Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2015

Our segment net revenues:


	For the Years Ended December 31,
	2015		2014		2013
	(in millions)

Net revenues:
Latin America ⁽¹⁾	$	4,988	$	5,153	$	5,382
Asia Pacific ⁽¹⁾		4,360		4,605		4,952
EEMEA ⁽¹⁾		2,786		3,638		3,915
Europe ⁽¹⁾		10,528		13,912		14,059
North America		6,974		6,936		6,991

Net revenues	$	29,636	$	34,244	$	35,299

(1)

On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segments. The impact of deconsolidating our coffee businesses on July 2, 2015 was $1,699 million in Europe, $413 million in EEMEA, $32 million in Asia Pacific and $5 million in Latin America on a year-over-year basis. Refer to Note 2, Divestitures and Acquisitions – Coffee Business Transactions, for more information.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

Our segment earnings:


	For the Years Ended December 31,
	2015			2014			2013
				(in millions)

Earnings from continuing operations before income taxes:
Operating income:
Latin America	$	485		$	475		$	570
Asia Pacific		268			385			512
EEMEA		194			327			379
Europe		1,277			1,770			1,699
North America		1,105			922			889
Unrealized gains / (losses) on hedging activities		96			(112	)		62
General corporate expenses		(383	)		(317	)		(287	)
Amortization of intangibles		(181	)		(206	)		(217	)
Benefit from indemnification resolution		–			–			336
Gains on coffee business transactions and divestitures		6,822			–			30
Loss on deconsolidation of Venezuela		(778	)		–			–
Acquisition-related costs		(8	)		(2	)		(2	)

Operating income		8,897			3,242			3,971
Interest and other expense, net		(1,013	)		(688	)		(1,579	)

Earnings from continuing operations before income taxes	$	7,884		$	2,554		$	2,392

Total Assets, Depreciation Expense and Capital Expenditure by Segment

Total assets, depreciation expense and capital expenditures by segment were:


	As of December 31,
	2015		2014		2013
			(in millions)

Total assets ⁽¹⁾:
Latin America ⁽²⁾	$	4,673	$	6,470	$	6,860
Asia Pacific ⁽³⁾		7,936		8,068		8,487
EEMEA ⁽³⁾		3,867		5,153		6,951
Europe ⁽³⁾		19,683		24,568		27,599
North America		21,175		21,287		21,705
Equity method investments		5,387		662		659
Unallocated assets ⁽⁴⁾		122		563		203

Total assets	$	62,843	$	66,771	$	72,464

(1)

Beginning in the third quarter of 2015, earnings from equity method investees were reported outside of segment operating income, as discussed above in this Note and Note 1, Summary of Significant Accounting Policies – Principles of Consolidation, and outside of segment assets. We reclassified equity method investments above as of December 31, 2014 and 2013 on a basis consistent with the 2015 presentation.

(2)

The change in total assets as of December 31, 2015 reflects a decrease of $1.1 billion related to the loss on deconsolidation of Venezuela. See Note 1, Summary of Significant Accounting Policies – Currency Translation and Highly Inflationary Accounting: Venezuela, for more information.

(3)

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.

(4)

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. We had debt issuance costs related to recognized debt liabilities of $46 million as of December 31, 2015, $44 million as of December 31, 2014 and $51 million as of December 31, 2013, which have been reclassified from long-term other assets to a deduction from the related debt obligations on the consolidated balance sheets.


	For the Years Ended December 31,
	2015		2014		2013
	(in millions)

Depreciation expense:
Latin America	$	94	$	118	$	107
Asia Pacific		114		112		107
EEMEA		66		90		88
Europe		274		359		359
North America		165		174		199

Total depreciation expense	$	713	$	853	$	860


	For the Years Ended December 31,
	2015		2014		2013
	(in millions)

Capital Expenditures:
Latin America	$	354	$	460	$	412
Asia Pacific		311		356		268
EEMEA		197		219		254
Europe		390		429		478
North America		262		178		210

Total capital expenditures	$	1,514	$	1,642	$	1,622

Net Revenues by Geographic Segment


	For the Years Ended December 31,
	2015		2014		2013
			(in millions)

Net revenues:
United States	$	6,302	$	6,143	$	5,965
Other		23,334		28,101		29,334

Total net revenues	$	29,636	$	34,244	$	35,299

Long-Lived Assets Excluding Deferred Tax, Goodwill and Intangible Assets by Geographic Segment


	As of December 31,
	2015		2014		2013
			(in millions)

Long-lived assets ⁽¹⁾:
United States	$	1,551	$	1,564	$	1,607
Other		7,238		8,801		9,201

Total long-lived assets	$	8,789	$	10,365	$	10,808

(1)

Long-lived assets no longer includes debt issuance costs related to recognized debt liabilities of $46 million as of December 31, 2015, $44 million as of December 31, 2014 and $51 million as of December 31, 2013, which have been reclassified from long-term other assets to a deduction from the related debt obligations on the consolidated balance sheets.

Net Revenues by Consumer Sector

Net revenues by product category were:


	For the Year Ended December 31, 2015
	Latin		Asia						North
	America		Pacific		EEMEA		Europe		America		Total
	(in millions)

Biscuits	$	1,605	$	1,264	$	535	$	2,420	$	5,569	$	11,393
Chocolate		840		1,444		896		4,638		256		8,074
Gum & Candy		1,091		717		544		757		1,149		4,258
Beverages ⁽¹⁾		767		401		543		1,549		–		3,260
Cheese & Grocery		685		534		268		1,164		–		2,651

Total net revenues	$	4,988	$	4,360	$	2,786	$	10,528	$	6,974	$	29,636


	For the Year Ended December 31, 2014 ⁽²⁾
	Latin		Asia						North
	America		Pacific		EEMEA		Europe		America		Total
	(in millions)

Biscuits	$	1,322	$	1,177	$	642	$	2,882	$	5,486	$	11,509
Chocolate		1,054		1,555		1,082		5,394		296		9,381
Gum & Candy		1,176		776		646		908		1,154		4,660
Beverages ⁽¹⁾		940		465		981		3,292		–		5,678
Cheese & Grocery		661		632		287		1,436		–		3,016

Total net revenues	$	5,153	$	4,605	$	3,638	$	13,912	$	6,936	$	34,244


	For the Year Ended December 31, 2013 ⁽²⁾
	Latin		Asia						North
	America		Pacific		EEMEA		Europe		America		Total
	(in millions)

Biscuits	$	1,288	$	1,311	$	677	$	2,940	$	5,480	$	11,696
Chocolate		1,143		1,632		1,181		5,385		326		9,667
Gum & Candy		1,380		849		673		968		1,185		5,055
Beverages ⁽¹⁾		907		470		1,113		3,340		–		5,830
Cheese & Grocery		664		690		271		1,426		–		3,051

Total net revenues	$	5,382	$	4,952	$	3,915	$	14,059	$	6,991	$	35,299

(1)

On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segment beverage categories. The decrease in beverages net revenues in 2015 compared to 2014 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 $1,699 million in Europe, $413 million in EEMEA, $32 million in Asia Pacific and $5 million in Latin America on a year-over-year 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.