Mondelez 2014 Annual Report Download - page 85

Table of Contents
Economic Hedges:
Pre-tax gains / (losses) recorded in net earnings for economic hedges were:
In connection with the planned coffee business transactions, we entered into euro to U.S. dollar currency exchange forward
contracts to hedge an expected cash receipt of € 4 billion upon closing. As the forward contracts relate to a pending business
divestiture, unrealized gains and losses on the derivative are recorded in earnings. We recorded a $628 million unrealized gain for
the year ended December 31, 2014 within interest and other expense, net in connection with the forward contracts as the U.S.
dollar strengthened relative to the euro. See Note 2, Divestitures and Acquisitions—Planned Coffee Business Transactions , for
additional information on the monetization of the currency exchange forward contracts in the first quarter of 2015.
Hedges of Net Investments in International Operations:
After-tax gains / (losses) related to hedges of net investments in international operations in the form of euro and pound sterling-
denominated debt were:
82
For the Years Ended December 31,
Location of
Gain / (Loss)
Recognized
in Earnings
2014
2013
2012
(in millions)
Currency exchange contracts:
Intercompany loans and forecasted interest
payments
$
4
$
18
$
24
Interest and other
expense, net
Forecasted transactions
29
65
7
Cost of sales
Forecasted transactions
610
9
(17
)
Interest and other
expense, net
Forecasted transactions
(4
)
4
–
Selling, general
and administrative
expenses
Interest rate contracts
–
–
3
Interest and other
expense, net
Commodity contracts
(136
)
(40
)
(49
)
Cost of sales
Total
$
503
$
56
$
(32
)
Location of
For the Years Ended December 31,
Gain / (Loss)
2014
2013
2012
Recognized in AOCI
(in millions)
Euro notes
$
328
$
(50
)
$
(41
)
Currency Translation
Pound sterling notes
39
(13
)
(29
)
Adjustment