Mondelez 2012 Annual Report Download - page 35

Table of Contents
Results of Operations by Reportable Segment
We manage and report operating results through three geographic reporting units: Developing Markets, Europe and North America.
We manage the operations of Developing Markets by location and Europe and North America by product category.
The following discussion compares our segment results from continuing operations for the following periods –
As discussed in Note 16, Segment Reporting , 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),
certain components of our U.S. pension plan cost (which are a component of cost of sales and selling, general and administrative
expenses), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of
intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and
administrative expenses) in all periods presented. We exclude the unrealized gains and losses on hedging activities from segment
operating income in order to provide better transparency of our segment operating results. Once realized, the gains and losses on
hedging activities are recorded within segment operating results. We exclude certain components of our U.S. pension plan cost
from segment operating income because we centrally manage pension plan funding decisions and the determination of discount
rate, expected rate of return on plan assets and other actuarial assumptions. Therefore, we allocate only the service cost
component of our U.S. pension plan expense to segment operating income. We exclude general corporate expenses, amortization
of intangibles, gains and losses on divestitures and acquisition-related costs from segment operating income in order to provide
better transparency of our segment operating results.
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For the Years Ended December 31,
2012
2011
2010
(in millions)
Net revenues:
Developing Markets
$
15,655
$
15,621
$
13,420
Europe
12,457
13,356
11,628
North America
6,903
6,833
6,441
Net revenues
$
35,015
$
35,810
$
31,489
For the Years Ended December 31,
2012
2011
2010
(in millions)
Earnings from continuing operations before income taxes:
Operating income:
Developing Markets
$
2,067
$
2,003
$
1,533
Europe
1,613
1,406
1,115
North America
873
863
805
Unrealized gains / (losses) on hedging activities
1
(36
)
38
Certain U.S. pension plan costs
(92
)
(76
)
(56
)
General corporate expenses
(714
)
(437
)
(511
)
Amortization of intangibles
(217
)
(225
)
(210
)
Gains on divestitures, net
107
– –
Acquisition-related costs
(1
)
– (
218
)
Operating income
3,637
3,498
2,496
Interest and other expense, net
(1,863
)
(1,618
)
(1,770
)
Earnings from continuing operations before income taxes
$
1,774
$
1,880
$
726