Mondelez 2012 Annual Report Download - page 94

Table of Contents
As we previously disclosed, on March 1, 2011, the Starbucks Coffee Company (“Starbucks”) took control of the Starbucks
packaged coffee business (“Starbucks CPG business”) in grocery stores and other channels. Starbucks did so without our
authorization and in what we contend is a violation and breach of our license and supply agreement with Starbucks related to the
Starbucks CPG business. The dispute is in arbitration in Chicago, Illinois. We are seeking appropriate remedies, including payment
of the fair market value of the supply and license agreement, plus the premium this agreement specifies, prejudgment interest
under New York law and attorney’s fees. Starbucks has counterclaimed for damages. Testimony and post-hearing briefing in the
arbitration proceeding are completed. We await the arbitrator’s decision. Kraft Foods Group remains the named party in the
proceeding. Under the Separation and Distribution Agreement between Kraft Foods Group and us, Kraft Foods Group will direct
any recovery awarded in the arbitration proceeding to us. We will reimburse Kraft Foods Group for any costs and expenses it incurs
in connection with the arbitration.
While we cannot predict with certainty the results of these or any other Legal Matters in which we are currently involved, we do not
expect that the ultimate costs to resolve any of these Legal Matters, individually or in the aggregate, will have a material effect on
our financial results.
Third-Party Guarantees:
We enter into third-party guarantees primarily to cover the long-term obligations of our vendors. As part of these transactions, we
guarantee that third parties will make contractual payments or achieve performance measures. At December 31, 2012, we had no
material third-party guarantees recorded on our consolidated balance sheet.
As of December 31, 2012, we and three of our indirect wholly owned subsidiaries are joint and several guarantors of $1.0 billion of
indebtedness issued by an unrelated third party, Cadbury Schweppes US Finance LLC, and maturing on October 1,
2013. Following the Spin-
Off, one of the guarantors of this indebtedness became an indirect wholly owned subsidiary of Kraft Foods
Group. We have agreed to indemnify Kraft Foods Group pursuant to a separation and distribution agreement, in the event its
subsidiary is called upon to satisfy its obligation under the guarantee.
Leases:
Rental expenses recorded in continuing operations were $341 million in 2012, $283 million in 2011 and $330 million in 2010. As of
December 31, 2012, minimum rental commitments under non-cancelable operating leases in effect at year-end were (in millions):
91
2013 2014 2015 2016 2017 Thereafter Total
$
330
$
228
$
178
$
152
$
125
$
131
$
1,144