Debt and Borrowing Arrangements

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt and Borrowing Arrangements

Note 9. Debt and Borrowing Arrangements

Short-Term Borrowings:

Our short-term borrowings and related weighted-average interest rates consisted of: 

	As of December 31,
	2021				2020
	Amount Outstanding		Weighted- Average Rate		Amount Outstanding		Weighted- Average Rate
	(in millions)				(in millions)
Commercial paper	$	192	0.2	%	$	—	—	%
Bank loans	24		8.6	%	29		4.8	%
Total short-term borrowings	$	216			$	29

Our uncommitted credit lines and committed credit lines available as of December 31, 2021 and December 31, 2020 include:

	As of December 31,
	2021				2020
	Facility Amount		Borrowed Amount		Facility Amount		Borrowed Amount
	(in millions)
Uncommitted credit facilities	$	1,367	$	24	$	1,487	$	29
Credit facility expiry(1):
February 24, 2021	—		—		1,500		—
February 23, 2022	2,500		—		—		—
February 27, 2024	4,500		—		4,500		—

(1) We maintain a multi-year senior unsecured revolving credit facility for general corporate purposes, including working capital needs, and to support our commercial paper program. The revolving credit agreement includes a covenant that we maintain a minimum shareholders' equity of at least $24.6 billion, excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans. At December 31, 2021, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $38.9 billion. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security.

Long-Term Debt:

Our long-term debt consisted of (interest rates are as of December 31, 2021):

	As of December 31,
	2021		2020
	(in millions)
U.S. dollar notes, 0.625% to 7.000% (weighted-average effective rate 2.692%),    due through 2050	$	9,280	$	11,917
Euro notes, 0.000% to 2.375% (weighted-average effective rate 0.712%),    due through 2041	8,134		5,842
Pound sterling notes, 3.875% to 4.500% (weighted-average effective rate 4.151%),    due through 2045	354		357
Swiss franc notes, 0.615% to 1.125% (weighted-average effective rate 0.948%),    due through 2025	811		1,175
Canadian dollar notes, 3.250% (effective rate 3.377%),    due through 2025	473		470
Finance leases and other	244		256
Total	19,296		20,017
Less current portion of long-term debt	(1,746)		(2,741)
Long-term debt	$	17,550	$	17,276

Deferred debt issuance costs of $71 million as of December 31, 2021 and $53 million as of December 31, 2020 are netted against the related debt in the table above. Deferred financing costs related to our revolving credit facility are classified in long-term other assets and were immaterial for all periods presented.

As of December 31, 2021, aggregate maturities of our debt and finance leases based on stated contractual maturities, excluding unamortized non-cash bond premiums, discounts, bank fees and mark-to-market adjustments of $(145) million and imputed interest on finance leases of $(14) million, were (in millions):

2022	2023	2024	2025	2026	Thereafter	Total
$1,751	$359	$1,525	$1,469	$1,287	$13,064	$19,455

Tenders Offers:

On October 16, 2020, we completed a tender offer in cash and redeemed $950 million of long term U.S. dollar-denominated notes for the following amounts (in millions):

Interest Rate	Maturity Date	Amount Repurchased
3.625%	May 2023	$359
4.000%	February 2024	203
3.625%	February 2026	249
4.125%	May 2028	27
6.500%	November 2031	5
7.000%	August 2037	1
6.875%	February 2038	24
6.875%	January 2039	10
6.500%	February 2040	1
4.625%	May 2048	71

We recorded a loss on debt extinguishment of approximately $154 million within interest and other expense, net primarily related to the amount we paid in excess of the carrying value of the debt and from recognizing unamortized discounts, deferred financing and unamortized forward starting swaps in earnings at the time of the debt extinguishment. The cash payment related to the debt extinguishment were classified as cash outflows from financing activities in the consolidated statement of cash flows.

Debt Redemptions:

During 2021 we completed an early redemption of euro and U.S. dollar denominated notes for the following amounts (in millions):

Interest Rate	Redemption Date	Maturity Date	Amount Redeemed	USD Equivalent
2.000%	September 2021	October 2021	$1,500	$1,500
3M LIBOR + 0.700%	September 2021	October 2022	$500	$500
3M LIBOR + 0.800%	September 2021	October 2024	$500	$500
1.000%	March 2021	March 2022	€500	$587
1.625%	March 2021	January 2023	€700	$821
2.125%	March 2021	April 2023	$500	$500
4.000%	March 2021	February 2024	$492	$492

We recorded an extinguishment loss of $137 million within interest and other expense, net related to $110 million paid in excess of carrying value of the debt and from recognizing unamortized discounts and deferred financing in earnings and $27 million foreign currency derivative loss related to the redemption at the time of the debt extinguishment. The cash payments related to the redemption were classified as cash outflows from financing activities in the consolidated statement of cash flows.

On December 4, 2020, we completed an early redemption of U.S. dollar denominated notes for the following amounts (in millions):

Interest Rate	Maturity Date	Amount Redeemed
3.625%	May 2023	$391

We recorded an extinguishment loss of $31 million within interest and other expense, net primarily related to the amount we paid in excess of carrying value of the debt and from recognizing unamortized discounts and deferred financing in earnings at the time of the debt extinguishment. The cash payments related to the redemption were classified as cash outflows from financing activities in the consolidated statement of cash flows.

Debt Repayments:

In 2021, we repaid the following notes or term loans (in millions):

Interest Rate	Maturity Date	Amount	USD Equivalent
0.625%	December 2021	Fr.300	$327
2.375%	January 2021	€679	827

In 2020, we repaid the following notes or term loans (in millions):

Interest Rate	Maturity Date	Amount	USD Equivalent
0.625%	October 2020	Fr.135	$147
Variable	September 2020(1)	$750	750
3.000%	May 2020	$750	750
0.050%	March 2020	Fr.225	234
5.375%	February 2020	$427	427

(1) We repaid the $750 million term loan early with proceeds from the issuance of notes.

Debt Issuances:

In 2021, we issued the following notes:

Issuance Date	Interest Rate	Maturity Date	Gross Proceeds (1)	Gross Proceeds USD Equivalent
September 2021(2)	0.750%	September 2024	$500	$500
September 2021(2)	1.250%	September 2026	$350	$350
September 2021(2)(3)	0.000%	September 2024	€ 300	$352
September 2021(2)(4)	0.250%	September 2029	€ 650	$769
September 2021(2)(4)	0.625%	September 2032	€ 650	$769
September 2021(2)(4)	1.250%	September 2041	€ 700	$828
March 2021	0.250%	March 2028	€ 750	$896
March 2021	0.750%	March 2033	€ 600	$717
March 2021	1.375%	March 2041	€ 650	$777

In 2020, we issued the following notes:

Issuance Date	Interest Rate	Maturity Date	Gross Proceeds (1)	Gross Proceeds USD Equivalent
October 2020	1.875%	October 2032	$625	$625
October 2020 & September 2020(5)	2.625%	September 2050	$1,125	$1,125
September 2020(2)	0.000%	September 2026	€500	$588
September 2020(2)	0.375%	September 2029	€750	$882
September 2020	1.500%	February 2031	$500	$500
July 2020	0.625%	July 2022	$1,000	$1,000
May 2020	1.500%	May 2025	$750	$750
May 2020 & April 2020(5)	2.750%	April 2030	$1,250	$1,250
April 2020	2.125%	April 2023	$500	$500

(1) Represents gross proceeds from the issuance of notes excluding debt issuance costs, discounts and premiums.

(2) Notes issued by Mondelez International Holdings Netherlands B.V. (“MIHN”), a wholly owned Dutch subsidiary of Mondelez International, Inc.

(3) Issuance of exchangeable bonds that were issued at 102% of their principal amount and are redeemable for cash or existing ordinary shares of JDE Peet's at our option (see Note 7, Equity Method Investments). Bondholders have an option to redeem bonds before maturity subject to exchange periods. We have identified our option to settle in either cash or existing ordinary shares of JDE Peet's as an embedded derivative that is bifurcated and accounted for separately from the bond. See Note 10, Financial Instruments.

(4) Issuance of green bonds where we have committed to allocate an amount equal to the €1.97 billion total net proceeds from the offering over time to eligible projects that align with our sustainability priorities in the areas of building a thriving ingredient supply chain and reducing our environmental impact.

(5) This represents a further issuance of a previously issued note and forms a single series note.

Fair Value of Our Debt:

The fair value of our short-term borrowings at December 31, 2021 and December 31, 2020 reflects current market interest rates and approximates the amounts we have recorded on our consolidated balance sheets. The fair value of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations.

	As of December 31,
	2021		2020
	(in millions)
Fair Value	$	20,249	$	21,568
Carrying Value	$	19,512	$	20,046

Interest and Other Expense, net:

Interest and other expense, net within our results of continuing operations consisted of:

	For the Years Ended December 31,
	2021		2020		2019
	(in millions)
Interest expense, debt	$	365	$	423	$	484
Loss on debt extinguishment and related expenses	137		185		—
Loss related to interest rate swaps	—		103		111
Other income, net	(55)		(103)		(139)
Interest and other expense, net	$	447	$	608	$	456

See Note 10, Financial Instruments, for information on the gain/loss related to U.S. dollar interest rate swaps no longer designated as accounting cash flow hedges and for information on amounts in other income related to our net investment hedge derivative contracts and the amounts excluded from hedge effectiveness of $75 million in 2021, $117 million in 2020 and $133 million in 2019.