Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2016

Our segment net revenues and earnings were:


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
	(in millions)
Net revenues:
Latin America ⁽¹⁾	$	843	$	1,240	$	1,660	$	2,497
Asia Pacific ⁽²⁾		1,023		1,024		2,150		2,177
EEMEA ⁽²⁾		648		869		1,195		1,564
Europe ⁽²⁾		2,068		2,815		4,357		5,790
North America		1,720		1,713		3,395		3,395

Net revenues	$	6,302	$	7,661	$	12,757	$	15,423

(1)

Net revenues of $301 million for the three months and $519 million for the six months ended June 30, 2015 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. Net revenues of our global coffee business were $730 million in Europe, $130 million in EEMEA and $15 million in Asia Pacific for the three months and $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the six months ended June 30, 2015. 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						For the Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
	(in millions)
Earnings before income taxes:
Operating income:
Latin America	$	32		$	134		$	99		$	288
Asia Pacific		95			104			243			250
EEMEA		59			100			110			132
Europe		251			261			594			587
North America		295			261			566			542
Unrealized gains / (losses) on hedging activities		17			86			(37	)		79
General corporate expenses		(67	)		(71	)		(127	)		(145	)
Amortization of intangibles		(44	)		(46	)		(88	)		(92	)
Gain on divestiture		–			13			–			13
Acquisition-related costs		–			(1	)		–			(2	)

Operating income		638			841			1,360			1,652
Interest and other expense, net		(151	)		(314	)		(395	)		(700	)

Earnings before income taxes	$	487		$	527		$	965		$	952

Net Revenues by Consumer Sector

Net revenues by product category were:


	For the Three Months Ended June 30, 2016
	Latin		Asia						North
	America		Pacific		EEMEA		Europe		America		Total
	(in millions)

Biscuits	$	196	$	295	$	129	$	651	$	1,398	$	2,669
Chocolate		179		307		166		900		43		1,595
Gum & Candy		250		178		149		177		279		1,033
Beverages ⁽¹⁾		138		112		116		40		–		406
Cheese & Grocery		80		131		88		300		–		599

Total net revenues	$	843	$	1,023	$	648	$	2,068	$	1,720	$	6,302


	For the Three Months Ended June 30, 2015
	Latin		Asia						North
	America ⁽²⁾		Pacific		EEMEA		Europe ⁽³⁾		America		Total
	(in millions)

Biscuits	$	407	$	268	$	147	$	642	$	1,400	$	2,864
Chocolate		202		302		196		896		41		1,637
Gum & Candy		295		188		166		198		272		1,119
Beverages ⁽¹⁾		178		133		272		776		–		1,359
Cheese & Grocery		158		133		88		303		–		682

Total net revenues	$	1,240	$	1,024	$	869	$	2,815	$	1,713	$	7,661


	For the Six Months Ended June 30, 2016
	Latin		Asia						North
	America		Pacific		EEMEA		Europe		America		Total
	(in millions)

Biscuits	$	360	$	631	$	254	$	1,240	$	2,759	$	5,244
Chocolate		377		700		326		2,103		88		3,594
Gum & Candy		466		364		263		349		548		1,990
Beverages ⁽¹⁾		302		208		198		87		–		795
Cheese & Grocery		155		247		154		578		–		1,134

Total net revenues	$	1,660	$	2,150	$	1,195	$	4,357	$	3,395	$	12,757


	For the Six Months Ended June 30, 2015
	Latin		Asia						North
	America ⁽²⁾		Pacific		EEMEA		Europe ⁽³⁾		America		Total
	(in millions)

Biscuits	$	716	$	584	$	271	$	1,236	$	2,758	$	5,565
Chocolate		496		704		395		2,130		97		3,822
Gum & Candy		590		379		284		381		540		2,174
Beverages ⁽¹⁾		392		248		457		1,450		–		2,547
Cheese & Grocery		303		262		157		593		–		1,315

Total net revenues	$	2,497	$	2,177	$	1,564	$	5,790	$	3,395	$	15,423

(1)

On July 2, 2015, we contributed our global coffee businesses primarily from our Europe, EEMEA and Asia Pacific segment beverage categories. Net revenues of our global coffee business were $730 million in Europe, $130 million in EEMEA and $15 million in Asia Pacific for the three months and $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the six months ended June 30, 2015. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions, for more information.

(2)

Our Venezuelan subsidiaries net revenues of $183 million in biscuits, $74 million in cheese & grocery, $26 million in gum & candy and $18 million in beverages for the three months and $287 million in biscuits, $136 million in cheese & grocery, $61 million in gum & candy and $35 million in beverages for the six months ended June 30, 2015 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.