0001193125-21-214119.txt : 20210713 0001193125-21-214119.hdr.sgml : 20210713 20210713161422 ACCESSION NUMBER: 0001193125-21-214119 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20210713 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210713 DATE AS OF CHANGE: 20210713 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Mondelez International, Inc. CENTRAL INDEX KEY: 0001103982 STANDARD INDUSTRIAL CLASSIFICATION: FOOD & KINDRED PRODUCTS [2000] IRS NUMBER: 522284372 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16483 FILM NUMBER: 211088035 BUSINESS ADDRESS: STREET 1: 905 WEST FULTON MARKET STREET 2: SUITE 200 CITY: CHICAGO STATE: IL ZIP: 60607 BUSINESS PHONE: 847-943-4000 MAIL ADDRESS: STREET 1: 905 WEST FULTON MARKET STREET 2: SUITE 200 CITY: CHICAGO STATE: IL ZIP: 60607 FORMER COMPANY: FORMER CONFORMED NAME: KRAFT FOODS INC DATE OF NAME CHANGE: 20000121 8-K 1 d331556d8k.htm 8-K 8-K
Mondelez International, Inc. false 0001103982 0001103982 2021-07-13 2021-07-13 0001103982 us-gaap:CommonClassAMember 2021-07-13 2021-07-13 0001103982 mdlz:OnePointSixTwentyFivePercentNotesDue2027Member 2021-07-13 2021-07-13 0001103982 mdlz:ZeroPointTwoFiftyPercentNotesDue2028Member 2021-07-13 2021-07-13 0001103982 mdlz:OnePointSevenFiftyPercentNotesDue2033Member 2021-07-13 2021-07-13 0001103982 mdlz:M2.375NotesDue20352Member 2021-07-13 2021-07-13 0001103982 mdlz:M4.500NotesDue20351Member 2021-07-13 2021-07-13 0001103982 mdlz:OnePointThreeSeventyFivePercentNotesDue2041Member 2021-07-13 2021-07-13 0001103982 mdlz:ThreePointEightSeventyFivePercentNotesDue2045Member 2021-07-13 2021-07-13

 

 

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): July 13, 2021

 

 

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 decision to include the initial impacts from all enacted tax law changes, rather than only material tax law changes, in the definition of the items excluded from our non-GAAP financial measures. We added this exclusion to our non-GAAP financial measures as the initial impacts from all enacted tax law changes, as described further below, do not reflect our ongoing tax obligations under these changes. This change has resulted 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

Recently enactments of tax law changes have become more frequent, especially as governments address the fiscal effects related to COVID-19. These enactments can result in significant impacts on financial results. For example, tax rate increases were enacted in the Netherlands in December 2020 and the United Kingdom in June 2021.

In the past, we adjusted our non-GAAP financial measures to exclude the initial tax impacts caused by material tax reforms, specifically the 2017 U.S. tax reform and the 2019 Swiss tax reform. To standardize our treatment, we are modifying our definition of our non-GAAP financial measures to exclude initial impacts from all enacted tax law changes. Initial impacts include items such as the remeasurement of deferred tax balances and the transition tax from the 2017 U.S. tax reform. This change will also be reflected in the definition of our proportionate share of our equity method investees’ significant operating and non-operating items that we exclude from our non-GAAP financial measures.

Therefore, we will remove these initial impacts from all enacted tax law changes not previously excluded from our non-GAAP financial results for Adjusted EPS for all historical periods presented. Our U.S. GAAP results, which include the historical initial impacts from these enacted tax law changes, will not change from what was previously reported.

Recast Amounts Reflecting Changes in Historical Non-GAAP Results

The change to our non-GAAP financial results for Adjusted EPS described above does not affect our non-GAAP financial results for Organic Net Revenue, Adjusted Gross Profit or Adjusted Operating Income for any period. This supplemental disclosure does not amend any disclosure contained in any of our prior SEC filings. See the chart below and Exhibit 99.1 for the unaudited GAAP and recast non-GAAP financial information for the first quarter of 2021, all quarters of 2020 and 2019 and years ended December 31, 2020, and 2019.

Mondelēz International, Inc. and Subsidiaries

Recast Amounts Reflecting Impact from Enacted Tax Law Changes

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

(Unaudited)

 

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

Reported (GAAP)

                               

Equity method investment net earnings

   $ 501      $ 421      $ 166      $ 109      $ 114     $ 112      $ 121      $ 106      $ 84      $ 110      $ 78  

Provision for income taxes

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

Net earnings attributable to Mondelēz International

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

Diluted earnings per share attributable to Mondelēz International

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

Adjusted (Non-GAAP) - As Recast

                               

Equity method investment net earnings

   $ 401      $ 438      $ 108      $ 95      $ 98     $ 100      $ 109      $ 113      $ 104      $ 112      $ 137  

Provision for income taxes

     850        892        199        206        166       279        198        126        285        283        252  

Net earnings attributable to Mondelēz International

     3,528        3,734        930        812        917       869        958        881        930        965        1,137  

Diluted earnings per share attributable to Mondelēz International

   $ 2.42      $ 2.59      $ 0.64      $ 0.56      $ 0.63     $ 0.60      $ 0.66      $ 0.61      $ 0.64      $ 0.67      $ 0.80  

 

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 Adjusted EPS, due to the change in definition to exclude the initial impacts from all enacted tax law changes, for the first quarter of 2021, all quarters of 2020 and 2019 and years ended December 31, 2020 and 2019.

 

 

Schedule 1 provides reconciliations of the differences between the recast Adjusted (non-GAAP) financial measures and their most directly comparable reported (GAAP) financial measures. Equity method investment net earnings and Provision for income taxes are components used to calculate net earnings and diluted earnings per share attributable to Mondelēz International.

 

 

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

Non-GAAP Financial Measures

We use non-GAAP financial information and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results, and provide additional insight and transparency on how we evaluate our business. For additional information regarding our non-GAAP financial measures, see Exhibit 99.2.

 

Item 9.01.

Financial Statements and Exhibits.

 

(d)

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

 

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

 

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: July 13, 2021

 

4

EX-99.1 2 d331556dex991.htm EX-99.1 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 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

    1       —         —         1       —           —         —         —         1       —    

Acquisition-related costs

    7       —         —         7       1         —         —         —         6       0.01  

Gain on acquisition

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

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  

Loss on equity method investment transactions

    —         —         —         —         —           (7     —         —         7       —    

Equity method investee items

    —         —         —         —         1         —         (16     —         15       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,292     $ (44   $ 77     $ 1,259     $ 256       20.3   $ —       $ (94   $ 7     $ 1,090     $ 0.77  

Impact from enacted tax law changes

    —         —         —         —         (4       —         —         —         4       —    

Change in equity method investee items

    —         —         —         —         —           —         (43     —         43       0.03  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,292     $ (44   $ 77     $ 1,259     $ 252       20.0   $ —       $ (137   $ 7     $ 1,137     $ 0.80  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      (49     (0.03
                   

 

 

   

 

 

 

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

                    $ 1,088     $ 0.77  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,422  

 

    For the Three Months Ended March 31, 2020  
    Operating
Income
    Benefit
plan non
-service
expense /

(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Gain on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling

interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 856     $ (33   $ 190     $ 699     $ 148       21.2   $ (71   $ (121   $ 7     $ 736     $ 0.51  

Simplify to Grow Program

    58       —         —         58       13         —         —         —         45       0.03  

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

    185       —         1       184       32         —         —         —         152       0.11  

Acquisition-related costs

    5       —         —         5       1         —         —         —         4       —    

Net earnings from divestitures

    —         —         —         —         (5       —         28       —         (23     (0.01

Remeasurement of net monetary position

    2       —         —         2       —           —         —         —         2       —    

Impact from pension participation changes

    —         —         (3     3       1         —         —         —         2       —    

Loss related to interest rate swaps

    —         —         (103     103       24         —         —         —         79       0.05  

Gain on equity method investment transactions

    —         —         —         —         (17       71       —         —         (54     (0.04

Equity method investee items

    —         —         —         —         1         —         (6     —         5       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,106     $ (33   $ 85     $ 1,054     $ 198       18.8   $ —       $ (99   $ 7     $ 948     $ 0.66  

Impact from enacted tax law changes

    —         —         —         —         —           —         —         —         —         —    

Change in equity method investee items

    —         —         —         —         —           —         (10     —         10       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,106     $ (33   $ 85     $ 1,054     $ 198       18.8   $ —       $ (109   $ 7     $ 958     $ 0.66  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,445  

 

(1) 

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


Schedule 1.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 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

    —         —         —         —         (15       —         74       —         (59     (0.04

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  

Impact from resolution of tax matters

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

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  

Gain on equity method investment transactions

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

Equity method investee items

    —         —         —         —         7         —         (81     —         74       0.05  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 4,401     $ (141   $ 340     $ 4,202     $ 928       22.1   $ —       $ (428   $ 14     $ 3,688     $ 2.56  

Impact from enacted tax law changes

    —         —         —         —         (36       —         —         —         36       0.02  

Change in equity method investee items

    —         —         —         —         —           —         (10     —         10       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,401     $ (141   $ 340     $ 4,202     $ 892       21.2   $ —       $ (438   $ 14     $ 3,734     $ 2.59  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      50       0.04  
                   

 

 

   

 

 

 

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

                    $ 3,784     $ 2.63  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,441  

 

    For the Twelve Months Ended December 31, 2019  
    Operating
Income
    Benefit
plan non
-service
expense /

(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Loss on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling

interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 3,843     $ (60   $ 456     $ 3,447     $ 2       0.1   $ 2     $ (501   $ 15     $ 3,929     $ 2.69  

Simplify to Grow Program

    442       (6     —         448       103         —         —         —         345       0.24  

Intangible asset impairment charges

    57       —         —         57       14         —         —         —         43       0.03  

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

    (91     —         (1     (90     (19       —         —         —         (71     (0.05

Acquisition-related costs

    3       —         —         3       1         —         —         —         2       —    

Divestiture-related costs

    6       —         —         6       —           —         —         —         6       —    

Net earnings from divestitures

    (9     —         —         (9     (15       —         95       —         (89     (0.06

Gain on divestitures

    (44     —         —         (44     (3       —         —         —         (41     (0.03

Remeasurement of net monetary position

    (4     —         —         (4     —           —         —         —         (4     —    

Impact from pension participation changes

    (35     —         (6     (29     (8       —         —         —         (21     (0.02

Impact from resolution of tax matters

    85       —         —         85       21         —         —         —         64       0.05  

CEO transition remuneration

    9       —         —         9       —           —         —         —         9       0.01  

Loss related to interest rate swaps

    —         —         (111     111       —           —         —         —         111       0.08  

Swiss tax reform net impacts

    2       —         —         2       769         —         —         —         (767     (0.53

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         (5       —         —         —         5       —    

Loss on equity method investment transactions

    —         —         —         —         (6       (2     —         —         8       0.01  

Equity method investee items

    —         —         —         —         6         —         (37     —         31       0.02  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 4,264     $ (66   $ 338     $ 3,992     $ 860       21.5   $ —       $ (443   $ 15     $ 3,560     $ 2.44  

Impact from enacted tax law changes

    —         —         —         —         (10       —         —         —         10       0.01  

Change in equity method investee items

    —         —         —         —         —           —         42       —         (42     (0.03
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,264     $ (66   $ 338     $ 3,992     $ 850       21.3   $ —       $ (401   $ 15     $ 3,528     $ 2.42  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,458  

 

(1) 

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


Schedule 1.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 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

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

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       —    

Impact from resolution of tax matters

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

Loss on debt extinguishment and related expenses

    —         —         (185     185       46         —         —         —         139       0.10  

Gain on equity method investment transactions

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

Equity method investee items

    —         —         —         —         —           —         (15     —         15       0.01  

Rounding

    1       —         —         1       —           —         —         —         1       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,188     $ (35   $ 84     $ 1,139     $ 289       25.4   $ —       $ (112   $ 3     $ 959     $ 0.67  

Impact from enacted tax law changes

    —         —         —         —         (6       —         —         —         6       —    

Change in equity method investee items

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,188     $ (35   $ 84     $ 1,139     $ 283       24.8   $ —       $ (112   $ 3     $ 965     $ 0.67  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      (25     (0.02
                   

 

 

   

 

 

 

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

                    $ 940     $ 0.65  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,439  

 

    For the Three Months Ended December 31, 2019  
    Operating
Income
    Benefit
plan non-
service
expense /

(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Gain on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling
interest

earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 906     $ (18   $ 70     $ 854     $ 230       26.9   $ —       $ (112   $ 3     $ 733     $ 0.50  

Simplify to Grow Program

    138       —         —         138       36         —         —         —         102       0.07  

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

    (22     —         1       (23     (5       —         —         —         (18     (0.01

Acquisition-related costs

    1       —         —         1       —           —         —         —         1       —    

Net earnings from divestitures

    —         —         —         —         (4       —         23       —         (19     (0.01

Remeasurement of net monetary position

    (6     —         —         (6     —           —         —         —         (6     —    

Impact from pension participation changes

    —         —         (3     3       1         —         —         —         2       —    

Impact from resolution of tax matters

    85       —         —         85       21         —         —         —         64       0.04  

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         (3       —         —         —         3       —    

Equity method investee items

    —         —         —         —         1         —         (11     —         10       0.01  

Rounding

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,101     $ (18   $ 68     $ 1,051     $ 277       26.4   $ —       $ (100   $ 3     $ 871     $ 0.60  

Impact from enacted tax law changes

    —         —         —         —         2         —         —         —         (2     —    

Change in equity method investee items

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,101     $ (18   $ 68     $ 1,051     $ 279       26.5   $ —       $ (100   $ 3     $ 869     $ 0.60  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,453  

 

(1) 

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


Schedule 1.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 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

    —         —         —         —         (6       —         17       —         (11     (0.01

Remeasurement of net monetary position

    2       —         —         2       —           —         —         —         2       —    

Impact from pension participation changes

    —         —         (3     3       1         —         —         —         2       —    

Gain on equity method investment transactions

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

Equity method investee items

    —         —         —         —         2         —         (37     —         35       0.03  

Rounding

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,165     $ (38   $ 89     $ 1,114     $ 315       28.3   $ —       $ (104   $ 3     $ 900     $ 0.62  

Impact from enacted tax law changes

    —         —         —         —         (30       —         —         —         30       0.02  

Change in equity method investee items

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,165     $ (38   $ 89     $ 1,114     $ 285       25.6   $ —       $ (104   $ 3     $ 930     $ 0.64  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      4       0.01  
                   

 

 

   

 

 

 

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

                    $ 934     $ 0.65  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,442  

 

    For the Three Months Ended September 30, 2019  
    Operating
Income
    Benefit
plan non-
service

expense /
(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes
(1)
    Effective
tax rate
    Gain on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling

interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 876     $ (13   $ 205     $ 684     $ (633     (92.5 )%    $ —       $ (114   $ 5     $ 1,426     $ 0.98  

Simplify to Grow Program

    151       (1     —         152       29         —         —         —         123       0.08  

Intangible asset impairment charges

    57       —         —         57       14         —         —         —         43       0.03  

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

    (20     —         (2     (18     (8       —         —         —         (10     (0.01

Acquisition-related costs

    1       —         —         1       1         —         —         —         —         —    

Divestiture-related costs

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

Net earnings from divestitures

    —         —         —         —         (4       —         23       —         (19     (0.01

Gain on divestitures

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

Remeasurement of net monetary position

    1       —         —         1       —           —         —         —         1       —    

Impact from pension participation changes

    —         —         (3     3       —           —         —         —         3       —    

CEO transition remuneration

    3       —         —         3       —           —         —         —         3       —    

Loss related to interest rate swaps

    —         —         (111     111       —           —         —         —         111       0.08  

Swiss tax reform net impacts

    2       —         —         2       769         —         —         —         (767     (0.53

Equity method investee items

    —         —         —         —         1         —         (7     —         6       0.01  

Rounding

    1       —         —         1       —           —         —         —         1       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,065     $ (14   $ 89     $ 990     $ 169       17.1   $ —       $ (98   $ 5     $ 914     $ 0.63  

Impact from enacted tax law changes

    —         —         —         —         (3       —         —         —         3       —    

Change in equity method investee items

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,065     $ (14   $ 89     $ 990     $ 166       16.8   $ —       $ (98   $ 5     $ 917     $ 0.63  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,458  

 

(1) 

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


Schedule 1.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 June 30, 2020  
    Operating
Income
    Benefit
plan non-
service

expense /
(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Gain on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling

interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

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

Simplify to Grow Program

    76       (4     —         80       20         —         —         —         60       0.04  

Intangible asset impairment charges

    90       —         —         90       21         —         —         —         69       0.05  

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

    2       —         —         2       —           —         —         —         2       —    

Acquisition integration costs

    2       —         —         2       —           —         —         —         2       —    

Acquisition-related costs

    10       —         —         10       2         —         —         —         8       0.01  

Divestiture-related costs

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

Net earnings from divestitures

    —         —         —         —         (1       —         16       —         (15     (0.01

Costs associated with JDE Peet’s transaction

    48       —         —         48       (261       —         —         —         309       0.21  

Remeasurement of net monetary position

    3       —         —         3       —           —         —         —         3       —    

Impact from pension participation changes

    —         —         (3     3       —           —         —         —         3       —    

Gain on equity method investment transactions

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

Equity method investee items

    —         —         —         —         4         —         (23     —         19       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 942     $ (35   $ 82     $ 895     $ 126       14.1   $ —       $ (113   $ 1     $ 881     $ 0.61  

Impact from enacted tax law changes

    —         —         —         —         —           —         —         —         —         —    

Change in equity method investee items

    —         —         —         —         —           —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 942     $ (35   $ 82     $ 895     $ 126       14.1   $ —       $ (113   $ 1     $ 881     $ 0.61  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      27       0.02  
                   

 

 

   

 

 

 

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

                    $ 908     $ 0.63  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,439  

 

    For the Three Months Ended June 30, 2019  
    Operating
Income
    Benefit
plan non-
service
expense /

(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Loss on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling

interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 1,025     $ (12   $ 101     $ 936     $ 216       23.1   $ 25     $ (109   $ 1     $ 803     $ 0.55  

Simplify to Grow Program

    83       (5     —         88       19         —         —         —         69       0.05  

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

    (33     —         —         (33     (3       —         —         —         (30     (0.02

Acquisition-related costs

    1       —         —         1       —           —         —         —         1       —    

Divestiture-related costs

    11       —         —         11       1         —         —         —         10       0.01  

Net earnings from divestitures

    (5     —         —         (5     (4       —         21       —         (22     (0.02

Gain on divestitures

    (41     —         —         (41     (3       —         —         —         (38     (0.03

Remeasurement of net monetary position

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

Impact from pension participation changes

    (35     —         —         (35     (9       —         —         —         (26     (0.02

CEO transition remuneration

    3       —         —         3       —           —         —         —         3       —    

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         (1       —         —         —         1       —    

Loss on equity method investment transactions

    —         —         —         —         (2       (25     —         —         27       0.02  

Equity method investee items

    —         —         —         —         1         —         (8     —         7       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,008     $ (17   $ 101     $ 924     $ 215       23.3   $ —       $ (96   $ 1     $ 804     $ 0.55  

Impact from enacted tax law changes

    —         —         —         —         (9       —         —         —         9       0.01  

Change in equity method investee items

    —         —         —         —         —           —         1       —         (1     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,008     $ (17   $ 101     $ 924     $ 206       22.3   $ —       $ (95   $ 1     $ 812     $ 0.56  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,458  

 

(1) 

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


Schedule 1.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 Three Months Ended March 31, 2020  
    Operating
Income
    Benefit
plan non-
service
expense /

(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Gain on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling

interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 856     $ (33   $ 190     $ 699     $ 148       21.2   $ (71   $ (121   $ 7     $ 736     $ 0.51  

Simplify to Grow Program

    58       —         —         58       13         —         —         —         45       0.03  

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

    185       —         1       184       32         —         —         —         152       0.11  

Acquisition-related costs

    5       —         —         5       1         —         —         —         4       —    

Net earnings from divestitures

    —         —         —         —         (5       —         28       —         (23     (0.01

Remeasurement of net monetary position

    2       —         —         2       —           —         —         —         2       —    

Impact from pension participation changes

    —         —         (3     3       1         —         —         —         2       —    

Loss related to interest rate swaps

    —         —         (103     103       24         —         —         —         79       0.05  

Gain on equity method investment transactions

    —         —         —         —         (17       71       —         —         (54     (0.04

Equity method investee items

    —         —         —         —         1         —         (6     —         5       0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,106     $ (33   $ 85     $ 1,054     $ 198       18.8   $ —       $ (99   $ 7     $ 948     $ 0.66  

Impact from enacted tax law changes

    —         —         —         —         —           —         —         —         —         —    

Change in equity method investee items

    —         —         —         —         —           —         (10     —         10       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,106     $ (33   $ 85     $ 1,054     $ 198       18.8   $ —       $ (109   $ 7     $ 958     $ 0.66  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      44       0.03  
                   

 

 

   

 

 

 

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

                    $ 1,002     $ 0.69  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,445  

 

    For the Three Months Ended March 31, 2019  
    Operating
Income
    Benefit
plan non-
service
expense /

(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Gain on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling

interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 1,036     $ (17   $ 80     $ 973     $ 189       19.4   $ (23   $ (166   $ 6     $ 967     $ 0.66  

Simplify to Grow Program

    70       —         —         70       19         —         —         —         51       0.04  

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

    (16     —         —         (16     (3       —         —         —         (13     (0.01

Divestiture-related costs

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

Net earnings from divestitures

    (4     —         —         (4     (3       —         28       —         (29     (0.02

Remeasurement of net monetary position

    2       —         —         2       —           —         —         —         2       —    

CEO transition remuneration

    3       —         —         3       —           —         —         —         3       —    

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         (1       —         —         —         1       —    

Gain on equity method investment transactions

    —         —         —         —         (5       23       —         —         (18     (0.01

Equity method investee items

    —         —         —         —         3         —         (11     —         8       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 1,090     $ (17   $ 80     $ 1,027     $ 199       19.4   $ —       $ (149   $ 6     $ 971     $ 0.66  

Impact from enacted tax law changes

    —         —         —         —         —           —         —         —         —         —    

Change in equity method investee items

    —         —         —         —         —           —         41       —         (41     (0.02
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 1,090     $ (17   $ 80     $ 1,027     $ 199       19.4   $ —       $ (108   $ 6     $ 930     $ 0.64  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,461  

 

(1) 

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


Schedule 1.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 Twelve Months Ended December 31, 2019  
    Operating
Income
    Benefit
plan non-
service
expense /

(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Loss on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling

interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 3,843     $ (60   $ 456     $ 3,447     $ 2       0.1   $ 2     $ (501   $ 15     $ 3,929     $ 2.69  

Simplify to Grow Program

    442       (6     —         448       103         —         —         —         345       0.24  

Intangible asset impairment charges

    57       —         —         57       14         —         —         —         43       0.03  

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

    (91     —         (1     (90     (19       —         —         —         (71     (0.05

Acquisition-related costs

    3       —         —         3       1         —         —         —         2       —    

Divestiture-related costs

    6       —         —         6       —           —         —         —         6       —    

Net earnings from divestitures

    (9     —         —         (9     (15       —         95       —         (89     (0.06

Gain on divestitures

    (44     —         —         (44     (3       —         —         —         (41     (0.03

Remeasurement of net monetary position

    (4     —         —         (4     —           —         —         —         (4     —    

Impact from pension participation changes

    (35     —         (6     (29     (8       —         —         —         (21     (0.02

Impact from resolution of tax matters

    85       —         —         85       21         —         —         —         64       0.05  

CEO transition remuneration

    9       —         —         9       —           —         —         —         9       0.01  

Loss related to interest rate swaps

    —         —         (111     111       —           —         —         —         111       0.08  

Swiss tax reform net impacts

    2       —         —         2       769         —         —         —         (767     (0.53

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         (5       —         —         —         5       —    

Loss on equity method investment transactions

    —         —         —         —         (6       (2     —         —         8       0.01  

Equity method investee items

    —         —         —         —         6         —         (37     —         31       0.02  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 4,264     $ (66   $ 338     $ 3,992     $ 860       21.5   $ —       $ (443   $ 15     $ 3,560     $ 2.44  

Impact from enacted tax law changes

    —         —         —         —         (10       —         —         —         10       0.01  

Change in equity method investee items

    —         —         —         —         —           —         42       —         (42     (0.03
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,264     $ (66   $ 338     $ 3,992     $ 850       21.3   $ —       $ (401   $ 15     $ 3,528     $ 2.42  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

     

Currency

                      216       0.15  
                   

 

 

   

 

 

 

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

                    $ 3,744     $ 2.57  
                   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,458  

 

    For the Twelve Months Ended December 31, 2018  
    Operating
Income
    Benefit
plan non-
service

expense /
(income)
    Interest
and
other
expense,
net
    Earnings
before
income
taxes
    Income
taxes (1)
    Effective
tax rate
    Gain on
equity
method
investment
transactions
    Equity
method
investment
net losses /
(earnings)
    Non-
controlling

interest
earnings
    Net Earnings
attributable
to Mondelēz
International
    Diluted EPS
attributable
to Mondelēz
International
 

Reported (GAAP)

  $ 3,312     $ (50   $ 520     $ 2,842     $ 773       27.2   $ (778   $ (484   $ 14     $ 3,317     $ 2.23  

Simplify to Grow Program

    626       (5     —         631       156         —         —         —         475       0.32  

Intangible asset impairment charges

    68       —         —         68       16         —         —         —         52       0.03  

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

    (141     —         1       (142     (10       —         —         —         (132     (0.09

Acquisition integration costs

    3       —         —         3       —           —         —         —         3       —    

Acquisition-related costs

    13       —         —         13       3         —         —         —         10       0.01  

Divestiture-related costs

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

Net earnings from divestitures

    (19     —         —         (19     (19       —         103       —         (103     (0.07

Remeasurement of net monetary position

    11       —         —         11       —           —         —         —         11       0.01  

Impact from pension participation changes

    423       —         (6     429       108         —         —         —         321       0.22  

Impact from resolution of tax matters

    (15     —         (4     (11     6         —         —         —         (17     (0.01

CEO transition remuneration

    22       —         —         22       5         —         —         —         17       0.01  

Gain related to interest rate swaps

    —         —         10       (10     (2       —         —         —         (8     (0.01

Loss on debt extinguishment and related expenses

    —         —         (140     140       35         —         —         —         105       0.07  

U.S. tax reform discrete net tax (benefit)/expense

    —         —         —         —         (19       —         —         —         19       0.01  

Gain on equity method investment transactions

    —         —         —         —         (192       778       —         —         (586     (0.39

Equity method investee items

    —         —         —         —         (10       —         17       —         (7     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP)

  $ 4,302     $ (55   $ 381     $ 3,976     $ 848       21.3   $ —       $ (364   $ 14     $ 3,478     $ 2.34  

Impact from enacted tax law changes

    —         —         —         —         (14       —         —         —         14       0.01  

Change in equity method investee items

    —         —         —         —         —           —         (6     —         6       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted (Non-GAAP) - As Recast

  $ 4,302     $ (55   $ 381     $ 3,976     $ 834       21.0   $ —       $ (370   $ 14     $ 3,498     $ 2.35  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted Average Shares Outstanding

                        1,486  

 

(1) 

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


Schedule 2.a

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Diluted EPS

(Unaudited)

 

     For the Three Months Ended
March 31,
             
     2021     2020     $ Change     % Change  

Diluted EPS attributable to Mondelēz International (GAAP)

   $ 0.68     $ 0.51     $ 0.17       33.3

Simplify to Grow Program

     0.07       0.03       0.04    

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

     (0.07     0.11       (0.18  

Acquisition-related costs

     0.01       —         0.01    

Net earnings from divestitures

     —         (0.01     0.01    

Loss related to interest rate swaps

     —         0.05       (0.05  

Loss on debt extinguishment and related expenses

     0.07       —         0.07    

Gain on equity method investment transactions

     —         (0.04     0.04    

Equity method investee items

     0.01       0.01       —      
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP)

   $ 0.77     $ 0.66     $ 0.11       16.7

Impact from enacted tax law changes

     —         —         —      

Change in equity method investee items

     0.03       —         0.03    
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP) - As Recast

   $ 0.80     $ 0.66     $ 0.14       21.2

Impact of favorable currency

     (0.03     —         (0.03  
  

 

 

   

 

 

   

 

 

   

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

   $ 0.77     $ 0.66     $ 0.11       16.7
  

 

 

   

 

 

   

 

 

   


Schedule 2.b

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Diluted EPS

(Unaudited)

 

     For the Twelve Months Ended
December 31,
             
     2020     2019     $ Change     % Change  

Diluted EPS attributable to Mondelēz International (GAAP)

   $ 2.47     $ 2.69     $ (0.22     (8.2 )% 

Simplify to Grow Program

     0.20       0.24       (0.04  

Intangible asset impairment charges

     0.08       0.03       0.05    

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

     (0.01     (0.05     0.04    

Acquisition-related costs

     0.01       —         0.01    

Net earnings from divestitures

     (0.04     (0.06     0.02    

Gain on divestitures

     —         (0.03     0.03    

Costs associated with JDE Peet’s transaction

     0.20       —         0.20    

Remeasurement of net monetary position

     0.01       —         0.01    

Impact from pension participation changes

     0.01       (0.02     0.03    

Impact from resolution of tax matters

     (0.02     0.05       (0.07  

CEO transition remuneration

     —         0.01       (0.01  

Loss related to interest rate swaps

     0.05       0.08       (0.03  

Loss on debt extinguishment and related expenses

     0.10       —         0.10    

Swiss tax reform net impacts

     —         (0.53     0.53    

(Gain)/loss on equity method investment transactions

     (0.55     0.01       (0.56  

Equity method investee items

     0.05       0.02       0.03    
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP)

   $ 2.56     $ 2.44     $ 0.12       4.9

Impact from enacted tax law changes

     0.02       0.01       0.01    

Change in equity method investee items

     0.01       (0.03     0.04    
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP) - As Recast

   $ 2.59     $ 2.42     $ 0.17       7.0

Impact of unfavorable currency

     0.04       —         0.04    
  

 

 

   

 

 

   

 

 

   

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

   $ 2.63     $ 2.42     $ 0.21       8.7
  

 

 

   

 

 

   

 

 

   


Schedule 2.c

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Diluted EPS

(Unaudited)

 

     For the Three Months Ended
December 31,
             
     2020     2019     $ Change     % Change  

Diluted EPS attributable to Mondelēz International (GAAP)

   $ 0.80     $ 0.50     $ 0.30       60.0

Simplify to Grow Program

     0.06       0.07       (0.01  

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

     (0.03     (0.01     (0.02  

Net earnings from divestitures

     —         (0.01     0.01    

Costs associated with JDE Peet’s transaction

     (0.01     —         (0.01  

Impact from resolution of tax matters

     (0.02     0.04       (0.06  

Loss on debt extinguishment and related expenses

     0.10       —         0.10    

Gain on equity method investment transactions

     (0.24     —         (0.24  

Equity method investee items

     0.01       0.01       —      
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP)

   $ 0.67     $ 0.60     $ 0.07       11.7

Impact from enacted tax law changes

     —         —         —      

Change in equity method investee items

     —         —         —      
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP) - As Recast

   $ 0.67     $ 0.60     $ 0.07       11.7

Impact of favorable currency

     (0.02     —         (0.02  
  

 

 

   

 

 

   

 

 

   

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

   $ 0.65     $ 0.60     $ 0.05       8.3
  

 

 

   

 

 

   

 

 

   


Schedule 2.d

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Diluted EPS

(Unaudited)

 

     For the Three Months Ended
September 30,
             
     2020     2019     $ Change     % Change  

Diluted EPS attributable to Mondelēz International (GAAP)

   $ 0.78     $ 0.98     $ (0.20     (20.4 )% 

Simplify to Grow Program

     0.06       0.08       (0.02  

Intangible asset impairment charges

     0.03       0.03       —      

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

     (0.08     (0.01     (0.07  

Net earnings from divestitures

     (0.01     (0.01     —      

Loss related to interest rate swaps

     —         0.08       (0.08  

Swiss tax reform net impacts

     —         (0.53     0.53    

Gain on equity method investment transactions

     (0.19     —         (0.19  

Equity method investee items

     0.03       0.01       0.02    
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP)

   $ 0.62     $ 0.63     $ (0.01     (1.6 )% 

Impact from enacted tax law changes

     0.02       —         0.02    

Change in equity method investee items

     —         —         —      
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP) - As Recast

   $ 0.64     $ 0.63     $ 0.01       1.6

Impact of unfavorable currency

     0.01       —         0.01    
  

 

 

   

 

 

   

 

 

   

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

   $ 0.65     $ 0.63     $ 0.02       3.2
  

 

 

   

 

 

   

 

 

   


Schedule 2.e

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Diluted EPS

(Unaudited)

 

     For the Three Months Ended
June 30,
             
     2020     2019     $ Change     % Change  

Diluted EPS attributable to Mondelēz International (GAAP)

   $ 0.38     $ 0.55     $ (0.17     (30.9 )% 

Simplify to Grow Program

     0.04       0.05       (0.01  

Intangible asset impairment charges

     0.05       —         0.05    

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

     —         (0.02     0.02    

Acquisition-related costs

     0.01       —         0.01    

Divestiture-related costs

     —         0.01       (0.01  

Net earnings from divestitures

     (0.01     (0.02     0.01    

Gain on divestitures

     —         (0.03     0.03    

Costs associated with JDE Peet’s transaction

     0.21       —         0.21    

Impact from pension participation changes

     —         (0.02     0.02    

(Gain)/loss on equity method investment transactions

     (0.08     0.02       (0.10  

Equity method investee items

     0.01       0.01       —      
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP)

   $ 0.61     $ 0.55     $ 0.06       10.9

Impact from enacted tax law changes

     —         0.01       (0.01  

Change in equity method investee items

     —         —         —      
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP) - As Recast

   $ 0.61     $ 0.56     $ 0.05       8.9

Impact of unfavorable currency

     0.02       —         0.02    
  

 

 

   

 

 

   

 

 

   

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

   $ 0.63     $ 0.56     $ 0.07       12.5
  

 

 

   

 

 

   

 

 

   


Schedule 2.f

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Diluted EPS

(Unaudited)

 

     For the Three Months Ended
March 31,
             
     2020     2019     $ Change     % Change  

Diluted EPS attributable to Mondelēz International (GAAP)

   $ 0.51     $ 0.66     $ (0.15     (22.7 )% 

Simplify to Grow Program

     0.03       0.04       (0.01  

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

     0.11       (0.01     0.12    

Net earnings from divestitures

     (0.01     (0.02     0.01    

Loss related to interest rate swaps

     0.05       —         0.05    

Gain on equity method investment transactions

     (0.04     (0.01     (0.03  

Equity method investee items

     0.01       —         0.01    
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP)

   $ 0.66     $ 0.66     $ —         0.0

Impact from enacted tax law changes

     —         —         —      

Change in equity method investee items

     —         (0.02     0.02    
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP) - As Recast

   $ 0.66     $ 0.64     $ 0.02       3.1

Impact of unfavorable currency

     0.03       —         0.03    
  

 

 

   

 

 

   

 

 

   

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

   $ 0.69     $ 0.64     $ 0.05       7.8
  

 

 

   

 

 

   

 

 

   


Schedule 2.g

Mondelēz International, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Measures

Diluted EPS

(Unaudited)

 

     For the Twelve Months Ended
December 31,
             
     2019     2018     $ Change     % Change  

Diluted EPS attributable to Mondelēz International (GAAP)

   $ 2.69     $ 2.23     $ 0.46       20.6

Simplify to Grow Program

     0.24       0.32       (0.08  

Intangible asset impairment charges

     0.03       0.03       —      

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

     (0.05     (0.09     0.04    

Acquisition-related costs

     —         0.01       (0.01  

Net earnings from divestitures

     (0.06     (0.07     0.01    

Gain on divestitures

     (0.03     —         (0.03  

Remeasurement of net monetary position

     —         0.01       (0.01  

Impact from pension participation changes

     (0.02     0.22       (0.24  

Impact from resolution of tax matters

     0.05       (0.01     0.06    

CEO transition remuneration

     0.01       0.01       —      

(Gain)/loss related to interest rate swaps

     0.08       (0.01     0.09    

Loss on debt extinguishment and related expenses

     —         0.07       (0.07  

Swiss tax reform net impacts

     (0.53     —         (0.53  

U.S. tax reform discrete net tax (benefit)/expense

     —         0.01       (0.01  

(Gain)/loss on equity method investment transactions

     0.01       (0.39     0.40    

Equity method investee items

     0.02       —         0.02    
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP)

   $ 2.44     $ 2.34     $ 0.10       4.3

Impact from enacted tax law changes

     0.01       0.01       —      

Change in equity method investee items

     (0.03     —         (0.03  
  

 

 

   

 

 

   

 

 

   

Adjusted EPS (Non-GAAP) - As Recast

   $ 2.42     $ 2.35     $ 0.07       3.0

Impact of unfavorable currency

     0.15       —         0.15    
  

 

 

   

 

 

   

 

 

   

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

   $ 2.57     $ 2.35     $ 0.22       9.4
  

 

 

   

 

 

   

 

 

   
EX-99.2 3 d331556dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

Non-GAAP Financial Measures – Additional Information

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. We use non-GAAP financial measures to budget, make operating and strategic decisions and evaluate our performance. We have detailed below the adjustments that we make in our non-GAAP financial measure that was affected by the exclusion of the initial impacts from all enacted tax law changes. Our adjustments generally fall within the following categories: acquisition & divestiture activities, gains and losses on intangible asset sales and non-cash impairments, major program restructuring activities, constant currency and related adjustments, major program financing and hedging activities and other major items affecting comparability of operating results. We believe the non-GAAP measures should always be considered along with the related U.S. GAAP financial measures.

The definitions of our non-GAAP financial measures now reflect the exclusion of the initial impacts from all enacted tax law changes. For all periods presented in this Form 8-K, our non-GAAP financial measure Adjusted EPS definition has been updated below. As new events or circumstances arise, this definition could change over time. When definitions change, we provide the updated definitions and present the related non-GAAP historical results on a comparable basis (1).

Adjusted EPS – defined as diluted EPS attributable to Mondelēz International from continuing operations excluding the impacts of the Simplify to Grow Program (2); gains or losses (including non-cash impairment charges) on goodwill and intangible assets; net earnings from divestitures (3); divestiture (3) or acquisition gains or losses and related divestiture (3), acquisition and integration costs; remeasurement of net monetary position (4); mark-to-market impacts from commodity and forecasted currency transaction derivative contracts (5); impacts from resolution of tax matters (6); CEO transition remuneration (7); impact from pension participation changes (8); incremental expenses related to the 2017 malware incident; losses on debt extinguishment and related expenses; gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans; gains or losses on equity method investment transactions; costs associated with the JDE Peet’s transaction; and initial impacts from all enacted tax law changes (9). Similarly, within Adjusted EPS, our equity method investment net earnings exclude our proportionate share of our investees’ significant operating and non-operating items (10). We believe that Adjusted EPS provides improved comparability of underlying operating results. We also evaluate growth in our Adjusted EPS on a constant currency basis (11).

 

  (1)

When items no longer impact our current or future presentation of non-GAAP operating results, we remove these items from our non-GAAP definitions. Beginning with the second quarter of 2021, we added to the non-GAAP definitions the exclusion of initial impacts from all enacted tax law changes. Refer to footnote (9) below.

 

  (2)

Non-GAAP adjustments related to the Simplify to Grow Program reflect costs incurred that relate to the objectives of our program to transform our supply chain network and organizational structure. Costs that do not meet the program objectives are not reflected in the non-GAAP adjustments.

 

  (3)

Divestitures include completed sales of businesses (including the partial or full sale of an equity method investment) and exits of major product lines upon completion of a sale or licensing agreement. As we record our share of KDP and JDE Peet’s ongoing earnings on a one-quarter lag basis, any KDP or JDE Peet’s ownership reductions are reflected as divestitures within our non-GAAP results the following quarter. Refer to Note 2, Acquisitions and Divestitures, and Note 7, Equity Method Investments, in our Annual Report on Form 10-K for the year ended December 31, 2020 for more information on acquisitions and divestitures impacting the comparability of our results.

 

  (4)

During the third quarter of 2018, as we began to apply highly inflationary accounting for Argentina, we excluded the remeasurement gains or losses related to remeasuring net monetary assets or liabilities in Argentina during the period to be consistent with our prior accounting for these remeasurement gains/losses for Venezuela when it was subject to highly inflationary accounting prior to deconsolidation in 2015. Refer to Note 1, Summary of Significant Accounting Policies, in our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information.

 

  (5)

We exclude unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency transaction derivatives from our non-GAAP earnings measures until such time that the related exposures impact our operating results. Since we purchase commodity and forecasted currency contracts to mitigate price volatility primarily for inventory requirements in future periods, we made this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of our underlying operating performance across periods. We also discontinued designating commodity and forecasted currency transaction derivatives for hedge accounting treatment. To facilitate comparisons of our underlying operating results, we have recast all historical non-GAAP earnings measures to exclude the mark-to-market impacts.


  (6)

Refer to Note 14, Commitments and Contingencies – Tax Matters, in our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information.

 

  (7)

On November 20, 2017, Dirk Van de Put succeeded Irene Rosenfeld as CEO of Mondelēz International in advance of her retirement at the end of March 2018. In order to incent Mr. Van de Put to join us, we provided him compensation with a total combined target value of $42.5 million to make him whole for incentive awards he forfeited or grants that were not made to him when he left his former employer. The compensation we granted took the form of cash, deferred stock units, performance share units and stock options. In connection with Irene Rosenfeld’s retirement, we made her outstanding grants of performance share units for the 2016-2018 and 2017-2019 performance cycles eligible for continued vesting and approved a $0.5 million salary for her service as Chairman from January through March 2018. We refer to these elements of Mr. Van de Put’s and Ms. Rosenfeld’s compensation arrangements together as “CEO transition remuneration.” We are excluding amounts we expense as CEO transition remuneration from our 2017 and future non-GAAP results because those amounts are not part of our regular compensation program and are incremental to amounts we would have incurred as ongoing CEO compensation. As a result, in 2017, we excluded amounts expensed for the cash payment to Mr. Van de Put and partial vesting of his equity grants. In 2018, we excluded amounts paid for Ms. Rosenfeld’s service as Chairman and partial vesting of Mr. Van de Put’s and Ms. Rosenfeld’s equity grants. In 2019, we excluded amounts related to the partial vesting of Mr. Van de Put’s equity grants. During the first quarter of 2020, Mr. Van de Put’s equity grants became fully vested.

 

  (8)

The impact from pension participation changes represents the charges incurred when employee groups are withdrawn from multiemployer pension plans and other changes in employee group pension plan participation. We exclude these charges from our non-GAAP results because those amounts do not reflect our ongoing pension obligations. See Note 11, Benefit Plans, in our Annual Report on Form 10-K for the year ended December 31, 2020 for more information on the multiemployer pension plan withdrawal.

 

  (9)

We have excluded the initial impacts from all enacted tax law changes. Initial impacts include items such as the remeasurement of deferred tax balances and the transition tax from the 2017 U.S. tax reform. Previously, we only excluded the initial impacts from material tax reforms, specifically the impacts of the 2019 Swiss tax reform and 2017 U.S. tax reform. We exclude initial impacts from all enacted tax law changes from our Adjusted EPS as they do not reflect our ongoing tax obligations under the enacted tax law changes. Refer to Note 16, Income Taxes, in our Annual Report on Form 10-K for the year ended December 31, 2020 for more information on the impact of Swiss and U.S. tax reform.

 

  (10)

We have excluded our proportionate share of our equity method investees’ significant operating and non-operating items, such as acquisition and divestiture related costs, restructuring program costs and initial impacts from all enacted tax law changes, in order to provide investors with a comparable view of our performance across periods. Although we have shareholder rights and board representation commensurate with our ownership interests in our equity method investees and review the underlying operating results and significant operating and non-operating items with them each reporting period, we do not have direct control over their operations or resulting revenue and expenses. Our use of equity method investment net earnings on an adjusted basis is not intended to imply that we have any such control. Our GAAP “diluted EPS attributable to Mondelēz International from continuing operations” includes all of the investees’ significant operating and non-operating items.

 

  (11)

Constant currency operating results are calculated by dividing or multiplying, as appropriate, the current-period local currency operating results by the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period.

We believe that the presentation of these non-GAAP financial measures, when considered together with our U.S. GAAP financial measures and the reconciliations to the corresponding U.S. GAAP financial measures, helps provide a more complete understanding of the factors and trends affecting our business than could be obtained absent these disclosures. Because non-GAAP financial measures vary among companies, the non-GAAP financial measures presented in this report may not be comparable to similarly titled measures used by other companies. Our use of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for any U.S. GAAP financial measure. A limitation of the non-GAAP financial measures is they do not include all items of income and expense that affect us and have an impact on our U.S. GAAP reported results. The best way to address this limitation is by evaluating our non-GAAP financial measures in combination with our U.S. GAAP reported results and carefully evaluating the reconciliations of U.S. GAAP reported figures to the non-GAAP financial measures.

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