Mondelez 2012 Annual Report Download - page 75

Table of Contents
Cost Savings Initiatives
Cost savings initiatives generally include exit, disposal and other project costs outside of our Integration Program and 2012-2014
Restructuring Program and consist of the following specific initiatives:
Note 8. Debt and Borrowing Arrangements
Short-Term Borrowings:
At December 31, 2012 and 2011, our short-term borrowings and related weighted-average interest rates consisted of:
Borrowing Arrangements:
We maintain a revolving credit facility that we have historically used for general corporate purposes, including for working capital
purposes and to support our commercial paper issuances. Our $4.5 billion four-year senior unsecured revolving credit facility
expires in April 2015. As of December 31, 2012, no amounts have been drawn on the facility.
The revolving credit agreement requires us to maintain a minimum shareholders’ equity, excluding accumulated other
comprehensive earnings / (losses), of at least $28.6 billion. At December 31, 2012, our shareholders’ equity, excluding
accumulated other comprehensive earnings / (losses), was $34.8 billion. We expect to continue to meet this covenant. The
revolving credit agreement also contains customary representations, covenants and events of default. However, the revolving credit
facility has no other financial covenants, credit rating triggers or provisions that could require us to post collateral as security.
In addition to the above, some of our international subsidiaries maintain primarily uncommitted credit lines to meet short-term
working capital needs. Collectively, these credit lines amounted to $2.4 billion at December 31, 2012 and $2.3 billion at
December 31, 2011. Borrowings on these lines amounted to $274 million at December 31, 2012 and $182 million at December 31,
2011.
Long-Term Debt:
At December 31, 2012 and 2011, our long-term debt consisted of (interest rates were as of December 31, 2012):
As of December 31, 2012, aggregate maturities of our debt based on stated contractual maturities for the years ended were
(in millions):
72
• In 2012, we recorded a $21 million charge primarily within the segment operating income of Europe related to severance
benefits provided to terminated employees and charges in connection with the reorganization within the Europe and
Developing Markets segment (the “Europe reorganization”).
• In 2011, we recorded a $61 million charge primarily within the segment operating income of Europe related to severance
benefits provided to terminated employees and charges in connection with the Europe reorganization. We also reversed
approximately $15 million of cost savings initiative program costs across the North America and Developing Markets
segments.
• In 2010, we recorded $117 million primarily within the segment operating income of Europe in connection with the
Europe reorganization.
2012
2011
Amount
Weighted
-
Average
Amount
Weighted
-
Average
Outstanding
Year
-
End Rate
Outstanding
Year
-
End Rate
(in millions)
(in millions)
Bank loans
$
274
7.2%
$
182
10.7%
2012
2011
(in millions)
U.S. Dollar notes, 2.63% to 7.00% (average effective rate 5.71%),
due through 2040
$
16,887
$
21,766
Euro notes, 6.25% (effective rate 6.33%),
due through 2015
1,119
3,690
Pound sterling notes, 5.38% to 7.25% (average effective rate 4.94%),
due through 2018
1,109
1,074
Other foreign currency obligations
32
178
Capital leases and other
4
41
Total
19,151
26,749
Less current portion of long-term debt
(3,577
)
(3,654
)
Long
-
term debt
$
15,574
$
23,095
2013
2014 2015 2016 2017 Thereafter Total
$
3,569
$
990
$
1,123
$
1,764
$
1,500
$
10,216
$
19,162