Mondelez 2013 Annual Report Download - page 42

Table of Contents
Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelē
z International of
$3,067 million decreased by $487 million (13.7%) in 2012. Diluted EPS attributable to Mondelēz International was $1.71 in 2012,
down 14.9% from $2.01 in 2011. Diluted EPS from continuing operations attributable to Mondelēz International was $0.88 in 2012,
down 11.1% from $0.99 in 2011. Adjusted EPS
(1)
was $1.41 in 2012, up $0.01 (0.7%) from $1.40 in 2011. Adjusted EPS (on a
constant currency basis)
(1)
was $1.47 in 2012, up $0.07 (5.0%) from $1.40 in 2011. These changes, shown net of tax below, were
due to the following:
35
Diluted EPS
Diluted EPS Attributable to Mondel
ē
z International for the Year Ended December 31, 2011
$
2.01
Discontinued operations
1.02
Diluted EPS Attributable to Mondel
ē
z International from Continuing Operations for the Year
Ended December 31, 2011
0.99
Integration Program costs
0.28
Spin-Off interest expense adjustment
(2)
0.11
Spin-Off pension expense adjustment
(3)
0.03
Spin
-
Off Costs
0.02
Net earnings from divested businesses
(0.03
)
Adjusted EPS for the Year Ended December 31, 2011
(1)
1.40
Increases in operations
0.16
Impact of accounting calendar changes
(0.04
)
Gain on sale of property
0.02
Intangible asset impairment charge
(0.02
)
Change in unrealized gains/losses on hedging activities
0.02
Lower interest and other expense, net
(4)
0.09
Changes in income taxes
(0.15
)
Higher shares outstanding
(0.01
)
Adjusted EPS for the Year Ended December 31, 2012 (constant currency)
(1)
1.47
Unfavorable foreign currency
(0.06
)
Adjusted EPS for the Year Ended December 31, 2012
(1)
1.41
Spin-Off Costs
(5)
(0.39
)
Integration Program costs
(0.08
)
2012-2014 Restructuring Program costs
(0.04
)
Spin-Off interest expense adjustment
(2)
(0.06
)
Spin-Off pension expense adjustment
(3)
(0.02
)
Net gain on divestitures
0.03
Net earnings from divested businesses
0.03
Diluted EPS Attributable to Mondel
ē
z International from Continuing Operations for the Year
Ended December 31, 2012
0.88
Discontinued operations
0.83
Diluted EPS Attributable to Mondel
ē
z International for the Year Ended December 31, 2012
$
1.71
(1)
Please see the
Non
-
GAAP Financial Measures
section at the end of this item.
(2) Represents interest expense associated with the assumed reduction of $6 billion of our debt on January 1, 2011 from the utilization of funds
received from the $6 billion of notes Kraft Foods Group issued directly and cash proceeds distributed to us in June 2012 in connection with our
Spin-Off capitalization plan. Note during the year ended December 31, 2012, a portion of the $6 billion of debt was retired. As such, we adjusted
interest expense during this period as if this debt had been repaid on January 1, 2011 to ensure consistency of our assumption and related results.
(3) Represents the estimated annual benefit plan expense associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-
Off. The estimate of $91 million was based on market conditions and benefit plan assumptions as of January 1, 2012. For the year ended
December 31, 2012, a prorated estimate of $68 million was reflected for the nine months prior to the Spin-Off and transfer of the benefit plan
obligations to Kraft Foods Group.
(4) Excludes the favorable foreign currency impact on interest expense related to our foreign denominated debt, the change in interest expense
included in Spin-Off costs and the change in interest expense associated with the assumed reduction of $6 billion of our debt on January 1, 2011
from the utilization of funds received from the $6 billion of notes Kraft Foods Group issued directly and cash proceeds distributed to us in June 2012
in connection with our Spin
-
Off capitalization plan.
(5) Spin-Off costs include $444 million of pre-tax Spin-Off Costs in selling, general and administrative expense and $609 million of pre-tax Spin-Off
Costs in interest expense.