Mondelez 2014 Annual Report Download - page 9

Table of Contents
Research and Development
We pursue four objectives in research and development: product safety and quality, growth through new products, superior
consumer satisfaction and reduced costs. At December 31, 2014, we had approximately 2,650 food scientists, chemists and
engineers working primarily in 11 key technology centers: East Hanover, New Jersey; Whippany, New Jersey; Banbury, United
Kingdom; Bournville, United Kingdom; Curitiba, Brazil; Paris, France; Melbourne, Australia; Mexico City, Mexico; Munich, Germany;
Reading, United Kingdom and Suzhou, China. Our research and development expense was $455 million in 2014, $471 million in
2013 and $462 million in 2012.
Regulation
Our food products and packaging materials are subject to local, national and multi-national regulations related to labeling,
packaging, food ingredients, pricing, marketing and advertising, privacy and related areas. In addition, various jurisdictions regulate
our operations by licensing our manufacturing plants, enforcing standards for selected food products, grading food products,
inspecting manufacturing plants and warehouses and regulating trade practices related to the sale of and imposing their own
labeling requirements on our food products. Many of the food commodities we use in our operations are subject to government
agricultural policy and intervention. These policies have substantial effects on prices and supplies and are subject to periodic
governmental and administrative review.
Throughout the countries in which we do business, government authorities are continually adopting new laws and implementing
new regulations that affect our business and operations. Examples include selective food taxes in Mexico; profit, price and other
controls imposed within Venezuela and Argentina; Russian sanctions on the sourcing of raw materials from the European Union
and potential labeling disclosure requirements for genetically modified ingredients in the United States. We will continue to monitor
developments of the new laws and regulations. At this time, we do not expect the cost of complying with these new laws and
regulations will be material. Also refer to Note 1, Summary of Significant Accounting Policies—Currency Translation and Highly
Inflationary Accounting , for additional information on government regulations and currency effects on our operations in Venezuela,
Argentina and Russia.
Environmental Regulation
Throughout the countries in which we do business, we are subject to local, national and multi-national environmental laws and
regulations relating to the protection of the environment. We have programs across our business units designed to meet applicable
environmental compliance requirements. In the United States, the laws and regulations include the Clean Air Act, the Clean Water
Act, the Resource Conservation and Recovery Act and the Comprehensive Environmental Response, Compensation, and Liability
Act (“CERCLA”).
CERCLA imposes joint and severable liability on each potentially responsible party. As of December 31, 2014, our
subsidiaries were involved in one active proceeding in the United States under a state equivalent of CERCLA related to our current
operations. As of December 31, 2014, we accrued an immaterial amount for environmental remediation. Based on information
currently available, we believe that the ultimate resolution of the existing environmental remediation and our compliance with
environmental laws and regulations will not have a material effect on our financial results.
Employees
We employed approximately 104,000 people worldwide at December 31, 2014 and approximately 107,000 at December 31, 2013.
Employees represented by labor unions or workers’ councils represent approximately 64% of our 91,000 employees outside the
United States and approximately 28% of our 13,000 U.S. employees. Our business units are subject to various local, national and
multi-national laws and regulations relating to their relationships with their employees. In accordance with European Union
requirements, we also have established a European Workers Council composed of management and elected members of our
workforce. We believe we generally have good relationships with our employees and their representative organizations.
Foreign Operations
We generated 82.1% of our 2014 net revenues, 83.1% of our 2013 net revenues and 82.9% of our 2012 net revenues from
continuing operations outside the United States. We sell our products to consumers in approximately 165 countries. At
December 31, 2014, we had operations in more than 80 countries and made our products at 170 manufacturing and processing
facilities in 58 countries. Refer to Note 17, Segment Reporting, for additional information on our U.S. and non-U.S. operations.
Refer to Item 2, Properties , for more information on our manufacturing and other facilities. Also, for a discussion of risks related to
our operations outside the United States, see “Risk Factors” in Item 1A.
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