Mondelez 2014 Annual Report Download - page 103

Table of Contents
As of January 1, 2014, our unrecognized tax benefits were $1,189 million. If we had recognized all of these benefits, the net impact
on our income tax provision would have been $1,110 million. Our unrecognized tax benefits were $852 million at December 31,
2014, and if we had recognized all of these benefits, the net impact on our income tax provision would have been $744 million.
Within the next 12 months, our unrecognized tax benefits could increase by approximately $60 million due to unfavorable audit
developments or decrease by approximately $145 million due to audit settlements and the expiration of statutes of limitations in
various jurisdictions. We include accrued interest and penalties related to uncertain tax positions in our tax provision. We had
accrued interest and penalties of $228 million as of January 1, 2014 and $184 million as of December 31, 2014. Our 2014 provision
for income taxes included $2 million for interest and penalties.
Under the Tax Sharing and Indemnity Agreements between us and Kraft Foods Group, Kraft Foods Group generally assumes
liability for all U.S. state income taxes and Canadian federal and provincial income taxes and we generally assume responsibility for
all U.S. federal income taxes and substantially all non-
U.S. income taxes, excluding Canadian income taxes, for all tax periods prior
to the Spin-Off. In addition, we transferred to Kraft Foods Group all of its deferred tax assets and liabilities as of the Distribution
Date. See Note 2, Divestitures and Acquisitions.
Our income tax filings are regularly examined by federal, state and non-U.S. tax authorities. Our 2010-
2012 U.S. federal income tax
filings are currently under examination by the IRS. U.S. state and non-U.S. jurisdictions have statutes of limitations generally
ranging from three to five years; however, these statutes are often extended by mutual agreement with the tax authorities. Years
still open to examination by non-U.S. tax authorities in major jurisdictions include (earliest open tax year in parentheses): Brazil
(2009), France (2010), Germany (2005), India (2003), Italy (2009), United Kingdom (2012) and Russia (2011).
Note 16. Earnings Per Share
Basic and diluted earnings per share (“EPS”) from continuing and discontinued operations were calculated using the following:
100
For the Years Ended December 31,
2014
2013
2012
(in millions, except per share data)
Earnings from continuing operations
$
2,201
$
2,332
$
1,606
Earnings from discontinued operations,
net of income taxes
–
1,603
1,488
Net earnings
2,201
3,935
3,094
Noncontrolling interest
17
20
27
Net earnings attributable to Mondelēz International
$
2,184
$
3,915
$
3,067
Weighted-average shares for basic EPS
1,691
1,774
1,777
Plus incremental shares from assumed conversions of
stock options and long-term incentive plan shares
18
15
12
Weighted-average shares for diluted EPS
1,709
1,789
1,789
Basic earnings per share attributable to
Mondelēz International:
Continuing operations
$
1.29
$
1.30
$
0.90
Discontinued operations
–
0.91
0.83
Net earnings attributable to
Mondel
ē
z International
$
1.29
$
2.21
$
1.73
Diluted earnings per share attributable to
Mondelēz International:
Continuing operations
$
1.28
$
1.29
$
0.88
Discontinued operations
–
0.90
0.83
Net earnings attributable to
Mondel
ē
z International
$
1.28
$
2.19
$
1.71