Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 02, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 1,487,328,466 | ||
Entity Public Float | $ 63 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net revenues | [1] | $ 25,896 | $ 25,923 | $ 29,636 |
Cost of sales | 15,831 | 15,795 | 18,124 | |
Gross profit | 10,065 | 10,128 | 11,512 | |
Selling, general and administrative expenses | 5,911 | 6,540 | 7,577 | |
Asset impairment and exit costs | 656 | 852 | 901 | |
Net gain on divestitures | (186) | (9) | (6,822) | |
Loss on deconsolidation of Venezuela | 0 | 0 | 778 | |
Amortization of intangibles | 178 | 176 | 181 | |
Operating income | 3,506 | 2,569 | 8,897 | |
Interest and other expense, net | 382 | 1,115 | 1,013 | |
Earnings before income taxes | 3,124 | 1,454 | 7,884 | |
Provision for income taxes | (688) | (129) | (593) | |
Gain on equity method investment transactions | 40 | 43 | 0 | |
Equity method investment net earnings | 460 | 301 | 0 | |
Net earnings | 2,936 | 1,669 | 7,291 | |
Noncontrolling interest earnings | (14) | (10) | (24) | |
Net earnings attributable to Mondelez International | $ 2,922 | $ 1,659 | $ 7,267 | |
Per share data: | ||||
Basic earnings per share attributable to Mondelez International | $ 1.93 | $ 1.07 | $ 4.49 | |
Diluted earnings per share attributable to Mondelez International | 1.91 | 1.05 | 4.44 | |
Dividends declared | $ 0.82 | $ 0.72 | $ 0.64 | |
[1] | In 2015, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net earnings | $ 2,936 | $ 1,669 | $ 7,291 |
Other comprehensive earnings/(losses), net of tax: | |||
Currency translation adjustment | 1,201 | (925) | (2,990) |
Pension and other benefit plans | (57) | (153) | 340 |
Derivative cash flow hedges | 8 | (75) | (44) |
Total other comprehensive earnings/(losses) | 1,152 | (1,153) | (2,694) |
Comprehensive earnings | 4,088 | 516 | 4,597 |
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | 42 | (7) | (2) |
Comprehensive earnings attributable to Mondelez International | $ 4,046 | $ 523 | $ 4,599 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 761 | $ 1,741 |
Trade receivables (net of allowances of $50 at December 31, 2017 and $58 at December 31, 2016) | 2,691 | 2,611 |
Other receivables (net of allowances of $98 at December 31, 2017 and $93 at December 31, 2016) | 835 | 859 |
Inventories, net | 2,557 | 2,469 |
Other current assets | 676 | 800 |
Total current assets | 7,520 | 8,480 |
Property, plant and equipment, net | 8,677 | 8,229 |
Goodwill | 21,085 | 20,276 |
Intangible assets, net | 18,639 | 18,101 |
Prepaid pension assets | 158 | 159 |
Deferred income taxes | 319 | 358 |
Equity method investments | 6,345 | 5,585 |
Other assets | 366 | 350 |
TOTAL ASSETS | 63,109 | 61,538 |
LIABILITIES | ||
Short-term borrowings | 3,517 | 2,531 |
Current portion of long-term debt | 1,163 | 1,451 |
Accounts payable | 5,705 | 5,318 |
Accrued marketing | 1,728 | 1,745 |
Accrued employment costs | 721 | 736 |
Other current liabilities | 2,959 | 2,636 |
Total current liabilities | 15,793 | 14,417 |
Long-term debt | 12,972 | 13,217 |
Deferred income taxes | 3,376 | 4,721 |
Accrued pension costs | 1,669 | 2,014 |
Accrued postretirement health care costs | 419 | 382 |
Other liabilities | 2,689 | 1,572 |
TOTAL LIABILITIES | 36,918 | 36,323 |
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, 2017 and December 31, 2016) | 0 | 0 |
Additional paid-in capital | 31,915 | 31,847 |
Retained earnings | 22,749 | 21,149 |
Accumulated other comprehensive losses | (9,998) | (11,122) |
Treasury stock, at cost (508,401,694 shares at December 31, 2017 and 468,172,237 shares at December 31, 2016) | (18,555) | (16,713) |
Total Mondelez International Shareholders' Equity | 26,111 | 25,161 |
Noncontrolling interest | 80 | 54 |
TOTAL EQUITY | 26,191 | 25,215 |
TOTAL LIABILITIES AND EQUITY | $ 63,109 | $ 61,538 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trade receivables, allowances | $ 50 | $ 58 |
Other receivables, allowances | $ 98 | $ 93 |
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 | 508,401,694 | 468,172,237 |
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, 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 ( $0.82 per share for 2017, $0.72 per share for 2016, and $0.64 per share for 2015) | (1,026) | (1,026) | ||||
Dividends paid on noncontrolling interest and other activities | (13) | (13) | ||||
Balances at Dec. 31, 2015 | 28,100 | 31,760 | 20,700 | (9,986) | (14,462) | 88 |
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 ( $0.82 per share for 2017, $0.72 per share for 2016, and $0.64 per share for 2015) | (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 |
Comprehensive earnings/(losses): | ||||||
Net earnings | 2,936 | 2,922 | 14 | |||
Other comprehensive earnings/(losses), net of income taxes | 1,152 | 1,124 | 28 | |||
Exercise of stock options and issuance of other stock awards | 345 | 68 | (83) | 360 | ||
Common Stock repurchased | (2,202) | (2,202) | ||||
Cash dividends declared ( $0.82 per share for 2017, $0.72 per share for 2016, and $0.64 per share for 2015) | (1,239) | (1,239) | ||||
Dividends paid on noncontrolling interest and other activities | (16) | (16) | ||||
Balances at Dec. 31, 2017 | $ 26,191 | $ 31,915 | $ 22,749 | $ (9,998) | $ (18,555) | $ 80 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | ||||
Net earnings | $ 2,936 | $ 1,669 | $ 7,291 | |
Adjustments to reconcile net earnings to operating cash flows: | ||||
Depreciation and amortization | 816 | 823 | 894 | |
Stock-based compensation expense | 137 | 140 | 136 | |
U.S. tax reform transition tax | 1,317 | 0 | 0 | |
Deferred income tax benefit | (1,206) | (141) | (30) | |
Asset impairments and accelerated depreciation | 334 | 446 | 345 | |
Loss on early extinguishment of debt | 11 | 428 | 748 | |
Loss on deconsolidation of Venezuela | 0 | 0 | 778 | |
Gains on divestitures and JDE coffee business transactions | (186) | (9) | (6,822) | |
JDE coffee business transactions currency-related net gains | 0 | 0 | (436) | |
Gain on equity method investment transactions | (40) | (43) | 0 | |
Equity method investment net earnings | [1] | (460) | (301) | (56) |
Distributions from equity method investments | 152 | 75 | 58 | |
Other non-cash items, net | (225) | (43) | 199 | |
Change in assets and liabilities, net of acquisitions and divestitures: | ||||
Receivables, net | (24) | 31 | 44 | |
Inventories, net | (18) | 62 | (49) | |
Accounts payable | 5 | 409 | 659 | |
Other current assets | 14 | (176) | 28 | |
Other current liabilities | (637) | 60 | 152 | |
Change in pension and postretirement assets and liabilities, net | (333) | (592) | (211) | |
Net cash provided by operating activities | 2,593 | 2,838 | 3,728 | |
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | ||||
Capital expenditures | (1,014) | (1,224) | (1,514) | |
Proceeds from JDE coffee business transactions currency hedge settlements | 0 | 0 | 1,050 | |
Acquisitions, net of cash received | 0 | (246) | (527) | |
Proceeds from divestitures, net of disbursements | 604 | 303 | 4,735 | |
Reduction of cash due to Venezuela deconsolidation | 0 | 0 | (611) | |
Capital contribution to JDE | 0 | 0 | (544) | |
Proceeds from sale of property, plant and equipment and other assets | 109 | 138 | 60 | |
Net cash (used in)/provided by investing activities | (301) | (1,029) | 2,649 | |
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | ||||
Issuances of commercial paper, maturities greater than 90 days | 1,808 | 1,540 | 613 | |
Repayments of commercial paper, maturities greater than 90 days | (1,911) | (1,031) | (710) | |
Net issuances/(repayments) of other short-term borrowings | 1,027 | 1,741 | (931) | |
Long-term debt proceeds | 350 | 5,640 | 4,624 | |
Long-term debt repaid | (1,470) | (6,186) | (4,975) | |
Repurchase of Common Stock | (2,174) | (2,601) | (3,622) | |
Dividends paid | (1,198) | (1,094) | (1,008) | |
Other | 207 | 129 | 126 | |
Net cash used in financing activities | (3,361) | (1,862) | (5,883) | |
Effect of exchange rate changes on cash and cash equivalents | 89 | (76) | (255) | |
Cash and cash equivalents: | ||||
(Decrease)/increase | (980) | (129) | 239 | |
Balance at beginning of period | 1,741 | 1,870 | 1,631 | |
Balance at end of period | 761 | 1,741 | 1,870 | |
Cash paid: | ||||
Interest | 398 | 630 | 747 | |
Income taxes | $ 848 | $ 527 | $ 745 | |
[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. 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. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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 160 countries. Principles of Consolidation: The consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors’ interests in the results of subsidiaries that we control and consolidate. 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 under the equity method of accounting. On July 2, 2015, we contributed our global coffee businesses to a new company, Jacobs Douwe Egberts (“JDE”), in which we now hold an equity interest (collectively, the “JDE coffee business transactions”). Historically, our coffee businesses and the income from equity method investments were recorded within our operating income as these businesses were part of our base business. While we retain an ongoing interest in coffee through equity method investments including JDE, Keurig Green Mountain Inc. (“Keurig”) and Dongsuh Foods Corporation (“DSF”), and we have significant influence with our equity method investments, we do not control these operations directly. As such, in the third quarter of 2015, we began to recognize equity method investment earnings, consisting primarily of investments in coffee businesses, outside of operating income and segment income. For periods prior to the third quarter of 2015, our historical coffee business and equity method investment earnings were included within our operating income and segment income. (For the six months ended December 31, 2015, after-tax Divestitures and Acquisitions – JDE Coffee Business Transactions Keurig Transaction Planned Keurig Dr Pepper Transaction Segment Reporting We use the cost method of accounting for investments in which we do not exercise significant influence or control. Under the cost method of accounting, earnings are recognized to the extent cash is received. Use of Estimates: We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require us to make estimates and assumptions that affect a number of amounts in our consolidated financial statements. Significant accounting policy elections, estimates and assumptions include, among others, pension and benefit plan assumptions, valuation assumptions of goodwill and intangible assets, useful lives of long-lived assets, restructuring program liabilities, marketing program accruals, insurance and self-insurance reserves and income taxes. We base our estimates on historical experience and other assumptions that we believe are reasonable. If actual amounts differ from estimates, we include the revisions in our consolidated results of operations in the period the actual amounts become known. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a material effect on our consolidated financial statements. Segment Change On October 1, 2016, we integrated our Eastern Europe, Middle East, and Africa (“EEMEA”) operating segment into our Europe and Asia Pacific operating segments to further leverage and optimize the operating scale built within the Europe and Asia Pacific regions. Russia, Ukraine, Turkey, Belarus, Georgia and Kazakhstan were combined within our Europe region, while the remaining Middle East and African countries were combined within our Asia Pacific region to form a new Asia, Middle East and Africa (“AMEA”) operating segment. We have reflected the segment change as if it had occurred in all periods presented. As of October 1, 2016, our operations and management structure were 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. Highly inflationary accounting is triggered when a country’s three-year cumulative inflation rate exceeds 100%. It requires the remeasurement of financial statements of subsidiaries in the country, from the functional currency of the subsidiary to our U.S. dollar reporting currency, with currency remeasurement gains or losses recorded in earnings. In 2017, none of our consolidated subsidiaries were accounted for as highly inflationary economies. Argentina. Ukraine 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. The economic and regulatory 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, 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 the 2015 remeasurement losses, the deconsolidation loss and historical operating results and financial position of our Venezuelan subsidiaries for the period presented: For the Year Ended December 31, 2015 (in millions) Net revenues $ 1,217 Operating income (excluding remeasurement and deconsolidation loss) 266 Remeasurement loss in Q1 2015: 11.50 to 12.00 bolivars to the U.S. dollar (11 ) Loss on deconsolidation (778 ) As of December 31, 2015 (1) (in millions) Cash $ 611 Net monetary assets 405 Net assets 658 (1) Represents the financial position of our Venezuelan subsidiaries on December 31, 2015 prior to deconsolidation. Beginning in 2016, we no longer included 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. In early 2018, the profitability and cash flows of our local operations significantly deteriorated following the issuance of new government price controls. We are engaging with authorities on the pricing restrictions, however, if the situation is not resolved, it could significantly impede our ability to continue to operate in Venezuela. 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. 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 have historically annually tested goodwill and non-amortizable We assess goodwill impairment risk throughout the year by performing a qualitative review of entity-specific, industry, market and general economic factors affecting our goodwill reporting units. We review our operating segment and reporting unit structure for goodwill testing annually or as significant changes in the organization occur. Annually, we may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, we may elect to do quantitative testing instead. In our quantitative testing, we compare a reporting unit’s estimated fair value with its carrying value. We estimate a reporting unit’s fair value using a discounted cash flow method that incorporates planned growth rates, market-based discount rates and estimates of residual value. This year, for our Europe and North America reporting units, we used a market-based, weighted-average cost of capital of 7.2% to discount the projected cash flows of those operations. For our Latin America and AMEA reporting units, we used a risk-rated discount rate of 10.2%. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans, industry and economic conditions, and our actual results and conditions may differ over time. If the carrying value of a reporting unit’s net assets exceeds its fair value, we would recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. Annually we assess non-amortizable Insurance and Self-Insurance: We use a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability, product liability and our obligation for employee healthcare benefits. We estimate the liabilities associated with these risks on an undiscounted basis by evaluating and making judgments about historical claims experience and other actuarial assumptions and the estimated impact on future results. Revenue Recognition: We predominantly sell food and beverage products across several product categories and in all regions as disclosed in Note 16, Segment Reporting Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. We base these estimates principally on historical utilization and redemption rates. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. Key sales terms, such as pricing and quantities ordered, are established on a very frequent basis such that most customer arrangements and related incentives have a one year or shorter duration. As such, we do not capitalize contract inception costs and we capitalize product fulfillment costs in accordance with U.S. GAAP and our inventory policies. We do not have any significant unbilled receivables at the end of any period. Deferred revenues are not material and primarily include customer advance payments typically collected a few days before product delivery, at which time, deferred revenues are reclassified and recorded as net revenues. We generally do not receive noncash consideration for the sale of goods nor do we grant payment financing terms greater than one year. Marketing, Advertising and Research and Development: We promote our products with marketing and advertising programs. These programs include, but are not limited to, cooperative advertising, in-store year-end Stock-based Compensation: Stock-based compensation awarded to employees and non-employee 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 derivatives (mark-to-market Currency exchange derivatives (mark-to-market Financial Instruments 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 effects of deferred taxes and impacts from uncertain tax positions. We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of our assets and liabilities, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those differences are expected to reverse. The realization of certain deferred tax assets is dependent on generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. When assessing the need for a valuation allowance, we consider any carryback potential, future reversals of existing taxable temporary differences (including liabilities for unrecognized tax benefits), future taxable income and tax planning strategies. We recognize tax benefits in our financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained based on the technical merits of the position. The amount we recognize is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon resolution. Future changes related to the expected resolution of uncertain tax positions could affect tax expense in the period when the change occurs. We monitor for changes in tax laws and reflect the impacts of tax law changes in the period of enactment. In response to the United States tax reform legislation enacted on December 22, 2017 (“U.S. tax reform”), the U.S. Securities and Exchange Commission (“SEC”) issued guidance that allows us to record provisional amounts for the impacts of U.S. tax reform if the full accounting cannot be completed before we file our 2017 financial statements. For provisions of the tax law where we are unable to make a reasonable estimate of the impact, the guidance allows us to continue to apply the historical tax provisions in computing our income tax liability and deferred tax assets and liabilities as of December 31, 2017. The guidance also allows us to finalize accounting for the U.S. tax reform changes within one year of the December 22, Income Taxes New Accounting Pronouncements: In August 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) to simplify the application of hedge accounting and increase the transparency of hedge results. The updated standard changes how companies can assess the effectiveness of their hedging relationships. For cash flow and net investment hedges as of the adoption date, the ASU requires a modified retrospective transition approach. Presentation and disclosure requirements related to this ASU are required prospectively. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We intend to early adopt this standard in the first quarter of 2018 and we do not expect it to have a significant impact on our consolidated financial statements, including the cumulative-effect adjustment required upon adoption. In May 2017, the FASB issued an ASU to clarify when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The ASU is applied prospectively to awards that are modified on or after the adoption date. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We will adopt the standard on January 1, 2018 and we do not expect a material impact to our consolidated financial statements. In March 2017, the FASB issued an ASU to amend the amortization period for certain purchased callable debt securities held at a premium, shortening the period to the earliest call date instead of the maturity date. The standard does not impact securities held at a discount as the discount continues to be amortized to maturity. The ASU is applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We will adopt the standard on January 1, 2019. We do not expect a material impact to our consolidated financial statements. In March 2017, the FASB issued an ASU to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The standard requires employers to disaggregate the service cost component from the other components of net benefit cost and disclose the amount and location where the net benefit cost is recorded in the income statement or capitalized in assets. The standard is to be applied on a retrospective basis for the change in presentation in the income statement and prospectively for the change in presentation on the balance sheet. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We will adopt the standard on January 1, 2018. We will reclassify net benefit costs other than service costs below operating income, with no impact to our net earnings. For information on our service cost and other components of net periodic benefit cost for pension, postretirement benefit and postemployment plans, see Note 9, Benefit Plans In January 2017, the FASB issued an 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 will adopt this standard on January 1, 2018 and we do not expect a material impact to 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 will adopt this standard on January 1, 2018 and we do not expect a material impact on our consolidated statements of cash flows. 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 standard is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We will adopt this standard on January 1, 2018 and we do not expect a material impact to 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 will adopt this standard on January 1, 2018 and we do not expect a material impact to our consolidated financial statements. In February 2016, the FASB issued an ASU on lease accounting. The ASU revises existing U.S. GAAP and outlines a new model for lessors and lessees to use in accounting for lease contracts. The guidance requires lessees to recognize a right-of-use 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. We will adopt this standard on January 1, 2018 and we do not expect a material impact to 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 and 2017, the FASB issued several ASUs that clarified principal versus agent (gross versus net) revenue presentation considerations, confirmed the accounting for certain prepaid stored-value products and clarified the guidance for identifying performance obligations within a contract, the accounting for licenses and partial sales of nonfinancial assets. 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 adopted the new standard on January 1, 2018 on a full retrospective basis. There was no material financial impact from adopting the new revenue standards. |
Divestitures and Acquisitions
Divestitures and Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
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. Through March 7, 2016, we held a 43.5% interest in JDE. Following the March 7, 2016 exchange of a portion of our investment in JDE for an interest in Keurig, we held a 26.5% equity interest in JDE. (See discussion under Keurig Transaction JDE Stock-Based Compensation Arrangements The consideration we received in the JDE coffee business transactions completed on July 2, 2015 consisted of € 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 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. 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, share ownership dilution from the JDE Class C, D and E shareholders is limited to 2%. We retained our 26.5% voting rights and have a slightly lower portion of JDE’s profits and dividends than our shareholder ownership interest as certain employee shareholders receive a slightly larger share. 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%. 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 Planned Keurig Dr Pepper Transaction On January 29, 2018, we announced that we would exchange our ownership interest in Keurig for equity in Keurig Dr Pepper, which is contingent upon the successful completion of a planned merger of Keurig with Dr Pepper Snapple Group, Inc. Following the close of the merger in mid-2018, 13-14%. 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, 2017 2016 (in millions) Current assets $ 4,732 $ 4,458 Noncurrent assets 38,282 35,089 Total assets $ 43,014 $ 39,547 Current liabilities $ 5,822 $ 4,148 Noncurrent liabilities 15,424 16,472 Total liabilities $ 21,246 $ 20,620 Equity attributable to shareowners of investees $ 21,685 $ 18,868 Equity attributable to noncontrolling interests 83 59 Total net equity of investees $ 21,768 $ 18,927 Mondelēz International ownership interests 24-50% 24-50% Mondelēz International share of investee net equity (1) $ 5,905 $ 5,145 Keurig shareholder loan 440 440 Equity method investments $ 6,345 $ 5,585 For the Years Ended December 31, 2017 2016 2015 (in millions) Net revenues $ 12,781 $ 10,923 $ 4,993 Gross profit 4,891 4,219 1,551 Income from continuing operations 1,604 839 96 Net income 1,604 839 97 Net income attributable to investees $ 1,594 $ 838 $ 97 Mondelēz International ownership interests 24%-50% 24%-50% 40%-50% Mondelēz International share of investee net income $ 436 $ 281 $ 56 Keurig shareholder loan interest income 24 20 – Equity method investment net earnings (2) $ 460 $ 301 $ 56 (1) Includes approximately $360 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, Other Divestitures and Acquisitions On December 28, 2017, we completed the sale of a confectionery business in Japan. We received cash proceeds of ¥2.8 billion Japanese Yen ($24 million as of December 28, 2017) and recorded an immaterial pre-tax On October 2, 2017, we completed the sale of one of our equity method investments and received cash proceeds of $65 million. We recorded a pre-tax In connection with the 2012 spin-off KHC-owned € € On July 4, 2017, we completed the sale of most of our grocery business in Australia and New Zealand to Bega Cheese Limited for $456 million Australian dollars ($347 million as of July 4, 2017). We divested $27 million of current assets, $135 million of non-current pre-tax pre-tax On April 28, 2017, we completed the sale of several manufacturing facilities in France and the sale or license of several local confectionery brands. We received cash of approximately € non-current non-current 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 € € pre-tax On November 2, 2016, we purchased from Burton’s Biscuit Company certain intangibles, which included the license to manufacture, market and sell Cadbury-branded biscuits in additional key markets around the world, including in the United Kingdom, France, Ireland, North America and Saudi Arabia. The transaction was accounted for as a business combination. Total cash paid for the acquired assets was £199 million ($245 million as of November 2, 2016). During the third quarter of 2017, we completed the valuation work and finalized the purchase price allocation of $66 million to definite-lived intangible assets, $173 million to goodwill, $2 million to property, plant and equipment and $4 million to inventory, reflecting a November 2, 2016 exchange rate. The acquisition added incremental net revenues of $59 million in 2017 and $16 million in 2016 and added incremental operating income of $8 million in 2017 and $1 million in 2016. During the third quarter of 2016, we completed the acquisition of a Vietnamese biscuit operation within our AMEA segment. On July 15, 2015, we acquired an 80% interest in the biscuit operation and on August 22, 2016, we acquired the remaining 20% interest. Total cash paid for the biscuit operation, intellectual property, non-compete non-compete non-compete non-current Sales of Property: On November 9, 2016, we completed the sale of a manufacturing plant in Russia and recorded total expenses of $12 million, including a related fixed asset impairment charge of $4 million within asset impairments and exit costs. The sale of the land, buildings and equipment generated cash proceeds of $6 million. In 2016, we also sold property within our North America segment and from our centrally held corporate assets. In the third quarter of 2016, we sold property in North America that generated cash proceeds of $10 million and a pre-tax pre-tax pre-tax pre-tax |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of December 31, 2017 2016 (in millions) Raw materials $ 711 $ 722 Finished product 1,975 1,865 2,686 2,587 Inventory reserves (129 ) (118 ) Inventories, net $ 2,557 $ 2,469 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment Property, plant and equipment consisted of the following: As of December 31, 2017 2016 (in millions) Land and land improvements $ 458 $ 471 Buildings and building improvements 2,979 2,801 Machinery and equipment 11,195 10,302 Construction in progress 1,048 1,113 15,680 14,687 Accumulated depreciation (7,003 ) (6,458 ) Property, plant and equipment, net $ 8,677 $ 8,229 Capital expenditures as presented on the statement of cash flow were $1.0 billion, $1.2 billion and $1.5 billion for the years ending December 31, 2017, 2016 and 2015 and excluded $357 million, $343 million and $322 million for accrued capital expenditures not yet paid. In connection with our restructuring program, we recorded non-cash 2014-2018 Restructuring Program For the Years Ended December 31, 2017 2016 2015 (in millions) Latin America $ 36 $ 22 $ 46 AMEA 81 44 88 Europe 58 122 65 North America 30 111 65 Corporate 1 2 – Non-cash $ 206 $ 301 $ 264 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill by reportable operating segment was: As of December 31, 2017 2016 (in millions) Latin America $ 901 $ 897 AMEA 3,371 3,324 Europe 7,880 7,170 North America 8,933 8,885 Goodwill $ 21,085 $ 20,276 Intangible assets consisted of the following: As of December 31, 2017 2016 (in millions) Non-amortizable $ 17,671 $ 17,004 Amortizable intangible assets 2,386 2,315 20,057 19,319 Accumulated amortization (1,418 ) (1,218 ) Intangible assets, net $ 18,639 $ 18,101 Non-amortizable LU non-compete Amortization expense for intangible assets was $178 million in 2017, $176 million in 2016 and $181 million in 2015. For the next five years, we estimate annual amortization expense of approximately $175 million for the next three years and approximately $85 million in years four and five, reflecting December 31, 2017 exchange rates. Changes in goodwill and intangible assets consisted of: 2017 2016 Goodwill Intangible Goodwill Intangible (in millions) Balance at January 1 $ 20,276 $ 19,319 $ 20,664 $ 19,847 Changes due to: Currency 909 954 (464 ) (540 ) Divestitures (114 ) (100 ) (4 ) (8 ) Acquisitions 15 (7 ) 80 158 Asset impairments – (109 ) – (137 ) Other (1 ) – – (1 ) Balance at December 31 $ 21,085 $ 20,057 $ 20,276 $ 19,319 Changes to goodwill and intangibles were: • Divestitures – During 2017, in connection with the divestiture of several manufacturing facilities, primarily in France, we divested $23 million of goodwill and $62 million of amortizable and non-amortizable non-amortizable Divestitures and Acquisitions • Acquisitions – During 2017, we recorded a $15 million adjustment to goodwill and a $7 million adjustment to indefinite lived assets in connection with finalizing the valuation and purchase price allocation for the Burton’s Biscuit Company purchase completed in the fourth quarter of 2016. In connection with the completion of the purchase of a 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 • Asset impairments – We recorded $109 million of intangible asset impairments in 2017, $137 million in 2016 and $83 million in 2015. Charges related to our annual testing of non-amortizable Divestitures and Acquisitions – Other Divestitures and Acquisitions We have historically annually tested goodwill and non-amortizable In 2017, 2016 and 2015, there were no goodwill impairments and each of our reporting units had sufficient fair value in excess of its carrying value. While all reporting units passed our annual impairment testing, if planned business performance expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then the estimated fair values of a reporting unit or reporting units might decline and lead to a goodwill impairment in the future. During our 2017 annual testing of non-amortizable |
2014-2018 Restructuring Program
2014-2018 Restructuring Program | 12 Months Ended |
Dec. 31, 2017 | |
2014-2018 Restructuring Program | Note 6. 2014-2018 Restructuring Program On May 6, 2014, our Board of Directors approved a $3.5 billion restructuring program and up to $2.2 billion of capital expenditures. On August 31, 2016, our Board of Directors approved a $600 million reallocation between restructuring program cash costs and capital expenditures so that now the $5.7 billion program consists of approximately $4.1 billion of restructuring program costs ($3.1 billion cash costs and $1 billion non-cash one-time year-end Restructuring Costs We recorded restructuring charges of $535 million in 2017, $714 million in 2016 and $711 million in 2015 within asset impairment and exit costs. The 2014-2018 Restructuring Program liability activity for the years ended December 31, 2017 and 2016 was: Severance and related Asset costs Write-downs Total (in millions) Liability balance, January 1, 2016 $ 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 Charges 323 212 535 Cash spent (347 ) – (347 ) Non-cash (3 ) (212 ) (215 ) Currency 27 – 27 Liability balance, December 31, 2017 $ 464 $ – $ 464 We spent $347 million in 2017 and $315 million in 2016 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 $257 million in 2017, $372 million in 2016 and $291 million in 2015. We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs in Operating Income: During 2017, 2016 and 2015, and since inception of the 2014-2018 Restructuring Program, we recorded restructuring and implementation costs within operating income by segment (as revised to reflect our current segment structure) as follows: Latin North America AMEA Europe America (1) Corporate (2) Total (in millions) For the Year Ended December 31, 2017 Restructuring Costs $ 93 $ 141 $ 195 $ 94 $ 12 $ 535 Implementation Costs 43 43 68 58 45 257 Total $ 136 $ 184 $ 263 $ 152 $ 57 $ 792 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 Total Project 2014-2017 (3) Restructuring Costs $ 430 $ 448 $ 844 $ 448 $ 64 $ 2,234 Implementation Costs 152 129 272 253 221 1,027 Total $ 582 $ 577 $ 1,116 $ 701 $ 285 $ 3,261 (1) During 2017 and 2016, our North America region implementation costs included incremental costs that we incurred related to renegotiating 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. (2) Includes adjustment for rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through December 31, 2017. |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Amount Weighted- Amount Weighted- Outstanding Average Rate Outstanding Average Rate (in millions) (in millions) Commercial paper $ 3,410 1.7 % $ 2,371 1.0 % Bank loans 107 11.5 % 160 10.6 % Total short-term borrowings $ 3,517 $ 2,531 As of December 31, 2017, commercial paper issued and outstanding had between 2 and 75 days remaining to maturity. Commercial paper borrowings increased since the 2016 year-end Bank loans include borrowings on primarily uncommitted credit lines maintained by some of our international subsidiaries to meet short-term working capital needs. Collectively, these credit lines amounted to $2.0 billion at December 31, 2017 and $1.8 billion at December 31, 2016. Borrowings on these lines were $107 million at December 31, 2017 and $160 million at December 31, 2016. Borrowing Arrangements: On March 1, 2017, to supplement our commercial paper program, we entered into a $1.5 billion revolving credit agreement for a 364-day We also maintain a $4.5 billion multi-year senior unsecured revolving credit facility for general corporate purposes, including working capital needs, and to support our commercial paper program. On October 14, 2016, the revolving credit agreement, which was scheduled to expire on October 11, 2018, was extended through October 11, 2021. The revolving credit agreement includes a covenant that we maintain a minimum shareholders’ equity of at least $24.6 billion, excluding accumulated other comprehensive earnings/(losses) and the cumulative effects of any changes in accounting principles. At December 31, 2017, we complied with this covenant as our shareholders’ equity, as defined by the covenant, was $36.1 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, 2017, no amounts were drawn on the facility. Long-Term Debt: Our long-term debt consisted of (interest rates are as of December 31, 2017): As of December 31, 2017 2016 (in millions) U.S. dollar notes, 1.385% to 7.000% (weighted-average effective rate 3.414%), $ 8,327 $ 8,812 Euro notes, 1.000% to 2.375% (weighted-average effective rate 1.930%), 3,653 3,980 Pound sterling notes, 3.875% to 7.250% (weighted-average effective rate 4.441%), 456 418 Swiss franc notes, 0.050% to 1.125% (weighted-average effective rate 0.627%), 1,694 1,449 Capital leases and other obligations 5 9 Total 14,135 14,668 Less current portion of long-term (1,163 ) (1,451 ) Long-term debt $ 12,972 $ 13,217 Deferred debt issuance costs of $33 million as of December 31, 2017 and $40 million as of December 31, 2016 are netted against the related debt in the table above. Deferred financing costs related to our revolving credit facility are classified in long-term other assets and were immaterial for all periods presented. As of December 31, 2017, aggregate maturities of our debt and capital leases based on stated contractual maturities, excluding unamortized non-cash mark-to-market 2018 2019 2020 2021 2022 Thereafter Total $1,163 $2,651 $896 $3,373 $754 $5,362 $14,199 On April 12, 2017, we discharged $488 million of our 6.500% U.S. dollar-denominated debt. We paid $504 million, representing principal as well as past and future interest accruals from February 2017 through the August 2017 maturity date. We recorded an $11 million loss on debt extinguishment within interest expense and a $5 million reduction in accrued interest. On March 30, 2017, fr. fr On March 13, 2017, we launched an offering of fr • fr • fr On March 30, 2017, we received net proceeds of fr. On January 26, 2017, € 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 € Our weighted-average interest rate on our total debt was 2.1% as of December 31, 2017, 2.2% as of December 31, 2016 and 3.7% as of December 31, 2015. Fair Value of Our Debt: The fair value of our short-term borrowings at December 31, 2017 and December 31, 2016 reflects current market interest rates and approximates the amounts we have recorded on our consolidated balance sheets. The fair value of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations. At December 31, 2017, the aggregate fair value of our total debt was $18,354 million and its carrying value was $17,652 million. At December 31, 2016, the aggregate fair value of our total debt was $17,882 million and its carrying value was $17,199 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, 2017 2016 2015 (in millions) Interest expense, debt $ 396 $ 515 $ 609 Loss on debt extinguishment and related expenses 11 427 753 JDE coffee business transactions currency-related net gains – – (436 ) Loss related to interest rate swaps – 97 34 Other (income)/expense, net (25 ) 76 53 Interest and other expense, net $ 382 $ 1,115 $ 1,013 See Note 2, Divestitures and Acquisitions, Financial Instruments, Financial Instruments Commitments and Contingencies |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Asset Liability Asset Liability Derivatives Derivatives Derivatives Derivatives (in millions) Derivatives designated as Currency exchange contracts $ – $ – $ 19 $ 8 Commodity contracts – – 17 22 Interest rate contracts 15 509 108 19 $ 15 $ 509 $ 144 $ 49 Derivatives not designated as Currency exchange contracts $ 65 $ 76 $ 29 $ 43 Commodity contracts 84 229 112 167 Interest rate contracts 15 11 27 19 $ 164 $ 316 $ 168 $ 229 Total fair value $ 179 $ 825 $ 312 $ 278 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, 2017 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 $ (11 ) $ – $ (11 ) $ – Commodity contracts (145 ) (138 ) (7 ) – Interest rate contracts (490 ) – (490 ) – Total derivatives $ (646 ) $ (138 ) $ (508 ) $ – 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 $ – 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 $171 million as of December 31, 2017 and $133 million as of December 31, 2016 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 $34 million as of December 31, 2017 and $48 million as of December 31, 2016. As of December 31, 2017, we have no Level 1 derivatives in a net liability position, and as of December 31, 2016 we would have owed $2 million for 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, 2017 2016 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 7,089 $ 3,343 Forecasted transactions 2,213 1,452 Commodity contracts 1,204 837 Interest rate contracts 6,532 6,365 Net investment hedge – euro notes 3,679 4,012 Net investment hedge – pound sterling notes 459 419 Net investment hedge – Swiss franc notes 1,694 1,447 Cash Flow Hedges: Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included: For the Years Ended December 31, 2017 2016 2015 (in millions) Accumulated (loss)/gain at beginning of period $ (121 ) $ (45 ) $ (2 ) Transfer of realized (gains)/losses in fair value to earnings 27 53 – Unrealized gain/(loss) in fair value (19 ) (129 ) (43 ) Accumulated (loss)/gain at end of period $ (113 ) $ (121 ) $ (45 ) After-tax For the Years Ended December 31, 2017 2016 2015 (in millions) Currency exchange contracts – forecasted transactions $ (3 ) $ (1 ) $ 83 Commodity contracts (24 ) (4 ) (52 ) Interest rate contracts – (48 ) (31 ) Total $ (27 ) $ (53 ) $ – After-tax For the Years Ended December 31, 2017 2016 2015 (in millions) Currency exchange contracts – forecasted transactions $ (38 ) $ 8 $ 40 Commodity contracts 7 (34 ) (35 ) Interest rate contracts 12 (103 ) (48 ) Total $ (19 ) $ (129 ) $ (43 ) Cash flow hedge ineffectiveness was not material for all periods presented. Within interest and other expense, net, we recorded pre-tax We record pre-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 unrealized losses of $1 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. Cash Flow Hedge Coverage: As of December 31, 2017, our longest dated cash flow hedges are interest rate swaps that hedge forecasted interest rate payments over the next 5 years and 10 months. Fair Value Hedges: Pre-tax For the Years Ended December 31, 2017 2016 2015 (in millions) Derivatives $ (4 ) $ (6 ) $ (1 ) Borrowings 4 6 1 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, Recognized 2017 2016 2015 in Earnings (in millions) Currency exchange contracts: Intercompany loans and $ 13 $ 21 $ 29 Interest and other Forecasted transactions (37 ) (76 ) 29 Cost of sales Forecasted transactions (2 ) 11 435 Interest and other expense, net Forecasted transactions 3 7 (12 ) Selling, general Commodity contracts (218 ) (101 ) (38 ) Cost of sales Total $ (241 ) $ (138 ) $ 443 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 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) 2017 2016 2015 Recognized in AOCI (in millions) Euro notes $ (323 ) $ 73 $ 268 Currency Pound sterling notes (26 ) 148 42 Translation Swiss franc notes (49 ) 12 9 Adjustment Through February 8, 2018, we entered into cross-currency interest rate swaps and forwards with an aggregate notional value of $3.2 billion to hedge our non-U.S. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Benefit Plans | Note 9. Benefit Plans Pension Plans Obligations and Funded Status: The projected benefit obligations, plan assets and funded status of our pension plans were: U.S. Plans Non-U.S. 2017 2016 2017 2016 (in millions) Projected benefit obligation at January 1 $ 1,614 $ 1,566 $ 9,814 $ 9,547 Service cost 46 57 156 147 Interest cost 62 61 199 229 Benefits paid (32 ) (32 ) (471 ) (425 ) Settlements paid (111 ) (91 ) – – Actuarial losses 179 52 180 1,284 Divestiture – – (14 ) (5 ) Currency – – 976 (979 ) Other 4 1 12 16 Projected benefit obligation at December 31 1,762 1,614 10,852 9,814 Fair value of plan assets at January 1 1,620 1,247 7,926 7,721 Actual return on plan assets 217 118 592 1,079 Contributions 23 378 482 419 Benefits paid (32 ) (32 ) (471 ) (425 ) Settlements paid (111 ) (91 ) – – Divestiture – – – (4 ) Currency – – 798 (863 ) Other – – – (1 ) Fair value of plan assets at December 31 1,717 1,620 9,327 7,926 Net pension (liabilities)/assets at December 31 $ (45 ) $ 6 $ (1,525 ) $ (1,888 ) The accumulated benefit obligation, which represents benefits earned to the measurement date, was $1,715 million at December 31, 2017 and $1,540 million at December 31, 2016 for the U.S. pension plans. The accumulated benefit obligation for the non-U.S. Salaried and non-union non-union The combined U.S. and non-U.S. As of December 31, 2017 2016 (in millions) Prepaid pension assets $ 158 $ 159 Other current liabilities (59 ) (27 ) Accrued pension costs (1,669 ) (2,014 ) $ (1,570 ) $ (1,882 ) Certain of our U.S. and non-U.S. U.S. Plans Non-U.S. As of December 31, As of December 31, 2017 2016 2017 2016 (in millions) Projected benefit obligation $ 94 $ 96 $ 9,345 $ 8,386 Accumulated benefit obligation 90 88 9,138 8,168 Fair value of plan assets 2 2 7,709 6,451 We used the following weighted-average assumptions to determine our benefit obligations under the pension plans: U.S. Plans Non-U.S. As of December 31, As of December 31, 2017 2016 2017 2016 (in millions) Discount rate 3.68% 4.19% 2.20% 2.31% Expected rate of return on plan assets 5.50% 6.25% 4.90% 5.14% Rate of compensation increase 4.00% 4.00% 3.31% 3.29% Year-end Year-end non-U.S. 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, 2017 2016 2015 2017 2016 2015 (in millions) Service cost $ 46 $ 57 $ 64 $ 156 $ 147 $ 188 Interest cost 62 61 67 199 229 307 Expected return on plan assets (101 ) (97 ) (93 ) (434 ) (418 ) (478 ) Amortization: Net loss from experience differences 37 42 43 167 120 141 Prior service cost/(benefit) (1) 2 2 2 (3 ) (3 ) 15 Settlement losses and other expenses (2) 35 30 19 6 6 2 Net periodic pension cost $ 81 $ 95 $ 102 $ 91 $ 81 $ 175 (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 $11 million for the year ended December 31, 2017, $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. non-U.S. 2014-2018 Restructuring Program 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, 2017, for the combined U.S. and non-U.S. • an estimated $209 million of net loss from experience differences; and • less than $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, 2017 2016 2015 2017 2016 2015 Discount rate 4.19% 4.50% 4.20% 2.31% 3.11% 2.99% Expected rate of return 6.25% 6.75% 7.25% 5.14% 5.87% 5.96% Rate of compensation increase 4.00% 4.00% 4.00% 3.29% 3.18% 3.26% Plan Assets: The fair value of pension plan assets was determined using the following fair value measurements: As of December 31, 2017 Quoted Prices Significant in Active Markets Other Significant for Identical Observable Unobservable Total Fair Assets Inputs Inputs Asset Category Value (Level 1) (Level 2) (Level 3) (in millions) U.S. equity securities $ 2 $ 2 $ – $ – Non-U.S. 5 5 – – Pooled funds - equity securities 2,340 848 1,492 – Total equity securities 2,347 855 1,492 – Government bonds 3,237 34 3,203 – Pooled funds - fixed-income securities 602 449 153 – Corporate bonds and other 2,102 133 1,179 790 Total fixed-income securities 5,941 616 4,535 790 Real estate 156 120 13 23 Private equity 2 – – 2 Cash 86 66 20 – Other 2 1 – 1 Total assets in the fair value hierarchy $ 8,534 $ 1,658 $ 6,060 $ 816 Investments measured at net asset value 2,439 Total investments at fair value $ 10,973 As of December 31, 2016 Quoted Prices Significant in Active Markets Other Significant for Identical Observable Unobservable Total Fair Assets Inputs Inputs Asset Category Value (Level 1) (Level 2) (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 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 We excluded plan assets of $71 million at December 31, 2017 and $62 million at December 31, 2016 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 private debt placements are calculated using standardized valuation methods, including but not limited to income-based techniques such as discounted cash flow projections or market-based techniques utilizing public and private transaction multiples as comparables. • Fair value estimates for real estate investments are calculated by 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 certain fixed-income securities such as insurance contracts are calculated based on the future stream of benefit payments discounted using prevailing interest rates based on the valuation date. • Net asset value – primarily includes equity funds, fixed income funds, real estate funds, hedge funds and private equity investments for which net asset values are normally used. Changes in our Level 3 plan assets, which are recorded in other comprehensive earnings/(losses), included: Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Non-U.S. $ 3 $ – $ – $ (3 ) $ – $ – Pooled funds- 35 – (16 ) (21 ) 2 – Corporate bond and other 538 10 182 – 60 790 Real estate 22 1 – – – 23 Private equity and other 4 – – (1 ) – 3 Total Level 3 investments $ 602 $ 11 $ 166 $ (25 ) $ 62 $ 816 Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Non-U.S. $ – $ – $ – $ 3 $ – $ 3 Pooled funds- 26 6 15 (7 ) (5 ) 35 Corporate bond and other 665 21 (41 ) – (107 ) 538 Real estate 230 – (184 ) (3 ) (21 ) 22 Private equity and other 3 – – 1 – 4 Total Level 3 investments $ 924 $ 27 $ (210 ) $ (6 ) $ (133 ) $ 602 The increases in Level 3 pension plan investments during 2017 were primarily due to net purchases in corporate bonds and other fixed income securities, which includes private debt placements, and the effects of currency. 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 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 2017 2016 2017 2016 Equity securities 15% 33% 28% 29% Fixed-income securities 85% 63% 60% 57% Real estate – 4% 6% 5% Hedge funds – – 4% 6% Private equity – – 1% 2% Cash – – 1% 1% Total 100% 100% 100% 100% For our U.S. plans, our investment strategy is to reduce the risk of underfunded plans in part through appropriate asset allocation within our plan assets. We attempt to maintain our target asset allocation by rebalancing between asset classes as we make contributions and monthly benefit payments. The strategy involves using indexed U.S. equity and international equity securities and actively managed U.S. investment grade fixed-income securities (which constitute 95% or more of fixed-income securities) with smaller allocations to high yield fixed-income securities. For our non-U.S. non-U.S. non-U.S. non-U.S. buy-in Employer Contributions: In 2017, we contributed $23 million to our U.S. pension plans and $470 million to our non-U.S. non-U.S. non-recurring non-U.S. In 2018, we estimate that our pension contributions will be $39 million to our U.S. plans and $250 million to our non-U.S. Future Benefit Payments: The estimated future benefit payments from our pension plans at December 31, 2017 were (in millions): 2018 2019 2020 2021 2022 2023-2027 U.S. Plans $ 120 $ 83 $ 89 $ 93 $ 93 $ 498 Non-U.S. 375 375 387 409 409 2,196 Multiemployer Pension Plans: In accordance with obligations we have under collective bargaining agreements, we made contributions to multiemployer pension plans of $26 million in 2017, $25 million in 2016 and $31 million in 2015. There are risks of participating in multiemployer pension plans that are different from single employer plans. Contributions made by a participating employer are not segregated to be used to provide benefits for participants related to that participating employer. If a participating employer stops contributing to the plan, the unfunded vested obligations of the plan are borne by the remaining participating employers. The only individually significant multiemployer plan we participate in as of December 31, 2017 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 2017, 2016 and 2015. Our contributions to the Fund were $22 million in 2017, $21 million in 2016 and $27 million in 2015. Our contributions to other multiemployer pension plans that were not individually significant were $4 million in 2017, $4 million in 2016 and $4 million in 2015. 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. As of August 28, 2016, the 10% surcharge was no longer applicable and we were required to pay higher contributions under the Fund’s rehabilitation plan. Although our collective bargaining agreements with the Fund expired during 2016 and while we continue to renegotiate the agreements, we continue to make contributions to the Fund. 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, 2017 2016 (in millions) Accrued benefit obligation at January 1 $ 394 $ 511 Service cost 7 12 Interest cost 15 20 Benefits paid (15 ) (14 ) Plan amendments (1) – (149 ) Currency 8 3 Assumption changes 30 34 Actuarial losses/(gains) (4 ) (23 ) Accrued benefit obligation at December 31 $ 435 $ 394 (1) Plan amendments in 2016 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 $16 million at December 31, 2017 and $12 million at December 31, 2016 was included in other current liabilities. We used the following weighted-average U.S. Plans Non-U.S. As of December 31, As of December 31, 2017 2016 2017 2016 Discount rate 3.66% 4.14% 4.24% 4.55% Health care cost trend rate assumed for next year 6.25% 6.50% 5.56% 5.50% Ultimate trend rate 4.81% 5.00% 5.56% 5.68% Year that the rate reaches the ultimate trend rate 2024 2020 2018 2018 Year-end fixed-income Year-end non-U.S. At the end of 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, 2017 One-Percentage-Point Increase Decrease (in millions) Effect on postretirement benefit obligation $ 49 $ (40 ) 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, 2017 2016 2015 (in millions) Service cost $ 7 $ 12 $ 15 Interest cost 15 20 22 Amortization: Net loss from experience differences 14 10 13 Prior service credit (1) (40 ) (20 ) (7 ) Net periodic postretirement health care costs $ (4 ) $ 22 $ 43 (1) In the fourth quarter of 2016, the prior service credit included a one-time As of December 31, 2017, we expected to amortize from accumulated other comprehensive earnings/(losses) into pre-tax • an estimated $18 million of net loss from experience differences, and • an estimated $39 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, 2017 2016 2015 2017 2016 2015 Discount rate 4.14% 4.60% 4.20% 4.55% 4.77% 4.52% Health care cost trend rate 6.50% 6.50% 6.50% 5.50% 5.50% 5.18% Future Benefit Payments: Our estimated future benefit payments for our postretirement health care plans at December 31, 2017 were (in millions): 2018 2019 2020 2021 2022 2023-2027 U.S. Plans $ 11 $ 12 $ 13 $ 15 $ 16 $ 85 Non-U.S. 5 5 6 6 6 55 Other Costs: We made contributions to multiemployer medical plans totaling $18 million in 2017, $19 million in 2016 and $20 million in 2015. 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, 2017 and 2016 were: As of December 31, 2017 2016 (in millions) Accrued benefit obligation at January 1 $ 71 $ 95 Service cost 5 7 Interest cost 4 6 Benefits paid (6 ) (9 ) Assumption changes – (21 ) Actuarial losses/(gains) 2 (7 ) Accrued benefit obligation at December 31 $ 76 $ 71 The accrued benefit obligation was determined using a weighted-average discount rate of 6.5% in 2017 and 6.2% in 2016, an assumed weighted-average ultimate annual turnover rate of 0.3% in 2017 and 2016, assumed compensation cost increases of 4.0% in 2017 and 2016 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, 2017 2016 2015 (in millions) Service cost $ 5 $ 7 $ 7 Interest cost 4 6 5 Amortization of net gains (3 ) (1 ) – Net periodic postemployment costs $ 6 $ 12 $ 12 As of December 31, 2017, 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 2018 was approximately $3 million. |
Stock Plans
Stock Plans | 12 Months Ended |
Dec. 31, 2017 | |
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 methodology to measure stock option expense at the date of grant. The fair value of the stock options at the date of grant is amortized to expense over the vesting period. We recorded compensation expense related to stock options held by our employees of $50 million in 2017, $57 million in 2016 and $50 million in 2015 in our results from continuing operations. The deferred tax benefit recorded related to this compensation expense was $12 million in 2017, $15 million in 2016 and $13 million in 2015. The unamortized compensation expense related to our employee stock options was $44 million at December 31, 2017 and is expected to be recognized over a weighted-average period of 1.2 years. Our weighted-average Black-Scholes fair value assumptions were: Risk-Free Expected Life Expected Expected Fair Value 2017 2.04 % 6 years 22.75 % 1.74 % $ 8.57 2016 1.40 % 6 years 23.11 % 1.61 % $ 7.86 2015 1.70 % 6 years 18.51 % 1.61 % $ 6.12 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, 2015 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 57,034,108 26.12 $ 1,068 million Annual grant to eligible employees 7,517,290 39.70 Additional options issued 115,800 42.26 Total options granted 7,633,090 39.74 Options exercised (1) (8,883,101 ) 24.09 $ 174 million Options cancelled (2,182,485 ) 35.23 Balance at December 31, 2016 53,601,612 28.02 $ 874 million Annual grant to eligible employees 6,012,140 43.20 Additional options issued 162,880 42.54 Total options granted 6,175,020 43.18 Options exercised (1) (9,431,009 ) 26.17 $ 170 million Options cancelled (1,910,968 ) 38.10 Balance at December 31, 2017 48,434,655 29.92 5 years $ 626 million Exercisable at December 31, 2017 37,240,858 26.58 4 years $ 604 million (1) Cash received from options exercised was $257 million in 2017, $221 million in 2016 and $148 million in 2015. The actual tax benefit realized for the tax deductions from the option exercises totaled $31 million in 2017, $31 million in 2016 and $58 million in 2015. Deferred Stock Units, Performance Share Units and Restricted Stock: Historically we have made grants of deferred stock units, performance share units and restricted stock. Beginning in 2016, we only grant deferred stock units and performance share units and no longer grant restricted stock. We may grant shares of deferred stock units to eligible employees, giving them, in most instances, all of the rights of shareholders, except that they may not sell, assign, pledge or otherwise encumber the shares and our deferred stock units do not have voting rights until vested. Shares of deferred stock units are subject to forfeiture if certain employment conditions are not met. Deferred stock units generally vest on the third anniversary of the grant date. Performance share units granted under our 2005 Plan vest based on varying performance, market and service conditions. The unvested performance share units have no voting rights and do not pay dividends. Dividend equivalents accumulated over the vesting period are paid only after the performance share units vest. The fair value of the deferred stock units, performance share units and restricted stock at the date of grant is amortized to earnings over the vesting period. The fair value of our deferred stock units and restricted stock is measured at the market price of our Common Stock on the grant date. Performance share unit awards generally have targets tied to both performance and market-based conditions. For market condition components, market volatility and other factors are taken into consideration in determining the grant date fair value and the related compensation expense is recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. For performance condition components, we estimate the probability that the performance conditions will be achieved each quarter and adjust compensation expenses accordingly. The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the market price of our Common Stock on the grant date for performance-based components. The number of performance share units that ultimately vest ranges from 0-200 percent Our performance share unit, deferred stock unit and restricted stock activity is reflected below: Weighted-Average Weighted-Average Number Fair Value Aggregate of Shares Grant Date Per Share (4) Fair Value (4) Balance at January 1, 2015 10,582,640 $ 28.86 Annual grant to eligible employees: Feb. 18, 2015 Performance share units 1,598,290 38.81 Restricted stock 386,910 36.94 Deferred stock units 866,640 36.94 Additional shares granted (1) 1,087,322 Various 36.00 Total shares granted 3,939,162 37.44 $ 147 million Vested (2) (3,905,745 ) 24.66 $ 96 million Forfeited (2) (1,197,841 ) 32.63 Balance at December 31, 2015 9,418,216 33.71 Annual grant to eligible employees: Feb. 22, 2016 Performance share units 1,406,500 34.35 Deferred stock units 1,040,790 39.70 Additional shares granted (3) 864,851 Various 32.90 Total shares granted 3,312,141 35.65 $ 118 million Vested (2) (3,992,902 ) 28.15 $ 112 million Forfeited (2) (1,143,828 ) 37.58 Balance at December 31, 2016 7,593,627 36.90 Annual grant to eligible employees: Feb. 16, 2017 Performance share units 1,087,010 43.14 Deferred stock units 845,550 43.20 Additional shares granted (3) 1,537,763 Various 42.22 Total shares granted 3,470,323 42.75 $ 148 million Vested (2) (2,622,807 ) 35.78 $ 94 million Forfeited (2) (771,438 ) 38.69 Balance at December 31, 2017 7,669,705 39.74 (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 $7 million in 2017, $18 million in 2016 and $18 million in 2015. (3) Includes performance share units and deferred stock units. (4) Performance share units reflect grant date fair values. Prior-year weighted average fair value per share has been revised. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017, 2016 and 2015. Shares of Common Stock issued, in treasury and outstanding were: Shares Shares Issued Treasury Shares Outstanding Balance at January 1, 2015 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 Shares repurchased – (50,598,902 ) (50,598,902 ) Exercise of stock options and issuance of – 10,369,445 10,369,445 Balance at December 31, 2017 1,996,537,778 (508,401,694 ) 1,488,136,084 Stock plan awards to employees and non-employee Share Repurchase Program: Between 2013 and 2017, our Board of Directors authorized the repurchase of a total of $13.7 billion of our Common Stock through December 31, 2018. On January 31, 2018, our Finance Committee, with authorization delegated from our Board of Directors, approved an increase of $6.0 billion in the share repurchase program, raising the authorization to $19.7 billion of Common Stock repurchases, and extended the program through December 31, 2020. Repurchases under the program are determined by management and are wholly discretionary. Prior to January 1, 2017, we had repurchased approximately $10.8 billion of Common Stock pursuant to this authorization. During 2017, we repurchased approximately 50.6 million shares of Common Stock at an average cost of $43.51 per share, or an aggregate cost of approximately $2.2 billion, all of which was paid during the period except for approximately $28 million settled in January 2018. All share repurchases were funded through available cash and commercial paper issuances. As of December 31, 2017, we have approximately $0.6 billion in remaining share repurchase capacity. As of January 31, 2018, subsequent to approximately $0.1 billion of share repurchases in January, our remaining share repurchase capacity was $6.5 billion. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Legal Proceedings: We are subject to legal proceedings, claims and governmental inspections or investigations incidental to our business, including those specified below. 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 ($59 million as of December 31, 2017) 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 ($91 million as of December 31, 2017). We have appealed this order. In addition, the Excise Authority issued additional show cause notices in February 2015, December 2015 and October 2017 on the same issue but covering the periods January to October 2014, November 2014 to September 2015 and October 2015 to June 2017, respectively. These notices added a total of 4.9 billion Indian rupees ($77 million as of December 31, 2017) of unpaid excise taxes as well as penalties to be determined up to an amount equivalent to that claimed by the Excise Authority plus interest. With the implementation of the new Goods and Services Tax in India in July 2017, we will not receive any further show cause notices for additional amounts on this issue. We believe that the decision to claim the excise tax benefit is valid and we are continuing to contest the show cause notices through the administrative and judicial process. 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 We are a party to various legal proceedings incidental to our business, including those noted above in this section. At present we believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations or cash flows. However, legal proceedings and government investigations are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial monetary damages. In addition, in matters for which conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices or requiring other remedies. An unfavorable outcome might result in a material adverse impact on our business, results of operations or financial position. Third-Party Guarantees: We enter into third-party guarantees primarily to cover long-term obligations of our vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures. At December 31, 2017, we had no material third-party guarantees recorded on our consolidated balance sheet. Tax Matters: As part of our 2010 Cadbury acquisition, we became the responsible party for tax matters under a February 2, 2006 dated Deed of Tax Covenant between the Cadbury Schweppes PLC and related entities (“Schweppes”) and Black Lion Beverages and related entities. The tax matters included an ongoing transfer pricing case with the Spanish tax authorities related to the Schweppes businesses Cadbury divested prior to our acquisition of Cadbury. During the first quarter of 2017, the Spanish Supreme Court decided the case in our favor. As a result of the final ruling, during the first quarter of 2017, we recorded a favorable earnings impact of $46 million in selling, general and administrative expenses and $12 million in interest and other expense, net, for a total pre-tax non-cash During the first quarter of 2017, the Brazilian Supreme Court (the “Court”) ruled against the Brazilian tax authorities in a leading case related to the computation of certain indirect taxes. The Court ruled that the indirect tax base should not include a value-added tax known as “ICMS”. By removing the ICMS from the tax base, the Court effectively eliminated a “tax on a tax.” Our Brazilian subsidiary had received an injunction against making payments for the “tax on a tax” in 2008 and since that time until December 2016, had accrued this portion of the tax each quarter in the event that the tax was reaffirmed by the Brazilian courts. On September 30, 2017, based on legal advice and the publication of the Court’s decision related to this case, we determined that the likelihood that the increased tax base would be reinstated and assessed against us was remote. Accordingly, we reversed our accrual of 667 million Brazilian reais, or $212 million as of September 30, 2017, of which, $153 million was recorded within selling, general and administrative expenses and $59 million was recorded within interest and other expense, net. The Brazilian tax authority is seeking potential clarification or adjustment of the terms of enforcement with the Court. We continue to monitor developments in this matter and currently do not expect a material future impact on our financial statements. Leases: Rental expenses recorded in continuing operations were $284 million in 2017, $317 million in 2016 and $331 million in 2015. As of December 31, 2017, minimum rental commitments under non-cancelable year-end 2018 2019 2020 2021 2022 Thereafter Total $ 245 $ 202 $ 150 $ 102 $ 67 $ 154 $ 920 |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
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 $174 million in 2017, $250 million in 2016 and $350 million in 2015. For the Years Ended December 31, 2017 2016 2015 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (8,914 ) $ (8,006 ) $ (5,042 ) Currency translation adjustments 987 (847 ) (2,905 ) Reclassification to earnings related to: Venezuela deconsolidation – – 99 Equity method investment transactions – 57 – Tax (expense)/benefit 214 (135 ) (184 ) Other comprehensive earnings/(losses) 1,201 (925 ) (2,990 ) Less: (earnings)/loss attributable to noncontrolling interests (28 ) 17 26 Balance at end of period (7,741 ) (8,914 ) (8,006 ) Pension and Other Benefit Plans: Balance at beginning of period $ (2,087 ) $ (1,934 ) $ (2,274 ) Net actuarial gain/(loss) arising during period (71 ) (491 ) (60 ) Tax (expense)/benefit on net actuarial gain/(loss) 50 70 3 Losses/(gains) reclassified into net earnings: Amortization of experience losses and (1) 174 150 207 Settlement losses (1) 38 36 111 Venezuela deconsolidation – – 2 Tax (expense)/benefit on reclassifications (2) (65 ) (46 ) (69 ) Currency impact (183 ) 128 146 Other comprehensive earnings/(losses) (57 ) (153 ) 340 Balance at end of period (2,144 ) (2,087 ) (1,934 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (121 ) $ (46 ) $ (2 ) Net derivative gains/(losses) (17 ) (151 ) (75 ) Tax (expense)/benefit on net derivative gain/(loss) 9 20 30 Losses/(gains) reclassified into net earnings: Currency exchange contracts - (3) 4 3 (90 ) Commodity contracts (3) 29 9 64 Interest rate contracts (4) – 83 47 Tax (expense)/benefit on reclassifications (2) (6 ) (42 ) (21 ) Currency impact (11 ) 3 1 Other comprehensive earnings/(losses) 8 (75 ) (44 ) Balance at end of period (113 ) (121 ) (46 ) Accumulated other comprehensive income attributable Balance at beginning of period $ (11,122 ) $ (9,986 ) $ (7,318 ) Total other comprehensive earnings/(losses) 1,152 (1,153 ) (2,694 ) Less: (earnings)/loss attributable to noncontrolling interests (28 ) 17 26 Other comprehensive earnings/(losses) 1,124 (1,136 ) (2,668 ) Balance at end of period $ (9,998 ) $ (11,122 ) $ (9,986 ) (1) These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans (2) Taxes reclassified to earnings are recorded within the provision for income taxes. (3) These reclassified gains or losses are recorded within cost of sales. (4) These reclassified losses are recorded within interest and other expense, net. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes | Note 14. Income Taxes On December 22, 2017, new U.S. tax reform legislation was enacted that included a broad range of complex provisions impacting the taxation of businesses. Certain impacts of the new legislation would generally require accounting to be completed in the period of enactment, however in response to the complexities of this new legislation, the SEC issued guidance to provide companies with relief. Specifically, when the initial accounting for items under the new legislation is incomplete, the guidance allows us to recognize provisional amounts when reasonable estimates can be made or to continue to apply the prior tax law if a reasonable estimate of the impact cannot be made. The SEC has provided up to a one-year While our accounting for the new U.S. tax legislation is not complete, we have made reasonable estimates for some provisions and recognized a $59 million discrete net tax benefit in our 2017 financial statements. This net benefit is primarily comprised of a $1,311 million provisional deferred tax benefit from revaluing our net U.S. deferred tax liabilities to reflect the new U.S. corporate tax rate as well as an additional $61 million provisional deferred tax benefit related to changes in our indefinite reinvestment assertion, partially offset by a $1,317 million provisional charge for the estimated transition tax. In general, the transition tax is as a result of the deemed repatriation imposed by the new legislation that results in the taxation of our accumulated foreign earnings and profits (“E&P”) at a 15.5% rate on liquid assets (i.e. cash and other specified assets) and 8% on the remaining unremitted foreign E&P, both net of foreign tax credits. At this time, we have not yet gathered, prepared and analyzed the necessary information in sufficient detail to complete the complex calculations necessary to finalize the amount of our transition tax. We believe that our provisional calculations result in a reasonable estimate of the transition tax and related foreign tax credit, and as such have included those amounts in our year-end Our estimate of the deferred tax benefit due to the revaluation of our net U.S. deferred tax liabilities is also a provisional amount under the SEC’s guidance. Due to the newly enacted U.S. tax rate change, timing differences that are estimated balances as of the date of enactment and year-end year-end As a result of U.S. tax reform, we have changed our indefinite reinvestment assertion for most companies owned directly by our U.S. subsidiaries, and as such, we may need to accrue deferred taxes. As of year end, we have calculated the impact to accrue the deferred tax assets related to two entities where the deferred tax benefits are now expected to be realized in the foreseeable future. However, we do not have the necessary information gathered, prepared and analyzed to make a reasonable estimate of the impact of any remaining outside basis differences inherent in the rest of our foreign subsidiaries. We will gather the information necessary and compute the outside basis differences for those subsidiaries where we are no longer indefinitely reinvested and record any new deferred taxes as reasonable estimates are available. We estimate that the unremitted earnings as of December 31, 2017 in those subsidiaries where we expect to continue to be indefinitely reinvested is approximately $2 billion. It is impracticable for us to determine the amount of unrecognized deferred tax liabilities on these indefinitely reinvested earnings. Future tax law changes or changes in the needs of our non-U.S. subsidiaries could require us to recognize deferred tax liabilities on a portion, or all, of our accumulated earnings that were previously expected to be indefinitely reinvested. The legislation also establishes new provisions that will affect our 2018 results, including but not limited to, a reduction in the U.S. corporate tax rate on domestic operations; the creation of a new minimum tax called the base erosion anti-abuse tax (BEAT); a new provision that taxes U.S. allocated expenses (e.g. interest and general administrative expenses) as well as currently taxes certain income from foreign operations (Global Intangible Low-Tax While the new legislation generally eliminates U.S. federal income tax on dividends from foreign subsidiaries going forward, certain income earned by certain subsidiaries must be included currently in our U.S. taxable income under the new GILTI inclusion rules (as a result of U.S. expense allocation rules). Because of the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the legislation and the application of U.S. GAAP. Under U.S. GAAP, we are allowed to make an accounting policy election and either treat taxes due from GILTI as a current-period expense when they are incurred or factor such amounts into our measurement of deferred taxes. Our selection of an accounting policy with respect to the new GILTI rules will depend in part on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI, and if so, what the impact is expected to be. We have not yet computed a reasonable estimate of the effect of this provision, and therefore, we have not made a policy decision regarding whether to record deferred taxes related to GILTI nor have we made any adjustments related to GILTI tax in our year-end Earnings/(losses) from continuing operations before income taxes and the provision for income taxes consisted of: For the Years Ended December 31, 2017 2016 2015 (in millions) Earnings/(losses) from continuing operations United States $ 354 $ (364 ) $ 43 Outside United States 2,770 1,818 7,841 Total $ 3,124 $ 1,454 $ 7,884 Provision for income taxes: United States federal: Current $ 1,322 $ (227 ) $ (90 ) Deferred (1,256 ) 141 136 66 (86 ) 46 State and local: Current 33 7 6 Deferred 33 8 (3 ) 66 15 3 Total United States 132 (71 ) 49 Outside United States: Current 541 490 707 Deferred 15 (290 ) (163 ) Total outside United States 556 200 544 Total provision for income taxes $ 688 $ 129 $ 593 We recorded an out-of-period The effective income tax rate on pre-tax For the Years Ended December 31, 2017 2016 2015 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 0.8% 0.8% (0.1)% Foreign rate differences (10.8)% (18.6)% (2.5)% Changes in judgment on realizability of deferred tax assets 3.2% – – Reversal of other tax accruals no longer required (1.7)% (7.7)% (1.4)% Tax accrual on investment in Keurig 2.7% 2.3% – Excess tax benefits from equity compensation (1.2)% – – Tax legislation (non-U.S. (2.7)% (4.0)% (0.5)% U.S. tax reform - deferred benefit from tax rate change (42.0)% – – U.S. tax reform - transition tax 42.2% – – U.S. tax reform - changes in indefinite reinvestment assertion (2.0)% – – Gains on coffee business transactions and divestitures – – (26.9)% Business sales (0.9)% – – Loss on deconsolidation of Venezuela – – 3.5% Non-deductible 0.4% 0.9% 0.3% Other (1.0)% 0.2% 0.1% Effective tax rate 22.0% 8.9% 7.5% Our 2017 effective tax rate of 22.0% was favorably impacted by the mix of pre-tax non-U.S. one-time 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 The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities consisted of the following: As of December 31, 2017 2016 (in millions) Deferred income tax assets: Accrued postretirement and postemployment benefits $ 191 $ 214 Accrued pension costs 313 370 Other employee benefits 155 237 Accrued expenses 269 379 Loss carryforwards 773 619 Tax credit carryforwards 370 — Other 342 331 Total deferred income tax assets 2,413 2,150 Valuation allowance (853 ) (310 ) Net deferred income tax assets $ 1,560 $ 1,840 Deferred income tax liabilities: Intangible assets $ (3,977 ) $ (5,174 ) Property, plant and equipment (452 ) (557 ) Other (188 ) (472 ) Total deferred income tax liabilities (4,617 ) (6,203 ) Net deferred income tax liabilities $ (3,057 ) $ (4,363 ) Our significant valuation allowances are in the U.S., Mexico, China and Ireland. The U.S. valuation allowance relates to excess foreign tax credits generated by the deemed repatriation under U.S. tax reform. The valuation allowance in China results from a change in judgment as to the realizability of one of our Chinese entity’s deferred tax assets. The Mexico and Ireland valuation allowances relate to loss carryforwards where we do not currently expect to generate gains of the proper character to utilize the carryforwards in the future. At December 31, 2017, the Company has pre-tax The changes in our unrecognized tax benefits were: For the Years Ended December 31, 2017 2016 2015 (in millions) January 1 $ 610 $ 756 $ 852 Increases from positions taken during prior periods 33 18 34 Decreases from positions taken during prior periods (93 ) (123 ) (74 ) Increases from positions taken during the current period 64 90 84 Decreases relating to settlements with taxing authorities (54 ) (75 ) (13 ) Reductions resulting from the lapse of the applicable (29 ) (43 ) (41 ) Currency/other 48 (13 ) (86 ) December 31 $ 579 $ 610 $ 756 As of January 1, 2017, our unrecognized tax benefits were $610 million. If we had recognized all of these benefits, the net impact on our income tax provision would have been $549 million. Our unrecognized tax benefits were $579 million at December 31, 2017, and if we had recognized all of these benefits, the net impact on our income tax provision would have been $524 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 $150 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 $189 million as of January 1, 2017 and $212 million as of December 31, 2017. Our 2017 provision for income taxes included $26 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, 2017 | |
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, 2017 2016 2015 (in millions, except per share data) Net earnings $ 2,936 $ 1,669 $ 7,291 Noncontrolling interest (earnings) (14 ) (10 ) (24 ) Net earnings attributable to Mondelēz International $ 2,922 $ 1,659 $ 7,267 Weighted-average shares for basic EPS 1,513 1,556 1,618 Plus incremental shares from assumed conversions of 18 17 19 Weighted-average shares for diluted EPS 1,531 1,573 1,637 Basic earnings per share attributable to $ 1.93 $ 1.07 $ 4.49 Diluted earnings per share attributable to $ 1.91 $ 1.05 $ 4.44 We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We excluded antidilutive stock options of 8.5 million for the year ended December 31, 2017, 7.8 million for the year ended December 31, 2016 and 5.1 million for the year ended December 31, 2015. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
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 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, 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, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2017 2016 2015 (in millions) Net revenues: Latin America (1) $ 3,566 $ 3,392 $ 4,988 AMEA (2) 5,739 5,816 6,002 Europe (2) 9,794 9,755 11,672 North America 6,797 6,960 6,974 Net revenues $ 25,896 $ 25,923 $ 29,636 (1) Net revenues of $1,217 million for 2015 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, 2017 2016 2015 (in millions) Earnings before income taxes: Operating income: Latin America $ 565 $ 271 $ 485 AMEA 516 506 389 Europe 1,680 1,267 1,350 North America 1,120 1,078 1,105 Unrealized (losses)/gains on hedging activities (mark-to-market (96 ) (94 ) 96 General corporate expenses (287 ) (291 ) (383 ) Amortization of intangibles (178 ) (176 ) (181 ) Net gain on divestitures 186 9 6,822 Loss on deconsolidation of Venezuela – – (778 ) Acquisition-related costs – (1 ) (8 ) Operating income 3,506 2,569 8,897 Interest and other expense, net (382 ) (1,115 ) (1,013 ) Earnings before income taxes $ 3,124 $ 1,454 $ 7,884 No single customer accounted for 10% or more of our net revenues from continuing operations in 2017. Our five largest customers accounted for 15.6% and our ten largest customers accounted for 21.4% of net revenues from continuing operations in 2017. Items impacting our segment operating results are discussed in Note 1, Summary of Significant Accounting Policies Divestitures and Acquisitions, Property, Plant and Equipment, Goodwill and Intangible Assets, 2014-2018 Restructuring Program Commitments and Contingencies Debt and Borrowing Arrangements Financial Instruments, Total assets, depreciation expense and capital expenditures by segment, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2017 2016 2015 (in millions) Total assets: Latin America $ 4,948 $ 5,156 $ 4,673 AMEA 9,883 10,031 10,460 Europe 21,611 19,934 21,026 North America 20,709 20,694 21,175 Equity method investments 6,345 5,585 5,387 Unallocated assets and adjustments (1) (387 ) 138 122 Total assets $ 63,109 $ 61,538 $ 62,843 (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. Final adjustments for jurisdictional netting of deferred tax assets and liabilities is done at a consolidated level. For the Years Ended December 31, 2017 2016 2015 (in millions) Depreciation expense: Latin America $ 107 $ 92 $ 94 AMEA 157 161 155 Europe 239 253 299 North America 135 141 165 Total depreciation expense $ 638 $ 647 $ 713 For the Years Ended December 31, 2017 2016 2015 (in millions) Capital expenditures: Latin America $ 226 $ 321 $ 354 AMEA 280 349 381 Europe 278 294 517 North America 230 260 262 Total capital expenditures $ 1,014 $ 1,224 $ 1,514 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, 2017 2016 2015 (in millions) Net revenues: United States $ 6,275 $ 6,329 $ 6,302 Other 19,621 19,594 23,334 Total net revenues $ 25,896 $ 25,923 $ 29,636 As of December 31, 2017 2016 2015 (in millions) Long-lived assets: United States $ 1,468 $ 1,508 $ 1,551 Other 7,733 7,229 7,238 Total long-lived assets $ 9,201 $ 8,737 $ 8,789 No individual country within Other exceeded 10% of our net revenues or long-lived assets for all periods presented. Net revenues by product category, reflecting our current segment structure for all periods presented, were: For the Year Ended December 31, 2017 Latin (1) AMEA Europe North Total (1) (in millions) Biscuits $ 779 $ 1,634 $ 2,880 $ 5,479 $ 10,772 Chocolate 862 2,011 4,933 293 8,099 Gum & Candy 919 919 775 1,025 3,638 Beverages 665 569 121 – 1,355 Cheese & Grocery 341 606 1,085 – 2,032 Total net revenues $ 3,566 $ 5,739 $ 9,794 $ 6,797 $ 25,896 For the Year Ended December 31, 2016 Latin (1) AMEA Europe North 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 (1) AMEA Europe (3) North 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 (1) In 2015, 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. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 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, 2017 | |
Quarterly Financial Data (Unaudited) | Note 17. Quarterly Financial Data (Unaudited) Our summarized operating results by quarter are detailed below. 2017 Quarters First Second Third Fourth (in millions, except per share data) Net revenues $ 6,414 $ 5,986 $ 6,530 $ 6,966 Gross profit 2,525 2,324 2,552 2,664 Provision for income taxes (154 ) (84 ) (272 ) (178 ) Gain on equity method investment transactions – – – 40 Equity method investment net earnings 66 67 103 224 Net earnings (1) $ 633 $ 500 $ 993 $ 810 Noncontrolling interest (3 ) (2 ) (1 ) (8 ) Net earnings attributable to Mondelēz International $ 630 $ 498 $ 992 $ 802 Weighted-average shares for basic EPS 1,529 1,519 1,507 1,497 Plus incremental shares from assumed conversions of 21 20 17 16 Weighted-average shares for diluted EPS 1,550 1,539 1,524 1,513 Per share data: Basic EPS attributable to Mondelēz International: $ 0.41 $ 0.33 $ 0.66 $ 0.54 Diluted EPS attributable to Mondelēz International: $ 0.41 $ 0.32 $ 0.65 $ 0.53 Dividends declared $ 0.19 $ 0.19 $ 0.22 $ 0.22 Market price - high $ 45.48 $ 47.23 $ 44.48 $ 43.98 - low $ 41.30 $ 42.92 $ 40.04 $ 39.19 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 transactions 43 – – – Equity method investment net earnings 85 102 31 83 Net earnings (1) $ 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 (1) See the following table for significant items that affected the comparability of earnings each quarter. Basic and diluted EPS are computed independently for each of the periods presented. Accordingly, the sum of the quarterly EPS amounts may not equal the total for the year. During 2017 and 2016, we recorded the following pre-tax 2017 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (166 ) $ (187 ) $ (183 ) $ (120 ) Net gain on divestitures – (3 ) 187 2 Divestiture-related costs (19 ) (9 ) 2 (8 ) Loss on early extinguishment of – (11 ) – – Benefits from the resolution of tax matters 58 – 215 8 $ (127 ) $ (210 ) $ 221 $ (118 ) 2016 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (154 ) $ (166 ) $ (190 ) $ (342 ) Divestiture-related costs – (84 ) – (2 ) Loss related to interest rate swaps (97 ) – – – Loss on early extinguishment of – – – (427 ) $ (251 ) $ (250 ) $ (190 ) $ (771 ) Items impacting our operating results are discussed in Note 1, Summary of Significant Accounting Policies, Divestitures and Acquisitions Goodwill and Intangible Assets 2014-2018 Restructuring Program, Debt and Borrowing Arrangements |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts | Mondelēz International, Inc. and Subsidiaries Valuation and Qualifying Accounts For the Years Ended December 31, 2017, 2016 and 2015 (in millions) Col. A Col. B Col. C Col. D Col. E Additions Balance at Charged to Charged to Balance at Beginning Costs and Other End of Description of Period Expenses Accounts Deductions Period (a) (b) 2017: Allowance for trade receivables $ 58 $ 21 $ (8 ) $ 21 $ 50 Allowance for other current receivables 93 6 6 7 98 Allowance for long-term receivables 20 (1 ) 3 1 21 Allowance for deferred taxes 310 549 25 31 853 $ 481 $ 575 $ 26 $ 60 $ 1,022 2016: Allowance for trade receivables $ 54 $ 18 $ (1 ) $ 13 $ 58 Allowance for other current receivables 109 (2 ) (13 ) 1 93 Allowance for long-term receivables 16 1 3 – 20 Allowance for deferred taxes 303 67 (28 ) 32 310 $ 482 $ 84 $ (39 ) $ 46 $ 481 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 Notes: (a) Primarily related to divestitures, acquisitions and currency translation. (b) Represents charges for which allowances were created. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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 160 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. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors’ interests in the results of subsidiaries that we control and consolidate. 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 under the equity method of accounting. On July 2, 2015, we contributed our global coffee businesses to a new company, Jacobs Douwe Egberts (“JDE”), in which we now hold an equity interest (collectively, the “JDE coffee business transactions”). Historically, our coffee businesses and the income from equity method investments were recorded within our operating income as these businesses were part of our base business. While we retain an ongoing interest in coffee through equity method investments including JDE, Keurig Green Mountain Inc. (“Keurig”) and Dongsuh Foods Corporation (“DSF”), and we have significant influence with our equity method investments, we do not control these operations directly. As such, in the third quarter of 2015, we began to recognize equity method investment earnings, consisting primarily of investments in coffee businesses, outside of operating income and segment income. For periods prior to the third quarter of 2015, our historical coffee business and equity method investment earnings were included within our operating income and segment income. (For the six months ended December 31, 2015, after-tax Divestitures and Acquisitions – JDE Coffee Business Transactions Keurig Transaction Planned Keurig Dr Pepper Transaction Segment Reporting We use the cost method of accounting for investments in which we do not exercise significant influence or control. Under the cost method of accounting, earnings are recognized to the extent cash is received. |
Use of Estimates | Use of Estimates: We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which require us to make estimates and assumptions that affect a number of amounts in our consolidated financial statements. Significant accounting policy elections, estimates and assumptions include, among others, pension and benefit plan assumptions, valuation assumptions of goodwill and intangible assets, useful lives of long-lived assets, restructuring program liabilities, marketing program accruals, insurance and self-insurance reserves and income taxes. We base our estimates on historical experience and other assumptions that we believe are reasonable. If actual amounts differ from estimates, we include the revisions in our consolidated results of operations in the period the actual amounts become known. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a material effect on our consolidated financial statements. |
Segment Change | Segment Change On October 1, 2016, we integrated our Eastern Europe, Middle East, and Africa (“EEMEA”) operating segment into our Europe and Asia Pacific operating segments to further leverage and optimize the operating scale built within the Europe and Asia Pacific regions. Russia, Ukraine, Turkey, Belarus, Georgia and Kazakhstan were combined within our Europe region, while the remaining Middle East and African countries were combined within our Asia Pacific region to form a new Asia, Middle East and Africa (“AMEA”) operating segment. We have reflected the segment change as if it had occurred in all periods presented. As of October 1, 2016, our operations and management structure were 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. Highly inflationary accounting is triggered when a country’s three-year cumulative inflation rate exceeds 100%. It requires the remeasurement of financial statements of subsidiaries in the country, from the functional currency of the subsidiary to our U.S. dollar reporting currency, with currency remeasurement gains or losses recorded in earnings. In 2017, none of our consolidated subsidiaries were accounted for as highly inflationary economies. Argentina. Ukraine 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. The economic and regulatory 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, 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 the 2015 remeasurement losses, the deconsolidation loss and historical operating results and financial position of our Venezuelan subsidiaries for the period presented: For the Year Ended December 31, 2015 (in millions) Net revenues $ 1,217 Operating income (excluding remeasurement and deconsolidation loss) 266 Remeasurement loss in Q1 2015: 11.50 to 12.00 bolivars to the U.S. dollar (11 ) Loss on deconsolidation (778 ) As of December 31, 2015 (1) (in millions) Cash $ 611 Net monetary assets 405 Net assets 658 (1) Represents the financial position of our Venezuelan subsidiaries on December 31, 2015 prior to deconsolidation. Beginning in 2016, we no longer included 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. In early 2018, the profitability and cash flows of our local operations significantly deteriorated following the issuance of new government price controls. We are engaging with authorities on the pricing restrictions, however, if the situation is not resolved, it could significantly impede our ability to continue to operate in Venezuela. 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. |
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 have historically annually tested goodwill and non-amortizable We assess goodwill impairment risk throughout the year by performing a qualitative review of entity-specific, industry, market and general economic factors affecting our goodwill reporting units. We review our operating segment and reporting unit structure for goodwill testing annually or as significant changes in the organization occur. Annually, we may perform qualitative testing, or depending on factors such as prior-year test results, current year developments, current risk evaluations and other practical considerations, we may elect to do quantitative testing instead. In our quantitative testing, we compare a reporting unit’s estimated fair value with its carrying value. We estimate a reporting unit’s fair value using a discounted cash flow method that incorporates planned growth rates, market-based discount rates and estimates of residual value. This year, for our Europe and North America reporting units, we used a market-based, weighted-average cost of capital of 7.2% to discount the projected cash flows of those operations. For our Latin America and AMEA reporting units, we used a risk-rated discount rate of 10.2%. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans, industry and economic conditions, and our actual results and conditions may differ over time. If the carrying value of a reporting unit’s net assets exceeds its fair value, we would recognize an impairment charge for the amount by which the carrying value exceeds the reporting unit’s fair value. Annually we assess non-amortizable |
Insurance and Self-Insurance | Insurance and Self-Insurance: We use a combination of insurance and self-insurance for a number of risks, including workers’ compensation, general liability, automobile liability, product liability and our obligation for employee healthcare benefits. We estimate the liabilities associated with these risks on an undiscounted basis by evaluating and making judgments about historical claims experience and other actuarial assumptions and the estimated impact on future results. |
Revenue Recognition | Revenue Recognition: We predominantly sell food and beverage products across several product categories and in all regions as disclosed in Note 16, Segment Reporting Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. We base these estimates principally on historical utilization and redemption rates. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. Key sales terms, such as pricing and quantities ordered, are established on a very frequent basis such that most customer arrangements and related incentives have a one year or shorter duration. As such, we do not capitalize contract inception costs and we capitalize product fulfillment costs in accordance with U.S. GAAP and our inventory policies. We do not have any significant unbilled receivables at the end of any period. Deferred revenues are not material and primarily include customer advance payments typically collected a few days before product delivery, at which time, deferred revenues are reclassified and recorded as net revenues. We generally do not receive noncash consideration for the sale of goods nor do we grant payment financing terms greater than one year. |
Marketing, Advertising and Research and Development | Marketing, Advertising and Research and Development: We promote our products with marketing and advertising programs. These programs include, but are not limited to, cooperative advertising, in-store year-end |
Stock-based Compensation | Stock-based Compensation: Stock-based compensation awarded to employees and non-employee |
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 derivatives (mark-to-market Currency exchange derivatives (mark-to-market Financial Instruments 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 effects of deferred taxes and impacts from uncertain tax positions. We recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of our assets and liabilities, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those differences are expected to reverse. The realization of certain deferred tax assets is dependent on generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. When assessing the need for a valuation allowance, we consider any carryback potential, future reversals of existing taxable temporary differences (including liabilities for unrecognized tax benefits), future taxable income and tax planning strategies. We recognize tax benefits in our financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained based on the technical merits of the position. The amount we recognize is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon resolution. Future changes related to the expected resolution of uncertain tax positions could affect tax expense in the period when the change occurs. We monitor for changes in tax laws and reflect the impacts of tax law changes in the period of enactment. In response to the United States tax reform legislation enacted on December 22, 2017 (“U.S. tax reform”), the U.S. Securities and Exchange Commission (“SEC”) issued guidance that allows us to record provisional amounts for the impacts of U.S. tax reform if the full accounting cannot be completed before we file our 2017 financial statements. For provisions of the tax law where we are unable to make a reasonable estimate of the impact, the guidance allows us to continue to apply the historical tax provisions in computing our income tax liability and deferred tax assets and liabilities as of December 31, 2017. The guidance also allows us to finalize accounting for the U.S. tax reform changes within one year of the December 22, Income Taxes |
New Accounting Pronouncements | New Accounting Pronouncements: In August 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) to simplify the application of hedge accounting and increase the transparency of hedge results. The updated standard changes how companies can assess the effectiveness of their hedging relationships. For cash flow and net investment hedges as of the adoption date, the ASU requires a modified retrospective transition approach. Presentation and disclosure requirements related to this ASU are required prospectively. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We intend to early adopt this standard in the first quarter of 2018 and we do not expect it to have a significant impact on our consolidated financial statements, including the cumulative-effect adjustment required upon adoption. In May 2017, the FASB issued an ASU to clarify when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The ASU is applied prospectively to awards that are modified on or after the adoption date. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We will adopt the standard on January 1, 2018 and we do not expect a material impact to our consolidated financial statements. In March 2017, the FASB issued an ASU to amend the amortization period for certain purchased callable debt securities held at a premium, shortening the period to the earliest call date instead of the maturity date. The standard does not impact securities held at a discount as the discount continues to be amortized to maturity. The ASU is applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We will adopt the standard on January 1, 2019. We do not expect a material impact to our consolidated financial statements. In March 2017, the FASB issued an ASU to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. The standard requires employers to disaggregate the service cost component from the other components of net benefit cost and disclose the amount and location where the net benefit cost is recorded in the income statement or capitalized in assets. The standard is to be applied on a retrospective basis for the change in presentation in the income statement and prospectively for the change in presentation on the balance sheet. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We will adopt the standard on January 1, 2018. We will reclassify net benefit costs other than service costs below operating income, with no impact to our net earnings. For information on our service cost and other components of net periodic benefit cost for pension, postretirement benefit and postemployment plans, see Note 9, Benefit Plans In January 2017, the FASB issued an 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 will adopt this standard on January 1, 2018 and we do not expect a material impact to 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 will adopt this standard on January 1, 2018 and we do not expect a material impact on our consolidated statements of cash flows. 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 standard is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. The ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. We will adopt this standard on January 1, 2018 and we do not expect a material impact to 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 will adopt this standard on January 1, 2018 and we do not expect a material impact to our consolidated financial statements. In February 2016, the FASB issued an ASU on lease accounting. The ASU revises existing U.S. GAAP and outlines a new model for lessors and lessees to use in accounting for lease contracts. The guidance requires lessees to recognize a right-of-use 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. We will adopt this standard on January 1, 2018 and we do not expect a material impact to 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 and 2017, the FASB issued several ASUs that clarified principal versus agent (gross versus net) revenue presentation considerations, confirmed the accounting for certain prepaid stored-value products and clarified the guidance for identifying performance obligations within a contract, the accounting for licenses and partial sales of nonfinancial assets. 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 adopted the new standard on January 1, 2018 on a full retrospective basis. There was no material financial impact from adopting the new revenue standards. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
History of Remeasurement Losses, Deconsolidation Loss and Historical Operating Results and Financial Position of Venezuelan Subsidiaries | The following table sets forth the 2015 remeasurement losses, the deconsolidation loss and historical operating results and financial position of our Venezuelan subsidiaries for the period presented: For the Year Ended December 31, 2015 (in millions) Net revenues $ 1,217 Operating income (excluding remeasurement and deconsolidation loss) 266 Remeasurement loss in Q1 2015: 11.50 to 12.00 bolivars to the U.S. dollar (11 ) Loss on deconsolidation (778 ) As of December 31, 2015 (1) (in millions) Cash $ 611 Net monetary assets 405 Net assets 658 (1) Represents the financial position of our Venezuelan subsidiaries on December 31, 2015 prior to deconsolidation. |
Divestitures and Acquisitions (
Divestitures and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 (in millions) Current assets $ 4,732 $ 4,458 Noncurrent assets 38,282 35,089 Total assets $ 43,014 $ 39,547 Current liabilities $ 5,822 $ 4,148 Noncurrent liabilities 15,424 16,472 Total liabilities $ 21,246 $ 20,620 Equity attributable to shareowners of investees $ 21,685 $ 18,868 Equity attributable to noncontrolling interests 83 59 Total net equity of investees $ 21,768 $ 18,927 Mondelēz International ownership interests 24-50% 24-50% Mondelēz International share of investee net equity (1) $ 5,905 $ 5,145 Keurig shareholder loan 440 440 Equity method investments $ 6,345 $ 5,585 For the Years Ended December 31, 2017 2016 2015 (in millions) Net revenues $ 12,781 $ 10,923 $ 4,993 Gross profit 4,891 4,219 1,551 Income from continuing operations 1,604 839 96 Net income 1,604 839 97 Net income attributable to investees $ 1,594 $ 838 $ 97 Mondelēz International ownership interests 24%-50% 24%-50% 40%-50% Mondelēz International share of investee net income $ 436 $ 281 $ 56 Keurig shareholder loan interest income 24 20 – Equity method investment net earnings (2) $ 460 $ 301 $ 56 (1) Includes approximately $360 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, 2017 | |
Components of Inventories | Inventories consisted of the following: As of December 31, 2017 2016 (in millions) Raw materials $ 711 $ 722 Finished product 1,975 1,865 2,686 2,587 Inventory reserves (129 ) (118 ) Inventories, net $ 2,557 $ 2,469 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of December 31, 2017 2016 (in millions) Land and land improvements $ 458 $ 471 Buildings and building improvements 2,979 2,801 Machinery and equipment 11,195 10,302 Construction in progress 1,048 1,113 15,680 14,687 Accumulated depreciation (7,003 ) (6,458 ) Property, plant and equipment, net $ 8,677 $ 8,229 |
2014-2018 Restructuring Program | |
Schedule of Restructuring and Implementation Costs | During 2017, 2016 and 2015, and since inception of the 2014-2018 Restructuring Program, we recorded restructuring and implementation costs within operating income by segment (as revised to reflect our current segment structure) as follows: Latin North America AMEA Europe America (1) Corporate (2) Total (in millions) For the Year Ended December 31, 2017 Restructuring Costs $ 93 $ 141 $ 195 $ 94 $ 12 $ 535 Implementation Costs 43 43 68 58 45 257 Total $ 136 $ 184 $ 263 $ 152 $ 57 $ 792 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 Total Project 2014-2017 (3) Restructuring Costs $ 430 $ 448 $ 844 $ 448 $ 64 $ 2,234 Implementation Costs 152 129 272 253 221 1,027 Total $ 582 $ 577 $ 1,116 $ 701 $ 285 $ 3,261 (1) During 2017 and 2016, our North America region implementation costs included incremental costs that we incurred related to renegotiating 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. (2) Includes adjustment for rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through December 31, 2017. |
Property Plant and Equipment | Asset impairment and exit costs | |
Schedule of Restructuring and Implementation Costs | These charges related to property, plant and equipment were recorded in the consolidated statements of earnings within asset impairment and exit costs and in the segment results as follows: For the Years Ended December 31, 2017 2016 2015 (in millions) Latin America $ 36 $ 22 $ 46 AMEA 81 44 88 Europe 58 122 65 North America 30 111 65 Corporate 1 2 – Non-cash $ 206 $ 301 $ 264 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Goodwill by Reportable Operating Segment | Goodwill by reportable operating segment was: As of December 31, 2017 2016 (in millions) Latin America $ 901 $ 897 AMEA 3,371 3,324 Europe 7,880 7,170 North America 8,933 8,885 Goodwill $ 21,085 $ 20,276 |
Intangible Assets Disclosure | Intangible assets consisted of the following: As of December 31, 2017 2016 (in millions) Non-amortizable $ 17,671 $ 17,004 Amortizable intangible assets 2,386 2,315 20,057 19,319 Accumulated amortization (1,418 ) (1,218 ) Intangible assets, net $ 18,639 $ 18,101 |
Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: 2017 2016 Goodwill Intangible Goodwill Intangible (in millions) Balance at January 1 $ 20,276 $ 19,319 $ 20,664 $ 19,847 Changes due to: Currency 909 954 (464 ) (540 ) Divestitures (114 ) (100 ) (4 ) (8 ) Acquisitions 15 (7 ) 80 158 Asset impairments – (109 ) – (137 ) Other (1 ) – – (1 ) Balance at December 31 $ 21,085 $ 20,057 $ 20,276 $ 19,319 |
2014-2018 Restructuring Progr32
2014-2018 Restructuring Program (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
2014-2018 Restructuring Program | |
Schedule of Restructuring Costs | The 2014-2018 Restructuring Program liability activity for the years ended December 31, 2017 and 2016 was: Severance and related Asset costs Write-downs Total (in millions) Liability balance, January 1, 2016 $ 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 Charges 323 212 535 Cash spent (347 ) – (347 ) Non-cash (3 ) (212 ) (215 ) Currency 27 – 27 Liability balance, December 31, 2017 $ 464 $ – $ 464 |
Debt and Borrowing Arrangemen33
Debt and Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 Amount Weighted- Amount Weighted- Outstanding Average Rate Outstanding Average Rate (in millions) (in millions) Commercial paper $ 3,410 1.7 % $ 2,371 1.0 % Bank loans 107 11.5 % 160 10.6 % Total short-term borrowings $ 3,517 $ 2,531 |
Long-Term Debt | Our long-term debt consisted of (interest rates are as of December 31, 2017): As of December 31, 2017 2016 (in millions) U.S. dollar notes, 1.385% to 7.000% (weighted-average effective rate 3.414%), $ 8,327 $ 8,812 Euro notes, 1.000% to 2.375% (weighted-average effective rate 1.930%), 3,653 3,980 Pound sterling notes, 3.875% to 7.250% (weighted-average effective rate 4.441%), 456 418 Swiss franc notes, 0.050% to 1.125% (weighted-average effective rate 0.627%), 1,694 1,449 Capital leases and other obligations 5 9 Total 14,135 14,668 Less current portion of long-term (1,163 ) (1,451 ) Long-term debt $ 12,972 $ 13,217 |
Aggregate Maturities of Debt and Capital Leases Based on Stated Contractual Maturities | As of December 31, 2017, aggregate maturities of our debt and capital leases based on stated contractual maturities, excluding unamortized non-cash mark-to-market 2018 2019 2020 2021 2022 Thereafter Total $1,163 $2,651 $896 $3,373 $754 $5,362 $14,199 |
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, 2017 2016 2015 (in millions) Interest expense, debt $ 396 $ 515 $ 609 Loss on debt extinguishment and related expenses 11 427 753 JDE coffee business transactions currency-related net gains – – (436 ) Loss related to interest rate swaps – 97 34 Other (income)/expense, net (25 ) 76 53 Interest and other expense, net $ 382 $ 1,115 $ 1,013 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivatives | |
Fair Value of Derivative Instruments | Derivative instruments were recorded at fair value in the consolidated balance sheets as follows: As of December 31, 2017 2016 Asset Liability Asset Liability Derivatives Derivatives Derivatives Derivatives (in millions) Derivatives designated as Currency exchange contracts $ – $ – $ 19 $ 8 Commodity contracts – – 17 22 Interest rate contracts 15 509 108 19 $ 15 $ 509 $ 144 $ 49 Derivatives not designated as Currency exchange contracts $ 65 $ 76 $ 29 $ 43 Commodity contracts 84 229 112 167 Interest rate contracts 15 11 27 19 $ 164 $ 316 $ 168 $ 229 Total fair value $ 179 $ 825 $ 312 $ 278 |
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, 2017 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 $ (11 ) $ – $ (11 ) $ – Commodity contracts (145 ) (138 ) (7 ) – Interest rate contracts (490 ) – (490 ) – Total derivatives $ (646 ) $ (138 ) $ (508 ) $ – 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 $ – |
Notional Values of Derivative Instruments | The net notional values of our derivative instruments were: Notional Amount As of December 31, 2017 2016 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 7,089 $ 3,343 Forecasted transactions 2,213 1,452 Commodity contracts 1,204 837 Interest rate contracts 6,532 6,365 Net investment hedge – euro notes 3,679 4,012 Net investment hedge – pound sterling notes 459 419 Net investment hedge – Swiss franc notes 1,694 1,447 |
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, 2017 2016 2015 (in millions) Accumulated (loss)/gain at beginning of period $ (121 ) $ (45 ) $ (2 ) Transfer of realized (gains)/losses in fair value to earnings 27 53 – Unrealized gain/(loss) in fair value (19 ) (129 ) (43 ) Accumulated (loss)/gain at end of period $ (113 ) $ (121 ) $ (45 ) |
Schedule of Effects of Derivative Instruments | After-tax For the Years Ended December 31, 2017 2016 2015 (in millions) Currency exchange contracts – forecasted transactions $ (3 ) $ (1 ) $ 83 Commodity contracts (24 ) (4 ) (52 ) Interest rate contracts – (48 ) (31 ) Total $ (27 ) $ (53 ) $ – After-tax For the Years Ended December 31, 2017 2016 2015 (in millions) Currency exchange contracts – forecasted transactions $ (38 ) $ 8 $ 40 Commodity contracts 7 (34 ) (35 ) Interest rate contracts 12 (103 ) (48 ) Total $ (19 ) $ (129 ) $ (43 ) |
Fair Value Hedges | |
Schedule of Effects of Derivative Instruments | Pre-tax For the Years Ended December 31, 2017 2016 2015 (in millions) Derivatives $ (4 ) $ (6 ) $ (1 ) Borrowings 4 6 1 |
Economic Hedging | |
Schedule of Effects of Derivative Instruments | Pre-tax For the Years Ended December 31, Recognized 2017 2016 2015 in Earnings (in millions) Currency exchange contracts: Intercompany loans and $ 13 $ 21 $ 29 Interest and other Forecasted transactions (37 ) (76 ) 29 Cost of sales Forecasted transactions (2 ) 11 435 Interest and other expense, net Forecasted transactions 3 7 (12 ) Selling, general Commodity contracts (218 ) (101 ) (38 ) Cost of sales Total $ (241 ) $ (138 ) $ 443 |
Net investment hedge | |
Hedges of Net Investments in International Operations | After-tax Location of For the Years Ended December 31, Gain/(Loss) 2017 2016 2015 Recognized in AOCI (in millions) Euro notes $ (323 ) $ 73 $ 268 Currency Pound sterling notes (26 ) 148 42 Translation Swiss franc notes (49 ) 12 9 Adjustment |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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. 2017 2016 2017 2016 (in millions) Projected benefit obligation at January 1 $ 1,614 $ 1,566 $ 9,814 $ 9,547 Service cost 46 57 156 147 Interest cost 62 61 199 229 Benefits paid (32 ) (32 ) (471 ) (425 ) Settlements paid (111 ) (91 ) – – Actuarial losses 179 52 180 1,284 Divestiture – – (14 ) (5 ) Currency – – 976 (979 ) Other 4 1 12 16 Projected benefit obligation at December 31 1,762 1,614 10,852 9,814 Fair value of plan assets at January 1 1,620 1,247 7,926 7,721 Actual return on plan assets 217 118 592 1,079 Contributions 23 378 482 419 Benefits paid (32 ) (32 ) (471 ) (425 ) Settlements paid (111 ) (91 ) – – Divestiture – – – (4 ) Currency – – 798 (863 ) Other – – – (1 ) Fair value of plan assets at December 31 1,717 1,620 9,327 7,926 Net pension (liabilities)/assets at December 31 $ (45 ) $ 6 $ (1,525 ) $ (1,888 ) |
Pension Plans Resulted in Net Pension Liability | The combined U.S. and non-U.S. As of December 31, 2017 2016 (in millions) Prepaid pension assets $ 158 $ 159 Other current liabilities (59 ) (27 ) Accrued pension costs (1,669 ) (2,014 ) $ (1,570 ) $ (1,882 ) |
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, 2017 2016 2017 2016 (in millions) Projected benefit obligation $ 94 $ 96 $ 9,345 $ 8,386 Accumulated benefit obligation 90 88 9,138 8,168 Fair value of plan assets 2 2 7,709 6,451 |
Weighted Average Assumptions | We used the following weighted-average assumptions to determine our benefit obligations under the pension plans: U.S. Plans Non-U.S. As of December 31, As of December 31, 2017 2016 2017 2016 (in millions) Discount rate 3.68% 4.19% 2.20% 2.31% Expected rate of return on plan assets 5.50% 6.25% 4.90% 5.14% Rate of compensation increase 4.00% 4.00% 3.31% 3.29% |
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, 2017 2016 2015 2017 2016 2015 (in millions) Service cost $ 46 $ 57 $ 64 $ 156 $ 147 $ 188 Interest cost 62 61 67 199 229 307 Expected return on plan assets (101 ) (97 ) (93 ) (434 ) (418 ) (478 ) Amortization: Net loss from experience differences 37 42 43 167 120 141 Prior service cost/(benefit) (1) 2 2 2 (3 ) (3 ) 15 Settlement losses and other expenses (2) 35 30 19 6 6 2 Net periodic pension cost $ 81 $ 95 $ 102 $ 91 $ 81 $ 175 (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 $11 million for the year ended December 31, 2017, $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. non-U.S. 2014-2018 Restructuring Program |
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, 2017 Quoted Prices Significant in Active Markets Other Significant for Identical Observable Unobservable Total Fair Assets Inputs Inputs Asset Category Value (Level 1) (Level 2) (Level 3) (in millions) U.S. equity securities $ 2 $ 2 $ – $ – Non-U.S. 5 5 – – Pooled funds - equity securities 2,340 848 1,492 – Total equity securities 2,347 855 1,492 – Government bonds 3,237 34 3,203 – Pooled funds - fixed-income securities 602 449 153 – Corporate bonds and other 2,102 133 1,179 790 Total fixed-income securities 5,941 616 4,535 790 Real estate 156 120 13 23 Private equity 2 – – 2 Cash 86 66 20 – Other 2 1 – 1 Total assets in the fair value hierarchy $ 8,534 $ 1,658 $ 6,060 $ 816 Investments measured at net asset value 2,439 Total investments at fair value $ 10,973 As of December 31, 2016 Quoted Prices Significant in Active Markets Other Significant for Identical Observable Unobservable Total Fair Assets Inputs Inputs Asset Category Value (Level 1) (Level 2) (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 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 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 2017 2016 2017 2016 Equity securities 15% 33% 28% 29% Fixed-income securities 85% 63% 60% 57% Real estate – 4% 6% 5% Hedge funds – – 4% 6% Private equity – – 1% 2% Cash – – 1% 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- 35 – (16 ) (21 ) 2 – Corporate bond and other 538 10 182 – 60 790 Real estate 22 1 – – – 23 Private equity and other 4 – – (1 ) – 3 Total Level 3 investments $ 602 $ 11 $ 166 $ (25 ) $ 62 $ 816 Asset Category January 1, Net Realized Net Purchases, Net Transfers Currency December 31, (in millions) Non-U.S. $ – $ – $ – $ 3 $ – $ 3 Pooled funds- 26 6 15 (7 ) (5 ) 35 Corporate bond and other 665 21 (41 ) – (107 ) 538 Real estate 230 – (184 ) (3 ) (21 ) 22 Private equity and other 3 – – 1 – 4 Total Level 3 investments $ 924 $ 27 $ (210 ) $ (6 ) $ (133 ) $ 602 |
Estimated Future Benefit Payments | The estimated future benefit payments from our pension plans at December 31, 2017 were (in millions): 2018 2019 2020 2021 2022 2023-2027 U.S. Plans $ 120 $ 83 $ 89 $ 93 $ 93 $ 498 Non-U.S. 375 375 387 409 409 2,196 |
Schedule of Individually Significant Multiemployer Pension Plan | The only individually significant multiemployer plan we participate in as of December 31, 2017 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 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, 2017 2016 2015 2017 2016 2015 Discount rate 4.19% 4.50% 4.20% 2.31% 3.11% 2.99% Expected rate of return 6.25% 6.75% 7.25% 5.14% 5.87% 5.96% Rate of compensation increase 4.00% 4.00% 4.00% 3.29% 3.18% 3.26% |
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, 2017 2016 2015 2017 2016 2015 Discount rate 4.14% 4.60% 4.20% 4.55% 4.77% 4.52% Health care cost trend rate 6.50% 6.50% 6.50% 5.50% 5.50% 5.18% |
Components of Net Costs | Net periodic postretirement health care costs consisted of the following: For the Years Ended December 31, 2017 2016 2015 (in millions) Service cost $ 7 $ 12 $ 15 Interest cost 15 20 22 Amortization: Net loss from experience differences 14 10 13 Prior service credit (1) (40 ) (20 ) (7 ) Net periodic postretirement health care costs $ (4 ) $ 22 $ 43 (1) In the fourth quarter of 2016, the prior service credit included a one-time |
Estimated Future Benefit Payments | Our estimated future benefit payments for our postretirement health care plans at December 31, 2017 were (in millions): 2018 2019 2020 2021 2022 2023-2027 U.S. Plans $ 11 $ 12 $ 13 $ 15 $ 16 $ 85 Non-U.S. 5 5 6 6 6 55 |
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, 2017 2016 (in millions) Accrued benefit obligation at January 1 $ 394 $ 511 Service cost 7 12 Interest cost 15 20 Benefits paid (15 ) (14 ) Plan amendments (1) – (149 ) Currency 8 3 Assumption changes 30 34 Actuarial losses/(gains) (4 ) (23 ) Accrued benefit obligation at December 31 $ 435 $ 394 (1) Plan amendments in 2016 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, 2017 2016 2017 2016 Discount rate 3.66% 4.14% 4.24% 4.55% Health care cost trend rate assumed for next year 6.25% 6.50% 5.56% 5.50% Ultimate trend rate 4.81% 5.00% 5.56% 5.68% Year that the rate reaches the ultimate trend rate 2024 2020 2018 2018 |
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point As of December 31, 2017 One-Percentage-Point Increase Decrease (in millions) Effect on postretirement benefit obligation $ 49 $ (40 ) Effect on annual service and interest cost 3 (2 ) |
Postemployment Benefit Plans | |
Components of Net Costs | Net periodic postemployment costs consisted of the following: For the Years Ended December 31, 2017 2016 2015 (in millions) Service cost $ 5 $ 7 $ 7 Interest cost 4 6 5 Amortization of net gains (3 ) (1 ) – Net periodic postemployment costs $ 6 $ 12 $ 12 |
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, 2017 and 2016 were: As of December 31, 2017 2016 (in millions) Accrued benefit obligation at January 1 $ 71 $ 95 Service cost 5 7 Interest cost 4 6 Benefits paid (6 ) (9 ) Assumption changes – (21 ) Actuarial losses/(gains) 2 (7 ) Accrued benefit obligation at December 31 $ 76 $ 71 |
Stock Plans (Tables)
Stock Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Weighted-Average Black-Scholes Fair Value Assumptions | Our weighted-average Black-Scholes fair value assumptions were: Risk-Free Expected Life Expected Expected Fair Value 2017 2.04 % 6 years 22.75 % 1.74 % $ 8.57 2016 1.40 % 6 years 23.11 % 1.61 % $ 7.86 2015 1.70 % 6 years 18.51 % 1.61 % $ 6.12 |
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, 2015 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 57,034,108 26.12 $ 1,068 million Annual grant to eligible employees 7,517,290 39.70 Additional options issued 115,800 42.26 Total options granted 7,633,090 39.74 Options exercised (1) (8,883,101 ) 24.09 $ 174 million Options cancelled (2,182,485 ) 35.23 Balance at December 31, 2016 53,601,612 28.02 $ 874 million Annual grant to eligible employees 6,012,140 43.20 Additional options issued 162,880 42.54 Total options granted 6,175,020 43.18 Options exercised (1) (9,431,009 ) 26.17 $ 170 million Options cancelled (1,910,968 ) 38.10 Balance at December 31, 2017 48,434,655 29.92 5 years $ 626 million Exercisable at December 31, 2017 37,240,858 26.58 4 years $ 604 million (1) Cash received from options exercised was $257 million in 2017, $221 million in 2016 and $148 million in 2015. The actual tax benefit realized for the tax deductions from the option exercises totaled $31 million in 2017, $31 million in 2016 and $58 million in 2015. |
Deferred stock unit, performance share unit and restricted stock | |
Deferred Stock Unit, Performance Share Unit, and Restricted Stock Activity | Our performance share unit, deferred stock unit and restricted stock activity is reflected below: Weighted-Average Weighted-Average Number Fair Value Aggregate of Shares Grant Date Per Share (4) Fair Value (4) Balance at January 1, 2015 10,582,640 $ 28.86 Annual grant to eligible employees: Feb. 18, 2015 Performance share units 1,598,290 38.81 Restricted stock 386,910 36.94 Deferred stock units 866,640 36.94 Additional shares granted (1) 1,087,322 Various 36.00 Total shares granted 3,939,162 37.44 $ 147 million Vested (2) (3,905,745 ) 24.66 $ 96 million Forfeited (2) (1,197,841 ) 32.63 Balance at December 31, 2015 9,418,216 33.71 Annual grant to eligible employees: Feb. 22, 2016 Performance share units 1,406,500 34.35 Deferred stock units 1,040,790 39.70 Additional shares granted (3) 864,851 Various 32.90 Total shares granted 3,312,141 35.65 $ 118 million Vested (2) (3,992,902 ) 28.15 $ 112 million Forfeited (2) (1,143,828 ) 37.58 Balance at December 31, 2016 7,593,627 36.90 Annual grant to eligible employees: Feb. 16, 2017 Performance share units 1,087,010 43.14 Deferred stock units 845,550 43.20 Additional shares granted (3) 1,537,763 Various 42.22 Total shares granted 3,470,323 42.75 $ 148 million Vested (2) (2,622,807 ) 35.78 $ 94 million Forfeited (2) (771,438 ) 38.69 Balance at December 31, 2017 7,669,705 39.74 (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 $7 million in 2017, $18 million in 2016 and $18 million in 2015. (3) Includes performance share units and deferred stock units. (4) Performance share units reflect grant date fair values. Prior-year weighted average fair value per share has been revised. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2015 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 Shares repurchased – (50,598,902 ) (50,598,902 ) Exercise of stock options and issuance of – 10,369,445 10,369,445 Balance at December 31, 2017 1,996,537,778 (508,401,694 ) 1,488,136,084 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum Rental Commitments | As of December 31, 2017, minimum rental commitments under non-cancelable year-end 2018 2019 2020 2021 2022 Thereafter Total $ 245 $ 202 $ 150 $ 102 $ 67 $ 154 $ 920 |
Reclassifications from Accumu39
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 $174 million in 2017, $250 million in 2016 and $350 million in 2015. For the Years Ended December 31, 2017 2016 2015 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (8,914 ) $ (8,006 ) $ (5,042 ) Currency translation adjustments 987 (847 ) (2,905 ) Reclassification to earnings related to: Venezuela deconsolidation – – 99 Equity method investment transactions – 57 – Tax (expense)/benefit 214 (135 ) (184 ) Other comprehensive earnings/(losses) 1,201 (925 ) (2,990 ) Less: (earnings)/loss attributable to noncontrolling interests (28 ) 17 26 Balance at end of period (7,741 ) (8,914 ) (8,006 ) Pension and Other Benefit Plans: Balance at beginning of period $ (2,087 ) $ (1,934 ) $ (2,274 ) Net actuarial gain/(loss) arising during period (71 ) (491 ) (60 ) Tax (expense)/benefit on net actuarial gain/(loss) 50 70 3 Losses/(gains) reclassified into net earnings: Amortization of experience losses and (1) 174 150 207 Settlement losses (1) 38 36 111 Venezuela deconsolidation – – 2 Tax (expense)/benefit on reclassifications (2) (65 ) (46 ) (69 ) Currency impact (183 ) 128 146 Other comprehensive earnings/(losses) (57 ) (153 ) 340 Balance at end of period (2,144 ) (2,087 ) (1,934 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (121 ) $ (46 ) $ (2 ) Net derivative gains/(losses) (17 ) (151 ) (75 ) Tax (expense)/benefit on net derivative gain/(loss) 9 20 30 Losses/(gains) reclassified into net earnings: Currency exchange contracts - (3) 4 3 (90 ) Commodity contracts (3) 29 9 64 Interest rate contracts (4) – 83 47 Tax (expense)/benefit on reclassifications (2) (6 ) (42 ) (21 ) Currency impact (11 ) 3 1 Other comprehensive earnings/(losses) 8 (75 ) (44 ) Balance at end of period (113 ) (121 ) (46 ) Accumulated other comprehensive income attributable Balance at beginning of period $ (11,122 ) $ (9,986 ) $ (7,318 ) Total other comprehensive earnings/(losses) 1,152 (1,153 ) (2,694 ) Less: (earnings)/loss attributable to noncontrolling interests (28 ) 17 26 Other comprehensive earnings/(losses) 1,124 (1,136 ) (2,668 ) Balance at end of period $ (9,998 ) $ (11,122 ) $ (9,986 ) (1) These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 9, Benefit Plans (2) Taxes reclassified to earnings are recorded within the provision for income taxes. (3) These reclassified gains or losses are recorded within cost of sales. (4) These reclassified losses are recorded within interest and other expense, net. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 (in millions) Earnings/(losses) from continuing operations United States $ 354 $ (364 ) $ 43 Outside United States 2,770 1,818 7,841 Total $ 3,124 $ 1,454 $ 7,884 Provision for income taxes: United States federal: Current $ 1,322 $ (227 ) $ (90 ) Deferred (1,256 ) 141 136 66 (86 ) 46 State and local: Current 33 7 6 Deferred 33 8 (3 ) 66 15 3 Total United States 132 (71 ) 49 Outside United States: Current 541 490 707 Deferred 15 (290 ) (163 ) Total outside United States 556 200 544 Total provision for income taxes $ 688 $ 129 $ 593 |
Effective Income Tax Rate | The effective income tax rate on pre-tax For the Years Ended December 31, 2017 2016 2015 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 0.8% 0.8% (0.1)% Foreign rate differences (10.8)% (18.6)% (2.5)% Changes in judgment on realizability of deferred tax assets 3.2% – – Reversal of other tax accruals no longer required (1.7)% (7.7)% (1.4)% Tax accrual on investment in Keurig 2.7% 2.3% – Excess tax benefits from equity compensation (1.2)% – – Tax legislation (non-U.S. (2.7)% (4.0)% (0.5)% U.S. tax reform - deferred benefit from tax rate change (42.0)% – – U.S. tax reform - transition tax 42.2% – – U.S. tax reform - changes in indefinite reinvestment assertion (2.0)% – – Gains on coffee business transactions and divestitures – – (26.9)% Business sales (0.9)% – – Loss on deconsolidation of Venezuela – – 3.5% Non-deductible 0.4% 0.9% 0.3% Other (1.0)% 0.2% 0.1% Effective tax rate 22.0% 8.9% 7.5% |
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, 2017 2016 (in millions) Deferred income tax assets: Accrued postretirement and postemployment benefits $ 191 $ 214 Accrued pension costs 313 370 Other employee benefits 155 237 Accrued expenses 269 379 Loss carryforwards 773 619 Tax credit carryforwards 370 — Other 342 331 Total deferred income tax assets 2,413 2,150 Valuation allowance (853 ) (310 ) Net deferred income tax assets $ 1,560 $ 1,840 Deferred income tax liabilities: Intangible assets $ (3,977 ) $ (5,174 ) Property, plant and equipment (452 ) (557 ) Other (188 ) (472 ) Total deferred income tax liabilities (4,617 ) (6,203 ) Net deferred income tax liabilities $ (3,057 ) $ (4,363 ) |
Changes in Unrecognized Tax Benefit | The changes in our unrecognized tax benefits were: For the Years Ended December 31, 2017 2016 2015 (in millions) January 1 $ 610 $ 756 $ 852 Increases from positions taken during prior periods 33 18 34 Decreases from positions taken during prior periods (93 ) (123 ) (74 ) Increases from positions taken during the current period 64 90 84 Decreases relating to settlements with taxing authorities (54 ) (75 ) (13 ) Reductions resulting from the lapse of the applicable (29 ) (43 ) (41 ) Currency/other 48 (13 ) (86 ) December 31 $ 579 $ 610 $ 756 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Years Ended December 31, 2017 2016 2015 (in millions, except per share data) Net earnings $ 2,936 $ 1,669 $ 7,291 Noncontrolling interest (earnings) (14 ) (10 ) (24 ) Net earnings attributable to Mondelēz International $ 2,922 $ 1,659 $ 7,267 Weighted-average shares for basic EPS 1,513 1,556 1,618 Plus incremental shares from assumed conversions of 18 17 19 Weighted-average shares for diluted EPS 1,531 1,573 1,637 Basic earnings per share attributable to $ 1.93 $ 1.07 $ 4.49 Diluted earnings per share attributable to $ 1.91 $ 1.05 $ 4.44 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Net Revenues by Segment | Our segment net revenues and earnings, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2017 2016 2015 (in millions) Net revenues: Latin America (1) $ 3,566 $ 3,392 $ 4,988 AMEA (2) 5,739 5,816 6,002 Europe (2) 9,794 9,755 11,672 North America 6,797 6,960 6,974 Net revenues $ 25,896 $ 25,923 $ 29,636 (1) Net revenues of $1,217 million for 2015 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 |
Operating Income by Segment | Our segment net revenues and earnings, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2017 2016 2015 (in millions) Earnings before income taxes: Operating income: Latin America $ 565 $ 271 $ 485 AMEA 516 506 389 Europe 1,680 1,267 1,350 North America 1,120 1,078 1,105 Unrealized (losses)/gains on hedging activities (mark-to-market (96 ) (94 ) 96 General corporate expenses (287 ) (291 ) (383 ) Amortization of intangibles (178 ) (176 ) (181 ) Net gain on divestitures 186 9 6,822 Loss on deconsolidation of Venezuela – – (778 ) Acquisition-related costs – (1 ) (8 ) Operating income 3,506 2,569 8,897 Interest and other expense, net (382 ) (1,115 ) (1,013 ) Earnings before income taxes $ 3,124 $ 1,454 $ 7,884 |
Total Assets, Depreciation Expense and Capital Expenditure by Segment | Total assets, depreciation expense and capital expenditures by segment, reflecting our current segment structure for all periods presented, were: For the Years Ended December 31, 2017 2016 2015 (in millions) Total assets: Latin America $ 4,948 $ 5,156 $ 4,673 AMEA 9,883 10,031 10,460 Europe 21,611 19,934 21,026 North America 20,709 20,694 21,175 Equity method investments 6,345 5,585 5,387 Unallocated assets and adjustments (1) (387 ) 138 122 Total assets $ 63,109 $ 61,538 $ 62,843 (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. Final adjustments for jurisdictional netting of deferred tax assets and liabilities is done at a consolidated level. For the Years Ended December 31, 2017 2016 2015 (in millions) Depreciation expense: Latin America $ 107 $ 92 $ 94 AMEA 157 161 155 Europe 239 253 299 North America 135 141 165 Total depreciation expense $ 638 $ 647 $ 713 For the Years Ended December 31, 2017 2016 2015 (in millions) Capital expenditures: Latin America $ 226 $ 321 $ 354 AMEA 280 349 381 Europe 278 294 517 North America 230 260 262 Total capital expenditures $ 1,014 $ 1,224 $ 1,514 |
Net Revenues by Geographic Segment | For the Years Ended December 31, 2017 2016 2015 (in millions) Net revenues: United States $ 6,275 $ 6,329 $ 6,302 Other 19,621 19,594 23,334 Total net revenues $ 25,896 $ 25,923 $ 29,636 |
Long-lived Assets by Geographic Segment | As of December 31, 2017 2016 2015 (in millions) Long-lived assets: United States $ 1,468 $ 1,508 $ 1,551 Other 7,733 7,229 7,238 Total long-lived assets $ 9,201 $ 8,737 $ 8,789 |
Net Revenues by Consumer Sector | Net revenues by product category, reflecting our current segment structure for all periods presented, were: For the Year Ended December 31, 2017 Latin (1) AMEA Europe North Total (1) (in millions) Biscuits $ 779 $ 1,634 $ 2,880 $ 5,479 $ 10,772 Chocolate 862 2,011 4,933 293 8,099 Gum & Candy 919 919 775 1,025 3,638 Beverages 665 569 121 – 1,355 Cheese & Grocery 341 606 1,085 – 2,032 Total net revenues $ 3,566 $ 5,739 $ 9,794 $ 6,797 $ 25,896 For the Year Ended December 31, 2016 Latin (1) AMEA Europe North 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 (1) AMEA Europe (3) North 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 (1) In 2015, 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. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 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 (Una43
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Operating Results | Our summarized operating results by quarter are detailed below. 2017 Quarters First Second Third Fourth (in millions, except per share data) Net revenues $ 6,414 $ 5,986 $ 6,530 $ 6,966 Gross profit 2,525 2,324 2,552 2,664 Provision for income taxes (154 ) (84 ) (272 ) (178 ) Gain on equity method investment transactions – – – 40 Equity method investment net earnings 66 67 103 224 Net earnings (1) $ 633 $ 500 $ 993 $ 810 Noncontrolling interest (3 ) (2 ) (1 ) (8 ) Net earnings attributable to Mondelēz International $ 630 $ 498 $ 992 $ 802 Weighted-average shares for basic EPS 1,529 1,519 1,507 1,497 Plus incremental shares from assumed conversions of 21 20 17 16 Weighted-average shares for diluted EPS 1,550 1,539 1,524 1,513 Per share data: Basic EPS attributable to Mondelēz International: $ 0.41 $ 0.33 $ 0.66 $ 0.54 Diluted EPS attributable to Mondelēz International: $ 0.41 $ 0.32 $ 0.65 $ 0.53 Dividends declared $ 0.19 $ 0.19 $ 0.22 $ 0.22 Market price - high $ 45.48 $ 47.23 $ 44.48 $ 43.98 - low $ 41.30 $ 42.92 $ 40.04 $ 39.19 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 transactions 43 – – – Equity method investment net earnings 85 102 31 83 Net earnings (1) $ 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 (1) See the following table for significant items that affected the comparability of earnings each quarter. |
Pre-Tax (Charges) / Gains in Earnings From Continuing Operations | During 2017 and 2016, we recorded the following pre-tax 2017 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (166 ) $ (187 ) $ (183 ) $ (120 ) Net gain on divestitures – (3 ) 187 2 Divestiture-related costs (19 ) (9 ) 2 (8 ) Loss on early extinguishment of – (11 ) – – Benefits from the resolution of tax matters 58 – 215 8 $ (127 ) $ (210 ) $ 221 $ (118 ) 2016 Quarters First Second Third Fourth (in millions) Asset impairment and exit costs $ (154 ) $ (166 ) $ (190 ) $ (342 ) Divestiture-related costs – (84 ) – (2 ) Loss related to interest rate swaps (97 ) – – – Loss on early extinguishment of – – – (427 ) $ (251 ) $ (250 ) $ (190 ) $ (771 ) |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017USD ($)CountrySubsidiary | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)CountrySubsidiarySegment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Number of countries in which products are sold | Country | 160 | 160 | |||||||||||||
After-tax equity method investment net earnings | $ 224,000,000 | $ 103,000,000 | $ 67,000,000 | $ 66,000,000 | $ 83,000,000 | $ 31,000,000 | $ 102,000,000 | $ 85,000,000 | $ 460,000,000 | $ 301,000,000 | $ 0 | ||||
Number of reportable segments | Segment | 4 | ||||||||||||||
Number of consolidated subsidiaries subject to highly inflationary accounting | Subsidiary | 0 | 0 | |||||||||||||
Net revenues | $ 6,966,000,000 | $ 6,530,000,000 | $ 5,986,000,000 | $ 6,414,000,000 | 6,770,000,000 | $ 6,396,000,000 | $ 6,302,000,000 | $ 6,455,000,000 | $ 25,896,000,000 | [1] | 25,923,000,000 | [1] | 29,636,000,000 | [1] | |
Loss on deconsolidation | $ 0 | 0 | (778,000,000) | ||||||||||||
Number of countries in which entity operates | Country | 80 | 80 | |||||||||||||
Uncommitted revolving non-recourse accounts receivable factoring arrangements, maximum combined capacity | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||||||
Outstanding principal amount of receivables sold under factoring arrangement | $ 804,000,000 | $ 570,000,000 | $ 644,000,000 | 804,000,000 | 570,000,000 | 644,000,000 | |||||||||
Change in accounting policy effect of change on net revenue | 76,000,000 | ||||||||||||||
Change in accounting policy effect of change on operating results | 36,000,000 | ||||||||||||||
Advertising expense | 1,248,000,000 | 1,396,000,000 | 1,542,000,000 | ||||||||||||
Research and development expense | $ 366,000,000 | 376,000,000 | 409,000,000 | ||||||||||||
Minimum likelihood of tax benefits being recognized upon settlement | 50.00% | 50.00% | |||||||||||||
Maximum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
After-tax equity method investment net earnings | $ 1,000,000 | ||||||||||||||
Total incremental cost of factoring receivables | $ 6,000,000 | $ 6,000,000 | 6,000,000 | ||||||||||||
Maximum | Machinery and Equipment | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Useful life, in years | 20 years | ||||||||||||||
Maximum | Buildings and Building Improvements | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Useful life, in years | 40 years | ||||||||||||||
Maximum | Software | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Useful life, in years | 7 years | ||||||||||||||
Minimum | Machinery and Equipment | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Useful life, in years | 3 years | ||||||||||||||
Argentina | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Net revenues | $ 601,000,000 | ||||||||||||||
Percentage of consolidated net revenues | 2.30% | ||||||||||||||
Ukraine | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Net revenues | $ 73,000,000 | ||||||||||||||
Percentage of consolidated net revenues | 0.30% | ||||||||||||||
Ukraine | Maximum | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Three-year cumulative inflation rate | 100.00% | 100.00% | 100.00% | ||||||||||||
Venezuela | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Net revenues | 1,217,000,000 | ||||||||||||||
Loss on deconsolidation | $ (778,000,000) | ||||||||||||||
North America and Europe | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Discount rate | 7.20% | ||||||||||||||
Latin America and AMEA | |||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||
Discount rate | 10.20% | ||||||||||||||
[1] | In 2015, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. |
History of Remeasurement Losses
History of Remeasurement Losses, Deconsolidation Loss and Historical Operating Results and Financial Position of Venezuelan Subsidiaries (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Venezuela [Line Items] | ||||||||||||||
Net revenues | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 25,896 | [1] | $ 25,923 | [1] | $ 29,636 | [1] |
Loss on deconsolidation | $ 0 | $ 0 | (778) | |||||||||||
Venezuela | ||||||||||||||
Venezuela [Line Items] | ||||||||||||||
Net revenues | 1,217 | |||||||||||||
Operating income (excluding remeasurement and deconsolidation loss) | 266 | |||||||||||||
Loss on deconsolidation | (778) | |||||||||||||
Cash | 611 | |||||||||||||
Net monetary assets | 405 | |||||||||||||
Net assets | 658 | |||||||||||||
Venezuela | Q1 in 2015: 1.50 to 12.00 bolivars to the U.S. dollar | ||||||||||||||
Venezuela [Line Items] | ||||||||||||||
Remeasurement loss | $ (11) | |||||||||||||
[1] | In 2015, 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. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 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 Loss46
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 |
Venezuela [Line Items] | ||
Foreign currency exchange rate translation | 12 | 11.50 |
Divestitures and Acquisitions -
Divestitures and Acquisitions - Additional Information (Detail) € in Millions, £ in Millions, AUD in Millions, ₫ in Billions, ¥ in Billions | Dec. 28, 2017USD ($) | Dec. 28, 2017JPY (¥) | Oct. 23, 2017USD ($) | Oct. 23, 2017EUR (€) | Oct. 02, 2017USD ($) | Aug. 17, 2017USD ($) | Aug. 17, 2017EUR (€) | Jul. 04, 2017USD ($) | Jul. 04, 2017AUD | Apr. 28, 2017USD ($) | Apr. 28, 2017EUR (€) | Dec. 01, 2016USD ($) | Nov. 09, 2016USD ($) | Nov. 02, 2016USD ($) | Nov. 02, 2016GBP (£) | Oct. 31, 2016USD ($) | Oct. 31, 2016EUR (€) | Aug. 26, 2016USD ($) | Aug. 22, 2016USD ($) | Aug. 22, 2016VND (₫) | Jul. 05, 2016USD ($) | Jun. 30, 2016 | May 02, 2016USD ($) | May 02, 2016EUR (€) | Mar. 31, 2016USD ($) | Mar. 07, 2016USD ($) | Mar. 07, 2016EUR (€) | Mar. 03, 2016USD ($) | Dec. 18, 2015USD ($) | Dec. 18, 2015EUR (€) | Jul. 02, 2015USD ($) | Jul. 02, 2015EUR (€) | May 31, 2016USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2016EUR (€) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017AUD | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017VND (₫) | Jun. 30, 2018 | Jul. 19, 2016EUR (€) | Jul. 15, 2015 | Jul. 02, 2015EUR (€) | ||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | $ 224,000,000 | $ 103,000,000 | $ 67,000,000 | $ 66,000,000 | $ 83,000,000 | $ 31,000,000 | $ 102,000,000 | $ 85,000,000 | $ 460,000,000 | $ 301,000,000 | $ 0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on divestiture | (2,000,000) | (187,000,000) | 3,000,000 | 0 | 186,000,000 | 9,000,000 | 6,822,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from coffee business divestiture currency hedge settlements | 0 | 0 | 1,050,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | 6,345,000,000 | 5,585,000,000 | 6,345,000,000 | 5,585,000,000 | $ 6,345,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gain (loss) on coffee business divestiture currency hedges | 0 | 0 | 0 | 97,000,000 | 0 | 0 | 436,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs related to divestiture | 8,000,000 | (2,000,000) | 9,000,000 | 19,000,000 | 2,000,000 | 0 | 84,000,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment and exit costs | (120,000,000) | (183,000,000) | (187,000,000) | (166,000,000) | (342,000,000) | (190,000,000) | (166,000,000) | (154,000,000) | 656,000,000 | 852,000,000 | 901,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, pro rata share of capital increase | 0 | 0 | 544,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on equity method investment transaction | 40,000,000 | 0 | 0 | 0 | 0 | 0 | 0 | 43,000,000 | 40,000,000 | 43,000,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment dividend received | 152,000,000 | 75,000,000 | 58,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. tax reform transition tax | (1,206,000,000) | (141,000,000) | (30,000,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property, plant and equipment and other | 109,000,000 | 138,000,000 | 60,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 109,000,000 | 137,000,000 | 83,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain or loss on deconsolidation | 0 | 0 | (778,000,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 21,085,000,000 | 20,276,000,000 | $ 20,664,000,000 | $ 20,664,000,000 | 21,085,000,000 | 20,276,000,000 | 20,664,000,000 | 21,085,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 6,966,000,000 | 6,530,000,000 | $ 5,986,000,000 | 6,414,000,000 | 6,770,000,000 | 6,396,000,000 | 6,302,000,000 | 6,455,000,000 | 25,896,000,000 | [1] | 25,923,000,000 | [1] | 29,636,000,000 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 3,506,000,000 | 2,569,000,000 | 8,897,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition costs | 0 | 1,000,000 | 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency Exchange Forward Contracts | Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from coffee business divestiture currency hedge settlements | $ 1,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Forward | Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | 5,200,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from coffee business divestiture currency hedge settlements | $ 1,000,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net gain (loss) on coffee business divestiture currency hedges | 436,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coffee Business | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on divestiture | 6,809,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement losses | (90,000,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Europe And EEMEA segments | Coffee Business | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset impairment and exit costs | 123,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Europe Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 7,880,000,000 | 7,170,000,000 | 7,880,000,000 | 7,170,000,000 | 7,880,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | [2] | 9,794,000,000 | 9,755,000,000 | 11,672,000,000 | [3] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 1,680,000,000 | 1,267,000,000 | 1,350,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
North America Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 8,933,000,000 | 8,885,000,000 | 8,933,000,000 | 8,885,000,000 | 8,933,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 6,797,000,000 | 6,960,000,000 | 6,974,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 1,120,000,000 | 1,078,000,000 | 1,105,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | 10,000,000 | 40,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Latin America Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 901,000,000 | 897,000,000 | 901,000,000 | 897,000,000 | 901,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | [1],[4] | 3,566,000,000 | 3,392,000,000 | 4,988,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 565,000,000 | 271,000,000 | 485,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asia Middle East Africa Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 3,371,000,000 | 3,324,000,000 | 3,371,000,000 | 3,324,000,000 | 3,371,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | [2] | 5,739,000,000 | 5,816,000,000 | 6,002,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 516,000,000 | 506,000,000 | 389,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Aircraft | Corporate Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | 3,000,000 | 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | Europe And EEMEA segments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs related to divestiture | 278,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | North America Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of property | 6,000,000 | 33,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | Corporate Aircraft | Corporate Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of property | 1,000,000 | $ 6,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | $ 70,000,000 | 70,000,000 | 98,000,000 | 71,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | Europe Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 19,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | North America Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 38,000,000 | 19,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks | Asia Middle East Africa Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | 19,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acorn Holdings BV | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired by other parties | 73.50% | 73.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Burton's Biscuit Company | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for acquisition | $ 245,000,000 | £ 199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, definite-life intangible assets | 66,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 173,000,000 | $ 385,000,000 | 385,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, property, plant and equipment | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, inventory | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 59,000,000 | 16,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 8,000,000 | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Acorn Holdings BV | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired by other parties | 73.22% | 73.50% | 73.50% | 73.22% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 6,275,000,000 | 6,329,000,000 | 6,302,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | Trademarks | Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | $ 7,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vietnam | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 80.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for acquisition | 569,000,000 | ₫ 12,404 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | 71,000,000 | 121,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | 5,000,000 | 21,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remaining interest in biscuit operation to be acquired | 20.00% | 20.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Escrow deposit | $ 70,000,000 | 9,000,000 | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Escrowed retained amount | 20,000,000 | 4,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payment for the non-compete and continued consulting agreements | $ 35,000,000 | ₫ 759 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vietnam | Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition costs | 7,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business integration costs | 7,000,000 | 9,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax Authority, Spain | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and penalties expected to be paid | 34,000,000 | € 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | Europe Segment | The Kraft Heinz Company | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 3,000,000 | € 2 | $ 11,000,000 | € 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | Australia And New Zealand | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 347,000,000 | AUD 456 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on divestiture | 187,000,000 | AUD 247 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs related to divestiture | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other current assets | 27,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other non current assets | 135,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other current liabilities | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on foreign currency derivatives | (3,000,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory-related working capital adjustment | 3,000,000 | 3,000,000 | $ 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on Inventory working capital adjustment | $ 190,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | FRANCE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on divestiture | (3,000,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs related to divestiture | $ 84,000,000 | $ 27,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other current assets | $ 44,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other non current assets | 155,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other current liabilities | 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property, plant and equipment and other | 169,000,000 | € 157 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, including discontinued operation, other non current liabilities | $ 22,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | FRANCE | Trademarks | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset impairment | $ 14,000,000 | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | BELGIUM | Confectionery Business in Costa Rica and Chocolate Factory in Belgium | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs related to divestiture | 14,000,000 | € 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain or loss on deconsolidation | 68,000,000 | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed asset impairment charge | 31,000,000 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal group, not discontinued operation, gain (loss) on disposal | 23,000,000 | € 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | COSTA RICA | Latin America Segment | Confectionery Business in Costa Rica and Chocolate Factory in Belgium | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 28,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs related to divestiture | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain or loss on deconsolidation | 9,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment, divested | 11,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, divested | 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, divested | $ 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | FINLAND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 16,000,000 | € 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property, plant and equipment and other | $ 2,000,000 | € 2 | 14,000,000 | € 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indefinite-lived Intangible assets, divested | 8,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain after transaction costs, net of tax | 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | FINLAND | Selling, general and administrative expenses | Europe Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax gain after transaction costs | 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain after transaction costs, net of tax | 5,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Held-for-sale | Japan | Asia Middle East Africa Segment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 24,000,000 | ¥ 2.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations, Disposed of by Sale | Russia | Manufacturing Plant | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed asset impairment charge | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of expenses associated with property disposal | 12,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of property | $ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Final Valuation | Vietnam | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, goodwill | 385,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, property, plant and equipment | 49,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business acquisition, inventory | 10,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets acquired | 86,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other net assets (liabilities) acquired | $ 31,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum | Discontinued Operations, Held-for-sale | FINLAND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets, divested | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 26.50% | 26.50% | 43.50% | 26.40% | 26.40% | 26.40% | 43.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of equity interest acquired | 26.50% | 26.50% | 26.50% | 26.50% | 26.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of profit and dividend sharing interest | 26.20% | 26.20% | 26.20% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends received | $ 49,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from divestiture of businesses | $ 275,000,000 | $ 4,200,000,000 | € 3,800 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Divestiture of business, receivable | 794,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and receivables recorded related to the reimbursement of costs incurred from separating a business | $ 283,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on divestiture | $ 7,100,000,000 | 6,800,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains on coffee business transactions and divestiture, after tax | 6,600,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deconsolidated net assets | 2,900,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement losses | 90,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduction in pre-tax gain on coffee business transactions and divestiture | $ 313,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | $ 4,500,000,000 | € 4,100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, pro rata share of capital increase | $ 544,000,000 | € 499 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on equity method investment transaction | $ 43,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE | Non-cash | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, pro rata share of capital increase | 501,000,000 | 460 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE | Cash | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, pro rata share of capital increase | $ 43,000,000 | € 39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE | Equity Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | $ 129,000,000 | 100,000,000 | $ (58,000,000) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE | Acorn Holdings BV | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying value of equity method investments exchanged | $ 2,000,000,000 | € 1,700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE | Class C,D and E | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation, dilution percentage | 2.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE | Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 26.40% | 26.50% | 26.50% | 26.40% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE | Tax Authority, Spain | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unfavorable tax expense | € | € 114 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JDE | Minimum | Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 26.27% | 26.27% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One of equity method investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on equity method investment transaction | $ 40,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from sales of equity method investment | 65,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on equity method investment transactions, tax expense | $ 15,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 24.20% | 24.20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | $ 1,600,000,000 | 1,600,000,000 | $ 1,600,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholder loan receivable | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholder loan receivable, interest rate | 5.50% | 5.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholder loan receivable, loan term | 7 years | 7 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest payments received on shareholder loan | $ 30,000,000 | 14,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment dividend received | 14,000,000 | 4,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. tax reform transition tax | 119,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | Equity Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | 208,000,000 | 77,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | Interest Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment net (losses) / earnings | $ 24,000,000 | $ 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keurig Green Mountain Inc. | Acorn Holdings BV | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combination, consideration transferred | $ 13,900,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keurig Dr Pepper Transaction | Minimum | Scenario Forecast | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 13.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Keurig Dr Pepper Transaction | Maximum | Scenario Forecast | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition And Dispositions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment, ownership percentage | 14.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | In 2015, 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. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 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] | Net revenues of $1,217 million for 2015 from our Venezuelan subsidiaries are included in our consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our consolidated financial statements. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. |
Summary Financial Information f
Summary Financial Information for Equity Method Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 07, 2016 | ||
Summary Balance Sheet for Equity Method Investments | |||||
Equity method investments | $ 6,345 | $ 5,585 | |||
Summary Statement of Operations for Equity Method Investments | |||||
Equity method investment net (losses) / earnings | [1] | 460 | 301 | $ 56 | |
Jacobs Douwe Egberts and Other Equity Method Investments | |||||
Summary Balance Sheet for Equity Method Investments | |||||
Current assets | 4,732 | 4,458 | |||
Noncurrent assets | 38,282 | 35,089 | |||
Total assets | 43,014 | 39,547 | |||
Current liabilities | 5,822 | 4,148 | |||
Noncurrent liabilities | 15,424 | 16,472 | |||
Total liabilities | 21,246 | 20,620 | |||
Equity attributable to noncontrolling interests | 83 | 59 | |||
Keurig shareholder loan | 440 | 440 | |||
Summary Statement of Operations for Equity Method Investments | |||||
Net revenues | 12,781 | 10,923 | 4,993 | ||
Gross profit | 4,891 | 4,219 | 1,551 | ||
Income from continuing operations | 1,604 | 839 | 96 | ||
Net income | 1,604 | 839 | 97 | ||
Jacobs Douwe Egberts and Other Equity Method Investments | Investee | |||||
Summary Balance Sheet for Equity Method Investments | |||||
Equity attributable to shareowners of investees | 21,685 | 18,868 | |||
Total net equity of investees | 21,768 | 18,927 | |||
Equity method investments | [2] | 5,905 | 5,145 | ||
Summary Statement of Operations for Equity Method Investments | |||||
Net income | 1,594 | 838 | 97 | ||
Equity method investment net (losses) / earnings | $ 436 | $ 281 | $ 56 | ||
Jacobs Douwe Egberts and Other Equity Method Investments | Minimum | |||||
Summary Statement of Operations for Equity Method Investments | |||||
Mondelz International ownership interests | 24.00% | 24.00% | 40.00% | ||
Jacobs Douwe Egberts and Other Equity Method Investments | Maximum | |||||
Summary Statement of Operations for Equity Method Investments | |||||
Mondelz International ownership interests | 50.00% | 50.00% | 50.00% | ||
Keurig Green Mountain Inc. | |||||
Summary Balance Sheet for Equity Method Investments | |||||
Equity method investments | $ 1,600 | ||||
Summary Statement of Operations for Equity Method Investments | |||||
Mondelz International ownership interests | 24.20% | ||||
Keurig Green Mountain Inc. | Interest Income | |||||
Summary Statement of Operations for Equity Method Investments | |||||
Equity method investment net (losses) / earnings | $ 24 | $ 20 | $ 0 | ||
[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. 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. See Note 1, Summary of Significant Accounting Policies - Principles of Consolidation, for additional information. | ||||
[2] | Includes approximately $360 million of basis differences between the U.S. GAAP accounting basis for our equity method investments and the U.S. GAAP accounting basis of our investees' equity. |
Summary Financial Information49
Summary Financial Information for Equity Method Investments (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jul. 02, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||
After-tax equity method investment net earnings | $ 224 | $ 103 | $ 67 | $ 66 | $ 83 | $ 31 | $ 102 | $ 85 | $ 460 | $ 301 | $ 0 | ||
Operating income | 3,506 | 2,569 | $ 8,897 | ||||||||||
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 | ||||||||||||
US GAAP basis difference from equity method investments | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Basis Differences | $ 360 | $ 360 |
Components of Inventories (Deta
Components of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw materials | $ 711 | $ 722 |
Finished product | 1,975 | 1,865 |
Inventories, gross | 2,686 | 2,587 |
Inventory reserves | (129) | (118) |
Inventories, net | $ 2,557 | $ 2,469 |
Property, Plant and Equipment51
Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 15,680 | $ 14,687 |
Accumulated depreciation | (7,003) | (6,458) |
Property, plant and equipment, net | 8,677 | 8,229 |
Land and Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 458 | 471 |
Buildings and Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,979 | 2,801 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 11,195 | 10,302 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,048 | $ 1,113 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Capital expenditures | $ 1,014 | $ 1,224 | $ 1,514 |
Accrued capital expenditures unpaid | 357 | 343 | 322 |
Asset impairments and accelerated depreciation | 334 | 446 | 345 |
2014-2018 Restructuring Program | |||
Property, Plant and Equipment [Line Items] | |||
Asset impairments and accelerated depreciation | $ 206 | $ 301 | $ 264 |
Summary of Asset Impairment and
Summary of Asset Impairment and Exit Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | $ 334 | $ 446 | $ 345 |
2014-2018 Restructuring Program | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | 206 | 301 | 264 |
2014-2018 Restructuring Program | Latin America Segment | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | 36 | 22 | 46 |
2014-2018 Restructuring Program | Asia Middle East Africa Segment | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | 81 | 44 | 88 |
2014-2018 Restructuring Program | Europe Segment | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | 58 | 122 | 65 |
2014-2018 Restructuring Program | North America Segment | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | 30 | 111 | 65 |
2014-2018 Restructuring Program | Corporate Segment | |||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | |||
Non-cash property, plant and equipment write-downs | $ 1 | $ 2 | $ 0 |
Goodwill by Reportable Operatin
Goodwill by Reportable Operating Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | |||
Goodwill | $ 21,085 | $ 20,276 | $ 20,664 |
Latin America Segment | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 901 | 897 | |
Asia Middle East Africa Segment | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 3,371 | 3,324 | |
Europe Segment | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 7,880 | 7,170 | |
North America Segment | |||
Segment Reporting Information [Line Items] | |||
Goodwill | $ 8,933 | $ 8,885 |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Intangible Assets [Line Items] | |||
Non-amortizable intangible assets | $ 17,671 | $ 17,004 | |
Amortizable intangible assets | 2,386 | 2,315 | |
Total intangible assets, gross | 20,057 | 19,319 | $ 19,847 |
Accumulated amortization | (1,418) | (1,218) | |
Intangible assets, net | $ 18,639 | $ 18,101 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017USD ($)Brand | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 02, 2016USD ($) | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Amortization expense for intangible assets | $ 178,000,000 | $ 176,000,000 | $ 181,000,000 | ||
Estimated amortization expense in year 1 | 175,000,000 | ||||
Estimated amortization expense in year 2 | 175,000,000 | ||||
Estimated amortization expense in year 3 | 175,000,000 | ||||
Estimated amortization expense in year 4 | 85,000,000 | ||||
Estimated amortization expense in year 5 | 85,000,000 | ||||
Goodwill, Divestitures | 114,000,000 | 4,000,000 | |||
Intangible Assets, Divestitures | 100,000,000 | 8,000,000 | |||
Business acquisition, goodwill adjustments | 15,000,000 | ||||
Intangible Assets, Acquisition | 7,000,000 | ||||
Business acquisition, goodwill | 21,085,000,000 | 20,276,000,000 | 20,664,000,000 | ||
Intangible asset impairment | 109,000,000 | 137,000,000 | 83,000,000 | ||
Impairment of goodwill | 0 | 0 | 0 | ||
Number of brands impaired trademarks | Brand | 5 | ||||
Number of brands | Brand | 13 | ||||
Indefinite-lived intangible assets at risk | 17,671,000,000 | 17,004,000,000 | |||
Burton's Biscuit Company | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Business acquisition, goodwill adjustments | 76,000,000 | ||||
Business acquisition, goodwill | 385,000,000 | $ 173,000,000 | |||
North America Segment | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Business acquisition, goodwill | 8,933,000,000 | 8,885,000,000 | |||
Intangible asset impairment | 1,000,000 | ||||
Europe Segment | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Business acquisition, goodwill | 7,880,000,000 | 7,170,000,000 | |||
Asia Middle East Africa Segment | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Business acquisition, goodwill | 3,371,000,000 | 3,324,000,000 | |||
FRANCE | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill, Divestitures | 23,000,000 | ||||
Intangible Assets, Divestitures | 62,000,000 | ||||
Vietnam | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Finite-lived intangible assets acquired | 25,000,000 | ||||
Indefinite-lived intangible assets acquired | 61,000,000 | ||||
Trademarks | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | $ 70,000,000 | 70,000,000 | 98,000,000 | 71,000,000 | |
Trademarks | North America Segment | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 38,000,000 | 19,000,000 | |||
Trademarks | Europe Segment | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 19,000,000 | ||||
Trademarks | Asia Middle East Africa Segment | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 19,000,000 | ||||
Trademarks | Venezuela | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | $ 12,000,000 | ||||
Fair Value Over Book Value 10% or Less | Trademarks | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Indefinite-lived intangible assets at risk | $ 963,000,000 | ||||
Equity Method Investments | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible assets | 14,000,000 | ||||
Sale Of Confectionery Business In Costa Rica | Japan | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill, divested | 5,000,000 | ||||
Intangible assets | 24,000,000 | ||||
Sale Of Confectionery Business In France | Trademarks | Europe Segment | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible asset impairment | 20,000,000 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Australia And New Zealand | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill, Divestitures | $ 86,000,000 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | FINLAND | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Intangible assets | 8,000,000 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Sale Of Confectionery Business In Costa Rica | COSTA RICA | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Goodwill, divested | $ 4,000,000 |
Changes in Goodwill and Intangi
Changes in Goodwill and Intangible Assets (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill beginning balance | $ 20,276,000,000 | $ 20,664,000,000 | |
Goodwill, Currency | 909,000,000 | (464,000,000) | |
Goodwill, Divestitures | (114,000,000) | (4,000,000) | |
Goodwill, Acquisitions | 15,000,000 | 80,000,000 | |
Goodwill, Asset impairments | 0 | 0 | $ 0 |
Goodwill, Other | (1,000,000) | 0 | |
Goodwill ending balance | 21,085,000,000 | 20,276,000,000 | 20,664,000,000 |
Intangible Assets, at Cost beginning balance | 19,319,000,000 | 19,847,000,000 | |
Intangible Assets, Currency | 954,000,000 | (540,000,000) | |
Intangible Assets, Divestitures | (100,000,000) | (8,000,000) | |
Intangible Assets, Acquisitions | (7,000,000) | 158,000,000 | |
Intangible Assets, Asset impairments | (109,000,000) | (137,000,000) | (83,000,000) |
Intangible Assets, Other | 0 | (1,000,000) | |
Intangible Assets, at Cost ending balance | $ 20,057,000,000 | $ 19,319,000,000 | $ 19,847,000,000 |
2014-2018 Restructuring Progr58
2014-2018 Restructuring Program - Additional Information (Detail) - USD ($) $ in Millions | Aug. 31, 2016 | May 06, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Capital expenditures | $ 1,014 | $ 1,224 | $ 1,514 | ||||
2014-2018 Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | $ 5,700 | ||||||
Reallocation of previously approved capital expenditures to be spent on restructuring program cash costs | 600 | ||||||
Restructuring and related cost, cost incurred | 792 | 1,086 | 1,002 | $ 3,261 | [1] | ||
Restructuring charges | 535 | 714 | 711 | 2,234 | [1] | ||
Cash spent | 347 | 315 | |||||
Non-cash asset write-downs | 215 | 321 | |||||
Restructuring reserve | 464 | 464 | 395 | 464 | |||
Implementation Costs | 257 | 372 | 291 | 1,027 | [1] | ||
2014-2018 Restructuring Program | Maximum | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Capital expenditures | 1,600 | $ 2,200 | |||||
2014-2018 Restructuring Program | Restructuring Program Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | 4,100 | $ 3,500 | |||||
2014-2018 Restructuring Program | Cash Expense | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | 3,100 | ||||||
2014-2018 Restructuring Program | Non Cash Expense | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | $ 1,000 | ||||||
2014-2018 Restructuring Program | Selling, general and administrative expenses | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Implementation Costs | 257 | $ 372 | $ 291 | ||||
2014-2018 Restructuring Program | Other current liabilities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve | 412 | 412 | |||||
2014-2018 Restructuring Program | Other liabilities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve | $ 52 | $ 52 | |||||
[1] | Includes all charges recorded since program inception on May 6, 2014 through December 31, 2017. |
Schedule of Restructuring Costs
Schedule of Restructuring Costs (Detail) - 2014-2018 Restructuring Program - USD ($) $ in Millions | 12 Months Ended | 44 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | ||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at beginning of period | $ 464 | $ 395 | |||
Charges | 535 | 714 | $ 711 | $ 2,234 | [1] |
Cash spent | (347) | (315) | |||
Non-cash settlements/adjustments | (215) | (321) | |||
Currency | 27 | (9) | |||
Balance at end of period | 464 | 464 | 395 | 464 | |
Severance and Related Costs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at beginning of period | 464 | 395 | |||
Charges | 323 | 402 | |||
Cash spent | (347) | (315) | |||
Non-cash settlements/adjustments | (3) | (9) | |||
Currency | 27 | (9) | |||
Balance at end of period | 464 | 464 | 395 | 464 | |
Asset Write-Downs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Balance at beginning of period | 0 | 0 | |||
Charges | 212 | 312 | |||
Cash spent | 0 | 0 | |||
Non-cash settlements/adjustments | (212) | (312) | |||
Currency | 0 | 0 | |||
Balance at end of period | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | Includes all charges recorded since program inception on May 6, 2014 through December 31, 2017. |
Restructuring and Implementatio
Restructuring and Implementation Costs (Detail) - 2014-2018 Restructuring Program - USD ($) $ in Millions | 12 Months Ended | 44 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | [1] | ||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | $ 535 | $ 714 | $ 711 | $ 2,234 | ||
Implementation Costs | 257 | 372 | 291 | 1,027 | ||
Total | 792 | 1,086 | 1,002 | 3,261 | ||
Operating Segments | Latin America Segment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 93 | 111 | 145 | 430 | ||
Implementation Costs | 43 | 54 | 39 | 152 | ||
Total | 136 | 165 | 184 | 582 | ||
Operating Segments | Asia Middle East Africa Segment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 141 | 96 | 181 | 448 | ||
Implementation Costs | 43 | 48 | 26 | 129 | ||
Total | 184 | 144 | 207 | 577 | ||
Operating Segments | Europe Segment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | 195 | 310 | 243 | 844 | ||
Implementation Costs | 68 | 88 | 78 | 272 | ||
Total | 263 | 398 | 321 | 1,116 | ||
Operating Segments | North America Segment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | [2] | 94 | 183 | 114 | 448 | |
Implementation Costs | [2] | 58 | 121 | 69 | 253 | |
Total | [2] | 152 | 304 | 183 | 701 | |
Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Costs | [3] | 12 | 14 | 28 | 64 | |
Implementation Costs | [3] | 45 | 61 | 79 | 221 | |
Total | [3] | $ 57 | $ 75 | $ 107 | $ 285 | |
[1] | Includes all charges recorded since program inception on May 6, 2014 through December 31, 2017. | |||||
[2] | During 2017 and 2016, our North America region implementation costs included incremental costs that we incurred related to renegotiating 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. | |||||
[3] | Includes adjustment for rounding. |
Short-Term Borrowings and Relat
Short-Term Borrowings and Related Weighted-Average Interest Rates (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt [Line Items] | ||
Amount outstanding | $ 3,517 | $ 2,531 |
Commercial Paper | ||
Short-term Debt [Line Items] | ||
Amount outstanding | $ 3,410 | $ 2,371 |
Weighted-average rate | 1.70% | 1.00% |
Bank Loans | ||
Short-term Debt [Line Items] | ||
Amount outstanding | $ 107 | $ 160 |
Weighted-average rate | 11.50% | 10.60% |
Debt and Borrowing Arrangemen62
Debt and Borrowing Arrangements - Additional Information (Detail) € in Millions, SFr in Millions, BRL in Millions | Sep. 30, 2017USD ($) | Sep. 30, 2017BRL | Apr. 12, 2017USD ($) | Mar. 30, 2017USD ($) | Mar. 30, 2017CHF (SFr) | Mar. 13, 2017CHF (SFr) | Mar. 01, 2017USD ($) | Dec. 16, 2016USD ($) | Oct. 28, 2016USD ($) | Oct. 19, 2016USD ($) | Oct. 14, 2016USD ($) | Oct. 13, 2016 | Feb. 09, 2016USD ($) | Jan. 26, 2016USD ($) | Jan. 21, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Mar. 30, 2017CHF (SFr) | Jan. 26, 2017USD ($) | Jan. 26, 2017EUR (€) | Oct. 31, 2016USD ($) | Jan. 31, 2016USD ($) | Jan. 26, 2016CHF (SFr) | Jan. 21, 2016EUR (€) |
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Deferred debt issuance costs | $ 40,000,000 | $ 33,000,000 | $ 40,000,000 | $ 33,000,000 | ||||||||||||||||||||||||
Unamortized non-cash bond premiums, discounts, bank fees and mark-to-market adjustments | (64,000,000) | |||||||||||||||||||||||||||
Long-term debt repaid | 1,470,000,000 | 6,186,000,000 | $ 4,975,000,000 | |||||||||||||||||||||||||
Loss on early extinguishment of debt | 11,000,000 | 428,000,000 | $ 748,000,000 | |||||||||||||||||||||||||
Carrying value of total debt | $ 17,199,000,000 | $ 17,652,000,000 | $ 17,199,000,000 | $ 17,652,000,000 | ||||||||||||||||||||||||
Weighted-average interest rate | 2.20% | 2.10% | 2.20% | 3.70% | 2.10% | |||||||||||||||||||||||
Fair value of total debt | $ 17,882,000,000 | $ 18,354,000,000 | $ 17,882,000,000 | $ 18,354,000,000 | ||||||||||||||||||||||||
Contingency provision accruals | $ 212,000,000 | BRL 667 | ||||||||||||||||||||||||||
International Subsidiaries | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | 1,800,000,000 | 2,000,000,000 | 1,800,000,000 | 2,000,000,000 | ||||||||||||||||||||||||
Line of credit facility outstanding amount | 160,000,000 | 107,000,000 | 160,000,000 | 107,000,000 | ||||||||||||||||||||||||
Revolving Credit Facility | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 1,500,000,000 | |||||||||||||||||||||||||||
Line of credit facility outstanding amount | 0 | 0 | ||||||||||||||||||||||||||
Line of credit, expiration period | 364 days | |||||||||||||||||||||||||||
Revolving credit facility expiration date | Feb. 28, 2018 | |||||||||||||||||||||||||||
Revolving Credit Facility, October 11, 2021 | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Revolving credit facility, maximum borrowing capacity | 4,500,000,000 | 4,500,000,000 | ||||||||||||||||||||||||||
Line of credit facility outstanding amount | 0 | $ 0 | ||||||||||||||||||||||||||
Revolving credit facility expiration date | Oct. 11, 2018 | Oct. 11, 2021 | ||||||||||||||||||||||||||
Revolving credit facility debt covenant | $ 24,600,000,000 | |||||||||||||||||||||||||||
Revolving credit facility debt covenant terms | Minimum shareholders' equity of at least $24.6 billion, excluding accumulated other comprehensive earnings/(losses) and the cumulative effects of any changes in accounting principles. | |||||||||||||||||||||||||||
Revolving credit facility debt covenant compliance | At December 31, 2017, we complied with this covenant | |||||||||||||||||||||||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings / (losses) | $ 36,100,000,000 | $ 36,100,000,000 | ||||||||||||||||||||||||||
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 gave notice of our intent to fully draw on the loan with a five-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 | |||||||||||||||||||||||||||
Minimum | Commercial Paper | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Commercial paper, Maturity period | 2 days | |||||||||||||||||||||||||||
Maximum | Commercial Paper | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Commercial paper, Maturity period | 75 days | |||||||||||||||||||||||||||
6.500% U.S. dollar-denominated Notes | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 488,000,000 | |||||||||||||||||||||||||||
Debt instrument, interest rate | 6.50% | |||||||||||||||||||||||||||
Long-term debt repaid | $ 504,000,000 | |||||||||||||||||||||||||||
Loss on early extinguishment of debt | 11,000,000 | |||||||||||||||||||||||||||
Decrease in accrued interest | $ 5,000,000 | |||||||||||||||||||||||||||
0.000% Swiss franc-denominated Notes | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 175,000,000 | SFr 175 | ||||||||||||||||||||||||||
Debt instrument, interest rate | 0.00% | 0.00% | ||||||||||||||||||||||||||
Swiss franc notes | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | SFr 350 | $ 399,000,000 | $ 349,000,000 | SFr 400 | ||||||||||||||||||||||||
Net proceeds from issuance of notes | $ 349,000,000 | SFr 349 | 398,000,000 | |||||||||||||||||||||||||
Discounts and deferred financing costs | 1,000,000 | |||||||||||||||||||||||||||
0.050% Fixed Rate Notes, Mature on March 30, 2020 | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | SFr 225 | $ 224,000,000 | 224,000,000 | |||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.05% | |||||||||||||||||||||||||||
Debt instrument maturity Year | Mar. 30, 2020 | |||||||||||||||||||||||||||
0.617% Fixed Rate Notes, Mature on September 30, 2024 | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | SFr 125 | 125,000,000 | $ 125,000,000 | |||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.617% | |||||||||||||||||||||||||||
Debt instrument maturity Year | Sep. 30, 2024 | |||||||||||||||||||||||||||
1.125% Euro-denominated Notes | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 801,000,000 | € 750 | ||||||||||||||||||||||||||
Debt instrument, interest rate | 1.125% | 1.125% | ||||||||||||||||||||||||||
2.250% Fixed Rate Notes | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Long-term debt repaid | $ 850,000,000 | |||||||||||||||||||||||||||
Loss on early extinguishment of debt | $ 19,000,000 | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
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] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 3,750,000,000 | |||||||||||||||||||||||||||
Loss on early extinguishment of debt | 409,000,000 | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||
Tender Offer | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Gain / (loss) recognized in income on fair value of hedges | $ 1,000,000,000 | |||||||||||||||||||||||||||
1.625% Notes Due on October 28, 2019 | Mondelez International Holdings Netherlands BV | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 1,750,000,000 | |||||||||||||||||||||||||||
Debt instrument, interest rate | 1.625% | |||||||||||||||||||||||||||
Debt instrument maturity Year | Oct. 28, 2019 | |||||||||||||||||||||||||||
Floating Rate Notes Due on October 28, 2019 | Mondelez International Holdings Netherlands BV | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 500,000,000 | |||||||||||||||||||||||||||
Debt instrument maturity Year | Oct. 28, 2019 | |||||||||||||||||||||||||||
2.0% Notes Due on October 28, 2021 | Mondelez International Holdings Netherlands BV | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 1,500,000,000 | |||||||||||||||||||||||||||
Debt instrument, interest rate | 2.00% | |||||||||||||||||||||||||||
Debt instrument maturity Year | Oct. 28, 2021 | |||||||||||||||||||||||||||
4.125% U.S. dollar Notes | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 1,150,000,000 | |||||||||||||||||||||||||||
Debt instrument, interest rate | 4.125% | |||||||||||||||||||||||||||
Long-term debt repaid | $ 1,750,000,000 | |||||||||||||||||||||||||||
Euro notes | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | € | € 700 | |||||||||||||||||||||||||||
0.080% Fixed Rate Notes, mature on January 26, 2018 | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 249,000,000 | SFr 250 | ||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.08% | 0.08% | ||||||||||||||||||||||||||
Debt instrument maturity Year | Jan. 26, 2018 | |||||||||||||||||||||||||||
0.650% Fixed Rate Notes, mature on July 26, 2022 | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 150,000,000 | SFr 150 | ||||||||||||||||||||||||||
Debt instrument, fixed interest rate | 0.65% | 0.65% | ||||||||||||||||||||||||||
Debt instrument maturity Year | Jul. 26, 2022 | |||||||||||||||||||||||||||
1.625% Notes Due 2023 | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Debt instrument, principal amount | $ 760,000,000 | € 700 | ||||||||||||||||||||||||||
Debt instrument, interest rate | 1.625% | 1.625% | ||||||||||||||||||||||||||
Debt instrument maturity Year | Jan. 20, 2023 | |||||||||||||||||||||||||||
Net proceeds from issuance of notes | $ 752,000,000 | |||||||||||||||||||||||||||
Discounts and deferred financing costs | $ 8,000,000 | |||||||||||||||||||||||||||
Interest and other expense, net | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||
Contingency provision accruals | $ 59,000,000 | $ 59,000,000 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
U.S. Dollar notes | $ 8,327 | $ 8,812 |
Notes payable | 14,199 | |
Capital leases and other obligations | 5 | 9 |
Total | 14,135 | 14,668 |
Less current portion of long-term debt | (1,163) | (1,451) |
Long-term debt | 12,972 | 13,217 |
Euro notes | ||
Debt Instrument [Line Items] | ||
Notes payable | 3,653 | 3,980 |
Pound sterling notes | ||
Debt Instrument [Line Items] | ||
Notes payable | 456 | 418 |
Swiss franc notes | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 1,694 | $ 1,449 |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Notes (USD) | |
Debt Instrument [Line Items] | |
Maturity date | 2,040 |
Notes (USD) | Minimum | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 1.385% |
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 | 3.414% |
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 | 1.93% |
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 | 0.05% |
Swiss franc notes | Maximum | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 1.125% |
Swiss franc notes | Weighted Average | |
Debt Instrument [Line Items] | |
Debt instrument, effective interest rate | 0.627% |
Aggregate Maturities of Debt an
Aggregate Maturities of Debt and Capital Leases Based on Stated Contractual Maturities (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 1,163 |
2,019 | 2,651 |
2,020 | 896 |
2,021 | 3,373 |
2,022 | 754 |
Thereafter | 5,362 |
Total | $ 14,199 |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||||||||
Interest expense, debt | $ 396 | $ 515 | $ 609 | ||||||||
Loss on debt extinguishment and related expenses | $ 0 | $ 0 | $ 11 | $ 0 | $ 427 | $ 0 | $ 0 | $ 0 | 11 | 427 | 753 |
JDE coffee business transactions currency-related net gains | $ 0 | $ 0 | $ 0 | $ (97) | 0 | 0 | (436) | ||||
Loss related to interest rate swaps | 0 | 97 | 34 | ||||||||
Other (income)/expense, net | (25) | 76 | 53 | ||||||||
Interest and other expense, net | $ 382 | $ 1,115 | $ 1,013 |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 179 | $ 312 |
Liability Derivatives | 825 | 278 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 15 | 144 |
Liability Derivatives | 509 | 49 |
Derivatives Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 19 |
Liability Derivatives | 0 | 8 |
Derivatives Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 0 | 17 |
Liability Derivatives | 0 | 22 |
Derivatives Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 15 | 108 |
Liability Derivatives | 509 | 19 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 164 | 168 |
Liability Derivatives | 316 | 229 |
Derivatives Not Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 65 | 29 |
Liability Derivatives | 76 | 43 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 84 | 112 |
Liability Derivatives | 229 | 167 |
Derivatives Not Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 15 | 27 |
Liability Derivatives | $ 11 | $ 19 |
Derivative Instruments Fair Val
Derivative Instruments Fair Value and Measurement Inputs (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ (646) | $ 34 |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (11) | (3) |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (145) | (60) |
Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (490) | 97 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (138) | (86) |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (138) | (86) |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (508) | 120 |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (11) | (3) |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (7) | 26 |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (490) | 97 |
Significant Unobservable Inputs (Level 3) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ 0 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 08, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Loss related to interest rate swaps | $ 0 | $ 97,000,000 | $ 34,000,000 | ||||||
Hedged forecasted transactions | 5 years 10 months | ||||||||
Unrealized gains recorded in earnings related to planned coffee business transactions | $ 0 | $ 0 | $ 0 | $ 97,000,000 | $ 0 | 0 | 436,000,000 | ||
Interest rate contracts | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Notional Amount | 6,365,000,000 | 6,532,000,000 | 6,365,000,000 | ||||||
Interest rate contracts | Cash Flow Hedges | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Loss related to interest rate swaps | $ 97,000,000 | $ 34,000,000 | |||||||
Expected transfers of unrealized gains (losses) to earnings, within next 12 months | (1,000,000) | ||||||||
Cross Currency Interest Rate Contract | Subsequent Event | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Notional Amount | $ 3,200,000,000 | ||||||||
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 | ||||||||
Quoted Prices In Active Markets For Identical Assets (Level 1) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative liabilities after effects of netting | 2,000,000 | 0 | 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 | 34,000,000 | 48,000,000 | ||||||
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 | 171,000,000 | 133,000,000 | ||||||
Significant Other Observable Inputs (Level 2) | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative assets after effects of netting | 162,000,000 | 26,000,000 | 162,000,000 | ||||||
Derivative liabilities after effects of netting | $ 40,000,000 | $ 523,000,000 | $ 40,000,000 |
Notional Values of Derivative I
Notional Values of Derivative Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Net investment hedge | Euro notes | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,679 | $ 4,012 |
Net investment hedge | Pound sterling notes | ||
Derivative [Line Items] | ||
Notional Amount | 459 | 419 |
Net investment hedge | Swiss franc notes | ||
Derivative [Line Items] | ||
Notional Amount | 1,694 | 1,447 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | ||
Derivative [Line Items] | ||
Notional Amount | 7,089 | 3,343 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 2,213 | 1,452 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 1,204 | 837 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 6,532 | $ 6,365 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Accumulated (loss)/gain at beginning of period | $ (121) | $ (45) | $ (2) |
Transfer of realized (gains)/losses in fair value to earnings | 27 | 53 | 0 |
Unrealized gain/(loss) in fair value | (19) | (129) | (43) |
Accumulated (loss)/gain at end of period | $ (113) | $ (121) | $ (45) |
Effects of Cash Flow Hedges (De
Effects of Cash Flow Hedges (Detail) - Cash Flow Hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) reclassified from AOCI into earnings | $ (27) | $ (53) | $ 0 |
Gains / (losses) recognized in OCI | (19) | (129) | (43) |
Currency exchange contracts | Forecasted transactions | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) reclassified from AOCI into earnings | (3) | (1) | 83 |
Gains / (losses) recognized in OCI | (38) | 8 | 40 |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) reclassified from AOCI into earnings | (24) | (4) | (52) |
Gains / (losses) recognized in OCI | 7 | (34) | (35) |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) reclassified from AOCI into earnings | 0 | (48) | (31) |
Gains / (losses) recognized in OCI | $ 12 | $ (103) | $ (48) |
Fair Value Hedges (Detail)
Fair Value Hedges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain / (loss) recognized in income on fair value of hedges | $ (4) | $ (6) | $ (1) |
Long-term Debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain / (loss) recognized in income on fair value of hedges | $ 4 | $ 6 | $ 1 |
Economic Hedges (Detail)
Economic Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain / (Loss) Recognized in Earnings | $ 0 | $ 0 | $ 0 | $ 97 | $ 0 | $ 0 | $ 436 |
Economic Hedging | Derivatives Not Designated as Hedging Instruments | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain / (Loss) Recognized in Earnings | (241) | (138) | 443 | ||||
Economic Hedging | Derivatives Not Designated as Hedging Instruments | Commodity contracts | Cost of Sales | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gain / (Loss) Recognized in Earnings | (218) | (101) | (38) | ||||
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 | 13 | 21 | 29 | ||||
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 | (2) | 11 | 435 | ||||
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 | (37) | (76) | 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 | $ 3 | $ 7 | $ (12) |
Hedges of Net Investments in In
Hedges of Net Investments in International Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Euro notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) recognized in OCI | $ (323) | $ 73 | $ 268 |
Pound sterling notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) recognized in OCI | (26) | 148 | 42 |
Swiss franc notes | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains / (losses) recognized in OCI | $ (49) | $ 12 | $ 9 |
Projected Benefit Obligations,
Projected Benefit Obligations, Plan Assets and Funded Status of Pension Plans (Detail) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at January 1 | $ 6,817 | ||
Fair value of plan assets at December 31 | 8,534 | $ 6,817 | |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at January 1 | 1,614 | 1,566 | |
Service cost | 46 | 57 | $ 64 |
Interest cost | 62 | 61 | 67 |
Benefits paid | (32) | (32) | |
Settlements paid | (111) | (91) | |
Actuarial losses | 179 | 52 | |
Divestiture | 0 | 0 | |
Currency | 0 | 0 | |
Other | 4 | 1 | |
Accrued benefit obligation at December 31 | 1,762 | 1,614 | 1,566 |
Fair value of plan assets at January 1 | 1,620 | 1,247 | |
Actual return on plan assets | 217 | 118 | |
Contributions | 23 | 378 | |
Benefits paid | (32) | (32) | |
Settlements paid | (111) | (91) | |
Divestiture | 0 | 0 | |
Currency | 0 | 0 | |
Other | 0 | 0 | |
Fair value of plan assets at December 31 | 1,717 | 1,620 | 1,247 |
Net pension (liabilities)/assets at December 31 | (45) | 6 | |
Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at January 1 | 9,814 | 9,547 | |
Service cost | 156 | 147 | 188 |
Interest cost | 199 | 229 | 307 |
Benefits paid | (471) | (425) | |
Settlements paid | 0 | 0 | |
Actuarial losses | 180 | 1,284 | |
Divestiture | (14) | (5) | |
Currency | 976 | (979) | |
Other | 12 | 16 | |
Accrued benefit obligation at December 31 | 10,852 | 9,814 | 9,547 |
Fair value of plan assets at January 1 | 7,926 | 7,721 | |
Actual return on plan assets | 592 | 1,079 | |
Contributions | 482 | 419 | |
Benefits paid | (471) | (425) | |
Settlements paid | 0 | 0 | |
Divestiture | 0 | (4) | |
Currency | 798 | (863) | |
Other | 0 | (1) | |
Fair value of plan assets at December 31 | 9,327 | 7,926 | $ 7,721 |
Net pension (liabilities)/assets at December 31 | $ (1,525) | $ (1,888) |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plans resulted in net pension liability | $ (1,570,000,000) | $ (1,882,000,000) | |
Plan assets related to certain insurance contracts | 71,000,000 | 62,000,000 | |
Expense for defined contribution plans | 43,000,000 | 44,000,000 | $ 45,000,000 |
Multiemployer Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer pension plans | $ 26,000,000 | $ 25,000,000 | $ 31,000,000 |
Multiemployer Pension Plans | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's contribution of the total contribution of each plan | 5.00% | 5.00% | 5.00% |
Multiemployer Pension Plans | Bakery and Confectionery Union and Industry International Pension Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer pension plans | $ 22,000,000 | $ 21,000,000 | $ 27,000,000 |
Percentage of surcharge on contribution | 10.00% | ||
Multiemployer Pension Plans | Multiemployer Plan, Individually Insignificant Multiemployer Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer pension plans | 4,000,000 | 4,000,000 | $ 4,000,000 |
Multiemployer Plans, Postretirement Benefit | Multiemployer Medical Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer pension plans | 18,000,000 | 19,000,000 | 20,000,000 |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated from experience differences | 209,000,000 | ||
Pension Plans | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated prior service cost | 1,000,000 | ||
Pension Plans | Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 10,610,000,000 | 9,531,000,000 | |
Net periodic pension cost | $ 91,000,000 | $ 81,000,000 | 175,000,000 |
Allocation of pension plan asset | 100.00% | 100.00% | |
Employer contribution | $ 470,000,000 | ||
Employer non-recurring contribution | 250,000,000 | ||
Employees contribution | 12,000,000 | ||
Estimated future employer contributions | $ 250,000,000 | ||
Weighted-average discount rate | 2.20% | 2.31% | |
Rate of compensation increase | 3.31% | 3.29% | |
Pension Plans | Non-U.S. Pension Plans | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation on securities | 66.00% | ||
Allocation of pension plan asset | 60.00% | 57.00% | |
Pension Plans | Non-U.S. Pension Plans | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation on securities | 32.00% | ||
Allocation of pension plan asset | 28.00% | 29.00% | |
Pension Plans | Non-U.S. Pension Plans | Other Plan Asset | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation on securities | 2.00% | ||
Pension Plans | Non-U.S. Pension Plans | Non US Pension Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of pension plan asset | 63.00% | ||
Pension Plans | Non-U.S. Pension Plans | Non US Pension Assets | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation on securities | 23.00% | ||
Pension Plans | Non-U.S. Pension Plans | Non US Pension Assets | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation on securities | 20.00% | ||
Pension Plans | Non-U.S. Pension Plans | Non US Pension Assets | Liability Matching Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation on securities | 57.00% | ||
Pension Plans | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 1,715,000,000 | $ 1,540,000,000 | |
Net periodic pension cost | $ 81,000,000 | $ 95,000,000 | 102,000,000 |
Allocation of pension plan asset | 100.00% | 100.00% | |
Employer contribution | $ 23,000,000 | ||
Estimated future employer contributions | $ 39,000,000 | ||
Weighted-average discount rate | 3.68% | 4.19% | |
Rate of compensation increase | 4.00% | 4.00% | |
Pension Plans | U.S. Pension Plans | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of pension plan asset | 85.00% | 63.00% | |
Pension Plans | U.S. Pension Plans | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Allocation of pension plan asset | 15.00% | 33.00% | |
Pension Plans | Change in Assumptions for Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | $ (64,000,000) | ||
Postretirement Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | $ (4,000,000) | 22,000,000 | 43,000,000 |
Estimated from experience differences | 18,000,000 | ||
Estimated prior service cost | 39,000,000 | ||
Current portion of our accrued postretirement benefit obligation | $ 16,000,000 | $ 12,000,000 | |
Postretirement Benefit Plans | Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average discount rate | 4.24% | 4.55% | |
Postretirement Benefit Plans | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted-average discount rate | 3.66% | 4.14% | |
Postretirement Benefit Plans | Change in Assumptions for Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | $ (4,000,000) | ||
Postemployment Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension cost | $ 6,000,000 | $ 12,000,000 | $ 12,000,000 |
Weighted-average discount rate | 6.50% | 6.20% | |
Ultimate annual turnover rate | 0.30% | 0.30% | |
Rate of compensation increase | 4.00% | 4.00% | |
Defined benefit plan, amount to be amortized from accumulated other comprehensive income (loss) next fiscal year | $ 3,000,000 | ||
U.S. And International Investment Grade Debt Securities | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation on securities | 95.00% |
Pension Plans Resulted in Net P
Pension Plans Resulted in Net Pension Liability (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Prepaid pension assets | $ 158 | $ 159 |
Other current liabilities | (59) | (27) |
Accrued pension costs | (1,669) | (2,014) |
Total | (1,570) | (1,882) |
Pension Plans | U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 94 | 96 |
Accumulated benefit obligation | 90 | 88 |
Fair value of plan assets | 2 | 2 |
Pension Plans | Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 9,345 | 8,386 |
Accumulated benefit obligation | 9,138 | 8,168 |
Fair value of plan assets | $ 7,709 | $ 6,451 |
Weighted-Average Assumptions to
Weighted-Average Assumptions to Determine Benefit Obligations (Detail) - Pension Plans | Dec. 31, 2017 | Dec. 31, 2016 |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.68% | 4.19% |
Expected rate of return on plan assets | 5.50% | 6.25% |
Rate of compensation increase | 4.00% | 4.00% |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.20% | 2.31% |
Expected rate of return on plan assets | 4.90% | 5.14% |
Rate of compensation increase | 3.31% | 3.29% |
Components of Net Periodic Pens
Components of Net Periodic Pension Cost (Detail) - Pension Plans - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 46 | $ 57 | $ 64 | |
Interest cost | 62 | 61 | 67 | |
Expected return on plan assets | (101) | (97) | (93) | |
Net loss from experience differences | 37 | 42 | 43 | |
Prior service cost/(benefit) | [1] | 2 | 2 | 2 |
Settlement losses and other expenses | [2] | 35 | 30 | 19 |
Net periodic pension cost | 81 | 95 | 102 | |
Non-U.S. Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 156 | 147 | 188 | |
Interest cost | 199 | 229 | 307 | |
Expected return on plan assets | (434) | (418) | (478) | |
Net loss from experience differences | 167 | 120 | 141 | |
Prior service cost/(benefit) | [1] | (3) | (3) | 15 |
Settlement losses and other expenses | [2] | 6 | 6 | 2 |
Net periodic pension cost | $ 91 | $ 81 | $ 175 | |
[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 $11 million for the year ended December 31, 2017, $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 of $21 million for our U.S. plans and $6 million for our non-U.S. plans in 2017, $15 million for our U.S. plans and $6 million for our non-U.S. plans in 2016 and $10 million for our U.S. plans and $2 million for our non-U.S. plans in 2015. See Note 6, 2014-2018 Restructuring Program, for more information. |
Components of Net Periodic Pe81
Components of Net Periodic Pension Cost (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 11 | $ 15 | 9 |
Pension Plans | U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement losses | 21 | 15 | 10 |
Pension Plans | Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement losses | $ 6 | $ 6 | $ 2 |
Weighted-Average Assumptions 82
Weighted-Average Assumptions to Determine Net Periodic Pension Cost (Detail) - Pension Plans | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.19% | 4.50% | 4.20% |
Expected rate of return on plan assets | 6.25% | 6.75% | 7.25% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.31% | 3.11% | 2.99% |
Expected rate of return on plan assets | 5.14% | 5.87% | 5.96% |
Rate of compensation increase | 3.29% | 3.18% | 3.26% |
Fair Value of Pension Plan Asse
Fair Value of Pension Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 8,534 | $ 6,817 | |
Investments measured at net asset value | 2,439 | 2,667 | |
Total investments at fair value | 10,973 | 9,484 | |
Pension Plans | U.S. Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2 | 1 | |
Pension Plans | Non-U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5 | 427 | |
Pension Plans | Pooled Funds - Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,340 | 1,524 | |
Pension Plans | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,347 | 1,952 | |
Pension Plans | Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,237 | 3,009 | |
Pension Plans | Pooled Funds - Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 602 | 756 | |
Pension Plans | Corporate Bonds And Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,102 | 852 | |
Pension Plans | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5,941 | 4,617 | |
Pension Plans | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 156 | 170 | |
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 | 86 | 73 | |
Pension Plans | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2 | 3 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,658 | 1,382 | |
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 | 2 | 1 | |
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 | 5 | 427 | |
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 | 848 | 286 | |
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 | 855 | 714 | |
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 | 34 | 37 | |
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 | 449 | 103 | |
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 | 133 | 357 | |
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 | 616 | 497 | |
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 | 120 | 98 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | Pension Plans | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
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 | 66 | 72 | |
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 | 6,060 | 4,833 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | U.S. Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Non-U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Pooled Funds - Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,492 | 1,235 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,492 | 1,235 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,203 | 2,972 | |
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 | 153 | 618 | |
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 | 1,179 | (43) | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4,535 | 3,547 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 13 | 50 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Private Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 20 | 1 | |
Significant Other Observable Inputs (Level 2) | Pension Plans | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 816 | 602 | $ 924 |
Significant Unobservable Inputs (Level 3) | Non-U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 3 | 0 |
Significant Unobservable Inputs (Level 3) | Pooled Funds - Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 35 | 26 |
Significant Unobservable Inputs (Level 3) | Corporate Bonds And Other Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 790 | 538 | 665 |
Significant Unobservable Inputs (Level 3) | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 23 | 22 | $ 230 |
Significant Unobservable Inputs (Level 3) | Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 816 | 602 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | U.S. Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Non-U.S. Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Pooled Funds - Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 3 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 3 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Pooled Funds - Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 35 | |
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 | 790 | 538 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Fixed Income Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 790 | 573 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 23 | 22 | |
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 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 1 | $ 2 |
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, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | $ 602 | $ 924 |
Net Realized and Unrealized Gains/ (Losses) | 11 | 27 |
Net Purchases, Issuances and Settlements | 166 | (210) |
Net Transfers Into/(Out of) Level 3 | (25) | (6) |
Currency Impact | 62 | (133) |
Fair value of plan assets at December 31 | 816 | 602 |
Non-U.S. Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 3 | 0 |
Net Realized and Unrealized Gains/ (Losses) | 0 | 0 |
Net Purchases, Issuances and Settlements | 0 | 0 |
Net Transfers Into/(Out of) Level 3 | (3) | 3 |
Currency Impact | 0 | 0 |
Fair value of plan assets at December 31 | 0 | 3 |
Pooled Funds - Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 35 | 26 |
Net Realized and Unrealized Gains/ (Losses) | 0 | 6 |
Net Purchases, Issuances and Settlements | (16) | 15 |
Net Transfers Into/(Out of) Level 3 | (21) | (7) |
Currency Impact | 2 | (5) |
Fair value of plan assets at December 31 | 0 | 35 |
Corporate Bonds And Other Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 538 | 665 |
Net Realized and Unrealized Gains/ (Losses) | 10 | 21 |
Net Purchases, Issuances and Settlements | 182 | (41) |
Net Transfers Into/(Out of) Level 3 | 0 | 0 |
Currency Impact | 60 | (107) |
Fair value of plan assets at December 31 | 790 | 538 |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 22 | 230 |
Net Realized and Unrealized Gains/ (Losses) | 1 | 0 |
Net Purchases, Issuances and Settlements | 0 | (184) |
Net Transfers Into/(Out of) Level 3 | 0 | (3) |
Currency Impact | 0 | (21) |
Fair value of plan assets at December 31 | 23 | 22 |
Private Equity and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at January 1 | 4 | 3 |
Net Realized and Unrealized Gains/ (Losses) | 0 | 0 |
Net Purchases, Issuances and Settlements | 0 | 0 |
Net Transfers Into/(Out of) Level 3 | (1) | 1 |
Currency Impact | 0 | 0 |
Fair value of plan assets at December 31 | $ 3 | $ 4 |
Percentage of Fair Value of Pen
Percentage of Fair Value of Pension Plan Assets (Detail) - Pension Plans | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 15.00% | 33.00% |
U.S. Pension Plans | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 85.00% | 63.00% |
U.S. Pension Plans | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0.00% | 4.00% |
U.S. Pension Plans | Hedge Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0.00% | 0.00% |
U.S. Pension Plans | Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0.00% | 0.00% |
U.S. Pension Plans | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 0.00% | 0.00% |
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 | 28.00% | 29.00% |
Non-U.S. Pension Plans | Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 60.00% | 57.00% |
Non-U.S. Pension Plans | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 6.00% | 5.00% |
Non-U.S. Pension Plans | Hedge Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 4.00% | 6.00% |
Non-U.S. Pension Plans | Private Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 1.00% | 2.00% |
Non-U.S. Pension Plans | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of fair value pension plan assets | 1.00% | 1.00% |
Future Benefit Payments for Pen
Future Benefit Payments for Pension Plans (Detail) - Pension Plans $ in Millions | Dec. 31, 2017USD ($) |
U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 120 |
2,019 | 83 |
2,020 | 89 |
2,021 | 93 |
2,022 | 93 |
2023-2027 | 498 |
Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 375 |
2,019 | 375 |
2,020 | 387 |
2,021 | 409 |
2,022 | 409 |
2023-2027 | $ 2,196 |
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, 2017 | |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accrued benefit obligation at January 1 | $ 394 | $ 511 | ||
Service cost | 7 | 12 | $ 15 | |
Interest cost | 15 | 20 | 22 | |
Benefits paid | (15) | (14) | ||
Plan amendments | [1] | 0 | (149) | |
Currency | 8 | 3 | ||
Assumption changes | 30 | 34 | ||
Actuarial losses/(gains) | (4) | (23) | ||
Accrued benefit obligation at December 31 | $ 435 | $ 394 | $ 511 | |
[1] | Plan amendments in 2016 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 89
Weighted-Average Assumptions to Determine Postretirement Benefit Obligations (Detail) - Postretirement Benefit Plans | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.66% | 4.14% |
Health care cost trend rate assumed for next year | 6.25% | 6.50% |
Ultimate trend rate | 4.81% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,024 | 2,020 |
Non-U.S. Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.24% | 4.55% |
Health care cost trend rate assumed for next year | 5.56% | 5.50% |
Ultimate trend rate | 5.56% | 5.68% |
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, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on postretirement benefit obligation, Increase | $ 49 |
Effect on annual service and interest cost, Increase | 3 |
Effect on postretirement benefit obligation, Decrease | (40) |
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 | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 7 | $ 12 | $ 15 | ||
Interest cost | 15 | 20 | 22 | ||
Net loss from experience differences | $ (10) | 14 | 10 | 13 | |
Prior service credit | [1] | (40) | (20) | (7) | |
Net periodic benefit cost | $ (4) | $ 22 | $ 43 | ||
[1] | In the fourth quarter of 2016, the prior service credit included a one-time $9 million curtailment gain related to a change in the eligibility requirement resulting in ongoing amortization of $10 million. In 2017, we continue to amortize prior service credit and recorded $40 million on a full year basis. |
Components of Net Periodic Po92
Components of Net Periodic Postretirement Health Care Costs (Parenthetical) (Detail) - Postretirement Benefit Plans - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension curtailment gain | $ 9 | ||||
Net loss from experience differences | $ 10 | $ (14) | $ (10) | $ (13) | |
Prior service credit | [1] | $ (40) | $ (20) | $ (7) | |
[1] | In the fourth quarter of 2016, the prior service credit included a one-time $9 million curtailment gain related to a change in the eligibility requirement resulting in ongoing amortization of $10 million. In 2017, we continue to amortize prior service credit and recorded $40 million on a full year basis. |
Weighted-Average Assumptions 93
Weighted-Average Assumptions to Determine Net Periodic Postretirement Cost (Detail) - Postretirement Benefit Plans | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.14% | 4.60% | 4.20% |
Health care cost trend rate | 6.50% | 6.50% | 6.50% |
Non-U.S. Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.55% | 4.77% | 4.52% |
Health care cost trend rate | 5.50% | 5.50% | 5.18% |
Future Benefit Payments for Pos
Future Benefit Payments for Postretirement Health Care Plans (Detail) - Postretirement Benefit Plans $ in Millions | Dec. 31, 2017USD ($) |
U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 11 |
2,019 | 12 |
2,020 | 13 |
2,021 | 15 |
2,022 | 16 |
2023-2027 | 85 |
Non-U.S. Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 5 |
2,019 | 5 |
2,020 | 6 |
2,021 | 6 |
2,022 | 6 |
2023-2027 | $ 55 |
Changes in Accumulated Postempl
Changes in Accumulated Postemployment Benefit Obligations (Detail) - Postemployment Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued benefit obligation at January 1 | $ 71 | $ 95 | |
Service cost | 5 | 7 | $ 7 |
Interest cost | 4 | 6 | 5 |
Benefits paid | (6) | (9) | |
Assumption changes | 0 | (21) | |
Actuarial losses/(gains) | 2 | (7) | |
Accrued benefit obligation at December 31 | $ 76 | $ 71 | $ 95 |
Components of Net Postemploymen
Components of Net Postemployment Costs (Detail) - Postemployment Benefit Plans - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 5 | $ 7 | $ 7 |
Interest cost | 4 | 6 | 5 |
Amortization of net gains | (3) | (1) | 0 |
Net periodic benefit cost | $ 6 | $ 12 | $ 12 |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance share units vest ranges | 0.00% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of performance share units vest ranges | 200.00% | ||
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 | 67.2 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 50 | $ 57 | $ 50 |
Deferred tax benefit related to compensation expense | 12 | 15 | 13 |
Unamortized compensation expense related to our stock options | $ 44 | ||
Unamortized compensation expense recognition period | 1 year 2 months 12 days | ||
Restricted, Deferred Stock Units And Performance Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 87 | 83 | 86 |
Deferred tax benefit related to compensation expense | $ 23 | $ 22 | $ 24 |
Unamortized compensation expense recognition period | 1 year 9 months 18 days | ||
Unamortized compensation expense related to deferred stock units, performance share units and restricted stock | $ 138 |
Weighted-Average Black-Scholes
Weighted-Average Black-Scholes Fair Value Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-Free Interest Rate | 2.04% | 1.40% | 1.70% |
Expected Life (in years) | 6 years | 6 years | 6 years |
Expected Volatility | 22.75% | 23.11% | 18.51% |
Expected Dividend Yield | 1.74% | 1.61% | 1.61% |
Fair Value at Grant Date | $ 8.57 | $ 7.86 | $ 6.12 |
Stock Option Activity (Detail)
Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Shares subject to option | |||||
Beginning balance | 53,601,612 | 57,034,108 | 56,431,551 | ||
Options granted | 6,175,020 | 7,633,090 | 9,800,870 | ||
Options exercised | [1] | (9,431,009) | (8,883,101) | (6,444,515) | |
Options cancelled | (1,910,968) | (2,182,485) | (2,753,798) | ||
Ending balance | 48,434,655 | 53,601,612 | 57,034,108 | ||
Exercisable at end of the period | 37,240,858 | ||||
Weighted-average exercise price | |||||
Beginning balance | $ 28.02 | $ 26.12 | $ 24.19 | ||
Options granted | 43.18 | 39.74 | 36.84 | ||
Options exercised | [1] | 26.17 | 24.09 | 22.94 | |
Options cancelled | 38.10 | 35.23 | 32.35 | ||
Ending balance | 29.92 | $ 28.02 | $ 26.12 | ||
Exercisable at end of the period | $ 26.58 | ||||
Average remaining contractual term | |||||
Ending balance | 5 years | ||||
Exercisable at end of the period (in years) | 4 years | ||||
Aggregate intrinsic value | |||||
Options exercised | [1] | $ 170 | $ 174 | $ 108 | |
Aggregate intrinsic value | 626 | $ 874 | $ 1,068 | $ 685 | |
Exercisable at end of the period | $ 604 | ||||
Annual grant to eligible employees | |||||
Shares subject to option | |||||
Options granted | 6,012,140 | 7,517,290 | 8,899,530 | ||
Weighted-average exercise price | |||||
Options granted | $ 43.20 | $ 39.70 | $ 36.94 | ||
Additional options issued | |||||
Shares subject to option | |||||
Options granted | 162,880 | 115,800 | 901,340 | ||
Weighted-average exercise price | |||||
Options granted | $ 42.54 | $ 42.26 | $ 35.84 | ||
[1] | Cash received from options exercised was $257 million in 2017, $221 million in 2016 and $148 million in 2015. The actual tax benefit realized for the tax deductions from the option exercises totaled $31 million in 2017, $31 million in 2016 and $58 million in 2015. |
Stock Option Activity (Parenthe
Stock Option Activity (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from options exercised | $ 257 | $ 221 | $ 148 |
Actual tax benefit realized for the tax deductions from the option exercises | $ 31 | $ 31 | $ 58 |
Performance Share Unit, Deferre
Performance Share Unit, Deferred Stock Unit, and Restricted Stock Activity (Detail) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Number of Shares | |||||||
Beginning balance | 7,593,627 | 9,418,216 | 10,582,640 | ||||
Shares granted | 3,470,323 | 3,312,141 | 3,939,162 | ||||
Vested | [1] | (2,622,807) | (3,992,902) | (3,905,745) | |||
Forfeited | [1] | (771,438) | (1,143,828) | (1,197,841) | |||
Ending balance | 7,669,705 | 7,593,627 | 9,418,216 | ||||
Weighted-average grant date fair value per share | |||||||
Beginning balance | [2] | $ 36.90 | $ 33.71 | $ 28.86 | |||
Shares granted | [2] | 42.75 | 35.65 | 37.44 | |||
Vested | [1],[2] | 35.78 | 28.15 | 24.66 | |||
Forfeited | [1],[2] | 38.69 | 37.58 | 32.63 | |||
Ending balance | [2] | $ 39.74 | $ 36.90 | $ 33.71 | |||
Weighted-Average Aggregate Fair Value | |||||||
Total shares granted | [2] | $ 148 | $ 118 | $ 147 | |||
Vested | [1],[2] | $ 94 | $ 112 | $ 96 | |||
Performance Share Units | |||||||
Number of Shares | |||||||
Shares granted | 1,087,010 | 1,406,500 | 1,598,290 | ||||
Weighted-average grant date fair value per share | |||||||
Shares granted | [2] | $ 43.14 | $ 34.35 | $ 38.81 | |||
Restricted Stock | |||||||
Number of Shares | |||||||
Shares granted | 386,910 | ||||||
Weighted-average grant date fair value per share | |||||||
Shares granted | [2] | $ 36.94 | |||||
Deferred Stock Units | |||||||
Number of Shares | |||||||
Shares granted | 845,550 | 1,040,790 | 866,640 | ||||
Weighted-average grant date fair value per share | |||||||
Shares granted | [2] | $ 43.20 | $ 39.70 | $ 36.94 | |||
Additional shares granted | |||||||
Number of Shares | |||||||
Shares granted | 1,537,763 | [3] | 864,851 | [3] | 1,087,322 | [4] | |
Weighted-average grant date fair value per share | |||||||
Shares granted | [2] | $ 42.22 | [3] | $ 32.90 | [3] | $ 36 | [4] |
Annual grant to eligible employees | |||||||
Grant date | |||||||
Grant date | Feb. 16, 2017 | Feb. 22, 2016 | Feb. 18, 2015 | ||||
[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 $7 million in 2017, $18 million in 2016 and $18 million in 2015. | ||||||
[2] | Performance share units reflect grant date fair values. Prior-year weighted average fair value per share has been revised. | ||||||
[3] | Includes performance share units and deferred stock units. | ||||||
[4] | Includes performance share units, deferred stock units and restricted stock. |
Performance Share Unit, Defe102
Performance Share Unit, Deferred Stock Unit, and Restricted Stock Activity (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Actual tax benefit realized for the tax deductions from the shares vested | $ 7 | $ 18 | $ 18 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
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 | $ 2,202,000,000 | $ 2,601,000,000 | $ 3,622,000,000 | |
Repurchase of Common Stock | $ 2,174,000,000 | $ 2,601,000,000 | $ 3,622,000,000 | |
Common Class A | ||||
Class of Stock [Line Items] | ||||
Common stock reserved for stock option and other stock awards | 123,000,000 | |||
Stock repurchase value | $ 13,700,000,000 | |||
Number of shares repurchased | 50,598,902 | 61,972,713 | 91,875,878 | |
Average cost of shares repurchased | $ 43.51 | |||
Cost of shares repurchased | $ 2,200,000,000 | |||
Stock repurchase remaining amount | 600,000,000 | |||
Common Class A | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Stock repurchase value | $ 100,000,000 | |||
Repurchase of Common Stock | 28,000,000 | |||
Stock repurchase remaining amount | 6,500,000,000 | |||
Common Class A | Share Repurchase Program amended July 29, 2015 | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Stock repurchase value | 19,700,000,000 | |||
Increase in share repurchase value | $ 6,000,000,000 | |||
Stock repurchase expiration date | Dec. 31, 2020 | |||
Common Class A | Prior to January 1, 2017 | ||||
Class of Stock [Line Items] | ||||
Stock repurchase value | $ 10,800,000,000 |
Authorized Common Stock Repurch
Authorized Common Stock Repurchase Programs (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | (468,172,237) | ||
Common Stock, Treasury Shares, Ending Balance | (508,401,694) | (468,172,237) | |
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 | (468,172,237) | (416,504,624) | (332,896,779) |
Shares repurchased | (50,598,902) | (61,972,713) | (91,875,878) |
Exercise of stock options and issuance of other stock awards | 10,369,445 | 10,305,100 | 8,268,033 |
Common Stock, Treasury Shares, Ending Balance | (508,401,694) | (468,172,237) | (416,504,624) |
Common Stock, Shares Outstanding, Beginning Balance | 1,528,365,541 | 1,580,033,154 | 1,663,640,999 |
Shares repurchased | (50,598,902) | (61,972,713) | (91,875,878) |
Exercise of stock options and issuance of other stock awards | 10,369,445 | 10,305,100 | 8,268,033 |
Common Stock, Shares Outstanding, Ending Balance | 1,488,136,084 | 1,528,365,541 | 1,580,033,154 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) BRL in Millions, ₨ in Billions | Sep. 30, 2017USD ($) | Sep. 30, 2017BRL | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017INR (₨) |
Loss Contingencies [Line Items] | |||||||
Income due to reversal of accrued liability under tax indemnity | $ 58,000,000 | ||||||
Contingency provision accruals | $ 212,000,000 | BRL 667 | |||||
Rental expenses | $ 284,000,000 | $ 317,000,000 | $ 331,000,000 | ||||
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 | 59,000,000 | ₨ 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 | 77,000,000 | 4.9 | |||||
Indian Department of Central Excise Authority | Cadbury | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Tax penalties and interest expense | 91,000,000 | ₨ 5.8 | |||||
Selling, general and administrative expenses | |||||||
Loss Contingencies [Line Items] | |||||||
Income due to reversal of accrued liability under tax indemnity | 46,000,000 | ||||||
Contingency provision accruals | 153,000,000 | ||||||
Interest and other expense, net | |||||||
Loss Contingencies [Line Items] | |||||||
Income due to reversal of accrued liability under tax indemnity | $ 12,000,000 | ||||||
Contingency provision accruals | $ 59,000,000 | 59,000,000 | |||||
Selling, general and administrative expenses and interest and other expense, net | |||||||
Loss Contingencies [Line Items] | |||||||
Income due to reversal of accrued liability under tax indemnity | $ 4,000,000 | ||||||
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, 2017USD ($) |
Leases Future Minimum Payments [Line Items] | |
2,018 | $ 245 |
2,019 | 202 |
2,020 | 150 |
2,021 | 102 |
2,022 | 67 |
Thereafter | 154 |
Total | $ 920 |
Reclassifications from Accum107
Reclassifications from Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net loss amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) | $ 174 | $ 250 | $ 350 |
Components of Accumulated Other
Components of Accumulated Other Comprehensive Earnings /(Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balances | $ 25,215 | $ 28,100 | $ 25,215 | $ 28,100 | $ 27,853 | |||||||
Cost of sales | (15,831) | (15,795) | (18,124) | |||||||||
Interest rate contracts | (382) | (1,115) | (1,013) | |||||||||
Tax (expense)/benefit on reclassifications | $ 178 | $ 272 | $ 84 | 154 | $ (78) | $ 40 | $ 118 | 49 | (688) | (129) | (593) | |
Other comprehensive earnings/(losses) | 1,152 | (1,153) | (2,694) | |||||||||
Less: (earnings)/loss attributable to noncontrolling interests | (28) | 17 | 26 | |||||||||
Balances | 26,191 | 25,215 | 26,191 | 25,215 | 28,100 | |||||||
Other comprehensive earnings / (losses) attributable to Mondelez International | 1,124 | (1,136) | (2,668) | |||||||||
Currency Translation Adjustments | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balances | (8,914) | (8,006) | (8,914) | (8,006) | (5,042) | |||||||
Currency translation adjustments | 987 | (847) | (2,905) | |||||||||
Venezuela deconsolidation | 0 | 0 | 0 | 0 | 99 | |||||||
Equity method investment transactions | 0 | 57 | 0 | |||||||||
Tax (expense)/benefit | 214 | (135) | (184) | |||||||||
Other comprehensive earnings/(losses) | 1,201 | (925) | (2,990) | |||||||||
Less: (earnings)/loss attributable to noncontrolling interests | (28) | 17 | 26 | |||||||||
Balances | (7,741) | (8,914) | (7,741) | (8,914) | (8,006) | |||||||
Pension and Other Benefits | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balances | (2,087) | (1,934) | (2,087) | (1,934) | (2,274) | |||||||
Net actuarial gain/(loss) arising during period | (71) | (491) | (60) | |||||||||
Tax (expense)/benefit on net actuarial gain/(loss) | 50 | 70 | 3 | |||||||||
Currency impact | (183) | 128 | 146 | |||||||||
Other comprehensive earnings/(losses) | (57) | (153) | 340 | |||||||||
Balances | (2,144) | (2,087) | (2,144) | (2,087) | (1,934) | |||||||
Derivative Cash Flow Hedges | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balances | (121) | (46) | (121) | (46) | (2) | |||||||
Net derivative gains/(losses) | (17) | (151) | (75) | |||||||||
Tax (expense)/benefit on net derivative gain/(loss) | 9 | 20 | 30 | |||||||||
Currency impact | (11) | 3 | 1 | |||||||||
Other comprehensive earnings/(losses) | 8 | (75) | (44) | |||||||||
Balances | (113) | (121) | (113) | (121) | (46) | |||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Balances | $ (11,122) | $ (9,986) | (11,122) | (9,986) | (7,318) | |||||||
Other comprehensive earnings/(losses) | 1,124 | (1,136) | (2,668) | |||||||||
Balances | $ (9,998) | $ (11,122) | (9,998) | (11,122) | (9,986) | |||||||
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other Benefits | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Amortization of experience losses and prior service costs | [1] | 174 | 150 | 207 | ||||||||
Settlement losses | [1] | 38 | 36 | 111 | ||||||||
Venezuela deconsolidation | 0 | 0 | 2 | |||||||||
Tax (expense)/benefit on reclassifications | [2] | (65) | (46) | (69) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Tax (expense)/benefit on reclassifications | [2] | (6) | (42) | (21) | ||||||||
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] | 4 | 3 | (90) | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Commodity contracts | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||
Cost of sales | [3] | 29 | 9 | 64 | ||||||||
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] | $ 0 | $ 83 | $ 47 | ||||||||
[1] | These reclassified 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 reclassified to earnings are recorded within the provision for income taxes. | |||||||||||
[3] | These reclassified gains or losses are recorded within cost of sales. | |||||||||||
[4] | These reclassified losses are recorded within interest and other expense, net |
Components of Accumulated Ot109
Components of Accumulated Other Comprehensive Earnings /(Losses) (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Coffee Business | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Settlement losses | $ 90 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2017 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | ||||||||||
Provisional discrete net tax benefit | $ (59) | |||||||||
U.S. tax reform transition tax | 1,317 | $ 0 | $ 0 | |||||||
Provisional deferred tax benefit | 1,311 | |||||||||
Deferred tax benefit related to changes in our indefinite reinvestment assertion | $ 61 | |||||||||
Federal income tax rates | 35.00% | 35.00% | 35.00% | |||||||
Unremitted earnings indefinitely reinvested | $ 2,000 | $ 2,000 | ||||||||
Impact on provision for income tax, out-of-period adjustments | $ 14 | |||||||||
Effective tax rate | 22.00% | 8.90% | 7.50% | |||||||
Total favorable discrete items | $ 117 | $ 161 | $ 119 | |||||||
Gains on coffee business transactions and divestitures | (2) | $ (187) | $ 3 | $ 0 | 186 | 9 | $ 6,822 | |||
Effective tax rate, excluding the discrete items | 17.80% | |||||||||
Loss carryforwards | 4,060 | 4,060 | ||||||||
Loss carryforwards, expire at various dates between 2018 and 2037 | 1,105 | 1,105 | ||||||||
Loss carryforwards, indefinitely | 2,955 | 2,955 | ||||||||
Unrecognized tax benefits | 579 | 579 | $ 610 | $ 756 | $ 610 | $ 852 | ||||
Impact on tax provision from unrecognized tax benefits | 524 | 524 | 549 | |||||||
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 | 150 | 150 | ||||||||
Unrecognized tax benefits reasonably possible reductions due to audit settlements and expiration of statutes of limitations | 150 | |||||||||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 212 | 212 | $ 189 | |||||||
Net benefit for interest and penalties | $ 26 | |||||||||
Unremitted Foreign Earnings And Profits [Member] | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Accumulated foreign earnings and profits, percentage | 8.00% | |||||||||
Scenario Forecast | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Federal income tax rates | 21.00% | |||||||||
Liquid Assets [Member] | ||||||||||
Income Tax Contingency [Line Items] | ||||||||||
Accumulated foreign earnings and profits, percentage | 15.50% | |||||||||
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 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||||||||||
United States | $ 354 | $ (364) | $ 43 | ||||||||
Outside United States | 2,770 | 1,818 | 7,841 | ||||||||
Earnings before income taxes | 3,124 | 1,454 | 7,884 | ||||||||
United States federal current | 1,322 | (227) | (90) | ||||||||
United States federal deferred | (1,256) | 141 | 136 | ||||||||
Federal income tax | 66 | (86) | 46 | ||||||||
State and local current | 33 | 7 | 6 | ||||||||
State and local deferred | 33 | 8 | (3) | ||||||||
State and local taxes | 66 | 15 | 3 | ||||||||
Total United States | 132 | (71) | 49 | ||||||||
Outside United States current | 541 | 490 | 707 | ||||||||
Outside United States deferred | 15 | (290) | (163) | ||||||||
Total outside United States | 556 | 200 | 544 | ||||||||
Total provision for income taxes | $ (178) | $ (272) | $ (84) | $ (154) | $ 78 | $ (40) | $ (118) | $ (49) | $ 688 | $ 129 | $ 593 |
Effective Income Tax Rate (Deta
Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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% | 0.80% | (0.10%) |
Foreign rate differences | (10.80%) | (18.60%) | (2.50%) |
Changes in judgment on realizability of deferred tax assets | 3.20% | 0.00% | 0.00% |
Reversal of other tax accruals no longer required | (1.70%) | (7.70%) | (1.40%) |
Tax accrual on investment in Keurig | 2.70% | 2.30% | 0.00% |
Excess tax benefits from equity compensation | (1.20%) | 0.00% | 0.00% |
Tax legislation (non-U.S. tax reform) | (2.70%) | (4.00%) | (0.50%) |
U.S. tax reform - deferred benefit from tax rate change | (42.00%) | 0.00% | 0.00% |
U.S. tax reform - transition tax | 42.20% | 0.00% | 0.00% |
U.S. tax reform - changes in indefinite reinvestment assertion | (2.00%) | 0.00% | 0.00% |
Gains on coffee business transactions and divestitures | 0.00% | 0.00% | (26.90%) |
Business sales | (0.90%) | 0.00% | 0.00% |
Loss on deconsolidation of Venezuela | 0.00% | 0.00% | 3.50% |
Non-deductible expenses | 0.40% | 0.90% | 0.30% |
Other | (1.00%) | 0.20% | 0.10% |
Effective tax rate | 22.00% | 8.90% | 7.50% |
Deferred Tax Assets and Liabili
Deferred Tax Assets and Liabilities Temporary Differences (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Accrued postretirement and postemployment benefits | $ 191 | $ 214 |
Accrued pension costs | 313 | 370 |
Other employee benefits | 155 | 237 |
Accrued expenses | 269 | 379 |
Loss carryforwards | 773 | 619 |
Tax credit carryforwards | 370 | 0 |
Other | 342 | 331 |
Total deferred income tax assets | 2,413 | 2,150 |
Valuation allowance | (853) | (310) |
Net deferred income tax assets | 1,560 | 1,840 |
Deferred income tax liabilities: | ||
Intangible assets | (3,977) | (5,174) |
Property, plant and equipment | (452) | (557) |
Other | (188) | (472) |
Total deferred income tax liabilities | (4,617) | (6,203) |
Net deferred income tax liabilities | $ (3,057) | $ (4,363) |
Change in Unrecognized Tax Bene
Change in Unrecognized Tax Benefit (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits beginning balance | $ 610 | $ 756 | $ 852 |
Increases from positions taken during prior periods | 33 | 18 | 34 |
Decreases from positions taken during prior periods | (93) | (123) | (74) |
Increases from positions taken during the current period | 64 | 90 | 84 |
Decreases relating to settlements with taxing authorities | (54) | (75) | (13) |
Reductions resulting from the lapse of the applicable statute of limitations | (29) | (43) | (41) |
Currency/other | 48 | (13) | (86) |
Unrecognized tax benefits ending balance | $ 579 | $ 610 | $ 756 |
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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||||
Earnings Per Share [Line Items] | |||||||||||||||||||
Net earnings | $ 810 | [1] | $ 993 | [1] | $ 500 | [1] | $ 633 | [1] | $ 93 | [1] | $ 548 | [1] | $ 471 | [1] | $ 557 | [1] | $ 2,936 | $ 1,669 | $ 7,291 |
Noncontrolling interest | (8) | (1) | (2) | (3) | 0 | 0 | (7) | (3) | (14) | (10) | (24) | ||||||||
Net earnings attributable to Mondelez International | $ 802 | $ 992 | $ 498 | $ 630 | $ 93 | $ 548 | $ 464 | $ 554 | $ 2,922 | $ 1,659 | $ 7,267 | ||||||||
Weighted-average shares for basic EPS | 1,497 | 1,507 | 1,519 | 1,529 | 1,540 | 1,557 | 1,557 | 1,569 | 1,513 | 1,556 | 1,618 | ||||||||
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares | 16 | 17 | 20 | 21 | 19 | 19 | 19 | 18 | 18 | 17 | 19 | ||||||||
Weighted-average shares for diluted EPS | 1,513 | 1,524 | 1,539 | 1,550 | 1,559 | 1,576 | 1,576 | 1,587 | 1,531 | 1,573 | 1,637 | ||||||||
Basic earnings per share attributable to Mondelez International | $ 0.54 | $ 0.66 | $ 0.33 | $ 0.41 | $ 0.06 | $ 0.35 | $ 0.30 | $ 0.35 | $ 1.93 | $ 1.07 | $ 4.49 | ||||||||
Diluted earnings per share attributable to Mondelez International | $ 0.53 | $ 0.65 | $ 0.32 | $ 0.41 | $ 0.06 | $ 0.35 | $ 0.29 | $ 0.35 | $ 1.91 | $ 1.05 | $ 4.44 | ||||||||
[1] | See the following table for significant items that affected the comparability of earnings each quarter. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Mondelez International stock options excluded from the calculation of diluted EPS | 8.5 | 7.8 | 5.1 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 02, 2015USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||||
Number of reportable operating segments | Segment | 4 | ||||||||||||
After-tax equity method investment net earnings | $ 224 | $ 103 | $ 67 | $ 66 | $ 83 | $ 31 | $ 102 | $ 85 | $ 460 | $ 301 | $ 0 | ||
Operating income (loss) | 3,506 | 2,569 | 8,897 | ||||||||||
Stock-based compensation expense | $ 137 | 140 | 136 | ||||||||||
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 2017 | ||||||||||||
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) | $ 516 | 506 | 389 | ||||||||||
North America Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating income (loss) | $ 1,120 | $ 1,078 | 1,105 | ||||||||||
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 | 15.60% | ||||||||||||
Customer Concentration Risk | Net Revenues | Ten Largest Customers | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Largest customer, percentage of net revenues | 21.40% | ||||||||||||
Equity Method Investments | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating income (loss) | $ 56 | ||||||||||||
Equity Method Investments | Asia Middle East Africa Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating income (loss) | 52 | ||||||||||||
Equity Method Investments | North America Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Operating income (loss) | $ 4 | ||||||||||||
Maximum | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
After-tax equity method investment net earnings | $ 1 |
Net Revenues by Segment (Detail
Net Revenues by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 25,896 | [1] | $ 25,923 | [1] | $ 29,636 | [1] | |
Latin America Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1],[2] | 3,566 | 3,392 | 4,988 | |||||||||||
Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [3] | 5,739 | 5,816 | 6,002 | |||||||||||
Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [3] | 9,794 | 9,755 | 11,672 | [4] | ||||||||||
North America Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 6,797 | $ 6,960 | $ 6,974 | ||||||||||||
[1] | In 2015, 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. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 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 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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 25,896 | [1] | $ 25,923 | [1] | $ 29,636 | [1] | |
Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [2] | 5,739 | 5,816 | 6,002 | |||||||||||
Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [2] | $ 9,794 | $ 9,755 | 11,672 | [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 | ||||||||||||||
[1] | In 2015, 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. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||
General corporate expenses | $ (287) | $ (291) | $ (383) | ||||
Amortization of intangibles | (178) | (176) | (181) | ||||
Net gain on divestitures | $ (2) | $ (187) | $ 3 | $ 0 | 186 | 9 | 6,822 |
Loss on deconsolidation of Venezuela | 0 | 0 | (778) | ||||
Acquisition-related costs | 0 | (1) | (8) | ||||
Operating income | 3,506 | 2,569 | 8,897 | ||||
Interest and other expense, net | (382) | (1,115) | (1,013) | ||||
Earnings before income taxes | 3,124 | 1,454 | 7,884 | ||||
Cost of Sales | |||||||
Segment Reporting Information [Line Items] | |||||||
Unrealized (losses)/gains on hedging activities (mark-to-market impacts) | (96) | (94) | 96 | ||||
Latin America Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating income | 565 | 271 | 485 | ||||
Asia Middle East Africa Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating income | 516 | 506 | 389 | ||||
Europe Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating income | 1,680 | 1,267 | 1,350 | ||||
North America Segment | |||||||
Segment Reporting Information [Line Items] | |||||||
Operating income | $ 1,120 | $ 1,078 | $ 1,105 |
Total Assets by Segment (Detail
Total Assets by Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 63,109 | $ 61,538 | $ 62,843 | |
Equity Method Investments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 6,345 | 5,585 | 5,387 | |
Latin America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 4,948 | 5,156 | 4,673 | |
Asia Middle East Africa Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 9,883 | 10,031 | 10,460 | |
Europe Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 21,611 | 19,934 | 21,026 | |
North America Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 20,709 | 20,694 | 21,175 | |
Unallocated Assets and Adjustments | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | [1] | $ (387) | $ 138 | $ 122 |
[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. Final adjustments for jurisdictional netting of deferred tax assets and liabilities is done at a consolidated level. |
Depreciation Expense and Capita
Depreciation Expense and Capital Expenditure by Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Depreciation expense | $ 638 | $ 647 | $ 713 |
Capital expenditures | 1,014 | 1,224 | 1,514 |
Latin America Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 107 | 92 | 94 |
Capital expenditures | 226 | 321 | 354 |
Asia Middle East Africa Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 157 | 161 | 155 |
Capital expenditures | 280 | 349 | 381 |
Europe Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 239 | 253 | 299 |
Capital expenditures | 278 | 294 | 517 |
North America Segment | |||
Segment Reporting Information [Line Items] | |||
Depreciation expense | 135 | 141 | 165 |
Capital expenditures | $ 230 | $ 260 | $ 262 |
Net Revenues by Geographic Segm
Net Revenues by Geographic Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 25,896 | [1] | $ 25,923 | [1] | $ 29,636 | [1] |
United States | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | 6,275 | 6,329 | 6,302 | |||||||||||
Other | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net revenues | $ 19,621 | $ 19,594 | $ 23,334 | |||||||||||
[1] | In 2015, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. |
Long-lived Assets by Geographic
Long-lived Assets by Geographic Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | |||
Total long-lived assets | $ 9,201 | $ 8,737 | $ 8,789 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total long-lived assets | 1,468 | 1,508 | 1,551 |
Other | |||
Segment Reporting Information [Line Items] | |||
Total long-lived assets | $ 7,733 | $ 7,229 | $ 7,238 |
Net Revenues by Consumer Sector
Net Revenues by Consumer Sector (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 25,896 | [1] | $ 25,923 | [1] | $ 29,636 | [1] | |
Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 10,772 | 10,590 | 11,393 | |||||||||||
Chocolate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 8,099 | 7,739 | 8,074 | |||||||||||
Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 3,638 | 3,947 | 4,258 | |||||||||||
Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 1,355 | 1,445 | 3,260 | [2] | ||||||||||
Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 2,032 | 2,202 | 2,651 | |||||||||||
Latin America Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1],[3] | 3,566 | 3,392 | 4,988 | |||||||||||
Latin America Segment | Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 779 | 734 | 1,605 | |||||||||||
Latin America Segment | Chocolate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 862 | 743 | 840 | |||||||||||
Latin America Segment | Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 919 | 938 | 1,091 | |||||||||||
Latin America Segment | Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 665 | 657 | 767 | [2] | ||||||||||
Latin America Segment | Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 341 | 320 | 685 | |||||||||||
Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [4] | 5,739 | 5,816 | 6,002 | |||||||||||
Asia Middle East Africa Segment | Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,634 | 1,588 | 1,539 | ||||||||||||
Asia Middle East Africa Segment | Chocolate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 2,011 | 1,901 | 1,928 | ||||||||||||
Asia Middle East Africa Segment | Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 919 | 953 | 1,003 | ||||||||||||
Asia Middle East Africa Segment | Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 569 | 611 | 730 | [2] | |||||||||||
Asia Middle East Africa Segment | Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 606 | 763 | 802 | ||||||||||||
Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [4] | 9,794 | 9,755 | 11,672 | [5] | ||||||||||
Europe Segment | Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 2,880 | 2,703 | 2,680 | [5] | |||||||||||
Europe Segment | Chocolate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 4,933 | 4,840 | 5,050 | [5] | |||||||||||
Europe Segment | Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 775 | 916 | 1,015 | [5] | |||||||||||
Europe Segment | Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 121 | 177 | 1,763 | [2],[5] | |||||||||||
Europe Segment | Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,085 | 1,119 | 1,164 | [5] | |||||||||||
North America Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 6,797 | 6,960 | 6,974 | ||||||||||||
North America Segment | Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 5,479 | 5,565 | 5,569 | ||||||||||||
North America Segment | Chocolate | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 293 | 255 | 256 | ||||||||||||
North America Segment | Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,025 | 1,140 | 1,149 | ||||||||||||
North America Segment | Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 0 | 0 | 0 | [2] | |||||||||||
North America Segment | Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 0 | $ 0 | $ 0 | ||||||||||||
[1] | In 2015, 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. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 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 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 $66 million in AMEA for the year ended December 31, 2015. Refer to Note 2, Divestitures and Acquisitions - JDE Coffee Business Transactions, for more information. | ||||||||||||||
[5] | During 2016, we realigned some of our products across product categories primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation. |
Net Revenues by Consumer Sec126
Net Revenues by Consumer Sector (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 25,896 | [1] | $ 25,923 | [1] | $ 29,636 | [1] | |
Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [2] | 5,739 | 5,816 | 6,002 | |||||||||||
Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [2] | 9,794 | 9,755 | 11,672 | [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 | ||||||||||||||
Biscuits | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 10,772 | 10,590 | 11,393 | |||||||||||
Biscuits | Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 1,634 | 1,588 | 1,539 | ||||||||||||
Biscuits | Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 2,880 | 2,703 | 2,680 | [3] | |||||||||||
Biscuits | Venezuela | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 763 | ||||||||||||||
Gum & Candy | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 3,638 | 3,947 | 4,258 | |||||||||||
Gum & Candy | Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 919 | 953 | 1,003 | ||||||||||||
Gum & Candy | Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 775 | 916 | 1,015 | [3] | |||||||||||
Gum & Candy | Venezuela | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 66 | ||||||||||||||
Beverages | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 1,355 | 1,445 | 3,260 | [4] | ||||||||||
Beverages | Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 569 | 611 | 730 | [4] | |||||||||||
Beverages | Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 121 | 177 | 1,763 | [3],[4] | |||||||||||
Beverages | Venezuela | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 48 | ||||||||||||||
Cheese & Grocery | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | [1] | 2,032 | 2,202 | 2,651 | |||||||||||
Cheese & Grocery | Asia Middle East Africa Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | 606 | 763 | 802 | ||||||||||||
Cheese & Grocery | Europe Segment | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 1,085 | $ 1,119 | 1,164 | [3] | |||||||||||
Cheese & Grocery | Venezuela | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net revenues | $ 340 | ||||||||||||||
[1] | In 2015, 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. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 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, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||||
Quarterly Financial Data [Line Items] | ||||||||||||||||||||||
Net revenues | $ 6,966 | $ 6,530 | $ 5,986 | $ 6,414 | $ 6,770 | $ 6,396 | $ 6,302 | $ 6,455 | $ 25,896 | [1] | $ 25,923 | [1] | $ 29,636 | [1] | ||||||||
Gross profit | 2,664 | 2,552 | 2,324 | 2,525 | 2,589 | 2,488 | 2,516 | 2,535 | 10,065 | 10,128 | 11,512 | |||||||||||
Provision for income taxes | (178) | (272) | (84) | (154) | 78 | (40) | (118) | (49) | 688 | 129 | 593 | |||||||||||
Gain on equity method investment transactions | 40 | 0 | 0 | 0 | 0 | 0 | 0 | 43 | 40 | 43 | 0 | |||||||||||
Equity method investment net earnings | 224 | 103 | 67 | 66 | 83 | 31 | 102 | 85 | 460 | 301 | 0 | |||||||||||
Net earnings | 810 | [2] | 993 | [2] | 500 | [2] | 633 | [2] | 93 | [2] | 548 | [2] | 471 | [2] | 557 | [2] | 2,936 | 1,669 | 7,291 | |||
Noncontrolling interest | (8) | (1) | (2) | (3) | 0 | 0 | (7) | (3) | (14) | (10) | (24) | |||||||||||
Net earnings attributable to Mondelez International | $ 802 | $ 992 | $ 498 | $ 630 | $ 93 | $ 548 | $ 464 | $ 554 | $ 2,922 | $ 1,659 | $ 7,267 | |||||||||||
Weighted-average shares for basic EPS | 1,497 | 1,507 | 1,519 | 1,529 | 1,540 | 1,557 | 1,557 | 1,569 | 1,513 | 1,556 | 1,618 | |||||||||||
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares | 16 | 17 | 20 | 21 | 19 | 19 | 19 | 18 | 18 | 17 | 19 | |||||||||||
Weighted-average shares for diluted EPS | 1,513 | 1,524 | 1,539 | 1,550 | 1,559 | 1,576 | 1,576 | 1,587 | 1,531 | 1,573 | 1,637 | |||||||||||
Basic EPS attributable to Mondelez International: | $ 0.54 | $ 0.66 | $ 0.33 | $ 0.41 | $ 0.06 | $ 0.35 | $ 0.30 | $ 0.35 | $ 1.93 | $ 1.07 | $ 4.49 | |||||||||||
Diluted EPS attributable to Mondelez International: | 0.53 | 0.65 | 0.32 | 0.41 | 0.06 | 0.35 | 0.29 | 0.35 | 1.91 | 1.05 | 4.44 | |||||||||||
Dividends declared | 0.22 | 0.22 | 0.19 | 0.19 | 0.19 | 0.19 | 0.17 | 0.17 | $ 0.82 | $ 0.72 | $ 0.64 | |||||||||||
Market price - high | 43.98 | 44.48 | 47.23 | 45.48 | 46.40 | 46.36 | 45.75 | 44.45 | ||||||||||||||
Market price, low | $ 39.19 | $ 40.04 | $ 42.92 | $ 41.30 | $ 40.50 | $ 41.96 | $ 39.53 | $ 35.88 | ||||||||||||||
[1] | In 2015, our consolidated net revenues included Venezuela net revenues of $763 million in biscuits, $340 million in cheese & grocery, $66 million in gum & candy and $48 million in beverages. Following the deconsolidation of our Venezuela operations at the end of 2015, our 2016 and 2017 consolidated net revenues no longer include the net revenues of our Venezuelan subsidiaries. Refer to Note 1, Summary of Significant Accounting Policies - Currency Translation and Highly Inflationary Accounting: Venezuela, for more information. | |||||||||||||||||||||
[2] | See the following table for significant items that affected the comparability of earnings each quarter. |
Pre-Tax (Charges) _ Gains in Ea
Pre-Tax (Charges) / Gains in Earnings from Continuing Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Line Items] | |||||||||||
Asset impairment and exit costs | $ (120) | $ (183) | $ (187) | $ (166) | $ (342) | $ (190) | $ (166) | $ (154) | $ 656 | $ 852 | $ 901 |
Net gain on divestitures | 2 | 187 | (3) | 0 | (186) | (9) | (6,822) | ||||
Divestiture-related costs | (8) | 2 | (9) | (19) | (2) | 0 | (84) | 0 | |||
Loss related to interest rate swaps | 0 | 0 | 0 | (97) | 0 | 0 | (436) | ||||
Loss on early extinguishment of debt and related expenses | 0 | 0 | (11) | 0 | (427) | 0 | 0 | 0 | $ (11) | $ (427) | $ (753) |
Benefits from the resolution of tax matters | 8 | 215 | 0 | 58 | |||||||
Pre-tax charges / (gains) in earnings from continuing operations | $ (118) | $ 221 | $ (210) | $ (127) | $ (771) | $ (190) | $ (250) | $ (251) |
Valuation and Qualifying Acc129
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 481 | $ 482 | $ 516 | |
Addition Charged to Costs and Expenses | 575 | 84 | 77 | |
Charged to Other Accounts | [1] | 26 | (39) | (42) |
Deductions | [2] | 60 | 46 | 69 |
Balance at End of Period | 1,022 | 481 | 482 | |
Allowance for Trade Receivables | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 58 | 54 | 66 | |
Addition Charged to Costs and Expenses | 21 | 18 | 14 | |
Charged to Other Accounts | [1] | (8) | (1) | (11) |
Deductions | [2] | 21 | 13 | 15 |
Balance at End of Period | 50 | 58 | 54 | |
Allowance for Other Current Receivables | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 93 | 109 | 91 | |
Addition Charged to Costs and Expenses | 6 | (2) | 12 | |
Charged to Other Accounts | [1] | 6 | (13) | 7 |
Deductions | [2] | 7 | 1 | 1 |
Balance at End of Period | 98 | 93 | 109 | |
Allowance for Long Term Receivables | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 20 | 16 | 14 | |
Addition Charged to Costs and Expenses | (1) | 1 | 5 | |
Charged to Other Accounts | [1] | 3 | 3 | (3) |
Deductions | [2] | 1 | 0 | 0 |
Balance at End of Period | 21 | 20 | 16 | |
Allowance for Deferred Taxes | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 310 | 303 | 345 | |
Addition Charged to Costs and Expenses | 549 | 67 | 46 | |
Charged to Other Accounts | [1] | 25 | (28) | (35) |
Deductions | [2] | 31 | 32 | 53 |
Balance at End of Period | $ 853 | $ 310 | $ 303 | |
[1] | Primarily related to divestitures, acquisitions and currency translation. | |||
[2] | Represents charges for which allowances were created. |