Mondelez 2012 Annual Report Download - page 71

Table of Contents
Our February 2, 2010 Cadbury acquisition was valued at $18,547 million, or $17,503 million net of cash and cash equivalents. As
part of that acquisition, we acquired the following assets and assumed the following liabilities (in millions):
Other Divestitures:
In 2012, we received $200 million in proceeds and recorded pre-tax gains of $107 million primarily related to the divestitures of 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.
The aggregate operating results of the divestitures discussed above were not material to our financial statements in any of the
periods presented.
Note 3. Inventories
Inventories at December 31, 2012 and 2011 were:
68
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.
2012
2011
(in millions)
Raw materials
$
1,213
$
1,800
Finished product
2,528
3,906
Inventories, net
$
3,741
$
5,706
(1)
(2)
(3)
(4)