8-K
Mondelez International, Inc. false 0001103982 0001103982 2020-07-09 2020-07-09 0001103982 us-gaap:CommonClassAMember 2020-07-09 2020-07-09 0001103982 mdlz:M2.375NotesDue20216Member 2020-07-09 2020-07-09 0001103982 mdlz:M1.000NotesDue20221Member 2020-07-09 2020-07-09 0001103982 mdlz:OnePointSixTwentyFivePercentNotesDue2023Member 2020-07-09 2020-07-09 0001103982 mdlz:M1.625NotesDue20272Member 2020-07-09 2020-07-09 0001103982 mdlz:M2.375NotesDue20353Member 2020-07-09 2020-07-09 0001103982 mdlz:M4.500NotesDue20354Member 2020-07-09 2020-07-09 0001103982 mdlz:M3.875NotesDue20455Member 2020-07-09 2020-07-09

 

 

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 9, 2020

 

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.)

905 West Fulton Market, Suite 200, Chicago, Illinois 60607

(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:

Title 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.

Mondelēz International, Inc. and subsidiaries (collectively, “we,” “our” or “Mondelēz International”) are furnishing this current report to provide supplemental financial information related to the retrospective impact on such financial information due to (1) a change in accounting principle following the exchange of our ownership in Jacobs Douwe Egberts (“JDE”) for an equity interest in JDE Peet’s N.V. and (2) our sale of approximately 6.8 million Keurig Dr Pepper Inc. shares in a secondary offering we participated in on March 4, 2020. In connection with the JDE exchange, we changed our accounting principle to reflect our share of JDE’s historical and JDE Peet’s N.V.’s ongoing earnings on a one-quarter lag basis, although we continue to record dividends when cash is received.

Change to our Historical Financial Results in connection with JDE Peet’s Offering

As previously disclosed in our Form 8-K filed June 2, 2020, JDE Peet’s B.V. (renamed JDE Peet’s N.V. immediately prior to Settlement (as defined below), “JDE Peet’s”) announced on May 19, 2020 its intention to launch an offering of its ordinary shares (the “offering”) and to apply for admission to listing and trading of all of its ordinary shares on Euronext Amsterdam, a regulated market operated by Euronext Amsterdam N.V. (the “admission”). On May 26, 2020, JDE Peet’s published a prospectus in connection with the offering and the admission. On May 29, 2020, JDE Peet’s announced the final pricing terms of the offering, and JDE Peet’s and the selling shareholders, including us, agreed to sell at a price of 31.50 per ordinary share a total of approximately 82.1 million ordinary shares, including ordinary shares subject to an over-allotment option. The ordinary shares were listed and first traded on May 29, 2020, and payment for, and delivery of, the ordinary shares sold in the offering (excluding ordinary shares subject to the over-allotment option) took place on June 2, 2020 (“Settlement”).

Prior to Settlement, we exchanged our 26.4% ownership interest in JDE for a 26.5% equity interest in JDE Peet’s. We did not invest new capital in connection with the transaction. Upon Settlement, we sold approximately 9.7 million of our ordinary shares in JDE Peet’s to buyers in the offering for gross proceeds of 304 million ($343 million). We subsequently sold approximately 1.4 million additional shares and received gross proceeds of 46 million ($51 million) upon exercise of the over-allotment option. Following Settlement and the exercise of the over-allotment option, we hold 22.9% equity interest in JDE Peet’s.

As was the case in our ownership interest in JDE, we have significant influence with respect to JDE Peet’s, and we will continue to account for our investment in JDE Peet’s under the equity method, resulting in recognizing our share of JDE Peet’s earnings within our earnings and our share of JDE Peet’s dividends within our cash flows. In connection with this transaction, we changed our accounting principle to reflect our share of JDE’s historical and JDE Peet’s ongoing earnings on a one-quarter lag basis, although we continue to record dividends when cash is received. We determined a lag was preferable as it enables us to continue to report our quarterly and annual results on a timely basis, while recording our share in JDE Peet’s ongoing results after JDE Peet’s has publicly reported its results. This change in accounting principle was applied retrospectively to all periods. This change in accounting principle has resulted in recasting our historical financial results for reported equity method investment net earnings, net earnings and earnings per share (“EPS”) as well as for our non-GAAP financial results for Adjusted EPS.

Change to our Historical Non-GAAP Financial Results in connection with our Participation in Keurig Dr Pepper’s Secondary Share Offering

In addition to the above transaction, on March 4, 2020, we participated in a secondary offering of Keurig Dr Pepper Inc. (“KDP”) shares and sold approximately 6.8 million shares, which reduced our ownership interest by 0.5% to 13.1% of the total outstanding shares. We received $185 million of proceeds and recorded a pre-tax gain of $71 million (or $54 million after-tax) during the three months ended March 31, 2020. We continue to retain significant influence. However, we consider the 0.5% ownership reduction a partial divestiture of our equity method investment in KDP. Therefore, we will remove the equity method investment net earnings results of this divested portion of our ownership from our non-GAAP financial results for Adjusted EPS going forward and for all historical periods presented. Our U.S. GAAP results, which include our equity method investment net earnings from KDP, will not change and will continue to include the results of the divested operations through the divestiture closing date noted above.

Recast Amounts Reflecting Changes in Historical Results

The changes described above do not affect our previously reported consolidated net revenues, gross profit or operating income, nor do they affect our non-GAAP financial results for Organic Net Revenue, Adjusted Gross Profit or Adjusted

2


Operating Income, for any period. This supplemental disclosure does not amend any disclosure contained in any of our prior SEC filings. See the chart below and Exhibit 99.1 for the recast unaudited GAAP and non-GAAP financial information for the first quarter of 2020, all quarters of 2019 and 2018 and for the years ended December 31, 2019 and 2018.

Mondelēz International, Inc. and Subsidiaries

Recast Amounts Reflecting Changes in Historical Results

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

(Unaudited)

 

2018

   

2019

   

2018

   

2019

   

2020

 

 

FY

   

FY

   

Q1

   

Q2

   

Q3

   

Q4

   

Q1

   

Q2

   

Q3

   

Q4

   

Q1

 

Recast (GAAP)

   

     

     

     

     

     

     

     

     

     

     

 

Equity method investment net earnings

  $

484

    $

501

    $

229

    $

88

    $

84

    $

83

    $

166

    $

109

    $

114

    $

112

    $

121

 

Provision for income taxes

  $

773

    $

2

    $

337

    $

15

    $

310

    $

111

    $

189

    $

216

    $

(633

)   $

230

    $

148

 

Net earnings attributable to Mondelēz International

  $

3,317

    $

3,929

    $

1,043

    $

319

    $

1,198

    $

757

    $

967

    $

803

    $

1,426

    $

733

    $

736

 

Diluted earnings per share attributable to Mondelēz International

  $

2.23

    $

2.69

    $

0.69

    $

0.21

    $

0.81

    $

0.51

    $

0.66

    $

0.55

    $

0.98

    $

0.50

    $

0.51

 
                                                                                         

Recast Adjusted (Non-GAAP)

   

     

     

     

     

     

     

     

     

     

     

 

Equity method investment net earnings

  $

439

    $

551

    $

129

    $

96

    $

92

    $

122

    $

182

    $

119

    $

125

    $

125

    $

127

 

Provision for income taxes

  $

859

    $

878

    $

224

    $

207

    $

182

    $

246

    $

203

    $

220

    $

174

    $

281

    $

203

 

Net earnings attributable to Mondelēz International

  $

3,542

    $

3,650

    $

945

    $

822

    $

911

    $

864

    $

1,000

    $

822

    $

936

    $

892

    $

971

 

Diluted earnings per share attributable to Mondelēz International

  $

2.38

    $

2.50

    $

0.63

    $

0.55

    $

0.62

    $

0.59

    $

0.68

    $

0.56

    $

0.64

    $

0.61

    $

0.67

 

Financial Schedules

Exhibit 99.1 to this Form 8-K contains financial schedules that provide the reconciliations for our recast reported equity method investment net earnings, net earnings and EPS and our non-GAAP financial results for Adjusted EPS after this change in accounting principle and increase in divested operations for the first quarter of 2020, all quarters of 2019 and 2018 and for the years ended December 31, 2019 and 2018.

  Schedule 1 demonstrates the change in our accounting principle to reflect our share of JDE’s historical and JDE Peet’s ongoing earnings on a one-quarter lag basis and its impact on net earnings and diluted earnings per share attributable to Mondelēz International.

  Schedule 2 provides reconciliations of the differences between these recast adjusted (non-GAAP) financial measures and their most directly comparable recast (GAAP) financial measures. Equity method investment net earnings and Provision for income taxes are components used to calculate net earnings and diluted earnings per share attributable to Mondelēz International.

  Schedule 3 provides reconciliations between the recast diluted EPS attributable to Mondelēz International (GAAP) and recast Adjusted EPS (non-GAAP).

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. For additional information regarding our non-GAAP financial measures, see Exhibit 99.2.

Item 9.01. Financial Statements and Exhibits.

(d) The following exhibits are being furnished with this Current Report on Form 8-K.

         
 

99.1

   

Financial schedules – Unaudited GAAP and Non-GAAP Financial Information.

         
 

99.2

   

Non-GAAP Financial Measures – Additional Information.

         
 

104

   

The cover page from Mondelēz International, Inc.’s Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101).

3


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 9, 2020

4

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

Condensed Consolidated Statements of Earnings

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

(Unaudited)

 

     For the Three Months Ended March 31, 2020  
     As
Reported
    Remove
current
period
JDE
results
     Add
prior
period
JDE
results
     As
Recast
 

Net revenues

   $ 6,707           $ 6,707  

Cost of sales

     4,256             4,256  
  

 

 

         

 

 

 

Gross profit

     2,451             2,451  

Gross profit margin

     36.5           36.5

Selling, general and administrative expenses

     1,537             1,537  

Asset impairment and exit costs

     15             15  

Amortization of intangibles

     43             43  
  

 

 

         

 

 

 

Operating income

     856             856  

Operating income margin

     12.8           12.8

Benefit plan non-service income

     (33           (33

Interest and other expense, net

     190             190  
  

 

 

         

 

 

 

Earnings before income taxes

     699             699  

Provision for income taxes

     (148           (148

Effective tax rate

     21.2           21.2

Gain on equity method investment transactions

     71             71  

Equity method investment net earnings

     138     $ (59    $ 42        121  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings

     760       (59      42        743  

Noncontrolling interest earnings

     (7           (7
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings attributable to Mondelēz International

   $ 753     $ (59    $ 42      $ 736  
  

 

 

   

 

 

    

 

 

    

 

 

 

Per share data:

          

Basic earnings per share attributable to Mondelēz International

   $ 0.53           $ 0.51  
  

 

 

         

 

 

 

Diluted earnings per share attributable to Mondelēz International

   $ 0.52           $ 0.51  
  

 

 

         

 

 

 

Average shares outstanding:

          

Basic

     1,434             1,434  

Diluted

     1,445             1,445  


Schedule 1.2

Mondelēz International, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings

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

(Unaudited)

 

     For the Twelve Months Ended December 31, 2019  
     As
Reported
    Remove
current
period
JDE
results
     Add
prior
period
JDE
results
     As
Recast
 

Net revenues

   $ 25,868           $ 25,868  

Cost of sales

     15,531             15,531  
  

 

 

         

 

 

 

Gross profit

     10,337             10,337  

Gross profit margin

     40.0           40.0

Selling, general and administrative expenses

     6,136             6,136  

Asset impairment and exit costs

     228             228  

Gain on divestitures

     (44           (44

Amortization of intangibles

     174             174  
  

 

 

         

 

 

 

Operating income

     3,843             3,843  

Operating income margin

     14.9           14.9

Benefit plan non-service income

     (60           (60

Interest and other expense, net

     456             456  
  

 

 

         

 

 

 

Earnings before income taxes

     3,447             3,447  

Provision for income taxes

     (2           (2

Effective tax rate

     0.1           0.1

Loss on equity method investment transaction

     (2           (2

Equity method investment net earnings

     442     $ (195    $ 254        501  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings

     3,885       (195      254        3,944  

Noncontrolling interest earnings

     (15           (15
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings attributable to Mondelēz International

   $ 3,870     $ (195    $ 254      $ 3,929  
  

 

 

   

 

 

    

 

 

    

 

 

 

Per share data:

          

Basic earnings per share attributable to Mondelēz International

   $ 2.68           $ 2.72  
  

 

 

         

 

 

 

Diluted earnings per share attributable to Mondelēz International

   $ 2.65           $ 2.69  
  

 

 

         

 

 

 

Average shares outstanding:

          

Basic

     1,445             1,445  

Diluted

     1,458             1,458  


Schedule 1.3

Mondelēz International, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings

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

(Unaudited)

 

     For the Three Months Ended December 31, 2019  
     As
Reported
    Remove
current
period
JDE
results
     Add
prior
period
JDE
results
     As
Recast
 

Net revenues

   $ 6,913           $ 6,913  

Cost of sales

     4,154             4,154  
  

 

 

         

 

 

 

Gross profit

     2,759             2,759  

Gross profit margin

     39.9           39.9

Selling, general and administrative expenses

     1,750             1,750  

Asset impairment and exit costs

     59             59  

Amortization of intangibles

     44             44  
  

 

 

         

 

 

 

Operating income

     906             906  

Operating income margin

     13.1           13.1

Benefit plan non-service income

     (18           (18

Interest and other expense, net

     70             70  
  

 

 

         

 

 

 

Earnings before income taxes

     854             854  

Provision for income taxes

     (230           (230

Effective tax rate

     26.9           26.9

Equity method investment net earnings

     105     $ (43    $ 50        112  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings

     729       (43      50        736  

Noncontrolling interest earnings

     (3           (3
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings attributable to Mondelēz International

   $ 726     $ (43    $ 50      $ 733  
  

 

 

   

 

 

    

 

 

    

 

 

 

Per share data:

          

Basic earnings per share attributable to Mondelēz International

   $ 0.50           $ 0.51  
  

 

 

         

 

 

 

Diluted earnings per share attributable to Mondelēz International

   $ 0.50           $ 0.50  
  

 

 

         

 

 

 

Average shares outstanding:

          

Basic

     1,441             1,441  

Diluted

     1,453             1,453  


Schedule 1.4

Mondelēz International, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings

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

(Unaudited)

 

     For the Three Months Ended September 30, 2019  
     As
Reported
    Remove
current
period
JDE
results
     Add
prior
period
JDE
results
     As
Recast
 

Net revenues

   $ 6,355           $ 6,355  

Cost of sales

     3,839             3,839  
  

 

 

         

 

 

 

Gross profit

     2,516             2,516  

Gross profit margin

     39.6           39.6

Selling, general and administrative expenses

     1,466             1,466  

Asset impairment and exit costs

     134             134  

Gain on divestitures

     (3           (3

Amortization of intangibles

     43             43  
  

 

 

         

 

 

 

Operating income

     876             876  

Operating income margin

     13.8           13.8

Benefit plan non-service income

     (13           (13

Interest and other expense, net

     205             205  
  

 

 

         

 

 

 

Earnings before income taxes

     684             684  

Benefit for income taxes

     633             633  

Effective tax rate

     (92.5 )%            (92.5 )% 

Equity method investment net earnings

     111     $ (49    $ 52        114  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings

     1,428       (49      52        1,431  

Noncontrolling interest earnings

     (5           (5
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings attributable to Mondelēz International

   $ 1,423     $ (49    $ 52      $ 1,426  
  

 

 

   

 

 

    

 

 

    

 

 

 

Per share data:

          

Basic earnings per share attributable to Mondelēz International

   $ 0.98           $ 0.99  
  

 

 

         

 

 

 

Diluted earnings per share attributable to Mondelēz International

   $ 0.98           $ 0.98  
  

 

 

         

 

 

 

Average shares outstanding:

          

Basic

     1,445             1,445  

Diluted

     1,458             1,458  


Schedule 1.5

Mondelēz International, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings

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

(Unaudited)

 

     For the Three Months Ended June 30, 2019  
     As
Reported
    Remove
current
period
JDE
results
     Add
prior
period
JDE
results
     As
Recast
 

Net revenues

   $ 6,062           $ 6,062  

Cost of sales

     3,593             3,593  
  

 

 

         

 

 

 

Gross profit

     2,469             2,469  

Gross profit margin

     40.7           40.7

Selling, general and administrative expenses

     1,427             1,427  

Asset impairment and exit costs

     15             15  

Gain on divestitures

     (41           (41

Amortization of intangibles

     43             43  
  

 

 

         

 

 

 

Operating income

     1,025             1,025  

Operating income margin

     16.9           16.9

Benefit plan non-service income

     (12           (12

Interest and other expense, net

     101             101  
  

 

 

         

 

 

 

Earnings before income taxes

     936             936  

Provision for income taxes

     (216           (216

Effective tax rate

     23.1           23.1

Loss on equity method investment transaction

     (25           (25

Equity method investment net earnings

     113     $ (53    $ 49        109  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings

     808       (53      49        804  

Noncontrolling interest earnings

     (1           (1
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings attributable to Mondelēz International

   $ 807     $ (53    $ 49      $ 803  
  

 

 

   

 

 

    

 

 

    

 

 

 

Per share data:

          

Basic earnings per share attributable to Mondelēz International

   $ 0.56           $ 0.56  
  

 

 

         

 

 

 

Diluted earnings per share attributable to Mondelēz International

   $ 0.55           $ 0.55  
  

 

 

         

 

 

 

Average shares outstanding:

          

Basic

     1,445             1,445  

Diluted

     1,458             1,458  


Schedule 1.6

Mondelēz International, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings

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

(Unaudited)

 

     For the Three Months Ended March 31, 2019  
     As
Reported
    Remove
current
period
JDE
results
     Add
prior
period
JDE
results
     As
Recast
 

Net revenues

   $ 6,538           $ 6,538  

Cost of sales

     3,945             3,945  
  

 

 

         

 

 

 

Gross profit

     2,593             2,593  

Gross profit margin

     39.7           39.7

Selling, general and administrative expenses

     1,493             1,493  

Asset impairment and exit costs

     20             20  

Amortization of intangibles

     44             44  
  

 

 

         

 

 

 

Operating income

     1,036             1,036  

Operating income margin

     15.8           15.8

Benefit plan non-service income

     (17           (17

Interest and other expense, net

     80             80  
  

 

 

         

 

 

 

Earnings before income taxes

     973             973  

Provision for income taxes

     (189           (189

Effective tax rate

     19.4           19.4

Gain on equity method investment transactions

     23             23  

Equity method investment net earnings

     113     $ (50    $ 103        166  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings

     920       (50      103        973  

Noncontrolling interest earnings

     (6           (6
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings attributable to Mondelēz International

   $ 914     $ (50    $ 103      $ 967  
  

 

 

   

 

 

    

 

 

    

 

 

 

Per share data:

          

Basic earnings per share attributable to Mondelēz International

   $ 0.63           $ 0.67  
  

 

 

         

 

 

 

Diluted earnings per share attributable to Mondelēz International

   $ 0.63           $ 0.66  
  

 

 

         

 

 

 

Average shares outstanding:

          

Basic

     1,449             1,449  

Diluted

     1,461             1,461  


Schedule 1.7

Mondelēz International, Inc. and Subsidiaries

Condensed Consolidated Statements of Earnings

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

(Unaudited)

 

     For the Twelve Months Ended December 31, 2018  
     As
Reported
    Remove
current
period
JDE
results
     Add
prior
period
JDE
results
     As
Recast
 

Net revenues

   $ 25,938           $ 25,938  

Cost of sales

     15,586             15,586  
  

 

 

         

 

 

 

Gross profit

     10,352             10,352  

Gross profit margin

     39.9           39.9

Selling, general and administrative expenses

     6,475             6,475  

Asset impairment and exit costs

     389             389  

Amortization of intangibles

     176             176  
  

 

 

         

 

 

 

Operating income

     3,312             3,312  

Operating income margin

     12.8           12.8

Benefit plan non-service income

     (50           (50

Interest and other expense, net

     520             520  
  

 

 

         

 

 

 

Earnings before income taxes

     2,842             2,842  

Provision for income taxes

     (773           (773

Effective tax rate

     27.2           27.2

Gain on equity method investment transactions

     778             778  

Equity method investment net earnings

     548     $ (230    $ 166        484  
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings

     3,395       (230      166        3,331  

Noncontrolling interest earnings

     (14           (14
  

 

 

   

 

 

    

 

 

    

 

 

 

Net earnings attributable to Mondelēz International

   $ 3,381     $ (230    $ 166      $ 3,317  
  

 

 

   

 

 

    

 

 

    

 

 

 

Per share data:

          

Basic earnings per share attributable to Mondelēz International

   $ 2.30           $ 2.25  
  

 

 

         

 

 

 

Diluted earnings per share attributable to Mondelēz International

   $ 2.28           $ 2.23  
  

 

 

         

 

 

 

Average shares outstanding:

          

Basic

     1,472             1,472  

Diluted

     1,486             1,486  


Schedule 2.1

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, 2020  
    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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 856     $ (33   $ 190     $ 699     $ 148       21.2   $ (71   $ (121   $ 7     $ 736     $ 0.51  

Simplify to Grow Program

    58       —         —         58       13         —         —         —         45       0.03  

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

    185       —         1       184       32         —         —         —         152       0.11  

Acquisition-related costs

    5       —         —         5       1         —         —         —         4       —    

Net earnings from divestitures - KDP

    —         —         —         —         —           —         2       —         (2     —    

Remeasurement of net monetary position

    2       —         —         2       —           —         —         —         2       —    

Impact from pension participation changes

    —         —         (3     3       1         —         —         —         2       —    

Loss related to interest rate swaps

    —         —         (103     103       24         —         —         —         79       0.06  

Gain on equity method investment transactions

    —         —         —         —         (17       71       —         —         (54     (0.04

Equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         1         —         (8     —         7       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,106     $ (33   $ 85     $ 1,054     $ 203       19.3   $ —       $ (127   $ 7     $ 971     $ 0.67  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      43       0.03  
                   

 

 

   

 

 

 

Adjusted @ Constant FX (Non-GAAP) - As Recast

                    $ 1,014     $ 0.70  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,445  
    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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 1,036     $ (17   $ 80     $ 973     $ 189       19.4   $ (23   $ (166   $ 6     $ 967     $ 0.66  

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     —    

Net earnings from divestitures

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

Net earnings from divestitures - KDP

    —         —         —         —         —           —         1       —         (1     —    

Remeasurement of net monetary position

    2       —         —         2       —           —         —         —         2       —    

CEO transition remuneration

    3       —         —         3       —           —         —         —         3       —    

U.S. tax reform discrete net tax expense

    —         —         —         —         (1       —         —         —         1       —    

Gain on equity method investment transactions

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

Equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         4         —         (17     —         13       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,090     $ (17   $ 80     $ 1,027     $ 203       19.8   $ —       $ (182   $ 6     $ 1,000     $ 0.68  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,461  

 

(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 2.2

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, 2019  
    Operating
Income
    Benefit
plan
non-

service
expense /
(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Loss on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling
interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 3,843     $ (60   $ 456     $ 3,447     $ 2       0.1   $ 2     $ (501   $ 15     $ 3,929     $ 2.69  

Simplify to Grow Program

    442       (6     —         448       103         —         —         —         345       0.24  

Intangible asset impairment charges

    57       —         —         57       14         —         —         —         43       0.03  

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

    (91     —         (1     (90     (19       —         —         —         (71     (0.05

Acquisition-related costs

    3       —         —         3       1         —         —         —         2       —    

Divestiture-related costs

    6       —         —         6       —           —         —         —         6       —    

Net earnings from divestitures

    (9     —         —         (9     —           —         —         —         (9     (0.01

Net earnings from divestitures - KDP

    —         —         —         —         (2       —         6       —         (4     —    

Gain on divestitures

    (44     —         —         (44     (3       —         —         —         (41     (0.03

Remeasurement of net monetary position

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

Impact from pension participation changes

    (35     —         (6     (29     (8       —         —         —         (21     (0.02

Impact from resolution of tax matters

    85       —         —         85       21         —         —         —         64       0.05  

CEO transition remuneration

    9       —         —         9       —           —         —         —         9       0.01  

Loss related to interest rate swaps

    —         —         (111     111       —           —         —         —         111       0.08  

Swiss tax reform net impacts

    2       —         —         2       769         —         —         —         (767     (0.53

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

    —         —         —         —         (5       —         —         —         5       —    

Loss on equity method investment transactions

    —         —         —         —         (6       (2     —         —         8       0.01  

Equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         11         —         (56     —         45       0.03  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,264     $ (66   $ 338     $ 3,992     $ 878       22.0   $ —       $ (551   $ 15     $ 3,650     $ 2.50  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      222       0.16  
                   

 

 

   

 

 

 

Adjusted @ Constant FX (Non-GAAP) - As Recast

                    $ 3,872     $ 2.66  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,458  
    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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 3,312     $ (50   $ 520     $ 2,842     $ 773       27.2   $ (778   $ (484   $ 14     $ 3,317     $ 2.23  

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       —    

Net earnings from divestitures

    (19     —         —         (19     —           —         —         —         (19     (0.02

Net earnings from divestitures - KDP

    —         —         —         —         (2       —         8       —         (6     —    

Remeasurement of net monetary position

    11       —         —         11       —           —         —         —         11       0.01  

Impact from pension participation changes

    423       —         (6     429       108         —         —         —         321       0.22  

Impact from resolution of tax matters

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

CEO transition remuneration

    22       —         —         22       5         —         —         —         17       0.01  

Gain 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 or other charges/benefits, net

    —         —         —         —         (16       —         37       —         (21     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,302     $ (55   $ 381     $ 3,976     $ 859       21.6   $ —       $ (439   $ 14     $ 3,542     $ 2.38  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,486  

 

(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 2.3

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, 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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 906     $ (18   $ 70     $ 854     $ 230       26.9   $ —       $ (112   $ 3     $ 733     $ 0.50  

Simplify to Grow Program

    138       —         —         138       36         —         —         —         102       0.07  

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

    (22     —         1       (23     (5       —         —         —         (18     (0.01

Acquisition-related costs

    1       —         —         1       —           —         —         —         1       —    

Net earnings from divestitures - KDP

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

Remeasurement of net monetary position

    (6     —         —         (6     —           —         —         —         (6     —    

Impact from pension participation changes

    —         —         (3     3       1         —         —         —         2       —    

Impact from resolution of tax matters

    85       —         —         85       21         —         —         —         64       0.04  

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

    —         —         —         —         (3       —         —         —         3       —    

Equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         2         —         (15     —         13       0.01  

Rounding

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,101     $ (18   $ 68     $ 1,051     $ 281       26.7   $ —       $ (125   $ 3     $ 892     $ 0.61  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      35       0.03  
                   

 

 

   

 

 

 

Adjusted @ Constant FX (Non-GAAP) - As Recast

                    $ 927     $ 0.64  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,453  
    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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 870     $ (3   $ 106     $ 767     $ 111       14.5   $ (21   $ (83   $ 3     $ 757     $ 0.51  

Simplify to Grow Program

    194       (2     —         196       45         —         —         —         151       0.10  

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

    40       —         2       38       17         —         —         —         21       0.02  

Acquisition integration costs

    1       —         —         1       —           —         —         —         1       —    

Acquisition-related costs

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

Divestiture-related costs

    2       —         —         2       —           —         —         —         2       —    

Net earnings from divestitures

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

Net earnings from divestitures - KDP

    —         —         —         —         —           —         1       —         (1     —    

Remeasurement of net monetary position

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

Impact from pension participation changes

    15       —         (3     18       4         —         —         —         14       0.01  

Impact 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 or other charges/benefits, net

    —         —         —         —         7         —         (40     —         33       0.02  

Rounding

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,091     $ (5   $ 105     $ 991     $ 246       24.8   $ —       $ (122   $ 3     $ 864     $ 0.59  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,470  

 

(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 2.4

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, 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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 876     $ (13   $ 205     $ 684     $ (633     (92.5 )%    $ —       $ (114   $ 5     $ 1,426     $ 0.98  

Simplify to Grow Program

    151       (1     —         152       29         —         —         —         123       0.08  

Intangible asset impairment charges

    57       —         —         57       14         —         —         —         43       0.03  

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

    (20     —         (2     (18     (8       —         —         —         (10     (0.01

Acquisition-related costs

    1       —         —         1       1         —         —         —         —         —    

Divestiture-related costs

    (4     —         —         (4     (1       —         —         —         (3     —    

Net earnings from divestitures - KDP

    —         —         —         —         —           —         1       —         (1     —    

Gain on divestitures

    (3     —         —         (3     1         —         —         —         (4     —    

Remeasurement of net monetary position

    1       —         —         1       —           —         —         —         1       —    

Impact from pension participation changes

    —         —         (3     3       —           —         —         —         3       —    

CEO transition remuneration

    3       —         —         3       —           —         —         —         3       —    

Loss related to interest rate swaps

    —         —         (111     111       —           —         —         —         111       0.08  

Swiss tax reform net impacts

    2       —         —         2       769         —         —         —         (767     (0.53

Equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         2         —         (12     —         10       0.01  

Rounding

    1       —         —         1       —           —         —         —         1       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,065     $ (14   $ 89     $ 990     $ 174       17.6   $ —       $ (125   $ 5     $ 936     $ 0.64  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      46       0.03  
                   

 

 

   

 

 

 

Adjusted @ Constant FX (Non-GAAP) - As Recast

                    $ 982     $ 0.67  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,458  
    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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 737     $ (19   $ 86     $ 670     $ 310       46.3   $ (757   $ (84   $ 3     $ 1,198     $ 0.81  

Simplify to Grow Program

    139       —         —         139       34         —         —         —         105       0.07  

Intangible asset impairment charges

    68       —         —         68       16         —         —         —         52       0.03  

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

    112       —         (1     113       12         —         —         —         101       0.07  

Acquisition integration costs

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

Acquisition-related costs

    1       —         —         1       —           —         —         —         1       —    

Net earnings from divestitures

    (6     —         —         (6     —           —         —         —         (6     —    

Net earnings from divestitures - KDP

    —         —         —         —         (1       —         1       —         —         —    

Remeasurement of net monetary position

    13       —         —         13       —           —         —         —         13       0.01  

Impact from pension participation changes

    —         —         (3     3       1         —         —         —         2       —    

CEO transition remuneration

    4       —         —         4       1         —         —         —         3       —    

Gain related to interest rate swaps

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

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

    —         —         —         —         (9       —         —         —         9       0.01  

Gain on equity method investment transactions

    —         —         —         —         (184       757       —         —         (573     (0.39

Equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         2         —         (9     —         7       0.01  

Rounding

    1       —         —         1       —           —         —         —         1       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,068     $ (19   $ 83     $ 1,004     $ 182       18.1   $ —       $ (92   $ 3     $ 911     $ 0.62  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,480  

 

(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 2.5

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 June 30, 2019  
    Operating
Income
    Benefit
plan
non-

service
expense /
(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Loss on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling
interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 1,025     $ (12   $ 101     $ 936     $ 216       23.1   $ 25     $ (109   $ 1     $ 803     $ 0.55  

Simplify to Grow Program

    83       (5     —         88       19         —         —         —         69       0.05  

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

    (33     —         —         (33     (3       —         —         —         (30     (0.02

Acquisition-related costs

    1       —         —         1       —           —         —         —         1       —    

Divestiture-related costs

    11       —         —         11       1         —         —         —         10       0.01  

Net earnings from divestitures

    (5     —         —         (5     —           —         —         —         (5     (0.01

Net earnings from divestitures - KDP

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

Gain on divestitures

    (41     —         —         (41     (3       —         —         —         (38     (0.03

Remeasurement of net monetary position

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

Impact from pension participation changes

    (35     —         —         (35     (9       —         —         —         (26     (0.02

CEO transition remuneration

    3       —         —         3       —           —         —         —         3       —    

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

    —         —         —         —         (1       —         —         —         1       —    

Loss on equity method investment transactions

    —         —         —         —         (2       (25     —         —         27       0.02  

Equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         3         —         (12     —         9       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,008     $ (17   $ 101     $ 924     $ 220       23.8   $ —       $ (119   $ 1     $ 822     $ 0.56  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      53       0.04  
                   

 

 

   

 

 

 

Adjusted @ Constant FX (Non-GAAP) - As Recast

                    $ 875     $ 0.60  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,458  
    For the Three Months Ended June 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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 481     $ (15   $ 248     $ 248     $ 15       6.0   $ —       $ (88   $ 2     $ 319     $ 0.21  

Simplify to Grow Program

    179       (3     —         182       47         —         —         —         135       0.09  

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

    (88     —         —         (88     (14       —         —         —         (74     (0.05

Acquisition integration costs

    2       —         —         2       —           —         —         —         2       —    

Acquisition-related costs

    13       —         —         13       3         —         —         —         10       0.01  

Net earnings from divestitures

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

Net earnings from divestitures - KDP

    —         —         —         —         (1       —         —         —         1       —    

Impact from pension participation changes

    408       —         —         408       103         —         —         —         305       0.20  

Impact from resolution of tax matters

    11       —         (4     15       15         —         —         —         —         —    

CEO transition remuneration

    10       —         —         10       2         —         —         —         8       0.01  

Loss related to interest rate swaps

    —         —         (5     5       1         —         —         —         4       —    

Loss on debt extinguishment and related expenses

    —         —         (140     140       35         —         —         —         105       0.07  

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

    —         —         —         —         2         —         —         —         (2     —    

Equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         1         —         (8     —         7       0.01  

Rounding

    2       —         —         2       —           —         —         —         2       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,016     $ (18   $ 99     $ 935     $ 207       22.1   $ —       $ (96   $ 2     $ 822     $ 0.55  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,488  

 

(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 2.6

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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 1,036     $ (17   $ 80     $ 973     $ 189       19.4   $ (23   $ (166   $ 6     $ 967     $ 0.66  

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     —    

Net earnings from divestitures

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

Net earnings from divestitures - KDP

    —         —         —         —         —           —         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 transactions

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

Equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         4         —         (17     —         13       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,090     $ (17   $ 80     $ 1,027     $ 203       19.8   $ —       $ (182   $ 6     $ 1,000     $ 0.68  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      88       0.06  
                   

 

 

   

 

 

 

Adjusted @ Constant FX (Non-GAAP) - As Recast

                    $ 1,088     $ 0.74  
                   

 

 

   

 

 

 

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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 1,224     $ (13   $ 80     $ 1,157     $ 337       29.1   $ —       $ (229   $ 6     $ 1,043     $ 0.69  

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     —    

Net earnings from divestitures

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

Net earnings from divestitures - KDP

    —         —         —         —         —           —         6       —         (6     —    

CEO transition remuneration

    4       —         —         4       1         —         —         —         3       —    

Gain 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 or other charges/benefits, net

    —         —         —         —         (26       —         94       —         (68     (0.04

Rounding

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,127     $ (13   $ 94     $ 1,046     $ 224       21.4   $ —       $ (129   $ 6     $ 945     $ 0.63  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 2.7

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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 3,312     $ (50   $ 520     $ 2,842     $ 773       27.2   $ (778   $ (484   $ 14     $ 3,317     $ 2.23  

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       —    

Net earnings from divestitures

    (19     —         —         (19     —           —         —         —         (19     (0.02

Net earnings from divestitures - KDP

    —         —         —         —         (2       —         8       —         (6     —    

Remeasurement of net monetary position

    11       —         —         11       —           —         —         —         11       0.01  

Impact from pension participation changes

    423       —         (6     429       108         —         —         —         321       0.22  

Impact from resolution of tax matters

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

CEO transition remuneration

    22       —         —         22       5         —         —         —         17       0.01  

Gain 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 or other charges/benefits, net

    —         —         —         —         (16       —         37       —         (21     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,302     $ (55   $ 381     $ 3,976     $ 859       21.6   $ —       $ (439   $ 14     $ 3,542     $ 2.38  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      35       0.03  
                   

 

 

   

 

 

 

Adjusted @ Constant FX (Non-GAAP) - As Recast

                    $ 3,577     $ 2.41  
                   

 

 

   

 

 

 

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
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP) - As Recast

  $ 3,462     $ (44   $ 382     $ 3,124     $ 666       21.3   $ (40   $ (315   $ 14     $ 2,799     $ 1.83  

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

    (92     —         —         (92     (16       —         6       —         (82     (0.06

Net earnings from divestitures - KDP

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

Gain 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 or other charges/benefits, net

    —         —         —         —         10         —         (67     —         57       0.04  

Rounding

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,088     $ (59   $ 440     $ 3,707     $ 860       23.2   $ —       $ (373   $ 14     $ 3,206     $ 2.09  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 3.1

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Diluted EPS

(Unaudited)

 

     For the Three Months Ended
March 31,
               
     2020      2019      $ Change      % Change  

Diluted EPS attributable to Mondelēz International (GAAP) - As Recast

   $ 0.51      $ 0.66      $ (0.15      (22.7 )% 

Simplify to Grow Program

     0.03        0.03        —       

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

     0.11        (0.01      0.12     

Loss related to interest rate swaps

     0.06        —          0.06     

Gain on equity method investment transactions

     (0.04      (0.01      (0.03   

Equity method investee acquisition-related or other charges/benefits, net

     —          0.01        (0.01   
  

 

 

    

 

 

    

 

 

    

Adjusted EPS (Non-GAAP) - As Recast

   $ 0.67      $ 0.68      $ (0.01      (1.5 )% 

Impact of unfavorable currency

     0.03               0.03     
  

 

 

    

 

 

    

 

 

    

Adjusted EPS @ Constant FX (Non-GAAP) - As Recast

   $ 0.70      $ 0.68      $ 0.02        2.9
  

 

 

    

 

 

    

 

 

    


Schedule 3.2

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Diluted EPS

(Unaudited)

 

     For the Twelve Months Ended
December 31,
               
     2019      2018      $ Change      % Change  

Diluted EPS attributable to Mondelēz International (GAAP) - As Recast

   $ 2.69      $ 2.23      $ 0.46        20.6

Simplify to Grow Program

     0.24        0.32        (0.08   

Intangible asset impairment charges

     0.03        0.03        —       

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

     (0.05      (0.09      0.04     

Acquisition-related costs

     —          0.01        (0.01   

Net earnings from divestitures

     (0.01      (0.02      0.01     

Gain on divestitures

     (0.03      —          (0.03   

Remeasurement of net monetary position

     —          0.01        (0.01   

Impact from pension participation changes

     (0.02      0.22        (0.24   

Impact from resolution of tax matters

     0.05        (0.01      0.06     

CEO transition remuneration

     0.01        0.01        —       

(Gain)/loss related to interest rate swaps

     0.08        (0.01      0.09     

Loss on debt extinguishment and related expenses

     —          0.07        (0.07   

Swiss tax reform net impacts

     (0.53      —          (0.53   

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

     —          0.01        (0.01   

(Gain)/loss on equity method investment transactions

     0.01        (0.39      0.40     

Equity method investee acquisition-related or other charges/benefits, net

     0.03        (0.01      0.04     
  

 

 

    

 

 

    

 

 

    

Adjusted EPS (Non-GAAP) - As Recast

   $ 2.50      $ 2.38      $ 0.12        5.0

Impact of unfavorable currency

     0.16        —          0.16     
  

 

 

    

 

 

    

 

 

    

Adjusted EPS @ Constant FX (Non-GAAP) - As Recast

   $ 2.66      $ 2.38      $ 0.28        11.8
  

 

 

    

 

 

    

 

 

    


Schedule 3.3

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Diluted EPS

(Unaudited)

 

     For the Three Months Ended
December 31,
               
     2019      2018      $ Change      % Change  

Diluted EPS attributable to Mondelēz International (GAAP) - As Recast

   $ 0.50      $ 0.51      $ (0.01      (2.0 )% 

Simplify to Grow Program

     0.07        0.10        (0.03   

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

     (0.01      0.02        (0.03   

Impact from pension participation changes

     —          0.01        (0.01   

Impact from resolution of tax matters

     0.04        (0.01      0.05