Mondelez 2012 Annual Report Download - page 72

Table of Contents
Note 4. Property, Plant and Equipment
Property, plant and equipment at December 31, 2012 and 2011 were:
On October 1, 2012, $4,211 million of property, plant and equipment was divested with the Spin-Off of Kraft Foods Group.
Additionally, in the first quarter of 2012, we sold a manufacturing facility located in Russia for $72 million in proceeds, disposing of
$17 million of primarily buildings and building improvements, which resulted in our recording a pre-tax gain of $55 million within our
Developing Markets segment.
Asset impairments:
In 2012, we recorded impairment charges of $18 million, related primarily to machinery and equipment, under our 2012-2014
Restructuring Program which is further described in Note 6, 2 012-2014 Restructuring Program . We did not record any asset
impairments in 2011. During 2010, we recorded an asset impairment of $12 million on a biscuit plant and related property, plant and
equipment in France. These charges were recorded within asset impairment and exit costs.
Note 5. Goodwill and Intangible Assets
At December 31, 2012 and 2011, goodwill by reportable segment was:
Intangible assets at December 31, 2012 and 2011 were:
Non-amortizable intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings
Corp., the Spanish and Portuguese operations of United Biscuits, the global LU Biscuit business of Groupe Danone S.A. and
Cadbury. Amortizable intangible assets consist primarily of trademarks, customer-related intangibles, process technology, license
agreements and non-compete agreements. At December 31, 2012, the weighted-average life of our amortizable intangible assets
was 13.2 years.
Amortization expense for intangible assets was $217 million in 2012, $225 million in 2011 and $210 million in 2010. We currently
estimate amortization expense for each of the next five years to be approximately $218 million.
69
2012
2011
(in millions)
Land and land improvements
$
643
$
768
Buildings and building improvements
3,199
4,997
Machinery and equipment
11,992
16,934
Construction in progress
1,022
1,233
16,856
23,932
Accumulated depreciation
(6,846
)
(10,119
)
Property, plant and equipment, net
$
10,010
$
13,813
2012
2011
(in millions)
Developing Markets
$
7,450
$
7,463
Europe
9,245
9,003
North America
9,106
20,831
Goodwill
$
25,801
$
37,297
2012
2011
(in millions)
Non-amortizable intangible assets
$
20,408
$
22,859
Amortizable intangible assets
2,861
2,853
23,269
25,712
Accumulated amortization
(717
)
(526
)
Intangible assets, net
$
22,552
$
25,186