8-K
Mondelez International, Inc. false 0001103982 0001103982 2022-10-11 2022-10-11 0001103982 us-gaap:CommonStockMember 2022-10-11 2022-10-11 0001103982 mdlz:OnePointSixTwentyFivePercentNotesDue2027Member 2022-10-11 2022-10-11 0001103982 mdlz:ZeroPointTwoFiftyPercentNotesDue2028Member 2022-10-11 2022-10-11 0001103982 mdlz:ZeroPointSevenFiftyPercentNotesDue2033Member 2022-10-11 2022-10-11 0001103982 mdlz:M2.375NotesDue20352Member 2022-10-11 2022-10-11 0001103982 mdlz:M4.500NotesDue20351Member 2022-10-11 2022-10-11 0001103982 mdlz:OnePointThreeSeventyFivePercentNotesDue2041Member 2022-10-11 2022-10-11 0001103982 mdlz:ThreePointEightSeventyFivePercentNotesDue2045Member 2022-10-11 2022-10-11

 

 

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 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 May 8, 2022 sale of JDE Peet’s (“JDEP”) shares, (2) our July 7, 2022 sale, of a business in Argentina which included several local brands and a manufacturing facility, and (3) the September 1, 2022 expiration of a Kraft Heinz Company (“KHC”) license agreement to produce and sell Kraft mayonnaise in Latin American countries, predominately Mexico.

Due to our reporting of JDEP’s results on a one-quarter lag basis, the impact of the sale of the JDEP shares will affect our non-GAAP financial results beginning with our third quarter ended September 30, 2022. Consistent with our definitions of our non-GAAP financial measures, we will reflect the partial sale of our equity method investment in JDEP as well as the sale of a business in Argentina and the expiration of our KHC license agreement to produce and sell Kraft mayonnaise 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 JDEP Shares

As previously disclosed in our Quarterly Report on Form 10-Q for the three months ended June 30, 2022, we sold approximately 18.6 million of our JDEP shares back to JDEP on May 8, 2022, which reduced our ownership interest by approximately 3.0% to 19.8% of the total outstanding shares. We received €500 million ($529 million) of proceeds and recorded a loss of €8 million ($8 million) during the second quarter of 2022.

We consider the approximately 3.0% ownership reduction resulting from this sale of shares a partial sale of our equity method investment in JDEP. Consistent with our definitions of our non-GAAP financial measures, we consider this sale to be a divestiture. Due to our reporting of JDEP’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, 2022. As such, we have removed the equity method investment net earnings results related to this partial sale of our equity method investment in JDEP 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 JDEP, did not change from what was previously reported.

Change to our Historical Non-GAAP Financial Results in Connection with our Sale of a business in Argentina and the expiration of our KHC license agreement to produce and sell Kraft Mayonnaise

On July 7, 2022, we completed the sale of a business in Argentina including several local gum and candy brands and a manufacturing facility. In addition, our KHC license agreement to produce and sell Kraft mayonnaise in Latin America countries, predominately Mexico, expired on September 1, 2022. Consistent with the definitions of our non-GAAP financial measures, we consider these transactions to be divestitures and we removed the results of these operations from our non-GAAP financial results for Organic Net Revenue, Adjusted Gross Profit, Adjusted Operating Income and Adjusted EPS for all historical periods presented. Our U.S. GAAP results, which include the results of these divested operations through the divestiture closing date or license agreement expiration date noted above, did 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 two quarters and six months of 2022, all quarters of 2021 and 2020, and the years ended December 31, 2021, and 2020. This supplemental disclosure does not amend any disclosure contained in any of our prior filings with the Securities and Exchange Commission.

Mondelēz International, Inc. and Subsidiaries

Recast Amounts Reflecting Change Due to Divestiture

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

(Unaudited)

 

    2020     2021     2022     2020     2021     2022  
    FY     FY     H1     Q1     Q2     Q3     Q4     Q1     Q2     Q3     Q4     Q1     Q2  

Reported (GAAP)

                         

Gross Profit

  $  10,446     $  11,254     $ 5,624     $  2,451     $ 2,331     $ 2,792     $ 2,872     $  2,966     $ 2,631     $ 2,824     $ 2,833     $  2,983     $ 2,641  

Operating Income

    3,853       4,653       2,021       856       713       1,135       1,149       1,283       872       1,294       1,204       1,094       927  

Equity method investment net earnings

    421       393       215       121       106       84       110       78       107       105       103       117       98  

Provision for income taxes

    1,224       1,190       411       148       341       391       344       212       398       342       238       210       201  

Net earnings attributable to Mondelēz International

    3,555       4,300       1,602       736       544       1,119       1,156       961       1,078       1,258       1,003       855       747  

Diluted earnings per share attributable to Mondelēz International

  $ 2.47     $ 3.04     $ 1.15     $ 0.51     $ 0.38     $ 0.78     $ 0.80     $ 0.68     $ 0.76     $ 0.89     $ 0.71     $ 0.61     $ 0.54  

Adjusted (Non-GAAP) - As Recast

                         

Gross Profit

  $  10,519     $  11,096     $ 5,763     $  2,653     $ 2,349     $ 2,658     $ 2,859     $  2,864     $ 2,648     $ 2,744     $ 2,840     $  3,007     $ 2,756  

Operating Income

    4,399       4,765       2,474       1,104       943       1,163       1,189       1,291       1,073       1,230       1,171       1,377       1,097  

Equity method investment net earnings

    358       401       187       89       95       82       92       112       95       88       106       107       80  

Provision for income taxes

    878       983       533       196       122       278       282       250       232       276       225       319       214  

Net earnings attributable to Mondelēz International

    3,666       4,020       2,074       938       868       913       947       1,113       922       992       993       1,158       916  

Diluted earnings per share attributable to Mondelēz International

  $ 2.54     $ 2.85     $ 1.49     $ 0.65     $ 0.60     $ 0.63     $ 0.66     $ 0.78     $ 0.65     $ 0.70     $ 0.71     $ 0.83     $ 0.66  

 

2


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 Organic Net Revenue, Adjusted Gross Profit and Adjusted Operating Income, due to the sale of several of our local Argentinean gum and candy brands and the expiration of our KHC license to produce and sell Kraft mayonnaise in Latin America countries, predominately Mexico, and for Adjusted EPS, due to the above mentioned business transactions as well as the partial sale of our equity method investment in JDEP, for the first two quarters and six months of 2022, all quarters of 2021 and 2020, and the years ended December 31, 2021 and 2020.

 

   

Schedule 1 provides reconciliations of the differences between reported Net Revenues (GAAP) and the recast Organic Net Revenue (non-GAAP) measures.

 

   

Schedule 2 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 3 provides reconciliations of the differences between reported Operating Income (GAAP) and the recast Adjusted Operating Income (non-GAAP) by reportable segment.

 

   

Schedule 4 provides reconciliations of the differences between 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 5 provides reconciliations between 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.

This information, including Exhibits 99.1 and 99.2, will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section and it will not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01.

Financial Statements and Exhibits.

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

 

  99.1      Financial schedules – Unaudited GAAP and Non-GAAP Financial Information.
  99.2      Non-GAAP Financial Measures – Additional Information.
  104      The cover page from Mondelēz International, Inc.’s Current Report on Form 8-K, formatted in Inline XBRL (included as Exhibit 101).

 

3


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

MONDELĒZ INTERNATIONAL, INC.
By:  

/s/ Luca Zaramella

Name:   Luca Zaramella
Title:  

Executive Vice President and

    Chief Financial Officer

Date: October 11, 2022

 

4

EX-99.1

Exhibit 99.1

U.S. GAAP to Non-GAAP Reconciliations

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

Schedule 1.a

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

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

For the Six Months Ended June 30, 2022

                   

Reported (GAAP)

   $ 1,702     $ 3,402     $ 5,561     $ 4,373     $ 15,038          $ 5,770     $ 9,268  

Acquisitions

     —         (15     (373     (16     (404          (251     (153

Currency

     29       142       538       8       717            277       440  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 1,731     $ 3,529     $ 5,726     $ 4,365     $ 15,351          $ 5,796     $ 9,555  

Divestiture - Argentina business

     (15     —         —         —         (15          (15     —    

Divestiture - KHC license

     (6     —         —         —         (6          (6     —    

Currency Impact of divestiture

     (2     —         —         —         (2          (2     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 1,708     $ 3,529     $ 5,726     $ 4,365     $ 15,328          $ 5,773     $ 9,555  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

For the Six Months Ended June 30, 2021

                   

Reported (GAAP)

   $ 1,338     $ 3,197     $ 5,321     $ 4,024     $ 13,880          $ 4,856     $ 9,024  

Divestitures

     —         (14     —         —         (14          —         (14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 1,338     $ 3,183     $ 5,321     $ 4,024     $ 13,866          $ 4,856     $ 9,010  

Divestiture - Argentina business

     (12     —         —         —         (12          (12     —    

Divestiture - KHC license

     (5     —         —         —         (5          (5     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 1,321     $ 3,183     $ 5,321     $ 4,024     $ 13,849          $ 4,839     $ 9,010  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

% Change

                   

Reported (GAAP)

     27.2     6.4     4.5     8.7     8.3          18.8     2.7

Organic (Non-GAAP)

     29.4     10.9     7.6     8.5     10.7          19.4     6.0

Organic (Non-GAAP) - As Recast

     29.3     10.9     7.6     8.5     10.7          19.3     6.0

 

1


Schedule 1.b

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

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

For the Three Months Ended June 30, 2022

                   

Reported (GAAP)

   $ 876     $ 1,535     $ 2,626     $ 2,237     $ 7,274          $ 2,806     $ 4,468  

Acquisitions

     —         —         (189     (9     (198          (135     (63

Currency

     14       93       303       8       418            138       280  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 890     $ 1,628     $ 2,740     $ 2,236     $ 7,494          $ 2,809     $ 4,685  

Divestiture - Argentina business

     (9     —         —         —         (9          (9     —    

Divestiture - KHC license

     (3     —         —         —         (3          (3     —    

Currency Impact of divestiture

     (1     —         —         —         (1          (1     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 877     $ 1,628     $ 2,740     $ 2,236     $ 7,481          $ 2,796     $ 4,685  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

For the Three Months Ended June 30, 2021

                   

Reported (GAAP)

   $ 669     $ 1,452     $ 2,474     $ 2,047     $ 6,642          $ 2,293     $ 4,349  

Divestitures

     —         (14     —         —         (14          —         (14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 669     $ 1,438     $ 2,474     $ 2,047     $ 6,628          $ 2,293     $ 4,335  

Divestiture - Argentina business

     (7     —         —         —         (7          (7     —    

Divestiture - KHC license

     (2     —         —         —         (2          (2     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 660     $ 1,438     $ 2,474     $ 2,047     $ 6,619          $ 2,284     $ 4,335  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

% Change

                   

Reported (GAAP)

     30.9     5.7     6.1     9.3     9.5          22.4     2.7

Organic (Non-GAAP)

     33.0     13.2     10.8     9.2     13.1          22.5     8.1

Organic (Non-GAAP) - As Recast

     32.9     13.2     10.8     9.2     13.0          22.4     8.1

 

2


Schedule 1.c

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

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

For the Three Months Ended March 31, 2022

                   

Reported (GAAP)

   $ 826     $ 1,867     $ 2,935     $ 2,136     $ 7,764          $ 2,964     $ 4,800  

Acquisitions

     —         (15     (184     (7     (206          (116     (90

Currency

     15       49       235       —         299            139       160  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 841     $ 1,901     $ 2,986     $ 2,129     $ 7,857          $ 2,987     $ 4,870  

Divestiture - Argentina business

     (6     —         —         —         (6          (6     —    

Divestiture - KHC license

     (3     —         —         —         (3          (3     —    

Currency Impact of divestiture

     (1     —         —         —         (1          (1     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 831     $ 1,901     $ 2,986     $ 2,129     $ 7,847          $ 2,977     $ 4,870  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

For the Three Months Ended March 31, 2021

                   

Reported (GAAP)

   $ 669     $ 1,745     $ 2,847     $ 1,977     $ 7,238          $ 2,563     $ 4,675  

Divestitures

     —         —         —         —         —              —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 669     $ 1,745     $ 2,847     $ 1,977     $ 7,238          $ 2,563     $ 4,675  

Divestiture - Argentina business

     (5     —         —         —         (5          (5     —    

Divestiture - KHC license

     (3     —         —         —         (3          (3     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 661     $ 1,745     $ 2,847     $ 1,977     $ 7,230          $ 2,555     $ 4,675  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

% Change

                   

Reported (GAAP)

     23.5     7.0     3.1     8.0     7.3          15.6     2.7

Organic (Non-GAAP)

     25.7     8.9     4.9     7.7     8.6          16.5     4.2

Organic (Non-GAAP) - As Recast

     25.7     8.9     4.9     7.7     8.5          16.5     4.2

 

3


Schedule 1.d

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

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

For the Twelve Months Ended December 31, 2021

                   

Reported (GAAP)

   $ 2,797     $ 6,465     $ 11,156     $ 8,302     $ 28,720          $ 10,132     $ 18,588  

Divestitures

     —         (35     —         —         (35          —         (35

Acquisitions

     —         (47     (63     (144     (254          —         (254

Currency

     186       (222     (376     (50     (462          74       (536
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 2,983     $ 6,161     $ 10,717     $ 8,108     $ 27,969          $ 10,206     $ 17,763  

Divestiture - Argentina business

     (34     —         —         —         (34          (34     —    

Divestiture - KHC license

     (9     —         —         —         (9          (9     —    

Currency Impact of divestiture

     (10     —         —         —         (10          (10     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 2,930     $ 6,161     $ 10,717     $ 8,108     $ 27,916          $ 10,153     $ 17,763  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

For the Twelve Months Ended December 31, 2020

                   

Reported (GAAP)

   $ 2,477     $ 5,740     $ 10,207     $ 8,157     $ 26,581          $ 9,097     $ 17,484  

Divestitures

     —         —         —         —         —              —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 2,477     $ 5,740     $ 10,207     $ 8,157     $ 26,581          $ 9,097     $ 17,484  

Divestiture - Argentina business

     (23     —         —         —         (23          (23     —    

Divestiture - KHC license

     (9     —         —         —         (9          (9     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 2,445     $ 5,740     $ 10,207     $ 8,157     $ 26,549          $ 9,065     $ 17,484  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

% Change

                   

Reported (GAAP)

     12.9     12.6     9.3     1.8     8.0          11.4     6.3

Organic (Non-GAAP)

     20.4     7.3     5.0     (0.6 )%      5.2          12.2     1.6

Organic (Non-GAAP) - As Recast

     19.8     7.3     5.0     (0.6 )%      5.1          12.0     1.6

 

4


Schedule 1.e

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

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

For the Three Months Ended December 31, 2021

                   

Reported (GAAP)

   $ 708     $ 1,639     $ 3,121     $ 2,190     $ 7,658          $ 2,692     $ 4,966  

Divestitures

     —         (5     —         —         (5          —         (5

Acquisitions

     —         (21     (22     (11     (54          —         (54

Currency

     46       7       51       (8     96            56       40  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 754     $ 1,620     $ 3,150     $ 2,171     $ 7,695          $ 2,748     $ 4,947  

Divestiture - Argentina business

     (13     —         —         —         (13          (13     —    

Divestiture - KHC license

     (2     —         —         —         (2          (2     —    

Currency Impact of divestiture

     (3     —         —         —         (3          (3     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 736     $ 1,620     $ 3,150     $ 2,171     $ 7,677          $ 2,730     $ 4,947  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

For the Three Months Ended December 31, 2020

                   

Reported (GAAP)

   $ 630     $ 1,531     $ 2,959     $ 2,178     $ 7,298          $ 2,474     $ 4,824  

Divestitures

     —         —         —         —         —              —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 630     $ 1,531     $ 2,959     $ 2,178     $ 7,298          $ 2,474     $ 4,824  

Divestiture - Argentina business

     (8     —         —         —         (8          (8     —    

Divestiture - KHC license

     (2     —         —         —         (2          (2     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 620     $ 1,531     $ 2,959     $ 2,178     $ 7,288          $ 2,464     $ 4,824  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

% Change

                   

Reported (GAAP)

     12.4     7.1     5.5     0.6     4.9          8.8     2.9

Organic (Non-GAAP)

     19.7     5.8     6.5     (0.3 )%      5.4          11.1     2.5

Organic (Non-GAAP) - As Recast

     18.7     5.8     6.5     (0.3 )%      5.3          10.8     2.5

 

5


Schedule 1.f

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

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

For the Three Months Ended September 30, 2021

                   

Reported (GAAP)

   $ 751     $ 1,629     $ 2,714     $ 2,088     $ 7,182          $ 2,584     $ 4,598  

Divestitures

     —         (16     —         —         (16          —         (16

Acquisitions

     —         (15     (20     (11     (46          —         (46

Currency

     17       (44     (51     (11     (89          (16     (73
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 768     $ 1,554     $ 2,643     $ 2,066     $ 7,031          $ 2,568     $ 4,463  

Divestiture - Argentina business

     (9     —         —         —         (9          (9     —    

Divestiture - KHC license

     (2     —         —         —         (2          (2     —    

Currency Impact of divestiture

     (3     —         —         —         (3          (3     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 754     $ 1,554     $ 2,643     $ 2,066     $ 7,017          $ 2,554     $ 4,463  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

For the Three Months Ended September 30, 2020

                   

Reported (GAAP)

   $ 610     $ 1,470     $ 2,526     $ 2,059     $ 6,665          $ 2,289     $ 4,376  

Divestitures

     —         —         —         —         —              —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 610     $ 1,470     $ 2,526     $ 2,059     $ 6,665          $ 2,289     $ 4,376  

Divestiture - Argentina business

     (8     —         —         —         (8          (8     —    

Divestiture - KHC license

     (2     —         —         —         (2          (2     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 600     $ 1,470     $ 2,526     $ 2,059     $ 6,655          $ 2,279     $ 4,376  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

% Change

                   

Reported (GAAP)

     23.1     10.8     7.4     1.4     7.8          12.9     5.1

Organic (Non-GAAP)

     25.9     5.7     4.6     0.3     5.5          12.2     2.0

Organic (Non-GAAP) - As Recast

     25.7     5.7     4.6     0.3     5.4          12.1     2.0

 

6


Schedule 1.g

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

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

For the Three Months Ended June 30, 2021

                   

Reported (GAAP)

   $ 669     $ 1,452     $ 2,474     $ 2,047     $ 6,642          $ 2,293     $ 4,349  

Divestitures

     —         (14     —         —         (14          —         (14

Acquisitions

     —         (11     (21     (8     (40          —         (40

Currency

     14       (104     (199     (20     (309          (60     (249
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 683     $ 1,323     $ 2,254     $ 2,019     $ 6,279          $ 2,233     $ 4,046  

Divestiture - Argentina business

     (7     —         —         —         (7          (7     —    

Divestiture - KHC license

     (2     —         —         —         (2          (2     —    

Currency Impact of divestiture

     (2     —         —         —         (2          (2     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 672     $ 1,323     $ 2,254     $ 2,019     $ 6,268          $ 2,222     $ 4,046  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

For the Three Months Ended June 30, 2020

                   

Reported (GAAP)

   $ 511     $ 1,237     $ 2,138     $ 2,025     $ 5,911          $ 1,917     $ 3,994  

Divestitures

     —         —         —         —         —              —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 511     $ 1,237     $ 2,138     $ 2,025     $ 5,911          $ 1,917     $ 3,994  

Divestiture - Argentina business

     (3     —         —         —         (3          (3     —    

Divestiture - KHC license

     (2     —         —         —         (2          (2     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 506     $ 1,237     $ 2,138     $ 2,025     $ 5,906          $ 1,912     $ 3,994  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

% Change

                   

Reported (GAAP)

     30.9     17.4     15.7     1.1     12.4          19.6     8.9

Organic (Non-GAAP)

     33.7     7.0     5.4     (0.3 )%      6.2          16.5     1.3

Organic (Non-GAAP) - As Recast

     32.8     7.0     5.4     (0.3 )%      6.1          16.2     1.3

 

7


Schedule 1.h

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

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

For the Three Months Ended March 31, 2021

                   

Reported (GAAP)

   $ 669     $ 1,745     $ 2,847     $ 1,977     $ 7,238          $ 2,563     $ 4,675  

Acquisitions

     —         —         —         (114     (114          —         (114

Currency

     109       (81     (177     (11     (160          94       (254
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 778     $ 1,664     $ 2,670     $ 1,852     $ 6,964          $ 2,657     $ 4,307  

Divestiture - Argentina business

     (5     —         —         —         (5          (5     —    

Divestiture - KHC license

     (3     —         —         —         (3          (3     —    

Currency Impact of divestiture

     (2     —         —         —         (2          (2     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 768     $ 1,664     $ 2,670     $ 1,852     $ 6,954          $ 2,647     $ 4,307  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

For the Three Months Ended March 31, 2020

                   

Reported (GAAP)

   $ 726     $ 1,502     $ 2,584     $ 1,895     $ 6,707          $ 2,417     $ 4,290  

Divestitures

     —         —         —         —         —              —         —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 726     $ 1,502     $ 2,584     $ 1,895     $ 6,707          $ 2,417     $ 4,290  

Divestiture - Argentina business

     (4     —         —         —         (4          (4     —    

Divestiture - KHC license

     (3     —         —         —         (3          (3     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 719     $ 1,502     $ 2,584     $ 1,895     $ 6,700          $ 2,410     $ 4,290  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

% Change

                   

Reported (GAAP)

     (7.9 )%      16.2     10.2     4.3     7.9          6.0     9.0

Organic (Non-GAAP)

     7.2     10.8     3.3     (2.3 )%      3.8          9.9     0.4

Organic (Non-GAAP) - As Recast

     6.8     10.8     3.3     (2.3 )%      3.8          9.8     0.4

 

8


Schedule 1.i

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Revenues

(in millions of U.S. dollars)

(Unaudited)

 

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

For the Twelve Months Ended December 31, 2020

                   

Reported (GAAP)

   $ 2,477     $ 5,740     $ 10,207     $ 8,157     $ 26,581          $ 9,097     $ 17,484  

Acquisitions

     —         —         —         (445     (445          —         (445

Currency

     546       70       14       7       637            749       (112
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 3,023     $ 5,810     $ 10,221     $ 7,719     $ 26,773          $ 9,846     $ 16,927  

Divestiture - Argentina business

     (23     —         —         —         (23          (23     —    

Divestiture - KHC license

     (9     —         —         —         (9          (9     —    

Currency Impact of divestiture

     (10     —         —         —         (10          (10     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 2,981     $ 5,810     $ 10,221     $ 7,719     $ 26,731          $ 9,804     $ 16,927  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

For the Twelve Months Ended December 31, 2019

                   

Reported (GAAP)

   $ 3,018     $ 5,770     $ 9,972     $ 7,108     $ 25,868          $ 9,675     $ 16,193  

Divestitures

     —         (55     —         —         (55          (55     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP)

   $ 3,018     $ 5,715     $ 9,972     $ 7,108     $ 25,813          $ 9,620     $ 16,193  

Divestiture - Argentina business

     (26     —         —         —         (26          (26     —    

Divestiture - KHC license

     (10     —         —         —         (10          (10     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

Organic (Non-GAAP) - As Recast

   $ 2,982     $ 5,715     $ 9,972     $ 7,108     $ 25,777          $ 9,584     $ 16,193  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

        

 

 

   

 

 

 

% Change

                   

Reported (GAAP)

     (17.9 )%      (0.5 )%      2.4     14.8     2.8          (6.0 )%      8.0

Organic (Non-GAAP)

     0.2     1.7     2.5     8.6     3.7          2.3     4.5

Organic (Non-GAAP) - As Recast

     0.0     1.7     2.5     8.6     3.7          2.3     4.5

 

9


Schedule 2.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 Six Months Ended June 30, 2022  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 15,038     $ 5,624       37.4   $ 2,021       13.4 %  

Simplify to Grow Program

     —         21         53    

Intangible asset impairment charges

     —         —           78    

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

     —         81         82    

Acquisition integration costs and contingent consideration adjustments

     —         1         69    

Acquisition-related costs

     —         —           26    

Divestiture-related costs

     —         2         6    

Remeasurement of net monetary position

     —         —           15    

Incremental costs due to war in Ukraine

     —         37         128    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 15,038     $ 5,766       38.3   $ 2,478       16.5

Operating income from divestiture - Argentina business

     (15     (4       (5  

Operating income from divestiture - KHC license

     (6     1         1    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 15,017     $ 5,763       38.4   $ 2,474       16.5
  

 

 

         

Currency

       287         154    
    

 

 

     

 

 

   

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

     $ 6,050       $ 2,628    
    

 

 

     

 

 

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

Reported (GAAP)

   $ 13,880     $ 5,597       40.3   $ 2,155       15.5 %  

Simplify to Grow Program

     —         35         254    

Intangible asset impairment charges

     —         —           32    

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

     —         (137       (138  

Acquisition integration costs and contingent consideration adjustments

     —         1         3    

Acquisition-related costs

     —         —           24    

Operating income from divestitures

     (14     (1       (2  

Gain on acquisition

     —         —           (9  

Remeasurement of net monetary position

     —         —           8    

Impact from pension participation changes

     —         19         45    

Impact from resolution of tax matters

     —         —           (5  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 13,866     $ 5,514       39.8   $ 2,367       17.1

Operating income from divestiture - Argentina business

     (12     (2       (3  

Operating income from divestiture - KHC license

     (5     —           —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 13,849     $ 5,512       39.8   $ 2,364       17.1
  

 

 

   

 

 

     

 

 

   
               Gross    
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ 27       $ (134  

$ Change - Adjusted (Non-GAAP)

       252         111    

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

       251         110    

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

       538         264    

% Change - Reported (GAAP)

       0.5       (6.2 )%   

% Change - Adjusted (Non-GAAP)

       4.6       4.7  

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

       4.6       4.7  

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

       9.8       11.2  

 

10


Schedule 2.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 June 30, 2022  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 7,274     $ 2,641       36.3   $ 927       12.7

Simplify to Grow Program

     —         11         22    

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

     —         109         109    

Acquisition integration costs and contingent consideration adjustments

     —         1         37    

Acquisition-related costs

     —         —           5    

Divestiture-related costs

     —         1         5    

Remeasurement of net monetary position

     —         —           10    

Incremental costs due to war in Ukraine

     —         (7       (15  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 7,274     $ 2,756       37.9   $ 1,100       15.1

Operating income from divestiture - Argentina business

     (9     (1       (3  

Operating income from divestiture - KHC license

     (3     1         —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 7,262     $ 2,756       38.0   $ 1,097       15.1
  

 

 

         

Currency

       148         65    
    

 

 

     

 

 

   

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

     $ 2,904       $ 1,162    
    

 

 

     

 

 

   
     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    

Operating income from divestitures

     (14     (1       (2  

Remeasurement of net monetary position

     —         —           3    

Impact from pension participation changes

     —         18         44    

Impact from resolution of tax matters

     —         —           (5  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

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

Operating income from divestiture - Argentina business

     (7     (1       (2  

Operating income from divestiture - KHC license

     (2     1         —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 6,619     $ 2,648       40.0   $ 1,073       16.2
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ 10       $ 55    

$ Change - Adjusted (Non-GAAP)

       108         25    

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

       108         24    

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

       256         89    

% Change - Reported (GAAP)

       0.4       6.3  

% Change - Adjusted (Non-GAAP)

       4.1       2.3  

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

       4.1       2.2  

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

       9.7       8.3  

 

11


Schedule 2.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 March 31, 2022  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 7,764     $ 2,983       38.4   $ 1,094       14.1

Simplify to Grow Program

     —         10         31    

Intangible asset impairment charges

     —         —           78    

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

     —         (28       (27  

Acquisition integration costs and contingent consideration adjustments

     —         —           32    

Acquisition-related costs

     —         —           21    

Divestiture-related costs

     —         1         1    

Remeasurement of net monetary position

     —         —           5    

Incremental costs due to war in Ukraine

     —         44         143    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 7,764     $ 3,010       38.8   $ 1,378       17.7

Operating income from divestiture - Argentina business

     (6     (3       (2  

Operating income from divestiture - KHC license

     (3     —           1    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 7,755     $ 3,007       38.8   $ 1,377       17.8
  

 

 

         

Currency

       139         89    
    

 

 

     

 

 

   

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

     $ 3,146       $ 1,466    
    

 

 

     

 

 

   
     For the Three Months Ended March 31, 2021  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 7,238     $ 2,966       41.0   $ 1,283       17.7

Simplify to Grow Program

     —         15         122    

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

     —         (116       (118  

Acquisition integration costs and contingent consideration adjustments

     —         —           1    

Acquisition-related costs

     —         —           7    

Gain on acquisition

     —         —           (9  

Remeasurement of net monetary position

     —         —           5    

Impact from pension participation changes

     —         1         1    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 7,238     $ 2,866       39.6   $ 1,292       17.9

Operating income from divestiture - Argentina business

     (5     (1       (1  

Operating income from divestiture - KHC license

     (3     (1       —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 7,230     $ 2,864       39.6   $ 1,291       17.9
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ 17       $ (189  

$ Change - Adjusted (Non-GAAP)

       144         86    

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

       143         86    

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

       282         175    

% Change - Reported (GAAP)

       0.6       (14.7 )%   

% Change - Adjusted (Non-GAAP)

       5.0       6.7  

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

       5.0       6.7  

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

       9.8       13.6  

 

12


Schedule 2.d

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Gross Profit / Operating Income

(in millions of U.S. dollars)

(Unaudited)

 

     For the Twelve Months Ended December 31, 2021  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 28,720     $ 11,254       39.2   $ 4,653       16.2

Simplify to Grow Program

     —         114         319    

Intangible asset impairment charges

     —         —           32    

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

     —         (279       (279  

Acquisition integration costs and contingent consideration adjustments

     —         1         (40  

Acquisition-related costs

     —         —           25    

Divestiture-related costs

     —         —           22    

Operating income from divestitures

     (35     (5       (5  

Net gain on acquisition and divestitures

     —         —           (8  

Operating income from divestiture - Argentina business

     —         —           13    

Impact from pension participation changes

     —         20         48    

Impact from resolution of tax matters

     —         —           (5  

Rounding

     —         1         —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 28,685     $ 11,106       38.7   $ 4,775       16.6

Operating income from divestiture - Argentina business

     (34     (10       (10  

Operating income from divestiture - KHC license

     (9     —           —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 28,642     $ 11,096       38.7   $ 4,765       16.6
  

 

 

         

Currency

       (210       (120  
    

 

 

     

 

 

   

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

     $ 10,886       $ 4,645    
    

 

 

     

 

 

   
     For the Twelve Months Ended December 31, 2020  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 26,581     $ 10,446       39.3   $ 3,853       14.5

Simplify to Grow Program

     —         90         360    

Intangible asset impairment charges

     —         —           144    

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

     —         (16       (16  

Acquisition integration costs

     —         1         4    

Acquisition-related costs

     —         —           15    

Divestiture-related costs

     —         —           4    

Costs associated with JDE Peet’s transaction

     —         —           48    

Remeasurement of net monetary position

     —         —           9    

Impact from resolution of tax matters

     —         —           (20  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 26,581     $ 10,521       39.6   $ 4,401       16.6

Operating income from divestiture - Argentina business

     (23     (2       (2  

Operating income from divestiture - KHC license

     (9     —           —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 26,549     $ 10,519       39.6   $ 4,399       16.6
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ 808       $ 800    

$ Change - Adjusted (Non-GAAP)

       585         374    

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

       577         366    

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

       367         246    

% Change - Reported (GAAP)

       7.7       20.8  

% Change - Adjusted (Non-GAAP)

       5.6       8.5  

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

       5.5       8.3  

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

       3.5       5.6  

 

13


Schedule 2.e

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Gross Profit / Operating Income

(in millions of U.S. dollars)

(Unaudited)

 

     For the Three Months Ended December 31, 2021  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 7,658     $ 2,833       37.0   $ 1,204       15.7

Simplify to Grow Program

     —         22         (62  

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

     —         (9       (9  

Acquisition integration costs and contingent consideration adjustments

     —         (1       14    

Acquisition-related costs

     —         —           1    

Divestiture-related costs

     —         —           22    

Operating income from divestitures

     (5     (1       —      

Loss on divestiture

     —         —           1    

Remeasurement of net monetary position

     —         —           3    

Operating income from divestiture - Argentina business

     —         —           1    

Rounding

     —         1         —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 7,653     $ 2,845       37.2   $ 1,175       15.4

Operating income from divestiture - Argentina business

     (13     (4       (4  

Operating income from divestiture - KHC license

     (2     (1       —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 7,638     $ 2,840       37.2   $ 1,171       15.3
  

 

 

         

Currency

       35         10    
    

 

 

     

 

 

   

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

     $ 2,875       $ 1,181    
    

 

 

     

 

 

   
     For the Three Months Ended December 31, 2020  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 7,298     $ 2,872       39.4   $ 1,149       15.7

Simplify to Grow Program

     —         42         112    

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

     —         (56       (58  

Acquisition integration costs

     —         1         2    

Remeasurement of net monetary position

     —         —           2    

Impact from resolution of tax matters

     —         —           (20  

Rounding

     —         —           1    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 7,298     $ 2,859       39.2   $ 1,188       16.3

Operating income from divestiture - Argentina business

     (8     —           —      

Operating income from divestiture - KHC license

     (2     —           1    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 7,288     $ 2,859       39.2   $ 1,189       16.3
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ (39     $ 55    

$ Change - Adjusted (Non-GAAP)

       (14       (13  

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

       (19       (18  

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

       16         (8  

% Change - Reported (GAAP)

       (1.4 )%        4.8  

% Change - Adjusted (Non-GAAP)

       (0.5 )%        (1.1 )%   

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

       (0.7 )%        (1.5 )%   

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

       0.6       (0.7 )%   

 

14


Schedule 2.f

 

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  

Operating income from divestitures

     (16     (3       (3  

Remeasurement of net monetary position

     —         —           2    

Impact from pension participation changes

     —         1         2    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

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

Operating income from divestiture - Argentina business

     (9     (4       (3  

Operating income from divestiture - KHC license

     (2     1         —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 7,155     $ 2,744       38.4   $ 1,230       17.2
  

 

 

         

Currency

       (33       (19  
    

 

 

     

 

 

   

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

     $ 2,711       $ 1,211    
    

 

 

     

 

 

   
     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

Operating income from divestiture - Argentina business

     (8     (2       (2  

Operating income from divestiture - KHC license

     (2     1         —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) -As Recast

   $ 6,655     $ 2,658       39.9   $ 1,163       17.5
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ 32       $ 159    

$ Change - Adjusted (Non-GAAP)

       88         68    

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

       86         67    

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

       53         48    

% Change - Reported (GAAP)

       1.1       14.0  

% Change - Adjusted (Non-GAAP)

       3.3       5.8  

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

       3.2       5.8  

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

       2.0       4.1  

 

15


Schedule 2.g

 

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    

Operating income from divestitures

     (14     (1       (2  

Remeasurement of net monetary position

     —         —           3    

Impact from pension participation changes

     —         18         44    

Operating income from divestiture - Argentina business

     —         —           (5  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

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

Operating income from divestiture - Argentina business

     (7     (1       (2  

Operating income from divestiture - KHC license

     (2     1         —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) -As Recast

   $ 6,619     $ 2,648       40.0   $ 1,073       16.2
  

 

 

         

Currency

       (136       (67  
    

 

 

     

 

 

   

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

     $ 2,512       $ 1,006    
    

 

 

     

 

 

   
     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

Operating income from divestiture - Argentina business

     (3     1         1    

Operating income from divestiture - KHC license

     (2     1         —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 5,906     $ 2,349       39.8   $ 943       16.0
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ 300       $ 159    

$ Change - Adjusted (Non-GAAP)

       301         133    

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

       299         130    

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

       163         63    

% Change - Reported (GAAP)

       12.9       22.3  

% Change - Adjusted (Non-GAAP)

       12.8       14.1  

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

       12.7       13.8  

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

       6.9       6.7  

 

16


Schedule 2.h

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Gross Profit / Operating Income

(in millions of U.S. dollars)

(Unaudited)

 

     For the Three Months Ended March 31, 2021  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 7,238     $ 2,966       41.0   $ 1,283       17.7

Simplify to Grow Program

     —         15         122    

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

     —         (116       (118  

Acquisition integration costs and contingent consideration adjustments

     —         —           1    

Acquisition-related costs

     —         —           7    

Gain on acquisition

     —         —           (9  

Remeasurement of net monetary position

     —         —           5    

Impact from pension participation changes

     —         1         1    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 7,238     $ 2,866       39.6   $ 1,292       17.9

Operating income from divestiture - Argentina business

     (5     (1       (1  

Operating income from divestiture- KHC license

     (3     (1       —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 7,230     $ 2,864       39.6   $ 1,291       17.9
  

 

 

         

Currency

       (76       (44  
    

 

 

     

 

 

   

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

     $ 2,788       $ 1,247    
    

 

 

     

 

 

   
     For the Three Months Ended March 31, 2020  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 6,707     $ 2,451       36.5   $ 856       12.8

Simplify to Grow Program

     —         19         58    

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

     —         186         185    

Acquisition-related costs

     —         —           5    

Remeasurement of net monetary position

     —         —           2    
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 6,707     $ 2,656       39.6   $ 1,106       16.5

Operating income from divestiture - Argentina business

     (4     (1       (1  

Operating income from divestiture - KHC license

     (3     (2       (1  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 6,700     $ 2,653       39.6   $ 1,104       16.5
  

 

 

   

 

 

     

 

 

   
           Gross
Profit
          Operating
Income
       

$ Change - Reported (GAAP)

     $ 515       $ 427    

$ Change - Adjusted (Non-GAAP)

       210         186    

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

       211         187    

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

       135         143    

% Change - Reported (GAAP)

       21.0       49.9  

% Change - Adjusted (Non-GAAP)

       7.9       16.8  

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

       8.0       16.9  

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

       5.1       13.0  

 

17


Schedule 2.i

 

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Gross Profit / Operating Income

(in millions of U.S. dollars)

(Unaudited)

 

 

     For the Twelve Months Ended December 31, 2020  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 26,581     $ 10,446       39.3   $ 3,853       14.5

Simplify to Grow Program

     —         90         360    

Intangible asset impairment charges

     —         —           144    

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

     —         (16       (16  

Acquisition integration costs

     —         1         4    

Acquisition-related costs

     —         —           15    

Divestiture-related costs

     —         —           4    

Costs associated with JDE Peet’s transaction

     —         —           48    

Remeasurement of net monetary position

     —         —           9    

Operating income from divestiture - Argentina business

     —         —           (20  
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP)

   $ 26,581     $ 10,521       39.6   $ 4,401       16.6

Operating income from divestiture - Argentina business

     (23     (2       (2  

Operating income from divestiture - KHC license

     (9     —           —      
  

 

 

   

 

 

     

 

 

   

Adjusted (Non-GAAP) - As Recast

   $ 26,549     $ 10,519       39.6   $ 4,399       16.6
  

 

 

         

Currency

       178         59    
    

 

 

     

 

 

   

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

     $ 10,697       $ 4,458    
    

 

 

     

 

 

   
     For the Twelve Months Ended December 31, 2019  
     Net
Revenues
    Gross
Profit
    Gross
Profit
Margin
    Operating
Income
    Operating
Income
Margin
 

Reported (GAAP)

   $ 25,868     $ 10,337  </