Mondelez 2014 Annual Report Download - page 29

Table of Contents
Operating Income – Operating income decreased $729 million (18.4%) to $3,242 million in 2014, Adjusted Operating Income
(1)
increased $149 million (3.5%) to $4,416 million and Adjusted Operating Income on a constant currency basis
(1)
increased $436
million (10.2%) to $4,703 million due to the following:
During 2014, higher net pricing outpaced increased input costs. Higher net pricing was reflected across all segments. The increase
in input costs was driven by higher raw material costs, in part due to higher currency exchange transaction costs on imported
materials, partially offset by lower manufacturing costs. Unfavorable volume/mix was driven by Latin America, Asia Pacific and
Europe, partially offset by gains in EEMEA and North America.
26
Operating
Income
Change
(in millions)
(percentage point)
Operating Income for the Year Ended December 31, 2013
$
3,971
Spin-Off Costs
62
1.8pp
2012-2014 Restructuring Program costs
330
8.7pp
Integration Program and other acquisition integration costs
220
5.6pp
Benefit from indemnification resolution
(336
)
(8.7)pp
Remeasurement of net monetary assets in Venezuela
54
1.3pp
Gains on acquisition and divestitures, net
(30
)
(0.7)pp
Operating income from divestitures
(6
)
(0.2)pp
Acquisition-related costs
2
–
Adjusted Operating Income
(1)
for the Year Ended December 31, 2013
$
4,267
Higher net pricing
1,594
37.4pp
Higher input costs
(971
)
(22.8)pp
Unfavorable volume/mix
(354
)
(8.3)pp
Lower selling, general and administrative expenses
313
7.3pp
Change in unrealized gains / (losses) on hedging activities
(174
)
(4.1)pp
Gains on sale of property in 2013
(68
)
(1.5)pp
VAT-related settlements
84
2.0pp
Gain on sale of property in 2014
7
0.1pp
Impact from acquisition
3
0.1pp
Other, net
2
–
Total change in Adjusted Operating Income (constant currency)
(1)
436
10.2%
Unfavorable currency
-
translation
(287
)
(6.7)pp
Total change in Adjusted Operating Income
(1)
149
3.5%
Adjusted Operating Income
(1)
for the Year Ended December 31, 2014
$
4,416
Spin-Off Costs
(35
)
(0.9)pp
2012-2014 Restructuring Program costs
(459
)
(11.5)pp
2014-2018 Restructuring Program costs
(381
)
(9.6)pp
Integration Program and other acquisition integration costs
4
0.1pp
Remeasurement of net monetary assets in Venezuela
(167
)
(4.2)pp
Intangible asset impairment charges
(57
)
(1.6)pp
Costs associated with the JDE coffee transactions
(77
)
(2.0)pp
Acquisition
-
related costs
(2
)
–
Operating Income for the Year Ended December 31, 2014
$
3,242
(18.4)%
(1)
Please see the
Non
-
GAAP Financial Measures
section at the end of this item.