Mondelez 2013 Annual Report Download - page 44

Table of Contents
selling, general and administrative expenses) in all periods presented. We exclude 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.
In connection with our 2012-2014 Restructuring Program, we recorded restructuring charges of $267 million in 2013 and $102
million in 2012 in operations, as a part of asset impairment and exit costs. We also recorded implementation costs of $63 million in
2013 and $8 million in 2012 in operations, as a part of cost of sales and selling, general and administrative expenses. These
charges were recorded primarily within our EEMEA, Europe and North America segments.
We recorded Integration Program charges of $216 million in 2013, $185 million in 2012 and $521 million in 2011. At December 31,
2013, $101 million of our net Integration Program liability was recorded within other current liabilities and $44 million, primarily
related to leased facilities no longer in use, was recorded within other long-term liabilities. During 2012, within our Europe segment,
we refined our estimate of 2010 Integration Program charges by $45 million primarily related to planned and announced position
eliminations that did not occur upon concluding the majority of local workers council negotiations in April 2012. We recorded
charges in the Integration Program in operations, as a part of selling, general and administrative expenses primarily within our
Europe, Asia Pacific, Latin America and EEMEA segments as well as within general corporate expenses.
In 2012, we recorded a $44 million benefit within our Europe segment related to the reversal of reserves carried over from the
Cadbury acquisition in 2010 which was subsequently determined to not be required.
In 2013, we acquired the remaining interest in a biscuit operation in Morocco, which is now a wholly-owned subsidiary within our
EEMEA segment. We incurred acquisition-
related costs of $7 million, which were recorded within selling, general and administrative
expenses and interest and other expense, net. In 2013, we also recorded integration charges of $4 million within the segment
operating income of EEMEA related to our acquisition of a biscuit operation in Morocco. We recorded these charges in selling,
general and administrative expenses within our EEMEA segment. There were no significant acquisitions in 2012 or 2011.
In 2013, we received cash proceeds of $60 million and pre-
tax gains of $8 million for divestitures in Turkey, South Africa and Spain.
In 2012, we completed several divestitures within our Europe segment which generated cash proceeds of $200 million and pre-tax
gains of $107 million. The divestitures primarily included a dinners and sauces grocery business in Germany and Belgium and a
canned meat business in Italy. In 2011, there were no significant divestitures.
In 2013, we sold properties in Italy, the United Kingdom and Norway within our Europe segment and in India within our Asia Pacific
segment. The Europe property sales generated $29 million in pre-tax net gains and $37 million of cash proceeds. We also have a
$52 million receivable related to the United Kingdom property sale. The India property sale generated a $39 million pre-
tax gain and
$53 million of cash proceeds. The gains were recorded within selling, general and administrative expenses and cash proceeds
were recorded in cash flows from other investing activities in the year ended December 31, 2013.
In 2012, we sold property in Russia and Turkey within our EEMEA segment. The Turkey property sale generated a $22 million pre-
tax gain and $29 million of cash proceeds and the Russia property sale generated a $55 million pre-
tax gain and $72 million of cash
proceeds. The gains were recorded within selling, general and administrative expenses and the cash proceeds from the sales were
recorded in cash flows from other investing activities.
On February 8, 2013, the Venezuelan government announced the devaluation of the official Venezuelan bolivar exchange rate from
4.30 bolivars to 6.30 bolivars to the U.S. dollar and the elimination of the second-tier, government-regulated SITME exchange rate
previously applied to value certain types of transactions. In connection with the announced changes, we recorded a $54 million
unfavorable foreign currency charge related to the devaluation of our net monetary assets in Venezuela. The charge was recorded
in selling, general and administrative expenses within our Latin America segment. 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. During 2012 and 2011, we
recorded immaterial foreign currency impacts in connection with highly inflationary accounting for Venezuela.
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