Mondelez 2012 Annual Report Download - page 26

Table of Contents
As a condition to granting approval of the acquisition, the EU required that we divest certain Cadbury confectionery operations in
Poland and Romania. The divestitures were completed in the third quarter of 2010 and generated $342 million of sale proceeds.
The impact of these divestitures was reflected as adjustments within the Cadbury final purchase accounting.
During 2010, Cadbury contributed net revenues of $9,143 million and net earnings of $530 million from February 2, 2010 through
December 31, 2010. The following unaudited pro forma summary presents our consolidated results of continuing operations as if
Cadbury had been acquired on January 1, 2010. These amounts were calculated after conversion to U.S. GAAP, applying our
accounting policies, and adjusting Cadbury’s results to reflect the additional depreciation and amortization that would have been
charged assuming the fair value adjustments to property, plant and equipment, and intangible assets had been applied from
January 1, 2010, together with the consequential tax effects. These adjustments also reflect the additional interest expense
incurred on the debt to finance the purchase and the divestitures of certain Cadbury confectionery operations in Poland and
Romania.
We also acquired assets and assumed liabilities as follows (in millions):
Other Divestitures and Sales of Property
During the three months ended December 31, 2012, we completed several divestitures within our Europe segment which generated
cash proceeds of $200 million and pre-tax gains of $107 million. The divestitures primarily included a dinners and sauces grocery
business in Germany and Belgium and a canned meat business in Italy. In 2011, there were no significant divestitures. In 2010, as
discussed above, we divested businesses in Poland and Romania in connection with the acquisition of Cadbury.
During the three months ended March 31, 2012, we also sold property located in Russia which generated cash proceeds of $72
million and a pre-tax gain of $55 million which was recorded within selling, general and administrative expenses.
The aggregate operating results of the divestitures discussed above were not material to our financial statements in any of the
periods presented.
23
Pro forma
Year Ended
December 31, 2010
(in millions)
Net revenues
$ 32,052
Net earnings attributable to Mondelēz International
2,115
Assets
Cash and cash equivalents
$
1,044
Receivables
1,333
Inventories, net
1,298
Other current assets
660
Property, plant and equipment, net
3,293
Goodwill
9,530
Intangible assets, net
12,905
Other assets
593
$
30,656
Liabilities
Short
-
term borrowings
$
1,206
Accounts payable
1,605
Other current liabilities
1,866
Long-term debt
2,437
Deferred income taxes
3,218
Accrued pension costs
817
Other liabilities
927
Noncontrolling interest
33
$
12,109
Net assets acquired
$
18,547
(1)
The gross amount of acquired receivables was $1,474 million, of which $141 million was reserved as uncollectable.
(2) Goodwill will not be deductible for statutory tax purposes and is attributable to Cadbury’s workforce and the significant synergies we expect from the
acquisition.
(3) We acquired $10.3 billion of indefinite-lived intangible assets, primarily trademarks, and $2.6 billion of amortizable intangible assets, primarily customer relationships and technology. Customer relationships will be amortized over approximately 13 years and technology will be amortized over approximately 12
years.
(4) Within other current liabilities, a reserve for exposures related to taxes of approximately $70 million was established within our Developing Markets segment.
The cumulative exposure was approximately $150 million at December 31, 2010.
(1)
(2)
(3)
(4)