Mondelez 2012 Annual Report Download - page 69

Table of Contents
Interest expense relating to debt Kraft Foods Group incurred or assumed through October 1, 2012 has been included in the results
from discontinued operations for all periods presented and as follows:
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). In addition to executing the Spin-Off in the manner provided in the agreements, in November 2012,
pursuant to these aqreements, 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.
66
Nine Months Ended
For the Years Ended December 31,
October 1, 2012
2011
2010
(in millions)
$6.0 billion note issuance in June 2012
$
70
$
–
$
–
$3.6 billion notes exchanged in July 2012
171
226
216
$0.4 billion debt transferred in October 2012
24
31
31
Capital leases and other
13
10
7
$
278
$
267
$
254
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