Mondelez 2012 Annual Report Download - page 54

Table of Contents
Operating EPS
Using the definition of “Operating EPS” above, the only adjustments made to “Diluted EPS attributable to Mondelēz International
from continuing operations” (the most comparable U.S. GAAP financial measure) were to exclude Spin-Off Costs, Integration
Program costs, 2012-2014 Restructuring Program costs, acquisition and related financing costs, gains / (losses) on divestitures,
pension costs related to obligations transferred in the Spin-Off, interest expense adjustment related to the Spin-Off transaction,
operating results from divested businesses and the 2010 U.S. health care legislation change in prior periods. We also evaluate
Operating EPS on a constant currency basis. We believe these measures provide improved comparability of operating results.
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For the Years Ended
December 31,
2012
2011
$ Change
% Change
(in millions)
Operating EPS (constant currency)
$
1.45
$
1.38
$
0.07
5.1%
Impact of unfavorable foreign currency
(0.06)
–
(
0.06)
Operating EPS
$
1.39
$
1.38
$
0.01
0.7%
Spin-Off Costs
(0.39)
(0.02)
(0.37)
Integration Program
(0.08)
(0.28)
0.20
2012-2014 Restructuring Program
(0.04)
– (
0.04)
Spin-Off interest expense adjustment
(0.06)
(0.11)
0.05
Spin-Off pension expense adjustment
(0.02)
(0.03)
0.01
Gains on divestitures, net
0.03
–
0.03
Net earnings from divested businesses
0.03
0.03
–
Diluted EPS attributable to Mondel
ē
z International from
continuing operations
$
0.86
$
0.97
$
(0.11)
(11.3)%
Discontinued operations
0.83
1.02
(0.19)
Diluted EPS attributable to Mondel
ē
z International
$
1.69
$
1.99
$
(0.30)
(15.1)%
For the Years Ended
December 31,
2011
2010
$ Change
% Change
(in millions)
Operating EPS (constant currency)
$
1.34
$
1.06
$
0.28
26.4%
Impact of unfavorable foreign currency
0.07
–
0.07
Operating EPS
$
1.41
$
1.06
$
0.35
33.0%
Spin-Off Costs
(0.02)
– (
0.02)
Integration Program
(0.28)
(0.29)
0.01
Spin-Off interest expense adjustment
(0.11)
(0.11)
–
Spin-Off pension expense adjustment
(0.03)
(0.03)
–
Acquisition and related financing costs – (
0.22)
0.22
U.S. healthcare legislation impact on deferred taxes – (
0.03)
0.03
Diluted EPS attributable to Mondel
ē
z International
from continuing operations
$
0.97
$
0.38
$
0.59
155.3%
Discontinued operations
1.02
2.01
(0.99)
Diluted EPS attributable to Mondel
ē
z International
$
1.99
$
2.39
$
(0.40)
(16.7)%
(1) Represents interest expense associated with the assumed reduction of $6 billion of our debt on January 1, 2010 from the utilization of funds received from the $6 billion
of notes Kraft Foods Group issued directly and cash proceeds distributed to us in June 2012 in connection with our Spin-Off capitalization plan. Note during the year
ended December 31, 2012, a portion of the $6 billion of debt was retired. As such, we adjusted interest expense during this period as if this debt had been repaid on
January 1, 2010 to ensure consistency of our assumption and related results.
(2) Represents the estimated annual benefit plan expense associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-Off. The estimate of
$91 million was based on market conditions and benefit plan assumptions as of January 1, 2012. For the year ended December 31, 2012, a prorated estimate of $68
million was reflected for the nine months prior to the Spin-Off and transfer of the benefit plan obligations to Kraft Foods Group.
(1)
(2)
(1)
(2)