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Integration Program
9 Months Ended
Sep. 30, 2014
Integration Program

Note 7.  Integration Program

As a result of our combination with Cadbury Limited (formerly, Cadbury Plc or “Cadbury”) in 2010, we launched an integration program (the “Integration Program”) to combine the Cadbury operations with our operations and realize expected annual cost savings of approximately $750 million by the end of 2013 and revenue synergies from investments in distribution, marketing and product development. We achieved cost savings of approximately $800 million in 2012, a year ahead of schedule, and achieved our planned revenue synergies in 2013. Through the end of 2013, we incurred total integration charges of approximately $1.5 billion and completed incurring planned charges on the Integration Program.

 

We recorded reversals to the Integration Program charges of $1 million in the three months and $6 million in the nine months ended September 30, 2014 related to accruals no longer required. We recorded Integration Program charges of $36 million during the three months and $109 million during the nine months ended September 30, 2013 in selling, general and administrative expenses within our Europe, Asia Pacific, Latin America and EEMEA segments. Changes in the remaining Integration Program liability during the nine months ended September 30, 2014 were:

 

                  
     2014  
     (in millions)  

Balance at January 1

   $ 145   

Charges

     (6

Cash spent

     (51

Currency / other

     (17
  

 

 

 

Balance at September 30

   $ 71   
  

 

 

 

At September 30, 2014, $35 million of our net Integration Program liability was recorded within other current liabilities and $36 million, primarily related to leased facilities no longer in use, was recorded within other long-term liabilities.