Mondelez 2014 Annual Report Download - page 78

Table of Contents
We recorded reversals to the Integration Program charges of $8 million in 2014 related to accruals no longer required. We recorded
Integration Program charges of $216 million in 2013 and $185 million in 2012 in cost of sales and selling, general and
administrative expenses within our Europe, Asia Pacific, Latin America and EEMEA segments. Changes in the remaining
Integration Program liability during 2014 and 2013 were:
At December 31, 2014, $25 million of our net Integration Program liability was recorded within other current liabilities and $33
million, primarily related to leased facilities no longer in use, was recorded within other long-term liabilities.
Other Integration Costs:
In connection with our acquisition of a biscuit operation in Morocco in February 2013, we recorded integration charges of $4 million
in 2014 and $4 million in 2013. We recorded these charges in cost of sales and selling, general and administrative expenses within
our EEMEA segment. See Note 2, Divestitures and Acquisitions, for more information on the acquisition.
Cost Savings Initiatives:
Cost savings initiatives generally include exit, disposal and other project costs outside of our restructuring programs, Cadbury
Integration Program and our other integration program costs and consist of the following specific initiatives:
Note 8. Debt and Borrowing Arrangements
Short-Term Borrowings:
Our short-term borrowings and related weighted-average interest rates consisted of:
As of December 31, 2014, the commercial paper issued and outstanding had between 2 and 86 days remaining to maturity. Bank
loans include borrowings on primarily uncommitted credit lines maintained by some of our international subsidiaries to meet short-
term working capital needs.
Borrowing Arrangements:
We maintain a revolving credit facility for general corporate purposes, including for working capital purposes and to support our
commercial paper program. Our $4.5 billion five-year senior unsecured revolving credit facility expires on October 11, 2018. The
revolving credit agreement includes a covenant that we maintain a minimum shareholders’ equity of at least $24.6 billion, excluding
accumulated other comprehensive earnings / (losses) and the cumulative effects of any changes in accounting principles. At
December 31, 2014, we met the covenant as our shareholders’ equity as defined by
75
2014
2013
(in millions)
Balance at January 1
$
145
$
202
Charges
(8
)
216
Cash spent
(69
)
(255
)
Currency / other
(10
)
(18
)
Balance at December 31
$
58
$
145
• In 2013, we recorded a $20 million charge primarily within the segment operating income of Latin America related to severance benefits provided to terminated employees and one-
time charges and within the segment operating income of
North America related to supply chain reinvention team expenses.
• In 2012, we recorded a $21 million charge primarily within the segment operating income of Europe related to severance benefits provided to terminated employees and charges in connection with the reorganization in the Europe and EEMEA
segments.
As of December 31,
2014
2013
Amount
Weighted
-
Amount
Weighted
-
Outstanding
Average Rate
Outstanding
Average Rate
(in millions)
(in millions)
Commercial paper
$
1,101
0.4%
$
1,410
0.4%
Bank loans
204
8.8%
184
7.7%
Total short
-
term borrowings
$
1,305
$
1,594