8-K
Mondelez International, Inc. false 0001103982 0001103982 2023-04-11 2023-04-11 0001103982 us-gaap:CommonStockMember 2023-04-11 2023-04-11 0001103982 mdlz:OnePointSixTwentyFivePercentNotesDue2027Member 2023-04-11 2023-04-11 0001103982 mdlz:M0.250NotesDue20283Member 2023-04-11 2023-04-11 0001103982 mdlz:ZeroPointSevenFiftyPercentNotesDue2033Member 2023-04-11 2023-04-11 0001103982 mdlz:M2.375NotesDue20351Member 2023-04-11 2023-04-11 0001103982 mdlz:M4.500NotesDue20352Member 2023-04-11 2023-04-11 0001103982 mdlz:OnePointThreeSeventyFivePercentNotesDue2041Member 2023-04-11 2023-04-11 0001103982 mdlz:ThreePointEightSeventyFivePercentNotesDue2045Member 2023-04-11 2023-04-11

 

 

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): April 11, 2023

 

 

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 our March 2, 2023, sale of Keurig Dr Pepper Inc. (“KDP”) shares.

The sale of KDP shares has resulted in a change in accounting for our KDP investment, from equity method investment accounting to accounting for equity interests with readily determinable fair values (“marketable securities”). This change in accounting will affect our non-GAAP financial results beginning with our first quarter ended March 31, 2023, as we will reflect the historical equity method investment earnings associated with both the shares sold as well as our remaining ownership interest as a divestiture. This change 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

On March 2, 2023, we sold 30.0 million of our KDP shares, which reduced our ownership interest by approximately 2.1%, from 5.3% to 3.2% of the total outstanding shares. We received approximately $1.0 billion of proceeds and recorded a gain of approximately $500 million during the first quarter of 2023.

This reduction in ownership, to below 5.0% of the outstanding shares of KDP, resulted in a change in accounting for our KDP investment, from equity method investment accounting to accounting for our KDP shares as marketable securities. As a result, we will no longer record equity method investment earnings from our remaining KDP ownership interest. We will treat the historical equity method earnings from both the shares sold and the remaining 3.2% ownership interest as a divestiture under the definitions of our non-GAAP financial measures beginning with the first quarter ended March 31, 2023. As such, we have recast our non-GAAP financial results to remove the equity method investment net earnings results related to KDP from 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 the prior presentation.

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 four quarters of 2022 and 2021, and the years ended December 31, 2022, 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      2021      2022  
     FY      FY      FY      Q1      Q2      Q3      Q4      Q1      Q2      Q3      Q4  

Reported (GAAP)

                                

Equity method investment net earnings

     421        393        385        78        107        105        103        117        98        85        85  

Provision for income taxes

     1,224        1,190        865        212        398        342        238        210        201        184        270  

Net earnings attributable to Mondelēz International

     3,555        4,300        2,717        961        1,078        1,258        1,003        855        747        532        583  

Diluted EPS attributable to Mondelēz International

   $ 2.47      $ 3.04      $ 1.96      $ 0.68      $ 0.76      $ 0.89      $ 0.71      $ 0.61      $ 0.54      $ 0.39      $ 0.42  

Adjusted (Non-GAAP) - As Recast

                                

Equity method investment net earnings

     264        287        244        82        72        61        72        74        57        58        55  

Provision for income taxes

     869        962        1,030        244        227        272        219        312        209        211        298  

Net earnings attributable to Mondelēz International

     3,581        3,927        3,997        1,089        904        969        965        1,132        898        993        974  

Diluted EPS attributable to Mondelēz International

   $ 2.49      $ 2.78      $ 2.89      $ 0.77      $ 0.64      $ 0.69      $ 0.69      $ 0.81      $ 0.65      $ 0.72      $ 0.71  

Financial Schedules

Exhibit 99.1 to this Form 8-K contains financial schedules that provide the reconciliations for our recast non-GAAP financial results for Adjusted EPS, due to the change in accounting of our equity method investment in KDP, for the four quarters of 2022 and 2021, and the years ended December 31, 2022, 2021 and 2020.

 

   

Schedule 1 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 2 provides reconciliations between reported Diluted EPS attributable to Mondelēz International (GAAP) and the recast Adjusted EPS (non-GAAP) for comparative periods.

 

2


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: April 11, 2023

 

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 Earnings and Tax Rate

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

(Unaudited)

 

    For the Twelve Months Ended December 31, 2022  
    Operating
Income
    Benefit
plan non-
service
expense /
(income)
    Interest
and other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Loss on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling
interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable to
Mondelēz
International
 

Reported (GAAP)

  $ 3,534     $ (117   $ 423     $ 3,228     $ 865       26.8   $ 22     $ (385   $ 9     $ 2,717     $ 1.96  

Simplify to Grow Program

    122       (1     —         123       26         —         —         —         97       0.07  

Intangible asset impairment charges

    101       —         —         101       25         —         —         —         76       0.05  

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

    326       —         8       318       56         —         —         —         262       0.19  

Acquisition integration costs and contingent consideration adjustments

    136       (8     (4     148       72         —         —         —         76       0.05  

Inventory step-up

    25       —         —         25       7         —         —         —         18       0.01  

Acquisition-related costs

    330       —         76       254       (11       —         —         —         265       0.19  

Divestiture-related costs

    18       —         —         18       9         —         —         —         9       0.01  

Net earnings from divestitures

    (4     —         —         (4     (1       —         14       —         (17     (0.01

2017 malware incident net recoveries

    (37     —         —         (37     (10       —         —         —         (27     (0.02

European Commission legal matter

    318       —         —         318       —           —         —         —         318       0.23  

Incremental costs due to war in Ukraine

    121       —         —         121       (4       —         —         —         125       0.09  

Remeasurement of net monetary position

    40       —         —         40       —           —         —         —         40       0.03  

Impact from pension participation changes

    (1     —         (11     10       3         —         —         —         7       0.01  

Loss on debt extinguishment and related expenses

    —         —         (129     129       31         —         —         —         98       0.07  

Initial impacts from enacted tax law changes

    —         —         —         —         (17       —         —         —         17       0.01  

Loss on equity method investment transactions

    —         —         —         —         (2       (22     —         —         24       0.02  

Equity method investee items

    —         —         —         —         5         —         8       —         (13     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 5,029     $ (126   $ 363     $ 4,792     $ 1,054       22.0   $ —       $ (363   $ 9     $ 4,092     $ 2.95  

Net earnings from divestiture - KDP

    —         —         —         —         (19       —         100       —         (81     (0.05

Change in equity method investee items

    —         —         —         —         (5       —         19       —         (14     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 5,029     $ (126   $ 363     $ 4,792     $ 1,030       21.5   $ —       $ (244   $ 9     $ 3,997     $ 2.89  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      326       0.23  
                   

 

 

   

 

 

 

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

                    $ 4,323     $ 3.12  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,385  

 

    For the Twelve Months Ended December 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
    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)

  $ 4,653     $ (163   $ 447     $ 4,369     $ 1,190       27.2   $ (742   $ (393   $ 14     $ 4,300     $ 3.04  

Simplify to Grow Program

    319       (2     —         321       83         —         —         —         238       0.17  

Intangible asset impairment charges

    32       —         —         32       8         —         —         —         24       0.02  

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

    (279     —         (4     (275     (44       2       —         —         (233     (0.17

Acquisition integration costs and contingent consideration adjustments

    (40     —         —         (40     (12       —         —         —         (28     (0.02

Acquisition-related costs

    25       —         —         25       4         —         —         —         21       0.01  

Net gain on acquisition and divestitures

    (8     —         —         (8     (3       —         —         —         (5     —    

Divestiture-related costs

    22       —         —         22       8         —         —         —         14       0.01  

Net earnings from divestitures

    (15     —         —         (15     (12       —         53       —         (56     (0.03

Remeasurement of net monetary position

    13       —         —         13       —           —         —         —         13       0.01  

Impact from pension participation changes

    48       17       (11     42       8         —         —         —         34       0.02  

Loss on debt extinguishment and related expenses

    —         —         (137     137       34         —         —         —         103       0.07  

Impact from resolution of tax matters

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

Initial impacts from enacted tax law changes

    —         —         —         —         (100       —         —         —         100       0.07  

Gain on equity method investment transactions

    —         —         —         —         (184       740       —         —         (556     (0.39

Equity method investee items

    —         —         —         —         4         —         (61     —         57       0.04  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 4,765     $ (148   $ 297     $ 4,616     $ 983       21.3   $ —       $ (401   $ 14     $ 4,020     $ 2.85  

Net earnings from divestiture - KDP

    —         —         —         —         (17       —         98       —         (81     (0.06

Change in equity method investee items

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,765     $ (148   $ 297     $ 4,616     $ 962       20.8   $ —       $ (287   $ 14     $ 3,927     $ 2.78  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,413  

 

(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.

 

1


Schedule 1.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 December 31, 2022  
    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)

  $ 834     $ (24   $ 86     $ 772     $ 270       35.0   $ 3     $ (85   $ 1     $ 583     $ 0.42  

Simplify to Grow Program

    53       —         —         53       10         —         —         —         43       0.03  

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

    58       —         (43     101       15         3       —         —         83       0.06  

Acquisition integration costs and contingent consideration adjustments

    40       (8     —         48       15         —         —         —         33       0.03  

Inventory step-up

    5       —         —         5       2         —         —         —         3       —    

Acquisition-related costs

    12       —         76       (64     (14       —         —         —         (50     (0.04

Divestiture-related costs

    6       —         —         6       6         —         —         —         —         —    

2017 malware incident net recoveries

    (37     —         —         (37     (10       —         —         —         (27     (0.02

European Commission legal matter

    318       —         —         318       —           —         —         —         318       0.23  

Remeasurement of net monetary position

    14       —         —         14       —           —         —         —         14       0.01  

Impact from pension participation changes

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

Initial impacts from enacted tax law changes

    —         —         —         —         5         —         —         —         (5     —    

Loss on equity method investment transactions

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

Equity method investee items

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,302     $ (32   $ 116     $ 1,218     $ 305       25.0   $ —       $ (90   $ 1     $ 1,002     $ 0.73  

Net earnings from divestiture - KDP

    —         —         —         —         (1       —         11       —         (10     (0.01

Change in equity method investee items

    —         —         —         —         (6       —         24       —         (18     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,302     $ (32   $ 116     $ 1,218     $ 298       24.5   $ —       $ (55   $ 1     $ 974     $ 0.71  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      72       0.05  
                   

 

 

   

 

 

 

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

                    $ 1,046     $ 0.76  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,375  

 

    For the Three Months Ended December 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)

  $ 1,204     $ (28   $ 89     $ 1,143     $ 238       20.8   $ 3     $ (103   $ 2     $ 1,003     $ 0.71  

Simplify to Grow Program

    (62     (1     —         (61     (15       —         —         —         (46     (0.03

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

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

Acquisition integration costs and contingent consideration adjustments

    14       —         —         14       2         —         —         —         12       0.01  

Acquisition-related costs

    1       —         —         1       —           —         —         —         1       —    

Net gain on acquisition and divestitures

    1       —         —         1       (1       —         —         —         2       —    

Divestiture-related costs

    22       —         —         22       8         —         —         —         14       0.01  

Net earnings from divestitures

    (4     —         —         (4     (1       —         7       —         (10     —    

Remeasurement of net monetary position

    3       —         —         3       —           —         —         —         3       —    

Impact from pension participation changes

    1       —         (3     4       —           —         —         —         4       —    

Initial impacts from enacted tax law changes

    —         —         —         —         (5       —         —         —         5       —    

Loss on equity method investment transactions

    —         —         —         —         —           (3     —         —         3       —    

Equity method investee items

    —         —         —         —         1         —         (10     —         9       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,171     $ (29   $ 86     $ 1,114     $ 225       20.2   $ —       $ (106   $ 2     $ 993     $ 0.71  

Net earnings from divestiture - KDP

    —         —         —         —         (5       —         30       —         (25     (0.02

Change in equity method investee items

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,171     $ (29   $ 86     $ 1,114     $ 219       19.7   $ —       $ (72   $ 2     $ 965     $ 0.69  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,405  

 

(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.

 

2


Schedule 1.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 September 30, 2022  
    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)

  $ 679     $ (30   $ 71     $ 638     $ 184       28.8   $ 6     $ (85   $ 1     $ 532     $ 0.39  

Simplify to Grow Program

    16       —         —         16       3         —         —         —         13       0.01  

Intangible asset impairment charges

    23       —         —         23       6         —         —         —         17       0.01  

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

    186       —         69       117       22         (3     —         —         98       0.07  

Acquisition integration costs and contingent consideration adjustments

    27       —         (1     28       6         —         —         —         22       0.02  

Inventory step-up

    20       —         —         20       5         —         —         —         15       0.01  

Acquisition-related costs

    292       —         —         292       —           —         —         —         292       0.21  

Divestiture-related costs

    6       —         —         6       2         —         —         —         4       —    

Net earnings from divestitures

    —         —         —         —         (1       —         —         —         1       —    

Incremental costs due to war in Ukraine

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

Remeasurement of net monetary position

    11       —         —         11       —           —         —         —         11       0.01  

Impact from pension participation changes

    —         —         (3     3       1         —         —         —         2       —    

Initial impacts from enacted tax law changes

    —         —         —         —         (13       —         —         —         13       0.01  

Loss on equity method investment transactions

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

Equity method investee items

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,253     $ (30   $ 136     $ 1,147     $ 216       18.8   $ —       $ (86   $ 1     $ 1,016     $ 0.74  

Net earnings from divestiture - KDP

    —         —         —         —         (1       —         13       —         (12     (0.01

Change in equity method investee items

    —         —         —         —         (4       —         15       —         (11     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,253     $ (30   $ 136     $ 1,147     $ 211       18.4   $ —       $ (58   $ 1     $ 993     $ 0.72  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      97       0.07  
                   

 

 

   

 

 

 

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

                    $ 1,090     $ 0.79  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,379  

 

    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

Net earnings from divestitures

    (6     —         —         (6     (4       —         13       —         (15     (0.01

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

    —         —         —         —         —           —         4       —         (4     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,230     $ (34   $ 80     $ 1,184     $ 276       23.3   $ —       $ (88   $ 4     $ 992     $ 0.70  

Net earnings from divestiture - KDP

    —         —         —         —         (4       —         25       —         (21     (0.01

Change in equity method investee items

    —         —         —         —         —           —         2       —         (2     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,230     $ (34   $ 80     $ 1,184     $ 272       23.0   $ —       $ (61   $ 4     $ 969     $ 0.69  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,408  

 

(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.

 

3


Schedule 1.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 June 30, 2022  
    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)

  $ 927     $ (30   $ 98     $ 859     $ 201       23.4   $ 8     $ (98   $ 1     $ 747     $ 0.54  

Simplify to Grow Program

    22       (1     —         23       6         —         —         —         17       0.01  

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

    109       —         (19     128       14         —         —         —         114       0.08  

Acquisition integration costs and contingent consideration adjustments

    37       —         —         37       1         —         —         —         36       0.03  

Acquisition-related costs

    5       —         —         5       2         —         —         —         3       —    

Divestiture-related costs

    5       —         —         5       1         —         —         —         4       —    

Net earnings from divestitures

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

Incremental costs due to war in Ukraine

    (15     —         —         (15     —           —         —         —         (15     (0.01

Remeasurement of net monetary position

    10       —         —         10       —           —         —         —         10       0.01  

Impact from pension participation changes

    —         —         (2     2       —           —         —         —         2       —    

Initial impacts from enacted tax law changes

    —         —         —         —         (9       —         —         —         9       0.01  

Loss on equity method investment transactions

    —         —         —         —         —           (8     —         —         8       0.01  

Equity method investee items

    —         —         —         —         (2       —         11       —         (9     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,097     $ (31   $ 77     $ 1,051     $ 214       20.4   $ —       $ (80   $ 1     $ 916     $ 0.66  

Net earnings from divestiture - KDP

    —         —         —         —         (7       —         30       —         (23     (0.02

Change in equity method investee items

    —         —         —         —         2         —         (7     —         5       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,097     $ (31   $ 77     $ 1,051     $ 209       19.9   $ —       $ (57   $ 1     $ 898     $ 0.65  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      73       0.05  
                   

 

 

   

 

 

 

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

                    $ 971     $ 0.70  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,389  

 

    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

    (4     —         —         (4     (4       —         17       —         (17     (0.01

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

    —         —         —         —         1         —         (5     —         4       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,073     $ (41   $ 54     $ 1,060     $ 232       21.9   $ —       $ (95   $ 1     $ 922     $ 0.65  

Net earnings from divestiture - KDP

    —         —         —         —         (4       —         19       —         (15     (0.01

Change in equity method investee items

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,073     $ (41   $ 54     $ 1,060     $ 227       21.4   $ —       $ (72   $ 1     $ 904     $ 0.64  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,416  

 

(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.

 

4


Schedule 1.e

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, 2022  
    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)

  $ 1,094     $ (33   $ 168     $ 959     $ 210       21.9   $ 5     $ (117   $ 6     $ 855     $ 0.61  

Simplify to Grow Program

    31       —         —         31       7         —         —         —         24       0.02  

Intangible asset impairment charges

    78       —         —         78       19         —         —         —         59       0.04  

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

    (27     —         1       (28     5         —         —         —         (33     (0.02

Acquisition integration costs and contingent consideration adjustments

    32       —         (3     35       50         —         —         —         (15     (0.01

Acquisition-related costs

    21       —         —         21       1         —         —         —         20       0.02  

Divestiture-related costs

    1       —         —         1       —           —         —         —         1       —    

Net earnings from divestitures

    (1     —         —         (1     —           —         7       —         (8     (0.01

Incremental costs due to war in Ukraine

    143       —         —         143       (2       —         —         —         145       0.11  

Remeasurement of net monetary position

    5       —         —         5       —           —         —         —         5       —    

Impact from pension participation changes

    —         —         (3     3       1         —         —         —         2       —    

Loss on debt extinguishment and related expenses

    —         —         (129     129       31         —         —         —         98       0.07  

Loss on equity method investment transactions

    —         —         —         —         —           (5     —         —         5       —    

Equity method investee items

    —         —         —         —         (3       —         3       —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,377     $ (33   $ 34     $ 1,376     $ 319       23.2   $ —       $ (107   $ 6     $ 1,158     $ 0.83  

Net earnings from divestiture - KDP

    —         —         —         —         (10       —         46       —         (36     (0.02

Change in equity method investee items

    —         —         —         —         3         —         (13     —         10       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,377     $ (33   $ 34     $ 1,376     $ 312       22.7   $ —       $ (74   $ 6     $ 1,132     $ 0.81  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      84       0.06  
                   

 

 

   

 

 

 

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

                    $ 1,216     $ 0.87  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,398  

 

    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  

Net gain on acquisition and divestitures

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

Net earnings from divestitures

    (1     —         —         (1     (3       —         16       —         (14     (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

    —         —         —         —         2         —         (50     —         48       0.03  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,291     $ (44   $ 77     $ 1,258     $ 250       19.9   $ —       $ (112   $ 7     $ 1,113     $ 0.78  

Net earnings from divestiture - KDP

    —         —         —         —         (4       —         24       —         (20     (0.01

Change in equity method investee items

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,291     $ (44   $ 77     $ 1,258     $ 244       19.4   $ —       $ (82   $ 7     $ 1,089     $ 0.77  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,422  

 

(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.

 

5


Schedule 1.f

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Earnings and Tax Rate

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

(Unaudited)

 

    For the Twelve Months Ended December 31, 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)

  $ 4,653     $ (163   $ 447     $ 4,369     $ 1,190       27.2   $ (742   $ (393   $ 14     $ 4,300     $ 3.04  

Simplify to Grow Program

    319       (2     —         321       83         —         —         —         238       0.17  

Intangible asset impairment charges

    32       —         —         32       8         —         —         —         24       0.02  

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

    (279     —         (4     (275     (44       2       —         —         (233     (0.17

Acquisition integration costs and contingent consideration adjustments

    (40     —         —         (40     (12       —         —         —         (28     (0.02

Acquisition-related costs

    25       —         —         25       4         —         —         —         21       0.01  

Net gain on acquisition and divestitures

    (8     —         —         (8     (3       —         —         —         (5     —    

Divestiture-related costs

    22       —         —         22       8         —         —         —         14       0.01  

Net earnings from divestitures

    (15     —         —         (15     (12       —         53       —         (56     (0.03

Remeasurement of net monetary position

    13       —         —         13       —           —         —         —         13       0.01  

Impact from pension participation changes

    48       17       (11     42       8         —         —         —         34       0.02  

Loss on debt extinguishment and related expenses

    —         —         (137     137       34         —         —         —         103       0.07  

Impact from resolution of tax matters

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

Initial impacts from enacted tax law changes

    —         —         —         —         (100       —         —         —         100       0.07  

Gain on equity method investment transactions

    —         —         —         —         (184       740       —         —         (556     (0.39

Equity method investee items

    —         —         —         —         4         —         (61     —         57       0.04  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 4,765     $ (148   $ 297     $ 4,616     $ 983       21.3   $ —       $ (401   $ 14     $ 4,020     $ 2.85  

Net earnings from divestiture - KDP

    —         —         —         —         (17       —         98       —         (81     (0.06

Change in equity method investee items

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,765     $ (148   $ 297     $ 4,616     $ 962       20.8   $ —       $ (287   $ 14     $ 3,927     $ 2.78  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      (118     (0.08
                   

 

 

   

 

 

 

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

                    $ 3,809     $ 2.70  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,413  

 

    For the Twelve Months Ended December 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)

  $ 3,853     $ (138   $ 608     $ 3,383     $ 1,224       36.2   $ (989   $ (421   $ 14     $ 3,555     $ 2.47  

Simplify to Grow Program

    360       (3     —         363       81         —         —         —         282       0.20  

Intangible asset impairment charges

    144       —         —         144       33         —         —         —         111       0.08  

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

    (16     —         3       (19     (8       —         —         —         (11     (0.01

Acquisition integration costs

    4       —         —         4       2         —         —         —         2       —    

Acquisition-related costs

    15       —         —         15       —           —         —         —         15       0.01  

Divestiture-related costs

    4       —         —         4       —           —         —         —         4       —    

Net earnings from divestitures

    (2     —         —         (2     (26       —         135       —         (111     (0.08

Costs associated with JDE Peet’s transaction

    48       —         —         48       (250       —         —         —         298       0.20  

Remeasurement of net monetary position

    9       —         —         9       —           —         —         —         9       0.01  

Impact from pension participation changes

    —         —         (11     11       2         —         —         —         9       0.01  

Loss related to interest rate swaps

    —         —         (103     103       24         —         —         —         79       0.05  

Loss on debt extinguishment and related expenses

    —         —         (185     185       46         —         —         —         139       0.10  

Impact from resolution of tax matters

    (20     —         28       (48     (16       —         —         —         (32     (0.02

Initial impacts from enacted tax law changes

    —         —         —         —         (36       —         —         —         36       0.02  

Gain on equity method investment transactions

    —         —         —         —         (202       989       —         —         (787     (0.55

Equity method investee items

    —         —         —         —         4         —         (72     —         68       0.05  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 4,399     $ (141   $ 340     $ 4,200     $ 878       20.9   $ —       $ (358   $ 14     $ 3,666     $ 2.54  

Net earnings from divestiture - KDP

    —         —         —         —         (5       —         75       —         (70     (0.04

Change in equity method investee items

    —         —         —         —         (4       —         19       —         (15     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,399     $ (141   $ 340     $ 4,200     $ 869       20.7   $ —       $ (264   $ 14     $ 3,581     $ 2.49  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,441  

 

(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.

 

6


Schedule 1.g

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Net Earnings and Tax Rate

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

(Unaudited)

 

    For the Three Months Ended December 31, 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)

  $ 1,204     $ (28   $ 89     $ 1,143     $ 238       20.8   $ 3     $ (103   $ 2     $ 1,003     $ 0.71  

Simplify to Grow Program

    (62     (1     —         (61     (15       —         —         —         (46     (0.03

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

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

Acquisition integration costs and contingent consideration adjustments

    14       —         —         14       2         —         —         —         12       0.01  

Acquisition-related costs

    1       —         —         1       —           —         —         —         1       —    

Net gain on acquisition and divestitures

    1       —         —         1       (1       —         —         —         2       —    

Divestiture-related costs

    22       —         —         22       8         —         —         —         14       0.01  

Net earnings from divestitures

    (4     —         —         (4     (1       —         7       —         (10     —    

Remeasurement of net monetary position

    3       —         —         3       —           —         —         —         3       —    

Impact from pension participation changes

    1       —         (3     4       —           —         —         —         4       —    

Initial impacts from enacted tax law changes

    —         —         —         —         (5       —         —         —         5       —    

Gain on equity method investment transactions

    —         —         —         —         —           (3     —         —         3       —    

Equity method investee items

    —         —         —         —         1         —         (10     —         9       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,171     $ (29   $ 86     $ 1,114     $ 225       20.2   $ —       $ (106   $ 2     $ 993     $ 0.71  

Net earnings from divestiture - KDP

    —         —         —         —         (5       —         30       —         (25     (0.02

Change in equity method investee items

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,171     $ (29   $ 86     $ 1,114     $ 219       19.7   $ —       $ (72   $ 2     $ 965     $ 0.69  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      13       0.01  
                   

 

 

   

 

 

 

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

                    $ 978     $ 0.70  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,405  

 

    For the Three Months Ended December 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)

  $ 1,149     $ (36   $ 244     $ 941     $ 344       36.6   $ (452   $ (110   $ 3     $ 1,156     $ 0.80  

Simplify to Grow Program

    112       1       —         111       26         —         —         —         85       0.06  

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

    (58     —         (1     (57     (13       —         —         —         (44     (0.03

Acquisition integration costs

    2       —         —         2       2         —         —         —         —         —    

Net earnings from divestitures

    1       —         —         1       (4       —         31       —         (26     (0.01

Costs associated with JDE Peet’s transaction

    —         —         —         —         11         —         —         —         (11     (0.01

Remeasurement of net monetary position

    2       —         —         2       —           —         —         —         2       —    

Impact from pension participation changes

    —         —         (2     2       —           —         —         —         2       —    

Loss on debt extinguishment and related expenses

    —         —         (185     185       46         —         —         —         139       0.10  

Impact from resolution of tax matters

    (20     —         28       (48     (16       —         —         —         (32     (0.02

Initial impacts from enacted tax law changes

    —         —         —         —         (6       —         —         —         6       —    

Gain on equity method investment transactions

    —         —         —         —         (108       452       —         —         (344     (0.24

Equity method investee items

    —         —         —         —         —           —         (13     —         13       0.01  

Rounding

    1       —         —         1       —           —         —         —         1       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,189     $ (35   $ 84     $ 1,140     $ 282       24.7   $ —       $ (92   $ 3     $ 947     $ 0.66  

Net earnings from divestiture - KDP

    —         —         —         —         (2       —         25       —         (23     (0.02

Change in equity method investee items

    —         —         —         —         —           —         2       —         (2     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,189     $ (35   $ 84     $ 1,140     $ 280       24.6   $ —       $ (65   $ 3     $ 922     $ 0.64  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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.

 

7


Schedule 1.h

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

Net earnings from divestitures

    (6     —         —         (6     (4       —         13       —         (15     (0.01

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

    —         —         —         —         —           —         4       —         (4     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,230     $ (34   $ 80     $ 1,184     $ 276       23.3   $ —       $ (88   $ 4     $ 992     $ 0.70  

Net earnings from divestiture - KDP

    —         —         —         —         (4       —         25       —         (21     (0.01

Change in equity method investee items

    —         —         —         —         —           —         2       —         (2     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,230     $ (34   $ 80     $ 1,184     $ 272       23.0   $ —       $ (61   $ 4     $ 969     $ 0.69  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      (23     (0.02
                   

 

 

   

 

 

 

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

                    $ 946     $ 0.67  
                   

 

 

   

 

 

 

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

    (2     —         —         (2     (11       —         31       —         (22     (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

    —         —         —         —         —           —         (29     —         29       0.02  

Rounding

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,163     $ (38   $ 89     $ 1,112     $ 278       25.0   $ —       $ (82   $ 3     $ 913     $ 0.63  

Net earnings from divestiture - KDP

    —         —         —         —         (2       —         18       —         (16     (0.01

Change in equity method investee items

    —         —         —         —         —           —         3       —         (3     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,163     $ (38   $ 89     $ 1,112     $ 276       24.8   $ —       $ (61   $ 3     $ 894     $ 0.62  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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.

 

8


Schedule 1.i

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

    (4     —         —         (4     (4       —         17       —         (17     (0.01

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

    —         —         —         —         1         —         (5     —         4       —