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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Tile of each class
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Trading
Symbol(s)
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Name of each exchange on which registered
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x
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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Emerging growth company
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Page No.
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PART I -
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements (Unaudited)
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Item 2.
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Item 3.
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Item 4.
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PART II -
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OTHER INFORMATION
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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For the Three Months Ended
March 31, |
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2020
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2019
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|||||
Net revenues
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$
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$
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Cost of sales
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Gross profit
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Selling, general and administrative expenses
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Asset impairment and exit costs
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Amortization of intangibles
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Operating income
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Benefit plan non-service income
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(
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)
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(
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)
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Interest and other expense, net
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Earnings before income taxes
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Provision for income taxes
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(
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)
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(
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)
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Gains on equity method investment transactions
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Equity method investment net earnings
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Net earnings
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Noncontrolling interest earnings
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(
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)
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(
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)
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Net earnings attributable to Mondelēz International
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$
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$
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Per share data:
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Basic earnings per share attributable to Mondelēz International
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$
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$
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Diluted earnings per share attributable to Mondelēz International
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$
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$
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For the Three Months Ended
March 31, |
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2020
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2019
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Net earnings
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$
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$
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Other comprehensive earnings/(losses), net of tax:
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Currency translation adjustment
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(
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)
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Pension and other benefit plans
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Derivative cash flow hedges
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(
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)
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Total other comprehensive earnings/(losses)
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(
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)
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Comprehensive earnings/(losses)
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(
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)
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less: Comprehensive earnings/(losses) attributable to
noncontrolling interests
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Comprehensive earnings/(losses) attributable to Mondelēz International
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$
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(
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)
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$
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March 31,
2020 |
December 31,
2019 |
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ASSETS
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Cash and cash equivalents
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$
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$
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Trade receivables (net of allowances of $39 at March 31, 2020
and $35 at December 31, 2019)
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Other receivables (net of allowances of $40 at March 31, 2020
and $44 at December 31, 2019)
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Inventories, net
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Other current assets
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Total current assets
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Property, plant and equipment, net
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Operating lease right of use assets
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Goodwill
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Intangible assets, net
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Prepaid pension assets
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Deferred income taxes
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Equity method investments
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Other assets
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TOTAL ASSETS
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$
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$
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LIABILITIES
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Short-term borrowings
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$
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$
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Current portion of long-term debt
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Accounts payable
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Accrued marketing
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Accrued employment costs
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Other current liabilities
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Total current liabilities
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Long-term debt
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Long-term operating lease liabilities
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Deferred income taxes
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Accrued pension costs
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Accrued postretirement health care costs
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Other liabilities
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TOTAL LIABILITIES
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Commitments and Contingencies (Note 12)
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EQUITY
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Common Stock, no par value (5,000,000,000 shares authorized and
1,996,537,778 shares issued at March 31, 2020 and December 31, 2019)
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Additional paid-in capital
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Retained earnings
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Accumulated other comprehensive losses
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(
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)
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(
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)
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Treasury stock, at cost (569,185,208 shares at March 31, 2020 and
561,531,524 shares at December 31, 2019)
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(
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)
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(
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)
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Total Mondelēz International Shareholders’ Equity
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Noncontrolling interest
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TOTAL EQUITY
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TOTAL LIABILITIES AND EQUITY
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$
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$
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Mondelēz International Shareholders’ Equity
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||||||||||||||||||||||||
Common
Stock
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Additional
Paid-in
Capital
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Retained
Earnings
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Accumulated
Other
Comprehensive
Earnings/
(Losses)
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Treasury
Stock
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Non-controlling
Interest
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Total
Equity
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|||||||||||||||||||||
Three Months Ended March 31, 2020
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Balances at January 1, 2020
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$
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$
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$
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$
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(
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)
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$
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(
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)
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$
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$
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||||||
Comprehensive earnings/(losses):
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Net earnings
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—
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—
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—
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—
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Other comprehensive earnings/(losses),
net of income taxes
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—
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—
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—
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(
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)
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—
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(
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)
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(
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)
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|||||||||||||
Exercise of stock options and issuance of
other stock awards
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—
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(
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)
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(
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)
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—
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—
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|||||||||||||
Common Stock repurchased
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—
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—
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—
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—
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(
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)
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—
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(
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)
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Cash dividends declared ($0.285 per share)
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—
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—
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(
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)
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—
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—
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—
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(
|
)
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|||||||||||||
Dividends paid on noncontrolling interest
and other activities
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—
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—
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—
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—
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—
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|||||||||||||
Balances at March 31, 2020
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$
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$
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$
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$
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(
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)
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$
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(
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)
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$
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$
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||||||
Three Months Ended March 31, 2019
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|||||||||||||||||||||||||||
Balances at January 1, 2019
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$
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$
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$
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$
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(
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)
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$
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(
|
)
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$
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$
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||||||
Comprehensive earnings/(losses):
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Net earnings
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—
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—
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—
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—
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Other comprehensive earnings/(losses),
net of income taxes
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—
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—
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—
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—
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(
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)
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|||||||||||||
Exercise of stock options and issuance of
other stock awards
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—
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(
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)
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(
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)
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—
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—
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|||||||||||||
Common Stock repurchased
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—
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—
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—
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—
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(
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)
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—
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(
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)
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Cash dividends declared ($0.26 per share)
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—
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—
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(
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)
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—
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—
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—
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(
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)
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|||||||||||||
Balances at March 31, 2019
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$
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$
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$
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$
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(
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)
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$
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(
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)
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$
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$
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For the Three Months Ended
March 31, |
|||||||
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2020
|
2019
|
|||||
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES
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Net earnings
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$
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$
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Adjustments to reconcile net earnings to operating cash flows:
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Depreciation and amortization
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Stock-based compensation expense
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Deferred income tax provision/(benefit)
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(
|
)
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Asset impairments and accelerated depreciation
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Gains on equity method investment transactions
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(
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)
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(
|
)
|
|||
Equity method investment net earnings
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(
|
)
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(
|
)
|
|||
Distributions from equity method investments
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Other non-cash items, net
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Change in assets and liabilities, net of acquisitions and divestitures:
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Receivables, net
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(
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)
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(
|
)
|
|||
Inventories, net
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(
|
)
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(
|
)
|
|||
Accounts payable
|
|
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(
|
)
|
|||
Other current assets
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(
|
)
|
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|
|||
Other current liabilities
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(
|
)
|
(
|
)
|
|||
Change in pension and postretirement assets and liabilities, net
|
(
|
)
|
(
|
)
|
|||
Net cash provided by operating activities
|
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CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES
|
|||||||
Capital expenditures
|
(
|
)
|
(
|
)
|
|||
Proceeds from divestitures including equity method investments
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Other
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(
|
)
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|||
Net cash used in investing activities
|
(
|
)
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(
|
)
|
|||
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES
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Issuances of commercial paper, maturities greater than 90 days
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Repayments of commercial paper, maturities greater than 90 days
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(
|
)
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(
|
)
|
|||
Net issuances of other short-term borrowings
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Long-term debt proceeds
|
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Long-term debt repaid
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(
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)
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(
|
)
|
|||
Repurchase of Common Stock
|
(
|
)
|
(
|
)
|
|||
Dividends paid
|
(
|
)
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(
|
)
|
|||
Other
|
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|||
Net cash provided by financing activities
|
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|||
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
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(
|
)
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(
|
)
|
|||
Cash, cash equivalents and restricted cash:
|
|||||||
Increase
|
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Balance at beginning of period
|
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Balance at end of period
|
$
|
|
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$
|
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Allowance for Trade Receivables
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Allowance for Other Current Receivables
|
Allowance for Long-Term Receivables
|
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(in millions)
|
||||||||||
Balance at January 1, 2020
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Current period provision for expected credit losses
|
(
|
)
|
|
|
(
|
)
|
|||||
Currency
|
|
|
|
|
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|
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Balance at March 31, 2020
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
As of March 31,
2020 |
As of December 31,
2019 |
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(in millions)
|
||||||
Raw materials
|
$
|
|
|
$
|
|
|
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Finished product
|
|
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|
|||
|
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|
||||
Inventory reserves
|
(
|
)
|
(
|
)
|
|||
Inventories, net
|
$
|
|
|
$
|
|
|
|
As of March 31,
2020 |
As of December 31,
2019 |
|||||
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(in millions)
|
||||||
Land and land improvements
|
$
|
|
|
$
|
|
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Buildings and building improvements
|
|
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|
|||
Machinery and equipment
|
|
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|
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Construction in progress
|
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|||
|
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|
||||
Accumulated depreciation
|
(
|
)
|
(
|
)
|
|||
Property, plant and equipment, net
|
$
|
|
|
$
|
|
|
For the Three Months Ended
March 31, |
|||||||
|