Divestitures and Acquisition (Tables)

12 Months Ended

Dec. 31, 2013

Interest Expense Relating to Debt including Results from Discontinued Operations

Interest expense relating to debt Kraft Foods Group incurred or assumed through October 1, 2012 has been included in the results from discontinued operations for all periods presented and as follows:


	Nine Months Ended		Year Ended
	October 1, 2012		December 31, 2011
	(in millions)

$6.0 billion note issuance in June 2012	$	70	$	–
$3.6 billion notes exchanged in July 2012		171		226
$0.4 billion debt transferred in October 2012		24		31
Capital leases and other		13		10

	$	278	$	267

Summary of Spin-Off Costs within Pre-Tax Earnings

We incurred the following Spin-Off Costs within our pre-tax earnings:


	For the Years Ended December 31,
	2013		2012		2011
	(in millions)

Selling, general and administrative expenses	$	62	$	444	$	46
Interest and other expense, net		–		609		–

Spin-Off Costs	$	62	$	1,053	$	46

Kraft Foods Group

Summary Results of Operations

A summary of results related to the discontinued operation of Kraft Foods Group within our historical results is presented below:


	Fourth Quarter Ended		Nine Months Ended		Year Ended
	December 31, 2013		October 1, 2012		December 31, 2011
	(in millions)

Net revenues		–	$	13,768	$	18,555

Earnings before income taxes	$	2,522	$	2,266	$	2,892
Provision for income taxes		919		778		1,082

Earnings from discontinued operations, net of income taxes	$	1,603	$	1,488	$	1,810

Assets and Liablities Distributed

On October 1, 2012, we divested the following assets and liabilities which net to $4,358 million, or $4,111 million net of cash retained by Kraft Foods Group on the Distribution Date (in millions):


Assets
Cash	$	247
Receivables		1,685
Inventories, net		2,099
Deferred income taxes		338
Other current assets		168
Property, plant and equipment, net		4,211
Goodwill		11,911
Intangible assets, net		2,632
Prepaid pension assets		16
Other assets		856

	$	24,163

Liabilities
Current portion of long-term debt	$	6
Accounts payable		1,798
Accrued marketing		463
Accrued employment costs		190
Other current liabilities		751
Long-term debt		9,965
Deferred income taxes		874
Accrued pension costs		2,026
Accrued postretirement health care costs		3,316
Other liabilities		416

	$	19,805

Net assets divested in the Spin-Off	$	4,358

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

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