Mondelez 2013 Annual Report Download - page 113

Table of Contents
As of January 1, 2013, our unrecognized tax benefits were $1,164 million. If we had recognized all of these benefits, the net impact
on our income tax provision would have been $1,096 million. Our unrecognized tax benefits were $1,189 million at December 31,
2013, and if we had recognized all of these benefits, the net impact on our income tax provision would have been $1,110 million.
Within the next 12 months, our unrecognized tax benefits could increase by approximately $50 million due to unfavorable audit
developments or decrease by approximately $350 million due to audit settlements and the expiration of statutes of limitations in
various jurisdictions. We include accrued interest and penalties related to uncertain tax positions in our tax provision. We had
accrued interest and penalties of $230 million as of January 1, 2013 and $228 million as of December 31, 2013. Our 2013 provision
for income taxes included $6 million for interest and penalties and we paid interest and penalties of $1 million during 2013.
Under the Tax Sharing and Indemnity Agreements between us and Kraft Foods Group, Kraft Foods Group generally assumes
liability for all U.S. state income taxes and Canadian federal and provincial income taxes and we generally assume responsibility for
all U.S. federal income taxes and substantially all foreign income taxes, excluding Canadian income taxes, for all tax periods prior
to the Spin-Off. In addition, we transferred to Kraft Foods Group all of its deferred tax assets and liabilities as of the Distribution
Date. See Note 2, Divestitures and Acquisition.
We are regularly examined by federal and various state and foreign tax authorities. We are currently under various income tax
examinations by the IRS for the years 2007 through 2009. Our income tax filings are also currently under examination by tax
authorities in various U.S. state and foreign jurisdictions. U.S. state and foreign jurisdictions have statutes of limitations generally
ranging from three to five years; however, these statutes are often extended by mutual agreement with the tax authorities. Years
still open to examination by foreign tax authorities in major jurisdictions include (earliest open tax year in parentheses): Germany
(2005), Brazil (2008), France (2010), United Kingdom (2007), Australia (2009), Russia (2011) and India (2003).
Note 16. Earnings Per Share
Basic and diluted EPS from continuing and discontinued operations were calculated using the following:
105
For the Years Ended December 31,
2013
2012
2011
(in millions, except per share data)
Earnings from continuing operations
$
2,332
$
1,606
$
1,764
Earnings from discontinued operations,
net of income taxes
1,603
1,488
1,810
Net earnings
3,935
3,094
3,574
Noncontrolling interest
20
27
20
Net earnings attributable to Mondelēz International
$
3,915
$
3,067
$
3,554
Weighted-average shares for basic EPS
1,774
1,777
1,765
Plus incremental shares from assumed conversions of
stock options and long-term incentive plan shares
15
12
7
Weighted
-
average shares for diluted EPS
1,789
1,789
1,772
Basic earnings per share attributable to
Mondelēz International:
Continuing operations
$
1.30
$
0.90
$
0.99
Discontinued operations
0.91
0.83
1.02
Net earnings attributable to
Mondel
ē
z International
$
2.21
$
1.73
$
2.01
Diluted earnings per share attributable to
Mondelēz International:
Continuing operations
$
1.29
$
0.88
$
0.99
Discontinued operations
0.90
0.83
1.02
Net earnings attributable to
Mondel
ē
z International
$
2.19
$
1.71
$
2.01