Mondelez 2013 Annual Report Download - page 27

Table of Contents
Financial Outlook
We develop long-term plans and targets to achieve sustainable, profitable growth over time. Our long-
term financial targets include:
Refer to Non-GAAP Financial Measures appearing later in this section for more information on these measures.
In 2014, we expect Organic Net Revenues to grow approximately 4 percent, which is at or above the growth of our categories. We
expect low double-digit growth in Adjusted Operating Income at constant currency, fueled by our focused efforts to reduce
overheads, restructure our global supply chain and improve product mix, while continuing to invest in emerging markets. We
anticipate this increase will result in an Adjusted Operating Income margin in the high 12 percent range and will be the primary lever
in delivering Adjusted EPS of $1.73 to $1.78, up double digits on a constant currency basis. Our 2014 Adjusted EPS outlook
reflects constant currency at average 2013 currency rates. Any fluctuation from the 2013 average currency rates is outside of our
2014 outlook.
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• During 2013, our Board of Directors authorized the repurchase of $7.7 billion of our Common Stock under a share
repurchase program. During 2013, we repurchased $2.7 billion, or 82.8 million shares of Common Stock at an average
cost of $33.09 per share. The repurchases include $1.5 billion of shares acquired through an accelerated share
repurchase program we initiated in December 2013. All share repurchases were funded through available cash, including
cash from the resolution of the Starbucks arbitration described below, and commercial paper issuances. As of
December 31, 2013, we have $5.0 billion in remaining share repurchase capacity.
• In December 2013, a dispute over a license and supply agreement between Starbucks Coffee Company (“Starbucks”)
and Kraft Foods Group was resolved when an independent arbitrator issued a decision and Final Award that resulted in
Starbucks paying $2.8 billion for its unilateral termination of the agreement. The dispute arose within the Kraft Foods
Group discontinued operation and was directed to Mondelēz International as part of the Spin-Off recapitalization plans.
The net $1.6 billion after-tax gain on the resolution of the arbitration was recorded in earnings from discontinued
operations in the fourth quarter of 2013. See Item 3, Legal Proceedings , and Notes 2, Divestitures and Acquisition , and
12,
Commitments and Contingencies
, for additional information.
•
On October 1, 2013, $1 billion of our 5.125% U.S. dollar notes and $800 million of our 5.250% U.S. dollar notes matured.
The notes and accrued interest to date were paid with cash on hand and the issuance of commercial paper.
• In August 2013, we resolved an outstanding Cadbury-acquisition related indemnification and recorded a favorable pre- tax earnings impact of $385 million ($363 million net of tax). See Items affecting Comparability of Financial Results and
Note 12,
Commitments and Contingencies
, for more information.
• On May 8, 2013, $1 billion of our 2.625% U.S. dollar notes matured. The notes and accrued interest to date were paid
with cash on hand and the issuance of commercial paper.
• On February 11, 2013, $750 million of our 6.00% U.S. dollar notes matured and were paid with cash on hand.
• In February 2013, we recorded a $54 million unfavorable foreign currency charge related to the devaluation of our net
monetary assets in Venezuela. We also incurred net unfavorable devaluation-related foreign currency impacts within our
pre-tax earnings of $67 million during the year ended December 31, 2013 related to translating the earnings of our
Venezuelan subsidiary to the U.S. dollar at the new exchange rate. As of December 31, 2013, our net monetary assets
denominated in the Venezuelan bolivar were $257 million. Should the bolivar be devalued further, it would result in a
charge to our net earnings in the period of devaluation. See our Results of Operations by Reportable Segment later in
this section and Note 1, Summary of Significant Accounting Policies - Foreign Currency, including Highly Inflationary
Accounting,
for more information.
• Organic Net Revenue growth at or above expected category growth
• Adjusted Operating Income growth of high single-digits on a constant currency basis
• Double-digit Adjusted EPS growth on a constant currency basis