UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 27, 2015
MONDELĒZ INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Virginia | 1-16483 | 52-2284372 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
Three Parkway North, Deerfield, Illinois 60015
(Address of principal executive offices, including zip code)
(847) 943-4000
(Registrants telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On October 28, 2015, Mondelēz International, Inc., a Virginia corporation, issued a press release announcing earnings for the third quarter ended September 30, 2015. A copy of the earnings press release is furnished as Exhibit 99.1 to this current report.
This information, including Exhibit 99.1, will not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities under that section and it will not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(b), (c)
On October 28, 2015, we announced Mark A. Clouse will become our Chief Commercial Officer and Timothy P. Cofer will become our Chief Growth Officer; both changes will become effective in January 2016.
Mr. Clouse, age 47, has been serving as our Executive Vice President and Chief Growth Officer since July 2014 and served as Executive Vice President and President, North America from October 2012 to March 2015. Prior to that Mr. Clouse served as President of the Snacks and Confectionery business in North America from June 2011 to October 2012 and Senior Vice President of the Biscuits Global Category Team from October 2010 to June 2011. He was Managing Director of Kraft Foods Brazil from January 2008 to September 2010 and President of Kraft Foods Greater China from January 2006 to January 2008. Prior to that, Mr. Clouse held various positions of increasing responsibility around the world. Before joining Mondelēz International in 1996, Mr. Clouse served in the United States Army for seven years, attaining the rank of Captain.
Mr. Clouse was not selected pursuant to any arrangement or understanding between him and any other person. Mr. Clouse has no family relationships with any of our directors or executive officers. There have been no related person transactions between Mondelēz International and Mr. Clouse reportable under Item 404(a) of Regulation S-K.
Mr. Cofer, age 46, became Executive Vice President and President, Asia Pacific and EEMEA in September 2013. Prior to that, he served as Executive Vice President and President, Europe, from August 2011 until September 2013, Senior Vice President, Global Chocolate Category from June 2010 to August 2011, Senior Vice President, Strategy and Integration from January 2010 to June 2010, President of Pizza from January 2008 to January 2010, Senior Vice President and General Manager of Oscar Mayer from January 2007 to January 2008 and Vice President and General Manager of EU Chocolate from June 2003 to January 2007. Mr. Cofer joined Mondelēz International in 1992.
Mr. Cofer was not selected pursuant to any arrangement or understanding between him and any other person. Mr. Cofer has no family relationships with any of our directors or executive officers. There have been no related person transactions between Mondelēz International and Mr. Clouse reportable under Item 404(a) of Regulation S-K.
We also announced that David A. Brearton, our Executive Vice President, Strategic Initiatives will retire at the end of 2015.
Item 8.01. Other Events.
On October 28, 2015, we announced the following structural changes to our leadership team:
Maurizio Brusadelli will become Executive Vice President and President of Asia Pacific and report to Mark Clouse, effective January 2016.
Gustavo Abelenda, Executive Vice President and President Latin America; Lawrence MacDougall, Executive Vice President and President Eastern Europe, Middle East and Africa; Roberto de Oliveira Marques, Executive Vice President and President, North America and Hubert Weber, Executive Vice President and President, Europe all will continue in their current roles and will report to Mark Clouse, effective January 2016.
Tracey Belcourt, our Executive Vice President, Strategy, will leave Mondelēz International at the end of 2015.
Item 9.01. Financial Statements and Exhibits.
(d) | Exhibit |
Exhibit |
Description | |
99.1 | Mondelēz International, Inc. Press Release, dated October 28, 2015. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MONDELĒZ INTERNATIONAL, INC. | ||
By: | /s/ Brian T. Gladden | |
Name: | Brian T. Gladden | |
Title: | Executive Vice President and Chief Financial Officer |
Date: October 28, 2015
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Mondelēz International, Inc. Press Release, dated October 28, 2015. |
Exhibit 99.1
Contacts: | Michael Mitchell (Media) | Dexter Congbalay (Investors) | ||||
+1-847-943-5678 | +1-847-943-5454 | |||||
news@mdlz.com | ir@mdlz.com |
Mondelēz International Reports Q3 Results;
Reaffirms 2015 Outlook and 2016 Margin Target
Company Names Mark Clouse as Chief Commercial Officer,
Tim Cofer as Chief Growth Officer
DEERFIELD, Ill. October 28, 2015 Mondelēz International, Inc. (NASDAQ: MDLZ) today reported its third quarter 2015 results, reflecting continued strong Adjusted Operating Income1 margin expansion and solid Organic Net Revenue1 growth. Adjusted EPS1 was flat versus the prior year on a constant-currency basis due to dilution related to the companys recently created coffee joint venture.
We delivered strong margin expansion in the third quarter by progressing our transformation agenda in a volatile and challenging macroeconomic environment, said Irene Rosenfeld, Chairman and CEO. Were continuing to aggressively reduce costs to expand margins and provide the fuel for incremental investments behind our Power Brands and route-to-market capabilities to drive sustainable revenue growth and improve market shares. As a result, we remain confident in our ability to deliver our 2015 outlook and our 2016 Adjusted Operating Income margin target of 15 to 16 percent, while continuing to return significant capital to our shareholders.
On a reported basis, net revenues were $6.8 billion, down 17.8 percent, including a negative 13.6 percentage point impact from currency and a negative 9.3 percentage points from the coffee business transactions. Operating income was $7.8 billion, up 815 percent, including a $7.1 billion pre-tax gain from the coffee transaction. Diluted EPS was $4.46, up $3.93.
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Net Revenue
$ in millions | Reported Net Revenues |
Organic Net Revenue Growth | ||||||||||||||||||||
Q3 2015 | % Chg vs PY |
Q3 2015 | Vol/Mix | Pricing | ||||||||||||||||||
Quarter 3 |
||||||||||||||||||||||
Latin America |
$ | 1,233 | (6.2 | )% | 17.4 | % | (10.0 | )pp | 27.4 | pp | ||||||||||||
Asia Pacific |
1,101 | (4.5 | ) | 3.1 | (2.4 | ) | 5.5 | |||||||||||||||
Eastern Europe, Middle East & Africa |
586 | (34.5 | ) | 6.3 | (7.5 | ) | 13.8 | |||||||||||||||
Europe |
2,173 | (32.4 | ) | (1.6 | ) | (2.4 | ) | 0.8 | ||||||||||||||
North America |
1,756 | (0.2 | ) | 0.6 | 0.2 | 0.4 | ||||||||||||||||
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Mondelēz International |
$ | 6,849 | (17.8 | )% | 3.7 | % | (3.7 | )pp | 7.4 | pp | ||||||||||||
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Emerging Markets |
$ | 2,742 | (14.4 | )% | 10.3 | % | ||||||||||||||||
Developed Markets |
4,107 | (20.0 | ) | (0.5 | ) | |||||||||||||||||
Power Brands |
$ | 4,594 | (18.2 | )% | 5.1 | % | ||||||||||||||||
September Year-to-Date |
Sept YTD | Sept YTD | ||||||||||||||||||||
Latin America |
$ | 3,730 | (4.7 | )% | 18.7 | % | (6.7 | )pp | 25.4 | pp | ||||||||||||
Asia Pacific |
3,278 | (5.3 | ) | 1.9 | (2.5 | ) | 4.4 | |||||||||||||||
Eastern Europe, Middle East & Africa |
2,150 | (21.5 | ) | 6.2 | (4.3 | ) | 10.5 | |||||||||||||||
Europe |
7,963 | (21.6 | ) | (2.2 | ) | (3.2 | ) | 1.0 | ||||||||||||||
North America |
5,151 | | 0.2 | 0.1 | 0.1 | |||||||||||||||||
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Mondelēz International |
$ | 22,272 | (12.4 | )% | 3.4 | % | (3.0 | )pp | 6.4 | pp | ||||||||||||
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Emerging Markets |
$ | 8,754 | (10.3 | )% | 10.0 | % | ||||||||||||||||
Developed Markets |
13,518 | (13.6 | ) | (0.9 | ) | |||||||||||||||||
Power Brands |
$ | 15,243 | (11.1 | )% | 5.3 | % |
Third Quarter Commentary
Organic Net Revenue increased 3.7 percent, as the company raised prices to recover currency-driven input cost inflation. Volume/mix was unfavorable, largely due to price elasticity as well as a 70 basis point headwind resulting from strategic decisions to exit certain low-margin product lines. Power Brands2 grew 5.1 percent. Organic Net Revenue from emerging markets3 was up 10.3 percent, while developed markets4 decreased 0.5 percent.
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Operating Income and Diluted EPS
$ in millions | Reported | Adjusted | ||||||||||||||||||||
Q3 2015 | vs PY (Rpt Fx) |
Q3 2015 | vs PY (Rpt Fx) |
vs PY (Cst Fx) |
||||||||||||||||||
Quarter 3 |
||||||||||||||||||||||
Gross Profit |
$ | 2,670 | (15.0 | )% | $ | 2,679 | (4.0 | )% | 9.0 | % | ||||||||||||
Gross Profit Margin |
39.0 | % | 1.3 | pp | 39.1 | % | 1.8 | pp | ||||||||||||||
Operating Income |
$ | 7,802 | 814.7 | % | $ | 965 | 3.7 | % | 17.7 | % | ||||||||||||
Operating Income Margin |
113.9 | % | 103.7 | pp | 14.1 | % | 1.7 | pp | ||||||||||||||
Net Earnings5 |
$ | 7,266 | 708.2 | % | $ | 678 | (20.1 | )% | ||||||||||||||
Diluted EPS |
$ | 4.46 | 741.5 | % | $ | 0.42 | (16.0 | )% | 0.0 | % | ||||||||||||
September Year-to-Date |
Sept YTD | Sept YTD | ||||||||||||||||||||
Gross Profit |
$ | 8,677 | (8.2 | )% | $ | 8,028 | (3.9 | )% | 9.0 | % | ||||||||||||
Gross Profit Margin |
39.0 | % | 1.8 | pp | 38.9 | % | 2.1 | pp | ||||||||||||||
Operating Income |
$ | 9,454 | 256.4 | % | $ | 2,809 | 5.0 | % | 20.1 | % | ||||||||||||
Operating Income Margin |
42.4 | % | 32.0 | pp | 13.6 | % | 1.8 | pp | ||||||||||||||
Net Earnings |
$ | 7,996 | 374.8 | % | $ | 2,132 | (3.4 | )% | ||||||||||||||
Diluted EPS |
$ | 4.86 | 395.9 | % | $ | 1.30 | 0.8 | % | 18.6 | % |
Third Quarter Commentary
Adjusted Gross Profit1 margin was 39.1 percent, up 180 basis points. The improvement was driven by strong net productivity partially offset by a negative 40 basis point impact from a mark-to-market adjustment associated with commodities and currency hedging.
Adjusted Operating Income margin expanded 170 basis points to 14.1 percent. The company significantly stepped up advertising and consumer support, especially behind its Power Brands, and continued to reduce overhead costs as a percent of revenue.
Adjusted EPS was flat to prior year on a constant-currency basis as the companys strong operating performance was offset by dilution related to the recently created coffee joint venture as well as cycling an unusually low effective tax rate in the prior-year quarter.
Return of Capital
Through the first nine months, the company repurchased $3.1 billion of its common stock at an average price of $38.69 per share and paid $736 million in dividends.
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Outlook
The company reaffirmed its outlook for 2015, as described below, as well as its Adjusted Operating Income margin target for 2016 of 15 percent to 16 percent.
Metric | 2015 Outlook | |
Organic Net Revenue Growth |
2015: 3%+ | |
Adjusted Operating Income Margin |
2015 : ~14% excluding (20)-(30) basis points of stranded overhead costs | |
Adjusted EPS | 2015: Double-digit growth on a constant currency basis | |
Free Cash Flow excluding items1 |
2015: ~$1.0 billion |
In addition, the company estimates foreign exchange translation to reduce 2015 net revenue growth by approximately 13 percentage points6 and Adjusted EPS by approximately $0.336 due to the strengthening of the U.S. dollar versus other currencies.
Consolidating Focus on Cost Savings, Growth and Commercial Execution
Mondelēz International also announced today that it has named Mark Clouse, 47, to the newly created position of Chief Commercial Officer (CCO), and Tim Cofer, 46, as Chief Growth Officer (CGO), as the company continues to sharpen its focus on cost savings, growth and commercial execution. These changes become effective in January 2016.
Weve seen great benefit in consolidating our cost agenda under our CFO and our growth agenda under our Chief Growth Officer, Rosenfeld said. We now have the same opportunity to sharpen our global commercial execution by creating this new Chief Commercial Officer position. Brian Gladden, Tim Cofer and Mark Clouse, together with our region presidents, Daniel Myers and our Integrated Supply Chain teams, will work hand in hand to advance our transformation agenda and accelerate growth on both our top and bottom lines.
In his role as CCO, Clouse, who currently serves as CGO, will oversee the companys commercial execution with oversight of all five geographic regions as well as the global sales function. This new role is designed to simplify and accelerate day-to-day P&L decision-making and trade-offs while focusing investments in areas that will best drive profitable growth.
Cofer, who currently serves as Executive Vice President and President, Asia Pacific and EEMEA, is a 23-year veteran of the company and has successfully led large commercial operations in four different regions around the world. As CGO, he will oversee the development of next generation
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innovation platforms and new business opportunities that will accelerate future growth. Corporate strategy, global categories and global marketing, as well as research, development and quality will report to him.
Mark and Tim are very talented senior executives who are well-positioned to take on these new enterprise roles, Rosenfeld continued. Their strong operating experience in emerging and developed markets, combined with a deep understanding of our categories, will enable us to continue to deliver sustainable, profitable growth and top-tier returns to our shareholders.
Concurrent with these changes, the company announced that Maurizio Brusadelli will assume the role of President of Asia Pacific; Dave Brearton, EVP, Strategic Initiatives, will retire at year-end; and Tracey Belcourt, EVP, Strategy, will leave the organization.
Conference Call
Mondelēz International will host a conference call for investors with accompanying slides to review its results at 10 a.m. ET today. Investors and analysts may participate via phone by calling 1-800-322-9079 from the United States and 1-973-582-2717 from other locations. Access to a live audio webcast with accompanying slides and a replay of the event will be available at www.mondelezinternational.com/Investor. The company will be live tweeting from the event at www.twitter.com/MDLZ.
About Mondelēz International
Mondelēz International, Inc. (NASDAQ: MDLZ) is a global snacking powerhouse, with pro forma 2014 revenue of more than $30 billion. Creating delicious moments of joy in 165 countries, Mondelēz International is a world leader in biscuits, chocolate, gum, candy and powdered beverages, with billion-dollar brands such as Oreo, LU and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; Trident gum and Tang powdered beverages. Mondelēz International is a proud member of the Standard and Poors 500, NASDAQ 100 and Dow Jones Sustainability Index. Visit www.mondelezinternational.com or follow us on Twitter at www.twitter.com/MDLZ.
End Notes
1. | Organic Net Revenue, Adjusted Operating Income, Adjusted EPS, Adjusted Gross Profit and Free Cash Flow excluding items are non-GAAP financial measures. Please see discussion of non-GAAP financial measures at the end of this press release for more information. |
2. | Power Brands include some of the companys largest global and regional brands, such as Oreo, Chips Ahoy!, Ritz and belVita biscuits; Milka, Cadbury Dairy Milk and Lacta chocolate; Trident gum; Halls candy; and Tang powdered beverages. |
3. | Emerging markets consist of the Latin America and Eastern Europe, Middle East and Africa regions in their entirety; the Asia Pacific region, excluding Australia, New Zealand and Japan; |
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and the following countries from the Europe region: Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries. |
4. | Developed markets include the entire North America region, the Europe region excluding the countries included in the emerging markets definition, and Australia, New Zealand and Japan from the Asia Pacific region. |
5. | Net earnings attributable to Mondelēz International. |
6. | Currency estimate is based on published rates from Oanda on October 26, 2015. |
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Forward-Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words, such as will, expect, believe, would, estimate, anticipate, deliver, positioned, target, outlook and similar expressions are intended to identify our forward-looking statements, including, but not limited to, statements about: our future performance, including our future revenue growth, earnings per share, margins and cash flow; currency and the effect of foreign exchange translation on our results of operations; the costs of, timing of expenditures under and completion of our restructuring program; startup challenges related to the coffee joint venture and the consideration we receive and gain we recognize on the coffee business transactions; market share; stranded overhead costs; and our Outlook, including 2015 Organic Net Revenue growth, Adjusted Operating Income margin, Adjusted EPS and Free Cash Flow excluding items. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in our forward-looking statements. Such factors include, but are not limited to, risks from operating globally including in emerging markets; changes in currency exchange rates, controls and restrictions; continued volatility of commodity and other input costs; weakness in economic conditions; weakness in consumer spending; pricing actions; unanticipated disruptions to our business; competition; the restructuring program and our other transformation initiatives not yielding the anticipated benefits; changes in the assumptions on which the restructuring program is based; and tax law changes. Please also see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC, including our most recently filed Annual Report on Form 10-K. Mondelēz International disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.
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Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP and Non-GAAP Financial Measures
(Unaudited)
The company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP or referred to herein as Reported). However, management believes that certain non-GAAP financial measures should be considered when assessing the companys ongoing performance to provide more complete information on the factors and trends affecting the companys business. Management also uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the companys performance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the companys Reported results prepared in accordance with GAAP. In addition, the non-GAAP measures the company uses may differ from non-GAAP measures used by other companies. Because GAAP financial measures on a forward-looking basis are neither accessible nor deemed to be significantly different from the non-GAAP financial measures, and reconciling information is not available without unreasonable effort, the company has not provided that information with regard to the non-GAAP financial measures in the companys outlook.
DEFINITIONS OF THE COMPANYS NON-GAAP FINANCIAL MEASURES
The companys non-GAAP financial measures and corresponding metrics reflect how the company evaluates its operating results currently and provide improved comparability of operating results. As new events or circumstances arise, these definitions could change over time:
| Organic Net Revenue is defined as net revenues excluding the impacts of acquisitions, divestitures (1), the historical coffee business (2), Integration Program costs, accounting calendar changes and currency rate fluctuations. The company also evaluates Organic Net Revenue growth from emerging markets and its Power Brands. |
| Adjusted Gross Profit is defined as gross profit excluding the 2012-2014 Restructuring Program, the 2014-2018 Restructuring Program, the Integration Program and other acquisition integration costs, incremental costs associated with the coffee business transactions, the operating results of divestitures (1) and the historical coffee business operating results (2). The company also evaluates growth in the companys Adjusted Gross Profit on a constant currency basis. |
| Adjusted Operating Income and Adjusted Segment Operating Income are defined as operating income (or segment operating income) excluding the impacts of Spin-Off Costs, the 2012-2014 Restructuring Program, the 2014-2018 Restructuring Program, the Integration Program and other acquisition integration costs, the remeasurement of net monetary assets in Venezuela, the benefit from the Cadbury acquisition-related indemnification resolution, incremental costs associated with the coffee business transactions, impairment charges related to goodwill and intangible assets, gains or losses on divestitures (1) or acquisitions, |
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gain on the coffee business transactions, divestiture-related costs, acquisition-related costs, the operating results of divestitures (1), the historical global coffee business operating results (2) and equity method investment earnings historically reported within operating income (3). The company also evaluates growth in the companys Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis. |
| Adjusted EPS is defined as diluted EPS attributable to Mondelēz International from continuing operations excluding the impacts of Spin-Off Costs, the 2012-2014 Restructuring Program, the 2014-2018 Restructuring Program, the Integration Program and other acquisition integration costs, the remeasurement of net monetary assets in Venezuela, the net benefit from the Cadbury acquisition-related indemnification resolution, losses on debt extinguishment and related expenses, the residual tax benefit impact from the resolution of the Starbucks arbitration, hedging gains or losses and incremental costs associated with the coffee business transactions, impairment charges related to goodwill and intangible assets, gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans, gains or losses on divestitures (1) or acquisitions, gain on the coffee business transactions(2), divestiture-related costs, acquisition-related costs and net earnings from divestitures (1), and including an interest expense adjustment related to the Spin-Off transaction. In addition, the company has adjusted its equity method investment earnings for its proportionate share of unusual or infrequent items, such as acquisition and divestiture-related costs and restructuring program costs, recorded by the companys JDE equity method investee. The company also evaluates growth in the companys Adjusted EPS on a constant currency basis. |
| Free Cash Flow excluding items is defined as Free Cash Flow (net cash provided by operating activities less capital expenditures) excluding taxes paid on the Starbucks arbitration award and cash payments associated with accrued interest and other related fees due to the companys completion of a $2.5 billion cash tender offer for some of its outstanding long-term debt on March 20, 2015, and a $1.6 billion cash tender offer for some of its outstanding long-term debt on February 6, 2014. |
(1) | Divestitures include businesses under sale agreements for which the company has cleared significant sale-related conditions such that the pending sale is probable as of the end of the reporting period and exits of major product lines under a sale or licensing agreement. |
(2) | In connection with the coffee business transactions that closed on July 2, 2015, because the company exchanged its coffee interests for similarly-sized coffee interests in JDE (which, following the July 2, 2015 closing, is 43.5% of the companys historical and DEMBs combined global coffee businesses), the company has deconsolidated and not included its historical global coffee business results within divestitures in its non-GAAP financial measures. The company continues to have an ongoing interest in the coffee business. Beginning in the third quarter of 2015, the company has included the after-tax earnings of JDE and of its historical coffee business results within continuing results of operations. For Adjusted EPS, the company has included these earnings in equity method investment |
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earnings and has deconsolidated its historical coffee business results from Organic Net Revenue and Adjusted Operating Income to facilitate comparisons of past and future coffee operating results. |
(3) | Historically, the company has recorded income from equity method investments within its operating income as these investments operated as extensions of the companys base business. Beginning in the third quarter of 2015, the company began to record the earnings from its equity method investments in after-tax equity method investment earnings outside of operating income following the deconsolidation of its coffee business. In periods prior to July 2, 2015, the company has reclassified the equity method earnings from Adjusted Operating Income to after-tax equity method investment earnings within Adjusted EPS to be consistent with the deconsolidation of its coffee business results on July 2 and in order to evaluate its operating results on a consistent basis. |
See the attached schedules for supplemental financial data and corresponding reconciliations of the non-GAAP financial measures referred to above to the most comparable GAAP financial measures for the three and nine months ended September 30, 2015 and 2014.
SEGMENT OPERATING INCOME
The company uses segment operating income to evaluate segment performance and allocate resources. The company believes 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 or acquisitions, gain on the coffee business transactions, and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. The company excludes these items from segment operating income in order to provide better transparency of its segment operating results. Furthermore, the company centrally manages interest and other expense, net. Accordingly, the company does not present these items by segment because they are excluded from the segment profitability measure that management reviews.
ITEMS IMPACTING COMPARABILITY OF OPERATING RESULTS
The following information is provided to give qualitative and quantitative information related to items impacting comparability of operating results. The company determines which items to consider as items impacting comparability based on how management views the companys business; makes financial, operating and planning decisions; and evaluates the companys ongoing performance. In addition, the company discloses the impact of changes in currency exchange rates on the companys financial results in order to reflect results on a constant currency basis.
Divestitures
On April 23, 2015, the company completed the divestiture of its 50 percent interest in a Japanese coffee joint venture to its joint venture partner, which generated cash proceeds of 27 billion Japanese yen ($225 million as of April 23, 2015) and a pre-tax gain of $13 million (after-tax loss of $9 million). The company
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contributed to Jacobs Douwe Egberts the net cash proceeds from the sale of the interest. The company did not divest any businesses during the three months and nine months ended September 30, 2014.
Acquisitions and acquisition-related costs
On July 15, 2015, the company acquired an 80 percent interest in a biscuit operation in Vietnam, which is now a subsidiary within its Asia Pacific segment. The acquisition added $74 million in incremental net revenues, on a constant currency basis, for the three months and nine months ended September 30, 2015.
On February 16, 2015, the company also acquired a U.S. snacking company (Enjoy Life Foods) within its North America segment. The acquisition added incremental net revenues of $10 million for the three months and $25 million for the nine months ended September 30, 2015.
The company recorded acquisition-related costs of $6 million during the three months and $8 million during the nine months ended September 30, 2015, which were recorded in selling, general and administrative expenses.
Accounting Calendar Change
In connection with moving toward a common consolidation date across the company, in the first quarter of 2015, the company changed the consolidation date for the North America segment from the last Saturday of each period to the last calendar day of each period. As a result of this change, each of the companys operating subsidiaries now reports results as of the last calendar day of the period. The change had a favorable impact on net revenues of $19 million for the three months and $58 million for the nine months ended September 30, 2015.
Integration Program and other acquisition integration costs
Integration Program costs
Integration Program costs are defined as the costs associated with combining the Mondelēz International and Cadbury businesses, and are separate from those costs associated with completing the acquisition. At the end of 2013, the company completed incurring charges related to the Integration Program. The company recorded reversals related to the Integration Program of $1 million in the three months and $4 million in the nine months ended September 30, 2014 related to accruals no longer required.
Other acquisition integration costs
Within the companys Asia Pacific segment, in connection with the July 2015 acquisition of a biscuit operation in Vietnam, the company recorded integration costs of $4 million for the three months and $5 million for the nine months ended September 30, 2015. Within the companys EEMEA segment, in
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connection with the February 2013 acquisition of a biscuit operation in Morocco, the company recorded integration costs of $1 million for the nine months ended September 30, 2014. The company recorded these acquisition integration costs in selling, general and administrative expenses.
Spin-Off Costs
On October 1, 2012, the company completed the Spin-Off of its North American grocery business, Kraft Foods Group, Inc. (Kraft Foods Group), to its shareholders (the Spin-Off). Historically the company has incurred Spin-Off transaction, transition and financing and related costs (Spin-Off Costs) in its operating results. In 2014, the company concluded its Spin-Off transition plans. Within selling, general and administrative expenses, the company recorded pre-tax Spin-Off Costs of $4 million in the three months and $23 million in the nine months ended September 30, 2014.
2012-2014 Restructuring Program
In 2012, the companys Board of Directors approved $1.5 billion of restructuring and related implementation costs (2012-2014 Restructuring Program) reflecting primarily severance, asset disposals and other manufacturing-related one-time costs. The primary objective of the restructuring and implementation activities was to ensure that Mondelēz International and Kraft Foods Group were each set up to operate efficiently and execute on their respective business strategies upon separation in the Spin-Off and in the future. Of the $1.5 billion of 2012-2014 Restructuring Program costs, the company retained approximately $925 million and Kraft Foods Group retained the balance of the program. Through the end of 2014, the company incurred total restructuring and related implementation charges of $899 million, and completed incurring planned charges on the 2012-2014 Restructuring Program.
Restructuring costs
The company recorded reversals to the restructuring charges of $3 million in the nine months ended September 30, 2015 related to accruals no longer required. The company recorded restructuring charges of $163 million in the three months and $259 million in the nine months ended September 30, 2014 within asset impairment and exit costs. These charges were related to asset write-downs (including accelerated depreciation and asset impairments), severance and other related costs.
Implementation costs
Implementation costs are directly attributable to restructuring activities; however, they do not qualify for accounting treatment as exit or disposal activities. The company recorded implementation costs of $23 million in the three months and $66 million in the nine months ended September 30, 2014. Implementation costs primarily include costs to reorganize the companys operations and facilities, the discontinuance of certain product lines and the incremental expenses related to the closure of facilities, replicating the companys information systems infrastructure and reorganizing costs related to the
12
companys sales function. The company recorded these costs within cost of sales and selling, general and administrative expenses.
Remeasurement of Venezuelan net monetary assets
As prescribed by U.S. GAAP for highly inflationary economies, the company has been accounting for the results of its Venezuelan subsidiaries using the U.S. dollar as the functional currency since January 1, 2010. On February 10, 2015, the Venezuelan government combined the SICAD I and SICAD II (SICAD) exchange rate mechanisms and, in addition, created a new market-based SIMADI rate, while retaining the 6.30 official rate for food and other essentials. The Venezuelan government also announced an opening SICAD auction rate of 12.00 bolivars to the U.S. dollar, which as of September 30, 2015 is the prevailing SICAD rate until the companys specific industry group auctions make U.S. dollars available at another offered SICAD rate. Based on the companys current sourcing of goods and services, the company believes the SICAD rate continues to be the most economically representative rate to use to value its net monetary assets and translate its operating results in Venezuela. In the first quarter of 2015, the company recognized an $11 million remeasurement loss reflecting an increase in the SICAD exchange rate from 11.50 to 12.00 bolivars to the U.S. dollar. While the remeasurement loss is non-deductible, a $1 million net tax benefit for 2015 was recognized due to a Venezuelan tax impact related to a local deduction for the loss on certain U.S. dollar denominated liabilities. As of September 30, 2015, the companys bolivar-denominated net monetary assets were approximately $352 million. The companys Venezuela net revenues were $315 million or 4.6% of consolidated net revenues for the three months and $834 million or 3.7% of consolidated net revenues for the nine months ended September 30, 2015.
During the nine months ended September 30, 2014, the company also recorded $161 million of currency remeasurement losses related to the devaluation of the companys net monetary assets in Venezuela at that time during the period.
The company continues to monitor and actively manage its investment and exposures in Venezuela. If any of the three-tier currency exchange rates, or the application of the rates to the companys business, were to change, the company would recognize additional currency losses or gains, which could be significant.
Loss on debt extinguishment and related costs
On March 20, 2015, the company completed a cash tender offer and retired $2.5 billion of its outstanding high coupon long-term debt. The company recorded, within interest and other expense, net, a pre-tax loss on debt extinguishment and related expenses of $713 million during the three months ended March 31, 2015, for the amount paid in excess of the carrying value of the debt and from recognizing unamortized discounts and deferred financing costs (including deferred cash flow hedges).
13
On February 6, 2014, the company completed a cash tender offer and retired $1.6 billion of its outstanding high coupon long-term debt. The company recorded, within interest and other expense, net, a pre-tax loss on debt extinguishment and related expenses of $495 million during the six months ended June 30, 2014 for the amount paid in excess of the carrying value of the debt and from recognizing unamortized discounts and deferred financing costs.
2014-2018 Restructuring Program
On May 6, 2014, the companys Board of Directors approved a $3.5 billion restructuring program, comprised of approximately $2.5 billion in cash costs and $1 billion in non-cash costs (2014-2018 Restructuring Program), and up to $2.2 billion of capital expenditures. The primary objective of the 2014-2018 Restructuring Program is to reduce the companys operating cost structure in both supply chain and overhead costs. The program is intended primarily to cover severance as well as asset disposals and other manufacturing-related one-time costs. The company expects to incur the majority of the programs charges in 2015 and 2016 and to complete the program by year-end 2018.
Restructuring costs
The company recorded restructuring charges of $146 million in the three months and $442 million in the nine months ended September 30, 2015 and $25 million in the three months and $26 million in the nine months ended September 30, 2014 within asset impairment and exit costs. These charges were for asset write-downs (including accelerated depreciation and asset impairments), severance and other related costs.
Implementation costs
Implementation costs are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. The company recorded implementation costs of $75 million in the three months and $185 million in the nine months ended September 30, 2015 and $42 million in the three months and $51 million in the nine months ended September 30, 2014. These costs primarily relate to reorganizing the companys operations and facilities in connection with its supply chain reinvention program and other identified productivity and cost saving initiatives. The costs include incremental expenses related to the closure of facilities, costs to terminate certain contracts and the simplification of the companys information systems. The company recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses.
Coffee business transactions
On July 2, 2015, the company completed transactions to combine the companys wholly owned coffee businesses (including the companys coffee portfolio in France) with those of D.E Master Blenders 1753 B.V. (DEMB) to create a new company, Jacobs Douwe Egberts (JDE). The company now holds a
14
43.5% equity interest in JDE and Acorn Holdings B.V., owner of DEMB, holds a 56.5% share. In connection with the transaction, the company recorded a preliminary pre-tax gain of $7.1 billion (or $6.9 billion after-taxes) on the contribution of its global coffee businesses during the three months ended September 30, 2015.
The consideration the company received to date for its coffee businesses consists of 3.8 billion of cash ($4.2 billion U.S. dollars as of July 2, 2015), a 43.5% equity interest in JDE and $1.1 billion in receivables related to estimated sales price adjustments and tax formation cost payments expected to be paid in mid-2016. During the third quarter, the company also recorded $283 million of cash and receivables related to the reimbursement of costs from JDE which the company incurred related to separating its coffee businesses. The cash and equity consideration the company received reflects an adjustment for the company retaining its interest in a Korea-based joint venture, Dongsuh Foods Corporation, which was part of the original transaction and valuation. During the second quarter of 2015, the company also completed the sale of its interest in a Japanese coffee joint venture, Ajinomoto General Foods, Inc. (AGF). In lieu of contributing its interest in the AGF joint venture to JDE, the company contributed the net cash proceeds from the sale, and the transaction did not change the consideration received for the companys global coffee businesses.
Additionally, we recorded currency related net gains of $29 million in the three months and $436 million in the nine months ended September 30, 2015 and $420 million in the three months and $413 million in the nine months ended September 30, 2014 due to currency exchange forward contracts related to the receipt of the coffee business transaction proceeds and the subsequent transfers of these funds to our subsidiaries, as detailed below. To lock in an expected pre-tax U.S. dollar value of approximately $5 billion related to the estimated 4 billion cash receipt upon closing, the company entered into currency exchange forward contracts beginning in May 2014, when the transaction was announced. The company recognized a $19 million gain on the final settlement of the forward contracts during the three months ended September 30, 2015 and a net gain of $405 million on these contracts during 2015. In 2014, the company recognized $420 million of gains in the three months and $413 million in the nine months ended September 30, 2014. The currency hedge gains and losses were recorded in interest and other expense / (income). Cumulatively over 2014 and through the final settlement of the forward contracts on July 6, 2015, the company realized aggregate net gains and received cash of approximately $1.0 billion on these currency exchange forward contracts. In addition to the receipt of $4.2 billion cash consideration to date, the company received $1 billion of cash from realized hedges for a total of $5.2 billion of cash received to date related to the coffee business transactions.
During the second quarter of 2015, the company entered into currency exchange forward contracts to hedge a portion of the cash payments to be made to its subsidiaries in multiple countries where coffee
15
net assets and shares were deconsolidated. During July 2015, the company settled these forward contracts with a notional value of 1.6 billion and realized a net loss of $4 million in the three months ended and a net gain of $17 million in the nine months ended September 30, 2015. In connection with transferring the funds to its subsidiaries that deconsolidated net assets and shares, the company incurred additional currency gains of $14 million in the third quarter. These currency-related gains and losses were recorded within interest and other expense / (income).
The company has also incurred incremental expenses related to readying its coffee businesses for the transactions that totaled $54 million in the three months and $239 million in the nine months ended September 30, 2015, and $10 million in the three months and $15 million in the nine months ended September 30, 2014. These expenses were recorded within asset impairment and exit costs and selling, general and administrative expenses of primarily the companys Europe and EEMEA segments and within general corporate expenses.
Reclassification of historical coffee business net revenues, operating income and net earnings
The company removed its historical coffee business operating results from its historical Organic Net Revenue and Adjusted Operating Income and reclassified historical coffee business after-tax earnings to equity method investment earnings to facilitate comparisons of past and future operating results and net earnings.
Reclassification of equity method investment earnings
Historically, the company has recorded income from equity method investments within operating income as these investments operated as extensions of its base business. Beginning in the third quarter of 2015, to align with the accounting for JDE earnings, the company began reclassifying the earnings from DSF and these other entities from operating income to after-tax equity method investment earnings outside of segment operating income. For the companys historical Adjusted Operating Income results, the company has reclassified the equity method investment earnings from Adjusted Operating Income to equity method investment earnings in all historical periods presented.
Equity method investee adjustments
The company adjusts its equity method investment earnings for its proportionate share of unusual or infrequent items, such as acquisition and divestiture-related costs and restructuring program costs, recorded by the companys JDE equity method investee.
Loss related to interest rate swaps
During the three months ended March 31, 2015, the company recognized a pre-tax loss of $34 million within interest and other expense, net related to certain U.S. dollar interest rate swaps that the
16
company no longer designated as accounting cash flow hedges due to a change in financing and hedging plans. In the first quarter, the companys plans to issue U.S. dollar debt changed and the company issued euro, British pound sterling and Swiss franc-denominated notes due to lower overall cost and its decision to hedge a greater portion of its net investments in operations that use these currencies as their functional currencies.
Constant currency
Management evaluates the operating performance of the company and its international subsidiaries on a constant currency basis. The company determines its constant currency operating results by dividing or multiplying, as appropriate, the current period local currency operating results by the currency exchange rates used to translate the companys financial statements in the comparable prior year period to determine what the current period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior year period.
17
Schedule 1
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions of U.S. dollars, except per share data) (Unaudited)
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||||||||||||
2015 | 2014 | % Change Fav / (Unfav) |
2015 | 2014 | % Change Fav / (Unfav) |
|||||||||||||||||||||
Net revenues |
$ | 6,849 | $ | 8,337 | (17.8 | )% | $ | 22,272 | $ | 25,414 | (12.4 | )% | ||||||||||||||
Cost of sales |
4,179 | 5,195 | 19.6 | % | 13,595 | 15,963 | 14.8 | % | ||||||||||||||||||
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|
|
|
|
|
|
|||||||||||||||||||
Gross profit |
2,670 | 3,142 | (15.0 | )% | 8,677 | 9,451 | (8.2 | )% | ||||||||||||||||||
Gross profit margin |
39.0 | % | 37.7 | % | 39.0 | % | 37.2 | % | ||||||||||||||||||
Selling, general and administrative expenses |
1,790 | 2,053 | 12.8 | % | 5,675 | 6,356 | 10.7 | % | ||||||||||||||||||
Asset impairment and exit costs |
155 | 188 | 17.6 | % | 546 | 285 | (91.6 | )% | ||||||||||||||||||
Gain on coffee business transactions and divestitures |
(7,122 | ) | | 100.0 | % | (7,135 | ) | | 100.0 | % | ||||||||||||||||
Amortization of intangibles |
45 | 48 | 6.3 | % | 137 | 157 | 12.7 | % | ||||||||||||||||||
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|
|
|
|
|
|
|
|||||||||||||||||||
Operating income |
7,802 | 853 | 100.0+ | % | 9,454 | 2,653 | 100.0+ | % | ||||||||||||||||||
Operating income margin |
113.9 | % | 10.2 | % | 42.4 | % | 10.4 | % | ||||||||||||||||||
Interest and other expense / (income) |
114 | (227 | ) | (100.0+ | )% | 814 | 717 | (13.5 | )% | |||||||||||||||||
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|
|
|
|
|
|
|
|||||||||||||||||||
Earnings before income taxes |
7,688 | 1,080 | 100.0+ | % | 8,640 | 1,936 | 100.0+ | % | ||||||||||||||||||
Provision / (benefit) for income taxes |
348 | 178 | (95.5 | )% | 561 | 242 | (100.0+ | )% | ||||||||||||||||||
Effective tax rate |
4.5 | % | 16.5 | % | 6.5 | % | 12.5 | % | ||||||||||||||||||
Equity method investment net losses |
72 | | (100.0 | )% | 72 | | (100.0 | )% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
Net earnings |
7,268 | 902 | 100.0+ | % | 8,007 | 1,694 | 100.0+ | % | ||||||||||||||||||
Noncontrolling interest |
2 | 3 | 33.3 | % | 11 | 10 | (10.0 | )% | ||||||||||||||||||
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|
|
|
|||||||||||||||||||
Net earnings attributable to Mondelēz International |
$ | 7,266 | $ | 899 | 100.0+ | % | $ | 7,996 | $ | 1,684 | 100.0+ | % | ||||||||||||||
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|
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Per share data: |
||||||||||||||||||||||||||
Basic earnings per share attributable to Mondelēz International |
$ | 4.52 | $ | 0.53 | 100.0+ | % | $ | 4.91 | $ | 0.99 | 100.0+ | % | ||||||||||||||
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|
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Diluted earnings per share attributable to Mondelēz International |
$ | 4.46 | $ | 0.53 | 100.0+ | % | $ | 4.86 | $ | 0.98 | 100.0+ | % | ||||||||||||||
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|
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Average shares outstanding: |
||||||||||||||||||||||||||
Basic |
1,609 | 1,688 | 4.7 | % | 1,627 | 1,695 | 4.0 | % | ||||||||||||||||||
Diluted |
1,629 | 1,705 | 4.5 | % | 1,646 | 1,713 | 3.9 | % |
1
Schedule 2
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of U.S. dollars) (Unaudited)
September 30, 2015 |
December 31, 2014 |
September 30, 2014 |
||||||||||
ASSETS |
||||||||||||
Cash and cash equivalents |
$ | 2,039 | $ | 1,631 | $ | 1,619 | ||||||
Trade receivables, net |
3,352 | 3,802 | 4,406 | |||||||||
Other receivables, net |
2,566 | 949 | 946 | |||||||||
Inventories, net |
3,029 | 3,480 | 4,122 | |||||||||
Deferred income taxes |
550 | 480 | 433 | |||||||||
Other current assets |
638 | 1,408 | 1,235 | |||||||||
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|
|
|
|
|
|||||||
Total current assets |
12,174 | 11,750 | 12,761 | |||||||||
Property, plant and equipment, net |
8,564 | 9,827 | 10,152 | |||||||||
Goodwill |
20,963 | 23,389 | 24,399 | |||||||||
Intangible assets, net |
19,115 | 20,335 | 21,110 | |||||||||
Prepaid pension assets |
42 | 53 | 65 | |||||||||
Equity method investments |
4,895 | 662 | 663 | |||||||||
Other assets |
637 | 799 | 732 | |||||||||
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|
|
|
|
|||||||
TOTAL ASSETS |
$ | 66,390 | $ | 66,815 | $ | 69,882 | ||||||
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|
|
|
|||||||
LIABILITIES AND EQUITY |
||||||||||||
Short-term borrowings |
$ | 1,571 | $ | 1,305 | $ | 1,722 | ||||||
Current portion of long-term debt |
1,759 | 1,530 | 2,084 | |||||||||
Accounts payable |
4,875 | 5,299 | 5,184 | |||||||||
Accrued marketing |
1,563 | 2,047 | 1,920 | |||||||||
Accrued employment costs |
932 | 946 | 990 | |||||||||
Other current liabilities |
2,937 | 2,880 | 2,630 | |||||||||
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|
|
|
|
|
|||||||
Total current liabilities |
13,637 | 14,007 | 14,530 | |||||||||
Long-term debt |
13,029 | 13,865 | 13,988 | |||||||||
Deferred income taxes |
5,137 | 5,512 | 5,753 | |||||||||
Accrued pension costs |
2,132 | 2,912 | 1,826 | |||||||||
Accrued postretirement health care costs |
541 | 526 | 439 | |||||||||
Other liabilities |
1,962 | 2,140 | 2,390 | |||||||||
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|
|
|
|
|||||||
TOTAL LIABILITIES |
36,438 | 38,962 | 38,926 | |||||||||
TOTAL EQUITY |
29,952 | 27,853 | 30,956 | |||||||||
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|
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|
|||||||
TOTAL LIABILITIES AND EQUITY |
$ | 66,390 | $ | 66,815 | $ | 69,882 | ||||||
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|
|||||||
September 30, 2015 |
December 31, 2014 |
Incr/(Decr) | ||||||||||
Short-term borrowings |
$ | 1,571 | $ | 1,305 | $ | 266 | ||||||
Current portion of long-term debt |
1,759 | 1,530 | 229 | |||||||||
Long-term debt |
13,029 | 13,865 | (836 | ) | ||||||||
|
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|
|
|
|
|||||||
Total Debt |
16,359 | 16,700 | (341 | ) | ||||||||
Cash and cash equivalents |
2,039 | 1,631 | 408 | |||||||||
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|
|
|
|
|||||||
Net Debt (1) |
$ | 14,320 | $ | 15,069 | $ | (749 | ) | |||||
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|
(1) | Net debt is defined as total debt, which includes short-term borrowings, current portion of long-term debt and long-term debt, less cash and cash equivalents. |
2
Schedule 3
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions of U.S. dollars)
(Unaudited)
For the Nine Months Ended September 30, |
||||||||
2015 | 2014 | |||||||
CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES |
||||||||
Net earnings |
$ | 8,007 | $ | 1,694 | ||||
Adjustments to reconcile net earnings to operating cash flows: |
||||||||
Depreciation and amortization |
663 | 797 | ||||||
Stock-based compensation expense |
98 | 104 | ||||||
Deferred income tax benefit |
(81 | ) | (255 | ) | ||||
Asset impairments |
195 | 77 | ||||||
Loss on early extinguishment of debt |
708 | 493 | ||||||
Gains on coffee business transactions and divestiture |
(7,135 | ) | | |||||
Coffee business transactions currency-related net gains |
(436 | ) | (413 | ) | ||||
Loss/(income) from equity method investments |
16 | (83 | ) | |||||
Distributions from equity method investments |
58 | 61 | ||||||
Other non-cash items, net |
142 | (6 | ) | |||||
Change in assets and liabilities, net of acquisition and divestitures: |
||||||||
Receivables, net |
(868 | ) | (163 | ) | ||||
Inventories, net |
(314 | ) | (625 | ) | ||||
Accounts payable |
496 | 19 | ||||||
Other current assets |
36 | (106 | ) | |||||
Other current liabilities |
11 | (430 | ) | |||||
Change in pension and postretirement assets and liabilities, net |
(184 | ) | (15 | ) | ||||
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|
|
|||||
Net cash provided by operating activities |
1,412 | 1,149 | ||||||
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|
|
|||||
CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES |
||||||||
Capital expenditures |
(1,178 | ) | (1,129 | ) | ||||
Proceeds from coffee business transactions and divestitures, net of disbursements |
4,091 | | ||||||
Proceeds from coffee business transactions currency hedge settlements |
1,050 | | ||||||
Acquisitions, net of cash received |
(536 | ) | | |||||
Proceeds from sale of property, plant and equipment and other |
33 | 29 | ||||||
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|
|
|
|||||
Net cash provided by / (used in) investing activities |
3,460 | (1,100 | ) | |||||
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|
|||||
CASH PROVIDED BY / (USED IN) FINANCING ACTIVITIES |
||||||||
Issuances of commercial paper, maturities greater than 90 days |
613 | 1,986 | ||||||
Repayments of commercial paper, maturities greater than 90 days |
(710 | ) | (2,072 | ) | ||||
Net issuances of other short-term borrowings |
396 | 236 | ||||||
Long-term debt proceeds |
3,606 | 3,032 | ||||||
Long-term debt repaid |
(4,543 | ) | (2,524 | ) | ||||
Repurchase of Common Stock |
(3,003 | ) | (1,020 | ) | ||||
Dividends paid |
(736 | ) | (713 | ) | ||||
Other |
107 | 163 | ||||||
|
|
|
|
|||||
Net cash used in financing activities |
(4,270 | ) | (912 | ) | ||||
|
|
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents |
(194 | ) | (140 | ) | ||||
|
|
|
|
|||||
Cash and cash equivalents: |
||||||||
Increase / (decrease) |
408 | (1,003 | ) | |||||
Balance at beginning of period |
1,631 | 2,622 | ||||||
|
|
|
|
|||||
Balance at end of period |
$ | 2,039 | $ | 1,619 | ||||
|
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|
|
3
Schedule 4a
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Net Revenues
(in millions of U.S. dollars) (Unaudited)
Latin America | Asia Pacific | EEMEA | Europe | North America | Mondelēz International |
|||||||||||||||||||
For the Three Months Ended September 30, 2015 |
||||||||||||||||||||||||
Reported (GAAP) |
$ | 1,233 | $ | 1,101 | $ | 586 | $ | 2,173 | $ | 1,756 | $ | 6,849 | ||||||||||||
Historical coffee business |
| | | | | | ||||||||||||||||||
Acquisitions |
| (74 | ) | | | (10 | ) | (84 | ) | |||||||||||||||
Accounting calendar change |
| | | | (19 | ) | (19 | ) | ||||||||||||||||
Currency |
311 | 145 | 185 | 331 | 43 | 1,015 | ||||||||||||||||||
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|
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Organic (Non-GAAP) |
$ | 1,544 | $ | 1,172 | $ | 771 | $ | 2,504 | $ | 1,770 | $ | 7,761 | ||||||||||||
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|
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For the Three Months Ended September 30, 2014 |
||||||||||||||||||||||||
Reported (GAAP) |
$ | 1,315 | $ | 1,153 | $ | 894 | $ | 3,215 | $ | 1,760 | $ | 8,337 | ||||||||||||
Historical coffee business |
| (16 | ) | (169 | ) | (670 | ) | | (855 | ) | ||||||||||||||
Acquisitions |
| | | | | | ||||||||||||||||||
Accounting calendar change |
| | | | | | ||||||||||||||||||
Currency |
| | | | | | ||||||||||||||||||
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|
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Organic (Non-GAAP) |
$ | 1,315 | $ | 1,137 | $ | 725 | $ | 2,545 | $ | 1,760 | $ | 7,482 | ||||||||||||
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% Change |
||||||||||||||||||||||||
Reported (GAAP) |
(6.2 | )% | (4.5 | )% | (34.5 | )% | (32.4 | )% | (0.2 | )% | (17.8 | )% | ||||||||||||
Historical coffee business |
| pp | 1.3 | pp | 15.3 | pp | 17.8 | pp | | pp | 9.3 | pp | ||||||||||||
Acquisitions |
| (6.5 | ) | | | (0.6 | ) | (1.1 | ) | |||||||||||||||
Accounting calendar change |
| | | | (1.0 | ) | (0.3 | ) | ||||||||||||||||
Currency |
23.6 | 12.8 | 25.5 | 13.0 | 2.4 | 13.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Organic (Non-GAAP) |
17.4 | % | 3.1 | % | 6.3 | % | (1.6 | )% | 0.6 | % | 3.7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Vol/Mix |
(10.0 | )pp | (2.4 | )pp | (7.5 | )pp | (2.4 | )pp | 0.2 | pp | (3.7 | )pp | ||||||||||||
Pricing |
27.4 | 5.5 | 13.8 | 0.8 | 0.4 | 7.4 | ||||||||||||||||||
Latin America | Asia Pacific | EEMEA | Europe | North America | Mondelēz International |
|||||||||||||||||||
For the Nine Months Ended September 30, 2015 |
||||||||||||||||||||||||
Reported (GAAP) |
$ | 3,730 | $ | 3,278 | $ | 2,150 | $ | 7,963 | $ | 5,151 | $ | 22,272 | ||||||||||||
Historical coffee business |
| (33 | ) | (246 | ) | (1,348 | ) | | (1,627 | ) | ||||||||||||||
Acquisitions |
| (74 | ) | | | (25 | ) | (99 | ) | |||||||||||||||
Accounting calendar change |
| | | | (58 | ) | (58 | ) | ||||||||||||||||
Currency |
913 | 310 | 480 | 1,185 | 93 | 2,981 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Organic (Non-GAAP) |
$ | 4,643 | $ | 3,481 | $ | 2,384 | $ | 7,800 | $ | 5,161 | $ | 23,469 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
For the Nine Months Ended September 30, 2014 |
||||||||||||||||||||||||
Reported (GAAP) |
$ | 3,913 | $ | 3,460 | $ | 2,740 | $ | 10,151 | $ | 5,150 | $ | 25,414 | ||||||||||||
Historical coffee business |
(2 | ) | (43 | ) | (496 | ) | (2,172 | ) | | (2,713 | ) | |||||||||||||
Acquisitions |
| | | | | | ||||||||||||||||||
Accounting calendar change |
| | | | | | ||||||||||||||||||
Currency |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Organic (Non-GAAP) |
$ | 3,911 | $ | 3,417 | $ | 2,244 | $ | 7,979 | $ | 5,150 | $ | 22,701 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
% Change |
||||||||||||||||||||||||
Reported (GAAP) |
(4.7 | )% | (5.3 | )% | (21.5 | )% | (21.6 | )% | | (12.4 | )% | |||||||||||||
Historical coffee business |
0.1 | pp | 0.3 | pp | 6.3 | pp | 4.5 | pp | | pp | 3.3 | pp | ||||||||||||
Acquisitions |
| (2.1 | ) | | | (0.5 | ) | (0.5 | ) | |||||||||||||||
Accounting calendar change |
| | | | (1.1 | ) | (0.2 | ) | ||||||||||||||||
Currency |
23.3 | 9.0 | 21.4 | 14.9 | 1.8 | 13.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Organic (Non-GAAP) |
18.7 | % | 1.9 | % | 6.2 | % | (2.2 | )% | 0.2 | % | 3.4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Vol/Mix |
(6.7 | )pp | (2.5 | )pp | (4.3 | )pp | (3.2 | )pp | 0.1 | pp | (3.0 | )pp | ||||||||||||
Pricing |
25.4 | 4.4 | 10.5 | 1.0 | 0.1 | 6.4 |
4
Schedule 4b
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Net Revenues - Power Brands and Emerging Markets
(in millions of U.S. dollars) (Unaudited)
Power Brands |
Non-Power Brands |
Mondelēz International |
Emerging markets |
Developed markets |
Mondelēz International |
|||||||||||||||||||||
For the Three Months Ended September 30, 2015 |
||||||||||||||||||||||||||
Reported (GAAP) |
$ | 4,594 | $ | 2,255 | $ | 6,849 | $ | 2,742 | $ | 4,107 | $ | 6,849 | ||||||||||||||
Historical coffee business |
| | | | | | ||||||||||||||||||||
Acquisitions |
| (84 | ) | (84 | ) | (74 | ) | (10 | ) | (84 | ) | |||||||||||||||
Accounting calendar change |
(15 | ) | (4 | ) | (19 | ) | | (19 | ) | (19 | ) | |||||||||||||||
Currency |
685 | 330 | 1,015 | 579 | 436 | 1,015 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Organic (Non-GAAP) |
$ | 5,264 | $ | 2,497 | $ | 7,761 | $ | 3,247 | $ | 4,514 | $ | 7,761 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
For the Three Months Ended September 30, 2014 |
||||||||||||||||||||||||||
Reported (GAAP) |
$ | 5,618 | $ | 2,719 | $ | 8,337 | $ | 3,205 | $ | 5,132 | $ | 8,337 | ||||||||||||||
Historical coffee business |
(611 | ) | (244 | ) | (855 | ) | (260 | ) | (595 | ) | (855 | ) | ||||||||||||||
Accounting calendar change |
| | | | | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Organic (Non-GAAP) |
$ | 5,007 | $ | 2,475 | $ | 7,482 | $ | 2,945 | $ | 4,537 | $ | 7,482 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
% Change |
||||||||||||||||||||||||||
Reported (GAAP) |
(18.2 | )% | (17.1 | )% | (17.8 | )% | (14.4 | )% | (20.0 | )% | (17.8 | )% | ||||||||||||||
Historical coffee business |
10.0 | pp | 8.2 | pp | 9.3 | pp | 7.5 | pp | 10.5 | pp | 9.3 | pp | ||||||||||||||
Acquisitions |
| (3.4 | ) | (1.1 | ) | (2.5 | ) | (0.2 | ) | (1.1 | ) | |||||||||||||||
Accounting calendar change |
(0.3 | ) | (0.1 | ) | (0.3 | ) | | (0.4 | ) | (0.3 | ) | |||||||||||||||
Currency |
13.6 | 13.3 | 13.6 | 19.7 | 9.6 | 13.6 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Organic (Non-GAAP) |
5.1 | % | 0.9 | % | 3.7 | % | 10.3 | % | (0.5 | )% | 3.7 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Power Brands |
Non-Power Brands |
Mondelēz International |
Emerging markets |
Developed markets |
Mondelēz International |
|||||||||||||||||||||
For the Nine Months Ended September 30, 2015 |
||||||||||||||||||||||||||
Reported (GAAP) |
$ | 15,243 | $ | 7,029 | $ | 22,272 | $ | 8,754 | $ | 13,518 | $ | 22,272 | ||||||||||||||
Historical coffee business |
(1,179 | ) | (448 | ) | (1,627 | ) | (442 | ) | (1,185 | ) | (1,627 | ) | ||||||||||||||
Acquisitions |
| (99 | ) | (99 | ) | (74 | ) | (25 | ) | (99 | ) | |||||||||||||||
Accounting calendar change |
(45 | ) | (13 | ) | (58 | ) | | (58 | ) | (58 | ) | |||||||||||||||
Currency |
2,000 | 981 | 2,981 | 1,603 | 1,378 | 2,981 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Organic (Non-GAAP) |
$ | 16,019 | $ | 7,450 | $ | 23,469 | $ | 9,841 | $ | 13,628 | $ | 23,469 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
For the Nine Months Ended September 30, 2014 |
||||||||||||||||||||||||||
Reported (GAAP) |
$ | 17,156 | $ | 8,258 | $ | 25,414 | $ | 9,762 | $ | 15,652 | $ | 25,414 | ||||||||||||||
Historical coffee business |
(1,946 | ) | (767 | ) | (2,713 | ) | (816 | ) | (1,897 | ) | (2,713 | ) | ||||||||||||||
Accounting calendar change |
| | | | | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Organic (Non-GAAP) |
$ | 15,210 | $ | 7,491 | $ | 22,701 | $ | 8,946 | $ | 13,755 | $ | 22,701 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
% Change |
||||||||||||||||||||||||||
Reported (GAAP) |
(11.1 | )% | (14.9 | )% | (12.4 | )% | (10.3 | )% | (13.6 | )% | (12.4 | )% | ||||||||||||||
Historical coffee business |
3.6 | pp | 2.8 | pp | 3.3 | pp | 3.2 | pp | 3.3 | pp | 3.3 | pp | ||||||||||||||
Acquisitions |
| (1.3 | ) | (0.5 | ) | (0.8 | ) | (0.2 | ) | (0.5 | ) | |||||||||||||||
Accounting calendar change |
(0.3 | ) | (0.1 | ) | (0.2 | ) | | (0.4 | ) | (0.2 | ) | |||||||||||||||
Currency |
13.1 | 13.0 | 13.2 | 17.9 | 10.0 | 13.2 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Organic (Non-GAAP) |
5.3 | % | (0.5 | )% | 3.4 | % | 10.0 | % | (0.9 | )% | 3.4 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
5
Schedule 5a
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Gross Profit / Operating Income
(in millions of U.S. dollars) (Unaudited)
For the Three Months Ended September 30, 2015 | ||||||||||||||||||||
Net Revenues |
Gross Profit |
Gross Profit Margin |
Operating Income |
Operating Income margin |
||||||||||||||||
Reported (GAAP) |
$ | 6,849 | $ | 2,670 | 39.0 | % | $ | 7,802 | 113.9 | % | ||||||||||
2012-2014 Restructuring Program costs |
| | | |||||||||||||||||
2014-2018 Restructuring Program costs |
| 9 | 221 | |||||||||||||||||
Integration Program and other acquisition integration costs |
| | 4 | |||||||||||||||||
Costs associated with the coffee business transactions |
| | 54 | |||||||||||||||||
Gain on the coffee business transactions |
| | (7,122 | ) | ||||||||||||||||
Acquisition-related costs |
| | 6 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Adjusted (Non-GAAP) |
$ | 6,849 | $ | 2,679 | 39.1 | % | $ | 965 | 14.1 | % | ||||||||||
|
|
|||||||||||||||||||
Currency |
363 | 131 | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Adjusted @ Constant FX (Non-GAAP) |
$ | 3,042 | $ | 1,096 | ||||||||||||||||
|
|
|
|
|||||||||||||||||
For the Three Months Ended September 30, 2014 | ||||||||||||||||||||
Net Revenues |
Gross Profit |
Gross Profit Margin |
Operating Income |
Operating Income margin |
||||||||||||||||
Reported (GAAP) |
$ | 8,337 | $ | 3,142 | 37.7 | % | $ | 853 | 10.2 | % | ||||||||||
Spin-Off Costs |
| | 4 | |||||||||||||||||
2012-2014 Restructuring Program costs |
| 3 | 186 | |||||||||||||||||
2014-2018 Restructuring Program costs |
| 1 | 67 | |||||||||||||||||
Integration Program and other acquisition integration costs |
| | (1 | ) | ||||||||||||||||
Remeasurement of net monetary assets in Venezuela |
| | 19 | |||||||||||||||||
Costs associated with the coffee business transactions |
| | 10 | |||||||||||||||||
Operating income from historical coffee business |
(855 | ) | (356 | ) | (184 | ) | ||||||||||||||
Operating income from divestiture |
| | (1 | ) | ||||||||||||||||
Reclassification of equity method investment earnings |
| | (22 | ) | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Adjusted (Non-GAAP) |
$ | 7,482 | $ | 2,790 | 37.3 | % | $ | 931 | 12.4 | % | ||||||||||
|
|
|||||||||||||||||||
Currency |
| | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Adjusted @ Constant FX (Non-GAAP) |
$ | 2,790 | $ | 931 | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Gross Profit |
Operating Income |
|||||||||||||||||||
% Change - Reported (GAAP) |
(15.0 | )% | 814.7 | % | ||||||||||||||||
% Change - Adjusted (Non-GAAP) |
(4.0 | )% | 3.7 | % | ||||||||||||||||
% Change - Adjusted @ Constant FX (Non-GAAP) |
9.0 | % | 17.7 | % |
6
Schedule 5b
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Gross Profit / Operating Income
(in millions of U.S. dollars) (Unaudited)
For the Nine Months Ended September 30, 2015 | ||||||||||||||||||||
Net Revenues |
Gross Profit |
Gross Profit Margin |
Operating Income |
Operating Income margin |
||||||||||||||||
Reported (GAAP) |
$ | 22,272 | $ | 8,677 | 39.0 | % | $ | 9,454 | 42.4 | % | ||||||||||
2012-2014 Restructuring Program costs |
| | (3 | ) | ||||||||||||||||
2014-2018 Restructuring Program costs |
| 21 | 627 | |||||||||||||||||
Integration Program and other acquisition integration costs |
| | 5 | |||||||||||||||||
Remeasurement of net monetary assets in Venezuela |
| | 11 | |||||||||||||||||
Costs associated with the coffee business transactions |
| 3 | 239 | |||||||||||||||||
Operating income from historical coffee business |
(1,627 | ) | (673 | ) | (342 | ) | ||||||||||||||
Gain on the coffee business transactions |
| | (7,122 | ) | ||||||||||||||||
Operating income from divestiture |
| | (5 | ) | ||||||||||||||||
Gain on divestiture |
| | (13 | ) | ||||||||||||||||
Acquisition-related costs |
| | 8 | |||||||||||||||||
Reclassification of equity method investment earnings |
| | (51 | ) | ||||||||||||||||
Rounding |
| | 1 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Adjusted (Non-GAAP) |
$ | 20,645 | $ | 8,028 | 38.9 | % | $ | 2,809 | 13.6 | % | ||||||||||
|
|
|||||||||||||||||||
Currency |
1,078 | 402 | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Adjusted @ Constant FX (Non-GAAP) |
$ | 9,106 | $ | 3,211 | ||||||||||||||||
|
|
|
|
|||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Net Revenues |
Gross Profit |
Gross Profit Margin |
Operating Income |
Operating Income margin |
||||||||||||||||
Reported (GAAP) |
$ | 25,414 | $ | 9,451 | 37.2 | % | $ | 2,653 | 10.4 | % | ||||||||||
Spin-Off Costs |
| | 23 | |||||||||||||||||
2012-2014 Restructuring Program costs |
| 9 | 325 | |||||||||||||||||
2014-2018 Restructuring Program costs |
| 1 | 77 | |||||||||||||||||
Integration Program and other acquisition integration costs |
| | (3 | ) | ||||||||||||||||
Remeasurement of net monetary assets in Venezuela |
| | 161 | |||||||||||||||||
Costs associated with the coffee business transactions |
| | 15 | |||||||||||||||||
Operating income from historical coffee business |
(2,713 | ) | (1,106 | ) | (494 | ) | ||||||||||||||
Operating income from divestiture |
| | (4 | ) | ||||||||||||||||
Reclassification of equity method investment earnings |
| | (79 | ) | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Adjusted (Non-GAAP) |
$ | 22,701 | $ | 8,355 | 36.8 | % | $ | 2,674 | 11.8 | % | ||||||||||
|
|
|||||||||||||||||||
Currency |
| | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Adjusted @ Constant FX (Non-GAAP) |
$ | 8,355 | $ | 2,674 | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Gross Profit |
Operating Income |
|||||||||||||||||||
% Change - Reported (GAAP) |
(8.2 | )% | 256.4 | % | ||||||||||||||||
% Change - Adjusted (Non-GAAP) |
(3.9 | )% | 5.0 | % | ||||||||||||||||
% Change - Adjusted @ Constant FX (Non-GAAP) |
9.0 | % | 20.1 | % |
7
Schedule 6a
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Condensed Consolidated Statements of Earnings
(in millions of U.S. dollars, except per share data) (Unaudited)
For the Three Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||||||||
Operating Income |
Interest and other expense / (income) |
Earnings before taxes |
Income taxes |
Effective tax rate |
Equity Method Investment (Earnings) / Losses |
Non-controlling interest |
Net Earnings attributable to Mondelēz International |
Diluted EPS attributable to Mondelēz International |
||||||||||||||||||||||||||||
Reported (GAAP) |
$ | 7,802 | $ | 114 | $ | 7,688 | $ | 348 | 4.5 | % | $ | 72 | $ | 2 | $ | 7,266 | $ | 4.46 | ||||||||||||||||||
2014-2018 Restructuring Program costs |
221 | | 221 | 62 | | | 159 | 0.11 | ||||||||||||||||||||||||||||
Integration Program and other acquisition integration costs |
4 | | 4 | | | | 4 | | ||||||||||||||||||||||||||||
Income / (costs) associated with the coffee business transactions |
54 | 29 | 25 | (41 | ) | | | 66 | 0.04 | |||||||||||||||||||||||||||
Gain on the coffee business transactions |
(7,122 | ) | | (7,122 | ) | (197 | ) | | | (6,925 | ) | (4.25 | ) | |||||||||||||||||||||||
Acquisition-related costs |
6 | | 6 | | | | 6 | | ||||||||||||||||||||||||||||
Equity method investee adjustments |
| | | | (102 | ) | | 102 | 0.06 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Adjusted (Non-GAAP) |
$ | 965 | $ | 143 | $ | 822 | $ | 172 | 20.9 | % | $ | (30 | ) | $ | 2 | $ | 678 | $ | 0.42 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Diluted Average Shares Outstanding |
1,629 | |||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||
Operating Income |
Interest and other expense / (income) |
Earnings before taxes |
Income taxes |
Effective tax rate |
Equity Method Investment (Earnings) / Losses |
Non-controlling interest |
Net Earnings attributable to Mondelēz International |
Diluted EPS attributable to Mondelēz International |
||||||||||||||||||||||||||||
Reported (GAAP) |
$ | 853 | $ | (227 | ) | $ | 1,080 | $ | 178 | 16.5 | % | $ | | $ | 3 | $ | 899 | $ | 0.53 | |||||||||||||||||
Spin-Off Costs |
4 | | 4 | 2 | | | 2 | | ||||||||||||||||||||||||||||
2012-2014 Restructuring Program costs |
186 | | 186 | 39 | | | 147 | 0.08 | ||||||||||||||||||||||||||||
2014-2018 Restructuring Program costs |
67 | | 67 | 20 | | | 47 | 0.03 | ||||||||||||||||||||||||||||
Integration Program and other acquisition integration costs |
(1 | ) | | (1 | ) | | | | (1 | ) | | |||||||||||||||||||||||||
Remeasurement of net monetary assets in Venezuela |
19 | | 19 | 5 | | | 14 | 0.01 | ||||||||||||||||||||||||||||
Income / (costs) associated with the coffee business transactions |
10 | 420 | (410 | ) | (152 | ) | | | (258 | ) | (0.15 | ) | ||||||||||||||||||||||||
Reclassification of net earnings from coffee business |
(184 | ) | | (184 | ) | (26 | ) | (158 | ) | | | | ||||||||||||||||||||||||
Net earnings from divestiture |
(1 | ) | | (1 | ) | | | | (1 | ) | | |||||||||||||||||||||||||
Reclassification of equity method investment earnings |
(22 | ) | | (22 | ) | | (22 | ) | | | | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Adjusted (Non-GAAP) |
$ | 931 | $ | 193 | $ | 738 | $ | 66 | 8.9 | % | $ | (180 | ) | $ | 3 | $ | 849 | $ | 0.50 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Diluted Average Shares Outstanding |
1,705 |
8
Schedule 6b
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Condensed Consolidated Statements of Earnings
(in millions of U.S. dollars, except per share data) (Unaudited)
For the Nine Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||||||||
Operating Income |
Interest and other expense / (income) |
Earnings before taxes |
Income taxes |
Effective tax rate |
Equity Method Investment (Earnings) / Losses |
Non- controlling interest |
Net Earnings attributable to Mondelēz International |
Diluted EPS attributable to Mondelēz International |
||||||||||||||||||||||||||||
Reported (GAAP) |
$ | 9,454 | $ | 814 | $ | 8,640 | $ | 561 | 6.5 | % | $ | 72 | $ | 11 | $ | 7,996 | $ | 4.86 | ||||||||||||||||||
2012-2014 Restructuring Program costs |
(3 | ) | | (3 | ) | (1 | ) | | | (2 | ) | | ||||||||||||||||||||||||
2014-2018 Restructuring Program costs |
627 | | 627 | 158 | | | 469 | 0.29 | ||||||||||||||||||||||||||||
Integration Program and other acquisition integration costs |
5 | | 5 | | | | 5 | | ||||||||||||||||||||||||||||
Loss on debt extinguishment and related expenses |
| (713 | ) | 713 | 261 | | | 452 | 0.28 | |||||||||||||||||||||||||||
Remeasurement of net monetary assets in Venezuela |
11 | | 11 | 1 | | | 10 | 0.01 | ||||||||||||||||||||||||||||
Income / (costs) associated with the coffee business transactions |
239 | 436 | (197 | ) | (155 | ) | | | (42 | ) | (0.03 | ) | ||||||||||||||||||||||||
Loss related to interest rate swaps |
| (34 | ) | 34 | 13 | | | 21 | 0.01 | |||||||||||||||||||||||||||
Divestiture-related costs |
| (1 | ) | 1 | | | | 1 | | |||||||||||||||||||||||||||
Reclassification of net earnings from coffee business |
(342 | ) | | (342 | ) | (46 | ) | (296 | ) | | | | ||||||||||||||||||||||||
Gain on the coffee business transactions |
(7,122 | ) | | (7,122 | ) | (197 | ) | | | (6,925 | ) | (4.21 | ) | |||||||||||||||||||||||
Net earnings from divestiture |
(5 | ) | | (5 | ) | (32 | ) | | | 27 | 0.02 | |||||||||||||||||||||||||
Loss on divestiture |
(13 | ) | | (13 | ) | (22 | ) | | | 9 | 0.01 | |||||||||||||||||||||||||
Acquisition-related costs |
8 | | 8 | | | | 8 | | ||||||||||||||||||||||||||||
Reclassification of equity method investment earnings |
(51 | ) | | (51 | ) | | (51 | ) | | | | |||||||||||||||||||||||||
Equity method investee adjustments |
| | | | (102 | ) | | 102 | 0.06 | |||||||||||||||||||||||||||
Rounding |
1 | | 1 | | | | 1 | | ||||||||||||||||||||||||||||
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|||||||||||||||||||||
Adjusted (Non-GAAP) |
$ | 2,809 | $ | 502 | $ | 2,307 | $ | 541 | 23.5 | % | $ | (377 | ) | $ | 11 | $ | 2,132 | $ | 1.30 | |||||||||||||||||
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|
|||||||||||||||||||||
Diluted Average Shares Outstanding |
1,646 | |||||||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||
Operating Income |
Interest and other expense / (income) |
Earnings before taxes |
Income taxes |
Effective tax rate |
Equity Method Investment (Earnings) / Losses |
Non- controlling interest |
Net Earnings attributable to Mondelēz International |
Diluted EPS attributable to Mondelēz International |
||||||||||||||||||||||||||||
Reported (GAAP) |
$ | 2,653 | $ | 717 | $ | 1,936 | $ | 242 | 12.5 | % | $ | | $ | 10 | $ | 1,684 | $ | 0.98 | ||||||||||||||||||
Spin-Off Costs |
23 | | 23 | 9 | | | 14 | 0.01 | ||||||||||||||||||||||||||||
2012-2014 Restructuring Program costs |
325 | | 325 | 72 | | | 253 | 0.15 | ||||||||||||||||||||||||||||
2014-2018 Restructuring Program costs |
77 | | 77 | 23 | | | 54 | 0.03 | ||||||||||||||||||||||||||||
Integration Program and other acquisition integration costs |
(3 | ) | | (3 | ) | | | | (3 | ) | | |||||||||||||||||||||||||
Loss on debt extinguishment and related expenses |
| (495 | ) | 495 | 188 | | | 307 | 0.18 | |||||||||||||||||||||||||||
Remeasurement of net monetary assets in Venezuela |
161 | | 161 | 11 | | | 150 | 0.09 | ||||||||||||||||||||||||||||
Income / (costs) associated with the coffee business transactions |
15 | 413 | (398 | ) | (149 | ) | | | (249 | ) | (0.15 | ) | ||||||||||||||||||||||||
Reclassification of net earnings from coffee business |
(494 | ) | | (494 | ) | (63 | ) | (431 | ) | | | | ||||||||||||||||||||||||
Net earnings from divestiture |
(4 | ) | | (4 | ) | | | | (4 | ) | | |||||||||||||||||||||||||
Reclassification of equity method investment earnings |
(79 | ) | | (79 | ) | | (79 | ) | | | | |||||||||||||||||||||||||
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Adjusted (Non-GAAP) |
$ | 2,674 | $ | 635 | $ | 2,039 | $ | 333 | 16.3 | % | $ | (510 | ) | $ | 10 | $ | 2,206 | $ | 1.29 | |||||||||||||||||
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|||||||||||||||||||||
Diluted Average Shares Outstanding |
1,713 |
9
Schedule 7
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Diluted EPS
(Unaudited)
For the Three Months Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||||
Diluted EPS | % Growth | Diluted EPS | % Growth | |||||||||||||||
2014 Diluted EPS Attributable to Mondelēz International (GAAP) |
$ | 0.53 | $ | 0.98 | ||||||||||||||
Spin-Off Costs |
| 0.01 | ||||||||||||||||
2012-2014 Restructuring Program costs |
0.08 | 0.15 | ||||||||||||||||
2014-2018 Restructuring Program costs |
0.03 | 0.03 | ||||||||||||||||
Integration Program and other acquisition integration costs |
| | ||||||||||||||||
Remeasurement of net monetary assets in Venezuela |
0.01 | 0.09 | ||||||||||||||||
(Income) / costs associated with the coffee business transactions |
(0.15 | ) | (0.15 | ) | ||||||||||||||
Net earnings from divestiture |
| | ||||||||||||||||
Loss on debt extinguishment and related expenses |
| 0.18 | ||||||||||||||||
|
|
|
|
|||||||||||||||
2014 Adjusted EPS (Non-GAAP) |
0.50 | 1.29 | ||||||||||||||||
Increase in operations |
0.09 | 0.20 | ||||||||||||||||
Decrease in operations from historical coffee business and equity method investments |
(0.08 | ) | (0.03 | ) | ||||||||||||||
Change unrealized gains / (losses) on hedging activities |
(0.02 | ) | 0.02 | |||||||||||||||
Acquisitions |
0.01 | 0.01 | ||||||||||||||||
Accounting calendar change |
| 0.01 | ||||||||||||||||
Gain on sale of property in 2014 |
| | ||||||||||||||||
Lower interest and other expense / (income) |
0.02 | 0.05 | ||||||||||||||||
Changes in shares outstanding |
0.02 | 0.05 | ||||||||||||||||
Changes in income taxes |
(0.04 | ) | (0.07 | ) | ||||||||||||||
|
|
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|
|||||||||||||||
2015 Adjusted EPS (Constant Currency) (Non-GAAP) |
0.50 | 0.0 | % | 1.53 | 18.6 | % | ||||||||||||
Unfavorable foreign currency - translation |
(0.08 | ) | (0.23 | ) | ||||||||||||||
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|
|
|
|||||||||||||||
2015 Adjusted EPS (Non-GAAP) |
0.42 | (16.0 | )% | 1.30 | 0.8 | % | ||||||||||||
2012-2014 Restructuring Program costs |
| | ||||||||||||||||
2014-2018 Restructuring Program costs |
(0.11 | ) | (0.29 | ) | ||||||||||||||
Remeasurement of net monetary assets in Venezuela |
| (0.01 | ) | |||||||||||||||
Income / (costs) associated with the coffee business transactions |
(0.04 | ) | 0.03 | |||||||||||||||
Loss related to interest rate swaps |
| (0.01 | ) | |||||||||||||||
Gain on the coffee business transactions |
4.25 | 4.21 | ||||||||||||||||
Net earnings from divestiture |
| (0.02 | ) | |||||||||||||||
Loss on divestiture |
| (0.01 | ) | |||||||||||||||
Equity method investee acquisition-related and other adjustments |
(0.06 | ) | (0.06 | ) | ||||||||||||||
Acquisition-related costs |
| | ||||||||||||||||
Loss on debt extinguishment and related expenses |
| (0.28 | ) | |||||||||||||||
|
|
|
|
|||||||||||||||
2015 Diluted EPS Attributable to Mondelēz International (GAAP) |
$ | 4.46 | 741.5 | % | $ | 4.86 | 395.9 | % | ||||||||||
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|
10
Schedule 8a
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Segment Data
(in millions of U.S. dollars) (Unaudited)
For the Three Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||||||||||||
Latin America | Asia Pacific | EEMEA | Europe | North America | Unrealized G/(L) on Hedging Activities |
General Corporate Expenses |
Amortization of Intangibles |
Other Items | Mondelēz International |
|||||||||||||||||||||||||||||||
Net Revenue |
||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) |
$ | 1,233 | $ | 1,101 | $ | 586 | $ | 2,173 | $ | 1,756 | $ | | $ | | $ | | $ | | $ | 6,849 | ||||||||||||||||||||
Historical coffee business |
| | | | | | | | | | ||||||||||||||||||||||||||||||
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Adjusted (Non-GAAP) |
$ | 1,233 | $ | 1,101 | $ | 586 | $ | 2,173 | $ | 1,756 | $ | | $ | | $ | | $ | | $ | 6,849 | ||||||||||||||||||||
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Operating Income |
||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) |
$ | 134 | $ | 71 | $ | 52 | $ | 298 | $ | 275 | $ | (4 | ) | $ | (95 | ) | $ | (45 | ) | $ | 7,116 | $ | 7,802 | |||||||||||||||||
2014-2018 Restructuring Program costs |
36 | 36 | 8 | 54 | 58 | | 29 | | | 221 | ||||||||||||||||||||||||||||||
Integration Program and other acquisition integration costs |
| 3 | | | | | 1 | | | 4 | ||||||||||||||||||||||||||||||
Costs associated with the coffee business transactions |
| | 4 | 27 | | | 23 | | | 54 | ||||||||||||||||||||||||||||||
Gain on the coffee business transactions |
| | | | | | | | (7,122 | ) | (7,122 | ) | ||||||||||||||||||||||||||||
Acquisition-related costs |
| | | | | | | | 6 | 6 | ||||||||||||||||||||||||||||||
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Adjusted (Non-GAAP) |
$ | 170 | $ | 110 | $ | 64 | $ | 379 | $ | 333 | $ | (4 | ) | $ | (42 | ) | $ | (45 | ) | $ | | $ | 965 | |||||||||||||||||
Currency |
41 | 24 | 17 | 57 | 6 | | (8 | ) | (6 | ) | | 131 | ||||||||||||||||||||||||||||
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Adjusted @ Constant FX (Non-GAAP) |
$ | 211 | $ | 134 | $ | 81 | $ | 436 | $ | 339 | $ | (4 | ) | $ | (50 | ) | $ | (51 | ) | $ | | $ | 1,096 | |||||||||||||||||
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% Change - Reported (GAAP) |
11.7 | % | 9.2 | % | (44.1 | )% | (19.0 | )% | 1.1 | % | n/m | (69.6 | )% | 6.3 | % | n/m | 814.7 | % | ||||||||||||||||||||||
% Change - Adjusted (Non-GAAP) |
(2.3 | )% | 57.1 | % | 0.0 | % | 1.6 | % | 7.1 | % | n/m | (2.4 | )% | 6.3 | % | n/m | 3.7 | % | ||||||||||||||||||||||
% Change - Adjusted @ Constant FX (Non-GAAP) |
21.3 | % | 91.4 | % | 26.6 | % | 16.9 | % | 9.0 | % | n/m | (22.0 | )% | (6.3 | )% | n/m | 17.7 | % | ||||||||||||||||||||||
Operating Income Margin |
||||||||||||||||||||||||||||||||||||||||
Reported % |
10.9 | % | 6.4 | % | 8.9 | % | 13.7 | % | 15.7 | % | 113.9 | % | ||||||||||||||||||||||||||||
Reported pp change |
1.8 | pp | 0.8 | pp | (1.5 | )pp | 2.3 | pp | 0.2 | pp | 103.7 | pp | ||||||||||||||||||||||||||||
Adjusted % |
13.8 | % | 10.0 | % | 10.9 | % | 17.4 | % | 19.0 | % | 14.1 | % | ||||||||||||||||||||||||||||
Adjusted pp change |
0.6 | pp | 3.8 | pp | 2.1 | pp | 2.7 | pp | 1.3 | pp | 1.7 | pp | ||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
Latin America | Asia Pacific | EEMEA | Europe | North America | Unrealized G/(L) on Hedging Activities |
General Corporate Expenses |
Amortization of Intangibles |
Other Items | Mondelēz International |
|||||||||||||||||||||||||||||||
Net Revenue |
||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) |
$ | 1,315 | $ | 1,153 | $ | 894 | $ | 3,215 | $ | 1,760 | $ | | $ | | $ | | $ | | $ | 8,337 | ||||||||||||||||||||
Historical coffee business |
| (16 | ) | (169 | ) | (670 | ) | | | | | | (855 | ) | ||||||||||||||||||||||||||
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Adjusted (Non-GAAP) |
$ | 1,315 | $ | 1,137 | $ | 725 | $ | 2,545 | $ | 1,760 | $ | | $ | | $ | | $ | | $ | 7,482 | ||||||||||||||||||||
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Operating Income |
||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) |
$ | 120 | $ | 65 | $ | 93 | $ | 368 | $ | 272 | $ | 39 | $ | (56 | ) | $ | (48 | ) | $ | | $ | 853 | ||||||||||||||||||
Spin-Off Costs |
| | | | | | 4 | | | 4 | ||||||||||||||||||||||||||||||
2012-2014 Restructuring Program costs |
3 | 28 | 14 | 99 | 41 | | 1 | | | 186 | ||||||||||||||||||||||||||||||
2014-2018 Restructuring Program costs |
32 | 4 | 3 | 14 | 1 | | 13 | | | 67 | ||||||||||||||||||||||||||||||
Remeasurement of net monetary assets in Venezuela |
19 | | | | | | | | | 19 | ||||||||||||||||||||||||||||||
Integration Program and other acquisition integration costs |
| | | | | | (1 | ) | | | (1 | ) | ||||||||||||||||||||||||||||
Costs associated with the coffee business transactions |
| | | 10 | | | | | | 10 | ||||||||||||||||||||||||||||||
Operating income from historical coffee business |
| (8 | ) | (45 | ) | (118 | ) | | (11 | ) | (2 | ) | | | (184 | ) | ||||||||||||||||||||||||
Operating income from divestiture |
| (1 | ) | | | | | | | | (1 | ) | ||||||||||||||||||||||||||||
Reclassification of equity method investment earnings |
| (18 | ) | (1 | ) | | (3 | ) | | | | | (22 | ) | ||||||||||||||||||||||||||
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Adjusted (Non-GAAP) |
$ | 174 | $ | 70 | $ | 64 | $ | 373 | $ | 311 | $ | 28 | $ | (41 | ) | $ | (48 | ) | $ | | $ | 931 | ||||||||||||||||||
Currency |
| | | | | | | | | | ||||||||||||||||||||||||||||||
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Adjusted @ Constant FX (Non-GAAP) |
$ | 174 | $ | 70 | $ | 64 | $ | 373 | $ | 311 | $ | 28 | $ | (41 | ) | $ | (48 | ) | $ | | $ | 931 | ||||||||||||||||||
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Operating Income Margin |
||||||||||||||||||||||||||||||||||||||||
Reported % |
9.1 | % | 5.6 | % | 10.4 | % | 11.4 | % | 15.5 | % | 10.2 | % | ||||||||||||||||||||||||||||
Adjusted % |
13.2 | % | 6.2 | % | 8.8 | % | 14.7 | % | 17.7 | % | 12.4 | % |
11
Schedule 8b
Mondelēz International, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Measures
Segment Data
(in millions of U.S. dollars) (Unaudited)
For the Nine Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||||||||||||
Latin America | Asia Pacific | EEMEA | Europe | North America | Unrealized G/(L) on Hedging Activities |
General Corporate Expenses |
Amortization of Intangibles |
Other Items | Mondelēz International |
|||||||||||||||||||||||||||||||
Net Revenue |
||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) |
$ | 3,730 | $ | 3,278 | $ | 2,150 | $ | 7,963 | $ | 5,151 | $ | | $ | | $ | | $ | | $ | 22,272 | ||||||||||||||||||||
Historical coffee business |
| (33 | ) | (246 | ) | (1,348 | ) | | | | | | (1,627 | ) | ||||||||||||||||||||||||||
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Adjusted (Non-GAAP) |
$ | 3,730 | $ | 3,245 | $ | 1,904 | $ | 6,615 | $ | 5,151 | $ | | $ | | $ | | $ | | $ | 20,645 | ||||||||||||||||||||
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Operating Income |
||||||||||||||||||||||||||||||||||||||||
Reported (GAAP) |
$ | 422 | $ | 321 | $ | 184 | $ | 885 | $ | 817 | $ | 75 | $ | (240 | ) | $ | (137 | ) | $ | 7,127 | $ | 9,454 | ||||||||||||||||||
2012-2014 Restructuring Program costs |
| (1 | ) | | | (2 | ) | | | | | (3 | ) | |||||||||||||||||||||||||||
2014-2018 Restructuring Program costs |
106 | 90 | 28 | 237 | 110 | | 56 | | | 627 | ||||||||||||||||||||||||||||||
Integration Program and other acquisition integration costs |
| 5 | | | | | | | | 5 | ||||||||||||||||||||||||||||||
Remeasurement of net monetary assets in Venezuela |
11 | | | | | | | | | 11 | ||||||||||||||||||||||||||||||
Costs associated with the coffee business transactions |
1 | 3 | 19 | 179 | | | 37 | | | 239 | ||||||||||||||||||||||||||||||
Operating income from historical coffee business |
| (13 | ) | (41 | ) | (248 | ) | | (40 | ) | | | | (342 | ) | |||||||||||||||||||||||||
Gain on the coffee business transactions |
| | | | | | | | (7,122 | ) | (7,122 | ) | ||||||||||||||||||||||||||||
Operating income from divestiture |
| (5 | ) | | | | | | | | (5 | ) | ||||||||||||||||||||||||||||
Gain on divestiture |
| | | | | | | | (13 | ) | (13 | ) | ||||||||||||||||||||||||||||
Acquisition-related costs |
| | | | | | | | 8 | 8 | ||||||||||||||||||||||||||||||
Reclassification of equity method investment earnings |
| (43 | ) | (3 | ) | | (4 | ) | | | | (1 | ) | (51 | ) | |||||||||||||||||||||||||
Rounding |
| | | | | | 1 | | | 1 | ||||||||||||||||||||||||||||||
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Adjusted (Non-GAAP) |
$ | 540 | $ | 357 | $ | 187 | $ | 1,053 | $ | 921 | $ | 35 | $ | (146 | ) | $ | (137 | ) | $ | (1 | ) | $ | 2,809 | |||||||||||||||||
Currency |
156 | 45 | 33 | 209 | 12 | | (35 | ) | (19 | ) | 1 | 402 | ||||||||||||||||||||||||||||
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Adjusted @ Constant FX (Non-GAAP) |
$ | 696 | $ | 402 | $ | 220 | $ | 1,262 | $ | 933 | $ | 35 | $ | (181 | ) | $ | (156 | ) | $ | | $ | 3,211 | ||||||||||||||||||
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% Change - Reported (GAAP) |
38.8 | % | (11.8 | )% | (39.3 | )% | (31.6 | )% | 9.8 | % | n/m | (25.7 | )% | 12.7 | % | n/m | 256.4 | % | ||||||||||||||||||||||
% Change - Adjusted (Non-GAAP) |
6.7 | % | 17.0 | % | (13.8 | )% | (7.1 | )% | 11.2 | % | n/m | 1.4 | % | 12.7 | % | n/m | 5.0 | % | ||||||||||||||||||||||
% Change - Adjusted @ Constant FX (Non-GAAP) |
37.5 | % | 31.8 | % | 1.4 | % | 11.3 | % | 12.7 | % | n/m | (22.3 | )% | 0.6 | % | n/m | 20.1 | % | ||||||||||||||||||||||
Operating Income Margin |
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Reported % |
11.3 | % | 9.8 | % | 8.6 | % | 11.1 | % | 15.9 | % | 42.4 | % | ||||||||||||||||||||||||||||
Reported pp change |
3.5 | pp | (0.7 | )pp | (2.5 | )pp | (1.6 | )pp | 1.5 | pp | 32.0 | pp | ||||||||||||||||||||||||||||
Adjusted % |
14.5 | % | 11.0 | % | 9.8 | % | 15.9 | % | 17.9 | % | 13.6 | % | ||||||||||||||||||||||||||||
Adjusted pp change |
1.6 | pp | 2.1 | pp | 0.1 | pp | 1.7 | pp | 1.8 | pp | 1.8 | pp | ||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
Latin America | Asia Pacific | EEMEA | Europe | North America | Unrealized G/(L) on Hedging Activities |
General Corporate Expenses |
Amortization of Intangibles |
Other Items | Mondelēz International |
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Net Revenue |
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Reported (GAAP) |
$ | 3,913 | $ | 3,460 | $ | 2,740 | $ | 10,151 | $ | 5,150 | $ | | $ | | $ | | $ | | $ | 25,414 | ||||||||||||||||||||
Historical coffee business |
(2 | ) | (43 | ) | (496 | ) | (2,172 | ) | | | | | | (2,713 | ) | |||||||||||||||||||||||||
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Adjusted (Non-GAAP) |
$ | 3,911 | $ | 3,417 | $ | 2,244 | $ | 7,979 | $ | 5,150 | $ | | $ | | $ | | $ | | $ | 22,701 | ||||||||||||||||||||
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Operating Income |
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Reported (GAAP) |
$ | 304 | $ | 364 | $ | 303 | $ | 1,294 | $ | 744 | $ | (8 | ) | $ | (191 | ) | $ | (157 | ) | $ | | $ | 2,653 | |||||||||||||||||
Spin-Off Costs |
| | | | | | 23 | | | 23 | ||||||||||||||||||||||||||||||
2012-2014 Restructuring Program costs |
8 | 29 | 28 | 170 | 90 | | | | | 325 | ||||||||||||||||||||||||||||||
2014-2018 Restructuring Program costs |
34 | 4 | 3 | 14 | 1 | | 21 | | | 77 | ||||||||||||||||||||||||||||||
Integration Program and other acquisition integration costs |
| | 3 | (5 | ) | | | (1 | ) | | | (3 | ) | |||||||||||||||||||||||||||
Remeasurement of net monetary assets in Venezuela |
161 | | | | | | | | | 161 | ||||||||||||||||||||||||||||||
Costs associated with the coffee business transactions |
| | | 15 | | | | | | 15 | ||||||||||||||||||||||||||||||
Operating income from historical coffee business |
(1 | ) | (19 | ) | (117 | ) | (354 | ) | | (3 | ) | | | | (494 | ) | ||||||||||||||||||||||||
Operating income from divestiture |
| (4 | ) | | | | | | | | (4 | ) | ||||||||||||||||||||||||||||
Reclassification of equity method investment earnings |
| (69 | ) | (3 | ) | | (7 | ) | | | | | (79 | ) | ||||||||||||||||||||||||||
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Adjusted (Non-GAAP) |
$ | 506 | $ | 305 | $ | 217 | $ | 1,134 | $ | 828 | $ | (11 | ) | $ | (148 | ) | $ | (157 | ) | $ | | $ | 2,674 | |||||||||||||||||
Currency |
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Adjusted @ Constant FX (Non-GAAP) |
$ | 506 | $ | 305 | $ | 217 | $ | 1,134 | $ | 828 | $ | (11 | ) | $ | (148 | ) | $ | (157 | ) | $ | | $ | 2,674 | |||||||||||||||||
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Operating Income Margin |
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Reported % |
7.8 | % | 10.5 | % | 11.1 | % | 12.7 | % | 14.4 | % | 10.4 | % | ||||||||||||||||||||||||||||
Adjusted % |
12.9 | % | 8.9 | % | 9.7 | % | 14.2 | % | 16.1 | % | 11.8 | % |
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