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Segment Reporting
 3 Months Ended
Mar. 31, 2021
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 across our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions.
Our operations and management structure are organized into four operating segments:
    • Latin America
    • AMEA
    • Europe
    • North America

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), 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
March 31,
20212020
(in millions)
Net revenues:
Latin America$669 $726 
AMEA1,745 1,502 
Europe2,847 2,584 
North America1,977 1,895 
Net revenues$7,238 $6,707 

Earnings before income taxes:
Operating income:
Latin America$76 $78 
AMEA362 234 
Europe557 472 
North America270 381 
Unrealized gains/(losses) on hedging activities
   (mark-to-market impacts)		118 (185)
General corporate expenses(64)(76)
Amortization of intangibles(38)(43)
Gain on acquisition9 — 
Acquisition-related costs(7)(5)
Operating income1,283 856 
Benefit plan non-service income44 33 
Interest and other expense, net(218)(190)
Earnings before income taxes$1,109 $699 

Items impacting our segment operating results are discussed in Note 1, Basis of Presentation, Note 2, Acquisitions and Divestitures, Note 4, Property, Plant and Equipment, Note 5, Goodwill and Intangible Assets, and Note 7, Restructuring Program. 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 March 31, 2021
Latin
America		AMEAEuropeNorth
America		Total
(in millions)
Biscuits$177 $583 $802 $1,736 $3,298 
Chocolate192 670 1,552 63 2,477 
Gum & Candy131 194 148 178 651 
Beverages94 180 33 — 307 
Cheese & Grocery75 118 312 — 505 
Total net revenues$669 $1,745 $2,847 $1,977 $7,238 
For the Three Months Ended March 31, 2020
Latin
America		AMEAEuropeNorth
America		Total
(in millions)
Biscuits$174 $508 $746 $1,598 $3,026 
Chocolate194 543 1,363 56 2,156 
Gum & Candy182 185 173 241 781 
Beverages102 171 25 — 298 
Cheese & Grocery74 95 277 — 446 
Total net revenues$726 $1,502 $2,584 $1,895 $6,707