Mondelez 2014 Annual Report Download - page 52

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Table of Contents
Adjusted Operating Income
Applying the definition of “Adjusted Operating Income”, the adjustments made to “operating income” (the most comparable U.S.
GAAP financial measure) were to exclude Spin-Off Costs, 2012 pension costs related to the obligations transferred in the Spin-Off,
2012-2014 Restructuring Program costs, 2014-2018 Restructuring Program costs, the Integration Program and other acquisition
integration costs, the benefit from the Cadbury acquisition-related indemnification resolution, the remeasurement of net monetary
assets in Venezuela, impairment charges related to intangible assets, incremental costs associated with the JDE coffee
transactions, net gains on an 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.
49
For the Years Ended
December 31,
2014
2013
$ Change
% Change
(in millions)
Adjusted Operating Income (constant currency)
$
4,703
$
4,267
$
436
10.2%
Impact of unfavorable currency
(287
)
–
(
287
)
(6.7)pp
Adjusted Operating Income
$
4,416
$
4,267
$
149
3.5%
Spin-Off Costs
(35
)
(62
)
27
0.9pp
2012-2014 Restructuring Program
(459
)
(330
)
(129
)
(2.8)pp
2014-2018 Restructuring Program
(381
)
–
(
381
)
(9.6)pp
Integration Program and other acquisition integration
costs
4
(220
)
224
5.7pp
Benefit from indemnification resolution
–
336
(336
)
(8.7)pp
Remeasurement of net monetary assets in Venezuela
(167
)
(54
)
(113
)
(2.9)pp
Intangible asset impairment charges
(57
)
–
(
57
)
(1.6)pp
Costs associated with the JDE coffee transactions
(77
)
–
(
77
)
(2.0)pp
Gains on acquisition and divestitures, net
–
30
(30
)
(0.7)pp
Acquisition
-
related costs
(2
)
(2
)
–
–
Operating income from divestitures –
6
(6
)
(0.2)pp
Operating Income
$
3,242
$
3,971
$
(729
)
(18.4)%
For the Years Ended
December 31,
2013
2012
$ Change
% Change
(in millions)
Adjusted Operating Income (constant currency)
$
4,413
$
4,266
$
147
3.4%
Impact of unfavorable currency
(146
)
–
(
146
)
(3.4)pp
Adjusted Operating Income
$
4,267
$
4,266
$
1
0.0%
Spin-Off Costs
(62
)
(444
)
382
9.0pp
Spin
-
Off pension expense adjustment
–
(
68
)
68
1.7pp
2012
-
2014 Restructuring Program
(330
)
(110
)
(220
)
(5.4)pp
Integration Program and other acquisition integration
costs
(220
)
(140
)
(80
)
(2.0)pp
Benefit from indemnification resolution
336
–
336
9.3pp
Remeasurement of net monetary assets in Venezuela
(54
)
–
(
54
)
(1.5)pp
Intangible asset impairment charge
–
(
52
)
52
1.5pp
Gains on acquisition and divestitures, net
30
107
(77
)
(1.7)pp
Acquisition-related costs
(2
)
(1
)
(1
)
(0.1)pp
Operating income from divestitures
6
79
(73
)
(1.6)pp
Operating Income
$
3,971
$
3,637
$
334
9.2%