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Segment Reporting | 6 Months Ended
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Jun. 30, 2018
Segment Reporting [Abstract] |
Segment Reporting | Note 16. Segment Reporting We manufacture and market primarily snack food products, including biscuits (cookies, crackers and salted snacks), chocolate, gum & candy and various cheese & grocery products, as well as powdered beverage products. We manage our global business and report operating results through geographic units. We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise in our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions. We use segment operating income to evaluate segment performance and allocate resources. We believe it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating income excludes unrealized gains and losses on hedging activities (which are a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses) and amortization of intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. We exclude these items from segment operating income in order to provide better transparency of our segment operating results. Furthermore, we centrally manage benefit plan non-service income and interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the segment profitability measure that management reviews. Our segment net revenues and earnings were:
| For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (in millions)
Net revenues: |  |  |  |  |  |  |
Latin America | $ | 774 |  |  | $ | 848 |  |  | $ | 1,665 |  |  | $ | 1,758 |
AMEA | 1,360 |  |  | 1,394 |  |  | 2,902 |  |  | 2,885 |
Europe | 2,303 |  |  | 2,171 |  |  | 5,009 |  |  | 4,536 |
North America | 1,675 |  |  | 1,573 |  |  | 3,301 |  |  | 3,221 |
Net revenues | $ | 6,112 |  |  | $ | 5,986 |  |  | $ | 12,877 |  |  | $ | 12,400 |
Earnings before income taxes: |  |  |  |  |  |  |
Operating income: |  |  |  |  |  |  |
Latin America | $ | 92 |  |  | $ | 102 |  |  | $ | 218 |  |  | $ | 213 |
AMEA | 177 |  |  | 161 |  |  | 405 |  |  | 342 |
Europe | 367 |  |  | 321 |  |  | 864 |  |  | 714 |
North America | (95 | ) |  | 225 |  |  | 180 |  |  | 517 |
Unrealized gains/(losses) on hedging activities (mark-to-market impacts) | 88 |  |  | (46 | ) |  | 294 |  |  | (97 | )
General corporate expenses | (91 | ) |  | (80 | ) |  | (155 | ) |  | (137 | )
Amortization of intangibles | (44 | ) |  | (44 | ) |  | (88 | ) |  | (88 | )
Loss on divestiture | — |  |  | (3 | ) |  | — |  |  | (3 | )
Acquisition-related costs | (13 | ) |  | — |  |  | (13 | ) |  | — |
Operating income | 481 |  |  | 636 |  |  | 1,705 |  |  | 1,461 |
Benefit plan non-service income (1) | 15 |  |  | 5 |  |  | 28 |  |  | 20 |
Interest and other expense, net | (248 | ) |  | (124 | ) |  | (328 | ) |  | (243 | )
Earnings before income taxes | $ | 248 |  |  | $ | 517 |  |  | $ | 1,405 |  |  | $ | 1,238 |
(1) | During the first quarter of 2018, in connection with adopting a new pension cost classification accounting standard, we reclassified certain of our benefit plan component costs other than service costs out of operating income into a new line item, benefit plan non-service income, on our condensed consolidated statements of earnings. As such, we have recast our historical operating income and segment operating income to reflect this reclassification, which had no impact to earnings before income taxes or net earnings.
Items impacting our segment operating results are discussed in Note 1, Basis of Presentation, Note 2, Divestitures and Acquisitions, Note 4, Property, Plant and Equipment, Note 5, Goodwill and Intangible Assets, Note 7, 2014-2018 Restructuring Program, and Note 12, Commitments and Contingencies. Also see Note 8, Debt and Borrowing Arrangements, and Note 9, Financial Instruments, for more information on our interest and other expense, net for each period. Net revenues by product category were:
| For the Three Months Ended June 30, 2018
| Latin America |  | AMEA |  | Europe |  | North America |  | Total
| (in millions)
Biscuits | $ | 192 |  |  | $ | 387 |  |  | $ | 810 |  |  | $ | 1,403 |  |  | $ | 2,792 |
Chocolate | 161 |  |  | 440 |  |  | 1,003 |  |  | 46 |  |  | 1,650 |
Gum & Candy | 224 |  |  | 236 |  |  | 200 |  |  | 226 |  |  | 886 |
Beverages | 116 |  |  | 173 |  |  | 19 |  |  | — |  |  | 308 |
Cheese & Grocery | 81 |  |  | 124 |  |  | 271 |  |  | — |  |  | 476 |
Total net revenues | $ | 774 |  |  | $ | 1,360 |  |  | $ | 2,303 |  |  | $ | 1,675 |  |  | $ | 6,112 |
| For the Three Months Ended June 30, 2017 (1)
| Latin America |  | AMEA |  | Europe |  | North America |  | Total
| (in millions)
Biscuits | $ | 200 |  |  | $ | 356 |  |  | $ | 734 |  |  | $ | 1,301 |  |  | $ | 2,591 |
Chocolate | 194 |  |  | 424 |  |  | 930 |  |  | 50 |  |  | 1,598 |
Gum & Candy | 241 |  |  | 238 |  |  | 204 |  |  | 222 |  |  | 905 |
Beverages | 129 |  |  | 189 |  |  | 24 |  |  | — |  |  | 342 |
Cheese & Grocery | 84 |  |  | 187 |  |  | 279 |  |  | — |  |  | 550 |
Total net revenues | $ | 848 |  |  | $ | 1,394 |  |  | $ | 2,171 |  |  | $ | 1,573 |  |  | $ | 5,986 |
| For the Six Months Ended June 30, 2018
| Latin America |  | AMEA |  | Europe |  | North America |  | Total
| (in millions)
Biscuits | $ | 375 |  |  | $ | 829 |  |  | $ | 1,605 |  |  | $ | 2,736 |  |  | $ | 5,545 |
Chocolate | 404 |  |  | 1,013 |  |  | 2,426 |  |  | 103 |  |  | 3,946 |
Gum & Candy | 448 |  |  | 471 |  |  | 386 |  |  | 462 |  |  | 1,767 |
Beverages | 277 |  |  | 345 |  |  | 47 |  |  | — |  |  | 669 |
Cheese & Grocery | 161 |  |  | 244 |  |  | 545 |  |  | — |  |  | 950 |
Total net revenues | $ | 1,665 |  |  | $ | 2,902 |  |  | $ | 5,009 |  |  | $ | 3,301 |  |  | $ | 12,877 |
| For the Six Months Ended June 30, 2017 (1)
| Latin America |  | AMEA |  | Europe |  | North America |  | Total
| (in millions)
Biscuits | $ | 370 |  |  | $ | 756 |  |  | $ | 1,399 |  |  | $ | 2,634 |  |  | $ | 5,159 |
Chocolate | 453 |  |  | 938 |  |  | 2,139 |  |  | 120 |  |  | 3,650 |
Gum & Candy | 454 |  |  | 467 |  |  | 397 |  |  | 467 |  |  | 1,785 |
Beverages | 322 |  |  | 362 |  |  | 65 |  |  | — |  |  | 749 |
Cheese & Grocery | 159 |  |  | 362 |  |  | 536 |  |  | — |  |  | 1,057 |
Total net revenues | $ | 1,758 |  |  | $ | 2,885 |  |  | $ | 4,536 |  |  | $ | 3,221 |  |  | $ | 12,400 |
(1) | During the first quarter of 2018, 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 2018 presentation.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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