Mondelez 2013 Annual Report Download - page 30

Table of Contents
On October 1, 2012, we divested the following assets and liabilities which net to $4,358 million, or $4,111 million net of cash
retained by Kraft Foods Group on the Distribution Date (in millions):
Additionally, $4,308 million of accumulated other comprehensive losses primarily related to the pension and other benefit plan net
liabilities transferred to Kraft Foods Group and $89 million of unearned compensation recorded within additional paid in capital were
distributed to Kraft Foods Group. In total, we recorded a distribution of $8,755 million to our shareholders in connection with the
Spin-Off of Kraft Foods Group.
In order to implement the Spin-Off, we entered into certain agreements with Kraft Foods Group to effect our legal and structural
separation, govern the relationship between us, and allocate various assets, liabilities and obligations between us, including,
among other things, employee benefits, intellectual property and tax-related assets and liabilities (see Note 15, Income Taxes , for
additional information on the current and deferred tax assets and liabilities transferred or retained in the Spin-Off). In addition to
executing the Spin-Off in the manner provided in the agreements, in November 2012, pursuant to these agreements, we paid Kraft
Foods Group $163 million related to targeted cash flows (together with the $247 million of cash divested on the Distribution Date,
totaling $410 million of cash transferred to Kraft Foods Group in connection with the Spin-Off). To facilitate the management,
including final payment and resolution, of certain obligations, Kraft Foods Group retained certain of our North American net trade
payables and receivables. We also retained approximately $140 million of workers’ compensation liabilities for claims incurred by
Kraft Foods Group employees prior to the Spin-
Off. In November 2012, we paid Kraft Foods Group $95 million to cash settle the net
trade payables and receivables and which are also reflected in table above. In March 2013, we collected $55 million from Kraft
Foods Group related to the cash settlement of stock awards held by our respective employees at the time of the Spin-Off as further
described in Note 11, Stock Plans , to the consolidated financial statements.
Our results from continuing operations include one-time Spin-Off transaction, transition and financing and related costs (“Spin-Off
Costs”) we have incurred to date. We recorded Spin-Off Costs of $62 million in 2013, $1,053 million in 2012 and $46 million in
2011. We expect to incur approximately $30 million of remaining Spin-Off Costs in 2014 related primarily to customer service and
logistics, information systems and processes, as well as legal costs associated with revising intellectual property and other long-
term agreements.
26
Assets
Cash
$
247
Receivables
1,685
Inventories, net
2,099
Deferred income taxes
338
Other current assets
168
Property, plant and equipment, net
4,211
Goodwill
11,911
Intangible assets, net
2,632
Prepaid pension assets
16
Other assets
856
$
24,163
Liabilities
Current portion of long-term debt
$
6
Accounts payable
1,798
Accrued marketing
463
Accrued employment costs
190
Other current liabilities
751
Long-term debt
9,965
Deferred income taxes
874
Accrued pension costs
2,026
Accrued postretirement health care costs
3,316
Other liabilities
416
$
19,805
Net assets divested in the Spin-Off
$
4,358