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Segment Reporting
 3 Months Ended
Mar. 31, 2014
Segment Reporting

Note 16.  Segment Reporting

Our operations, management structure and segments are organized into five reportable operating segments:

  •  

Latin America
  •  

Asia Pacific
  •  

EEMEA
  •  

Europe
  •  

North America

We manage the operations within Latin America, Asia Pacific and EEMEA by location and Europe and North America by product category.

We use segment operating income to evaluate segment performance and allocate resources. We believe it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating income excludes unrealized gains and losses on hedging activities (which are a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, gains and losses on divestitures and acquisitions and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. We exclude these items from segment operating income in order to provide better transparency of our segment operating results. Furthermore, we centrally manage interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the segment profitability measure that management reviews.

 

Our segment net revenues and earnings were:

 

                                     
     For the Three Months Ended
March 31,		  
     2014     2013  
     (in millions)  

Net revenues:

     

Latin America

    $ 1,356      $ 1,398   

Asia Pacific

      1,223        1,367   

EEMEA

      838        863   

Europe

      3,557        3,458   

North America

      1,667        1,658   
  

 

 

    

 

 

  

Net revenues

    $ 8,641      $ 8,744   
  

 

 

    

 

 

  

Earnings before income taxes:

     

Operating income:

     

Latin America

    $ 44      $ 92   

Asia Pacific

      188        189   

EEMEA

      64        61   

Europe

      463        406   

North America

      203        170   

Unrealized gains / (losses) on hedging activities

      7        19   

General corporate expenses

      (72 )      (69 ) 

Amortization of intangibles

      (54 )      (54 ) 

Gain on acquisition

      –        22   

Acquisition-related costs

      –        (2 ) 
  

 

 

    

 

 

  

Operating income

      843        834   

Interest and other expense, net

      720        279   
  

 

 

    

 

 

  

Earnings before income taxes

    $ 123      $ 555   
  

 

 

    

 

 

  

Items impacting our segment operating results are discussed in Note 1, Basis of Presentation, including the Venezuelan currency remeasurements, Note 2, Divestitures and Acquisition, Note 6, 2012-2014 Restructuring Program, and Note 7, Integration Program.

 

Net revenues by consumer sector were:

 

                                                                                                                 
     For the Three Months Ended March 31, 2014  
     Latin      Asia                    North         
   America      Pacific      EEMEA      Europe      America      Total  
     (in millions)  

Biscuits

    $ 327       $ 331       $ 147       $ 736       $ 1,327       $ 2,868   

Chocolate

      324         418         243         1,477         63         2,525   

Gum & Candy

      286         206         147         223         263         1,125   

Beverages

      255         122         228         777         –         1,382   

Cheese & Grocery

      164         146         73         344         14         741   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total net revenues

    $ 1,356       $ 1,223       $ 838       $ 3,557       $ 1,667       $ 8,641   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
     For the Three Months Ended March 31, 2013  
     Latin      Asia                    North         
   America      Pacific      EEMEA      Europe      America      Total  
     (in millions)  

Biscuits

    $ 290       $ 388       $ 151       $ 701       $ 1,293       $ 2,823   

Chocolate

      378         449         272         1,394         73         2,566   

Gum & Candy

      333         222         155         229         278         1,217   

Beverages

      243         127         236         805         –         1,411   

Cheese & Grocery

      154         181         49         329         14         727   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total net revenues

    $ 1,398       $ 1,367       $ 863       $ 3,458       $ 1,658       $ 8,744