Mondelez 2014 Annual Report Download - page 77

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Table of Contents
We spent $130 million in 2014, $108 million in 2013 and $33 million in 2012 in cash severance and related costs. We also
recognized non-cash pension plan settlement losses (See Note 10, Benefit Plans ), non-cash asset write-downs (including
accelerated depreciation and asset impairments) and other non-
cash adjustments totaling $161million in 2014, $127 million in 2013
and $33 million in 2012. At December 31, 2014, $98 million of our net restructuring liability was recorded within other current
liabilities and $30 million was recorded within other long-term liabilities.
Implementation Costs:
Implementation costs related to our 2012-2014 Restructuring Program primarily relate to activities in connection with the Spin-Off
such as reorganizing our operations and facilities, the discontinuance of certain product lines and incremental expenses related to
the closure of facilities, replicating our information systems infrastructure and reorganizing our sales function. We recorded these
costs within cost of sales and selling, general and administrative expenses primarily within our Europe and North America
segments.
Restructuring and Implementation Costs in Operating Income:
During 2014, 2013 and 2012, we recorded restructuring and implementation costs related to the 2012-2014 Restructuring Program
within operating income as follows:
Note 7. Integration Program and Cost Savings Initiatives
Cadbury Integration Program:
As a result of our combination with Cadbury Limited (formerly, Cadbury Plc or “Cadbury”) in 2010, we launched an integration
program (the “Integration Program”) to combine the Cadbury operations with our operations and realize expected annual cost
savings of approximately $750 million by the end of 2013 and revenue synergies from investments in distribution, marketing and
product development. We achieved cost savings of approximately $800 million in 2012, a year ahead of schedule, and achieved
our planned revenue synergies in 2013. Through the end of 2013, we incurred total integration charges of approximately $1.5 billion
and completed incurring planned charges on the Integration Program.
74
For the Years Ended
December 31,
Latin
Asia
North
America
Pacific
EEMEA
Europe
America
Corporate
(1)
Total
(in millions)
2014
Restructuring Costs $
8
$
34
$
57
$
148
$
113
$ –
$
360
Implementation Costs
3
6
2
52
32
4
99
Total $
11
$
40
$
59
$
200
$
145
$
4
$
459
2013
Restructuring Costs $
21
$
2
$
12
$
95
$
135
$
2
$
267
Implementation Costs –
–
2
36
25
–
63
Total $
21
$
2
$
14
$
131
$
160
$
2
$
330
2012
Restructuring Costs $
7
$ –
$ –
$
6
$
89
$ –
$
102
Implementation Costs –
–
–
–
8
–
8
Total $
7
$ –
$ –
$
6
$
97
$ –
$
110
Total Project 2012
-
2014
Restructuring Costs $
36
$
36
$
69
$
249
$
337
$
2
$
729
Implementation Costs
3
6
4
88
65
4
170
Total $
39
$
42
$
73
$
337
$
402
$
6
$
899
(1)
Includes adjustment for rounding.