8-K
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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): January 11, 2022

 

 

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
1.625% Notes due 2027   MDLZ27   The Nasdaq Stock Market LLC
0.250% Notes due 2028   MDLZ28   The Nasdaq Stock Market LLC
0.750% Notes due 2033   MDLZ33   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
1.375% Notes due 2041   MDLZ41   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 (1) our sale of Keurig Dr Pepper Inc. (“KDP”) shares on August 2, 2021, and (2) our sale of MaxFoods Pty Ltd (“MaxFoods”), an Australian packaged seafood business on November 1, 2021.

Due to our reporting of KDP’s results on a one-quarter lag basis, the impact of the sale of the KDP shares will affect our non-GAAP financial results beginning with our fourth quarter ended December 31, 2021. Consistent with our definitions of our non-GAAP financial measures, we will reflect the partial sale of our equity method investment in KDP as well as the sale of MaxFoods as divestitures. These changes will result in the recasting of our historical non-GAAP financial results and 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.

Change to our Historical Non-GAAP Financial Results in Connection with our Sale of KDP Shares

As previously disclosed in our Quarterly Report on Form 10-Q for the three months ended September 30, 2021, we sold approximately 14.7 million shares of KDP on August 2, 2021, which reduced our ownership interest by 1.0% to 5.3% of the total outstanding shares. We received $500 million of proceeds and recorded a pre-tax gain of $248 million (or $189 million after tax) during the third quarter of 2021.

We consider the 1.0% ownership reduction resulting from this sale of shares a partial sale of our equity method investment in KDP. Consistent with our definitions of our non-GAAP financial measures, we consider this sale to be a divestiture. Due to our reporting of KDP’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 fourth quarter ended December 31, 2021. Therefore, we will remove the equity method investment net earnings results related to this partial sale of our equity method investment in KDP 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 KDP, will not change from what was previously reported.

Change to our Historical Non-GAAP Financial Results in Connection with our Sale of MaxFoods

On November 1, 2021, we completed the sale of MaxFoods, an Australian packaged foods business that we had recently acquired as part of our April 1, 2021 acquisition of Gourmet Foods Holdings Pty Ltd. As a result of this divestiture, consistent with the definitions of our non-GAAP financial measures, we will remove the results of this operation from our non-GAAP financial results for Adjusted Gross Profit, Adjusted Operating Income and Adjusted EPS for the second and third quarters of 2021 only, as these are the only quarters’ results impacted by this divestiture. Our non-GAAP financial measure for Organic Net Revenue for these periods will not change, as the net revenue from this business was previously included as net revenue from acquisitions which is already excluded from our Organic Net Revenue financial measure. Our U.S. GAAP results, which include the results of the divested operation through the divestiture closing date noted above, will not change from what was previously reported.

Recast Amounts Reflecting Changes in Historical Non-GAAP Results

See the summary chart below and Exhibit 99.1 for the unaudited GAAP and recast non-GAAP financial information for the first three quarters of 2021, all quarters of 2020 and 2019, the first nine months of 2021 and the years ended December 31, 2020 and 2019. This supplemental disclosure does not amend any disclosure contained in any of our prior SEC filings.

Mondelēz International, Inc. and Subsidiaries

Recast Amounts Reflecting Change Due to Divestiture

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

(Unaudited)

 

 

    2019
FY
    2020
FY
    2021
Sep YTD
    2019     2020     2021  
    Q1     Q2     Q3     Q4     Q1     Q2     Q3     Q4     Q1     Q2     Q3  

Reported (GAAP)

                           

Gross Profit

  $ 10,337     $ 10,446     $ 8,421     $ 2,593     $ 2,469     $ 2,516     $ 2,759     $ 2,451     $ 2,331     $ 2,792     $ 2,872     $ 2,966     $ 2,631     $ 2,824  

Operating Income

    3,843       3,853       3,449       1,036       1,025       876       906       856       713       1,135       1,149       1,283       872       1,294  

Equity method investment net earnings

    501       421       290       166       109       114       112       121       106       84       110       78       107       105  

Provision for income taxes

    2       1,224       952       189       216       (633     230       148       341       391       344       212       398       342  

Net earnings attributable to Mondelēz International

    3,929       3,555       3,297       967       803       1,426       733       736       544       1,119       1,156       961       1,078       1,258  

Diluted earnings per share attributable to Mondelēz International

  $ 2.69     $ 2.47     $ 2.33     $ 0.66     $ 0.55     $ 0.98     $ 0.50     $ 0.51     $ 0.38     $ 0.78     $ 0.80     $ 0.68     $ 0.76     $ 0.89  

Adjusted (Non-GAAP) - As Recast

                           

Gross Profit

  $ 10,333     $ 10,521     $ 8,261     $ 2,591     $ 2,452     $ 2,525     $ 2,765     $ 2,656     $ 2,347     $ 2,659     $ 2,859     $ 2,866     $ 2,648     $ 2,747  

Operating Income

    4,264       4,401       3,600       1,090       1,008       1,065       1,101       1,106       942       1,165       1,188       1,292       1,075       1,233  

Equity method investment net earnings

    354       384       318       96       84       86       88       96       101       90       97       121       102       95  

Provision for income taxes

    839       878       760       198       201       163       277       194       125       279       280       250       233       277  

Net earnings attributable to Mondelēz International

    3,492       3,694       3,054       919       806       908       859       949       870       922       953       1,123       930       1,001  

Diluted earnings per share attributable to Mondelēz International

  $ 2.40     $ 2.56     $ 2.16     $ 0.63     $ 0.55     $ 0.62     $ 0.59     $ 0.66     $ 0.60     $ 0.64     $ 0.66     $ 0.79     $ 0.66     $ 0.71  

Numbers in bold represent our non-GAAP financial measures that were recast due to the items noted above. See GAAP to non-GAAP reconciliation schedules provided in Exhibit 99.1.


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 Gross Profit and Adjusted Operating Income, due to the sale of MaxFoods, for the second quarter, third quarter and first nine months of 2021, and for Adjusted EPS, due to the partial sale of our equity method investment in KDP and the sale of Max Foods, for the first three quarters of 2021, all quarters of 2020 and 2019, the first nine months of 2021 and the years ended December 31, 2020 and 2019.

 

   

Schedule 1 provides reconciliations of the differences between reported Gross Profit and Operating Income (GAAP) and the recast Adjusted Gross Profit and Adjusted Operating Income (non-GAAP) measures.

 

   

Schedule 2 provides reconciliations of the differences between the reported Operating Income (GAAP) and the recast Adjusted Operating Income (non-GAAP) by reportable segment.

 

   

Schedule 3 provides reconciliations of the differences between the reported (GAAP) financial measures for Operating Income to Net Earnings Attributable to Mondelēz International and the recast Adjusted (non-GAAP) financial measures for these items. 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 4 provides reconciliations between the reported Diluted EPS attributable to Mondelēz International (GAAP) and the recast Adjusted EPS (non-GAAP) for comparative periods.

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).


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: January 11, 2022

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.a

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Gross Profit / Operating Income

(in millions of U.S. dollars)

(Unaudited)

 

     For the Nine Months Ended September 30, 2021  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 21,062     $ 8,421       40.0   $ 3,449       16.4

Simplify to Grow Program

     —         92         381    

Intangible asset impairment charges

     —         —           32    

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

     —         (270       (270  

Acquisition integration costs and contingent consideration adjustments

     —         2         (54  

Acquisition-related costs

     —         —           24    

Gain on acquisition

     —         —           (9  

Remeasurement of net monetary position

     —         —           10    

Impact from pension participation changes

     —         20         47    

Impact from resolution of tax matters

     —         —           (5  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 21,062     $ 8,265       39.2   $ 3,605       17.1

Operating income from Max Foods

     (30     (4       (5  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)—As Recast

   $ 21,032     $ 8,261       39.3   $ 3,600       17.1
  

 

 

         

Currency

       (244       (129  
    

 

 

     

 

 

   

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

     $ 8,017       $ 3,471    
    

 

 

     

 

 

   

 

     For the Nine Months Ended September 30, 2020  
     Net
Revenues
     Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 19,283      $ 7,574       39.3   $ 2,704       14.0

Simplify to Grow Program

     —          48         248    

Intangible asset impairment charges

     —          —           144    

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

     —          40         42    

Acquisition integration costs

     —          —           2    

Acquisition-related costs

     —          —           15    

Divestiture-related costs

     —          —           4    

Costs associated with JDE Peet’s transaction

     —          —           48    

Remeasurement of net monetary position

     —          —           7    

Rounding

     —          —           (1  
  

 

 

    

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 19,283      $ 7,662       39.7   $ 3,213       16.7
  

 

 

    

 

 

     

 

 

   
            Gross
Profit
          Operating
Income
       

$ Change—Reported (GAAP)

      $ 847       $ 745    

$ Change—Adjusted (Non-GAAP)

        603         392    

$ Change—Adjusted (Non-GAAP)—As Recast

        599         387    

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

        355         258    

% Change—Reported (GAAP)

        11.2       27.6  

% Change—Adjusted (Non-GAAP)

        7.9       12.2  

% Change—Adjusted (Non-GAAP)—As Recast

        7.8       12.0  

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

        4.6 %        8.0  


Schedule 1.b

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Gross Profit / Operating Income

(in millions of U.S. dollars)

(Unaudited)

 

     For the Three Months Ended September 30, 2021  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 7,182     $ 2,824       39.3   $ 1,294       18.0

Simplify to Grow Program

     —         57         127    

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

     —         (133       (132  

Acquisition integration costs and contingent consideration adjustments

     —         1         (57  

Remeasurement of net monetary position

     —         —           2    

Impact from pension participation changes

     —         1         2    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 7,182     $ 2,750       38.3   $ 1,236       17.2

Operating income from Max Foods

     (16     (3       (3  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)—As Recast

   $ 7,166     $ 2,747       38.3   $ 1,233       17.2
  

 

 

         

Currency

       (34       (18  
    

 

 

     

 

 

   

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

     $ 2,713       $ 1,215    
    

 

 

     

 

 

   

 

     For the Three Months Ended September 30, 2020  
     Net
Revenues
     Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,665      $ 2,792       41.9   $ 1,135       17.0

Simplify to Grow Program

     —          14         114    

Intangible asset impairment charges

     —          —           54    

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

     —          (147       (145  

Divestiture-related costs

     —          1         6    

Remeasurement of net monetary position

     —          —           2    

Rounding

     —          (1       (1  
  

 

 

    

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,665      $ 2,659       39.9   $ 1,165       17.5
  

 

 

    

 

 

     

 

 

   
            Gross
Profit
          Operating
Income
       

$ Change—Reported (GAAP)

      $ 32       $ 159    

$ Change—Adjusted (Non-GAAP)

        91         71    

$ Change—Adjusted (Non-GAAP)—As Recast

        88         68    

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

        54         50    

% Change—Reported (GAAP)

        1.1       14.0  

% Change—Adjusted (Non-GAAP)

        3.4       6.1  

% Change—Adjusted (Non-GAAP)—As Recast

        3.3       5.8  

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

        2.0       4.3  


Schedule 1.c

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Gross Profit / Operating Income

(in millions of U.S. dollars)

(Unaudited)

 

     For the Three Months Ended June 30, 2021  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $  6,642     $ 2,631       39.6   $ 872       13.1

Simplify to Grow Program

     —         20         132    

Intangible asset impairment charges

     —         —           32    

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

     —         (21       (20  

Acquisition integration costs and contingent consideration adjustments

     —         1         2    

Acquisition-related costs

     —         —           17    

Remeasurement of net monetary position

     —         —           3    

Impact from pension participation changes

     —         18         44    

Impact from resolution of tax matters

     —         —           (5  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,642     $ 2,649       39.9   $ 1,077       16.2

Operating income from Max Foods

     (14     (1       (2  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)—As Recast

   $ 6,628     $ 2,648       40.0   $ 1,075       16.2
  

 

 

         

Currency

       (134       (67  
    

 

 

     

 

 

   

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

     $ 2,514       $ 1,008    
    

 

 

     

 

 

   

 

     For the Three Months Ended June 30, 2020  
     Net
Revenues
     Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 5,911      $ 2,331       39.4   $ 713       12.1

Simplify to Grow Program

     —          15         76    

Intangible asset impairment charges

     —          —           90    

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

     —          1         2    

Acquisition integration costs

     —          —           2    

Acquisition-related costs

     —          —           10    

Divestiture-related costs

     —          (1       (2  

Costs associated with JDE Peet’s transaction

     —          —           48    

Remeasurement of net monetary position

     —          —           3    

Rounding

     —          1         —      
  

 

 

    

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 5,911      $ 2,347       39.7   $ 942       15.9
  

 

 

    

 

 

     

 

 

   
            Gross
Profit
          Operating
Income
       

$ Change—Reported (GAAP)

      $ 300       $ 159    

$ Change—Adjusted (Non-GAAP)

        302         135    

$ Change—Adjusted (Non-GAAP)—As Recast

        301         133    

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

        167         66    

% Change—Reported (GAAP)

        12.9       22.3  

% Change—Adjusted (Non-GAAP)

        12.9       14.3  

% Change—Adjusted (Non-GAAP)—As Recast

        12.8       14.1  

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

        7.1       7.0  


Schedule 2.a

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Segment Data

(in millions of U.S. dollars)

(Unaudited)

 

     For the Nine Months Ended September 30, 2021  
     Latin
America
    AMEA     Europe     North
America
    Unrealized
G/(L) on
Hedging
Activities
    General
Corporate
Expenses
    Amortization of
Intangibles
    Other
Items
    Mondelēz
International
 

Net Revenue

                

Reported (GAAP)

   $ 2,089     $ 4,826     $ 8,035     $ 6,112     $ —       $ —       $ —       $ —       $ 21,062  

Divestitures

     —         —         —         —         —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 2,089     $ 4,826     $ 8,035     $ 6,112     $ —       $ —       $ —       $ —       $ 21,062  

Max Foods

     —         (30     —         —         —         —         —         —         (30
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 2,089     $ 4,796     $ 8,035     $ 6,112     $ —       $ —       $ —       $ —       $ 21,032  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income

                

Reported (GAAP)

   $ 221     $ 842     $ 1,478     $ 932     $ 270     $ (177   $ (102   $ (15   $ 3,449  

Simplify to Grow Program

     11       (11     34       328       —         19       —         —         381  

Intangible asset impairment charges

     —         —         —         32       —         —         —         —         32  

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

     —         —         —         —         (270     —         —         —         (270

Acquisition integration costs and contingent consideration adjustments

     —         —         6       (60     —         —         —         —         (54

Acquisition-related costs

     —         —         —         —         —         —         —         24       24  

Gain on acquisition

     —         —         —         —         —         —         —         (9     (9

Remeasurement of net monetary position

     10       —         —         —         —         —         —         —         10  

Impact from pension participation changes

     —         —         47       —         —         —         —         —         47  

Impact from resolution of tax matters

     (5     —         —         —         —         —         —         —         (5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 237     $ 831     $ 1,565     $ 1,232     $ —       $ (158   $ (102   $ —       $ 3,605  

Operating income from Max Foods

     —         (5     —         —         —         —         —         —         (5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 237     $ 826     $ 1,565     $ 1,232     $ —       $ (158   $ (102   $ —       $ 3,600  

Currency

     19       (50     (100     (8     —         6       4       —         (129
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 256     $ 776     $ 1,465     $ 1,224     $ —       $ (152   $ (98   $ —       $ 3,471  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% Change—Reported (GAAP)

     48.3     36.9     23.1     (21.8 )%      n/m       30.0     28.7     n/m       27.6

% Change—Adjusted (Non-GAAP)

     24.7     25.7     16.3     (6.4 )%      n/m       (0.6 )%      28.7     n/m       12.2

% Change—Adjusted (Non-GAAP)—As Recast

     24.7     25.0     16.3     (6.4 )%      n/m       (0.6 )%      28.7     n/m       12.0

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

     34.7     17.4     8.8     (7.0 )%      n/m       3.2     31.5     n/m       8.0

Operating Income Margin

                  

Reported %

     10.6     17.4     18.4     15.2             16.4

Reported pp change

     2.5 pp      2.8 pp      1.8 pp      (4.7 )pp              2.4 pp 

Adjusted %

     11.3     17.2     19.5     20.2             17.1

Adjusted pp change

     1.0 pp      1.5 pp      0.9 pp      (1.8 )pp              0.4 pp 

Adjusted %—As Recast

     11.3     17.2     19.5     20.2             17.1

Adjusted pp change—As Recast

     1.0 pp      1.5 pp      0.9 pp      (1.8 )pp              0.4 pp 

 

     For the Nine Months Ended September 30, 2020  
     Latin
America
    AMEA     Europe     North
America
    Unrealized
G/(L) on
Hedging
Activities
    General
Corporate
Expenses
    Amortization of
Intangibles
    Other
Items
    Mondelēz
International
 

Net Revenue

                

Reported (GAAP)

   $ 1,847     $ 4,209     $ 7,248     $ 5,979     $ —       $ —       $ —       $ —       $ 19,283  

Divestitures

     —         —         —         —         —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 1,847     $ 4,209     $ 7,248     $ 5,979     $ —       $ —       $ —       $ —       $ 19,283  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income

                

Reported (GAAP)

   $ 149     $ 615     $ 1,201     $ 1,192     $ (42   $ (253   $ (143   $ (15   $ 2,704  

Simplify to Grow Program

     31       37       92       39       —         49       —         —         248  

Intangible asset impairment charges

     3       5       53       83       —         —         —         —         144  

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

     —         —         —         —         42       —         —         —         42  

Acquisition integration costs

     —         —         —         2       —         —         —         —         2  

Acquisition-related costs

     —         —         —         —         —         —         —         15       15  

Divestiture-related costs

     —         4       —         —         —         —         —         —         4  

Costs associated with JDE Peet’s transaction

     —         —         —         —         —         48       —         —         48  

Remeasurement of net monetary position

     7       —         —         —         —         —         —         —         7  

Rounding

     —         —         —         —         —         (1     —         —         (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 190     $ 661     $ 1,346     $ 1,316     $ —       $ (157   $ (143   $ —       $ 3,213  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income Margin

                  

Reported %

     8.1     14.6     16.6     19.9             14.0

Adjusted %

     10.3     15.7     18.6     22.0             16.7


Schedule 2.b

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Segment Data

(in millions of U.S. dollars)

(Unaudited)

 

     For the Three Months Ended September 30, 2021  
     Latin
America
    AMEA     Europe     North
America
    Unrealized
G/(L) on

Hedging
Activities
    General
Corporate
Expenses
    Amortization
of Intangibles
    Other
Items
     Mondelēz
International
 

Net Revenue

                

Reported (GAAP)

   $ 751     $ 1,629     $ 2,714     $ 2,088     $ —       $ —       $ —       $ —        $ 7,182  

Divestitures

     —         —         —         —         —         —         —         —          —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Adjusted (Non-GAAP)

   $ 751     $ 1,629     $ 2,714     $ 2,088     $ —       $ —       $ —       $ —        $ 7,182  

Max Foods

     —         (16     —         —         —         —         —         —          (16
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 751     $ 1,613     $ 2,714     $ 2,088     $ —       $ —       $ —       $ —        $ 7,166  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating Income

                

Reported (GAAP)

   $ 91     $ 267     $ 508     $ 363     $ 132     $ (35   $ (32   $ —        $ 1,294  

Simplify to Grow Program

     1       3       8       108       —         7       —         —          127  

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

     —         —         —         —         (132     —         —         —          (132

Acquisition integration costs and contingent consideration adjustments

     —         —         6       (62     —         (1     —         —          (57

Remeasurement of net monetary position

     2       —         —         —         —         —         —         —          2  

Impact from pension participation changes

     —         —         2       —         —         —         —         —          2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Adjusted (Non-GAAP)

   $ 94     $ 270     $ 524     $ 409     $ —       $ (29   $ (32   $ —        $ 1,236  

Operating income from Max Foods

     —         (3     —         —         —         —         —         —          (3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Adjusted (Non-GAAP) —As Recast

   $ 94     $ 267     $ 524     $ 409     $ —       $ (29   $ (32   $ —        $ 1,233  

Currency

     5       (7     (12     (1     —         (4     1       —          (18
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

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

   $ 99     $ 260     $ 512     $ 408     $ —       $ (33   $ (31   $ —        $ 1,215  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

% Change —Reported (GAAP)

     18.2     27.1     17.6     (6.2 )%      n/m       47.0     36.0     n/m        14.0

% Change —Adjusted (Non-GAAP)

     8.0     11.1     6.9     (9.5 )%      n/m       49.1     36.0     n/m        6.1

% Change —Adjusted (Non-GAAP) — As Recast

     8.0     9.9     6.9     (9.5 )%      n/m       49.1     36.0     n/m        5.8

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

     13.8     7.0     4.5     (9.7 )%      n/m       42.1     38.0     n/m        4.3

Operating Income Margin

                

Reported %

     12.1     16.4     18.7     17.4            18.0

Reported pp change

     (0.5 )pp      2.1 pp      1.6 pp      (1.4 )pp            
1.0
pp 

Adjusted %

     12.5     16.6     19.3     19.6            17.2

Adjusted pp change

     (1.8 )pp      0.1 pp       (0.1 )pp      (2.4 )pp             (0.3 )pp 

Adjusted %—As Recast

     12.5     16.4     19.3     19.6            17.2

Adjusted pp change—As Recast

     (1.8 )pp      (0.1 )pp      (0.1 )pp      (2.4 )pp             (0.3 )pp 

 

     For the Three Months Ended September 30, 2020  
     Latin
America
    AMEA     Europe     North
America
    Unrealized
G/(L) on
Hedging
Activities
    General
Corporate
Expenses
    Amortization of
Intangibles
    Other
Items
     Mondelēz
International
 

Net Revenue

                

Reported (GAAP)

   $ 610     $ 1,470     $ 2,526     $ 2,059     $ —       $ —       $ —       $ —        $ 6,665  

Divestitures

     —         —         —         —         —         —         —         —          —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Adjusted (Non-GAAP)

   $ 610     $ 1,470     $ 2,526     $ 2,059     $ —       $ —       $ —       $ —        $ 6,665  

Operating Income

                

Reported (GAAP)

   $ 77     $ 210     $ 432     $ 387     $ 145     $ (66   $ (50   $ —        $ 1,135  

Simplify to Grow Program

     5       27       55       18       —         9       —         —          114  

Intangible asset impairment charges

     3       —         3       47       —         1       —         —          54  

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

     —         —         —         —         (145     —         —         —          (145

Divestiture-related costs

     —         6       —         —         —         —         —         —          6  

Remeasurement of net monetary position

     2       —         —         —         —         —         —         —          2  

Rounding

     —         —         —         —         —         (1     —         —          (1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Adjusted (Non-GAAP)

   $ 87     $ 243     $ 490     $ 452     $ —       $ (57   $ (50   $ —        $ 1,165  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Operating Income Margin

                

Reported %

     12.6     14.3     17.1     18.8            17.0

Adjusted %

     14.3     16.5     19.4     22.0            17.5


Schedule 2.c

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Segment Data

(in millions of U.S. dollars)

(Unaudited)

 

     For the Three Months Ended June 30, 2021  
     Latin
America
    AMEA     Europe     North
America
    Unrealized
G/(L) on
Hedging
Activities
    General
Corporate
Expenses
    Amortization of
Intangibles
    Other
Items
    Mondelēz
International
 

Net Revenue

                  

Reported (GAAP)

   $ 669     $ 1,452     $ 2,474     $ 2,047     $ —       $ —       $ —       $ —       $ 6,642  

Divestitures

     —         —         —         —         —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 669     $ 1,452     $ 2,474     $ 2,047     $ —       $ —       $ —       $ —       $ 6,642  

Max Foods

     —         (14     —         —         —         —         —         —         (14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 669     $ 1,438     $ 2,474     $ 2,047     $ —       $ —       $ —       $ —       $ 6,628  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income

                  

Reported (GAAP)

   $ 54     $ 213     $ 413     $ 299     $ 20     $ (78   $ (32   $ (17   $ 872  

Simplify to Grow Program

     4       5       10       109       —         4       —         —         132  

Intangible asset impairment charges

     —         —         —         32       —         —         —         —         32  

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

     —         —         —         —         (20     —         —         —         (20

Acquisition integration costs and contingent consideration adjustments

     —         —         —         1       —         1       —         —         2  

Acquisition-related costs

     —         —         —         —         —         —         —         17       17  

Remeasurement of net monetary position

     3       —         —         —         —         —         —         —         3  

Impact from pension participation changes

     —         —         44       —         —         —         —         —         44  

Impact from resolution of tax matters

     (5     —         —         —         —         —         —         —         (5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 56     $ 218     $ 467     $ 441     $ —       $ (73   $ (32   $ —       $ 1,077  

Operating income from Max Foods

     —         (2     —         —         —         —         —         —         (2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 56     $ 216     $ 467     $ 441     $ —       $ (73   $ (32   $ —       $ 1,075  

Currency

     1       (23     (45     (5     —         4       1       —         (67
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 57     $ 193     $ 422     $ 436     $ —       $ (69   $ (31   $ —       $ 1,008  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% Change—Reported (GAAP)

     1000.0     24.6     39.1     (29.5 )%      n/m       29.7     36.0     n/m       22.3

% Change—Adjusted (Non-GAAP)

     366.7     19.8     27.2     (6.2 )%      n/m       (87.2 )%      36.0     n/m       14.3

% Change—Adjusted (Non-GAAP)—As Recast

     366.7     18.7     27.2     (6.2 )%      n/m       (87.2 )%      36.0     n/m       14.1

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

     375.0     6.0     15.0     (7.2 )%      n/m       (76.9 )%      38.0     n/m       7.0

Operating Income Margin

                  

Reported %

     8.1     14.7     16.7     14.6             13.1

Reported pp change

     9.3 pp      0.9 pp      2.8 pp      (6.3 )pp              1.0 pp 

Adjusted %

     8.4     15.0     18.9     21.5             16.2

Adjusted pp change

     6.1 pp      0.3 pp      1.7 pp      (1.7 )pp              0.3 pp 

Adjusted %—As Recast

     8.4     15.0     18.9     21.5             16.2

Adjusted pp change—As Recast

     6.1 pp      0.3 pp      1.7 pp      (1.7 )pp              0.3 pp 

 

     For the Three Months Ended June 30, 2020  
     Latin
America
    AMEA     Europe     North
America
    Unrealized
G/(L) on
Hedging
Activities
    General
Corporate
Expenses
    Amortization of
Intangibles
    Other
Items
    Mondelēz
International
 

Net Revenue

                  

Reported (GAAP)

   $ 511     $ 1,237     $ 2,138     $ 2,025     $ —       $ —       $ —       $ —       $ 5,911  

Divestitures

     —         —         —         —         —         —         —         —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 511     $ 1,237     $ 2,138     $ 2,025     $ —       $ —       $ —       $ —       $ 5,911  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income

                  

Reported (GAAP)

   $ (6   $ 171     $ 297     $ 424     $ (2   $ (111   $ (50   $ (10   $ 713  

Simplify to Grow Program

     15       8       20       9       —         24       —         —         76  

Intangible asset impairment charges

     —         5       50       36       —         (1     —         —         90  

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

     —         —         —         —         2       —         —         —         2  

Acquisition integration costs

     —         —         —         1       —         1       —         —         2  

Acquisition-related costs

     —         —         —         —         —         —         —         10       10  

Divestiture-related costs

     —         (2     —         —         —         —         —         —         (2

Costs associated with JDE Peet’s transaction

     —         —         —         —         —         48       —         —         48  

Remeasurement of net monetary position

     3       —         —         —         —         —         —         —         3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 12     $ 182     $ 367     $ 470     $ —       $ (39   $ (50   $ —       $ 942  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income Margin

                  

Reported %

     (1.2 )%      13.8     13.9     20.9             12.1

Adjusted %

     2.3     14.7     17.2     23.2             15.9


Schedule 3.a

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 Nine Months Ended September 30, 2021  
     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)

   $ 3,449     $ (135   $ 358     $ 3,226     $ 952       29.5   $ (745   $ (290   $ 12      $ 3,297     $ 2.33  

Simplify to Grow Program

     381       (1     —         382       98         —         —         —          284       0.20  

Intangible asset impairment charges

     32       —         —         32       8         —         —         —          24       0.02  

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

     (270     —         (4     (266     (42       2       —         —          (226     (0.16

Acquisition integration costs and contingent consideration adjustments

     (54     —         —         (54     (14       —         —         —          (40     (0.03

Acquisition-related costs

     24       —         —         24       4         —         —         —          20       0.01  

Gain on acquisition

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

Net earnings from divestitures

     —         —         —         —         (4       —         16       —          (12     (0.01

Remeasurement of net monetary position

     10       —         —         10       —           —         —         —          10       0.01  

Impact from pension participation changes

     47       17       (8     38       8         —         —         —          30       0.02  

Impact from resolution of tax matters

     (5     —         2       (7     (1       —         —         —          (6     —    

Loss on debt extinguishment and related expenses

     —         —         (137     137       34         —         —         —          103       0.07  

Initial impacts from enacted tax law changes

     —         —         —         —         (95       —         —         —          95       0.07  

Gain on equity method investment transactions

     —         —         —         —         (184       743       —         —          (559     (0.40

Equity method investee items

     —         —         —         —         4         —         (60     —          56       0.04  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 3,605     $ (119   $ 211     $ 3,513     $ 766       21.8   $ —       $ (334   $ 12      $ 3,069     $ 2.17  

Net earnings from Max Foods

     (5     —         —         (5     (2       —         —         —          (3     —    

Net earnings from divestitures—KDP

     —         —         —         —         (3       —         13       —          (10     (0.01

Change in equity method investee items

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 3,600     $ (119   $ 211     $ 3,508     $ 760       21.7   $ —       $ (318   $ 12      $ 3,054     $ 2.16  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

      

Currency

                        (132     (0.09
                     

 

 

   

 

 

 

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

                      $ 2,922     $ 2.07  
                     

 

 

   

 

 

 

Diluted Average Shares Outstanding

                          1,415  

 

     For the Nine Months Ended September 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)

   $ 2,704     $ (102   $ 364     $ 2,442     $ 880       36.0   $ (537   $ (311   $ 11      $ 2,399     $ 1.66  

Simplify to Grow Program

     248       (4     —         252       55         —         —         —          197       0.14  

Intangible asset impairment charges

     144       —         —         144       33         —         —         —          111       0.08  

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

     42       —         4       38       5         —         —         —          33       0.03  

Acquisition integration costs

     2       —         —         2       —           —         —         —          2       —    

Acquisition-related costs

     15       —         —         15       —           —         —         —          15       0.01  

Divestiture-related costs

     4       —         —         4       —           —         —         —          4       —    

Net earnings from divestitures

     —         —         —         —         (17       —         80       —          (63     (0.04

Costs associated with JDE Peet’s transaction

     48       —         —         48       (261       —         —         —          309       0.21  

Remeasurement of net monetary position

     7       —         —         7       —           —         —         —          7       —    

Impact from pension participation changes

     —         —         (9     9       2         —         —         —          7       0.01  

Loss related to interest rate swaps

     —         —         (103     103       24         —         —         —          79       0.05  

Initial impacts from enacted tax law changes

     —         —         —         —         (30       —         —         —          30       0.02  

Gain on equity method investment transactions

     —         —         —         —         (94       537       —         —          (443     (0.31

Equity method investee items

     —         —         —         —         5         —         (69     —          64       0.05  

Rounding

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 3,213     $ (106   $ 256     $ 3,063     $ 602       19.7   $ —       $ (300   $ 11      $ 2,750     $ 1.91  

Net earnings from divestitures—KDP

     —         —         —         —         (3       —         10       —          (7     (0.01

Change in equity method investee items

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 3,213     $ (106   $ 256     $ 3,063     $ 598       19.5   $ —       $ (287   $ 11      $ 2,741     $ 1.90  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Diluted Average Shares Outstanding

                          1,442  

 

(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.b

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, 2021  
     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)

   $  1,294     $ (37   $ 82     $ 1,249     $ 342       27.4    $ (250   $ (105   $ 4      $ 1,258     $ 0.89  

Simplify to Grow Program

     127       —         —         127       32         —         —         —          95       0.06  

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

     (132     —         —         (132     (24       2       —         —          (110     (0.08

Acquisition integration costs and contingent consideration adjustments

     (57     —         —         (57     (15       —         —         —          (42     (0.03

Remeasurement of net monetary position

     2       —         —         2       —           —         —         —          2       —    

Impact from pension participation changes

     2       3       (2     1       —           —         —         —          1       —    

Initial impacts from enacted tax law changes

     —         —         —         —         4         —         —         —          (4     —    

Gain on equity method investment transactions

     —         —         —         —         (59       248       —         —          (189     (0.13

Equity method investee items

     —         —         —         —         1         —         4       —          (5     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 1,236     $ (34   $ 80     $ 1,190     $ 281       23.6   $ —       $ (101   $ 4      $ 1,006     $ 0.71  

Net earnings from Max Foods

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

Net earnings from divestitures—KDP

     —         —         —         —         (1       —         5       —          (4     —    

Change in equity method investee items

     —         —         —         —         (1       —         1       —          —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 1,233     $ (34   $ 80     $ 1,187     $ 277       23.3   $ —       $ (95   $ 4      $ 1,001     $ 0.71  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

      

Currency

                        (23     (0.02
                     

 

 

   

 

 

 

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

                      $ 978     $ 0.69  
                     

 

 

   

 

 

 

Diluted Average Shares Outstanding

                          1,408  

 

     For the Three Months Ended September 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)

   $ 1,135     $ (38   $ 89     $ 1,084     $ 391       36.1   $ (345   $ (84   $ 3      $ 1,119     $ 0.78  

Simplify to Grow Program

     114       —         —         114       22         —         —         —          92       0.06  

Intangible asset impairment charges

     54       —         —         54       12         —         —         —          42       0.03  

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

     (145     —         3       (148     (27       —         —         —          (121     (0.08

Acquisition-related costs

     —         —         —         —         (3       —         —         —          3       —    

Divestiture-related costs

     6       —         —         6       —           —         —         —          6       —    

Net earnings from divestitures

     —         —         —         —         (8       —         24       —          (16     (0.01

Remeasurement of net monetary position

     2       —         —         2       —           —         —         —          2       —    

Impact from pension participation changes

     —         —         (3     3       1         —         —         —          2       —    

Initial impacts from enacted tax law changes

     —         —         —         —         (30       —         —         —          30       0.02  

Gain on equity method investment transactions

     —         —         —         —         (77       345       —         —          (268     (0.19

Equity method investee items

     —         —         —         —         1         —         (35     —          34       0.03  

Rounding

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 1,165     $ (38   $ 89     $ 1,114     $ 282       25.3   $ —       $ (95   $ 3      $ 924     $ 0.64  

Net earnings from divestitures—KDP

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

Change in equity method investee items

     —         —         —         —         (1       —         1       —          —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 1,165     $ (38   $ 89     $ 1,114     $ 279       25.0   $ —       $ (90   $ 3      $ 922     $ 0.64  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Diluted Average Shares Outstanding

                          1,442  

 

(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.c

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, 2021  
     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)

   $ 872     $ (54   $ 58     $ 868     $ 398       45.9    $ (502   $ (107   $ 1      $ 1,078     $ 0.76  

Simplify to Grow Program

     132       (1     —         133       35         —         —         —          98       0.07  

Intangible asset impairment charges

     32       —         —         32       8         —         —         —          24       0.02  

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

     (20     —         (3     (17     4         —         —         —          (21     (0.02

Acquisition integration costs and contingent consideration adjustments

     2       —         —         2       1         —         —         —          1       —    

Acquisition-related costs

     17       —         —         17       3         —         —         —          14       0.01  

Net earnings from divestitures

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

Remeasurement of net monetary position

     3       —         —         3       —           —         —         —          3       —    

Impact from pension participation changes

     44       14       (3     33       7         —         —         —          26       0.02  

Impact from resolution of tax matters

     (5     —         2       (7     (1       —         —         —          (6     —    

Initial impacts from enacted tax law changes

     —         —         —         —         (95       —         —         —          95       0.07  

Gain on equity method investment transactions

     —         —         —         —         (125       502       —         —          (377     (0.27

Equity method investee items

     —         —         —         —         2         —         (6     —          4       —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 1,077     $ (41   $ 54     $ 1,064     $ 235       22.1   $ —       $ (106   $ 1      $ 934     $ 0.66  

Net earnings from Max Foods

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

Net earnings from divestitures—KDP

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

Change in equity method investee items

     —         —         —         —         (1       —         1       —          —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 1,075     $ (41   $ 54     $ 1,062     $ 233       21.9   $ —       $ (102   $ 1      $ 930     $ 0.66  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

      

Currency

                        (59     (0.04
                     

 

 

   

 

 

 

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

                      $ 871     $ 0.62  
                     

 

 

   

 

 

 

Diluted Average Shares Outstanding

                          1,416  

 

     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     —    

Net earnings from divestitures

     —         —         —         —         (2       —         20       —          (18     (0.01

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 items

     —         —         —         —         4         —         (19     —          15       0.01  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 942     $ (35   $ 82     $ 895     $ 125       14.0   $ —       $ (105   $ 1      $ 874     $ 0.61  

Net earnings from divestitures—KDP

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

Change in equity method investee items

     —         —         —         —         —           —         2       —          (2     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 942     $ (35   $ 82     $ 895     $ 125       14.0   $ —       $ (101   $ 1      $ 870     $ 0.60  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Diluted Average Shares Outstanding

                          1,439  

 

(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.d

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, 2021  
     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)

   $  1,283     $ (44   $ 218     $ 1,109     $ 212       19.1    $ 7     $ (78   $ 7      $ 961     $ 0.68  

Simplify to Grow Program

     122       —         —         122       31         —         —         —          91       0.07  

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

     (118     —         (1     (117     (22       —         —         —          (95     (0.07

Acquisition integration costs and contingent consideration adjustments

     1       —         —         1       —           —         —         —          1       —    

Acquisition-related costs

     7       —         —         7       1         —         —         —          6       0.01  

Gain on acquisition

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

Net earnings from divestitures

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

Remeasurement of net monetary position

     5       —         —         5       —           —         —         —          5       —    

Impact from pension participation changes

     1       —         (3     4       1         —         —         —          3       —    

Loss on debt extinguishment and related expenses

     —         —         (137     137       34         —         —         —          103       0.07  

Initial impacts from enacted tax law changes

     —         —         —         —         (4       —         —         —          4       —    

Loss on equity method investment transactions

     —         —         —         —         —           (7     —         —          7       —    

Equity method investee items

     —         —         —         —         1         —         (58     —          57       0.04  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)

   $ 1,292     $ (44   $ 77     $ 1,259     $ 250       19.9   $ —       $ (127   $ 7      $ 1,129     $ 0.79  

Net earnings from divestitures—KDP

     —         —         —         —         (1       —         5       —          (4     —    

Change in equity method investee items

     —         —         —         —         1         —         1       —          (2     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted (Non-GAAP)—As Recast

   $ 1,292     $ (44   $ 77     $ 1,259     $ 250       19.9   $ —       $ (121   $ 7      $ 1,123     $ 0.79  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

      

Currency

                        (50     (0.04
                     

 

 

   

 

 

 

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

                      $ 1,073     $ 0.75  
                     

 

 

   

 

 

 

Diluted Average Shares Outstanding

                          1,422  

 

     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