Segment Reporting

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Note 16. Segment Reporting

We manufacture and market primarily snack food products, including chocolate, biscuits and baked snacks, as well as gum & candy, cheese & grocery and powdered beverages.

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,
	2023		2022
	(in millions)
Net revenues:
Latin America	$	1,211	$	826
AMEA	1,939		1,867
Europe	3,307		2,935
North America	2,709		2,136
Net revenues	$	9,166	$	7,764
Earnings before income taxes:
Operating income:
Latin America	$	139	$	103
AMEA	360		272
Europe	507		377
North America	566		418
Unrealized gains/(losses) on hedging activities    (mark-to-market impacts)	49		27
General corporate expenses	(77)		(50)
Amortization of intangible assets	(39)		(32)
Acquisition-related costs	—		(21)
Operating income	1,505		1,094
Benefit plan non-service income	19		33
Interest and other expense, net	(95)		(168)
Gain on marketable securities	796		—
Earnings before income taxes	$	2,225	$	959

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, 2023
	Latin America		AMEA		Europe		North America		Total
	(in millions)
Biscuits & Baked Snacks	$	276	$	669	$	1,062	$	2,313	$	4,320
Chocolate	368		747		1,670		84		2,869
Gum & Candy	348		206		233		312		1,099
Beverages	111		208		33		—		352
Cheese & Grocery	108		109		309		—		526
Total net revenues	$	1,211	$	1,939	$	3,307	$	2,709	$	9,166
	For the Three Months Ended March 31, 2022
	Latin America		AMEA		Europe		North America		Total
	(in millions)
Biscuits & Baked Snacks	$	224	$	657	$	951	$	1,799	$	3,631
Chocolate	248		706		1,512		77		2,543
Gum & Candy	172		203		152		260		787
Beverages	102		197		32		—		331
Cheese & Grocery	80		104		288		—		472
Total net revenues	$	826	$	1,867	$	2,935	$	2,136	$	7,764