Mondelez 2013 Annual Report Download - page 114

Table of Contents
We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We
excluded 7.0 million antidilutive options for the year ended December 31, 2013, 7.3 million antidilutive options for the year ended
December 31, 2012 and 9.2 million antidilutive options for the year ended December 31, 2011. We also evaluated the ASR
agreement for the potential dilutive effects of any shares remaining to be received upon final ASR settlement. We determined that
the additional shares would be anti-dilutive and therefore were not included in our EPS calculation for the year ended
December 31, 2013.
Note 17. Segment Reporting
We manufacture and market primarily snack food and beverage products, including biscuits (cookies, crackers and salted snacks),
chocolate, gum & candy, coffee & powdered beverages and various cheese & grocery products. We manage our global business
and report operating results through geographic units.
Effective January 1, 2013, we reorganized our operations and management into five reportable operating segments:
We changed and flattened our operating structure to reflect our greater concentration of operations in high-growth emerging
markets and to further enhance collaboration across regions, expedite decision making and drive greater efficiencies to fuel our
growth. We have presented our segment results reflecting the changes for all periods presented.
We manage the operations within Latin America, Asia Pacific and EEMEA by location and Europe and North America by product
category.
We use segment operating income to evaluate segment performance and allocate resources. We believe it is appropriate to
disclose this measure to help investors analyze segment performance and trends. Coincident with the change in reportable
segment structure, segment operating income for our North America region also changed to include all U.S. pension plan
expenses, a portion of which was previously excluded from segment operating results evaluated by management as the costs were
centrally managed. Segment operating income excludes unrealized gains and losses on hedging activities (which are a component
of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses),
amortization of intangibles, the benefit from the Cadbury acquisition-related indemnification resolution (which is a component of
selling, general and administrative expenses), gains and losses on divestitures and acquisitions and acquisition-related costs
(which are a component of selling, general and administrative expenses) in all periods presented. We exclude the unrealized gains
and losses on hedging activities, general corporate expenses, amortization of intangibles, the benefit from the Cadbury acquisition-
related indemnification resolution, gains and losses on divestitures and acquisitions and acquisition-related costs from segment
operating income in order to provide better transparency of our segment operating results. Furthermore, we centrally manage
interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the
segment profitability measure that management reviews. We use the same accounting policies for the segments as those
described in Note 1, Summary of Significant Accounting Policies .
Our segment net revenues and earnings were:
106
•
Latin America
•
Asia Pacific
•
EEMEA
•
Europe
• North America
For the Years Ended December 31,
2013
2012
2011
(in millions)
Net revenues:
Latin America
$
5,382
$
5,396
$
5,403
Asia Pacific
4,952
5,164
4,864
EEMEA
3,915
3,735
3,836
Europe
14,059
13,817
14,874
North America
6,991
6,903
6,833
Net revenues
$
35,299
$
35,015
$
35,810