UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 12, 2016

 

 

MONDELĒZ INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

 

 

1-16483

(Commission

File Number)

 

Virginia		52-2284372
(State or other jurisdiction of incorporation)		(I.R.S. Employer Identification No.)

Three Parkway North, Deerfield, Illinois 60015

(Address of principal executive offices, including zip code)

(847) 943-4000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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Item 7.01.

Regulation FD Disclosure.

Effects of Business Reorganization

Mondelēz International, Inc. is furnishing this current report to provide supplemental financial information regarding the effect of a recent business reorganization. Effective October 1, 2016, Mondelēz International, Inc. and subsidiaries (collectively, “we”) integrated our Eastern Europe, Middle East and Africa (“EEMEA”) business into our Europe and Asia Pacific segments. Russia, Ukraine, Turkey, Belarus, Georgia and Kazakhstan were combined within our Europe operating segment, while the balance of the Middle East and African countries were combined within our Asia Pacific operating segment to form a new Asia, Middle East and Africa (“AMEA”) regional operating segment.

As a result, our operations and management structure are organized into four reportable operating segments:

 

•

Latin America;

 

•

AMEA;

 

•

Europe; and

 

•

North America.

We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise in our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions. We will report our results of operations under the new segment structure beginning in the fourth quarter of 2016.

Segment Operating Income

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 is defined as operating income by segment excluding unrealized gains and losses on hedging activities (which are a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, gains and losses on divestitures or acquisitions, gain on the Jacobs Douwe Egberts (“JDE”) coffee business transactions, loss on deconsolidation of Venezuela and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. We exclude these items from segment operating income in order to provide better transparency of our segment operating results. In addition, 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. See additional information on our segment operating income within Note 17, Segment Reporting, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2015.

Non-GAAP Financial Measures

We use non-GAAP financial information and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results and provide additional insight and transparency on how we evaluate our business. We use non-GAAP financial measures to budget, make operating and strategic decisions and evaluate our

 

2

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performance. We have detailed the non-GAAP adjustments that we make in our non-GAAP definitions below. The adjustments generally fall within the following categories: acquisition & divestiture activities, gains and losses on intangible asset sales and non-cash impairments, major program restructuring activities, constant currency and related adjustments, major program financing and hedging activities and other major items affecting comparability of operating results. We believe the non-GAAP measures should always be considered along with the related U.S. GAAP financial measures.

Our non-GAAP financial measures Organic Net Revenue and Adjusted Operating Income for all periods presented in this Form 8-K are defined below and can also be found within our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016.

Organic Net Revenue—net revenues excluding the impacts of acquisitions, divestitures ⁽¹⁾, our historical global coffee business ⁽²⁾, our historical Venezuelan operations, accounting calendar changes and currency rate fluctuations ⁽³⁾. We believe that Organic Net Revenue reflects the underlying growth from the ongoing activities of its business and provides improved comparability of results.

Adjusted Operating Income and Adjusted Segment Operating Income—operating income (or segment operating income) excluding the impacts of Spin-Off Costs ⁽⁴⁾; the 2012-2014 Restructuring Program; the 2014-2018 Restructuring Program ⁽⁵⁾; Venezuela remeasurement and deconsolidation losses and historical operating results; gains or losses (including non-cash impairment charges) on goodwill and intangible assets; divestiture ⁽¹⁾ or acquisition gains or losses and related integration and acquisition costs; the JDE coffee business transactions ⁽²⁾ gain and net incremental costs; the operating results of divestitures ⁽¹⁾; our historical global coffee business operating results ⁽²⁾; mark-to-market impacts from commodity and forecasted currency transaction derivative contracts ⁽⁶⁾; and equity method investment earnings historically reported within operating income ⁽⁷⁾. We also present “Adjusted Operating Income margin” and “Adjusted Segment Operating Income margin,” which are subject to the same adjustments as Adjusted Operating Income and Adjusted Segment Operating Income. We believe that Adjusted Operating Income, Adjusted Segment Operating Income, Adjusted Operating Income margin and Adjusted Segment Operating Income margin provide improved comparability of underlying operating results. We also evaluate growth in our Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis ⁽³⁾.

 

(1)

Divestitures include completed sales of businesses and exits of major product lines upon completion of a sale or licensing agreement.

(2)

In connection with the JDE coffee business transactions that closed on July 2, 2015, because we exchanged our coffee interests for similarly-sized coffee interests in JDE at the time of the transaction, we have deconsolidated and not included our historical global coffee business results within divestitures in our non-GAAP financial measures. We continue to have an ongoing interest in the coffee business. Beginning in the third quarter of 2015, we have included the after-tax earnings of JDE, Keurig Green Mountain Inc. and of our historical coffee business results within continuing results of operations. For Adjusted EPS, we have included these earnings in equity method investment earnings and have deconsolidated our historical coffee business results from Organic Net Revenue and Adjusted Operating Income to facilitate comparisons of past and future coffee operating results.

(3)

Constant currency operating results are calculated by dividing or multiplying, as appropriate, the current period local currency operating results by the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period.

(4)

Refer to Note 2, Divestitures and Acquisitions – Spin-Off of Kraft Foods Group, to the consolidated financial statements in our Form 10-K for the year ended December 31, 2015 for more information on Spin-Off Costs incurred in connection with the October 1, 2012 spin-off of the Kraft Foods Group grocery business.

 

3

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(5)

Non-GAAP adjustments related to the 2014-2018 Restructuring Program reflect costs incurred that relate to the objectives of our program to transform our supply chain network and organizational structure. Costs that do not meet the program objectives are not reflected in the non-GAAP adjustments.

(6)

During the third quarter of 2016, we began to exclude unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency transaction derivatives from our non-GAAP earnings measures until such time that the related exposures impact our operating results. Since we purchase commodity and forecasted currency transaction contracts to mitigate price volatility primarily for inventory requirements in future periods, we made this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of our underlying operating performance across periods. On a prospective basis, we will discontinue designating commodity and forecasted currency transaction derivatives for hedge accounting treatment. To facilitate comparisons of our underlying operating results, we have recast all historical non-GAAP earnings measures to exclude the mark-to-market impacts.

(7)

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, we began to record the earnings from our equity method investments in after-tax equity method investment earnings outside of operating income following the deconsolidation of our coffee business. See Note 1, Basis of Presentation – Principles of Consolidation, to the condensed consolidated financial statements in our Form 10-Q for the period ending September 30, 2016, for more information. In periods prior to July 2, 2015, we have reclassified the equity method earnings from our Adjusted Operating Income to after-tax equity method investment earnings within Adjusted EPS to be consistent with the deconsolidation of our coffee business results on July 2, 2015 and in order to evaluate our operating results on a consistent basis.

We believe that the presentation of these non-GAAP financial measures, when considered together with our U.S. GAAP financial measures and the reconciliations to the corresponding U.S. GAAP financial measures, helps provide a more complete understanding of the factors and trends affecting our business than could be obtained absent these disclosures. Because non-GAAP financial measures vary among companies, the non-GAAP financial measures presented in this report may not be comparable to similarly titled measures used by other companies. Our use of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for any U.S. GAAP financial measure. A limitation of the non-GAAP financial measures is they do not include all items of income and expense that affect us and have an impact on our U.S. GAAP reported results. The best way to address this limitation is by evaluating our non-GAAP financial measures in combination with our U.S. GAAP reported results and carefully evaluating the reconciliations of U.S. GAAP reported figures to the non-GAAP financial measures.

Financial Schedules

Exhibit 99.1 to this Form 8-K contains financial schedules that provide net revenue and segment operating income under the new and former segment reporting structures for the quarters in 2016 and 2015 and for the years ended December 31, 2015 and 2014. The financial schedules also include our non-GAAP financial measures, Organic Net Revenue and Adjusted Operating Income, and reconciliations for the same periods.

 

Item 9.01.

Financial Statements and Exhibits.

(d) The following exhibit is being furnished with this Current Report on Form 8-K.

 

99.1		Financial Schedules.

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		MONDELĒZ INTERNATIONAL, INC.
Date: December 12, 2016
		By:		/s/ BRIAN T. GLADDEN
				Brian T. Gladden
				Executive Vice President and Chief Financial Officer

 

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Financial Schedules.

 

6

Exhibit 99.1

Schedule 1.1

Mondelēz International, Inc. and Subsidiaries

Segment Realignment

Quarterly and Q3 YTD 2016

(in millions of U.S. dollars) (Unaudited)

 

		2016
		Q1				Q2				Q3				Q3 YTD
Net Revenues - As Reported
Latin America			817				843				868				2,528
Asia Pacific			1,127				1,023				1,128				3,278
Eastern Europe, Middle East & Africa			547				648				543				1,738
Europe			2,289				2,068				2,104				6,461
North America			1,675				1,720				1,753				5,148
Net Revenues - As Reported		$	6,455			$	6,302			$	6,396			$	19,153
Segment Realignment
From:
Eastern Europe, Middle East & Africa (to Europe and Asia, Middle East & Africa)			(547	)			(648	)			(543	)			(1,738	)
Asia Pacific (to Asia, Middle East & Africa)			(1,127	)			(1,023	)			(1,128	)			(3,278	)
To:
Europe (from Eastern Europe, Middle East & Africa)			159				225				228				612
Asia, Middle East & Africa (from Asia Pacific and Eastern Europe, Middle East & Africa)			1,515				1,446				1,443				4,404
Net Revenues - As Revised
Latin America			817				843				868				2,528
Asia, Middle East and Africa			1,515				1,446				1,443				4,404
Europe			2,448				2,293				2,332				7,073
North America			1,675				1,720				1,753				5,148
Net Revenues - As Revised		$	6,455			$	6,302			$	6,396			$	19,153

 

1

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Schedule 1.2

Mondelēz International, Inc. and Subsidiaries

Segment Realignment

Full Year 2014 and Quarterly and Full Year 2015

(in millions of U.S. dollars) (Unaudited)

 

		2014				2015
		Year				Q1				Q2				Q3				Q4				Year
Net Revenues - As Reported
Latin America			5,153				1,257				1,240				1,233				1,258				4,988
Asia Pacific			4,605				1,153				1,024				1,101				1,082				4,360
Eastern Europe, Middle East & Africa			3,638				695				869				586				636				2,786
Europe			13,912				2,975				2,815				2,173				2,565				10,528
North America			6,936				1,682				1,713				1,756				1,823				6,974
Net Revenues - As Reported		$	34,244			$	7,762			$	7,661			$	6,849			$	7,364			$	29,636
Segment Realignment
From:
Eastern Europe, Middle East & Africa (to Europe and Asia, Middle East & Africa)			(3,638	)			(695	)			(869	)			(586	)			(636	)			(2,786	)
Asia Pacific (to Asia, Middle East & Africa)			(4,605	)			(1,153	)			(1,024	)			(1,101	)			(1,082	)			(4,360	)
To:
Europe (from Eastern Europe, Middle East & Africa)			1,876				296				366				232				250				1,144
Asia, Middle East & Africa (from Asia Pacific and Eastern Europe, Middle East & Africa)			6,367				1,552				1,527				1,455				1,468				6,002
Net Revenues - As Revised
Latin America			5,153				1,257				1,240				1,233				1,258				4,988
Asia, Middle East and Africa			6,367				1,552				1,527				1,455				1,468				6,002
Europe			15,788				3,271				3,181				2,405				2,815				11,672
North America			6,936				1,682				1,713				1,756				1,823				6,974
Net Revenues - As Revised		$	34,244			$	7,762			$	7,661			$	6,849			$	7,364			$	29,636

 

2

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Schedule 2.1

Mondelēz International, Inc. and Subsidiaries

Segment Realignment

Quarterly and Q3 YTD 2016

(in millions of U.S. dollars) (Unaudited)

 

		2016
		Q1				Q2				Q3				Q3 YTD
Operating Income - As Reported
Latin America			67				32				92				191
Asia Pacific			148				95				135				378
Eastern Europe, Middle East & Africa			51				59				44				154
Europe			343				251				302				896
North America			271				295				274				840
Unrealized gains / (losses) on hedging activities			(54	)			17				(12	)			(49	)
General Corporate Expenses			(60	)			(67	)			(89	)			(216	)
Amortization of intangibles			(44	)			(44	)			(44	)			(132	)
Operating Income - As Reported		$	722			$	638			$	702			$	2,062
Segment Realignment
From:
Eastern Europe, Middle East & Africa (to Europe and Asia, Middle East & Africa)			(51	)			(59	)			(44	)			(154	)
Asia Pacific (to Asia, Middle East & Africa)			(148	)			(95	)			(135	)			(378	)
To:
Europe (from Eastern Europe, Middle East & Africa)			9				5				14				28
Asia, Middle East & Africa (from Asia Pacific and Eastern Europe, Middle East & Africa)			190				149				165				504
Operating Income - As Revised
Latin America			67				32				92				191
Asia, Middle East and Africa			190				149				165				504
Europe			352				256				316				924
North America			271				295				274				840
Unrealized gains / (losses) on hedging activities			(54	)			17				(12	)			(49	)
General Corporate Expenses			(60	)			(67	)			(89	)			(216	)
Amortization of intangibles			(44	)			(44	)			(44	)			(132	)
Operating Income - As Revised		$	722			$	638			$	702			$	2,062

 

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Schedule 2.2

Mondelēz International, Inc. and Subsidiaries

Segment Realignment

Full Year 2014 and Quarterly and Full Year 2015

(in millions of U.S. dollars) (Unaudited)

 

		2014				2015
		Year				Q1				Q2				Q3				Q4				Year
Operating Income - As Reported
Latin America			475				154				134				134				63				485
Asia Pacific			385				146				104				71				(53	)			268
Eastern Europe, Middle East & Africa			327				32				100				52				10				194
Europe			1,770				326				261				298				392				1,277
North America			922				281				261				275				288				1,105
Unrealized gains / (losses) on hedging activities			(112	)			(7	)			86				(4	)			21				96
General Corporate Expenses			(317	)			(74	)			(71	)			(95	)			(143	)			(383	)
Amortization of intangibles			(206	)			(46	)			(46	)			(45	)			(44	)			(181	)
Venezuela deconsolidation loss			—				—				—				—				(778	)			(778	)
Gain / (loss) on the JDE coffee business transactions			—				—				—				7,122				(313	)			6,809
Gain on divestiture			—				—				13				—				—				13
Acquisition-related costs			(2	)			(1	)			(1	)			(6	)			—				(8	)
Operating Income - As Reported		$	3,242			$	811			$	841			$	7,802			$	(557	)		$	8,897
Segment Realignment
From:
Eastern Europe, Middle East & Africa (to Europe and Asia, Middle East & Africa)			(327	)			(32	)			(100	)			(52	)			(10	)			(194	)
Asia Pacific (to Asia, Middle East & Africa)			(385	)			(146	)			(104	)			(71	)			53				(268	)
To:
Europe (from Eastern Europe, Middle East & Africa)			182				15				37				11				10				73
Asia, Middle East & Africa (from Asia Pacific and Eastern Europe, Middle East & Africa)			530				163				167				112				(53	)			389
Operating Income - As Revised
Latin America			475				154				134				134				63				485
Asia, Middle East and Africa			530				163				167				112				(53	)			389
Europe			1,952				341				298				309				402				1,350
North America			922				281				261				275				288				1,105
Unrealized gains / (losses) on hedging activities			(112	)			(7	)			86				(4	)			21				96
General Corporate Expenses			(317	)			(74	)			(71	)			(95	)			(143	)			(383	)
Amortization of intangibles			(206	)			(46	)			(46	)			(45	)			(44	)			(181	)
Venezuela deconsolidation loss			—				—				—				—				(778	)			(778	)
Gain / (loss) on the JDE coffee business transactions			—				—				—				7,122				(313	)			6,809
Gain on divestiture			—				—				13				—				—				13
Acquisition-related costs			(2	)			(1	)			(1	)			(6	)			—				(8	)
Operating Income - As Revised		$	3,242			$	811			$	841			$	7,802			$	(557	)		$	8,897

 

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Schedule 3.1

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars) (Unaudited)

 

		Latin America				AMEA				Europe				North America				Mondelēz International
For the Nine Months Ended September 30, 2016
As Revised (GAAP)		$	2,528			$	4,404			$	7,073			$	5,148			$	19,153
Acquisitions			—				(71	)			—				(5	)			(76	)
Currency			517				183				272				24				996
Organic (Non-GAAP)		$	3,045			$	4,516			$	7,345			$	5,167			$	20,073
For the Nine Months Ended September 30, 2015
As Revised (GAAP)		$	3,730			$	4,534			$	8,857			$	5,151			$	22,272
Historical Venezuelan operations			(834	)			—				—				—				(834	)
Historical coffee business			—				(66	)			(1,561	)			—				(1,627	)
Accounting calendar change			—				—				—				(57	)			(57	)
Organic (Non-GAAP)		$	2,896			$	4,468			$	7,296			$	5,094			$	19,754
% Change
As Revised (GAAP)			(32.2	)%			(2.9	)%			(20.1	)%			(0.1	)%			(14.0	)%
Historical Venezuelan operations			19.5	pp			—	pp			—	pp			—	pp			3.3	pp
Historical coffee business			—				1.5				17.0				—				7.4
Acquisitions			—				(1.6	)			—				(0.1	)			(0.4	)
Accounting calendar change			—				—				—				1.1				0.3
Currency			17.8				4.1				3.8				0.5				5.0
Organic (Non-GAAP)			5.1	%			1.1	%			0.7	%			1.4	%			1.6	%
Vol/Mix			(5.8	)pp			—	pp			0.7	pp			1.8	pp			(0.1	)pp
Pricing			10.9				1.1				—				(0.4	)			1.7

 

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Schedule 3.2

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars) (Unaudited)

 

		Latin America				AMEA				Europe				North America				Mondelēz International
For the Three Months Ended September 30, 2016
As Revised (GAAP)		$	868			$	1,443			$	2,332			$	1,753			$	6,396
Currency			77				16				101				(1	)			193
Organic (Non-GAAP)		$	945			$	1,459			$	2,433			$	1,752			$	6,589
For the Three Months Ended September 30, 2015
As Revised (GAAP)		$	1,233			$	1,455			$	2,405			$	1,756			$	6,849
Historical Venezuelan operations			(315	)			—				—				—				(315	)
Accounting calendar change			—				—				—				(19	)			(19	)
Organic (Non-GAAP)		$	918			$	1,455			$	2,405			$	1,737			$	6,515
% Change
As Revised (GAAP)			(29.6	)%			(0.8	)%			(3.0	)%			(0.2	)%			(6.6	)%
Historical Venezuelan operations			24.2	pp			—	pp			—	pp			—	pp			4.5	pp
Accounting calendar change			—				—				—				1.1				0.3
Currency			8.3				1.1				4.2				—				2.9
Organic (Non-GAAP)			2.9	%			0.3	%			1.2	%			0.9	%			1.1	%
Vol/Mix			(7.1	)pp			(0.2	)pp			2.4	pp			2.6	pp			0.5	pp
Pricing			10.0				0.5				(1.2	)			(1.7	)			0.6

 

6

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Schedule 3.3

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars) (Unaudited)

 

		Latin America				AMEA				Europe				North America				Mondelēz International
For the Three Months Ended June 30, 2016
As Revised (GAAP)		$	843			$	1,446			$	2,293			$	1,720			$	6,302
Acquisitions			—				(33	)			—				—				(33	)
Currency			179				64				64				9				316
Organic (Non-GAAP)		$	1,022			$	1,477			$	2,357			$	1,729			$	6,585
For the Three Months Ended June 30, 2015
As Revised (GAAP)		$	1,240			$	1,527			$	3,181			$	1,713			$	7,661
Historical Venezuelan operations			(301	)			—				—				—				(301	)
Historical coffee business			—				(36	)			(839	)			—				(875	)
Organic (Non-GAAP)		$	939			$	1,491			$	2,342			$	1,713			$	6,485
% Change
As Revised (GAAP)			(32.0	)%			(5.3	)%			(27.9	)%			0.4	%			(17.7	)%
Historical Venezuelan operations			21.8	pp			—	pp			—	pp			—	pp			3.3	pp
Historical coffee business			—				2.3				25.8				—				11.6
Acquisitions			—				(2.2	)			—				—				(0.6	)
Currency			19.0				4.3				2.7				0.5				4.9
Organic (Non-GAAP)			8.8	%			(0.9	)%			0.6	%			0.9	%			1.5	%
Vol/Mix			(1.5	)pp			(1.0	)pp			0.2	pp			1.0	pp			(0.1	)pp
Pricing			10.3				0.1				0.4				(0.1	)			1.6

 

7

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Schedule 3.4

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars) (Unaudited)

 

		Latin America				AMEA				Europe				North America				Mondelēz International
For the Three Months Ended March 31, 2016
As Revised (GAAP)		$	817			$	1,515			$	2,448			$	1,675			$	6,455
Acquisitions			—				(38	)			—				(5	)			(43	)
Currency			261				103				107				16				487
Organic (Non-GAAP)		$	1,078			$	1,580			$	2,555			$	1,686			$	6,899
For the Three Months Ended March 31, 2015
As Revised (GAAP)		$	1,257			$	1,552			$	3,271			$	1,682			$	7,762
Historical Venezuelan operations			(218	)			—				—				—				(218	)
Historical coffee business			—				(30	)			(722	)			—				(752	)
Accounting calendar change			—				—				—				(38	)			(38	)
Organic (Non-GAAP)		$	1,039			$	1,522			$	2,549			$	1,644			$	6,754
% Change
As Revised (GAAP)			(35.0	)%			(2.4	)%			(25.2	)%			(0.4	)%			(16.8	)%
Historical Venezuelan operations			13.6	pp			—	pp			—	pp			—	pp			2.4	pp
Historical coffee business			—				1.9				21.2				—				9.4
Acquisitions			—				(2.5	)			—				(0.3	)			(0.6	)
Accounting calendar change			—				—				—				2.4				0.5
Currency			25.2				6.8				4.2				0.9				7.2
Organic (Non-GAAP)			3.8	%			3.8	%			0.2	%			2.6	%			2.1	%
Vol/Mix			(8.2	)pp			1.1	pp			(0.5	)pp			2.1	pp			(0.7	)pp
Pricing			12.0				2.7				0.7				0.5				2.8

 

8

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Schedule 3.5

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars) (Unaudited)

 

		Latin America				AMEA				Europe				North America				Mondelēz International
For the Twelve Months Ended December 31, 2015
As Revised (GAAP)		$	4,988			$	6,002			$	11,672			$	6,974			$	29,636
Historical Venezuelan operations			(1,217	)			—				—				—				(1,217	)
Historical coffee business			—				(66	)			(1,561	)			—				(1,627	)
Acquisitions			—				(128	)			—				(37	)			(165	)
Accounting calendar change			—				—				—				(78	)			(78	)
Currency			919				550				1,961				135				3,565
Organic (Non-GAAP)		$	4,690			$	6,358			$	12,072			$	6,994			$	30,114
For the Twelve Months Ended December 31, 2014
As Revised (GAAP)		$	5,153			$	6,367			$	15,788			$	6,936			$	34,244
Historical Venezuelan operations			(760	)			—				—				—				(760	)
Historical coffee business			(5	)			(115	)			(3,656	)			—				(3,776	)
Organic (Non-GAAP)		$	4,388			$	6,252			$	12,132			$	6,936			$	29,708
% Change
As Revised (GAAP)			(3.2	)%			(5.7	)%			(26.1	)%			0.5	%			(13.5	)%
Historical Venezuelan operations			(11.0	)pp			—	pp			—	pp			—				(1.6	)pp
Historical coffee business			0.1				0.6				9.4				—				5.3
Acquisitions			—				(2.0	)			—				(0.5	)			(0.6	)
Accounting calendar change			—				—				—				(1.2	)			(0.2	)
Currency			21.0				8.8				16.2				2.0				12.0
Organic (Non-GAAP)			6.9	%			1.7	%			(0.5	)%			0.8	%			1.4	%
Vol/Mix			(5.1	)pp			(2.5	)pp			(3.3	)pp			0.5	pp			(2.5	)pp
Pricing			12.0				4.2				2.8				0.3				3.9

 

9

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Schedule 4.1

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Segment Data

(in millions of U.S. dollars) (Unaudited)

 

		For the Nine Months Ended September 30, 2016
		Latin America				AMEA				Europe				North America				Unrealized G/(L) on Hedging Activities				General Corporate Expenses				Amortization of Intangibles				Other Items				Mondelēz International
Net Revenue
As Revised (GAAP)		$	2,528			$	4,404			$	7,073			$	5,148			$	—			$	—			$	—			$	—			$	19,153
Divestitures			—				—				—				—				—				—				—				—				—
Adjusted (Non-GAAP)		$	2,528			$	4,404			$	7,073			$	5,148			$	—			$	—			$	—			$	—			$	19,153
Operating Income
As Revised (GAAP)		$	191			$	504			$	924			$	840			$	(49	)		$	(216	)		$	(132	)		$	—			$	2,062
2014-2018 Restructuring Program costs			105				99				266				245				—				51				—				—				766
Acquisition integration costs			—				6				—				—				—				—				—				—				6
Gain on sale of intangible asset			—				—				(6	)			(7	)			—				—				—				—				(13	)
Intangible asset impairment charges			—				—				23				7				—				—				—				—				30
Income / costs associated with the JDE coffee business transactions			—				—				(3	)			—				—				1				—				—				(2	)
Divestiture-related costs			—				—				84				—				—				—				—				—				84
Mark-to-market gains / losses from derivatives			—				—				—				—				49				—				—				—				49
Rounding			—				—				—				—				—				—				—				—				—
Adjusted (Non-GAAP)		$	296			$	609			$	1,288			$	1,085			$	—			$	(164	)		$	(132	)		$	—			$	2,982
Currency			68				25				51				4				—				(9	)			(7	)			—				132
Adjusted @ Constant FX (Non-GAAP)		$	364			$	634			$	1,339			$	1,089			$	—			$	(173	)		$	(139	)		$	—			$	3,114
% Change - As Revised (GAAP)			(54.7	)%			14.0	%			(2.5	)%			2.8	%			n/m				10.0	%			3.6	%			n/m				(78.2	)%
% Change - Adjusted (Non-GAAP)			(10.8	)%			24.3	%			16.4	%			17.8	%			n/m				(12.3	)%			3.6	%			n/m				16.2	%
% Change - Adjusted @ Constant FX (Non-GAAP)			9.6	%			29.4	%			21.0	%			18.2	%			n/m				(18.5	)%			(1.5	)%			n/m				21.4	%
Operating Income Margin
As Revised %			7.6	%			11.4	%			13.1	%			16.3	%																			10.8	%
As Revised pp change			(3.7	)pp			1.7	pp			2.4	pp			0.4	pp																			(31.6	)pp
Adjusted %			11.7	%			13.8	%			18.2	%			21.1	%																			15.6	%
Adjusted pp change			0.2	pp			2.8	pp			3.0	pp			3.2	pp																			2.6	pp

 

		For the Nine Months Ended September 30, 2015
		Latin America				AMEA				Europe				North America				Unrealized G/(L) on Hedging Activities				General Corporate Expenses				Amortization of Intangibles				Other Items				Mondelēz International
Net Revenue
As Revised (GAAP)		$	3,730			$	4,534			$	8,857			$	5,151			$	—			$	—			$	—			$	—			$	22,272
Historical Venezuelan operations			(834	)			—				—				—				—				—				—				—				(834	)
Historical coffee business			—				(66	)			(1,561	)			—				—				—				—				—				(1,627	)
Adjusted (Non-GAAP)		$	2,896			$	4,468			$	7,296			$	5,151			$	—			$	—			$	—			$	—			$	19,811
Operating Income
As Revised (GAAP)		$	422			$	442			$	948			$	817			$	75			$	(240	)		$	(137	)		$	7,127			$	9,454
2012-2014 Restructuring Program costs			—				(1	)			—				(2	)			—				—				—				—				(3	)
2014-2018 Restructuring Program costs			106				110				245				110				—				56				—				—				627
Acquisition integration costs			—				5				—				—				—				—				—				—				5
Remeasurement of net monetary assets in Venezuela			11				—				—				—				—				—				—				—				11
Income / costs associated with the JDE coffee business transactions			1				8				193				—				—				37				—				—				239
Historical Venezuelan operations			(208	)			—				—				—				—				—				—				—				(208	)
Historical coffee business			—				(23	)			(279	)			—				(40	)			—				—				—				(342	)
Operating income from divestiture			—				(5	)			—				—				—				—				—				—				(5	)
Gain on the JDE coffee business transactions			—				—				—				—				—				—				—				(7,122	)			(7,122	)
Gain on divestiture			—				—				—				—				—				—				—				(13	)			(13	)
Acquisition-related costs			—				—				—				—				—				—				—				8				8
Reclassification of equity method investment earnings			—				(46	)			—				(4	)			—				—				—				(1	)			(51	)
Mark-to-market gains / losses from derivatives			—				—				—				—				(35	)			—				—				—				(35	)
Rounding			—				—				—				—				—				1				—				—				1
Adjusted (Non-GAAP)		$	332			$	490			$	1,107			$	921			$	—			$	(146	)		$	(137	)		$	(1	)		$	2,566
Operating Income Margin
As Revised %			11.3	%			9.7	%			10.7	%			15.9	%																			42.4	%
Adjusted %			11.5	%			11.0	%			15.2	%			17.9	%																			13.0	%

 

10

---

Schedule 4.2

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Segment Data

(in millions of U.S. dollars) (Unaudited)

 

		For the Three Months Ended September 30, 2016
		Latin America				AMEA				Europe				North America				Unrealized G/(L) on Hedging Activities				General Corporate Expenses				Amortization of Intangibles				Other Items				Mondelēz International
Net Revenue
As Revised (GAAP)		$	868			$	1,443			$	2,332			$	1,753			$	—			$	—			$	—			$	—			$	6,396
Divestitures			—				—				—				—				—				—				—				—				—
Adjusted (Non-GAAP)		$	868			$	1,443			$	2,332			$	1,753			$	—			$	—			$	—			$	—			$	6,396
Operating Income
As Revised (GAAP)		$	92			$	165			$	316			$	274			$	(12	)		$	(89	)		$	(44	)		$	—			$	702
2014-2018 Restructuring Program costs			42				18				121				105				—				15				—				—				301
Acquisition integration costs			—				(1	)			—				—				—				1				—				—				—
Gain on sale of intangible asset			—				—				—				(7	)			—				—				—				—				(7	)
Intangible asset impairment charges			—				—				4				—				—				—				—				—				4
Income / costs associated with the JDE coffee business transactions			—				—				(3	)			—				—				1				—				—				(2	)
Divestiture-related costs			—				—				—				—				—				—				—				—				—
Mark-to-market gains / losses from derivatives			—				—				—				—				12				—				—				—				12
Rounding			—				—				—				—				—				1				—				—				1
Adjusted (Non-GAAP)		$	134			$	182			$	438			$	372			$	—			$	(71	)		$	(44	)		$	—			$	1,011
Currency			8				3				29				—				—				(8	)			(1	)			—				31
Adjusted @ Constant FX (Non-GAAP)		$	142			$	185			$	467			$	372			$	—			$	(79	)		$	(45	)		$	—			$	1,042
% Change - As Revised (GAAP)			(31.3	)%			47.3	%			2.3	%			(0.4	)%			n/m				6.3	%			2.2	%			n/m				(91.0	)%
% Change - Adjusted (Non-GAAP)			45.7	%			13.8	%			11.5	%			11.7	%			n/m				(69.0	)%			2.2	%			n/m				13.5	%
% Change - Adjusted @ Constant FX (Non-GAAP)			54.3	%			15.6	%			18.8	%			11.7	%			n/m				(88.1	)%			0.0	%			n/m				16.9	%
Operating Income Margin
As Revised %			10.6	%			11.4	%			13.6	%			15.6	%																			11.0	%
As Revised pp change			(0.3	)pp			3.7	pp			0.8	pp			(0.1	)pp																			(102.9	)pp
Adjusted %			15.4	%			12.6	%			18.8	%			21.2	%																			15.8	%
Adjusted pp change			5.4	pp			1.6	pp			2.5	pp			2.2	pp																			2.2	pp

 

		For the Three Months Ended September 30, 2015
		Latin America				AMEA				Europe				North America				Unrealized G/(L) on Hedging Activities				General Corporate Expenses				Amortization of Intangibles				Other Items				Mondelēz International
Net Revenue
As Revised (GAAP)		$	1,233			$	1,455			$	2,405			$	1,756			$	—			$	—			$	—			$	—			$	6,849
Historical Venezuelan operations			(315	)			—				—				—				—				—				—				—				(315	)
Historical coffee business			—				—				—				—				—				—				—				—				—
Adjusted (Non-GAAP)		$	918			$	1,455			$	2,405			$	1,756			$	—			$	—			$	—			$	—			$	6,534
Operating Income
As Revised (GAAP)		$	134			$	112			$	309			$	275			$	(4	)		$	(95	)		$	(45	)		$	7,116			$	7,802
2012-2014 Restructuring Program costs			—				—				—				—				—				—				—				—				—
2014-2018 Restructuring Program costs			36				43				55				58				—				29				—				—				221
Acquisition integration costs			—				3				—				—				—				1				—				—				4
Remeasurement of net monetary assets in Venezuela			—				—				—				—				—				—				—				—				—
Income / costs associated with the JDE coffee business transactions			—				2				29				—				—				23				—				—				54
Historical Venezuelan operations			(78	)			—				—				—				—				—				—				—				(78	)
Historical coffee business			—				—				—				—				—				—				—				—				—
Operating income from divestiture			—				—				—				—				—				—				—				—				—
Gain on the JDE coffee business transactions			—				—				—				—				—				—				—				(7,122	)			(7,122	)
Gain on divestiture			—				—				—				—				—				—				—				—				—
Acquisition-related costs			—				—				—				—				—				—				—				6				6
Reclassification of equity method investment earnings			—				—				—				—				—				—				—				—				—
Mark-to-market gains / losses from derivatives			—				—				—				—				4				—				—				—				4
Rounding			—				—				—				—				—				—				—				—				—
Adjusted (Non-GAAP)		$	92			$	160			$	393			$	333			$	—			$	(42	)		$	(45	)		$	—			$	891
Operating Income Margin
As Revised %			10.9	%			7.7	%			12.8	%			15.7	%																			113.9	%
Adjusted %			10.0	%			11.0	%			16.3	%			19.0	%																			13.6	%

 

11

---

Schedule 4.3

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Segment Data

(in millions of U.S. dollars) (Unaudited)

 

		For the Three Months Ended June 30, 2016
		Latin America				AMEA				Europe				North America				Unrealized G/(L) on Hedging Activities				General Corporate Expenses				Amortization of Intangibles				Other Items				Mondelēz International
Net Revenue
As Revised (GAAP)		$	843			$	1,446			$	2,293			$	1,720			$	—			$	—			$	—			$	—			$	6,302
Divestitures			—				—				—				—				—				—				—				—				—
Adjusted (Non-GAAP)		$	843			$	1,446			$	2,293			$	1,720			$	—			$	—			$	—			$	—			$	6,302
Operating Income
As Revised (GAAP)		$	32			$	149			$	256			$	295			$	17			$	(67	)		$	(44	)		$	—			$	638
2014-2018 Restructuring Program costs			44				44				48				71				—				21				—				—				228
Acquisition integration costs			—				3				—				—				—				—				—				—				3
Gain on sale of intangible asset			—				—				(6	)			—				—				—				—				—				(6	)
Intangible asset impairment charges			—				—				5				7				—				—				—				—				12
Income / costs associated with the JDE coffee business transactions			—				—				—				—				—				1				—				—				1
Divestiture-related costs			—				—				84				—				—				—				—				—				84
Mark-to-market gains / losses from derivatives			—				—				—				—				(17	)			—				—				—				(17	)
Rounding			—				—				—				—				—				—				—				—				—
Adjusted (Non-GAAP)		$	76			$	196			$	387			$	373			$	—			$	(45	)		$	(44	)		$	—			$	943
Currency			20				10				10				2				—				(1	)			(3	)			—				38
Adjusted @ Constant FX (Non-GAAP)		$	96			$	206			$	397			$	375			$	—			$	(46	)		$	(47	)		$	—			$	981
% Change - As Revised (GAAP)			(76.1	)%			(10.8	)%			(14.1	)%			13.0	%			n/m				5.6	%			4.3	%			n/m				(24.1	)%
% Change - Adjusted (Non-GAAP)			(26.9	)%			18.8	%			14.5	%			28.2	%			n/m				21.1	%			4.3	%			n/m				18.8	%
% Change - Adjusted @ Constant FX (Non-GAAP)			(7.7	)%			24.8	%			17.5	%			28.9	%			n/m				19.3	%			(2.2	)%			n/m				23.6	%
Operating Income Margin
As Revised %			3.8	%			10.3	%			11.2	%			17.2	%																			10.1	%
As Revised pp change			(7.0	)pp			(0.6	)pp			1.8	pp			2.0	pp																			(0.9	)pp
Adjusted %			9.0	%			13.6	%			16.9	%			21.7	%																			15.0	%
Adjusted pp change			(2.1	)pp			2.5	pp			2.5	pp			4.7	pp																			2.8	pp

 

		For the Three Months Ended June 30, 2015
		Latin America				AMEA				Europe				North America				Unrealized G/(L) on Hedging Activities				General Corporate Expenses				Amortization of Intangibles				Other Items				Mondelēz International
Net Revenue
As Revised (GAAP)		$	1,240			$	1,527			$	3,181			$	1,713			$	—			$	—			$	—			$	—			$	7,661
Historical Venezuelan operations			(301	)			—				—				—				—				—				—				—				(301	)
Historical coffee business			—				(36	)			(839	)			—				—				—				—				—				(875	)
Adjusted (Non-GAAP)		$	939			$	1,491			$	2,342			$	1,713			$	—			$	—			$	—			$	—			$	6,485
Operating Income
As Revised (GAAP)		$	134			$	167			$	298			$	261			$	86			$	(71	)		$	(46	)		$	12			$	841
2012-2014 Restructuring Program costs			—				—				—				(1	)			—				—				—				—				(1	)
2014-2018 Restructuring Program costs			46				34				59				32				—				11				—				—				182
Acquisition integration costs			—				2				—				—				—				(1	)			—				—				1
Remeasurement of net monetary assets in Venezuela			—				—				—				—				—				—				—				—				—
Income / costs associated with the JDE coffee business transactions			1				4				148				—				—				4				—				—				157
Historical Venezuelan operations			(77	)			—				—				—				—				—				—				—				(77	)
Historical coffee business			—				(14	)			(167	)			—				(30	)			(1	)			—				—				(212	)
Operating income from divestiture			—				(4	)			—				—				—				(1	)			—				—				(5	)
Gain on divestiture			—				—				—				—				—				—				—				(13	)			(13	)
Acquisition-related costs			—				—				—				—				—				—				—				1				1
Reclassification of equity method investment earnings			—				(24	)			—				(1	)			—				—				—				(1	)			(26	)
Mark-to-market gains / losses from derivatives			—				—				—				—				(56	)			—				—				—				(56	)
Rounding			—				—				—				—				—				2				—				—				2
Adjusted (Non-GAAP)		$	104			$	165			$	338			$	291			$	—			$	(57	)		$	(46	)		$	(1	)		$	794
Operating Income Margin
As Revised %			10.8	%			10.9	%			9.4	%			15.2	%																			11.0	%
Adjusted %			11.1	%			11.1	%			14.4	%			17.0	%																			12.2	%

 

12

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Schedule 4.4

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Segment Data

(in millions of U.S. dollars) (Unaudited)

 

		For the Three Months Ended March 31, 2016
		Latin America				AMEA				Europe				North America				Unrealized G/(L) on Hedging Activities				General Corporate Expenses				Amortization of Intangibles				Other Items				Mondelēz International
Net Revenue
As Revised (GAAP)		$	817			$	1,515			$	2,448			$	1,675			$	—			$	—			$	—			$	—			$	6,455
Divestitures			—				—				—				—				—				—				—				—				—
Adjusted (Non-GAAP)		$	817			$	1,515			$	2,448			$	1,675			$	—			$	—			$	—			$	—			$	6,455
Operating Income
As Revised (GAAP)		$	67			$	190			$	352			$	271			$	(54	)		$	(60	)		$	(44	)		$	—			$	722
2014-2018 Restructuring Program costs			19				37				97				69				—				15				—				—				237
Acquisition integration costs			—				4				—				—				—				(1	)			—				—				3
Gain on sale of intangible asset			—				—				—				—				—				—				—				—				—
Intangible asset impairment charges			—				—				14				—				—				—				—				—				14
Income / costs associated with the JDE coffee business transactions			—				—				—				—				—				(1	)			—				—				(1	)
Divestiture-related costs			—				—				—				—				—				—				—				—				—
Mark-to-market gains / losses from derivatives			—				—				—				—				54				—				—				—				54
Rounding			—				—				—				—				—				(1	)			—				—				(1	)
Adjusted (Non-GAAP)		$	86			$	231			$	463			$	340			$	—			$	(48	)		$	(44	)		$	—			$	1,028
Currency			40				12				12				2				—				—				(3	)			—				63
Adjusted @ Constant FX (Non-GAAP)		$	126			$	243			$	475			$	342			$	—			$	(48	)		$	(47	)		$	—			$	1,091
% Change - As Revised (GAAP)			(56.5	)%			16.6	%			3.2	%			(3.6	)%			n/m				18.9	%			4.3	%			n/m				(11.0	)%
% Change - Adjusted (Non-GAAP)			(36.8	)%			40.0	%			23.1	%			14.5	%			n/m				(2.1	)%			4.3	%			n/m				16.7	%
% Change - Adjusted @ Constant FX (Non-GAAP)			(7.4	)%			47.3	%			26.3	%			15.2	%			n/m				(2.1	)%			(2.2	)%			n/m				23.8	%
Operating Income Margin
As Revised %			8.2	%			12.5	%			14.4	%			16.2	%																			11.2	%
As Revised pp change			(4.1	)pp			2.0	pp			4.0	pp			(0.5	)pp																			0.8	pp
Adjusted %			10.5	%			15.2	%			18.9	%			20.3	%																			15.9	%
Adjusted pp change			(2.6	)pp			4.4	pp			4.1	pp			2.6	pp																			2.9	pp

 

		For the Three Months Ended March 31, 2015
		Latin America				AMEA				Europe				North America				Unrealized G/(L) on Hedging Activities				General Corporate Expenses				Amortization of Intangibles				Other Items				Mondelēz International
Net Revenue
As Revised (GAAP)		$	1,257			$	1,552			$	3,271			$	1,682			$	—			$	—			$	—			$	—			$	7,762
Historical Venezuelan operations			(218	)			—				—				—				—				—				—				—				(218	)
Historical coffee business			—				(30	)			(722	)			—				—				—				—				—				(752	)
Adjusted (Non-GAAP)		$	1,039			$	1,522			$	2,549			$	1,682			$	—			$	—			$	—			$	—			$	6,792
Operating Income
As Revised (GAAP)		$	154			$	163			$	341			$	281			$	(7	)		$	(74	)		$	(46	)		$	(1	)		$	811
2012-2014 Restructuring Program costs			—				(1	)			—				(1	)			—				—				—				—				(2	)
2014-2018 Restructuring Program costs			24				33				131				20				—				16				—				—				224
Acquisition integration costs			—				—				—				—				—				—				—				—				—
Remeasurement of net monetary assets in Venezuela			11				—				—				—				—				—				—				—				11
Income / costs associated with the JDE coffee business transactions			—				2				16				—				—				10				—				—				28
Historical Venezuelan operations			(53	)			—				—				—				—				—				—				—				(53	)
Historical coffee business			—				(9	)			(112	)			—				(10	)			1				—				—				(130	)
Operating income from divestiture			—				(1	)			—				—				—				1				—				—				—
Gain on divestiture			—				—				—				—				—				—				—				—				—
Acquisition-related costs			—				—				—				—				—				—				—				1				1
Reclassification of equity method investment earnings			—				(22	)			—				(3	)			—				—				—				—				(25	)
Mark-to-market gains / losses from derivatives			—				—				—				—				17				—				—				—				17
Rounding			—				—				—				—				—				(1	)			—				—				(1	)
Adjusted (Non-GAAP)		$	136			$	165			$	376			$	297			$	—			$	(47	)		$	(46	)		$	—			$	881
Operating Income Margin
As Revised %			12.3	%			10.5	%			10.4	%			16.7	%																			10.4	%
Adjusted %			13.1	%			10.8	%			14.8	%			17.7	%																			13.0	%

 

13

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Schedule 4.5

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Segment Data

(in millions of U.S. dollars) (Unaudited)

 

		For the Twelve Months Ended December 31, 2015
		Latin America				AMEA				Europe				North America				Unrealized G/(L) on Hedging Activities				General Corporate Expenses				Amortization of Intangibles				Other Items				Mondelēz International
Net Revenue
As Revised (GAAP)		$	4,988			$	6,002			$	11,672			$	6,974			$	—			$	—			$	—			$	—			$	29,636
Historical Venezuelan operations			(1,217	)			—				—				—				—				—				—				—				(1,217	)
Historical coffee business			—				(66	)			(1,561	)			—				—				—				—				—				(1,627	)
Adjusted (Non-GAAP)		$	3,771			$	5,936			$	10,111			$	6,974			$	—			$	—			$	—			$	—			$	26,792
Operating Income
As Revised (GAAP)		$	485			$	389			$	1,350			$	1,105			$	96			$	(383	)		$	(181	)		$	6,036			$	8,897
2012-2014 Restructuring Program costs			—				(2	)			(1	)			(2	)			—				1				—				—				(4	)
2014-2018 Restructuring Program costs			184				207				321				183				—				107				—				—				1,002
Acquisition integration costs			—				10				—				—				—				(1	)			—				—				9
Remeasurement of net monetary assets in Venezuela			11				—				—				—				—				—				—				—				11
Venezuela deconsolidation loss			—				—				—				—				—				—				—				778				778
Intangible asset impairment charges			5				44				22				—				—				—				—				—				71
Income / costs associated with the JDE coffee business transactions			1				9				215				—				—				53				—				—				278
Historical Venezuelan operations			(281	)			—				—				—				—				—				—				—				(281	)
Historical coffee business			—				(23	)			(279	)			—				(40	)			—				—				—				(342	)
Gain on the coffee business transactions			—				—				—				—				—				—				—				(6,809	)			(6,809	)
Operating income from divestiture			—				(5	)			—				—				—				—				—				—				(5	)
Gain on divestiture			—				—				—				—				—				—				—				(13	)			(13	)
Acquisition-related costs			—				—				—				—				—				—				—				8				8
Reclassification of equity method investment earnings			—				(46	)			—				(4	)			—				—				—				(1	)			(51	)
Mark-to-market gains / losses from derivatives			—				—				—				—				(56	)			—				—				—				(56	)
Adjusted (Non-GAAP)		$	405			$	583			$	1,628			$	1,282			$	—			$	(223	)		$	(181	)		$	(1	)		$	3,493
Currency			116				63				311				19				—				(32	)			(25	)			1				453
Adjusted @ Constant FX (Non-GAAP)		$	521			$	646			$	1,939			$	1,301			$	—			$	(255	)		$	(206	)		$	—			$	3,946
% Change - As Revised (GAAP)			2.1	%			(26.6	)%			(30.8	)%			19.8	%			n/m				(20.8	)%			12.1	%			n/m				174.4	%
% Change - Adjusted (Non-GAAP)			(29.3	)%			3.9	%			(4.2	)%			14.5	%			n/m				(15.5	)%			12.1	%			n/m				(1.8	)%
% Change - Adjusted @ Constant FX (Non-GAAP)			(9.1	)%			15.2	%			14.1	%			16.2	%			n/m				(32.1	)%			0.0	%			n/m				11.0	%
Operating Income Margin
As Revised %			9.7	%			6.5	%			11.6	%			15.8	%																			30.0	%
As Revised pp change			0.5	pp			(1.8	)pp			(0.8	)pp			2.5	pp																			20.5	pp
Adjusted %			10.7	%			9.8	%			16.1	%			18.4	%																			13.0	%
Adjusted pp change			(2.4	)pp			0.8	pp			2.1	pp			2.3	pp																			1.0	pp
		For the Twelve Months Ended December 31, 2014
		Latin America				Asia Pacific				Europe				North America				Unrealized G/(L) on Hedging Activities				General Corporate Expenses				Amortization of Intangibles				Other Items				Mondelēz International
Net Revenue
As Revised (GAAP)		$	5,153			$	6,367			$	15,788			$	6,936			$	—			$	—			$	—			$	—			$	34,244
Historical Venezuelan operations			(760	)			—				—				—				—				—				—				—				(760	)
Historical coffee business			(5	)			(115	)			(3,656	)			—				—				—				—				—				(3,776	)
Adjusted (Non-GAAP)		$	4,388			$	6,252			$	12,132			$	6,936			$	—			$	—			$	—			$	—			$	29,708
Operating Income
As Revised (GAAP)		$	475			$	530			$	1,952			$	922			$	(112	)		$	(317	)		$	(206	)		$	(2	)		$	3,242
Spin-Off Costs			—				—				—				—				—				35				—				—				35
2012-2014 Restructuring Program costs			11				83				216				145				—				4				—				—				459
2014-2018 Restructuring Program costs			97				42				134				62				—				46				—				—				381
Integration Program and other acquisition integration costs			—				3				(5	)			—				—				(2	)			—				—				(4	)
Remeasurement of net monetary assets in Venezuela			167				—				—				—				—				—				—				—				167
Intangible asset impairment charges			—				48				9				—				—				—				—				—				57
Costs associated with the coffee business transactions			—				1				35				—				—				41				—				—				77
Historical Venezuelan operations			(175	)			—				—				—				—				—				—				—				(175	)
Historical coffee business			(2	)			(42	)			(641	)			—				39				—				—				—				(646	)
Operating income from divestiture							(8	)			—				—				—				—				—				—				(8	)
Acquisition-related costs			—				—				—				—				—				—				—				2				2
Reclassification of equity method investment earnings			—				(96	)			—				(9	)			—				—				—				1				(104	)
Mark-to-market gains / losses from derivatives			—				—				—				—				73				—				—				—				73
Adjusted (Non-GAAP)		$	573			$	561			$	1,700			$	1,120			$	—			$	(193	)		$	(206	)		$	1			$	3,556
Operating Income Margin
As Revised %			9.2	%			8.3	%			12.4	%			13.3	%																			9.5	%
Adjusted %			13.1	%			9.0	%			14.0	%			16.1	%																			12.0	%

 

14