Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2016

Our segment net revenues and earnings were:


	For the Three Months Ended
	March 31,
	2016		2015
	(in millions)
Net revenues:
Latin America ⁽¹⁾	$	817	$	1,257
Asia Pacific ⁽²⁾		1,127		1,153
EEMEA ⁽²⁾		547		695
Europe ⁽²⁾		2,289		2,975
North America		1,675		1,682

Net revenues	$	6,455	$	7,762

(1)

For the three months ended March 31, 2015, net revenues of $218 million from our Venezuelan subsidiaries are included in our condensed consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our condensed consolidated financial statements. Refer to Note 1, Basis of Presentation – Currency Translation and Highly Inflationary Accounting: Venezuela, for more information.

(2)

On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segments. The net revenues of our global coffee business for the three months ended March 31, 2015 were $618 million in Europe, $116 million in EEMEA and $18 million in Asia Pacific. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions, for more information.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated


	For the Three Months Ended
	March 31,
	2016			2015
	(in millions)
Earnings from continuing operations before income taxes:
Operating income:
Latin America	$	67		$	154
Asia Pacific		148			146
EEMEA		51			32
Europe		343			326
North America		271			281
Unrealized gains / (losses) on hedging activities		(54	)		(7	)
General corporate expenses		(60	)		(74	)
Amortization of intangibles		(44	)		(46	)
Acquisition-related costs		–			(1	)

Operating income		722			811
Interest and other expense, net		(244	)		(386	)

Earnings from continuing operations before income taxes	$	478		$	425

Net Revenues by Consumer Sector

Net revenues by product category were:


	For the Three Months Ended March 31, 2016
	Latin		Asia						North
	America		Pacific		EEMEA		Europe		America		Total
	(in millions)

Biscuits	$	164	$	336	$	125	$	589	$	1,361	$	2,575
Chocolate		198		393		160		1,203		45		1,999
Gum & Candy		216		186		114		172		269		957
Beverages ⁽¹⁾		164		96		82		47		–		389
Cheese & Grocery		75		116		66		278		–		535

Total net revenues	$	817	$	1,127	$	547	$	2,289	$	1,675	$	6,455


	For the Three Months Ended March 31, 2015
	Latin		Asia						North
	America ⁽²⁾		Pacific		EEMEA		Europe ⁽³⁾		America		Total
	(in millions)

Biscuits	$	309	$	316	$	124	$	594	$	1,358	$	2,701
Chocolate		294		402		199		1,234		56		2,185
Gum & Candy		295		191		118		183		268		1,055
Beverages ⁽¹⁾		214		115		185		674		–		1,188
Cheese & Grocery		145		129		69		290		–		633

Total net revenues	$	1,257	$	1,153	$	695	$	2,975	$	1,682	$	7,762

(1)

On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segment beverage categories. The net revenues of our global coffee business for the three months ended March 31, 2015 were $618 million in Europe, $116 million in EEMEA and $18 million in Asia Pacific. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions, for more information.

(2)

For the three months ended March 31, 2015, our Venezuelan subsidiaries net revenues of $104 million in biscuits, $63 million in cheese & grocery, $35 million in gum & candy and $16 million in beverages are included in our condensed consolidated financial statements. Beginning in 2016, we account for our Venezuelan subsidiaries using the cost method of accounting and no longer include net revenues of our Venezuelan subsidiaries within our condensed consolidated financial statements. Refer to Note 1, Basis of Presentation – Currency Translation and Highly Inflationary Accounting: Venezuela, for more information.

(3)

During 2016, we realigned some of our products across product categories within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation.