Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2015

Our segment net revenues were:


	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
	(in millions)
Net revenues:
Latin America	$	1,233	$	1,315	$	3,730	$	3,913
Asia Pacific		1,101		1,153		3,278		3,460
EEMEA		586		894		2,150		2,740
Europe		2,173		3,215		7,963		10,151
North America		1,756		1,760		5,151		5,150

Net revenues	$	6,849	$	8,337	$	22,272	$	25,414

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

Our segment earnings were:


	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
	(in millions)
Earnings before income taxes:
Operating income:
Latin America	$	134		$	120		$	422		$	304
Asia Pacific		71			65			321			364
EEMEA		52			93			184			303
Europe		298			368			885			1,294
North America		275			272			817			744
Unrealized gains / (losses) on hedging activities		(4	)		39			75			(8	)
General corporate expenses		(95	)		(56	)		(240	)		(191	)
Amortization of intangibles		(45	)		(48	)		(137	)		(157	)
Gains on coffee business transactions and divestiture		7,122			–			7,135			–
Acquisition-related costs		(6	)		–			(8	)		–

Operating income		7,802			853			9,454			2,653
Interest and other (expense) / income		(114	)		227			(814	)		(717	)

Earnings before income taxes	$	7,688		$	1,080		$	8,640		$	1,936

Total Assets by Segment

Total assets by segment were:


	As of September 30,		As of December 31,
	2015		2014
	(in millions)
Total assets ⁽¹⁾:
Latin America	$	5,654	$	6,470
Asia Pacific ⁽²⁾		8,057		8,068
EEMEA ⁽²⁾		4,100		5,153
Europe ⁽²⁾		21,993		24,568
North America		21,332		21,287
Equity method investments		4,895		662
Unallocated assets ⁽³⁾		359		607

Total assets	$	66,390	$	66,815

(1)

Beginning in the third quarter of 2015, earnings from equity method investees are reported outside of segment operating income, as discussed above in this Note and Note 1, Basis of Presentation – Equity Method Investments, and outside of segment assets. We reclassified equity method investments above as of December 31, 2014 on a basis consistent with the 2015 presentation.

(2)

On July 2, 2015, we deconsolidated our global coffee businesses, primarily from our Europe, EEMEA and Asia Pacific segments. See Note 2, Divestitures and Acquisitions – Coffee Business Transactions, for more information.

(3)

Unallocated assets consist primarily of cash and cash equivalents, deferred income taxes, centrally held property, plant and equipment, prepaid pension assets and derivative financial instrument balances.

Net Revenues by Consumer Sector

Net revenues by product category were:


	For the Three Months Ended September 30, 2015
	Latin		Asia						North
	America		Pacific		EEMEA		Europe		America		Total
	(in millions)

Biscuits	$	428	$	356	$	125	$	592	$	1,403	$	2,904
Chocolate		184		370		232		1,086		64		1,936
Gum & Candy		262		171		134		177		289		1,033
Beverages ⁽¹⁾		178		76		45		43		–		342
Cheese & Grocery		181		128		50		275		–		634

Total net revenues	$	1,233	$	1,101	$	586	$	2,173	$	1,756	$	6,849


	For the Three Months Ended September 30, 2014 ⁽²⁾
	Latin		Asia						North
	America		Pacific		EEMEA		Europe		America		Total
	(in millions)

Biscuits	$	338	$	294	$	165	$	712	$	1,382	$	2,891
Chocolate		253		408		287		1,214		76		2,238
Gum & Candy		314		191		152		216		302		1,175
Beverages ⁽¹⁾		232		100		227		723		–		1,282
Cheese & Grocery		178		160		63		350		–		751

Total net revenues	$	1,315	$	1,153	$	894	$	3,215	$	1,760	$	8,337


	For the Nine Months Ended September 30, 2015
	Latin		Asia						North
	America		Pacific		EEMEA		Europe		America		Total
	(in millions)

Biscuits	$	1,144	$	940	$	396	$	1,828	$	4,161	$	8,469
Chocolate		680		1,074		627		3,204		161		5,746
Gum & Candy		852		550		418		558		829		3,207
Beverages ⁽¹⁾		570		324		502		1,493		–		2,889
Cheese & Grocery		484		390		207		880		–		1,961

Total net revenues	$	3,730	$	3,278	$	2,150	$	7,963	$	5,151	$	22,272


	For the Nine Months Ended September 30, 2014 ⁽²⁾
	Latin		Asia						North
	America		Pacific		EEMEA		Europe		America		Total
	(in millions)

Biscuits	$	998	$	898	$	483	$	2,228	$	4,121	$	8,728
Chocolate		833		1,155		751		3,804		189		6,732
Gum & Candy		893		585		499		677		840		3,494
Beverages ⁽¹⁾		684		359		782		2,348		–		4,173
Cheese & Grocery		505		463		225		1,094		–		2,287

Total net revenues	$	3,913	$	3,460	$	2,740	$	10,151	$	5,150	$	25,414

(1)

On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segment beverage categories. The year-over-year decrease in beverages primarily reflects the coffee business transactions and unfavorable currency on our remaining beverage business. The impact of deconsolidating our coffee businesses on July 2, 2015 was $670 million in Europe, $169 million in EEMEA and $16 million in Asia Pacific on a year-over-year third quarter and constant currency basis. The impact of deconsolidating our coffee businesses on July 2, 2015 was $824 million in Europe, $250 million in EEMEA, $10 million in Asia Pacific and $2 million in Latin America on a year-over-year nine month period and constant currency basis. Refer to Note 2, Divestitures and Acquisitions – Coffee Business Transactions, for more information.

(2)

During 2014, we realigned some of our products across product categories and as such, we reclassified the product category net revenues on a basis consistent with the 2015 presentation.