
Europe Segment | Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 309 | 385 | 605 | 744 | |||
North America Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,713 | 1,723 | 3,395 | 3,390 | |||
North America Segment | Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,400 | 1,398 | 2,758 | 2,739 | |||
North America Segment | Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 41 | 50 | 97 | 113 | |||
North America Segment | Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 272 | $ 275 | $ 540 | $ 538 | |||
[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. | ||||||
[2] | On July 2, 2015, we divested our global coffee businesses from our Europe, EEMEA and Asia Pacific segment beverage categories. Refer to Note 2, Divestitures and Acquisitions - Divestiture of Coffee Business, for more information. |