Mondelez 2013 Annual Report Download - page 26

Table of Contents
While we corrected these errors and they were not material to any previously reported financial statements, we have determined
that there was a reasonable possibility that a material misstatement of our annual or interim financial statements may not have
been prevented or detected on a timely basis due to control deficiencies in our internal controls. Thus, management has
determined that the control deficiencies constitute a material weakness. Because we have identified this material weakness, we
have implemented additional procedures to verify the reliability of our accounting for income taxes. Based on the additional
procedures, we believe that the consolidated financial statements included in this report are fairly stated in all material respects in
accordance with generally accepted accounting principles. For additional information on the procedures and controls we are
implementing to address the material weakness, see Item 9A, Controls and Procedures .
Summary of Results and Significant Highlights
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• Net revenues increased 0.8% to $35.3 billion in 2013 and decreased 2.2% to $35.0 billion in 2012.
• Organic Net Revenues increased 3.9% to $35.9 billion in 2013 and increased 4.4% to $36.3 billion in 2012. Organic Net
Revenues is a non-GAAP financial measure we use to evaluate our underlying results (see the definition of Organic Net
Revenues and our reconciliation with net revenues within Non-GAAP Financial Measures
appearing later in this section).
Organic Net Revenues excludes the impact of currency, acquisitions, divestitures and accounting calendar changes.
• Diluted EPS attributable to Mondelēz International increased 28.1% to $2.19 in 2013 and decreased 14.9% to $1.71 in 2012. Excluding the results of discontinued operations, our diluted EPS attributable to Mondelēz International from
continuing operations increased 46.6% to $1.29 in 2013 and decreased 11.1% to $0.88 in 2012.
• Adjusted EPS increased 7.1% to $1.51 in 2013 and increased 0.7% to $1.41 in 2012. On a constant currency basis,
Adjusted EPS increased 13.5% to $1.60 in 2013 and increased 5.0% to $1.47 in 2012. Adjusted EPS is a non-GAAP
financial measure we use to evaluate our underlying results (see the definition of Adjusted EPS and our reconciliation
with diluted EPS within
Non-GAAP Financial Measures appearing later in this section). Adjusted EPS includes diluted
EPS attributable to Mondelē
z International from continuing operations and excludes the following items discussed below:
Spin-Off Costs and related costs, 2012-2014 Restructuring Program costs, Integration Program costs and other
acquisition integration costs, a benefit from the resolution of a Cadbury acquisition-related indemnification, the loss on
debt extinguishment and related expenses, net gain on acquisition and divestitures, acquisition-related costs and net
earnings from divestitures. We also evaluate Adjusted EPS on a constant currency basis.
• On February 6, 2014, we completed a cash tender offer and retired $1.6 billion of our long-term U.S. dollar debt. In
connection with retiring this debt, during the first quarter of 2014, we recorded a $495 million loss on debt extinguishment
and related expenses related to the amount we paid to retire the debt in excess of its carrying value and from recognizing
unamortized discounts and deferred financing costs in earnings at the time of the debt extinguishment.
• On January 16, 2014, we issued $3.0 billion of U.S. dollar notes that generated approximately $3.0 billion of net cash
proceeds, which were used in part to fund the February 2014 tender offer and for other general corporate purposes. In
January 2014, we also recorded approximately $18 million of discounts and deferred financing costs, which will be
amortized into interest expense over the life of the notes.
• On December 18, 2013, we completed a cash tender offer and retired $3.4 billion of our long-term U.S. dollar debt. We
recorded a $612 million loss on debt extinguishment and related expenses related to the amount we paid to retire the
debt in excess of its carrying value and from recognizing unamortized discounts and deferred financing costs in earnings
at the time of the debt extinguishment.
• On December 11, 2013, we issued € 2.4 billion of Euro-denominated notes, or approximately $3.3 billion in U.S. dollars
as of December 31, 2013. We received net proceeds of € 2,381 million, or $3,239 million in U.S. dollars, which were
used to partially fund the December 2013 tender offer. We also recorded approximately $27 million of discounts and
deferred financing costs, which will be amortized into interest expense over the life of the notes.