☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Virginia | 52-2284372 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
905 West Fulton Market, Suite 200 | ||||||||
Chicago, | Illinois | 60607 | ||||||
(Address of principal executive offices) | (Zip Code) |
Tile 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 | ||||||||||||
2.375% Notes due 2021 | MDLZ21 | The Nasdaq Stock Market LLC | ||||||||||||
1.000% Notes due 2022 | MDLZ22 | The Nasdaq Stock Market LLC | ||||||||||||
1.625% Notes due 2023 | MDLZ23 | The Nasdaq Stock Market LLC | ||||||||||||
1.625% Notes due 2027 | MDLZ27 | 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 | ||||||||||||
3.875% Notes due 2045 | MDLZ45 | The Nasdaq Stock Market LLC |
Large accelerated filer | x | Accelerated filer | ☐ | ||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||
Emerging growth company | ☐ |
Page No. | ||||||||
PART I - | FINANCIAL INFORMATION | |||||||
Item 1. | Financial Statements (Unaudited) | |||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II - | OTHER INFORMATION | |||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item | ||||||||
Item 6. | ||||||||
For the Three Months Ended March 31, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
Net revenues | $ | 6,707 | $ | 6,538 | Net revenues | $ | 6,665 | $ | 6,355 | $ | 19,283 | $ | 18,955 | |||||||||||||||||
Cost of sales | 4,256 | 3,945 | Cost of sales | 3,873 | 3,839 | 11,709 | 11,377 | |||||||||||||||||||||||
Gross profit | 2,451 | 2,593 | Gross profit | 2,792 | 2,516 | 7,574 | 7,578 | |||||||||||||||||||||||
Selling, general and administrative expenses | 1,537 | 1,493 | Selling, general and administrative expenses | 1,484 | 1,466 | 4,474 | 4,386 | |||||||||||||||||||||||
Asset impairment and exit costs | 15 | 20 | Asset impairment and exit costs | 123 | 134 | 253 | 169 | |||||||||||||||||||||||
Net gain on divestiture | Net gain on divestiture | 0 | (3) | 0 | (44) | |||||||||||||||||||||||||
Amortization of intangibles | 43 | 44 | Amortization of intangibles | 50 | 43 | 143 | 130 | |||||||||||||||||||||||
Operating income | 856 | 1,036 | Operating income | 1,135 | 876 | 2,704 | 2,937 | |||||||||||||||||||||||
Benefit plan non-service income | (33 | ) | (17 | ) | Benefit plan non-service income | (38) | (13) | (102) | (42) | |||||||||||||||||||||
Interest and other expense, net | 190 | 80 | Interest and other expense, net | 89 | 205 | 364 | 386 | |||||||||||||||||||||||
Earnings before income taxes | 699 | 973 | Earnings before income taxes | 1,084 | 684 | 2,442 | 2,593 | |||||||||||||||||||||||
Provision for income taxes | (148 | ) | (189 | ) | ||||||||||||||||||||||||||
Gains on equity method investment transactions | 71 | 23 | ||||||||||||||||||||||||||||
Income tax (provision)/benefit | Income tax (provision)/benefit | (391) | 633 | (880) | 228 | |||||||||||||||||||||||||
Gain/(loss) on equity method investment transactions | Gain/(loss) on equity method investment transactions | 345 | 0 | 537 | (2) | |||||||||||||||||||||||||
Equity method investment net earnings | 138 | 113 | Equity method investment net earnings | 84 | 114 | 311 | 389 | |||||||||||||||||||||||
Net earnings | 760 | 920 | Net earnings | 1,122 | 1,431 | 2,410 | 3,208 | |||||||||||||||||||||||
Noncontrolling interest earnings | (7 | ) | (6 | ) | Noncontrolling interest earnings | (3) | (5) | (11) | (12) | |||||||||||||||||||||
Net earnings attributable to Mondelēz International | $ | 753 | $ | 914 | Net earnings attributable to Mondelēz International | $ | 1,119 | $ | 1,426 | $ | 2,399 | $ | 3,196 | |||||||||||||||||
Per share data: | Per share data: | |||||||||||||||||||||||||||||
Basic earnings per share attributable to Mondelēz International | $ | 0.53 | $ | 0.63 | Basic earnings per share attributable to Mondelēz International | $ | 0.78 | $ | 0.99 | $ | 1.68 | $ | 2.21 | |||||||||||||||||
Diluted earnings per share attributable to Mondelēz International | $ | 0.52 | $ | 0.63 | Diluted earnings per share attributable to Mondelēz International | $ | 0.78 | $ | 0.98 | $ | 1.66 | $ | 2.19 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net earnings | $ | 1,122 | $ | 1,431 | $ | 2,410 | $ | 3,208 | |||||||||||||||
Other comprehensive earnings/(losses), net of tax: | |||||||||||||||||||||||
Currency translation adjustment | 213 | (347) | (1,077) | (154) | |||||||||||||||||||
Pension and other benefit plans | (37) | 89 | 28 | 144 | |||||||||||||||||||
Derivative cash flow hedges | (4) | 36 | 55 | (91) | |||||||||||||||||||
Total other comprehensive earnings/(losses) | 172 | (222) | (994) | (101) | |||||||||||||||||||
Comprehensive earnings/(losses) | 1,294 | 1,209 | 1,416 | 3,107 | |||||||||||||||||||
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | 11 | (4) | 18 | 4 | |||||||||||||||||||
Comprehensive earnings/(losses) attributable to Mondelēz International | $ | 1,283 | $ | 1,213 | $ | 1,398 | $ | 3,103 |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
Net earnings | $ | 760 | $ | 920 | |||
Other comprehensive earnings/(losses), net of tax: | |||||||
Currency translation adjustment | (1,511 | ) | 190 | ||||
Pension and other benefit plans | 79 | 10 | |||||
Derivative cash flow hedges | 60 | (69 | ) | ||||
Total other comprehensive earnings/(losses) | (1,372 | ) | 131 | ||||
Comprehensive earnings/(losses) | (612 | ) | 1,051 | ||||
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | 2 | 5 | |||||
Comprehensive earnings/(losses) attributable to Mondelēz International | $ | (614 | ) | $ | 1,046 |
March 31, 2020 | December 31, 2019 | September 30, 2020 | December 31, 2019 | |||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 1,925 | $ | 1,291 | Cash and cash equivalents | $ | 2,759 | $ | 1,291 | |||||||||
Trade receivables (net of allowances of $39 at March 31, 2020 and $35 at December 31, 2019) | 2,628 | 2,212 | ||||||||||||||||
Other receivables (net of allowances of $40 at March 31, 2020 and $44 at December 31, 2019) | 670 | 715 | ||||||||||||||||
Trade receivables (net of allowances of $41 at September 30, 2020 and $35 at December 31, 2019) | Trade receivables (net of allowances of $41 at September 30, 2020 and $35 at December 31, 2019) | 2,491 | 2,212 | |||||||||||||||
Other receivables (net of allowances of $40 at September 30, 2020 and $44 at December 31, 2019) | Other receivables (net of allowances of $40 at September 30, 2020 and $44 at December 31, 2019) | 565 | 715 | |||||||||||||||
Inventories, net | 2,441 | 2,546 | Inventories, net | 2,840 | 2,546 | |||||||||||||
Other current assets | 1,404 | 866 | Other current assets | 791 | 866 | |||||||||||||
Total current assets | 9,068 | 7,630 | Total current assets | 9,446 | 7,630 | |||||||||||||
Property, plant and equipment, net | 8,054 | 8,733 | Property, plant and equipment, net | 8,533 | 8,733 | |||||||||||||
Operating lease right of use assets | 590 | 568 | Operating lease right of use assets | 661 | 568 | |||||||||||||
Goodwill | 20,216 | 20,848 | Goodwill | 21,335 | 20,848 | |||||||||||||
Intangible assets, net | 17,271 | 17,957 | Intangible assets, net | 18,056 | 17,957 | |||||||||||||
Prepaid pension assets | 537 | 516 | Prepaid pension assets | 654 | 516 | |||||||||||||
Deferred income taxes | 708 | 726 | Deferred income taxes | 799 | 726 | |||||||||||||
Equity method investments | 6,887 | 7,212 | Equity method investments | 6,488 | 7,178 | |||||||||||||
Other assets | 267 | 359 | Other assets | 277 | 359 | |||||||||||||
TOTAL ASSETS | $ | 63,598 | $ | 64,549 | TOTAL ASSETS | $ | 66,249 | $ | 64,515 | |||||||||
LIABILITIES | LIABILITIES | |||||||||||||||||
Short-term borrowings | $ | 4,764 | $ | 2,638 | Short-term borrowings | $ | 199 | $ | 2,638 | |||||||||
Current portion of long-term debt | 1,672 | 1,581 | Current portion of long-term debt | 999 | 1,581 | |||||||||||||
Accounts payable | 5,554 | 5,853 | Accounts payable | 5,597 | 5,853 | |||||||||||||
Accrued marketing | 1,848 | 1,836 | Accrued marketing | 2,028 | 1,836 | |||||||||||||
Accrued employment costs | 573 | 769 | Accrued employment costs | 760 | 769 | |||||||||||||
Other current liabilities | 2,593 | 2,645 | Other current liabilities | 3,102 | 2,645 | |||||||||||||
Total current liabilities | 17,004 | 15,322 | Total current liabilities | 12,685 | 15,322 | |||||||||||||
Long-term debt | 13,354 | 14,207 | Long-term debt | 18,916 | 14,207 | |||||||||||||
Long-term operating lease liabilities | 433 | 403 | Long-term operating lease liabilities | 484 | 403 | |||||||||||||
Deferred income taxes | 3,308 | 3,338 | Deferred income taxes | 3,387 | 3,338 | |||||||||||||
Accrued pension costs | 1,110 | 1,190 | Accrued pension costs | 1,115 | 1,190 | |||||||||||||
Accrued postretirement health care costs | 376 | 387 | Accrued postretirement health care costs | 373 | 387 | |||||||||||||
Other liabilities | 2,261 | 2,351 | Other liabilities | 2,261 | 2,351 | |||||||||||||
TOTAL LIABILITIES | 37,846 | 37,198 | TOTAL LIABILITIES | 39,221 | 37,198 | |||||||||||||
Commitments and Contingencies (Note 12) | Commitments and Contingencies (Note 12) | |||||||||||||||||
EQUITY | EQUITY | |||||||||||||||||
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at March 31, 2020 and December 31, 2019) | — | — | ||||||||||||||||
Common Stock, 0 par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at September 30, 2020 and December 31, 2019) | Common Stock, 0 par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at September 30, 2020 and December 31, 2019) | 0 | 0 | |||||||||||||||
Additional paid-in capital | 31,990 | 32,019 | Additional paid-in capital | 32,054 | 32,019 | |||||||||||||
Retained earnings | 26,961 | 26,653 | Retained earnings | 27,702 | 26,615 | |||||||||||||
Accumulated other comprehensive losses | (11,625 | ) | (10,258 | ) | Accumulated other comprehensive losses | (11,255) | (10,254) | |||||||||||
Treasury stock, at cost (569,185,208 shares at March 31, 2020 and 561,531,524 shares at December 31, 2019) | (21,652 | ) | (21,139 | ) | ||||||||||||||
Treasury stock, at cost (566,694,393 shares at September 30, 2020 and 561,531,524 shares at December 31, 2019) | Treasury stock, at cost (566,694,393 shares at September 30, 2020 and 561,531,524 shares at December 31, 2019) | (21,558) | (21,139) | |||||||||||||||
Total Mondelēz International Shareholders’ Equity | 25,674 | 27,275 | Total Mondelēz International Shareholders’ Equity | 26,943 | 27,241 | |||||||||||||
Noncontrolling interest | 78 | 76 | Noncontrolling interest | 85 | 76 | |||||||||||||
TOTAL EQUITY | 25,752 | 27,351 | TOTAL EQUITY | 27,028 | 27,317 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 63,598 | $ | 64,549 | TOTAL LIABILITIES AND EQUITY | $ | 66,249 | $ | 64,515 |
Mondelēz International Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/ (Losses) | Treasury Stock | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Balances at July 1, 2020 | $ | 0 | $ | 32,022 | $ | 27,040 | $ | (11,419) | $ | (21,625) | $ | 79 | $ | 26,097 | |||||||||||||||||||||||||||
Comprehensive earnings/(losses): | |||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | 1,119 | — | — | 3 | 1,122 | ||||||||||||||||||||||||||||||||||
Other comprehensive earnings/(losses), net of income taxes | — | — | — | 164 | — | 8 | 172 | ||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of other stock awards | — | 32 | (7) | — | 67 | — | 92 | ||||||||||||||||||||||||||||||||||
Common Stock repurchased | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($0.315 per share) | — | — | (452) | — | — | — | (452) | ||||||||||||||||||||||||||||||||||
Dividends paid on noncontrolling interest and other activities | — | — | 2 | — | — | (5) | (3) | ||||||||||||||||||||||||||||||||||
Balances at September 30, 2020 | $ | 0 | $ | 32,054 | $ | 27,702 | $ | (11,255) | $ | (21,558) | $ | 85 | $ | 27,028 | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2020 | $ | 0 | $ | 32,019 | $ | 26,615 | $ | (10,254) | $ | (21,139) | $ | 76 | $ | 27,317 | |||||||||||||||||||||||||||
Comprehensive earnings/(losses): | |||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | 2,399 | — | — | 11 | 2,410 | ||||||||||||||||||||||||||||||||||
Other comprehensive earnings/(losses), net of income taxes | — | — | — | (1,001) | — | 7 | (994) | ||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of other stock awards | — | 35 | (48) | — | 282 | — | 269 | ||||||||||||||||||||||||||||||||||
Common Stock repurchased | — | — | — | — | (701) | — | (701) | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($0.885 per share) | — | — | (1,269) | — | — | — | (1,269) | ||||||||||||||||||||||||||||||||||
Dividends paid on noncontrolling interest and other activities | — | — | 5 | — | — | (9) | (4) | ||||||||||||||||||||||||||||||||||
Balances at September 30, 2020 | $ | 0 | $ | 32,054 | $ | 27,702 | $ | (11,255) | $ | (21,558) | $ | 85 | $ | 27,028 | |||||||||||||||||||||||||||
Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Balances at July 1, 2019 | $ | 0 | $ | 31,970 | $ | 25,300 | $ | (10,524) | $ | (20,684) | $ | 81 | $ | 26,143 | |||||||||||||||||||||||||||
Comprehensive earnings/(losses): | |||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | 1,426 | — | — | 5 | 1,431 | ||||||||||||||||||||||||||||||||||
Other comprehensive earnings/(losses), net of income taxes | — | — | — | (213) | — | (9) | (222) | ||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of other stock awards | — | 28 | (15) | — | 70 | — | 83 | ||||||||||||||||||||||||||||||||||
Common Stock repurchased | — | — | — | — | (206) | — | (206) | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($0.285 per share) | — | — | (411) | — | — | — | (411) | ||||||||||||||||||||||||||||||||||
Dividends paid on noncontrolling interest and other activities | — | — | — | — | — | (9) | (9) | ||||||||||||||||||||||||||||||||||
Balances at September 30, 2019 | $ | 0 | $ | 31,998 | $ | 26,300 | $ | (10,737) | $ | (20,820) | $ | 68 | $ | 26,809 | |||||||||||||||||||||||||||
Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2019 | $ | 0 | $ | 31,961 | $ | 24,394 | $ | (10,644) | $ | (20,185) | $ | 76 | $ | 25,602 | |||||||||||||||||||||||||||
Comprehensive earnings/(losses): | |||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | 3,196 | — | — | 12 | 3,208 | ||||||||||||||||||||||||||||||||||
Other comprehensive earnings/(losses), net of income taxes | — | — | — | (93) | — | (8) | (101) | ||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of other stock awards | — | 37 | (126) | — | 512 | — | 423 | ||||||||||||||||||||||||||||||||||
Common Stock repurchased | — | — | — | — | (1,147) | — | (1,147) | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($0.805 per share) | — | — | (1,164) | — | — | — | (1,164) | ||||||||||||||||||||||||||||||||||
Dividends paid on noncontrolling interest and other activities | — | — | — | — | — | (12) | (12) | ||||||||||||||||||||||||||||||||||
Balances at September 30, 2019 | $ | 0 | $ | 31,998 | $ | 26,300 | $ | (10,737) | $ | (20,820) | $ | 68 | $ | 26,809 |
Mondelēz International Shareholders’ Equity | |||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/ (Losses) | Treasury Stock | Non-controlling Interest | Total Equity | |||||||||||||||||||||
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||
Balances at January 1, 2020 | $ | — | $ | 32,019 | $ | 26,653 | $ | (10,258 | ) | $ | (21,139 | ) | $ | 76 | $ | 27,351 | |||||||||||
Comprehensive earnings/(losses): | |||||||||||||||||||||||||||
Net earnings | — | — | 753 | — | — | 7 | 760 | ||||||||||||||||||||
Other comprehensive earnings/(losses), net of income taxes | — | — | — | (1,367 | ) | — | (5 | ) | (1,372 | ) | |||||||||||||||||
Exercise of stock options and issuance of other stock awards | — | (29 | ) | (38 | ) | — | 188 | — | 121 | ||||||||||||||||||
Common Stock repurchased | — | — | — | — | (701 | ) | — | (701 | ) | ||||||||||||||||||
Cash dividends declared ($0.285 per share) | — | — | (408 | ) | — | — | — | (408 | ) | ||||||||||||||||||
Dividends paid on noncontrolling interest and other activities | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||
Balances at March 31, 2020 | $ | — | $ | 31,990 | $ | 26,961 | $ | (11,625 | ) | $ | (21,652 | ) | $ | 78 | $ | 25,752 | |||||||||||
Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||
Balances at January 1, 2019 | $ | — | $ | 31,961 | $ | 24,491 | $ | (10,630 | ) | $ | (20,185 | ) | $ | 76 | $ | 25,713 | |||||||||||
Comprehensive earnings/(losses): | |||||||||||||||||||||||||||
Net earnings | — | — | 914 | — | — | 6 | 920 | ||||||||||||||||||||
Other comprehensive earnings/(losses), net of income taxes | — | — | — | 132 | — | (1 | ) | 131 | |||||||||||||||||||
Exercise of stock options and issuance of other stock awards | — | (28 | ) | (76 | ) | — | 289 | — | 185 | ||||||||||||||||||
Common Stock repurchased | — | — | — | — | (665 | ) | — | (665 | ) | ||||||||||||||||||
Cash dividends declared ($0.26 per share) | — | — | (375 | ) | — | — | — | (375 | ) | ||||||||||||||||||
Balances at March 31, 2019 | $ | — | $ | 31,933 | $ | 24,954 | $ | (10,498 | ) | $ | (20,561 | ) | $ | 81 | $ | 25,909 |
For the Nine Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | |||||||||||
Net earnings | $ | 2,410 | $ | 3,208 | |||||||
Adjustments to reconcile net earnings to operating cash flows: | |||||||||||
Depreciation and amortization | 813 | 777 | |||||||||
Stock-based compensation expense | 97 | 101 | |||||||||
U.S. tax reform transition tax | 0 | 2 | |||||||||
Deferred income tax benefit | (103) | (738) | |||||||||
Asset impairments and accelerated depreciation | 141 | 103 | |||||||||
Net gain on divestiture | 0 | (44) | |||||||||
(Gain)/loss on equity method investment transactions | (537) | 2 | |||||||||
Equity method investment net earnings | (311) | (389) | |||||||||
Distributions from equity method investments | 220 | 217 | |||||||||
Other non-cash items, net | 225 | 70 | |||||||||
Change in assets and liabilities, net of acquisitions and divestitures: | |||||||||||
Receivables, net | (259) | (217) | |||||||||
Inventories, net | (314) | (219) | |||||||||
Accounts payable | 129 | (259) | |||||||||
Other current assets | (64) | (113) | |||||||||
Other current liabilities | 44 | (499) | |||||||||
Change in pension and postretirement assets and liabilities, net | (176) | (120) | |||||||||
Net cash provided by operating activities | 2,315 | 1,882 | |||||||||
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | |||||||||||
Capital expenditures | (630) | (686) | |||||||||
Acquisition, net of cash received | (1,142) | (284) | |||||||||
Proceeds from divestitures including equity method investments | 1,357 | 166 | |||||||||
Other | 58 | 69 | |||||||||
Net cash used in investing activities | (357) | (735) | |||||||||
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | |||||||||||
Issuances of commercial paper, maturities greater than 90 days | 677 | 809 | |||||||||
Repayments of commercial paper, maturities greater than 90 days | (1,119) | (2,367) | |||||||||
Net issuances of other short-term borrowings | (2,001) | 1,637 | |||||||||
Long-term debt proceeds | 5,987 | 1,596 | |||||||||
Long-term debt repaid | (2,196) | (415) | |||||||||
Repurchase of Common Stock | (720) | (1,143) | |||||||||
Dividends paid | (1,227) | (1,131) | |||||||||
Other | 104 | 328 | |||||||||
Net cash used in financing activities | (495) | (686) | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1) | (24) | |||||||||
Cash, cash equivalents and restricted cash: | |||||||||||
Increase | 1,462 | 437 | |||||||||
Balance at beginning of period | 1,328 | 1,100 | |||||||||
Balance at end of period | $ | 2,790 | $ | 1,537 |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | |||||||
Net earnings | $ | 760 | $ | 920 | |||
Adjustments to reconcile net earnings to operating cash flows: | |||||||
Depreciation and amortization | 256 | 258 | |||||
Stock-based compensation expense | 28 | 32 | |||||
Deferred income tax provision/(benefit) | (26 | ) | 2 | ||||
Asset impairments and accelerated depreciation | — | 5 | |||||
Gains on equity method investment transactions | (71 | ) | (23 | ) | |||
Equity method investment net earnings | (138 | ) | (113 | ) | |||
Distributions from equity method investments | 165 | 160 | |||||
Other non-cash items, net | 126 | 16 | |||||
Change in assets and liabilities, net of acquisitions and divestitures: | |||||||
Receivables, net | (610 | ) | (570 | ) | |||
Inventories, net | (48 | ) | (36 | ) | |||
Accounts payable | 206 | (139 | ) | ||||
Other current assets | (217 | ) | 47 | ||||
Other current liabilities | (71 | ) | (45 | ) | |||
Change in pension and postretirement assets and liabilities, net | (76 | ) | (49 | ) | |||
Net cash provided by operating activities | 284 | 465 | |||||
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | |||||||
Capital expenditures | (214 | ) | (265 | ) | |||
Proceeds from divestitures including equity method investments | 185 | — | |||||
Other | (26 | ) | 42 | ||||
Net cash used in investing activities | (55 | ) | (223 | ) | |||
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | |||||||
Issuances of commercial paper, maturities greater than 90 days | 157 | 610 | |||||
Repayments of commercial paper, maturities greater than 90 days | (497 | ) | (1,549 | ) | |||
Net issuances of other short-term borrowings | 2,477 | 1,815 | |||||
Long-term debt proceeds | — | 597 | |||||
Long-term debt repaid | (670 | ) | (403 | ) | |||
Repurchase of Common Stock | (720 | ) | (646 | ) | |||
Dividends paid | (409 | ) | (380 | ) | |||
Other | 117 | 157 | |||||
Net cash provided by financing activities | 455 | 201 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (60 | ) | (1 | ) | |||
Cash, cash equivalents and restricted cash: | |||||||
Increase | 624 | 442 | |||||
Balance at beginning of period | 1,328 | 1,100 | |||||
Balance at end of period | $ | 1,952 | $ | 1,542 |
Allowance for Trade Receivables | Allowance for Other Current Receivables | Allowance for Long-Term Receivables | |||||||||||||||
(in millions) | |||||||||||||||||
Balance at January 1, 2020 | $ | (35) | $ | (44) | $ | (14) | |||||||||||
Current period provision for expected credit losses | (9) | (1) | (2) | ||||||||||||||
Write-offs charged against the allowance | 1 | 2 | 0 | ||||||||||||||
Currency | 2 | 3 | 5 | ||||||||||||||
Balance at September 30, 2020 | $ | (41) | $ | (40) | $ | (11) |
Allowance for Trade Receivables | Allowance for Other Current Receivables | Allowance for Long-Term Receivables | |||||||||
(in millions) | |||||||||||
Balance at January 1, 2020 | $ | (35 | ) | $ | (44 | ) | $ | (14 | ) | ||
Current period provision for expected credit losses | (5 | ) | 1 | (2 | ) | ||||||
Currency | 1 | 3 | 3 | ||||||||
Balance at March 31, 2020 | $ | (39 | ) | $ | (40 | ) | $ | (13 | ) |
As of September 30, 2020 | As of December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Raw materials | $ | 772 | $ | 707 | |||||||
Finished product | 2,183 | 1,953 | |||||||||
2,955 | 2,660 | ||||||||||
Inventory reserves | (115) | (114) | |||||||||
Inventories, net | $ | 2,840 | $ | 2,546 |
As of March 31, 2020 | As of December 31, 2019 | ||||||
(in millions) | |||||||
Raw materials | $ | 702 | $ | 707 | |||
Finished product | 1,848 | 1,953 | |||||
2,550 | 2,660 | ||||||
Inventory reserves | (109 | ) | (114 | ) | |||
Inventories, net | $ | 2,441 | $ | 2,546 |
As of September 30, 2020 | As of December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Land and land improvements | $ | 413 | $ | 422 | |||||||
Buildings and building improvements | 3,128 | 3,140 | |||||||||
Machinery and equipment | 11,419 | 11,295 | |||||||||
Construction in progress | 612 | 680 | |||||||||
15,572 | 15,537 | ||||||||||
Accumulated depreciation | (7,039) | (6,804) | |||||||||
Property, plant and equipment, net | $ | 8,533 | $ | 8,733 |
As of March 31, 2020 | As of December 31, 2019 | ||||||
(in millions) | |||||||
Land and land improvements | $ | 402 | $ | 422 | |||
Buildings and building improvements | 2,961 | 3,140 | |||||
Machinery and equipment | 10,669 | 11,295 | |||||
Construction in progress | 553 | 680 | |||||
14,585 | 15,537 | ||||||
Accumulated depreciation | (6,531 | ) | (6,804 | ) | |||
Property, plant and equipment, net | $ | 8,054 | $ | 8,733 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Latin America | $ | (13) | $ | 1 | $ | (13) | $ | 1 | |||||||||||||||
AMEA | 0 | (5) | 4 | (7) | |||||||||||||||||||
Europe | 1 | 42 | 3 | 45 | |||||||||||||||||||
North America | (1) | 1 | 1 | 5 | |||||||||||||||||||
Total | $ | (13) | $ | 39 | $ | (5) | $ | 44 |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Latin America | $ | — | $ | — | |||
AMEA | (1 | ) | 1 | ||||
Europe | 1 | 1 | |||||
North America | 1 | 3 | |||||
Non-cash property, plant and equipment write-downs | $ | 1 | $ | 5 |
As of September 30, 2020 | As of December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Latin America | $ | 654 | $ | 818 | |||||||
AMEA | 3,147 | 3,151 | |||||||||
Europe | 7,668 | 7,523 | |||||||||
North America | 9,866 | 9,356 | |||||||||
Goodwill | $ | 21,335 | $ | 20,848 |
As of March 31, 2020 | As of December 31, 2019 | ||||||
(in millions) | |||||||
Latin America | $ | 662 | $ | 818 | |||
AMEA | 2,981 | 3,151 | |||||
Europe | 7,272 | 7,523 | |||||
North America | 9,301 | 9,356 | |||||
Goodwill | $ | 20,216 | $ | 20,848 |
As of September 30, 2020 | As of December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Non-amortizable intangible assets | $ | 17,032 | $ | 17,296 | |||||||
Amortizable intangible assets | 2,831 | 2,374 | |||||||||
19,863 | 19,670 | ||||||||||
Accumulated amortization | (1,807) | (1,713) | |||||||||
Intangible assets, net | $ | 18,056 | $ | 17,957 |
As of March 31, 2020 | As of December 31, 2019 | ||||||
(in millions) | |||||||
Non-amortizable intangible assets | $ | 16,674 | $ | 17,296 | |||
Amortizable intangible assets | 2,267 | 2,374 | |||||
18,941 | 19,670 | ||||||
Accumulated amortization | (1,670 | ) | (1,713 | ) | |||
Intangible assets, net | $ | 17,271 | $ | 17,957 |
Goodwill | Intangible Assets, at cost | ||||||||||
(in millions) | |||||||||||
Balance at January 1, 2020 | $ | 20,848 | $ | 19,670 | |||||||
Currency | (42) | (216) | |||||||||
Acquisition | 529 | 553 | |||||||||
Asset impairments | 0 | (144) | |||||||||
Balance at September 30, 2020 | $ | 21,335 | $ | 19,863 |
Goodwill | Intangible Assets, at cost | ||||||
(in millions) | |||||||
Balance at January 1, 2020 | $ | 20,848 | $ | 19,670 | |||
Currency | (632 | ) | (729 | ) | |||
Balance at March 31, 2020 | $ | 20,216 | $ | 18,941 |
For the Three Months Ended September 30, 2019 | For the Nine Months Ended September 30, 2019 | ||||||||||||||||||||||
As Reported | As Recast | As Reported | As Recast | ||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||
Statements of Earnings | |||||||||||||||||||||||
Equity method investment net earnings | $ | 111 | $ | 114 | $ | 337 | $ | 389 | |||||||||||||||
Net earnings | 1,428 | 1,431 | 3,156 | 3,208 | |||||||||||||||||||
Net earnings attributable to Mondelēz International | 1,423 | 1,426 | 3,144 | 3,196 | |||||||||||||||||||
Earnings per share attributable to Mondelēz International: | |||||||||||||||||||||||
Basic EPS | $ | 0.98 | $ | 0.99 | $ | 2.17 | $ | 2.21 | |||||||||||||||
Diluted EPS | $ | 0.98 | $ | 0.98 | $ | 2.15 | $ | 2.19 | |||||||||||||||
Statements of Other Comprehensive Earnings | |||||||||||||||||||||||
Currency translation adjustment | $ | (314) | $ | (347) | $ | (157) | $ | (154) | |||||||||||||||
Pension and other benefit plans | 86 | 89 | 150 | 144 | |||||||||||||||||||
Derivative cash flow hedges | 43 | 36 | (88) | (91) | |||||||||||||||||||
Total other comprehensive earnings/(losses) | (185) | (222) | (95) | (101) | |||||||||||||||||||
Comprehensive earnings/(losses) attributable to Mondelēz International | 1,247 | 1,213 | 3,057 | 3,103 |
As of December 31, 2019 | ||||||||||||||
As Reported | As Recast | |||||||||||||
(in millions) | ||||||||||||||
Balance Sheet | ||||||||||||||
Equity method investments | $ | 7,212 | $ | 7,178 | ||||||||||
Total assets | 64,549 | 64,515 | ||||||||||||
Retained earnings | 26,653 | 26,615 | ||||||||||||
Accumulated other comprehensive losses | (10,258) | (10,254) | ||||||||||||
Total Mondelēz International shareholders' equity | 27,275 | 27,241 | ||||||||||||
Total equity | 27,351 | 27,317 |
Severance and related costs | Asset Write-downs | Total | |||||||||||||||
(in millions) | |||||||||||||||||
Liability balance, January 1, 2020 | $ | 301 | $ | 0 | $ | 301 | |||||||||||
Charges | 116 | (5) | 111 | ||||||||||||||
Cash spent | (113) | 0 | (113) | ||||||||||||||
Non-cash settlements/adjustments | (6) | 5 | (1) | ||||||||||||||
Currency | (2) | 0 | (2) | ||||||||||||||
Liability balance, September 30, 2020 | $ | 296 | $ | 0 | $ | 296 |
Severance and related costs | Asset Write-downs | Total | |||||||||
(in millions) | |||||||||||
Liability balance, January 1, 2020 | $ | 301 | $ | — | $ | 301 | |||||
Charges | 14 | 1 | 15 | ||||||||
Cash spent | (37 | ) | — | (37 | ) | ||||||
Non-cash settlements/adjustments | (2 | ) | (1 | ) | (3 | ) | |||||
Currency | (11 | ) | — | (11 | ) | ||||||
Liability balance, March 31, 2020 | $ | 265 | $ | — | $ | 265 |
Latin America | AMEA | Europe | North America | Corporate | Total | ||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Restructuring Costs | $ | 1 | $ | 21 | $ | 40 | $ | 3 | $ | 3 | $ | 68 | |||||||||||||||||||||||
Implementation Costs | 4 | 6 | 15 | 15 | 6 | 46 | |||||||||||||||||||||||||||||
Total | $ | 5 | $ | 27 | $ | 55 | $ | 18 | $ | 9 | $ | 114 | |||||||||||||||||||||||
For the Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
Restructuring Costs | $ | 3 | $ | (3) | $ | 73 | $ | 1 | $ | 3 | $ | 77 | |||||||||||||||||||||||
Implementation Costs | 8 | 9 | 27 | 9 | 22 | 75 | |||||||||||||||||||||||||||||
Total | $ | 11 | $ | 6 | $ | 100 | $ | 10 | $ | 25 | $ | 152 | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Restructuring Costs | $ | 19 | $ | 25 | $ | 52 | $ | 3 | $ | 12 | $ | 111 | |||||||||||||||||||||||
Implementation Costs | 12 | 12 | 40 | 36 | 41 | 141 | |||||||||||||||||||||||||||||
Total | $ | 31 | $ | 37 | $ | 92 | $ | 39 | $ | 53 | $ | 252 | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||
Restructuring Costs | $ | 10 | $ | 6 | $ | 84 | $ | 7 | $ | 10 | $ | 117 | |||||||||||||||||||||||
Implementation Costs | 36 | 22 | 55 | 22 | 58 | 193 | |||||||||||||||||||||||||||||
Total | $ | 46 | $ | 28 | $ | 139 | $ | 29 | $ | 68 | $ | 310 | |||||||||||||||||||||||
Total Project (Inception to Date) | |||||||||||||||||||||||||||||||||||
Restructuring Costs | $ | 536 | $ | 560 | $ | 1,128 | $ | 472 | $ | 141 | $ | 2,837 | |||||||||||||||||||||||
Implementation Costs | 281 | 218 | 488 | 420 | 348 | 1,755 | |||||||||||||||||||||||||||||
Total | $ | 817 | $ | 778 | $ | 1,616 | $ | 892 | $ | 489 | $ | 4,592 |
Latin America | AMEA | Europe | North America (1) | Corporate (2) | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Three Months Ended March 31, 2020 | |||||||||||||||||||||||
Restructuring Costs | $ | 4 | $ | (1 | ) | $ | 3 | $ | 2 | $ | 7 | $ | 15 | ||||||||||
Implementation Costs | 7 | 3 | 14 | 10 | 9 | 43 | |||||||||||||||||
Total | $ | 11 | $ | 2 | $ | 17 | $ | 12 | $ | 16 | $ | 58 | |||||||||||
For the Three Months Ended March 31, 2019 | |||||||||||||||||||||||
Restructuring Costs | $ | — | $ | 6 | $ | — | $ | 6 | $ | 8 | $ | 20 | |||||||||||
Implementation Costs | 15 | 7 | 11 | 4 | 13 | 50 | |||||||||||||||||
Total | $ | 15 | $ | 13 | $ | 11 | $ | 10 | $ | 21 | $ | 70 | |||||||||||
Total Project (3) | |||||||||||||||||||||||
Restructuring Costs | $ | 521 | $ | 534 | $ | 1,079 | $ | 471 | $ | 136 | $ | 2,741 | |||||||||||
Implementation Costs | 276 | 209 | 462 | 394 | 316 | 1,657 | |||||||||||||||||
Total | $ | 797 | $ | 743 | $ | 1,541 | $ | 865 | $ | 452 | $ | 4,398 |
As of September 30, 2020 | As of December 31, 2019 | ||||||||||||||||||||||
Amount Outstanding | Weighted- Average Rate | Amount Outstanding | Weighted- Average Rate | ||||||||||||||||||||
(in millions, except percentages) | |||||||||||||||||||||||
Commercial paper | $ | 139 | 0.4 | % | $ | 2,581 | 2.0 | % | |||||||||||||||
Bank loans | 60 | 4.9 | % | 57 | 5.2 | % | |||||||||||||||||
Total short-term borrowings | $ | 199 | $ | 2,638 |
As of March 31, 2020 | As of December 31, 2019 | ||||||||||||
Amount Outstanding | Weighted- Average Rate | Amount Outstanding | Weighted- Average Rate | ||||||||||
(in millions, except percentages) | |||||||||||||
Commercial paper | $ | 3,695 | 2.0 | % | $ | 2,581 | 2.0 | % | |||||
Credit facility borrowings | 1,000 | 1.7 | % | — | — | ||||||||
Bank loans | 69 | 5.2 | % | 57 | 5.2 | % | |||||||
Total short-term borrowings | $ | 4,764 | $ | 2,638 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Interest expense, debt | $ | 104 | $ | 121 | $ | 322 | $ | 371 | |||||||||||||||
Loss related to interest rate swaps | 0 | 111 | 103 | 111 | |||||||||||||||||||
Other (income)/expense, net | (15) | (27) | (61) | (96) | |||||||||||||||||||
Interest and other expense, net | $ | 89 | $ | 205 | $ | 364 | $ | 386 |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Interest expense, debt | $ | 110 | $ | 123 | |||
Loss related to interest rate swaps | 103 | — | |||||
Other (income)/expense, net | (23 | ) | (43 | ) | |||
Interest and other expense, net | $ | 190 | $ | 80 |
As of September 30, 2020 | As of December 31, 2019 | ||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Derivatives designated as accounting hedges: | |||||||||||||||||||||||
Interest rate contracts | $ | 13 | $ | 176 | $ | 19 | $ | 190 | |||||||||||||||
Net investment hedge derivative contracts (1) | 275 | 74 | 312 | 65 | |||||||||||||||||||
$ | 288 | $ | 250 | $ | 331 | $ | 255 | ||||||||||||||||
Derivatives not designated as accounting hedges: | |||||||||||||||||||||||
Currency exchange contracts | $ | 88 | $ | 74 | $ | 67 | $ | 50 | |||||||||||||||
Commodity contracts | 170 | 162 | 201 | 120 | |||||||||||||||||||
$ | 258 | $ | 236 | $ | 268 | $ | 170 | ||||||||||||||||
Total fair value | $ | 546 | $ | 486 | $ | 599 | $ | 425 |
As of March 31, 2020 | As of December 31, 2019 | ||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||
(in millions) | |||||||||||||||
Derivatives designated as accounting hedges: | |||||||||||||||
Interest rate contracts | $ | 73 | $ | 13 | $ | 19 | $ | 190 | |||||||
Net investment hedge derivative contracts (1) | 641 | — | 312 | 65 | |||||||||||
$ | 714 | $ | 13 | $ | 331 | $ | 255 | ||||||||
Derivatives not designated as accounting hedges: | |||||||||||||||
Currency exchange contracts | $ | 158 | $ | 136 | $ | 67 | $ | 50 | |||||||
Commodity contracts | 180 | 342 | 201 | 120 | |||||||||||
$ | 338 | $ | 478 | $ | 268 | $ | 170 | ||||||||
Total fair value | $ | 1,052 | $ | 491 | $ | 599 | $ | 425 |
As of September 30, 2020 | |||||||||||||||||||||||
Total Fair Value of Net Asset/(Liability) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Currency exchange contracts | $ | 14 | $ | 0 | $ | 14 | $ | 0 | |||||||||||||||
Commodity contracts | 8 | 18 | (10) | 0 | |||||||||||||||||||
Interest rate contracts | (163) | 0 | (163) | 0 | |||||||||||||||||||
Net investment hedge contracts | 201 | 0 | 201 | 0 | |||||||||||||||||||
Total derivatives | $ | 60 | $ | 18 | $ | 42 | $ | 0 |
As of March 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Total Fair Value of Net Asset/(Liability) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value of Net Asset/(Liability) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
Currency exchange contracts | $ | 22 | $ | — | $ | 22 | $ | — | Currency exchange contracts | $ | 17 | $ | 0 | $ | 17 | $ | 0 | |||||||||||||||||||||
Commodity contracts | (162 | ) | (29 | ) | (133 | ) | — | Commodity contracts | 81 | 27 | 54 | 0 | ||||||||||||||||||||||||||
Interest rate contracts | 60 | — | 60 | — | Interest rate contracts | (171) | 0 | (171) | 0 | |||||||||||||||||||||||||||||
Net investment hedge contracts | 641 | — | 641 | — | Net investment hedge contracts | 247 | 0 | 247 | 0 | |||||||||||||||||||||||||||||
Total derivatives | $ | 561 | $ | (29 | ) | $ | 590 | $ | — | Total derivatives | $ | 174 | $ | 27 | $ | 147 | $ | 0 |
As of December 31, 2019 | |||||||||||||||
Total Fair Value of Net Asset/(Liability) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
(in millions) | |||||||||||||||
Currency exchange contracts | $ | 17 | $ | — | $ | 17 | $ | — | |||||||
Commodity contracts | 81 | 27 | 54 | — | |||||||||||
Interest rate contracts | (171 | ) | — | (171 | ) | — | |||||||||
Net investment hedge contracts | 247 | — | 247 | — | |||||||||||
Total derivatives | $ | 174 | $ | 27 | $ | 147 | $ | — |
Notional Amount | |||||||||||
As of September 30, 2020 | As of December 31, 2019 | ||||||||||
(in millions) | |||||||||||
Currency exchange contracts: | |||||||||||
Intercompany loans and forecasted interest payments | $ | 2,206 | $ | 2,474 | |||||||
Forecasted transactions | 4,117 | 3,993 | |||||||||
Commodity contracts | 8,136 | 7,238 | |||||||||
Interest rate contracts | 3,500 | 5,250 | |||||||||
Net investment hedges: | |||||||||||
Net investment hedge derivative contracts | 6,168 | 6,864 | |||||||||
Non-U.S. dollar debt designated as net investment hedges | |||||||||||
Euro notes | 3,592 | 3,436 | |||||||||
British pound sterling notes | 340 | 349 | |||||||||
Swiss franc notes | 1,276 | 1,448 | |||||||||
Canadian dollar notes | 450 | 462 |
Notional Amount | |||||||
As of March 31, 2020 | As of December 31, 2019 | ||||||
(in millions) | |||||||
Currency exchange contracts: | |||||||
Intercompany loans and forecasted interest payments | $ | 2,544 | $ | 2,474 | |||
Forecasted transactions | 3,869 | 3,993 | |||||
Commodity contracts | 7,571 | 7,238 | |||||
Interest rate contracts | 4,250 | 5,250 | |||||
Net investment hedges: | |||||||
Net investment hedge derivative contracts | 6,652 | 6,864 | |||||
Non-U.S. dollar debt designated as net investment hedges | |||||||
Euro notes | 3,381 | 3,436 | |||||
British pound sterling notes | 327 | 349 | |||||
Swiss franc notes | 1,223 | 1,448 | |||||
Canadian dollar notes | 427 | 462 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Accumulated (loss)/gain at beginning of period | $ | (154) | $ | (295) | $ | (213) | $ | (168) | |||||||||||||||
Transfer of realized losses/(gains) in fair value to earnings | 65 | 111 | 153 | 123 | |||||||||||||||||||
Unrealized (loss)/gain in fair value | (69) | (75) | (98) | (214) | |||||||||||||||||||
Accumulated (loss)/gain at end of period | $ | (158) | $ | (259) | $ | (158) | $ | (259) |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Accumulated (loss)/gain at beginning of period | $ | (212 | ) | $ | (167 | ) | |
Transfer of realized losses/(gains) in fair value to earnings | 81 | — | |||||
Unrealized (loss)/gain in fair value | (21 | ) | (69 | ) | |||
Accumulated (loss)/gain at end of period | $ | (152 | ) | $ | (236 | ) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Interest rate contracts | $ | (65) | $ | (111) | $ | (153) | $ | (123) | |||||||||||||||
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Interest rate contracts | $ | (81 | ) | $ | — |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Currency exchange contracts – forecasted transactions | $ | 0 | $ | 0 | $ | (1) | $ | 3 | |||||||||||||||
Interest rate contracts | (69) | (75) | (97) | (217) | |||||||||||||||||||
Total | $ | (69) | $ | (75) | $ | (98) | $ | (214) |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Interest rate contracts | $ | (21 | ) | $ | (69 | ) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
After-tax gain/(loss) on NIH contracts(1) | $ | (223) | $ | 193 | $ | (6) | $ | 260 |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
After-tax gain/(loss) on NIH contracts(1) | $ | 332 | $ | 14 |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Amounts excluded from the assessment of hedge effectiveness(1) | $ | 33 | $ | 33 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Amounts excluded from the assessment of hedge effectiveness(1) | $ | 28 | $ | 34 | $ | 92 | $ | 101 |
For the Three Months Ended March 31, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||
Euro notes | $ | 42 | $ | 58 | Euro notes | $ | (122) | $ | 111 | $ | (135) | $ | 133 | |||||||||||||||||
British pound sterling notes | 17 | (6 | ) | British pound sterling notes | (10) | 8 | 7 | 9 | ||||||||||||||||||||||
Swiss franc notes | (6 | ) | 13 | Swiss franc notes | (27) | 24 | (47) | 16 | ||||||||||||||||||||||
Canadian notes | 27 | (7 | ) | Canadian notes | (6) | 4 | 9 | (10) |
For the Three Months Ended March 31, | Location of Gain/(Loss) Recognized in Earnings | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | Location of Gain/(Loss) Recognized in Earnings | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
Currency exchange contracts: | Currency exchange contracts: | |||||||||||||||||||||||||||||||||||||
Intercompany loans and forecasted interest payments | $ | (73 | ) | $ | 61 | Interest and other expense, net | Intercompany loans and forecasted interest payments | $ | 7 | $ | 60 | $ | (73) | $ | 71 | Interest and other expense, net | ||||||||||||||||||||||
Forecasted transactions | 26 | 5 | Cost of sales | Forecasted transactions | 28 | 50 | 50 | 30 | Cost of sales | |||||||||||||||||||||||||||||
Forecasted transactions | 1 | — | Interest and other expense, net | Forecasted transactions | 6 | (1) | (3) | (2) | Interest and other expense, net | |||||||||||||||||||||||||||||
Forecasted transactions | (1 | ) | — | Selling, general and administrative expenses | Forecasted transactions | (1) | (1) | (2) | (6) | Selling, general and administrative expenses | ||||||||||||||||||||||||||||
Commodity contracts | (197 | ) | 14 | Cost of sales | Commodity contracts | 136 | (38) | (47) | 28 | Cost of sales | ||||||||||||||||||||||||||||
Total | $ | (244 | ) | $ | 80 | Total | $ | 176 | $ | 70 | $ | (75) | $ | 121 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
For the Three Months Ended September 30, | For the Three Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 1 | $ | 10 | $ | 30 | $ | 30 | |||||||||||||||
Interest cost | 12 | 15 | 37 | 49 | |||||||||||||||||||
Expected return on plan assets | (19) | (22) | (100) | (99) | |||||||||||||||||||
Amortization: | |||||||||||||||||||||||
Net loss from experience differences | 5 | 9 | 29 | 36 | |||||||||||||||||||
Prior service cost/(benefit) | 1 | 0 | (2) | (2) | |||||||||||||||||||
Settlement losses and other expenses (1) | 3 | 5 | 0 | 0 | |||||||||||||||||||
Net periodic pension cost | $ | 3 | $ | 17 | $ | (6) | $ | 14 | |||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||
For the Nine Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 4 | $ | 28 | $ | 89 | $ | 91 | |||||||||||||||
Interest cost | 38 | 46 | 110 | 151 | |||||||||||||||||||
Expected return on plan assets | (58) | (66) | (295) | (303) | |||||||||||||||||||
Amortization: | |||||||||||||||||||||||
Net loss from experience differences | 13 | 19 | 86 | 111 | |||||||||||||||||||
Prior service cost/(credit) | 1 | 1 | (5) | (5) | |||||||||||||||||||
Settlement losses and other expenses (1) | 15 | 13 | 2 | 3 | |||||||||||||||||||
Net periodic pension cost | $ | 13 | $ | 41 | $ | (13) | $ | 48 |
U.S. Plans | Non-U.S. Plans | ||||||||||||||
For the Three Months Ended March 31, | For the Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 1 | $ | 9 | $ | 30 | $ | 31 | |||||||
Interest cost | 13 | 16 | 37 | 51 | |||||||||||
Expected return on plan assets | (19 | ) | (22 | ) | (99 | ) | (103 | ) | |||||||
Amortization: | |||||||||||||||
Net loss from experience differences | 4 | 5 | 29 | 38 | |||||||||||
Prior service cost/(credit) | — | — | (2 | ) | (2 | ) | |||||||||
Settlement losses and other expenses | 4 | 4 | 2 | — | |||||||||||
Net periodic pension cost | $ | 3 | $ | 12 | $ | (3 | ) | $ | 15 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 4 | $ | 4 | |||||||||||||||
Interest cost | 3 | 4 | 9 | 11 | |||||||||||||||||||
Amortization: | |||||||||||||||||||||||
Net loss from experience differences | 1 | 2 | 5 | 5 | |||||||||||||||||||
Prior service credit | (8) | (10) | (23) | (29) | |||||||||||||||||||
Net periodic postretirement health care benefit | $ | (3) | $ | (3) | $ | (5) | $ | (9) |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Service cost | $ | 1 | $ | 1 | |||
Interest cost | 3 | 4 | |||||
Amortization: | |||||||
Net loss from experience differences | 3 | 2 | |||||
Prior service credit | (8 | ) | (10 | ) | |||
Net periodic postretirement health care benefit | $ | (1 | ) | $ | (3 | ) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 4 | $ | 4 | |||||||||||||||
Interest cost | 1 | 1 | 3 | 3 | |||||||||||||||||||
Amortization of net gains | (1) | (1) | (3) | (2) | |||||||||||||||||||
Net periodic postemployment cost | $ | 1 | $ | 1 | $ | 4 | $ | 5 |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Service cost | $ | 1 | $ | 1 | |||
Interest cost | 1 | 1 | |||||
Amortization of net gains | (1 | ) | (1 | ) | |||
Net periodic postemployment cost | $ | 1 | $ | 1 |
Shares Subject to Option | Weighted- Average Exercise or Grant Price Per Share | Average Remaining Contractual Term | Aggregate Intrinsic Value | ||||||||||||||||||||
Balance at January 1, 2020 | 33,855,948 | $36.19 | 5 years | $ | 640 | million | |||||||||||||||||
Annual grant to eligible employees | 2,280,440 | 59.04 | |||||||||||||||||||||
Additional options issued | 131,970 | 49.23 | |||||||||||||||||||||
Total options granted | 2,412,410 | 58.50 | |||||||||||||||||||||
Options exercised (1) | (6,737,525) | 30.71 | $ | 173 | million | ||||||||||||||||||
Options canceled | (558,246) | 44.10 | |||||||||||||||||||||
Balance at September 30, 2020 | 28,972,587 | 39.16 | 5 years | $ | 533 | million |
Shares Subject to Option | Weighted- Average Exercise or Grant Price Per Share | Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||
Balance at January 1, 2020 | 33,855,948 | $36.19 | 5 years | $ | 640 | million | ||||
Annual grant to eligible employees | 2,280,440 | 59.04 | ||||||||
Additional options issued | 34,350 | 54.59 | ||||||||
Total options granted | 2,314,790 | 58.97 | ||||||||
Options exercised (1) | (4,210,414 | ) | 28.62 | $ | 120 | million | ||||
Options canceled | (262,968 | ) | 41.20 | |||||||
Balance at March 31, 2020 | 31,697,356 | 38.31 | 6 years | $ | 378 | million |
Number of Shares | Grant Date | Weighted-Average Fair Value Per Share (3) | Weighted-Average Aggregate Fair Value (3) | ||||||||||||||||||||
Balance at January 1, 2020 | 5,661,945 | $46.90 | |||||||||||||||||||||
Annual grant to eligible employees: | Feb. 20, 2020 | ||||||||||||||||||||||
Performance share units | 825,230 | 65.83 | |||||||||||||||||||||
Deferred stock units | 545,550 | 59.04 | |||||||||||||||||||||
Additional shares granted (1) | 371,761 | Various | 56.82 | ||||||||||||||||||||
Total shares granted | 1,742,541 | 61.78 | $ | 108 | million | ||||||||||||||||||
Vested (2) | (1,718,365) | 43.04 | $ | 74 | million | ||||||||||||||||||
Forfeited | (422,229) | 47.33 | |||||||||||||||||||||
Balance at September 30, 2020 | 5,263,892 | 53.05 |
Number of Shares | Grant Date | Weighted-Average Fair Value Per Share (3) | Weighted-Average Aggregate Fair Value (3) | |||||||
Balance at January 1, 2020 | 5,661,945 | $46.90 | ||||||||
Annual grant to eligible employees: | Feb. 20, 2020 | |||||||||
Performance share units | 825,230 | 65.83 | ||||||||
Deferred stock units | 545,550 | 59.04 | ||||||||
Additional shares granted (1) | 226,700 | Various | 57.53 | |||||||
Total shares granted | 1,597,480 | 62.77 | $ | 100 | million | |||||
Vested (2) | (1,585,787 | ) | 43.10 | $ | 68 | million | ||||
Forfeited | (287,626 | ) | 44.78 | |||||||
Balance at March 31, 2020 | 5,386,012 | 52.84 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Currency Translation Adjustments: | |||||||||||||||||||||||
Balance at beginning of period | $ | (9,609) | $ | (8,430) | $ | (8,320) | $ | (8,622) | |||||||||||||||
Currency translation adjustments | 184 | (316) | (1,071) | (144) | |||||||||||||||||||
Reclassification to earnings related to: | |||||||||||||||||||||||
Equity method investment transactions (1) | 0 | 0 | 29 | 0 | |||||||||||||||||||
Tax (expense)/benefit | 29 | (31) | (35) | (10) | |||||||||||||||||||
Other comprehensive earnings/(losses) | 213 | (347) | (1,077) | (154) | |||||||||||||||||||
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests | (8) | 9 | (7) | 8 | |||||||||||||||||||
Balance at end of period | (9,404) | (8,768) | (9,404) | (8,768) | |||||||||||||||||||
Pension and Other Benefit Plans: | |||||||||||||||||||||||
Balance at beginning of period | $ | (1,656) | $ | (1,799) | $ | (1,721) | $ | (1,854) | |||||||||||||||
Net actuarial gain/(loss) arising during period | 2 | 4 | (22) | (28) | |||||||||||||||||||
Tax (expense)/benefit on net actuarial gain/(loss) | 0 | (1) | (1) | 6 | |||||||||||||||||||
Losses/(gains) reclassified into net earnings: | |||||||||||||||||||||||
Amortization of experience losses and prior service costs (2) | 25 | 34 | 74 | 100 | |||||||||||||||||||
Settlement losses and other expenses (1) | 3 | 5 | 18 | 33 | |||||||||||||||||||
Tax expense/(benefit) on reclassifications (3) | (7) | (7) | (22) | (25) | |||||||||||||||||||
Currency impact | (60) | 54 | (19) | 58 | |||||||||||||||||||
Other comprehensive earnings/(losses) | (37) | 89 | 28 | 144 | |||||||||||||||||||
Balance at end of period | (1,693) | (1,710) | (1,693) | (1,710) | |||||||||||||||||||
Derivative Cash Flow Hedges: | |||||||||||||||||||||||
Balance at beginning of period | $ | (154) | $ | (295) | $ | (213) | $ | (168) | |||||||||||||||
Net derivative gains/(losses) | (67) | (74) | (123) | (232) | |||||||||||||||||||
Tax (expense)/benefit on net derivative gain/(loss) | 1 | 10 | 27 | 28 | |||||||||||||||||||
Losses/(gains) reclassified into net earnings: | |||||||||||||||||||||||
Interest rate contracts (1) (4) | 66 | 111 | 179 | 123 | |||||||||||||||||||
Tax expense/(benefit) on reclassifications (3) | (1) | 0 | (26) | 0 | |||||||||||||||||||
Currency impact | (3) | (11) | (2) | (10) | |||||||||||||||||||
Other comprehensive earnings/(losses) | (4) | 36 | 55 | (91) | |||||||||||||||||||
Balance at end of period | (158) | (259) | (158) | (259) | |||||||||||||||||||
Accumulated other comprehensive income attributable to Mondelēz International: | |||||||||||||||||||||||
Balance at beginning of period | $ | (11,419) | $ | (10,524) | $ | (10,254) | $ | (10,644) | |||||||||||||||
Total other comprehensive earnings/(losses) | 172 | (222) | (994) | (101) | |||||||||||||||||||
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests | (8) | 9 | (7) | 8 | |||||||||||||||||||
Other comprehensive earnings/(losses) attributable to Mondelēz International | 164 | (213) | (1,001) | (93) | |||||||||||||||||||
Balance at end of period | $ | (11,255) | $ | (10,737) | $ | (11,255) | $ | (10,737) |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Currency Translation Adjustments: | |||||||
Balance at beginning of period | $ | (8,302 | ) | $ | (8,603 | ) | |
Currency translation adjustments | (1,421 | ) | 168 | ||||
Tax (expense)/benefit | (90 | ) | 22 | ||||
Other comprehensive earnings/(losses) | (1,511 | ) | 190 | ||||
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests | 5 | 1 | |||||
Balance at end of period | (9,808 | ) | (8,412 | ) | |||
Pension and Other Benefit Plans: | |||||||
Balance at beginning of period | $ | (1,744 | ) | $ | (1,860 | ) | |
Net actuarial gain/(loss) arising during period | (5 | ) | (24 | ) | |||
Tax (expense)/benefit on net actuarial gain/(loss) | — | 6 | |||||
Losses/(gains) reclassified into net earnings: | |||||||
Amortization of experience losses and prior service costs (1) | 25 | 32 | |||||
Settlement losses and other expenses (1) | 6 | 4 | |||||
Tax expense/(benefit) on reclassifications (2) | (8 | ) | (7 | ) | |||
Currency impact | 61 | (1 | ) | ||||
Other comprehensive earnings/(losses) | 79 | 10 | |||||
Balance at end of period | (1,665 | ) | (1,850 | ) | |||
Derivative Cash Flow Hedges: | |||||||
Balance at beginning of period | $ | (212 | ) | $ | (167 | ) | |
Net derivative gains/(losses) | (37 | ) | (77 | ) | |||
Tax (expense)/benefit on net derivative gain/(loss) | 14 | 8 | |||||
Losses/(gains) reclassified into net earnings: | |||||||
Interest rate contracts (3) | 105 | — | |||||
Tax expense/(benefit) on reclassifications (2) | (24 | ) | — | ||||
Currency impact | 2 | — | |||||
Other comprehensive earnings/(losses) | 60 | (69 | ) | ||||
Balance at end of period | (152 | ) | (236 | ) | |||
Accumulated other comprehensive income attributable to Mondelēz International: | |||||||
Balance at beginning of period | $ | (10,258 | ) | $ | (10,630 | ) | |
Total other comprehensive earnings/(losses) | (1,372 | ) | 131 | ||||
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests | 5 | 1 | |||||
Other comprehensive earnings/(losses) attributable to Mondelēz International | (1,367 | ) | 132 | ||||
Balance at end of period | $ | (11,625 | ) | $ | (10,498 | ) |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||
Net earnings | $ | 1,122 | $ | 1,431 | $ | 2,410 | $ | 3,208 | |||||||||||||||
Noncontrolling interest earnings | (3) | (5) | (11) | (12) | |||||||||||||||||||
Net earnings attributable to Mondelēz International | $ | 1,119 | $ | 1,426 | $ | 2,399 | $ | 3,196 | |||||||||||||||
Weighted-average shares for basic EPS | 1,432 | 1,445 | 1,432 | 1,446 | |||||||||||||||||||
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares | 10 | 13 | 10 | 13 | |||||||||||||||||||
Weighted-average shares for diluted EPS | 1,442 | 1,458 | 1,442 | 1,459 | |||||||||||||||||||
Basic earnings per share attributable to Mondelēz International | $ | 0.78 | $ | 0.99 | $ | 1.68 | $ | 2.21 | |||||||||||||||
Diluted earnings per share attributable to Mondelēz International | $ | 0.78 | $ | 0.98 | $ | 1.66 | $ | 2.19 |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions, except per share data) | |||||||
Net earnings | $ | 760 | $ | 920 | |||
Noncontrolling interest earnings | (7 | ) | (6 | ) | |||
Net earnings attributable to Mondelēz International | $ | 753 | $ | 914 | |||
Weighted-average shares for basic EPS | 1,434 | 1,449 | |||||
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares | 11 | 12 | |||||
Weighted-average shares for diluted EPS | 1,445 | 1,461 | |||||
Basic earnings per share attributable to Mondelēz International | $ | 0.53 | $ | 0.63 | |||
Diluted earnings per share attributable to Mondelēz International | $ | 0.52 | $ | 0.63 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Latin America | $ | 610 | $ | 736 | $ | 1,847 | $ | 2,273 | |||||||||||||||
AMEA | 1,470 | 1,419 | 4,209 | 4,312 | |||||||||||||||||||
Europe | 2,526 | 2,377 | 7,248 | 7,175 | |||||||||||||||||||
North America | 2,059 | 1,823 | 5,979 | 5,195 | |||||||||||||||||||
Net revenues | $ | 6,665 | $ | 6,355 | $ | 19,283 | $ | 18,955 | |||||||||||||||
Earnings before income taxes: | |||||||||||||||||||||||
Operating income: | |||||||||||||||||||||||
Latin America | $ | 77 | $ | 84 | $ | 149 | $ | 250 | |||||||||||||||
AMEA | 210 | 188 | 615 | 635 | |||||||||||||||||||
Europe | 432 | 331 | 1,201 | 1,239 | |||||||||||||||||||
North America | 387 | 370 | 1,192 | 1,096 | |||||||||||||||||||
Unrealized gains/(losses) on hedging activities (mark-to-market impacts) | 145 | 20 | (42) | 69 | |||||||||||||||||||
General corporate expenses | (66) | (76) | (253) | (264) | |||||||||||||||||||
Amortization of intangibles | (50) | (43) | (143) | (130) | |||||||||||||||||||
Net gain on divestiture | 0 | 3 | 0 | 44 | |||||||||||||||||||
Acquisition-related costs | 0 | (1) | (15) | (2) | |||||||||||||||||||
Operating income | 1,135 | 876 | 2,704 | 2,937 | |||||||||||||||||||
Benefit plan non-service income | 38 | 13 | 102 | 42 | |||||||||||||||||||
Interest and other expense, net | (89) | (205) | (364) | (386) | |||||||||||||||||||
Earnings before income taxes | $ | 1,084 | $ | 684 | $ | 2,442 | $ | 2,593 |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Net revenues: | |||||||
Latin America | $ | 726 | $ | 800 | |||
AMEA | 1,502 | 1,541 | |||||
Europe | 2,584 | 2,551 | |||||
North America | 1,895 | 1,646 | |||||
Net revenues | $ | 6,707 | $ | 6,538 | |||
Earnings before income taxes: | |||||||
Operating income: | |||||||
Latin America | $ | 78 | $ | 98 | |||
AMEA | 234 | 256 | |||||
Europe | 472 | 500 | |||||
North America | 381 | 319 | |||||
Unrealized (losses)/gains on hedging activities (mark-to-market impacts) | (185 | ) | 16 | ||||
General corporate expenses | (76 | ) | (109 | ) | |||
Amortization of intangibles | (43 | ) | (44 | ) | |||
Acquisition-related costs | (5 | ) | — | ||||
Operating income | 856 | 1,036 | |||||
Benefit plan non-service income | 33 | 17 | |||||
Interest and other expense, net | (190 | ) | (80 | ) | |||
Earnings before income taxes | $ | 699 | $ | 973 |
For the Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Biscuits | $ | 172 | $ | 550 | $ | 803 | $ | 1,768 | $ | 3,293 | |||||||||||||||||||
Chocolate | 151 | 533 | 1,255 | 61 | 2,000 | ||||||||||||||||||||||||
Gum & Candy | 103 | 173 | 153 | 230 | 659 | ||||||||||||||||||||||||
Beverages | 102 | 109 | 23 | 0 | 234 | ||||||||||||||||||||||||
Cheese & Grocery | 82 | 105 | 292 | 0 | 479 | ||||||||||||||||||||||||
Total net revenues | $ | 610 | $ | 1,470 | $ | 2,526 | $ | 2,059 | $ | 6,665 | |||||||||||||||||||
For the Three Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Biscuits | $ | 186 | $ | 495 | $ | 752 | $ | 1,514 | $ | 2,947 | |||||||||||||||||||
Chocolate | 164 | 526 | 1,177 | 61 | 1,928 | ||||||||||||||||||||||||
Gum & Candy | 212 | 213 | 165 | 248 | 838 | ||||||||||||||||||||||||
Beverages | 93 | 103 | 21 | 0 | 217 | ||||||||||||||||||||||||
Cheese & Grocery | 81 | 82 | 262 | 0 | 425 | ||||||||||||||||||||||||
Total net revenues | $ | 736 | $ | 1,419 | $ | 2,377 | $ | 1,823 | $ | 6,355 | |||||||||||||||||||
For the Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Biscuits | $ | 500 | $ | 1,516 | $ | 2,243 | $ | 5,170 | $ | 9,429 | |||||||||||||||||||
Chocolate | 464 | 1,437 | 3,619 | 156 | 5,676 | ||||||||||||||||||||||||
Gum & Candy | 350 | 511 | 461 | 653 | 1,975 | ||||||||||||||||||||||||
Beverages | 294 | 437 | 68 | 0 | 799 | ||||||||||||||||||||||||
Cheese & Grocery | 239 | 308 | 857 | 0 | 1,404 | ||||||||||||||||||||||||
Total net revenues | $ | 1,847 | $ | 4,209 | $ | 7,248 | $ | 5,979 | $ | 19,283 | |||||||||||||||||||
For the Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||
Latin America | AMEA | Europe | North America | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Biscuits | $ | 542 | $ | 1,361 | $ | 2,253 | $ | 4,337 | $ | 8,493 | |||||||||||||||||||
Chocolate | 551 | 1,521 | 3,543 | 162 | 5,777 | ||||||||||||||||||||||||
Gum & Candy | 621 | 662 | 519 | 696 | 2,498 | ||||||||||||||||||||||||
Beverages | 324 | 444 | 67 | 0 | 835 | ||||||||||||||||||||||||
Cheese & Grocery | 235 | 324 | 793 | 0 | 1,352 | ||||||||||||||||||||||||
Total net revenues | $ | 2,273 | $ | 4,312 | $ | 7,175 | $ | 5,195 | $ | 18,955 |
For the Three Months Ended March 31, 2020 | |||||||||||||||||||
Latin America | AMEA | Europe | North America | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Biscuits | $ | 174 | $ | 508 | $ | 746 | $ | 1,598 | $ | 3,026 | |||||||||
Chocolate | 194 | 543 | 1,363 | 56 | 2,156 | ||||||||||||||
Gum & Candy | 182 | 185 | 173 | 241 | 781 | ||||||||||||||
Beverages | 102 | 171 | 25 | — | 298 | ||||||||||||||
Cheese & Grocery | 74 | 95 | 277 | — | 446 | ||||||||||||||
Total net revenues | $ | 726 | $ | 1,502 | $ | 2,584 | $ | 1,895 | $ | 6,707 | |||||||||
For the Three Months Ended March 31, 2019 | |||||||||||||||||||
Latin America | AMEA | Europe | North America | Total | |||||||||||||||
(in millions) | |||||||||||||||||||
Biscuits | $ | 170 | $ | 461 | $ | 734 | $ | 1,372 | $ | 2,737 | |||||||||
Chocolate | 230 | 557 | 1,360 | 59 | 2,206 | ||||||||||||||
Gum & Candy | 200 | 225 | 173 | 215 | 813 | ||||||||||||||
Beverages | 123 | 172 | 26 | — | 321 | ||||||||||||||
Cheese & Grocery | 77 | 126 | 258 | — | 461 | ||||||||||||||
Total net revenues | $ | 800 | $ | 1,541 | $ | 2,551 | $ | 1,646 | $ | 6,538 |
•During the first nine months of 2020, we generated $2.3 billion of cash from operations, or $1.7 billion after capital expenditures. Also, as of September 30, 2020, we had $2.8 billion of cash and cash equivalents on hand. •During the first nine months of 2020, we also received cash of €350 million ($394 million) from our participation in the JDE Peet's public share offerings, $185 million from our participation in the KDP secondary offering and $777 million from subsequent KDP share sales (see additional information below and in Note 6, Equity Method Investments). •As a precautionary measure, in March, we also suspended our share repurchase program. •In connection with various legislatively authorized tax payment deferral mechanisms available for income tax, indirect tax (such as value-added tax) and payroll tax in a number of jurisdictions, we were able to defer certain of these tax payments, which provided a cash benefit that will reverse when the cash tax payments become due. The benefits associated with the deferral of these tax payments were not material to our financial statements. • |
•Organic Net Revenue, a non-GAAP financial measure, increased 4.4% to $6.6 billion in the third quarter of 2020 and increased 3.9% to $19.6 billion in the first nine months of 2020 as compared to same periods in the prior year. During the third quarter and first nine months of 2020, Organic Net Revenue |
•Market conditions. Snack categories continued to grow in the first nine months of |
•COVID-19. We continue to monitor and respond to the COVID-19 outbreak. While its full impact is not yet known, it has had a material negative effect on the economy and could have a material negative effect on our business and results in the future, particularly if there are significant adverse changes to consumer demand or significant disruptions to the supply, production or distribution of our products or the credit or financial stability of our customers and other business partners. An economic or credit crisis could occur and impair credit availability and our ability to raise capital when needed. A disruption in the financial markets may also have a negative effect on our derivative counterparties and could also impair our banking or other business partners, on whom we rely for access to capital and as counterparties for a number of our derivative contracts. Any of these and other developments could materially harm our business, results of operations and financial condition. We will continue to prioritize the safety of our employees and consumers. As we manage operations during the pandemic, we may continue to incur increased labor, customer service, logistics and other costs. As consumer demand for our products evolves, we could see continued shifts in product mix that could have a negative impact on results. As discussed in Recent Developments and Significant Items Affecting Comparability, we are working to mitigate any negative impacts to our business from the COVID-19 outbreak, but we may not be able to fully predict or respond to all impacts on a timely basis to prevent near- and long-term adverse impacts to our results. •Brexit. On December 31, 2020, the United Kingdom will be completing the withdrawal process from the European Union. Through December 31, 2020, the United Kingdom will effectively remain in the E.U.’s customs union and single market while a trade deal with the European Union is negotiated. On December 31, 2020, the United Kingdom will either exit the European Union and begin a new trade relationship with the European Union or will exit without a trade deal. As we approach the planned U.K. exit at the end of 2020, we are taking protective measures in response to the potential impacts on our results of operations and financial |
•Taxes. During the third quarter of 2019, we recorded the impact of Swiss tax reform, and we continue to monitor for any additional interpretative guidance that could result in changes to the amounts we have recorded. In the United States, while the 2017 U.S. tax reform reduced the U.S. corporate tax rate and included some beneficial provisions, other provisions have, and in the future will have, an adverse effect on our results. We continue to evaluate the impacts as additional guidance on implementing the legislation becomes available. While additional guidance has been issued by the IRS and the U.S. Treasury Department, there are still some areas that may not be clarified for some time. Also, a number of U.S. states have not updated their laws to take into account the new federal legislation. As a result, there may be additional impacts of the new laws on our future results of operations and financial condition. It is possible that U.S. or Swiss tax reform or related interpretations could change and have an adverse effect on us that could be material. Refer to Note 14, Income Taxes, and our Annual Report on Form 10-K for the year ended December 31, 2019 for more information on Swiss and U.S. tax reform. •Argentina. As further discussed in Note 1, Basis of Presentation– Currency Translation and Highly Inflationary Accounting, we continue to apply highly inflationary accounting for our Argentinian subsidiaries, and during the nine months ended September 30, 2020, we recorded a remeasurement loss of $7 million within selling, general and administrative expenses related to the revaluation of our Argentinian peso denominated net monetary position. The mix of monetary assets and liabilities and the exchange rate to convert Argentinian pesos to U.S. dollars could change over time, so it is difficult to predict the overall impact of the Argentina highly inflationary accounting on future net earnings. |
For the Three Months Ended March 31, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
See Note | 2020 | 2019 | See Note | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
(in millions, except percentages) | (in millions, except percentages) | |||||||||||||||||||||||||||||||||||||
Simplify to Grow Program | Note 7 | Simplify to Grow Program | Note 7 | |||||||||||||||||||||||||||||||||||
Restructuring charges | $ | (15 | ) | $ | (20 | ) | Restructuring charges | $ | (68) | $ | (77) | $ | (111) | $ | (117) | |||||||||||||||||||||||
Implementation charges | (43 | ) | (50 | ) | Implementation charges | (46) | (75) | (141) | (193) | |||||||||||||||||||||||||||||
Mark-to-market (losses)/gains from derivatives (1) | Note 9 | (184 | ) | 16 | ||||||||||||||||||||||||||||||||||
Intangible asset impairment charges | Intangible asset impairment charges | (54) | (57) | (144) | (57) | |||||||||||||||||||||||||||||||||
Mark-to-market gains/(losses) from derivatives (1) | Mark-to-market gains/(losses) from derivatives (1) | Note 9 | 148 | 18 | (38) | 67 | ||||||||||||||||||||||||||||||||
Acquisition and divestiture-related costs | Acquisition and divestiture-related costs | |||||||||||||||||||||||||||||||||||||
Acquisition integration costs | Acquisition integration costs | — | — | (2) | — | |||||||||||||||||||||||||||||||||
Acquisition-related costs | (5 | ) | — | Acquisition-related costs | — | (1) | (15) | (2) | ||||||||||||||||||||||||||||||
Divestiture-related costs | — | 1 | Divestiture-related costs | (6) | 4 | (4) | (6) | |||||||||||||||||||||||||||||||
Net gain on divestiture | Net gain on divestiture | — | 3 | — | 44 | |||||||||||||||||||||||||||||||||
Costs associated with JDE Peet's transaction | Costs associated with JDE Peet's transaction | Note 6 | — | — | (48) | — | ||||||||||||||||||||||||||||||||
Remeasurement of net monetary position | Note 1 | (2 | ) | (2 | ) | Remeasurement of net monetary position | Note 1 | (2) | (1) | (7) | (2) | |||||||||||||||||||||||||||
Impact from pension participation changes (1) | Note 10 | (3 | ) | — | Impact from pension participation changes (1) | Note 10 | (3) | (3) | (9) | 32 | ||||||||||||||||||||||||||||
CEO transition remuneration (2) | — | (3 | ) | CEO transition remuneration (2) | — | (3) | — | (9) | ||||||||||||||||||||||||||||||
Loss related to interest rate swaps | Note 8 & 9 | (103 | ) | — | Loss related to interest rate swaps | Note 8 & 9 | — | (111) | (103) | (111) | ||||||||||||||||||||||||||||
Gains on equity method investment transactions (3) | Note 6 | 71 | 23 | |||||||||||||||||||||||||||||||||||
Equity method investee acquisition- related or other (charges)/benefits, net | (11 | ) | (17 | ) | ||||||||||||||||||||||||||||||||||
Effective tax rate (4) | Note 14 | 21.2 | % | 19.4 | % | |||||||||||||||||||||||||||||||||
Swiss tax reform net impacts | Swiss tax reform net impacts | Note 14 | — | 767 | — | 767 | ||||||||||||||||||||||||||||||||
Gain/(loss) on equity method investment transactions (3) | Gain/(loss) on equity method investment transactions (3) | Note 6 | 345 | — | 537 | (2) | ||||||||||||||||||||||||||||||||
Equity method investee items (4) | Equity method investee items (4) | (41) | (11) | (82) | (40) | |||||||||||||||||||||||||||||||||
Effective tax rate (5) | Effective tax rate (5) | Note 14 | 36.1 | % | (92.5) | % | 36.0 | % | (8.8) | % |
(1)Includes impacts recorded in operating income and interest expense and other, net. |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ change | % change | ||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||
Net revenues | $ | 6,665 | $ | 6,355 | $ | 310 | 4.9 | % | |||||||||||||||
Operating income | 1,135 | 876 | 259 | 29.6 | % | ||||||||||||||||||
Net earnings attributable to Mondelēz International | 1,119 | 1,426 | (307) | (21.5) | % | ||||||||||||||||||
Diluted earnings per share attributable to Mondelēz International | 0.78 | 0.98 | (0.20) | (20.4) | % |
For the Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | $ change | % change | |||||||||||
(in millions, except per share data) | ||||||||||||||
Net revenues | $ | 6,707 | $ | 6,538 | $ | 169 | 2.6 | % | ||||||
Operating income | 856 | 1,036 | (180 | ) | (17.4 | )% | ||||||||
Net earnings attributable to Mondelēz International | 753 | 914 | (161 | ) | (17.6 | )% | ||||||||
Diluted earnings per share attributable to Mondelēz International | 0.52 | 0.63 | (0.11 | ) | (17.5 | )% |
2020 | ||||||
Change in net revenues (by percentage point) | ||||||
Total change in net revenues | % | |||||
Add back the following items affecting comparability: | ||||||
Unfavorable currency | pp | |||||
Impact of acquisition | ||||||
Total change in Organic Net Revenue (1) | % | |||||
Favorable volume/mix | pp | |||||
Higher net pricing | pp |
(1)Please see the Non-GAAP Financial Measures section at the end of this item. |
Operating Income | % Change | ||||||||||
(in millions) | |||||||||||
Operating Income for the Three Months Ended September 30, 2019 | $ | 876 | |||||||||
Simplify to Grow Program (2) | 151 | ||||||||||
Intangible asset impairment charges (3) | 57 | ||||||||||
Mark-to-market gains from derivatives (4) | (20) | ||||||||||
Acquisition-related costs (5) | 1 | ||||||||||
Divestiture-related costs (5) | (4) | ||||||||||
Net gain on divestiture (5) | (3) | ||||||||||
Remeasurement of net monetary position (6) | 1 | ||||||||||
CEO transition remuneration (1) | 3 | ||||||||||
Swiss tax reform impact (7) | 2 | ||||||||||
Other/rounding | 1 | ||||||||||
Adjusted Operating Income (1) for the Three Months Ended September 30, 2019 | $ | 1,065 | |||||||||
Higher net pricing | 129 | ||||||||||
Higher input costs | (63) | ||||||||||
Favorable volume/mix | 53 | ||||||||||
Higher selling, general and administrative expenses | (22) | ||||||||||
Impact from acquisitions (5) | 15 | ||||||||||
Total change in Adjusted Operating Income (constant currency) (1) | 112 | 10.5 | % | ||||||||
Unfavorable currency translation | (12) | ||||||||||
Total change in Adjusted Operating Income (1) | 100 | 9.4 | % | ||||||||
Adjusted Operating Income (1) for the Three Months Ended September 30, 2020 | $ | 1,165 | |||||||||
Simplify to Grow Program (2) | (114) | ||||||||||
Intangible asset impairment charges (3) | (54) | ||||||||||
Mark-to-market gains from derivatives (4) | 145 | ||||||||||
Divestiture-related costs (5) | (6) | ||||||||||
Remeasurement of net monetary position (6) | (2) | ||||||||||
Other/rounding | 1 | ||||||||||
Operating Income for the Three Months Ended September 30, 2020 | $ | 1,135 | 29.6 | % |
Diluted EPS | |||||
Diluted EPS Attributable to Mondelēz International for the Three Months Ended September 30, 2019 | $ | 0.98 | |||
Simplify to Grow Program (2) | 0.08 | ||||
Intangible asset impairment charges (2) | 0.03 | ||||
Mark-to-market gains from derivatives (2) | (0.01) | ||||
Loss related to interest rate swaps (3) | 0.08 | ||||
Swiss tax reform net impacts (2) | (0.53) | ||||
Equity method investee items (4) | 0.01 | ||||
Adjusted EPS (1) for the Three Months Ended September 30, 2019 | $ | 0.64 | |||
Increase in operations | 0.05 | ||||
Impact from acquisition (2) | 0.01 | ||||
Changes in benefit plan non-service income | 0.01 | ||||
Changes in income taxes (5) | (0.08) | ||||
Changes in shares outstanding (6) | 0.01 | ||||
Adjusted EPS (constant currency) (1) for the Three Months Ended September 30, 2020 | $ | 0.64 | |||
Unfavorable currency translation | (0.01) | ||||
Adjusted EPS (1) for the Three Months Ended September 30, 2020 | $ | 0.63 | |||
Simplify to Grow Program (2) | (0.06) | ||||
Intangible asset impairment charges (2) | (0.03) | ||||
Mark-to-market gains from derivatives (2) | 0.08 | ||||
Gain on equity method investment transactions (7) | 0.19 | ||||
Equity method investee items (4) | (0.03) | ||||
Diluted EPS Attributable to Mondelēz International for the Three Months Ended September 30, 2020 | $ | 0.78 |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ change | % change | ||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||
Net revenues | $ | 19,283 | $ | 18,955 | $ | 328 | 1.7 | % | |||||||||||||||
Operating income | 2,704 | 2,937 | (233) | (7.9) | % | ||||||||||||||||||
Net earnings attributable to Mondelēz International | 2,399 | 3,196 | (797) | (24.9) | % | ||||||||||||||||||
Diluted earnings per share attributable to Mondelēz International | 1.66 | 2.19 | (0.53) | (24.2) | % |
2020 | |||||
Change in net revenues (by percentage point) | |||||
Total change in net revenues | 1.7 | % | |||
Add back the following items affecting comparability: | |||||
Unfavorable currency | 3.3 | pp | |||
Impact of divestiture | 0.3 | pp | |||
Impact of acquisitions | (1.4) | pp | |||
Total change in Organic Net Revenue (1) | 3.9 | % | |||
Favorable volume/mix | 2.0 | pp | |||
Higher net pricing | 1.9 | pp |
Operating Income | % Change | ||||||||||
(in millions) | |||||||||||
Operating Income for the Nine Months Ended September 30, 2019 | $ | 2,937 | |||||||||
Simplify to Grow Program (2) | 304 | ||||||||||
Intangible asset impairment charges (3) | 57 | ||||||||||
Mark-to-market gains from derivatives (4) | (69) | ||||||||||
Acquisition-related costs (5) | 2 | ||||||||||
Divestiture-related costs (5) | 6 | ||||||||||
Operating income from divestiture (5) | (9) | ||||||||||
Net gain on divestiture (5) | (44) | ||||||||||
Remeasurement of net monetary position (6) | 2 | ||||||||||
Impact from pension participation changes (7) | (35) | ||||||||||
CEO transition remuneration (1) | 9 | ||||||||||
Swiss tax reform impact | 2 | ||||||||||
Other/rounding | 1 | ||||||||||
Adjusted Operating Income (1) for the Nine Months Ended September 30, 2019 | $ | 3,163 | |||||||||
Higher net pricing | 368 | ||||||||||
Higher input costs | (274) | ||||||||||
Favorable volume/mix | 119 | ||||||||||
Higher selling, general and administrative expenses | (94) | ||||||||||
Impact from acquisitions (5) | 7 | ||||||||||
Prior-year VAT-related settlements | 11 | ||||||||||
Other | (1) | ||||||||||
Total change in Adjusted Operating Income (constant currency) (1) | 136 | 4.3 | % | ||||||||
Unfavorable currency translation | (86) | ||||||||||
Total change in Adjusted Operating Income (1) | 50 | 1.6 | % | ||||||||
Adjusted Operating Income (1) for the Nine Months Ended September 30, 2020 | $ | 3,213 | |||||||||
Simplify to Grow Program (2) | (248) | ||||||||||
Intangible asset impairment charges (3) | (144) | ||||||||||
Mark-to-market losses from derivatives (4) | (42) | ||||||||||
Acquisition integration costs (5) | (2) | ||||||||||
Acquisition-related costs (5) | (15) | ||||||||||
Divestiture-related costs (5) | (4) | ||||||||||
Costs associated with JDE Peet's transaction (8) | (48) | ||||||||||
Remeasurement of net monetary position (6) | (7) | ||||||||||
Other/rounding | 1 | ||||||||||
Operating Income for the Nine Months Ended September 30, 2020 | $ | 2,704 | (7.9) | % |
Operating Income | % Change | |||||
(in millions) | ||||||
Operating Income for the Three Months Ended March 31, 2019 | $ | 1,036 | ||||
Simplify to Grow Program (2) | 70 | |||||
Mark-to-market gains from derivatives (3) | (16 | ) | ||||
Divestiture-related costs (4) | (1 | ) | ||||
Operating income from divestiture (4) | (4 | ) | ||||
Remeasurement of net monetary position (5) | 2 | |||||
CEO transition remuneration (1) | 3 | |||||
Adjusted Operating Income (1) for the Three Months Ended March 31, 2019 | $ | 1,090 | ||||
Higher net pricing | 119 | |||||
Higher input costs | (108 | ) | ||||
Favorable volume/mix | 125 | |||||
Higher selling, general and administrative expenses | (85 | ) | ||||
Impact from acquisition (4) | 2 | |||||
Prior-year VAT-related settlement | 9 | |||||
Total change in Adjusted Operating Income (constant currency) (1) | 62 | 5.7 | % | |||
Unfavorable currency translation | (46 | ) | ||||
Total change in Adjusted Operating Income (1) | 16 | 1.5 | % | |||
Adjusted Operating Income (1) for the Three Months Ended March 31, 2020 | $ | 1,106 | ||||
Simplify to Grow Program (2) | (58 | ) | ||||
Mark-to-market losses from derivatives (3) | (185 | ) | ||||
Acquisition-related costs (4) | (5 | ) | ||||
Remeasurement of net monetary position (5) | (2 | ) | ||||
Operating Income for the Three Months Ended March 31, 2020 | $ | 856 | (17.4 | )% |
Diluted EPS | |||
Diluted EPS Attributable to Mondelēz International for the Three Months Ended March 31, 2019 | $ | 0.63 | |
Simplify to Grow Program (2) | 0.03 | ||
Mark-to-market gains from derivatives (2) | (0.01 | ) | |
Gain on equity method investment transaction (3) | (0.01 | ) | |
Equity method investee acquisition-related or other charges/(benefits), net (4) | 0.01 | ||
Adjusted EPS (1) for the Three Months Ended March 31, 2019 | $ | 0.65 | |
Increase in operations | 0.03 | ||
Increase in equity method investment net earnings | 0.01 | ||
Changes in benefit plan non-service income | 0.01 | ||
Changes in income taxes (5) | 0.01 | ||
Changes in shares outstanding (6) | 0.01 | ||
Adjusted EPS (constant currency) (1) for the Three Months Ended March 31, 2020 | $ | 0.72 | |
Unfavorable currency translation | (0.03 | ) | |
Adjusted EPS (1) for the Three Months Ended March 31, 2020 | $ | 0.69 | |
Simplify to Grow Program (2) | (0.03 | ) | |
Mark-to-market losses from derivatives (2) | (0.11 | ) | |
Loss related to interest rate swaps (7) | (0.06 | ) | |
Gain on equity method investment transaction (3) | 0.04 | ||
Equity method investee acquisition-related or other (charges)/benefits, net (4) | (0.01 | ) | |
Diluted EPS Attributable to Mondelēz International for the Three Months Ended March 31, 2020 | $ | 0.52 |
Diluted EPS | |||||
Diluted EPS Attributable to Mondelēz International for the Nine Months Ended September 30, 2019 | $ | 2.19 | |||
0.17 | |||||
Intangible asset impairment charges | 0.03 |
Mark-to-market gains from derivatives (2) | (0.04) | ||||
Divestiture-related costs (2) | 0.01 | ||||
(0.03) | |||||
Net gain on divestitures (2) | (0.03) | ||||
Impact from pension participation changes (2) | (0.02) | ||||
CEO transition remuneration (2) | 0.01 | ||||
Loss related to | 0.08 | ||||
Swiss tax reform net impacts | (0.53) | ||||
Net loss on equity method investment | 0.01 |
Equity method investee items (7) | 0.02 | ||||
Adjusted EPS (1) for the Nine Months Ended September 30, 2019 | 1.87 | ||||
Increase in operations | 0.06 | ||||
Decrease in equity method | (0.01) |
0.03 | |||||
0.01 | |||||
Changes in income taxes (9) | (0.01) | ||||
Changes in shares outstanding (10) | 0.02 | ||||
Adjusted EPS (constant currency) (1) for the Nine Months Ended September 30, 2020 | $ | 1.98 | |||
Unfavorable currency translation | (0.06) | ||||
Adjusted EPS (1) for the Nine Months Ended September 30, 2020 | $ | 1.92 | |||
Simplify to | (0.14) |
Intangible asset impairment charges (2) | (0.08) | ||||
Mark-to-market losses from derivatives (2) | (0.03) | ||||
(0.01) | |||||
Net earnings from divestiture (2) (3) | 0.01 | ||||
Costs associated with JDE Peet's transaction (2) | (0.21) | ||||
Impact from pension participation changes (2) | (0.01) | ||||
Loss related to | (0.05) | ||||
Gain on equity method investment transactions (6) | 0.31 | ||||
Equity method investee items (7) | (0.05) | ||||
Diluted EPS Attributable to Mondelēz International for the Nine Months Ended September 30, 2020 | $ | 1.66 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||
Latin America | $ | 610 | $ | 736 | $ | 1,847 | $ | 2,273 | |||||||||||||||
AMEA | 1,470 | 1,419 | 4,209 | 4,312 | |||||||||||||||||||
Europe | 2,526 | 2,377 | 7,248 | 7,175 | |||||||||||||||||||
North America | 2,059 | 1,823 | 5,979 | 5,195 | |||||||||||||||||||
Net revenues | $ | 6,665 | $ | 6,355 | $ | 19,283 | $ | 18,955 | |||||||||||||||
Earnings before income taxes: | |||||||||||||||||||||||
Operating income: | |||||||||||||||||||||||
Latin America | $ | 77 | $ | 84 | $ | 149 | $ | 250 | |||||||||||||||
AMEA | 210 | 188 | 615 | 635 | |||||||||||||||||||
Europe | 432 | 331 | 1,201 | 1,239 | |||||||||||||||||||
North America | 387 | 370 | 1,192 | 1,096 | |||||||||||||||||||
Unrealized gains/(losses) on hedging activities (mark-to-market impacts) | 145 | 20 | (42) | 69 | |||||||||||||||||||
General corporate expenses | (66) | (76) | (253) | (264) | |||||||||||||||||||
Amortization of intangibles | (50) | (43) | (143) | (130) | |||||||||||||||||||
Net gain on divestiture | — | 3 | — | 44 | |||||||||||||||||||
Acquisition-related costs | — | (1) | (15) | (2) | |||||||||||||||||||
Operating income | 1,135 | 876 | 2,704 | 2,937 | |||||||||||||||||||
Benefit plan non-service income | 38 | 13 | 102 | 42 | |||||||||||||||||||
Interest and other expense, net | (89) | (205) | (364) | (386) | |||||||||||||||||||
Earnings before income taxes | $ | 1,084 | $ | 684 | $ | 2,442 | $ | 2,593 |
For the Three Months Ended March 31, | |||||||
2020 | 2019 | ||||||
(in millions) | |||||||
Net revenues: | |||||||
Latin America | $ | 726 | $ | 800 | |||
AMEA | 1,502 | 1,541 | |||||
Europe | 2,584 | 2,551 | |||||
North America | 1,895 | 1,646 | |||||
Net revenues | $ | 6,707 | $ | 6,538 | |||
Earnings before income taxes: | |||||||
Operating income: | |||||||
Latin America | $ | 78 | $ | 98 | |||
AMEA | 234 | 256 | |||||
Europe | 472 | 500 | |||||
North America | 381 | 319 | |||||
Unrealized (losses)/gains on hedging activities (mark-to-market impacts) | (185 | ) | 16 | ||||
General corporate expenses | (76 | ) | (109 | ) | |||
Amortization of intangibles | (43 | ) | (44 | ) | |||
Acquisition-related costs | (5 | ) | — | ||||
Operating income | 856 | 1,036 | |||||
Benefit plan non-service income | 33 | 17 | |||||
Interest and other expense, net | (190 | ) | (80 | ) | |||
Earnings before income taxes | $ | 699 | $ | 973 |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ change | % change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net revenues | $ | 610 | $ | 736 | $ | (126) | (17.1) | % | |||||||||||||||
Segment operating income | 77 | 84 | (7) | (8.3) | % | ||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ change | % change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net revenues | $ | 1,847 | $ | 2,273 | $ | (426) | (18.7) | % | |||||||||||||||
Segment operating income | 149 | 250 | (101) | (40.4) | % |
For the Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | $ change | % change | |||||||||||
(in millions) | ||||||||||||||
Net revenues | $ | 726 | $ | 800 | $ | (74 | ) | (9.3 | )% | |||||
Segment operating income | 78 | 98 | (20 | ) | (20.4 | )% |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ change | % change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net revenues | $ | 1,470 | $ | 1,419 | $ | 51 | 3.6 | % | |||||||||||||||
Segment operating income | 210 | 188 | 22 | 11.7 | % | ||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ change | % change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net revenues | $ | 4,209 | $ | 4,312 | $ | (103) | (2.4) | % | |||||||||||||||
Segment operating income | 615 | 635 | (20) | (3.1) | % |
For the Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | $ change | % change | |||||||||||
(in millions) | ||||||||||||||
Net revenues | $ | 1,502 | $ | 1,541 | $ | (39 | ) | (2.5 | )% | |||||
Segment operating income | 234 | 256 | (22 | ) | (8.6 | )% |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ change | % change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net revenues | $ | 2,526 | $ | 2,377 | $ | 149 | 6.3 | % | |||||||||||||||
Segment operating income | 432 | 331 | 101 | 30.5 | % | ||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ change | % change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net revenues | $ | 7,248 | $ | 7,175 | $ | 73 | 1.0 | % | |||||||||||||||
Segment operating income | 1,201 | 1,239 | (38) | (3.1) | % |
For the Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | $ change | % change | |||||||||||
(in millions) | ||||||||||||||
Net revenues | $ | 2,584 | $ | 2,551 | $ | 33 | 1.3 | % | ||||||
Segment operating income | 472 | 500 | (28 | ) | (5.6 | )% |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ change | % change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net revenues | $ | 2,059 | $ | 1,823 | $ | 236 | 12.9 | % | |||||||||||||||
Segment operating income | 387 | 370 | 17 | 4.6 | % | ||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ change | % change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net revenues | $ | 5,979 | $ | 5,195 | $ | 784 | 15.1 | % | |||||||||||||||
Segment operating income | 1,192 | 1,096 | 96 | 8.8 | % |
For the Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | $ change | % change | |||||||||||
(in millions) | ||||||||||||||
Net revenues | $ | 1,895 | $ | 1,646 | $ | 249 | 15.1 | % | ||||||
Segment operating income | 381 | 319 | 62 | 19.4 | % |
•“Adjusted Operating Income” is defined as operating income excluding the impacts of the Simplify to Grow Program (4); gains or losses (including non-cash impairment charges) on goodwill and intangible assets; divestiture (2) or acquisition gains or losses and related divestiture (2), acquisition and integration costs (2); the operating results of divestitures (2); remeasurement of net monetary position (5); mark-to-market impacts from commodity and forecasted currency transaction derivative contracts (6); impact from resolution of tax matters (7); CEO transition remuneration (8);impact from pension participation changes (9); Swiss tax reform impacts (10); and costs associated with the JDE Peet's transaction (1). We also present “Adjusted Operating Income margin,” which is subject to the same adjustments as Adjusted Operating Income. We also evaluate growth in our Adjusted Operating Income on a constant currency basis (3). •“Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International from continuing operations excluding the impacts of the items listed in the Adjusted Operating Income definition as well as losses on debt extinguishment and related expenses; gains or losses on equity method investment transactions; net earnings from divestitures (2); gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans; and U.S. and Swiss tax reform impacts (10). Similarly, within Adjusted EPS, our equity method investment net earnings exclude our proportionate share of our investees’ significant operating and non-operating items (11). We also evaluate growth in our Adjusted EPS on a constant currency basis (3). (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. During the second quarter of 2020, we added to the non-GAAP definitions the exclusion of costs associated with the JDE Peet's transaction. Refer to Note 6, Equity Method Investments, and Note 14, Income Taxes, for more information on the JDE Peet's transaction. (2)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. See Note 2, Acquisitions and Divestitures, and Note 6, Equity Method Investments, for information on acquisitions and divestitures impacting the comparability of our results. (3)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. (4)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. (5)During the third quarter of 2018, as we began to apply highly inflationary accounting for Argentina (refer to Note 1, Basis of Presentation), 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 2016. (6)During the third quarter of 2016, we began to 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 transaction 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. (7)See Note 12, Commitments and Contingencies – Tax Matters, and our Annual Report on Form 10-K for the year ended December 31, 2018 for additional information. (8)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 non-GAAP results because those amounts are not part of our regular compensation program and |
For the Three Months Ended September 30, 2020 | For the Three Months Ended September 30, 2019 | ||||||||||||||||||||||||||||||||||
Emerging Markets | Developed Markets | Total | Emerging Markets | Developed Markets | Total | ||||||||||||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||||||||||||||
Net Revenue | $ | 2,289 | $ | 4,376 | $ | 6,665 | $ | 2,363 | $ | 3,992 | $ | 6,355 | |||||||||||||||||||||||
Impact of currency | 200 | (108) | 92 | — | — | — | |||||||||||||||||||||||||||||
Impact of acquisition | — | (125) | (125) | — | — | — | |||||||||||||||||||||||||||||
Organic Net Revenue | $ | 2,489 | $ | 4,143 | $ | 6,632 | $ | 2,363 | $ | 3,992 | $ | 6,355 |
For the Three Months Ended March 31, 2020 | For the Three Months Ended March 31, 2019 | For the Nine Months Ended September 30, 2020 | For the Nine Months Ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Emerging Markets | Developed Markets | Total | Emerging Markets | Developed Markets | Total | Emerging Markets | Developed Markets | Total | Emerging Markets | Developed Markets | Total | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | (in millions) | (in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Revenue | $ | 2,417 | $ | 4,290 | $ | 6,707 | $ | 2,502 | $ | 4,036 | $ | 6,538 | Net Revenue | $ | 6,623 | $ | 12,660 | $ | 19,283 | $ | 7,137 | $ | 11,818 | $ | 18,955 | |||||||||||||||||||||||||||||||||
Impact of currency | 164 | 85 | 249 | — | — | — | Impact of currency | 582 | 42 | 624 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Impact of acquisition | — | (32 | ) | (32 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of acquisitions | Impact of acquisitions | — | (271) | (271) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of divestiture | — | — | — | (33 | ) | — | (33 | ) | Impact of divestiture | — | — | — | (55) | — | (55) | |||||||||||||||||||||||||||||||||||||||||||
Organic Net Revenue | $ | 2,581 | $ | 4,343 | $ | 6,924 | $ | 2,469 | $ | 4,036 | $ | 6,505 | Organic Net Revenue | $ | 7,205 | $ | 12,431 | $ | 19,636 | $ | 7,082 | $ | 11,818 | $ | 18,900 |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating Income | $ | 1,135 | $ | 876 | $ | 259 | 29.6 | % | |||||||||||||||
Simplify to Grow Program (1) | 114 | 151 | (37) | ||||||||||||||||||||
Intangible asset impairment charges (2) | 54 | 57 | (3) | ||||||||||||||||||||
Mark-to-market gains from derivatives (3) | (145) | (20) | (125) | ||||||||||||||||||||
Acquisition-related costs (4) | — | 1 | (1) | ||||||||||||||||||||
Divestiture-related costs (4) | 6 | (4) | 10 | ||||||||||||||||||||
Net gain on divestiture (4) | — | (3) | 3 | ||||||||||||||||||||
Remeasurement of net monetary position (5) | 2 | 1 | 1 | ||||||||||||||||||||
CEO transition remuneration (6) | — | 3 | (3) | ||||||||||||||||||||
Swiss tax reform impact (7) | — | 2 | (2) | ||||||||||||||||||||
Other/rounding | (1) | 1 | (2) | ||||||||||||||||||||
Adjusted Operating Income | $ | 1,165 | $ | 1,065 | $ | 100 | 9.4 | % | |||||||||||||||
Unfavorable currency translation | 12 | — | 12 | ||||||||||||||||||||
Adjusted Operating Income (constant currency) | $ | 1,177 | $ | 1,065 | $ | 112 | 10.5 | % |
For the Nine Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Operating Income | $ | 2,704 | $ | 2,937 | $ | (233) | (7.9) | % | |||||||||||||||
Simplify to Grow Program (1) | 248 | 304 | (56) | ||||||||||||||||||||
Intangible asset impairment charges (2) | 144 | 57 | 87 | ||||||||||||||||||||
Mark-to-market losses/(gains) from derivatives (3) | 42 | (69) | 111 | ||||||||||||||||||||
Acquisition integration costs (4) | 2 | — | 2 | ||||||||||||||||||||
Acquisition-related costs (4) | 15 | 2 | 13 | ||||||||||||||||||||
Divestiture-related costs (4) | 4 | 6 | (2) | ||||||||||||||||||||
Operating income from divestiture (4) | — | (9) | 9 | ||||||||||||||||||||
Net gain on divestiture (4) | — | (44) | 44 | ||||||||||||||||||||
Costs associated with JDE Peet's transaction (8) | 48 | — | 48 | ||||||||||||||||||||
Remeasurement of net monetary position (5) | 7 | 2 | 5 | ||||||||||||||||||||
Impact from pension participation changes (9) | — | (35) | 35 | ||||||||||||||||||||
CEO transition remuneration (6) | — | 9 | (9) | ||||||||||||||||||||
Swiss tax reform impact (7) | — | 2 | (2) | ||||||||||||||||||||
Other/rounding | (1) | 1 | (2) | ||||||||||||||||||||
Adjusted Operating Income | $ | 3,213 | $ | 3,163 | $ | 50 | 1.6 | % | |||||||||||||||
Unfavorable currency translation | 86 | — | 86 | ||||||||||||||||||||
Adjusted Operating Income (constant currency) | $ | 3,299 | $ | 3,163 | $ | 136 | 4.3 | % |
For the Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | $ Change | % Change | |||||||||||
(in millions) | ||||||||||||||
Operating Income | $ | 856 | $ | 1,036 | $ | (180 | ) | (17.4 | )% | |||||
Simplify to Grow Program (1) | 58 | 70 | (12 | ) | ||||||||||
Mark-to-market losses/(gains) from derivatives (2) | 185 | (16 | ) | 201 | ||||||||||
Acquisition-related costs (3) | 5 | — | 5 | |||||||||||
Divestiture-related costs (3) | — | (1 | ) | 1 | ||||||||||
Operating income from divestiture (3) | — | (4 | ) | 4 | ||||||||||
Remeasurement of net monetary position (4) | 2 | 2 | — | |||||||||||
CEO transition remuneration (5) | — | 3 | (3 | ) | ||||||||||
Adjusted Operating Income | $ | 1,106 | $ | 1,090 | $ | 16 | 1.5 | % | ||||||
Unfavorable currency translation | 46 | — | 46 | |||||||||||
Adjusted Operating Income (constant currency) | $ | 1,152 | $ | 1,090 | $ | 62 | 5.7 | % |
(1)Refer to Note 7, Restructuring Program, for more information. |
For the Three Months Ended September 30, | |||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||||||||||||
Diluted EPS attributable to Mondelēz International | $ | 0.78 | $ | 0.98 | $ | (0.20) | (20.4) | % | |||||||||||||||
Simplify to Grow Program (2) | 0.06 | 0.08 | (0.02) | ||||||||||||||||||||
Intangible asset impairment charges (2) | 0.03 | 0.03 | — | ||||||||||||||||||||
Mark-to-market gains from derivatives (2) | (0.08) | (0.01) | (0.07) | ||||||||||||||||||||
Loss related to interest rate swaps (3) | — | 0.08 | (0.08) | ||||||||||||||||||||
Swiss tax reform net impacts (4) | — | (0.53) | 0.53 | ||||||||||||||||||||
Gain on equity method investment transactions (5) | (0.19) | — | (0.19) | ||||||||||||||||||||
Equity method investee items (6) | 0.03 | 0.01 | 0.02 | ||||||||||||||||||||
Adjusted EPS | $ | 0.63 | $ | 0.64 | $ | (0.01) | (1.6) | % | |||||||||||||||
Unfavorable currency translation | 0.01 | — | 0.01 | ||||||||||||||||||||
Adjusted EPS (constant currency) | $ | 0.64 | $ | 0.64 | $ | — | — | % |
For the Three Months Ended March 31, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ Change | % Change | 2020 | 2019 | $ Change | % Change | ||||||||||||||||||||||||||||||
Diluted EPS attributable to Mondelēz International | $ | 0.52 | $ | 0.63 | $ | (0.11 | ) | (17.5 | )% | Diluted EPS attributable to Mondelēz International | $ | 1.66 | $ | 2.19 | $ | (0.53) | (24.2) | % | |||||||||||||||||||
Simplify to Grow Program (2) | 0.03 | 0.03 | — | Simplify to Grow Program (2) | 0.14 | 0.17 | (0.03) | ||||||||||||||||||||||||||||||
Intangible asset impairment charges (2) | Intangible asset impairment charges (2) | 0.08 | 0.03 | 0.05 | |||||||||||||||||||||||||||||||||
Mark-to-market losses/(gains) from derivatives (2) | 0.11 | (0.01 | ) | 0.12 | Mark-to-market losses/(gains) from derivatives (2) | 0.03 | (0.04) | 0.07 | |||||||||||||||||||||||||||||
Acquisition-related costs (2) | Acquisition-related costs (2) | 0.01 | — | 0.01 | |||||||||||||||||||||||||||||||||
Divestiture-related costs (2) | Divestiture-related costs (2) | — | 0.01 | (0.01) | |||||||||||||||||||||||||||||||||
Net earnings from divestiture (2) | Net earnings from divestiture (2) | (0.01) | (0.03) | 0.02 | |||||||||||||||||||||||||||||||||
Net gain on divestiture (2) | Net gain on divestiture (2) | — | (0.03) | 0.03 | |||||||||||||||||||||||||||||||||
Costs associated with JDE Peet's transaction (2) | Costs associated with JDE Peet's transaction (2) | 0.21 | — | 0.21 | |||||||||||||||||||||||||||||||||
Impact from pension participation changes (2) | Impact from pension participation changes (2) | 0.01 | (0.02) | 0.03 | |||||||||||||||||||||||||||||||||
CEO transition remuneration (2) | CEO transition remuneration (2) | — | 0.01 | (0.01) | |||||||||||||||||||||||||||||||||
Loss related to interest rate swaps (3) | 0.06 | — | 0.06 | Loss related to interest rate swaps (3) | 0.05 | 0.08 | (0.03) | ||||||||||||||||||||||||||||||
Gains on equity method investment transactions (4) | (0.04 | ) | (0.01 | ) | (0.03 | ) | |||||||||||||||||||||||||||||||
Equity method investee acquisition-related or other charges/(benefits), net (5) | 0.01 | 0.01 | — | ||||||||||||||||||||||||||||||||||
Swiss tax reform net impacts (4) | Swiss tax reform net impacts (4) | — | (0.53) | 0.53 | |||||||||||||||||||||||||||||||||
(Gain)/loss on equity method investment transactions (5) | (Gain)/loss on equity method investment transactions (5) | (0.31) | 0.01 | (0.32) | |||||||||||||||||||||||||||||||||
Equity method investee items (6) | Equity method investee items (6) | 0.05 | 0.02 | 0.03 | |||||||||||||||||||||||||||||||||
Adjusted EPS | $ | 0.69 | $ | 0.65 | $ | 0.04 | 6.2 | % | Adjusted EPS | $ | 1.92 | $ | 1.87 | $ | 0.05 | 2.7 | % | ||||||||||||||||||||
Unfavorable currency translation | 0.03 | — | 0.03 | Unfavorable currency translation | 0.06 | — | 0.06 | ||||||||||||||||||||||||||||||
Adjusted EPS (constant currency) | $ | 0.72 | $ | 0.65 | $ | 0.07 | 10.8 | % | Adjusted EPS (constant currency) | $ | 1.98 | $ | 1.87 | $ | 0.11 | 5.9 | % |
Issuer Purchases of Equity Securities | |||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2)(3) | |||||||||
January 1-31, 2020 | 4,642,233 | $ | 54.98 | 4,547,900 | $ | 2,901 | |||||||
February 1-29, 2020 | 3,706,772 | 57.18 | 3,333,547 | 2,711 | |||||||||
March 1-31, 2020 | 5,043,655 | 51.82 | 5,036,939 | 2,450 | |||||||||
For the Quarter Ended March 31, 2020 | 13,392,660 | 54.40 | 12,918,386 |
Issuer Purchases of Equity Securities | |||||||||||||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share (1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2)(3) | |||||||||||||||||||
July 1-31, 2020 | 3,113 | $ | 52.35 | — | $ | 2,450 | |||||||||||||||||
August 1-31, 2020 | 2,754 | 53.49 | — | 2,450 | |||||||||||||||||||
September 1-30, 2020 | 626 | 58.00 | — | 2,450 | |||||||||||||||||||
For the Quarter Ended September 30, 2020 | 6,493 | 53.38 | — |
(1)The total number of shares purchased (and the average price paid per share) reflects: (i) shares purchased pursuant to the repurchase program described in (2) below; and (ii) shares tendered to us by employees who used shares to exercise options and to pay the related taxes for grants of deferred stock that vested, totaling 3,113 shares, 2,754 shares and 626 shares for the fiscal months of July, August and September 2020, respectively. (2)Our Board of Directors has authorized the repurchase of $19.7 billion of our Common Stock through December 31, 2020. Specifically, on March 12, 2013, our Board of Directors authorized the repurchase of up to the lesser of 40 million shares or $1.2 billion of our Common Stock through March 12, 2016. On August 6, 2013, our Audit Committee, with authorization delegated from our Board of Directors, increased the repurchase program capacity to $6.0 billion of Common Stock repurchases and extended the expiration date to December 31, 2016. On December 3, 2013, our Board of Directors approved an increase of $1.7 billion to the program related to a new accelerated share repurchase program, which concluded in May 2014. On July 29, 2015, our Finance Committee, with authorization delegated from our Board of Directors, approved a $6.0 billion increase that raised the repurchase program capacity to $13.7 billion and extended the program through December 31, 2018. On January 31, 2018, our Finance Committee, with authorization delegated from our Board of Directors, approved an increase of $6.0 billion in the share repurchase program, raising the authorization to $19.7 billion of Common Stock repurchases, and extended the program through December 31, 2020. See related information in Note 11, Stock Plans. (3)Dollar values stated in millions. Item 5. Other Information. Our proxy statement for the 2020 Annual Meeting of Shareholders, which was filed with the Securities and Exchange Commission on April 1, 2020, contained a typographical error in the section entitled “2021 Annual Meeting of Shareholders – Shareholder Nominations and Proposals for the 2021 Annual Meeting” solely related to the dates by which a shareholder must (a) provide notice to us if the shareholder would like to include a shareholder director candidate in the Company’s proxy materials for the 2021 Annual Meeting of Shareholders and (b) submit a shareholder proposal for possible inclusion in our proxy materials for the 2021 Annual Meeting of Shareholders. The corrected information is set forth below: Shareholder Director Candidates for Possible Inclusion in the Company’s 2021 Proxy Materials (“Proxy Access”) Our By-Laws provide for proxy access. One or more shareholders may nominate and include in the 2021 proxy materials director nominees provided that the shareholder(s) and the nominee(s) satisfy the terms, conditions and requirements specified in the By-Laws. The key parameters are: •Minimum Ownership Threshold: the nominating shareholder(s) must own 3% or more of the outstanding Common Stock •Ownership Duration: such Common Stock must have been held continuously for at least three years |
Exhibit Number | Description | |||||||
4.2 | Third Supplemental Indenture, dated as of | |||||||
31.2 | ||||||||
32.1 | ||||||||
101 | The following materials from Mondelēz International’s Quarterly Report on Form 10-Q for the quarter ended | |||||||
104 | The cover page from Mondelēz International’s Quarterly Report on Form 10-Q for the quarter ended | |||||||
MONDELĒZ INTERNATIONAL, INC. | ||
By: /s/ LUCA ZARAMELLA | ||
Luca Zaramella | ||
Executive Vice President and | ||
Chief Financial Officer | ||
(Duly Authorized Officer) | ||