Mondelez 2012 Annual Report Download - page 25

Table of Contents
On October 1, 2012, we divested the following assets and liabilities which net to $4,358 million, or $4,111 million net of cash
retained by Kraft Foods Group on the Distribution Date (in millions):
Additionally, $4,308 million of accumulated other comprehensive losses primarily related to the pension and other benefit plan net
liabilities transferred to Kraft Foods Group and $89 million of unearned compensation recorded within additional paid in capital were
distributed to Kraft Foods Group. In total, we recorded a distribution of $8,755 million to our shareholders in connection with the
Spin-Off of Kraft Foods Group.
In order to implement the Spin-Off, we entered into certain agreements with Kraft Foods Group to effect our legal and structural
separation; govern the relationship between us; and allocate various assets, liabilities and obligations between us, including,
among other things, employee benefits, intellectual property and tax-related assets and liabilities (see Note 14, Income Taxes , for
additional information on the current and deferred tax assets and liabilities transferred or retained in the Spin-Off). In addition to
executing the Spin-Off in the manner provided in the agreements, in November 2012, pursuant to these agreements, we paid Kraft
Foods Group $163 million related to targeted cash flows (together with the $247 million of cash divested on the Distribution Date,
totaling $410 million of cash transferred to Kraft Foods Group in connection with the Spin-Off). To facilitate the management,
including final payment and resolution, of certain obligations, Kraft Foods Group retained certain of our North American net trade
payables and receivables. We also retained approximately $140 million of workers’ compensation liabilities for claims incurred by
Kraft Foods Group employees prior to the Spin-
Off. In November 2012, we paid Kraft Foods Group $95 million to cash settle the net
trade payables and receivables and which are also reflected in table above. As of December 31, 2012, we also have a $55 million
receivable from Kraft Foods Group related to the cash settlement of stock awards held by our respective employees at the time of
the Spin-Off as further described in Note 11, Stock Plans , to the consolidated financial statements.
Our results from continuing operations include one-time Spin-Off transaction, transition and financing and related costs (“Spin-Off
Costs”) we have incurred to date. We recorded Spin-Off Costs of $1,053 million, or $0.39 per diluted share in 2012 and $46 million,
or $0.02 per diluted share, in 2011. We expect to incur Spin-Off Costs of approximately $100 million in 2013 related primarily to
human resource, customer service and logistics and information systems and processes as well as legal costs associated with
revising intellectual property and other long-term agreements.
Cadbury Acquisition:
In 2010, we acquired all the outstanding shares of Cadbury Limited (“Cadbury”) in an acquisition valued at $18,547 million, or
$17,503 million net of cash and cash equivalents. In 2010, we incurred acquisition-related transaction costs of $218 million
(recorded in selling, general and administrative expense) and acquisition-related financing fees of $96 million (recorded in interest
and other expenses, net).
22
Assets
Cash
$
247
Receivables
1,685
Inventories, net
2,099
Deferred income taxes
338
Other current assets
168
Property, plant and equipment, net
4,211
Goodwill
11,911
Intangible assets, net
2,632
Prepaid pension assets
16
Other assets
856
$
24,163
Liabilities
Current portion of long
-
term debt
$
6
Accounts payable
1,798
Accrued marketing
463
Accrued employment costs
190
Other current liabilities
751
Long-term debt
9,965
Deferred income taxes
874
Accrued pension costs
2,026
Accrued postretirement health care costs
3,316
Other liabilities
416
$
19,805
Net assets divested in the Spin
-
Off
$
4,358