Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MDLZ | |
Entity Registrant Name | Mondelez International, Inc. | |
Entity Central Index Key | 1,103,982 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,475,068,042 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Statement [Abstract] | |||
Net revenues | $ 6,765 | $ 6,414 | [1] |
Cost of sales | 3,916 | 3,896 | |
Gross profit | 2,849 | 2,518 | |
Selling, general and administrative expenses | 1,527 | 1,483 | |
Asset impairment and exit costs | 54 | 166 | |
Amortization of intangibles | 44 | 44 | |
Operating income | 1,224 | 825 | |
Benefit plan non-service income | (13) | (15) | |
Interest and other expense, net | 80 | 119 | |
Earnings before income taxes | 1,157 | 721 | |
Provision for income taxes | (307) | (154) | |
Equity method investment net earnings | 94 | 66 | |
Net earnings | 944 | 633 | |
Noncontrolling interest earnings | (6) | (3) | |
Net earnings attributable to Mondelēz International | $ 938 | $ 630 | |
Per share data: | |||
Basic earnings per share attributable to Mondelez International (in dollars per share) | $ 0.63 | $ 0.41 | |
Diluted earnings per share attributable to Mondelez International (in dollars per share) | 0.62 | 0.41 | |
Dividends declared (in dollars per share) | $ 0.22 | $ 0.19 | |
[1] | During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 944 | $ 633 |
Other comprehensive earnings/(losses), net of tax: | ||
Currency translation adjustment | 207 | 543 |
Pension and other benefit plans | (6) | 1 |
Derivative cash flow hedges | (46) | 18 |
Total other comprehensive earnings/(losses) | 155 | 562 |
Comprehensive earnings | 1,099 | 1,195 |
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | 21 | 7 |
Comprehensive earnings attributable to Mondelēz International | $ 1,078 | $ 1,188 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 1,130 | $ 761 |
Trade receivables (net of allowances of $49 at March 31, 2018 and $50 at December 31, 2017) | 3,113 | 2,691 |
Other receivables (net of allowances of $83 at March 31, 2018 and $98 at December 31, 2017) | 841 | 835 |
Inventories, net | 2,620 | 2,557 |
Other current assets | 666 | 676 |
Total current assets | 8,370 | 7,520 |
Property, plant and equipment, net | 8,792 | 8,677 |
Goodwill | 21,301 | 21,085 |
Intangible assets, net | 18,810 | 18,639 |
Prepaid pension assets | 160 | 158 |
Deferred income taxes | 301 | 319 |
Equity method investments | 6,347 | 6,345 |
Other assets | 422 | 366 |
TOTAL ASSETS | 64,503 | 63,109 |
LIABILITIES | ||
Short-term borrowings | 4,779 | 3,517 |
Current portion of long-term debt | 829 | 1,163 |
Accounts payable | 5,727 | 5,705 |
Accrued marketing | 1,847 | 1,728 |
Accrued employment costs | 617 | 721 |
Other current liabilities | 2,999 | 2,959 |
Total current liabilities | 16,798 | 15,793 |
Long-term debt | 13,180 | 12,972 |
Deferred income taxes | 3,419 | 3,376 |
Accrued pension costs | 1,548 | 1,669 |
Accrued postretirement health care costs | 419 | 419 |
Other liabilities | 2,589 | 2,689 |
TOTAL LIABILITIES | 37,953 | 36,918 |
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 March 31, 2018 and December 31, 2017) | 0 | 0 |
Additional paid-in capital | 31,876 | 31,915 |
Retained earnings | 23,315 | 22,749 |
Accumulated other comprehensive losses | (9,858) | (9,998) |
Treasury stock, at cost (515,208,245 shares at March 31, 2018 and 508,401,694 shares at December 31, 2017) | (18,881) | (18,555) |
Total Mondelēz International Shareholders’ Equity | 26,452 | 26,111 |
Noncontrolling interest | 98 | 80 |
TOTAL EQUITY | 26,550 | 26,191 |
TOTAL LIABILITIES AND EQUITY | $ 64,503 | $ 63,109 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 49 | $ 50 |
Other receivables, allowances | $ 83 | $ 98 |
Common stock, no par value (in dollars per share) | ||
Common stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued (in shares) | 1,996,537,778 | 1,996,537,778 |
Treasury stock, at cost (in shares) | 515,208,245 | 508,401,694 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/(Losses) | Treasury Stock | Noncontrolling Interest | [1] |
Balance at beginning of period at Dec. 31, 2016 | $ 25,215 | $ 0 | $ 31,847 | $ 21,149 | $ (11,122) | $ (16,713) | $ 54 | |
Comprehensive earnings/(losses): | ||||||||
Net earnings | 633 | |||||||
Other comprehensive earnings/(losses), net of income taxes | 562 | |||||||
Balance at end of period at Mar. 31, 2017 | (10,564) | |||||||
Balance at beginning of period at Dec. 31, 2016 | 25,215 | 0 | 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 ($0.22 per share for 2018 and $0.82 per share for 2017) | (1,239) | (1,239) | ||||||
Dividends paid on noncontrolling interest and other activities | (16) | (16) | ||||||
Balance at end of period at Dec. 31, 2017 | 26,191 | 0 | 31,915 | 22,749 | (9,998) | (18,555) | 80 | |
Comprehensive earnings/(losses): | ||||||||
Net earnings | 944 | 938 | 6 | |||||
Other comprehensive earnings/(losses), net of income taxes | 155 | 140 | 15 | |||||
Exercise of stock options and issuance of other stock awards | 84 | (39) | (51) | 174 | ||||
Common Stock repurchased | (500) | (500) | ||||||
Cash dividends declared ($0.22 per share for 2018 and $0.82 per share for 2017) | (327) | (327) | ||||||
Dividends paid on noncontrolling interest and other activities | 3 | 6 | (3) | |||||
Balance at end of period at Mar. 31, 2018 | $ 26,550 | $ 0 | $ 31,876 | $ 23,315 | $ (9,858) | $ (18,881) | $ 98 | |
[1] | Noncontrolling interest as of March 31, 2017 was $61 million, as compared to $54 million as of January 1, 2017. The change of $7 million during the three months ended March 31, 2017 was due to $4 million of other comprehensive earnings, net of taxes, and $3 million of net earnings. |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash dividends declared (in dollars per share) | $ 0.19 | ||
Noncontrolling interest | $ 80 | ||
Other comprehensive earnings, net of taxes, attributable to noncontrolling interest | $ 4 | ||
Net earnings attributable to noncontrolling interest | 3 | ||
Retained Earnings | |||
Cash dividends declared (in dollars per share) | $ 0.82 | ||
Noncontrolling Interest | |||
Noncontrolling interest | 61 | $ 54 | |
Change in noncontrolling interest | 7 | ||
Other comprehensive earnings, net of taxes, attributable to noncontrolling interest | 4 | ||
Net earnings attributable to noncontrolling interest | $ 3 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | ||
Net earnings | $ 944 | $ 633 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 207 | 200 |
Stock-based compensation expense | 28 | 39 |
U.S. tax reform transition tax | 94 | 0 |
Deferred income tax provision | 47 | 13 |
Asset impairments and accelerated depreciation | 28 | 80 |
Equity method investment net earnings | (94) | (66) |
Distributions from equity method investments | 143 | 122 |
Other non-cash items, net | (14) | 43 |
Change in assets and liabilities, net of acquisitions and divestitures: | ||
Receivables, net | (413) | (454) |
Inventories, net | (38) | (95) |
Accounts payable | (144) | (443) |
Other current assets | 46 | 126 |
Other current liabilities | (317) | (478) |
Change in pension and postretirement assets and liabilities, net | (110) | (277) |
Net cash provided by/(used in) operating activities | 407 | (557) |
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | ||
Capital expenditures | (284) | (306) |
Proceeds from sale of property, plant and equipment and other assets | 10 | 19 |
Net cash used in investing activities | (274) | (287) |
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | ||
Issuances of commercial paper, maturities greater than 90 days | 686 | 626 |
Repayments of commercial paper, maturities greater than 90 days | (433) | (513) |
Net issuances of other short-term borrowings | 1,016 | 1,587 |
Long-term debt proceeds | 463 | 350 |
Long-term debt repaid | (738) | (979) |
Repurchase of Common Stock | (527) | (461) |
Dividends paid | (330) | (292) |
Other | 92 | 60 |
Net cash provided by financing activities | 229 | 378 |
Effect of exchange rate changes on cash and cash equivalents | 7 | 32 |
Cash and cash equivalents: | ||
Increase/(decrease) | 369 | (434) |
Balance at beginning of period | 761 | 1,741 |
Balance at end of period | $ 1,130 | $ 1,307 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results. For a complete set of consolidated financial statements and related notes, refer to our Annual Report on Form 10-K for the year ended December 31, 2017 . Principles of Consolidation: The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries. As of the close of the 2015 fiscal year, we deconsolidated and fully impaired our investment in our Venezuelan operations. As such, for all periods presented, we have excluded the results of operations, financial position and cash flows of our Venezuelan subsidiaries from our condensed consolidated financial statements. We account for investments over which we exercise significant influence under the equity method of accounting. Investments over which we do not have significant influence or control are not material and are carried at cost as there is no readily determinable fair value for the equity interests. 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 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. As of March 31, 2018 , none of our consolidated subsidiaries were subject to highly inflationary accounting. Argentina. We continue to closely monitor inflation and the potential for the economy to become highly inflationary for accounting purposes. As of March 31, 2018 , the Argentinian economy was not designated as highly inflationary. At this time, we continue to record currency translation adjustments within equity and realized exchange gains and losses on transactions in earnings. Our Argentinian operations contributed $136 million , or 2.0% of consolidated net revenues in the three months ended March 31, 2018 , and our Argentinian operations had a net monetary liability position as of March 31, 2018 . Other Countries. Since we sell in approximately 160 countries and have operations in over 80 countries, we monitor economic and currency-related risks and seek to take protective measures in response to these exposures. Some of the countries in which we do business have recently experienced periods of significant economic uncertainty and exchange rate volatility, including Brazil, China, Mexico, Russia, United Kingdom (Brexit), Ukraine, Turkey, Egypt, Nigeria and South Africa. We continue to monitor operations, currencies and net monetary exposures in these countries. At this time, we do not anticipate a risk to our operating results from changing to highly inflationary accounting in these countries. Revenue Recognition: We predominantly sell food and beverage products across several product categories and in all regions as detailed in Note 16, Segment Reporting . We recognize revenue when control over the products transfers to our customers, which generally occurs upon delivery or shipment of the products. A small percentage of our net revenues relates to the licensing of our intellectual property, predominantly brand and trade names, and we record these revenues over the license term. We account for product shipping, handling and insurance as fulfillment activities with revenues for these activities recorded within net revenue and costs recorded within cost of sales. Any taxes collected on behalf of government authorities are excluded from net revenues. 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 of expected amounts 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 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 generally do not have any unbilled receivables at the end of a 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. Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have non-recourse factoring arrangements in which we sell eligible short-term trade receivables primarily to banks in exchange for cash. We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the banks. The outstanding principal amount of receivables under these arrangements amounted to $886 million as of March 31, 2018 and $843 million as of December 31, 2017 . The incremental cost of factoring receivables under this arrangement was not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows. New Accounting Pronouncements: In February 2018, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 enactment of U.S. tax reform legislation. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. In August 2017, the FASB issued an ASU to better align hedge accounting with an entity’s risk management activities and improve disclosures surrounding hedging. 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 early adopted the standard as of January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. Refer to Note 9, Financial Instruments , for additional information. 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 adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. 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 adopted this standard on January 1, 2018 using a retrospective approach for all periods presented. As a result of this adoption, we have disaggregated the components of our net periodic pension and postretirement benefit costs and moved components other than service costs to a new line item, benefit plan non-service income, located below operating income. For the three months ended March 31, 2017, $15 million of benefit plan non-service income was reclassified from operating income ( $7 million from cost of sales and $8 million from selling, general and administrative expenses) to benefit plan non-service income. 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 adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. 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 adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. 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 adopted this standard on January 1, 2018 and recorded an immaterial cumulative-effect adjustment to retained earnings upon adoption. 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 adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. In February 2016, the FASB issued an ASU on lease accounting. The ASU revises existing U.S. GAAP and outlines a new model for lessors and lessees to use in accounting for lease contracts. The guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases, with the exception of short-term leases. In the statement of earnings, lessees will classify leases as either operating (resulting in straight-line expense) or financing (resulting in a front-loaded expense pattern). The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We anticipate adopting the new standard on January 1, 2019. We continue to make progress in our due diligence and assessment of the impact of the new standard across our operations and on our consolidated financial statements, which will consist primarily of recording lease assets and liabilities on our balance sheet for our operating leases. 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 adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. 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). 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 in any of the historical periods presented. Refer to the Revenue Recognition section above and Note 16, Segment Reporting , for additional information. |
Divestitures and Acquisitions
Divestitures and Acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Divestitures and Acquisitions | Note 2. 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 ( $24 million as of December 28, 2017) and recorded an immaterial pre-tax loss on the divestiture within our AMEA segment. 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 gain of $40 million within the gain on equity method investment transactions and $15 million of tax expense. In connection with the 2012 spin-off of Kraft Foods Group, Inc. (now a part of The Kraft Heinz Company (“KHC”)), Kraft Foods Group and we each granted the other various licenses to use certain trademarks in connection with particular product categories in specified jurisdictions. On August 17, 2017, we entered into two agreements with KHC to terminate the licenses of certain KHC-owned brands used in our grocery business within our Europe region and to transfer to KHC inventory and certain other assets. On August 17, 2017, the first transaction closed and we received cash proceeds of €9 million ( $11 million as of August 17, 2017) and on October 23, 2017, the second transaction closed and we received cash proceeds of €2 million ( $3 million as of October 23, 2017). The gain on both transactions combined was immaterial. 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 assets and $4 million of current liabilities based on the July 4, 2017 exchange rate. We recorded a pre-tax gain of $247 million Australian dollars ( $187 million as of July 4, 2017) on the sale. During the third and fourth quarters of 2017, we also recorded divestiture-related costs of $2 million and a foreign currency hedge loss of $3 million . In the fourth quarter of 2017, we recorded a final $3 million inventory-related working capital adjustment, increasing the pre-tax gain to $190 million in 2017. 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 €157 million ( $169 million as of April 28, 2017), net of cash divested with the businesses. On April 28, 2017, we divested $44 million of current assets, $155 million of non-current assets, $8 million of current liabilities and $22 million of non-current liabilities based on the April 28, 2017 exchange rate. During the three months ended March 31, 2018 , we reversed $3 million of accrued expenses no longer required. We incurred $18 million of divestiture-related costs in the three months ended March 31, 2017 . We recorded a $3 million loss on the sale during the three months ended June 30, 2017. Divestiture-related costs were recorded within cost of sales and selling, general and administrative expenses primarily within our Europe segment. In prior periods, we recorded a $5 million impairment charge in May 2016 for a candy trademark to reduce the overall net assets to the estimated net sales proceeds after transaction costs. On March 31, 2016, we recorded a $14 million impairment charge for another gum & candy trademark as a portion of its carrying value would not be recoverable based on future cash flows expected under a planned license agreement with the buyer. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of March 31, As of December 31, (in millions) Raw materials $ 736 $ 711 Finished product 2,005 1,975 2,741 2,686 Inventory reserves (121 ) (129 ) Inventories, net $ 2,620 $ 2,557 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment Property, plant and equipment consisted of the following: As of March 31, As of December 31, (in millions) Land and land improvements $ 457 $ 458 Buildings and building improvements 3,086 2,979 Machinery and equipment 11,402 11,195 Construction in progress 998 1,048 15,943 15,680 Accumulated depreciation (7,151 ) (7,003 ) Property, plant and equipment, net $ 8,792 $ 8,677 For the three months ended March 31, 2018 , capital expenditures of $284 million excluded $252 million of accrued capital expenditures remaining unpaid at March 31, 2018 and included payment for a portion of the $357 million of capital expenditures that were accrued and unpaid at December 31, 2017 . For the three months ended March 31, 2017 , capital expenditures of $306 million excluded $186 million of accrued capital expenditures remaining unpaid at March 31, 2017 and included payment for a portion of the $343 million of capital expenditures that were accrued and unpaid at December 31, 2016 . In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) of $23 million in the three months ended March 31, 2018 and $71 million in the three months ended March 31, 2017 (see Note 7, 2014-2018 Restructuring Program ). These charges related to property, plant and equipment were recorded in the condensed consolidated statements of earnings within asset impairment and exit costs and in the segment results as follows: For the Three Months Ended 2018 2017 (in millions) Latin America $ 8 $ 6 AMEA 4 12 Europe 5 37 North America 6 15 Corporate — 1 Non-cash property, plant and equipment write-downs $ 23 $ 71 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill by segment was: As of March 31, As of December 31, (in millions) Latin America $ 924 $ 901 AMEA 3,391 3,371 Europe 8,072 7,880 North America 8,914 8,933 Goodwill $ 21,301 $ 21,085 Intangible assets consisted of the following: As of March 31, As of December 31, (in millions) Non-amortizable intangible assets $ 17,868 $ 17,671 Amortizable intangible assets 2,426 2,386 20,294 20,057 Accumulated amortization (1,484 ) (1,418 ) Intangible assets, net $ 18,810 $ 18,639 Non-amortizable intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the Spanish and Portuguese operations of United Biscuits, the global LU biscuit business of Groupe Danone S.A. and Cadbury Limited. Amortizable intangible assets consist primarily of trademarks, customer-related intangibles, process technology, licenses and non-compete agreements. Amortization expense for intangible assets was $44 million for the three months ended March 31, 2018 and March 31, 2017 . For the next five years, we currently estimate annual amortization expense of approximately $178 million for the next three years and approximately $87 million in years four and five (reflecting March 31, 2018 exchange rates). Changes in goodwill and intangible assets consisted of: Goodwill Intangible Assets, at cost (in millions) Balance at January 1, 2018 $ 21,085 $ 20,057 Currency/other 216 237 Balance at March 31, 2018 $ 21,301 $ 20,294 During our 2017 annual testing of non-amortizable intangible assets, we recorded $70 million of impairment charges in the third quarter of 2017 related to five trademarks recorded across all regions. During that annual review, we identified thirteen brands, including the five impaired trademarks, with $980 million of aggregate book value as of March 31, 2018 that each had a fair value in excess of book value of 10% or less. We believe our current plans for each of these brands will allow them to continue to not be impaired, but if the product line expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then a brand or brands could become impaired in the future. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 6. Equity Method Investments Our investments accounted for under the equity method of accounting totaled $6,347 million as of March 31, 2018 and $6,345 million as of December 31, 2017 . Our largest investments are in Jacobs Douwe Egberts (“JDE”) and Keurig Green Mountain, Inc. (“Keurig”). JDE: As of March 31, 2018, we held a 26.5% voting interest, a 26.4% ownership interest and a 26.2% profit and dividend sharing interest in JDE. We recorded JDE equity earnings of $46 million and received cash dividends of $73 million in the first quarter of 2018. In the first quarter of 2017, we recorded JDE equity earnings of $18 million and received cash dividends of $49 million . Keurig: As of March 31, 2018, we held a 24.2% ownership interest in Keurig. We recorded Keurig equity earnings of $16 million and shareholder loan interest income of $6 million and we received dividends of $3 million in the first quarter of 2018. In the first quarter of 2017, we recorded Keurig equity earnings of $14 million and shareholder loan interest income of $6 million and we received $12 million of interest payments on the shareholder loan and $4 million of dividends. Planned Keurig Dr Pepper Transaction: On January 29, 2018, Keurig announced that it had entered into a definitive merger agreement with Dr Pepper Snapple Group, Inc. to form Keurig Dr Pepper Inc. ("Keurig Dr Pepper"), contingent upon the successful satisfaction of certain regulatory requirements. Following the close of the merger in mid-2018, we expect our ownership in Keurig Dr Pepper to be 13% - 14% . As we will continue to have significant influence over the merged entity, we will account for this investment under the equity method as we have for Keurig, resulting in recognizing our share of their earnings within our earnings and our share of their dividends within our cash flows. We will have the right to nominate two directors to the board of Keurig Dr Pepper and will have certain governance rights over Keurig Dr Pepper following the transaction. |
2014-2018 Restructuring Program
2014-2018 Restructuring Program | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
2014-2018 Restructuring Program | Note 7. 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 costs) and up to $1.6 billion of capital expenditures. The primary objective of the 2014-2018 Restructuring Program is to reduce our operating cost structure in both our supply chain and overhead costs. The program is intended primarily to cover severance as well as asset disposals and other manufacturing-related one-time costs. Since inception, we have incurred total restructuring and related implementation charges of $3.4 billion related to the 2014-2018 Restructuring Program. We expect to incur the full $4.1 billion of program charges by year-end 2018. Restructuring Costs : We recorded restructuring charges of $52 million in the three months ended March 31, 2018 and $157 million in the three months ended March 31, 2017 within asset impairment and exit costs. The 2014-2018 Restructuring Program liability activity for the three months ended March 31, 2018 was: Severance and related costs Asset Write-downs Total (in millions) Liability balance, January 1, 2018 $ 464 $ — $ 464 Charges 28 24 52 Cash spent (79 ) — (79 ) Non-cash settlements/adjustments (1 ) (24 ) (25 ) Currency 4 — 4 Liability balance, March 31, 2018 $ 416 $ — $ 416 We spent $79 million in the three months ended March 31, 2018 and $84 million in the three months ended March 31, 2017 in cash severance and related costs. We also recognized non-cash asset write-downs (including accelerated depreciation and asset impairments) and other non-cash adjustments totaling $25 million in the three months ended March 31, 2018 and $72 million in the three months ended March 31, 2017 . At March 31, 2018 , $372 million of our net restructuring liability was recorded within other current liabilities and $44 million was recorded within other long-term liabilities. 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 $62 million in the three months ended March 31, 2018 and $54 million in the three months ended March 31, 2017 . We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs in Operating Income: During the three months ended March 31, 2018 and March 31, 2017 , and since inception of the 2014-2018 Restructuring Program, we recorded restructuring and implementation costs within operating income by segment as follows: Latin America AMEA Europe North America (1) Corporate (2) Total (in millions) For the Three Months Ended March 31, 2018 Restructuring Costs $ 24 $ 6 $ 7 $ 12 $ 3 $ 52 Implementation Costs 15 12 16 17 2 62 Total $ 39 $ 18 $ 23 $ 29 $ 5 $ 114 For the Three Months Ended March 31, 2017 Restructuring Costs $ 24 $ 27 $ 69 $ 38 $ (1 ) $ 157 Implementation Costs 9 8 12 13 12 54 Total $ 33 $ 35 $ 81 $ 51 $ 11 $ 211 Total Project 2014-2018 (3) Restructuring Costs $ 454 $ 454 $ 851 $ 460 $ 67 $ 2,286 Implementation Costs 167 141 288 270 223 1,089 Total $ 621 $ 595 $ 1,139 $ 730 $ 290 $ 3,375 (1) During 2018 and 2017 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in 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 March 31, 2018 . |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Borrowing Arrangements | Note 8. Debt and Borrowing Arrangements Short-Term Borrowings: Our short-term borrowings and related weighted-average interest rates consisted of: As of March 31, 2018 As of December 31, 2017 Amount Outstanding Weighted- Average Rate Amount Outstanding Weighted- Average Rate (in millions) (in millions) Commercial paper $ 4,459 2.2 % $ 3,410 1.7 % Bank loans 320 12.9 % 107 11.5 % Total short-term borrowings $ 4,779 $ 3,517 As of March 31, 2018 , commercial paper issued and outstanding had between 2 and 118 days remaining to maturity. Commercial paper borrowings increased since year end primarily as a result of issuances to finance the payment of long-term debt maturities, dividend payments and share repurchases during the year. Some of our international subsidiaries maintain primarily uncommitted credit lines to meet short-term working capital needs. Collectively, these credit lines amounted to $1.8 billion at March 31, 2018 and $2.0 billion at December 31, 2017 . Borrowings on these lines were $320 million at March 31, 2018 and $107 million at December 31, 2017 . Borrowing Arrangements: On April 2, 2018, in connection with the tender offer described below, we entered into a $2.0 billion revolving credit agreement for a 364 -day senior unsecured credit facility that is scheduled to expire on April 1, 2019 . The agreement includes the same terms and conditions as our existing $4.5 billion multi-year credit facility discussed below. On April 17, 2018, we borrowed $714 million on this facility to fund the debt tender described below and availability under the facility was reduced to match the borrowed amount. On February 28, 2018, to supplement our commercial paper program, we entered into a $1.5 billion revolving credit agreement for a 364 -day senior unsecured credit facility that is scheduled to expire on February 27, 2019 . The agreement replaces our previous credit agreement that matured on February 28, 2018 and includes the same terms and conditions as our existing $4.5 billion multi-year credit facility discussed below. As of March 31, 2018 , no amounts were drawn on the facility. 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 March 31, 2018 , we complied with this covenant as our shareholders’ equity, as defined by the covenant, was $36.3 billion . The revolving credit facility agreement also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. As of March 31, 2018 , no amounts were drawn on the facility. Long-Term Debt: On April 17, 2018, we completed a cash tender offer and retired $570 million of the long-term U.S. dollar debt consisting of: • $241 million of our 6.500% notes due in February 2040 • $97.6 million of our 5.375% notes due in February 2020 • $75.8 million of our 6.500% notes due in November 2031 • $72.1 million of our 6.875% notes due in February 2038 • $42.6 million of our 6.125% notes due in August 2018 • $29.3 million of our 6.875% notes due in January 2039 • $11.7 million of our 7.000% notes due in August 2037 We financed the repurchase of the notes, including the payment of accrued interest and other costs incurred, from the $2.0 billion revolving credit agreement entered into on April 2, 2018. The related loss on debt extinguishment and related expenses will be finalized in the second quarter of 2018. On March 2, 2018, we launched an offering of C$600 million of 3.250% Canadian-dollar denominated notes that mature on March 7, 2025. On March 7, 2018, we received C$595 million (or $461 million ) of proceeds, net of discounts and underwriting fees, to be used for general corporate purposes. We recorded approximately $4 million of discounts and deferred financing costs, which will be amortized into interest expense over the life of the notes. On February 1, 2018, $478 million of our 6.125% U.S. dollar notes matured. The notes and accrued interest to date were paid with the issuance of commercial paper and cash on hand. On January 26, 2018, fr 250 million (or $260 million ) of our 0.080% Swiss franc notes matured. The notes and accrued interest to date were paid with the issuance of commercial paper and cash on hand. Our weighted-average interest rate on our total debt was 2.3% as of March 31, 2018 , 2.1% as of December 31, 2017 and 2.2% as of December 31, 2016 . Fair Value of Our Debt: The fair value of our short-term borrowings at March 31, 2018 and December 31, 2017 reflects current market interest rates and approximates the amounts we have recorded on our condensed 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 March 31, 2018 , the aggregate fair value of our total debt was $19,337 million and its carrying value was $18,788 million . At December 31, 2017 , the aggregate fair value of our total debt was $18,354 million and its carrying value was $17,652 million . Interest and Other Expense, net: Interest and other expense, net consisted of: For the Three Months Ended 2018 2017 (in millions) Interest expense, debt $ 102 $ 103 Gain related to interest rate swaps (14 ) — Other (income)/expense, net (8 ) 16 Interest and other expense, net $ 80 $ 119 See Note 9, Financial Instruments , for information on the gain related to interest rate swaps during the first quarter of 2018. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 9. Financial Instruments Fair Value of Derivative Instruments: Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of March 31, 2018 As of December 31, 2017 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 29 $ 686 $ 15 $ 509 Net investment hedge contracts 45 55 — — $ 74 $ 741 $ 15 $ 509 Derivatives not designated as accounting hedges: Currency exchange contracts $ 65 $ 63 $ 65 $ 76 Commodity contracts 192 129 84 229 Interest rate contracts 8 5 15 11 $ 265 $ 197 $ 164 $ 316 Total fair value $ 339 $ 938 $ 179 $ 825 Derivatives designated as accounting hedges include cash flow, fair value and net investment hedge contracts. Derivatives not designated as accounting hedges include our economic hedges. Non-U.S. dollar denominated debt, designated as a hedge of our net investments in non-U.S. operations, is not reflected in the table above, but is included in long-term debt summarized in Note 8, Debt and Borrowing Arrangements . We record derivative assets and liabilities on a gross basis on our condensed consolidated balance sheets. The fair value of our asset derivatives is recorded within other current assets and the fair value of our liability derivatives is recorded within other current liabilities. The fair values (asset/(liability)) of our derivative instruments were determined using: As of March 31, 2018 Total Fair Value of Net Asset/(Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Currency exchange contracts $ 2 $ — $ 2 $ — Commodity contracts 63 15 48 — Interest rate contracts (654 ) — (654 ) — Net investment hedge contracts (10 ) — (10 ) — Total derivatives $ (599 ) $ 15 $ (614 ) $ — As of December 31, 2017 Total Fair Value of Net Asset/(Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Currency exchange contracts $ (11 ) $ — $ (11 ) $ — Commodity contracts (145 ) (138 ) (7 ) — Interest rate contracts (490 ) — (490 ) — Total derivatives $ (646 ) $ (138 ) $ (508 ) $ — 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 $38 million as of March 31, 2018 and $171 million as of December 31, 2017 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 $30 million as of March 31, 2018 and $34 million as of December 31, 2017 . As of March 31, 2018 , we would have owed $15 million for derivatives we have in a net liability position and as of December 31, 2017 , we had no derivatives in a net liability position. Level 2 financial assets and liabilities consist primarily of over-the-counter (“OTC”) currency exchange forwards, options and swaps; commodity forwards and options; and interest rate swaps. Our currency exchange contracts are valued using an income approach based on observable market forward rates less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the observable market commodity index prices less the contract rate multiplied by the notional amount or based on pricing models that rely on market observable inputs such as commodity prices. Our calculation of the fair value of interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the observable market interest rate curve. Our calculation of the fair value of financial instruments takes into consideration the risk of nonperformance, including counterparty credit risk. Our OTC derivative transactions are governed by International Swap Dealers Association agreements and other standard industry contracts. Under these agreements, we do not post nor require collateral from our counterparties. The majority of our derivative contracts do not have a legal right of set-off. We manage the credit risk in connection with these and all our derivatives by entering into transactions with counterparties with investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. Derivative Volume: The net notional values of our hedging instruments were: Notional Amount As of March 31, 2018 As of December 31, 2017 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 4,279 $ 7,089 Forecasted transactions 2,243 2,213 Commodity contracts 956 1,204 Interest rate contracts 7,477 6,532 Net investment hedge contracts 6,608 — Net investment hedge debt: Euro notes 3,777 3,679 British pound sterling notes 476 459 Swiss franc notes 1,468 1,694 Canadian dollar notes 465 — Cash Flow Hedges: Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included: For the Three Months Ended 2018 2017 (in millions) Accumulated (loss)/gain at beginning of period $ (113 ) $ (121 ) Transfer of realized (gains)/losses in fair value to earnings (14 ) 7 Unrealized gain/(loss) in fair value (32 ) 11 Accumulated (loss)/gain at end of period $ (159 ) $ (103 ) After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were: For the Three Months Ended 2018 2017 (in millions) Commodity contracts $ — $ (7 ) Interest rate contracts 14 — Total $ 14 $ (7 ) After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Three Months Ended 2018 2017 (in millions) Currency exchange contracts – forecasted transactions $ — $ (6 ) Commodity contracts — (1 ) Interest rate contracts (32 ) 18 Total $ (32 ) $ 11 During the three months ended March 31, 2018, we recognized a gain of $14 million in interest and other expense, net related to certain forward-starting interest rate swaps for which the planned timing of the related forecasted debt was changed. We record pre-tax (i) gains or losses reclassified from accumulated other comprehensive earnings/(losses) into earnings, (ii) gains or losses on ineffectiveness and (iii) gains or losses on amounts excluded from effectiveness testing in: • cost of sales for currency exchange contracts related to forecasted transactions; • cost of sales for commodity contracts; and • interest and other expense, net for interest rate contracts and currency exchange contracts related to intercompany loans. Based on current market conditions, we would expect to transfer losses of less than $1 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. Cash Flow Hedge Coverage: As of March 31, 2018 , our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 5 years and 7 months. Fair Value Hedges: Pre-tax gains/(losses) due to changes in fair value of our interest rate swaps and related hedged long-term debt were recorded in interest and other expense, net: For the Three Months Ended 2018 2017 (in millions) Borrowings $ 1 $ 4 Derivatives (1 ) (4 ) Total $ — $ — The carrying amount of our hedged fixed interest rate debt is detailed below and is recorded in the current portion of long-term debt as this debt will mature during the third quarter of 2018. As of March 31, 2018 As of December 31, 2017 (in millions) Notional value of borrowings (and related derivatives) $ (322 ) $ (801 ) Cumulative fair value hedging adjustments (1 ) — Carrying amount of borrowings $ (323 ) $ (801 ) Hedges of Net Investments in International Operations: Beginning in the first quarter of 2018, we entered into cross-currency interest rate swaps and forwards with an aggregate notional value of $6.6 billion to hedge certain of our investments in our non-U.S. operations against adverse movements in exchange rates. The after-tax loss on these net investment hedge contracts was recorded in the cumulative translation adjustment section of other comprehensive income and was $11 million for the three months ended March 31, 2018 . There were no after-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings this quarter. We elected to record changes in the fair value of amounts excluded from the assessment of effectiveness in net earnings. Amounts excluded from the assessment of hedge effectiveness were $17 million for the three months ended March 31, 2018 and were recorded in interest and other expense, net. After-tax gains/(losses) related to hedges of net investments in international operations in the form of euro, British pound sterling, Swiss franc and Canadian dollar-denominated debt were recorded within the cumulative translation adjustment section of other comprehensive income and were: For the Three Months Ended 2018 2017 (in millions) Euro notes $ (75 ) $ (29 ) British pound sterling notes (13 ) (5 ) Swiss franc notes (26 ) (15 ) Canadian notes (2 ) — Economic Hedges: Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Three Months Ended March 31, Location of Gain/(Loss) Recognized in Earnings 2018 2017 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 7 $ 2 Interest and other expense, net Forecasted transactions (7 ) (17 ) Cost of sales Forecasted transactions (5 ) (2 ) Interest and other expense, net Forecasted transactions (3 ) (1 ) Selling, general and administrative expenses Commodity contracts 149 (62 ) Cost of sales Total $ 141 $ (80 ) |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 10. Benefit Plans Pension Plans Components of Net Periodic Pension Cost: Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended 2018 2017 2018 2017 (in millions) Service cost $ 12 $ 12 $ 38 $ 39 Interest cost 15 15 52 48 Expected return on plan assets (22 ) (25 ) (117 ) (104 ) Amortization: Net loss from experience differences 11 8 42 41 Prior service cost/(benefit) 1 1 — (1 ) Settlement losses and other expenses 7 3 — 1 Net periodic pension cost $ 24 $ 14 $ 15 $ 24 For retired employees who elected lump-sum payments in our U.S. plans, we recorded net settlement losses of $7 million for the three months ended March 31, 2018 and $3 million for the three months ended March 31, 2017 . Employer Contributions: During the three months ended March 31, 2018 , we contributed $1 million to our U.S. pension plans and $143 million to our non-U.S. pension plans, including $107 million to plans in the United Kingdom and Ireland. We make contributions to our pension plans in accordance with local funding arrangements and statutory minimum funding requirements. Discretionary contributions are made to the extent that they are tax deductible and do not generate an excise tax liability. As of March 31, 2018 , over the remainder of 2018, we plan to make further contributions of approximately $38 million to our U.S. plans and approximately $158 million to our non-U.S. plans. Our actual contributions may be different due to many factors, including changes in tax and other benefit laws, significant differences between expected and actual pension asset performance or interest rates. Postretirement Benefit Plans Net periodic postretirement health care benefit consisted of the following: For the Three Months Ended 2018 2017 (in millions) Service cost $ 2 $ 2 Interest cost 4 4 Amortization: Net loss from experience differences 4 3 Prior service credit (1) (10 ) (10 ) Net periodic postretirement health care benefit $ — $ (1 ) (1) For the three months ended March 31, 2018 and March 31, 2017 , amortization of prior service credit included an $8 million gain related to a change in the eligibility requirement and a change in benefits to Medicare-eligible participants. Postemployment Benefit Plans Net periodic postemployment cost consisted of the following: For the Three Months Ended 2018 2017 (in millions) Service cost $ 2 $ 1 Interest cost 1 1 Amortization of net gains (1 ) (1 ) Net periodic postemployment cost $ 2 $ 1 |
Stock Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Note 11. Stock Plans Stock Options: Stock option activity is reflected below: Shares Subject to Option Weighted- Average Exercise or Grant Price Per Share Average Remaining Contractual Term Aggregate Intrinsic Value Balance at January 1, 2018 48,434,655 $29.92 5 years $ 626 million Annual grant to eligible employees 5,666,530 43.51 Additional options issued 10,820 43.92 Total options granted 5,677,350 43.51 Options exercised (1) (3,520,671 ) 24.92 $ 68 million Options canceled (282,433 ) 35.81 Balance at March 31, 2018 50,308,901 31.77 6 years $ 520 million (1) Cash received from options exercised was $85 million in the three months ended March 31, 2018 . The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $8 million in the three months ended March 31, 2018 . Performance Share Units and Other Stock-Based Awards: Our performance share unit, deferred stock unit and historically granted restricted stock activity is reflected below: Number of Shares Grant Date Weighted-Average Fair Value Per Share (3) Weighted-Average Aggregate Fair Value (3) Balance at January 1, 2018 7,669,705 $39.74 Annual grant to eligible employees: Feb 22, 2018 Performance share units 1,048,770 51.23 Deferred stock units 788,310 43.51 Additional shares granted (1) 103,743 Various 39.48 Total shares granted 1,940,823 47.47 $ 92 million Vested (2) (2,084,527 ) 38.28 $ 80 million Forfeited (2) (195,028 ) 38.80 Balance at March 31, 2018 7,330,973 42.23 (1) Includes performance share units and deferred stock units. (2) Includes performance share units, deferred stock units and historically granted restricted stock. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $4 million in the three months ended March 31, 2018 . (3) 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 closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided. 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, 2018, we had repurchased $13.0 billion of Common Stock pursuant to this authorization. During the three months ended March 31, 2018 , we repurchased approximately 11.5 million shares of Common Stock at an average cost of $43.51 per share, or an aggregate cost of approximately $0.5 billion , all of which was paid during the period. All share repurchases were funded through available cash and commercial paper issuances. As of March 31, 2018 , we have $6.1 billion in remaining share repurchase capacity. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Legal Proceedings: We routinely are involved in legal proceedings, claims and governmental inspections or investigations (“Legal Matters”) arising in the ordinary course of our business. 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 ( $57 million as of March 31, 2018 ) 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 ( $90 million as of March 31, 2018 ). 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 ( $75 million as of March 31, 2018 ) 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. On April 1, 2015 , the CFTC filed a complaint against Kraft Foods Group and Mondelēz Global LLC (“Mondelēz Global”) in the U.S. District Court for the Northern District of Illinois, Eastern Division (the “CFTC action”) following its investigation of activities related to the trading of December 2011 wheat futures contracts that occurred prior to the spin-off of Kraft Foods Group. The complaint alleges that Kraft Foods Group and Mondelēz Global (1) manipulated or attempted to manipulate the wheat markets during the fall of 2011; (2) violated position limit levels for wheat futures and (3) engaged in non-competitive trades by trading both sides of exchange-for-physical Chicago Board of Trade wheat contracts. The CFTC seeks civil monetary penalties of either triple the monetary gain for each violation of the Commodity Exchange Act (the “Act”) or $1 million for each violation of Section 6(c)(1), 6(c)(3) or 9(a)(2) of the Act and $140,000 for each additional violation of the Act, plus post-judgment interest; an order of permanent injunction prohibiting Kraft Foods Group and Mondelēz Global from violating specified provisions of the Act; disgorgement of profits; and costs and fees. Additionally, several class action complaints were filed against Kraft Foods Group and Mondelēz Global in the U.S. District Court for the Northern District of Illinois by investors in wheat futures and options on behalf of themselves and others similarly situated. The complaints make similar allegations as those made in the CFTC action and seek class action certification; an unspecified amount for damages, interest and unjust enrichment; costs and fees; and injunctive, declaratory and other unspecified relief. In June 2015, these suits were consolidated in the Northern District of Illinois. It is not possible to predict the outcome of these matters; however, based on our Separation and Distribution Agreement with Kraft Foods Group dated as of September 27, 2012, we expect to bear any monetary penalties or other payments in connection with the CFTC action. 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 March 31, 2018 , we had no material third-party guarantees recorded on our condensed consolidated balance sheet. Tax Matters: We are a party to various tax matter proceedings incidental to our business. These proceedings are subject to inherent uncertainties, and unfavorable outcomes could subject us to additional tax liabilities and could materially adversely impact our business, results of operations or financial position. 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 impact of $58 million due to the non-cash reversal of Cadbury-related accrued liabilities related to this matter. We recorded a total of $4 million of income over the third and fourth quarters of 2017 in connection with the related bank guarantee releases. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
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 $27 million in the three months ended March 31, 2018 and $43 million in the three months ended March 31, 2017 . For the Three Months Ended 2018 2017 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (7,741 ) $ (8,914 ) Currency translation adjustments 160 512 Tax (expense)/benefit 47 31 Other comprehensive earnings/(losses) 207 543 Less: (earnings)/loss attributable to noncontrolling interests (15 ) (4 ) Balance at end of period (7,549 ) (8,375 ) Pension and Other Benefit Plans: Balance at beginning of period $ (2,144 ) $ (2,087 ) Net actuarial gain/(loss) arising during period 7 (6 ) Tax (expense)/benefit on net actuarial gain/(loss) — — Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (1) 47 41 Settlement losses and other expenses (1) 7 4 Tax expense/(benefit) on reclassifications (2) (13 ) (9 ) Currency impact (54 ) (29 ) Other comprehensive earnings/(losses) (6 ) 1 Balance at end of period (2,150 ) (2,086 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (113 ) $ (121 ) Net derivative gains/(losses) (29 ) 7 Tax (expense)/benefit on net derivative gain/(loss) — 5 Losses/(gains) reclassified into net earnings: Currency exchange contracts – forecasted transactions (3) — 1 Commodity contracts (3) — 8 Interest rate contracts (4) (18 ) — Tax expense/(benefit) on reclassifications (2) 4 (2 ) Currency impact (3 ) (1 ) Other comprehensive earnings/(losses) (46 ) 18 Balance at end of period (159 ) (103 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (9,998 ) $ (11,122 ) Total other comprehensive earnings/(losses) 155 562 Less: (earnings)/loss attributable to noncontrolling interests (15 ) (4 ) Other comprehensive earnings/(losses) attributable to Mondelēz International 140 558 Balance at end of period $ (9,858 ) $ (10,564 ) (1) These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 10, 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 gains or losses are recorded within interest and other expense, net. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes On December 22, 2017, the United States enacted tax reform legislation that included a broad range of business tax provisions, including a reduction in the U.S. federal tax rate from 35% to 21% . In addition to the tax rate reduction, the legislation establishes new provisions that affect our 2018 results, including but not limited to, 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 Income, or “GILTI”); a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; a new limitation on deductible interest expense; the repeal of the domestic manufacturing deduction; and limitations on the deductibility of certain employee compensation. Certain impacts of the new legislation would have generally required 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. The SEC provided up to a one-year window for companies to finalize the accounting for the impacts of this new legislation and we anticipate finalizing our accounting during 2018. While our accounting for the enactment of the new U.S. tax legislation is not complete, we have recorded an additional $89 million discrete net tax cost in the three months ended March 31, 2018. This is primarily comprised of an increase to our transition tax liability of $94 million as a result of additional guidance issued by the Internal Revenue Service and various state taxing authorities, new state legislation enacted during the period and further refinement of various components of the underlying calculations. As of the first quarter of 2018, our estimated annual effective tax rate for 2018, excluding discrete tax impacts, is 22.5% , reflecting favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions and the reduction in the U.S. federal tax rate, partially offset by unfavorable provisions within the new U.S. tax reform legislation. Our 2018 first quarter effective tax rate of 26.5% was unfavorably impacted by discrete net tax expense of $46 million . The discrete net tax expense primarily consisted of $94 million of additional transition tax liability recognized as an adjustment to the prior provisional estimate, offset by an $18 million benefit from a pending Argentinean refund claim as well as a $16 million benefit from the release of uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions. As of the first quarter of 2017, our estimated annual effective tax rate for 2017, excluding discrete tax impacts, was 26.3% , reflecting favorable impacts from the mix of pre-tax income in various non-U.S. tax jurisdictions. Our 2017 first quarter effective tax rate of 21.4% was favorably impacted by net tax benefits from $36 million of discrete one-time events. The discrete net tax benefits primarily consisted of a $16 million benefit from release of uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions and a $16 million benefit relating to the U.S. domestic production activities deduction. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 15. Earnings per Share Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended 2018 2017 (in millions, except per share data) Net earnings $ 944 $ 633 Noncontrolling interest (earnings) (6 ) (3 ) Net earnings attributable to Mondelēz International $ 938 $ 630 Weighted-average shares for basic EPS 1,489 1,529 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 16 21 Weighted-average shares for diluted EPS 1,505 1,550 Basic earnings per share attributable to Mondelēz International $ 0.63 $ 0.41 Diluted earnings per share attributable to Mondelēz International $ 0.62 $ 0.41 We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We excluded antidilutive stock options of 7.1 million for the three months ended March 31, 2018 and 6.7 million for the three months ended March 31, 2017 . |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
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. 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 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) and amortization of intangibles 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 benefit plan non-service income and interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the segment profitability measure that management reviews. Our segment net revenues and earnings were: For the Three Months Ended 2018 2017 (in millions) Net revenues: Latin America $ 891 $ 910 AMEA 1,542 1,491 Europe 2,706 2,365 North America 1,626 1,648 Net revenues $ 6,765 $ 6,414 Earnings before income taxes: Operating income: Latin America $ 126 $ 111 AMEA 228 181 Europe 497 393 North America 275 292 Unrealized gains/(losses) on hedging activities (mark-to-market impacts) 206 (51 ) General corporate expenses (64 ) (57 ) Amortization of intangibles (44 ) (44 ) Operating income 1,224 825 Benefit plan non-service income 13 15 Interest and other expense, net (80 ) (119 ) Earnings before income taxes $ 1,157 $ 721 During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard (see Note 1, Basis of Presentation , for additional information), we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line item, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income and segment operating income to reflect this reclassification, which had no impact to earnings before income taxes or net earnings. Items impacting our segment operating results are discussed in Note 1, Basis of Presentation , Note 2, Divestitures and Acquisitions , Note 4, Property, Plant and Equipment , Note 5, Goodwill and Intangible Assets , Note 7, 2014-2018 Restructuring Program , and Note 12, Commitments and Contingencies . Also see Note 8, Debt and Borrowing Arrangements , and Note 9, Financial Instruments , for more information on our interest and other expense, net for each period. Net revenues by product category were: For the Three Months Ended March 31, 2018 Latin America AMEA Europe North America Total (in millions) Biscuits $ 183 $ 442 $ 795 $ 1,333 $ 2,753 Chocolate 243 573 1,423 57 2,296 Gum & Candy 224 235 186 236 881 Beverages 161 172 28 — 361 Cheese & Grocery 80 120 274 — 474 Total net revenues $ 891 $ 1,542 $ 2,706 $ 1,626 $ 6,765 For the Three Months Ended March 31, 2017 (1) Latin America AMEA Europe North America Total (in millions) Biscuits $ 170 $ 400 $ 665 $ 1,333 $ 2,568 Chocolate 259 514 1,209 70 2,052 Gum & Candy 213 229 193 245 880 Beverages 193 173 41 — 407 Cheese & Grocery 75 175 257 — 507 Total net revenues $ 910 $ 1,491 $ 2,365 $ 1,648 $ 6,414 (1) During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results. For a complete set of consolidated financial statements and related notes, refer to our Annual Report on Form 10-K for the year ended December 31, 2017 . |
Principles of Consolidation | Principles of Consolidation: The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries. As of the close of the 2015 fiscal year, we deconsolidated and fully impaired our investment in our Venezuelan operations. As such, for all periods presented, we have excluded the results of operations, financial position and cash flows of our Venezuelan subsidiaries from our condensed consolidated financial statements. We account for investments over which we exercise significant influence under the equity method of accounting. Investments over which we do not have significant influence or control are not material and are carried at cost as there is no readily determinable fair value for the equity interests. |
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 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. As of March 31, 2018 , none of our consolidated subsidiaries were subject to highly inflationary accounting. Argentina. We continue to closely monitor inflation and the potential for the economy to become highly inflationary for accounting purposes. As of March 31, 2018 , the Argentinian economy was not designated as highly inflationary. At this time, we continue to record currency translation adjustments within equity and realized exchange gains and losses on transactions in earnings. Our Argentinian operations contributed $136 million , or 2.0% of consolidated net revenues in the three months ended March 31, 2018 , and our Argentinian operations had a net monetary liability position as of March 31, 2018 . Other Countries. Since we sell in approximately 160 countries and have operations in over 80 countries, we monitor economic and currency-related risks and seek to take protective measures in response to these exposures. Some of the countries in which we do business have recently experienced periods of significant economic uncertainty and exchange rate volatility, including Brazil, China, Mexico, Russia, United Kingdom (Brexit), Ukraine, Turkey, Egypt, Nigeria and South Africa. We continue to monitor operations, currencies and net monetary exposures in these countries. At this time, we do not anticipate a risk to our operating results from changing to highly inflationary accounting in these countries. |
Revenue Recognition | Revenue Recognition: We predominantly sell food and beverage products across several product categories and in all regions as detailed in Note 16, Segment Reporting . We recognize revenue when control over the products transfers to our customers, which generally occurs upon delivery or shipment of the products. A small percentage of our net revenues relates to the licensing of our intellectual property, predominantly brand and trade names, and we record these revenues over the license term. We account for product shipping, handling and insurance as fulfillment activities with revenues for these activities recorded within net revenue and costs recorded within cost of sales. Any taxes collected on behalf of government authorities are excluded from net revenues. 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 of expected amounts 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 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 generally do not have any unbilled receivables at the end of a 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. |
Transfers of Financial Assets | Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have non-recourse factoring arrangements in which we sell eligible short-term trade receivables primarily to banks in exchange for cash. We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the banks. The outstanding principal amount of receivables under these arrangements amounted to $886 million as of March 31, 2018 and $843 million as of December 31, 2017 . The incremental cost of factoring receivables under this arrangement was not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows. |
New Accounting Pronouncements | New Accounting Pronouncements: In February 2018, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 enactment of U.S. tax reform legislation. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. In August 2017, the FASB issued an ASU to better align hedge accounting with an entity’s risk management activities and improve disclosures surrounding hedging. 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 early adopted the standard as of January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. Refer to Note 9, Financial Instruments , for additional information. 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 adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. 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 adopted this standard on January 1, 2018 using a retrospective approach for all periods presented. As a result of this adoption, we have disaggregated the components of our net periodic pension and postretirement benefit costs and moved components other than service costs to a new line item, benefit plan non-service income, located below operating income. For the three months ended March 31, 2017, $15 million of benefit plan non-service income was reclassified from operating income ( $7 million from cost of sales and $8 million from selling, general and administrative expenses) to benefit plan non-service income. 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 adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. 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 adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. 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 adopted this standard on January 1, 2018 and recorded an immaterial cumulative-effect adjustment to retained earnings upon adoption. 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 adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. In February 2016, the FASB issued an ASU on lease accounting. The ASU revises existing U.S. GAAP and outlines a new model for lessors and lessees to use in accounting for lease contracts. The guidance requires lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases, with the exception of short-term leases. In the statement of earnings, lessees will classify leases as either operating (resulting in straight-line expense) or financing (resulting in a front-loaded expense pattern). The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We anticipate adopting the new standard on January 1, 2019. We continue to make progress in our due diligence and assessment of the impact of the new standard across our operations and on our consolidated financial statements, which will consist primarily of recording lease assets and liabilities on our balance sheet for our operating leases. 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 adopted this standard on January 1, 2018 and there was no material impact to our consolidated financial statements upon adoption. 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). 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 in any of the historical periods presented. Refer to the Revenue Recognition section above and Note 16, Segment Reporting , for additional information. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories consisted of the following: As of March 31, As of December 31, (in millions) Raw materials $ 736 $ 711 Finished product 2,005 1,975 2,741 2,686 Inventory reserves (121 ) (129 ) Inventories, net $ 2,620 $ 2,557 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |
Schedule of Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of March 31, As of December 31, (in millions) Land and land improvements $ 457 $ 458 Buildings and building improvements 3,086 2,979 Machinery and equipment 11,402 11,195 Construction in progress 998 1,048 15,943 15,680 Accumulated depreciation (7,151 ) (7,003 ) Property, plant and equipment, net $ 8,792 $ 8,677 |
2014-2018 Restructuring Program | |
Property, Plant and Equipment [Line Items] | |
Schedule of Restructuring Charges Related to Property, Plant and Equipment | During the three months ended March 31, 2018 and March 31, 2017 , and since inception of the 2014-2018 Restructuring Program, we recorded restructuring and implementation costs within operating income by segment as follows: Latin America AMEA Europe North America (1) Corporate (2) Total (in millions) For the Three Months Ended March 31, 2018 Restructuring Costs $ 24 $ 6 $ 7 $ 12 $ 3 $ 52 Implementation Costs 15 12 16 17 2 62 Total $ 39 $ 18 $ 23 $ 29 $ 5 $ 114 For the Three Months Ended March 31, 2017 Restructuring Costs $ 24 $ 27 $ 69 $ 38 $ (1 ) $ 157 Implementation Costs 9 8 12 13 12 54 Total $ 33 $ 35 $ 81 $ 51 $ 11 $ 211 Total Project 2014-2018 (3) Restructuring Costs $ 454 $ 454 $ 851 $ 460 $ 67 $ 2,286 Implementation Costs 167 141 288 270 223 1,089 Total $ 621 $ 595 $ 1,139 $ 730 $ 290 $ 3,375 (1) During 2018 and 2017 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in 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 March 31, 2018 . |
Property Plant and Equipment | Asset impairment and exit costs | |
Property, Plant and Equipment [Line Items] | |
Schedule of Restructuring Charges Related to Property, Plant and Equipment | These charges related to property, plant and equipment were recorded in the condensed consolidated statements of earnings within asset impairment and exit costs and in the segment results as follows: For the Three Months Ended 2018 2017 (in millions) Latin America $ 8 $ 6 AMEA 4 12 Europe 5 37 North America 6 15 Corporate — 1 Non-cash property, plant and equipment write-downs $ 23 $ 71 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | Goodwill by segment was: As of March 31, As of December 31, (in millions) Latin America $ 924 $ 901 AMEA 3,391 3,371 Europe 8,072 7,880 North America 8,914 8,933 Goodwill $ 21,301 $ 21,085 |
Schedule of Intangible Assets Disclosure | Intangible assets consisted of the following: As of March 31, As of December 31, (in millions) Non-amortizable intangible assets $ 17,868 $ 17,671 Amortizable intangible assets 2,426 2,386 20,294 20,057 Accumulated amortization (1,484 ) (1,418 ) Intangible assets, net $ 18,810 $ 18,639 |
Schedule of Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: Goodwill Intangible Assets, at cost (in millions) Balance at January 1, 2018 $ 21,085 $ 20,057 Currency/other 216 237 Balance at March 31, 2018 $ 21,301 $ 20,294 |
2014-2018 Restructuring Progr29
2014-2018 Restructuring Program (Tables) - 2014-2018 Restructuring Program | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Program Liability | The 2014-2018 Restructuring Program liability activity for the three months ended March 31, 2018 was: Severance and related costs Asset Write-downs Total (in millions) Liability balance, January 1, 2018 $ 464 $ — $ 464 Charges 28 24 52 Cash spent (79 ) — (79 ) Non-cash settlements/adjustments (1 ) (24 ) (25 ) Currency 4 — 4 Liability balance, March 31, 2018 $ 416 $ — $ 416 |
Schedule of Restructuring and Implementation Costs by Segment | During the three months ended March 31, 2018 and March 31, 2017 , and since inception of the 2014-2018 Restructuring Program, we recorded restructuring and implementation costs within operating income by segment as follows: Latin America AMEA Europe North America (1) Corporate (2) Total (in millions) For the Three Months Ended March 31, 2018 Restructuring Costs $ 24 $ 6 $ 7 $ 12 $ 3 $ 52 Implementation Costs 15 12 16 17 2 62 Total $ 39 $ 18 $ 23 $ 29 $ 5 $ 114 For the Three Months Ended March 31, 2017 Restructuring Costs $ 24 $ 27 $ 69 $ 38 $ (1 ) $ 157 Implementation Costs 9 8 12 13 12 54 Total $ 33 $ 35 $ 81 $ 51 $ 11 $ 211 Total Project 2014-2018 (3) Restructuring Costs $ 454 $ 454 $ 851 $ 460 $ 67 $ 2,286 Implementation Costs 167 141 288 270 223 1,089 Total $ 621 $ 595 $ 1,139 $ 730 $ 290 $ 3,375 (1) During 2018 and 2017 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in 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 March 31, 2018 . |
Debt and Borrowing Arrangemen30
Debt and Borrowing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings and Related Weighted-Average Interest Rates | Our short-term borrowings and related weighted-average interest rates consisted of: As of March 31, 2018 As of December 31, 2017 Amount Outstanding Weighted- Average Rate Amount Outstanding Weighted- Average Rate (in millions) (in millions) Commercial paper $ 4,459 2.2 % $ 3,410 1.7 % Bank loans 320 12.9 % 107 11.5 % Total short-term borrowings $ 4,779 $ 3,517 |
Schedule of Interest and Other Expense | Interest and other expense, net consisted of: For the Three Months Ended 2018 2017 (in millions) Interest expense, debt $ 102 $ 103 Gain related to interest rate swaps (14 ) — Other (income)/expense, net (8 ) 16 Interest and other expense, net $ 80 $ 119 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Cash Flow Hedges | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
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 Three Months Ended 2018 2017 (in millions) Accumulated (loss)/gain at beginning of period $ (113 ) $ (121 ) Transfer of realized (gains)/losses in fair value to earnings (14 ) 7 Unrealized gain/(loss) in fair value (32 ) 11 Accumulated (loss)/gain at end of period $ (159 ) $ (103 ) |
Schedule of Effects of Derivative Instruments | After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were: For the Three Months Ended 2018 2017 (in millions) Commodity contracts $ — $ (7 ) Interest rate contracts 14 — Total $ 14 $ (7 ) After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Three Months Ended 2018 2017 (in millions) Currency exchange contracts – forecasted transactions $ — $ (6 ) Commodity contracts — (1 ) Interest rate contracts (32 ) 18 Total $ (32 ) $ 11 |
Fair Value Hedges | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Effects of Derivative Instruments | Pre-tax gains/(losses) due to changes in fair value of our interest rate swaps and related hedged long-term debt were recorded in interest and other expense, net: For the Three Months Ended 2018 2017 (in millions) Borrowings $ 1 $ 4 Derivatives (1 ) (4 ) Total $ — $ — |
Economic Hedging | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Effects of Derivative Instruments | Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Three Months Ended March 31, Location of Gain/(Loss) Recognized in Earnings 2018 2017 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 7 $ 2 Interest and other expense, net Forecasted transactions (7 ) (17 ) Cost of sales Forecasted transactions (5 ) (2 ) Interest and other expense, net Forecasted transactions (3 ) (1 ) Selling, general and administrative expenses Commodity contracts 149 (62 ) Cost of sales Total $ 141 $ (80 ) |
Net investment hedge debt | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Hedges of Net Investments in International Operations | After-tax gains/(losses) related to hedges of net investments in international operations in the form of euro, British pound sterling, Swiss franc and Canadian dollar-denominated debt were recorded within the cumulative translation adjustment section of other comprehensive income and were: For the Three Months Ended 2018 2017 (in millions) Euro notes $ (75 ) $ (29 ) British pound sterling notes (13 ) (5 ) Swiss franc notes (26 ) (15 ) Canadian notes (2 ) — |
Derivative | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of March 31, 2018 As of December 31, 2017 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 29 $ 686 $ 15 $ 509 Net investment hedge contracts 45 55 — — $ 74 $ 741 $ 15 $ 509 Derivatives not designated as accounting hedges: Currency exchange contracts $ 65 $ 63 $ 65 $ 76 Commodity contracts 192 129 84 229 Interest rate contracts 8 5 15 11 $ 265 $ 197 $ 164 $ 316 Total fair value $ 339 $ 938 $ 179 $ 825 |
Schedule of Derivative Instruments Fair Value and Measurement Inputs | The fair values (asset/(liability)) of our derivative instruments were determined using: As of March 31, 2018 Total Fair Value of Net Asset/(Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Currency exchange contracts $ 2 $ — $ 2 $ — Commodity contracts 63 15 48 — Interest rate contracts (654 ) — (654 ) — Net investment hedge contracts (10 ) — (10 ) — Total derivatives $ (599 ) $ 15 $ (614 ) $ — As of December 31, 2017 Total Fair Value of Net Asset/(Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Currency exchange contracts $ (11 ) $ — $ (11 ) $ — Commodity contracts (145 ) (138 ) (7 ) — Interest rate contracts (490 ) — (490 ) — Total derivatives $ (646 ) $ (138 ) $ (508 ) $ — |
Schedule of Notional Values of Derivative Instruments | The net notional values of our hedging instruments were: Notional Amount As of March 31, 2018 As of December 31, 2017 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 4,279 $ 7,089 Forecasted transactions 2,243 2,213 Commodity contracts 956 1,204 Interest rate contracts 7,477 6,532 Net investment hedge contracts 6,608 — Net investment hedge debt: Euro notes 3,777 3,679 British pound sterling notes 476 459 Swiss franc notes 1,468 1,694 Canadian dollar notes 465 — |
Borrowings | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Notional Values of Derivative Instruments | The carrying amount of our hedged fixed interest rate debt is detailed below and is recorded in the current portion of long-term debt as this debt will mature during the third quarter of 2018. As of March 31, 2018 As of December 31, 2017 (in millions) Notional value of borrowings (and related derivatives) $ (322 ) $ (801 ) Cumulative fair value hedging adjustments (1 ) — Carrying amount of borrowings $ (323 ) $ (801 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended 2018 2017 2018 2017 (in millions) Service cost $ 12 $ 12 $ 38 $ 39 Interest cost 15 15 52 48 Expected return on plan assets (22 ) (25 ) (117 ) (104 ) Amortization: Net loss from experience differences 11 8 42 41 Prior service cost/(benefit) 1 1 — (1 ) Settlement losses and other expenses 7 3 — 1 Net periodic pension cost $ 24 $ 14 $ 15 $ 24 |
Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Net periodic postretirement health care benefit consisted of the following: For the Three Months Ended 2018 2017 (in millions) Service cost $ 2 $ 2 Interest cost 4 4 Amortization: Net loss from experience differences 4 3 Prior service credit (1) (10 ) (10 ) Net periodic postretirement health care benefit $ — $ (1 ) (1) For the three months ended March 31, 2018 and March 31, 2017 , amortization of prior service credit included an $8 million gain related to a change in the eligibility requirement and a change in benefits to Medicare-eligible participants. |
Postemployment Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Net periodic postemployment cost consisted of the following: For the Three Months Ended 2018 2017 (in millions) Service cost $ 2 $ 1 Interest cost 1 1 Amortization of net gains (1 ) (1 ) Net periodic postemployment cost $ 2 $ 1 |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Options Activity | Stock option activity is reflected below: Shares Subject to Option Weighted- Average Exercise or Grant Price Per Share Average Remaining Contractual Term Aggregate Intrinsic Value Balance at January 1, 2018 48,434,655 $29.92 5 years $ 626 million Annual grant to eligible employees 5,666,530 43.51 Additional options issued 10,820 43.92 Total options granted 5,677,350 43.51 Options exercised (1) (3,520,671 ) 24.92 $ 68 million Options canceled (282,433 ) 35.81 Balance at March 31, 2018 50,308,901 31.77 6 years $ 520 million (1) Cash received from options exercised was $85 million in the three months ended March 31, 2018 . The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $8 million in the three months ended March 31, 2018 . |
Deferred Stock Units, Performance Units and Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Performance Share Units and Stock-Based Awards Activity | Our performance share unit, deferred stock unit and historically granted restricted stock activity is reflected below: Number of Shares Grant Date Weighted-Average Fair Value Per Share (3) Weighted-Average Aggregate Fair Value (3) Balance at January 1, 2018 7,669,705 $39.74 Annual grant to eligible employees: Feb 22, 2018 Performance share units 1,048,770 51.23 Deferred stock units 788,310 43.51 Additional shares granted (1) 103,743 Various 39.48 Total shares granted 1,940,823 47.47 $ 92 million Vested (2) (2,084,527 ) 38.28 $ 80 million Forfeited (2) (195,028 ) 38.80 Balance at March 31, 2018 7,330,973 42.23 (1) Includes performance share units and deferred stock units. (2) Includes performance share units, deferred stock units and historically granted restricted stock. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $4 million in the three months ended March 31, 2018 . (3) 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 closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided. |
Reclassifications from Accumu34
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of 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 $27 million in the three months ended March 31, 2018 and $43 million in the three months ended March 31, 2017 . For the Three Months Ended 2018 2017 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (7,741 ) $ (8,914 ) Currency translation adjustments 160 512 Tax (expense)/benefit 47 31 Other comprehensive earnings/(losses) 207 543 Less: (earnings)/loss attributable to noncontrolling interests (15 ) (4 ) Balance at end of period (7,549 ) (8,375 ) Pension and Other Benefit Plans: Balance at beginning of period $ (2,144 ) $ (2,087 ) Net actuarial gain/(loss) arising during period 7 (6 ) Tax (expense)/benefit on net actuarial gain/(loss) — — Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (1) 47 41 Settlement losses and other expenses (1) 7 4 Tax expense/(benefit) on reclassifications (2) (13 ) (9 ) Currency impact (54 ) (29 ) Other comprehensive earnings/(losses) (6 ) 1 Balance at end of period (2,150 ) (2,086 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (113 ) $ (121 ) Net derivative gains/(losses) (29 ) 7 Tax (expense)/benefit on net derivative gain/(loss) — 5 Losses/(gains) reclassified into net earnings: Currency exchange contracts – forecasted transactions (3) — 1 Commodity contracts (3) — 8 Interest rate contracts (4) (18 ) — Tax expense/(benefit) on reclassifications (2) 4 (2 ) Currency impact (3 ) (1 ) Other comprehensive earnings/(losses) (46 ) 18 Balance at end of period (159 ) (103 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (9,998 ) $ (11,122 ) Total other comprehensive earnings/(losses) 155 562 Less: (earnings)/loss attributable to noncontrolling interests (15 ) (4 ) Other comprehensive earnings/(losses) attributable to Mondelēz International 140 558 Balance at end of period $ (9,858 ) $ (10,564 ) (1) These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 10, 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 gains or losses are recorded within interest and other expense, net. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended 2018 2017 (in millions, except per share data) Net earnings $ 944 $ 633 Noncontrolling interest (earnings) (6 ) (3 ) Net earnings attributable to Mondelēz International $ 938 $ 630 Weighted-average shares for basic EPS 1,489 1,529 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 16 21 Weighted-average shares for diluted EPS 1,505 1,550 Basic earnings per share attributable to Mondelēz International $ 0.63 $ 0.41 Diluted earnings per share attributable to Mondelēz International $ 0.62 $ 0.41 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Net Revues and Earnings | Our segment net revenues and earnings were: For the Three Months Ended 2018 2017 (in millions) Net revenues: Latin America $ 891 $ 910 AMEA 1,542 1,491 Europe 2,706 2,365 North America 1,626 1,648 Net revenues $ 6,765 $ 6,414 Earnings before income taxes: Operating income: Latin America $ 126 $ 111 AMEA 228 181 Europe 497 393 North America 275 292 Unrealized gains/(losses) on hedging activities (mark-to-market impacts) 206 (51 ) General corporate expenses (64 ) (57 ) Amortization of intangibles (44 ) (44 ) Operating income 1,224 825 Benefit plan non-service income 13 15 Interest and other expense, net (80 ) (119 ) Earnings before income taxes $ 1,157 $ 721 |
Schedule of Net Revenues by Product Category | Net revenues by product category were: For the Three Months Ended March 31, 2018 Latin America AMEA Europe North America Total (in millions) Biscuits $ 183 $ 442 $ 795 $ 1,333 $ 2,753 Chocolate 243 573 1,423 57 2,296 Gum & Candy 224 235 186 236 881 Beverages 161 172 28 — 361 Cheese & Grocery 80 120 274 — 474 Total net revenues $ 891 $ 1,542 $ 2,706 $ 1,626 $ 6,765 For the Three Months Ended March 31, 2017 (1) Latin America AMEA Europe North America Total (in millions) Biscuits $ 170 $ 400 $ 665 $ 1,333 $ 2,568 Chocolate 259 514 1,209 70 2,052 Gum & Candy 213 229 193 245 880 Beverages 193 173 41 — 407 Cheese & Grocery 75 175 257 — 507 Total net revenues $ 910 $ 1,491 $ 2,365 $ 1,648 $ 6,414 (1) During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018USD ($)SubsidiaryCountry | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | ||
Summary of Significant Accounting Policies [Line Items] | ||||
Number of consolidated subsidiaries subject to highly inflationary accounting | Subsidiary | 0 | |||
Net revenues | $ 6,765 | $ 6,414 | [1] | |
Number of countries in which products are sold | Country | 160 | |||
Number of countries in which entity operates (more than) | Country | 80 | |||
Outstanding principal amount of receivables sold under factoring arrangement | $ 886 | $ 843 | ||
Benefit plan non-service income reclassified from operating income | 13 | 15 | ||
Adjustments for New Accounting Pronouncement | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Benefit plan non-service income reclassified from operating income | 15 | |||
Adjustments for New Accounting Pronouncement | Cost of sales | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Benefit plan non-service income reclassified from operating income | (7) | |||
Adjustments for New Accounting Pronouncement | Selling, general and administrative expenses | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Benefit plan non-service income reclassified from operating income | $ (8) | |||
Argentina | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Net revenues | $ 136 | |||
Percentage of consolidated net revenues | 2.00% | |||
[1] | During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. |
Divestitures and Acquisitions (
Divestitures and Acquisitions (Details) € in Millions, $ in Millions, ¥ in Billions | Dec. 28, 2017USD ($) | Dec. 28, 2017JPY (¥) | Oct. 23, 2017EUR (€) | Oct. 23, 2017USD ($) | Oct. 02, 2017USD ($) | Aug. 17, 2017EUR (€) | Aug. 17, 2017USD ($) | Jul. 04, 2017USD ($) | Jul. 04, 2017AUD ($) | Apr. 28, 2017EUR (€) | Apr. 28, 2017USD ($) | Mar. 31, 2016USD ($) | May 31, 2016USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017AUD ($) |
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Proceeds from sale of equity method investments | $ 65,000,000 | ||||||||||||||||||
Gain on sale of equity method investment | 40,000,000 | ||||||||||||||||||
Tax on gain on sale of equity method investment | $ 15,000,000 | ||||||||||||||||||
Proceeds from sale of property, plant and equipment and other | $ 10,000,000 | $ 19,000,000 | |||||||||||||||||
Trademarks | |||||||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Intangible asset impairment | $ 70,000,000 | ||||||||||||||||||
Europe | Disposal Group, Disposed of by Sale, Not Discontinued Operations | KHC | |||||||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Proceeds from divestiture of businesses | € 2 | $ 3,000,000 | € 9 | $ 11,000,000 | |||||||||||||||
Japan | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Proceeds from divestiture of businesses | $ 24,000,000 | ¥ 2.8 | |||||||||||||||||
Australia and New Zealand | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Proceeds from divestiture of businesses | $ 347,000,000 | $ 456 | |||||||||||||||||
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 divestiture | $ 187,000,000 | $ 247 | $ 190 | ||||||||||||||||
Costs related to divestiture | $ 3,000,000 | $ 2,000,000 | |||||||||||||||||
Inventory-related working capital adjustments | $ 3,000,000 | ||||||||||||||||||
France | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
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 | ||||||||||||||||||
Gain (loss) on divestiture | $ (3,000,000) | ||||||||||||||||||
Costs related to divestiture | $ 18,000,000 | ||||||||||||||||||
Proceeds from sale of property, plant and equipment and other | € 157 | 169,000,000 | |||||||||||||||||
Disposal group, including discontinued operation, other non current liabilities | $ 22,000,000 | ||||||||||||||||||
Disposal group, including discontinued operations, reversed accrued expenses | $ 3,000,000 | ||||||||||||||||||
France | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Trademarks | |||||||||||||||||||
Business Combination, Separately Recognized Transactions [Line Items] | |||||||||||||||||||
Intangible asset impairment | $ 14,000,000 | $ 5,000,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 736 | $ 711 |
Finished product | 2,005 | 1,975 |
Inventories, gross | 2,741 | 2,686 |
Inventory reserves | (121) | (129) |
Inventories, net | $ 2,620 | $ 2,557 |
Property, Plant and Equipment40
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 15,943 | $ 15,680 |
Accumulated depreciation | (7,151) | (7,003) |
Property, plant and equipment, net | 8,792 | 8,677 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 457 | 458 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,086 | 2,979 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 11,402 | 11,195 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 998 | $ 1,048 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Capital expenditures | $ 284 | $ 306 |
Accrued capital expenditures unpaid | 252 | 186 |
Payments for capital expenditures accrued in the prior year | 357 | 343 |
Asset impairments and accelerated depreciation | 28 | 80 |
2014-2018 Restructuring Program | ||
Property, Plant and Equipment [Line Items] | ||
Asset impairments and accelerated depreciation | $ 23 | $ 71 |
Property, Plant and Equipment42
Property, Plant and Equipment - Asset Impairment and Exit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Non-cash property, plant and equipment write-downs | $ 28 | $ 80 |
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 | 23 | 71 |
2014-2018 Restructuring Program | Corporate | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Non-cash property, plant and equipment write-downs | 0 | 1 |
2014-2018 Restructuring Program | Latin America | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Non-cash property, plant and equipment write-downs | 8 | 6 |
2014-2018 Restructuring Program | AMEA | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Non-cash property, plant and equipment write-downs | 4 | 12 |
2014-2018 Restructuring Program | Europe | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Non-cash property, plant and equipment write-downs | 5 | 37 |
2014-2018 Restructuring Program | North America | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Non-cash property, plant and equipment write-downs | $ 6 | $ 15 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Goodwill by Segment (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 21,301 | $ 21,085 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 924 | 901 |
AMEA | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 3,391 | 3,371 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 8,072 | 7,880 |
North America | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 8,914 | $ 8,933 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Non-amortizable intangible assets | $ 17,868 | $ 17,671 |
Amortizable intangible assets | 2,426 | 2,386 |
Total intangible assets, gross | 20,294 | 20,057 |
Accumulated amortization | (1,484) | (1,418) |
Intangible assets, net | $ 18,810 | $ 18,639 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Additional Information (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018USD ($)Brand | Sep. 30, 2017USD ($)Brand | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Amortization expense for intangible assets | $ 44 | $ 44 | ||
Estimated amortization expense in year 1 | 178 | |||
Estimated amortization expense in year 2 | 178 | |||
Estimated amortization expense in year 3 | 178 | |||
Estimated amortization expense in year 4 | 87 | |||
Estimated amortization expense in year 5 | $ 87 | |||
Number of brands | Brand | 13 | |||
Intangible asset, aggregate book value | $ 17,868 | $ 17,671 | ||
Trademarks | ||||
Goodwill and Intangible Assets Disclosure [Line Items] | ||||
Intangible asset impairment | $ 70 | |||
Number of impaired brands | Brand | 5 | 5 | ||
Intangible asset, aggregate book value | $ 980 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets - Changes in Goodwill and Intangible Assets (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill | |
Balance at January 1, 2018 | $ 21,085 |
Currency/other | 216 |
Balance at March 31, 2018 | 21,301 |
Intangible Assets, at cost | |
Balance at January 1, 2018 | 20,057 |
Currency/other | 237 |
Balance at March 31, 2018 | $ 20,294 |
Equity Method Investments (Deta
Equity Method Investments (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2018director | Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 6,347 | $ 6,345 | ||
Equity method investment net earnings | $ 94 | $ 66 | ||
JDE | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, voting interest percentage | 26.50% | |||
Equity method investment, ownership percentage | 26.40% | |||
Equity method investment, profit and dividend sharing interest percentage | 26.20% | |||
Cash dividends received from equity method investments | $ 73 | 49 | ||
JDE | Equity Earnings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment net earnings | $ 46 | 18 | ||
Keurig | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 24.20% | |||
Equity method investment net earnings | $ 3 | 4 | ||
Proceeds from interest received on shareholder loan | 12 | |||
Keurig | Equity Earnings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment net earnings | 16 | 14 | ||
Keurig | Interest Income | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment net earnings | $ 6 | $ 6 | ||
Keurig Dr Pepper | Scenario, Forecast | Keurig with Dr Pepper Snapple Group, Inc. | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of directors, right to nominate | director | 2 | |||
Keurig Dr Pepper | Scenario, Forecast | Keurig with Dr Pepper Snapple Group, Inc. | Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 13.00% | |||
Keurig Dr Pepper | Scenario, Forecast | Keurig with Dr Pepper Snapple Group, Inc. | Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 14.00% |
2014-2018 Restructuring Progr48
2014-2018 Restructuring Program - Additional Information (Details) - USD ($) $ in Millions | Aug. 31, 2016 | May 06, 2014 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved capital expenditures | $ 284 | $ 306 | ||||||
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 | 114 | 211 | $ 3,375 | [1] | ||||
Restructuring charges | 52 | 157 | 2,286 | [1] | ||||
Cash spent in restructuring | 79 | 84 | ||||||
Non-cash asset write-downs | 25 | 72 | ||||||
Restructuring reserve | 416 | 416 | $ 464 | |||||
Implementation Costs | 62 | $ 54 | 1,089 | [1] | ||||
2014-2018 Restructuring Program | Maximum | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved capital expenditures | 1,600 | $ 2,200 | ||||||
2014-2018 Restructuring Program | Other current liabilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring reserve | 372 | 372 | ||||||
2014-2018 Restructuring Program | Other liabilities | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring reserve | 44 | 44 | ||||||
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 | Restructuring Program Costs | Scenario, Forecast | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved restructuring program cost | $ 4,100 | |||||||
2014-2018 Restructuring Program | Cash Costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved restructuring program cost | 3,100 | |||||||
2014-2018 Restructuring Program | Non-cash Costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Approved restructuring program cost | $ 1,000 | |||||||
2014-2018 Restructuring Program | Severance and related costs | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 28 | |||||||
Cash spent in restructuring | 79 | |||||||
Non-cash asset write-downs | 1 | |||||||
Restructuring reserve | $ 416 | $ 416 | $ 464 | |||||
[1] | Includes all charges recorded since program inception on May 6, 2014 through March 31, 2018. |
2014-2018 Restructuring Progr49
2014-2018 Restructuring Program - Restructuring Liability Activity (Details) - 2014-2018 Restructuring Program - USD ($) $ in Millions | 3 Months Ended | 47 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | ||
Restructuring Reserve [Roll Forward] | ||||
Liability balance, January 1, 2018 | $ 464 | |||
Charges | 52 | $ 157 | $ 2,286 | [1] |
Cash spent | (79) | (84) | ||
Non-cash settlements/adjustments | (25) | $ (72) | ||
Currency | 4 | |||
Liability balance, March 31, 2018 | 416 | 416 | ||
Severance and related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability balance, January 1, 2018 | 464 | |||
Charges | 28 | |||
Cash spent | (79) | |||
Non-cash settlements/adjustments | (1) | |||
Currency | 4 | |||
Liability balance, March 31, 2018 | 416 | 416 | ||
Asset Write-downs | ||||
Restructuring Reserve [Roll Forward] | ||||
Liability balance, January 1, 2018 | 0 | |||
Charges | 24 | |||
Cash spent | 0 | |||
Non-cash settlements/adjustments | (24) | |||
Currency | 0 | |||
Liability balance, March 31, 2018 | $ 0 | $ 0 | ||
[1] | Includes all charges recorded since program inception on May 6, 2014 through March 31, 2018. |
2014-2018 Restructuring Progr50
2014-2018 Restructuring Program - Restructuring and Implementation Costs by Segments (Details) - 2014-2018 Restructuring Program - USD ($) $ in Millions | 3 Months Ended | 47 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | [1] | ||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Costs | $ 52 | $ 157 | $ 2,286 | ||
Implementation Costs | 62 | 54 | 1,089 | ||
Total | 114 | 211 | 3,375 | ||
Operating Segments | Latin America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Costs | 24 | 24 | 454 | ||
Implementation Costs | 15 | 9 | 167 | ||
Total | 39 | 33 | 621 | ||
Operating Segments | AMEA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Costs | 6 | 27 | 454 | ||
Implementation Costs | 12 | 8 | 141 | ||
Total | 18 | 35 | 595 | ||
Operating Segments | Europe | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Costs | 7 | 69 | 851 | ||
Implementation Costs | 16 | 12 | 288 | ||
Total | 23 | 81 | 1,139 | ||
Operating Segments | North America | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Costs | [2] | 12 | 38 | 460 | |
Implementation Costs | [2] | 17 | 13 | 270 | |
Total | [2] | 29 | 51 | 730 | |
Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Costs | [3] | 3 | (1) | 67 | |
Implementation Costs | [3] | 2 | 12 | 223 | |
Total | [3] | $ 5 | $ 11 | $ 290 | |
[1] | Includes all charges recorded since program inception on May 6, 2014 through March 31, 2018. | ||||
[2] | During 2018 and 2017, our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. | ||||
[3] | Includes adjustment for rounding. |
Debt and Borrowing Arrangemen51
Debt and Borrowing Arrangements - Short-Term Borrowings and Related Weighted-Average Interest Rates (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 4,779 | $ 3,517 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 4,459 | $ 3,410 |
Weighted- Average Rate | 2.20% | 1.70% |
Bank loans | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 320 | $ 107 |
Weighted- Average Rate | 12.90% | 11.50% |
Debt and Borrowing Arrangemen52
Debt and Borrowing Arrangements - Additional Information (Details) SFr in Millions | Apr. 17, 2018USD ($) | Apr. 02, 2018USD ($) | Mar. 02, 2018USD ($) | Mar. 02, 2018CAD ($) | Feb. 28, 2018USD ($) | Feb. 01, 2018USD ($) | Jan. 26, 2018USD ($) | Jan. 26, 2018CHF (SFr) | Oct. 13, 2016 | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2017 | Mar. 02, 2018CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt repaid | $ 738,000,000 | $ 979,000,000 | |||||||||||||
Weighted-average interest rate | 2.30% | 2.10% | 2.20% | ||||||||||||
Fair value of total debt | $ 19,337,000,000 | $ 18,354,000,000 | |||||||||||||
Carrying value of total debt | 18,788,000,000 | 17,652,000,000 | |||||||||||||
Notes Payable | 3.250% Canadian dollar-denominated Notes Due March 2025 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, principal amount | $ 600,000,000 | ||||||||||||||
Debt instrument, interest rate | 3.25% | 3.25% | |||||||||||||
Proceeds from issuance of debt, net of discounts and underwriting fees | $ 461,000,000 | $ 595,000,000 | |||||||||||||
Debt issuance costs | $ 4,000,000 | ||||||||||||||
Notes Payable | 6.125% U.S. dollar-denominated Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 6.125% | ||||||||||||||
Long-term debt repaid | $ 478,000,000 | ||||||||||||||
Notes Payable | 0.080% Swiss franc-denominated Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate | 0.08% | 0.08% | |||||||||||||
Long-term debt repaid | $ 260,000,000 | SFr 250 | |||||||||||||
Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||||||||||||||
Line of credit facility outstanding amount | 0 | ||||||||||||||
Line of credit, expiration period | 364 days | ||||||||||||||
Revolving credit facility expiration date | Feb. 27, 2019 | ||||||||||||||
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 | ||||||||||||||
Revolving credit facility expiration date | Oct. 11, 2018 | Oct. 11, 2021 | |||||||||||||
Revolving credit facility debt covenant | 24,600,000,000 | ||||||||||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings / (losses) | 36,300,000,000 | ||||||||||||||
Subsequent Event | Notes Payable | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt repurchased amount | $ 570,000,000 | ||||||||||||||
Subsequent Event | Notes Payable | 6.500% U.S. dollar-denominated Notes Due February 2040 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt repurchased amount | $ 241,000,000 | ||||||||||||||
Debt instrument, interest rate | 6.50% | ||||||||||||||
Subsequent Event | Notes Payable | 5.375% U.S. dollar-denominated Notes Due February 2020 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt repurchased amount | $ 97,600,000 | ||||||||||||||
Debt instrument, interest rate | 5.375% | ||||||||||||||
Subsequent Event | Notes Payable | 6.500% U.S. dollar-denominated Notes Due November 2031 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt repurchased amount | $ 75,800,000 | ||||||||||||||
Debt instrument, interest rate | 6.50% | ||||||||||||||
Subsequent Event | Notes Payable | 6.875% U.S. dollar-denominated Notes Due February 2038 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt repurchased amount | $ 72,100,000 | ||||||||||||||
Debt instrument, interest rate | 6.875% | ||||||||||||||
Subsequent Event | Notes Payable | 6.125% U.S. dollar-denominated Notes Due August 2018 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt repurchased amount | $ 42,600,000 | ||||||||||||||
Debt instrument, interest rate | 6.125% | ||||||||||||||
Subsequent Event | Notes Payable | 6.875% U.S. dollar-denominated Notes Due January 2039 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt repurchased amount | $ 29,300,000 | ||||||||||||||
Debt instrument, interest rate | 6.875% | ||||||||||||||
Subsequent Event | Notes Payable | 7.000% U.S. dollar-denominated Notes Due August 2037 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt repurchased amount | $ 11,700,000 | ||||||||||||||
Debt instrument, interest rate | 7.00% | ||||||||||||||
International Subsidiaries | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 1,800,000,000 | $ 2,000,000,000 | |||||||||||||
Commercial paper | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Commercial paper, maturity period | 2 days | ||||||||||||||
Commercial paper | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Commercial paper, maturity period | 118 days | ||||||||||||||
Bank loans | Subsequent Event | Revolving Credit Facility | 364-Day Senior Unsecured Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Revolving credit facility, maximum borrowing capacity | $ 2,000,000,000 | ||||||||||||||
Borrowings from line of credit facility | $ 714,000,000 | ||||||||||||||
Line of credit, expiration period | 364 days |
Debt and Borrowing Arrangemen53
Debt and Borrowing Arrangements - Interest and Other Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Debt Disclosure [Abstract] | ||
Interest expense, debt | $ 102 | $ 103 |
Gain related to interest rate swaps | (14) | 0 |
Other (income)/expense, net | (8) | 16 |
Interest and other expense, net | $ 80 | $ 119 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 339 | $ 179 |
Liability Derivatives | 938 | 825 |
Derivatives Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 74 | 15 |
Liability Derivatives | 741 | 509 |
Derivatives Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 29 | 15 |
Liability Derivatives | 686 | 509 |
Derivatives Designated as Hedging Instruments | Net investment hedge contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 45 | 0 |
Liability Derivatives | 55 | 0 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 265 | 164 |
Liability Derivatives | 197 | 316 |
Derivatives Not Designated as Hedging Instruments | Currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 65 | 65 |
Liability Derivatives | 63 | 76 |
Derivatives Not Designated as Hedging Instruments | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 192 | 84 |
Liability Derivatives | 129 | 229 |
Derivatives Not Designated as Hedging Instruments | Interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 8 | 15 |
Liability Derivatives | $ 5 | $ 11 |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Fair Value and Measurement Inputs (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ (599) | $ (646) |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 2 | (11) |
Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 63 | (145) |
Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (654) | (490) |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (10) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 15 | (138) |
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) | 15 | (138) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (614) | (508) |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 2 | (11) |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | 48 | (7) |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (654) | (490) |
Significant Other Observable Inputs (Level 2) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | (10) | |
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 |
Significant Unobservable Inputs (Level 3) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Derivative fair value net asset (liability) | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) related to interest rate swaps | $ 14,000,000 | $ 0 | |
Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses), net of taxes recognized in earnings/(losses) | (32,000,000) | 11,000,000 | |
After-tax gains/(losses) reclassified from accumulated other comprehensive income into earnings | (14,000,000) | 7,000,000 | |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount | 7,477,000,000 | $ 6,532,000,000 | |
Interest rate contracts | Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Expected transfers of unrealized gains (losses) to earnings, within next 12 months or less | 1,000,000 | ||
Gains/(losses), net of taxes recognized in earnings/(losses) | (32,000,000) | 18,000,000 | |
After-tax gains/(losses) reclassified from accumulated other comprehensive income into earnings | (14,000,000) | $ 0 | |
Net investment hedge contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, notional amount | 6,608,000,000 | 0 | |
Gains/(losses), net of taxes recognized in earnings/(losses) | (11,000,000) | ||
After-tax gains/(losses) reclassified from accumulated other comprehensive income into earnings | 0 | ||
Net investment hedge contracts | Net investment hedge debt | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains/(losses), net of taxes recognized in income, excluded from effectiveness testing | $ 17,000,000 | ||
Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Hedged forecasted transaction period | 5 years 8 months | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative liabilities after effects of netting | $ 15,000,000 | 0 | |
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 | 30,000,000 | 34,000,000 | |
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 | $ 38,000,000 | $ 171,000,000 |
Financial Instruments - Notiona
Financial Instruments - Notional Values of Hedging Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Net investment hedge debt | Euro notes | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,777 | $ 3,679 |
Net investment hedge debt | British pound sterling notes | ||
Derivative [Line Items] | ||
Notional Amount | 476 | 459 |
Net investment hedge debt | Swiss franc notes | ||
Derivative [Line Items] | ||
Notional Amount | 1,468 | 1,694 |
Net investment hedge debt | Canadian dollar notes | ||
Derivative [Line Items] | ||
Notional Amount | 465 | 0 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | ||
Derivative [Line Items] | ||
Notional Amount | 4,279 | 7,089 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 2,243 | 2,213 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 956 | 1,204 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 7,477 | 6,532 |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 6,608 | $ 0 |
Financial Instruments - Cash Fl
Financial Instruments - Cash Flow Hedges Effect on Accumulated Other Comprehensive Earnings/(Losses), Net of Tax (Details) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||
Accumulated (loss)/gain at beginning of period | $ (113) | $ (121) |
Transfer of realized (gains)/losses in fair value to earnings | (14) | 7 |
Unrealized gain/(loss) in fair value | (32) | 11 |
Accumulated (loss)/gain at end of period | $ (159) | $ (103) |
Financial Instruments - Cash 59
Financial Instruments - Cash Flow Hedges After-tax Gains/(Losses) (Details) - Cash Flow Hedges - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | $ 14 | $ (7) |
Gains/(losses), net of taxes recognized in earnings/(losses) | (32) | 11 |
Currency exchange contracts | Forecasted transactions | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses), net of taxes recognized in earnings/(losses) | 0 | (6) |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | 0 | (7) |
Gains/(losses), net of taxes recognized in earnings/(losses) | 0 | (1) |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | 14 | 0 |
Gains/(losses), net of taxes recognized in earnings/(losses) | $ (32) | $ 18 |
Financial Instruments - Fair 60
Financial Instruments - Fair Value Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (loss) recognized in income on fair value of hedges | $ 0 | $ 0 |
Borrowings | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (loss) recognized in income on fair value of hedges | 1 | 4 |
Derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain / (loss) recognized in income on fair value of hedges | $ (1) | $ (4) |
Financial Instruments - Carryin
Financial Instruments - Carrying Amount of Hedged Fixed Interest Rate Debt (Details) - Debt - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Notional value of borrowings (and related derivatives) | $ (322) | $ (801) |
Cumulative fair value hedging adjustments | (1) | 0 |
Carrying amount of borrowings | $ (323) | $ (801) |
Financial Instruments - Hedges
Financial Instruments - Hedges of Net Investments in International Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Euro notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) related to hedges of net investments in international operations | $ (75) | $ (29) |
British pound sterling notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) related to hedges of net investments in international operations | (13) | (5) |
Swiss franc notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) related to hedges of net investments in international operations | (26) | (15) |
Canadian dollar notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) related to hedges of net investments in international operations | $ (2) | $ 0 |
Financial Instruments - Economi
Financial Instruments - Economic Hedges (Details) - Economic Hedging - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | $ 141 | $ (80) |
Currency exchange contracts | Intercompany loans and forecasted interest payments | Interest and other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 7 | 2 |
Currency exchange contracts | Forecasted transactions | Interest and other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (5) | (2) |
Currency exchange contracts | Forecasted transactions | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (7) | (17) |
Currency exchange contracts | Forecasted transactions | Selling, general and administrative expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (3) | (1) |
Commodity contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | $ 149 | $ (62) |
Benefit Plans - Pension Costs (
Benefit Plans - Pension Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement losses and other expenses | $ 7 | $ 3 |
Pension Plans | U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 12 | 12 |
Interest cost | 15 | 15 |
Expected return on plan assets | (22) | (25) |
Net loss from experience differences | 11 | 8 |
Prior service cost/(benefit) | 1 | 1 |
Settlement losses and other expenses | 7 | 3 |
Net periodic benefit costs | 24 | 14 |
Pension Plans | Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 38 | 39 |
Interest cost | 52 | 48 |
Expected return on plan assets | (117) | (104) |
Net loss from experience differences | 42 | 41 |
Prior service cost/(benefit) | 0 | (1) |
Settlement losses and other expenses | 0 | 1 |
Net periodic benefit costs | $ 15 | $ 24 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement losses and other expenses | $ 7 | $ 3 |
Pension Plans | U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement losses and other expenses | 7 | 3 |
Employer contribution | 1 | |
Estimated future employer contributions | 38 | |
Pension Plans | Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement losses and other expenses | 0 | $ 1 |
Employer contribution | 143 | |
Estimated future employer contributions | 158 | |
Pension Plans | Non-U.S. Plans | United Kingdom and Ireland | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contribution | $ 107 |
Benefit Plans - Postretirement
Benefit Plans - Postretirement Health Care Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Gain related to a change in the eligibility requirement and a change in benefits to Medicare-eligible participants | $ 8 | $ 8 |
Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 2 |
Interest cost | 4 | 4 |
Net loss from experience differences | 4 | 3 |
Prior service credit | (10) | (10) |
Net periodic benefit costs | $ 0 | $ (1) |
Benefit Plans - Postemployment
Benefit Plans - Postemployment Benefit Costs (Details) - Postemployment Benefit Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2 | $ 1 |
Interest cost | 1 | 1 |
Amortization of net gains | (1) | (1) |
Net periodic benefit costs | $ 2 | $ 1 |
Stock Plans - Stock Option Acti
Stock Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Shares Subject to Option | |||
Balance at January 1, 2018 (In shares) | 48,434,655 | ||
Options granted (in shares) | 5,677,350 | ||
Options exercised (in shares) | [1] | (3,520,671) | |
Options canceled (in shares) | (282,433) | ||
Balance at March 31, 2018 (in shares) | 50,308,901 | 48,434,655 | |
Weighted- Average Exercise or Grant Price Per Share | |||
Balance at January 1, 2018 (in dollars per share) | $ 29.92 | ||
Options granted (in dollars per share) | 43.51 | ||
Options exercised (in dollars per share) | [1] | 24.92 | |
Options canceled (in dollars per share) | 35.81 | ||
Balance at March 31, 2018 (in dollars per share) | $ 31.77 | $ 29.92 | |
Average Remaining Contractual Term | |||
Average remaining contractual term | 6 years | 5 years | |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value | $ 520 | $ 626 | |
Aggregate intrinsic value options exercised | [1] | 68 | |
Cash received from options exercised | 85 | ||
Actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises | $ 8 | ||
Annual grant to eligible employees | |||
Shares Subject to Option | |||
Options granted (in shares) | 5,666,530 | ||
Weighted- Average Exercise or Grant Price Per Share | |||
Options granted (in dollars per share) | $ 43.51 | ||
Additional options issued | |||
Shares Subject to Option | |||
Options granted (in shares) | 10,820 | ||
Weighted- Average Exercise or Grant Price Per Share | |||
Options granted (in dollars per share) | $ 43.92 | ||
[1] | Cash received from options exercised was $85 million in the three months ended March 31, 2018. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $8 million in the three months ended March 31, 2018. |
Stock Plans - Performance Share
Stock Plans - Performance Share Units and Other Stock-Based Awards Activity (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)$ / sharesshares | ||
Number of Shares | ||
Balance at January 1, 2018 (in shares) | shares | 7,669,705 | |
Shares granted (in shares) | shares | 1,940,823 | |
Vested (in shares) | shares | (2,084,527) | [1] |
Forfeited (in shares) | shares | (195,028) | [1] |
Balance at March 31, 2018 (in shares) | shares | 7,330,973 | |
Weighted-average grant date fair value per share | ||
Balance at January 1, 2018 (in dollars per share) | $ / shares | $ 39.74 | |
Shares granted (in dollars per share) | $ / shares | 47.47 | |
Vested (in dollars per share) | $ / shares | 38.28 | [1] |
Forfeited (in dollars per share) | $ / shares | 38.80 | [1] |
Balance at March 31, 2018 (in dollars per share) | $ / shares | $ 42.23 | |
Weighted-Average Aggregate Fair Value | ||
Weighted average grant date fair value of shares granted | $ | $ 92 | |
Weighted average grant date fair value of shares vested | $ | 80 | [1] |
Maximum | ||
Weighted-Average Aggregate Fair Value | ||
Actual tax benefit realized for the tax deductions from the shares vested | $ | $ 4 | |
Annual grant to eligible employees | ||
Grant Date | ||
Grant Date | Feb. 22, 2018 | |
Performance share units | ||
Number of Shares | ||
Shares granted (in shares) | shares | 1,048,770 | |
Weighted-average grant date fair value per share | ||
Shares granted (in dollars per share) | $ / shares | $ 51.23 | |
Deferred stock units | ||
Number of Shares | ||
Shares granted (in shares) | shares | 788,310 | |
Weighted-average grant date fair value per share | ||
Shares granted (in dollars per share) | $ / shares | $ 43.51 | |
Additional shares granted | ||
Number of Shares | ||
Shares granted (in shares) | shares | 103,743 | [2] |
Weighted-average grant date fair value per share | ||
Shares granted (in dollars per share) | $ / shares | $ 39.48 | [2] |
[1] | Includes performance share units, deferred stock units and historically granted restricted stock. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $4 million in the three months ended March 31, 2018. | |
[2] | Includes performance share units and deferred stock units. |
Stock Plans - Additional Inform
Stock Plans - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions | Jan. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2013 |
Class of Stock [Line Items] | |||||
Cost of shares repurchased | $ 500,000,000 | $ 2,202,000,000 | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of shares repurchased (in shares) | 11.5 | ||||
Average cost of shares repurchased (in dollars per share) | $ 43.51 | ||||
Cost of shares repurchased | $ 500,000,000 | ||||
Stock repurchase remaining amount | $ 6,100,000,000 | ||||
Common Stock | Share Repurchase Program amended July 29, 2015 | |||||
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 Stock | Prior to January 1, 2018 | |||||
Class of Stock [Line Items] | |||||
Stock repurchase value | $ 13,700,000,000 | ||||
Cost of shares repurchased | $ 13,000,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ₨ in Billions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018INR (₨) | |
Loss Contingencies [Line Items] | ||||
Income due to reversal of accrued liability under tax indemnity | $ 58,000,000 | |||
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 | $ 57,000,000 | ₨ 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 | 75,000,000 | 4.9 | ||
Indian Department of Central Excise Authority | Cadbury | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Tax penalties and interest expense | $ 90,000,000 | ₨ 5.8 | ||
Selling, general and administrative expenses | ||||
Loss Contingencies [Line Items] | ||||
Income due to reversal of accrued liability under tax indemnity | 46,000,000 | |||
Interest and other expense, net | ||||
Loss Contingencies [Line Items] | ||||
Income due to reversal of accrued liability under tax indemnity | $ 12,000,000 | |||
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 |
Reclassifications from Accumu72
Reclassifications from Accumulated Other Comprehensive Income - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Equity [Abstract] | ||
Net loss amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) | $ 27 | $ 43 |
Reclassifications from Accumu73
Reclassifications from Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Earnings/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | ||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||
Balance at beginning of period | $ 26,191 | $ 25,215 | $ 25,215 | |
Total other comprehensive earnings/(losses) | 155 | 562 | 1,152 | |
Less: (earnings)/loss attributable to noncontrolling interests | (15) | (4) | ||
Tax expense/(benefit) on reclassifications | (307) | (154) | ||
Losses/(gains) reclassified into net earnings | (3,916) | (3,896) | ||
Other comprehensive earnings/(losses) attributable to Mondelēz International | 140 | 558 | ||
Balance at end of period | 26,550 | 26,191 | ||
Currency Translation Adjustments | ||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||
Balance at beginning of period | (7,741) | (8,914) | (8,914) | |
Currency translation adjustments | 160 | 512 | ||
Tax (expense)/benefit | 47 | 31 | ||
Total other comprehensive earnings/(losses) | 207 | 543 | ||
Less: (earnings)/loss attributable to noncontrolling interests | (15) | (4) | ||
Balance at end of period | (7,549) | (8,375) | (7,741) | |
Pension and Other Benefits | ||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||
Balance at beginning of period | (2,144) | (2,087) | (2,087) | |
Total other comprehensive earnings/(losses) | (6) | 1 | ||
Net actuarial gain/(loss) arising during period | 7 | (6) | ||
Tax (expense)/benefit on net actuarial gain/(loss) | 0 | 0 | ||
Currency impact, pension and other benefit plans | (54) | (29) | ||
Balance at end of period | (2,150) | (2,086) | (2,144) | |
Derivative Cash Flow Hedges | ||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||
Balance at beginning of period | (113) | (121) | (121) | |
Total other comprehensive earnings/(losses) | (46) | 18 | ||
Net derivative gains/(losses) | (29) | 7 | ||
Tax (expense)/benefit on net derivative gain/(loss) | 0 | 5 | ||
Currency impact derivative cash flow hedges | (3) | (1) | ||
Balance at end of period | (159) | (103) | (113) | |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||
Balance at beginning of period | (9,998) | (11,122) | (11,122) | |
Total other comprehensive earnings/(losses) | 140 | 1,124 | ||
Balance at end of period | (9,858) | (10,564) | $ (9,998) | |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Other Benefits | ||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||
Amortization of experience losses and prior service costs | [1] | 47 | 41 | |
Settlement losses and other expenses | [1] | 7 | 4 | |
Tax expense/(benefit) on reclassifications | [2] | (13) | (9) | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Currency exchange contracts | ||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||
Losses/(gains) reclassified into net earnings | [3] | (18) | 0 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Currency exchange contracts | Forecasted transactions | ||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||
Losses/(gains) reclassified into net earnings | [4] | 0 | 1 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Commodity contracts | ||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||
Losses/(gains) reclassified into net earnings | [4] | 0 | 8 | |
Reclassification out of Accumulated Other Comprehensive Income | Derivative Cash Flow Hedges | Interest rate contracts | ||||
Accumulated other comprehensive income attributable to Mondelēz International: | ||||
Tax expense/(benefit) on reclassifications | [2] | $ 4 | $ (2) | |
[1] | These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 10, Benefit Plans. | |||
[2] | Taxes reclassified to earnings are recorded within the provision for income taxes. | |||
[3] | These reclassified gains or losses are recorded within interest and other expense, net. | |||
[4] | These reclassified gains or losses are recorded within cost of sales. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | |||
Provisional discrete net tax benefit | $ (89) | ||
Estimated effective tax rate | 22.50% | 26.30% | |
Effective tax rate | 26.50% | 21.40% | |
Total unfavorable discrete items | $ 46 | $ 36 | |
Increase in tax expense and liability for transition tax due to U.S. tax reform | 94 | 0 | |
Net favorable tax audit settlements and expirations of statutes of limitations | 16 | 16 | |
Benefit relating to the U.S. domestic production activities deduction | $ 16 | ||
Foreign Tax Authority | Argentina Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Benefit from pending tax refund claim | $ 18 |
Earnings per Share - Calculatio
Earnings per Share - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Net earnings | $ 944 | $ 633 | $ 2,936 |
Noncontrolling interest (earnings) | (6) | (3) | |
Net earnings attributable to Mondelez International | $ 938 | $ 630 | |
Weighted-average shares for basic EPS (in shares) | 1,489 | 1,529 | |
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares (in shares) | 16 | 21 | |
Weighted-average shares for diluted EPS (in shares) | 1,505 | 1,550 | |
Basic earnings per share attributable to Mondelez International (in dollars per share) | $ 0.63 | $ 0.41 | |
Diluted earnings per share attributable to Mondelez International (in dollars per share) | $ 0.62 | $ 0.41 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Mondelez International stock options excluded from the calculation of diluted EPS (in shares) | 7.1 | 6.7 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 6,765 | $ 6,414 | [1] |
General corporate expenses | (64) | (57) | |
Amortization of intangibles | (44) | (44) | |
Operating income | 1,224 | 825 | |
Benefit plan non-service income | 13 | 15 | |
Interest and other expense, net | (80) | (119) | |
Earnings before income taxes | 1,157 | 721 | |
Cost of sales | |||
Segment Reporting Information [Line Items] | |||
Unrealized gains/(losses) on hedging activities (mark-to-market impacts) | 206 | (51) | |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 891 | 910 | [1] |
Operating income | 126 | 111 | |
AMEA | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,542 | 1,491 | [1] |
Operating income | 228 | 181 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,706 | 2,365 | [1] |
Operating income | 497 | 393 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,626 | 1,648 | [1] |
Operating income | $ 275 | $ 292 | |
[1] | During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. |
Segment Reporting - Net Reven78
Segment Reporting - Net Revenues by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | [1] | |
Segment Reporting Information [Line Items] | |||
Total net revenues | $ 6,765 | $ 6,414 | |
Biscuits | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 2,753 | 2,568 | |
Chocolate | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 2,296 | 2,052 | |
Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 881 | 880 | |
Beverages | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 361 | 407 | |
Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 474 | 507 | |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 891 | 910 | |
Latin America | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 183 | 170 | |
Latin America | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 243 | 259 | |
Latin America | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 224 | 213 | |
Latin America | Beverages | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 161 | 193 | |
Latin America | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 80 | 75 | |
AMEA | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 1,542 | 1,491 | |
AMEA | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 442 | 400 | |
AMEA | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 573 | 514 | |
AMEA | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 235 | 229 | |
AMEA | Beverages | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 172 | 173 | |
AMEA | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 120 | 175 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 2,706 | 2,365 | |
Europe | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 795 | 665 | |
Europe | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 1,423 | 1,209 | |
Europe | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 186 | 193 | |
Europe | Beverages | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 28 | 41 | |
Europe | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 274 | 257 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 1,626 | 1,648 | |
North America | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 1,333 | 1,333 | |
North America | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 57 | 70 | |
North America | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 236 | 245 | |
North America | Beverages | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 0 | 0 | |
North America | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | $ 0 | $ 0 | |
[1] | During the first quarter of 2018, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2018 presentation. |