Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
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 | 1,544,411,707 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net revenues | $ 6,396 | $ 6,849 | $ 19,153 | $ 22,272 |
Cost of sales | 3,908 | 4,179 | 11,614 | 13,595 |
Gross profit | 2,488 | 2,670 | 7,539 | 8,677 |
Selling, general and administrative expenses | 1,552 | 1,790 | 4,835 | 5,675 |
Asset impairment and exit costs | 190 | 155 | 510 | 546 |
Gain on divestiture | (7,122) | (7,135) | ||
Amortization of intangibles | 44 | 45 | 132 | 137 |
Operating income (loss) | 702 | 7,802 | 2,062 | 9,454 |
Interest and other expense, net | 145 | 114 | 540 | 814 |
Earnings before income taxes | 557 | 7,688 | 1,522 | 8,640 |
Provision for income taxes | (40) | (348) | (207) | (561) |
Gain on equity method investment exchange | 43 | |||
Equity method investment net (losses) / earnings | 31 | (72) | 218 | (72) |
Net earnings | 548 | 7,268 | 1,576 | 8,007 |
Noncontrolling interest earnings | (2) | (10) | (11) | |
Net earnings attributable to Mondelez International | $ 548 | $ 7,266 | $ 1,566 | $ 7,996 |
Per share data: | ||||
Basic earnings per share attributable to Mondelez International | $ 0.35 | $ 4.52 | $ 1 | $ 4.91 |
Diluted earnings per share attributable to Mondelez International | 0.35 | 4.46 | 0.99 | 4.86 |
Dividends declared | $ 0.19 | $ 0.17 | $ 0.53 | $ 0.47 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net earnings | $ 548 | $ 7,268 | $ 1,576 | $ 8,007 |
Other comprehensive earnings / (losses): | ||||
Currency translation adjustment | 35 | (1,070) | 173 | (2,482) |
Pension and other benefit plans | 30 | 156 | 99 | 229 |
Derivative cash flow hedges | 2 | (9) | 12 | (60) |
Total other comprehensive earnings / (losses) | 67 | (923) | 284 | (2,313) |
Comprehensive earnings / (losses) | 615 | 6,345 | 1,860 | 5,694 |
less: Comprehensive earnings / (losses) attributable to noncontrolling interests | (2) | (4) | 7 | (11) |
Comprehensive earnings / (losses) attributable to Mondelez International | $ 617 | $ 6,349 | $ 1,853 | $ 5,705 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 1,686 | $ 1,870 |
Trade receivables (net of allowances of $64 at September 30, 2016 and $54 at December 31, 2015) | 3,019 | 2,634 |
Other receivables (net of allowances of $103 at September 30, 2016 and $109 at December 31, 2015) | 895 | 1,212 |
Inventories, net | 2,776 | 2,609 |
Other current assets | 479 | 633 |
Total current assets | 8,855 | 8,958 |
Property, plant and equipment, net | 8,465 | 8,362 |
Goodwill | 20,751 | 20,664 |
Intangible assets, net | 18,721 | 18,768 |
Prepaid pension assets | 83 | 69 |
Deferred income taxes | 289 | 277 |
Equity method investments | 5,717 | 5,387 |
Other assets | 384 | 358 |
TOTAL ASSETS | 63,265 | 62,843 |
LIABILITIES | ||
Short-term borrowings | 2,490 | 236 |
Current portion of long-term debt | 1,511 | 605 |
Accounts payable | 4,884 | 4,890 |
Accrued marketing | 1,624 | 1,634 |
Accrued employment costs | 779 | 844 |
Other current liabilities | 2,669 | 2,713 |
Total current liabilities | 13,957 | 10,922 |
Long-term debt | 13,105 | 14,557 |
Deferred income taxes | 4,762 | 4,750 |
Accrued pension costs | 1,654 | 2,183 |
Accrued postretirement health care costs | 501 | 499 |
Other liabilities | 1,709 | 1,832 |
TOTAL LIABILITIES | 35,688 | 34,743 |
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 September 30, 2016 and December 31, 2015) | 0 | 0 |
Additional paid-in capital | 31,805 | 31,760 |
Retained earnings | 21,366 | 20,700 |
Accumulated other comprehensive losses | (9,699) | (9,986) |
Treasury stock, at cost (450,941,657 shares at September 30, 2016 and 416,504,624 shares at December 31, 2015) | (15,963) | (14,462) |
Total Mondelez International Shareholders' Equity | 27,509 | 28,012 |
Noncontrolling interest | 68 | 88 |
TOTAL EQUITY | 27,577 | 28,100 |
TOTAL LIABILITIES AND EQUITY | $ 63,265 | $ 62,843 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Trade receivables, allowances | $ 64 | $ 54 |
Other receivables, allowances | $ 103 | $ 109 |
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 | 450,941,657 | 416,504,624 |
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, 2014 | $ 27,853 | $ 31,651 | $ 14,529 | $ (7,318) | $ (11,112) | $ 103 | |
Comprehensive earnings / (losses): | |||||||
Net earnings | 8,007 | ||||||
Other comprehensive earnings (losses), net of income taxes | (2,313) | ||||||
Balances at Sep. 30, 2015 | (9,609) | ||||||
Balances at Dec. 31, 2014 | 27,853 | 31,651 | 14,529 | (7,318) | (11,112) | 103 | |
Comprehensive earnings / (losses): | |||||||
Net earnings | 7,291 | 7,267 | 24 | ||||
Other comprehensive earnings (losses), net of income taxes | (2,694) | (2,668) | (26) | ||||
Exercise of stock options and issuance of other stock awards | 311 | 109 | (70) | 272 | |||
Common Stock repurchased | (3,622) | (3,622) | |||||
Cash dividends declared ($0.53 per share for 2016 and $0.64 per share for 2015) | (1,026) | (1,026) | |||||
Dividends paid on noncontrolling interest and other activities | (13) | (13) | |||||
Balances at Dec. 31, 2015 | 28,100 | 31,760 | 20,700 | (9,986) | (14,462) | 88 | |
Balances at Jun. 30, 2015 | (8,692) | ||||||
Comprehensive earnings / (losses): | |||||||
Net earnings | 7,268 | ||||||
Other comprehensive earnings (losses), net of income taxes | (923) | ||||||
Balances at Sep. 30, 2015 | (9,609) | ||||||
Balances at Dec. 31, 2015 | 28,100 | 31,760 | 20,700 | (9,986) | (14,462) | 88 | |
Comprehensive earnings / (losses): | |||||||
Net earnings | 1,576 | 1,566 | 10 | ||||
Other comprehensive earnings (losses), net of income taxes | 284 | 287 | (3) | ||||
Exercise of stock options and issuance of other stock awards | 257 | 45 | (74) | 286 | |||
Common Stock repurchased | (1,787) | (1,787) | |||||
Cash dividends declared ($0.53 per share for 2016 and $0.64 per share for 2015) | (826) | (826) | |||||
Dividends paid on noncontrolling interest and other activities | (27) | (27) | |||||
Balances at Sep. 30, 2016 | 27,577 | 31,805 | 21,366 | (9,699) | (15,963) | 68 | |
Balances at Jun. 30, 2016 | (9,768) | ||||||
Comprehensive earnings / (losses): | |||||||
Net earnings | 548 | ||||||
Other comprehensive earnings (losses), net of income taxes | 67 | ||||||
Balances at Sep. 30, 2016 | $ 27,577 | $ 31,805 | $ 21,366 | $ (9,699) | $ (15,963) | $ 68 | |
[1] | Noncontrolling interest as of September 30, 2015 was $84 million, as compared to $103 million as of January 1, 2015. The change of $(19) million during the nine months ended September 30, 2015 was due to $(22) million of other comprehensive losses, net of taxes, $11 million of net earnings and $(8) million of dividends paid. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash dividends declared, per share | $ 0.19 | $ 0.17 | $ 0.53 | $ 0.47 | $ 0.64 | |
Noncontrolling interest | $ 68 | $ 84 | $ 68 | $ 84 | $ 88 | $ 103 |
Change in noncontrolling interest | (19) | |||||
Net earnings | 2 | 10 | 11 | |||
Other comprehensive losses, net of taxes | $ (2) | $ (6) | $ (3) | (22) | ||
Dividends paid | $ (8) |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES | ||
Net earnings | $ 1,576 | $ 8,007 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 615 | 663 |
Stock-based compensation expense | 102 | 98 |
Deferred income tax benefit | (163) | (81) |
Gains on JDE coffee business transactions and divestiture | (7,135) | |
Asset impairments | 262 | 195 |
Loss on early extinguishment of debt | 708 | |
JDE coffee business transactions currency-related net gains | (436) | |
Gain on equity method investment exchange | (43) | |
Equity method investment net (earnings) / losses | (218) | 16 |
Distributions from equity method investments | 75 | 58 |
Other non-cash items, net | 10 | 142 |
Change in assets and liabilities, net of acquisitions and divestitures: | ||
Receivables, net | (265) | (868) |
Inventories, net | (121) | (314) |
Accounts payable | (143) | 496 |
Other current assets | 79 | 36 |
Other current liabilities | (266) | 11 |
Change in pension and postretirement assets and liabilities, net | (362) | (184) |
Net cash provided by operating activities | 1,138 | 1,412 |
CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES | ||
Capital expenditures | (909) | (1,178) |
Proceeds from JDE coffee business transactions currency hedge settlements | 1,050 | |
Acquisitions, net of cash received | (536) | |
Proceeds from JDE coffee business transaction and divestiture, net of disbursements | 275 | 4,091 |
Proceeds from sale of property, plant and equipment and other assets | 113 | 33 |
Net cash (used in) / provided by investing activities | (521) | 3,460 |
CASH PROVIDED BY / (USED IN) FINANCING ACTIVITIES | ||
Issuances of commercial paper, maturities greater than 90 days | 1,028 | 613 |
Repayments of commercial paper, maturities greater than 90 days | (337) | (710) |
Net issuances of other short-term borrowings | 1,533 | 396 |
Long-term debt proceeds | 1,149 | 3,606 |
Long-term debt repaid | (1,757) | (4,543) |
Repurchase of Common Stock | (1,727) | (3,003) |
Dividends paid | (801) | (736) |
Other | 82 | 107 |
Net cash used in financing activities | (830) | (4,270) |
Effect of exchange rate changes on cash and cash equivalents | 29 | (194) |
Cash and cash equivalents: | ||
(Decrease) / increase | (184) | 408 |
Balance at beginning of period | 1,870 | 1,631 |
Balance at end of period | $ 1,686 | $ 2,039 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015 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 Principles of Consolidation: As of the close of the fourth quarter of 2015, we deconsolidated our Venezuelan operations from our consolidated financial statements. As such, the results of our Venezuelan subsidiaries are not included in our condensed consolidated financial statements for the three and nine months ended September 30, 2016. The operating results of our Venezuelan subsidiaries are included in our condensed consolidated financial statements for the three and nine months ended September 30, 2015. See Currency Translation and Highly Inflationary Accounting: Venezuela On July 2, 2015, we contributed our global coffee businesses to a new company, Jacobs Douwe Egberts (“JDE”), in which we now hold an equity interest (collectively, the “JDE coffee business transactions”). Historically, our coffee businesses and the income from equity method investments were recorded within our operating income as these businesses were part of our base business. While we retain an ongoing interest in coffee through equity method investments including JDE, Keurig Green Mountain Inc. (“Keurig”) and Dongsuh Foods Corporation (“DSF”), and we have significant influence with our equity method investments, we do not control these operations directly. As such, in the third quarter of 2015, we began to recognize equity method investment earnings, consisting primarily of investments in coffee businesses, outside of operating income and segment income. For periods prior to the third quarter of 2015, our historical coffee business and equity method investment earnings were included within our operating income and segment income. Please see Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions Keurig Transaction Segment Reporting Currency Translation and Highly Inflationary Accounting We translate the results of operations of our subsidiaries from multiple currencies using average exchange rates during each period and translate balance sheet accounts using exchange rates at the end of each period. We record currency translation adjustments as a component of equity (except for highly inflationary currencies) and realized exchange gains and losses on transactions in earnings. United Kingdom. Brexit has caused volatility in global stock markets and currency exchange rates, affecting the markets in which we operate. The implications of Brexit could adversely affect demand for our products, our financial results and operations, and our relationships with customers, suppliers and employees in the short or long-term. On June 24, 2016, the value of the British pound sterling relative to the U.S. dollar fell by 9%. Since that date, the value of the British pound sterling relative to the U.S. dollar declined an additional 5% through September 30, 2016. Further volatility in the exchange rate is expected over the transition period. As the business operating environment remains uncertain, we continue to monitor our investments and currency exposures abroad. As the U.K. is not a highly-inflationary economy, we record currency translation adjustments within equity and realized exchange gains and losses on transactions in earnings. While we did not experience significant business disruptions in our U.K. businesses immediately following the referendum, the devaluation of the British pound sterling in late June adversely affected our translated results reported in U.S. dollars. We have a natural hedge in the form of pound sterling-denominated debt that acts as a net investment hedge, moving counter to adverse pound sterling currency translation impacts. British pound sterling currency transaction risks are largely mitigated due to our global chocolate businesses buying cocoa in British pound sterling. Our U.K. operations contributed $505 million, or 7.9% of consolidated net revenues in the three months and $1.6 billion, or 8.4% of consolidated net revenues in the nine months ended September 30, 2016. Venezuela. Effective as of the close of the 2015 fiscal year, we concluded that we no longer met the accounting criteria for consolidation of our Venezuelan subsidiaries due to a loss of control over our Venezuelan operations and an other-than-temporary lack of currency exchangeability. During the fourth quarter of 2015, representatives of the Venezuelan government arbitrarily imposed pricing restrictions on our local operations that resulted in our inability to recover operating costs. We immediately began an appeal process with the Venezuelan authorities to demonstrate that our pricing was in line with the regulatory requirements. In January 2016, local officials communicated that some of the pricing restrictions had been lifted; however, the legally required administrative order had not been issued and it was uncertain when it would be issued. The legal and regulatory environment also became more unreliable. While we had been complying with the Venezuelan law governing pricing and profitability controls and followed the legal process for appeal, the appeal process was not available to us as outlined under law. Additionally, we were increasingly facing issues procuring raw materials and packaging. Taken together, these actions, the economic environment in Venezuela and the progressively limited access to dollars to import goods through the use of any of the available currency mechanisms impaired our ability to operate and control our Venezuelan businesses. As a result of these factors, we concluded that we no longer met the criteria for the consolidation of our Venezuelan subsidiaries. As of the close of the 2015 fiscal year, we deconsolidated and changed to the cost method of accounting for our Venezuelan operations. We recorded a $778 million pre-tax loss on December 31, 2015 as we reduced the value of our cost method investment in Venezuela and all Venezuelan receivables held by our other subsidiaries to realizable fair value, resulting in full impairment. The recorded loss also included historical cumulative translation adjustments related to our Venezuelan operations that had previously been recorded in accumulated other comprehensive losses within equity. The fair value of our investments in our Venezuelan subsidiaries was estimated based on discounted cash flow projections of current and expected operating losses in the foreseeable future and our ability to operate the business on a sustainable basis. Our fair value estimate included U.S. dollar exchange and discount rate assumptions that reflect the inflation and economic uncertainty in Venezuela. Beginning in 2016, we no longer include net revenues, earnings or net assets of our Venezuelan subsidiaries within our condensed consolidated financial statements. Under the cost method of accounting, earnings are only recognized to the extent cash is received. Given the current and ongoing difficult economic, regulatory and business environment in Venezuela, there continues to be significant uncertainty related to our operations in Venezuela, and we expect these conditions will continue for the foreseeable future. We will monitor the extent of our ability to control our Venezuelan operations and the liquidity and availability of U.S. dollars at different rates, including the changes to the currency exchange systems in March 2016, as our current situation in Venezuela may change over time and lead to consolidation at a future date. We recorded no revenues, earnings or other financial results from our Venezuelan subsidiaries during the three and nine months ended September 30, 2016, and we continue to monitor the business, economic and regulatory climate in Venezuela. For the three and nine months ended September 30, 2015, the operating results of our Venezuelan operations were included in our condensed consolidated statements of earnings. During the first quarter of 2015, we recognized an $11 million currency-related remeasurement loss resulting from a devaluation of the Venezuela bolivar exchange rate we historically used to source U.S. dollars for purchases of imported raw materials, packaging and other goods and services. The following table sets forth net revenues and operating income (including the impact of remeasurement losses) for our Venezuelan operations for the three and nine months ended September 30, 2015: Venezuela operations Three Months Ended September 30, 2015 Net revenues $315 million or 4.6% of consolidated net revenues Operating income $73 million or 0.9% of consolidated operating income Nine Months Ended September 30, 2015 Net revenues $834 million or 3.7% of consolidated net revenues Operating income $188 million or 2.0% of consolidated operating income Argentina. Other Countries. Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have a factoring arrangement with a major global bank for a maximum combined capacity of $820 million. Under the program, we may sell eligible short-term trade receivables to the bank in exchange for cash. We then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the bank. We also enter into arrangements with customers to achieve earlier collection of receivables. The incremental cost of factoring receivables for all regions was $2 million in the three months and $6 million in the nine months ended September 30, 2016 and $1 million in the three months and $4 million in the nine months ended September 30, 2015 and was recorded in net revenue. The outstanding principal amount of receivables under these arrangements amounted to $589 million as of September 30, 2016 and $401 million as of September 30, 2015. 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 $19 million on net revenues and $9 million on operating income in the three months and $57 million on net revenues and $27 million on operating income in the nine months ended September 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. New Accounting Pronouncements: In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) to provide guidance on eight specific cash flow classification issues and reduce diversity in practice in how some cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We are currently assessing the impact on our condensed consolidated financial statements. In March 2016, the FASB issued an ASU to simplify the accounting for stock-based compensation. The ASU addresses several areas of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and cash flow statement presentation. The ASU is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. We are currently assessing the impact on our condensed consolidated financial statements. We anticipate the impact of adopting the standard on January 1, 2017 will be greater volatility in our condensed consolidated income statement in subsequent reporting periods. We will begin recording certain stock-based compensation tax impacts in our provision for income taxes prospectively which, under current guidance, are recorded directly to equity. In March 2016, the FASB issued an ASU that simplifies the transition accounting for increases in investments that require a change from the cost basis to the equity method of accounting. U.S. GAAP currently requires the impact of such changes in accounting method to be retroactively applied to all prior periods that the investment was held. Under the new standard, adjustments to the investor’s basis in the investment should be recorded on the date the investment becomes qualified for equity method accounting. The equity method of accounting is then applied prospectively from that date. The ASU is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. This ASU is not expected to have a significant impact on our condensed consolidated financial statements. We plan to adopt when the ASU becomes effective or earlier if an in-scope transaction arises. In March 2016, the FASB issued an ASU that clarifies whether contingent put and call options meet the “clearly and closely related” criteria in connection with accounting for embedded derivatives. U.S GAAP requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met. The criteria include determining that the economic characteristics and risks of the embedded derivatives are not “clearly and closely related” to those of the host contract. The ASU is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. We plan to adopt the new standard as of December 31, 2016 and do not expect this ASU to have a significant impact on our condensed consolidated financial statements. In March 2016, the FASB issued an ASU that applies when there is a contract novation to a new counterparty for a derivative designated as an accounting hedge. The ASU clarifies that such a change in counterparty does not, in and of itself, require de-designation of the hedging relationship, provided that all other hedge accounting criteria continue to be met. The ASU is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. We plan to adopt the new standard as of December 31, 2016 and do not expect this ASU to have a significant impact on our condensed consolidated financial statements. In February 2016, the FASB issued an ASU on lease accounting. The ASU revises existing U.S. GAAP and outlines a new model for lessors and lessees to use in accounting for lease contracts. The guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases, with the exception of short-term leases. In the condensed consolidated statement of earnings, lessees will classify leases as either operating (resulting in straight-line expense) or financing (resulting in a front-loaded expense pattern). The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact across our operations and on our condensed consolidated financial statements. In January 2016, the FASB issued an ASU that provides updated guidance for the recognition, measurement, presentation and disclosure of financial assets and liabilities. The standard requires that equity investments (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) be measured at fair value, with changes in fair value recognized in net income. The standard also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The ASU is effective for fiscal years beginning after December 15, 2017. This ASU is not expected to have a significant impact on our condensed 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 control over promised goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for the goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including significant judgments made in recognizing revenue. In 2016, the FASB issued several ASUs that clarified principal versus agent (gross versus net) revenue presentation considerations, confirmed certain prepaid stored-value products should be accounted for under the new revenue recognition ASU and not under other U.S. GAAP and clarified the guidance for identifying performance obligations within a contract and the accounting for licenses. The FASB also issued an ASU providing narrow scope exceptions and practical expedients to clarify and improve the implementation of the new revenue recognition guidance. 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 make progress on our efforts to assess the impact of the ASU across our operations and on our condensed consolidated financial statements. We anticipate adopting the new standard on January 1, 2018 on a full retrospective basis. |
Divestitures and Acquisitions
Divestitures and Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Divestitures and Acquisitions | Note 2. Divestitures and Acquisitions JDE Coffee Business Transactions: On July 2, 2015, we completed transactions to combine our wholly owned coffee businesses with those of D.E Master Blenders 1753 B.V. (“DEMB”) to create a new company, JDE. Following the exchange of a portion of our investment in JDE for an interest in Keurig in March 2016, we held a 26.5% equity interest in JDE. The remaining 73.5% equity interest in JDE was held by a subsidiary of Acorn Holdings B.V. (“AHBV,” owner of DEMB prior to July 2, 2015). Please see discussion of the acquisition of an interest in Keurig below under Keurig Transaction JDE Stock-Based Compensation Arrangements The consideration we received in the JDE coffee business transactions completed on July 2, 2015 consisted of € ) Other Divestitures and Acquisitions On July 5, 2016, we received an expected cash payment of $275 million from JDE to settle the receivable related to tax formation costs that were part of the initial sales price. In connection with the contribution of our global coffee businesses to JDE on July 2, 2015, we recorded a final pre-tax gain of $6.8 billion (or $6.6 billion after taxes) in 2015 after final adjustments as described below. We also recorded approximately $1.0 billion of pre-tax net gains related to hedging the expected cash proceeds from the transactions as described further below. During the fourth quarter of 2015, we and JDE concluded negotiations of a sales price adjustment and completed the valuation of our investment in JDE. Primarily due to the negotiated resolution of the sales price adjustment in the fourth quarter of 2015, we recorded a $313 million reduction in the pre-tax gain on the coffee transaction, reducing the $7.1 billion estimated gain in the third quarter of 2015 to the $6.8 billion final gain for 2015. As part of our sales price negotiations, we retained the right to collect future cash payments if certain estimated pension liabilities are realized over an agreed amount in the future. As such, we may recognize additional income related to this negotiated term in the future. The final value of our investment in JDE on July 2, 2015 was € Carte Noire Merrild In connection with the expected receipt of cash in euros at the time of closing, we entered into a number of consecutive currency exchange forward contracts in 2014 and 2015 to lock in an equivalent expected value in U.S. dollars as of the date the JDE coffee business transactions were first announced in May 2014. Cumulatively, we realized aggregate net gains and received cash of approximately $1.0 billion on these hedging contracts that increased the cash we received in connection with the JDE coffee business transactions from $4.2 billion in cash consideration received to $5.2 billion. In connection with these currency contracts, we recognized net gains of $29 million in the three months and $436 million in the nine months ended September 30, 2015 within interest and other expense, net. We also incurred incremental expenses related to readying our global coffee businesses for the transactions that totaled $54 million in the three months and $239 million in the nine months ended September 30, 2015. These expenses were recorded within selling, general and administrative expenses of primarily our Europe segment, as well as within our Eastern Europe, Middle East and Africa (“EEMEA”) segment and general corporate expenses. JDE Capital Increase: On December 18, 2015, AHBV and we agreed to provide JDE additional capital to pay down some of its debt with lenders. Our pro rata share of the capital increase was € € € JDE Stock-Based Compensation Arrangements: At the close of June 30, 2016, we entered into agreements with AHBV and its affiliates to establish a new stock-based compensation arrangement tied to the issuance of JDE equity compensation awards to JDE employees. This arrangement replaced a temporary equity compensation program tied to the issuance of AHBV equity compensation to JDE employees. New Class C, D and E JDE shares were authorized and issued for investments made by JDE employees. Under these arrangements, dilution of the JDE shares is limited to 2%. Upon execution of the agreements and the creation of the Class C, D and E JDE shares, as a percentage of the total JDE issued shares, our Class B shares changed from 26.5% to 26.4% and AHBV’s Class A shares changed from 73.5% to 73.22%, while the Class C, D and E shares, held by AHBV and its affiliates until the JDE employee awards vest, comprised 0.38% of JDE’s shares. Additional Class C shares are available to be issued when planned long-term incentive plan (“JDE LTIP”) awards vest, generally over the next five years. When the JDE Class C shares are issued in connection with the vested JDE LTIP awards, the Class A and B relative ownership interests will decrease. Based on estimated achievement and forfeiture assumptions, we do not expect our JDE ownership interest to decrease below 26.27%. As of September 30, 2016, our ownership interest in JDE was 26.4%. JDE Tax Matter Resolution: On July 19, 2016, the Supreme Court of Spain reached a final resolution on a challenged JDE tax position held by a predecessor DEMB company that resulted in an unfavorable tax expense of € € Keurig Transaction: On March 3, 2016, a subsidiary of AHBV completed the $13.9 billion acquisition of all of the outstanding common stock of Keurig through a merger transaction. On March 7, 2016, we exchanged with a subsidiary of AHBV a portion of our equity interest in JDE with a carrying value of € Coffee Business Equity Earnings: We have reflected the results of our historical coffee businesses and equity earnings from JDE, Keurig and DSF in our results from continuing operations as the coffee category continues to be a significant part of our net earnings and business strategy going forward. Historically, our coffee businesses and the income from equity method investments were recorded within our operating income as these businesses were part of our base business. While we retain an ongoing interest in coffee through equity method investments including JDE, Keurig and DSF, and we have significant influence with our equity method investments, we do not control these operations directly. As such, in the third quarter of 2015, we began to recognize equity method investment earnings, consisting primarily of investments in coffee businesses, outside of operating income. For periods prior to the third quarter of 2015, our historical coffee business and equity method investment earnings were included within our operating income. The equity method investment earnings and interest income contributed by our coffee investments included losses of $3 million from JDE, earnings of $16 million from Keurig and $11 million from DSF for the three months and earnings of $89 million from JDE, $53 million from Keurig (since March 7, 2016) and $56 million from DSF for the nine months ended September 30, 2016. For the three and nine months ended September 30, 2015, the equity method investment losses contributed by our coffee investments included $105 million from JDE and the equity method investment earnings contributed by our coffee investments included $20 million from DSF. For the nine months ended September 30, 2015, after-tax earnings were $296 million for the coffee businesses we contributed to JDE on July 2, 2015 and $40 million for DSF. Other Divestitures and Acquisitions During the nine months ended September 30, 2016, we entered into the following transactions that as of September 30, 2016, met the qualifications of held for sale accounting. These transactions included pending sales of: • Several manufacturing facilities in France and sale or license of several local confectionery brands. On March 31, 2016, we received a binding offer totaling € € • A chocolate factory in Belgium. We entered into this transaction in the third quarter of 2016 and expect the transaction to close in the fourth quarter of 2016. In connection with this transaction, we incurred and accrued € € • A confectionery business in Costa Rica. We entered into this transaction in the third quarter of 2016 and expect the transaction to close in the fourth quarter of 2016. • A manufacturing plant in Russia. During the third quarter of 2016, we recorded a related fixed asset impairment charge of $4 million within asset impairments and exit costs. As of September 30, 2016, the total held for sale assets and liabilities consisted of $139 million of current assets, $243 million of non-current assets, $39 million of current liabilities and $34 million of non-current liabilities. During the nine months ended September 30, 2016, we also completed the following asset sales: • On August 26, 2016, we recorded a $7 million gain for the sale of a U.S.-owned biscuit trademark. The gain was recorded within selling, general and administrative expenses in the three and nine months ended September 30, 2016. • On May 2, 2016, we completed the sale of certain local biscuit brands in Finland as part of our strategic decisions to exit select small and local brands and shift investment towards our Power Brands. The sales price was € € On August 12, 2016, we announced an agreement to purchase from Burton’s Biscuit Company the license that enables us to manufacture, market and sell Cadbury-branded biscuits around the world, including in the U.K., France, Ireland, North America and Saudi Arabia. The transaction remains subject to regulatory approval. We expect that this transaction will close in the fourth quarter of 2016. During the third quarter of 2016, we completed the acquisition of a Vietnamese biscuit operation within our Asia Pacific segment. On July 15, 2015, we acquired an 80% interest in the biscuit operation and on August 22, 2016, we acquired the remaining 20% interest. Total cash paid for the biscuit operation, intellectual property, non-compete and consulting agreements less purchase price adjustments was 12,404 billion Vietnamese dong ($569 million using applicable exchange rates on July 15, 2015, November 27, 2015 and August 22, 2016). We have made and received 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 as of July 15, 2015) payment for the biscuit operation, a $44 million additional escrow deposit and a 759 billion Vietnamese dong ($35 million as of July 15, 2015) partial payment for the non-compete and continued consulting agreements. • On November 27, 2015, we received 197 billion Vietnamese dong ($9 million as of November 27, 2015) as a purchase price adjustment related to working capital adjustments at closing. • On August 22, 2016, in connection with acquiring the remaining 20% interest in the biscuit operation, we released escrowed funds of $70 million and retained an agreed $20 million related to two outstanding acquisition-related matters that are expected to be resolved in the upcoming year. We also made a final payment of 759 billion Vietnamese dong ($35 million as of August 22, 2016) for the non-compete and consulting agreements. As of September 30, 2016, we have recorded a final allocation of the consideration paid including $10 million to inventory, $49 million to property, plant and equipment, $86 million of intangible assets, $385 million of goodwill and $31 million to other net liabilities. The allocation of the fair values had an immaterial impact on operating results in periods following the initial July 15, 2015 closing date. We recorded the non-compete and consulting agreements as prepaid contracts within other current and non-current assets and they are amortized into net earnings over the contract terms. For the nine months ended September 30, 2016, the acquisition added $71 million in incremental net revenues and $5 million in incremental operating income. For the three and nine months ended September 30, 2015, the acquisition added $70 million in incremental revenues and $16 million in incremental operating income. Within selling, general and administrative expenses, we recorded integration costs of $6 million for the nine months ended September 30, 2016 and $4 million for the three months and $5 million for the nine months ended September 30, 2015. We also recorded acquisition costs of $6 million for the three months and $7 million for the nine months ended September 30, 2015. On April 23, 2015, we completed the divestiture of our 50% equity interest in AGF, our Japanese coffee joint venture, to our joint venture partner, which generated cash proceeds of 27 billion Japanese yen ($225 million as of April 23, 2015) and a pre-tax gain of $13 million (after-tax loss of $9 million) in the second quarter of 2015. 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. The operating results of the divestiture were not material to our condensed consolidated financial statements for the three and nine months ended September 30, 2015. On February 16, 2015, we acquired a U.S. snack food 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 of 2015, we 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 for the three and nine months ended September 30, 2016 and 2015. Sales of Property: In the nine months ended September 30, 2016, we sold property within our North America segment and from our centrally held corporate assets. In the third quarter, we sold property in North America that generated cash proceeds of $10 million and a pre-tax gain of $6 million and we sold a corporate aircraft hangar that generated cash proceeds of $3 million and a pre-tax gain of $1 million. In the second quarter of 2016, we also sold separate property in North America that generated cash proceeds of $40 million and a pre-tax gain of $33 million and we sold a corporate aircraft that generated cash proceeds of $20 million and a pre-tax gain of $6 million. The gains were recorded within selling, general and administrative expenses and cash proceeds were recorded in cash flows from other investing activities in the nine months ended September 30, 2016. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of September 30, As of December 31, 2016 2015 (in millions) Raw materials $ 819 $ 782 Finished product 2,063 1,930 2,882 2,712 Inventory reserves (106 ) (103 ) Inventories, net $ 2,776 $ 2,609 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment Property, plant and equipment consisted of the following: As of September 30, As of December 31, 2016 2015 (in millions) Land and land improvements $ 502 $ 495 Buildings and building improvements 2,872 2,753 Machinery and equipment 10,411 10,044 Construction in progress 1,383 1,262 15,168 14,554 Accumulated depreciation (6,703 ) (6,192 ) Property, plant and equipment, net $ 8,465 $ 8,362 Capital expenditures of $909 million for the nine months ended September 30, 2016 exclude $274 million of accrued capital expenditures remaining unpaid at September 30, 2016 and include payment for $322 million of capital expenditures that were accrued and unpaid at December 31, 2015. In connection with our restructuring program, we recorded non-cash asset write-downs (including accelerated depreciation and asset impairments) of $120 million in the three months and $233 million in the nine months ended September 30, 2016 and $56 million in the three months and $191 million in the nine months ended September 30, 2015 (see Note 6, 2014-2018 Restructuring Program For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Latin America $ 3 $ 6 $ 16 $ 40 Asia Pacific 6 18 24 46 EEMEA 10 2 16 4 Europe 42 14 77 51 North America 59 16 98 50 Corporate – – 2 – Total non-cash asset write-downs $ 120 $ 56 $ 233 $ 191 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill by reportable segment was: As of September 30, As of December 31, 2016 2015 (in millions) Latin America $ 917 $ 858 Asia Pacific 2,489 2,520 EEMEA 1,337 1,304 Europe 7,107 7,117 North America 8,901 8,865 Goodwill $ 20,751 $ 20,664 Intangible assets consisted of the following: As of September 30, As of December 31, 2016 2015 (in millions) Non-amortizable intangible assets $ 17,603 $ 17,527 Amortizable intangible assets 2,340 2,320 19,943 19,847 Accumulated amortization (1,222 ) (1,079 ) Intangible assets, net $ 18,721 $ 18,768 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 $44 million in the three months and $132 million in the nine months ended September 30, 2016 and $45 million in the three months and $137 million in the nine months ended September 30, 2015. We currently estimate annual amortization expense for each of the next five years to be approximately $185 million, estimated using September 30, 2016 exchange rates. Changes in goodwill and intangible assets consisted of: Intangible Goodwill Assets, at cost (in millions) Balance at January 1, 2016 $ 20,664 $ 19,847 Changes due to: Currency 163 48 Acquisition (76 ) 86 Asset impairments – (30 ) Sale of business and assets – (8 ) Balance at September 30, 2016 $ 20,751 $ 19,943 Changes to goodwill and intangibles were: • Acquisition – During the first nine months of 2016, in connection with the acquisition of a biscuit operation in Vietnam, we recorded a final allocation of the consideration paid including $25 million of amortizable intangible assets and $61 million of non-amortizable intangible assets. Intangible assets acquired included trademarks and customer-related intangibles with definite and indefinite lives. A preliminary goodwill balance recorded in the third quarter of 2015 was adjusted during the first nine months of 2016 to reflect intangible asset and other asset fair valuations. See Note 2, Divestitures and Acquisitions – Other Divestitures and Acquisitions • Asset impairments – During the nine months ended September 30, 2016, in connection with our global supply chain reinvention initiatives, we made a determination to discontinue manufacturing a candy product that resulted in a $7 million impairment charge in our North America segment, we discontinued one biscuit product that resulted in a $4 million intangible asset impairment charge in our EEMEA segment and we recorded $19 million of impairment charges related to two gum & candy trademarks in our Europe segment, both related to the planned sale of a confectionery business in France (see Note 2, Divestitures and Acquisitions – Other Divestitures and Acquisitions • Sale of business and assets – During the first nine months of 2016, we sold $8 million of non-amortizable intangible assets in Finland. See Note 2, Divestitures and Acquisitions During our 2015 annual testing of non-amortizable intangible assets, we recorded $71 million of impairment charges in the three months ended December 31, 2015 related to four trademarks in Asia Pacific, Europe and Latin America. We also noted seven brands, including the four impaired trademarks, with $598 million of aggregate book value as of December 31, 2015 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. |
2014-2018 Restructuring Program
2014-2018 Restructuring Program | 9 Months Ended |
Sep. 30, 2016 | |
2014-2018 Restructuring Program | Note 6. 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. On August 31, 2016, our Board of Directors approved a reallocation within the program of $600 million of previously approved capital expenditures to be spent on restructuring program cash costs, resulting in $3.1 billion of cash costs to be expensed and up to $1.6 billion of capital expenditures. There was no change to the total $5.7 billion of total program costs and no change to the total $4.7 billion of cash outlays. The primary objective of the 2014-2018 Restructuring Program is to reduce our operating cost structure in both our supply chain and overhead costs. The program is intended primarily to cover severance as well as asset disposals and other manufacturing-related one-time costs. Since inception, we have incurred total restructuring and related implementation charges of $2.1 billion related to the 2014-2018 Restructuring Program. We have incurred the majority of the program’s charges through the third quarter of 2016 and we expect to complete the program by year-end 2018. Restructuring Costs We recorded restructuring charges of $187 million in the three months and $480 million in the nine months ended September 30, 2016 and $146 million in the three months and $442 million in the nine months ended September 30, 2015 within asset impairment and exit costs. The activity for the 2014-2018 Restructuring Program liability for the nine months ended September 30, 2016 was: Severance and related Asset costs Write-downs Total (in millions) Liability balance, January 1, 2016 $ 395 $ – $ 395 Charges 246 234 480 Cash spent (249 ) – (249 ) Non-cash settlements / adjustments (10 ) (234 ) (244 ) Currency 7 – 7 Liability balance, September 30, 2016 $ 389 $ – $ 389 We spent $89 million in the three months and $249 million in the nine months ended September 30, 2016 and $51 million in the three months and $156 million in the nine months ended September 30, 2015 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 $114 million in the three months and $286 million in the nine months ended September 30, 2016 and $75 million in the three months and $185 million in the nine months ended September 30, 2015. We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs in Operating Income: During the three and nine months ended September 30, 2016 and 2015 and since inception of the 2014-2018 Restructuring Program, we recorded restructuring and implementation costs within operating income as follows: Latin Asia North America Pacific EEMEA Europe America (1) Corporate (2) Total (in millions) For the Three Months Ended Restructuring Costs $ 27 $ 10 $ 6 $ 69 $ 75 $ – $ 187 Implementation Costs 15 7 2 45 30 15 114 Total $ 42 $ 17 $ 8 $ 114 $ 105 $ 15 $ 301 For the Nine Months Ended Restructuring Costs $ 71 $ 51 $ 37 $ 172 $ 144 $ 5 $ 480 Implementation Costs 34 18 13 74 101 46 286 Total $ 105 $ 69 $ 50 $ 246 $ 245 $ 51 $ 766 For the Three Months Ended Restructuring Costs $ 30 $ 33 $ 7 $ 35 $ 39 $ 2 $ 146 Implementation Costs 6 3 1 19 19 27 75 Total $ 36 $ 36 $ 8 $ 54 $ 58 $ 29 $ 221 For the Nine Months Ended Restructuring Costs $ 79 $ 78 $ 21 $ 190 $ 70 $ 4 $ 442 Implementation Costs 27 12 7 47 40 52 185 Total $ 106 $ 90 $ 28 $ 237 $ 110 $ 56 $ 627 Total Project 2014-2016 (3) Restructuring Costs $ 297 $ 199 $ 120 $ 491 $ 313 $ 45 $ 1,465 Implementation Costs 89 47 28 184 177 159 684 Total $ 386 $ 246 $ 148 $ 675 $ 490 $ 204 $ 2,149 (1) During the nine months ended September 30, 2016, our North America region implementation costs included incremental costs that we incurred related to re-negotiating collective bargaining agreements that expired at the end of February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. We expect to incur additional costs related to these activities in the fourth quarter of 2016. (2) Includes adjustment for rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through September 30, 2016. |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 9 Months Ended |
Sep. 30, 2016 | |
Debt and Borrowing Arrangements | Note 7. Debt and Borrowing Arrangements Short-Term Borrowings: Our short-term borrowings and related weighted-average interest rates consisted of: As of September 30, 2016 As of December 31, 2015 Amount Weighted- Amount Weighted- Outstanding Average Rate Outstanding Average Rate (in millions) (in millions) Commercial paper $ 2,175 0.8% $ – 0.0% Bank loans 315 8.9% 236 9.5% Total short-term borrowings $ 2,490 $ 236 As of September 30, 2016, the commercial paper issued and outstanding had between 3 and 88 days remaining to maturity. Bank loans include borrowings on primarily uncommitted credit lines maintained by some of our international subsidiaries to meet short-term working capital needs. Borrowing Arrangements: We maintain a $4.5 billion multi-year senior unsecured revolving credit facility for general corporate purposes, including working capital needs, and to support our commercial paper program. On October 14, 2016, the revolving credit agreement, which was scheduled to expire on October 11, 2018, was extended through October 11, 2021. The revolving credit agreement includes a covenant that we maintain a minimum shareholders’ equity of at least $24.6 billion, excluding accumulated other comprehensive earnings / (losses) and the cumulative effects of any changes in accounting principles. At September 30, 2016, we complied with this covenant as our shareholders’ equity, as defined by the covenant, was $37.2 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 September 30, 2016, 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 $1.8 billion at September 30, 2016 and $1.9 billion at December 31, 2015. Borrowings on these lines amounted to $315 million at September 30, 2016 and $236 million at December 31, 2015. Long-Term Debt: On October 17, 2016, we announced a cash tender offer to retire some of our long-term debt. We expect to complete the tender in the fourth quarter of 2016. We have not yet determined the notes to be retired and the full impact to our operating results. We expect to finance the repurchase of these notes, including the payment of accrued interest and other costs incurred, from net proceeds received from the $3.75 billion note issuance, expected to close on October 28, 2016, and the term loans, both described below. On October 19, 2016, Mondelez International Holdings Netherlands B.V. (“MIHN”), a wholly owned subsidiary of Mondelēz International, Inc., launched an offering of $3.75 billion of notes, guaranteed by Mondelēz International, Inc. The $1.75 billion of 1.625% notes and the $500 million of floating rate notes will mature on October 28, 2019 and the $1.5 billion of 2.0% notes will mature on October 28, 2021. On October 28, 2016, we expect to receive proceeds, net of discounts and associated financing costs, of $3.73 billion. Proceeds from the notes issuance will be used for general corporate purposes, including to grant loans or make distributions to Mondelēz International, Inc. or its subsidiaries to fund all or a portion of the October 2016 cash tender offer and near-term debt maturities. We expect to amortize deferred financing costs into interest expense over the life of the notes. We entered into cross-currency swaps, serving as cash flow hedges, so that the U.S. dollar-denominated debt payments will effectively be paid in euros over the life of the debt. On October 14, 2016, MIHN executed a $1.5 billion bank term loan facility. The loan facility consists of two $750 million loans, one with a three-year maturity and the other with a five-year maturity. The term loans can be drawn at any time for 60 days after signing. On October 25, 2016, we gave notice of our intent to fully draw on the loan with a five-year maturity, and we expect funding to occur on October 28, 2016. Proceeds from the $750 million term loan may be used for general corporate purposes, including funding of the tender offer or other debt. On October 25, 2016, we also gave notice of our intent to terminate the $750 million loan with the three-year maturity. On February 9, 2016, $1,750 million of our 4.125% U.S. dollar notes matured. The notes and accrued interest to date were paid with net proceeds from the fr € On January 26, 2016, we issued fr • fr • fr We received proceeds, net of premiums and deferred financing costs, of $398 million that were used to partially fund the February 2016 note maturity and for other general corporate purposes. We recorded approximately $1 million of premiums and deferred financing costs, which will be amortized into interest expense over the life of the notes. On January 21, 2016, we issued € Our weighted-average interest rate on our total debt was 3.1% as of September 30, 2016, following the refinancing of the February 9, 2016 debt maturity. Our weighted-average interest rate on our total debt was 3.7% as of December 31, 2015, down from 4.3% as of December 31, 2014. Fair Value of Our Debt: The fair value of our short-term borrowings at September 30, 2016 and December 31, 2015 reflects current market interest rates and approximates the amounts we have recorded on our condensed 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 September 30, 2016, the aggregate fair value of our total debt was $18,616 million and its carrying value was $17,106 million. At December 31, 2015, the aggregate fair value of our total debt was $15,908 million and its carrying value was $15,398 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Interest expense, debt $ 129 $ 139 $ 400 $ 461 Loss on debt extinguishment and related expenses – – – 713 JDE coffee business transactions currency-related net gain – (29 ) – (436 ) Loss related to interest rate swaps – – 97 34 Other expense, net 16 4 43 42 Interest and other expense, net $ 145 $ 114 $ 540 $ 814 See Note 2, Divestitures and Acquisitions, Financial Instruments, Financial Instruments |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Financial Instruments | Note 8. Financial Instruments Fair Value of Derivative Instruments: Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of September 30, 2016 As of December 31, 2015 Asset Liability Asset Liability Derivatives Derivatives Derivatives Derivatives (in millions) Derivatives designated as Currency exchange contracts $ 4 $ 8 $ 20 $ 7 Commodity contracts 38 16 37 35 Interest rate contracts 10 16 12 57 $ 52 $ 40 $ 69 $ 99 Derivatives not designated as Currency exchange contracts $ 14 $ 57 $ 61 $ 33 Commodity contracts 52 47 70 56 Interest rate contracts 29 20 43 28 $ 95 $ 124 $ 174 $ 117 Total fair value $ 147 $ 164 $ 243 $ 216 During the first nine months of 2016 and 2015, derivatives designated as accounting hedges include cash flow and fair value hedges and derivatives not designated as accounting hedges include economic hedges. Non-U.S. dollar denominated debt designated as a hedge of our net investments in non-U.S. operations is not reflected in the table above, but is included in long-term debt summarized in Note 7, Debt and Borrowing Arrangements The fair values (asset / (liability)) of our derivative instruments were determined using: As of September 30, 2016 Quoted Prices in Active Markets Significant Significant Total for Identical Other Observable Unobservable Fair Value of Net Assets Inputs Inputs Asset / (Liability) (Level 1) (Level 2) (Level 3) (in millions) Currency exchange contracts $ (47 ) $ – $ (47 ) $ – Commodity contracts 27 17 10 – Interest rate contracts 3 – 3 – Total derivatives $ (17 ) $ 17 $ (34 ) $ – As of December 31, 2015 Quoted Prices in Active Markets Significant Significant Total for Identical Other Observable Unobservable Fair Value of Net Assets Inputs Inputs Asset / (Liability) (Level 1) (Level 2) (Level 3) (in millions) Currency exchange contracts $ 41 $ – $ 41 $ – Commodity contracts 16 29 (13 ) – Interest rate contracts (30 ) – (30 ) – Total derivatives $ 27 $ 29 $ (2 ) $ – 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 $16 million as of September 30, 2016 and margin deposits of $22 million as of December 31, 2015 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 asset position, our counterparties would owe us a total of $32 million as of September 30, 2016 and $52 million as of December 31, 2015. For derivatives we have in a net liability position, we would owe less than $1 million as of September 30, 2016. As of December 31, 2015, there were no Level 1 derivatives in a net liability position. 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 $36 million as of September 30, 2016 and $101 million as of December 31, 2015, and for derivatives we have in a net asset position, our counterparties would owe us a total of $54 million as of September 30, 2016 and $64 million as of December 31, 2015. 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 September 30, As of December 31, 2016 2015 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,211 $ 4,148 Forecasted transactions 1,318 1,094 Commodity contracts 654 732 Interest rate contracts 2,050 3,033 Net investment hedge – euro notes 5,280 4,345 Net investment hedge – pound sterling notes 1,236 1,404 Net investment hedge – Swiss franc notes 1,518 1,073 Cash Flow Hedges: Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings / (losses) included: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Accumulated gain / (loss) at $ (36 ) $ (53 ) $ (45 ) $ (2 ) Transfer of realized losses / (gains) (2 ) 60 64 6 Unrealized gain / (loss) in fair value 4 (69 ) (53 ) (66 ) Accumulated gain / (loss) at $ (34 ) $ (62 ) $ (34 ) $ (62 ) After-tax gains / (losses) reclassified from accumulated other comprehensive earnings / (losses) into net earnings were: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Currency exchange contracts – forecasted transactions $ (6 ) $ (11 ) $ (3 ) $ 73 Commodity contracts 8 (49 ) (1 ) (53 ) Interest rate contracts – – (60 ) (26 ) Total $ 2 $ (60 ) $ (64 ) $ (6 ) After-tax gains / (losses) recognized in other comprehensive earnings / (losses) were: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Currency exchange contracts – forecasted transactions $ (11 ) $ 8 $ (21 ) $ 33 Commodity contracts 10 (38 ) 19 (61 ) Interest rate contracts 5 (39 ) (51 ) (38 ) Total $ 4 $ (69 ) $ (53 ) $ (66 ) Cash flow hedge ineffectiveness was not material for all periods presented. Within interest and other expense, net, we recorded pre-tax losses of $97 million in the first quarter of 2016 and $34 million in the first quarter of 2015 related to amounts excluded from effectiveness testing. These amounts relate to interest rate swaps no longer designated as cash flow hedges due to changes in financing plans. Due to lower overall costs and our decision to hedge a greater portion of our net investments in operations that use currencies other than the U.S. dollar as their functional currencies, our plans to issue U.S. dollar-denominated debt changed and we instead issued euro and Swiss franc-denominated notes in the current year first quarter, and euro, British pound sterling and Swiss franc-denominated notes in the prior-year first quarter. Amounts excluded from effectiveness testing were not material for the third quarter of 2016 and 2015. 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 gains of $11 million (net of taxes) for commodity cash flow hedges, unrealized losses of $11 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 September 30, 2016, we hedged transactions forecasted to impact cash flows over the following periods: • commodity transactions for periods not exceeding the next 15 months; • interest rate transactions for periods not exceeding the next 7 years and 2 months; and • currency exchange transactions for periods not exceeding the next 15 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Derivatives $ (11 ) $ 4 $ (2 ) $ 8 Borrowings 11 (4 ) 2 (8 ) 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 Nine Months Ended Gain / (Loss) September 30, September 30, Recognized 2016 2015 2016 2015 in Earnings (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 7 $ 8 $ 18 $ 22 Interest and other Forecasted transactions (14 ) 43 (91 ) 33 Cost of sales Forecasted transactions 2 36 10 437 Interest and other Forecasted transactions 4 5 16 (11 ) Selling, general and Interest rate contracts – – – – Interest and other Commodity contracts (13 ) (99 ) (26 ) (158 ) Cost of sales Total $ (14 ) $ (7 ) $ (73 ) $ 323 In connection with the JDE coffee business transactions, we entered into a number of consecutive euro to U.S. dollar currency exchange forward contracts in 2015 to lock in an equivalent expected value in U.S. dollars. The mark-to-market gains and losses on the derivatives were recorded in earnings. We recorded net gains of $29 million for the three months and $436 million for the nine months ended September 30, 2015 within interest and other expense, net in connection with the forward contracts and the transferring of proceeds to our subsidiaries where coffee net assets and shares were deconsolidated. The currency hedge and related gains and losses were recorded within interest and other expense, net. See Note 2, Divestitures and Acquisitions — JDE Coffee Business Transactions 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: Location of For the Three Months Ended For the Nine Months Ended Gain / (Loss) September 30, September 30, Recognized in 2016 2015 2016 2015 AOCI (in millions) Euro notes $ (38 ) $ (8 ) $ (110 ) $ 188 Currency Pound sterling notes 21 30 107 17 Translation Swiss franc notes (4 ) 18 (33 ) (13 ) Adjustment |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Benefit Plans | Note 9. Benefit Plans Pension Plans Components of Net Periodic Pension Cost: Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Service cost $ 15 $ 16 $ 37 $ 44 Interest cost 15 16 57 77 Expected return on plan assets (24 ) (23 ) (105 ) (120 ) Amortization: Net loss from experience differences 12 11 31 33 Prior service cost / (credit) – – – – Settlement losses and other expenses 9 2 – – Net periodic pension cost $ 27 $ 22 $ 20 $ 34 U.S. Plans Non-U.S. Plans For the Nine Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Service cost $ 42 $ 48 $ 114 $ 145 Interest cost 46 50 179 231 Expected return on plan assets (72 ) (70 ) (326 ) (358 ) Amortization: Net loss from experience differences 30 33 93 110 Prior service cost / (credit) 1 1 (2 ) 16 Settlement losses / (gains) and other expenses 25 15 (1 ) – Net periodic pension cost $ 72 $ 77 $ 57 $ 144 Net periodic pension cost decreased in the nine months ended September 30, 2016 due to a combination of factors, including a decreased number of plan participants, changes in discount rates, company contributions to the plans and a change in our approach to measuring service and interest costs. For 2015, we measured service and interest costs utilizing a single weighted-average discount rate derived from the yield curve used to measure the plan obligations. For 2016, we have elected to measure service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows. We believe the new approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. The impact of this change was a decrease in net periodic pension cost of approximately $16 million for the three months and $48 million for the nine months ended September 30, 2016. This change does not affect the measurement of our plan obligations. We have accounted for this change as a change in accounting estimate and, accordingly, have accounted for it on a prospective basis. Net pension costs of our non-U.S. plans in the three and nine months ended September 30, 2016 were also favorably impacted by the reduction in our pension plan obligations due to the JDE coffee business transactions. Prior to the July 2, 2015 closing of the JDE coffee business transactions, certain active employees who transitioned to JDE participated in our non-U.S. pension plans. Following the transactions, benefits began to be provided directly by JDE to participants continuing with JDE. JDE assumed certain pension plan obligations and received the related plan assets. In 2015, we reduced our net benefit plan liabilities by $131 million and the related deferred tax assets by $24 million. Prior to the transactions, for the nine months ended September 30, 2015, amortization of prior service cost includes $17 million of pension curtailment losses related to employees who subsequently transitioned to JDE. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions Settlement losses also include pension settlement losses for employees who elected lump-sum payments in connection with our 2014-2018 Restructuring Program. These settlement losses were $3 million for the three months and $12 million for the nine months ended September 30, 2016 and $1 million for the three months and $7 million for the nine months ended September 30, 2015. See Note 6, 2014-2018 Restructuring Program Employer Contributions: During the nine months ended September 30, 2016, we contributed $169 million (of which, $150 million was voluntarily contributed) to our U.S. plans and $329 million (of which, $100 million was a non-recurring contribution related to merging our and legacy Cadbury plans in the U.K.) to our non-U.S. plans. As of September 30, 2016, we plan to make further contributions of approximately $6 million to our U.S. plans and approximately $50 million to our non-U.S. plans during the remainder of 2016. 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 periodic postretirement health care costs consisted of the following: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Service cost $ 3 $ 4 $ 9 $ 11 Interest cost 6 5 16 17 Amortization: Net loss from experience differences 2 3 5 10 Prior service credit (1) (11 ) (1 ) (14 ) (5 ) Net periodic postretirement health care costs $ – $ 11 $ 16 $ 33 (1) For the three and nine months ended September 30, 2016, amortization of prior service credit includes $8 million of curtailment gain related to a change in the eligibility requirement. Net periodic postretirement health care costs decreased in the three and nine months ended September 30, 2016 due to a combination of factors, including a decreased number of plan participants, changes in discount rates, company contributions to the plans and a change in our approach to measuring service and interest costs. For 2015, we measured service and interest costs utilizing a single weighted-average discount rate derived from the yield curve used to measure the plan obligations. For 2016, we elected to measure service and interest costs by applying the specific spot rates along that yield curve to the plans’ liability cash flows. We believe the new approach provides a more precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rates on the yield curve. The impact of this change was a decrease in net periodic postretirement health care costs of approximately $1 million for the three months and $3 million for the nine months ended September 30, 2016. This change does not affect the measurement of our plan obligations. We have accounted for this change as a change in accounting estimate and, accordingly, have accounted for it on a prospective basis. Postemployment Benefit Plans Net periodic postemployment costs consisted of the following: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Service cost $ 2 $ 2 $ 5 $ 5 Interest cost 1 1 4 4 Net periodic postemployment costs $ 3 $ 3 $ 9 $ 9 |
Stock Plans
Stock Plans | 9 Months Ended |
Sep. 30, 2016 | |
Stock Plans | Note 10. Stock Plans Stock Options: Stock option activity is reflected below: Weighted- Average Average Exercise or Remaining Aggregate Shares Subject Grant Price Contractual Intrinsic to Option Per Share Term Value Balance at January 1, 2016 57,034,108 $ 26.12 6 years $ 229 million Annual grant to eligible employees 7,517,290 39.70 Additional options issued 97,680 43.32 Total options granted 7,614,970 39.75 Options exercised (7,094,555 ) 24.01 $ 139 million Options cancelled (1,735,698 ) 35.39 Balance at September 30, 2016 55,818,825 27.95 6 years $ 252 million Deferred Stock Units, Performance Share Units and Restricted Stock: Historically we have made grants of deferred stock units, performance share units and restricted stock. Beginning in 2016, we only grant deferred stock units and performance share units and no longer grant restricted stock. Our deferred stock unit, performance share unit and restricted stock activity is reflected below: Weighted-Average Weighted-Average Number of Fair Value Aggregate Shares Grant Date Per Share Fair Value Balance at January 1, 2016 9,418,216 $ 28.00 Annual grant to eligible employees: Feb. 22, 2016 Performance share units 1,406,500 39.70 Deferred stock units 1,040,790 39.70 Additional shares granted (1) 755,171 Various 29.51 Total shares granted 3,202,461 37.30 $ 119 million Vested (2) (3,903,681 ) 40.13 $ 157 million Forfeited (2) (1,019,864 ) 37.47 Balance at September 30, 2016 7,697,132 24.46 (1) Includes performance share units and deferred stock units. (2) Includes performance share units, deferred stock units and historically granted restricted stock. Share Repurchase Program: During 2013, our Board of Directors authorized the repurchase of $7.7 billion of our Common Stock through December 31, 2016. 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 program, raising the authorization to $13.7 billion of Common Stock repurchases, and extended the program through December 31, 2018. Repurchases under the program are determined by management and are wholly discretionary. Prior to January 1, 2016, we had repurchased $8.2 billion of Common Stock pursuant to this authorization. During the nine months ended September 30, 2016, we repurchased 42.9 million shares of Common Stock at an average cost of $41.64 per share, or an aggregate cost of $1.8 billion, of which $1.7 billion was paid during the period. All share repurchases were funded through available cash and commercial paper issuances. As of September 30, 2016, we have $3.7 billion in remaining share repurchase capacity. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
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. On February 11, 2016, we received a “Wells” notice from the SEC indicating that the staff has made a preliminary determination to recommend that the SEC file an enforcement action against us for violations of the books and records and internal controls provisions of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), in connection with the investigation. On March 18, 2016, we made a submission to the staff of the SEC in response to the notice. We have engaged in discussions with the SEC and with the U.S. Department of Justice to discuss potential resolution of their respective investigations. We have not reached a settlement to resolve these investigations, and we are unable to predict when or if we can reach a mutually satisfactory resolution. 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 ($56 million as of September 30, 2016) 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 ($88 million as of September 30, 2016). We have appealed this order. In addition, the Excise Authority issued additional show cause notices on February 6, 2015 and December 8, 2015 on the same issue but covering the periods January to October 2014 and November 2014 to September 2015, respectively. These notices added a total of 2.4 billion Indian rupees ($36 million as of September 30, 2016) of unpaid excise taxes as well as penalties to be determined up to an amount equivalent to that claimed by the Excise Authority and interest. We believe that the decision to claim the excise tax benefit is valid and we are continuing to contest the show cause notices through the administrative and judicial process. In April 2013, the staff of the U.S. Commodity Futures Trading Commission (“CFTC”) advised us and Kraft Foods Group that it was investigating activities related to the trading of December 2011 wheat futures contracts that occurred prior to the Spin-Off of Kraft Foods Group. We cooperated with the staff in its investigation. On April 1, 2015, the CFTC filed a complaint against Kraft Foods Group and Mondelēz Global LLC (“Mondelēz Global”) in the U.S. District Court for the Northern District of Illinois, Eastern Division (the “CFTC action”). The complaint alleges that Kraft Foods Group and Mondelēz Global (1) manipulated or attempted to manipulate the wheat markets during the fall of 2011; (2) violated position limit levels for wheat futures and (3) engaged in non-competitive trades by trading both sides of exchange-for-physical Chicago Board of Trade wheat contracts. The CFTC seeks civil monetary penalties of either triple the monetary gain for each violation of the Commodity Exchange Act (the “Act”) or $1 million for each violation of Section 6(c)(1), 6(c)(3) or 9(a)(2) of the Act and $140,000 for each additional violation of the Act, plus post-judgment interest; an order of permanent injunction prohibiting Kraft Foods Group and Mondelēz Global from violating specified provisions of the Act; disgorgement of profits; and costs and fees. In December 2015, the court denied Mondelēz Global and Kraft Foods Group’s motion to dismiss the CFTC’s claims of market manipulation and attempted manipulation, and the parties are now in discovery. Additionally, several class action complaints were filed against Kraft Foods Group and Mondelēz Global in the U.S. District Court for the Northern District of Illinois by investors in wheat futures and options on behalf of themselves and others similarly situated. The complaints make similar allegations as those made in the CFTC action and seek class action certification; an unspecified amount for damages, interest and unjust enrichment; costs and fees; and injunctive, declaratory, and other unspecified relief. In June 2015, these suits were consolidated in the Northern District of Illinois. In June 2016, the court denied Mondelēz Global and Kraft Foods Group’s motion to dismiss, and the parties are now in discovery. It is not possible to predict the outcome of these matters; however, based on our Separation and Distribution Agreement with Kraft Foods Group dated as of September 27, 2012, we expect to predominantly bear any monetary penalties or other payments in connection with the CFTC action. While we cannot predict with certainty the results of any Legal Matters in which we are currently involved, we do not expect that the ultimate costs to resolve any of these Legal Matters, individually or in the aggregate, will have a material effect on our financial results. Third-Party Guarantees: We enter into third-party guarantees primarily to cover the long-term obligations of our vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures. At September 30, 2016, we had no material third-party guarantees recorded on our condensed consolidated balance sheet. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Reclassifications from Accumulated Other Comprehensive Income | Note 12. Reclassifications from Accumulated Other Comprehensive Income The following table summarizes the changes in the accumulated balances of each component of accumulated other comprehensive earnings / (losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings / (losses) to net earnings (net of tax) were net losses of $28 million in the three months and $206 million for the nine months ended September 30, 2016 and $134 million in the three months and $172 million in the nine months ended September 30, 2015. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (7,867 ) $ (6,438 ) $ (8,006 ) $ (5,042 ) Currency translation adjustments attributable to: Translation of international operations (1) 52 (1,149 ) 171 (2,749 ) Pension and other benefit plans 7 46 42 97 Derivatives accounted for as net investment hedges (35 ) 62 (58 ) 303 Noncontrolling interests (2 ) (6 ) (3 ) (22 ) Tax (expense) / benefit 13 (23 ) 21 (111 ) Other comprehensive earnings / (losses) 35 (1,070 ) 173 (2,482 ) Less: portion attributable to noncontrolling interests (2 ) (6 ) (3 ) (22 ) Balance at end of period (7,830 ) (7,502 ) (7,830 ) (7,502 ) Pension and Other Benefit Plans: Balance at beginning of period $ (1,865 ) $ (2,201 ) $ (1,934 ) $ (2,274 ) Net actuarial gain / (loss) arising during period – 127 24 99 Tax (expense) / benefit on net actuarial gain / (loss) – (40 ) (9 ) (35 ) Losses / (gains) reclassified into net earnings: Amortization of experience losses and (2) 30 46 93 165 Settlement losses (2) 10 51 25 64 Tax (expense) / benefit on reclassifications (3) (10 ) (28 ) (34 ) (64 ) Other comprehensive earnings / (losses) 30 156 99 229 Balance at end of period (1,835 ) (2,045 ) (1,835 ) (2,045 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (36 ) $ (53 ) $ (46 ) $ (2 ) Net derivative gains / (losses) 6 (113 ) (78 ) (103 ) Tax (expense) / benefit on net derivative gain / (loss) (2 ) 39 25 36 Losses / (gains) reclassified into net earnings: Currency exchange contracts – (4) 7 13 3 (79 ) Commodity contracts (4) (8 ) 62 7 65 Interest rate contracts (5) – – 96 41 Tax (expense) / benefit on reclassifications (3) (1 ) (10 ) (41 ) (20 ) Other comprehensive earnings / (losses) 2 (9 ) 12 (60 ) Balance at end of period (34 ) (62 ) (34 ) (62 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (9,768 ) $ (8,692 ) $ (9,986 ) $ (7,318 ) Total other comprehensive earnings / (losses) 67 (923 ) 284 (2,313 ) Less: portion attributable to noncontrolling interests (2 ) (6 ) (3 ) (22 ) Other comprehensive earnings / (losses) attributable to Mondelēz International 69 (917 ) 287 (2,291 ) Balance at end of period $ (9,699 ) $ (9,609 ) $ (9,699 ) $ (9,609 ) (1) For the nine months ended September 30, 2016 includes $57 million of historical cumulative transaction adjustments reclassified to net earnings within the gain on equity method investment exchange in the first quarter. See Note 2, Divestitures and Acquisitions – Keurig Transaction (2) These reclassified gains or losses are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans (3) Taxes related to reclassified gains or losses are recorded within the provision for income taxes. (4) These reclassified gains or losses are recorded within cost of sales. (5) These reclassified gains or losses are recorded within interest and other expense, net. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes | Note 13. Income Taxes Based on current tax laws, our estimated annual effective tax rate for 2016 is 20.8%, reflecting favorable impacts from the mix of pre-tax income in various non-U.S. tax jurisdictions. Our 2016 third quarter effective tax rate of 7.2% includes net benefit from discrete one-time events of $60 million, mainly due to $35 million from expirations of statutes of limitations and favorable audit settlements in several jurisdictions and a $17 million benefit from the reduction of U.K. net deferred tax liabilities resulting from tax legislation enacted during 2016 Q3 that reduced the U.K. corporate income tax rate. Our effective tax rate for the nine months ended September 30, 2016 of 13.6% was favorably impacted by net tax benefit from $109 million of discrete one-time events. The discrete net tax benefit primarily consisted of benefits of $73 million due to expirations of statutes of limitations and favorable audit settlements in several jurisdictions and a $17 million benefit from the reduction of U.K. net deferred tax liabilities resulting from tax legislation enacted during the third quarter of 2016 that reduced the U.K. corporate income tax rate. As of the third quarter of 2015, our estimated annual effective tax rate for 2015 was 23.1%, reflecting favorable impacts from the mix of pre-tax income in various non-U.S. tax jurisdictions. Our 2015 third quarter effective tax rate of 4.5% benefitted from the one-time third quarter sale of our coffee business that resulted in a pre-tax gain of $7,122 million and $197 million of related tax expense, as well as $21 million of tax costs incurred to remit proceeds up from lower-tier foreign subsidiaries to allow cash to be redeployed within our retained foreign operations. Other discrete one-time events, which partially offset the costs associated with the sale of our coffee business, of $40 million primarily related to favorable audit settlements and expirations of statutes of limitations in several jurisdictions. Our effective tax rate for the nine months ended September 30, 2015 of 6.5% was favorably impacted by the sale of our coffee business in the third quarter. Other significant discrete one-time events 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), and $75 million from favorable audit settlements and expirations of statutes of limitations in several jurisdictions. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share | Note 14. Earnings Per Share Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions, except per share data) Net earnings $ 548 $ 7,268 $ 1,576 $ 8,007 Noncontrolling interest earnings – (2 ) (10 ) (11 ) Net earnings attributable to $ 548 $ 7,266 $ 1,566 $ 7,996 Weighted-average shares for basic EPS 1,557 1,609 1,561 1,627 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 19 20 18 19 Weighted-average shares for diluted EPS 1,576 1,629 1,579 1,646 Basic earnings per share attributable to $ 0.35 $ 4.52 $ 1.00 $ 4.91 Diluted earnings per share attributable to $ 0.35 $ 4.46 $ 0.99 $ 4.86 We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We excluded antidilutive stock options of 4.3 million for the three months and 7.7 million for the nine months ended September 30, 2016 and less than 1 million for the three months and 10.8 million for the nine months ended September 30, 2015. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting | Note 15. Segment Reporting We manufacture and market primarily snack food products, including biscuits (cookies, crackers and salted snacks), chocolate, gum & candy and various cheese & grocery products, as well as powdered beverage products. We manage our global business and report operating results through geographic units. Our operations and management structure are organized into five reportable operating segments: • Latin America • Asia Pacific • EEMEA • Europe • North America On October 1, 2016, we integrated our EEMEA business into our Europe and Asia Pacific segments. Russia, Ukraine, Turkey, Belarus, Georgia and Kazakhstan were combined within our Europe operating segment, while the remaining Middle East and African countries were combined within our Asia Pacific operating segment to form a new Asia, Middle East and Africa (“AMEA”) regional operating segment. We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise in our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions. Historically, we have recorded income from equity method investments within our operating income as these investments were part of our base business. Beginning in the third quarter of 2015, to align with the accounting for our new coffee equity method investment in JDE, we began to record the earnings from our equity method investments in equity method investment earnings outside of segment operating income. Within segment operating income, equity method investment net earnings were $56 million for the nine months ended September 30, 2015, including $49 million in Asia Pacific, $3 million in EEMEA and $4 million in North America. See Note 1, Basis of Presentation – Principles of Consolidation, Divestitures and Acquisitions 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, gain on the JDE coffee business transactions, loss on deconsolidation of Venezuela 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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Net revenues: Latin America (1) $ 868 $ 1,233 $ 2,528 $ 3,730 Asia Pacific (2) 1,128 1,101 3,278 3,278 EEMEA (2) 543 586 1,738 2,150 Europe (2) 2,104 2,173 6,461 7,963 North America 1,753 1,756 5,148 5,151 Net revenues $ 6,396 $ 6,849 $ 19,153 $ 22,272 (1) Net revenues of $315 million for the three months and $834 million for the nine months ended September 30, 2015 from our Venezuelan subsidiaries are included in our condensed consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our condensed consolidated financial statements. Refer to Note 1, Basis of Presentation – Currency Translation and Highly Inflationary Accounting: Venezuela, (2) On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segments. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Earnings before income taxes: Operating income: Latin America $ 92 $ 134 $ 191 $ 422 Asia Pacific 135 71 378 321 EEMEA 44 52 154 184 Europe 302 298 896 885 North America 274 275 840 817 Unrealized gains / (losses) on hedging activities (mark-to-market impacts) (12 ) (4 ) (49 ) 75 General corporate expenses (89 ) (95 ) (216 ) (240 ) Amortization of intangibles (44 ) (45 ) (132 ) (137 ) Gains on JDE coffee business transactions and divestiture – 7,122 – 7,135 Acquisition-related costs – (6 ) – (8 ) Operating income 702 7,802 2,062 9,454 Interest and other expense, net (145 ) (114 ) (540 ) (814 ) Earnings before income taxes $ 557 $ 7,688 $ 1,522 $ 8,640 Items impacting our segment operating results are discussed in Note 1, Basis of Presentation, Divestitures and Acquisitions, Goodwill and Intangible Assets, 2014-2018 Restructuring Program Debt and Borrowing Arrangements Financial Instruments, Net revenues by product category were: For the Three Months Ended September 30, 2016 Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 191 $ 360 $ 125 $ 608 $ 1,403 $ 2,687 Chocolate 185 388 223 1,021 65 1,882 Gum & Candy 247 174 120 163 285 989 Beverages (1) 164 77 31 36 – 308 Cheese & Grocery 81 129 44 276 – 530 Total net revenues $ 868 $ 1,128 $ 543 $ 2,104 $ 1,753 $ 6,396 For the Three Months Ended September 30, 2015 Latin Asia North America (2) Pacific EEMEA Europe (3) America Total (in millions) Biscuits $ 431 $ 356 $ 125 $ 592 $ 1,403 $ 2,907 Chocolate 184 370 232 1,074 64 1,924 Gum & Candy 262 171 134 177 289 1,033 Beverages (1) 178 76 45 43 – 342 Cheese & Grocery 178 128 50 287 – 643 Total net revenues $ 1,233 $ 1,101 $ 586 $ 2,173 $ 1,756 $ 6,849 For the Nine Months Ended September 30, 2016 Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 551 $ 991 $ 379 $ 1,848 $ 4,162 $ 7,931 Chocolate 562 1,088 549 3,124 153 5,476 Gum & Candy 713 538 383 512 833 2,979 Beverages (1) 466 285 229 123 – 1,103 Cheese & Grocery 236 376 198 854 – 1,664 Total net revenues $ 2,528 $ 3,278 $ 1,738 $ 6,461 $ 5,148 $ 19,153 For the Nine Months Ended September 30, 2015 Latin Asia North America (2) Pacific EEMEA Europe (3) America Total (in millions) Biscuits $ 1,147 $ 940 $ 396 $ 1,828 $ 4,161 $ 8,472 Chocolate 680 1,074 627 3,204 161 5,746 Gum & Candy 852 550 418 558 829 3,207 Beverages (1) 570 324 502 1,493 – 2,889 Cheese & Grocery 481 390 207 880 – 1,958 Total net revenues $ 3,730 $ 3,278 $ 2,150 $ 7,963 $ 5,151 $ 22,272 (1) On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segment beverage categories. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions (2) Our Venezuelan subsidiaries net revenues of $209 million in biscuits, $95 million in cheese & grocery, $6 million in beverages and $5 million in gum & candy for the three months and $496 million in biscuits, $231 million in cheese & grocery, $66 million in gum & candy and $41 million in beverages for the nine months ended September 30, 2015 are included in our condensed consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our condensed consolidated financial statements. Refer to Note 1, Basis of Presentation – Currency Translation and Highly Inflationary Accounting: Venezuela, (3) During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2015 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 |
Principles of Consolidation | Principles of Consolidation: As of the close of the fourth quarter of 2015, we deconsolidated our Venezuelan operations from our consolidated financial statements. As such, the results of our Venezuelan subsidiaries are not included in our condensed consolidated financial statements for the three and nine months ended September 30, 2016. The operating results of our Venezuelan subsidiaries are included in our condensed consolidated financial statements for the three and nine months ended September 30, 2015. See Currency Translation and Highly Inflationary Accounting: Venezuela On July 2, 2015, we contributed our global coffee businesses to a new company, Jacobs Douwe Egberts (“JDE”), in which we now hold an equity interest (collectively, the “JDE coffee business transactions”). Historically, our coffee businesses and the income from equity method investments were recorded within our operating income as these businesses were part of our base business. While we retain an ongoing interest in coffee through equity method investments including JDE, Keurig Green Mountain Inc. (“Keurig”) and Dongsuh Foods Corporation (“DSF”), and we have significant influence with our equity method investments, we do not control these operations directly. As such, in the third quarter of 2015, we began to recognize equity method investment earnings, consisting primarily of investments in coffee businesses, outside of operating income and segment income. For periods prior to the third quarter of 2015, our historical coffee business and equity method investment earnings were included within our operating income and segment income. Please see Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions Keurig Transaction Segment Reporting |
Currency Translation and Highly Inflationary Accounting | Currency Translation and Highly Inflationary Accounting We translate the results of operations of our subsidiaries from multiple currencies using average exchange rates during each period and translate balance sheet accounts using exchange rates at the end of each period. We record currency translation adjustments as a component of equity (except for highly inflationary currencies) and realized exchange gains and losses on transactions in earnings. United Kingdom. Brexit has caused volatility in global stock markets and currency exchange rates, affecting the markets in which we operate. The implications of Brexit could adversely affect demand for our products, our financial results and operations, and our relationships with customers, suppliers and employees in the short or long-term. On June 24, 2016, the value of the British pound sterling relative to the U.S. dollar fell by 9%. Since that date, the value of the British pound sterling relative to the U.S. dollar declined an additional 5% through September 30, 2016. Further volatility in the exchange rate is expected over the transition period. As the business operating environment remains uncertain, we continue to monitor our investments and currency exposures abroad. As the U.K. is not a highly-inflationary economy, we record currency translation adjustments within equity and realized exchange gains and losses on transactions in earnings. While we did not experience significant business disruptions in our U.K. businesses immediately following the referendum, the devaluation of the British pound sterling in late June adversely affected our translated results reported in U.S. dollars. We have a natural hedge in the form of pound sterling-denominated debt that acts as a net investment hedge, moving counter to adverse pound sterling currency translation impacts. British pound sterling currency transaction risks are largely mitigated due to our global chocolate businesses buying cocoa in British pound sterling. Our U.K. operations contributed $505 million, or 7.9% of consolidated net revenues in the three months and $1.6 billion, or 8.4% of consolidated net revenues in the nine months ended September 30, 2016. Venezuela. Effective as of the close of the 2015 fiscal year, we concluded that we no longer met the accounting criteria for consolidation of our Venezuelan subsidiaries due to a loss of control over our Venezuelan operations and an other-than-temporary lack of currency exchangeability. During the fourth quarter of 2015, representatives of the Venezuelan government arbitrarily imposed pricing restrictions on our local operations that resulted in our inability to recover operating costs. We immediately began an appeal process with the Venezuelan authorities to demonstrate that our pricing was in line with the regulatory requirements. In January 2016, local officials communicated that some of the pricing restrictions had been lifted; however, the legally required administrative order had not been issued and it was uncertain when it would be issued. The legal and regulatory environment also became more unreliable. While we had been complying with the Venezuelan law governing pricing and profitability controls and followed the legal process for appeal, the appeal process was not available to us as outlined under law. Additionally, we were increasingly facing issues procuring raw materials and packaging. Taken together, these actions, the economic environment in Venezuela and the progressively limited access to dollars to import goods through the use of any of the available currency mechanisms impaired our ability to operate and control our Venezuelan businesses. As a result of these factors, we concluded that we no longer met the criteria for the consolidation of our Venezuelan subsidiaries. As of the close of the 2015 fiscal year, we deconsolidated and changed to the cost method of accounting for our Venezuelan operations. We recorded a $778 million pre-tax loss on December 31, 2015 as we reduced the value of our cost method investment in Venezuela and all Venezuelan receivables held by our other subsidiaries to realizable fair value, resulting in full impairment. The recorded loss also included historical cumulative translation adjustments related to our Venezuelan operations that had previously been recorded in accumulated other comprehensive losses within equity. The fair value of our investments in our Venezuelan subsidiaries was estimated based on discounted cash flow projections of current and expected operating losses in the foreseeable future and our ability to operate the business on a sustainable basis. Our fair value estimate included U.S. dollar exchange and discount rate assumptions that reflect the inflation and economic uncertainty in Venezuela. Beginning in 2016, we no longer include net revenues, earnings or net assets of our Venezuelan subsidiaries within our condensed consolidated financial statements. Under the cost method of accounting, earnings are only recognized to the extent cash is received. Given the current and ongoing difficult economic, regulatory and business environment in Venezuela, there continues to be significant uncertainty related to our operations in Venezuela, and we expect these conditions will continue for the foreseeable future. We will monitor the extent of our ability to control our Venezuelan operations and the liquidity and availability of U.S. dollars at different rates, including the changes to the currency exchange systems in March 2016, as our current situation in Venezuela may change over time and lead to consolidation at a future date. We recorded no revenues, earnings or other financial results from our Venezuelan subsidiaries during the three and nine months ended September 30, 2016, and we continue to monitor the business, economic and regulatory climate in Venezuela. For the three and nine months ended September 30, 2015, the operating results of our Venezuelan operations were included in our condensed consolidated statements of earnings. During the first quarter of 2015, we recognized an $11 million currency-related remeasurement loss resulting from a devaluation of the Venezuela bolivar exchange rate we historically used to source U.S. dollars for purchases of imported raw materials, packaging and other goods and services. The following table sets forth net revenues and operating income (including the impact of remeasurement losses) for our Venezuelan operations for the three and nine months ended September 30, 2015: Venezuela operations Three Months Ended September 30, 2015 Net revenues $315 million or 4.6% of consolidated net revenues Operating income $73 million or 0.9% of consolidated operating income Nine Months Ended September 30, 2015 Net revenues $834 million or 3.7% of consolidated net revenues Operating income $188 million or 2.0% of consolidated operating income Argentina. Other Countries. |
Transfers of Financial Assets | Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have a factoring arrangement with a major global bank for a maximum combined capacity of $820 million. Under the program, we may sell eligible short-term trade receivables to the bank in exchange for cash. We then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the bank. We also enter into arrangements with customers to achieve earlier collection of receivables. The incremental cost of factoring receivables for all regions was $2 million in the three months and $6 million in the nine months ended September 30, 2016 and $1 million in the three months and $4 million in the nine months ended September 30, 2015 and was recorded in net revenue. The outstanding principal amount of receivables under these arrangements amounted to $589 million as of September 30, 2016 and $401 million as of September 30, 2015. |
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 $19 million on net revenues and $9 million on operating income in the three months and $57 million on net revenues and $27 million on operating income in the nine months ended September 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. |
New Accounting Pronouncements | New Accounting Pronouncements: In August 2016, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) to provide guidance on eight specific cash flow classification issues and reduce diversity in practice in how some cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We are currently assessing the impact on our condensed consolidated financial statements. In March 2016, the FASB issued an ASU to simplify the accounting for stock-based compensation. The ASU addresses several areas of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and cash flow statement presentation. The ASU is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. We are currently assessing the impact on our condensed consolidated financial statements. We anticipate the impact of adopting the standard on January 1, 2017 will be greater volatility in our condensed consolidated income statement in subsequent reporting periods. We will begin recording certain stock-based compensation tax impacts in our provision for income taxes prospectively which, under current guidance, are recorded directly to equity. In March 2016, the FASB issued an ASU that simplifies the transition accounting for increases in investments that require a change from the cost basis to the equity method of accounting. U.S. GAAP currently requires the impact of such changes in accounting method to be retroactively applied to all prior periods that the investment was held. Under the new standard, adjustments to the investor’s basis in the investment should be recorded on the date the investment becomes qualified for equity method accounting. The equity method of accounting is then applied prospectively from that date. The ASU is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. This ASU is not expected to have a significant impact on our condensed consolidated financial statements. We plan to adopt when the ASU becomes effective or earlier if an in-scope transaction arises. In March 2016, the FASB issued an ASU that clarifies whether contingent put and call options meet the “clearly and closely related” criteria in connection with accounting for embedded derivatives. U.S GAAP requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met. The criteria include determining that the economic characteristics and risks of the embedded derivatives are not “clearly and closely related” to those of the host contract. The ASU is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. We plan to adopt the new standard as of December 31, 2016 and do not expect this ASU to have a significant impact on our condensed consolidated financial statements. In March 2016, the FASB issued an ASU that applies when there is a contract novation to a new counterparty for a derivative designated as an accounting hedge. The ASU clarifies that such a change in counterparty does not, in and of itself, require de-designation of the hedging relationship, provided that all other hedge accounting criteria continue to be met. The ASU is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. We plan to adopt the new standard as of December 31, 2016 and do not expect this ASU to have a significant impact on our condensed consolidated financial statements. In February 2016, the FASB issued an ASU on lease accounting. The ASU revises existing U.S. GAAP and outlines a new model for lessors and lessees to use in accounting for lease contracts. The guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases, with the exception of short-term leases. In the condensed consolidated statement of earnings, lessees will classify leases as either operating (resulting in straight-line expense) or financing (resulting in a front-loaded expense pattern). The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact across our operations and on our condensed consolidated financial statements. In January 2016, the FASB issued an ASU that provides updated guidance for the recognition, measurement, presentation and disclosure of financial assets and liabilities. The standard requires that equity investments (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) be measured at fair value, with changes in fair value recognized in net income. The standard also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The ASU is effective for fiscal years beginning after December 15, 2017. This ASU is not expected to have a significant impact on our condensed 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 control over promised goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for the goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including significant judgments made in recognizing revenue. In 2016, the FASB issued several ASUs that clarified principal versus agent (gross versus net) revenue presentation considerations, confirmed certain prepaid stored-value products should be accounted for under the new revenue recognition ASU and not under other U.S. GAAP and clarified the guidance for identifying performance obligations within a contract and the accounting for licenses. The FASB also issued an ASU providing narrow scope exceptions and practical expedients to clarify and improve the implementation of the new revenue recognition guidance. 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 make progress on our efforts to assess the impact of the ASU across our operations and on our condensed consolidated financial statements. We anticipate adopting the new standard on January 1, 2018 on a full retrospective basis. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Net Revenues and Operating Income for Venezuelan Operations | The following table sets forth net revenues and operating income (including the impact of remeasurement losses) for our Venezuelan operations for the three and nine months ended September 30, 2015: Venezuela operations Three Months Ended September 30, 2015 Net revenues $315 million or 4.6% of consolidated net revenues Operating income $73 million or 0.9% of consolidated operating income Nine Months Ended September 30, 2015 Net revenues $834 million or 3.7% of consolidated net revenues Operating income $188 million or 2.0% of consolidated operating income |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Components of Inventories | Inventories consisted of the following: As of September 30, As of December 31, 2016 2015 (in millions) Raw materials $ 819 $ 782 Finished product 2,063 1,930 2,882 2,712 Inventory reserves (106 ) (103 ) Inventories, net $ 2,776 $ 2,609 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of September 30, As of December 31, 2016 2015 (in millions) Land and land improvements $ 502 $ 495 Buildings and building improvements 2,872 2,753 Machinery and equipment 10,411 10,044 Construction in progress 1,383 1,262 15,168 14,554 Accumulated depreciation (6,703 ) (6,192 ) Property, plant and equipment, net $ 8,465 $ 8,362 |
2014-2018 Restructuring Program | |
Schedule of Restructuring and Implementation Costs | During the three and nine months ended September 30, 2016 and 2015 and since inception of the 2014-2018 Restructuring Program, we recorded restructuring and implementation costs within operating income as follows: Latin Asia North America Pacific EEMEA Europe America (1) Corporate (2) Total (in millions) For the Three Months Ended Restructuring Costs $ 27 $ 10 $ 6 $ 69 $ 75 $ – $ 187 Implementation Costs 15 7 2 45 30 15 114 Total $ 42 $ 17 $ 8 $ 114 $ 105 $ 15 $ 301 For the Nine Months Ended Restructuring Costs $ 71 $ 51 $ 37 $ 172 $ 144 $ 5 $ 480 Implementation Costs 34 18 13 74 101 46 286 Total $ 105 $ 69 $ 50 $ 246 $ 245 $ 51 $ 766 For the Three Months Ended Restructuring Costs $ 30 $ 33 $ 7 $ 35 $ 39 $ 2 $ 146 Implementation Costs 6 3 1 19 19 27 75 Total $ 36 $ 36 $ 8 $ 54 $ 58 $ 29 $ 221 For the Nine Months Ended Restructuring Costs $ 79 $ 78 $ 21 $ 190 $ 70 $ 4 $ 442 Implementation Costs 27 12 7 47 40 52 185 Total $ 106 $ 90 $ 28 $ 237 $ 110 $ 56 $ 627 Total Project 2014-2016 (3) Restructuring Costs $ 297 $ 199 $ 120 $ 491 $ 313 $ 45 $ 1,465 Implementation Costs 89 47 28 184 177 159 684 Total $ 386 $ 246 $ 148 $ 675 $ 490 $ 204 $ 2,149 (1) During the nine months ended September 30, 2016, our North America region implementation costs included incremental costs that we incurred related to re-negotiating collective bargaining agreements that expired at the end of February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. We expect to incur additional costs related to these activities in the fourth quarter of 2016. (2) Includes adjustment for rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through September 30, 2016. |
Property Plant and Equipment | Asset impairment and exit costs | |
Schedule of Restructuring and Implementation Costs | These charges were recorded in the condensed consolidated statements of earnings within asset impairment and exit costs as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Latin America $ 3 $ 6 $ 16 $ 40 Asia Pacific 6 18 24 46 EEMEA 10 2 16 4 Europe 42 14 77 51 North America 59 16 98 50 Corporate – – 2 – Total non-cash asset write-downs $ 120 $ 56 $ 233 $ 191 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Goodwill by Reportable Segment | Goodwill by reportable segment was: As of September 30, As of December 31, 2016 2015 (in millions) Latin America $ 917 $ 858 Asia Pacific 2,489 2,520 EEMEA 1,337 1,304 Europe 7,107 7,117 North America 8,901 8,865 Goodwill $ 20,751 $ 20,664 |
Intangible Assets Disclosure | Intangible assets consisted of the following: As of September 30, As of December 31, 2016 2015 (in millions) Non-amortizable intangible assets $ 17,603 $ 17,527 Amortizable intangible assets 2,340 2,320 19,943 19,847 Accumulated amortization (1,222 ) (1,079 ) Intangible assets, net $ 18,721 $ 18,768 |
Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: Intangible Goodwill Assets, at cost (in millions) Balance at January 1, 2016 $ 20,664 $ 19,847 Changes due to: Currency 163 48 Acquisition (76 ) 86 Asset impairments – (30 ) Sale of business and assets – (8 ) Balance at September 30, 2016 $ 20,751 $ 19,943 |
2014-2018 Restructuring Progr29
2014-2018 Restructuring Program (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
2014-2018 Restructuring Program | |
Schedule of Restructuring Costs | The activity for the 2014-2018 Restructuring Program liability for the nine months ended September 30, 2016 was: Severance and related Asset costs Write-downs Total (in millions) Liability balance, January 1, 2016 $ 395 $ – $ 395 Charges 246 234 480 Cash spent (249 ) – (249 ) Non-cash settlements / adjustments (10 ) (234 ) (244 ) Currency 7 – 7 Liability balance, September 30, 2016 $ 389 $ – $ 389 |
Debt and Borrowing Arrangemen30
Debt and Borrowing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Short-Term Borrowings and Related Weighted-Average Interest Rates | Our short-term borrowings and related weighted-average interest rates consisted of: As of September 30, 2016 As of December 31, 2015 Amount Weighted- Amount Weighted- Outstanding Average Rate Outstanding Average Rate (in millions) (in millions) Commercial paper $ 2,175 0.8% $ – 0.0% Bank loans 315 8.9% 236 9.5% Total short-term borrowings $ 2,490 $ 236 |
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Interest expense, debt $ 129 $ 139 $ 400 $ 461 Loss on debt extinguishment and related expenses – – – 713 JDE coffee business transactions currency-related net gain – (29 ) – (436 ) Loss related to interest rate swaps – – 97 34 Other expense, net 16 4 43 42 Interest and other expense, net $ 145 $ 114 $ 540 $ 814 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of September 30, 2016 As of December 31, 2015 Asset Liability Asset Liability Derivatives Derivatives Derivatives Derivatives (in millions) Derivatives designated as Currency exchange contracts $ 4 $ 8 $ 20 $ 7 Commodity contracts 38 16 37 35 Interest rate contracts 10 16 12 57 $ 52 $ 40 $ 69 $ 99 Derivatives not designated as Currency exchange contracts $ 14 $ 57 $ 61 $ 33 Commodity contracts 52 47 70 56 Interest rate contracts 29 20 43 28 $ 95 $ 124 $ 174 $ 117 Total fair value $ 147 $ 164 $ 243 $ 216 |
Notional Values of Derivative Instruments | The net notional values of our derivative instruments were: Notional Amount As of September 30, As of December 31, 2016 2015 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,211 $ 4,148 Forecasted transactions 1,318 1,094 Commodity contracts 654 732 Interest rate contracts 2,050 3,033 Net investment hedge – euro notes 5,280 4,345 Net investment hedge – pound sterling notes 1,236 1,404 Net investment hedge – Swiss franc notes 1,518 1,073 |
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: Location of For the Three Months Ended For the Nine Months Ended Gain / (Loss) September 30, September 30, Recognized in 2016 2015 2016 2015 AOCI (in millions) Euro notes $ (38 ) $ (8 ) $ (110 ) $ 188 Currency Pound sterling notes 21 30 107 17 Translation Swiss franc notes (4 ) 18 (33 ) (13 ) Adjustment |
Derivative | |
Schedule of Derivative Instruments Fair Value and Measurement Inputs | The fair values (asset / (liability)) of our derivative instruments were determined using: As of September 30, 2016 Quoted Prices in Active Markets Significant Significant Total for Identical Other Observable Unobservable Fair Value of Net Assets Inputs Inputs Asset / (Liability) (Level 1) (Level 2) (Level 3) (in millions) Currency exchange contracts $ (47 ) $ – $ (47 ) $ – Commodity contracts 27 17 10 – Interest rate contracts 3 – 3 – Total derivatives $ (17 ) $ 17 $ (34 ) $ – As of December 31, 2015 Quoted Prices in Active Markets Significant Significant Total for Identical Other Observable Unobservable Fair Value of Net Assets Inputs Inputs Asset / (Liability) (Level 1) (Level 2) (Level 3) (in millions) Currency exchange contracts $ 41 $ – $ 41 $ – Commodity contracts 16 29 (13 ) – Interest rate contracts (30 ) – (30 ) – Total derivatives $ 27 $ 29 $ (2 ) $ – |
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Accumulated gain / (loss) at $ (36 ) $ (53 ) $ (45 ) $ (2 ) Transfer of realized losses / (gains) (2 ) 60 64 6 Unrealized gain / (loss) in fair value 4 (69 ) (53 ) (66 ) Accumulated gain / (loss) at $ (34 ) $ (62 ) $ (34 ) $ (62 ) |
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Currency exchange contracts – forecasted transactions $ (6 ) $ (11 ) $ (3 ) $ 73 Commodity contracts 8 (49 ) (1 ) (53 ) Interest rate contracts – – (60 ) (26 ) Total $ 2 $ (60 ) $ (64 ) $ (6 ) After-tax gains / (losses) recognized in other comprehensive earnings / (losses) were: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Currency exchange contracts – forecasted transactions $ (11 ) $ 8 $ (21 ) $ 33 Commodity contracts 10 (38 ) 19 (61 ) Interest rate contracts 5 (39 ) (51 ) (38 ) Total $ 4 $ (69 ) $ (53 ) $ (66 ) |
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 Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Derivatives $ (11 ) $ 4 $ (2 ) $ 8 Borrowings 11 (4 ) 2 (8 ) |
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 Nine Months Ended Gain / (Loss) September 30, September 30, Recognized 2016 2015 2016 2015 in Earnings (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 7 $ 8 $ 18 $ 22 Interest and other Forecasted transactions (14 ) 43 (91 ) 33 Cost of sales Forecasted transactions 2 36 10 437 Interest and other Forecasted transactions 4 5 16 (11 ) Selling, general and Interest rate contracts – – – – Interest and other Commodity contracts (13 ) (99 ) (26 ) (158 ) Cost of sales Total $ (14 ) $ (7 ) $ (73 ) $ 323 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 For the Three Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Service cost $ 15 $ 16 $ 37 $ 44 Interest cost 15 16 57 77 Expected return on plan assets (24 ) (23 ) (105 ) (120 ) Amortization: Net loss from experience differences 12 11 31 33 Prior service cost / (credit) – – – – Settlement losses and other expenses 9 2 – – Net periodic pension cost $ 27 $ 22 $ 20 $ 34 U.S. Plans Non-U.S. Plans For the Nine Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Service cost $ 42 $ 48 $ 114 $ 145 Interest cost 46 50 179 231 Expected return on plan assets (72 ) (70 ) (326 ) (358 ) Amortization: Net loss from experience differences 30 33 93 110 Prior service cost / (credit) 1 1 (2 ) 16 Settlement losses / (gains) and other expenses 25 15 (1 ) – Net periodic pension cost $ 72 $ 77 $ 57 $ 144 |
Postretirement Benefit Plans | |
Components of Net Costs | Net periodic postretirement health care costs consisted of the following: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Service cost $ 3 $ 4 $ 9 $ 11 Interest cost 6 5 16 17 Amortization: Net loss from experience differences 2 3 5 10 Prior service credit (1) (11 ) (1 ) (14 ) (5 ) Net periodic postretirement health care costs $ – $ 11 $ 16 $ 33 (1) For the three and nine months ended September 30, 2016, amortization of prior service credit includes $8 million of curtailment gain related to a change in the eligibility requirement. |
Postemployment Benefit Plans | |
Components of Net Costs | Net periodic postemployment costs consisted of the following: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Service cost $ 2 $ 2 $ 5 $ 5 Interest cost 1 1 4 4 Net periodic postemployment costs $ 3 $ 3 $ 9 $ 9 |
Stock Plans (Tables)
Stock Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stock Options Activity | Stock option activity is reflected below: Weighted- Average Average Exercise or Remaining Aggregate Shares Subject Grant Price Contractual Intrinsic to Option Per Share Term Value Balance at January 1, 2016 57,034,108 $ 26.12 6 years $ 229 million Annual grant to eligible employees 7,517,290 39.70 Additional options issued 97,680 43.32 Total options granted 7,614,970 39.75 Options exercised (7,094,555 ) 24.01 $ 139 million Options cancelled (1,735,698 ) 35.39 Balance at September 30, 2016 55,818,825 27.95 6 years $ 252 million |
Deferred stock unit, performance share unit and restricted stock | |
Deferred Stock Unit, Performance Share Unit and Restricted Stock Activity | Our deferred stock unit, performance share unit and restricted stock activity is reflected below: Weighted-Average Weighted-Average Number of Fair Value Aggregate Shares Grant Date Per Share Fair Value Balance at January 1, 2016 9,418,216 $ 28.00 Annual grant to eligible employees: Feb. 22, 2016 Performance share units 1,406,500 39.70 Deferred stock units 1,040,790 39.70 Additional shares granted (1) 755,171 Various 29.51 Total shares granted 3,202,461 37.30 $ 119 million Vested (2) (3,903,681 ) 40.13 $ 157 million Forfeited (2) (1,019,864 ) 37.47 Balance at September 30, 2016 7,697,132 24.46 (1) Includes performance share units and deferred stock units. (2) Includes performance share units, deferred stock units and historically granted restricted stock. |
Reclassifications from Accumu34
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Amounts Reclassified from Accumulated Other Comprehensive Earnings/ (Losses) | Amounts reclassified from accumulated other comprehensive earnings / (losses) to net earnings (net of tax) were net losses of $28 million in the three months and $206 million for the nine months ended September 30, 2016 and $134 million in the three months and $172 million in the nine months ended September 30, 2015. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (7,867 ) $ (6,438 ) $ (8,006 ) $ (5,042 ) Currency translation adjustments attributable to: Translation of international operations (1) 52 (1,149 ) 171 (2,749 ) Pension and other benefit plans 7 46 42 97 Derivatives accounted for as net investment hedges (35 ) 62 (58 ) 303 Noncontrolling interests (2 ) (6 ) (3 ) (22 ) Tax (expense) / benefit 13 (23 ) 21 (111 ) Other comprehensive earnings / (losses) 35 (1,070 ) 173 (2,482 ) Less: portion attributable to noncontrolling interests (2 ) (6 ) (3 ) (22 ) Balance at end of period (7,830 ) (7,502 ) (7,830 ) (7,502 ) Pension and Other Benefit Plans: Balance at beginning of period $ (1,865 ) $ (2,201 ) $ (1,934 ) $ (2,274 ) Net actuarial gain / (loss) arising during period – 127 24 99 Tax (expense) / benefit on net actuarial gain / (loss) – (40 ) (9 ) (35 ) Losses / (gains) reclassified into net earnings: Amortization of experience losses and (2) 30 46 93 165 Settlement losses (2) 10 51 25 64 Tax (expense) / benefit on reclassifications (3) (10 ) (28 ) (34 ) (64 ) Other comprehensive earnings / (losses) 30 156 99 229 Balance at end of period (1,835 ) (2,045 ) (1,835 ) (2,045 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (36 ) $ (53 ) $ (46 ) $ (2 ) Net derivative gains / (losses) 6 (113 ) (78 ) (103 ) Tax (expense) / benefit on net derivative gain / (loss) (2 ) 39 25 36 Losses / (gains) reclassified into net earnings: Currency exchange contracts – (4) 7 13 3 (79 ) Commodity contracts (4) (8 ) 62 7 65 Interest rate contracts (5) – – 96 41 Tax (expense) / benefit on reclassifications (3) (1 ) (10 ) (41 ) (20 ) Other comprehensive earnings / (losses) 2 (9 ) 12 (60 ) Balance at end of period (34 ) (62 ) (34 ) (62 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (9,768 ) $ (8,692 ) $ (9,986 ) $ (7,318 ) Total other comprehensive earnings / (losses) 67 (923 ) 284 (2,313 ) Less: portion attributable to noncontrolling interests (2 ) (6 ) (3 ) (22 ) Other comprehensive earnings / (losses) attributable to Mondelēz International 69 (917 ) 287 (2,291 ) Balance at end of period $ (9,699 ) $ (9,609 ) $ (9,699 ) $ (9,609 ) (1) For the nine months ended September 30, 2016 includes $57 million of historical cumulative transaction adjustments reclassified to net earnings within the gain on equity method investment exchange in the first quarter. See Note 2, Divestitures and Acquisitions – Keurig Transaction (2) These reclassified gains or losses are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans (3) Taxes related to reclassified gains or losses are recorded within the provision for income taxes. (4) These reclassified gains or losses are recorded within cost of sales. (5) These reclassified gains or losses are recorded within interest and other expense, net. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions, except per share data) Net earnings $ 548 $ 7,268 $ 1,576 $ 8,007 Noncontrolling interest earnings – (2 ) (10 ) (11 ) Net earnings attributable to $ 548 $ 7,266 $ 1,566 $ 7,996 Weighted-average shares for basic EPS 1,557 1,609 1,561 1,627 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 19 20 18 19 Weighted-average shares for diluted EPS 1,576 1,629 1,579 1,646 Basic earnings per share attributable to $ 0.35 $ 4.52 $ 1.00 $ 4.91 Diluted earnings per share attributable to $ 0.35 $ 4.46 $ 0.99 $ 4.86 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Net Revenues and Earnings by Segment | Our segment net revenues were: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Net revenues: Latin America (1) $ 868 $ 1,233 $ 2,528 $ 3,730 Asia Pacific (2) 1,128 1,101 3,278 3,278 EEMEA (2) 543 586 1,738 2,150 Europe (2) 2,104 2,173 6,461 7,963 North America 1,753 1,756 5,148 5,151 Net revenues $ 6,396 $ 6,849 $ 19,153 $ 22,272 (1) Net revenues of $315 million for the three months and $834 million for the nine months ended September 30, 2015 from our Venezuelan subsidiaries are included in our condensed consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our condensed consolidated financial statements. Refer to Note 1, Basis of Presentation – Currency Translation and Highly Inflationary Accounting: Venezuela, (2) On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segments. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Our segment earnings were: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (in millions) Earnings before income taxes: Operating income: Latin America $ 92 $ 134 $ 191 $ 422 Asia Pacific 135 71 378 321 EEMEA 44 52 154 184 Europe 302 298 896 885 North America 274 275 840 817 Unrealized gains / (losses) on hedging activities (mark-to-market impacts) (12 ) (4 ) (49 ) 75 General corporate expenses (89 ) (95 ) (216 ) (240 ) Amortization of intangibles (44 ) (45 ) (132 ) (137 ) Gains on JDE coffee business transactions and divestiture – 7,122 – 7,135 Acquisition-related costs – (6 ) – (8 ) Operating income 702 7,802 2,062 9,454 Interest and other expense, net (145 ) (114 ) (540 ) (814 ) Earnings before income taxes $ 557 $ 7,688 $ 1,522 $ 8,640 |
Net Revenues by Consumer Sector | Net revenues by product category were: For the Three Months Ended September 30, 2016 Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 191 $ 360 $ 125 $ 608 $ 1,403 $ 2,687 Chocolate 185 388 223 1,021 65 1,882 Gum & Candy 247 174 120 163 285 989 Beverages (1) 164 77 31 36 – 308 Cheese & Grocery 81 129 44 276 – 530 Total net revenues $ 868 $ 1,128 $ 543 $ 2,104 $ 1,753 $ 6,396 For the Three Months Ended September 30, 2015 Latin Asia North America (2) Pacific EEMEA Europe (3) America Total (in millions) Biscuits $ 431 $ 356 $ 125 $ 592 $ 1,403 $ 2,907 Chocolate 184 370 232 1,074 64 1,924 Gum & Candy 262 171 134 177 289 1,033 Beverages (1) 178 76 45 43 – 342 Cheese & Grocery 178 128 50 287 – 643 Total net revenues $ 1,233 $ 1,101 $ 586 $ 2,173 $ 1,756 $ 6,849 For the Nine Months Ended September 30, 2016 Latin Asia North America Pacific EEMEA Europe America Total (in millions) Biscuits $ 551 $ 991 $ 379 $ 1,848 $ 4,162 $ 7,931 Chocolate 562 1,088 549 3,124 153 5,476 Gum & Candy 713 538 383 512 833 2,979 Beverages (1) 466 285 229 123 – 1,103 Cheese & Grocery 236 376 198 854 – 1,664 Total net revenues $ 2,528 $ 3,278 $ 1,738 $ 6,461 $ 5,148 $ 19,153 For the Nine Months Ended September 30, 2015 Latin Asia North America (2) Pacific EEMEA Europe (3) America Total (in millions) Biscuits $ 1,147 $ 940 $ 396 $ 1,828 $ 4,161 $ 8,472 Chocolate 680 1,074 627 3,204 161 5,746 Gum & Candy 852 550 418 558 829 3,207 Beverages (1) 570 324 502 1,493 – 2,889 Cheese & Grocery 481 390 207 880 – 1,958 Total net revenues $ 3,730 $ 3,278 $ 2,150 $ 7,963 $ 5,151 $ 22,272 (1) On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segment beverage categories. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions (2) Our Venezuelan subsidiaries net revenues of $209 million in biscuits, $95 million in cheese & grocery, $6 million in beverages and $5 million in gum & candy for the three months and $496 million in biscuits, $231 million in cheese & grocery, $66 million in gum & candy and $41 million in beverages for the nine months ended September 30, 2015 are included in our condensed consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our condensed consolidated financial statements. Refer to Note 1, Basis of Presentation – Currency Translation and Highly Inflationary Accounting: Venezuela, (3) During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Millions | Jun. 24, 2016 | Dec. 16, 2015 | Sep. 30, 2016USD ($)Country | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2016USD ($)Country | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Net revenues | $ 6,396 | $ 6,849 | $ 19,153 | $ 22,272 | ||||
Number of countries in which entity operates | Country | 80 | 80 | ||||||
Number of countries in which products are sold | Country | 165 | 165 | ||||||
Uncommitted revolving non-recourse accounts receivable factoring arrangements, maximum combined capacity | $ 820 | $ 820 | ||||||
Cost of factoring receivables | 2 | 1 | 6 | 4 | ||||
Outstanding principal amount of receivables sold under factoring arrangement | $ 589 | 401 | $ 589 | 401 | ||||
Change in accounting policy effect of change on net revenue | 19 | 57 | ||||||
Change in accounting policy effect of change on operating results | 9 | 27 | ||||||
United Kingdom, Pounds | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Devalued percentage against US Dollar | 9.00% | 5.00% | ||||||
Argentina, Pesos | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Devalued percentage against US Dollar | 36.00% | 18.00% | ||||||
Venezuela | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Net revenues | $ 315 | $ 834 | ||||||
Percentage of consolidated net revenues | 4.60% | 3.70% | ||||||
Loss on deconsolidation | $ (778) | |||||||
Remeasurement losses | $ 11 | |||||||
United Kingdom | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Net revenues | $ 505 | $ 1,600 | ||||||
Percentage of consolidated net revenues | 7.90% | 8.40% | ||||||
Argentina | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Net revenues | $ 145 | $ 439 | ||||||
Percentage of consolidated net revenues | 2.30% | 2.30% |
Net Revenues and Operating inco
Net Revenues and Operating income for Venezuelan Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||||
Net revenues | $ 6,396 | $ 6,849 | $ 19,153 | $ 22,272 |
Operating income (including the impact of remeasurement losses) | $ 702 | 7,802 | $ 2,062 | 9,454 |
Venezuela | ||||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||||
Net revenues | $ 315 | $ 834 | ||
Percentage of consolidated net revenues | 4.60% | 3.70% | ||
Operating income (including the impact of remeasurement losses) | $ 73 | $ 188 | ||
Percentage of consolidated operating income | 0.90% | 2.00% |
Divestitures and Acquisitions -
Divestitures and Acquisitions - Additional Information (Detail) € in Millions, $ in Millions, ₫ in Billions, ¥ in Billions | Aug. 26, 2016USD ($) | Aug. 22, 2016USD ($) | Aug. 22, 2016VND (₫) | Jul. 05, 2016USD ($) | May 02, 2016USD ($) | May 02, 2016EUR (€) | Mar. 31, 2016USD ($) | Mar. 07, 2016USD ($) | Mar. 07, 2016EUR (€) | Mar. 03, 2016USD ($) | Dec. 18, 2015USD ($) | Dec. 18, 2015EUR (€) | Nov. 27, 2015USD ($) | Nov. 27, 2015VND (₫) | Jul. 15, 2015USD ($) | Jul. 15, 2015VND (₫) | Jul. 02, 2015USD ($) | Jul. 02, 2015EUR (€) | Apr. 23, 2015USD ($) | Apr. 23, 2015JPY (¥) | Feb. 16, 2015USD ($) | Nov. 10, 2014USD ($) | May 31, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Sep. 30, 2016USD ($) | Sep. 30, 2016EUR (€) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016 | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016EUR (€) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016VND (₫) | Jul. 19, 2016EUR (€) | Jul. 02, 2015EUR (€) | |||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Gains on coffee business transactions and divestiture | $ 7,122 | $ 7,135 | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from coffee business divestiture currency hedge settlements | 1,050 | ||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | $ 5,717 | $ 5,387 | $ 5,717 | $ 5,717 | $ 5,387 | $ 5,717 | |||||||||||||||||||||||||||||||||||||||
Net gain (loss) on coffee business divestiture currency hedges | 436 | ||||||||||||||||||||||||||||||||||||||||||||
Gain on equity method investment exchange | 43 | ||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 31 | (72) | 218 | (72) | |||||||||||||||||||||||||||||||||||||||||
Equity method investment dividend received | 75 | 58 | |||||||||||||||||||||||||||||||||||||||||||
Cash proceeds received | 113 | 33 | |||||||||||||||||||||||||||||||||||||||||||
Disposal group including discontinued operation impairment of intangibles | 30 | ||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 20,751 | 20,664 | 20,751 | 20,751 | 20,664 | 20,751 | |||||||||||||||||||||||||||||||||||||||
Net revenues | 6,396 | 6,849 | 19,153 | 22,272 | |||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 702 | 7,802 | 2,062 | 9,454 | |||||||||||||||||||||||||||||||||||||||||
Business acquisition costs | 6 | 8 | |||||||||||||||||||||||||||||||||||||||||||
Enjoy Life Foods | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 81 | ||||||||||||||||||||||||||||||||||||||||||||
Cash paid for acquisition | $ 81 | ||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 20 | ||||||||||||||||||||||||||||||||||||||||||||
Intangible assets acquired | 58 | ||||||||||||||||||||||||||||||||||||||||||||
Other net assets (liabilities) acquired | $ 3 | ||||||||||||||||||||||||||||||||||||||||||||
Vietnam | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Cash paid for acquisition | 569 | ₫ 12,404 | |||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 20.00% | 20.00% | 80.00% | 80.00% | |||||||||||||||||||||||||||||||||||||||||
Escrow Deposit | $ 70 | $ 44 | $ 46 | ||||||||||||||||||||||||||||||||||||||||||
Cash paid for acquisition | 418 | ₫ 9,122 | |||||||||||||||||||||||||||||||||||||||||||
Payment for the non-compete and continued consulting agreements | $ 35 | ₫ 759 | $ 35 | ₫ 759 | |||||||||||||||||||||||||||||||||||||||||
Vietnam acquisition sales price adjustment | $ 9 | ₫ 197 | |||||||||||||||||||||||||||||||||||||||||||
Remaining interest in biscuit operation to be acquired | 20.00% | 20.00% | |||||||||||||||||||||||||||||||||||||||||||
Escrowed retained amount | $ 20 | ||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 70 | 71 | 70 | ||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 16 | 5 | 16 | ||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | Vietnam | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Business acquisition costs | 6 | 7 | |||||||||||||||||||||||||||||||||||||||||||
Business integration costs | 4 | 6 | 5 | ||||||||||||||||||||||||||||||||||||||||||
Europe And EEMEA segments | Selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Expenses related to readying businesses for planned transactions | 54 | 239 | |||||||||||||||||||||||||||||||||||||||||||
Europe Segment | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 7,107 | 7,117 | 7,107 | 7,107 | 7,117 | 7,107 | |||||||||||||||||||||||||||||||||||||||
Net revenues | [1] | 2,104 | 2,173 | [2] | 6,461 | 7,963 | [2] | ||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 302 | 298 | 896 | 885 | |||||||||||||||||||||||||||||||||||||||||
North America Segment | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Disposal group including discontinued operation impairment of intangibles | 7 | ||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 8,901 | 8,865 | 8,901 | 8,901 | 8,865 | 8,901 | |||||||||||||||||||||||||||||||||||||||
Net revenues | 1,753 | 1,756 | 5,148 | 5,151 | |||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 274 | 275 | 840 | 817 | |||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | 10 | $ 40 | |||||||||||||||||||||||||||||||||||||||||||
North America Segment | Selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of property | 6 | 33 | |||||||||||||||||||||||||||||||||||||||||||
Corporate Segment | Corporate Aircraft | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | 3 | 20 | |||||||||||||||||||||||||||||||||||||||||||
Corporate Segment | Selling, general and administrative expenses | Corporate Aircraft | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of property | 1 | $ 6 | |||||||||||||||||||||||||||||||||||||||||||
Acorn Holdings BV | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired by other parties | 73.50% | 73.50% | |||||||||||||||||||||||||||||||||||||||||||
Japanese Coffee Joint Venture | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Gain on equity method investment exchange | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Sale of stock, percentage of ownership before transaction | 50.00% | 50.00% | |||||||||||||||||||||||||||||||||||||||||||
Divestiture of investment in joint venture | 99 | 99 | |||||||||||||||||||||||||||||||||||||||||||
After-tax gain (loss) on equity method investment | 9 | ||||||||||||||||||||||||||||||||||||||||||||
Goodwill divested | 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 | ||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Disposed of by Sale | FINLAND | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 16 | € 14 | |||||||||||||||||||||||||||||||||||||||||||
Cash proceeds received | 14 | € 12 | |||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived Intangible assets, divested | 8 | 8 | 8 | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Disposed of by Sale | Europe Segment | Selling, general and administrative expenses | FINLAND | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | 6 | ||||||||||||||||||||||||||||||||||||||||||||
Gain after transaction costs, net of tax | 5 | ||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other current assets | 139 | 139 | 139 | 139 | |||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other non-current assets | 243 | 243 | 243 | 243 | |||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other current liabilities | 39 | 39 | 39 | 39 | |||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other non-current liabilities | 34 | 34 | 34 | 34 | |||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | Cost of sales and selling, general and administrative expenses | FRANCE | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Expenses related to readying businesses for planned transactions | 84 | ||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | Confectionery Business in Costa Rica and Chocolate Factory in Belgium | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Fixed asset impairment charge | 34 | € 30 | |||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | Confectionery Business in Costa Rica and Chocolate Factory in Belgium | Cost of sales and selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Expenses related to readying businesses for planned transactions | 33 | € 29 | |||||||||||||||||||||||||||||||||||||||||||
Class A | Acorn Holdings BV | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired by other parties | 73.50% | 73.50% | 73.22% | 73.22% | |||||||||||||||||||||||||||||||||||||||||
Class C,D and E | Acorn Holdings BV | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired by other parties | 0.38% | 0.38% | |||||||||||||||||||||||||||||||||||||||||||
Maximum | Discontinued Operations, Disposed of by Sale | FINLAND | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Other assets, divested | $ 1 | ||||||||||||||||||||||||||||||||||||||||||||
Final Valuation | Vietnam | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, property, plant and equipment | 49 | 49 | 49 | 49 | |||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 385 | 385 | 385 | 385 | |||||||||||||||||||||||||||||||||||||||||
Business acquisition, inventory | 10 | 10 | 10 | 10 | |||||||||||||||||||||||||||||||||||||||||
Intangible assets acquired | 86 | 86 | 86 | 86 | |||||||||||||||||||||||||||||||||||||||||
Other net assets (liabilities) acquired | 31 | 31 | 31 | 31 | |||||||||||||||||||||||||||||||||||||||||
Scenario, Forecast | FRANCE | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 247 | € 220 | |||||||||||||||||||||||||||||||||||||||||||
Cash proceeds received | $ 198 | € 176 | |||||||||||||||||||||||||||||||||||||||||||
Trademarks | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Disposal group including discontinued operation impairment of intangibles | 71 | ||||||||||||||||||||||||||||||||||||||||||||
Trademarks | Selling, general and administrative expenses | United States | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | $ 7 | ||||||||||||||||||||||||||||||||||||||||||||
Trademarks | Europe Segment | FRANCE | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Disposal group including discontinued operation impairment of intangibles | $ 14 | $ 5 | |||||||||||||||||||||||||||||||||||||||||||
Manufacturing Plant | Discontinued Operations, Held-for-sale | Russia | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Fixed asset impairment charge | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Tax Authority, Spain | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Interest and penalties expected to be paid | 34 | € 30 | |||||||||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Currency Exchange Forward Contracts | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from coffee business divestiture currency hedge settlements | $ 1,000 | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Foreign Exchange Forward | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | 5,200 | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from coffee business divestiture currency hedge settlements | $ 1,000 | ||||||||||||||||||||||||||||||||||||||||||||
Net gain (loss) on coffee business divestiture currency hedges | 29 | 436 | |||||||||||||||||||||||||||||||||||||||||||
JDE Coffee Business | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 43.50% | 43.50% | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 275 | $ 4,200 | € 3,800 | ||||||||||||||||||||||||||||||||||||||||||
Divestiture of business, receivable | 794 | ||||||||||||||||||||||||||||||||||||||||||||
Cash and receivables recorded related to the reimbursement of costs incurred from separating a business | 283 | ||||||||||||||||||||||||||||||||||||||||||||
Gains on coffee business transactions and divestiture | 7,100 | 6,800 | |||||||||||||||||||||||||||||||||||||||||||
Gains on coffee business transactions and divestiture, after tax | $ 6,600 | ||||||||||||||||||||||||||||||||||||||||||||
Reduction in pre-tax gain on coffee business transactions and divestiture | $ 313 | ||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | $ 4,500 | € 4,100 | |||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | (3) | (105) | 89 | (105) | |||||||||||||||||||||||||||||||||||||||||
JDE Coffee Business | Operating Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 296 | ||||||||||||||||||||||||||||||||||||||||||||
JDE Coffee Business | Tax Authority, Spain | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Unfavorable tax expense | $ 128 | $ 128 | $ 128 | $ 128 | € 114 | ||||||||||||||||||||||||||||||||||||||||
JDE | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 26.50% | 26.50% | 26.40% | 26.40% | 26.40% | 26.40% | |||||||||||||||||||||||||||||||||||||||
Equity method investment, pro rata share of capital increase | $ 544 | € 499 | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation, dilution percentage | 2.00% | ||||||||||||||||||||||||||||||||||||||||||||
Gain on equity method investment exchange | $ 43 | ||||||||||||||||||||||||||||||||||||||||||||
JDE | Acorn Holdings BV | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Carrying value of equity method investments exchanged | $ 2,000 | € 1,700 | |||||||||||||||||||||||||||||||||||||||||||
JDE | Class B | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 26.50% | 26.50% | 26.40% | 26.40% | |||||||||||||||||||||||||||||||||||||||||
JDE | Minimum | Class B | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 26.27% | 26.27% | |||||||||||||||||||||||||||||||||||||||||||
JDE | Non-cash | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, pro rata share of capital increase | 501 | 460 | |||||||||||||||||||||||||||||||||||||||||||
JDE | Cash | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, pro rata share of capital increase | $ 43 | € 39 | |||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 24.20% | 24.20% | |||||||||||||||||||||||||||||||||||||||||||
Equity method investments | $ 1,600 | $ 1,600 | $ 1,600 | $ 1,600 | |||||||||||||||||||||||||||||||||||||||||
Equity method investments and shareholders loan receivable | 2,000 | 2,000 | 2,000 | 2,000 | |||||||||||||||||||||||||||||||||||||||||
Shareholder loan receivable | 400 | 400 | $ 400 | $ 400 | |||||||||||||||||||||||||||||||||||||||||
Shareholder loan receivable, interest rate | 5.50% | 5.50% | |||||||||||||||||||||||||||||||||||||||||||
Shareholder loan receivable, loan term | 7 years | 7 years | |||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 16 | $ 53 | |||||||||||||||||||||||||||||||||||||||||||
Equity method investment dividend received | 2 | 4 | |||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | Equity Earnings | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 10 | 39 | |||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | Interest Income | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 6 | $ 14 | |||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | Acorn Holdings BV | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 13,900 | ||||||||||||||||||||||||||||||||||||||||||||
Dongsuh Foods Corporation | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | $ 11 | $ 20 | $ 56 | 20 | |||||||||||||||||||||||||||||||||||||||||
Dongsuh Foods Corporation | Operating Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | $ 40 | ||||||||||||||||||||||||||||||||||||||||||||
[1] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segments. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||||||||||||||||||||||||||||||||||||||||
[2] | During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 819 | $ 782 |
Finished product | 2,063 | 1,930 |
Inventory, Gross, Total | 2,882 | 2,712 |
Inventory reserves | (106) | (103) |
Inventories, net | $ 2,776 | $ 2,609 |
Property, Plant and Equipment41
Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 15,168 | $ 14,554 |
Accumulated depreciation | (6,703) | (6,192) |
Property, plant and equipment, net | 8,465 | 8,362 |
Land and Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 502 | 495 |
Buildings and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,872 | 2,753 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,411 | 10,044 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,383 | $ 1,262 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | ||||
Capital expenditures | $ 909 | $ 1,178 | ||
Accrued capital expenditures unpaid | 274 | |||
Payments for capital expenditures accrued in the prior year | 322 | |||
Asset impairment charges | 262 | 195 | ||
2014-2018 Restructuring Program | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment charges | $ 120 | $ 56 | $ 233 | $ 191 |
Summary of Asset Impairment and
Summary of Asset Impairment and Exit Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Asset impairment charges | $ 262 | $ 195 | ||
2014-2018 Restructuring Program | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Asset impairment charges | $ 120 | $ 56 | 233 | 191 |
2014-2018 Restructuring Program | Latin America Segment | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Asset impairment charges | 3 | 6 | 16 | 40 |
2014-2018 Restructuring Program | Asia Pacific Segment | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Asset impairment charges | 6 | 18 | 24 | 46 |
2014-2018 Restructuring Program | EEMEA Segment | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Asset impairment charges | 10 | 2 | 16 | 4 |
2014-2018 Restructuring Program | Europe Segment | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Asset impairment charges | 42 | 14 | 77 | 51 |
2014-2018 Restructuring Program | North America Segment | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Asset impairment charges | $ 59 | $ 16 | 98 | $ 50 |
2014-2018 Restructuring Program | Corporate Segment | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Asset impairment charges | $ 2 |
Goodwill by Reportable Segment
Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 20,751 | $ 20,664 |
Latin America Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 917 | 858 |
Asia Pacific Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 2,489 | 2,520 |
EEMEA Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 1,337 | 1,304 |
Europe Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 7,107 | 7,117 |
North America Segment | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 8,901 | $ 8,865 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Intangible Assets [Line Items] | ||
Non-amortizable intangible assets | $ 17,603 | $ 17,527 |
Amortizable intangible assets | 2,340 | 2,320 |
Total intangible assets, gross | 19,943 | 19,847 |
Accumulated amortization | (1,222) | (1,079) |
Intangible assets, net | $ 18,721 | $ 18,768 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($)Brand | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | May 02, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Amortization expense for intangible assets | $ 44 | $ 45 | $ 132 | $ 137 | ||
Estimated amortization expense in year 1 | 185 | 185 | ||||
Estimated amortization expense in year 2 | 185 | 185 | ||||
Estimated amortization expense in year 3 | 185 | 185 | ||||
Estimated amortization expense in year 4 | 185 | 185 | ||||
Estimated amortization expense in year 5 | 185 | 185 | ||||
Asset impairment charges on intangible assets | 30 | |||||
Number of brands | Brand | 7 | |||||
Intangible asset, aggregate book value | 17,603 | $ 17,527 | 17,603 | |||
Fair Value Over Book Value 10% or Less | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Intangible asset, aggregate book value | 598 | |||||
Vietnam | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Finite-lived intangible assets acquired | 25 | |||||
Indefinite-lived intangible assets acquired | 61 | |||||
Discontinued Operations, Disposed of by Sale | FINLAND | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Indefinite-lived Intangible assets, divested | $ 8 | 8 | $ 8 | |||
North America Segment | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Asset impairment charges on intangible assets | 7 | |||||
EEMEA Segment | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Asset impairment charges on intangible assets | 4 | |||||
Trademarks | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Asset impairment charges on intangible assets | $ 71 | |||||
Trademarks | Planned Sale of Confectionery Business in France | Europe Segment | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Asset impairment charges on intangible assets | $ 19 | |||||
Weighted Average | ||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||
Life of our amortizable intangible assets (in years) | 13 years 7 months 6 days |
Changes in Goodwill and Intangi
Changes in Goodwill and Intangible Assets (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill And Intangible Assets [Line Items] | |
Goodwill beginning balance | $ 20,664 |
Goodwill, Currency | 163 |
Goodwill, Acquisition | (76) |
Goodwill, Asset impairments | 0 |
Goodwill, Sale of business and assets | 0 |
Goodwill ending balance | 20,751 |
Intangible Assets, at Cost beginning balance | 19,847 |
Intangible Assets, Currency | 48 |
Intangible Assets, Acquisition | 86 |
Intangible Assets, Asset impairments | (30) |
Intangible Assets, Sale of business and assets | (8) |
Intangible Assets, at Cost ending balance | $ 19,943 |
2014-2018 Restructuring Progr48
2014-2018 Restructuring Program - Additional Information (Detail) - USD ($) $ in Millions | Aug. 31, 2016 | May 06, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||||||
Capital expenditures | $ 909 | $ 1,178 | |||||||
2014-2018 Restructuring Program | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Approved restructuring program cost | $ 5,700 | $ 3,500 | |||||||
Reallocation of previously approved capital expenditures to be spent on restructuring program cash costs | 600 | ||||||||
Restructuring and related cost, cost incurred | $ 301 | $ 221 | 766 | 627 | $ 2,149 | [1] | |||
Restructuring charges | 187 | 146 | 480 | 442 | 1,465 | [1] | |||
Cash spent | 89 | 51 | 249 | 156 | |||||
Non-cash settlements | 120 | 56 | 244 | 196 | |||||
Restructuring reserve | 389 | 389 | 389 | $ 395 | |||||
Implementation Costs | 114 | 75 | 286 | 185 | 684 | [1] | |||
2014-2018 Restructuring Program | Maximum | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Capital expenditures | 1,600 | 2,200 | |||||||
2014-2018 Restructuring Program | Selling, general and administrative expenses | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Implementation Costs | 114 | $ 75 | 286 | $ 185 | |||||
2014-2018 Restructuring Program | Other current liabilities | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring reserve | 302 | 302 | 302 | ||||||
2014-2018 Restructuring Program | Other liabilities | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring reserve | $ 87 | $ 87 | $ 87 | ||||||
2014-2018 Restructuring Program | Cash Expense | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Approved restructuring program cost | 3,100 | 2,500 | |||||||
2014-2018 Restructuring Program | Non Cash Expense | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Approved restructuring program cost | $ 1,000 | ||||||||
2014-2018 Restructuring Program | Cash Outlays | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Approved restructuring program cost | $ 4,700 | ||||||||
[1] | Includes all charges recorded since program inception on May 6, 2014 through September 30, 2016. |
Schedule of Restructuring Costs
Schedule of Restructuring Costs (Detail) - 2014-2018 Restructuring Program - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 29 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Balance at beginning of period | $ 395 | |||||
Charges | $ 187 | $ 146 | 480 | $ 442 | $ 1,465 | [1] |
Cash spent | (89) | (51) | (249) | (156) | ||
Non-cash settlements / adjustments | (120) | $ (56) | (244) | $ (196) | ||
Currency | 7 | |||||
Balance at end of period | 389 | 389 | 389 | |||
Severance and Related Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Balance at beginning of period | 395 | |||||
Charges | 246 | |||||
Cash spent | (249) | |||||
Non-cash settlements / adjustments | (10) | |||||
Currency | 7 | |||||
Balance at end of period | $ 389 | 389 | $ 389 | |||
Asset Write-Downs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Charges | 234 | |||||
Non-cash settlements / adjustments | $ (234) | |||||
[1] | Includes all charges recorded since program inception on May 6, 2014 through September 30, 2016. |
Restructuring and Implementatio
Restructuring and Implementation Costs (Detail) - 2014-2018 Restructuring Program - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 29 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | [1] | ||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | $ 187 | $ 146 | $ 480 | $ 442 | $ 1,465 | ||
Implementation Costs | 114 | 75 | 286 | 185 | 684 | ||
Total | 301 | 221 | 766 | 627 | 2,149 | ||
Operating Segments | Latin America Segment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | 27 | 30 | 71 | 79 | 297 | ||
Implementation Costs | 15 | 6 | 34 | 27 | 89 | ||
Total | 42 | 36 | 105 | 106 | 386 | ||
Operating Segments | Asia Pacific Segment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | 10 | 33 | 51 | 78 | 199 | ||
Implementation Costs | 7 | 3 | 18 | 12 | 47 | ||
Total | 17 | 36 | 69 | 90 | 246 | ||
Operating Segments | EEMEA Segment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | 6 | 7 | 37 | 21 | 120 | ||
Implementation Costs | 2 | 1 | 13 | 7 | 28 | ||
Total | 8 | 8 | 50 | 28 | 148 | ||
Operating Segments | Europe Segment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | 69 | 35 | 172 | 190 | 491 | ||
Implementation Costs | 45 | 19 | 74 | 47 | 184 | ||
Total | 114 | 54 | 246 | 237 | 675 | ||
Operating Segments | North America Segment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | [2] | 75 | 39 | 144 | 70 | 313 | |
Implementation Costs | [2] | 30 | 19 | 101 | 40 | 177 | |
Total | [2] | 105 | 58 | 245 | 110 | 490 | |
Corporate | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | [3] | 2 | 5 | 4 | 45 | ||
Implementation Costs | [3] | 15 | 27 | 46 | 52 | 159 | |
Total | [3] | $ 15 | $ 29 | $ 51 | $ 56 | $ 204 | |
[1] | Includes all charges recorded since program inception on May 6, 2014 through September 30, 2016. | ||||||
[2] | During the nine months ended September 30, 2016, our North America region implementation costs included incremental costs that we incurred related to re-negotiating collective bargaining agreements that expired at the end of February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. We expect to incur additional costs related to these activities in the fourth quarter of 2016. | ||||||
[3] | Includes adjustment for rounding. |
Short-Term Borrowings and Relat
Short-Term Borrowings and Related Weighted-Average Interest Rates (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Amount outstanding | $ 2,490 | $ 236 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Amount outstanding | $ 2,175 | |
Weighted-average rate | 0.80% | 0.00% |
Bank Loans | ||
Short-term Debt [Line Items] | ||
Amount outstanding | $ 315 | $ 236 |
Weighted-average rate | 8.90% | 9.50% |
Debt and Borrowing Arrangemen52
Debt and Borrowing Arrangements - Additional Information (Detail) € in Millions, SFr in Millions | Oct. 28, 2016USD ($) | Oct. 19, 2016USD ($) | Oct. 14, 2016USD ($) | Feb. 09, 2016USD ($) | Jan. 26, 2016USD ($) | Jan. 21, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jan. 31, 2016USD ($) | Jan. 26, 2016CHF (SFr) | Jan. 21, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||||||||||
Revolving credit facility debt covenant | $ 24,600,000,000 | ||||||||||||
Carrying value of total debt | 17,106,000,000 | $ 15,398,000,000 | |||||||||||
Debt instrument, principal amount | $ 1,757,000,000 | $ 4,543,000,000 | |||||||||||
Weighted-average interest rate | 3.10% | 3.70% | 4.30% | ||||||||||
Fair value of total debt | $ 18,616,000,000 | $ 15,908,000,000 | |||||||||||
International Subsidiaries | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Revolving credit facility, maximum borrowing capacity | 1,800,000,000 | 1,900,000,000 | |||||||||||
Line of credit facility outstanding amount | $ 315,000,000 | $ 236,000,000 | |||||||||||
Commercial Paper | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commercial paper, Maturity period | 3 days | ||||||||||||
Commercial Paper | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Commercial paper, Maturity period | 88 days | ||||||||||||
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 September 30, 2016, we complied with this covenant | ||||||||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings / (losses) | $ 37,200,000,000 | ||||||||||||
Line of credit facility outstanding amount | $ 0 | ||||||||||||
Revolving Credit Facility, October 11, 2018 | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Revolving credit facility expiration date | Oct. 11, 2021 | ||||||||||||
Bank Term Loan Facility | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Carrying value of total debt | $ 1,500,000,000 | ||||||||||||
Bank Term Loan Facility | Three-year maturity | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, description | On October 25, 2016, we also gave notice of our intent to terminate the $750 million loan with the three-year maturity. | ||||||||||||
Bank Term Loan Facility | Three-year maturity | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Carrying value of total debt | $ 750,000,000 | ||||||||||||
Debt instrument, maturity term | 3 years | ||||||||||||
Bank Term Loan Facility | Five-year maturity | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Carrying value of total debt | $ 750,000,000 | ||||||||||||
Debt instrument, maturity term | 5 years | ||||||||||||
4.125% U.S. dollar Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, principal amount | $ 1,150,000,000 | ||||||||||||
Debt instrument, stated interest rate | 4.125% | ||||||||||||
Debt instrument, principal amount | $ 1,750,000,000 | ||||||||||||
Swiss franc notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, principal amount | $ 399,000,000 | SFr 400 | |||||||||||
Net proceeds from issuance of notes | 398,000,000 | ||||||||||||
Discounts and deferred financing costs | 1,000,000 | ||||||||||||
Euro notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, principal amount | € | € 700 | ||||||||||||
0.080% Fixed Rate Notes, mature on January 26, 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, principal amount | $ 249,000,000 | SFr 250 | |||||||||||
Debt instrument maturity Year | Jan. 26, 2018 | ||||||||||||
Debt instrument, fixed interest rate | 0.08% | 0.08% | |||||||||||
0.650% Fixed Rate Notes, mature on July 26, 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, principal amount | $ 150,000,000 | SFr 150 | |||||||||||
Debt instrument maturity Year | Jul. 26, 2022 | ||||||||||||
Debt instrument, fixed interest rate | 0.65% | 0.65% | |||||||||||
1.625% Notes Due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, principal amount | $ 760,000,000 | € 700 | |||||||||||
Debt instrument, stated interest rate | 1.625% | 1.625% | |||||||||||
Debt instrument maturity Year | Jan. 20, 2023 | ||||||||||||
Net proceeds from issuance of notes | $ 752,000,000 | ||||||||||||
Discounts and deferred financing costs | $ 8,000,000 | ||||||||||||
Notes | Mondelez International Holdings Netherlands BV | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, principal amount | $ 3,750,000,000 | ||||||||||||
Notes | Mondelez International Holdings Netherlands BV | Scenario, Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Net proceeds from issuance of notes | $ 3,730,000,000 | ||||||||||||
1.625% Notes Due on October 28, 2019 | Mondelez International Holdings Netherlands BV | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, principal amount | $ 1,750,000,000 | ||||||||||||
Debt instrument, stated interest rate | 1.625% | ||||||||||||
Debt instrument maturity Year | Oct. 28, 2019 | ||||||||||||
Floating Rate Notes Due on October 28, 2019 | Mondelez International Holdings Netherlands BV | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, principal amount | $ 500,000,000 | ||||||||||||
Debt instrument maturity Year | Oct. 28, 2019 | ||||||||||||
2.0% Notes Due on October 28, 2021 | Mondelez International Holdings Netherlands BV | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, principal amount | $ 1,500,000,000 | ||||||||||||
Debt instrument, stated interest rate | 2.00% | ||||||||||||
Debt instrument maturity Year | Oct. 28, 2021 |
Interest and Other Expense Net
Interest and Other Expense Net Within Results of Continuing Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Interest expense, debt | $ 129 | $ 139 | $ 400 | $ 461 |
Loss on debt extinguishment and related expenses | 713 | |||
JDE coffee business transactions currency-related net gain | (436) | |||
Loss related to interest rate swaps | 97 | 34 | ||
Other expense, net | 16 | 4 | 43 | 42 |
Interest and other expense, net | $ 145 | 114 | $ 540 | 814 |
Coffee Business | ||||
Debt Instrument [Line Items] | ||||
JDE coffee business transactions currency-related net gain | $ (29) | $ (436) |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 147 | $ 243 |
Liability Derivatives | 164 | 216 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 52 | 69 |
Liability Derivatives | 40 | 99 |
Derivatives Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 4 | 20 |
Liability Derivatives | 8 | 7 |
Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 38 | 37 |
Liability Derivatives | 16 | 35 |
Derivatives Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 10 | 12 |
Liability Derivatives | 16 | 57 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 95 | 174 |
Liability Derivatives | 124 | 117 |
Derivatives Not Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 14 | 61 |
Liability Derivatives | 57 | 33 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 52 | 70 |
Liability Derivatives | 47 | 56 |
Derivatives Not Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 29 | 43 |
Liability Derivatives | $ 20 | $ 28 |
Derivative Instruments Fair Val
Derivative Instruments Fair Value and Measurement Inputs (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ (17) | $ 27 |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (47) | 41 |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 27 | 16 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 3 | (30) |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 17 | 29 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 17 | 29 |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (34) | (2) |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (47) | 41 |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 10 | (13) |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ 3 | $ (30) |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Loss related to interest rate swaps | $ (97,000,000) | $ (34,000,000) | ||||
Unrealized gains recorded in earnings related to planned coffee business transactions | 436,000,000 | |||||
Interest rate contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Hedged forecasted transactions | 7 years 2 months | |||||
Interest rate contracts | Cash Flow Hedges | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Loss related to interest rate swaps | $ (97,000,000) | $ (34,000,000) | ||||
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 | $ (1,000,000) | |||||
Commodity contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Hedged forecasted transactions | 15 months | |||||
Commodity contracts | Cash Flow Hedges | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Expected transfers of unrealized gains (losses) to earnings, within next 12 months | $ 11,000,000 | |||||
Currency exchange contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Hedged forecasted transactions | 15 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 | $ (11,000,000) | |||||
Interest and other expense, net | Foreign Exchange Forward | Economic Hedging | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Unrealized gains recorded in earnings related to planned coffee business transactions | $ 29,000,000 | $ 436,000,000 | ||||
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative liabilities after effects of netting | $ 0 | |||||
Quoted Prices In Active Markets For Identical Assets (Level 1) | Maximum | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative liabilities after effects of netting | 1,000,000 | |||||
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 | 32,000,000 | 52,000,000 | ||||
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 | 16,000,000 | 22,000,000 | ||||
Significant Other Observable Inputs (Level 2) | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative assets after effects of netting | 54,000,000 | 64,000,000 | ||||
Derivative liabilities after effects of netting | $ 36,000,000 | $ 101,000,000 |
Notional Values of Derivative I
Notional Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Net investment hedge | Euro notes | ||
Derivative [Line Items] | ||
Notional Amount | $ 5,280 | $ 4,345 |
Net investment hedge | Pound sterling notes | ||
Derivative [Line Items] | ||
Notional Amount | 1,236 | 1,404 |
Net investment hedge | Swiss franc notes | ||
Derivative [Line Items] | ||
Notional Amount | 1,518 | 1,073 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | ||
Derivative [Line Items] | ||
Notional Amount | 3,211 | 4,148 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 1,318 | 1,094 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 654 | 732 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 2,050 | $ 3,033 |
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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Accumulated gain / (loss) at beginning of period | $ (36) | $ (53) | $ (45) | $ (2) |
Transfer of realized losses / (gains) in fair value to earnings | (2) | 60 | 64 | 6 |
Unrealized gain / (loss) in fair value | 4 | (69) | (53) | (66) |
Accumulated gain / (loss) at end of period | $ (34) | $ (62) | $ (34) | $ (62) |
Effects of Cash Flow Hedges (De
Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) reclassified from AOCI into earnings | $ 2 | $ (60) | $ (64) | $ (6) |
Gains / (losses) recognized in OCI | 4 | (69) | (53) | (66) |
Currency exchange contracts | Forecasted transactions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) reclassified from AOCI into earnings | (6) | (11) | (3) | 73 |
Gains / (losses) recognized in OCI | (11) | 8 | (21) | 33 |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) reclassified from AOCI into earnings | 8 | (49) | (1) | (53) |
Gains / (losses) recognized in OCI | 10 | (38) | 19 | (61) |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) reclassified from AOCI into earnings | (60) | (26) | ||
Gains / (losses) recognized in OCI | $ 5 | $ (39) | $ (51) | $ (38) |
Fair Value Hedges (Detail)
Fair Value Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (loss) recognized in income on fair value of hedges | $ (11) | $ 4 | $ (2) | $ 8 |
Long-term Debt | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (loss) recognized in income on fair value of hedges | $ 11 | $ (4) | $ 2 | $ (8) |
Economic Hedges (Detail)
Economic Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (Loss) Recognized in Earnings | $ 436 | |||
Derivatives Not Designated as Hedging Instruments | Economic Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (Loss) Recognized in Earnings | $ (14) | $ (7) | $ (73) | 323 |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Commodity contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (Loss) Recognized in Earnings | (13) | (99) | (26) | (158) |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Intercompany loans and forecasted interest payments | Currency exchange contracts | Interest and other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (Loss) Recognized in Earnings | 7 | 8 | 18 | 22 |
Derivatives Not Designated as Hedging Instruments | Economic Hedging | Forecasted transactions | Currency exchange contracts | Interest and other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain / (Loss) Recognized in Earnings | 2 | 36 | 10 | 437 |
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 | (14) | 43 | (91) | 33 |
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 | $ 4 | $ 5 | $ 16 | $ (11) |
Hedges of Net Investments in In
Hedges of Net Investments in International Operations (Detail) - Net investment hedge - Currency Translation Adjustments - Currency exchange contracts - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Euro notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) recognized in OCI | $ (38) | $ (8) | $ (110) | $ 188 |
Pound sterling notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) recognized in OCI | 21 | 30 | 107 | 17 |
Swiss franc notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains / (losses) recognized in OCI | $ (4) | $ 18 | $ (33) | $ (13) |
Components of Net Periodic Pens
Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 15 | $ 16 | $ 42 | $ 48 |
Interest cost | 15 | 16 | 46 | 50 |
Expected return on plan assets | (24) | (23) | (72) | (70) |
Net loss from experience differences | 12 | 11 | 30 | 33 |
Prior service cost / (credit) | 1 | 1 | ||
Settlement losses / (gains) and other expenses | 9 | 2 | 25 | 15 |
Net periodic pension cost | 27 | 22 | 72 | 77 |
Non-U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 37 | 44 | 114 | 145 |
Interest cost | 57 | 77 | 179 | 231 |
Expected return on plan assets | (105) | (120) | (326) | (358) |
Net loss from experience differences | 31 | 33 | 93 | 110 |
Prior service cost / (credit) | (2) | 16 | ||
Settlement losses / (gains) and other expenses | (1) | |||
Net periodic pension cost | $ 20 | $ 34 | $ 57 | $ 144 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension curtailment losses | $ 8 | $ 8 | |||
2014-2018 Restructuring Program | Severance and Related Costs | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement losses | (3) | $ (1) | (12) | $ (7) | |
JDE Coffee Business | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Settlement losses | (49) | ||||
Coffee Business | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefit plan liabilities divested | $ 131 | ||||
Pension Plans | Change in Assumptions for Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension cost | (16) | (48) | |||
Non-U.S. Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension cost | 20 | 34 | 57 | 144 | |
Employer contribution | 329 | ||||
Employer non-recurring contribution | 100 | ||||
Estimated future employer contributions for remainder of the year | 50 | ||||
Non-U.S. Pension Plans | Coffee Business | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Deferred tax assets transferred | $ 24 | ||||
Pension curtailment losses | 17 | ||||
U.S. Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension cost | 27 | 22 | 72 | 77 | |
Employer contribution | 169 | ||||
Employer voluntary contribution | 150 | ||||
Estimated future employer contributions for remainder of the year | 6 | ||||
Postretirement Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension cost | $ 11 | 16 | $ 33 | ||
Postretirement Benefit Plans | Change in Assumptions for Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension cost | $ 1 | $ 3 |
Components of Net Periodic Post
Components of Net Periodic Postretirement Health Care Costs (Detail) - Postretirement Benefit Plans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 3 | $ 4 | $ 9 | $ 11 | |
Interest cost | 6 | 5 | 16 | 17 | |
Net loss from experience differences | 2 | 3 | 5 | 10 | |
Prior service credit | [1] | $ (11) | (1) | (14) | (5) |
Net periodic postretirement health care costs | $ 11 | $ 16 | $ 33 | ||
[1] | For the three and nine months ended September 30, 2016, amortization of prior service credit includes $8 million of curtailment gain related to a change in the eligibility requirement. |
Components of Net Periodic Po66
Components of Net Periodic Postretirement Health Care Costs (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension curtailment gain | $ 8 | $ 8 |
Components of Net Postemploymen
Components of Net Postemployment Costs (Detail) - Postemployment Benefit Plans - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2 | $ 2 | $ 5 | $ 5 |
Interest cost | 1 | 1 | 4 | 4 |
Net periodic postemployment costs | $ 3 | $ 3 | $ 9 | $ 9 |
Stock Option Activity (Detail)
Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Shares subject to option | ||
Beginning balance | 57,034,108 | |
Options granted | 7,614,970 | |
Options exercised | (7,094,555) | |
Options cancelled | (1,735,698) | |
Ending balance | 55,818,825 | 57,034,108 |
Weighted-average exercise price | ||
Beginning balance | $ 26.12 | |
Options granted | 39.75 | |
Options exercised | 24.01 | |
Options cancelled | 35.39 | |
Ending balance | $ 27.95 | $ 26.12 |
Average remaining contractual term | ||
Opening balance | 6 years | 6 years |
Aggregate intrinsic value | ||
Options exercised | $ 139 | |
Aggregate intrinsic value | $ 252 | $ 229 |
Annual grant to eligible employees | ||
Shares subject to option | ||
Options granted | 7,517,290 | |
Weighted-average exercise price | ||
Options granted | $ 39.70 | |
Additional options issued | ||
Shares subject to option | ||
Options granted | 97,680 | |
Weighted-average exercise price | ||
Options granted | $ 43.32 |
Restricted Stock, Deferred Stoc
Restricted Stock, Deferred Stock Unit and Performance Share Unit Activity (Detail) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2016USD ($)$ / sharesshares | ||
Number of Shares | ||
Beginning balance | shares | 9,418,216 | |
Shares granted | shares | 3,202,461 | |
Vested | shares | (3,903,681) | [1] |
Forfeited | shares | (1,019,864) | [1] |
Ending balance | shares | 7,697,132 | |
Weighted-average grant date fair value per share | ||
Beginning balance | $ / shares | $ 28 | |
Shares granted | $ / shares | 37.30 | |
Vested | $ / shares | 40.13 | [1] |
Forfeited | $ / shares | 37.47 | [1] |
Ending balance | $ / shares | $ 24.46 | |
Weighted-Average Aggregate Fair Value | ||
Total shares granted | $ | $ 119 | |
Vested | $ | $ 157 | [1] |
Annual grant to eligible employees | ||
Grant date | ||
Grant date | Feb. 22, 2016 | |
Performance Share Units | ||
Number of Shares | ||
Shares granted | shares | 1,406,500 | |
Weighted-average grant date fair value per share | ||
Shares granted | $ / shares | $ 39.70 | |
Deferred Stock Units | ||
Number of Shares | ||
Shares granted | shares | 1,040,790 | |
Weighted-average grant date fair value per share | ||
Shares granted | $ / shares | $ 39.70 | |
Additional shares granted | ||
Number of Shares | ||
Shares granted | shares | 755,171 | [2] |
Weighted-average grant date fair value per share | ||
Shares granted | $ / shares | $ 29.51 | [2] |
[1] | Includes performance share units, deferred stock units and historically granted restricted stock. | |
[2] | Includes performance share units and deferred stock units. |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | Jul. 29, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||||||
Cost of shares repurchased | $ 1,787,000,000 | $ 3,622,000,000 | ||||
Payment for repurchase of common stock | $ 1,727,000,000 | $ 3,003,000,000 | ||||
Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase expiration date | Dec. 31, 2018 | Dec. 31, 2016 | ||||
Stock repurchase value | $ 13,700,000,000 | $ 7,700,000,000 | ||||
Increase in share repurchase value | $ 6,000,000,000 | |||||
Number of shares repurchased | 42.9 | |||||
Average cost of shares repurchased | $ 41.64 | |||||
Cost of shares repurchased | $ 8,200,000,000 | |||||
Stock repurchase remaining amount | $ 3,700,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - 9 months ended Sep. 30, 2016 ₨ 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 | $ 56,000,000 | ₨ 3.7 |
Indian Department of Central Excise Authority | Cadbury | Show case notice | ||
Loss Contingencies [Line Items] | ||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | 36,000,000 | 2.4 |
Indian Department of Central Excise Authority | Cadbury | Maximum | ||
Loss Contingencies [Line Items] | ||
Tax penalties and interest expense | $ 88,000,000 | ₨ 5.8 |
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 |
Reclassifications from Accumu72
Reclassifications from Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net loss amounts reclassified from accumulated other comprehensive earnings / (losses) to net earnings (net of tax) | $ 28 | $ 134 | $ 206 | $ 172 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Earnings / (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balances | $ 28,100 | $ 27,853 | $ 27,853 | |||
Cost of sales | $ (3,908) | $ (4,179) | (11,614) | (13,595) | ||
Interest rate contracts | (145) | (114) | (540) | (814) | ||
Tax (expense) / benefit on reclassifications | (40) | (348) | (207) | (561) | ||
Other comprehensive earnings / (losses) | 67 | (923) | 284 | (2,313) | (2,694) | |
Less: portion attributable to noncontrolling interests | (2) | (6) | (3) | (22) | ||
Balances | 27,577 | 27,577 | 28,100 | |||
Other comprehensive earnings / (losses) attributable to Mondelez International | 69 | (917) | 287 | (2,291) | ||
Currency Translation Adjustments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balances | (7,867) | (6,438) | (8,006) | (5,042) | (5,042) | |
Translation of international operations | [1] | 52 | (1,149) | 171 | (2,749) | |
Pension and other benefit plans | 7 | 46 | 42 | 97 | ||
Derivatives accounted for as net investment hedges | (35) | 62 | (58) | 303 | ||
Noncontrolling interests | (2) | (6) | (3) | (22) | ||
Tax (expense) / benefit | 13 | (23) | 21 | (111) | ||
Other comprehensive earnings / (losses) | 35 | (1,070) | 173 | (2,482) | ||
Less: portion attributable to noncontrolling interests | (2) | (6) | (3) | (22) | ||
Balances | (7,830) | (7,502) | (7,830) | (7,502) | (8,006) | |
Pension and Other Benefits | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balances | (1,865) | (2,201) | (1,934) | (2,274) | (2,274) | |
Net actuarial gain / (loss) arising during period | 127 | 24 | 99 | |||
Tax (expense) / benefit on net actuarial gain / (loss) | (40) | (9) | (35) | |||
Other comprehensive earnings / (losses) | 30 | 156 | 99 | 229 | ||
Balances | (1,835) | (2,045) | (1,835) | (2,045) | (1,934) | |
Derivative Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balances | (36) | (53) | (46) | (2) | (2) | |
Net derivative gains / (losses) | 6 | (113) | (78) | (103) | ||
Tax (expense) / benefit on net derivative gain / (loss) | (2) | 39 | 25 | 36 | ||
Other comprehensive earnings / (losses) | 2 | (9) | 12 | (60) | ||
Balances | (34) | (62) | (34) | (62) | (46) | |
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balances | (9,768) | (8,692) | (9,986) | (7,318) | (7,318) | |
Other comprehensive earnings / (losses) | 287 | (2,668) | ||||
Balances | (9,699) | (9,609) | (9,699) | (9,609) | $ (9,986) | |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other Benefits | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Amortization of experience losses and prior service costs | [2] | 30 | 46 | 93 | 165 | |
Settlement losses | [2] | 10 | 51 | 25 | 64 | |
Tax (expense) / benefit on reclassifications | [3] | (10) | (28) | (34) | (64) | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Tax (expense) / benefit on reclassifications | [3] | (1) | (10) | (41) | (20) | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Currency exchange contracts | Forecasted transactions | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cost of sales | [4] | 7 | 13 | 3 | (79) | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Commodity contracts | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cost of sales | [4] | $ (8) | $ 62 | 7 | 65 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Interest rate contracts | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Interest rate contracts | [5] | $ 96 | $ 41 | |||
[1] | For the nine months ended September 30, 2016 includes $57 million of historical cumulative transaction adjustments reclassified to net earnings within the gain on equity method investment exchange in the first quarter. See Note 2, Divestitures and Acquisitions - Keurig Transaction. | |||||
[2] | These reclassified gains or losses are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans, and equity method investment net earnings. | |||||
[3] | Taxes related to reclassified gains or losses are recorded within the provision for income taxes. | |||||
[4] | These reclassified gains or losses are recorded within cost of sales. | |||||
[5] | These reclassified gains or losses are recorded within interest and other expense, net. |
Components of Accumulated Oth74
Components of Accumulated Other Comprehensive Earnings / (Losses) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net loss amounts reclassified from accumulated other comprehensive earnings / (losses) to net earnings (net of tax) | $ (28) | $ (134) | $ (206) | $ (172) |
Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net loss amounts reclassified from accumulated other comprehensive earnings / (losses) to net earnings (net of tax) | $ 57 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | ||||||||
Estimated effective tax rate | 23.10% | |||||||
Effective tax rate | 7.20% | 4.50% | 13.60% | 6.50% | ||||
Total favorable discrete items | $ 60 | $ 109 | ||||||
Net favorable tax audit settlements and expirations of statutes of limitations | 35 | $ 40 | 73 | $ 75 | ||||
Gains on coffee business transactions and divestitures | 7,122 | 7,135 | ||||||
Net unfavorable tax charge related to the sale of joint venture | $ 32 | $ 22 | $ 54 | |||||
United Kingdom | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Benefit from reduction of net deferred tax liabilities in tax legislation enacted | $ 17 | $ 17 | ||||||
Coffee Business | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Gains on coffee business transactions and divestitures | 7,122 | |||||||
Tax expense on gains from divestitures | 197 | |||||||
Tax costs incurred to remit proceeds up from lower-tier foreign subsidiaries | $ 21 | |||||||
Scenario, Forecast | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Estimated effective tax rate | 20.80% |
Basic and Diluted Earnings per
Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Earnings Per Share [Line Items] | |||||
Net earnings | $ 548 | $ 7,268 | $ 1,576 | $ 8,007 | $ 7,291 |
Noncontrolling interest earnings | (2) | (10) | (11) | ||
Net earnings attributable to Mondelez International | $ 548 | $ 7,266 | $ 1,566 | $ 7,996 | |
Weighted-average shares for basic EPS | 1,557 | 1,609 | 1,561 | 1,627 | |
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares | 19 | 20 | 18 | 19 | |
Weighted-average shares for diluted EPS | 1,576 | 1,629 | 1,579 | 1,646 | |
Basic earnings per share attributable to Mondelez International | $ 0.35 | $ 4.52 | $ 1 | $ 4.91 | |
Diluted earnings per share attributable to Mondelez International | $ 0.35 | $ 4.46 | $ 0.99 | $ 4.86 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Mondelez International stock options excluded from the calculation of diluted EPS | 4,300,000 | 7,700,000 | 10,800,000 | |
Maximum | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Mondelez International stock options excluded from the calculation of diluted EPS | 1,000,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Segment | Sep. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable operating segments | Segment | 5 | |||
Operating income (loss) | $ 702 | $ 7,802 | $ 2,062 | $ 9,454 |
Asia Pacific Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 135 | 71 | 378 | 321 |
EEMEA Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 44 | 52 | 154 | 184 |
North America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ 274 | $ 275 | $ 840 | 817 |
Equity Method Investments | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 56 | |||
Equity Method Investments | Asia Pacific Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 49 | |||
Equity Method Investments | EEMEA Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 3 | |||
Equity Method Investments | North America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ 4 |
Net Revenues by Segment (Detail
Net Revenues by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 6,396 | $ 6,849 | $ 19,153 | $ 22,272 | |||
Latin America Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 868 | 1,233 | [2] | 2,528 | 3,730 | [2] |
Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [3] | 1,128 | 1,101 | 3,278 | 3,278 | ||
EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [3] | 543 | 586 | 1,738 | 2,150 | ||
Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [3] | 2,104 | 2,173 | [4] | 6,461 | 7,963 | [4] |
North America Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 1,753 | $ 1,756 | $ 5,148 | $ 5,151 | |||
[1] | Net revenues of $315 million for the three months and $834 million for the nine months ended September 30, 2015 from our Venezuelan subsidiaries are included in our condensed consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our condensed consolidated financial statements. Refer to Note 1, Basis of Presentation - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||
[2] | Our Venezuelan subsidiaries net revenues of $209 million in biscuits, $95 million in cheese & grocery, $6 million in beverages and $5 million in gum & candy for the three months and $496 million in biscuits, $231 million in cheese & grocery, $66 million in gum & candy and $41 million in beverages for the nine months ended September 30, 2015 are included in our condensed consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our condensed consolidated financial statements. Refer to Note 1, Basis of Presentation - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||
[3] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segments. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||
[4] | During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Net Revenues by Segment (Parent
Net Revenues by Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 6,396 | $ 6,849 | $ 19,153 | $ 22,272 | |||
Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 1,128 | 1,101 | 3,278 | 3,278 | ||
EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 543 | 586 | 1,738 | 2,150 | ||
Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | $ 2,104 | 2,173 | [2] | $ 6,461 | 7,963 | [2] |
Coffee Business | Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 33 | ||||||
Coffee Business | EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 246 | ||||||
Coffee Business | Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,348 | ||||||
Venezuela | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 315 | $ 834 | |||||
[1] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segments. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||
[2] | During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Operating Income by Segment (De
Operating Income by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
General corporate expenses | $ (89) | $ (95) | $ (216) | $ (240) |
Amortization of intangibles | (44) | (45) | (132) | (137) |
Gains on JDE coffee business transactions and divestiture | 7,122 | 7,135 | ||
Acquisition-related costs | (6) | (8) | ||
Operating income (loss) | 702 | 7,802 | 2,062 | 9,454 |
Interest and other expense, net | (145) | (114) | (540) | (814) |
Earnings before income taxes | 557 | 7,688 | 1,522 | 8,640 |
Cost of Sales | ||||
Segment Reporting Information [Line Items] | ||||
Unrealized gains / (losses) on hedging activities (mark-to-market impacts) | (12) | (4) | (49) | 75 |
Latin America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 92 | 134 | 191 | 422 |
Asia Pacific Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 135 | 71 | 378 | 321 |
EEMEA Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 44 | 52 | 154 | 184 |
Europe Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 302 | 298 | 896 | 885 |
North America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ 274 | $ 275 | $ 840 | $ 817 |
Net Revenues by Consumer Sector
Net Revenues by Consumer Sector (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 6,396 | $ 6,849 | $ 19,153 | $ 22,272 | |||
Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 2,687 | 2,907 | 7,931 | 8,472 | |||
Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,882 | 1,924 | 5,476 | 5,746 | |||
Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 989 | 1,033 | 2,979 | 3,207 | |||
Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 308 | 342 | 1,103 | 2,889 | ||
Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 530 | 643 | 1,664 | 1,958 | |||
Latin America Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [2] | 868 | 1,233 | [3] | 2,528 | 3,730 | [3] |
Latin America Segment | Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 191 | 431 | [3] | 551 | 1,147 | [3] | |
Latin America Segment | Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 185 | 184 | [3] | 562 | 680 | [3] | |
Latin America Segment | Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 247 | 262 | [3] | 713 | 852 | [3] | |
Latin America Segment | Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 164 | 178 | [3] | 466 | 570 | [3] |
Latin America Segment | Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 81 | 178 | [3] | 236 | 481 | [3] | |
Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [4] | 1,128 | 1,101 | 3,278 | 3,278 | ||
Asia Pacific Segment | Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 360 | 356 | 991 | 940 | |||
Asia Pacific Segment | Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 388 | 370 | 1,088 | 1,074 | |||
Asia Pacific Segment | Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 174 | 171 | 538 | 550 | |||
Asia Pacific Segment | Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 77 | 76 | 285 | 324 | ||
Asia Pacific Segment | Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 129 | 128 | 376 | 390 | |||
EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [4] | 543 | 586 | 1,738 | 2,150 | ||
EEMEA Segment | Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 125 | 125 | 379 | 396 | |||
EEMEA Segment | Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 223 | 232 | 549 | 627 | |||
EEMEA Segment | Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 120 | 134 | 383 | 418 | |||
EEMEA Segment | Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 31 | 45 | 229 | 502 | ||
EEMEA Segment | Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 44 | 50 | 198 | 207 | |||
Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [4] | 2,104 | 2,173 | [5] | 6,461 | 7,963 | [5] |
Europe Segment | Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 608 | 592 | [5] | 1,848 | 1,828 | [5] | |
Europe Segment | Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,021 | 1,074 | [5] | 3,124 | 3,204 | [5] | |
Europe Segment | Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 163 | 177 | [5] | 512 | 558 | [5] | |
Europe Segment | Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 36 | 43 | [5] | 123 | 1,493 | [5] |
Europe Segment | Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 276 | 287 | [5] | 854 | 880 | [5] | |
North America Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,753 | 1,756 | 5,148 | 5,151 | |||
North America Segment | Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,403 | 1,403 | 4,162 | 4,161 | |||
North America Segment | Chocolate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 65 | 64 | 153 | 161 | |||
North America Segment | Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 285 | $ 289 | $ 833 | $ 829 | |||
[1] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segment beverage categories. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||
[2] | Net revenues of $315 million for the three months and $834 million for the nine months ended September 30, 2015 from our Venezuelan subsidiaries are included in our condensed consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our condensed consolidated financial statements. Refer to Note 1, Basis of Presentation - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||
[3] | Our Venezuelan subsidiaries net revenues of $209 million in biscuits, $95 million in cheese & grocery, $6 million in beverages and $5 million in gum & candy for the three months and $496 million in biscuits, $231 million in cheese & grocery, $66 million in gum & candy and $41 million in beverages for the nine months ended September 30, 2015 are included in our condensed consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our condensed consolidated financial statements. Refer to Note 1, Basis of Presentation - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||
[4] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segments. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||
[5] | During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Net Revenues by Consumer Sect83
Net Revenues by Consumer Sector (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 6,396 | $ 6,849 | $ 19,153 | $ 22,272 | |||
Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 1,128 | 1,101 | 3,278 | 3,278 | ||
EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 543 | 586 | 1,738 | 2,150 | ||
Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [1] | 2,104 | 2,173 | [2] | 6,461 | 7,963 | [2] |
Coffee Business | Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 33 | ||||||
Coffee Business | EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 246 | ||||||
Coffee Business | Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 1,348 | ||||||
Venezuela | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 315 | 834 | |||||
Biscuits | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 2,687 | 2,907 | 7,931 | 8,472 | |||
Biscuits | Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 360 | 356 | 991 | 940 | |||
Biscuits | EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 125 | 125 | 379 | 396 | |||
Biscuits | Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 608 | 592 | [2] | 1,848 | 1,828 | [2] | |
Biscuits | Venezuela | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 209 | 496 | |||||
Gum & Candy | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 989 | 1,033 | 2,979 | 3,207 | |||
Gum & Candy | Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 174 | 171 | 538 | 550 | |||
Gum & Candy | EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 120 | 134 | 383 | 418 | |||
Gum & Candy | Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 163 | 177 | [2] | 512 | 558 | [2] | |
Gum & Candy | Venezuela | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 5 | 66 | |||||
Beverages | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [3] | 308 | 342 | 1,103 | 2,889 | ||
Beverages | Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [3] | 77 | 76 | 285 | 324 | ||
Beverages | EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [3] | 31 | 45 | 229 | 502 | ||
Beverages | Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | [3] | 36 | 43 | [2] | 123 | 1,493 | [2] |
Beverages | Venezuela | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 6 | 41 | |||||
Cheese & Grocery | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 530 | 643 | 1,664 | 1,958 | |||
Cheese & Grocery | Asia Pacific Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 129 | 128 | 376 | 390 | |||
Cheese & Grocery | EEMEA Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | 44 | 50 | 198 | 207 | |||
Cheese & Grocery | Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 276 | 287 | [2] | $ 854 | 880 | [2] | |
Cheese & Grocery | Venezuela | |||||||
Segment Reporting Information [Line Items] | |||||||
Net revenues | $ 95 | $ 231 | |||||
[1] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segments. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||
[2] | During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. | ||||||
[3] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segment beverage categories. Net revenues of our global coffee business were $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. |