Mondelez 2014 Annual Report Download - page 35
Download and view the complete annual report
Please find page 35 of the 2014 Mondelez annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25 -
26 -
27 -
28 -
29 -
30 -
31 -
32 -
33 -
34 -
35 -
36 -
37 -
38 -
39 -
40 -
41 -
42 -
43 -
44 -
45 -
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
 |
 |
Table of Contents
Excluding the factors noted above, selling, general and administrative expenses increased $246 million from 2012, driven primarily
by higher overhead costs in emerging markets, including investments in sales capabilities and route-to-market expansion in
emerging markets, the 2012 reversal of reserves carried over from the Cadbury acquisition in 2010 and no longer required, prior-
year proceeds from insurance settlements and higher advertising and consumer promotion costs in Asia Pacific, EEMEA and Latin
America.
The change in unrealized gains / (losses) added $61 million in operating income for 2013. In 2013, the net unrealized gains were
$62 million, as compared to net unrealized gains of $1 million in 2012. In 2013, we recorded pre-tax gains of $68 million related to
sales of properties in India and Europe. In 2012, we recorded pre-tax gains of $77 million related to sales of properties in Russia
and Turkey. The acquisition of a biscuit operation in Morocco added $16 million in operating income for 2013. Accounting calendar
changes that went into effect in Europe in the first quarter of 2013 increased operating income by $6 million.
Unfavorable currency impacts decreased operating income by $146 million, due primarily to the devaluation of the Venezuelan
bolivar and the strength of the U.S. dollar relative to most currencies, including the Brazilian real, Argentinean peso, Indian rupee,
Japanese yen, South African rand and Russian ruble, partially offset by the strength of the euro relative to the U.S. dollar.
Operating income margin increased from 10.4% in 2012 to 11.2% in 2013. The increase in operating income margin was driven
primarily by lower Spin-Off Costs and the benefit from the resolution of the Cadbury acquisition-related indemnification, partially
offset by higher costs for the 2012-2014 Restructuring Program, lower Integration Program costs, a negative impact from
divestitures and the unfavorable impact from the devaluation of our net monetary assets in Venezuela. Adjusted Operating Income
margin decreased from 12.3% in 2012 to 12.1% in 2013. The decrease in Adjusted Operating Income margin was driven primarily
by a modest decline in gross margin, due to the timing of price increases to cover rising currency exchange transaction costs on
imported raw materials in the second half of the year, partially offset by the benefit of leverage on our selling, general and
administrative expenses.
32