Mondelez 2012 Annual Report Download - page 80

Table of Contents
Economic Hedges:
Pre-tax gains / (losses) recorded in net earnings from continuing operations for economic hedges which are not designated as
hedging instruments were:
Hedges of Net Investments in Foreign Operations:
After-tax gains / (losses) from continuing operations related to hedges of net investments in foreign operations in the form of euro
and pound sterling-denominated debt were:
Note 10. Benefit Plans
Prior to the Spin-Off, certain active and retired employees of Kraft Foods Group and certain of our retired employees participated in
our North American benefit plans. Following the Spin-Off, their benefits will be provided directly by Kraft Foods Group. The related
plan obligations and plan assets (to the extent that the benefit plans were previously funded) were transferred to Kraft Foods Group
on October 1, 2012, and we established new plans. The transfer of these benefits to Kraft Foods Group reduced our benefit plan
liabilities by $12,218 million, pension assets by $6,550 million, deferred tax assets of $2,146 million, and accumulated other
comprehensive losses by $3,810 million.
Pension Plans
On October 1, 2012, in connection with the Spin-Off, we reduced our benefit obligation by $8,594 million, fair value of pension
assets by $6,550 million, long-term deferred tax assets by $727 million, and accumulated other comprehensive losses by $2,917
million.
77
2012
2011
2010
Location of
Gain / (Loss)
Recognized
in Earnings
(in millions)
Foreign exchange contracts:
Intercompany loans and forecasted interest
payments
$
24
$
34
$
28
Interest expense
Forecasted transactions
7
4
(11
)
Cost of sales
Forecasted transactions
(17
)
3
(17
)
Interest expense
Cadbury acquisition related – – (
395
)
Interest expense
Interest rate contracts
3
(3
)
4
Interest expense
Commodity contracts
100
135
90
Cost of sales
Total
$
117
$
173
$
(301
)
(1) The 2010 Cadbury acquisition related hedging losses were economically offset by $240 million of foreign exchange net gains on cash denominated in pound
sterling, the Cadbury Bridge Facility and payable balances associated with the acquisition.
2012
2011
2010
Location of
Gain /(Loss)
Recognized in AOCI
(in millions)
Euro notes
$
(41
)
$
77
$
170
Currency Translation
Pound sterling notes
(29
)
3
7
Adjustment
(1)