Spin-Off and related events. The unaudited pro forma consolidated statements of earnings for the six months ended June 30, 2012 and the year ended December 31, 2011 give effect to the Spin-Off and related events as if they occurred at the beginning of this period on January 1, 2011. The unaudited pro forma consolidated balance sheet gives effect to the Spin-Off and related events as if they occurred as of June 30, 2012, our latest balance sheet date.

KFG Discontinued Operation. The unaudited pro forma consolidated statements of earnings reflect the removal of the KFG Discontinued Operation historical results in all periods presented.

Spin-Off transaction, transition and financing and related costs incurred to date. We incurred $46 million of one-time, pre-tax Spin-Off transaction and transition costs in 2011 and $301 million of transaction, transition and financing and related costs in the six months ended June 30, 2012. We expect to reflect all one-time Spin-Off costs within our reported results. KFG has recorded and will record its own direct recurring financing and related costs. As described in note (a) to the unaudited pro forma consolidated financial statements, we removed the non-recurring Spin-Off costs incurred to date from the pro forma statements of earnings for the six months ended June 30, 2012 and the year ended December 31, 2011 as these costs will not recur now that the Spin-Off transaction is completed.

Restructuring and implementation costs incurred to date related to optimizing both KFG’s and our businesses for future operations (the “2012-2014 Restructuring Program”). We incurred $169 million of one-time 2012-2014 Restructuring Program costs, including KFG’s 2012-2014 Restructuring Program costs of $116 million, in the six months ended June 30, 2012. The treatment of KFG as a discontinued operation as discussed below under “KFG Discontinued Operation” removes KFG’s restructuring and implementation costs from our unaudited pro forma consolidated statements of earnings. Because we expect the 2012-2014 Restructuring Program costs to recur in future periods, our 2012-2014 Restructuring Program costs incurred to date have not been removed from the unaudited pro forma consolidated statements of earnings.

For the periods presented, the KFG Discontinued Operation results exclude certain corporate and business unit costs that were allocated to KFG in the historical financial statements as well as dis-synergies primarily in corporate overheads, information systems and sales force support which we expect to continue at Mondelēz International after the Spin-Off. These costs on a pretax basis are $100 million for the six months ended June 30, 2012, $236 million for the year ended December 31, 2011, $209 million for the year ended December 31, 2010 and $192 million for the year ended December 31, 2009.

The KFG Discontinued Operation results include historical interest expense related to $10 billion of debt that KFG incurred or that we migrated to KFG in connection with the Spin-Off debt capitalization plans. Through June 30, 2012, approximately one month of interest expense related to the $6 billion of notes KFG issued directly, or $18 million of pretax interest expense, was recorded in KFG’s historical results. Interest expense related to the $4 billion of debt migrated to KFG in July 2012 and as of the Distribution Date, was also included within the KFG Discontinued Operation results and on a pretax basis totaled $128 million for the six months ended June 30, 2012, $258 million in the year ended December 31, 2011, $247 million in the year ended December 31, 2010, and $156 million in the year ended December 31, 2009.

The KFG Discontinued Operation results exclude royalty income historically reported by KFG that we will not pay following the Distribution Date. The royalties relate to intellectual property rights that we will retain following the Spin-Off. The pretax royalty income was $28 million for the six months ended June 30, 2012, $55 million for the year ended December 31, 2011, $43 million for the year ended December 31, 2010 and $47 million for the year ended December 31, 2009. We have also excluded intercompany sales from KFG to Mondelēz International in order to properly reflect net revenues from continuing operations. The pretax intercompany sales recorded by KFG were $54 million for the six months ended June 30, 2012, $100 million for the year ended December 31, 2011, $79 million for the year ended December 31, 2010 and $83 million for the year ended December 31, 2009.

Adjustment to remove non-recurring Spin-Off transaction, transition, and financing and related costs incurred to date from the unaudited pro forma consolidated statements of earnings.

Transfer of net liabilities between KFG and us to facilitate the administration or payment of certain obligations, including certain employee benefit plan and other obligations, net of any related assets.

Recognition of a receivable related to an estimated $237 million of cash distributions due from KFG within 60 days after the Distribution Date and related to the finalization of the Spin-Off cash distributions from KFG and the capitalization plan between the companies.

Recognition of the recapitalization of equity to reflect the distribution of the KFG net assets through the distribution of one share of KFG common stock for every three shares of our common stock outstanding on the Record Date.

Net revenues

Cost of sales

Gross profit

Selling, general and administrative expenses

Asset impairment and exit costs

Amortization of intangibles

Operating income

Interest and other expense, net

Earnings before income taxes

Provision for income taxes

Net earnings

Noncontrolling interest

Net earnings from continuing operations

Per share data

Basic earnings per share from continuing operations

Diluted earnings per share from continuing operations

Dividends declared

Weighted average shares outstanding

Basic

Diluted

Net revenues

Cost of sales

Gross profit

Selling, general and administrative expenses

Asset impairment and exit costs

Amortization of intangibles

Operating income

Interest and other expense, net

Earnings before income taxes

Provision for income taxes

Net earnings

Noncontrolling interest

Net earnings from continuing operations

Per share data

Basic earnings per share from continuing operations

Diluted earnings per share from continuing operations

Dividends declared

Weighted average shares outstanding

Basic

Diluted

Net revenues

Cost of sales

Gross profit

Selling, general and administrative expenses

Asset impairment and exit costs

Losses on divestitures, net

Amortization of intangibles

Operating income

Interest and other expense, net

Earnings before income taxes

Provision for income taxes

Net earnings

Noncontrolling interest

Net earnings from continuing operations

Per share data

Basic earnings per share from continuing operations

Diluted earnings per share from continuing operations

Dividends declared

Weighted average shares outstanding

Basic

Diluted

Net revenues

Cost of sales

Gross profit

Selling, general and administrative expenses

Asset impairment and exit costs

Losses on divestitures, net

Amortization of intangibles

Operating income

Interest and other expense, net

Earnings before income taxes

Provision for income taxes

Net earnings

Noncontrolling interest

Net earnings from continuing operations

Per share data

Basic earnings per share from continuing operations

Diluted earnings per share from continuing operations

Dividends declared

Weighted average shares outstanding

Basic

Diluted

Notes

Assets

Cash and cash equivalents

Due from KFG

Receivables, net

Inventories, net

Deferred income taxes

Other current assets

Total current assets

Property, plant and equipment, net

Goodwill

Intangible assets, net

Prepaid pension assets

Other assets

Total assets

Liabilities

Short-term borrowings

Current portion of long-term debt

Accounts payable

Accrued marketing

Accrued employment costs

Other current liabilities

Total current liabilities

Long-term debt

Deferred income taxes

Accrued pension costs

Accrued postretirement costs

Other liabilities

Total liabilities

Equity

Common Stock, no par value

Additional paid-in capital

Retained earnings

Parent company investment

Accumulated other
comprehensive losses

Treasury stock, at cost

Mondelēz International equity

Noncontrolling interest

Total equity

Total liabilities and equity

We transferred to KFG an estimated $297 million related to certain North American trade accounts payable and an estimated $226 million of certain North American trade accounts receivable of our global snacks business.

We assumed from KFG an estimated $298 million of primarily U.S. federal and certain foreign net tax liabilities and related deferred taxes. The obligation for U.S. state income taxes and Canadian federal and provincial income taxes attributable to the tax periods prior to the Spin-Off was transferred to KFG, while we retained the obligation for U.S. federal income taxes and substantially all foreign income taxes (excluding Canadian income taxes) attributable to the tax periods prior to the Spin-Off. Related deferred tax assets or deferred tax liabilities were also transferred.

We assumed from KFG an estimated $138 million of our workers’ compensation and other accrued insurance liabilities.