8-K

 

 

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): July 11, 2019

 

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

(Registrant’s 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))

Securities registered pursuant to Section 12(b) of the Act:

 

Tile of each class

  

Trading

Symbol(s)

  

Name of each exchange

on which registered

Class A Common Stock, no par value    MDLZ    The Nasdaq Global Select Market
2.375% Notes due 2021    MDLZ21    The Nasdaq Stock Market LLC
1.000% Notes due 2022    MDLZ22    The Nasdaq Stock Market LLC
1.625% Notes due 2023    MDLZ23    The Nasdaq Stock Market LLC
1.625% Notes due 2027    MDLZ27    The Nasdaq Stock Market LLC
2.375% Notes due 2035    MDLZ35    The Nasdaq Stock Market LLC
4.500% Notes due 2035    MDLZ35A    The Nasdaq Stock Market LLC
3.875% Notes due 2045    MDLZ45    The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 7.01.

Regulation FD Disclosure.

Recent Business Divestiture

Mondelēz International, Inc. and subsidiaries (collectively, “we,” “our” or “Mondelēz International”) are furnishing this current report to provide supplemental financial information regarding the effect of a recent business divestiture on our non-GAAP financial measures.

On May 28, 2019, we completed the sale of our Kraft-branded cheese business in the Middle East and Africa, within our Asia, Middle East & Africa (“AMEA”) segment, to Arla Foods of Denmark.

As a result of this divestiture, and consistent with the definitions of our non-GAAP financial measures, we will remove the results of this operation from our non-GAAP financial results going forward and for all historical periods presented. Our U.S. GAAP results will not change and will continue to include the results of the divested operations through the divestiture closing date noted above. See the summary chart below and Exhibit 99.1 for the revised unaudited non-GAAP financial information for the first quarter of 2019, all quarters of 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016.

Mondelēz International, Inc. and Subsidiaries

Revised Non-GAAP Financial Measures due to Business Divestiture

(percentages, except per share data)

(Unaudited)

 

     2017
FY
    2018
FY
    2018     2019  
    Q1     Q2     Q3     Q4     Q1  

Reported (GAAP)

              

Net revenues growth

     (0.1 )%      0.2     5.5     2.1     (3.7 )%      (2.8 )%      (3.4 )% 

Gross profit %

     38.7     39.9     42.1     41.6     38.4     37.6     39.7

Operating income margin

     13.4     12.8     18.1     7.9     11.7     12.8     15.8

Diluted earnings per share attributable to Mondelēz International

   $ 1.85     $ 2.28     $ 0.70     $ 0.21     $ 0.81     $ 0.56     $ 0.63  

Adjusted (non-GAAP)

              

Organic Net revenue Growth

     0.9     2.4     2.4     3.5     1.2     2.5     3.7

Adjusted Gross Profit %

     39.7     40.1     39.4     40.4     40.6     40.0     39.7

Adjusted Operating Income margin

     16.1     16.7     16.7     16.7     17.1     16.2     16.7

Adjusted EPS

   $ 2.14     $ 2.43     $ 0.63     $ 0.55     $ 0.62     $ 0.63     $ 0.65  

Revised Adjusted (non-GAAP)

              

Organic Net Revenue Growth

     1.0     2.4     2.5     3.5     1.2     2.5     3.7

Adjusted Gross Profit %

     39.8     40.2     39.5     40.6     40.7     40.1     39.8

Adjusted Operating Income margin

     16.0     16.7     16.7     16.7     17.1     16.2     16.8

Adjusted EPS

   $ 2.12     $ 2.42     $ 0.62     $ 0.55     $ 0.62     $ 0.63     $ 0.65  

Non-GAAP Financial Measures

We use non-GAAP financial information and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results, and provide additional insight and transparency on how we evaluate our business. We use non-GAAP financial measures to budget, make operating and strategic decisions and evaluate our performance. We have detailed below the non-GAAP adjustments that we make in our non-GAAP definitions. The adjustments generally fall within the following categories: acquisition & divestiture activities, gains and losses on intangible asset sales and non-cash impairments, major program restructuring activities, constant currency and related adjustments, major program financing and hedging activities and other major items affecting comparability of operating results. We believe the non-GAAP measures should always be considered along with the related U.S. GAAP financial measures.

The definitions of our non-GAAP financial measures did not change as a result of this divestiture. For all periods presented in this Form 8-K, our non-GAAP financial measures are defined below and reflect how we evaluate our current and prior-year operating results. These definitions can also be found within our historically reported Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q for the periods presented. As new events or circumstances arise, this definition could change over time. When our definitions change, we provide the updated definitions and present the related non-GAAP historical results on a comparable basis (1).


Organic Net Revenue – defined as net revenues excluding the impacts of acquisitions, divestitures (2) and currency rate fluctuations (3). We believe that Organic Net Revenue reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results. We also evaluate Organic Net Revenue growth from emerging and developed markets.

Adjusted Gross Profit – defined as gross profit excluding the Simplify to Grow Program (4); acquisition integration costs; the operating results of divestitures (2); mark-to-market impacts from commodity and forecasted currency transaction derivative contracts (5); and incremental expenses related to the 2017 malware incident. We also present “Adjusted Gross Profit margin,” which is subject to the same adjustments as Adjusted Gross Profit. We believe that Adjusted Gross Profit and Adjusted Gross Profit margin provide improved comparability of underlying operating results. We also evaluate growth in Adjusted Gross Profit on a constant currency basis (3).

Adjusted Operating Income and Adjusted Segment Operating Income – defined as operating income (or segment operating income) excluding the impacts of the items listed in the Adjusted Gross Profit definition as well as gains or losses (including non-cash impairment charges) on goodwill and intangible assets; divestiture (2) or acquisition gains or losses and related divestiture, acquisition and integration costs; remeasurement of net monetary position (6); impacts from the resolution of tax matters (7); CEO transition remuneration (8); and impact from pension participation changes (9). We also present “Adjusted Operating Income margin” and “Adjusted Segment Operating Income margin,” which are subject to the same adjustments as Adjusted Operating Income and Adjusted Segment Operating Income. We believe that Adjusted Operating Income, Adjusted Segment Operating Income, Adjusted Operating Income margin and Adjusted Segment Operating Income margin provide improved comparability of underlying operating results. We also evaluate growth in Adjusted Operating Income and Adjusted Segment Operating Income on a constant currency basis (3).

Adjusted EPS – defined as diluted EPS attributable to Mondelēz International from continuing operations excluding the impacts of the items listed in the Adjusted Operating Income definition as well as losses on debt extinguishment and related expenses; gain on equity method investment transactions; net earnings from divestitures (2); gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans; and U.S. tax reform discrete impacts (10). Similarly, within Adjusted EPS, our equity method investment net earnings exclude our proportionate share of our investees’ unusual or infrequent items (11). The tax impact of each of the items excluded from our GAAP results was computed based on the facts and tax assumptions associated with each item and such impacts have also been excluded from Adjusted EPS. We believe that Adjusted EPS provides improved comparability of underlying operating results. We also evaluate growth in our Adjusted EPS on a constant currency basis (3).

 

  (1)

When items no longer impact our current or future presentation of non-GAAP operating results, we remove these items from our non-GAAP definitions.

 

  (2)

Divestitures include completed sales of businesses and exits of major product lines upon completion of a sale or licensing agreement. Refer to Note 2, Divestitures and Acquisitions, in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 for more information on divestitures and acquisitions impacting the comparability of our results.

 

  (3)

Constant currency operating results are calculated by dividing or multiplying, as appropriate, the current-period local currency operating results by the currency exchange rates used to translate the 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 has not changed from comparable prior-year period.

 

  (4)

Non-GAAP adjustments related to the Simplify to Grow Program reflect costs incurred that relate to the objectives of our program to transform our supply chain network and organizational structure. Costs that do not meet the program objectives are not reflected in the non-GAAP adjustments.

 

  (5)

During the third quarter of 2016, we began to exclude unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency transaction derivatives from our non-GAAP earnings measures until such time that the related exposures impact our operating results. Since we purchase commodity and forecasted currency contracts to mitigate price volatility primarily for inventory requirements in future periods, we made this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of our underlying operating performance across periods. We also discontinued designating commodity and forecasted currency transaction derivatives for hedge accounting treatment. To facilitate comparisons of our underlying operating results, we have recast all historical non-GAAP earnings measures to exclude the mark-to-market impacts.

 

  (6)

During the third quarter of 2018, as we began to apply highly inflationary accounting for Argentina (refer to Note 1, Basis of Presentation, in our Annual Report on Form 10-K for the year ended December 31, 2018), we


  excluded the remeasurement gains or losses related to remeasuring net monetary assets or liabilities in Argentina during the period to be consistent with our prior accounting for these remeasurement gains/losses for Venezuela when it was subject to highly inflationary accounting prior to 2016.

 

  (7)

Refer to Note 13, Commitments and Contingencies – Tax Matters, in our Annual Report on Form 10-K for the year ended December 31, 2018 for additional information.

 

  (8)

On November 20, 2017, Dirk Van de Put succeeded Irene Rosenfeld as CEO of Mondelēz International in advance of her retirement at the end of March 2018. In order to incent Mr. Van de Put to join us, we provided him compensation with a total combined target value of $42.5 million to make him whole for incentive awards he forfeited or grants that were not made to him when he left his former employer. The compensation we granted took the form of cash, deferred stock units, performance share units and stock options. In connection with Irene Rosenfeld’s retirement, we made her outstanding grants of performance share units for the 2016-2018 and 2017-2019 performance cycles eligible for continued vesting and approved a $0.5 million salary for her service as Chairman from January through March 2018. We refer to these elements of Mr. Van de Put’s and Ms. Rosenfeld’s compensation arrangements together as “CEO transition remuneration.” We are excluding amounts we expense as CEO transition remuneration from our non-GAAP results because those amounts are not part of our regular compensation program and are incremental to amounts we would have incurred as ongoing CEO compensation. As a result, in 2017, we excluded amounts expensed for the cash payment to Mr. Van de Put and partial vesting of his equity grants. In 2018, we excluded amounts paid for Ms. Rosenfeld’s service as Chairman and partial vesting of Mr. Van de Put’s and Ms. Rosenfeld’s equity grants. In 2019, we excluded amounts related to the partial vesting of Mr. Van de Put’s equity grants.

 

  (9)

The impact from pension participation changes represents the charges incurred when employee groups are withdrawn from multiemployer pension plans and other changes in employee group pension plan participation. We exclude these charges from our non-GAAP results because those amounts do not reflect our ongoing pension obligations. See Note 11, Benefit Plans, in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 for more information on the multiemployer pension plan withdrawal.

 

  (10)

On December 22, 2017, the United States enacted tax reform legislation that included a broad range of business tax provisions. We exclude the discrete U.S. tax reform impacts from our Adjusted EPS as they do not reflect our ongoing tax obligations under U.S. tax reform. Refer to our Annual Report on Form 10-K for the year ended December 31, 2018 for more information.

 

  (11)

We have excluded our proportionate share of our equity method investees’ unusual or infrequent items such as acquisition and divestiture related costs, restructuring program costs and discrete U.S. tax reform impacts, in order to provide investors with a comparable view of our performance across periods. Although we have shareholder rights and board representation commensurate with our ownership interests in our equity method investees and review the underlying operating results and unusual or infrequent items with them each reporting period, we do not have direct control over their operations or resulting revenue and expenses. Our use of equity method investment net earnings on an adjusted basis is not intended to imply that we have any such control. Our GAAP “diluted EPS attributable to Mondelēz International from continuing operations” includes all of the investees’ unusual and infrequent items.

We believe that the presentation of these non-GAAP financial measures, when considered together with our U.S. GAAP financial measures and the reconciliations to the corresponding U.S. GAAP financial measures, helps provide a more complete understanding of the factors and trends affecting our business than could be obtained absent these disclosures. Because non-GAAP financial measures vary among companies, the non-GAAP financial measures presented in this report may not be comparable to similarly titled measures used by other companies. Our use of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for any U.S. GAAP financial measure. A limitation of the non-GAAP financial measures is they do not include all items of income and expense that affect us and have an impact on our U.S. GAAP reported results. The best way this limitation can be addressed is by evaluating our non-GAAP financial measures in combination with our U.S. GAAP reported results and carefully evaluating the reconciliations of U.S. GAAP reported figures to the non-GAAP financial measures.

Financial Schedules

Exhibit 99.1 to this Form 8-K contains financial schedules that provide the reconciliations for our non-GAAP financial measures before and after the adjustments made for this business divestiture for the first quarter of 2019, all quarters of 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016.


Item 9.01.

Financial Statements and Exhibits.

 

(a)

The following exhibit is being furnished with this Current Report on Form 8-K.

 

99.1    Financial schedules – Unaudited Non-GAAP Financial Information.


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/ Luca Zaramella
Name:   Luca Zaramella
Title:   Executive Vice President and
  Chief Financial Officer

Date: July 11, 2019

EX-99.1

Exhibit 99.1

U.S. GAAP to Non-GAAP Reconciliations

In addition to reporting our U.S. GAAP operating results, we have historically reported non-GAAP financial information. Refer also to our Quarterly Reports on Form 10-Q and our Annual Report on Form 10-K for the periods presented for additional information on our GAAP to non-GAAP adjustments.

Schedule 1.1

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

     Latin America     AMEA     Europe     North America     Mondelēz
International
              Emerging
Markets
    Developed
Markets
 

For the Three Months Ended March 31, 2019

                 

Reported (GAAP)

   $ 800     $ 1,541     $ 2,551     $ 1,646     $ 6,538        $ 2,502     $ 4,036  

Acquisition

     —         —         —         (20     (20        —         (20

Currency

     166       95       229       8       498          299       199  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 966     $ 1,636     $ 2,780     $ 1,634     $ 7,016        $ 2,801     $ 4,215  

MEA cheese business divestiture

     —         (33     —         —         (33        (33     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 966     $ 1,603     $ 2,780     $ 1,634     $ 6,983        $ 2,768     $ 4,215  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

For the Three Months Ended March 31, 2018

                 

Reported (GAAP)

   $ 891     $ 1,542     $ 2,706     $ 1,626     $ 6,765        $ 2,584     $ 4,181  

Divestitures

     —         —         —         —         —            —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 891     $ 1,542     $ 2,706     $ 1,626     $ 6,765        $ 2,584     $ 4,181  

MEA cheese business divestiture

     —         (31     —         —         (31        (31     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 891     $ 1,511     $ 2,706     $ 1,626     $ 6,734        $ 2,553     $ 4,181  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

% Change

                 

Reported (GAAP)

     (10.2 )%      (0.1 )%      (5.7 )%      1.2     (3.4 )%         (3.2 )%      (3.5 )% 

Organic (Non-GAAP)

     8.4     6.1     2.7     0.5     3.7        8.4     0.8

Revised Organic (Non-GAAP)

     8.4     6.1     2.7     0.5     3.7        8.4     0.8


Schedule 1.2

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

     Latin America     AMEA     Europe     North America     Mondelēz
International
              Emerging
Markets
    Developed
Markets
 

For the Twelve Months Ended December 31, 2018

                 

Reported (GAAP)

   $ 3,202     $ 5,729     $ 10,122     $ 6,885     $ 25,938        $ 9,659     $ 16,279  

Acquisition

     —         —         —         (52     (52        —         (52

Currency

     493       74       (228     4       343          604       (261
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 3,695     $ 5,803     $ 9,894     $ 6,837     $ 26,229        $ 10,263     $ 15,966  

MEA cheese business divestiture

     —         (126     —         —         (126        (126     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 3,695     $ 5,677     $ 9,894     $ 6,837     $ 26,103        $ 10,137     $ 15,966  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

For the Twelve Months Ended December 31, 2017

                 

Reported (GAAP)

   $ 3,566     $ 5,739     $ 9,794     $ 6,797     $ 25,896        $ 9,707     $ 16,189  

Divestitures

     —         (133     (137     —         (270        —         (270
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 3,566     $ 5,606     $ 9,657     $ 6,797     $ 25,626        $ 9,707     $ 15,919  

MEA cheese business divestiture

     —         (132     —         —         (132        (132     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 3,566     $ 5,474     $ 9,657     $ 6,797     $ 25,494        $ 9,575     $ 15,919  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

% Change

                 

Reported (GAAP)

     (10.2 )%      (0.2 )%      3.3     1.3     0.2        (0.5 )%      0.6

Organic (Non-GAAP)

     3.6     3.5     2.5     0.6     2.4        5.7     0.3

Revised Organic (Non-GAAP)

     3.6     3.7     2.5     0.6     2.4        5.9     0.3


Schedule 1.3

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

     Latin America     AMEA     Europe     North America     Mondelēz
International
              Emerging
Markets
    Developed
Markets
 

For the Three Months Ended December 31, 2018

                 

Reported (GAAP)

   $ 763     $ 1,429     $ 2,752     $ 1,829     $ 6,773        $ 2,441     $ 4,332  

Acquisition

     —         —         —         (22     (22        —         (22

Currency

     172       74       128       9       383          283       100  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 935     $ 1,503     $ 2,880     $ 1,816     $ 7,134        $ 2,724     $ 4,410  

MEA cheese business divestiture

     —         (34     —         —         (34        (34     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 935     $ 1,469     $ 2,880     $ 1,816     $ 7,100        $ 2,690     $ 4,410  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

For the Three Months Ended December 31, 2017

                 

Reported (GAAP)

   $ 900     $ 1,449     $ 2,816     $ 1,801     $ 6,966        $ 2,557     $ 4,409  

Divestitures

     —         (4     (2     —         (6        —         (6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 900     $ 1,445     $ 2,814     $ 1,801     $ 6,960        $ 2,557     $ 4,403  

MEA cheese business divestiture

     —         (33     —         —         (33        (33     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 900     $ 1,412     $ 2,814     $ 1,801     $ 6,927        $ 2,524     $ 4,403  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

% Change

                 

Reported (GAAP)

     (15.2 )%      (1.4 )%      (2.3 )%      1.6     (2.8 )%         (4.5 )%      (1.7 )% 

Organic (Non-GAAP)

     3.9     4.0     2.3     0.8     2.5        6.5     0.2

Revised Organic (Non-GAAP)

     3.9     4.0     2.3     0.8     2.5        6.6     0.2


Schedule 1.4

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

     Latin America     AMEA     Europe     North America     Mondelēz
International
              Emerging
Markets
    Developed
Markets
 

For the Three Months Ended September 30, 2018

                 

Reported (GAAP)

   $ 774     $ 1,398     $ 2,361     $ 1,755     $ 6,288        $ 2,325     $ 3,963  

Acquisition

     —         —         —         (23     (23        —         (23

Currency

     176       68       71       8       323          266       57  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 950     $ 1,466     $ 2,432     $ 1,740     $ 6,588        $ 2,591     $ 3,997  

MEA cheese business divestiture

     —         (29     —         —         (29        (29     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 950     $ 1,437     $ 2,432     $ 1,740     $ 6,559        $ 2,562     $ 3,997  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

For the Three Months Ended September 30, 2017

                 

Reported (GAAP)

   $ 908     $ 1,405     $ 2,442     $ 1,775     $ 6,530        $ 2,444     $ 4,086  

Divestitures

     —         (4     (14     —         (18        —         (18
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 908     $ 1,401     $ 2,428     $ 1,775     $ 6,512        $ 2,444     $ 4,068  

MEA cheese business divestiture

     —         (30     —         —         (30        (30     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 908     $ 1,371     $ 2,428     $ 1,775     $ 6,482        $ 2,414     $ 4,068  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

% Change

                 

Reported (GAAP)

     (14.8 )%      (0.5 )%      (3.3 )%      (1.1 )%      (3.7 )%         (4.9 )%      (3.0 )% 

Organic (Non-GAAP)

     4.6     4.6     0.2     (2.0 )%      1.2        6.0     (1.7 )% 

Revised Organic (Non-GAAP)

     4.6     4.8     0.2     (2.0 )%      1.2        6.1     (1.7 )% 


Schedule 1.5

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

     Latin America     AMEA     Europe     North America     Mondelēz
International
              Emerging
Markets
    Developed
Markets
 

For the Three Months Ended June 30, 2018

                 

Reported (GAAP)

   $ 774     $ 1,360     $ 2,303     $ 1,675     $ 6,112        $ 2,309     $ 3,803  

Acquisition

     —         —         —         (7     (7        —         (7

Currency

     106       (10     (116     (6     (26        104       (130
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 880     $ 1,350     $ 2,187     $ 1,662     $ 6,079        $ 2,413     $ 3,666  

MEA cheese business divestiture

     —         (32     —         —         (32        (32     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 880     $ 1,318     $ 2,187     $ 1,662     $ 6,047        $ 2,381     $ 3,666  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

For the Three Months Ended June 30, 2017

                 

Reported (GAAP)

   $ 848     $ 1,394     $ 2,171     $ 1,573     $ 5,986        $ 2,304     $ 3,682  

Divestitures

     —         (66     (44     —         (110        —         (110
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 848     $ 1,328     $ 2,127     $ 1,573     $ 5,876        $ 2,304     $ 3,572  

MEA cheese business divestiture

     —         (33     —         —         (33        (33     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 848     $ 1,295     $ 2,127     $ 1,573     $ 5,843        $ 2,271     $ 3,572  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

% Change

                 

Reported (GAAP)

     (8.7 )%      (2.4 )%      6.1     6.5     2.1        0.2     3.3

Organic (Non-GAAP)

     3.8     1.7     2.8     5.7     3.5        4.7     2.6

Revised Organic (Non-GAAP)

     3.8     1.8     2.8     5.7     3.5        4.8     2.6


Schedule 1.6

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

     Latin America     AMEA     Europe     North America     Mondelēz
International
              Emerging
Markets
    Developed
Markets
 

For the Three Months Ended March 31, 2018

                 

Reported (GAAP)

   $ 891     $ 1,542     $ 2,706     $ 1,626     $ 6,765        $ 2,584     $ 4,181  

Currency

     39       (58     (311     (7     (337        (49     (288
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 930     $ 1,484     $ 2,395     $ 1,619     $ 6,428        $ 2,535     $ 3,893  

MEA cheese business divestiture

     —         (31     —         —         (31        (31     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 930     $ 1,453     $ 2,395     $ 1,619     $ 6,397        $ 2,504     $ 3,893  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

For the Three Months Ended March 31, 2017

                 

Reported (GAAP)

   $ 910     $ 1,491     $ 2,365     $ 1,648     $ 6,414        $ 2,402     $ 4,012  

Divestitures

     —         (59     (77     —         (136        —         (136
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 910     $ 1,432     $ 2,288     $ 1,648     $ 6,278        $ 2,402     $ 3,876  

MEA cheese business divestiture

     —         (36     —         —         (36        (36     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 910     $ 1,396     $ 2,288     $ 1,648     $ 6,242        $ 2,366     $ 3,876  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

% Change

                 

Reported (GAAP)

     (2.1 )%      3.4     14.4     (1.3 )%      5.5        7.6     4.2

Organic (Non-GAAP)

     2.2     3.6     4.7     (1.8 )%      2.4        5.5     0.4

Revised Organic (Non-GAAP)

     2.2     4.1     4.7     (1.8 )%      2.5        5.8     0.4


Schedule 1.7

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

     Latin America     AMEA     Europe     North America     Mondelēz
International
              Emerging
Markets
    Developed
Markets
 

For the Twelve Months Ended December 31, 2017

                 

Reported (GAAP)

   $ 3,566     $ 5,739     $ 9,794     $ 6,797     $ 25,896        $ 9,707     $ 16,189  

Divestitures

     —         (133     (137     —         (270        —         (270

Acquisition

     —         —         (59     —         (59        —         (59

Currency

     (62     99       (96     (18     (77        (19     (58
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 3,504     $ 5,705     $ 9,502     $ 6,779     $ 25,490        $ 9,688     $ 15,802  

MEA cheese business divestiture

     —         (132     —         —         (132        (132     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 3,504     $ 5,573     $ 9,502     $ 6,779     $ 25,358        $ 9,556     $ 15,802  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

For the Twelve Months Ended December 31, 2016

                 

Reported (GAAP)

   $ 3,392     $ 5,816     $ 9,755     $ 6,960     $ 25,923        $ 9,357     $ 16,566  

Divestitures

     (8     (261     (371     (13     (653        (10     (643
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 3,384     $ 5,555     $ 9,384     $ 6,947     $ 25,270        $ 9,347     $ 15,923  

MEA cheese business divestiture

     —         (161     —         —         (161        (161     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

Revised Organic (Non-GAAP)

   $ 3,384     $ 5,394     $ 9,384     $ 6,947     $ 25,109        $ 9,186     $ 15,923  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

      

 

 

   

 

 

 

% Change

                 

Reported (GAAP)

     5.1     (1.3 )%      0.4     (2.3 )%      (0.1 )%         3.7     (2.3 )% 

Organic (Non-GAAP)

     3.5     2.7     1.3     (2.4 )%      0.9        3.6     (0.8 )% 

Revised Organic (Non-GAAP)

     3.5     3.3     1.3     (2.4 )%      1.0        4.0     (0.8 )% 


Schedule 2.1

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 March 31, 2019  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,538     $ 2,593       39.7    $ 1,036       15.8

Simplify to Grow Program

     —         21         70    

Mark-to-market (gains)/losses from derivatives

     —         (17       (16  

Divestiture-related costs

     —         —           (1  

Remeasurement of net monetary position

     —         —           2    

CEO transition remuneration

     —         —           3    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,538     $ 2,597       39.7   $ 1,094       16.7

Operating income from MEA cheese business divestiture

     (33     (6       (4  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 6,505     $ 2,591       39.8   $ 1,090       16.8
  

 

 

         

Currency

       190         87    
    

 

 

     

 

 

   

Revised Adjusted @ Constant FX (Non-GAAP)

     $ 2,781       $ 1,177    
    

 

 

     

 

 

   
     For the Three Months Ended March 31, 2018  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,765     $ 2,849       42.1   $ 1,224       18.1

Simplify to Grow Program

     —         23         114    

Mark-to-market (gains)/losses from derivatives

     —         (206       (206  

Acquisition integration costs

     —         —           1    

Divestiture-related costs

     —         —           (3  

CEO transition remuneration

     —         —           4    

Rounding

     —         —           (1  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,765     $ 2,666       39.4   $ 1,133       16.7

Operating income from MEA cheese business divestiture

     (31     (7       (6  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 6,734     $ 2,659       39.5   $ 1,127       16.7
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ (256     $ (188  

$ Change - Adjusted (Non-GAAP)

       (69       (39  

$ Change - Revised Adjusted (Non-GAAP)

       (68       (37  

$ Change - Revised Adjusted @ Constant FX (Non-GAAP)

       122         50    

 

% Change - Reported (GAAP)

       (9.0 )%        (15.4 )%   

% Change - Adjusted (Non-GAAP)

       (2.6 )%        (3.4 )%   

% Change - Revised Adjusted (Non-GAAP)

       (2.6 )%        (3.3 )%   

% Change - Revised Adjusted @ Constant FX (Non-GAAP)

       4.6       4.4  


Schedule 2.2

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 Twelve Months Ended December 31, 2018  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 25,938     $ 10,352       39.9    $ 3,312       12.8 

Simplify to Grow Program

     —         189         626    

Intangible asset impairment charges

     —         —           68    

Mark-to-market (gains)/losses from derivatives

     —         (140       (141  

Acquisition integration costs

     —         —           3    

Acquisition-related costs

     —         —           13    

Divestiture-related costs

     —         —           (1  

Remeasurement of net monetary position

     —         —           11    

Impact of pension participation changes

     —         —           423    

Impacts from resolution of tax matters

     —         (1       (15  

CEO transition remuneration

     —         —           22    

Rounding

     —         1         —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 25,938     $ 10,401       40.1   $ 4,321       16.7

Operating income from MEA cheese business divestiture

     (126     (28       (19  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 25,812     $ 10,373       40.2   $ 4,302       16.7
  

 

 

         

Currency

       128         55    
    

 

 

     

 

 

   

Revised Adjusted @ Constant FX (Non-GAAP)

     $ 10,501       $ 4,357    
    

 

 

     

 

 

   
     For the Twelve Months Ended December 31, 2017  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 25,896     $ 10,034       38.7   $ 3,462       13.4

Simplify to Grow Program

     —         61         777    

Intangible asset impairment charges

     —         —           109    

Mark-to-market (gains)/losses from derivatives

     —         96         96    

Malware incident incremental expenses

     —         62         84    

Acquisition integration costs

     —         —           3    

Divestiture-related costs

     —         2         31    

Operating income from divestitures

     (270     (79       (61  

(Gain)/loss on divestitures

     —         —           (186  

Impacts from resolution of tax matters

     —         —           (209  

CEO transition remuneration

     —         —           14    

Rounding

     —         1         (1  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 25,626     $ 10,177       39.7   $ 4,119       16.1

Operating income from MEA cheese business divestiture

     (132     (39       (31  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 25,494     $ 10,138       39.8   $ 4,088       16.0
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ 318       $ (150  

$ Change - Adjusted (Non-GAAP)

       224         202    

$ Change - Revised Adjusted (Non-GAAP)

       235         214    

$ Change - Revised Adjusted @ Constant FX (Non-GAAP)

       363         269    

 

% Change - Reported (GAAP)

       3.2       (4.3 )%   

% Change - Adjusted (Non-GAAP)

       2.2       4.9  

% Change - Revised Adjusted (Non-GAAP)

       2.3       5.2  

% Change - Revised Adjusted @ Constant FX (Non-GAAP)

       3.6       6.6  


Schedule 2.3

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 December 31, 2018  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,773     $ 2,549       37.6    $ 870       12.8 

Simplify to Grow Program

     —         121         194    

Mark-to-market (gains)/losses from derivatives

     —         40         40    

Acquisition integration costs

     —         —           1    

Acquisition-related costs

     —         —           (1  

Divestiture-related costs

     —         —           2    

Remeasurement of net monetary position

     —         —           (2  

Impact of pension participation changes

     —         —           15    

Impacts from resolution of tax matters

     —         (1       (26  

CEO transition remuneration

     —         —           4    

Rounding

     —         1         (1  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,773     $ 2,710       40.0   $ 1,096       16.2

Operating income from MEA cheese business divestiture

     (34     (7       (5  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 6,739     $ 2,703       40.1   $ 1,091       16.2
  

 

 

         

Currency

       155         74    
    

 

 

     

 

 

   

Revised Adjusted @ Constant FX (Non-GAAP)

     $ 2,858       $ 1,165    
    

 

 

     

 

 

   
     For the Three Months Ended December 31, 2017  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,966     $ 2,653       38.1   $ 830       11.9

Simplify to Grow Program

     —         22         192    

Mark-to-market (gains)/losses from derivatives

     —         27         27    

Malware incident incremental expenses

     —         20         30    

Acquisition integration costs

     —         —           1    

Divestiture-related costs

     —         (1       9    

Operating income from divestitures

     (6     (3       (1  

(Gain)/loss on divestitures

     —         —           (2  

Impacts from resolution of tax matters

     —         —           (8  

CEO transition remuneration

     —         —           14    

Rounding

     —         —           (1  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,960     $ 2,718       39.1   $ 1,091       15.7

Operating income from MEA cheese business divestiture

     (33     (6       (6  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 6,927     $ 2,712       39.2   $ 1,085       15.7
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ (104     $ 40    

$ Change - Adjusted (Non-GAAP)

       (8       5    

$ Change - Revised Adjusted (Non-GAAP)

       (9       6    

$ Change - Revised Adjusted @ Constant FX (Non-GAAP)

       146         80    

 

% Change - Reported (GAAP)

       (3.9 )%        4.8  

% Change - Adjusted (Non-GAAP)

       (0.3 )%        0.5  

% Change - Revised Adjusted (Non-GAAP)

       (0.3 )%        0.6  

% Change - Revised Adjusted @ Constant FX (Non-GAAP)

       5.4       7.4  


Schedule 2.4

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, 2018  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,288     $ 2,414       38.4    $ 737       11.7

Simplify to Grow Program

     —         25         139    

Intangible asset impairment charges

     —         —           68    

Mark-to-market (gains)/losses from derivatives

     —         114         112    

Acquisition integration costs

     —         —           (1  

Acquisition-related costs

     —         —           1    

Remeasurement of net monetary position

     —         —           13    

CEO transition remuneration

     —         —           4    

Rounding

     —         —           1    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,288     $ 2,553       40.6   $ 1,074       17.1

Operating income from MEA cheese business divestiture

     (29     (8       (6  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 6,259     $ 2,545       40.7   $ 1,068       17.1
  

 

 

         

Currency

       127         60    
    

 

 

     

 

 

   

Revised Adjusted @ Constant FX (Non-GAAP)

     $ 2,672       $ 1,128    
    

 

 

     

 

 

   
     For the Three Months Ended September 30, 2017  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,530     $ 2,549       39.0   $ 1,171       17.9

Simplify to Grow Program

     —         18         175    

Intangible asset impairment charges

     —         —           71    

Mark-to-market (gains)/losses from derivatives

     —         (28       (28  

Malware incident incremental expenses

     —         39         47    

Acquisition integration costs

     —         —           1    

Operating income from divestitures

     (18     (4       (5  

(Gain)/loss on divestitures

     —         —           (187  

Impacts from resolution of tax matters

     —         —           (155  

Rounding

     —         —           (1  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,512     $ 2,574       39.5   $ 1,089       16.7

Operating income from MEA cheese business divestiture

     (30     (10       (7  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 6,482     $ 2,564       39.6   $ 1,082       16.7
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ (135     $ (434  

$ Change - Adjusted (Non-GAAP)

       (21       (15  

$ Change - Revised Adjusted (Non-GAAP)

       (19       (14  

$ Change - Revised Adjusted @ Constant FX (Non-GAAP)

       108         46    

 

% Change - Reported (GAAP)

       (5.3 )%        (37.1 )%   

% Change - Adjusted (Non-GAAP)

       (0.8 )%        (1.4 )%   

% Change - Revised Adjusted (Non-GAAP)

       (0.7 )%        (1.3 )%   

% Change - Revised Adjusted @ Constant FX (Non-GAAP)

       4.2       4.3  


Schedule 2.5

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 June 30, 2018  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,112     $ 2,540       41.6    $ 481       7.9

Simplify to Grow Program

     —         20         179    

Mark-to-market (gains)/losses from derivatives

     —         (88       (88  

Acquisition integration costs

     —         —           2    

Acquisition-related costs

     —         —           13    

Impact of pension participation changes

     —         —           408    

Impacts from resolution of tax matters

     —         —           11    

CEO transition remuneration

     —         —           10    

Rounding

     —         —           2    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,112     $ 2,472       40.4   $ 1,018       16.7

Operating income from MEA cheese business divestiture

     (32     (6       (2  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 6,080     $ 2,466       40.6   $ 1,016       16.7
  

 

 

         

Currency

       (21       (10  
    

 

 

     

 

 

   

Revised Adjusted @ Constant FX (Non-GAAP)

     $ 2,445       $ 1,006    
    

 

 

     

 

 

   
     For the Three Months Ended June 30, 2017  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 5,986     $ 2,314       38.7   $ 636       10.6

Simplify to Grow Program

     —         12         199    

Intangible asset impairment charges

     —         —           38    

Mark-to-market (gains)/losses from derivatives

     —         46         46    

Malware incident incremental expenses

     —         4         7    

Divestiture-related costs

     —         1         4    

Operating income from divestitures

     (110     (37       (28  

(Gain)/loss on divestitures

     —         —           3    

Rounding

     —         —           1    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 5,876     $ 2,340       39.8   $ 906       15.4

Operating income from MEA cheese business divestiture

     (33     (10       (7  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 5,843     $ 2,330       39.9   $ 899       15.4
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ 226       $ (155  

$ Change - Adjusted (Non-GAAP)

       132         112    

$ Change - Revised Adjusted (Non-GAAP)

       136         117    

$ Change - Revised Adjusted @ Constant FX (Non-GAAP)

       115         107    

 

% Change - Reported (GAAP)

       9.8       (24.4 )%   

% Change - Adjusted (Non-GAAP)

       5.6       12.4  

% Change - Revised Adjusted (Non-GAAP)

       5.8       13.0  

% Change - Revised Adjusted @ Constant FX (Non-GAAP)

       4.9       11.9  


Schedule 2.6

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 March 31, 2018  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,765     $ 2,849       42.1   $ 1,224       18.1

Simplify to Grow Program

     —         23         114    

Mark-to-market (gains)/losses from derivatives

     —         (206       (206  

Acquisition integration costs

     —         —           1    

Divestiture-related costs

     —         —           (3  

CEO transition remuneration

     —         —           4    

Rounding

     —         —           (1  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,765     $ 2,666       39.4   $ 1,133       16.7

Operating income from MEA cheese business divestiture

     (31     (7       (6  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 6,734     $ 2,659       39.5   $ 1,127       16.7
  

 

 

         

Currency

       (133       (69  
    

 

 

     

 

 

   

Revised Adjusted @ Constant FX (Non-GAAP)

     $ 2,526       $ 1,058    
    

 

 

     

 

 

   
     For the Three Months Ended March 31, 2017  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,414     $ 2,518       39.3   $ 825       12.9

Simplify to Grow Program

     —         9         211    

Mark-to-market (gains)/losses from derivatives

     —         51         51    

Acquisition integration costs

     —         —           1    

Divestiture-related costs

     —         2         19    

Operating income from divestitures

     (136     (35       (27  

Impacts from resolution of tax matters

     —         —           (46  

Rounding

     —         —           (1  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,278     $ 2,545       40.5   $ 1,033       16.5

Operating income from MEA cheese business divestiture

     (36     (13       (11  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 6,242     $ 2,532       40.6   $ 1,022       16.4
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ 331       $ 399    

$ Change - Adjusted (Non-GAAP)

       121         100    

$ Change - Revised Adjusted (Non-GAAP)

       127         105    

$ Change - Revised Adjusted @ Constant FX (Non-GAAP)

       (6       36    

 

% Change - Reported (GAAP)

       13.1       48.4  

% Change - Adjusted (Non-GAAP)

       4.8       9.7  

% Change - Revised Adjusted (Non-GAAP)

       5.0       10.3  

% Change - Revised Adjusted @ Constant FX (Non-GAAP)

       (0.2 )%        3.5  


Schedule 2.7

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 Twelve Months Ended December 31, 2017  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 25,896     $ 10,034       38.7   $ 3,462       13.4

Simplify to Grow Program

     —         61         777    

Intangible asset impairment charges

     —         —           109    

Mark-to-market (gains)/losses from derivatives

     —         96         96    

Malware incident incremental expenses

     —         62         84    

Acquisition integration costs

     —         —           3    

Divestiture-related costs

     —         2         31    

Operating income from divestitures

     (270     (79       (61  

(Gain)/loss on divestitures

     —         —           (186  

Impacts from resolution of tax matters

     —         —           (209  

CEO transition remuneration

     —         —           14    

Rounding

     —         1         (1  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 25,626     $ 10,177       39.7   $ 4,119       16.1

Operating income from MEA cheese business divestiture

     (132     (39       (31  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 25,494     $ 10,138       39.8   $ 4,088       16.0
  

 

 

         

Currency

       (40       (3  
    

 

 

     

 

 

   

Revised Adjusted @ Constant FX (Non-GAAP)

     $ 10,098       $ 4,085    
    

 

 

     

 

 

   
     For the Twelve Months Ended December 31, 2016  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 25,923     $ 10,104       39.0   $ 2,554       9.9

Simplify to Grow Program

     —         91         1,072    

Intangible asset impairment charges

     —         —           137    

Mark-to-market (gains)/losses from derivatives

     —         94         94    

Acquisition integration costs

     —         —           7    

Acquisition-related costs

     —         —           1    

Divestiture-related costs

     —         8         86    

Operating income from divestitures

     (653     (198       (153  

(Gain)/loss on divestitures

     —         —           (9  

(Income)/costs associated with the JDE coffee business transactions

     —         —           (2  

(Gain)/loss on sale of intangible assets

     —         —           (15  

Rounding

     —         (1       1    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 25,270     $ 10,098       40.0   $ 3,773       14.9

Operating income from MEA cheese business divestiture

     (161     (54       (40  
  

 

 

   

 

 

     

 

 

   

Revised Adjusted (Non-GAAP)

   $ 25,109     $ 10,044       40.0   $ 3,733       14.9
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ (70     $ 908    

$ Change - Adjusted (Non-GAAP)

       79         346    

$ Change - Revised Adjusted (Non-GAAP)

       94         355    

$ Change - Revised Adjusted @ Constant FX (Non-GAAP)

       54         352    

 

% Change - Reported (GAAP)

       (0.7 )%        35.6  

% Change - Adjusted (Non-GAAP)

       0.8       9.2  

% Change - Revised Adjusted (Non-GAAP)

       0.9       9.5  

% Change - Revised Adjusted @ Constant FX (Non-GAAP)

       0.5       9.4  


Schedule 3.1

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Earnings and Tax Rate

(in millions of U.S. dollars and shares, except per share data)

(Unaudited)

 

    For the Three Months Ended March 31, 2019  
    Operating
Income
    Benefit
plan non-
service
expense /
(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes
(1)
    Effective
tax rate
    Gain on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-controlling
interest
    Net Earnings
attributable to
Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 1,036     $ (17   $ 80     $ 973     $ 189       19.4   $ (23   $ (113   $ 6     $ 914     $ 0.63  

Simplify to Grow Program

    70       —         —         70       19         —         —         —         51       0.03  

Mark-to-market (gains)/losses from derivatives

    (16     —         —         (16     (3       —         —         —         (13     (0.01

Divestiture-related costs

    (1     —         —         (1     —           —         —         —         (1     —    

Remeasurement of net monetary position

    2       —         —         2       —           —         —         —         2       —    

CEO transition remuneration

    3       —         —         3       —           —         —         —         3       —    

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         (1       —         —         —         1       —    

Gain on equity method investment transaction

    —         —         —         —         (5       23       —         —         (18     (0.01

Equity method investee acquisition-related and other adjustments

    —         —         —         —         4         —         (17     —         13       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,094     $ (17   $ 80     $ 1,031     $ 203       19.7   $ —       $ (130   $ 6     $ 952     $ 0.65  

Net earnings from MEA cheese business divestiture

    (4     —         —         (4     —           —         —         —         (4     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revised Adjusted (Non-GAAP)

  $ 1,090     $ (17   $ 80     $ 1,027     $ 203       19.8   $ —       $ (130   $ 6     $ 948     $ 0.65  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      84       0.06  
                   

 

 

   

 

 

 

Revised Adjusted @ Constant FX (Non-GAAP)

                    $ 1,032     $ 0.71  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,461  
    For the Three Months Ended March 31, 2018  
    Operating
Income
    Benefit
plan non-
service
expense /
(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes
(1)
    Effective
tax rate
    Gain on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-controlling
interest
    Net Earnings
attributable to
Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 1,224     $ (13   $ 80     $ 1,157     $ 337       29.1   $ —       $ (232   $ 6     $ 1,046     $ 0.70  

Simplify to Grow Program

    114       —         —         114       30         —         —         —         84       0.06  

Mark-to-market (gains)/losses from derivatives

    (206     —         —         (206     (25       —         —         —         (181     (0.12

Acquisition integration costs

    1       —         —         1       —           —         —         —         1       —    

Divestiture-related costs

    (3     —         —         (3     (2       —         —         —         (1     —    

CEO transition remuneration

    4       —         —         4       1         —         —         —         3       —    

(Gain)/loss related to interest rate swaps

    —         —         14       (14     (3       —         —         —         (11     (0.01

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         (89       —         —         —         89       0.06  

Equity method investee acquisition-related and other adjustments

    —         —         —         —         (27       —         113       —         (86     (0.06

Rounding

    (1     —         —         (1     —           —         —         —         (1     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,133     $ (13   $ 94     $ 1,052     $ 222       21.1   $ —       $ (119   $ 6     $ 943     $ 0.63  

Net earnings from MEA cheese business divestiture

    (6     —         —         (6     1         —         —         —         (7     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revised Adjusted (Non-GAAP)

  $ 1,127     $ (13   $ 94     $ 1,046     $ 223       21.3   $ —       $ (119   $ 6     $ 936     $ 0.62  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,505  

 

(1) 

Taxes were computed for each of the items excluded from the company’s GAAP results based on the facts and tax assumptions associated with each item.


Schedule 3.2

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Earnings and Tax Rate

(in millions of U.S. dollars and shares, except per share data)

(Unaudited)

 

    For the Twelve Months Ended December 31, 2018  
    Operating
Income
    Benefit
plan non-
service
expense /
(income)
    Interest
and
other
expense,

net
    Earnings
before
income

taxes
    Income
taxes
(1)
    Effective
tax rate
    Gain on
Equity
Method
Investment
Transactions
    Equity
Method
Investment
Net Losses /
(Earnings)
    Non-controlling
interest
    Net Earnings
attributable to
Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 3,312     $ (50   $ 520     $ 2,842     $ 773       27.2   $ (778   $ (548   $ 14     $ 3,381     $ 2.28  

Simplify to Grow Program

    626       (5     —         631       156         —         —         —         475       0.32  

Intangible asset impairment charges

    68       —         —         68       16         —         —         —         52       0.03  

Mark-to-market (gains)/losses from derivatives

    (141     —         1       (142     (10       —         —         —         (132     (0.09

Acquisition integration costs

    3       —         —         3       —           —         —         —         3       —    

Acquisition-related costs

    13       —         —         13       3         —         —         —         10       0.01  

Divestiture-related costs

    (1     —         —         (1     (2       —         —         —         1       —    

Remeasurement of net monetary position

    11       —         —         11       —           —         —         —         11       0.01  

Impact of pension participation changes

    423       —         (6     429       108         —         —         —         321       0.22  

Impacts from resolution of tax matters

    (15     —         (4     (11     6         —         —         —         (17     (0.01

CEO transition remuneration

    22       —         —         22       5         —         —         —         17       0.01  

(Gain)/loss related to interest rate swaps

    —         —         10       (10     (2       —         —         —         (8     (0.01

Loss on debt extinguishment and related expenses

    —         —         (140     140       35         —         —         —         105       0.07  

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         (19       —         —         —         19       0.01  

Gain on equity method investment transactions

    —         —         —         —         (192       778       —         —         (586     (0.39

Equity method investee acquisition-related and other adjustments

    —         —         —         —         (16       —         54       —         (38     (0.03
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 4,321     $ (55   $ 381     $ 3,995     $ 861       21.6   $ —       $ (494   $ 14     $ 3,614     $ 2.43  

Net earnings from MEA cheese business divestiture

    (19     —         —         (19     —           —         —         —         (19     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revised Adjusted (Non-GAAP)

  $ 4,302     $ (55   $ 381     $ 3,976     $ 861       21.7   $ —       $ (494   $ 14     $ 3,595     $ 2.42  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      41       0.03  
                   

 

 

   

 

 

 

Revised Adjusted @ Constant FX (Non-GAAP)

                    $ 3,636     $ 2.45  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,486  
    For the Twelve Months Ended December 31, 2017  
    Operating
Income
    Benefit
plan non-
service
expense /
(income)
    Interest
and
other
expense,

net
    Earnings
before
income

taxes
    Income
taxes
(1)
    Effective
tax rate
    Gain on
Equity
Method
Investment
Transactions
    Equity
Method
Investment
Net Losses /
(Earnings)
    Non-controlling
interest
    Net Earnings
attributable to
Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 3,462     $ (44   $ 382     $ 3,124     $ 666       21.3   $ (40   $ (344   $ 14     $ 2,828     $ 1.85  

Simplify to Grow Program

    777       (15     —         792       190         —         —         —         602       0.39  

Intangible asset impairment charges

    109       —         —         109       30         —         —         —         79       0.05  

Mark-to-market (gains)/losses from derivatives

    96       —         —         96       6         —         —         —         90       0.06  

Malware incident incremental expenses

    84       —         —         84       27         —         —         —         57       0.04  

Acquisition integration costs

    3       —         —         3       —           —         —         —         3       —    

Divestiture-related costs

    31       —         (3     34       (8       —         —         —         42       0.02  

Net earnings from divestitures

    (61     —         —         (61     (15       —         6       —         (52     (0.03

(Gain)/loss on divestitures

    (186     —         —         (186     (7       —         —         —         (179     (0.11

Impacts from resolution of tax matters

    (209     —         72       (281     (75       —         —         —         (206     (0.13

CEO transition remuneration

    14       —         —         14       5         —         —         —         9       0.01  

Loss on debt extinguishment and related expenses

    —         —         (11     11       4         —         —         —         7       —    

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         44         —         —         —         (44     (0.03

Gain on equity method investment transactions

    —         —         —         —         (15       40       —         —         (25     (0.02

Equity method investee acquisition-related and other adjustments

    —         —         —         —         10         —         (69     —         59       0.04  

Rounding

    (1     —         —         (1     —           —         —         —         (1     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 4,119     $ (59   $ 440     $ 3,738     $ 862       23.1   $ —       $ (407   $ 14     $ 3,269     $ 2.14  

Net earnings from MEA cheese business divestiture

    (31     —         —         (31     (1       —         —         —         (30     (0.02
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revised Adjusted (Non-GAAP)

  $ 4,088     $ (59   $ 440     $ 3,707     $ 861       23.2   $ —       $ (407   $ 14     $ 3,239     $ 2.12  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,531  

 

(1) 

Taxes were computed for each of the items excluded from the company’s GAAP results based on the facts and tax assumptions associated with each item.

 


Schedule 3.3

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Earnings and Tax Rate

(in millions of U.S. dollars and shares, except per share data)

(Unaudited)

 

    For the Three Months Ended December 31, 2018  
    Operating
Income
    Benefit
plan non-
service
expense /
(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes
(1)
    Effective
tax rate
    Gain on
Equity
Method
Investment
Transactions
    Equity
Method
Investment
Net Losses /
(Earnings)
    Non-
controlling
interest
    Net Earnings
attributable to
Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 870     $ (3   $ 106     $ 767     $ 111       14.5   $ (21   $ (149   $ 3     $ 823     $ 0.56  

Simplify to Grow Program

    194       (2     —         196       45         —         —         —         151       0.10  

Mark-to-market (gains)/losses from derivatives

    40       —         2       38       17         —         —         —         21       0.01  

Acquisition integration costs

    1       —         —         1       —           —         —         —         1       —    

Acquisition-related costs

    (1     —         —         (1     —           —         —         —         (1     —    

Divestiture-related costs

    2       —         —         2       —           —         —         —         2       —    

Remeasurement of net monetary position

    (2     —         —         (2     —           —         —         —         (2     —    

Impact of pension participation changes

    15       —         (3     18       4         —         —         —         14       0.01  

Impacts from resolution of tax matters

    (26     —         —         (26     (9       —         —         —         (17     (0.01

CEO transition remuneration

    4       —         —         4       1         —         —         —         3       —    

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         77         —         —         —         (77     (0.05

Gain on equity method investment transactions

    —         —         —         —         (8       21       —         —         (13     (0.01

Equity method investee acquisition-related and other adjustments

    —         —         —         —         8         —         (32     —         24       0.02  

Rounding

    (1     —         —         (1     —           —         —         —         (1     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,096     $ (5   $ 105     $ 996     $ 246       24.7   $ —       $ (181   $ 3     $ 928     $ 0.63  

Net earnings from MEA cheese business divestiture

    (5     —         —         (5     1         —         —         —         (6     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revised Adjusted (Non-GAAP)

  $ 1,091     $ (5   $ 105     $ 991     $ 247       24.9   $ —       $ (181   $ 3     $ 922     $ 0.63  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      68       0.04  
                   

 

 

   

 

 

 

Revised Adjusted @ Constant FX (Non-GAAP)

                    $ 990     $ 0.67  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,470  
    For the Three Months Ended December 31, 2017  
    Operating
Income
    Benefit
plan non-
service
expense /
(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes
(1)
    Effective
tax rate
    Gain on
Equity
Method
Investment
Transactions
    Equity
Method
Investment
Net Losses /
(Earnings)
    Non-controlling
interest
    Net Earnings
attributable to
Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 830     $ (14   $ 120     $ 724     $ 156       21.5   $ (40   $ (95   $ 8     $ 695     $ 0.46  

Simplify to Grow Program

    192       (3     —         195       35         —         —         —         160       0.11  

Mark-to-market (gains)/losses from derivatives

    27       —         —         27       6         —         —         —         21       0.01  

Malware incident incremental expenses

    30       —         —         30       10         —         —         —         20       0.01  

Acquisition integration costs

    1       —         —         1       —           —         —         —         1       —    

Divestiture-related costs

    9       —         —         9       5         —         —         —         4       —    

Net earnings from divestitures

    (1     —         —         (1     —           —         —         —         (1     —    

(Gain)/loss on divestitures

    (2     —         —         (2     5         —         —         —         (7     —    

Impacts from resolution of tax matters

    (8     —         —         (8     (3       —         —         —         (5     —    

CEO transition remuneration

    14       —         —         14       5         —         —         —         9       0.01  

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         44         —         —         —         (44     (0.03

Gain on equity method investment transactions

    —         —         —         —         (15       40       —         —         (25     (0.02

Equity method investee acquisition-related and other adjustments

    —         —         —         —         2         —         (21     —         19       0.01  

Rounding

    (1     —         —         (1     —           —         —         —         (1     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,091     $ (17   $ 120     $ 988     $ 250       25.3   $ —       $ (116   $ 8     $ 846     $ 0.56  

Net earnings from MEA cheese business divestiture

    (6     —         —         (6     (1       —         —         —         (5     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revised Adjusted (Non-GAAP)

  $ 1,085     $ (17   $ 120     $ 982     $ 249       25.4   $ —       $ (116   $ 8     $ 841     $ 0.56  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,513  

 

(1) 

Taxes were computed for each of the items excluded from the company’s GAAP results based on the facts and tax assumptions associated with each item.

 


Schedule 3.4

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Earnings and Tax Rate

(in millions of U.S. dollars and shares, except per share data)

(Unaudited)

 

    For the Three Months Ended September 30, 2018  
    Operating
Income
    Benefit
plan non-
service
expense /
(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes
(1)
    Effective
tax rate
    Gain on
Equity
Method
Investment
Transactions
    Equity
Method
Investment
Net Losses /
(Earnings)
    Non-controlling
interest
    Net Earnings
attributable to
Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 737     $ (19   $ 86     $ 670     $ 310       46.3