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Segment Reporting (Tables) | 9 Months Ended
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Sep. 30, 2016
Net Revenues and Earnings by Segment | Our segment net revenues were:
|  | For the Three Months Ended |  |  | For the Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
|  | (in millions) |
Net revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Latin America (1) |  | $ | 868 |  |  | $ | 1,233 |  |  | $ | 2,528 |  |  | $ | 3,730 |
Asia Pacific (2) |  |  | 1,128 |  |  |  | 1,101 |  |  |  | 3,278 |  |  |  | 3,278 |
EEMEA (2) |  |  | 543 |  |  |  | 586 |  |  |  | 1,738 |  |  |  | 2,150 |
Europe (2) |  |  | 2,104 |  |  |  | 2,173 |  |  |  | 6,461 |  |  |  | 7,963 |
North America |  |  | 1,753 |  |  |  | 1,756 |  |  |  | 5,148 |  |  |  | 5,151 |
Net revenues |  | $ | 6,396 |  |  | $ | 6,849 |  |  | $ | 19,153 |  |  | $ | 22,272 |
(1) Net revenues of $315 million for the three months and $834 million for the nine months ended September 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 $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 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 | Our segment earnings were:
|  | For the Three Months Ended |  |  | For the Nine Months Ended |
|  | September 30, |  |  | September 30, |
|  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
|  | (in millions) |
Earnings before income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Latin America |  | $ | 92 |  |  | $ | 134 |  |  | $ | 191 |  |  | $ | 422 |
Asia Pacific |  |  | 135 |  |  |  | 71 |  |  |  | 378 |  |  |  | 321 |
EEMEA |  |  | 44 |  |  |  | 52 |  |  |  | 154 |  |  |  | 184 |
Europe |  |  | 302 |  |  |  | 298 |  |  |  | 896 |  |  |  | 885 |
North America |  |  | 274 |  |  |  | 275 |  |  |  | 840 |  |  |  | 817 |
Unrealized gains / (losses) on hedging activities (mark-to-market impacts) |  |  | (12 | ) |  |  | (4 | ) |  |  | (49 | ) |  |  | 75 |
General corporate expenses |  |  | (89 | ) |  |  | (95 | ) |  |  | (216 | ) |  |  | (240 | )
Amortization of intangibles |  |  | (44 | ) |  |  | (45 | ) |  |  | (132 | ) |  |  | (137 | )
Gains on JDE coffee business transactions and divestiture |  |  | – |  |  |  | 7,122 |  |  |  | – |  |  |  | 7,135 |
Acquisition-related costs |  |  | – |  |  |  | (6 | ) |  |  | – |  |  |  | (8 | )
Operating income |  |  | 702 |  |  |  | 7,802 |  |  |  | 2,062 |  |  |  | 9,454 |
Interest and other expense, net |  |  | (145 | ) |  |  | (114 | ) |  |  | (540 | ) |  |  | (814 | )
Earnings before income taxes |  | $ | 557 |  |  | $ | 7,688 |  |  | $ | 1,522 |  |  | $ | 8,640 |
Net Revenues by Consumer Sector | Net revenues by product category were:
|  | For the Three Months Ended September 30, 2016 |
|  | Latin |  |  | Asia |  |  |  |  |  |  |  |  | North |  |  |  |
| America |  |  | Pacific |  |  | EEMEA |  |  | Europe |  |  | America |  |  | Total |
|  | (in millions) |
Biscuits |  | $ | 191 |  |  | $ | 360 |  |  | $ | 125 |  |  | $ | 608 |  |  | $ | 1,403 |  |  | $ | 2,687 |
Chocolate |  |  | 185 |  |  |  | 388 |  |  |  | 223 |  |  |  | 1,021 |  |  |  | 65 |  |  |  | 1,882 |
Gum & Candy |  |  | 247 |  |  |  | 174 |  |  |  | 120 |  |  |  | 163 |  |  |  | 285 |  |  |  | 989 |
Beverages (1) |  |  | 164 |  |  |  | 77 |  |  |  | 31 |  |  |  | 36 |  |  |  | – |  |  |  | 308 |
Cheese & Grocery |  |  | 81 |  |  |  | 129 |  |  |  | 44 |  |  |  | 276 |  |  |  | – |  |  |  | 530 |
Total net revenues |  | $ | 868 |  |  | $ | 1,128 |  |  | $ | 543 |  |  | $ | 2,104 |  |  | $ | 1,753 |  |  | $ | 6,396 |
|  | For the Three Months Ended September 30, 2015 |
|  | Latin |  |  | Asia |  |  |  |  |  |  |  |  | North |  |  |  |
| America (2) |  |  | Pacific |  |  | EEMEA |  |  | Europe (3) |  |  | America |  |  | Total |
|  | (in millions) |
Biscuits |  | $ | 431 |  |  | $ | 356 |  |  | $ | 125 |  |  | $ | 592 |  |  | $ | 1,403 |  |  | $ | 2,907 |
Chocolate |  |  | 184 |  |  |  | 370 |  |  |  | 232 |  |  |  | 1,074 |  |  |  | 64 |  |  |  | 1,924 |
Gum & Candy |  |  | 262 |  |  |  | 171 |  |  |  | 134 |  |  |  | 177 |  |  |  | 289 |  |  |  | 1,033 |
Beverages (1) |  |  | 178 |  |  |  | 76 |  |  |  | 45 |  |  |  | 43 |  |  |  | – |  |  |  | 342 |
Cheese & Grocery |  |  | 178 |  |  |  | 128 |  |  |  | 50 |  |  |  | 287 |  |  |  | – |  |  |  | 643 |
Total net revenues |  | $ | 1,233 |  |  | $ | 1,101 |  |  | $ | 586 |  |  | $ | 2,173 |  |  | $ | 1,756 |  |  | $ | 6,849 |
|  | For the Nine Months Ended September 30, 2016 |
|  | Latin |  |  | Asia |  |  |  |  |  |  |  |  | North |  |  |  |
| America |  |  | Pacific |  |  | EEMEA |  |  | Europe |  |  | America |  |  | Total |
|  | (in millions) |
Biscuits |  | $ | 551 |  |  | $ | 991 |  |  | $ | 379 |  |  | $ | 1,848 |  |  | $ | 4,162 |  |  | $ | 7,931 |
Chocolate |  |  | 562 |  |  |  | 1,088 |  |  |  | 549 |  |  |  | 3,124 |  |  |  | 153 |  |  |  | 5,476 |
Gum & Candy |  |  | 713 |  |  |  | 538 |  |  |  | 383 |  |  |  | 512 |  |  |  | 833 |  |  |  | 2,979 |
Beverages (1) |  |  | 466 |  |  |  | 285 |  |  |  | 229 |  |  |  | 123 |  |  |  | – |  |  |  | 1,103 |
Cheese & Grocery |  |  | 236 |  |  |  | 376 |  |  |  | 198 |  |  |  | 854 |  |  |  | – |  |  |  | 1,664 |
Total net revenues |  | $ | 2,528 |  |  | $ | 3,278 |  |  | $ | 1,738 |  |  | $ | 6,461 |  |  | $ | 5,148 |  |  | $ | 19,153 |
|  | For the Nine Months Ended September 30, 2015 |
|  | Latin |  |  | Asia |  |  |  |  |  |  |  |  | North |  |  |  |
| America (2) |  |  | Pacific |  |  | EEMEA |  |  | Europe (3) |  |  | America |  |  | Total |
|  | (in millions) |
Biscuits |  | $ | 1,147 |  |  | $ | 940 |  |  | $ | 396 |  |  | $ | 1,828 |  |  | $ | 4,161 |  |  | $ | 8,472 |
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 |  |  | 481 |  |  |  | 390 |  |  |  | 207 |  |  |  | 880 |  |  |  | – |  |  |  | 1,958 |
Total net revenues |  | $ | 3,730 |  |  | $ | 3,278 |  |  | $ | 2,150 |  |  | $ | 7,963 |  |  | $ | 5,151 |  |  | $ | 22,272 |
| (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 $1,348 million in Europe, $246 million in EEMEA and $33 million in Asia Pacific for the nine months ended September 30, 2015. Refer to Note 2, Divestitures and Acquisitions – JDE Coffee Business Transactions, for more information.
| (2) | Our Venezuelan subsidiaries net revenues of $209 million in biscuits, $95 million in cheese & grocery, $6 million in beverages and $5 million in gum & candy for the three months and $496 million in biscuits, $231 million in cheese & grocery, $66 million in gum & candy and $41 million in beverages for the nine months ended September 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 primarily within our Europe segment and as such, we reclassified the product category net revenues on a basis consistent with the 2016 presentation.

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