Mondelez 2013 Annual Report Download - page 65

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Table of Contents
Adjusted Operating Income
Using the definition of “Adjusted Operating Income” above, the only adjustments made to “operating income” from continuing
operations (the most comparable U.S. GAAP financial measure) were to exclude Spin-Off Costs, pension costs related to
obligations transferred in the Spin-Off, 2012-2014 Restructuring Program costs, the Integration Program and other acquisition
integration costs, the benefit from the Cadbury acquisition-related indemnification resolution, net gain on acquisition and
divestitures, acquisition-related costs and operating income from divestitures. We also evaluate Adjusted Operating Income on a
constant currency basis. We believe these measures provide improved comparability of operating results.
58
For the Years Ended
December 31,
2013
2012
$ Change
% Change
(in millions)
Adjusted Operating Income (constant currency)
$
4,413
$
4,214
$
199
4.7%
Impact of unfavorable foreign currency - translation
(146
)
–
(
146
)
(3.4)pp
Impact of unfavorable foreign currency - Venezuela net
monetary assets
(54
)
–
(
54
)
(1.3)pp
Adjusted Operating Income
$
4,213
$
4,214
$
(1
)
0.0%
Spin-Off Costs
(62
)
(444
)
382
9.1pp
Spin-Off pension expense adjustment
(1)
–
(
68
)
68
1.7pp
2012-2014 Restructuring Program
(330
)
(110
)
(220
)
(5.5)pp
Integration Program and other integration costs
(220
)
(140
)
(80
)
(2.0)pp
Benefit from indemnification resolution
336
–
336
9.3pp
Net gain on acquisition and divestitures
30
107
(77
)
(1.8)pp
Acquisition
-
related costs
(2
)
(1
)
(1
)
–
Operating income from divestitures
6
79
(73
)
(1.6)pp
Operating Income
$
3,971
$
3,637
$
334
9.2%
For the Years Ended
December 31,
2012
2011
$ Change
% Change
(in millions)
Adjusted Operating Income (constant currency)
$
4,388
$
4,097
$
291
7.1%
Impact of unfavorable foreign currency
(153
)
–
(
153
)
(3.7)pp
Adjusted Operating Income
$
4,235
$
4,097
$
138
3.4%
Integration Program
(140
)
(521
)
381
11.3pp
Net gain on divestitures
107
–
107
2.6pp
Spin-Off pension expense adjustment
(1)
(68
)
(91
)
23
0.8pp
Spin-Off Costs
(444
)
(46
)
(398
)
(10.9)pp
2012-2014 Restructuring Program
(110
)
–
(
110
)
(3.0)pp
Operating income from divestitures
58
59
(1
)
(0.1)pp
Acquisition
-
related costs
(1
)
–
(
1
)
(0.1)pp
Operating Income
$
3,637
$
3,498
$
139
4.0%
(1) Represents the estimated annual benefit plan expense associated with certain benefit plan obligations transferred to Kraft Foods Group in the Spin-
Off.