8-K
Mondelez International, Inc. false 0001103982 0001103982 2020-10-08 2020-10-08 0001103982 us-gaap:CommonClassAMember 2020-10-08 2020-10-08 0001103982 mdlz45:M2.375NotesDue2021Member 2020-10-08 2020-10-08 0001103982 mdlz45:M1.000NotesDue2022Member 2020-10-08 2020-10-08 0001103982 mdlz45:M1.625NotesDue2023Member 2020-10-08 2020-10-08 0001103982 mdlz45:M1.625NotesDue2027Member 2020-10-08 2020-10-08 0001103982 mdlz45:M2.375NotesDue20352Member 2020-10-08 2020-10-08 0001103982 mdlz45:M4.500NotesDue20351Member 2020-10-08 2020-10-08 0001103982 mdlz45:M3.875NotesDue2045Member 2020-10-08 2020-10-08

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 8, 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 non-GAAP financial information related to the retrospective impact of our sale of approximately 11.1 million JDE Peet’s N.V. (“JDE Peet’s”) ordinary shares on May 29,2020. As a result of this sale, our equity interest in JDE Peet’s decreased by 3.6% from 26.5% to 22.9%.

Due to our reporting of JDE Peet’s results on a one-quarter lag basis, the impact of the sale of these shares will affect our non-GAAP financial results beginning with the third quarter ended September 30, 2020. Consistent with our definitions of our non-GAAP financial measures, we will reflect this partial sale of our equity method investment in JDE Peet’s as a divestiture, resulting in the recasting of our non-GAAP financial results for the first half of 2020, all quarters of 2020, 2019 and 2018 and for the years ended December 31, 2019 and 2018.

Change to our Historical Non-GAAP Financial Results in Connection with our Participation in JDE Peet’s Offering

As previously disclosed in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, we exchanged our 26.4% ownership interest in Jacobs Douwe Egberts (“JDE”) for a 26.5% equity interest in JDE Peet’s in connection with the JDE Peet’s offering of its ordinary shares during the second quarter of 2020. On May 29, 2020, we participated in the JDE Peet’s offering and, with the subsequent exercise of the over-allotment option, we sold a total of approximately 11.1 million shares, retaining a 22.9% ownership interest in JDE Peet’s. We received €350 million ($394 million) of total proceeds from the sales of JDE Peet’s shares and we recorded a pre-tax gain of $121 million during the second quarter. We also incurred a $261 million tax expense that is payable in 2020 and 2021.

Consistent with our accounting for our equity method investment in Keurig Dr Pepper Inc., in connection with JDE Peet’s becoming a public company, we changed our accounting principle to reflect our share of JDE historical results and JDE Peet’s ongoing results on a one-quarter lag basis while 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 and to record our share of JDE Peet’s ongoing results once JDE Peet’s has publicly reported its results. This change was applied retrospectively to all periods presented. Refer to Note 6, Equity Method Investments, and Note 14, Income Taxes, in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, for additional information.

We consider the 3.6% ownership reduction a partial sale of our equity method investment in JDE Peet’s. Consistent with our definitions of our non-GAAP financial measures, we consider this sale to be a divestiture. Therefore, we will remove the equity method investment net earnings results related to this partial sale of our equity method investment in JDE Peet’s from our non-GAAP financial results for Adjusted EPS for all historical periods presented. Our U.S. GAAP results, which include our historical equity method investment net earnings from JDE Peet’s, will not change from what was previously reported.

Recast Amounts Reflecting Changes in Historical Non-GAAP Results

The change to our non-GAAP financial results for Adjusted EPS described above does not affect our previously reported consolidated financial results nor does it affect our non-GAAP financial results for Organic Net Revenue, Adjusted Gross Profit or Adjusted 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 unaudited GAAP and recast non-GAAP financial information for the first half of 2020, all quarters of 2020, 2019 and 2018 and for the years ended December 31, 2019 and 2018.

Mondelēz International, Inc. and Subsidiaries

Recast Amounts Reflecting Change Due to Reduction in Ownership

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

(Unaudited)

 

     2018      2019      2020      2018      2019      2020  
     FY      FY      H1      Q1      Q2      Q3      Q4      Q1      Q2      Q3     Q4      Q1      Q2  

Reported (GAAP)

                                     

Equity method investment net earnings

   $ 484      $ 501      $ 227      $ 229      $ 88      $ 84      $ 83      $ 166      $ 109      $ 114     $ 112      $ 121      $ 106  

Provision for income taxes

     773        2        489        337        15        310        111        189        216        (633     230        148        341  

Net earnings attributable to Mondelēz International

     3,317        3,929        1,280        1,043        319        1,198        757        967        803        1,426       733        736        544  

Diluted earnings per share attributable to Mondelēz International

   $ 2.23      $ 2.69      $ 0.89      $ 0.69      $ 0.21      $ 0.81      $ 0.51      $ 0.66      $ 0.55      $ 0.98     $ 0.50      $ 0.51      $ 0.38  

Adjusted (Non-GAAP) - As Recast

                                     

Equity method investment net earnings

   $ 413      $ 516      $ 252      $ 121      $ 90      $ 87      $ 115      $ 168      $ 112      $ 117     $ 119      $ 120      $ 132  

Provision for income taxes

     859        878        333        224        207        182        246        203        220        174       281        203        130  

Net earnings attributable to Mondelēz International

     3,516        3,615        1,860        937        816        906        857        986        815        928       886        964        896  

Diluted earnings per share attributable to Mondelēz International

   $ 2.37      $ 2.48      $ 1.29      $ 0.62      $ 0.55      $ 0.61      $ 0.58      $ 0.67      $ 0.56      $ 0.64     $ 0.61      $ 0.67      $ 0.62  


Financial Schedules

Exhibit 99.1 to this Form 8-K contains financial schedules that provide the reconciliations for our recast non-GAAP financial results for Adjusted EPS due to the partial sale of our equity method investment in JDE Peet’s for the first half of 2020, all quarters of 2020, 2019 and 2018 and for the years ended December 31, 2019 and 2018.

 

   

Schedule 1 provides reconciliations of the differences between the recast Adjusted (non-GAAP) financial measures and their most directly comparable reported (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 2 provides reconciliations between the reported diluted EPS attributable to Mondelēz International (GAAP) and the 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 and identify trends in our underlying operating results, and it provides 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).


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: October 8, 2020

EX-99.1

Exhibit 99.1

U.S. GAAP to Non-GAAP Reconciliations

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

Schedule 1.1

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Earnings and Tax Rate

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

(Unaudited)

 

    For the Six Months Ended June 30, 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)

  $ 1,569     $ (64   $ 275     $ 1,358     $ 489       36.0   $ (192   $ (227   $ 8     $ 1,280     $ 0.89  

Simplify to Grow Program

    134       (4     —         138       33         —         —         —         105       0.07  

Intangible asset impairment charges

    90       —         —         90       21         —         —         —         69       0.05  

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

    187       —         1       186       32         —         —         —         154       0.11  

Acquisition integration costs

    2       —         —         2       —           —         —         —         2       —    

Acquisition-related costs

    15       —         —         15       3         —         —         —         12       0.01  

Divestiture-related costs

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

Net earnings from divestitures

    —         —         —         —         —           —         2       —         (2     —    

Costs associated with JDE Peet’s transaction

    48       —         —         48       (261       —         —         —         309       0.21  

Remeasurement of net monetary position

    5       —         —         5       —           —         —         —         5       —    

Impact from pension participation changes

    —         —         (6     6       1         —         —         —         5       —    

Loss related to interest rate swaps

    —         —         (103     103       24         —         —         —         79       0.06  

Gain on equity method investment transactions

    —         —         —         —         (17       192       —         —         (175     (0.12

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

    —         —         —         —         8         —         (42     —         34       0.02  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 2,048     $ (68   $ 167     $ 1,949     $ 333       17.1   $ —       $ (267   $ 8     $ 1,875     $ 1.30  

Net earnings from divestitures—JDE

    —         —         —         —         —           —         14       —         (14     (0.01

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         1       —         (1     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

  $ 2,048     $ (68   $ 167     $ 1,949     $ 333       17.1   $ —       $ (252   $ 8     $ 1,860     $ 1.29  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      70       0.05  
                   

 

 

   

 

 

 

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

                    $ 1,930     $ 1.34  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,442  
    For the Six 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)

  $ 2,061     $ (29   $ 181     $ 1,909     $ 405       21.2   $ 2     $ (275   $ 7     $ 1,770     $ 1.21  

Simplify to Grow Program

    153       (5     —         158       38         —         —         —         120       0.08  

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

    (49     —         —         (49     (6       —         —         —         (43     (0.03

Acquisition-related costs

    1       —         —         1       —           —         —         —         1       —    

Divestiture-related costs

    10       —         —         10       1         —         —         —         9       0.01  

Net earnings from divestitures

    (9     —         —         (9     (1       —         3       —         (11     —    

Net gain on divestiture

    (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

    6       —         —         6       —           —         —         —         6       —    

U.S. tax reform discrete net tax expense

    —         —         —         —         (2       —         —         —         2       —    

Loss on equity method investment transactions

    —         —         —         —         (7       (2     —         —         9       0.01  

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

    —         —         —         —         7         —         (29     —         22       0.02  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 2,098     $ (34   $ 181     $ 1,951     $ 423       21.7   $ —       $ (301   $ 7     $ 1,822     $ 1.25  

Net earnings from divestitures—JDE

    —         —         —         —         —           —         21       —         (21     (0.02

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

  $ 2,098     $ (34   $ 181     $ 1,951     $ 423       21.7   $ —       $ (280   $ 7     $ 1,801     $ 1.23  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,460  

 

(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 1.2

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 Three Months Ended June 30, 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)

  $ 713     $ (31   $ 85     $ 659     $ 341       51.7   $ (121   $ (106   $ 1     $ 544     $ 0.38  

Simplify to Grow Program

    76       (4     —         80       20         —         —         —         60       0.04  

Intangible asset impairment charges

    90       —         —         90       21         —         —         —         69       0.05  

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

    2       —         —         2       —           —         —         —         2       —    

Acquisition integration costs

    2       —         —         2       —           —         —         —         2       —    

Acquisition-related costs

    10       —         —         10       2         —         —         —         8       0.01  

Divestiture-related costs

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

Costs associated with JDE Peet’s transaction

    48       —         —         48       (261       —         —         —         309       0.21  

Remeasurement of net monetary position

    3       —         —         3       —           —         —         —         3       —    

Impact from pension participation changes

    —         —         (3     3       —           —         —         —         3       —    

Gain on equity method investment transactions

    —         —         —         —         —           121       —         —         (121     (0.08

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

    —         —         —         —         7         —         (34     —         27       0.02  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 942     $ (35   $ 82     $ 895     $ 130       14.5   $ —       $ (140   $ 1     $ 904     $ 0.63  

Net earnings from divestitures—JDE

    —         —         —         —         —           —         8       —         (8     (0.01

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

  $ 942     $ (35   $ 82     $ 895     $ 130       14.5   $ —       $ (132   $ 1     $ 896     $ 0.62  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      27       0.02  
                   

 

 

   

 

 

 

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

                    $ 923     $ 0.64  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,439  
    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)

  $ 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     (1       —         2       —         (6     (0.01

Net gain on divestiture

    (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 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)

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

Net earnings from divestitures—JDE

    —         —         —         —         —           —         7       —         (7     —    

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

  $ 1,008     $ (17   $ 101     $ 924     $ 220       23.8   $ —       $ (112   $ 1     $ 815     $ 0.56  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,458  

 

(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 1.3

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 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)

  $ 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

    —         —         —         —         —           —         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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         6       —         (6     —    

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         1       —         (1     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,106     $ (33   $ 85     $ 1,054     $ 203       19.3   $ —       $ (120   $ 7     $ 964     $ 0.67  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      43       0.03  
                   

 

 

   

 

 

 

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

                    $ 1,007     $ 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)

  $ 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     —           —         1       —         (5     —    

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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         14       —         (14     (0.01

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,090     $ (17   $ 80     $ 1,027     $ 203       19.8   $ —       $ (168   $ 6     $ 986     $ 0.67  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 1.4

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 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)

  $ 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     (2       —         6       —         (13     (0.01

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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         34       —         (34     (0.02

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         1       —         (1     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,264     $ (66   $ 338     $ 3,992     $ 878       22.0   $ —       $ (516   $ 15     $ 3,615     $ 2.48  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      220       0.15  
                   

 

 

   

 

 

 

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

                    $ 3,835     $ 2.63  
                   

 

 

   

 

 

 

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)

  $ 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     (2       —         8       —         (25     (0.02

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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         22       —         (22     (0.01

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         4       —         (4     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,302     $ (55   $ 381     $ 3,976     $ 859       21.6   $ —       $ (413   $ 14     $ 3,516     $ 2.37  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 1.5

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 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)

  $ 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

    —         —         —         —         (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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         6       —         (6     —    

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,101     $  (18)     $ 68     $ 1,051     $ 281       26.7   $  —       $  (119   $ 3     $ 886     $ 0.61  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

Currency

                      34       0.02  
                   

 

 

   

 

 

 

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

                    $ 920     $ 0.63  
                   

 

 

   

 

 

 

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)

  $ 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         —         1       —         (7     —    

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)

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

Net earnings from divestitures - JDE

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

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         2       —         (2     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $  1,091     $ (5   $ 105     $ 991     $ 246       24.8   $  —       $  (115   $ 3     $ 857     $ 0.58  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 1.6

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 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)

  $ 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

    —         —         —         —         —           —         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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         7       —         (7     —    

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         1       —         (1     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,065     $  (14   $ 89     $ 990     $ 174       17.6   $ —       $  (117   $ 5     $ 928     $ 0.64  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

Currency

                      47       0.03  
                   

 

 

   

 

 

 

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

                    $ 975     $ 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)

  $ 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     (1       —         1       —         (6     —    

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)

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

Net earnings from divestitures - JDE

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

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,068     $  (19   $ 83     $ 1,004     $ 182       18.1   $ —       $  (87   $ 3     $ 906     $ 0.61  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 1.7

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 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)

  $ 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     (1       —         2       —         (6     (0.01

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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         7       —         (7     —    

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,008     $ (17   $ 101     $ 924     $ 220       23.8   $ —       $ (112   $ 1     $ 815     $ 0.56  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      52       0.03  
                   

 

 

   

 

 

 

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

                    $ 867     $ 0.59  
                   

 

 

   

 

 

 

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)

  $ 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     (3       —         —         —         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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         6       —         (6     —    

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,016     $ (18   $ 99     $ 935     $ 207       22.1   $ —       $ (90   $ 2     $ 816     $ 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 1.8

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)

  $ 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     —           —         1       —         (5     —    

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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         14       —         (14     (0.01

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,090     $ (17   $ 80     $ 1,027     $ 203       19.8   $ —       $ (168   $ 6     $ 986     $ 0.67  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      87       0.06  
                   

 

 

   

 

 

 

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

                    $ 1,073     $ 0.73  
                   

 

 

   

 

 

 

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)

  $ 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         —         6       —         (13     (0.01

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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         6       —         (6     —    

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         2       —         (2     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,127     $ (13   $ 94     $ 1,046     $ 224       21.4   $ —       $ (121   $ 6     $ 937     $ 0.62  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,505  

 

(1) 

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


Schedule 1.9

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)

  $ 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     (2       —         8       —         (25     (0.02

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)

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

Net earnings from divestitures - JDE

    —         —         —         —         —           —         22       —         (22     (0.01

Change in equity method investee acquisition-related or other charges/benefits, net

    —         —         —         —         —           —         4       —         (4     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,302     $ (55   $ 381     $ 3,976     $ 859       21.6   $ —       $ (413   $ 14     $ 3,516     $ 2.37  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      36       0.02  
                   

 

 

   

 

 

 

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

                    $ 3,552     $ 2.39  
                   

 

 

   

 

 

 

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)

  $ 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     (17       —         9       —         (84     (0.06

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

    —