Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 17, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MDLZ | ||
Entity Registrant Name | Mondelez International, Inc. | ||
Entity Central Index Key | 1,103,982 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 1,526,612,169 | ||
Entity Public Float | $ 71 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Net revenues | [1] | $ 25,923 | $ 29,636 | $ 34,244 |
Cost of sales | 15,795 | 18,124 | 21,647 | |
Gross profit | 10,128 | 11,512 | 12,597 | |
Selling, general and administrative expenses | 6,540 | 7,577 | 8,457 | |
Asset impairment and exit costs | 852 | 901 | 692 | |
Gains / (loss) on JDE coffee business transactions and divestiture | (9) | (6,822) | ||
Loss on deconsolidation of Venezuela | 778 | |||
Amortization of intangibles | 176 | 181 | 206 | |
Operating income (loss) | 2,569 | 8,897 | 3,242 | |
Interest and other expense, net | 1,115 | 1,013 | 688 | |
Earnings before income taxes | 1,454 | 7,884 | 2,554 | |
Provision for income taxes | (129) | (593) | (353) | |
Gain on equity method investment exchange | 43 | |||
Equity method investment net earnings | 301 | |||
Net earnings | 1,669 | 7,291 | 2,201 | |
Noncontrolling interest earnings | (10) | (24) | (17) | |
Net earnings attributable to Mondelez International | $ 1,659 | $ 7,267 | $ 2,184 | |
Per share data: | ||||
Basic earnings per share attributable to Mondelez International | $ 1.07 | $ 4.49 | $ 1.29 | |
Diluted earnings per share attributable to Mondelez International | 1.05 | 4.44 | 1.28 | |
Dividends declared | $ 0.72 | $ 0.64 | $ 0.58 | |
[1] | In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. |
Consolidated Statements of Com3
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net earnings | $ 1,669 | $ 7,291 | $ 2,201 |
Other comprehensive earnings / (losses), net of tax: | |||
Currency translation adjustment | (925) | (2,990) | (3,661) |
Pension and other benefit plans | (153) | 340 | (682) |
Derivative cash flow hedges | (75) | (44) | (119) |
Total other comprehensive earnings / (losses) | (1,153) | (2,694) | (4,462) |
Comprehensive earnings / (losses) | 516 | 4,597 | (2,261) |
less: Comprehensive earnings / (losses) attributable to noncontrolling interests | (7) | (2) | (16) |
Comprehensive earnings / (losses) attributable to Mondelez International | $ 523 | $ 4,599 | $ (2,245) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 1,741 | $ 1,870 |
Trade receivables (net of allowances of $58 at December 31, 2016 and $54 at December 31, 2015) | 2,611 | 2,634 |
Other receivables (net of allowances of $93 at December 31, 2016 and $109 at December 31, 2015) | 859 | 1,212 |
Inventories, net | 2,469 | 2,609 |
Other current assets | 800 | 633 |
Total current assets | 8,480 | 8,958 |
Property, plant and equipment, net | 8,229 | 8,362 |
Goodwill | 20,276 | 20,664 |
Intangible assets, net | 18,101 | 18,768 |
Prepaid pension assets | 159 | 69 |
Deferred income taxes | 358 | 277 |
Equity method investments | 5,585 | 5,387 |
Other assets | 350 | 358 |
TOTAL ASSETS | 61,538 | 62,843 |
LIABILITIES | ||
Short-term borrowings | 2,531 | 236 |
Current portion of long-term debt | 1,451 | 605 |
Accounts payable | 5,318 | 4,890 |
Accrued marketing | 1,745 | 1,634 |
Accrued employment costs | 736 | 844 |
Other current liabilities | 2,636 | 2,713 |
Total current liabilities | 14,417 | 10,922 |
Long-term debt | 13,217 | 14,557 |
Deferred income taxes | 4,721 | 4,750 |
Accrued pension costs | 2,014 | 2,183 |
Accrued postretirement health care costs | 382 | 499 |
Other liabilities | 1,572 | 1,832 |
TOTAL LIABILITIES | 36,323 | 34,743 |
Commitments and Contingencies (Note 12) | ||
EQUITY | ||
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at December 31, 2016 and December 31, 2015) | 0 | 0 |
Additional paid-in capital | 31,847 | 31,760 |
Retained earnings | 21,149 | 20,700 |
Accumulated other comprehensive losses | (11,122) | (9,986) |
Treasury stock, at cost (468,172,237 shares at December 31, 2016 and 416,504,624 shares at December 31, 2015) | (16,713) | (14,462) |
Total Mondelez International Shareholders' Equity | 25,161 | 28,012 |
Noncontrolling interest | 54 | 88 |
TOTAL EQUITY | 25,215 | 28,100 |
TOTAL LIABILITIES AND EQUITY | $ 61,538 | $ 62,843 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Trade receivables, allowances | $ 58 | $ 54 |
Other receivables, allowances | $ 93 | $ 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 | 468,172,237 | 416,504,624 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/(Losses) | Treasury Stock | Noncontrolling Interest |
Balances at Dec. 31, 2013 | $ 32,532 | $ 31,396 | $ 13,419 | $ (2,889) | $ (9,553) | $ 159 |
Comprehensive earnings / (losses): | ||||||
Net earnings | 2,201 | 2,184 | 17 | |||
Other comprehensive earnings (losses), net of income taxes | (4,462) | (4,429) | (33) | |||
Exercise of stock options and issuance of other stock awards | 505 | 271 | (98) | 332 | ||
Common Stock repurchased | (1,891) | (1,891) | ||||
Cash dividends declared ( $0.72 per share for 2016, $0.64 per share for 2015, and $0.58 per share for 2014) | (976) | (976) | ||||
Dividends paid on noncontrolling interest and other activities | (56) | (16) | (40) | |||
Balances at Dec. 31, 2014 | 27,853 | 31,651 | 14,529 | (7,318) | (11,112) | 103 |
Comprehensive earnings / (losses): | ||||||
Net earnings | 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 ( $0.72 per share for 2016, $0.64 per share for 2015, and $0.58 per share for 2014) | (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 |
Comprehensive earnings / (losses): | ||||||
Net earnings | 1,669 | 1,659 | 10 | |||
Other comprehensive earnings (losses), net of income taxes | (1,153) | (1,136) | (17) | |||
Exercise of stock options and issuance of other stock awards | 343 | 87 | (94) | 350 | ||
Common Stock repurchased | (2,601) | (2,601) | ||||
Cash dividends declared ( $0.72 per share for 2016, $0.64 per share for 2015, and $0.58 per share for 2014) | (1,116) | (1,116) | ||||
Dividends paid on noncontrolling interest and other activities | (27) | (27) | ||||
Balances at Dec. 31, 2016 | $ 25,215 | $ 31,847 | $ 21,149 | $ (11,122) | $ (16,713) | $ 54 |
Consolidated Statements of Equ7
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash dividends declared, per share | $ 0.19 | $ 0.19 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.17 | $ 0.15 | $ 0.15 | $ 0.72 | $ 0.64 | $ 0.58 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES | |||
Net earnings | $ 1,669 | $ 7,291 | $ 2,201 |
Adjustments to reconcile net earnings to operating cash flows: | |||
Depreciation and amortization | 823 | 894 | 1,059 |
Stock-based compensation expense | 140 | 136 | 141 |
Deferred income tax benefit | (141) | (30) | (186) |
Asset impairments and accelerated depreciation | 446 | 345 | 240 |
Loss on early extinguishment of debt | 428 | 748 | 493 |
Loss on deconsolidation of Venezuela | 778 | ||
Gains on divestitures and JDE coffee business transactions | (9) | (6,822) | |
JDE coffee business transactions currency-related net gains | (436) | (628) | |
Gain on equity method investment exchange | (43) | ||
Equity method investment net earnings | (301) | (56) | (113) |
Distributions from equity method investments | 75 | 58 | 63 |
Other non-cash items, net | (43) | 199 | (134) |
Change in assets and liabilities, net of acquisitions and divestitures: | |||
Receivables, net | 31 | 44 | 184 |
Inventories, net | 62 | (49) | (188) |
Accounts payable | 409 | 659 | 387 |
Other current assets | (176) | 28 | (86) |
Other current liabilities | 60 | 152 | 135 |
Change in pension and postretirement assets and liabilities, net | (592) | (211) | (6) |
Net cash provided by operating activities | 2,838 | 3,728 | 3,562 |
CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES | |||
Capital expenditures | (1,224) | (1,514) | (1,642) |
Proceeds from JDE coffee business transactions currency hedge settlements | 1,050 | ||
Acquisitions, net of cash received | (246) | (527) | (7) |
Proceeds from JDE coffee business transaction and divestitures, net of disbursements | 303 | 4,735 | |
Reduction of cash due to Venezuela deconsolidation | (611) | ||
Capital contribution to JDE | (544) | ||
Proceeds from sale of property, plant and equipment and other assets | 138 | 60 | 7 |
Net cash (used in) / provided by investing activities | (1,029) | 2,649 | (1,642) |
CASH PROVIDED BY / (USED IN) FINANCING ACTIVITIES | |||
Issuances of commercial paper, maturities greater than 90 days | 1,540 | 613 | 2,082 |
Repayments of commercial paper, maturities greater than 90 days | (1,031) | (710) | (2,713) |
Net (repayments) / issuances of other short-term borrowings | 1,741 | (931) | 398 |
Long-term debt proceeds | 5,640 | 4,624 | 3,032 |
Long-term debt repaid | (6,186) | (4,975) | (3,017) |
Repurchase of Common Stock | (2,601) | (3,622) | (1,700) |
Dividends paid | (1,094) | (1,008) | (964) |
Other | 129 | 126 | 194 |
Net cash used in financing activities | (1,862) | (5,883) | (2,688) |
Effect of exchange rate changes on cash and cash equivalents | (76) | (255) | (223) |
Cash and cash equivalents: | |||
(Decrease) / increase | (129) | 239 | (991) |
Balance at beginning of period | 1,870 | 1,631 | 2,622 |
Balance at end of period | 1,741 | 1,870 | 1,631 |
Cash paid: | |||
Interest | 630 | 747 | 827 |
Income taxes | $ 527 | $ 745 | $ 1,238 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Description of Business: Mondelēz International, Inc. was incorporated in 2000 in the Commonwealth of Virginia. Mondelēz International, Inc., through its subsidiaries (collectively “Mondelēz International,” “we,” “us” and “our”), sells food and beverage products to consumers in approximately 165 countries. Principles of Consolidation: The consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries. For all periods presented through December 31, 2015, the operating results of our Venezuelan subsidiaries are included in our consolidated financial statements. As of the close of the fourth quarter of 2015, we deconsolidated our Venezuelan operations from our consolidated financial statements and recognized a loss on deconsolidation. See Currency Translation and Highly Inflationary Accounting: Venezuela We account for investments in which we exercise significant influence (20%-50% after-tax Divestitures and Acquisitions – JDE Coffee Business Transactions Keurig Transaction Segment Reporting We use the cost method of accounting for investments in which we have an ownership interest of less than 20% and in which we do not exercise significant influence. The noncontrolling interest represents the noncontrolling investors’ interests in the results of subsidiaries that we control and consolidate. All intercompany transactions are eliminated. Use of Estimates: We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require us to make estimates and assumptions that affect a number of amounts in our consolidated financial statements. Significant accounting policy elections, estimates and assumptions include, among others, pension and benefit plan assumptions, valuation assumptions of goodwill and intangible assets, useful lives of long-lived assets, restructuring program liabilities, marketing program accruals, insurance and self-insurance reserves and income taxes. We base our estimates on historical experience and other assumptions that we believe are reasonable. If actual amounts differ from estimates, we include the revisions in our consolidated results of operations in the period the actual amounts become known. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a material effect on our consolidated financial statements. Segment Change: On October 1, 2016, we integrated our Eastern Europe, Middle East, and Africa (“EEMEA”) operating segment into our Europe and Asia Pacific operating segments to further leverage and optimize the operating scale built within the Europe and Asia Pacific regions. Russia, Ukraine, Turkey, Belarus, Georgia and Kazakhstan were combined within our Europe region, while the remaining Middle East and African countries were combined within our Asia Pacific region to form a new Asia, Middle East and Africa (“AMEA”) operating segment. We have reflected the segment change as if it had occurred in all periods presented. As of October 1, 2016, our operations and management structure was organized into four reportable operating segments: • Latin America • AMEA • Europe • North America See Note 16, 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. In 2016, none of our consolidated subsidiaries were subject to highly inflationary accounting. United Kingdom. non-binding two-year 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 11% through December 31, 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 United Kingdom 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 2016 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 $2.2 billion, or 8.6% of consolidated net revenues for the year ended December 31, 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 For 2015 and prior periods presented, the operating results of our Venezuela operations were included in our consolidated statements of earnings. During this time, we recognized a number of currency-related remeasurement losses resulting from devaluations of the Venezuela bolivar exchange rates 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 a history of the remeasurement losses, the deconsolidation loss and historical operating results and financial position of our Venezuelan subsidiaries for the periods presented: For the Years Ended December 31, 2015 2014 (in millions) Net revenues $ 1,217 $ 760 Operating income (excluding remeasurement and 266 181 Remeasurement losses: Q1 2014: 6.30 to 10.70 bolivars to the U.S. dollar – (142 ) SICAD I remeasurements through – (25 ) Q1 2015: 11.50 to 12.00 bolivars to the U.S. dollar (11 ) – Loss on deconsolidation (778 ) – As of December 31, 2015 2014 (in millions) Cash (1) $ 611 $ 278 Net monetary assets (1) 405 236 Net assets (1) 658 500 (1) Represents the financial position of our Venezuelan subsidiaries prior to the accounting change on December 31, 2015. Beginning in 2016, we no longer include net revenues, earnings or net assets of our Venezuelan subsidiaries within our 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, as our current situation in Venezuela may change over time and lead to consolidation at a future date. Argentina. Other Countries. Cash and Cash Equivalents: Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse 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 $76 million on net revenues and $36 million on operating income in 2015. As a result of this change, each of our operating subsidiaries now reports results as of the last calendar day of the period. As the effect to prior-period results was not material, we have not revised prior-period results. Inventories: We value our inventory using the average cost method. We also record inventory allowances for overstock and obsolete inventories due to ingredient and packaging changes. Long-Lived Assets: Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 20 years and buildings and building improvements over periods up to 40 years. We review long-lived assets, including amortizable intangible assets, for realizability on an ongoing basis. Changes in depreciation, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. We also review for impairment when conditions exist that indicate the carrying amount of the assets may not be fully recoverable. In those circumstances, we perform undiscounted operating cash flow analyses to determine if an impairment exists. When testing for asset impairment, we group assets and liabilities at the lowest level for which cash flows are separately identifiable. Any impairment loss is calculated as the excess of the asset’s carrying value over its estimated fair value. Fair value is estimated based on the discounted cash flows for the asset group over the remaining useful life or based on the expected cash proceeds for the asset less costs of disposal. Any significant impairment losses would be recorded within asset impairment and exit costs in the consolidated statements of earnings. Software Costs: We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are included in property, plant and equipment and amortized on a straight-line basis over the estimated useful lives of the software, which do not exceed seven years. Goodwill and Non-Amortizable We test goodwill and non-amortizable two-step Annually we assess non-amortizable Insurance and Self-Insurance: We use a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability, product liability and our obligation for employee healthcare benefits. We estimate the liabilities associated with these risks on an undiscounted basis by evaluating and making judgments about historical claims experience and other actuarial assumptions and the estimated impact on future results. Revenue Recognition: We recognize revenues when title and risk of loss pass to customers, which generally occurs upon delivery or shipment of goods. Revenues are recorded net of sales incentives and trade promotions and include all shipping and handling charges billed to customers. Our shipping and handling costs are classified as part of cost of sales. Provisions for product returns and other trade allowances are also recorded as reductions to revenues within the same period that the revenue is recognized. Marketing and Research and Development: We promote our products with advertising, marketing, sales incentives and trade promotions. These programs include, but are not limited to, cooperative advertising, in-store year-end Employee Benefit Plans: We provide a range of benefits to our current and retired employees. These include pension benefits, postretirement health care benefits and postemployment benefits depending upon jurisdiction, tenure, job level and other factors. Local statutory requirements govern many of the benefit plans we provide around the world. Local government plans generally cover health care benefits for retirees outside the United States, Canada and United Kingdom. Our U.S., Canadian and U.K. subsidiaries provide health care and other benefits to most retired employees. Our postemployment benefit plans provide primarily severance benefits for eligible salaried and certain hourly employees. The cost for these plans is recognized in earnings primarily over the working life of the covered employee. Financial Instruments: We use financial instruments to manage our currency exchange rate, commodity price and interest rate risks. We monitor and manage these exposures as part of our overall risk management program, which focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results. A principal objective of our risk management strategies is to reduce significant, unanticipated earnings fluctuations that may arise from volatility in currency exchange rates, commodity prices and interest rates, principally through the use of derivative instruments. We use a combination of primarily currency forward contracts, futures, options and swaps; commodity forward contracts, futures and options; and interest rate swaps to manage our exposure to cash flow variability, protect the value of our existing currency assets and liabilities and protect the value of our debt. See Note 8, Financial Instruments, We record derivative financial instruments on a gross basis and at fair value in our consolidated balance sheets within other current assets or other current liabilities due to their relatively short-term duration. Cash flows from derivative instruments are classified in the consolidated statements of cash flows based on the nature of the derivative instrument. Changes in the fair value of a derivative that is designated as a cash flow hedge, to the extent that the hedge is effective, are recorded in accumulated other comprehensive earnings / (losses) and reclassified to earnings when the hedged item affects earnings. Changes in fair value of economic hedges and the ineffective portion of all hedges are recognized in current period earnings. Changes in the fair value of a derivative that is designated as a fair value hedge, along with the changes in the fair value of the related hedged asset or liability, are recorded in earnings in the same period. We use non-U.S. non-U.S. In order to qualify for hedge accounting, a specified level of hedging effectiveness between the derivative instrument and the item being hedged must exist at inception and throughout the hedged period. We must also formally document the nature of and relationship between the derivative and the hedged item, as well as our risk management objectives, strategies for undertaking the hedge transaction and method of assessing hedge effectiveness. Additionally, for a hedge of a forecasted transaction, the significant characteristics and expected term of the forecasted transaction must be specifically identified, and it must be probable that the forecasted transaction will occur. If it is no longer probable that the hedged forecasted transaction will occur, we would recognize the gain or loss related to the derivative in earnings. When we use derivatives, we are exposed to credit and market risks. Credit risk exists when a counterparty to a derivative contract might fail to fulfill its performance obligations under the contract. We reduce our credit risk by entering into transactions with counterparties with high quality, investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. We also maintain a policy of requiring that all significant, non-exchange Commodity cash flow hedges Currency exchange cash flow hedges third-party Interest rate cash flow and fair value hedges Hedges of net investments in non-U.S. non-U.S. Income Taxes: Our provision for income taxes includes amounts payable or refundable for the current year, the effect of deferred tax and impacts from uncertain tax positions. We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of our assets and liabilities, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those differences are expected to reverse. The realization of certain deferred tax assets is dependent on generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. When assessing the need for a valuation allowance, we consider any carryback potential, future reversals of existing taxable temporary differences (including liabilities for unrecognized tax benefits), future taxable income and tax planning strategies. We recognize tax benefits in our financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained by the taxing authorities based on the technical merits of the position. The amount we recognize is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. Future changes in judgment related to the expected resolution of uncertain tax positions could affect income in the period when the change occurs. New Accounting Pronouncements: In January 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that clarifies the definition of a business with the objective of adding guidance to assist companies with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business may affect many areas of accounting including acquisitions, disposals, goodwill and consolidation. The ASU is applied on a prospective basis and is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We are currently assessing the ASU and potential prospective impact on our consolidated financial statements. In November 2016, the FASB issued an ASU that requires the change in restricted cash or cash equivalents to be included with other changes in cash and cash equivalents in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We anticipate adopting this standard at the same time as the cash flow statement classification changes described below go into effect on January 1, 2018. We are currently assessing the impact on our consolidated financial statements. In October 2016, the FASB issued an ASU to amend the consolidation guidance on the treatment of indirect interests held through related parties that are under common control. Under the amendments, a single decision maker is required to include those interests on a proportionate basis consistent with indirect interests held through other related parties . In October 2016, the FASB issued an ASU that requires the recognition of tax consequences of intercompany asset transfers other than inventory when the transfer occurs and removes the exception to postpone recognition until the asset has been sold to an outside party. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We anticipate adopting on January 1, 2018 and do not expect the ASU to have a material impact on our consolidated financial statements. In August 2016, the FASB issued an 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 anticipate adopting this standard on January 1, 2018. We are currently assessing the impact on our consolidated statements of cash flows. 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 will adopt the standard on January 1, 2017. Following adoption and on a prospective basis, we anticipate greater volatility in our consolidated statements of earnings as we will record certain stock-based compensation tax impacts in earnings (within the provision for income taxes) while under the former guidance and for periods prior to January 1, 2017, the tax impacts were recorded directly to equity (within additional paid-in 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. We early adopted this standard on December 31, 2016 and it did not have an impact on our consolidated financial statements. 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 adopted the new standard on December 31, 2016 and it did not have a material impact on our 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 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 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 consolidated financial statements. In May 2014, the FASB issued an ASU on revenue recognition from contracts with customers. The ASU outlines a new, single comprehensive model for companies to use in accounting for revenue. The core principle is that an entity should recognize revenue to depict the transfer of control over promised goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for the goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including significant judgments made in recognizing revenue. In 2016, 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 two ASUs providing technical corrections, narrow scope exceptions and practical expedients to clarify and improve the implementation of the new revenue recognition guidance. The revenue guidance is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date (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 plan to adopt the new standard on January 1, 2018 on a full retrospective basis. We continue to make significant progress on quantifying the impact of the ASU on our consolidated financial statements and planning the final process, policy and disclosure changes that will go into effect on January 1, 2018. At this time, we do not expect a material impact from adopting the new revenue standards. Reclassifications: Certain amounts previously reported have been reclassified to conform to current-year presentation. See Segment Change Goodwill and Intangible Assets Restructuring Programs, Segment Reporting Reclassifications from Accumulated Other Comprehensive Income, |
Divestitures and Acquisitions
Divestitures and Acquisitions | 12 Months Ended |
Dec. 31, 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. (See discussion of the 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 after-tax) pre-tax pre-tax The final value of our 43.5% investment in JDE on July 2, 2015 was € Carte Noire Merrild In 2014 and 2015, 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 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 and the transfer of the sale proceeds to our subsidiaries that deconsolidated net assets and shares, we recognized a net gain of $436 million in 2015 and $628 million in 2014 within interest and other expense, net. We also incurred incremental expenses related to readying our global coffee businesses for the transactions that totaled $278 million for the year ended December 31, 2015 and $77 million for the year ended December 31, 2014. Of these total expenses, $123 million was recorded within asset impairment and exit costs in 2015 and the remainder was recorded within selling, general and administrative expenses of primarily our Europe segment, as well as within 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: On June 30, 2016, we entered into agreements with AHBV and its affiliates to establish a new stock-based compensation arrangement tied to the issuance of JDE equity compensation awards to JDE employees. This arrangement replaced a temporary equity compensation program tied to the issuance of AHBV equity compensation to JDE employees. New Class C, D and E JDE shares were authorized and issued for investments made by and vested stock-based compensation awards granted to JDE employees. Under these arrangements, 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 decreased from 26.5% to 26.4% and AHBV’s Class A shares decreased 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%. Following vesting of stock awards and new employee stock investments, as of December 31, 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 a $13.9 billion acquisition of all of the outstanding common stock of Keurig through a merger transaction. On March 7, 2016, we exchanged with a subsidiary of AHBV a portion of our equity interest in JDE with a carrying value of € pro-rata 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. Of the $301 million equity method investment net earnings in 2016, the contribution from JDE was $100 million, from Keurig was $97 million (since March 7, 2016), from DSF was $75 million and from all other equity investments was $29 million. In 2015, JDE incurred a $58 million loss, which was fully offset by earnings of $38 million from DSF and $21 million from other equity method investments. Within operating income for the first half of 2015, $296 million after-tax pre-tax) pre-tax) Summary Financial Information for Equity Method Investments: Summarized financial information for JDE, Keurig, DSF and our other equity method investments is reflected below. As of December 31, 2016 2015 (in millions) Current assets $ 4,458 $ 3,943 Noncurrent assets 35,089 20,936 Total assets $ 39,547 $ 24,879 Current liabilities $ 4,148 $ 2,779 Noncurrent liabilities 16,472 9,880 Total liabilities $ 20,620 $ 12,659 Total net equity of investees $ 18,927 $ 12,220 Mondelēz International ownership interests 24%-50% 40%-50% Mondelēz International share of investee net equity (1) $ 5,145 $ 5,387 Keurig shareholder loan 440 – Equity method investments $ 5,585 $ 5,387 For the Years Ended December 31, 2016 2015 2014 (in millions) Net revenues $ 10,923 $ 4,993 $ 2,721 Gross profit 4,219 1,551 921 Income from continuing operations 839 96 226 Net income 839 97 226 Net income attributable to investees $ 838 $ 97 $ 226 Mondelēz International ownership interests 24%-50% 40%-50% 40%-50% Mondelēz International share of investee net income $ 281 $ 56 $ 113 Keurig shareholder loan interest income 20 – – Equity method investment net earnings (2) $ 301 $ 56 $ 113 (1) Includes approximately $325 million of basis differences between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees’ equity. (2) Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax after-tax Summary of Significant Accounting Policies – Principles of Consolidation, Spin-Off On October 1, 2012, we divested the Kraft Foods Group grocery business in a spin-off (“Spin-Off”). Spin-Off-related Spin-Off (“Spin-Off pre-tax Other Divestitures and Acquisitions: On January 18, 2017, we reached an agreement to sell most of our grocery business in Australia and New Zealand to Bega Cheese Limited for approximately $460 million Australian dollars ($346 million as of January 18, 2017). As of December 31, 2016, the asset group to be sold consisted of approximately $25 million of current assets and approximately $125 million of non-current Australian-to-U.S. On March 31, 2016, we received a binding offer totaling € € non-current non-current euro-to-U.S. During the year ended December 31, 2016, we also completed the following sale transactions: • On December 31, 2016, we completed the sale of a chocolate factory in Belgium. In connection with this transaction, we recorded a pre-tax € € € € • On December 1, 2016, we completed the sale of a confectionery business in Costa Rica represented by a local brand. The sales price was $28 million and we recorded a pre-tax • On August 26, 2016, we recorded a $7 million gain for the sale of a U.S.-owned biscuit trademark. The gain was recorded within selling, general and administrative expenses in 2016. • On May 2, 2016, we completed the sale of certain local biscuit brands in Finland as part of our strategic decisions to exit select small and local brands and shift investment towards our Power Brands. The sales price was € pre-tax after-tax) € € pre-tax after-tax) On November 2, 2016, we purchased from Burton’s Biscuit Company certain intangibles, which include the license to manufacture, market and sell Cadbury-branded biscuits in additional key markets around the world, including in the United Kingdom, France, Ireland, North America and Saudi Arabia. The transaction was accounted for as a business combination. Total cash paid for the acquired assets was £199 million ($246 million as of December 31, 2016). We are working to complete the valuation work and have recorded a preliminary purchase price allocation of $72 million to definite-life intangible assets, $156 million to goodwill, $14 million to property, plant and equipment and $4 million to inventory as of December 31, 2016. During the third quarter of 2016, we completed the acquisition of a Vietnamese biscuit operation within our AMEA segment. On July 15, 2015, we acquired an 80% interest in the biscuit operation and on August 22, 2016, we acquired the remaining 20% interest. Total cash paid for the biscuit operation, intellectual property, non-compete non-compete non-compete non-current 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 (after-tax 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 consolidated financial statements for the years ended December 31, 2016 and 2015. Sales of Property: On November 9, 2016, we completed the sale of a manufacturing plant in Russia and recorded total expenses of $12 million, including a related fixed asset impairment charge of $4 million within asset impairments and exit costs. The sale of the land, buildings and equipment generated cash proceeds of $6 million. In 2016, we also sold property within our North America segment and from our centrally held corporate assets. In the third quarter, we sold property in North America that generated cash proceeds of $10 million and a pre-tax pre-tax pre-tax pre-tax |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of December 31, 2016 2015 (in millions) Raw materials $ 722 $ 782 Finished product 1,865 1,930 2,587 2,712 Inventory reserves (118 ) (103 ) Inventories, net $ 2,469 $ 2,609 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment Property, plant and equipment consisted of the following: As of December 31, 2016 2015 (in millions) Land and land improvements $ 471 $ 495 Buildings and building improvements 2,801 2,753 Machinery and equipment 10,302 10,044 Construction in progress 1,113 1,262 14,687 14,554 Accumulated depreciation (6,458 ) (6,192 ) Property, plant and equipment, net $ 8,229 $ 8,362 Capital expenditures of $1.2 billion for the year ended December 31, 2016 exclude $343 million of accrued capital expenditures remaining unpaid at December 31, 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 Restructuring Programs For the Years Ended December 31, 2016 2015 2014 (in millions) Latin America $ 22 $ 46 $ 14 AMEA 44 88 34 Europe 122 65 42 North America 111 65 83 Corporate 2 – – Total non-cash $ 301 $ 264 $ 173 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill by segment below reflects our latest segment structure for both periods presented: As of December 31, 2016 2015 (in millions) Latin America $ 897 $ 858 AMEA 3,324 3,537 Europe 7,170 7,404 North America 8,885 8,865 Goodwill $ 20,276 $ 20,664 Intangible assets consisted of the following: As of December 31, 2016 2015 (in millions) Non-amortizable $ 17,004 $ 17,527 Amortizable intangible assets 2,315 2,320 19,319 19,847 Accumulated amortization (1,218 ) (1,079 ) Intangible assets, net $ 18,101 $ 18,768 Non-amortizable LU non-compete Amortization expense for intangible assets was $176 million in 2016, $181 million in 2015 and $206 million in 2014. We currently estimate annual amortization expense for each of the next five years to be approximately $171 million, estimated using December 31, 2016 exchange rates. Changes in goodwill and intangible assets consisted of: 2016 2015 Goodwill Intangible Goodwill Intangible (in millions) Balance at January 1 $ 20,664 $ 19,847 $ 23,389 $ 21,335 Changes due to: Currency (464 ) (540 ) (1,477 ) (1,462 ) Coffee business transactions (4 ) (8 ) (1,729 ) – Acquisitions 80 158 481 58 Asset impairments – (137 ) – (83 ) Other – (1 ) – (1 ) Balance at December 31 $ 20,276 $ 19,319 $ 20,664 $ 19,847 Changes to goodwill and intangibles were: • Coffee business transactions and divestitures – On December 1, 2016, we divested $4 million of goodwill related to the sale of a confectionery business in Costa Rica. On May 2, 2016, we sold $8 million of non-amortizable Divestitures and Acquisitions • Acquisitions – On November 2, 2016, we purchased from Burton’s Biscuit Company certain intangibles, which include a license to manufacture, market and sell Cadbury-branded biscuits in additional key markets. As a result of the acquisition, we recorded a preliminary purchase price allocation of $156 million to goodwill and $72 million to amortizable intangible assets. In connection with the completion of the Vietnam biscuit operation in 2016, we finalized the purchase price allocation of the consideration paid to the net assets acquired and recorded $25 million of amortizable intangible assets and $61 million of non-amortizable Divestitures and Acquisitions – Other Divestitures and Acquisitions • Asset impairments – We recorded $137 million of intangible asset impairments in 2016, $83 million in 2015 and $57 million in 2014. Charges related to our annual testing of non-amortizable Divestitures and Acquisitions – Other Divestitures and Acquisitions In 2016, 2015 and 2014, there were no impairments of goodwill. In connection with our 2016 annual impairment testing, each of our reporting units had sufficient fair value in excess of carrying value. While all reporting units passed our annual impairment testing, if planned business performance expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then the estimated fair values of a reporting unit or reporting units might decline and lead to a goodwill impairment in the future. During our 2016 annual testing of non-amortizable |
Restructuring Programs
Restructuring Programs | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring Programs | Note 6. Restructuring Programs 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 one-time year-end Restructuring Costs: We recorded restructuring charges of $714 million in 2016, $711 million 2015 and $274 million in 2014 within asset impairment and exit costs. The 2014-2018 Restructuring Program liability activity for the years ended December 31, 2016 and 2015 was: Severance and related Asset costs Write-downs Total (in millions) Liability balance, January 1, 2015 $ 224 $ – $ 224 Charges 442 269 711 Cash spent (243 ) – (243 ) Non-cash (4 ) (269 ) (273 ) Currency (24 ) – (24 ) Liability balance, December 31, 2015 $ 395 $ – $ 395 Charges 402 312 714 Cash spent (315 ) – (315 ) Non-cash (9 ) (312 ) (321 ) Currency (9 ) – (9 ) Liability balance, December 31, 2016 $ 464 $ – $ 464 We spent $315 million in 2016 and $243 million in 2015 in cash severance and related costs. We also recognized non-cash Benefit Plans non-cash non-cash 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 $372 million in 2016, $291 million in 2015 and $107 million in 2014. We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs in Operating Income: During 2016, 2015 and 2014, we recorded restructuring and implementation costs related to the 2014-2018 Restructuring Program within operating income by segment (as revised to reflect our new segment structure) as follows: Latin North America AMEA Europe America (1) Corporate (2) Total (in millions) For the Year Ended December 31, 2016 Restructuring Costs $ 111 $ 96 $ 310 $ 183 $ 14 $ 714 Implementation Costs 54 48 88 121 61 372 Total $ 165 $ 144 $ 398 $ 304 $ 75 $ 1,086 For the Year Ended December 31, 2015 Restructuring Costs $ 145 $ 181 $ 243 $ 114 $ 28 $ 711 Implementation Costs 39 26 78 69 79 291 Total $ 184 $ 207 $ 321 $ 183 $ 107 $ 1,002 For the Year Ended December 31, 2014 Restructuring Costs $ 81 $ 30 $ 96 $ 57 $ 10 $ 274 Implementation Costs 16 12 38 5 36 107 Total $ 97 $ 42 $ 134 $ 62 $ 46 $ 381 Total Project 2014-2016 (3) Restructuring Costs $ 337 $ 307 $ 649 $ 354 $ 52 $ 1,699 Implementation Costs 109 86 204 195 176 770 Total $ 446 $ 393 $ 853 $ 549 $ 228 $ 2,469 (1) During 2016, our North America region implementation costs included incremental costs that we incurred related to re-negotiating (2) Includes adjustment for rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through December 31, 2016. 2012-2014 Restructuring Program On October 1, 2012, we completed the Spin-Off one-time Of the $1.5 billion of 2012-2014 Restructuring Program costs, we retained approximately $925 million and Kraft Foods Group retained the balance of the program. Through the end of 2014, we incurred total restructuring and related implementation charges of $899 million and completed incurring planned charges on the 2012-2014 Restructuring Program. Restructuring Costs: We recorded reversals to the restructuring charges of $4 million in 2015 related to accruals no longer required. We recorded restructuring charges of $360 million in 2014 within asset impairment and exit costs. During 2014, we recorded out-of-period The 2012-2014 Restructuring Program liability activity for the years ended December 31, 2016 and 2015 was: Severance and related Asset costs Write-downs Total (in millions) Liability balance, January 1, 2015 $ 128 $ – $ 128 Charges (4 ) – (4 ) Cash spent (66 ) – (66 ) Non-cash (4 ) – (4 ) Currency (7 ) – (7 ) Liability balance, December 31, 2015 $ 47 $ – $ 47 Charges – – – Cash spent (21 ) – (21 ) Non-cash (6 ) – (6 ) Currency (1 ) – (1 ) Liability balance, December 31, 2016 $ 19 $ – $ 19 We spent $21 million in 2016 and $66 million in 2015 in cash severance and related costs. We also recognized non-cash Benefit Plans non-cash Implementation Costs: Implementation costs related to our 2012-2014 Restructuring Program primarily relate to activities in connection with the Kraft Foods Group Spin-Off Restructuring and Implementation Costs in Operating Income: During 2014 and since inception of the 2012-2014 Restructuring Program, we recorded restructuring and implementation costs within operating income by segment (as revised to reflect our new segment structure) as follows: Latin North America AMEA Europe America Corporate (1) Total (in millions) For the Year Ended December 31, 2014 Restructuring Costs $ 8 $ 77 $ 162 $ 113 $ – $ 360 Implementation Costs 3 6 54 32 4 99 Total $ 11 $ 83 $ 216 $ 145 $ 4 $ 459 Total Project 2012-2014 (2) Restructuring Costs $ 36 $ 83 $ 271 $ 337 $ 2 $ 729 Implementation Costs 3 8 90 65 4 170 Total $ 39 $ 91 $ 361 $ 402 $ 6 $ 899 (1) Includes adjustment for rounding. (2) Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 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 December 31, 2016 2015 Amount Weighted- Amount Weighted- Outstanding Average Rate Outstanding Average Rate (in millions) (in millions) Commercial paper $ 2,371 1.0% $ – 0.0% Bank loans 160 10.6% 236 9.5% Total short-term borrowings $ 2,531 $ 236 As of December 31, 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 December 31, 2016, we complied with this covenant as our shareholders’ equity, as defined by the covenant, was $36.3 billion. The revolving credit facility agreement also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. As of December 31, 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 December 31, 2016 and $1.9 billion at December 31, 2015. Borrowings on these lines amounted to $160 million at December 31, 2016 and $236 million at December 31, 2015. Long-Term Debt: Our long-term debt consisted of (interest rates are as of December 31, 2016): As of December 31, 2016 2015 (in millions) U.S. dollar notes, 0.881% to 7.000% (weighted-average effective rate 3.527%), $ 8,812 $ 8,371 Euro notes, 1.000% to 2.375% (weighted-average effective rate 1.808%), 3,980 4,305 Pound sterling notes, 3.875% to 7.250% (weighted-average effective rate 4.441%), 418 1,399 Swiss franc notes, 0.000% to 1.125% (weighted-average effective rate 0.636%), 1,449 1,075 Capital leases and other obligations 9 12 Total 14,668 15,162 Less current portion of long-term (1,451 ) (605 ) Long-term debt $ 13,217 $ 14,557 Deferred debt issuance costs of $40 million as of December 31, 2016 and $46 million as of December 31, 2015 are netted against the related debt in the table above. These amounts were reclassified from long-term other assets to offset the related debt in the fourth quarter of 2015, except for deferred financing costs related to our revolving credit facility which remain in long-term other assets and were immaterial for all periods presented. As of December 31, 2016, aggregate maturities of our debt and capital leases based on stated contractual maturities, excluding unamortized non-cash mark-to-market 2017 2018 2019 2020 2021 Thereafter Total $1,451 $1,144 $2,650 $658 $3,260 $5,574 $14,737 On December 16, 2016, we redeemed $850 million of 2.250% fixed rate notes, maturing on February 1, 2019, that were issued on January 16, 2014. The notes were redeemed at a redemption cost equal to $866 million, plus accrued and unpaid interest of $7 million. In connection with this redemption, during the three months ended December 31, 2016, we recorded a $19 million loss on debt extinguishment within interest and other expense, net. On October 31, 2016, we completed a cash tender offer and retired $3.18 billion of U.S. dollar, euro and British pound sterling-denominated notes. We financed the repurchase of the notes, including the payment of accrued interest and other costs incurred, from net proceeds received on October 28, 2016 from the $3.75 billion note issuance and the term loans described below. In connection with retiring this debt, during the three months ended December 31, 2016, we recorded a $409 million loss on debt extinguishment within interest expense related to the amount we paid to retire the debt in excess of its carrying value and from recognizing unamortized premiums and deferred financing costs in earnings at the time of the debt extinguishment. Cash costs related to tendering the debt are included in long-term debt repayments in the consolidated statement of cash flows for the year ended December 31, 2016. We also recognized $1 million in interest income related to the partial settlement of fair value hedges due to the tender. 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 received proceeds, net of discounts and associated financing costs, of $3.73 billion. Proceeds from the notes issuance were used for general corporate purposes, including to grant loans or make distributions to Mondelēz International, Inc. or its subsidiaries to fund the October 2016 cash tender offer and near-term debt maturities. We recorded approximately $20 million of deferred financing costs and discounts, which will be amortized 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 funding occurred 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 € On November 30, 2015, we completed a cash tender offer and retired £247 million of British pound sterling-denominated 7.250% notes, or approximately $372 million in U.S. dollars as of November 30, 2015, due in July 2018. We financed the repurchase of these notes, including the payment of accrued interest and other costs incurred, from net proceeds received from the £400 million British pound sterling-denominated notes issuance on November 25, 2015 described below. In connection with retiring this debt, during the three months ended December 31, 2015, we recorded a $40 million loss on extinguishment of debt within interest expense related to the amount we paid to retire the debt in excess of its carrying value and from recognizing unamortized premiums and deferred financing costs in earnings at the time of the debt extinguishment. Cash costs related to tendering the debt are included in long-term debt repayments in the consolidated statement of cash flows for the year ended December 31, 2015. On November 25, 2015, we issued £400 million of British pound sterling-denominated 4.500% notes, or $609 million in U.S. dollars locked in with a forward currency contract on November 19, 2015, that mature on December 3, 2035. We received proceeds net of discounts and deferred financing costs of $604 million that were used to fund the November 2015 cash tender offer and for other general corporate purposes. We recorded approximately $5 million of discounts and deferred financing costs, which will be amortized into interest expense over the life of the notes. On October 6, 2015 we issued fr • fr • fr We received proceeds net of premiums and deferred financing costs of $410 million that were used for general corporate purposes and to fund upcoming debt maturities. We recorded the fr On June 11, 2015, € On March 30, 2015, we issued fr • fr • fr • fr We received net proceeds of $675 million that were used for general corporate purposes. We recorded approximately $2 million of premiums and deferred financing costs, which will be amortized into interest expense over the life of the notes. On March 20, 2015, € On March 20, 2015, we completed a cash tender offer and retired $2.5 billion of long-term U.S. dollar debt consisting of: • $102 million of our 6.500% Notes due in August 2017 • $115 million of our 6.125% Notes due in February 2018 • $80 million of our 6.125% Notes due in August 2018 • $691 million of our 5.375% Notes due in February 2020 • $201 million of our 6.500% Notes due in November 2031 • $26 million of our 7.000% Notes due in August 2037 • $71 million of our 6.875% Notes due in February 2038 • $69 million of our 6.875% Notes due in January 2039 • $1,143 million of our 6.500% Notes due in February 2040 We financed the repurchase of these notes, including the payment of accrued interest and other costs incurred, from net proceeds received from the $2.8 billion notes issuance on March 6, 2015 described below and the issuance of commercial paper. In connection with retiring this debt, during the first three months of 2015, we recorded a $708 million loss on extinguishment of debt within interest expense related to the amount we paid to retire the debt in excess of its carrying value and from recognizing unamortized discounts and deferred financing costs in earnings at the time of the debt extinguishment. Cash costs related to tendering the debt are included in long-term debt repayments in the consolidated statement of cash flows for the year ended December 31, 2015. We also recognized $5 million of charges within interest expense from hedging instruments related to the retired debt. Upon extinguishing the debt, the deferred cash flow hedge amounts were recorded in earnings. On March 6, 2015, we issued € • € • € • € • £450 million (or $667 million) of 3.875% fixed rate notes that mature on March 6, 2045 We received net proceeds of $2,890 million that were used to fund the March 2015 tender offer and for other general corporate purposes. We recorded approximately $29 million of discounts and deferred financing costs, which will be amortized into interest expense over the life of the notes. Our weighted-average interest rate on our total debt was 2.2% as of December 31, 2016, 3.7% as of December 31, 2015 and 4.3% as of December 31, 2014. Fair Value of Our Debt: The fair value of our short-term borrowings at December 31, 2016 and December 31, 2015 reflects current market interest rates and approximates the amounts we have recorded on our consolidated balance sheet. The fair value of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations. At December 31, 2016, the aggregate fair value of our total debt was $17,882 million and its carrying value was $17,199 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 Years Ended December 31, 2016 2015 2014 (in millions) Interest expense, debt $ 515 $ 609 $ 778 Loss on debt extinguishment and related expenses 427 753 495 JDE coffee business transactions currency-related net gains – (436 ) (628 ) Loss related to interest rate swaps 97 34 – Other expense, net 76 53 43 Interest and other expense, net $ 1,115 $ 1,013 $ 688 See Note 2, Divestitures and Acquisitions, Financial Instruments, Financial Instruments |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments | Note 8. Financial Instruments Fair Value of Derivative Instruments: Derivative instruments were recorded at fair value in the consolidated balance sheets as follows: As of December 31, 2016 2015 Asset Liability Asset Liability Derivatives Derivatives Derivatives Derivatives (in millions) Derivatives designated as accounting hedges: Currency exchange contracts $ 19 $ 8 $ 20 $ 7 Commodity contracts 17 22 37 35 Interest rate contracts 108 19 12 57 $ 144 $ 49 $ 69 $ 99 Derivatives not designated as accounting hedges: Currency exchange contracts $ 29 $ 43 $ 61 $ 33 Commodity contracts 112 167 70 56 Interest rate contracts 27 19 43 28 $ 168 $ 229 $ 174 $ 117 Total fair value $ 312 $ 278 $ 243 $ 216 During 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. non-U.S. Debt and Borrowing Arrangements The fair values (asset / (liability)) of our derivative instruments were determined using: As of December 31, 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 $ (3 ) $ – $ (3 ) $ – Commodity contracts (60 ) (86 ) 26 – Interest rate contracts 97 – 97 – Total derivatives $ 34 $ (86 ) $ 120 $ – 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 $133 million as of December 31, 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 $48 million as of December 31, 2016 and $52 million as of December 31, 2015. For derivatives we have in a net liability position, we would owe $2 million as of December 31, 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 set-off. net-settled Derivative Volume: The net notional values of our derivative instruments were: Notional Amount As of December 31, 2016 2015 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,343 $ 4,148 Forecasted transactions 1,452 1,094 Commodity contracts 837 732 Interest rate contracts 6,365 3,033 Net investment hedge – euro notes 4,012 4,345 Net investment hedge – pound sterling notes 419 1,404 Net investment hedge – Swiss franc notes 1,447 1,073 Cash Flow Hedges: Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings / (losses) included: For the Years Ended December 31, 2016 2015 2014 (in millions) Accumulated gain / (loss) at January 1 $ (45 ) $ (2 ) $ 117 Transfer of realized losses / (gains) in fair value to earnings 53 – (40 ) Unrealized gain / (loss) in fair value (129 ) (43 ) (79 ) Accumulated gain / (loss) at December 31 $ (121 ) $ (45 ) $ (2 ) After-tax For the Years Ended December 31, 2016 2015 2014 (in millions) Currency exchange contracts – forecasted transactions $ (1 ) $ 83 $ 26 Commodity contracts (4 ) (52 ) 16 Interest rate contracts (48 ) (31 ) (2 ) Total $ (53 ) $ – $ 40 After-tax For the Years Ended December 31, 2016 2015 2014 (in millions) Currency exchange contracts – forecasted transactions $ 8 $ 40 $ 82 Commodity contracts (34 ) (35 ) (2 ) Interest rate contracts (103 ) (48 ) (159 ) Total $ (129 ) $ (43 ) $ (79 ) Pre-tax For the Years Ended December 31, 2016 2015 2014 (in millions) Commodity contracts $ 2 $ (4 ) $ (10 ) Within interest and other expense, net, we recorded pre-tax We record pre-tax after-tax • 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 losses of $31 million (net of taxes) for commodity cash flow hedges, unrealized gains of $10 million (net of taxes) for currency cash flow hedges and unrealized losses of $2 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. Hedge Coverage: As of December 31, 2016, we hedged transactions forecasted to impact cash flows over the following periods: • commodity transactions for periods not exceeding the next 12 months; • interest rate transactions for periods not exceeding the next 6 years and 10 months; and • currency exchange transactions for periods not exceeding the next 12 months. Fair Value Hedges: Pre-tax For the Years Ended December 31, 2016 2015 2014 (in millions) Derivatives $ (6 ) $ (1 ) $ 13 Borrowings 6 1 (13 ) Fair value hedge ineffectiveness and amounts excluded from effectiveness testing were not material for all periods presented. Economic Hedges: Pre-tax For the Years Ended December 31, Location of Recognized 2016 2015 2014 in Earnings (in millions) Currency exchange contracts: Intercompany loans and $ 21 $ 29 $ 4 Interest and other Forecasted transactions (76 ) 29 29 Cost of sales Forecasted transactions 11 435 610 Interest and other Forecasted transactions 7 (12 ) (4 ) Selling, general Commodity contracts (101 ) (38 ) (136 ) Cost of sales Total $ (138 ) $ 443 $ 503 In connection with the coffee business transactions, we entered into a number of consecutive euro to U.S. dollar currency exchange forward contracts in 2015 and 2014 to lock in an equivalent expected value in U.S. dollars. The mark-to-market Divestitures and Acquisitions — JDE Coffee Business Transactions Hedges of Net Investments in International Operations: After-tax Location of For the Years Ended December 31, Gain / (Loss) 2016 2015 2014 Recognized in AOCI (in millions) Euro notes $ 73 $ 268 $ 328 Currency Pound sterling notes 148 42 39 Translation Swiss franc notes 12 9 – Adjustment |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Benefit Plans | Note 9. Benefit Plans Pension Plans Prior to the July 2, 2015 closing of the coffee business transactions, certain active employees who transitioned to JDE participated in our Non-U.S. Obligations and Funded Status: The projected benefit obligations, plan assets and funded status of our pension plans were: U.S. Plans Non-U.S. 2016 2015 2016 2015 (in millions) Benefit obligation at January 1 $ 1,566 $ 1,606 $ 9,547 $ 10,854 Service cost 57 64 147 188 Interest cost 61 67 229 307 Benefits paid (32 ) (35 ) (425 ) (435 ) Settlements paid (91 ) (88 ) – 1 Actuarial (gains) / losses 52 (49 ) 1,284 (262 ) Deconsolidation of JDE coffee business – – – (261 ) Divestiture – – (5 ) – Currency – – (979 ) (766 ) Other 1 1 16 (79 ) Benefit obligation at December 31 1,614 1,566 9,814 9,547 Fair value of plan assets at January 1 1,247 1,216 7,721 8,362 Actual return on plan assets 118 (71 ) 1,079 192 Contributions 378 225 419 318 Benefits paid (32 ) (35 ) (425 ) (435 ) Settlements paid (91 ) (88 ) – – Deconsolidation of JDE coffee business – – – (130 ) Divestiture – – (4 ) – Currency – – (863 ) (579 ) Other – – (1 ) (7 ) Fair value of plan assets at December 31 1,620 1,247 7,926 7,721 Net pension assets (liability) at December 31 $ 6 $ (319 ) $ (1,888 ) $ (1,826 ) The accumulated benefit obligation, which represents benefits earned to the measurement date, was $1,540 million at December 31, 2016 and $1,463 million at December 31, 2015 for the U.S. pension plans. The accumulated benefit obligation for the non-U.S. For salaried and non-union non-union non-union The combined U.S. and non-U.S. As of December 31, 2016 2015 (in millions) Prepaid pension assets $ 159 $ 69 Other accrued liabilities (27 ) (31 ) Accrued pension costs (2,014 ) (2,183 ) $ (1,882 ) $ (2,145 ) Certain of our U.S. and non-U.S. U.S. Plans Non-U.S. As of December 31, As of December 31, 2016 2015 2016 2015 (in millions) Projected benefit obligation $ 96 $ 1,566 $ 8,386 $ 8,139 Accumulated benefit obligation 88 1,463 8,168 7,920 Fair value of plan assets 2 1,247 6,451 6,252 We used the following weighted-average U.S. Plans Non-U.S. As of December 31, As of December 31, 2016 2015 2016 2015 Discount rate 4.19% 4.50% 2.31% 3.11% Expected rate of return on plan assets 6.25% 6.75% 5.14% 5.87% Rate of compensation increase 4.00% 4.00% 3.29% 3.18% Year-end fixed-income Year-end non-U.S. year-over-year. At the end of 2015, we changed the approach used to measure service and interest costs for pension benefits. 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 measured 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 provided 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 $64 million for the year ended December 31, 2016. This change did not affect the measurement of our plan obligations. We accounted for this change as a change in accounting estimate and, accordingly, accounted for it on a prospective basis. Components of Net Periodic Pension Cost: Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. For the Years Ended December 31, For the Years Ended December 31, 2016 2015 2014 2016 2015 2014 (in millions) Service cost $ 57 $ 64 $ 57 $ 147 $ 188 $ 184 Interest cost 61 67 67 229 307 388 Expected return on plan assets (97 ) (93 ) (81 ) (418 ) (478 ) (485 ) Amortization: Net loss from experience 42 43 29 120 141 106 Prior service cost (1) 2 2 2 (3 ) 15 – Settlement losses and (2) 30 19 28 6 2 14 Net periodic pension cost $ 95 $ 102 $ 102 $ 81 $ 175 $ 207 (1) For the year ended December 31, 2015, amortization of prior service cost includes $17 million of pension curtailment losses related to employees who transitioned to JDE upon the contribution of our global coffee business. Refer to Note 2 , Divestitures and Acquisitions – JDE Coffee Business Transactions (2) Settlement losses include $15 million for the year ended December 31, 2016 and $9 million for the year ended December 31, 2015 of pension settlement losses for employees who elected lump-sum lump-sum non-U.S. non-U.S. lump-sum lump-sum non-U.S. Restructuring Programs , Divestitures and Acquisitions – JDE Coffee Business Transactions For the U.S. plans, we determine the expected return on plan assets component of net periodic benefit cost using a calculated market return value that recognizes the cost over a four year period. For our non-U.S. As of December 31, 2016, for the combined U.S. and non-U.S. • an estimated $202 million of net loss from experience differences; and • $1 million of estimated prior service credit. We used the following weighted-average U.S. Plans Non-U.S. For the Years Ended December 31, For the Years Ended December 31, 2016 2015 2014 2016 2015 2014 Discount rate 4.50% 4.20% 5.10% 3.11% 2.99% 4.03% Expected rate of return on 6.75% 7.25% 7.75% 5.87% 5.96% 6.17% Rate of compensation increase 4.00% 4.00% 4.00% 3.18% 3.26% 3.63% Plan Assets: The fair value of pension plan assets was determined using the following fair value measurements: As of December 31, 2016 Quoted Prices Significant Asset Category Total Fair in Active Markets Other (Level 2) Significant (Level 3) (in millions) U.S. equity securities $ 1 $ 1 $ – $ – Non-U.S. 427 427 – – Pooled funds - equity securities 1,524 286 1,235 3 Total equity securities 1,952 714 1,235 3 Government bonds 3,009 37 2,972 – Pooled funds - fixed-income securities 756 103 618 35 Corporate bonds and other 852 357 (43 ) 538 Total fixed-income securities 4,617 497 3,547 573 Real estate 170 98 50 22 Hedge funds – – – – Private equity 2 – – 2 Cash 73 72 1 – Other 3 1 – 2 Total assets in the fair value hierarchy $ 6,817 $ 1,382 $ 4,833 $ 602 Investments measured at net asset value 2,667 Total Investments at fair value $ 9,484 As of December 31, 2015 Quoted Prices Significant Asset Category Total Fair in Active Markets Other (Level 2) Significant (Level 3) (in millions) U.S. equity securities $ 2 $ 2 $ – $ – Non-U.S. 498 412 86 – Pooled funds - equity securities 1,468 275 1,193 – Total equity securities 1,968 689 1,279 – Government bonds 1,770 35 1,735 – Pooled funds - fixed-income securities 575 118 431 26 Corporate bonds and other 1,686 320 701 665 Total fixed-income securities 4,031 473 2,867 691 Real estate 339 109 – 230 Hedge funds – – – – Private equity 2 – – 2 Cash 138 138 – – Other 2 1 – 1 Total assets in the fair value hierarchy $ 6,480 $ 1,410 $ 4,146 $ 924 Investments measured at net asset value 2,422 Total investments at fair value $ 8,902 We excluded plan assets of $62 million at December 31, 2016 and $66 million at December 31, 2015 from the above tables related to certain insurance contracts as they are reported at contract value, in accordance with authoritative guidance. Fair value measurements: • Level 1 – includes primarily U.S and non-U.S. • Level 2 – includes primarily pooled funds, including assets in real estate pooled funds, valued using net asset values of participation units held in common collective trusts, as reported by the managers of the trusts and as supported by the unit prices of actual purchase and sale transactions. Level 2 plan assets also include corporate bonds and other fixed-income securities, valued using independent observable market inputs, such as matrix pricing, yield curves and indices. • Level 3 – includes investments valued using unobservable inputs that reflect the plans’ assumptions that market participants would use in pricing the assets, based on the best information available. • Fair value estimates for pooled funds are calculated by the investment advisor when reliable quotations or pricing services are not readily available for certain underlying securities. The estimated value is based on either cost or last sale price for most of the securities valued in this fashion. • Fair value estimates for private equity investments are calculated by the general partners using the market approach to estimate the fair value of private investments. The market approach utilizes prices and other relevant information generated by market transactions, type of security, degree of liquidity, restrictions on the disposition, latest round of financing data, company financial statements, relevant valuation multiples and discounted cash flow analyses. • Fair value estimates for real estate investments are calculated by the investment managers using the present value of future cash flows expected to be received from the investments, based on valuation methodologies such as appraisals, local market conditions, and current and projected operating performance. • Fair value estimates for investments in hedge fund-of-funds • Fair value estimates for certain fixed-income securities such as insurance contracts are calculated based on the future stream of benefit payments discounted using prevailing interest rates based on the valuation date. • Net asset value – primarily includes real estate funds, hedge funds and private equity investments for which net asset values are normally used. Changes in our Level 3 plan assets, which are recorded in other comprehensive earnings / (losses), included: Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Non-U.S. $ – $ – $ – $ 3 $ – 3 Pooled funds- fixed-income securities 26 6 15 (7 ) (5 ) 35 Corporate bond and other 665 21 (41 ) – (107 ) 538 Real estate 230 – (184 ) (3 ) (21 ) 22 Hedge funds – – – – – – Private equity 3 – – 1 – 4 Total Level 3 investments $ 924 $ 27 $ (210 ) $ (6 ) $ (133 ) $ 602 Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Pooled funds- fixed-income securities $ 97 $ (1 ) $ 25 $ (89 ) $ (6 ) $ 26 Corporate bond and other 749 4 (50 ) – (38 ) 665 Real estate 292 19 61 (125 ) (17 ) 230 Hedge funds 829 13 (312 ) (499 ) (31 ) – Private equity 240 17 (36 ) (206 ) (12 ) 3 Total Level 3 investments $ 2,207 $ 52 $ (312 ) $ (919 ) $ (104 ) $ 924 The decreases in Level 3 pension plan investments during 2016 were primarily due to net settlements in real estate funds and the effects of currency. The decreases in Level 3 pension plan investments during 2015 were primarily due to net settlements in hedge funds and the effects of currency. The percentage of fair value of pension plan assets was: U.S. Plans Non-U.S. As of December 31, As of December 31, Asset Category 2016 2015 2016 2015 Equity securities 33% 32% 29% 32% Fixed-income securities 63% 65% 57% 50% Real estate 4% 3% 5% 6% Hedge funds – – 6% 7% Private equity – – 2% 3% Cash – – 1% 1% Other – – – 1% Total 100% 100% 100% 100% For our U.S. plans, our investment strategy is to reduce the risk of underfunded plans in part through appropriate asset allocation within our plan assets. We attempt to maintain our target asset allocation by rebalancing between asset classes as we make contributions and monthly benefit payments. The strategy involves using indexed U.S. equity and international equity securities and actively managed U.S. investment grade fixed-income securities (which constitute 95% or more of fixed-income securities) with smaller allocations to high yield fixed-income securities. For our non-U.S. non-U.S. non-U.S. non-U.S. buy-in Employer Contributions: In 2016, we contributed $378 million (of which, $350 million was voluntarily contributed) to our U.S. pension plans and $403 million (of which, $100 million was a non-recurring non-U.S. non-U.S. non-U.S. In 2017, we estimate that our pension contributions will be $13 million to our U.S. plans and $455 million to our non-U.S. Future Benefit Payments: The estimated future benefit payments from our pension plans at December 31, 2016 were (in millions): Year ending: 2017 2018 2019 2020 2021 2022-2026 U.S. Plans $ 89 $ 97 $ 103 $ 107 $ 108 $ 568 Non-U.S. 357 356 363 378 400 2,138 Multiemployer Pension Plans: In accordance with obligations we have under collective bargaining agreements, we made contributions to multiemployer pension plans of $25 million in 2016, $31 million in 2015 and $32 million in 2014. There are risks of participating in multiemployer pension plans that are different from single employer plans. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan are borne by the remaining participating employers. If the Company stops participating in its multi-employer pension plans, the Company may be required to pay those plans an amount based on its allocable share of the unfunded vested benefits of the plans, referred to as a withdrawal liability. The only individually significant multiemployer plan we participate in as of December 31, 2016 is the Bakery and Confectionery Union and Industry International Pension Fund (the “Fund”). Our contributions to the Fund exceeded 5% of total contributions to the Fund for fiscal years 2016, 2015 and 2014. Our contributions to the Fund were $21 million in 2016, $27 million in 2015 and $25 million in 2014. Our contributions to other multiemployer pension plans that were not individually significant were $4 million in 2016, $4 million in 2015 and $7 million in 2014. Our contributions are based on our contribution rates under our collective bargaining agreements, the number of our eligible employees and Fund surcharges. Expiration Date Pension FIP / RP of Collective- EIN / Pension Protection Act Status Pending / Surcharge Bargaining Pension Fund Plan Number Zone Status Implemented Imposed Agreements Bakery and Confectionery Union and 526118572 Red Implemented Yes 2/29/2016 Effective January 1, 2012, the Fund’s zone status changed to “Red”. As a result of this certification, beginning in July 2012, we were charged a 10% surcharge on our contribution rates. The Fund subsequently adopted a rehabilitation plan on November 7, 2012 that required contribution increases and reductions to benefit provisions. Although our collective bargaining agreements with the Fund expired during 2016, we are obligated to make contributions to the Fund and we continue to work with the union toward reaching an agreement. The Fund’s actuarial valuation was last completed as of January 1, 2016. As of August 28, 2016, the 10% surcharge is no longer applicable but we are required to pay higher contributions under the Fund’s rehabilitation plan. Other Costs: We sponsor and contribute to employee defined contribution plans. These plans cover eligible salaried, non-union Postretirement Benefit Plans Obligations: Our postretirement health care plans are not funded. The changes in and the amount of the accrued benefit obligation were: As of December 31, 2016 2015 (in millions) Accrued benefit obligation at January 1 $ 511 $ 538 Service cost 12 15 Interest cost 20 22 Benefits paid (14 ) (10 ) Plan amendments (1) (149 ) – Currency 3 (22 ) Assumption changes 34 (30 ) Actuarial (gains) / losses (23 ) (2 ) Accrued benefit obligation at December 31 $ 394 $ 511 (1) Plan amendments included a change in eligibility requirements related to medical and life insurance benefits and a change in benefits for Medicare-eligible participants. The current portion of our accrued postretirement benefit obligation of $12 million at December 31, 2016 and $11 million at December 31, 2015 was included in other accrued liabilities. We used the following weighted-average U.S. Plans Non-U.S. As of December 31, As of December 31, 2016 2015 2016 2015 Discount rate 4.14% 4.60% 4.55% 4.77% Health care cost trend rate 6.50% 6.50% 5.50% 5.37% Ultimate trend rate 5.00% 5.00% 5.68% 5.55% Year that the rate reaches the 2020 2020 2018 2018 Year-end fixed-income Year-end non-U.S. At the end 2015, we changed the approach used to measure service and interest costs for other postretirement benefits. 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 measured 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 provided 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 cost of approximately $4 million for the year ended December 31, 2016. This change does not affect the measurement of our plan obligations. We accounted for this change as a change in accounting estimate and, accordingly, accounted for it on a prospective basis. Assumed health care cost trend rates have a significant impact on the amounts reported for the health care plans. A one-percentage-point As of December 31, 2016 One-Percentage-Point Increase Decrease (in millions) Effect on postretirement benefit obligation $ 41 $ (33 ) Effect on annual service and interest cost 3 (2 ) Components of Net Periodic Postretirement Health Care Costs: Net periodic postretirement health care costs consisted of the following: For the Years Ended December 31, 2016 2015 2014 (in millions) Service cost $ 12 $ 15 $ 13 Interest cost 20 22 22 Amortization: Net loss from experience differences 10 13 5 Prior service credit (1) (20 ) (7 ) (10 ) Net periodic postretirement health care costs $ 22 $ 43 $ 30 (1) For the year ended December 31, 2016, amortization of prior service credit includes $9 million of curtailment gain related to a change in the eligibility requirement. As of December 31, 2016, we expected to amortize from accumulated other comprehensive earnings / (losses) into pre-tax • an estimated $15 million of net loss from experience differences, and • an estimated $40 million of prior service credit. We used the following weighted-average U.S. Plans Non-U.S. For the Years Ended December 31, For the Years Ended December 31, 2016 2015 2014 2016 2015 2014 Discount rate 4.60% 4.20% 5.10% 4.77% 4.52% 5.17% Health care cost trend rate 6.50% 6.50% 7.00% 5.50% 5.18% 5.11% Future Benefit Payments: Our estimated future benefit payments for our postretirement health care plans at December 31, 2016 were (in millions): Year ending: 2017 2018 2019 2020 2021 2022-2026 U.S. Plans $8 $10 $11 $12 $13 $80 Non-U.S. 5 5 5 6 6 34 Other Costs: We made contributions to multiemployer medical plans totaling $19 million in 2016, $20 million in 2015 and $18 million in 2014. These plans provide medical benefits to active employees and retirees under certain collective bargaining agreements. Postemployment Benefit Plans Obligations: Our postemployment plans are primarily not funded. The changes in and the amount of the accrued benefit obligation at December 31, 2016 and 2015 were: 2016 2015 (in millions) Accrued benefit obligation at January 1 $ 95 $ 94 Service cost 7 7 Interest cost 6 5 Benefits paid (9 ) (7 ) Assumption changes (21 ) (3 ) Actuarial gains (7 ) (1 ) Accrued benefit obligation at December 31 $ 71 $ 95 The accrued benefit obligation was determined using a weighted-average discount rate of 6.2% in 2016 and 2015, an assumed weighted-average ultimate annual turnover rate of 0.3% in 2016 and 2015, assumed compensation cost increases of 4.0% in 2016 and 2015 and assumed benefits as defined in the respective plans. Postemployment costs arising from actions that offer employees benefits in excess of those specified in the respective plans are charged to expense when incurred. Components of Net Periodic Postemployment Costs: Net periodic postemployment costs consisted of the following: For the Years Ended December 31, 2016 2015 2014 (in millions) Service cost $ 7 $ 7 $ 9 Interest cost 6 5 6 Amortization of net gains (1 ) – – Net periodic postemployment costs $ 12 $ 12 $ 15 As of December 31, 2016, the estimated net gain for the postemployment benefit plans that we expected to amortize from accumulated other comprehensive earnings / (losses) into net periodic postemployment costs during 2017 was approximately $4 million. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2016 | |
Stock Plans | Note 10. Stock Plans Under our Amended and Restated 2005 Performance Incentive Plan (the “Plan”), we are authorized through May 21, 2024 to issue a maximum of 243.7 million shares of our Common Stock to employees and non-employee Stock Options: Stock options (including stock appreciation rights) are granted at an exercise price equal to the market value of the underlying stock on the grant date, generally become exercisable in three annual installments beginning on the first anniversary of the grant date and have a maximum term of ten years. We account for our employee stock options under the fair value method of accounting using a Black-Scholes Our weighted-average Black-Scholes fair value assumptions were: Risk-Free Expected Life Expected Expected Fair Value 2016 1.40% 6 years 23.11% 1.61% $ 7.86 2015 1.70% 6 years 18.51% 1.61% $ 6.12 2014 1.87% 6 years 21.48% 1.64% $ 6.60 The risk-free interest rate represents the constant maturity U.S. government treasuries rate with a remaining term equal to the expected life of the options. The expected life is the period over which our employees are expected to hold their options. Volatility reflects historical movements in our stock price for a period commensurate with the expected life of the options. The dividend yield reflects the dividend yield in place at the time of the historical grants. Stock option activity is reflected below: Weighted- Average Average Exercise or Remaining Aggregate Shares Subject Grant Price Contractual Intrinsic to Option Per Share Term Value Balance at January 1, 2014 55,783,439 $ 21.96 $ 744 million Annual grant to eligible employees 9,919,810 34.17 Additional options issued 500,250 33.65 Total options granted 10,420,060 34.14 Options exercised (1) (8,076,550 ) 20.85 $ 125 million Options cancelled (1,695,398 ) 27.65 Balance at December 31, 2014 56,431,551 24.19 $ 685 million Annual grant to eligible employees 8,899,530 36.94 Additional options issued 901,340 35.84 Total options granted 9,800,870 36.84 Options exercised (1) (6,444,515 ) 22.94 $ 108 million Options cancelled (2,753,798 ) 32.35 Balance at December 31, 2015 (2) 57,034,108 26.12 $ 1,068 million Annual grant to eligible employees 7,517,290 39.70 Additional options issued 115,800 42.26 Total options granted 7,633,090 39.74 Options exercised (1) (8,883,101 ) 24.09 $ 174 million Options cancelled (2,182,485 ) 35.23 Balance at December 31, 2016 53,601,612 28.02 6 years $ 874 million Exercisable at December 31, 2016 39,016,883 24.43 5 years $ 777 million (1) Cash received from options exercised was $221 million in 2016, $148 million in 2015 and $168 million in 2014. The actual tax benefit realized for the tax deductions from the option exercises totaled $31 million in 2016, $58 million in 2015 and $29 million in 2014. (2) Prior-year aggregate intrinsic value has been revised. Deferred Stock Units, Performance Share Units and Restricted Stock: Historically we have made grants of deferred stock units, performance share units and restricted stock. Beginning in 2016, we only grant deferred stock units and performance share units and no longer grant restricted stock. We may grant shares of deferred stock units to eligible employees, giving them, in most instances, all of the rights of shareholders, except that they may not sell, assign, pledge or otherwise encumber the shares and our deferred stock units do not have voting rights until vested. Shares of deferred stock units are subject to forfeiture if certain employment conditions are not met. Deferred stock units generally vest on the third anniversary of the grant date. Performance share units granted under our 2005 Plan vest based on varying performance, market and service conditions. The unvested performance share units have no voting rights and do not pay dividends. Dividend equivalents accumulated over the vesting period are paid only after the performance share units vest. The fair value of the deferred stock units, performance share units and restricted stock at the date of grant is amortized to earnings over the restriction period. We recorded compensation expense related to deferred stock units, performance share units and restricted stock of $83 million in 2016, $86 million in 2015 and $94 million in 2014 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $22 million in 2016, $24 million in 2015 and $26 million in 2014. The unamortized compensation expense related to our deferred stock units, performance share units and restricted stock was $111 million at December 31, 2016 and is expected to be recognized over a weighted-average period of 2 years. Our deferred stock unit, performance share unit and restricted stock activity is reflected below: Weighted-Average Weighted-Average Number Fair Value Aggregate of Shares Grant Date Per Share Fair Value Balance at January 1, 2014 11,648,587 $ 24.48 Annual grant to eligible employees: Feb. 19, 2014 Performance share units 1,143,620 34.97 Restricted stock 750,410 34.17 Deferred stock units 1,240,820 34.17 Additional shares granted (1) 935,463 Various 33.15 Total shares granted 4,070,313 34.16 $ 139 million Vested (2) (4,380,452 ) 22.98 $ 101 million Forfeited (2) (755,808 ) 28.14 Balance at December 31, 2014 10,582,640 28.56 Annual grant to eligible employees: Feb. 18, 2015 Performance share units 1,598,290 36.94 Restricted stock 386,910 36.94 Deferred stock units 866,640 36.94 Additional shares granted (1) 1,087,322 Various 39.35 Total shares granted 3,939,162 37.61 $ 148 million Vested (2) (3,905,745 ) 37.83 $ 148 million Forfeited (2) (1,197,841 ) 32.51 Balance at December 31, 2015 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) 864,851 Various 31.29 Total shares granted 3,312,141 37.50 $ 124 million Vested (2) (3,992,902 ) 40.22 $ 161 million Forfeited (2) (1,143,828 ) 37.49 Balance at December 31, 2016 7,593,627 24.29 (1) Includes performance share units, deferred stock units and restricted stock. (2) Includes performance share units, deferred stock units and restricted stock. The actual tax benefit realized for the tax deductions from the shares vested totaled $18 million in 2016, $18 million in 2015 and $20 million in 2014. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Common Class A | |
Capital Stock | Note 11. Capital Stock Our amended and restated articles of incorporation authorize 5.0 billion shares of Class A common stock (“Common Stock”) and 500 million shares of preferred stock. There were no preferred shares issued and outstanding at December 31, 2016, 2015 and 2014. Shares of Common Stock issued, in treasury and outstanding were: Shares Shares Issued Treasury Shares Outstanding Balance at January 1, 2014 1,996,537,778 (291,141,184 ) 1,705,396,594 Shares repurchased – (51,931,864 ) (51,931,864 ) Exercise of stock options and issuance of – 10,176,269 10,176,269 Balance at December 31, 2014 1,996,537,778 (332,896,779 ) 1,663,640,999 Shares repurchased – (91,875,878 ) (91,875,878 ) Exercise of stock options and issuance of – 8,268,033 8,268,033 Balance at December 31, 2015 1,996,537,778 (416,504,624 ) 1,580,033,154 Shares repurchased – (61,972,713 ) (61,972,713 ) Exercise of stock options and issuance of – 10,305,100 10,305,100 Balance at December 31, 2016 1,996,537,778 (468,172,237 ) 1,528,365,541 Stock plan awards to employees and non-employee 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 2016, we repurchased 62.0 million shares of Common Stock at an average cost of $41.97 per share, or an aggregate cost of $2.6 billion, all of which was paid during 2016. All share repurchases were funded through available cash and commercial paper issuances. During 2015, we repurchased 91.9 million shares of Common Stock at an average cost of $39.43 per share, or an aggregate cost of $3.6 billion, all of which was paid during 2015. As of December 31, 2016, we have $2.8 billion in remaining share repurchase capacity. In December 2013, we initiated an accelerated share repurchase (“ASR”) program. On December 3, 2013, we paid $1.7 billion and received an initial delivery of 44.8 million shares of Common Stock valued at $1.5 billion. We increased treasury stock by $1.5 billion, and the remaining $0.2 billion was recorded against additional paid in capital. In May 2014, the ASR program concluded and we received an additional 5.1 million shares, valued at $0.2 billion, for a total of 49.9 million shares with an average repurchase price of $34.10 per share over the life of the ASR program. The final settlement was based on the volume-weighted average price of our Common Stock during the purchase period less a fixed per share discount. Upon conclusion of the ASR program and receipt of the remaining repurchased shares, the $0.2 billion recorded in additional paid in capital was reclassified to treasury stock. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Legal Proceedings: We routinely are involved in legal proceedings, claims and governmental inspections or investigations (“Legal Matters”) arising in the ordinary course of our business. As we previously disclosed in February 2011, we received a subpoena from the SEC in connection with an investigation under the Foreign Corrupt Practices Act (“FCPA”), primarily related to a facility in India that we acquired in the Cadbury acquisition. The subpoena primarily requested information regarding dealings with Indian governmental agencies and officials to obtain approvals related to the operation of that facility. In January 2017, we reached an agreement with the SEC to settle charges related to internal controls and books-and-records In February 2013 and March 2014, Cadbury India Limited (now known as Mondelez India Foods Private Limited), a subsidiary of Mondelēz International, and other parties received show cause notices from the Indian Central Excise Authority (the “Excise Authority”) calling upon the parties to demonstrate why the Excise Authority should not collect a total of 3.7 billion Indian rupees ($55 million as of December 31, 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 ($86 million as of December 31, 2016). We have appealed this order. In addition, the Excise Authority issued additional show cause notices in February 2015 and December 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 ($35 million as of December 31, 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 non-competitive exchange-for-physical 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 December 31, 2016, we had no material third-party guarantees recorded on our consolidated balance sheet. Leases: Rental expenses recorded in continuing operations were $317 million in 2016, $331 million in 2015 and $399 million in 2014. As of December 31, 2016, minimum rental commitments under non-cancelable year-end 2017 2018 2019 2020 2021 Thereafter Total $ 241 $ 175 $ 143 $ 115 $ 90 $ 157 $ 921 |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Reclassifications from Accumulated Other Comprehensive Income | Note 13. Reclassifications from Accumulated Other Comprehensive Income The following table summarizes the changes in the accumulated balances of each component of accumulated other comprehensive earnings / (losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings / (losses) to net earnings (net of tax) were net losses of $250 million in 2016, $350 million in 2015 and $79 million in 2014. For the Years Ended December 31, 2016 2015 2014 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (8,006 ) $ (5,042 ) $ (1,414 ) Currency translation adjustments (847 ) (2,905 ) (3,433 ) Reclassification to earnings related to: Venezuela deconsolidation – 99 – Equity method investment exchange 57 – – Tax (expense) / benefit (135 ) (184 ) (228 ) Other comprehensive earnings / (losses) (925 ) (2,990 ) (3,661 ) Less: loss attributable to noncontrolling interests 17 26 33 Balance at end of period (8,914 ) (8,006 ) (5,042 ) Pension and Other Benefit Plans: Balance at beginning of period $ (1,934 ) $ (2,274 ) $ (1,592 ) Net actuarial gain / (loss) arising during period (491 ) (60 ) (1,388 ) Tax (expense) / benefit on net actuarial gain / (loss) 70 3 442 Losses / (gains) reclassified into net earnings: Amortization of experience losses and prior service costs (1) 150 207 132 Settlement losses (1) 36 111 42 Venezuela deconsolidation – 2 – Tax (expense) / benefit on reclassifications (2) (46 ) (69 ) (56 ) Currency impact 128 146 146 Other comprehensive earnings / (losses) (153 ) 340 (682 ) Balance at end of period (2,087 ) (1,934 ) (2,274 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (46 ) $ (2 ) $ 117 Net derivative gains / (losses) (151 ) (75 ) (166 ) Tax (expense) / benefit on net derivative gain / (loss) 20 30 86 Losses / (gains) reclassified into net earnings: Currency exchange contracts – (3) 3 (90 ) (27 ) Commodity contracts (3) 9 64 (21 ) Interest rate contracts (4) 83 47 3 Tax (expense) / benefit on reclassifications (2) (42 ) (21 ) 6 Currency impact 3 1 – Other comprehensive earnings / (losses) (75 ) (44 ) (119 ) Balance at end of period (121 ) (46 ) (2 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (9,986 ) $ (7,318 ) $ (2,889 ) Total other comprehensive earnings / (losses) (1,153 ) (2,694 ) (4,462 ) Less: loss attributable to noncontrolling interests 17 26 33 Other comprehensive earnings / (losses) attributable to Mondelēz International (1,136 ) (2,668 ) (4,429 ) Balance at end of period $ (11,122 ) $ (9,986 ) $ (7,318 ) (1) These reclassified gains or losses are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans (2) Taxes related to reclassified gains or losses are recorded within the provision for income taxes. (3) These reclassified gains or losses are recorded within cost of sales. (4) These reclassified gains or losses are recorded within interest and other expense, net. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes | Note 14. Income Taxes Earnings / (losses) from continuing operations before income taxes and the provision for income taxes consisted of: For the Years Ended December 31, 2016 2015 2014 (in millions) Earnings / (losses) from continuing operations United States $ (364 ) $ 43 $ (135 ) Outside United States 1,818 7,841 2,689 Total $ 1,454 $ 7,884 $ 2,554 Provision for income taxes: United States federal: Current $ (227 ) $ (90 ) $ (125 ) Deferred 141 136 28 (86 ) 46 (97 ) State and local: Current 7 6 20 Deferred 8 (3 ) 11 15 3 31 Total United States (71 ) 49 (66 ) Outside United States: Current 490 707 644 Deferred (290 ) (163 ) (225 ) Total outside United States 200 544 419 Total provision for income taxes $ 129 $ 593 $ 353 We recorded out-of-period The effective income tax rate on pre-tax For the Years Ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0% 35.0% 35.0% Increase / (decrease) resulting from: State and local income taxes, net of federal tax benefit excluding IRS audit impacts 0.8% (0.1)% 0.3% Foreign rate differences (18.6)% (2.5)% (14.5)% Reversal of other tax accruals no longer required (7.7)% (1.4)% (10.5)% Tax accrual on investment in Keurig 2.3% – – Tax legislation (4.0)% (0.5)% – Gains on coffee business transactions and divestitures – (26.9)% – Loss on deconsolidation of Venezuela – 3.5% – Remeasurement of net monetary assets in Venezuela – – 1.7% Non-deductible 0.9% 0.3% 1.5% Other 0.2% 0.1% 0.3% Effective tax rate 8.9% 7.5% 13.8% Our 2016 effective tax rate of 8.9% was favorably impacted by the mix of pre-tax non-U.S. one-time Our 2015 effective tax rate of 7.5% was favorably impacted by the one-time pre-tax pre-tax non-U.S. one-time one-time Our 2014 effective tax rate of 13.8% was favorably impacted by the mix of pre-tax non-U.S. one-time The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: As of December 31, 2016 2015 (in millions) Deferred income tax assets: Accrued postretirement and postemployment benefits $ 214 $ 230 Accrued pension costs 370 414 Other employee benefits 237 265 Accrued expenses 379 343 Loss carryforwards 619 636 Other 331 352 Total deferred income tax assets 2,150 2,240 Valuation allowance (310 ) (303 ) Net deferred income tax assets $ 1,840 $ 1,937 Deferred income tax liabilities: Intangible assets $ (5,174 ) $ (5,365 ) Property, plant and equipment (557 ) (636 ) Other (472 ) (409 ) Total deferred income tax liabilities (6,203 ) (6,410 ) Net deferred income tax liabilities $ (4,363 ) $ (4,473 ) At December 31, 2016, the company has pre-tax Our significant valuation allowances relate to loss carryforwards in Mexico and Ireland where we do not currently expect to generate gains of the proper character to utilize the carryforwards in the future. At December 31, 2016, neither applicable U.S. federal income taxes nor foreign withholding taxes have been provided on approximately $19.8 billion of accumulated earnings of non-U.S. non-U.S. The changes in our unrecognized tax benefits were: For the Years Ended December 31, 2016 2015 2014 (in millions) January 1 $ 756 $ 852 $ 1,189 Increases from positions taken during prior periods 18 34 143 Decreases from positions taken during prior periods (123 ) (74 ) (247 ) Increases from positions taken during the current period 90 84 147 Decreases relating to settlements with taxing authorities (75 ) (13 ) (203 ) Reductions resulting from the lapse of the applicable statute of limitations (43 ) (41 ) (64 ) Currency / other (13 ) (86 ) (113 ) December 31 $ 610 $ 756 $ 852 As of January 1, 2016, our unrecognized tax benefits were $756 million. If we had recognized all of these benefits, the net impact on our income tax provision would have been $652 million. Our unrecognized tax benefits were $610 million at December 31, 2016, and if we had recognized all of these benefits, the net impact on our income tax provision would have been $549 million. Within the next 12 months, our unrecognized tax benefits could increase by approximately $40 million due to unfavorable audit developments or decrease by approximately $160 million due to audit settlements and the expiration of statutes of limitations in various jurisdictions. We include accrued interest and penalties related to uncertain tax positions in our tax provision. We had accrued interest and penalties of $185 million as of January 1, 2016 and $189 million as of December 31, 2016. Our 2016 provision for income taxes included $15 million for interest and penalties. Our income tax filings are regularly examined by federal, state and non-U.S. non-U.S. non-U.S. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share | Note 15. Earnings Per Share Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Years Ended December 31, 2016 2015 2014 (in millions, except per share data) Net earnings $ 1,669 $ 7,291 $ 2,201 Noncontrolling interest (10 ) (24 ) (17 ) Net earnings attributable to Mondelēz International $ 1,659 $ 7,267 $ 2,184 Weighted-average shares for basic EPS 1,556 1,618 1,691 Plus incremental shares from assumed conversions of 17 19 18 Weighted-average shares for diluted EPS 1,573 1,637 1,709 Basic earnings per share attributable to $ 1.07 $ 4.49 $ 1.29 Diluted earnings per share attributable to $ 1.05 $ 4.44 $ 1.28 We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We excluded 7.8 million antidilutive stock options for the year ended December 31, 2016, 5.1 million antidilutive stock options for the year ended December 31, 2015 and 8.6 million antidilutive stock options for the year ended December 31, 2014. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting | Note 16. Segment Reporting We manufacture and market primarily snack food products, including biscuits (cookies, crackers and salted snacks), chocolate, gum & candy and various cheese & grocery products, as well as powdered beverage products. We manage our global business and report operating results through geographic units. Our operations and management structure are organized into four reportable operating segments: • Latin America • AMEA • Europe • North America On October 1, 2016, we integrated our EEMEA operating segment into our Europe and Asia Pacific operating segments to further leverage and optimize the operating scale built within the Europe and Asia Pacific regions. Russia, Ukraine, Turkey, Belarus, Georgia and Kazakhstan were combined within our Europe operating segment, while the remaining Middle East and African countries were combined within our Asia Pacific region to form the AMEA regional operating segment. We have reflected the segment change as if it had occurred in all periods presented. 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. For the six months ended December 31, 2015, after-tax Summary of Significant Accounting Policies – Principles of Consolidation, Divestitures and Acquisitions In 2015, we also began to report stock-based compensation for our corporate employees within general corporate expenses that were reported within our North America region. We reclassified $32 million of corporate stock-based compensation expense in 2015 from the North America segment to general corporate expenses. 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, revised to reflect our new segment structure, were: For the Years Ended December 31, 2016 2015 2014 (in millions) Net revenues: Latin America (1) $ 3,392 $ 4,988 $ 5,153 AMEA (2) 5,816 6,002 6,367 Europe (2) 9,755 11,672 15,788 North America 6,960 6,974 6,936 Net revenues $ 25,923 $ 29,636 $ 34,244 (1) Net revenues of $1,217 million for 2015 and $760 million for 2014 from our Venezuelan subsidiaries are included in our 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 consolidated financial statements. Refer to Note 1, Summary of Significant Accounting Policies – Currency Translation and Highly Inflationary Accounting: Venezuela, (2) On July 2, 2015, we contributed our global coffee businesses primarily from our Europe and AMEA segments. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions For the Years Ended December 31, 2016 2015 2014 (in millions) Earnings before income taxes: Operating income: Latin America $ 271 $ 485 $ 475 AMEA 506 389 530 Europe 1,267 1,350 1,952 North America 1,078 1,105 922 Unrealized (losses) / gains on hedging activities (mark-to-market (94 ) 96 (112 ) General corporate expenses (291 ) (383 ) (317 ) Amortization of intangibles (176 ) (181 ) (206 ) Gains on divestitures and JDE coffee business transactions 9 6,822 – Loss on deconsolidation of Venezuela – (778 ) – Acquisition-related costs (1 ) (8 ) (2 ) Operating income 2,569 8,897 3,242 Interest and other expense, net (1,115 ) (1,013 ) (688 ) Earnings before income taxes $ 1,454 $ 7,884 $ 2,554 No single customer accounted for 10% or more of our net revenues from continuing operations in 2016. Our five largest customers accounted for 16.6% and our ten largest customers accounted for 22.9% of net revenues from continuing operations in 2016. Items impacting our segment operating results are discussed in Note 1, Summary of Significant Accounting Policies, Divestitures and Acquisitions, Goodwill and Intangible Assets, Restructuring Programs Debt and Borrowing Arrangements Financial Instruments, Total assets, depreciation expense and capital expenditures by segment, revised to reflect our new segment structure, were: For the Years Ended December 31, 2016 2015 2014 (in millions) Total assets: Latin America $ 5,156 $ 4,673 $ 6,470 AMEA 10,031 10,460 10,549 Europe 19,934 21,026 27,240 North America 20,694 21,175 21,287 Equity method investments 5,585 5,387 662 Unallocated assets (1) 138 122 563 Total assets $ 61,538 $ 62,843 $ 66,771 (1) Unallocated assets consist primarily of cash and cash equivalents, deferred income taxes, centrally held property, plant and equipment, prepaid pension assets and derivative financial instrument balances. We had debt issuance costs related to recognized debt liabilities of $40 million as of December 31, 2016, $46 million as of December 31, 2015 and $44 million as of December 31, 2014. For the Years Ended December 31, 2016 2015 2014 (in millions) Depreciation expense: Latin America $ 92 $ 94 $ 118 AMEA 161 155 154 Europe 253 299 407 North America 141 165 174 Total depreciation expense $ 647 $ 713 $ 853 For the Years Ended December 31, 2016 2015 2014 (in millions) Capital Expenditures: Latin America $ 321 $ 354 $ 460 AMEA 349 381 451 Europe 294 517 553 North America 260 262 178 Total capital expenditures $ 1,224 $ 1,514 $ 1,642 Geographic data for net revenues (recognized in the countries where products are sold) and long-lived assets, excluding deferred tax, goodwill, intangible assets and equity method investments, were: For the Years Ended December 31, 2016 2015 2014 (in millions) Net revenues: United States $ 6,329 $ 6,302 $ 6,143 Other 19,594 23,334 28,101 Total net revenues $ 25,923 $ 29,636 $ 34,244 As of December 31, 2016 2015 2014 (in millions) Long-lived assets: United States $ 1,508 $ 1,551 $ 1,564 Other 7,229 7,238 8,801 Total long-lived assets $ 8,737 $ 8,789 $ 10,365 No individual country within Other exceeded 10% of our net revenues or long-lived assets for all periods presented. Net revenues by product category, revised to reflect our new segment structure, were: For the Year Ended December 31, 2016 Latin North America (1) AMEA Europe America Total (1) (in millions) Biscuits $ 734 $ 1,588 $ 2,703 $ 5,565 $ 10,590 Chocolate 743 1,901 4,840 255 7,739 Gum & Candy 938 953 916 1,140 3,947 Beverages 657 611 177 – 1,445 Cheese & Grocery 320 763 1,119 – 2,202 Total net revenues $ 3,392 $ 5,816 $ 9,755 $ 6,960 $ 25,923 For the Year Ended December 31, 2015 Latin North America (1) AMEA Europe (3) America Total (1) (in millions) Biscuits $ 1,605 $ 1,539 $ 2,680 $ 5,569 $ 11,393 Chocolate 840 1,928 5,050 256 8,074 Gum & Candy 1,091 1,003 1,015 1,149 4,258 Beverages (2) 767 730 1,763 – 3,260 Cheese & Grocery 685 802 1,164 – 2,651 Total net revenues $ 4,988 $ 6,002 $ 11,672 $ 6,974 $ 29,636 For the Year Ended December 31, 2014 Latin North America (1) AMEA Europe (3) America Total (1) (in millions) Biscuits $ 1,322 $ 1,442 $ 3,259 $ 5,486 $ 11,509 Chocolate 1,054 2,073 5,997 296 9,420 Gum & Candy 1,176 1,098 1,232 1,154 4,660 Beverages (2) 940 836 3,902 – 5,678 Cheese & Grocery 661 918 1,398 – 2,977 Total net revenues $ 5,153 $ 6,367 $ 15,788 $ 6,936 $ 34,244 (1) In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies Currency Translation and Highly Inflationary Accounting: Venezuela (2) On July 2, 2015, we contributed our global coffee businesses primarily from our Europe and AMEA segment beverage categories. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions (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. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data (Unaudited) | Note 17. Quarterly Financial Data (Unaudited) Our summarized operating results by quarter are detailed below. 2016 Quarters First Second Third Fourth (in millions, except per share data) Net revenues $ 6,455 $ 6,302 $ 6,396 $ 6,770 Gross profit 2,535 2,516 2,488 2,589 Provision for income taxes (49 ) (118 ) (40 ) 78 Gain on equity method investment exchange 43 – – – Equity method investment net earnings (1) 85 102 31 83 Net earnings (2) $ 557 $ 471 $ 548 $ 93 Noncontrolling interest (3 ) (7 ) – – Net earnings attributable to Mondelēz International $ 554 $ 464 $ 548 $ 93 Weighted-average shares for basic EPS 1,569 1,557 1,557 1,540 Plus incremental shares from assumed conversions of 18 19 19 19 Weighted-average shares for diluted EPS 1,587 1,576 1,576 1,559 Per share data: Basic EPS attributable to Mondelēz International: $ 0.35 $ 0.30 $ 0.35 $ 0.06 Diluted EPS attributable to Mondelēz International: $ 0.35 $ 0.29 $ 0.35 $ 0.06 Dividends declared $ 0.17 $ 0.17 $ 0.19 $ 0.19 Market price - high $ 44.45 $ 45.75 $ 46.36 $ 46.40 - low $ 35.88 $ 39.53 $ 41.96 $ 40.50 2015 Quarters First Second Third Fourth (in millions, except per share data) Net revenues $ 7,762 $ 7,661 $ 6,849 $ 7,364 Gross profit 2,941 3,066 2,670 2,835 Provision for income taxes 113 100 348 32 Equity method investment net (losses) / earnings (2) – – (72 ) 72 Net earnings / (loss) (1) $ 312 $ 427 $ 7,268 $ (716 ) Noncontrolling interest 12 (21 ) (2 ) (13 ) Net earnings / (loss) attributable to Mondelēz International $ 324 $ 406 $ 7,266 $ (729 ) Weighted-average shares for basic EPS 1,648 1,625 1,609 1,589 Plus incremental shares from assumed conversions of 17 18 20 21 Weighted-average shares for diluted EPS 1,665 1,643 1,629 1,610 Per share data: Basic EPS attributable to Mondelēz International: $ 0.20 $ 0.25 $ 4.52 $ (0.46 ) Diluted EPS attributable to Mondelēz International (3) $ 0.19 $ 0.25 $ 4.46 $ (0.46 ) Dividends declared $ 0.15 $ 0.15 $ 0.17 $ 0.17 Market price - high $ 37.88 $ 41.81 $ 48.58 $ 47.42 - low $ 33.97 $ 35.93 $ 38.91 $ 41.55 (1) Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax after-tax Pre-tax Summary of Significant Accounting Policies – Principles of Consolidation, Divestitures and Acquisitions – JDE Tax Matter Resolution (2) See the following table for significant items that affected the comparability of earnings each quarter. (3) In the fourth quarter of 2015, we recorded a net loss, primarily due to the loss on deconsolidation of Venezuela and coffee business transaction final sales price adjustment. In accordance with U.S. GAAP, due to the net loss in the quarter, diluted EPS was equal to basic EPS. Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not equal the total for the year. During 2016 and 2015, we recorded the following pre-tax 2016 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (154 ) $ (166 ) $ (190 ) $ (342 ) Loss related to interest rate swaps (97 ) – – – Divestiture-related costs – (84 ) – (2 ) Loss on early extinguishment of – – – (427 ) $ (251 ) $ (250 ) $ (190 ) $ (771 ) 2015 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (160 ) $ (231 ) $ (155 ) $ (355 ) Remeasurement of net monetary assets (11 ) – – – Loss on deconsolidation of Venezuela – – – (778 ) Gains / (loss) on JDE coffee business – 13 7,122 (313 ) JDE coffee business transactions currency- 551 (144 ) 29 – Loss related to interest rate swaps (34 ) Loss on early extinguishment of (713 ) – – (40 ) $ (367 ) $ (362 ) $ 6,996 $ (1,486 ) Items impacting our operating results are discussed in Note 1, Summary of Significant Accounting Policies, Divestitures and Acquisitions, Goodwill and Intangible Assets Restructuring Programs, Debt and Borrowing Arrangements |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts | Mondelēz International, Inc. and Subsidiaries Valuation and Qualifying Accounts For the Years Ended December 31, 2016, 2015 and 2014 (in millions) Col. A Col. B Col. C Col. D Col. E Additions Description Balance at Charged to Charged to Deductions Balance at (a) (b) 2016: Allowance for trade receivables $ 54 $ 18 $ (1 ) $ 13 $ 58 Allowance for other current receivables 109 (2 ) (13 ) 1 93 Allowance for long-term receivables 16 1 3 – 20 Allowance for deferred taxes 303 67 (28 ) 32 310 $ 482 $ 84 $ (39 ) $ 46 $ 481 2015: Allowance for trade receivables $ 66 $ 14 $ (11 ) $ 15 $ 54 Allowance for other current receivables 91 12 7 1 109 Allowance for long-term receivables 14 5 (3 ) – 16 Allowance for deferred taxes 345 46 (35 ) 53 303 $ 516 $ 77 $ (42 ) $ 69 $ 482 2014: Allowance for trade receivables $ 86 $ 9 $ (10 ) $ 19 $ 66 Allowance for other current receivables 73 39 (13 ) 8 91 Allowance for long-term receivables 16 1 (2 ) 1 14 Allowance for deferred taxes 335 61 (25 ) 26 345 $ 510 $ 110 $ (50 ) $ 54 $ 516 Notes: (a) Primarily related to divestitures, acquisitions and currency translation. (b) Represents charges for which allowances were created. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Description of Business | Description of Business: Mondelēz International, Inc. was incorporated in 2000 in the Commonwealth of Virginia. Mondelēz International, Inc., through its subsidiaries (collectively “Mondelēz International,” “we,” “us” and “our”), sells food and beverage products to consumers in approximately 165 countries. |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries. For all periods presented through December 31, 2015, the operating results of our Venezuelan subsidiaries are included in our consolidated financial statements. As of the close of the fourth quarter of 2015, we deconsolidated our Venezuelan operations from our consolidated financial statements and recognized a loss on deconsolidation. See Currency Translation and Highly Inflationary Accounting: Venezuela We account for investments in which we exercise significant influence (20%-50% after-tax Divestitures and Acquisitions – JDE Coffee Business Transactions Keurig Transaction Segment Reporting We use the cost method of accounting for investments in which we have an ownership interest of less than 20% and in which we do not exercise significant influence. The noncontrolling interest represents the noncontrolling investors’ interests in the results of subsidiaries that we control and consolidate. All intercompany transactions are eliminated. |
Use of Estimates | Use of Estimates: We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require us to make estimates and assumptions that affect a number of amounts in our consolidated financial statements. Significant accounting policy elections, estimates and assumptions include, among others, pension and benefit plan assumptions, valuation assumptions of goodwill and intangible assets, useful lives of long-lived assets, restructuring program liabilities, marketing program accruals, insurance and self-insurance reserves and income taxes. We base our estimates on historical experience and other assumptions that we believe are reasonable. If actual amounts differ from estimates, we include the revisions in our consolidated results of operations in the period the actual amounts become known. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a material effect on our consolidated financial statements. |
Segment Change | Segment Change: On October 1, 2016, we integrated our Eastern Europe, Middle East, and Africa (“EEMEA”) operating segment into our Europe and Asia Pacific operating segments to further leverage and optimize the operating scale built within the Europe and Asia Pacific regions. Russia, Ukraine, Turkey, Belarus, Georgia and Kazakhstan were combined within our Europe region, while the remaining Middle East and African countries were combined within our Asia Pacific region to form a new Asia, Middle East and Africa (“AMEA”) operating segment. We have reflected the segment change as if it had occurred in all periods presented. As of October 1, 2016, our operations and management structure was organized into four reportable operating segments: • Latin America • AMEA • Europe • North America See Note 16, 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. In 2016, none of our consolidated subsidiaries were subject to highly inflationary accounting. United Kingdom. non-binding two-year 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 11% through December 31, 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 United Kingdom 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 2016 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 $2.2 billion, or 8.6% of consolidated net revenues for the year ended December 31, 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 For 2015 and prior periods presented, the operating results of our Venezuela operations were included in our consolidated statements of earnings. During this time, we recognized a number of currency-related remeasurement losses resulting from devaluations of the Venezuela bolivar exchange rates 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 a history of the remeasurement losses, the deconsolidation loss and historical operating results and financial position of our Venezuelan subsidiaries for the periods presented: For the Years Ended December 31, 2015 2014 (in millions) Net revenues $ 1,217 $ 760 Operating income (excluding remeasurement and 266 181 Remeasurement losses: Q1 2014: 6.30 to 10.70 bolivars to the U.S. dollar – (142 ) SICAD I remeasurements through – (25 ) Q1 2015: 11.50 to 12.00 bolivars to the U.S. dollar (11 ) – Loss on deconsolidation (778 ) – As of December 31, 2015 2014 (in millions) Cash (1) $ 611 $ 278 Net monetary assets (1) 405 236 Net assets (1) 658 500 (1) Represents the financial position of our Venezuelan subsidiaries prior to the accounting change on December 31, 2015. Beginning in 2016, we no longer include net revenues, earnings or net assets of our Venezuelan subsidiaries within our 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, as our current situation in Venezuela may change over time and lead to consolidation at a future date. Argentina. Other Countries. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. |
Transfers of Financial Assets | Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse |
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 $76 million on net revenues and $36 million on operating income in 2015. As a result of this change, each of our operating subsidiaries now reports results as of the last calendar day of the period. As the effect to prior-period results was not material, we have not revised prior-period results. |
Inventories | Inventories: We value our inventory using the average cost method. We also record inventory allowances for overstock and obsolete inventories due to ingredient and packaging changes. |
Long-Lived Assets | Long-Lived Assets: Property, plant and equipment are stated at historical cost and depreciated by the straight-line method over the estimated useful lives of the assets. Machinery and equipment are depreciated over periods ranging from 3 to 20 years and buildings and building improvements over periods up to 40 years. We review long-lived assets, including amortizable intangible assets, for realizability on an ongoing basis. Changes in depreciation, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. We also review for impairment when conditions exist that indicate the carrying amount of the assets may not be fully recoverable. In those circumstances, we perform undiscounted operating cash flow analyses to determine if an impairment exists. When testing for asset impairment, we group assets and liabilities at the lowest level for which cash flows are separately identifiable. Any impairment loss is calculated as the excess of the asset’s carrying value over its estimated fair value. Fair value is estimated based on the discounted cash flows for the asset group over the remaining useful life or based on the expected cash proceeds for the asset less costs of disposal. Any significant impairment losses would be recorded within asset impairment and exit costs in the consolidated statements of earnings. |
Software Costs | Software Costs: We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use. Capitalized software costs are included in property, plant and equipment and amortized on a straight-line basis over the estimated useful lives of the software, which do not exceed seven years. |
Goodwill and Non-Amortizable Intangible Assets | Goodwill and Non-Amortizable We test goodwill and non-amortizable two-step Annually we assess non-amortizable |
Insurance and Self-Insurance | Insurance and Self-Insurance: We use a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability, product liability and our obligation for employee healthcare benefits. We estimate the liabilities associated with these risks on an undiscounted basis by evaluating and making judgments about historical claims experience and other actuarial assumptions and the estimated impact on future results. |
Revenue Recognition | Revenue Recognition: We recognize revenues when title and risk of loss pass to customers, which generally occurs upon delivery or shipment of goods. Revenues are recorded net of sales incentives and trade promotions and include all shipping and handling charges billed to customers. Our shipping and handling costs are classified as part of cost of sales. Provisions for product returns and other trade allowances are also recorded as reductions to revenues within the same period that the revenue is recognized. |
Marketing and Research and Development | Marketing and Research and Development: We promote our products with advertising, marketing, sales incentives and trade promotions. These programs include, but are not limited to, cooperative advertising, in-store year-end |
Employee Benefit Plans | Employee Benefit Plans: We provide a range of benefits to our current and retired employees. These include pension benefits, postretirement health care benefits and postemployment benefits depending upon jurisdiction, tenure, job level and other factors. Local statutory requirements govern many of the benefit plans we provide around the world. Local government plans generally cover health care benefits for retirees outside the United States, Canada and United Kingdom. Our U.S., Canadian and U.K. subsidiaries provide health care and other benefits to most retired employees. Our postemployment benefit plans provide primarily severance benefits for eligible salaried and certain hourly employees. The cost for these plans is recognized in earnings primarily over the working life of the covered employee. |
Financial Instruments | Financial Instruments: We use financial instruments to manage our currency exchange rate, commodity price and interest rate risks. We monitor and manage these exposures as part of our overall risk management program, which focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results. A principal objective of our risk management strategies is to reduce significant, unanticipated earnings fluctuations that may arise from volatility in currency exchange rates, commodity prices and interest rates, principally through the use of derivative instruments. We use a combination of primarily currency forward contracts, futures, options and swaps; commodity forward contracts, futures and options; and interest rate swaps to manage our exposure to cash flow variability, protect the value of our existing currency assets and liabilities and protect the value of our debt. See Note 8, Financial Instruments, We record derivative financial instruments on a gross basis and at fair value in our consolidated balance sheets within other current assets or other current liabilities due to their relatively short-term duration. Cash flows from derivative instruments are classified in the consolidated statements of cash flows based on the nature of the derivative instrument. Changes in the fair value of a derivative that is designated as a cash flow hedge, to the extent that the hedge is effective, are recorded in accumulated other comprehensive earnings / (losses) and reclassified to earnings when the hedged item affects earnings. Changes in fair value of economic hedges and the ineffective portion of all hedges are recognized in current period earnings. Changes in the fair value of a derivative that is designated as a fair value hedge, along with the changes in the fair value of the related hedged asset or liability, are recorded in earnings in the same period. We use non-U.S. non-U.S. In order to qualify for hedge accounting, a specified level of hedging effectiveness between the derivative instrument and the item being hedged must exist at inception and throughout the hedged period. We must also formally document the nature of and relationship between the derivative and the hedged item, as well as our risk management objectives, strategies for undertaking the hedge transaction and method of assessing hedge effectiveness. Additionally, for a hedge of a forecasted transaction, the significant characteristics and expected term of the forecasted transaction must be specifically identified, and it must be probable that the forecasted transaction will occur. If it is no longer probable that the hedged forecasted transaction will occur, we would recognize the gain or loss related to the derivative in earnings. When we use derivatives, we are exposed to credit and market risks. Credit risk exists when a counterparty to a derivative contract might fail to fulfill its performance obligations under the contract. We reduce our credit risk by entering into transactions with counterparties with high quality, investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. We also maintain a policy of requiring that all significant, non-exchange Commodity cash flow hedges Currency exchange cash flow hedges third-party Interest rate cash flow and fair value hedges Hedges of net investments in non-U.S. non-U.S. |
Income Taxes | Income Taxes: Our provision for income taxes includes amounts payable or refundable for the current year, the effect of deferred tax and impacts from uncertain tax positions. We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of our assets and liabilities, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those differences are expected to reverse. The realization of certain deferred tax assets is dependent on generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. When assessing the need for a valuation allowance, we consider any carryback potential, future reversals of existing taxable temporary differences (including liabilities for unrecognized tax benefits), future taxable income and tax planning strategies. We recognize tax benefits in our financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained by the taxing authorities based on the technical merits of the position. The amount we recognize is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. Future changes in judgment related to the expected resolution of uncertain tax positions could affect income in the period when the change occurs. |
New Accounting Pronouncements | New Accounting Pronouncements: In January 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that clarifies the definition of a business with the objective of adding guidance to assist companies with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business may affect many areas of accounting including acquisitions, disposals, goodwill and consolidation. The ASU is applied on a prospective basis and is effective for fiscal years beginning after December 15, 2017 with early adoption permitted. We are currently assessing the ASU and potential prospective impact on our consolidated financial statements. In November 2016, the FASB issued an ASU that requires the change in restricted cash or cash equivalents to be included with other changes in cash and cash equivalents in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We anticipate adopting this standard at the same time as the cash flow statement classification changes described below go into effect on January 1, 2018. We are currently assessing the impact on our consolidated financial statements. In October 2016, the FASB issued an ASU to amend the consolidation guidance on the treatment of indirect interests held through related parties that are under common control. Under the amendments, a single decision maker is required to include those interests on a proportionate basis consistent with indirect interests held through other related parties . In October 2016, the FASB issued an ASU that requires the recognition of tax consequences of intercompany asset transfers other than inventory when the transfer occurs and removes the exception to postpone recognition until the asset has been sold to an outside party. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We anticipate adopting on January 1, 2018 and do not expect the ASU to have a material impact on our consolidated financial statements. In August 2016, the FASB issued an 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 anticipate adopting this standard on January 1, 2018. We are currently assessing the impact on our consolidated statements of cash flows. 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 will adopt the standard on January 1, 2017. Following adoption and on a prospective basis, we anticipate greater volatility in our consolidated statements of earnings as we will record certain stock-based compensation tax impacts in earnings (within the provision for income taxes) while under the former guidance and for periods prior to January 1, 2017, the tax impacts were recorded directly to equity (within additional paid-in 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. We early adopted this standard on December 31, 2016 and it did not have an impact on our consolidated financial statements. 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 adopted the new standard on December 31, 2016 and it did not have a material impact on our 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 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 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 consolidated financial statements. In May 2014, the FASB issued an ASU on revenue recognition from contracts with customers. The ASU outlines a new, single comprehensive model for companies to use in accounting for revenue. The core principle is that an entity should recognize revenue to depict the transfer of control over promised goods or services to a customer in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for the goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows from customer contracts, including significant judgments made in recognizing revenue. In 2016, 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 two ASUs providing technical corrections, narrow scope exceptions and practical expedients to clarify and improve the implementation of the new revenue recognition guidance. The revenue guidance is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date (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 plan to adopt the new standard on January 1, 2018 on a full retrospective basis. We continue to make significant progress on quantifying the impact of the ASU on our consolidated financial statements and planning the final process, policy and disclosure changes that will go into effect on January 1, 2018. At this time, we do not expect a material impact from adopting the new revenue standards. |
Reclassifications | Reclassifications: Certain amounts previously reported have been reclassified to conform to current-year presentation. See Segment Change Goodwill and Intangible Assets Restructuring Programs, Segment Reporting Reclassifications from Accumulated Other Comprehensive Income, |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
History of Remeasurement Losses, Deconsolidation Loss and Historical Operating Results and Financial Position of Venezuelan Subsidiaries | The following table sets forth a history of the remeasurement losses, the deconsolidation loss and historical operating results and financial position of our Venezuelan subsidiaries for the periods presented: For the Years Ended December 31, 2015 2014 (in millions) Net revenues $ 1,217 $ 760 Operating income (excluding remeasurement and 266 181 Remeasurement losses: Q1 2014: 6.30 to 10.70 bolivars to the U.S. dollar – (142 ) SICAD I remeasurements through – (25 ) Q1 2015: 11.50 to 12.00 bolivars to the U.S. dollar (11 ) – Loss on deconsolidation (778 ) – As of December 31, 2015 2014 (in millions) Cash (1) $ 611 $ 278 Net monetary assets (1) 405 236 Net assets (1) 658 500 (1) Represents the financial position of our Venezuelan subsidiaries prior to the accounting change on December 31, 2015. |
Divestitures and Acquisitions (
Divestitures and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary Financial Information for Equity Method Investments | Summary Financial Information for Equity Method Investments: Summarized financial information for JDE, Keurig, DSF and our other equity method investments is reflected below. As of December 31, 2016 2015 (in millions) Current assets $ 4,458 $ 3,943 Noncurrent assets 35,089 20,936 Total assets $ 39,547 $ 24,879 Current liabilities $ 4,148 $ 2,779 Noncurrent liabilities 16,472 9,880 Total liabilities $ 20,620 $ 12,659 Total net equity of investees $ 18,927 $ 12,220 Mondelēz International ownership interests 24%-50% 40%-50% Mondelēz International share of investee net equity (1) $ 5,145 $ 5,387 Keurig shareholder loan 440 – Equity method investments $ 5,585 $ 5,387 For the Years Ended December 31, 2016 2015 2014 (in millions) Net revenues $ 10,923 $ 4,993 $ 2,721 Gross profit 4,219 1,551 921 Income from continuing operations 839 96 226 Net income 839 97 226 Net income attributable to investees $ 838 $ 97 $ 226 Mondelēz International ownership interests 24%-50% 40%-50% 40%-50% Mondelēz International share of investee net income $ 281 $ 56 $ 113 Keurig shareholder loan interest income 20 – – Equity method investment net earnings (2) $ 301 $ 56 $ 113 (1) Includes approximately $325 million of basis differences between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees’ equity. (2) Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax after-tax Summary of Significant Accounting Policies – Principles of Consolidation, |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Components of Inventories | Inventories consisted of the following: As of December 31, 2016 2015 (in millions) Raw materials $ 722 $ 782 Finished product 1,865 1,930 2,587 2,712 Inventory reserves (118 ) (103 ) Inventories, net $ 2,469 $ 2,609 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of December 31, 2016 2015 (in millions) Land and land improvements $ 471 $ 495 Buildings and building improvements 2,801 2,753 Machinery and equipment 10,302 10,044 Construction in progress 1,113 1,262 14,687 14,554 Accumulated depreciation (6,458 ) (6,192 ) Property, plant and equipment, net $ 8,229 $ 8,362 |
2014-2018 Restructuring Program | |
Schedule of Restructuring and Implementation Costs | During 2016, 2015 and 2014, we recorded restructuring and implementation costs related to the 2014-2018 Restructuring Program within operating income by segment (as revised to reflect our new segment structure) as follows: Latin North America AMEA Europe America (1) Corporate (2) Total (in millions) For the Year Ended December 31, 2016 Restructuring Costs $ 111 $ 96 $ 310 $ 183 $ 14 $ 714 Implementation Costs 54 48 88 121 61 372 Total $ 165 $ 144 $ 398 $ 304 $ 75 $ 1,086 For the Year Ended December 31, 2015 Restructuring Costs $ 145 $ 181 $ 243 $ 114 $ 28 $ 711 Implementation Costs 39 26 78 69 79 291 Total $ 184 $ 207 $ 321 $ 183 $ 107 $ 1,002 For the Year Ended December 31, 2014 Restructuring Costs $ 81 $ 30 $ 96 $ 57 $ 10 $ 274 Implementation Costs 16 12 38 5 36 107 Total $ 97 $ 42 $ 134 $ 62 $ 46 $ 381 Total Project 2014-2016 (3) Restructuring Costs $ 337 $ 307 $ 649 $ 354 $ 52 $ 1,699 Implementation Costs 109 86 204 195 176 770 Total $ 446 $ 393 $ 853 $ 549 $ 228 $ 2,469 (1) During 2016, our North America region implementation costs included incremental costs that we incurred related to re-negotiating (2) Includes adjustment for rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through December 31, 2016. |
2012-2014 Restructuring Program | |
Schedule of Restructuring and Implementation Costs | During 2014 and since inception of the 2012-2014 Restructuring Program, we recorded restructuring and implementation costs within operating income by segment (as revised to reflect our new segment structure) as follows: Latin North America AMEA Europe America Corporate (1) Total (in millions) For the Year Ended December 31, 2014 Restructuring Costs $ 8 $ 77 $ 162 $ 113 $ – $ 360 Implementation Costs 3 6 54 32 4 99 Total $ 11 $ 83 $ 216 $ 145 $ 4 $ 459 Total Project 2012-2014 (2) Restructuring Costs $ 36 $ 83 $ 271 $ 337 $ 2 $ 729 Implementation Costs 3 8 90 65 4 170 Total $ 39 $ 91 $ 361 $ 402 $ 6 $ 899 (1) Includes adjustment for rounding. (2) Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. |
Property Plant and Equipment | Asset impairment and exit costs | |
Schedule of Restructuring and Implementation Costs | These charges were recorded in the consolidated statements of earnings within asset impairment and exit costs and in the following segment results as follows: For the Years Ended December 31, 2016 2015 2014 (in millions) Latin America $ 22 $ 46 $ 14 AMEA 44 88 34 Europe 122 65 42 North America 111 65 83 Corporate 2 – – Total non-cash $ 301 $ 264 $ 173 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Goodwill by Segment | Goodwill by segment below reflects our latest segment structure for both periods presented: As of December 31, 2016 2015 (in millions) Latin America $ 897 $ 858 AMEA 3,324 3,537 Europe 7,170 7,404 North America 8,885 8,865 Goodwill $ 20,276 $ 20,664 |
Intangible Assets Disclosure | Intangible assets consisted of the following: As of December 31, 2016 2015 (in millions) Non-amortizable $ 17,004 $ 17,527 Amortizable intangible assets 2,315 2,320 19,319 19,847 Accumulated amortization (1,218 ) (1,079 ) Intangible assets, net $ 18,101 $ 18,768 |
Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: 2016 2015 Goodwill Intangible Goodwill Intangible (in millions) Balance at January 1 $ 20,664 $ 19,847 $ 23,389 $ 21,335 Changes due to: Currency (464 ) (540 ) (1,477 ) (1,462 ) Coffee business transactions (4 ) (8 ) (1,729 ) – Acquisitions 80 158 481 58 Asset impairments – (137 ) – (83 ) Other – (1 ) – (1 ) Balance at December 31 $ 20,276 $ 19,319 $ 20,664 $ 19,847 |
Restructuring Programs (Tables)
Restructuring Programs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
2014-2018 Restructuring Program | |
Schedule of Restructuring Costs | The 2014-2018 Restructuring Program liability activity for the years ended December 31, 2016 and 2015 was: Severance and related Asset costs Write-downs Total (in millions) Liability balance, January 1, 2015 $ 224 $ – $ 224 Charges 442 269 711 Cash spent (243 ) – (243 ) Non-cash (4 ) (269 ) (273 ) Currency (24 ) – (24 ) Liability balance, December 31, 2015 $ 395 $ – $ 395 Charges 402 312 714 Cash spent (315 ) – (315 ) Non-cash (9 ) (312 ) (321 ) Currency (9 ) – (9 ) Liability balance, December 31, 2016 $ 464 $ – $ 464 |
2012-2014 Restructuring Program | |
Schedule of Restructuring Costs | The 2012-2014 Restructuring Program liability activity for the years ended December 31, 2016 and 2015 was: Severance and related Asset costs Write-downs Total (in millions) Liability balance, January 1, 2015 $ 128 $ – $ 128 Charges (4 ) – (4 ) Cash spent (66 ) – (66 ) Non-cash (4 ) – (4 ) Currency (7 ) – (7 ) Liability balance, December 31, 2015 $ 47 $ – $ 47 Charges – – – Cash spent (21 ) – (21 ) Non-cash (6 ) – (6 ) Currency (1 ) – (1 ) Liability balance, December 31, 2016 $ 19 $ – $ 19 |
Debt and Borrowing Arrangemen34
Debt and Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Short-Term Borrowings and Related Weighted-Average Interest Rates | Our short-term borrowings and related weighted-average interest rates consisted of: As of December 31, 2016 2015 Amount Weighted- Amount Weighted- Outstanding Average Rate Outstanding Average Rate (in millions) (in millions) Commercial paper $ 2,371 1.0% $ – 0.0% Bank loans 160 10.6% 236 9.5% Total short-term borrowings $ 2,531 $ 236 |
Long-Term Debt | Our long-term debt consisted of (interest rates are as of December 31, 2016): As of December 31, 2016 2015 (in millions) U.S. dollar notes, 0.881% to 7.000% (weighted-average effective rate 3.527%), $ 8,812 $ 8,371 Euro notes, 1.000% to 2.375% (weighted-average effective rate 1.808%), 3,980 4,305 Pound sterling notes, 3.875% to 7.250% (weighted-average effective rate 4.441%), 418 1,399 Swiss franc notes, 0.000% to 1.125% (weighted-average effective rate 0.636%), 1,449 1,075 Capital leases and other obligations 9 12 Total 14,668 15,162 Less current portion of long-term (1,451 ) (605 ) Long-term debt $ 13,217 $ 14,557 |
Aggregate Maturities of Debt and Capital Leases Based on Stated Contractual Maturities | As of December 31, 2016, aggregate maturities of our debt and capital leases based on stated contractual maturities, excluding unamortized non-cash mark-to-market 2017 2018 2019 2020 2021 Thereafter Total $1,451 $1,144 $2,650 $658 $3,260 $5,574 $14,737 |
Interest and Other Expense Net Within Results of Continuing Operations | Interest and other expense, net within our results of continuing operations consisted of: For the Years Ended December 31, 2016 2015 2014 (in millions) Interest expense, debt $ 515 $ 609 $ 778 Loss on debt extinguishment and related expenses 427 753 495 JDE coffee business transactions currency-related net gains – (436 ) (628 ) Loss related to interest rate swaps 97 34 – Other expense, net 76 53 43 Interest and other expense, net $ 1,115 $ 1,013 $ 688 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the consolidated balance sheets as follows: As of December 31, 2016 2015 Asset Liability Asset Liability Derivatives Derivatives Derivatives Derivatives (in millions) Derivatives designated as accounting hedges: Currency exchange contracts $ 19 $ 8 $ 20 $ 7 Commodity contracts 17 22 37 35 Interest rate contracts 108 19 12 57 $ 144 $ 49 $ 69 $ 99 Derivatives not designated as accounting hedges: Currency exchange contracts $ 29 $ 43 $ 61 $ 33 Commodity contracts 112 167 70 56 Interest rate contracts 27 19 43 28 $ 168 $ 229 $ 174 $ 117 Total fair value $ 312 $ 278 $ 243 $ 216 |
Notional Values of Derivative Instruments | The net notional values of our derivative instruments were: Notional Amount As of December 31, 2016 2015 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,343 $ 4,148 Forecasted transactions 1,452 1,094 Commodity contracts 837 732 Interest rate contracts 6,365 3,033 Net investment hedge – euro notes 4,012 4,345 Net investment hedge – pound sterling notes 419 1,404 Net investment hedge – Swiss franc notes 1,447 1,073 |
Hedges of Net Investments in International Operations | After-tax Location of For the Years Ended December 31, Gain / (Loss) 2016 2015 2014 Recognized in AOCI (in millions) Euro notes $ 73 $ 268 $ 328 Currency Pound sterling notes 148 42 39 Translation Swiss franc notes 12 9 – 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 December 31, 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 $ (3 ) $ – $ (3 ) $ – Commodity contracts (60 ) (86 ) 26 – Interest rate contracts 97 – 97 – Total derivatives $ 34 $ (86 ) $ 120 $ – 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 Earnings / (Losses), Net of Taxes | Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings / (losses) included: For the Years Ended December 31, 2016 2015 2014 (in millions) Accumulated gain / (loss) at January 1 $ (45 ) $ (2 ) $ 117 Transfer of realized losses / (gains) in fair value to earnings 53 – (40 ) Unrealized gain / (loss) in fair value (129 ) (43 ) (79 ) Accumulated gain / (loss) at December 31 $ (121 ) $ (45 ) $ (2 ) |
Schedule of Effects of Derivative Instruments | After-tax For the Years Ended December 31, 2016 2015 2014 (in millions) Currency exchange contracts – forecasted transactions $ (1 ) $ 83 $ 26 Commodity contracts (4 ) (52 ) 16 Interest rate contracts (48 ) (31 ) (2 ) Total $ (53 ) $ – $ 40 After-tax For the Years Ended December 31, 2016 2015 2014 (in millions) Currency exchange contracts – forecasted transactions $ 8 $ 40 $ 82 Commodity contracts (34 ) (35 ) (2 ) Interest rate contracts (103 ) (48 ) (159 ) Total $ (129 ) $ (43 ) $ (79 ) Pre-tax For the Years Ended December 31, 2016 2015 2014 (in millions) Commodity contracts $ 2 $ (4 ) $ (10 ) |
Fair Value Hedges | |
Schedule of Effects of Derivative Instruments | Pre-tax For the Years Ended December 31, 2016 2015 2014 (in millions) Derivatives $ (6 ) $ (1 ) $ 13 Borrowings 6 1 (13 ) |
Economic Hedging | |
Schedule of Effects of Derivative Instruments | Pre-tax For the Years Ended December 31, Location of Recognized 2016 2015 2014 in Earnings (in millions) Currency exchange contracts: Intercompany loans and $ 21 $ 29 $ 4 Interest and other Forecasted transactions (76 ) 29 29 Cost of sales Forecasted transactions 11 435 610 Interest and other Forecasted transactions 7 (12 ) (4 ) Selling, general Commodity contracts (101 ) (38 ) (136 ) Cost of sales Total $ (138 ) $ 443 $ 503 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Pension Plans | |
Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans | The projected benefit obligations, plan assets and funded status of our pension plans were: U.S. Plans Non-U.S. 2016 2015 2016 2015 (in millions) Benefit obligation at January 1 $ 1,566 $ 1,606 $ 9,547 $ 10,854 Service cost 57 64 147 188 Interest cost 61 67 229 307 Benefits paid (32 ) (35 ) (425 ) (435 ) Settlements paid (91 ) (88 ) – 1 Actuarial (gains) / losses 52 (49 ) 1,284 (262 ) Deconsolidation of JDE coffee business – – – (261 ) Divestiture – – (5 ) – Currency – – (979 ) (766 ) Other 1 1 16 (79 ) Benefit obligation at December 31 1,614 1,566 9,814 9,547 Fair value of plan assets at January 1 1,247 1,216 7,721 8,362 Actual return on plan assets 118 (71 ) 1,079 192 Contributions 378 225 419 318 Benefits paid (32 ) (35 ) (425 ) (435 ) Settlements paid (91 ) (88 ) – – Deconsolidation of JDE coffee business – – – (130 ) Divestiture – – (4 ) – Currency – – (863 ) (579 ) Other – – (1 ) (7 ) Fair value of plan assets at December 31 1,620 1,247 7,926 7,721 Net pension assets (liability) at December 31 $ 6 $ (319 ) $ (1,888 ) $ (1,826 ) |
Pension Plans Resulted in Net Pension Liability | The combined U.S. and non-U.S. As of December 31, 2016 2015 (in millions) Prepaid pension assets $ 159 $ 69 Other accrued liabilities (27 ) (31 ) Accrued pension costs (2,014 ) (2,183 ) $ (1,882 ) $ (2,145 ) |
Projected Benefit Obligations, Accumulated Benefit Obligations and Fair Value of Plan Assets | For these plans, the projected benefit obligations, accumulated benefit obligations and the fair value of plan assets were: U.S. Plans Non-U.S. As of December 31, As of December 31, 2016 2015 2016 2015 (in millions) Projected benefit obligation $ 96 $ 1,566 $ 8,386 $ 8,139 Accumulated benefit obligation 88 1,463 8,168 7,920 Fair value of plan assets 2 1,247 6,451 6,252 |
Components of Net Costs | Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. For the Years Ended December 31, For the Years Ended December 31, 2016 2015 2014 2016 2015 2014 (in millions) Service cost $ 57 $ 64 $ 57 $ 147 $ 188 $ 184 Interest cost 61 67 67 229 307 388 Expected return on plan assets (97 ) (93 ) (81 ) (418 ) (478 ) (485 ) Amortization: Net loss from experience 42 43 29 120 141 106 Prior service cost (1) 2 2 2 (3 ) 15 – Settlement losses and (2) 30 19 28 6 2 14 Net periodic pension cost $ 95 $ 102 $ 102 $ 81 $ 175 $ 207 (1) For the year ended December 31, 2015, amortization of prior service cost includes $17 million of pension curtailment losses related to employees who transitioned to JDE upon the contribution of our global coffee business. Refer to Note 2 , Divestitures and Acquisitions – JDE Coffee Business Transactions (2) Settlement losses include $15 million for the year ended December 31, 2016 and $9 million for the year ended December 31, 2015 of pension settlement losses for employees who elected lump-sum lump-sum non-U.S. non-U.S. lump-sum lump-sum non-U.S. Restructuring Programs , Divestitures and Acquisitions – JDE Coffee Business Transactions |
Fair Values of Pension Plan Assets | The fair value of pension plan assets was determined using the following fair value measurements: As of December 31, 2016 Quoted Prices Significant Asset Category Total Fair in Active Markets Other (Level 2) Significant (Level 3) (in millions) U.S. equity securities $ 1 $ 1 $ – $ – Non-U.S. 427 427 – – Pooled funds - equity securities 1,524 286 1,235 3 Total equity securities 1,952 714 1,235 3 Government bonds 3,009 37 2,972 – Pooled funds - fixed-income securities 756 103 618 35 Corporate bonds and other 852 357 (43 ) 538 Total fixed-income securities 4,617 497 3,547 573 Real estate 170 98 50 22 Hedge funds – – – – Private equity 2 – – 2 Cash 73 72 1 – Other 3 1 – 2 Total assets in the fair value hierarchy $ 6,817 $ 1,382 $ 4,833 $ 602 Investments measured at net asset value 2,667 Total Investments at fair value $ 9,484 As of December 31, 2015 Quoted Prices Significant Asset Category Total Fair in Active Markets Other (Level 2) Significant (Level 3) (in millions) U.S. equity securities $ 2 $ 2 $ – $ – Non-U.S. 498 412 86 – Pooled funds - equity securities 1,468 275 1,193 – Total equity securities 1,968 689 1,279 – Government bonds 1,770 35 1,735 – Pooled funds - fixed-income securities 575 118 431 26 Corporate bonds and other 1,686 320 701 665 Total fixed-income securities 4,031 473 2,867 691 Real estate 339 109 – 230 Hedge funds – – – – Private equity 2 – – 2 Cash 138 138 – – Other 2 1 – 1 Total assets in the fair value hierarchy $ 6,480 $ 1,410 $ 4,146 $ 924 Investments measured at net asset value 2,422 Total investments at fair value $ 8,902 The percentage of fair value of pension plan assets was: U.S. Plans Non-U.S. As of December 31, As of December 31, Asset Category 2016 2015 2016 2015 Equity securities 33% 32% 29% 32% Fixed-income securities 63% 65% 57% 50% Real estate 4% 3% 5% 6% Hedge funds – – 6% 7% Private equity – – 2% 3% Cash – – 1% 1% Other – – – 1% Total 100% 100% 100% 100% |
Schedule of Changes in Level 3 Plan Assets | Changes in our Level 3 plan assets, which are recorded in other comprehensive earnings / (losses), included: Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Non-U.S. $ – $ – $ – $ 3 $ – 3 Pooled funds- fixed-income securities 26 6 15 (7 ) (5 ) 35 Corporate bond and other 665 21 (41 ) – (107 ) 538 Real estate 230 – (184 ) (3 ) (21 ) 22 Hedge funds – – – – – – Private equity 3 – – 1 – 4 Total Level 3 investments $ 924 $ 27 $ (210 ) $ (6 ) $ (133 ) $ 602 Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Pooled funds- fixed-income securities $ 97 $ (1 ) $ 25 $ (89 ) $ (6 ) $ 26 Corporate bond and other 749 4 (50 ) – (38 ) 665 Real estate 292 19 61 (125 ) (17 ) 230 Hedge funds 829 13 (312 ) (499 ) (31 ) – Private equity 240 17 (36 ) (206 ) (12 ) 3 Total Level 3 investments $ 2,207 $ 52 $ (312 ) $ (919 ) $ (104 ) $ 924 |
Estimated Future Benefit Payments | The estimated future benefit payments from our pension plans at December 31, 2016 were (in millions): Year ending: 2017 2018 2019 2020 2021 2022-2026 U.S. Plans $ 89 $ 97 $ 103 $ 107 $ 108 $ 568 Non-U.S. 357 356 363 378 400 2,138 |
Schedule of Individually Significant Multiemployer Pension Plan | The only individually significant multiemployer plan we participate in as of December 31, 2016 is the Bakery and Confectionery Union and Industry International Pension Fund (the “Fund”). Expiration Date Pension FIP / RP of Collective- EIN / Pension Protection Act Status Pending / Surcharge Bargaining Pension Fund Plan Number Zone Status Implemented Imposed Agreements Bakery and Confectionery Union and 526118572 Red Implemented Yes 2/29/2016 |
Defined Benefit Pension Plan Benefit Obligation | |
Weighted Average Assumptions | We used the following weighted-average U.S. Plans Non-U.S. As of December 31, As of December 31, 2016 2015 2016 2015 Discount rate 4.19% 4.50% 2.31% 3.11% Expected rate of return on plan assets 6.25% 6.75% 5.14% 5.87% Rate of compensation increase 4.00% 4.00% 3.29% 3.18% |
Postretirement Benefit Plans | |
Weighted Average Assumptions | We used the following weighted-average U.S. Plans Non-U.S. For the Years Ended December 31, For the Years Ended December 31, 2016 2015 2014 2016 2015 2014 Discount rate 4.50% 4.20% 5.10% 3.11% 2.99% 4.03% Expected rate of return on 6.75% 7.25% 7.75% 5.87% 5.96% 6.17% Rate of compensation increase 4.00% 4.00% 4.00% 3.18% 3.26% 3.63% |
Components of Net Costs | Net periodic postretirement health care costs consisted of the following: For the Years Ended December 31, 2016 2015 2014 (in millions) Service cost $ 12 $ 15 $ 13 Interest cost 20 22 22 Amortization: Net loss from experience differences 10 13 5 Prior service credit (1) (20 ) (7 ) (10 ) Net periodic postretirement health care costs $ 22 $ 43 $ 30 (1) For the year ended December 31, 2016, amortization of prior service credit includes $9 million of curtailment gain related to a change in the eligibility requirement. |
Estimated Future Benefit Payments | Our estimated future benefit payments for our postretirement health care plans at December 31, 2016 were (in millions): Year ending: 2017 2018 2019 2020 2021 2022-2026 U.S. Plans $8 $10 $11 $12 $13 $80 Non-U.S. 5 5 5 6 6 34 |
Changes in Accumulated Postemployment Benefit Obligations | Our postretirement health care plans are not funded. The changes in and the amount of the accrued benefit obligation were: As of December 31, 2016 2015 (in millions) Accrued benefit obligation at January 1 $ 511 $ 538 Service cost 12 15 Interest cost 20 22 Benefits paid (14 ) (10 ) Plan amendments (1) (149 ) – Currency 3 (22 ) Assumption changes 34 (30 ) Actuarial (gains) / losses (23 ) (2 ) Accrued benefit obligation at December 31 $ 394 $ 511 (1) Plan amendments included a change in eligibility requirements related to medical and life insurance benefits and a change in benefits for Medicare-eligible participants. |
Weighted-Average Assumptions to Determine Benefit Obligations | We used the following weighted-average U.S. Plans Non-U.S. As of December 31, As of December 31, 2016 2015 2016 2015 Discount rate 4.14% 4.60% 4.55% 4.77% Health care cost trend rate 6.50% 6.50% 5.50% 5.37% Ultimate trend rate 5.00% 5.00% 5.68% 5.55% Year that the rate reaches the 2020 2020 2018 2018 |
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point As of December 31, 2016 One-Percentage-Point Increase Decrease (in millions) Effect on postretirement benefit obligation $ 41 $ (33 ) Effect on annual service and interest cost 3 (2 ) |
Defined Benefit Pension Net Periodic Pension Cost | |
Weighted Average Assumptions | We used the following weighted-average U.S. Plans Non-U.S. For the Years Ended December 31, For the Years Ended December 31, 2016 2015 2014 2016 2015 2014 Discount rate 4.60% 4.20% 5.10% 4.77% 4.52% 5.17% Health care cost trend rate 6.50% 6.50% 7.00% 5.50% 5.18% 5.11% |
Postemployment Benefit Plans | |
Components of Net Costs | Net periodic postemployment costs consisted of the following: For the Years Ended December 31, 2016 2015 2014 (in millions) Service cost $ 7 $ 7 $ 9 Interest cost 6 5 6 Amortization of net gains (1 ) – – Net periodic postemployment costs $ 12 $ 12 $ 15 |
Changes in Accumulated Postemployment Benefit Obligations | Our postemployment plans are primarily not funded. The changes in and the amount of the accrued benefit obligation at December 31, 2016 and 2015 were: 2016 2015 (in millions) Accrued benefit obligation at January 1 $ 95 $ 94 Service cost 7 7 Interest cost 6 5 Benefits paid (9 ) (7 ) Assumption changes (21 ) (3 ) Actuarial gains (7 ) (1 ) Accrued benefit obligation at December 31 $ 71 $ 95 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Weighted-Average Black-Scholes Fair Value Assumptions | Our weighted-average Black-Scholes fair value assumptions were: Risk-Free Expected Life Expected Expected Fair Value 2016 1.40% 6 years 23.11% 1.61% $ 7.86 2015 1.70% 6 years 18.51% 1.61% $ 6.12 2014 1.87% 6 years 21.48% 1.64% $ 6.60 |
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, 2014 55,783,439 $ 21.96 $ 744 million Annual grant to eligible employees 9,919,810 34.17 Additional options issued 500,250 33.65 Total options granted 10,420,060 34.14 Options exercised (1) (8,076,550 ) 20.85 $ 125 million Options cancelled (1,695,398 ) 27.65 Balance at December 31, 2014 56,431,551 24.19 $ 685 million Annual grant to eligible employees 8,899,530 36.94 Additional options issued 901,340 35.84 Total options granted 9,800,870 36.84 Options exercised (1) (6,444,515 ) 22.94 $ 108 million Options cancelled (2,753,798 ) 32.35 Balance at December 31, 2015 (2) 57,034,108 26.12 $ 1,068 million Annual grant to eligible employees 7,517,290 39.70 Additional options issued 115,800 42.26 Total options granted 7,633,090 39.74 Options exercised (1) (8,883,101 ) 24.09 $ 174 million Options cancelled (2,182,485 ) 35.23 Balance at December 31, 2016 53,601,612 28.02 6 years $ 874 million Exercisable at December 31, 2016 39,016,883 24.43 5 years $ 777 million (1) Cash received from options exercised was $221 million in 2016, $148 million in 2015 and $168 million in 2014. The actual tax benefit realized for the tax deductions from the option exercises totaled $31 million in 2016, $58 million in 2015 and $29 million in 2014. (2) Prior-year aggregate intrinsic value has been revised. |
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 Fair Value Aggregate of Shares Grant Date Per Share Fair Value Balance at January 1, 2014 11,648,587 $ 24.48 Annual grant to eligible employees: Feb. 19, 2014 Performance share units 1,143,620 34.97 Restricted stock 750,410 34.17 Deferred stock units 1,240,820 34.17 Additional shares granted (1) 935,463 Various 33.15 Total shares granted 4,070,313 34.16 $ 139 million Vested (2) (4,380,452 ) 22.98 $ 101 million Forfeited (2) (755,808 ) 28.14 Balance at December 31, 2014 10,582,640 28.56 Annual grant to eligible employees: Feb. 18, 2015 Performance share units 1,598,290 36.94 Restricted stock 386,910 36.94 Deferred stock units 866,640 36.94 Additional shares granted (1) 1,087,322 Various 39.35 Total shares granted 3,939,162 37.61 $ 148 million Vested (2) (3,905,745 ) 37.83 $ 148 million Forfeited (2) (1,197,841 ) 32.51 Balance at December 31, 2015 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) 864,851 Various 31.29 Total shares granted 3,312,141 37.50 $ 124 million Vested (2) (3,992,902 ) 40.22 $ 161 million Forfeited (2) (1,143,828 ) 37.49 Balance at December 31, 2016 7,593,627 24.29 (1) Includes performance share units, deferred stock units and restricted stock. (2) Includes performance share units, deferred stock units and restricted stock. The actual tax benefit realized for the tax deductions from the shares vested totaled $18 million in 2016, $18 million in 2015 and $20 million in 2014. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Authorized Common Stock Repurchase Programs | Shares of Common Stock issued, in treasury and outstanding were: Shares Shares Issued Treasury Shares Outstanding Balance at January 1, 2014 1,996,537,778 (291,141,184 ) 1,705,396,594 Shares repurchased – (51,931,864 ) (51,931,864 ) Exercise of stock options and issuance of – 10,176,269 10,176,269 Balance at December 31, 2014 1,996,537,778 (332,896,779 ) 1,663,640,999 Shares repurchased – (91,875,878 ) (91,875,878 ) Exercise of stock options and issuance of – 8,268,033 8,268,033 Balance at December 31, 2015 1,996,537,778 (416,504,624 ) 1,580,033,154 Shares repurchased – (61,972,713 ) (61,972,713 ) Exercise of stock options and issuance of – 10,305,100 10,305,100 Balance at December 31, 2016 1,996,537,778 (468,172,237 ) 1,528,365,541 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Minimum Rental Commitments | As of December 31, 2016, minimum rental commitments under non-cancelable year-end 2017 2018 2019 2020 2021 Thereafter Total $ 241 $ 175 $ 143 $ 115 $ 90 $ 157 $ 921 |
Reclassifications from Accumu40
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Amounts Reclassified from Accumulated Other Comprehensive Earnings/ (Losses) | The following table summarizes the changes in the accumulated balances of each component of accumulated other comprehensive earnings / (losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings / (losses) to net earnings (net of tax) were net losses of $250 million in 2016, $350 million in 2015 and $79 million in 2014. For the Years Ended December 31, 2016 2015 2014 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (8,006 ) $ (5,042 ) $ (1,414 ) Currency translation adjustments (847 ) (2,905 ) (3,433 ) Reclassification to earnings related to: Venezuela deconsolidation – 99 – Equity method investment exchange 57 – – Tax (expense) / benefit (135 ) (184 ) (228 ) Other comprehensive earnings / (losses) (925 ) (2,990 ) (3,661 ) Less: loss attributable to noncontrolling interests 17 26 33 Balance at end of period (8,914 ) (8,006 ) (5,042 ) Pension and Other Benefit Plans: Balance at beginning of period $ (1,934 ) $ (2,274 ) $ (1,592 ) Net actuarial gain / (loss) arising during period (491 ) (60 ) (1,388 ) Tax (expense) / benefit on net actuarial gain / (loss) 70 3 442 Losses / (gains) reclassified into net earnings: Amortization of experience losses and prior service costs (1) 150 207 132 Settlement losses (1) 36 111 42 Venezuela deconsolidation – 2 – Tax (expense) / benefit on reclassifications (2) (46 ) (69 ) (56 ) Currency impact 128 146 146 Other comprehensive earnings / (losses) (153 ) 340 (682 ) Balance at end of period (2,087 ) (1,934 ) (2,274 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (46 ) $ (2 ) $ 117 Net derivative gains / (losses) (151 ) (75 ) (166 ) Tax (expense) / benefit on net derivative gain / (loss) 20 30 86 Losses / (gains) reclassified into net earnings: Currency exchange contracts – (3) 3 (90 ) (27 ) Commodity contracts (3) 9 64 (21 ) Interest rate contracts (4) 83 47 3 Tax (expense) / benefit on reclassifications (2) (42 ) (21 ) 6 Currency impact 3 1 – Other comprehensive earnings / (losses) (75 ) (44 ) (119 ) Balance at end of period (121 ) (46 ) (2 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (9,986 ) $ (7,318 ) $ (2,889 ) Total other comprehensive earnings / (losses) (1,153 ) (2,694 ) (4,462 ) Less: loss attributable to noncontrolling interests 17 26 33 Other comprehensive earnings / (losses) attributable to Mondelēz International (1,136 ) (2,668 ) (4,429 ) Balance at end of period $ (11,122 ) $ (9,986 ) $ (7,318 ) (1) These reclassified gains or losses are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans (2) Taxes related to reclassified gains or losses are recorded within the provision for income taxes. (3) These reclassified gains or losses are recorded within cost of sales. (4) These reclassified gains or losses are recorded within interest and other expense, net. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Provision for Income Taxes | Earnings / (losses) from continuing operations before income taxes and the provision for income taxes consisted of: For the Years Ended December 31, 2016 2015 2014 (in millions) Earnings / (losses) from continuing operations United States $ (364 ) $ 43 $ (135 ) Outside United States 1,818 7,841 2,689 Total $ 1,454 $ 7,884 $ 2,554 Provision for income taxes: United States federal: Current $ (227 ) $ (90 ) $ (125 ) Deferred 141 136 28 (86 ) 46 (97 ) State and local: Current 7 6 20 Deferred 8 (3 ) 11 15 3 31 Total United States (71 ) 49 (66 ) Outside United States: Current 490 707 644 Deferred (290 ) (163 ) (225 ) Total outside United States 200 544 419 Total provision for income taxes $ 129 $ 593 $ 353 |
Effective Income Tax Rate | The effective income tax rate on pre-tax For the Years Ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0% 35.0% 35.0% Increase / (decrease) resulting from: State and local income taxes, net of federal tax benefit excluding IRS audit impacts 0.8% (0.1)% 0.3% Foreign rate differences (18.6)% (2.5)% (14.5)% Reversal of other tax accruals no longer required (7.7)% (1.4)% (10.5)% Tax accrual on investment in Keurig 2.3% – – Tax legislation (4.0)% (0.5)% – Gains on coffee business transactions and divestitures – (26.9)% – Loss on deconsolidation of Venezuela – 3.5% – Remeasurement of net monetary assets in Venezuela – – 1.7% Non-deductible 0.9% 0.3% 1.5% Other 0.2% 0.1% 0.3% Effective tax rate 8.9% 7.5% 13.8% |
Deferred Tax Assets and Liabilities Temporary Differences | The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: As of December 31, 2016 2015 (in millions) Deferred income tax assets: Accrued postretirement and postemployment benefits $ 214 $ 230 Accrued pension costs 370 414 Other employee benefits 237 265 Accrued expenses 379 343 Loss carryforwards 619 636 Other 331 352 Total deferred income tax assets 2,150 2,240 Valuation allowance (310 ) (303 ) Net deferred income tax assets $ 1,840 $ 1,937 Deferred income tax liabilities: Intangible assets $ (5,174 ) $ (5,365 ) Property, plant and equipment (557 ) (636 ) Other (472 ) (409 ) Total deferred income tax liabilities (6,203 ) (6,410 ) Net deferred income tax liabilities $ (4,363 ) $ (4,473 ) |
Changes in Unrecognized Tax Benefit | The changes in our unrecognized tax benefits were: For the Years Ended December 31, 2016 2015 2014 (in millions) January 1 $ 756 $ 852 $ 1,189 Increases from positions taken during prior periods 18 34 143 Decreases from positions taken during prior periods (123 ) (74 ) (247 ) Increases from positions taken during the current period 90 84 147 Decreases relating to settlements with taxing authorities (75 ) (13 ) (203 ) Reductions resulting from the lapse of the applicable statute of limitations (43 ) (41 ) (64 ) Currency / other (13 ) (86 ) (113 ) December 31 $ 610 $ 756 $ 852 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Years Ended December 31, 2016 2015 2014 (in millions, except per share data) Net earnings $ 1,669 $ 7,291 $ 2,201 Noncontrolling interest (10 ) (24 ) (17 ) Net earnings attributable to Mondelēz International $ 1,659 $ 7,267 $ 2,184 Weighted-average shares for basic EPS 1,556 1,618 1,691 Plus incremental shares from assumed conversions of 17 19 18 Weighted-average shares for diluted EPS 1,573 1,637 1,709 Basic earnings per share attributable to $ 1.07 $ 4.49 $ 1.29 Diluted earnings per share attributable to $ 1.05 $ 4.44 $ 1.28 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Net Revenues and Earnings by Segment | Our segment net revenues and earnings, revised to reflect our new segment structure, were: For the Years Ended December 31, 2016 2015 2014 (in millions) Net revenues: Latin America (1) $ 3,392 $ 4,988 $ 5,153 AMEA (2) 5,816 6,002 6,367 Europe (2) 9,755 11,672 15,788 North America 6,960 6,974 6,936 Net revenues $ 25,923 $ 29,636 $ 34,244 (1) Net revenues of $1,217 million for 2015 and $760 million for 2014 from our Venezuelan subsidiaries are included in our 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 consolidated financial statements. Refer to Note 1, Summary of Significant Accounting Policies – Currency Translation and Highly Inflationary Accounting: Venezuela, (2) On July 2, 2015, we contributed our global coffee businesses primarily from our Europe and AMEA segments. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | For the Years Ended December 31, 2016 2015 2014 (in millions) Earnings before income taxes: Operating income: Latin America $ 271 $ 485 $ 475 AMEA 506 389 530 Europe 1,267 1,350 1,952 North America 1,078 1,105 922 Unrealized (losses) / gains on hedging activities (mark-to-market (94 ) 96 (112 ) General corporate expenses (291 ) (383 ) (317 ) Amortization of intangibles (176 ) (181 ) (206 ) Gains on divestitures and JDE coffee business transactions 9 6,822 – Loss on deconsolidation of Venezuela – (778 ) – Acquisition-related costs (1 ) (8 ) (2 ) Operating income 2,569 8,897 3,242 Interest and other expense, net (1,115 ) (1,013 ) (688 ) Earnings before income taxes $ 1,454 $ 7,884 $ 2,554 |
Total Assets, Depreciation Expense and Capital Expenditure by Segment | Total assets, depreciation expense and capital expenditures by segment, revised to reflect our new segment structure, were: For the Years Ended December 31, 2016 2015 2014 (in millions) Total assets: Latin America $ 5,156 $ 4,673 $ 6,470 AMEA 10,031 10,460 10,549 Europe 19,934 21,026 27,240 North America 20,694 21,175 21,287 Equity method investments 5,585 5,387 662 Unallocated assets (1) 138 122 563 Total assets $ 61,538 $ 62,843 $ 66,771 (1) Unallocated assets consist primarily of cash and cash equivalents, deferred income taxes, centrally held property, plant and equipment, prepaid pension assets and derivative financial instrument balances. We had debt issuance costs related to recognized debt liabilities of $40 million as of December 31, 2016, $46 million as of December 31, 2015 and $44 million as of December 31, 2014. For the Years Ended December 31, 2016 2015 2014 (in millions) Depreciation expense: Latin America $ 92 $ 94 $ 118 AMEA 161 155 154 Europe 253 299 407 North America 141 165 174 Total depreciation expense $ 647 $ 713 $ 853 For the Years Ended December 31, 2016 2015 2014 (in millions) Capital Expenditures: Latin America $ 321 $ 354 $ 460 AMEA 349 381 451 Europe 294 517 553 North America 260 262 178 Total capital expenditures $ 1,224 $ 1,514 $ 1,642 |
Net Revenues by Geographic Segment | For the Years Ended December 31, 2016 2015 2014 (in millions) Net revenues: United States $ 6,329 $ 6,302 $ 6,143 Other 19,594 23,334 28,101 Total net revenues $ 25,923 $ 29,636 $ 34,244 |
Long-lived Assets by Geographic Segment | As of December 31, 2016 2015 2014 (in millions) Long-lived assets: United States $ 1,508 $ 1,551 $ 1,564 Other 7,229 7,238 8,801 Total long-lived assets $ 8,737 $ 8,789 $ 10,365 |
Net Revenues by Consumer Sector | Net revenues by product category, revised to reflect our new segment structure, were: For the Year Ended December 31, 2016 Latin North America (1) AMEA Europe America Total (1) (in millions) Biscuits $ 734 $ 1,588 $ 2,703 $ 5,565 $ 10,590 Chocolate 743 1,901 4,840 255 7,739 Gum & Candy 938 953 916 1,140 3,947 Beverages 657 611 177 – 1,445 Cheese & Grocery 320 763 1,119 – 2,202 Total net revenues $ 3,392 $ 5,816 $ 9,755 $ 6,960 $ 25,923 For the Year Ended December 31, 2015 Latin North America (1) AMEA Europe (3) America Total (1) (in millions) Biscuits $ 1,605 $ 1,539 $ 2,680 $ 5,569 $ 11,393 Chocolate 840 1,928 5,050 256 8,074 Gum & Candy 1,091 1,003 1,015 1,149 4,258 Beverages (2) 767 730 1,763 – 3,260 Cheese & Grocery 685 802 1,164 – 2,651 Total net revenues $ 4,988 $ 6,002 $ 11,672 $ 6,974 $ 29,636 For the Year Ended December 31, 2014 Latin North America (1) AMEA Europe (3) America Total (1) (in millions) Biscuits $ 1,322 $ 1,442 $ 3,259 $ 5,486 $ 11,509 Chocolate 1,054 2,073 5,997 296 9,420 Gum & Candy 1,176 1,098 1,232 1,154 4,660 Beverages (2) 940 836 3,902 – 5,678 Cheese & Grocery 661 918 1,398 – 2,977 Total net revenues $ 5,153 $ 6,367 $ 15,788 $ 6,936 $ 34,244 (1) In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies Currency Translation and Highly Inflationary Accounting: Venezuela (2) On July 2, 2015, we contributed our global coffee businesses primarily from our Europe and AMEA segment beverage categories. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions (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. |
Quarterly Financial Data (Una44
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Operating Results | Our summarized operating results by quarter are detailed below. 2016 Quarters First Second Third Fourth (in millions, except per share data) Net revenues $ 6,455 $ 6,302 $ 6,396 $ 6,770 Gross profit 2,535 2,516 2,488 2,589 Provision for income taxes (49 ) (118 ) (40 ) 78 Gain on equity method investment exchange 43 – – – Equity method investment net earnings (1) 85 102 31 83 Net earnings (2) $ 557 $ 471 $ 548 $ 93 Noncontrolling interest (3 ) (7 ) – – Net earnings attributable to Mondelēz International $ 554 $ 464 $ 548 $ 93 Weighted-average shares for basic EPS 1,569 1,557 1,557 1,540 Plus incremental shares from assumed conversions of 18 19 19 19 Weighted-average shares for diluted EPS 1,587 1,576 1,576 1,559 Per share data: Basic EPS attributable to Mondelēz International: $ 0.35 $ 0.30 $ 0.35 $ 0.06 Diluted EPS attributable to Mondelēz International: $ 0.35 $ 0.29 $ 0.35 $ 0.06 Dividends declared $ 0.17 $ 0.17 $ 0.19 $ 0.19 Market price - high $ 44.45 $ 45.75 $ 46.36 $ 46.40 - low $ 35.88 $ 39.53 $ 41.96 $ 40.50 2015 Quarters First Second Third Fourth (in millions, except per share data) Net revenues $ 7,762 $ 7,661 $ 6,849 $ 7,364 Gross profit 2,941 3,066 2,670 2,835 Provision for income taxes 113 100 348 32 Equity method investment net (losses) / earnings (2) – – (72 ) 72 Net earnings / (loss) (1) $ 312 $ 427 $ 7,268 $ (716 ) Noncontrolling interest 12 (21 ) (2 ) (13 ) Net earnings / (loss) attributable to Mondelēz International $ 324 $ 406 $ 7,266 $ (729 ) Weighted-average shares for basic EPS 1,648 1,625 1,609 1,589 Plus incremental shares from assumed conversions of 17 18 20 21 Weighted-average shares for diluted EPS 1,665 1,643 1,629 1,610 Per share data: Basic EPS attributable to Mondelēz International: $ 0.20 $ 0.25 $ 4.52 $ (0.46 ) Diluted EPS attributable to Mondelēz International (3) $ 0.19 $ 0.25 $ 4.46 $ (0.46 ) Dividends declared $ 0.15 $ 0.15 $ 0.17 $ 0.17 Market price - high $ 37.88 $ 41.81 $ 48.58 $ 47.42 - low $ 33.97 $ 35.93 $ 38.91 $ 41.55 (1) Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax after-tax Pre-tax Summary of Significant Accounting Policies – Principles of Consolidation, Divestitures and Acquisitions – JDE Tax Matter Resolution (2) See the following table for significant items that affected the comparability of earnings each quarter. (3) In the fourth quarter of 2015, we recorded a net loss, primarily due to the loss on deconsolidation of Venezuela and coffee business transaction final sales price adjustment. In accordance with U.S. GAAP, due to the net loss in the quarter, diluted EPS was equal to basic EPS. |
Pre-Tax (Charges) / Gains in Earnings From Continuing Operations | During 2016 and 2015, we recorded the following pre-tax 2016 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (154 ) $ (166 ) $ (190 ) $ (342 ) Loss related to interest rate swaps (97 ) – – – Divestiture-related costs – (84 ) – (2 ) Loss on early extinguishment of – – – (427 ) $ (251 ) $ (250 ) $ (190 ) $ (771 ) 2015 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (160 ) $ (231 ) $ (155 ) $ (355 ) Remeasurement of net monetary assets (11 ) – – – Loss on deconsolidation of Venezuela – – – (778 ) Gains / (loss) on JDE coffee business – 13 7,122 (313 ) JDE coffee business transactions currency- 551 (144 ) 29 – Loss related to interest rate swaps (34 ) Loss on early extinguishment of (713 ) – – (40 ) $ (367 ) $ (362 ) $ 6,996 $ (1,486 ) |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | Jun. 24, 2016 | Dec. 16, 2015 | Oct. 01, 2015 | Dec. 31, 2016USD ($)Country | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)Country | Dec. 31, 2015USD ($) | Dec. 31, 2016USD ($)CountrySegment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Number of countries in which products are sold | Country | 165 | 165 | 165 | ||||||||||||||||||||||
After-tax equity method investment net earnings | $ 83 | [1] | $ 31 | [1] | $ 102 | [1] | $ 85 | [1] | $ 72 | [2] | $ (72) | [2] | $ 301 | ||||||||||||
Number of reportable segments | Segment | 4 | ||||||||||||||||||||||||
Net revenues | 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | 7,364 | $ 6,849 | $ 7,661 | $ 7,762 | $ 25,923 | [3] | $ 29,636 | [3] | $ 34,244 | [3] | |||||||||||
Loss on deconsolidation | (778) | (778) | |||||||||||||||||||||||
Uncommitted revolving non-recourse accounts receivable factoring arrangements, maximum combined capacity | 802 | $ 802 | 802 | ||||||||||||||||||||||
Total incremental cost of factoring receivables | 9 | 7 | 7 | ||||||||||||||||||||||
Outstanding principal amount of receivables sold under factoring arrangement | $ 745 | $ 666 | $ 745 | $ 666 | 745 | 666 | 421 | ||||||||||||||||||
Change in accounting policy effect of change on net revenue | 76 | ||||||||||||||||||||||||
Change in accounting policy effect of change on operating results | 36 | ||||||||||||||||||||||||
Advertising expense | 1,396 | 1,542 | 1,552 | ||||||||||||||||||||||
Research and development expense | $ 376 | 409 | 455 | ||||||||||||||||||||||
Minimum likelihood of tax benefits being recognized upon settlement | 50.00% | 50.00% | 50.00% | ||||||||||||||||||||||
Minimum | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Number of countries in which entity operates | Country | 80 | 80 | 80 | ||||||||||||||||||||||
Maximum | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
After-tax equity method investment net earnings | $ 1 | ||||||||||||||||||||||||
Machinery and Equipment | Minimum | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Useful life, in years | 3 years | ||||||||||||||||||||||||
Machinery and Equipment | Maximum | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Useful life, in years | 20 years | ||||||||||||||||||||||||
Buildings and Building Improvements | Maximum | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Useful life, in years | 40 years | ||||||||||||||||||||||||
Software | Maximum | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Useful life, in years | 7 years | ||||||||||||||||||||||||
United Kingdom, Pounds | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Devalued percentage against US Dollar | 9.00% | 11.00% | |||||||||||||||||||||||
Argentina, Pesos | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Devalued percentage against US Dollar | 36.00% | 23.00% | |||||||||||||||||||||||
Venezuela | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Net revenues | 1,217 | $ 760 | |||||||||||||||||||||||
Loss on deconsolidation | $ (778) | ||||||||||||||||||||||||
United Kingdom | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Net revenues | $ 2,200 | ||||||||||||||||||||||||
Percentage of consolidated net revenues | 8.60% | ||||||||||||||||||||||||
Argentina | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Net revenues | $ 583 | ||||||||||||||||||||||||
Percentage of consolidated net revenues | 2.20% | ||||||||||||||||||||||||
North America And Europe | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Discount rate | 6.70% | ||||||||||||||||||||||||
Latin America and AMEA | |||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||||||||
Discount rate | 9.70% | ||||||||||||||||||||||||
[1] | Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax equity method investment earnings outside of operating income. As the after-tax equity method investment net earnings for the six months ended December 31, 2015 was less than $1 million, this line item is not shown on our consolidated statement of earnings. Pre-tax earnings from equity method investments recorded within segment operating income were $56 million for the six months ended July 2, 2015. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. Equity method investment net earnings were lower in the third quarter of 2016 due to the JDE unfavorable tax expense disclosed in Note 2, Divestitures and Acquisitions - JDE Tax Matter Resolution. | ||||||||||||||||||||||||
[2] | See the following table for significant items that affected the comparability of earnings each quarter. | ||||||||||||||||||||||||
[3] | In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. |
History of Remeasurement Losses
History of Remeasurement Losses, Deconsolidation Loss and Historical Operating Results and Financial Position of Venezuelan Subsidiaries (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Venezuela [Line Items] | |||||||||||||||
Net revenues | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 7,364 | $ 6,849 | $ 7,661 | $ 7,762 | $ 25,923 | $ 29,636 | [1] | $ 34,244 | [1] | ||
Remeasurement losses | $ (11) | ||||||||||||||
Loss on deconsolidation | (778) | (778) | |||||||||||||
Venezuela | |||||||||||||||
Venezuela [Line Items] | |||||||||||||||
Net revenues | 1,217 | 760 | |||||||||||||
Operating income (excluding remeasurement and deconsolidation losses) | 266 | 181 | |||||||||||||
Loss on deconsolidation | (778) | ||||||||||||||
Cash | [2] | 611 | 611 | 278 | |||||||||||
Net monetary assets | [2] | 405 | 405 | 236 | |||||||||||
Net assets | [2] | $ 658 | 658 | 500 | |||||||||||
Venezuela | Q1 2014: 6.30 to 10.70 bolivars to the U.S. dollar | |||||||||||||||
Venezuela [Line Items] | |||||||||||||||
Remeasurement losses | (142) | ||||||||||||||
Venezuela | SICAD I remeasurements through December 31, 2014 | |||||||||||||||
Venezuela [Line Items] | |||||||||||||||
Remeasurement losses | $ (25) | ||||||||||||||
Venezuela | Q1 2015: 11.50 to 12.00 bolivars to the U.S. dollar | |||||||||||||||
Venezuela [Line Items] | |||||||||||||||
Remeasurement losses | $ (11) | ||||||||||||||
[1] | In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||||||||||
[2] | Represents the financial position of our Venezuelan subsidiaries prior to the accounting change on December 31, 2015. |
History of Remeasurement Loss47
History of Remeasurement Losses, Deconsolidation Loss and Historical Operating Results and Financial Position of Venezuelan Subsidiaries (Parenthetical) (Detail) - VEF / $ | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 |
Venezuela [Line Items] | ||||
Foreign currency exchange rate translation | 12 | 11.50 | 10.70 | 6.30 |
Divestitures and Acquisitions -
Divestitures and Acquisitions - Additional Information (Detail) € in Millions, £ in Millions, AUD in Millions, $ in Millions, ₫ in Billions, ¥ in Billions | Jan. 18, 2017USD ($) | Jan. 18, 2017AUD | Dec. 31, 2016EUR (€) | Nov. 19, 2016USD ($) | Nov. 02, 2016GBP (£) | Oct. 31, 2016USD ($) | Oct. 31, 2016EUR (€) | Aug. 26, 2016USD ($) | Aug. 22, 2016USD ($) | Aug. 22, 2016VND (₫) | Jul. 05, 2016USD ($) | May 02, 2016USD ($) | May 02, 2016EUR (€) | Mar. 31, 2016USD ($) | Mar. 07, 2016USD ($) | Mar. 07, 2016EUR (€) | Mar. 03, 2016USD ($) | Jan. 31, 2016USD ($) | Dec. 18, 2015USD ($) | Dec. 18, 2015EUR (€) | Jul. 02, 2015USD ($) | Jul. 02, 2015EUR (€) | Apr. 23, 2015USD ($) | Apr. 23, 2015JPY (¥) | Feb. 16, 2015USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016EUR (€) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2016 | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016VND (₫) | Nov. 02, 2016USD ($) | Jul. 19, 2016EUR (€) | Jul. 15, 2015 | Jul. 02, 2015EUR (€) | ||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains on coffee business transactions and divestiture | $ 313 | $ (7,122) | $ (13) | $ 9 | $ 6,822 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from coffee business divestiture currency hedge settlements | 1,050 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | $ 5,585 | 5,387 | $ 5,387 | 5,585 | 5,387 | $ 5,585 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net gain (loss) on coffee business divestiture currency hedges | $ 97 | (29) | 144 | $ (551) | 436 | $ 628 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses related to readying businesses for planned transactions | 2 | $ 84 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment and exit costs | (342) | $ (190) | (166) | (154) | (355) | (155) | (231) | (160) | 852 | 901 | 692 | ||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, pro rata share of capital increase | 544 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on equity method investment exchange | 43 | 43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 83 | [1] | 31 | [1] | 102 | [1] | 85 | [1] | 72 | [2] | (72) | [2] | 301 | ||||||||||||||||||||||||||||||||||||||||||||
Equity method investment dividend received | 75 | 58 | 63 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Spin-Off costs | 35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash proceeds received | 138 | 60 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 137 | 83 | 57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain or loss on deconsolidation | (778) | (778) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 20,276 | 20,664 | 20,664 | 20,276 | 20,664 | 23,389 | 20,276 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 6,770 | 6,396 | 6,302 | 6,455 | 7,364 | 6,849 | 7,661 | $ 7,762 | 25,923 | [3] | 29,636 | [3] | 34,244 | [3] | |||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 2,569 | 8,897 | 3,242 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition costs | 1 | 8 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 436 | 628 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acorn Holdings BV | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired by other parties | 73.50% | 73.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Enjoy Life Foods | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets acquired | 58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other net assets (liabilities) acquired | $ 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment to acquire business gross | 81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Burton's Biscuit Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for acquisition | £ 199 | 246 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, definite-life intangible assets | 72 | 72 | 72 | $ 72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 156 | 385 | 156 | 156 | $ 156 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, property, plant and equipment | 14 | 14 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, inventory | 4 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Latin America Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 3 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 897 | 858 | 858 | 897 | 858 | 897 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | [3],[4] | 3,392 | 4,988 | 5,153 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 271 | 485 | 475 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Europe Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 22 | 22 | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 7,170 | 7,404 | 7,404 | 7,170 | 7,404 | 7,170 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | [5] | 9,755 | 11,672 | [6] | 15,788 | [6] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 1,267 | 1,350 | 1,952 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 8,885 | 8,865 | 8,865 | 8,885 | 8,865 | 8,885 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 6,960 | 6,974 | 6,936 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 1,078 | 1,105 | 922 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | 10 | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Aircraft | Corporate Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | 3 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | Europe And EEMEA segments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses related to readying businesses for planned transactions | 278 | 77 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | North America Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of property | 6 | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | Corporate Aircraft | Corporate Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of property | 1 | $ 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 98 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | Europe Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | North America Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coffee Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains on coffee business transactions and divestiture | 6,809 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement losses | (90) | (90) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coffee Business | Europe And EEMEA segments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment and exit costs | 123 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Japanese Coffee Joint Venture | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on equity method investment exchange | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, Deconsolidation and Divestiture | $ 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vietnam | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for acquisition | 569 | ₫ 12,404 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 20.00% | 20.00% | 80.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining interest in biscuit operation to be acquired | 20.00% | 20.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Escrow deposit | $ 70 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Escrowed retained amount | 20 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment for the non-compete and continued consulting agreements | $ 35 | ₫ 759 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 71 | 121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 5 | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vietnam | Selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition costs | 7 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business integration costs | 7 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 6,329 | 6,302 | 6,143 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | Trademarks | Selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | $ 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Final Valuation | Vietnam | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 385 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, property, plant and equipment | 49 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, inventory | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets acquired | 86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other net assets (liabilities) acquired | $ 31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | Australia And New Zealand | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other current assets | 25 | 25 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other non current assets | 125 | 125 | 125 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | FRANCE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | € 225 | 237 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash proceeds received | € 176 | 185 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other current assets | 125 | 125 | 125 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other non current assets | 174 | 174 | 174 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other current liabilities | 33 | 33 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other non current liabilities | $ 29 | 29 | $ 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | FRANCE | Cost of sales and selling, general and administrative expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses related to readying businesses for planned transactions | 86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | FRANCE | Trademarks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | $ 14 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | BELGIUM | Confectionery Business in Costa Rica and Chocolate Factory in Belgium | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses related to readying businesses for planned transactions | 14 | € 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain or loss on deconsolidation | 68 | 65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed asset impairment charge | 31 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, not discontinued operation, gain (loss) on disposal | 23 | € 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | COSTA RICA | Confectionery Business in Costa Rica and Chocolate Factory in Belgium | Latin America Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses related to readying businesses for planned transactions | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain or loss on deconsolidation | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, divested | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, Deconsolidation and Divestiture | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, divested | $ 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | FINLAND | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 16 | € 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash proceeds received | $ 2 | € 2 | 14 | € 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived Intangible assets, divested | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain after transaction costs, net of tax | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | FINLAND | Selling, general and administrative expenses | Europe Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain after transaction costs, net of tax | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Disposed of by Sale | FINLAND | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived Intangible assets, divested | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Disposed of by Sale | Russia | Manufacturing Plant | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed asset impairment charge | $ 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of expenses associated with property disposal | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | $ 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum | Discontinued Operations, Held-for-sale | FINLAND | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets, divested | $ 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event | Discontinued Operations, Held-for-sale | Australia And New Zealand | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash proceeds received | $ 346 | AUD 460 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidated net assets | 2,900 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement losses | 90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ 100 | (58) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE Coffee Business | Tax Authority, Spain | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unfavorable tax expense | € | € 114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE Coffee Business | Operating Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 296 | 572 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income loss from equity method investments before tax | 342 | 646 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 26.50% | 26.50% | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investments and shareholders loan receivable | 2,000 | 2,000 | 2,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholder loan receivable | $ 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 | $ 97 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest payments received on shareholder loan | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment dividend received | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | Acorn Holdings BV | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 13,900 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | Equity Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | Interest Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dongsuh Foods Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 75 | 38 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dongsuh Foods Corporation | Operating Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 40 | 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Equity Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | $ 29 | $ 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Equity Investments | Operating Income (Loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | $ 16 | $ 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax equity method investment earnings outside of operating income. As the after-tax equity method investment net earnings for the six months ended December 31, 2015 was less than $1 million, this line item is not shown on our consolidated statement of earnings. Pre-tax earnings from equity method investments recorded within segment operating income were $56 million for the six months ended July 2, 2015. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. Equity method investment net earnings were lower in the third quarter of 2016 due to the JDE unfavorable tax expense disclosed in Note 2, Divestitures and Acquisitions - JDE Tax Matter Resolution. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | See the following table for significant items that affected the comparability of earnings each quarter. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Net revenues of $1,217 million for 2015 and $760 million for 2014 from our Venezuelan subsidiaries are included in our 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 consolidated financial statements. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe and AMEA segments. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Summary Financial Information f
Summary Financial Information for Equity Method Investments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | Sep. 30, 2015 | [2] | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Summary Balance Sheet for Equity Method Investments | |||||||||||||||||
Equity method investments | $ 5,585 | $ 5,387 | $ 5,387 | $ 5,585 | $ 5,387 | ||||||||||||
Summary Statement of Operations for Equity Method Investments | |||||||||||||||||
Equity method investment net (losses) / earnings | 83 | [1] | $ 31 | $ 102 | $ 85 | 72 | [2] | $ (72) | 301 | ||||||||
Maximum | |||||||||||||||||
Summary Statement of Operations for Equity Method Investments | |||||||||||||||||
Equity method investment net (losses) / earnings | 1 | ||||||||||||||||
Jacobs Douwe Egberts and Other Equity Method Investment | |||||||||||||||||
Summary Balance Sheet for Equity Method Investments | |||||||||||||||||
Current assets | 4,458 | 3,943 | 3,943 | 4,458 | 3,943 | ||||||||||||
Noncurrent assets | 35,089 | 20,936 | 20,936 | 35,089 | 20,936 | ||||||||||||
Total assets | 39,547 | 24,879 | 24,879 | 39,547 | 24,879 | ||||||||||||
Current liabilities | 4,148 | 2,779 | 2,779 | 4,148 | 2,779 | ||||||||||||
Noncurrent liabilities | 16,472 | 9,880 | 9,880 | 16,472 | 9,880 | ||||||||||||
Total liabilities | 20,620 | 12,659 | 12,659 | 20,620 | 12,659 | ||||||||||||
Keurig shareholder loan | 440 | 440 | |||||||||||||||
Equity method investments | 5,585 | 5,387 | 5,387 | 5,585 | 5,387 | ||||||||||||
Summary Statement of Operations for Equity Method Investments | |||||||||||||||||
Net revenues | 10,923 | 4,993 | $ 2,721 | ||||||||||||||
Gross profit | 4,219 | 1,551 | 921 | ||||||||||||||
Income from continuing operations | 839 | 96 | 226 | ||||||||||||||
Net income | 839 | 97 | 226 | ||||||||||||||
Equity method investment net (losses) / earnings | [3] | 301 | 56 | 113 | |||||||||||||
Jacobs Douwe Egberts and Other Equity Method Investment | Interest Income | |||||||||||||||||
Summary Statement of Operations for Equity Method Investments | |||||||||||||||||
Equity method investment net (losses) / earnings | 20 | ||||||||||||||||
Jacobs Douwe Egberts and Other Equity Method Investment | Investee | |||||||||||||||||
Summary Balance Sheet for Equity Method Investments | |||||||||||||||||
Total net equity of investees | 18,927 | 12,220 | 12,220 | 18,927 | 12,220 | ||||||||||||
Equity method investments | [4] | $ 5,145 | $ 5,387 | $ 5,387 | 5,145 | 5,387 | |||||||||||
Summary Statement of Operations for Equity Method Investments | |||||||||||||||||
Net income | 838 | 97 | 226 | ||||||||||||||
Equity method investment net (losses) / earnings | $ 281 | $ 56 | $ 113 | ||||||||||||||
Jacobs Douwe Egberts and Other Equity Method Investment | Minimum | |||||||||||||||||
Summary Statement of Operations for Equity Method Investments | |||||||||||||||||
Mondelz International ownership interests | 24.00% | 40.00% | 40.00% | 24.00% | 40.00% | 40.00% | |||||||||||
Jacobs Douwe Egberts and Other Equity Method Investment | Maximum | |||||||||||||||||
Summary Statement of Operations for Equity Method Investments | |||||||||||||||||
Mondelz International ownership interests | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | |||||||||||
[1] | Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax equity method investment earnings outside of operating income. As the after-tax equity method investment net earnings for the six months ended December 31, 2015 was less than $1 million, this line item is not shown on our consolidated statement of earnings. Pre-tax earnings from equity method investments recorded within segment operating income were $56 million for the six months ended July 2, 2015. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. Equity method investment net earnings were lower in the third quarter of 2016 due to the JDE unfavorable tax expense disclosed in Note 2, Divestitures and Acquisitions - JDE Tax Matter Resolution. | ||||||||||||||||
[2] | See the following table for significant items that affected the comparability of earnings each quarter. | ||||||||||||||||
[3] | Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax equity method investment earnings outside of operating income. For the six months ended December 31, 2015, after-tax equity method investment net earnings were less than $1 million on a combined basis. Earnings from equity method investments recorded within segment operating income were $56 million for the six months ended July 2, 2015 and $113 million for the year ended December 31, 2014. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. | ||||||||||||||||
[4] | Includes approximately $325 million of basis differences between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees' equity. |
Summary Financial Information50
Summary Financial Information for Equity Method Investments (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | [2] | Sep. 30, 2015 | [2] | Dec. 31, 2015 | Jul. 02, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
After-tax equity method investment net earnings | $ 83 | $ 31 | $ 102 | $ 85 | $ 72 | $ (72) | $ 301 | ||||||||||
Operating income | 2,569 | $ 8,897 | $ 3,242 | ||||||||||||||
Maximum | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
After-tax equity method investment net earnings | $ 1 | ||||||||||||||||
Equity Method Investments | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Operating income | $ 56 | $ 113 | |||||||||||||||
US GAAP basis difference from equity method investments | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Basis Differences | $ 325 | $ 335 | |||||||||||||||
[1] | Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax equity method investment earnings outside of operating income. As the after-tax equity method investment net earnings for the six months ended December 31, 2015 was less than $1 million, this line item is not shown on our consolidated statement of earnings. Pre-tax earnings from equity method investments recorded within segment operating income were $56 million for the six months ended July 2, 2015. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. Equity method investment net earnings were lower in the third quarter of 2016 due to the JDE unfavorable tax expense disclosed in Note 2, Divestitures and Acquisitions - JDE Tax Matter Resolution. | ||||||||||||||||
[2] | See the following table for significant items that affected the comparability of earnings each quarter. |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Raw materials | $ 722 | $ 782 |
Finished product | 1,865 | 1,930 |
Inventory, Gross, Total | 2,587 | 2,712 |
Inventory reserves | (118) | (103) |
Inventories, net | $ 2,469 | $ 2,609 |
Property, Plant and Equipment52
Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 14,687 | $ 14,554 |
Accumulated depreciation | (6,458) | (6,192) |
Property, plant and equipment, net | 8,229 | 8,362 |
Land and Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 471 | 495 |
Buildings and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,801 | 2,753 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,302 | 10,044 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,113 | $ 1,262 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Capital expenditures | $ 1,224 | $ 1,514 | $ 1,642 |
Accrued capital expenditures unpaid | 343 | ||
Payments for capital expenditures accrued in the prior year | 322 | ||
Asset impairments and accelerated depreciation | 446 | 345 | 240 |
2014-2018 Restructuring Program | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairments and accelerated depreciation | $ 301 | $ 264 | $ 173 |
Summary of Asset Impairment and
Summary of Asset Impairment and Exit Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Asset impairments and accelerated depreciation | $ 446 | $ 345 | $ 240 |
2014-2018 Restructuring Program | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Asset impairments and accelerated depreciation | 301 | 264 | 173 |
2014-2018 Restructuring Program | Latin America Segment | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Asset impairments and accelerated depreciation | 22 | 46 | 14 |
2014-2018 Restructuring Program | Asia Middle East Africa Segment | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Asset impairments and accelerated depreciation | 44 | 88 | 34 |
2014-2018 Restructuring Program | Europe Segment | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Asset impairments and accelerated depreciation | 122 | 65 | 42 |
2014-2018 Restructuring Program | North America Segment | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Asset impairments and accelerated depreciation | 111 | $ 65 | $ 83 |
2014-2018 Restructuring Program | Corporate Segment | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Asset impairments and accelerated depreciation | $ 2 |
Goodwill by Segment (Detail)
Goodwill by Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Goodwill | $ 20,276 | $ 20,664 | $ 23,389 |
Latin America Segment | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 897 | 858 | |
Asia Middle East Africa Segment | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 3,324 | 3,537 | |
Europe Segment | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 7,170 | 7,404 | |
North America Segment | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 8,885 | $ 8,865 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Intangible Assets [Line Items] | |||
Non-amortizable intangible assets | $ 17,004 | $ 17,527 | |
Amortizable intangible assets | 2,315 | 2,320 | |
Total intangible assets, gross | 19,319 | 19,847 | $ 21,335 |
Accumulated amortization | (1,218) | (1,079) | |
Intangible assets, net | $ 18,101 | $ 18,768 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets - Additional Information (Detail) $ in Millions | Jul. 02, 2015USD ($) | Apr. 23, 2015USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)Brand | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 01, 2016USD ($) | Nov. 02, 2016USD ($) | May 02, 2016USD ($) | Feb. 16, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Amortization expense for intangible assets | $ 176 | $ 181 | $ 206 | |||||||
Estimated amortization expense in year 1 | 171 | |||||||||
Estimated amortization expense in year 2 | 171 | |||||||||
Estimated amortization expense in year 3 | 171 | |||||||||
Estimated amortization expense in year 4 | 171 | |||||||||
Estimated amortization expense in year 5 | 171 | |||||||||
Goodwill, Deconsolidation and Divestiture | 4 | 1,729 | ||||||||
Intangible Assets,Deconsolidation and Divestiture | 8 | |||||||||
Business acquisition, goodwill | 20,276 | 20,664 | 23,389 | |||||||
Business acquisition, goodwill adjustments | 80 | 481 | ||||||||
Intangible asset impairment | 137 | 83 | 57 | |||||||
Impairment of goodwill | $ 0 | 0 | 0 | |||||||
Number of brands | Brand | 5 | |||||||||
Intangible asset, aggregate book value | $ 17,004 | 17,527 | ||||||||
Coffee Business | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Goodwill, Deconsolidation and Divestiture | $ 1,664 | |||||||||
Japanese Coffee Joint Venture | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Goodwill, divested | $ 65 | |||||||||
Sale of stock, percentage of ownership before transaction | 50.00% | |||||||||
Europe Segment | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Business acquisition, goodwill | 7,170 | 7,404 | ||||||||
Intangible asset impairment | 22 | 22 | 9 | |||||||
North America Segment | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Business acquisition, goodwill | 8,885 | 8,865 | ||||||||
Intangible asset impairment | 32 | |||||||||
Asia Middle East Africa Segment | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Business acquisition, goodwill | 3,324 | 3,537 | ||||||||
Intangible asset impairment | 41 | 44 | $ 48 | |||||||
Latin America Segment | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Business acquisition, goodwill | 897 | 858 | ||||||||
Intangible asset impairment | 3 | 5 | ||||||||
Enjoy Life Foods | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Business acquisition, goodwill | $ 20 | |||||||||
Intangible assets acquired | $ 58 | |||||||||
Burton's Biscuit Company | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Business acquisition, goodwill | $ 385 | 156 | $ 156 | |||||||
Business acquisition, definite-life intangible assets | 72 | $ 72 | ||||||||
Business acquisition, goodwill adjustments | $ 76 | |||||||||
Vietnam | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Finite-lived intangible assets acquired | 25 | |||||||||
Indefinite-lived intangible assets acquired | 61 | |||||||||
Trademarks | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Intangible asset impairment | 98 | |||||||||
Intangible asset, aggregate book value | 630 | |||||||||
Trademarks | Europe Segment | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Intangible asset impairment | 19 | |||||||||
Trademarks | Europe Segment | Planned Sale of Confectionery Business in France | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Intangible asset impairment | 20 | |||||||||
Trademarks | North America Segment | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Intangible asset impairment | 19 | |||||||||
Trademarks | Asia Middle East Africa Segment | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Intangible asset impairment | $ 19 | |||||||||
Trademarks | Venezuela | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Intangible asset impairment | $ 12 | |||||||||
Discontinued Operations, Disposed of by Sale | COSTA RICA | Sale Of Confectionery Business In Costa Rica | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Goodwill, divested | $ 4 | |||||||||
Discontinued Operations, Disposed of by Sale | FINLAND | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Indefinite-lived Intangible assets, divested | $ 8 | |||||||||
Weighted Average | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Life of our amortizable intangible assets (in years) | 13 years 6 months | |||||||||
Maximum | Coffee Business | ||||||||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||||||||
Intangible Assets,Deconsolidation and Divestiture | $ 1 |
Changes in Goodwill and Intangi
Changes in Goodwill and Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill beginning balance | $ 20,664 | $ 23,389 | |
Goodwill, Currency | (464) | (1,477) | |
Goodwill, written off related to sale of business unit | (4) | (1,729) | |
Goodwill, Acquisition | 80 | 481 | |
Goodwill, Asset impairments | 0 | 0 | $ 0 |
Goodwill, Other | 0 | 0 | |
Goodwill ending balance | 20,276 | 20,664 | 23,389 |
Intangible Assets, at Cost beginning balance | 19,847 | 21,335 | |
Intangible Assets, Currency | (540) | (1,462) | |
Intangible Assets, Written off related to divested business unit | (8) | ||
Intangible Assets, Acquisition | 158 | 58 | |
Intangible Assets, Asset impairments | (137) | (83) | (57) |
Intangible Assets, Other | (1) | (1) | |
Intangible Assets, at Cost ending balance | $ 19,319 | $ 19,847 | $ 21,335 |
Restructuring Programs - Additi
Restructuring Programs - Additional Information (Detail) - USD ($) | Aug. 31, 2016 | May 06, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2014 | ||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Capital expenditures | $ 1,224,000,000 | $ 1,514,000,000 | $ 1,642,000,000 | ||||||||
Severance and Related Costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 73,000,000 | ||||||||||
2012-2014 Restructuring Program | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Approved restructuring program cost | 925,000,000 | $ 925,000,000 | |||||||||
Restructuring and related cost, cost incurred | 459,000,000 | 899,000,000 | [1] | ||||||||
Restructuring charges | (4,000,000) | 360,000,000 | 729,000,000 | [1] | |||||||
Cash spent | 21,000,000 | 66,000,000 | |||||||||
Non-cash asset write-downs | 6,000,000 | 4,000,000 | |||||||||
Restructuring reserve | 19,000,000 | 47,000,000 | 128,000,000 | $ 19,000,000 | 128,000,000 | ||||||
Implementation Costs | 99,000,000 | 170,000,000 | [1] | ||||||||
Restructuring and related activities, authorized amount | $ 1,500,000,000 | ||||||||||
Restructuring and related cost, cost incurred | 899,000,000 | 899,000,000 | |||||||||
Reversal to restructuring charges | 4,000,000 | ||||||||||
2012-2014 Restructuring Program | Selling, general and administrative expenses | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Implementation Costs | 99,000,000 | ||||||||||
2012-2014 Restructuring Program | Other current liabilities | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring reserve | 18,000,000 | 18,000,000 | |||||||||
2012-2014 Restructuring Program | Maximum | Other liabilities | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring reserve | 1,000,000 | 1,000,000 | |||||||||
2012-2014 Restructuring Program | Severance and Related Costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | (4,000,000) | ||||||||||
Cash spent | 21,000,000 | 66,000,000 | |||||||||
Non-cash asset write-downs | 6,000,000 | 4,000,000 | |||||||||
Restructuring reserve | 19,000,000 | 47,000,000 | 128,000,000 | 19,000,000 | 128,000,000 | ||||||
2014-2018 Restructuring Program | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Approved restructuring program cost | $ 5,700,000,000 | ||||||||||
Reallocation of previously approved capital expenditures to be spent on restructuring program cash costs | 600,000,000 | ||||||||||
Restructuring and related cost, cost incurred | 1,086,000,000 | 1,002,000,000 | 381,000,000 | 2,469,000,000 | [2] | ||||||
Restructuring charges | 714,000,000 | 711,000,000 | 274,000,000 | 1,699,000,000 | [2] | ||||||
Cash spent | 315,000,000 | 243,000,000 | |||||||||
Non-cash asset write-downs | 321,000,000 | 273,000,000 | |||||||||
Restructuring reserve | 464,000,000 | 395,000,000 | 224,000,000 | 464,000,000 | 224,000,000 | ||||||
Implementation Costs | 372,000,000 | 291,000,000 | 107,000,000 | 770,000,000 | [2] | ||||||
2014-2018 Restructuring Program | Selling, general and administrative expenses | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Implementation Costs | 372,000,000 | 291,000,000 | 107,000,000 | ||||||||
2014-2018 Restructuring Program | Other current liabilities | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring reserve | 379,000,000 | 379,000,000 | |||||||||
2014-2018 Restructuring Program | Other liabilities | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring reserve | 85,000,000 | 85,000,000 | |||||||||
2014-2018 Restructuring Program | Maximum | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Capital expenditures | 1,600,000,000 | $ 2,200,000,000 | |||||||||
2014-2018 Restructuring Program | Restructuring Program Costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Approved restructuring program cost | 4,100,000,000 | 3,500,000,000 | |||||||||
2014-2018 Restructuring Program | Cash Expense | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Approved restructuring program cost | 3,100,000,000 | 2,500,000,000 | |||||||||
2014-2018 Restructuring Program | Non Cash Expense | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Approved restructuring program cost | 1,000,000,000 | $ 1,000,000,000 | |||||||||
2014-2018 Restructuring Program | Severance and Related Costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | 402,000,000 | 442,000,000 | |||||||||
Cash spent | 315,000,000 | 243,000,000 | |||||||||
Non-cash asset write-downs | 9,000,000 | 4,000,000 | |||||||||
Restructuring reserve | $ 464,000,000 | $ 395,000,000 | 224,000,000 | $ 464,000,000 | $ 224,000,000 | ||||||
2014-2018 Restructuring Program | Cash Outlays | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Approved restructuring program cost | $ 4,700,000,000 | ||||||||||
2014 Restructuring Charges | Severance and Related Costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $ 52,000,000 | ||||||||||
2013 Restructuring Charges | Severance and Related Costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $ 21,000,000 | ||||||||||
[1] | Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. | ||||||||||
[2] | Includes all charges recorded since program inception on May 6, 2014 through December 31, 2016. |
Schedule of Restructuring Costs
Schedule of Restructuring Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | 32 Months Ended | 36 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2014 | |||
2012-2014 Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Balance at beginning of period | $ 47 | $ 128 | |||||
Charges | (4) | $ 360 | $ 729 | [1] | |||
Cash spent | (21) | (66) | |||||
Non-cash settlements / adjustments | (6) | (4) | |||||
Currency | (1) | (7) | |||||
Balance at end of period | 19 | 47 | 128 | $ 19 | 128 | ||
2014-2018 Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Balance at beginning of period | 395 | 224 | |||||
Charges | 714 | 711 | 274 | 1,699 | [2] | ||
Cash spent | (315) | (243) | |||||
Non-cash settlements / adjustments | (321) | (273) | |||||
Currency | (9) | (24) | |||||
Balance at end of period | 464 | 395 | 224 | 464 | 224 | ||
Severance and Related Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Charges | 73 | ||||||
Severance and Related Costs | 2012-2014 Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Balance at beginning of period | 47 | 128 | |||||
Charges | (4) | ||||||
Cash spent | (21) | (66) | |||||
Non-cash settlements / adjustments | (6) | (4) | |||||
Currency | (1) | (7) | |||||
Balance at end of period | 19 | 47 | 128 | 19 | 128 | ||
Severance and Related Costs | 2014-2018 Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Balance at beginning of period | 395 | 224 | |||||
Charges | 402 | 442 | |||||
Cash spent | (315) | (243) | |||||
Non-cash settlements / adjustments | (9) | (4) | |||||
Currency | (9) | (24) | |||||
Balance at end of period | 464 | 395 | $ 224 | $ 464 | $ 224 | ||
Asset Write-Downs | 2014-2018 Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Charges | 312 | 269 | |||||
Non-cash settlements / adjustments | $ (312) | $ (269) | |||||
[1] | Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. | ||||||
[2] | Includes all charges recorded since program inception on May 6, 2014 through December 31, 2016. |
Restructuring and Implementatio
Restructuring and Implementation Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | 32 Months Ended | 36 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | [2] | Dec. 31, 2014 | |||
2012-2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | $ (4) | $ 360 | $ 729 | [1] | ||||
Implementation Costs | 99 | 170 | [1] | |||||
Total | 459 | 899 | [1] | |||||
2014-2018 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | $ 714 | 711 | 274 | $ 1,699 | ||||
Implementation Costs | 372 | 291 | 107 | 770 | ||||
Total | 1,086 | 1,002 | 381 | 2,469 | ||||
Operating Segments | 2012-2014 Restructuring Program | Latin America Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 8 | 36 | [1] | |||||
Implementation Costs | 3 | 3 | [1] | |||||
Total | 11 | 39 | [1] | |||||
Operating Segments | 2012-2014 Restructuring Program | Asia Middle East Africa Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 77 | 83 | [1] | |||||
Implementation Costs | 6 | 8 | [1] | |||||
Total | 83 | 91 | [1] | |||||
Operating Segments | 2012-2014 Restructuring Program | Europe Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 162 | 271 | [1] | |||||
Implementation Costs | 54 | 90 | [1] | |||||
Total | 216 | 361 | [1] | |||||
Operating Segments | 2012-2014 Restructuring Program | North America Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 113 | 337 | [1] | |||||
Implementation Costs | 32 | 65 | [1] | |||||
Total | 145 | 402 | [1] | |||||
Operating Segments | 2014-2018 Restructuring Program | Latin America Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 111 | 145 | 81 | 337 | ||||
Implementation Costs | 54 | 39 | 16 | 109 | ||||
Total | 165 | 184 | 97 | 446 | ||||
Operating Segments | 2014-2018 Restructuring Program | Asia Middle East Africa Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 96 | 181 | 30 | 307 | ||||
Implementation Costs | 48 | 26 | 12 | 86 | ||||
Total | 144 | 207 | 42 | 393 | ||||
Operating Segments | 2014-2018 Restructuring Program | Europe Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | 310 | 243 | 96 | 649 | ||||
Implementation Costs | 88 | 78 | 38 | 204 | ||||
Total | 398 | 321 | 134 | 853 | ||||
Operating Segments | 2014-2018 Restructuring Program | North America Segment | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | [3] | 183 | 114 | 57 | 354 | |||
Implementation Costs | [3] | 121 | 69 | 5 | 195 | |||
Total | [3] | 304 | 183 | 62 | 549 | |||
Corporate | 2012-2014 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | [1],[4] | 2 | ||||||
Implementation Costs | [4] | 4 | 4 | [1] | ||||
Total | [4] | 4 | $ 6 | [1] | ||||
Corporate | 2014-2018 Restructuring Program | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring Costs | [4] | 14 | 28 | 10 | 52 | |||
Implementation Costs | [4] | 61 | 79 | 36 | 176 | |||
Total | [4] | $ 75 | $ 107 | $ 46 | $ 228 | |||
[1] | Includes all charges recorded since program inception in 2012 through conclusion on December 31, 2014. | |||||||
[2] | Includes all charges recorded since program inception on May 6, 2014 through December 31, 2016. | |||||||
[3] | During 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. | |||||||
[4] | Includes adjustment for rounding. |
Short-Term Borrowings and Relat
Short-Term Borrowings and Related Weighted-Average Interest Rates (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Line Items] | ||
Amount outstanding | $ 2,531 | $ 236 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Amount outstanding | $ 2,371 | |
Weighted-average rate | 1.00% | 0.00% |
Bank Loans | ||
Short-term Debt [Line Items] | ||
Amount outstanding | $ 160 | $ 236 |
Weighted-average rate | 10.60% | 9.50% |
Debt and Borrowing Arrangemen63
Debt and Borrowing Arrangements - Additional Information (Detail) € in Millions, £ in Millions, SFr in Millions | Dec. 16, 2016USD ($) | Oct. 28, 2016USD ($) | Oct. 19, 2016USD ($) | Oct. 14, 2016USD ($) | Feb. 09, 2016USD ($) | Jan. 26, 2016USD ($) | Jan. 21, 2016USD ($) | Nov. 30, 2015USD ($) | Nov. 25, 2015USD ($) | Oct. 06, 2015USD ($) | Jun. 11, 2015EUR (€) | Mar. 30, 2015USD ($) | Mar. 20, 2015USD ($) | Mar. 20, 2015EUR (€) | Mar. 06, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Oct. 31, 2016USD ($) | Jan. 31, 2016USD ($) | Jan. 26, 2016CHF (SFr) | Jan. 21, 2016EUR (€) | Nov. 30, 2015GBP (£) | Nov. 25, 2015GBP (£) | Oct. 06, 2015CHF (SFr) | Mar. 30, 2015CHF (SFr) | Mar. 06, 2015GBP (£) | Mar. 06, 2015EUR (€) |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Revolving credit facility debt covenant | $ 24,600,000,000 | ||||||||||||||||||||||||||||||
Deferred debt issuance costs | $ 40,000,000 | $ 46,000,000 | 40,000,000 | $ 46,000,000 | $ 44,000,000 | ||||||||||||||||||||||||||
Unamortized non-cash bond premiums, discounts, bank fees and mark-to-market adjustments | (69,000,000) | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | 6,186,000,000 | 4,975,000,000 | 3,017,000,000 | ||||||||||||||||||||||||||||
Loss on extinguishment of debt | (428,000,000) | (748,000,000) | $ (493,000,000) | ||||||||||||||||||||||||||||
Cash tender offer amount | $ 2,500,000,000 | ||||||||||||||||||||||||||||||
Carrying value of total debt | $ 17,199,000,000 | $ 15,398,000,000 | $ 17,199,000,000 | $ 15,398,000,000 | |||||||||||||||||||||||||||
Weighted-average interest rate | 2.20% | 3.70% | 2.20% | 3.70% | 4.30% | ||||||||||||||||||||||||||
Fair value of total debt | $ 17,882,000,000 | $ 15,908,000,000 | $ 17,882,000,000 | $ 15,908,000,000 | |||||||||||||||||||||||||||
International Subsidiaries | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | 1,800,000,000 | 1,900,000,000 | 1,800,000,000 | 1,900,000,000 | |||||||||||||||||||||||||||
Line of credit facility outstanding amount | 160,000,000 | 236,000,000 | 160,000,000 | 236,000,000 | |||||||||||||||||||||||||||
Revolving Credit Facility, October 11, 2018 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | 4,500,000,000 | $ 4,500,000,000 | |||||||||||||||||||||||||||||
Revolving credit facility expiration date | Oct. 11, 2021 | 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 December 31, 2016, we complied with this covenant | ||||||||||||||||||||||||||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings / (losses) | 36,300,000,000 | $ 36,300,000,000 | |||||||||||||||||||||||||||||
Line of credit facility outstanding amount | 0 | $ 0 | |||||||||||||||||||||||||||||
Bank Term Loan Facility | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Carrying value of total debt | $ 1,500,000,000 | ||||||||||||||||||||||||||||||
Three-year maturity | Bank Term Loan Facility | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Carrying value of total debt | $ 750,000,000 | ||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||
Debt instrument, maturity term | 3 years | ||||||||||||||||||||||||||||||
Five-year maturity | Bank Term Loan Facility | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Carrying value of total debt | $ 750,000,000 | ||||||||||||||||||||||||||||||
Debt instrument, maturity term | 5 years | ||||||||||||||||||||||||||||||
Maximum | Commercial Paper | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Commercial paper, Maturity period | 88 days | ||||||||||||||||||||||||||||||
Minimum | Commercial Paper | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Commercial paper, Maturity period | 3 days | ||||||||||||||||||||||||||||||
Swiss franc notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 399,000,000 | $ 410,000,000 | $ 694,000,000 | SFr 400 | SFr 400 | SFr 675 | |||||||||||||||||||||||||
Net proceeds from issuance of notes | 398,000,000 | $ 675,000,000 | $ 410,000,000 | ||||||||||||||||||||||||||||
Discounts and deferred financing costs | $ 1,000,000 | $ 2,000,000 | |||||||||||||||||||||||||||||
Swiss franc notes | Maximum | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Discounts and deferred financing costs | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||||||
Euro notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, principal amount | € | € 400 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | € | € 700 | ||||||||||||||||||||||||||||||
Euro-denominated notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, principal amount | € | € 2,000 | ||||||||||||||||||||||||||||||
Euro-denominated notes | 6.250% Senior Notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, principal amount | € | € 850 | ||||||||||||||||||||||||||||||
Debt instrument interest rate | 6.25% | ||||||||||||||||||||||||||||||
Tender Offer | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (708,000,000) | ||||||||||||||||||||||||||||||
Gain / (loss) recognized in income on fair value of hedges | 1,000,000 | ||||||||||||||||||||||||||||||
Tender Offer | Cash Flow Hedges | Interest rate contracts | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Interest expense | $ 5,000,000 | ||||||||||||||||||||||||||||||
Tender Offer | 6.500% Notes due in August 2017 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument interest rate | 6.50% | ||||||||||||||||||||||||||||||
Debt instrument repurchased, principal amount | $ 102,000,000 | ||||||||||||||||||||||||||||||
Debt instrument expiration | 2017-08 | 2017-08 | |||||||||||||||||||||||||||||
Tender Offer | 6.125% Notes due in February 2018 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument interest rate | 6.125% | ||||||||||||||||||||||||||||||
Debt instrument repurchased, principal amount | $ 115,000,000 | ||||||||||||||||||||||||||||||
Debt instrument expiration | 2018-02 | 2018-02 | |||||||||||||||||||||||||||||
Tender Offer | 6.125% Notes due in August 2018 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument interest rate | 6.125% | ||||||||||||||||||||||||||||||
Debt instrument repurchased, principal amount | $ 80,000,000 | ||||||||||||||||||||||||||||||
Debt instrument expiration | 2018-08 | 2018-08 | |||||||||||||||||||||||||||||
Tender Offer | 5.375% Notes due in February 2020 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument interest rate | 5.375% | ||||||||||||||||||||||||||||||
Debt instrument repurchased, principal amount | $ 691,000,000 | ||||||||||||||||||||||||||||||
Debt instrument expiration | 2020-02 | 2020-02 | |||||||||||||||||||||||||||||
Tender Offer | 6.500% Notes due in November 2031 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument interest rate | 6.50% | ||||||||||||||||||||||||||||||
Debt instrument repurchased, principal amount | $ 201,000,000 | ||||||||||||||||||||||||||||||
Debt instrument expiration | 2031-11 | 2031-11 | |||||||||||||||||||||||||||||
Tender Offer | 7.000% Notes due in August 2037 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument interest rate | 7.00% | ||||||||||||||||||||||||||||||
Debt instrument repurchased, principal amount | $ 26,000,000 | ||||||||||||||||||||||||||||||
Debt instrument expiration | 2037-08 | 2037-08 | |||||||||||||||||||||||||||||
Tender Offer | 6.875% Notes due in February 2038 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument interest rate | 6.875% | ||||||||||||||||||||||||||||||
Debt instrument repurchased, principal amount | $ 71,000,000 | ||||||||||||||||||||||||||||||
Debt instrument expiration | 2038-02 | 2038-02 | |||||||||||||||||||||||||||||
Tender Offer | 6.875% Notes due in January 2039 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument interest rate | 6.875% | ||||||||||||||||||||||||||||||
Debt instrument repurchased, principal amount | $ 69,000,000 | ||||||||||||||||||||||||||||||
Debt instrument expiration | 2039-01 | 2039-01 | |||||||||||||||||||||||||||||
Tender Offer | 6.500% Notes due in February 2040 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument interest rate | 6.50% | ||||||||||||||||||||||||||||||
Debt instrument repurchased, principal amount | $ 1,143,000,000 | ||||||||||||||||||||||||||||||
Debt instrument expiration | 2040-02 | 2040-02 | |||||||||||||||||||||||||||||
Euro-denominated and British pound sterling-denominated notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 2,800,000,000 | $ 2,800,000,000 | |||||||||||||||||||||||||||||
Net proceeds from issuance of notes | 2,890,000,000 | ||||||||||||||||||||||||||||||
Discounts and deferred financing costs | $ 29,000,000 | ||||||||||||||||||||||||||||||
4.125% U.S. dollar Notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 1,750,000,000 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 1,150,000,000 | ||||||||||||||||||||||||||||||
Debt instrument interest rate | 4.125% | ||||||||||||||||||||||||||||||
1.625% Notes Due 2023 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument maturity Year | Jan. 20, 2023 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 760,000,000 | € 700 | |||||||||||||||||||||||||||||
Debt instrument interest rate | 1.625% | 1.625% | |||||||||||||||||||||||||||||
Net proceeds from issuance of notes | $ 752,000,000 | ||||||||||||||||||||||||||||||
Discounts and deferred financing costs | $ 8,000,000 | ||||||||||||||||||||||||||||||
Seven Point Two Five Zero Percent Notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Cash tender offer amount | $ 372,000,000 | £ 247 | |||||||||||||||||||||||||||||
Debt instrument interest rate | 7.25% | 7.25% | |||||||||||||||||||||||||||||
Debt instrument maturity Year | 2018-07 | ||||||||||||||||||||||||||||||
Four Point Five Zero Zero Percent Notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument maturity Year | Dec. 3, 2035 | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (40,000,000) | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 609,000,000 | $ 609,000,000 | £ 400 | ||||||||||||||||||||||||||||
Debt instrument interest rate | 4.50% | 4.50% | |||||||||||||||||||||||||||||
Net proceeds from issuance of notes | $ 604,000,000 | ||||||||||||||||||||||||||||||
Discounts and deferred financing costs | $ 5,000,000 | ||||||||||||||||||||||||||||||
2.250% Fixed Rate Notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 850,000,000 | ||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 2.25% | ||||||||||||||||||||||||||||||
Debt instrument maturity Year | Feb. 1, 2019 | ||||||||||||||||||||||||||||||
Debt instrument redemption amount | $ 866,000,000 | ||||||||||||||||||||||||||||||
Accrued interest | 7,000,000 | ||||||||||||||||||||||||||||||
Loss on extinguishment of debt | $ (19,000,000) | ||||||||||||||||||||||||||||||
US Dollar, Euro and British Pound Sterling-denominated Notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Cash tender offer amount | $ 3,180,000,000 | ||||||||||||||||||||||||||||||
Notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Loss on extinguishment of debt | (409,000,000) | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 3,750,000,000 | ||||||||||||||||||||||||||||||
Notes | Mondelez International Holdings Netherlands BV | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Deferred debt issuance costs | $ 20,000,000 | $ 20,000,000 | |||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 3,750,000,000 | ||||||||||||||||||||||||||||||
Net proceeds from issuance of notes | $ 3,730,000,000 | ||||||||||||||||||||||||||||||
1.625% Notes Due on October 28, 2019 | Mondelez International Holdings Netherlands BV | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument maturity Year | Oct. 28, 2019 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 1,750,000,000 | ||||||||||||||||||||||||||||||
Debt instrument interest rate | 1.625% | ||||||||||||||||||||||||||||||
Floating Rate Notes Due on October 28, 2019 | Mondelez International Holdings Netherlands BV | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument maturity Year | Oct. 28, 2019 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 500,000,000 | ||||||||||||||||||||||||||||||
2.0% Notes Due on October 28, 2021 | Mondelez International Holdings Netherlands BV | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument maturity Year | Oct. 28, 2021 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 1,500,000,000 | ||||||||||||||||||||||||||||||
Debt instrument interest rate | 2.00% | ||||||||||||||||||||||||||||||
0.080% Fixed Rate Notes, mature on January 26, 2018 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.08% | 0.08% | |||||||||||||||||||||||||||||
Debt instrument maturity Year | Jan. 26, 2018 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 249,000,000 | SFr 250 | |||||||||||||||||||||||||||||
0.650% Fixed Rate Notes, mature on July 26, 2022 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.65% | 0.65% | |||||||||||||||||||||||||||||
Debt instrument maturity Year | Jul. 26, 2022 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 150,000,000 | SFr 150 | |||||||||||||||||||||||||||||
0.625% Fixed Rate Notes, mature on October 6, 2020 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.625% | 0.625% | |||||||||||||||||||||||||||||
Debt instrument maturity Year | Oct. 6, 2020 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 138,000,000 | SFr 135 | |||||||||||||||||||||||||||||
1.125% Fixed Rate Notes, mature on December 21, 2023 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 1.125% | 1.125% | |||||||||||||||||||||||||||||
Debt instrument maturity Year | Dec. 21, 2023 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 272,000,000 | SFr 265 | |||||||||||||||||||||||||||||
0.000% Fixed Rate Notes, mature on March 30, 2017 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.00% | 0.00% | |||||||||||||||||||||||||||||
Debt instrument maturity Year | Mar. 30, 2017 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 180,000,000 | SFr 175 | |||||||||||||||||||||||||||||
0.625% Fixed Rate Notes, mature on December 30, 2021 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.625% | 0.625% | |||||||||||||||||||||||||||||
Debt instrument maturity Year | Dec. 30, 2021 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 308,000,000 | SFr 300 | |||||||||||||||||||||||||||||
1.125% Fixed Rate Notes, mature on December 30, 2025 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 1.125% | 1.125% | |||||||||||||||||||||||||||||
Debt instrument maturity Year | Dec. 30, 2025 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 206,000,000 | SFr 200 | |||||||||||||||||||||||||||||
British pound sterling-denominated notes | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, principal amount | £ | £ 450 | ||||||||||||||||||||||||||||||
1.000% Fixed rate notes, due March 7, 2022 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 1.00% | 1.00% | 1.00% | ||||||||||||||||||||||||||||
Debt instrument maturity Year | Mar. 7, 2022 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 537,000,000 | € 500 | |||||||||||||||||||||||||||||
1.625% Fixed rate notes due , March 8, 2027 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 1.625% | 1.625% | 1.625% | ||||||||||||||||||||||||||||
Debt instrument maturity Year | Mar. 8, 2027 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 805,000,000 | € 750 | |||||||||||||||||||||||||||||
2.375% Fixed rate notes, due March 6, 2035 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 2.375% | 2.375% | 2.375% | ||||||||||||||||||||||||||||
Debt instrument maturity Year | Mar. 6, 2035 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 805,000,000 | € 750 | |||||||||||||||||||||||||||||
3.875% Fixed rate notes, due March 6, 2045 | |||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 3.875% | 3.875% | 3.875% | ||||||||||||||||||||||||||||
Debt instrument maturity Year | Mar. 6, 2045 | ||||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 667,000,000 | £ 450 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
U.S. Dollar notes | $ 8,812 | $ 8,371 |
Notes payable | 14,737 | |
Capital leases and other obligations | 9 | 12 |
Total | 14,668 | 15,162 |
Less current portion of long-term debt | (1,451) | (605) |
Long-term debt | 13,217 | 14,557 |
Euro notes | ||
Debt Instrument [Line Items] | ||
Notes payable | 3,980 | 4,305 |
Pound sterling notes | ||
Debt Instrument [Line Items] | ||
Notes payable | 418 | 1,399 |
Swiss franc notes | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 1,449 | $ 1,075 |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Notes (USD) | |
Debt Instrument [Line Items] | |
Maturity date | 2,040 |
Notes (USD) | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 0.881% |
Notes (USD) | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 7.00% |
Notes (USD) | Weighted Average | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 3.527% |
Euro notes | |
Debt Instrument [Line Items] | |
Maturity date | 2,035 |
Euro notes | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 1.00% |
Euro notes | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 2.375% |
Euro notes | Weighted Average | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 1.808% |
Pound sterling notes | |
Debt Instrument [Line Items] | |
Maturity date | 2,045 |
Pound sterling notes | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 3.875% |
Pound sterling notes | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 7.25% |
Pound sterling notes | Weighted Average | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 4.441% |
Swiss franc notes | |
Debt Instrument [Line Items] | |
Maturity date | 2,025 |
Swiss franc notes | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 0.00% |
Swiss franc notes | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 1.125% |
Swiss franc notes | Weighted Average | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 0.636% |
Aggregate Maturities of Debt an
Aggregate Maturities of Debt and Capital Leases Based on Stated Contractual Maturities (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
2,017 | $ 1,451 |
2,018 | 1,144 |
2,019 | 2,650 |
2,020 | 658 |
2,021 | 3,260 |
Thereafter | 5,574 |
Total | $ 14,737 |
Interest and Other Expense Net
Interest and Other Expense Net Within Results of Continuing Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||||||
Interest expense, debt | $ 515 | $ 609 | $ 778 | ||||||
Loss on debt extinguishment and related expenses | $ 427 | $ 40 | $ 713 | 427 | 753 | 495 | |||
JDE coffee business transactions currency-related net gains | $ (97) | $ 29 | $ (144) | 551 | (436) | (628) | |||
Loss related to interest rate swaps | $ (34) | 97 | 34 | ||||||
Other expense, net | 76 | 53 | 43 | ||||||
Interest and other expense, net | $ 1,115 | $ 1,013 | $ 688 |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 312 | $ 243 |
Liability Derivatives | 278 | 216 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 144 | 69 |
Liability Derivatives | 49 | 99 |
Derivatives Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 19 | 20 |
Liability Derivatives | 8 | 7 |
Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 17 | 37 |
Liability Derivatives | 22 | 35 |
Derivatives Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 108 | 12 |
Liability Derivatives | 19 | 57 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 168 | 174 |
Liability Derivatives | 229 | 117 |
Derivatives Not Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 29 | 61 |
Liability Derivatives | 43 | 33 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 112 | 70 |
Liability Derivatives | 167 | 56 |
Derivatives Not Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 27 | 43 |
Liability Derivatives | $ 19 | $ 28 |
Derivative Instruments Fair Val
Derivative Instruments Fair Value and Measurement Inputs (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ 34 | $ 27 |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (3) | 41 |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (60) | 16 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 97 | (30) |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (86) | 29 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (86) | 29 |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 120 | (2) |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (3) | 41 |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 26 | (13) |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ 97 | $ (30) |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Loss related to interest rate swaps | $ 34,000,000 | $ (97,000,000) | $ (34,000,000) | ||||
Unrealized gains recorded in earnings related to planned coffee business transactions | $ 97,000,000 | $ (29,000,000) | $ 144,000,000 | (551,000,000) | 436,000,000 | $ 628,000,000 | |
Interest rate contracts | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Hedged forecasted transactions | 6 years 10 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 | $ (2,000,000) | ||||||
Commodity contracts | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Hedged forecasted transactions | 12 months | ||||||
Commodity contracts | Cash Flow Hedges | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Expected transfers of unrealized gains (losses) to earnings, within next 12 months | $ (31,000,000) | ||||||
Currency exchange contracts | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Hedged forecasted transactions | 12 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 | $ 10,000,000 | ||||||
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 | 436,000,000 | $ 628,000,000 | |||||
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 | 2,000,000 | ||||||
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 | 48,000,000 | 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 | 133,000,000 | 22,000,000 | |||||
Significant Other Observable Inputs (Level 2) | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative assets after effects of netting | 162,000,000 | 64,000,000 | |||||
Derivative liabilities after effects of netting | $ 40,000,000 | $ 101,000,000 |
Notional Values of Derivative I
Notional Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Net investment hedge | Euro notes | ||
Derivative [Line Items] | ||
Notional Amount | $ 4,012 | $ 4,345 |
Net investment hedge | Pound sterling notes | ||
Derivative [Line Items] | ||
Notional Amount | 419 | 1,404 |
Net investment hedge | Swiss franc notes | ||
Derivative [Line Items] | ||
Notional Amount | 1,447 | 1,073 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | ||
Derivative [Line Items] | ||
Notional Amount | 3,343 | 4,148 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 1,452 | 1,094 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 837 | 732 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 6,365 | $ 3,033 |
Schedule of Cash Flow Hedges Ef
Schedule of Cash Flow Hedges Effect on Accumulated Other Comprehensive Earnings / (Losses), Net of Taxes (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated gain / (loss) at beginning of period | $ (45) | $ (2) | $ 117 |
Transfer of realized losses / (gains) in fair value to earnings | 53 | (40) | |
Unrealized gain / (loss) in fair value | (129) | (43) | (79) |
Accumulated gain / (loss) at end of period | $ (121) | $ (45) | $ (2) |
Effects of Cash Flow Hedges (De
Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) reclassified from AOCI into earnings | $ (53) | $ 40 | |
Gains / (losses) recognized in OCI | (129) | $ (43) | (79) |
Currency exchange contracts | Forecasted transactions | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) reclassified from AOCI into earnings | (1) | 83 | 26 |
Gains / (losses) recognized in OCI | 8 | 40 | 82 |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) reclassified from AOCI into earnings | (4) | (52) | 16 |
Gains / (losses) recognized in OCI | (34) | (35) | (2) |
Gains / (losses) on ineffectiveness recognized in earnings | 2 | (4) | (10) |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) reclassified from AOCI into earnings | (48) | (31) | (2) |
Gains / (losses) recognized in OCI | $ (103) | $ (48) | $ (159) |
Fair Value Hedges (Detail)
Fair Value Hedges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain / (loss) recognized in income on fair value of hedges | $ (6) | $ (1) | $ 13 |
Long-term Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain / (loss) recognized in income on fair value of hedges | $ 6 | $ 1 | $ (13) |
Economic Hedges (Detail)
Economic Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain / (Loss) Recognized in Earnings | $ 97 | $ (29) | $ 144 | $ (551) | $ 436 | $ 628 | |
Economic Hedging | Derivatives Not Designated as Hedging Instruments | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain / (Loss) Recognized in Earnings | $ (138) | 443 | 503 | ||||
Economic Hedging | Derivatives Not Designated as Hedging Instruments | Commodity contracts | Cost of Sales | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain / (Loss) Recognized in Earnings | (101) | (38) | (136) | ||||
Economic Hedging | Derivatives Not Designated as Hedging Instruments | 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 | 21 | 29 | 4 | ||||
Economic Hedging | Derivatives Not Designated as Hedging Instruments | Forecasted transactions | Currency exchange contracts | Interest and other expense, net | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain / (Loss) Recognized in Earnings | 11 | 435 | 610 | ||||
Economic Hedging | Derivatives Not Designated as Hedging Instruments | Forecasted transactions | Currency exchange contracts | Cost of Sales | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain / (Loss) Recognized in Earnings | (76) | 29 | 29 | ||||
Economic Hedging | Derivatives Not Designated as Hedging Instruments | Forecasted transactions | Currency exchange contracts | Selling, general and administrative expenses | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain / (Loss) Recognized in Earnings | $ 7 | $ (12) | $ (4) |
Hedges of Net Investments in In
Hedges of Net Investments in International Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Euro notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) recognized in OCI | $ 73 | $ 268 | $ 328 |
Pound sterling notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) recognized in OCI | 148 | 42 | $ 39 |
Swiss franc notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) recognized in OCI | $ 12 | $ 9 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension plans resulted in net pension liability | $ (1,882) | $ (1,882) | $ (2,145) | ||
Plan assets related to certain insurance contracts | 62 | 62 | 66 | ||
Expense for defined contribution plans | 44 | 45 | $ 46 | ||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | 4 | ||||
Multiemployer Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer pension plans | $ 25 | $ 31 | $ 32 | ||
Multiemployer Pension Plans | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Company's contribution of the total contribution of each plan | 5.00% | 5.00% | 5.00% | ||
Multiemployer Pension Plans | Bakery and Confectionery Union and Industry International Pension Fund | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer pension plans | $ 21 | $ 27 | $ 25 | ||
Percentage of surcharge on contribution | 10.00% | ||||
Multiemployer Pension Plans | Multiemployer Plan, Individually Insignificant Multiemployer Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer pension plans | $ 4 | 4 | 7 | ||
Multiemployer Plans, Postretirement Benefit | Multiemployer Medical Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer pension plans | 19 | 20 | 18 | ||
Non-recurring Contribution | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated future employer contributions | 250 | ||||
Coffee Business | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefit plan liabilities divested | 131 | ||||
Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Estimated from experience differences | 202 | ||||
Estimated prior service cost | 1 | ||||
Pension Plans | Change in Assumptions for Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension cost | (64) | ||||
Non-U.S. Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | $ 9,531 | 9,531 | 9,267 | ||
Net periodic pension cost | $ 81 | $ 175 | 207 | ||
Allocation of pension plan asset | 100.00% | 100.00% | 100.00% | ||
Employer contribution | $ 403 | ||||
Employer non-recurring contribution | 100 | ||||
Employees contribution | 16 | ||||
Estimated future employer contributions | $ 455 | ||||
Non-U.S. Pension Plans | Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target Allocation on securities | 34.00% | ||||
Allocation of pension plan asset | 29.00% | 29.00% | 32.00% | ||
Non-U.S. Pension Plans | Fixed Income Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target Allocation on securities | 64.00% | ||||
Allocation of pension plan asset | 57.00% | 57.00% | 50.00% | ||
Non-U.S. Pension Plans | Other Plan Asset | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target Allocation on securities | 2.00% | ||||
Non-U.S. Pension Plans | Largest Non U.S. Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Allocation of pension plan asset | 63.00% | 63.00% | |||
Non-U.S. Pension Plans | Largest Non U.S. Plan | Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target Allocation on securities | 24.00% | ||||
Non-U.S. Pension Plans | Largest Non U.S. Plan | Debt Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target Allocation on securities | 21.00% | ||||
Non-U.S. Pension Plans | Largest Non U.S. Plan | Private Markets | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target Allocation on securities | 6.00% | ||||
Non-U.S. Pension Plans | Largest Non U.S. Plan | Other Diversifying Assets | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target Allocation on securities | 9.00% | ||||
Non-U.S. Pension Plans | Largest Non U.S. Plan | Liability Matching Assets | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target Allocation on securities | 40.00% | ||||
Non-U.S. Pension Plans | Coffee Business | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Deferred tax assets transferred | $ 24 | ||||
U.S. Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | $ 1,540 | $ 1,540 | 1,463 | ||
Net periodic pension cost | $ 95 | $ 102 | 102 | ||
Allocation of pension plan asset | 100.00% | 100.00% | 100.00% | ||
Employer contribution | $ 378 | ||||
Employer voluntary contribution | 350 | ||||
Estimated future employer contributions | $ 13 | ||||
U.S. Pension Plans | Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Allocation of pension plan asset | 33.00% | 33.00% | 32.00% | ||
U.S. Pension Plans | Fixed Income Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Allocation of pension plan asset | 63.00% | 63.00% | 65.00% | ||
Postretirement Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension cost | $ 22 | $ 43 | 30 | ||
Estimated from experience differences | 15 | ||||
Estimated prior service cost | 40 | ||||
Current portion of our accrued postretirement benefit obligation | $ 12 | 12 | 11 | ||
Postretirement Benefit Plans | Change in Assumptions for Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension cost | (4) | ||||
U.S. And International Investment Grade Debt Securities | Fixed Income Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target Allocation on securities | 95.00% | ||||
Postemployment Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic pension cost | $ 12 | $ 12 | $ 15 | ||
Weighted-average discount rate | 6.20% | 6.20% | 6.20% | ||
Ultimate annual turnover rate | 0.30% | 0.30% | |||
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Projected Benefit Obligations,
Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at January 1 | $ 1,566 | $ 1,606 | |
Service cost | 57 | 64 | $ 57 |
Interest cost | 61 | 67 | 67 |
Benefits paid | (32) | (35) | |
Settlements paid | (91) | (88) | |
Actuarial (gains) / losses | 52 | (49) | |
Other | 1 | 1 | |
Accrued benefit obligation at December 31 | 1,614 | 1,566 | 1,606 |
Fair value of plan assets at January 1 | 1,247 | 1,216 | |
Actual return on plan assets | 118 | (71) | |
Contributions | 378 | 225 | |
Benefits paid | (32) | (35) | |
Settlements paid | (91) | (88) | |
Fair value of plan assets at December 31 | 1,620 | 1,247 | 1,216 |
Net pension assets (liability) at December 31 | 6 | (319) | |
Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at January 1 | 9,547 | 10,854 | |
Service cost | 147 | 188 | 184 |
Interest cost | 229 | 307 | 388 |
Benefits paid | (425) | (435) | |
Settlements paid | 1 | ||
Actuarial (gains) / losses | 1,284 | (262) | |
Deconsolidation of JDE coffee business | (5) | (261) | |
Divestiture | (5) | (261) | |
Currency | (979) | (766) | |
Other | 16 | (79) | |
Accrued benefit obligation at December 31 | 9,814 | 9,547 | 10,854 |
Fair value of plan assets at January 1 | 7,721 | 8,362 | |
Actual return on plan assets | 1,079 | 192 | |
Contributions | 419 | 318 | |
Benefits paid | (425) | (435) | |
Deconsolidation of JDE coffee business | (4) | (130) | |
Divestiture | (4) | (130) | |
Currency | (863) | (579) | |
Other | (1) | (7) | |
Fair value of plan assets at December 31 | 7,926 | 7,721 | $ 8,362 |
Net pension assets (liability) at December 31 | $ (1,888) | $ (1,826) |
Pension Plans Resulted in Net P
Pension Plans Resulted in Net Pension Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid pension assets | $ 159 | $ 69 |
Other accrued liabilities | (27) | (31) |
Accrued pension costs | (2,014) | (2,183) |
Total | (1,882) | (2,145) |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 96 | 1,566 |
Accumulated benefit obligation | 88 | 1,463 |
Fair value of plan assets | 2 | 1,247 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 8,386 | 8,139 |
Accumulated benefit obligation | 8,168 | 7,920 |
Fair value of plan assets | $ 6,451 | $ 6,252 |
Weighted-Average Assumptions to
Weighted-Average Assumptions to Determine Benefit Obligations (Detail) - Pension Plans | Dec. 31, 2016 | Dec. 31, 2015 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.19% | 4.50% |
Expected rate of return on plan assets | 6.25% | 6.75% |
Rate of compensation increase | 4.00% | 4.00% |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.31% | 3.11% |
Expected rate of return on plan assets | 5.14% | 5.87% |
Rate of compensation increase | 3.29% | 3.18% |
Components of Net Periodic Pens
Components of Net Periodic Pension Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 57 | $ 64 | $ 57 | |
Interest cost | 61 | 67 | 67 | |
Expected return on plan assets | (97) | (93) | (81) | |
Net loss from experience differences | 42 | 43 | 29 | |
Prior service cost | [1] | 2 | 2 | 2 |
Settlement losses and other expenses | [2] | 30 | 19 | 28 |
Net periodic benefit cost | 95 | 102 | 102 | |
Non-U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 147 | 188 | 184 | |
Interest cost | 229 | 307 | 388 | |
Expected return on plan assets | (418) | (478) | (485) | |
Net loss from experience differences | 120 | 141 | 106 | |
Prior service cost | [1] | (3) | 15 | |
Settlement losses and other expenses | [2] | 6 | 2 | 14 |
Net periodic benefit cost | $ 81 | $ 175 | $ 207 | |
[1] | For the year ended December 31, 2015, amortization of prior service cost includes $17 million of pension curtailment losses related to employees who transitioned to JDE upon the contribution of our global coffee business. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | |||
[2] | Settlement losses include $15 million for the year ended December 31, 2016 and $9 million for the year ended December 31, 2015 of pension settlement losses for employees who elected lump-sum payments in connection with our 2014-2018 Restructuring Program. Retired employees who elected lump-sum payments resulted in net settlement losses in 2016 of $15 million for our U.S. plans and $6 million for our non-U.S. plans and in 2015 of $10 million for our U.S. plans and $2 million for our non-U.S. plans. Employees who elected lump-sum payments in connection with our 2012-2014 Restructuring Program and cost saving initiatives and retired employees who elected lump-sum payments resulted in net settlement losses for our U.S. plans of $28 million in 2014. In addition, we incurred special termination benefit costs of $2 million in 2014 in the non-U.S. plans related to the 2012-2014 Restructuring Program. See Note 6, Restructuring Programs, for more information. We recorded an additional $90 million of pension settlement losses related to the coffee business transactions within the gain on the coffee business transactions. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. |
Components of Net Periodic Pe82
Components of Net Periodic Pension Cost (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension curtailment losses | $ 9 | ||
Severance and Related Costs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension curtailment losses | $ 17 | ||
Severance and Related Costs | 2014-2018 Restructuring Program | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement losses | 15 | 9 | |
Coffee Business | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement losses | 90 | 90 | |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement losses | 15 | 10 | $ 28 |
Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement losses | $ 6 | $ 2 | |
Special termination benefit | $ 2 |
Weighted-Average Assumptions 83
Weighted-Average Assumptions to Determine Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.50% | 4.20% | 5.10% |
Expected rate of return on plan assets | 6.75% | 7.25% | 7.75% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.11% | 2.99% | 4.03% |
Expected rate of return on plan assets | 5.87% | 5.96% | 6.17% |
Rate of compensation increase | 3.18% | 3.26% | 3.63% |
Fair Value of Pension Plan Asse
Fair Value of Pension Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 6,817 | $ 6,480 | |
Investments measured at net asset value | 2,667 | 2,422 | |
Total investments at fair value | 9,484 | 8,902 | |
Pension Plans | U.S. Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1 | 2 | |
Pension Plans | Non-U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 427 | 498 | |
Pension Plans | Pooled Funds - Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,524 | 1,468 | |
Pension Plans | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,952 | 1,968 | |
Pension Plans | Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,009 | 1,770 | |
Pension Plans | Pooled Funds - Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 756 | 575 | |
Pension Plans | Corporate Bonds And Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 852 | 1,686 | |
Pension Plans | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4,617 | 4,031 | |
Pension Plans | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 170 | 339 | |
Pension Plans | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2 | 2 | |
Pension Plans | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 73 | 138 | |
Pension Plans | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3 | 2 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,382 | 1,410 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | U.S. Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1 | 2 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Non-U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 427 | 412 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Pooled Funds - Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 286 | 275 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 714 | 689 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 37 | 35 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Pooled Funds - Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 103 | 118 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Corporate Bonds And Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 357 | 320 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 497 | 473 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 98 | 109 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 72 | 138 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1 | 1 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4,833 | 4,146 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Non-U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 86 | ||
Significant Other Observable Inputs (Level 2) | Pension Plans | Pooled Funds - Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,235 | 1,193 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,235 | 1,279 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,972 | 1,735 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Pooled Funds - Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 618 | 431 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Corporate Bonds And Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | (43) | 701 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,547 | 2,867 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 50 | ||
Significant Other Observable Inputs (Level 2) | Pension Plans | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1 | ||
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 602 | 924 | $ 2,207 |
Significant Unobservable Inputs (Level 3) | Non-U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3 | ||
Significant Unobservable Inputs (Level 3) | Pooled Funds - Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 35 | 26 | 97 |
Significant Unobservable Inputs (Level 3) | Corporate Bonds And Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 538 | 665 | 749 |
Significant Unobservable Inputs (Level 3) | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 22 | 230 | 292 |
Significant Unobservable Inputs (Level 3) | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4 | 3 | $ 240 |
Significant Unobservable Inputs (Level 3) | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 602 | 924 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Pooled Funds - Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3 | ||
Significant Unobservable Inputs (Level 3) | Pension Plans | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3 | ||
Significant Unobservable Inputs (Level 3) | Pension Plans | Pooled Funds - Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 35 | 26 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Corporate Bonds And Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 538 | 665 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 573 | 691 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 22 | 230 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2 | 2 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 2 | $ 1 |
Schedule of Changes in Level 3
Schedule of Changes in Level 3 Plan Assets (Detail) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | $ 924 | $ 2,207 |
Net Realized and Unrealized Gains/ (Losses) | 27 | 52 |
Net Purchases, Issuances and Settlements | (210) | (312) |
Net Transfers Into/(Out of) Level 3 | (6) | (919) |
Currency Impact | (133) | (104) |
Fair value of plan assets at December 31 | 602 | 924 |
Non-U.S. Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Transfers Into/(Out of) Level 3 | 3 | |
Fair value of plan assets at December 31 | 3 | |
Pooled Funds - Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 26 | 97 |
Net Realized and Unrealized Gains/ (Losses) | 6 | (1) |
Net Purchases, Issuances and Settlements | 15 | 25 |
Net Transfers Into/(Out of) Level 3 | (7) | (89) |
Currency Impact | (5) | (6) |
Fair value of plan assets at December 31 | 35 | 26 |
Corporate Bonds And Other Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 665 | 749 |
Net Realized and Unrealized Gains/ (Losses) | 21 | 4 |
Net Purchases, Issuances and Settlements | (41) | (50) |
Currency Impact | (107) | (38) |
Fair value of plan assets at December 31 | 538 | 665 |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 230 | 292 |
Net Realized and Unrealized Gains/ (Losses) | 19 | |
Net Purchases, Issuances and Settlements | (184) | 61 |
Net Transfers Into/(Out of) Level 3 | (3) | (125) |
Currency Impact | (21) | (17) |
Fair value of plan assets at December 31 | 22 | 230 |
Hedge Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 829 | |
Net Realized and Unrealized Gains/ (Losses) | 13 | |
Net Purchases, Issuances and Settlements | (312) | |
Net Transfers Into/(Out of) Level 3 | (499) | |
Currency Impact | (31) | |
Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 3 | 240 |
Net Realized and Unrealized Gains/ (Losses) | 17 | |
Net Purchases, Issuances and Settlements | (36) | |
Net Transfers Into/(Out of) Level 3 | 1 | (206) |
Currency Impact | (12) | |
Fair value of plan assets at December 31 | $ 4 | $ 3 |
Percentage of Fair Value of Pen
Percentage of Fair Value of Pension Plan Assets (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 100.00% | 100.00% |
U.S. Pension Plans | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 33.00% | 32.00% |
U.S. Pension Plans | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 63.00% | 65.00% |
U.S. Pension Plans | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 4.00% | 3.00% |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 100.00% | 100.00% |
Non-U.S. Pension Plans | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 29.00% | 32.00% |
Non-U.S. Pension Plans | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 57.00% | 50.00% |
Non-U.S. Pension Plans | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 5.00% | 6.00% |
Non-U.S. Pension Plans | Hedge Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 6.00% | 7.00% |
Non-U.S. Pension Plans | Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 2.00% | 3.00% |
Non-U.S. Pension Plans | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 1.00% | 1.00% |
Non-U.S. Pension Plans | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 1.00% |
Future Benefit payments for Pen
Future Benefit payments for Pension Plans (Detail) $ in Millions | Dec. 31, 2016USD ($) |
U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 89 |
2,018 | 97 |
2,019 | 103 |
2,020 | 107 |
2,021 | 108 |
2022-2026 | 568 |
Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 357 |
2,018 | 356 |
2,019 | 363 |
2,020 | 378 |
2,021 | 400 |
2022-2026 | $ 2,138 |
Schedule of Individually Signif
Schedule of Individually Significant Multiemployer Pension Plan (Detail) - Multiemployer Pension Plans - Bakery and Confectionery Union and Industry International Pension Fund | 12 Months Ended |
Dec. 31, 2016 | |
Multiemployer Plans [Line Items] | |
Pension Fund | Bakery and Confectionery Union and Industry International Pension Fund |
EIN / Pension Plan Number | 526,118,572 |
Pension Protection Act Zone Status | Red |
FIP / RP Status Pending / Implemented | Implemented |
Surcharge Imposed | Yes |
Expiration Date of Collective- Bargaining Agreements | Feb. 29, 2016 |
Benefit Obligation of Postretir
Benefit Obligation of Postretirement Benefit Plans (Detail) - Postretirement Benefit Plans - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accrued benefit obligation at January 1 | $ 511 | $ 538 | ||
Service cost | 12 | 15 | $ 13 | |
Interest cost | 20 | 22 | 22 | |
Benefits paid | (14) | (10) | ||
Plan amendments | [1] | (149) | ||
Currency | 3 | (22) | ||
Assumption changes | 34 | (30) | ||
Actuarial (gains) / losses | (23) | (2) | ||
Accrued benefit obligation at December 31 | $ 394 | $ 511 | $ 538 | |
[1] | Plan amendments included a change in eligibility requirements related to medical and life insurance benefits and a change in benefits for Medicare-eligible participants. |
Weighted-Average Assumptions 90
Weighted-Average Assumptions to Determine Postretirement Benefit Obligations (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. postretirement plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.14% | 4.60% |
Health care cost trend rate assumed for next year | 6.50% | 6.50% |
Ultimate trend rate | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,020 | 2,020 |
Foreign Postretirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.55% | 4.77% |
Health care cost trend rate assumed for next year | 5.50% | 5.37% |
Ultimate trend rate | 5.68% | 5.55% |
Year that the rate reaches the ultimate trend rate | 2,018 | 2,018 |
One-Percentage-Point Change in
One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on postretirement benefit obligation, Increase | $ 41 |
Effect on annual service and interest cost, Increase | 3 |
Effect on postretirement benefit obligation, Decrease | (33) |
Effect on annual service and interest cost, Decrease | $ (2) |
Components of Net Periodic Post
Components of Net Periodic Postretirement Health Care Costs (Detail) - Postretirement Benefit Plans - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 12 | $ 15 | $ 13 | |
Interest cost | 20 | 22 | 22 | |
Net loss from experience differences | 10 | 13 | 5 | |
Prior service credit | [1] | (20) | (7) | (10) |
Net periodic benefit cost | $ 22 | $ 43 | $ 30 | |
[1] | For the year ended December 31, 2016, amortization of prior service credit includes $9 million of curtailment gain related to a change in the eligibility requirement. |
Components of Net Periodic Po93
Components of Net Periodic Postretirement Health Care Costs (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension curtailment gain | $ 9 |
Weighted-Average Assumptions 94
Weighted-Average Assumptions to Determine Net Periodic Postretirement Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. postretirement plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.60% | 4.20% | 5.10% |
Health care cost trend rate | 6.50% | 6.50% | 7.00% |
Foreign Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.77% | 4.52% | 5.17% |
Health care cost trend rate | 5.50% | 5.18% | 5.11% |
Future Benefit Payments for Pos
Future Benefit Payments for Postretirement Health Care Plans (Detail) $ in Millions | Dec. 31, 2016USD ($) |
U.S. postretirement plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 8 |
2,018 | 10 |
2,019 | 11 |
2,020 | 12 |
2,021 | 13 |
2022-2026 | 80 |
Foreign Postretirement Benefit Plans, Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 5 |
2,018 | 5 |
2,019 | 5 |
2,020 | 6 |
2,021 | 6 |
2022-2026 | $ 34 |
Changes in Accumulated Postempl
Changes in Accumulated Postemployment Benefit Obligations (Detail) - Postemployment Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at January 1 | $ 95 | $ 94 | |
Service cost | 7 | 7 | $ 9 |
Interest cost | 6 | 5 | 6 |
Benefits paid | (9) | (7) | |
Assumption changes | (21) | (3) | |
Actuarial gains | (7) | (1) | |
Accrued benefit obligation at December 31 | $ 71 | $ 95 | $ 94 |
Components of Net Postemploymen
Components of Net Postemployment Costs (Detail) - Postemployment Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 7 | $ 7 | $ 9 |
Interest cost | 6 | 5 | 6 |
Amortization of net gains | (1) | ||
Net periodic benefit cost | $ 12 | $ 12 | $ 15 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unamortized compensation expense related to our stock options | $ 52 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 57 | $ 50 | $ 47 |
Deferred tax benefit related to compensation expense | $ 15 | 13 | 12 |
Unamortized compensation expense recognition period | 1 year | ||
Restricted, Deferred Stock Units And Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 83 | 86 | 94 |
Deferred tax benefit related to compensation expense | $ 22 | $ 24 | $ 26 |
Unamortized compensation expense recognition period | 2 years | ||
Unamortized compensation expense related to restricted and deferred stock | $ 111 | ||
Amended 2005 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares award expiration date | May 21, 2024 | ||
Shares authorized to be issued under stock option plan | 243.7 | ||
Shares available to be granted | 74.2 |
Weighted-Average Black-Scholes
Weighted-Average Black-Scholes Fair Value Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-Free Interest Rate | 1.40% | 1.70% | 1.87% |
Expected Life (in years) | 6 years | 6 years | 6 years |
Expected Volatility | 23.11% | 18.51% | 21.48% |
Expected Dividend Yield | 1.61% | 1.61% | 1.64% |
Fair Value at Grant Date | $ 7.86 | $ 6.12 | $ 6.60 |
Stock Option Activity (Detail)
Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Shares subject to option | ||||||
Beginning balance | 57,034,108 | 56,431,551 | 55,783,439 | |||
Options granted | 7,633,090 | 9,800,870 | 10,420,060 | |||
Options exercised | [1] | (8,883,101) | (6,444,515) | (8,076,550) | ||
Options cancelled | (2,182,485) | (2,753,798) | (1,695,398) | |||
Ending balance | 53,601,612 | 57,034,108 | 56,431,551 | |||
Exercisable at end of the period | 39,016,883 | |||||
Weighted-average exercise price | ||||||
Beginning balance | $ 26.12 | $ 24.19 | $ 21.96 | |||
Options granted | 39.74 | 36.84 | 34.14 | |||
Options exercised | [1] | 24.09 | 22.94 | 20.85 | ||
Options cancelled | 35.23 | 32.35 | 27.65 | |||
Ending balance | 28.02 | $ 26.12 | $ 24.19 | |||
Exercisable at end of the period | $ 24.43 | |||||
Average remaining contractual term | ||||||
Ending balance | 6 years | |||||
Exercisable at end of the period (in years) | 5 years | |||||
Aggregate intrinsic value | ||||||
Aggregate intrinsic value | $ 874 | $ 1,068 | [2] | $ 685 | $ 744 | |
Options exercised | [1] | 174 | $ 108 | $ 125 | ||
Exercisable at end of the period | $ 777 | |||||
Annual grant to eligible employees | ||||||
Shares subject to option | ||||||
Options granted | 7,517,290 | 8,899,530 | 9,919,810 | |||
Weighted-average exercise price | ||||||
Options granted | $ 39.70 | $ 36.94 | $ 34.17 | |||
Additional options issued | ||||||
Shares subject to option | ||||||
Options granted | 115,800 | 901,340 | 500,250 | |||
Weighted-average exercise price | ||||||
Options granted | $ 42.26 | $ 35.84 | $ 33.65 | |||
[1] | Cash received from options exercised was $221 million in 2016, $148 million in 2015 and $168 million in 2014. The actual tax benefit realized for the tax deductions from the option exercises totaled $31 million in 2016, $58 million in 2015 and $29 million in 2014. | |||||
[2] | Prior-year aggregate intrinsic value has been revised. |
Stock Option Activity (Parenthe
Stock Option Activity (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from options exercised | $ 221 | $ 148 | $ 168 |
Actual tax benefit realized for the tax deductions from the option exercises | $ 31 | $ 58 | $ 29 |
Deferred Stock Unit, Performanc
Deferred Stock Unit, Performance Share Unit, and Restricted Stock Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Number of Shares | ||||
Beginning balance | 9,418,216 | 10,582,640 | 11,648,587 | |
Shares granted | 3,312,141 | 3,939,162 | 4,070,313 | |
Vested | [1] | (3,992,902) | (3,905,745) | (4,380,452) |
Forfeited | [1] | (1,143,828) | (1,197,841) | (755,808) |
Ending balance | 7,593,627 | 9,418,216 | 10,582,640 | |
Weighted-average grant date fair value per share | ||||
Beginning balance | $ 28 | $ 28.56 | $ 24.48 | |
Shares granted | 37.50 | 37.61 | 34.16 | |
Vested | [1] | 40.22 | 37.83 | 22.98 |
Forfeited | [1] | 37.49 | 32.51 | 28.14 |
Ending balance | $ 24.29 | $ 28 | $ 28.56 | |
Weighted-Average Aggregate Fair Value | ||||
Total shares granted | $ 124 | $ 148 | $ 139 | |
Vested | [1] | $ 161 | $ 148 | $ 101 |
Annual grant to eligible employees | ||||
Grant date | ||||
Grant date | Feb. 22, 2016 | Feb. 18, 2015 | Feb. 19, 2014 | |
Performance Share Units | ||||
Number of Shares | ||||
Shares granted | 1,406,500 | 1,598,290 | 1,143,620 | |
Weighted-average grant date fair value per share | ||||
Shares granted | $ 39.70 | $ 36.94 | $ 34.97 | |
Restricted Stock | ||||
Number of Shares | ||||
Shares granted | 386,910 | 750,410 | ||
Weighted-average grant date fair value per share | ||||
Shares granted | $ 36.94 | $ 34.17 | ||
Deferred Stock Units | ||||
Number of Shares | ||||
Shares granted | 1,040,790 | 866,640 | 1,240,820 | |
Weighted-average grant date fair value per share | ||||
Shares granted | $ 39.70 | $ 36.94 | $ 34.17 | |
Additional options issued | ||||
Number of Shares | ||||
Shares granted | [2] | 864,851 | 1,087,322 | 935,463 |
Weighted-average grant date fair value per share | ||||
Shares granted | [2] | $ 31.29 | $ 39.35 | $ 33.15 |
[1] | Includes performance share units, deferred stock units and restricted stock. The actual tax benefit realized for the tax deductions from the shares vested totaled $18 million in 2016, $18 million in 2015 and $20 million in 2014. | |||
[2] | Includes performance share units, deferred stock units and restricted stock. |
Deferred Stock Unit, Perform103
Deferred Stock Unit, Performance Share Unit, and Restricted Stock Activity (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual tax benefit realized for the tax deductions from the shares vested | $ 18 | $ 18 | $ 20 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Jul. 29, 2015 | Dec. 31, 2013 | May 31, 2014 | May 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | |||||||
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 | |||||
Preferred stock, shares authorized | 500,000,000 | ||||||
Preferred stock, shares issued | 0 | 0 | 0 | ||||
Preferred stock, shares outstanding | 0 | 0 | 0 | ||||
Cost of shares repurchased | $ 2,601,000,000 | $ 3,622,000,000 | $ 1,891,000,000 | ||||
Payments for shares repurchased | $ 2,601,000,000 | $ 3,622,000,000 | $ 1,700,000,000 | ||||
Common Class A | |||||||
Class of Stock [Line Items] | |||||||
Common stock reserved for stock option and other stock awards | 134,000,000 | ||||||
Stock repurchase expiration date | Dec. 31, 2016 | ||||||
Stock repurchase value | $ 7,700,000,000 | ||||||
Number of shares repurchased | 61,972,713 | 91,875,878 | 51,931,864 | ||||
Average cost of shares repurchased | $ 41.97 | $ 39.43 | |||||
Cost of shares repurchased | $ 2,600,000,000 | $ 3,600,000,000 | |||||
Stock repurchase remaining amount | 2,800,000,000 | ||||||
Additional paid in capital treasury stock | $ 200,000,000 | $ 200,000,000 | |||||
Common Class A | Share Repurchase Program amended July 29, 2015 | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase expiration date | Dec. 31, 2018 | ||||||
Stock repurchase value | $ 13,700,000,000 | ||||||
Increase in share repurchase value | $ 6,000,000,000 | ||||||
Common Class A | Accelerated Share Repurchase Program | |||||||
Class of Stock [Line Items] | |||||||
Number of shares repurchased | 44,800,000 | 5,100,000 | 49,900,000 | ||||
Cost of shares repurchased | $ 1,500,000,000 | $ 200,000,000 | |||||
Payments for shares repurchased | $ 1,700,000,000 | ||||||
Common Class A | Accelerated Share Repurchase Program | Weighted Average | |||||||
Class of Stock [Line Items] | |||||||
Accelerated share repurchases, average repurchase price per share | $ 34.10 | ||||||
Common Class A | Prior to January 1, 2016 | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase value | $ 8,200,000,000 |
Authorized Common Stock Repurch
Authorized Common Stock Repurchase Programs (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | |||
Common Stock, Shares Issued, Beginning Balance | 1,996,537,778 | ||
Common Stock, Shares Issued, Ending Balance | 1,996,537,778 | 1,996,537,778 | |
Common Stock, Treasury Shares, Beginning Balance | (416,504,624) | ||
Common Stock, Treasury Shares, Ending Balance | (468,172,237) | (416,504,624) | |
Common Class A | |||
Class of Stock [Line Items] | |||
Common Stock, Shares Issued, Beginning Balance | 1,996,537,778 | 1,996,537,778 | 1,996,537,778 |
Exercise of stock options and issuance of other stock awards | 0 | 0 | 0 |
Common Stock, Shares Issued, Ending Balance | 1,996,537,778 | 1,996,537,778 | 1,996,537,778 |
Common Stock, Treasury Shares, Beginning Balance | (416,504,624) | (332,896,779) | (291,141,184) |
Shares repurchased | (61,972,713) | (91,875,878) | (51,931,864) |
Exercise of stock options and issuance of other stock awards | 10,305,100 | 8,268,033 | 10,176,269 |
Common Stock, Treasury Shares, Ending Balance | (468,172,237) | (416,504,624) | (332,896,779) |
Common Stock, Shares Outstanding, Beginning Balance | 1,580,033,154 | 1,663,640,999 | 1,705,396,594 |
Shares repurchased | (61,972,713) | (91,875,878) | (51,931,864) |
Exercise of stock options and issuance of other stock awards | 10,305,100 | 8,268,033 | 10,176,269 |
Common Stock, Shares Outstanding, Ending Balance | 1,528,365,541 | 1,580,033,154 | 1,663,640,999 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) ₨ in Billions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016INR (₨) | |
Loss Contingencies [Line Items] | |||||
Rental expenses | $ 317,000,000 | $ 331,000,000 | $ 399,000,000 | ||
Indian Department of Central Excise Authority | Cadbury | |||||
Loss Contingencies [Line Items] | |||||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | 55,000,000 | ₨ 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 | 35,000,000 | 2.4 | |||
Indian Department of Central Excise Authority | Cadbury | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Tax penalties and interest expense | $ 86,000,000 | ₨ 5.8 | |||
Subsequent Event | |||||
Loss Contingencies [Line Items] | |||||
Civil penalty payment | $ 13,000,000 | ||||
U.S. Commodity Futures Trading Commission ("CFTC") | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, filling date | April 1, 2015 | ||||
Loss contingency, damages sought | $ 1,000,000 | ||||
U.S. Commodity Futures Trading Commission ("CFTC") | Each Additional Violation of the Commodity Exchange Act | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought | $ 140,000 |
Minimum Rental Commitments (Det
Minimum Rental Commitments (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Leases Future Minimum Payments [Line Items] | |
2,017 | $ 241 |
2,018 | 175 |
2,019 | 143 |
2,020 | 115 |
2,021 | 90 |
Thereafter | 157 |
Total | $ 921 |
Reclassifications from Accum108
Reclassifications from Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net loss amounts reclassified from accumulated other comprehensive earnings / (losses) to net earnings (net of tax) | $ 250 | $ 350 | $ 79 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Earnings / (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balances | $ 28,100 | $ 27,853 | $ 28,100 | $ 27,853 | $ 32,532 | |||||||
Other comprehensive earnings / (losses) | (1,153) | (2,694) | (4,462) | |||||||||
Less: loss attributable to noncontrolling interests | (17) | (26) | (33) | |||||||||
Balances | $ 25,215 | $ 28,100 | 25,215 | 28,100 | 27,853 | |||||||
Tax (expense) / benefit on reclassifications | (78) | $ 40 | $ 118 | 49 | (32) | $ (348) | $ (100) | (113) | (129) | (593) | (353) | |
Cost of sales | (15,795) | (18,124) | (21,647) | |||||||||
Interest rate contracts | (1,115) | (1,013) | (688) | |||||||||
Other comprehensive earnings / (losses) attributable to Mondelez International | (1,136) | (2,668) | (4,429) | |||||||||
Currency Translation Adjustments | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balances | (8,006) | (5,042) | (8,006) | (5,042) | (1,414) | |||||||
Currency translation adjustments | (847) | (2,905) | (3,433) | |||||||||
Venezuela deconsolidation | 99 | 99 | ||||||||||
Equity method investment exchange | 57 | |||||||||||
Tax (expense) / benefit | (135) | (184) | (228) | |||||||||
Other comprehensive earnings / (losses) | (925) | (2,990) | (3,661) | |||||||||
Less: loss attributable to noncontrolling interests | 17 | 26 | 33 | |||||||||
Balances | (8,914) | (8,006) | (8,914) | (8,006) | (5,042) | |||||||
Pension and Other Benefits | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balances | (1,934) | (2,274) | (1,934) | (2,274) | (1,592) | |||||||
Other comprehensive earnings / (losses) | (153) | 340 | (682) | |||||||||
Balances | (2,087) | (1,934) | (2,087) | (1,934) | (2,274) | |||||||
Net actuarial gain / (loss) arising during period | (491) | (60) | (1,388) | |||||||||
Tax (expense) / benefit on net actuarial gain / (loss) | 70 | 3 | 442 | |||||||||
Currency impact | 128 | 146 | 146 | |||||||||
Derivative Cash Flow Hedges | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balances | (46) | (2) | (46) | (2) | 117 | |||||||
Other comprehensive earnings / (losses) | (75) | (44) | (119) | |||||||||
Balances | (121) | (46) | (121) | (46) | (2) | |||||||
Net derivative gains / (losses) | (151) | (75) | (166) | |||||||||
Tax (expense) / benefit on net derivative gain / (loss) | 20 | 30 | 86 | |||||||||
Currency impact | 3 | 1 | ||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balances | $ (9,986) | $ (7,318) | (9,986) | (7,318) | (2,889) | |||||||
Other comprehensive earnings / (losses) | (1,136) | (2,668) | (4,429) | |||||||||
Balances | $ (11,122) | $ (9,986) | (11,122) | (9,986) | (7,318) | |||||||
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 | [1] | 150 | 207 | 132 | ||||||||
Settlement losses | [1] | 36 | 111 | 42 | ||||||||
Venezuela deconsolidation | 2 | |||||||||||
Tax (expense) / benefit on reclassifications | [2] | (46) | (69) | (56) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Tax (expense) / benefit on reclassifications | [2] | (42) | (21) | 6 | ||||||||
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 | [3] | 3 | (90) | (27) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Commodity contracts | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales | [3] | 9 | 64 | (21) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Interest rate contracts | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Interest rate contracts | [4] | $ 83 | $ 47 | $ 3 | ||||||||
[1] | These reclassified gains or losses are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans. Settlement losses include the transfer of coffee business-related pension obligations in the amount of $90 million in 2015. | |||||||||||
[2] | Taxes related to reclassified gains or losses are recorded within the provision for income taxes. | |||||||||||
[3] | These reclassified gains or losses are recorded within cost of sales. | |||||||||||
[4] | These reclassified gains or losses are recorded within interest and other expense, net. |
Components of Accumulated Ot110
Components of Accumulated Other Comprehensive Earnings / (Losses) (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Coffee Business | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Settlement losses | $ 90 | $ 90 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||||||||||
United States | $ (364) | $ 43 | $ (135) | ||||||||
Outside United States | 1,818 | 7,841 | 2,689 | ||||||||
Earnings before income taxes | 1,454 | 7,884 | 2,554 | ||||||||
United States federal current | (227) | (90) | (125) | ||||||||
United States federal deferred | 141 | 136 | 28 | ||||||||
Federal income tax | (86) | 46 | (97) | ||||||||
State and local current | 7 | 6 | 20 | ||||||||
State and local deferred | 8 | (3) | 11 | ||||||||
State and local taxes | 15 | 3 | 31 | ||||||||
Total United States | (71) | 49 | (66) | ||||||||
Outside United States current | 490 | 707 | 644 | ||||||||
Outside United States deferred | (290) | (163) | (225) | ||||||||
Total outside United States | 200 | 544 | 419 | ||||||||
Total provision for income taxes | $ 78 | $ (40) | $ (118) | $ (49) | $ 32 | $ 348 | $ 100 | $ 113 | $ 129 | $ 593 | $ 353 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 01, 2016 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | ||||||||
Impact on provision for income tax, out-of-period adjustments | $ 14 | $ 31 | ||||||
Effective tax rate | 8.90% | 7.50% | 13.80% | |||||
Total favorable discrete items | $ 161 | $ 119 | $ 206 | |||||
Gains on coffee business transactions and divestitures | $ 313 | $ (7,122) | $ (13) | 9 | $ 6,822 | |||
Effective tax rate, excluding the discrete items | 17.80% | |||||||
Loss carryforwards | 3,517 | |||||||
Loss carryforwards, expire at various dates between 2016 and 2029 | 1,223 | |||||||
Loss carryforwards, indefinitely | 2,294 | |||||||
Accumulated earnings of foreign subsidiaries | 19,800 | |||||||
Unrecognized tax benefits | $ 756 | 610 | $ 756 | $ 852 | $ 756 | $ 1,189 | ||
Impact on tax provision from unrecognized tax benefits | 652 | |||||||
Unrecognized tax benefits reasonably possible increase resulting from unfavorable audit developments | 40 | |||||||
Unrecognized tax benefits reasonably possible decrease resulting from audit settlements and the expiration of statutes of limitations in various jurisdictions | 160 | |||||||
Unrecognized tax benefits reasonably possible reductions due to audit settlements and expiration of statutes of limitations | 549 | |||||||
Unrecognized tax benefits, income tax penalties and interest accrued | 189 | $ 185 | ||||||
Net benefit for interest and penalties | $ 15 | |||||||
Coffee Business | ||||||||
Income Tax Contingency [Line Items] | ||||||||
Gains on coffee business transactions and divestitures | 6,809 | |||||||
Tax expense on gains from divestitures | 184 | |||||||
Tax costs incurred to remit proceeds up from lower-tier foreign subsidiaries | $ 27 |
Effective Income Tax Rate (Deta
Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax [Line Items] | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal tax benefit excluding IRS audit impacts | 0.80% | (0.10%) | 0.30% |
Foreign rate differences | (18.60%) | (2.50%) | (14.50%) |
Reversal of other tax accruals no longer required | (7.70%) | (1.40%) | (10.50%) |
Tax accrual on investment in Keurig | 2.30% | ||
Tax legislation | (4.00%) | (0.50%) | |
Gains on coffee business transactions and divestitures | (26.90%) | ||
Loss on deconsolidation of Venezuela | 3.50% | ||
Remeasurement of net monetary assets in Venezuela | 1.70% | ||
Non-deductible expenses | 0.90% | 0.30% | 1.50% |
Other | 0.20% | 0.10% | 0.30% |
Effective tax rate | 8.90% | 7.50% | 13.80% |
Deferred Tax Assets and Liabili
Deferred Tax Assets and Liabilities Temporary Differences (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets: | ||
Accrued postretirement and postemployment benefits | $ 214 | $ 230 |
Accrued pension costs | 370 | 414 |
Other employee benefits | 237 | 265 |
Accrued expenses | 379 | 343 |
Loss carryforwards | 619 | 636 |
Other | 331 | 352 |
Total deferred income tax assets | 2,150 | 2,240 |
Valuation allowance | (310) | (303) |
Net deferred income tax assets | 1,840 | 1,937 |
Deferred income tax liabilities: | ||
Intangible assets | (5,174) | (5,365) |
Property, plant and equipment | (557) | (636) |
Other | (472) | (409) |
Total deferred income tax liabilities | (6,203) | (6,410) |
Net deferred income tax liabilities | $ (4,363) | $ (4,473) |
Change in Unrecognized Tax Bene
Change in Unrecognized Tax Benefit (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits beginning balance | $ 756 | $ 852 | $ 1,189 |
Increases from positions taken during prior periods | 18 | 34 | 143 |
Decreases from positions taken during prior periods | (123) | (74) | (247) |
Increases from positions taken during the current period | 90 | 84 | 147 |
Decreases relating to settlements with taxing authorities | (75) | (13) | (203) |
Reductions resulting from the lapse of the applicable statute of limitations | (43) | (41) | (64) |
Currency / other | (13) | (86) | (113) |
Unrecognized tax benefits ending balance | $ 610 | $ 756 | $ 852 |
Basic and Diluted Earnings per
Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Net earnings | $ 93 | [1] | $ 548 | [1] | $ 471 | [1] | $ 557 | [1] | $ (716) | [2] | $ 7,268 | [2] | $ 427 | [2] | $ 312 | [2] | $ 1,669 | $ 7,291 | $ 2,201 |
Noncontrolling interest | (7) | (3) | (13) | (2) | (21) | 12 | (10) | (24) | (17) | ||||||||||
Net earnings attributable to Mondelez International | $ 93 | $ 548 | $ 464 | $ 554 | $ (729) | $ 7,266 | $ 406 | $ 324 | $ 1,659 | $ 7,267 | $ 2,184 | ||||||||
Weighted-average shares for basic EPS | 1,540 | 1,557 | 1,557 | 1,569 | 1,589 | 1,609 | 1,625 | 1,648 | 1,556 | 1,618 | 1,691 | ||||||||
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares | 19 | 19 | 19 | 18 | 21 | 20 | 18 | 17 | 17 | 19 | 18 | ||||||||
Weighted-average shares for diluted EPS | 1,559 | 1,576 | 1,576 | 1,587 | 1,610 | 1,629 | 1,643 | 1,665 | 1,573 | 1,637 | 1,709 | ||||||||
Basic earnings per share attributable to Mondelez International | $ 0.06 | $ 0.35 | $ 0.30 | $ 0.35 | $ (0.46) | $ 4.52 | $ 0.25 | $ 0.20 | $ 1.07 | $ 4.49 | $ 1.29 | ||||||||
Diluted earnings per share attributable to Mondel?z International: | $ 0.06 | $ 0.35 | $ 0.29 | $ 0.35 | $ (0.46) | [3] | $ 4.46 | [3] | $ 0.25 | [3] | $ 0.19 | [3] | $ 1.05 | $ 4.44 | $ 1.28 | ||||
[1] | See the following table for significant items that affected the comparability of earnings each quarter. | ||||||||||||||||||
[2] | Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax equity method investment earnings outside of operating income. As the after-tax equity method investment net earnings for the six months ended December 31, 2015 was less than $1 million, this line item is not shown on our consolidated statement of earnings. Pre-tax earnings from equity method investments recorded within segment operating income were $56 million for the six months ended July 2, 2015. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. Equity method investment net earnings were lower in the third quarter of 2016 due to the JDE unfavorable tax expense disclosed in Note 2, Divestitures and Acquisitions - JDE Tax Matter Resolution. | ||||||||||||||||||
[3] | In the fourth quarter of 2015, we recorded a net loss, primarily due to the loss on deconsolidation of Venezuela and coffee business transaction final sales price adjustment. In accordance with U.S. GAAP, due to the net loss in the quarter, diluted EPS was equal to basic EPS. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Mondelez International stock options excluded from the calculation of diluted EPS | 7.8 | 5.1 | 8.6 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2016USD ($) | [1] | Sep. 30, 2016USD ($) | [1] | Jun. 30, 2016USD ($) | [1] | Mar. 31, 2016USD ($) | [1] | Dec. 31, 2015USD ($) | [2] | Sep. 30, 2015USD ($) | [2] | Dec. 31, 2015USD ($) | Jul. 02, 2015USD ($) | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||||||||
Number of reportable operating segments | Segment | 4 | ||||||||||||||||
After-tax equity method investment net earnings | $ 83 | $ 31 | $ 102 | $ 85 | $ 72 | $ (72) | $ 301 | ||||||||||
Operating income (loss) | 2,569 | $ 8,897 | $ 3,242 | ||||||||||||||
Stock-based compensation expense | $ 140 | 136 | 141 | ||||||||||||||
Number of customers accounted for 10% or more of net revenue | No single customer accounted for 10% or more of our net revenues from continuing operations in 2016. | ||||||||||||||||
Corporate | Scenario, Adjustment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Stock-based compensation expense | 32 | ||||||||||||||||
Asia Middle East Africa Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating income (loss) | $ 506 | 389 | 530 | ||||||||||||||
North America Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating income (loss) | $ 1,078 | 1,105 | 922 | ||||||||||||||
North America Segment | Scenario, Previously Reported | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Stock-based compensation expense | $ (32) | ||||||||||||||||
Customer Concentration Risk | Net Revenues | Five Largest Customers | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Largest customer, percentage of net revenues | 16.60% | ||||||||||||||||
Customer Concentration Risk | Net Revenues | Ten Largest Customers | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Largest customer, percentage of net revenues | 22.90% | ||||||||||||||||
Equity Method Investments | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating income (loss) | $ 56 | 113 | |||||||||||||||
Equity Method Investments | Asia Middle East Africa Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating income (loss) | 52 | 104 | |||||||||||||||
Equity Method Investments | North America Segment | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating income (loss) | $ 4 | $ 9 | |||||||||||||||
Maximum | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
After-tax equity method investment net earnings | $ 1 | ||||||||||||||||
[1] | Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax equity method investment earnings outside of operating income. As the after-tax equity method investment net earnings for the six months ended December 31, 2015 was less than $1 million, this line item is not shown on our consolidated statement of earnings. Pre-tax earnings from equity method investments recorded within segment operating income were $56 million for the six months ended July 2, 2015. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. Equity method investment net earnings were lower in the third quarter of 2016 due to the JDE unfavorable tax expense disclosed in Note 2, Divestitures and Acquisitions - JDE Tax Matter Resolution. | ||||||||||||||||
[2] | See the following table for significant items that affected the comparability of earnings each quarter. |
Net Revenues by Segment (Detail
Net Revenues by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 7,364 | $ 6,849 | $ 7,661 | $ 7,762 | $ 25,923 | [1] | $ 29,636 | [1] | $ 34,244 | [1] | |
Latin America Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1],[2] | 3,392 | 4,988 | 5,153 | |||||||||||
Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [3] | 5,816 | 6,002 | 6,367 | |||||||||||
Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [3] | 9,755 | 11,672 | [4] | 15,788 | [4] | |||||||||
North America Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 6,960 | $ 6,974 | $ 6,936 | ||||||||||||
[1] | In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||||||||||
[2] | Net revenues of $1,217 million for 2015 and $760 million for 2014 from our Venezuelan subsidiaries are included in our 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 consolidated financial statements. Refer to Note 1, Summary of Significant Accounting Policies - 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 and AMEA segments. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||||||||||
[4] | During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Net Revenues by Segment (Parent
Net Revenues by Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 7,364 | $ 6,849 | $ 7,661 | $ 7,762 | $ 25,923 | [1] | $ 29,636 | [1] | $ 34,244 | [1] | |
Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [2] | 5,816 | 6,002 | 6,367 | |||||||||||
Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [2] | $ 9,755 | 11,672 | [3] | 15,788 | [3] | |||||||||
Coffee Business | Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 66 | ||||||||||||||
Coffee Business | Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,561 | ||||||||||||||
Venezuela | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 1,217 | $ 760 | |||||||||||||
[1] | In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||||||||||
[2] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe and AMEA segments. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||||||||||
[3] | During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Operating Income by Segment (De
Operating Income by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||||
General corporate expenses | $ (291) | $ (383) | $ (317) | |||
Amortization of intangibles | (176) | (181) | (206) | |||
Gains on divestitures and JDE coffee business transactions | $ 313 | $ (7,122) | $ (13) | 9 | 6,822 | |
Loss on deconsolidation of Venezuela | $ (778) | (778) | ||||
Acquisition-related costs | (1) | (8) | (2) | |||
Operating income (loss) | 2,569 | 8,897 | 3,242 | |||
Interest and other expense, net | (1,115) | (1,013) | (688) | |||
Earnings before income taxes | 1,454 | 7,884 | 2,554 | |||
Cost of Sales | ||||||
Segment Reporting Information [Line Items] | ||||||
Unrealized (losses) / gains on hedging activities (mark-to-market impacts) | (94) | 96 | (112) | |||
Latin America Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | 271 | 485 | 475 | |||
Asia Middle East Africa Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | 506 | 389 | 530 | |||
Europe Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | 1,267 | 1,350 | 1,952 | |||
North America Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | $ 1,078 | $ 1,105 | $ 922 |
Total Assets by Segment (Detail
Total Assets by Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 61,538 | $ 62,843 | $ 66,771 | |
Equity Method Investments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 5,585 | 5,387 | 662 | |
Latin America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 5,156 | 4,673 | 6,470 | |
Asia Middle East Africa Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 10,031 | 10,460 | 10,549 | |
Europe Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 19,934 | 21,026 | 27,240 | |
North America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 20,694 | 21,175 | 21,287 | |
Unallocated Assets | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | $ 138 | $ 122 | $ 563 |
[1] | Unallocated assets consist primarily of cash and cash equivalents, deferred income taxes, centrally held property, plant and equipment, prepaid pension assets and derivative financial instrument balances. We had debt issuance costs related to recognized debt liabilities of $40 million as of December 31, 2016, $46 million as of December 31, 2015 and $44 million as of December 31, 2014. |
Total Assets by Segment (Parent
Total Assets by Segment (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Deferred debt issuance costs | $ 40 | $ 46 | $ 44 |
Depreciation Expense and Capita
Depreciation Expense and Capital Expenditure by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Depreciation expense | $ 647 | $ 713 | $ 853 |
Capital expenditures | 1,224 | 1,514 | 1,642 |
Latin America Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 92 | 94 | 118 |
Capital expenditures | 321 | 354 | 460 |
Asia Middle East Africa Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 161 | 155 | 154 |
Capital expenditures | 349 | 381 | 451 |
Europe Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 253 | 299 | 407 |
Capital expenditures | 294 | 517 | 553 |
North America Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 141 | 165 | 174 |
Capital expenditures | $ 260 | $ 262 | $ 178 |
Net Revenues by Geographic Segm
Net Revenues by Geographic Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 7,364 | $ 6,849 | $ 7,661 | $ 7,762 | $ 25,923 | [1] | $ 29,636 | [1] | $ 34,244 | [1] |
United States | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 6,329 | 6,302 | 6,143 | |||||||||||
Other | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | $ 19,594 | $ 23,334 | $ 28,101 | |||||||||||
[1] | In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. |
Long-lived Assets by Geographic
Long-lived Assets by Geographic Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Total long-lived assets | $ 8,737 | $ 8,789 | $ 10,365 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total long-lived assets | 1,508 | 1,551 | 1,564 |
Other | |||
Segment Reporting Information [Line Items] | |||
Total long-lived assets | $ 7,229 | $ 7,238 | $ 8,801 |
Net Revenues by Consumer Sector
Net Revenues by Consumer Sector (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 7,364 | $ 6,849 | $ 7,661 | $ 7,762 | $ 25,923 | [1] | $ 29,636 | [1] | $ 34,244 | [1] | |
Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 10,590 | 11,393 | 11,509 | |||||||||||
Chocolate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 7,739 | 8,074 | 9,420 | |||||||||||
Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 3,947 | 4,258 | 4,660 | |||||||||||
Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 1,445 | 3,260 | [2] | 5,678 | [2] | |||||||||
Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 2,202 | 2,651 | 2,977 | |||||||||||
Latin America Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1],[3] | 3,392 | 4,988 | 5,153 | |||||||||||
Latin America Segment | Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 734 | 1,605 | 1,322 | |||||||||||
Latin America Segment | Chocolate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 743 | 840 | 1,054 | |||||||||||
Latin America Segment | Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 938 | 1,091 | 1,176 | |||||||||||
Latin America Segment | Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 657 | 767 | [2] | 940 | [2] | |||||||||
Latin America Segment | Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 320 | 685 | 661 | |||||||||||
Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [4] | 5,816 | 6,002 | 6,367 | |||||||||||
Asia Middle East Africa Segment | Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,588 | 1,539 | 1,442 | ||||||||||||
Asia Middle East Africa Segment | Chocolate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,901 | 1,928 | 2,073 | ||||||||||||
Asia Middle East Africa Segment | Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 953 | 1,003 | 1,098 | ||||||||||||
Asia Middle East Africa Segment | Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 611 | 730 | [2] | 836 | [2] | ||||||||||
Asia Middle East Africa Segment | Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 763 | 802 | 918 | ||||||||||||
Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [4] | 9,755 | 11,672 | [5] | 15,788 | [5] | |||||||||
Europe Segment | Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 2,703 | 2,680 | [5] | 3,259 | [5] | ||||||||||
Europe Segment | Chocolate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 4,840 | 5,050 | [5] | 5,997 | [5] | ||||||||||
Europe Segment | Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 916 | 1,015 | [5] | 1,232 | [5] | ||||||||||
Europe Segment | Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 177 | 1,763 | [2],[5] | 3,902 | [2],[5] | ||||||||||
Europe Segment | Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,119 | 1,164 | [5] | 1,398 | [5] | ||||||||||
North America Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 6,960 | 6,974 | 6,936 | ||||||||||||
North America Segment | Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 5,565 | 5,569 | 5,486 | ||||||||||||
North America Segment | Chocolate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 255 | 256 | 296 | ||||||||||||
North America Segment | Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 1,140 | $ 1,149 | $ 1,154 | ||||||||||||
[1] | In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||||||||||
[2] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe and AMEA segment beverage categories. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||||||||||
[3] | Net revenues of $1,217 million for 2015 and $760 million for 2014 from our Venezuelan subsidiaries are included in our 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 consolidated financial statements. Refer to Note 1, Summary of Significant Accounting Policies - 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 and AMEA segments. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||||||||||
[5] | During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Net Revenues by Consumer Sec128
Net Revenues by Consumer Sector (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 7,364 | $ 6,849 | $ 7,661 | $ 7,762 | $ 25,923 | [1] | $ 29,636 | [1] | $ 34,244 | [1] | |
Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [2] | 5,816 | 6,002 | 6,367 | |||||||||||
Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [2] | 9,755 | 11,672 | [3] | 15,788 | [3] | |||||||||
Coffee Business | Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 66 | ||||||||||||||
Coffee Business | Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,561 | ||||||||||||||
Venezuela | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,217 | 760 | |||||||||||||
Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 10,590 | 11,393 | 11,509 | |||||||||||
Biscuits | Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,588 | 1,539 | 1,442 | ||||||||||||
Biscuits | Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 2,703 | 2,680 | [3] | 3,259 | [3] | ||||||||||
Biscuits | Venezuela | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 763 | 422 | |||||||||||||
Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 3,947 | 4,258 | 4,660 | |||||||||||
Gum & Candy | Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 953 | 1,003 | 1,098 | ||||||||||||
Gum & Candy | Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 916 | 1,015 | [3] | 1,232 | [3] | ||||||||||
Gum & Candy | Venezuela | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 66 | 30 | |||||||||||||
Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 1,445 | 3,260 | [4] | 5,678 | [4] | |||||||||
Beverages | Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 611 | 730 | [4] | 836 | [4] | ||||||||||
Beverages | Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 177 | 1,763 | [3],[4] | 3,902 | [3],[4] | ||||||||||
Beverages | Venezuela | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 48 | 91 | |||||||||||||
Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 2,202 | 2,651 | 2,977 | |||||||||||
Cheese & Grocery | Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 763 | 802 | 918 | ||||||||||||
Cheese & Grocery | Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 1,119 | 1,164 | [3] | 1,398 | [3] | ||||||||||
Cheese & Grocery | Venezuela | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 340 | $ 216 | |||||||||||||
[1] | In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | ||||||||||||||
[2] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe and AMEA segments. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||||||||||
[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. | ||||||||||||||
[4] | On July 2, 2015, we contributed our global coffee businesses primarily from our Europe and AMEA segment beverage categories. Net revenues of our global coffee business were $1,561 million in Europe and $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||||||||||
Quarterly Financial Data [Line Items] | ||||||||||||||||||||||
Net revenues | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 7,364 | $ 6,849 | $ 7,661 | $ 7,762 | $ 25,923 | [1] | $ 29,636 | [1] | $ 34,244 | [1] | ||||||||
Gross profit | 2,589 | 2,488 | 2,516 | 2,535 | 2,835 | 2,670 | 3,066 | 2,941 | 10,128 | 11,512 | 12,597 | |||||||||||
(Benefit) / provision for income taxes | 78 | (40) | (118) | (49) | 32 | 348 | 100 | 113 | 129 | 593 | 353 | |||||||||||
Gain on equity method investment exchange | 43 | 43 | ||||||||||||||||||||
Equity method investment net (losses) / earnings | 83 | [2] | 31 | [2] | 102 | [2] | 85 | [2] | 72 | [3] | (72) | [3] | 301 | |||||||||
Net earnings / (loss) | 93 | [3] | 548 | [3] | 471 | [3] | 557 | [3] | (716) | [2] | 7,268 | [2] | 427 | [2] | 312 | [2] | 1,669 | 7,291 | 2,201 | |||
Noncontrolling interest | (7) | (3) | (13) | (2) | (21) | 12 | (10) | (24) | (17) | |||||||||||||
Net earnings / (loss) attributable to Mondelz International | $ 93 | $ 548 | $ 464 | $ 554 | $ (729) | $ 7,266 | $ 406 | $ 324 | $ 1,659 | $ 7,267 | $ 2,184 | |||||||||||
Weighted-average shares for basic EPS | 1,540 | 1,557 | 1,557 | 1,569 | 1,589 | 1,609 | 1,625 | 1,648 | 1,556 | 1,618 | 1,691 | |||||||||||
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares | 19 | 19 | 19 | 18 | 21 | 20 | 18 | 17 | 17 | 19 | 18 | |||||||||||
Weighted-average shares for diluted EPS | 1,559 | 1,576 | 1,576 | 1,587 | 1,610 | 1,629 | 1,643 | 1,665 | 1,573 | 1,637 | 1,709 | |||||||||||
Basic EPS attributable to Mondelz International | $ 0.06 | $ 0.35 | $ 0.30 | $ 0.35 | $ (0.46) | $ 4.52 | $ 0.25 | $ 0.20 | $ 1.07 | $ 4.49 | $ 1.29 | |||||||||||
Diluted EPS attributable to Mondelz International | 0.06 | 0.35 | 0.29 | 0.35 | (0.46) | [4] | 4.46 | [4] | 0.25 | [4] | 0.19 | [4] | 1.05 | 4.44 | 1.28 | |||||||
Dividends declared | 0.19 | 0.19 | 0.17 | 0.17 | 0.17 | 0.17 | 0.15 | 0.15 | $ 0.72 | $ 0.64 | $ 0.58 | |||||||||||
Market price - high | 46.40 | 46.36 | 45.75 | 44.45 | 47.42 | 48.58 | 41.81 | 37.88 | ||||||||||||||
Market price, low | $ 40.50 | $ 41.96 | $ 39.53 | $ 35.88 | $ 41.55 | $ 38.91 | $ 35.93 | $ 33.97 | ||||||||||||||
[1] | In 2015 and 2014, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages and 2014 Venezuela net revenues of $422 million in biscuits, $216 million in cheese & grocery, $91 million in beverages and $30 million in gum & candy. Following the deconsolidation of our Venezuela operations at the end of 2015, in 2016 our consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | |||||||||||||||||||||
[2] | Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax equity method investment earnings outside of operating income. As the after-tax equity method investment net earnings for the six months ended December 31, 2015 was less than $1 million, this line item is not shown on our consolidated statement of earnings. Pre-tax earnings from equity method investments recorded within segment operating income were $56 million for the six months ended July 2, 2015. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. Equity method investment net earnings were lower in the third quarter of 2016 due to the JDE unfavorable tax expense disclosed in Note 2, Divestitures and Acquisitions - JDE Tax Matter Resolution. | |||||||||||||||||||||
[3] | See the following table for significant items that affected the comparability of earnings each quarter. | |||||||||||||||||||||
[4] | In the fourth quarter of 2015, we recorded a net loss, primarily due to the loss on deconsolidation of Venezuela and coffee business transaction final sales price adjustment. In accordance with U.S. GAAP, due to the net loss in the quarter, diluted EPS was equal to basic EPS. |
Quarterly Financial Data (Paren
Quarterly Financial Data (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2015 | [2] | Sep. 30, 2015 | [2] | Dec. 31, 2015 | Jul. 02, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Line Items] | |||||||||||||||||
After-tax equity method investment net earnings | $ 83 | $ 31 | $ 102 | $ 85 | $ 72 | $ (72) | $ 301 | ||||||||||
Operating income | $ 2,569 | $ 8,897 | $ 3,242 | ||||||||||||||
Maximum | |||||||||||||||||
Quarterly Financial Data [Line Items] | |||||||||||||||||
After-tax equity method investment net earnings | $ 1 | ||||||||||||||||
Equity Method Investments | |||||||||||||||||
Quarterly Financial Data [Line Items] | |||||||||||||||||
Operating income | $ 56 | $ 113 | |||||||||||||||
[1] | Historically, we have recorded income from equity method investments within our operating income as these investments operated as extensions of our base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, we began to record the earnings from our equity method investments in after-tax equity method investment earnings outside of operating income. As the after-tax equity method investment net earnings for the six months ended December 31, 2015 was less than $1 million, this line item is not shown on our consolidated statement of earnings. Pre-tax earnings from equity method investments recorded within segment operating income were $56 million for the six months ended July 2, 2015. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. Equity method investment net earnings were lower in the third quarter of 2016 due to the JDE unfavorable tax expense disclosed in Note 2, Divestitures and Acquisitions - JDE Tax Matter Resolution. | ||||||||||||||||
[2] | See the following table for significant items that affected the comparability of earnings each quarter. |
Pre-Tax (Charges) _ Gains in Ea
Pre-Tax (Charges) / Gains in Earnings from Continuing Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Line Items] | |||||||||||
Asset impairment and exit costs | $ (342) | $ (190) | $ (166) | $ (154) | $ (355) | $ (155) | $ (231) | $ (160) | $ 852 | $ 901 | $ 692 |
Remeasurement of net monetary assets in Venezuela | (11) | ||||||||||
Loss on deconsolidation of Venezuela | (778) | (778) | |||||||||
Gains / (loss) on JDE coffee business transactions and divestiture | (313) | 7,122 | 13 | (9) | (6,822) | ||||||
JDE coffee business transactions currency- related net gain / (loss) | (97) | 29 | (144) | 551 | (436) | (628) | |||||
Loss related to interest rate swaps | (34) | 97 | 34 | ||||||||
Divestiture-related costs | (2) | (84) | |||||||||
Loss on early extinguishment of debt and related expenses | (427) | (40) | (713) | $ (427) | $ (753) | $ (495) | |||||
Pre-tax charges / (gains) in earnings from continuing operations | $ (771) | $ (190) | $ (250) | $ (251) | $ (1,486) | $ 6,996 | $ (362) | $ (367) |
Valuation and Qualifying Acc132
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 482 | $ 516 | $ 510 | |
Addition Charged to Costs and Expenses | 84 | 77 | 110 | |
Charged to Other Accounts | [1] | (39) | (42) | (50) |
Deductions | [2] | 46 | 69 | 54 |
Balance at End of Period | 481 | 482 | 516 | |
Allowance for Trade Receivables | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 54 | 66 | 86 | |
Addition Charged to Costs and Expenses | 18 | 14 | 9 | |
Charged to Other Accounts | [1] | (1) | (11) | (10) |
Deductions | [2] | 13 | 15 | 19 |
Balance at End of Period | 58 | 54 | 66 | |
Valuation Allowance for Other Current Receivables | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 109 | 91 | 73 | |
Addition Charged to Costs and Expenses | (2) | 12 | 39 | |
Charged to Other Accounts | [1] | (13) | 7 | (13) |
Deductions | [2] | 1 | 1 | 8 |
Balance at End of Period | 93 | 109 | 91 | |
Valuation Allowance for Long Term Receivables | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 16 | 14 | 16 | |
Addition Charged to Costs and Expenses | 1 | 5 | 1 | |
Charged to Other Accounts | [1] | 3 | (3) | (2) |
Deductions | [2] | 1 | ||
Balance at End of Period | 20 | 16 | 14 | |
Allowance for Deferred Taxes | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 303 | 345 | 335 | |
Addition Charged to Costs and Expenses | 67 | 46 | 61 | |
Charged to Other Accounts | [1] | (28) | (35) | (25) |
Deductions | [2] | 32 | 53 | 26 |
Balance at End of Period | $ 310 | $ 303 | $ 345 | |
[1] | Primarily related to divestitures, acquisitions and currency translation. | |||
[2] | Represents charges for which allowances were created. |