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Segment Reporting
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting
Note 16. Segment Reporting

We manufacture and market primarily snack food products, including biscuits, 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,
20222021
(in millions)
Net revenues:
Latin America$826 $669 
AMEA1,867 1,745 
Europe2,935 2,847 
North America2,136 1,977 
Net revenues$7,764 $7,238 

Earnings before income taxes:
Operating income:
Latin America$103 $76 
AMEA272 362 
Europe377 557 
North America418 270 
Unrealized gains/(losses) on hedging activities
   (mark-to-market impacts)		27 118 
General corporate expenses(50)(64)
Amortization of intangible assets(32)(38)
Gain on acquisition— 9 
Acquisition-related costs(21)(7)
Operating income1,094 1,283 
Benefit plan non-service income33 44 
Interest and other expense, net(168)(218)
Earnings before income taxes$959 $1,109 

Items impacting our segment operating results are discussed in Note 1, Basis of Presentation, Note 2, Acquisitions and Divestitures, Note 3, Inventories, 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, 2022
Latin
America		AMEAEuropeNorth
America		Total
(in millions)
Biscuits$224 $657 $951 $1,799 $3,631 
Chocolate248 706 1,512 77 2,543 
Gum & Candy172 203 152 260 787 
Beverages102 197 32 — 331 
Cheese & Grocery80 104 288 — 472 
Total net revenues$826 $1,867 $2,935 $2,136 $7,764 
Three Months Ended March 31, 2021 (1)
Latin
America		AMEAEuropeNorth
America		Total
(in millions)
Biscuits$177 $583 $810 $1,736 $3,306 
Chocolate192 670 1,544 63 2,469 
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 

(1)     Our snack product categories include biscuits, chocolate and gum & candy. During 2022, we realigned some of our products between our biscuits and chocolate categories; as such, we reclassified the product category net revenues on a basis consistent with the 2022 presentation.