Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-16483 | |
Entity Registrant Name | Mondelez International, Inc. | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 52-2284372 | |
Entity Address, Address Line One | Three Parkway North, | |
Entity Address, City or Town | Deerfield, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60015 | |
City Area Code | 847 | |
Local Phone Number | 943-4000 | |
Entity Information [Line Items] | ||
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,442,150,501 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001103982 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock, no par value | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, no par value | |
Trading Symbol | MDLZ | |
Security Exchange Name | NASDAQ | |
2.375% Notes due 2021 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.375% Notes due 2021 | |
Trading Symbol | MDLZ21 | |
Security Exchange Name | NASDAQ | |
1.000% Notes due 2022 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.000% Notes due 2022 | |
Trading Symbol | MDLZ22 | |
Security Exchange Name | NASDAQ | |
1.625% Notes due 2023 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes due 2023 | |
Trading Symbol | MDLZ23 | |
Security Exchange Name | NASDAQ | |
1.625% Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes due 2027 | |
Trading Symbol | MDLZ27 | |
Security Exchange Name | NASDAQ | |
2.375% Notes due 2035 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.375% Notes due 2035 | |
Trading Symbol | MDLZ35 | |
Security Exchange Name | NASDAQ | |
4.500% Notes due 2035 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.500% Notes due 2035 | |
Trading Symbol | MDLZ35A | |
Security Exchange Name | NASDAQ | |
3.875% Notes due 2045 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.875% Notes due 2045 | |
Trading Symbol | MDLZ45 | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Net revenues | $ 6,062 | $ 6,112 | $ 12,600 | $ 12,877 |
Cost of sales | 3,593 | 3,572 | 7,538 | 7,488 |
Gross profit | 2,469 | 2,540 | 5,062 | 5,389 |
Selling, general and administrative expenses | 1,427 | 1,904 | 2,920 | 3,431 |
Asset impairment and exit costs | 15 | 111 | 35 | 165 |
Net gain on divestiture | (41) | 0 | (41) | 0 |
Amortization of intangibles | 43 | 44 | 87 | 88 |
Operating income | 1,025 | 481 | 2,061 | 1,705 |
Benefit plan non-service income | (12) | (15) | (29) | (28) |
Interest and other expense, net | 101 | 248 | 181 | 328 |
Earnings before income taxes | 936 | 248 | 1,909 | 1,405 |
Provision for income taxes | (216) | (15) | (405) | (352) |
Net loss on equity method investment transactions | (25) | 0 | (2) | 0 |
Equity method investment net earnings | 113 | 87 | 226 | 319 |
Net earnings | 808 | 320 | 1,728 | 1,372 |
Noncontrolling interest earnings | (1) | (2) | (7) | (8) |
Net earnings attributable to Mondelēz International | $ 807 | $ 318 | $ 1,721 | $ 1,364 |
Per share data: | ||||
Basic earnings per share attributable to Mondeléz International (in dollars per share) | $ 0.56 | $ 0.22 | $ 1.19 | $ 0.92 |
Diluted earnings per share attributable to Mondélez International (in dollars per share) | $ 0.55 | $ 0.21 | $ 1.18 | $ 0.91 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 808 | $ 320 | $ 1,728 | $ 1,372 |
Other comprehensive earnings/(losses), net of tax: | ||||
Currency translation adjustment | (33) | (876) | 157 | (666) |
Pension and other benefit plans | 54 | 169 | 64 | 163 |
Derivative cash flow hedges | (62) | 26 | (131) | (20) |
Total other comprehensive earnings/(losses) | (41) | (681) | 90 | (523) |
Comprehensive earnings/(losses) | 767 | (361) | 1,818 | 849 |
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | 3 | (10) | 8 | 11 |
Comprehensive earnings/(losses) attributable to Mondelēz International | $ 764 | $ (351) | $ 1,810 | $ 838 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 1,248 | $ 1,100 |
Trade receivables (net of allowances of $38 at June 30, 2019 and $40 at December 31, 2018) | 2,179 | 2,262 |
Other receivables (net of allowances of $49 at June 30, 2019 and $47 at December 31, 2018) | 712 | 744 |
Inventories, net | 2,731 | 2,592 |
Other current assets | 966 | 906 |
Total current assets | 7,836 | 7,604 |
Property, plant and equipment, net | 8,550 | 8,482 |
Operating lease right of use assets | 637 | 0 |
Goodwill | 20,701 | 20,725 |
Intangible assets, net | 17,943 | 18,002 |
Prepaid pension assets | 136 | 132 |
Deferred income taxes | 263 | 255 |
Equity method investments | 7,095 | 7,123 |
Other assets | 412 | 406 |
TOTAL ASSETS | 63,573 | 62,729 |
LIABILITIES | ||
Short-term borrowings | 3,780 | 3,192 |
Current portion of long-term debt | 3,675 | 2,648 |
Accounts payable | 5,312 | 5,794 |
Accrued marketing | 1,638 | 1,756 |
Accrued employment costs | 611 | 701 |
Other current liabilities | 2,782 | 2,646 |
Total current liabilities | 17,798 | 16,737 |
Long-term debt | 11,764 | 12,532 |
Long-term operating lease liabilities | 447 | 0 |
Deferred income taxes | 3,591 | 3,552 |
Accrued pension costs | 1,057 | 1,221 |
Accrued postretirement health care costs | 355 | 351 |
Other liabilities | 2,387 | 2,623 |
TOTAL LIABILITIES | 37,399 | 37,016 |
Commitments and Contingencies (Note 13) | ||
EQUITY | ||
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at June 30, 2019 and December 31, 2018) | 0 | 0 |
Additional paid-in capital | 31,970 | 31,961 |
Retained earnings | 25,348 | 24,491 |
Accumulated other comprehensive losses | (10,541) | (10,630) |
Treasury stock, at cost (554,035,528 shares at June 30, 2019 and 545,537,923 shares at December 31, 2018) | (20,684) | (20,185) |
Total Mondelēz International Shareholders’ Equity | 26,093 | 25,637 |
Noncontrolling interest | 81 | 76 |
TOTAL EQUITY | 26,174 | 25,713 |
TOTAL LIABILITIES AND EQUITY | $ 63,573 | $ 62,729 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 38 | $ 40 |
Other receivables, allowances | $ 49 | $ 47 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued (in shares) | 1,996,537,778 | 1,996,537,778 |
Treasury stock, at cost (in shares) | 554,035,528 | 545,537,923 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/(Losses) | Treasury Stock | Non-controlling Interest |
Balance at beginning of period at Dec. 31, 2017 | $ 26,074 | $ 0 | $ 31,915 | $ 22,631 | $ (9,997) | $ (18,555) | $ 80 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 1,372 | 1,364 | 8 | ||||
Other comprehensive earnings/(losses), net of income taxes | (523) | (526) | 3 | ||||
Exercise of stock options and issuance of other stock awards | 154 | (2) | (60) | 216 | |||
Common Stock repurchased | (1,150) | (1,150) | |||||
Cash dividends declared | (651) | (651) | |||||
Dividends paid on noncontrolling interest and other activities | (1) | 6 | (7) | ||||
Balance at end of period at Jun. 30, 2018 | 25,275 | 0 | 31,913 | 23,290 | (10,523) | (19,489) | 84 |
Balance at beginning of period at Mar. 31, 2018 | 26,544 | 0 | 31,876 | 23,305 | (9,854) | (18,881) | 98 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 320 | 318 | 2 | ||||
Other comprehensive earnings/(losses), net of income taxes | (681) | (669) | (12) | ||||
Exercise of stock options and issuance of other stock awards | 70 | 37 | (9) | 42 | |||
Common Stock repurchased | (650) | (650) | |||||
Cash dividends declared | (324) | (324) | |||||
Dividends paid on noncontrolling interest and other activities | (4) | (4) | |||||
Balance at end of period at Jun. 30, 2018 | 25,275 | 0 | 31,913 | 23,290 | (10,523) | (19,489) | 84 |
Balance at beginning of period at Dec. 31, 2018 | 25,713 | 0 | 31,961 | 24,491 | (10,630) | (20,185) | 76 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 1,728 | 1,721 | 7 | ||||
Other comprehensive earnings/(losses), net of income taxes | 90 | 89 | 1 | ||||
Exercise of stock options and issuance of other stock awards | 340 | 9 | (111) | 442 | |||
Common Stock repurchased | (941) | (941) | |||||
Cash dividends declared | (753) | (753) | |||||
Dividends paid on noncontrolling interest and other activities | (3) | (3) | |||||
Balance at end of period at Jun. 30, 2019 | 26,174 | 0 | 31,970 | 25,348 | (10,541) | (20,684) | 81 |
Balance at beginning of period at Mar. 31, 2019 | 25,909 | 0 | 31,933 | 24,954 | (10,498) | (20,561) | 81 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 808 | 807 | 1 | ||||
Other comprehensive earnings/(losses), net of income taxes | (41) | (43) | 2 | ||||
Exercise of stock options and issuance of other stock awards | 155 | 37 | (35) | 153 | |||
Common Stock repurchased | (276) | (276) | |||||
Cash dividends declared | (378) | (378) | |||||
Dividends paid on noncontrolling interest and other activities | (3) | (3) | |||||
Balance at end of period at Jun. 30, 2019 | $ 26,174 | $ 0 | $ 31,970 | $ 25,348 | $ (10,541) | $ (20,684) | $ 81 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Retained Earnings | ||||
Cash dividends declared (in dollars per share) | $ 0.26 | $ 0.22 | $ 0.52 | $ 0.44 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | ||
Net earnings | $ 1,728 | $ 1,372 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 517 | 407 |
Stock-based compensation expense | 71 | 67 |
U.S. tax reform transition tax | 2 | 86 |
Deferred income tax provision/(benefit) | 36 | (15) |
Asset impairments and accelerated depreciation | 4 | 43 |
Loss on debt extinguishment | 0 | 140 |
Net gain on divestiture | (41) | 0 |
Net loss on equity method investment transactions | 2 | 0 |
Equity method investment net earnings | (226) | (319) |
Distributions from equity method investments | 188 | 151 |
Other non-cash items, net | (46) | 366 |
Change in assets and liabilities, net of acquisitions and divestitures: | ||
Receivables, net | 135 | 112 |
Inventories, net | (145) | (240) |
Accounts payable | (430) | (325) |
Other current assets | (20) | (41) |
Other current liabilities | (638) | (481) |
Change in pension and postretirement assets and liabilities, net | (91) | (141) |
Net cash provided by operating activities | 1,046 | 1,182 |
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | ||
Capital expenditures | (465) | (532) |
Acquisition, net of cash received | 0 | (528) |
Proceeds from divestiture, net of disbursements | 163 | 0 |
Proceeds from sale of property, plant and equipment and other | 35 | 19 |
Net cash used in investing activities | (267) | (1,041) |
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | ||
Issuances of commercial paper, maturities greater than 90 days | 809 | 1,315 |
Repayments of commercial paper, maturities greater than 90 days | (2,169) | (1,020) |
Net issuances of other short-term borrowings | 1,958 | 298 |
Long-term debt proceeds | 597 | 2,948 |
Long-term debt repaid | (409) | (1,442) |
Repurchase of Common Stock | (940) | (1,177) |
Dividends paid | (756) | (657) |
Other | 271 | 124 |
Net cash (used in)/provided by financing activities | (639) | 389 |
Effect of exchange rate changes on cash and cash equivalents | 8 | (45) |
Cash and cash equivalents: | ||
Increase | 148 | 485 |
Balance at beginning of period | 1,100 | 761 |
Balance at end of period | $ 1,248 | $ 1,246 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results. For a complete set of consolidated financial statements and related notes, refer to our Annual Report on Form 10-K for the year ended December 31, 2018 . Principles of Consolidation: The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries that were deconsolidated in 2015. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors' interests in the results of subsidiaries that we control and consolidate. We account for investments over which we exercise significant influence under the equity method of accounting. Investments over which we do not have significant influence or control are not material and are carried at cost as there is no readily determinable fair value for the equity interests. Currency Translation and Highly Inflationary Accounting : We translate the results of operations of our subsidiaries from multiple currencies using average exchange rates during each period and translate balance sheet accounts using exchange rates at the end of each period. We record currency translation adjustments as a component of equity (except for highly inflationary currencies) and realized exchange gains and losses on transactions in earnings. Highly inflationary accounting is triggered when a country’s three-year cumulative inflation rate exceeds 100%. It requires the remeasurement of financial statements of subsidiaries in the country from the functional currency of the subsidiary to our U.S. dollar reporting currency, with currency remeasurement gains or losses recorded in earnings. As discussed below, beginning on July 1, 2018, we began to apply highly inflationary accounting for our operations in Argentina. Argentina. During the second quarter of 2018, primarily based on published estimates that indicated that Argentina's three-year cumulative inflation rate exceeded 100%, we concluded that Argentina became a highly inflationary economy for accounting purposes. As of July 1, 2018, we began to apply highly inflationary accounting for our Argentinian subsidiaries and changed their functional currency from the Argentinian peso to the U.S. dollar. On July 1, 2018, both monetary and non-monetary assets and liabilities denominated in Argentinian pesos were remeasured into U.S. dollars using the exchange rate as of the balance sheet date, with remeasurement and other transaction gains and losses recorded in net earnings. As of June 30, 2019 , our Argentinian operations had $12 million of Argentinian peso denominated net monetary liabilities. Our Argentinian operations contributed $99 million , or 1.6% of consolidated net revenues in the three months and $199 million , or 1.6% , of consolidated net revenues in the six months ended June 30, 2019 . We recorded a remeasurement gain of $1 million during the three months ended June 30, 2019 and a remeasurement loss of $1 million during the six months ended June 30, 2019 within selling, general and administrative expenses related to the revaluation of the Argentinian peso denominated net monetary assets. Brexit . In the six months ended June 30, 2019 , we generated 8.4% of our consolidated net revenues in the United Kingdom. We continue to monitor the U.K. planned exit from the European Union ("Brexit"), the deadline for which has been extended through October 31, 2019. We continue to take protective measures in response to the potential impacts on our results of operations and financial condition. Following the Brexit vote in June 2016, there was significant volatility in the global stock markets and currency exchange rates. The value of the British pound sterling relative to the U.S. dollar declined significantly and negatively affected our translated results reported in U.S. dollars. If the ultimate terms of the United Kingdom’s separation from the European Union negatively impact the U.K. economy or result in disruptions to sales or our supply chain, the impact to our results of operations and financial condition could be material. We have taken measures to increase our resources in customer service & logistics together with increasing our inventory levels of imported raw materials, packaging and finished goods in the United Kingdom to help us manage through the Brexit transition and the inherent risks. Other Countries. Since we sell our products in over 150 countries and have operations in over 80 countries, we monitor economic and currency-related risks and seek to take protective measures in response to these exposures. Some of the countries in which we do business have recently experienced periods of significant economic uncertainty and exchange rate volatility, including Brazil, China, Mexico, Russia, Ukraine, Turkey, Egypt, Nigeria, South Africa and Pakistan. We continue to monitor operations, currencies and net monetary exposures in these countries. At this time, we do not anticipate that these countries are at risk of becoming highly inflationary countries. Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have non-recourse factoring arrangements in which we sell eligible trade receivables primarily to banks in exchange for cash. We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the banks. The outstanding principal amount of receivables under these arrangements amounted to $712 million as of June 30, 2019 and $819 million as of December 31, 2018 . The incremental cost of factoring receivables under this arrangement was not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows. Leases: We determine whether a contract is or contains a lease at contract inception. On January 1, 2019, we began to record operating leases on our condensed consolidated balance sheet. We elected not to recognize right-of-use ("ROU") assets and lease liabilities for short-term operating leases with terms of 12 months or less. Long-term operating lease ROU assets and long-term operating lease liabilities are presented separately and operating lease liabilities payable in the next twelve months are recorded in other current liabilities. Finance lease ROU assets continue to be presented in property, plant and equipment and the related finance lease liabilities continue to be presented in the current portion of long-term debt and long-term debt. Lease ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized at commencement date at the value of the lease liability, adjusted for any prepayments, lease incentives received and initial direct costs incurred. Lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The non-recurring fair value measurement is classified as Level 3 as no fair value inputs are observable. As the rate implicit in the lease is not readily determinable in most of our leases, we use our country-specific incremental borrowing rate based on the lease term using information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Many of our leases contain non-lease components (e.g. product costs, common-area or other maintenance costs) that relate to the lease components of the agreement. Non-lease components and the lease components to which they relate are accounted for as a single lease component as we have elected to combine lease and non-lease components for all classes of underlying assets. Amortization of ROU lease assets is calculated on a straight-line basis over the lease term with the expense recorded in cost of sales or selling, general and administrative expenses depending on the nature of the leased item. Interest expense is recorded over the lease term and is recorded in interest expense (based on a front-loaded interest expense pattern) for finance leases and is recorded in cost of sales or selling, general and administrative expenses (on a straight-line basis) for operating leases. All operating lease cash payments and interest on finance leases are recorded within cash flows from operating activities and all finance lease principal payments are recorded within cash flows from financing activities in the condensed consolidated statements of cash flows. New Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs for internal-use software. This ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. In August 2018, the FASB issued an ASU that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The new standard may impact our disclosures and is not expected to have an impact on our consolidated financial statements. In August 2018, the FASB issued an ASU that modifies the disclosure requirements on fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The new standard may impact our disclosures and is not expected to have an impact on our consolidated financial statements. In February 2018, the FASB issued an ASU that permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 enactment of U.S. tax reform legislation. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We did not elect to reclassify these stranded tax effects from U.S. tax reform when we adopted this ASU in the first quarter of 2019. As such, this ASU did not have a material impact on our consolidated financial statements. Our policy is to release stranded tax effects from accumulated other comprehensive income under the portfolio method rather than on an individual item by item basis. In June 2016, the FASB issued an ASU on the measurement of credit losses on financial instruments. This ASU requires entities to measure the impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. We are currently assessing the guidance. This ASU is not expected to have a material impact on our consolidated financial statements. In February 2016, the FASB issued an ASU on lease accounting to increase transparency and comparability among organizations by requiring the recognition of ROU assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU revises existing U.S. GAAP and outlines a new model for lessors and lessees to use in accounting for lease contracts. The guidance requires lessees to recognize a ROU asset and a lease liability on the balance sheet for all leases, with the exception of short-term leases. In the statement of earnings, lessees will classify leases as either operating or financing. In July 2018, the FASB issued an ASU that allows for an alternative transition approach, which does not require adjustments to comparative prior-period amounts. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We adopted the new standard on January 1, 2019. We elected to apply the package of practical expedients that allowed us not to reassess the lease classification and initial direct costs for expired or existing leases or whether expired or existing contracts contain leases. We elected not to separate non-lease components from lease components and to account for both as a single lease component by class of the underlying asset. The impact of adopting the standard included the initial recognition as of January 1, 2019, of $710 million of lease related assets and $730 million of lease related liabilities on our condensed consolidated balance sheet. The transition method we elected for adoption requires a cumulative effect adjustment to retained earnings as of January 1, 2019, which was not material. Reclassifications: Certain amounts previously reported have been reclassified to conform to current-year presentation. During the third quarter of 2018, in connection with the Keurig Dr Pepper Inc. transaction, we changed our accounting principle to reflect our share of Keurig Green Mountain Inc.’s historical results and Keurig Dr Pepper Inc.'s ongoing results on a one-quarter lag basis while we continue to record dividends when cash is received. This change was applied retrospectively to all periods presented. Refer to Note 7, Equity Method Investments |
Divestitures and Acquisitions
Divestitures and Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Divestitures and Acquisitions | Note 2. Divestitures and Acquisitions On May 28, 2019 , we completed the sale of most of our cheese business in the Middle East and Africa to Arla Foods of Denmark. We received cash proceeds of $158 million and divested $19 million of current assets and $96 million of non-current assets. We also paid $2 million of transaction costs and recorded a net pre-tax gain of $41 million on the sale. We also incurred divestiture-related costs of $11 million in the three months and $10 million in the six months ended June 30, 2019 . On June 7, 2018 , we acquired a U.S. premium biscuit company, Tate’s Bake Shop, within our North America segment for $527 million cash paid, net of cash received, and extended our premium biscuit offerings. We accounted for the transaction as a business combination. As of June 30, 2019 , we finalized our purchase price allocation and there were no significant changes to the net assets previously recorded. The final purchase price allocation included $45 million to definite-lived intangible assets, $205 million to indefinite-lived intangible assets, $297 million to goodwill, $16 million to property, plant and equipment, $5 million to inventory, $9 million to accounts receivable, $7 million to current liabilities and $43 million to deferred tax liabilities. The acquisition added incremental net revenues of $35 million and incremental operating income of $4 million in 2019 through the anniversary of the acquisition date. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of June 30, As of December 31, (in millions) Raw materials $ 722 $ 726 Finished product 2,129 1,987 2,851 2,713 Inventory reserves (120 ) (121 ) Inventories, net $ 2,731 $ 2,592 |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment Property, plant and equipment consisted of the following: As of June 30, As of December 31, (in millions) Land and land improvements $ 422 $ 424 Buildings and building improvements 3,017 2,984 Machinery and equipment 10,918 10,943 Construction in progress 854 894 15,211 15,245 Accumulated depreciation (6,661 ) (6,763 ) Property, plant and equipment, net $ 8,550 $ 8,482 For the six months ended June 30, 2019 , capital expenditures of $465 million excluded $217 million of accrued capital expenditures remaining unpaid at June 30, 2019 and included payment for $331 million of capital expenditures that were accrued and unpaid at December 31, 2018 . For the six months ended June 30, 2018 , capital expenditures of $532 million excluded $268 million of accrued capital expenditures remaining unpaid at June 30, 2018 and included payment for $357 million of capital expenditures that were accrued and unpaid at December 31, 2017 . In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) in the condensed consolidated statements of earnings within asset impairment and exit costs and within the segment results as follows (refer to Note 8, Restructuring Program ). For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Latin America $ — $ 6 $ 1 $ 14 AMEA (3 ) 4 (2 ) 8 Europe 1 1 2 6 North America 1 2 4 8 Non-cash property, plant and equipment write-downs $ (1 ) $ 13 $ 5 $ 36 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases, Operating | Note 5. Leases We have operating and finance leases for manufacturing and distribution facilities, vehicles, equipment and office space. Our leases have remaining lease terms of 1 to 9 years , some of which include options to extend the leases for up to 6 years . We assume the majority of our termination options will not be exercised when determining the lease term of our leases. We do not include significant restrictions or covenants in our lease agreements, and residual value guarantees are generally not included within our operating leases, with the exception of some fleet leases. Some of our leasing arrangements require variable payments that are dependent on usage or output or may vary for other reasons, such as product costs, insurance and tax payments. These variable payment leases are not included in our recorded lease assets and liabilities and are expensed as incurred. Certain leases are tied to a variable index or rate and are included in our lease assets and liabilities based on the indices or rates as of lease commencement. The components of lease costs were as follows: For the Three Months Ended For the Six Months Ended (in millions) Operating lease cost $ 56 $ 115 Finance lease cost: Amortization of right-of-use assets 6 10 Interest on lease liabilities — 1 Short-term lease cost 11 20 Variable lease cost 105 205 Sublease income (1 ) (2 ) Total lease cost $ 177 $ 349 Supplemental cash flow information related to leases was as follows: For the Six Months Ended (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (135 ) Operating cash flows from finance leases (1 ) Financing cash flows from finance leases (9 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 78 Finance leases 17 Supplemental balance sheet information related to leases was as follows: As of June 30, 2019 (in millions) Operating Leases: Operating lease right-of-use assets, net of amortization $ 637 Other current liabilities $ 197 Operating lease liabilities 447 Total operating lease liabilities $ 644 Finance Leases: Finance leases, net of amortization (within property, plant & equipment) $ 58 Other current liabilities $ 21 Other long-term liabilities 40 Total finance lease liabilities $ 61 Weighted Average Remaining Lease Term Operating leases 5.0 years Finance leases 3.1 years Weighted Average Discount Rate Operating leases 3.5% Finance leases 4.8% Future lease payments under non-cancelable leases under prior lease accounting rules (ASC 840) and under the new lease accounting rules (ASC 842) that went into effect on January 1, 2019 were as follows: As of June 30, 2019 As of December 31, 2018 ASC 842 ASC 840 Operating Leases Finance Leases Operating Leases (in millions) Year Ending December 31: 2019 (excluding the six months ended June 30, 2019) $ 113 $ 13 2019 $ 208 2020 193 23 165 2021 137 18 114 2022 96 7 79 2023 63 2 57 Thereafter 120 1 157 Total future undiscounted lease payments $ 722 $ 64 $ 780 Less imputed interest (78 ) (3 ) Total reported lease liability $ 644 $ 61 In 2020 , we expect to record a $46 million operating lease liability for a 15 year lease that has not yet commenced. |
Leases, Finance | Note 5. Leases We have operating and finance leases for manufacturing and distribution facilities, vehicles, equipment and office space. Our leases have remaining lease terms of 1 to 9 years , some of which include options to extend the leases for up to 6 years . We assume the majority of our termination options will not be exercised when determining the lease term of our leases. We do not include significant restrictions or covenants in our lease agreements, and residual value guarantees are generally not included within our operating leases, with the exception of some fleet leases. Some of our leasing arrangements require variable payments that are dependent on usage or output or may vary for other reasons, such as product costs, insurance and tax payments. These variable payment leases are not included in our recorded lease assets and liabilities and are expensed as incurred. Certain leases are tied to a variable index or rate and are included in our lease assets and liabilities based on the indices or rates as of lease commencement. The components of lease costs were as follows: For the Three Months Ended For the Six Months Ended (in millions) Operating lease cost $ 56 $ 115 Finance lease cost: Amortization of right-of-use assets 6 10 Interest on lease liabilities — 1 Short-term lease cost 11 20 Variable lease cost 105 205 Sublease income (1 ) (2 ) Total lease cost $ 177 $ 349 Supplemental cash flow information related to leases was as follows: For the Six Months Ended (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (135 ) Operating cash flows from finance leases (1 ) Financing cash flows from finance leases (9 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 78 Finance leases 17 Supplemental balance sheet information related to leases was as follows: As of June 30, 2019 (in millions) Operating Leases: Operating lease right-of-use assets, net of amortization $ 637 Other current liabilities $ 197 Operating lease liabilities 447 Total operating lease liabilities $ 644 Finance Leases: Finance leases, net of amortization (within property, plant & equipment) $ 58 Other current liabilities $ 21 Other long-term liabilities 40 Total finance lease liabilities $ 61 Weighted Average Remaining Lease Term Operating leases 5.0 years Finance leases 3.1 years Weighted Average Discount Rate Operating leases 3.5% Finance leases 4.8% Future lease payments under non-cancelable leases under prior lease accounting rules (ASC 840) and under the new lease accounting rules (ASC 842) that went into effect on January 1, 2019 were as follows: As of June 30, 2019 As of December 31, 2018 ASC 842 ASC 840 Operating Leases Finance Leases Operating Leases (in millions) Year Ending December 31: 2019 (excluding the six months ended June 30, 2019) $ 113 $ 13 2019 $ 208 2020 193 23 165 2021 137 18 114 2022 96 7 79 2023 63 2 57 Thereafter 120 1 157 Total future undiscounted lease payments $ 722 $ 64 $ 780 Less imputed interest (78 ) (3 ) Total reported lease liability $ 644 $ 61 In 2020 , we expect to record a $46 million operating lease liability for a 15 year lease that has not yet commenced. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets Goodwill by segment was: As of June 30, As of December 31, (in millions) Latin America $ 833 $ 823 AMEA 3,169 3,210 Europe 7,499 7,519 North America 9,200 9,173 Goodwill $ 20,701 $ 20,725 Intangible assets consisted of the following: As of June 30, As of December 31, (in millions) Non-amortizable intangible assets $ 17,229 $ 17,201 Amortizable intangible assets 2,331 2,328 19,560 19,529 Accumulated amortization (1,617 ) (1,527 ) Intangible assets, net $ 17,943 $ 18,002 Non-amortizable intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the Spanish and Portuguese operations of United Biscuits, the global LU biscuit business of Groupe Danone S.A. and Cadbury Limited. Amortizable intangible assets consist primarily of trademarks, customer-related intangibles, process technology, licenses and non-compete agreements. Amortization expense for intangible assets was $43 million for the three months and $87 million for the six months ended June 30, 2019 and $44 million for the three months and $88 million for the six months ended June 30, 2018 . For the next five years, we currently estimate annual amortization expense of approximately $170 million for the next two years and approximately $85 million in years three to five (reflecting June 30, 2019 exchange rates). Changes in goodwill and intangible assets consisted of: Goodwill Intangible Assets, at cost (in millions) Balance at January 1, 2019 $ 20,725 $ 19,529 Currency 20 31 Divestitures (43 ) — Acquisition (1 ) — Balance at June 30, 2019 $ 20,701 $ 19,560 During our 2018 annual testing of non-amortizable intangible assets, we recorded $68 million of impairment charges in the third quarter of 2018 related to five trademarks. We recorded charges related to gum, chocolate, biscuits and candy trademarks of $45 million in Europe, $14 million in North America and $9 million in AMEA. We also identified seven brands, including the five impaired trademarks, with $536 million of aggregate book value as of June 30, 2019 , that each had a fair value in excess of book value of 10% or less. We believe our current plans for each of these brands will allow them to continue to not be impaired, but if the product line expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then a brand or brands could become impaired in the future. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Note 7. Equity Method Investments Our investments accounted for under the equity method of accounting totaled $7,095 million as of June 30, 2019 and $7,123 million as of December 31, 2018 . Our largest investments are in Jacobs Douwe Egberts (“JDE”) and Keurig Dr Pepper Inc. (NYSE: "KDP”). JDE: As of June 30, 2019 , we held a 26.5% voting interest, a 26.4% ownership interest and a 26.2% profit and dividend sharing interest in JDE. We recorded equity earnings of $53 million in the second quarter of 2019 and $42 million in the second quarter of 2018 and $103 million in the first six months of 2019 and $88 million in the first six months of 2018 . We also recorded $73 million of cash dividends received during the first quarter of 2019 and $73 million of cash dividends received during the first quarter of 2018 . JDE / Keurig Exchange: On March 7, 2016, we exchanged a portion of our 43.5% JDE equity interest for a new equity interest in Keurig Green Mountain, Inc. ("Keurig"). Following the transaction, our JDE equity interest became 26.5% and our new Keurig equity interest was 24.2% . During the first quarter of 2016, we recorded the difference between the $2.0 billion fair value of Keurig and our basis in the exchanged JDE shares as a gain of $43 million . In the second quarter of 2019, we determined an adjustment to accumulated other comprehensive losses related to our JDE investment was required, which reduced our previously reported gain by $29 million . We recorded the adjustment in the net loss on equity method transactions in the second quarter. Keurig Dr Pepper Transaction: On July 9, 2018, Keurig closed on its definitive merger agreement with Dr Pepper Snapple Group, Inc., and formed Keurig Dr Pepper Inc. (NYSE: "KDP"), a publicly traded company. Following the close of the transaction, our 24.2% investment in Keurig together with our shareholder loan receivable became a 13.8% investment in KDP. During 2018, we recorded a pre-tax gain of $778 million reported as a gain on equity method transaction and $192 million of deferred tax expense reported in the provision for income taxes (or $586 million after-tax gain) related to the change in our ownership interest. We hold two director positions on the KDP board as well as additional governance rights. As we continue to have significant influence, we continue to account for our investment in KDP under the equity method, resulting in recognizing our share of their earnings within our earnings and our share of their dividends within our cash flows. In connection with this transaction, during the third quarter of 2018, we changed our accounting principle to reflect our share of Keurig's historical and KDP's ongoing earnings on a one-quarter lag basis while we continue to record dividends when cash is received. We determined a lag was preferable as it enables us to continue to report our quarterly and annual results on a timely basis and to record our share of KDP’s ongoing results once KDP has publicly reported its results. This change in accounting principle was applied retrospectively to all periods. While our operating income did not change, equity method investment net earnings, net earnings and earnings per share have been adjusted to reflect the lag across all reported periods. The following tables show the primary line items on the condensed consolidated statements of earnings and comprehensive earnings that changed as a result of the lag. The condensed consolidated statements of cash flow and equity were also updated to reflect these changes. For the Three Months Ended For the Six Months Ended As Reported As Adjusted As Reported As Adjusted (in millions) Statements of Earnings Provision for income taxes $ (14 ) $ (15 ) $ (321 ) $ (352 ) Equity method investment net earnings 91 87 185 319 Net earnings 325 320 1,269 1,372 Net earnings attributable to Mondelēz International 323 318 1,261 1,364 Earnings per share attributable to Mondelēz International: Basic EPS $ 0.22 $ 0.22 $ 0.85 $ 0.92 Diluted EPS $ 0.22 $ 0.21 $ 0.84 $ 0.91 Statements of Other Comprehensive Earnings Currency translation adjustment $ (874 ) $ (876 ) $ (667 ) $ (666 ) Total other comprehensive earnings/(losses) (680 ) (681 ) (525 ) (523 ) Comprehensive earnings attributable to Mondelēz International (345 ) (351 ) 733 838 As of June 30, 2019 , we held a 13.6% ownership interest in KDP. Our ownership interest in KDP may change over time due to stock-based compensation arrangements and other transactions by KDP. During the first quarter of 2019 , we recognized a $23 million pre-tax gain related to the impact of a KDP acquisition that decreased our ownership interest from 13.8% to 13.6% . As of June 30, 2019 , based on KDP's closing stock price, the fair value of our ownership interest in KDP was $5.5 billion , which exceeded the carrying value of our KDP investment. We recorded equity earnings and cash dividends of $35 million and $28 million in the second quarter of 2019 and equity earnings, shareholder loan interest and cash dividends of $16 million , $6 million and $2 million in the second quarter of 2018 . We recorded equity earnings and cash dividends of $72 million and $57 million in the first six months of 2019 and equity earnings, shareholder loan interest and cash dividends of $170 million , $12 million and $5 million in the first six months of 2018 . |
Restructuring Program
Restructuring Program | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Program | Note 8. Restructuring Program On May 6, 2014, our Board of Directors approved a $3.5 billion 2014-2018 restructuring program and up to $2.2 billion of capital expenditures. On August 31, 2016, our Board of Directors approved a $600 million reallocation between restructuring program cash costs and capital expenditures so the $5.7 billion program consisted of approximately $4.1 billion of restructuring program charges ( $3.1 billion cash costs and $1.0 billion non-cash costs) and up to $1.6 billion of capital expenditures. On September 6, 2018, our Board of Directors approved an extension of the restructuring program through 2022, an increase of $1.3 billion in the program charges and an increase of $700 million in capital expenditures. The total $7.7 billion program now consists of $5.4 billion of program charges ( $4.1 billion of cash costs and $1.3 billion of non-cash costs) and total capital expenditures of $2.3 billion to be incurred over the life of the program. The current restructuring program, as increased and extended by these actions, is now called the Simplify to Grow Program. The primary objective of the Simplify to Grow Program is to reduce our operating cost structure in both our supply chain and overhead costs. The program covers severance as well as asset disposals and other manufacturing and procurement-related one-time costs. Since inception, we have incurred total restructuring and related implementation charges of $4.1 billion related to the Simplify to Grow Program. We expect to incur the program charges by year-end 2022. Restructuring Costs : The Simplify to Grow Program liability activity for the six months ended June 30, 2019 was: Severance and related costs Asset Write-downs Total (in millions) Liability balance, January 1, 2019 $ 373 $ — $ 373 Charges (1) 35 5 40 Cash spent (89 ) — (89 ) Non-cash settlements/adjustments (2) (30 ) (5 ) (35 ) Currency (1 ) — (1 ) Liability balance, June 30, 2019 $ 288 $ — $ 288 (1) Includes settlement losses of $5 million recorded within benefit plan non-service income on our condensed consolidated statements of earnings. (2) We adopted the new ASU on lease accounting as of January 1, 2019. The ASU requires recording onerous lease liabilities netted with right of use assets. Therefore, during the first quarter of 2019, we reclassified onerous lease liabilities that totaled $23 million as of March 31, 2019, from accrued liabilities and other accrued liabilities to operating lease right of use assets. We recorded restructuring charges of $20 million in the second quarter of 2019 and $112 million in the second quarter of 2018 and $40 million in the first six months of 2019 and $164 million in the first six months of 2018 within asset impairment and exit costs and benefit plan non-service income. We spent $36 million in the second quarter of 2019 and $82 million in the second quarter of 2018 and $89 million in the first six months of 2019 and $161 million in the first six months of 2018 in cash severance and related costs. We also recognized non-cash pension settlement losses (See Note 11, Benefit Plans ), non-cash asset write-downs (including accelerated depreciation and asset impairments) and other non-cash adjustments (including a transfer of onerous lease liabilities to operating lease ROU assets during the first quarter of 2019 ) totaling $6 million in the second quarter of 2019 and $14 million in the second quarter of 2018 and $35 million in the first six months of 2019 and $39 million in the first six months of 2018 . At June 30, 2019 , $248 million of our net restructuring liability was recorded within other current liabilities and $40 million was recorded within other long-term liabilities. Implementation Costs: Implementation costs are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. We believe the disclosure of implementation costs provides readers of our financial statements with more information on the total costs of our Simplify to Grow Program. Implementation costs primarily relate to reorganizing our operations and facilities in connection with our supply chain reinvention program and other identified productivity and cost saving initiatives. The costs include incremental expenses related to the closure of facilities, costs to terminate certain contracts and the simplification of our information systems. Within our continuing results of operations, we recorded implementation costs of $68 million in the second quarter of 2019 and $70 million in the second quarter of 2018 and $118 million in the first six months of 2019 and $132 million in the first six months of 2018 . We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs: During the three and six months ended June 30, 2019 and June 30, 2018 , and since inception of the Simplify to Grow Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes: Latin America AMEA Europe North America (1) Corporate (2) Total (in millions) For the Three Months Ended June 30, 2019 Restructuring Costs $ 7 $ 3 $ 11 $ — $ (1 ) $ 20 Implementation Costs 13 6 17 9 23 68 Total $ 20 $ 9 $ 28 $ 9 $ 22 $ 88 For the Three Months Ended June 30, 2018 Restructuring Costs $ 12 $ 17 $ 63 $ 14 $ 6 $ 112 Implementation Costs 15 8 13 21 13 70 Total $ 27 $ 25 $ 76 $ 35 $ 19 $ 182 For the Six Months Ended June 30, 2019 Restructuring Costs $ 7 $ 9 $ 11 $ 6 $ 7 $ 40 Implementation Costs 28 13 28 13 36 118 Total $ 35 $ 22 $ 39 $ 19 $ 43 $ 158 For the Six Months Ended June 30, 2018 Restructuring Costs $ 36 $ 23 $ 70 $ 26 $ 9 $ 164 Implementation Costs 30 20 29 38 15 132 Total $ 66 $ 43 $ 99 $ 64 $ 24 $ 296 Total Project (3) Restructuring Costs $ 500 $ 526 $ 982 $ 459 $ 123 $ 2,590 Implementation Costs 247 181 373 345 314 1,460 Total $ 747 $ 707 $ 1,355 $ 804 $ 437 $ 4,050 (1) During 2019 and 2018 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. (2) The Corporate column includes minor adjustments for pension settlement losses and rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through June 30, 2019 . |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Borrowing Arrangements | Note 9. Debt and Borrowing Arrangements Short-Term Borrowings: Our short-term borrowings and related weighted-average interest rates consisted of: As of June 30, 2019 As of December 31, 2018 Amount Outstanding Weighted- Average Rate Amount Outstanding Weighted- Average Rate (in millions) (in millions) Commercial paper $ 3,543 2.6 % $ 3,054 2.9 % Bank loans 237 14.4 % 138 10.5 % Total short-term borrowings $ 3,780 $ 3,192 As of June 30, 2019 , commercial paper issued and outstanding had between 1 and 59 days remaining to maturity. Commercial paper borrowings increased since year end primarily as a result of issuances to finance share repurchases during the year, dividend payments and the payment of long term debt maturities. Some of our international subsidiaries maintain primarily uncommitted credit lines to meet short-term working capital needs. Collectively, these credit lines amounted to $1.7 billion at June 30, 2019 and $1.7 billion at December 31, 2018 . Borrowings on these lines were $237 million at June 30, 2019 and $138 million at December 31, 2018 . Borrowing Arrangements: On February 27, 2019, to supplement our commercial paper program, we entered into a $1.5 billion revolving credit agreement for a 364 -day senior unsecured credit facility that is scheduled to expire on February 26, 2020 . The agreement replaces our previous credit agreement that matured on February 27, 2019 and includes the same terms and conditions as our existing $4.5 billion multi-year credit facility discussed below. As of June 30, 2019 , no amounts were drawn on the facility. On February 27, 2019, we entered into a $4.5 billion multi-year senior unsecured revolving credit facility for general corporate purposes, including working capital needs, and to support our commercial paper program. This agreement replaces our $4.5 billion amended and restated five-year revolving credit agreement, dated as of October 14, 2016. The revolving credit agreement is scheduled to expire on February 27, 2024 . The revolving credit agreement includes a covenant that we maintain a minimum shareholders' equity of at least $24.6 billion , excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans. At June 30, 2019 , we complied with this covenant as our shareholders' equity, as defined by the covenant, was $36.6 billion . The revolving credit facility also contains customary representations, covenants and events to default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. As of June 30, 2019 , no amounts were drawn on the facility. Long-Term Debt: On February 13, 2019, we issued $600 million of 3.625% U.S. dollar-denominated, fixed-rate notes that are scheduled to mature February 13, 2026. We received net proceeds of $595 million that were used to repay outstanding commercial paper borrowings and other debt. We recorded approximately $5 million of discounts and deferred financing costs, which will be amortized into interest expense over the life of the notes. On February 1, 2019, $400 million of our U.S. dollar variable rate notes matured. The notes and accrued interest to date were paid with the issuance of commercial paper and cash on hand. Our weighted-average interest rate on our total debt was 2.4% as of June 30, 2019 , 2.3% as of December 31, 2018 and 2.1% as of December 31, 2017 . Fair Value of Our Debt: The fair value of our short-term borrowings at June 30, 2019 and December 31, 2018 reflects current market interest rates and approximates the amounts we have recorded on our condensed consolidated balance sheets. The fair value of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations. At June 30, 2019 , the aggregate fair value of our total debt was $20,009 million and its carrying value was $19,219 million . At December 31, 2018 , the aggregate fair value of our total debt was $18,650 million and its carrying value was $18,372 million . Interest and Other Expense, net: Interest and other expense, net consisted of: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Interest expense, debt $ 127 $ 115 $ 250 $ 217 Loss on debt extinguishment — 140 — 140 Loss/(gain) related to interest rate swaps — 5 — (9 ) Other (income)/expense, net (26 ) (12 ) (69 ) (20 ) Interest and other expense, net $ 101 $ 248 $ 181 $ 328 Other income includes amounts related to our net investment hedge derivative contracts that are excluded from hedge effectiveness and totaled $34 million and $67 million for the three and six months ended June 30, 2019 and $33 million and $50 million for the three and six months ended June 30, 2018 . |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 10. Financial Instruments Fair Value of Derivative Instruments: Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of June 30, 2019 As of December 31, 2018 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 16 $ 453 $ 17 $ 355 Net investment hedge derivative contracts (1) 434 10 337 28 $ 450 $ 463 $ 354 $ 383 Derivatives not designated as accounting hedges: Currency exchange contracts $ 40 $ 54 $ 72 $ 37 Commodity contracts 223 170 191 210 $ 263 $ 224 $ 263 $ 247 Total fair value $ 713 $ 687 $ 617 $ 630 (1) Net investment hedge contracts consist of cross-currency interest rate swaps and forward contracts. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 9, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote. Derivatives designated as accounting hedges include cash flow and net investment hedge derivative contracts. Our economic hedges are derivatives not designated as accounting hedges. We record derivative assets and liabilities on a gross basis on our condensed consolidated balance sheets. The fair value of our asset derivatives is recorded within other current assets and the fair value of our liability derivatives is recorded within other current liabilities. The fair values (asset/(liability)) of our derivative instruments were determined using: As of June 30, 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 $ (14 ) $ — $ (14 ) $ — Commodity contracts 53 37 16 — Interest rate contracts (437 ) — (437 ) — Net investment hedge contracts 424 — 424 — Total derivatives $ 26 $ 37 $ (11 ) $ — As of December 31, 2018 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 $ 35 $ — $ 35 $ — Commodity contracts (19 ) (1 ) (18 ) — Interest rate contracts (338 ) — (338 ) — Net investment hedge contracts 309 — 309 — Total derivatives $ (13 ) $ (1 ) $ (12 ) $ — Level 1 financial assets and liabilities consist of exchange-traded commodity futures and listed options. The fair value of these instruments is determined based on quoted market prices on commodity exchanges. Level 2 financial assets and liabilities consist primarily of over-the-counter (“OTC”) currency exchange forwards, options and swaps; commodity forwards and options; and interest rate swaps. Our currency exchange contracts are valued using an income approach based on observable market forward rates less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the observable market commodity index prices less the contract rate multiplied by the notional amount or based on pricing models that rely on market observable inputs such as commodity prices. Our calculation of the fair value of interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the observable market interest rate curve. Our calculation of the fair value of financial instruments takes into consideration the risk of nonperformance, including counterparty credit risk. Our OTC derivative transactions are governed by International Swap Dealers Association agreements and other standard industry contracts. Under these agreements, we do not post nor require collateral from our counterparties. The majority of our derivative contracts do not have a legal right of set-off. We manage the credit risk in connection with these and all our derivatives by entering into transactions with counterparties with investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties. Derivative Volume: The notional values of our hedging instruments were: Notional Amount As of June 30, 2019 As of December 31, 2018 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,707 $ 3,239 Forecasted transactions 2,732 2,396 Commodity contracts 587 393 Interest rate contracts 7,661 8,679 Net investment hedges: Net investment hedge derivative contracts 6,931 6,678 Non-U.S. dollar debt designated as net investment hedges Euro notes 3,485 3,514 British pound sterling notes 334 336 Swiss franc notes 1,434 1,424 Canadian dollar notes 458 440 Cash Flow Hedges: Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Accumulated (loss)/gain at beginning of period $ (236 ) $ (159 ) $ (167 ) $ (113 ) Transfer of realized losses/(gains) in fair value to earnings 12 5 12 (9 ) Unrealized (loss)/gain in fair value (74 ) 21 (143 ) (11 ) Accumulated (loss)/gain at end of period $ (298 ) $ (133 ) $ (298 ) $ (133 ) After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Interest rate contracts $ (12 ) $ (5 ) $ (12 ) $ 9 We recognized a loss of $12 million in the three and six months ended June 30, 2019 in the net loss on equity method investment transactions. Refer to Note 7, Equity Method Investments - JDE / Keurig Exchange . We recognized a loss of $5 million in the three months and a gain of $9 million in the six months ended June 30, 2018 in interest and other expense, net related to certain forward-starting interest rate swaps for which the planned timing of the related forecasted debt was changed. After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Currency exchange contracts – forecasted transactions $ 3 $ — $ 3 $ — Interest rate contracts (77 ) 21 (146 ) (11 ) Total $ (74 ) $ 21 $ (143 ) $ (11 ) We record pre-tax (i) gains or losses reclassified from accumulated other comprehensive earnings/(losses) into earnings, (ii) gains or losses on ineffectiveness and (iii) gains or losses on amounts excluded from effectiveness testing in: • cost of sales for currency exchange contracts related to forecasted transactions; • cost of sales for commodity contracts; and • interest and other expense, net for interest rate contracts and currency exchange contracts related to intercompany loans. Based on current market conditions, we would expect to transfer losses of $89 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. Cash Flow Hedge Coverage: As of June 30, 2019 , our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 4 years and 4 months. Hedges of Net Investments in International Operations: Net investment hedge derivative contracts: We enter into cross-currency interest rate swaps and forwards to hedge certain investments in our non-U.S. operations against movements in exchange rates. The aggregate notional value as of June 30, 2019 was $6.9 billion . The after-tax unrealized gain/(loss) on these net investment hedge contracts was recorded in the cumulative translation adjustment section of other comprehensive income and was $60 million for the three months and $74 million for the six months ended June 30, 2019 and $276 million for the three months and $265 million for the six months ended June 30, 2018 . In addition, the after-tax realized gain/(loss) on net investment hedge contracts settled in the current period recorded in the cumulative translation adjustment section of other comprehensive income was $(7) million for the three months ended June 30, 2019. There were no after-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings in the three and six months ended June 30, 2019 and June 30, 2018 . We elected to record changes in the fair value of amounts excluded from the assessment of effectiveness in net earnings. Amounts excluded from the assessment of hedge effectiveness were $34 million for the three months and $67 million for the six months ended June 30, 2019 and $33 million for the three months and $50 million for the six months ended June 30, 2018 and were recorded as income in interest and other expense, net. The cash flows from these contracts are reported as other investing activities in the condensed consolidated statement of cash flows. Non-U.S. dollar debt designated as net investment hedges: After-tax gains/(losses) related to hedges of net investments in international operations in the form of euro, British pound sterling, Swiss franc and Canadian dollar-denominated debt were recorded within the cumulative translation adjustment section of other comprehensive income and were: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Euro notes $ (36 ) $ 151 $ 22 $ 76 British pound sterling notes 7 21 1 8 Swiss franc notes (21 ) 42 (8 ) 16 Canadian notes (7 ) 6 (14 ) 4 Economic Hedges: Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Three Months Ended For the Six Months Ended Location of Gain/(Loss) Recognized in Earnings 2019 2018 2019 2018 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ (50 ) $ 7 $ 11 $ 14 Interest and other expense, net Forecasted transactions (25 ) 72 (20 ) 65 Cost of sales Forecasted transactions (1 ) — (1 ) (5 ) Interest and other expense, net Forecasted transactions (5 ) (1 ) (5 ) (4 ) Selling, general and administrative expenses Commodity contracts 52 (48 ) 66 101 Cost of sales Total $ (29 ) $ 30 $ 51 $ 171 |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 11. Benefit Plans Pension Plans Components of Net Periodic Pension Cost: Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended 2019 2018 2019 2018 (in millions) Service cost $ 9 $ 10 $ 30 $ 37 Interest cost 15 15 51 50 Expected return on plan assets (22 ) (22 ) (101 ) (114 ) Amortization: Net loss from experience differences 5 9 37 42 Prior service cost/(benefit) 1 — (1 ) (1 ) Settlement losses and other expenses (1) 4 8 3 — Net periodic pension cost $ 12 $ 20 $ 19 $ 14 U.S. Plans Non-U.S. Plans For the Six Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Service cost $ 18 $ 22 $ 61 $ 75 Interest cost 31 30 102 102 Expected return on plan assets (44 ) (44 ) (204 ) (231 ) Amortization: Net loss from experience differences 10 20 75 84 Prior service cost/(credit) 1 1 (3 ) (1 ) Settlement losses and other expenses (1) 8 15 3 — Net periodic pension cost $ 24 $ 44 $ 34 $ 29 (1) In connection with our Simplify to Grow Program, settlement losses and other expenses were $5 million for the three and six months ended June 30, 2019 and $3 million for the three and six months ended June 30, 2018. These losses were recorded within benefit plan non-service income on our condensed consolidated statements of earnings. Employer Contributions: During the six months ended June 30, 2019 , we contributed $4 million to our U.S. pension plans and $131 million to our non-U.S. pension plans, including $74 million to plans in the United Kingdom and Ireland. We make contributions to our pension plans in accordance with local funding arrangements and statutory minimum funding requirements. Discretionary contributions are made to the extent that they are tax deductible and do not generate an excise tax liability. As of June 30, 2019 , over the remainder of 2019, we plan to make further contributions of approximately $1 million to our U.S. plans and approximately $101 million to our non-U.S. plans. Our actual contributions may be different due to many factors, including changes in tax and other benefit laws, significant differences between expected and actual pension asset performance or interest rates. Multiemployer Pension Plans: The most individually significant multiemployer plan we participated in prior to the second quarter of 2018 was the Bakery and Confectionery Union and Industry International Pension Fund (the "Fund"). Our obligation to contribute to the Fund arose with respect to 8 collective bargaining agreements covering most of our employees represented by the Bakery, Confectionery, Tobacco and Grain Millers Union. All of those collective bargaining agreements expired in 2016 and we continued to contribute to the Fund through 2018. During 2018, we executed a complete withdrawal from the Fund and recorded an estimate of the withdrawal liability. On July 11, 2019, we received a withdrawal liability assessment from the Fund totaling $526 million and requiring pro-rata monthly payments over 20 years. To meet this obligation, we will begin payments during the second half of 2019. Within selling, general and administrative expenses, we recorded a $35 million ( $26 million net of tax) adjustment in the three months ended June 30, 2019 and a $408 million ( $305 million net of tax) estimated charge in the three months ended June 30, 2018 , related to the discounted withdrawal liability. As of June 30, 2019 , the discounted withdrawal liability was $396 million , with $22 million recorded in other current liabilities and $374 million recorded in long-term other liabilities. Postretirement Benefit Plans Net periodic postretirement health care benefit consisted of the following: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Service cost $ 2 $ 1 $ 3 $ 3 Interest cost 3 3 7 7 Amortization: Net loss from experience differences 1 3 3 7 Prior service credit (9 ) (9 ) (19 ) (19 ) Net periodic postretirement health care benefit $ (3 ) $ (2 ) $ (6 ) $ (2 ) Postemployment Benefit Plans Net periodic postemployment cost consisted of the following: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Service cost $ 2 $ 1 $ 3 $ 3 Interest cost 1 1 2 2 Amortization of net gains — — (1 ) (1 ) Net periodic postemployment cost $ 3 $ 2 $ 4 $ 4 |
Stock Plans
Stock Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans | Note 12. Stock Plans Stock Options: Stock option activity is reflected below: Shares Subject to Option Weighted- Average Exercise or Grant Price Per Share Average Remaining Contractual Term Aggregate Intrinsic Value Balance at January 1, 2019 43,818,830 $32.36 5 years $ 371 million Annual grant to eligible employees 4,793,570 47.72 Additional options issued 60,030 51.25 Total options granted 4,853,600 47.76 Options exercised (1) (10,842,077 ) 27.03 $ 235 million Options canceled (697,437 ) 40.51 Balance at June 30, 2019 37,132,916 35.78 6 years $ 673 million (1) Cash received from options exercised was $118 million in the three months and $293 million in the six months ended June 30, 2019 . The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $13 million in the three months and $29 million in the six months ended June 30, 2019 . Performance Share Units and Other Stock-Based Awards: Our performance share unit, deferred stock unit and historically granted restricted stock activity is reflected below: Number of Shares Grant Date Weighted-Average Fair Value Per Share (3) Weighted-Average Aggregate Fair Value (3) Balance at January 1, 2019 6,559,010 $42.19 Annual grant to eligible employees: Feb 22, 2019 Performance share units 891,210 57.91 Deferred stock units 666,880 47.72 Additional shares granted (1) 115,353 Various 55.04 Total shares granted 1,673,443 53.65 $ 90 million Vested (2) (1,614,690 ) 36.61 $ 59 million Forfeited (2) (356,333 ) 44.36 Balance at June 30, 2019 6,261,430 46.56 (1) Includes performance share units and deferred stock units. (2) Includes performance share units, deferred stock units and historically granted restricted stock. The actual tax benefit/(expense) realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled less than $1 million in the three months and $2 million in the six months ended June 30, 2019 . (3) The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided. Share Repurchase Program: Between 2013 and 2017, our Board of Directors authorized the repurchase of a total of $13.7 billion of our Common Stock 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 . Repurchases under the program are determined by management and are wholly discretionary. Prior to January 1, 2019, we had repurchased $15.0 billion of Common Stock pursuant to this authorization. During the six months ended June 30, 2019 , we repurchased approximately 21 million shares of Common Stock at an average cost of $45.84 per share, or an aggregate cost of approximately $1.0 billion , all of which was paid during the period except for approximately $1 million settled in July 2019. All share repurchases were funded through available cash and commercial paper issuances. As of June 30, 2019 , we have $3.7 billion in remaining share repurchase capacity. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments and Contingencies Legal Proceedings: We routinely are involved in legal proceedings, claims and governmental inspections or investigations (“Legal Matters”) arising in the ordinary course of our business. In February 2013 and March 2014, Cadbury India Limited (now known as Mondelez India Foods Private Limited), a subsidiary of Mondelēz International, and other parties received show cause notices from the Indian Central Excise Authority (the “Excise Authority”) calling upon the parties to demonstrate why the Excise Authority should not collect a total of 3.7 billion Indian rupees ( $54 million as of June 30, 2019 ) of unpaid excise tax and an equivalent amount of penalties, as well as interest, related to production at the same Indian facility. We contested these demands for unpaid excise taxes, penalties and interest. On March 27, 2015, after several hearings, the Commissioner of the Excise Authority (the "Commissioner") issued an order denying the excise exemption that we claimed for the Indian facility for these periods and confirming the Excise Authority’s demands for total taxes and penalties in the amount of 5.8 billion Indian rupees ( $85 million as of June 30, 2019 ) plus accrued interest. We have appealed this order. In addition, the Excise Authority issued additional show cause notices in February 2015, December 2015 and October 2017 on the same issue but covering the periods January-October 2014, November 2014-September 2015 and October 2015-June 2017, respectively. These three notices added a total of 4.9 billion Indian rupees ( $70 million as of June 30, 2019 ) of allegedly unpaid excise taxes subject to penalties up to an equivalent amount plus accrued interest. On May 25, 2019, the Commissioner issued an order denying the excise exemption that we claimed for the Indian facility for these three periods and confirming the Excise Authority’s demands for total taxes and penalties in the amount of 9.3 billion Indian rupees ( $135 million as of June 30, 2019 ) plus accrued interest. We plan to appeal this order. Interest will continue to accrue until the matters are resolved. With the implementation of the Goods and Services Tax in India in July 2017, we will not receive any further show cause notices for additional amounts on this issue. We believe that the decision to claim the excise tax benefit is valid and we are continuing to contest the show cause notices through the administrative and judicial process. As part of a continuing appeals process, we may be required to deposit an amount up to the equivalent of the total demand for unpaid excise taxes under the five show cause notices, which will be repaid if the proceedings conclude in our favor. We do not expect to be required to make any such deposit before 2020. On April 1, 2015 , the U.S. Commodity Futures Trading Commission ("CFTC") filed a complaint against Kraft Foods Group and Mondelēz Global LLC (“Mondelēz Global”) in the U.S. District Court (the "Court") for the Northern District of Illinois, Eastern Division (the “CFTC action”) following its investigation of activities related to the trading of December 2011 wheat futures contracts that occurred prior to the spin-off of Kraft Foods Group. The complaint alleges that Kraft Foods Group and Mondelēz Global (1) manipulated or attempted to manipulate the wheat markets during the fall of 2011; (2) violated position limit levels for wheat futures and (3) engaged in non-competitive trades by trading both sides of exchange-for-physical Chicago Board of Trade wheat contracts. The CFTC seeks civil monetary penalties of either triple the monetary gain for each violation of the Commodity Exchange Act (the “Act”) or $1 million for each violation of Section 6(c)(1), 6(c)(3) or 9(a)(2) of the Act and $140,000 for each additional violation of the Act, plus post-judgment interest; an order of permanent injunction prohibiting Kraft Foods Group and Mondelēz Global from violating specified provisions of the Act; disgorgement of profits; and costs and fees. The parties reached an agreement in principle to resolve the CFTC action and were instructed by the Court to submit a proposed consent order reflecting their agreement prior to May 28, 2019. On May 28, 2019, the Court held a hearing and entered an order continuing the matter until July 30, 2019. On July 30, 2019, the Court continued the status hearing until August 13, 2019. Additionally, several class action complaints were filed against Kraft Foods Group and Mondelēz Global in the U.S. District Court for the Northern District of Illinois by investors in wheat futures and options on behalf of themselves and others similarly situated. The complaints make similar allegations as those made in the CFTC action, and the plaintiffs are seeking class action certification; monetary damages, interest and unjust enrichment; costs and fees; and injunctive, declaratory and other unspecified relief. In June 2015, these suits were consolidated in the Northern District of Illinois. We are contesting the plaintiffs' request for class certification. It is not possible to predict the outcome of these matters; however, based on our Separation and Distribution Agreement with Kraft Foods Group dated as of September 27, 2012, we expect to bear any monetary penalties or other payments in connection with the CFTC action. Although the CFTC action and the class action complaints involve the same alleged conduct, a resolution or decision with respect to one of the matters may not be dispositive as to the outcome of the other matter. On August 21, 2018, the Virginia Department of Environmental Quality (“VDEQ”) issued a Notice of Violation (“NOV”) to Mondelēz Global. In the NOV, the VDEQ alleges that in our Richmond bakery, one operating line did not have the proper minimum temperature on its pollution control equipment and that the bakery failed to provide certain observation and training records. The VDEQ indicated that the alleged violations may lead to a fine and/or injunctive relief. We are working with the VDEQ to reach a resolution of this matter, and we do not expect this matter to have a material effect on our financial results. We are a party to various legal proceedings incidental to our business, including those noted above in this section. We record provisions in the consolidated financial statements for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated. For matters that are reasonably possible to result in an unfavorable outcome, management is unable to estimate the possible loss or range of loss or such amounts have been determined to be immaterial. At present we believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations or cash flows. However, legal proceedings and government investigations are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial monetary damages. In addition, in matters for which conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices or requiring other remedies. An unfavorable outcome might result in a material adverse impact on our business, results of operations or financial position. Third-Party Guarantees: We enter into third-party guarantees primarily to cover long-term obligations of our vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures. At June 30, 2019 , we had no material third-party guarantees recorded on our condensed consolidated balance sheet. Tax Matters: We are a party to various tax matter proceedings incidental to our business. These proceedings are subject to inherent uncertainties, and unfavorable outcomes could subject us to additional tax liabilities and could materially adversely impact our business, results of operations or financial position. A tax indemnification matter related to our 2007 acquisition of the LU biscuit business was closed during the quarter ended June 30, 2018. The closure had no impact on net earnings, however, it did result in a $15 million tax benefit that was fully offset by an $11 million expense in selling, general and administrative expenses and a $4 million expense in interest and other expense, net. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Reclassifications from Accumulated Other Comprehensive Income | Note 14. Reclassifications from Accumulated Other Comprehensive Income The following table summarizes the changes in the accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net losses of $59 million in the second quarter of 2019 and $45 million in the second quarter of 2018 and $88 million in the first six months of 2019 and $72 million in the first six months of 2018 . For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (8,412 ) $ (7,545 ) $ (8,603 ) $ (7,740 ) Currency translation adjustments (32 ) (720 ) 136 (557 ) Tax (expense)/benefit (1 ) (156 ) 21 (109 ) Other comprehensive earnings/(losses) (33 ) (876 ) 157 (666 ) Less: (earnings)/loss attributable to noncontrolling interests (2 ) 12 (1 ) (3 ) Balance at end of period (8,447 ) (8,409 ) (8,447 ) (8,409 ) Pension and Other Benefit Plans: Balance at beginning of period $ (1,850 ) $ (2,150 ) $ (1,860 ) $ (2,144 ) Net actuarial gain/(loss) arising during period 1 38 (23 ) 45 Tax (expense)/benefit on net actuarial gain/(loss) 1 (9 ) 7 (9 ) Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (1) 34 44 66 91 Settlement losses and other expenses (1) 24 8 28 15 Tax expense/(benefit) on reclassifications (2) (11 ) (12 ) (18 ) (25 ) Currency impact 5 100 4 46 Other comprehensive earnings/(losses) 54 169 64 163 Balance at end of period (1,796 ) (1,981 ) (1,796 ) (1,981 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (236 ) $ (159 ) $ (167 ) $ (113 ) Net derivative gains/(losses) (86 ) 17 (163 ) (12 ) Tax (expense)/benefit on net derivative gain/(loss) 11 (4 ) 19 (4 ) Losses/(gains) reclassified into net earnings: Interest rate contracts (3) 12 7 12 (11 ) Tax expense/(benefit) on reclassifications (2) — (2 ) — 2 Currency impact 1 8 1 5 Other comprehensive earnings/(losses) (62 ) 26 (131 ) (20 ) Balance at end of period (298 ) (133 ) (298 ) (133 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (10,498 ) $ (9,854 ) $ (10,630 ) $ (9,997 ) Total other comprehensive earnings/(losses) (41 ) (681 ) 90 (523 ) Less: (earnings)/loss attributable to noncontrolling interests (2 ) 12 (1 ) (3 ) Other comprehensive earnings/(losses) attributable to Mondelēz International (43 ) (669 ) 89 (526 ) Balance at end of period $ (10,541 ) $ (10,523 ) $ (10,541 ) $ (10,523 ) (1) These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 11, Benefit Plans , and net loss on equity method investment transactions. (2) Taxes reclassified to earnings are recorded within the provision for income taxes. (3) These reclassified gains or losses are recorded within interest and other expense, net and net loss on equity method investment transactions. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15. Income Taxes As of the second quarter of 2019 , our estimated annual effective tax rate, which excludes discrete tax impacts, was 25.5% . This rate reflected the impact of unfavorable foreign provisions under U.S. tax laws and our tax related to earnings from equity method investments (the earnings are reported separately on our statement of earnings and thus not included in earnings before income taxes), partially offset by favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions. Our 2019 second quarter effective tax rate of 23.1% was impacted by a discrete net tax benefit of $8 million . The discrete net tax benefit primarily consisted of a $24 million net benefit from the release of uncertain tax positions due to the expirations of statutes of limitations and audit settlements in several jurisdictions, partially offset by $15 million expense from U.S. state legislative changes. Our effective tax rate for the six months ended June 30, 2019 of 21.2% was favorably impacted by discrete net tax benefits of $71 million , primarily driven by a $84 million net benefit from the release of liabilities for uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions. As of the second quarter of 2018 , our estimated annual effective tax rate, which excluded discrete tax impacts, was 21.9% . This rate reflected our tax related to earnings from equity method investments (the earnings are reported separately on our statement of earnings and thus not included in earnings before income taxes), partially offset by favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions. Our 2018 second quarter effective tax rate of 6.0% was favorably impacted by a discrete net tax benefit of $32 million . The discrete net tax benefit primarily consisted of a $27 million net benefit from the release of uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions. Our effective tax rate for the six months ended June 30, 2018 of 25.1% was unfavorably impacted by net tax expense of $41 million from discrete one-time events. The discrete net tax expense primarily consisted of $86 million of additional transition tax liability recognized as an adjustment to the prior provisional estimate, offset by a $43 million net benefit from the release of uncertain tax positions due to expirations of statutes of limitations and audit settlements in various jurisdictions and a $22 million benefit from Argentinean refund claims. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 16. Earnings per Share Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions, except per share data) Net earnings $ 808 $ 320 $ 1,728 $ 1,372 Noncontrolling interest earnings (1 ) (2 ) (7 ) (8 ) Net earnings attributable to Mondelēz International $ 807 $ 318 $ 1,721 $ 1,364 Weighted-average shares for basic EPS 1,445 1,475 1,447 1,482 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 13 13 13 14 Weighted-average shares for diluted EPS 1,458 1,488 1,460 1,496 Basic earnings per share attributable to Mondelēz International $ 0.56 $ 0.22 $ 1.19 $ 0.92 Diluted earnings per share attributable to Mondelēz International $ 0.55 $ 0.21 $ 1.18 $ 0.91 We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We excluded antidilutive stock options of 4.2 million in the second quarter of 2019 and 12.7 million in the second quarter of 2018 and 7.3 million in the first six months of 2019 and 11.2 million in the first six months of 2018 . |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 17. Segment Reporting We manufacture and market primarily snack food products, including biscuits (cookies, crackers and salted snacks), chocolate, gum & candy and various cheese & grocery products, as well as powdered beverage products. We manage our global business and report operating results through geographic units. We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise across our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions. Our operations and management structure are organized into four operating segments: • Latin America • AMEA • Europe • North America We use segment operating income to evaluate segment performance and allocate resources. We believe it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating income excludes unrealized gains and losses on hedging activities (which are a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses) and amortization of intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. We exclude these items from segment operating income in order to provide better transparency of our segment operating results. Furthermore, we centrally manage benefit plan non-service income and interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the segment profitability measure that management reviews. Our segment net revenues and earnings were: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Net revenues: Latin America $ 737 $ 774 $ 1,537 $ 1,665 AMEA 1,352 1,360 2,893 2,902 Europe 2,247 2,303 4,798 5,009 North America 1,726 1,675 3,372 3,301 Net revenues $ 6,062 $ 6,112 $ 12,600 $ 12,877 Operating income: Latin America $ 68 $ 92 $ 166 $ 218 AMEA 191 177 447 405 Europe 408 367 908 864 North America 407 (95 ) 726 180 Unrealized gains on hedging activities 33 88 49 294 General corporate expenses (79 ) (91 ) (188 ) (155 ) Amortization of intangibles (43 ) (44 ) (87 ) (88 ) Net gain on divestitures 41 — 41 — Acquisition-related costs (1 ) (13 ) (1 ) (13 ) Operating income 1,025 481 2,061 1,705 Benefit plan non-service income 12 15 29 28 Interest and other expense, net (101 ) (248 ) (181 ) (328 ) Earnings before income taxes $ 936 $ 248 $ 1,909 $ 1,405 Items impacting our segment operating results are discussed in Note 1, Basis of Presentation , Note 2, Divestitures and Acquisitions , Note 4, Property, Plant and Equipment , Note 6, Goodwill and Intangible Assets , Note 8, Restructuring Program , and Note 13, Commitments and Contingencies . Also see Note 9, Debt and Borrowing Arrangements , and Note 10, Financial Instruments , for more information on our interest and other expense, net for each period. Net revenues by product category were: For the Three Months Ended June 30, 2019 Latin America AMEA Europe North America Total (in millions) Biscuits $ 186 $ 405 $ 767 $ 1,451 $ 2,809 Chocolate 157 438 1,006 42 1,643 Gum & Candy 209 224 181 233 847 Beverages 108 169 20 — 297 Cheese & Grocery 77 116 273 — 466 Total net revenues $ 737 $ 1,352 $ 2,247 $ 1,726 $ 6,062 For the Three Months Ended June 30, 2018 Latin America AMEA Europe North America Total (in millions) Biscuits $ 192 $ 387 $ 810 $ 1,403 $ 2,792 Chocolate 161 440 1,003 46 1,650 Gum & Candy 224 236 200 226 886 Beverages 116 173 19 — 308 Cheese & Grocery 81 124 271 — 476 Total net revenues $ 774 $ 1,360 $ 2,303 $ 1,675 $ 6,112 For the Six Months Ended June 30, 2019 Latin America AMEA Europe North America Total (in millions) Biscuits $ 356 $ 866 $ 1,501 $ 2,823 $ 5,546 Chocolate 387 995 2,366 101 3,849 Gum & Candy 409 449 354 448 1,660 Beverages 231 341 46 — 618 Cheese & Grocery 154 242 531 — 927 Total net revenues $ 1,537 $ 2,893 $ 4,798 $ 3,372 $ 12,600 For the Six Months Ended June 30, 2018 Latin America AMEA Europe North America Total (in millions) Biscuits $ 375 $ 829 $ 1,605 $ 2,736 $ 5,545 Chocolate 404 1,013 2,426 103 3,946 Gum & Candy 448 471 386 462 1,767 Beverages 277 345 47 — 669 Cheese & Grocery 161 244 545 — 950 Total net revenues $ 1,665 $ 2,902 $ 5,009 $ 3,301 $ 12,877 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results. For a complete set of consolidated financial statements and related notes, refer to our Annual Report on Form 10-K for the year ended December 31, 2018 . |
Principles of Consolidation | Principles of Consolidation: The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries that were deconsolidated in 2015. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors' interests in the results of subsidiaries that we control and consolidate. We account for investments over which we exercise significant influence under the equity method of accounting. Investments over which we do not have significant influence or control are not material and are carried at cost as there is no readily determinable fair value for the equity interests. |
Currency Translation and Highly Inflationary Accounting | Currency Translation and Highly Inflationary Accounting : We translate the results of operations of our subsidiaries from multiple currencies using average exchange rates during each period and translate balance sheet accounts using exchange rates at the end of each period. We record currency translation adjustments as a component of equity (except for highly inflationary currencies) and realized exchange gains and losses on transactions in earnings. Highly inflationary accounting is triggered when a country’s three-year cumulative inflation rate exceeds 100%. It requires the remeasurement of financial statements of subsidiaries in the country from the functional currency of the subsidiary to our U.S. dollar reporting currency, with currency remeasurement gains or losses recorded in earnings. As discussed below, beginning on July 1, 2018, we began to apply highly inflationary accounting for our operations in Argentina. Argentina. During the second quarter of 2018, primarily based on published estimates that indicated that Argentina's three-year cumulative inflation rate exceeded 100%, we concluded that Argentina became a highly inflationary economy for accounting purposes. As of July 1, 2018, we began to apply highly inflationary accounting for our Argentinian subsidiaries and changed their functional currency from the Argentinian peso to the U.S. dollar. On July 1, 2018, both monetary and non-monetary assets and liabilities denominated in Argentinian pesos were remeasured into U.S. dollars using the exchange rate as of the balance sheet date, with remeasurement and other transaction gains and losses recorded in net earnings. As of June 30, 2019 , our Argentinian operations had $12 million of Argentinian peso denominated net monetary liabilities. Our Argentinian operations contributed $99 million , or 1.6% of consolidated net revenues in the three months and $199 million , or 1.6% , of consolidated net revenues in the six months ended June 30, 2019 . We recorded a remeasurement gain of $1 million during the three months ended June 30, 2019 and a remeasurement loss of $1 million during the six months ended June 30, 2019 within selling, general and administrative expenses related to the revaluation of the Argentinian peso denominated net monetary assets. Brexit . In the six months ended June 30, 2019 , we generated 8.4% of our consolidated net revenues in the United Kingdom. We continue to monitor the U.K. planned exit from the European Union ("Brexit"), the deadline for which has been extended through October 31, 2019. We continue to take protective measures in response to the potential impacts on our results of operations and financial condition. Following the Brexit vote in June 2016, there was significant volatility in the global stock markets and currency exchange rates. The value of the British pound sterling relative to the U.S. dollar declined significantly and negatively affected our translated results reported in U.S. dollars. If the ultimate terms of the United Kingdom’s separation from the European Union negatively impact the U.K. economy or result in disruptions to sales or our supply chain, the impact to our results of operations and financial condition could be material. We have taken measures to increase our resources in customer service & logistics together with increasing our inventory levels of imported raw materials, packaging and finished goods in the United Kingdom to help us manage through the Brexit transition and the inherent risks. Other Countries. Since we sell our products in over 150 countries and have operations in over 80 countries, we monitor economic and currency-related risks and seek to take protective measures in response to these exposures. Some of the countries in which we do business have recently experienced periods of significant economic uncertainty and exchange rate volatility, including Brazil, China, Mexico, Russia, Ukraine, Turkey, Egypt, Nigeria, South Africa and Pakistan. We continue to monitor operations, currencies and net monetary exposures in these countries. At this time, we do not anticipate that these countries are at risk of becoming highly inflationary countries. |
Transfers of Financial Assets | Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have non-recourse factoring arrangements in which we sell eligible trade receivables primarily to banks in exchange for cash. We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the banks. The outstanding principal amount of receivables under these arrangements amounted to $712 million as of June 30, 2019 and $819 million as of December 31, 2018 . The incremental cost of factoring receivables under this arrangement was not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows. |
Leases | Leases: We determine whether a contract is or contains a lease at contract inception. On January 1, 2019, we began to record operating leases on our condensed consolidated balance sheet. We elected not to recognize right-of-use ("ROU") assets and lease liabilities for short-term operating leases with terms of 12 months or less. Long-term operating lease ROU assets and long-term operating lease liabilities are presented separately and operating lease liabilities payable in the next twelve months are recorded in other current liabilities. Finance lease ROU assets continue to be presented in property, plant and equipment and the related finance lease liabilities continue to be presented in the current portion of long-term debt and long-term debt. Lease ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized at commencement date at the value of the lease liability, adjusted for any prepayments, lease incentives received and initial direct costs incurred. Lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The non-recurring fair value measurement is classified as Level 3 as no fair value inputs are observable. As the rate implicit in the lease is not readily determinable in most of our leases, we use our country-specific incremental borrowing rate based on the lease term using information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Many of our leases contain non-lease components (e.g. product costs, common-area or other maintenance costs) that relate to the lease components of the agreement. Non-lease components and the lease components to which they relate are accounted for as a single lease component as we have elected to combine lease and non-lease components for all classes of underlying assets. Amortization of ROU lease assets is calculated on a straight-line basis over the lease term with the expense recorded in cost of sales or selling, general and administrative expenses depending on the nature of the leased item. Interest expense is recorded over the lease term and is recorded in interest expense (based on a front-loaded interest expense pattern) for finance leases and is recorded in cost of sales or selling, general and administrative expenses (on a straight-line basis) for operating leases. All operating lease cash payments and interest on finance leases are recorded within cash flows from operating activities and all finance lease principal payments are recorded within cash flows from financing activities in the condensed consolidated statements of cash flows. |
New Accounting Pronouncements | New Accounting Pronouncements: In August 2018, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs for internal-use software. This ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently assessing the impact on our consolidated financial statements. In August 2018, the FASB issued an ASU that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The new standard may impact our disclosures and is not expected to have an impact on our consolidated financial statements. In August 2018, the FASB issued an ASU that modifies the disclosure requirements on fair value measurements. The ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The new standard may impact our disclosures and is not expected to have an impact on our consolidated financial statements. In February 2018, the FASB issued an ASU that permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 enactment of U.S. tax reform legislation. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We did not elect to reclassify these stranded tax effects from U.S. tax reform when we adopted this ASU in the first quarter of 2019. As such, this ASU did not have a material impact on our consolidated financial statements. Our policy is to release stranded tax effects from accumulated other comprehensive income under the portfolio method rather than on an individual item by item basis. In June 2016, the FASB issued an ASU on the measurement of credit losses on financial instruments. This ASU requires entities to measure the impairment of certain financial instruments, including trade receivables, based on expected losses rather than incurred losses. This ASU is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for financial statement periods beginning after December 15, 2018. We are currently assessing the guidance. This ASU is not expected to have a material impact on our consolidated financial statements. In February 2016, the FASB issued an ASU on lease accounting to increase transparency and comparability among organizations by requiring the recognition of ROU assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The ASU revises existing U.S. GAAP and outlines a new model for lessors and lessees to use in accounting for lease contracts. The guidance requires lessees to recognize a ROU asset and a lease liability on the balance sheet for all leases, with the exception of short-term leases. In the statement of earnings, lessees will classify leases as either operating or financing. In July 2018, the FASB issued an ASU that allows for an alternative transition approach, which does not require adjustments to comparative prior-period amounts. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We adopted the new standard on January 1, 2019. We elected to apply the package of practical expedients that allowed us not to reassess the lease classification and initial direct costs for expired or existing leases or whether expired or existing contracts contain leases. We elected not to separate non-lease components from lease components and to account for both as a single lease component by class of the underlying asset. The impact of adopting the standard included the initial recognition as of January 1, 2019, of $710 million of lease related assets and $730 million of lease related liabilities on our condensed consolidated balance sheet. The transition method we elected for adoption requires a cumulative effect adjustment to retained earnings as of January 1, 2019, which was not material. |
Reclassifications | Reclassifications: |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | Inventories consisted of the following: As of June 30, As of December 31, (in millions) Raw materials $ 722 $ 726 Finished product 2,129 1,987 2,851 2,713 Inventory reserves (120 ) (121 ) Inventories, net $ 2,731 $ 2,592 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of June 30, As of December 31, (in millions) Land and land improvements $ 422 $ 424 Buildings and building improvements 3,017 2,984 Machinery and equipment 10,918 10,943 Construction in progress 854 894 15,211 15,245 Accumulated depreciation (6,661 ) (6,763 ) Property, plant and equipment, net $ 8,550 $ 8,482 |
Schedule of Restructuring Charges Related to Property, Plant and Equipment | In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) in the condensed consolidated statements of earnings within asset impairment and exit costs and within the segment results as follows (refer to Note 8, Restructuring Program ). For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Latin America $ — $ 6 $ 1 $ 14 AMEA (3 ) 4 (2 ) 8 Europe 1 1 2 6 North America 1 2 4 8 Non-cash property, plant and equipment write-downs $ (1 ) $ 13 $ 5 $ 36 During the three and six months ended June 30, 2019 and June 30, 2018 , and since inception of the Simplify to Grow Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes: Latin America AMEA Europe North America (1) Corporate (2) Total (in millions) For the Three Months Ended June 30, 2019 Restructuring Costs $ 7 $ 3 $ 11 $ — $ (1 ) $ 20 Implementation Costs 13 6 17 9 23 68 Total $ 20 $ 9 $ 28 $ 9 $ 22 $ 88 For the Three Months Ended June 30, 2018 Restructuring Costs $ 12 $ 17 $ 63 $ 14 $ 6 $ 112 Implementation Costs 15 8 13 21 13 70 Total $ 27 $ 25 $ 76 $ 35 $ 19 $ 182 For the Six Months Ended June 30, 2019 Restructuring Costs $ 7 $ 9 $ 11 $ 6 $ 7 $ 40 Implementation Costs 28 13 28 13 36 118 Total $ 35 $ 22 $ 39 $ 19 $ 43 $ 158 For the Six Months Ended June 30, 2018 Restructuring Costs $ 36 $ 23 $ 70 $ 26 $ 9 $ 164 Implementation Costs 30 20 29 38 15 132 Total $ 66 $ 43 $ 99 $ 64 $ 24 $ 296 Total Project (3) Restructuring Costs $ 500 $ 526 $ 982 $ 459 $ 123 $ 2,590 Implementation Costs 247 181 373 345 314 1,460 Total $ 747 $ 707 $ 1,355 $ 804 $ 437 $ 4,050 (1) During 2019 and 2018 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. (2) The Corporate column includes minor adjustments for pension settlement losses and rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through June 30, 2019 . |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Components of Lease Costs and Supplemental Cash Flow Information | The components of lease costs were as follows: For the Three Months Ended For the Six Months Ended (in millions) Operating lease cost $ 56 $ 115 Finance lease cost: Amortization of right-of-use assets 6 10 Interest on lease liabilities — 1 Short-term lease cost 11 20 Variable lease cost 105 205 Sublease income (1 ) (2 ) Total lease cost $ 177 $ 349 Supplemental cash flow information related to leases was as follows: For the Six Months Ended (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (135 ) Operating cash flows from finance leases (1 ) Financing cash flows from finance leases (9 ) Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 78 Finance leases 17 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: As of June 30, 2019 (in millions) Operating Leases: Operating lease right-of-use assets, net of amortization $ 637 Other current liabilities $ 197 Operating lease liabilities 447 Total operating lease liabilities $ 644 Finance Leases: Finance leases, net of amortization (within property, plant & equipment) $ 58 Other current liabilities $ 21 Other long-term liabilities 40 Total finance lease liabilities $ 61 Weighted Average Remaining Lease Term Operating leases 5.0 years Finance leases 3.1 years Weighted Average Discount Rate Operating leases 3.5% Finance leases 4.8% |
Schedule of Future Lease Payments Under Non-cancelable Operating Leases | Future lease payments under non-cancelable leases under prior lease accounting rules (ASC 840) and under the new lease accounting rules (ASC 842) that went into effect on January 1, 2019 were as follows: As of June 30, 2019 As of December 31, 2018 ASC 842 ASC 840 Operating Leases Finance Leases Operating Leases (in millions) Year Ending December 31: 2019 (excluding the six months ended June 30, 2019) $ 113 $ 13 2019 $ 208 2020 193 23 165 2021 137 18 114 2022 96 7 79 2023 63 2 57 Thereafter 120 1 157 Total future undiscounted lease payments $ 722 $ 64 $ 780 Less imputed interest (78 ) (3 ) Total reported lease liability $ 644 $ 61 |
Schedule of Future Lease Payments Under Non-cancelable Finance Leases | Future lease payments under non-cancelable leases under prior lease accounting rules (ASC 840) and under the new lease accounting rules (ASC 842) that went into effect on January 1, 2019 were as follows: As of June 30, 2019 As of December 31, 2018 ASC 842 ASC 840 Operating Leases Finance Leases Operating Leases (in millions) Year Ending December 31: 2019 (excluding the six months ended June 30, 2019) $ 113 $ 13 2019 $ 208 2020 193 23 165 2021 137 18 114 2022 96 7 79 2023 63 2 57 Thereafter 120 1 157 Total future undiscounted lease payments $ 722 $ 64 $ 780 Less imputed interest (78 ) (3 ) Total reported lease liability $ 644 $ 61 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | Goodwill by segment was: As of June 30, As of December 31, (in millions) Latin America $ 833 $ 823 AMEA 3,169 3,210 Europe 7,499 7,519 North America 9,200 9,173 Goodwill $ 20,701 $ 20,725 |
Schedule of Intangible Assets Disclosure | Intangible assets consisted of the following: As of June 30, As of December 31, (in millions) Non-amortizable intangible assets $ 17,229 $ 17,201 Amortizable intangible assets 2,331 2,328 19,560 19,529 Accumulated amortization (1,617 ) (1,527 ) Intangible assets, net $ 17,943 $ 18,002 |
Schedule of Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: Goodwill Intangible Assets, at cost (in millions) Balance at January 1, 2019 $ 20,725 $ 19,529 Currency 20 31 Divestitures (43 ) — Acquisition (1 ) — Balance at June 30, 2019 $ 20,701 $ 19,560 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Impact of Change in Accounting Principle on Consolidated Financial Statements | The following tables show the primary line items on the condensed consolidated statements of earnings and comprehensive earnings that changed as a result of the lag. The condensed consolidated statements of cash flow and equity were also updated to reflect these changes. For the Three Months Ended For the Six Months Ended As Reported As Adjusted As Reported As Adjusted (in millions) Statements of Earnings Provision for income taxes $ (14 ) $ (15 ) $ (321 ) $ (352 ) Equity method investment net earnings 91 87 185 319 Net earnings 325 320 1,269 1,372 Net earnings attributable to Mondelēz International 323 318 1,261 1,364 Earnings per share attributable to Mondelēz International: Basic EPS $ 0.22 $ 0.22 $ 0.85 $ 0.92 Diluted EPS $ 0.22 $ 0.21 $ 0.84 $ 0.91 Statements of Other Comprehensive Earnings Currency translation adjustment $ (874 ) $ (876 ) $ (667 ) $ (666 ) Total other comprehensive earnings/(losses) (680 ) (681 ) (525 ) (523 ) Comprehensive earnings attributable to Mondelēz International (345 ) (351 ) 733 838 |
Restructuring Program (Tables)
Restructuring Program (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Program Liability | The Simplify to Grow Program liability activity for the six months ended June 30, 2019 was: Severance and related costs Asset Write-downs Total (in millions) Liability balance, January 1, 2019 $ 373 $ — $ 373 Charges (1) 35 5 40 Cash spent (89 ) — (89 ) Non-cash settlements/adjustments (2) (30 ) (5 ) (35 ) Currency (1 ) — (1 ) Liability balance, June 30, 2019 $ 288 $ — $ 288 (1) Includes settlement losses of $5 million recorded within benefit plan non-service income on our condensed consolidated statements of earnings. (2) We adopted the new ASU on lease accounting as of January 1, 2019. The ASU requires recording onerous lease liabilities netted with right of use assets. Therefore, during the first quarter of 2019, we reclassified onerous lease liabilities that totaled $23 million as of March 31, 2019, from accrued liabilities and other accrued liabilities to operating lease right of use assets. |
Schedule of Restructuring and Implementation Costs by Segment | In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) in the condensed consolidated statements of earnings within asset impairment and exit costs and within the segment results as follows (refer to Note 8, Restructuring Program ). For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Latin America $ — $ 6 $ 1 $ 14 AMEA (3 ) 4 (2 ) 8 Europe 1 1 2 6 North America 1 2 4 8 Non-cash property, plant and equipment write-downs $ (1 ) $ 13 $ 5 $ 36 During the three and six months ended June 30, 2019 and June 30, 2018 , and since inception of the Simplify to Grow Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes: Latin America AMEA Europe North America (1) Corporate (2) Total (in millions) For the Three Months Ended June 30, 2019 Restructuring Costs $ 7 $ 3 $ 11 $ — $ (1 ) $ 20 Implementation Costs 13 6 17 9 23 68 Total $ 20 $ 9 $ 28 $ 9 $ 22 $ 88 For the Three Months Ended June 30, 2018 Restructuring Costs $ 12 $ 17 $ 63 $ 14 $ 6 $ 112 Implementation Costs 15 8 13 21 13 70 Total $ 27 $ 25 $ 76 $ 35 $ 19 $ 182 For the Six Months Ended June 30, 2019 Restructuring Costs $ 7 $ 9 $ 11 $ 6 $ 7 $ 40 Implementation Costs 28 13 28 13 36 118 Total $ 35 $ 22 $ 39 $ 19 $ 43 $ 158 For the Six Months Ended June 30, 2018 Restructuring Costs $ 36 $ 23 $ 70 $ 26 $ 9 $ 164 Implementation Costs 30 20 29 38 15 132 Total $ 66 $ 43 $ 99 $ 64 $ 24 $ 296 Total Project (3) Restructuring Costs $ 500 $ 526 $ 982 $ 459 $ 123 $ 2,590 Implementation Costs 247 181 373 345 314 1,460 Total $ 747 $ 707 $ 1,355 $ 804 $ 437 $ 4,050 (1) During 2019 and 2018 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. (2) The Corporate column includes minor adjustments for pension settlement losses and rounding. (3) Includes all charges recorded since program inception on May 6, 2014 through June 30, 2019 . |
Debt and Borrowing Arrangemen_2
Debt and Borrowing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings and Related Weighted-Average Interest Rates | Our short-term borrowings and related weighted-average interest rates consisted of: As of June 30, 2019 As of December 31, 2018 Amount Outstanding Weighted- Average Rate Amount Outstanding Weighted- Average Rate (in millions) (in millions) Commercial paper $ 3,543 2.6 % $ 3,054 2.9 % Bank loans 237 14.4 % 138 10.5 % Total short-term borrowings $ 3,780 $ 3,192 |
Schedule of Interest and Other Expense | Interest and other expense, net consisted of: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Interest expense, debt $ 127 $ 115 $ 250 $ 217 Loss on debt extinguishment — 140 — 140 Loss/(gain) related to interest rate swaps — 5 — (9 ) Other (income)/expense, net (26 ) (12 ) (69 ) (20 ) Interest and other expense, net $ 101 $ 248 $ 181 $ 328 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Pre-tax Effects of Derivative Instruments | Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Three Months Ended For the Six Months Ended Location of Gain/(Loss) Recognized in Earnings 2019 2018 2019 2018 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ (50 ) $ 7 $ 11 $ 14 Interest and other expense, net Forecasted transactions (25 ) 72 (20 ) 65 Cost of sales Forecasted transactions (1 ) — (1 ) (5 ) Interest and other expense, net Forecasted transactions (5 ) (1 ) (5 ) (4 ) Selling, general and administrative expenses Commodity contracts 52 (48 ) 66 101 Cost of sales Total $ (29 ) $ 30 $ 51 $ 171 |
Cash flow hedges | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Cash Flow Hedges Effect on Accumulated Other Comprehensive Earnings/(Losses), Net of Taxes | Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Accumulated (loss)/gain at beginning of period $ (236 ) $ (159 ) $ (167 ) $ (113 ) Transfer of realized losses/(gains) in fair value to earnings 12 5 12 (9 ) Unrealized (loss)/gain in fair value (74 ) 21 (143 ) (11 ) Accumulated (loss)/gain at end of period $ (298 ) $ (133 ) $ (298 ) $ (133 ) |
Schedule of Pre-tax Effects of Derivative Instruments | After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) into net earnings were: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Interest rate contracts $ (12 ) $ (5 ) $ (12 ) $ 9 We recognized a loss of $12 million in the three and six months ended June 30, 2019 in the net loss on equity method investment transactions. Refer to Note 7, Equity Method Investments - JDE / Keurig Exchange . We recognized a loss of $5 million in the three months and a gain of $9 million in the six months ended June 30, 2018 in interest and other expense, net related to certain forward-starting interest rate swaps for which the planned timing of the related forecasted debt was changed. After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Currency exchange contracts – forecasted transactions $ 3 $ — $ 3 $ — Interest rate contracts (77 ) 21 (146 ) (11 ) Total $ (74 ) $ 21 $ (143 ) $ (11 ) |
Net investment hedge debt | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Hedges of Net Investments in International Operations | After-tax gains/(losses) related to hedges of net investments in international operations in the form of euro, British pound sterling, Swiss franc and Canadian dollar-denominated debt were recorded within the cumulative translation adjustment section of other comprehensive income and were: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Euro notes $ (36 ) $ 151 $ 22 $ 76 British pound sterling notes 7 21 1 8 Swiss franc notes (21 ) 42 (8 ) 16 Canadian notes (7 ) 6 (14 ) 4 |
Derivative | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of June 30, 2019 As of December 31, 2018 Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives (in millions) Derivatives designated as accounting hedges: Interest rate contracts $ 16 $ 453 $ 17 $ 355 Net investment hedge derivative contracts (1) 434 10 337 28 $ 450 $ 463 $ 354 $ 383 Derivatives not designated as accounting hedges: Currency exchange contracts $ 40 $ 54 $ 72 $ 37 Commodity contracts 223 170 191 210 $ 263 $ 224 $ 263 $ 247 Total fair value $ 713 $ 687 $ 617 $ 630 (1) Net investment hedge contracts consist of cross-currency interest rate swaps and forward contracts. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 9, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote. |
Schedule of Derivative Instruments Fair Value and Measurement Inputs | The fair values (asset/(liability)) of our derivative instruments were determined using: As of June 30, 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 $ (14 ) $ — $ (14 ) $ — Commodity contracts 53 37 16 — Interest rate contracts (437 ) — (437 ) — Net investment hedge contracts 424 — 424 — Total derivatives $ 26 $ 37 $ (11 ) $ — As of December 31, 2018 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 $ 35 $ — $ 35 $ — Commodity contracts (19 ) (1 ) (18 ) — Interest rate contracts (338 ) — (338 ) — Net investment hedge contracts 309 — 309 — Total derivatives $ (13 ) $ (1 ) $ (12 ) $ — |
Schedule of Notional Values of Derivative Instruments | The notional values of our hedging instruments were: Notional Amount As of June 30, 2019 As of December 31, 2018 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,707 $ 3,239 Forecasted transactions 2,732 2,396 Commodity contracts 587 393 Interest rate contracts 7,661 8,679 Net investment hedges: Net investment hedge derivative contracts 6,931 6,678 Non-U.S. dollar debt designated as net investment hedges Euro notes 3,485 3,514 British pound sterling notes 334 336 Swiss franc notes 1,434 1,424 Canadian dollar notes 458 440 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Net periodic pension cost consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended 2019 2018 2019 2018 (in millions) Service cost $ 9 $ 10 $ 30 $ 37 Interest cost 15 15 51 50 Expected return on plan assets (22 ) (22 ) (101 ) (114 ) Amortization: Net loss from experience differences 5 9 37 42 Prior service cost/(benefit) 1 — (1 ) (1 ) Settlement losses and other expenses (1) 4 8 3 — Net periodic pension cost $ 12 $ 20 $ 19 $ 14 U.S. Plans Non-U.S. Plans For the Six Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Service cost $ 18 $ 22 $ 61 $ 75 Interest cost 31 30 102 102 Expected return on plan assets (44 ) (44 ) (204 ) (231 ) Amortization: Net loss from experience differences 10 20 75 84 Prior service cost/(credit) 1 1 (3 ) (1 ) Settlement losses and other expenses (1) 8 15 3 — Net periodic pension cost $ 24 $ 44 $ 34 $ 29 (1) In connection with our Simplify to Grow Program, settlement losses and other expenses were $5 million for the three and six months ended June 30, 2019 and $3 million for the three and six months ended June 30, 2018. These losses were recorded within benefit plan non-service income on our condensed consolidated statements of earnings. |
Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Net periodic postretirement health care benefit consisted of the following: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Service cost $ 2 $ 1 $ 3 $ 3 Interest cost 3 3 7 7 Amortization: Net loss from experience differences 1 3 3 7 Prior service credit (9 ) (9 ) (19 ) (19 ) Net periodic postretirement health care benefit $ (3 ) $ (2 ) $ (6 ) $ (2 ) |
Postemployment Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Costs | Net periodic postemployment cost consisted of the following: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Service cost $ 2 $ 1 $ 3 $ 3 Interest cost 1 1 2 2 Amortization of net gains — — (1 ) (1 ) Net periodic postemployment cost $ 3 $ 2 $ 4 $ 4 |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Options Activity | Stock option activity is reflected below: Shares Subject to Option Weighted- Average Exercise or Grant Price Per Share Average Remaining Contractual Term Aggregate Intrinsic Value Balance at January 1, 2019 43,818,830 $32.36 5 years $ 371 million Annual grant to eligible employees 4,793,570 47.72 Additional options issued 60,030 51.25 Total options granted 4,853,600 47.76 Options exercised (1) (10,842,077 ) 27.03 $ 235 million Options canceled (697,437 ) 40.51 Balance at June 30, 2019 37,132,916 35.78 6 years $ 673 million (1) Cash received from options exercised was $118 million in the three months and $293 million in the six months ended June 30, 2019 . The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $13 million in the three months and $29 million in the six months ended June 30, 2019 . |
Performance Share Units and Other Stock-Based Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Performance Share Units and Stock-Based Awards Activity | Our performance share unit, deferred stock unit and historically granted restricted stock activity is reflected below: Number of Shares Grant Date Weighted-Average Fair Value Per Share (3) Weighted-Average Aggregate Fair Value (3) Balance at January 1, 2019 6,559,010 $42.19 Annual grant to eligible employees: Feb 22, 2019 Performance share units 891,210 57.91 Deferred stock units 666,880 47.72 Additional shares granted (1) 115,353 Various 55.04 Total shares granted 1,673,443 53.65 $ 90 million Vested (2) (1,614,690 ) 36.61 $ 59 million Forfeited (2) (356,333 ) 44.36 Balance at June 30, 2019 6,261,430 46.56 (1) Includes performance share units and deferred stock units. (2) Includes performance share units, deferred stock units and historically granted restricted stock. The actual tax benefit/(expense) realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled less than $1 million in the three months and $2 million in the six months ended June 30, 2019 . (3) The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided. |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Earnings/(Losses) | The following table summarizes the changes in the accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net losses of $59 million in the second quarter of 2019 and $45 million in the second quarter of 2018 and $88 million in the first six months of 2019 and $72 million in the first six months of 2018 . For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (8,412 ) $ (7,545 ) $ (8,603 ) $ (7,740 ) Currency translation adjustments (32 ) (720 ) 136 (557 ) Tax (expense)/benefit (1 ) (156 ) 21 (109 ) Other comprehensive earnings/(losses) (33 ) (876 ) 157 (666 ) Less: (earnings)/loss attributable to noncontrolling interests (2 ) 12 (1 ) (3 ) Balance at end of period (8,447 ) (8,409 ) (8,447 ) (8,409 ) Pension and Other Benefit Plans: Balance at beginning of period $ (1,850 ) $ (2,150 ) $ (1,860 ) $ (2,144 ) Net actuarial gain/(loss) arising during period 1 38 (23 ) 45 Tax (expense)/benefit on net actuarial gain/(loss) 1 (9 ) 7 (9 ) Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (1) 34 44 66 91 Settlement losses and other expenses (1) 24 8 28 15 Tax expense/(benefit) on reclassifications (2) (11 ) (12 ) (18 ) (25 ) Currency impact 5 100 4 46 Other comprehensive earnings/(losses) 54 169 64 163 Balance at end of period (1,796 ) (1,981 ) (1,796 ) (1,981 ) Derivative Cash Flow Hedges: Balance at beginning of period $ (236 ) $ (159 ) $ (167 ) $ (113 ) Net derivative gains/(losses) (86 ) 17 (163 ) (12 ) Tax (expense)/benefit on net derivative gain/(loss) 11 (4 ) 19 (4 ) Losses/(gains) reclassified into net earnings: Interest rate contracts (3) 12 7 12 (11 ) Tax expense/(benefit) on reclassifications (2) — (2 ) — 2 Currency impact 1 8 1 5 Other comprehensive earnings/(losses) (62 ) 26 (131 ) (20 ) Balance at end of period (298 ) (133 ) (298 ) (133 ) Accumulated other comprehensive income attributable to Mondelēz International: Balance at beginning of period $ (10,498 ) $ (9,854 ) $ (10,630 ) $ (9,997 ) Total other comprehensive earnings/(losses) (41 ) (681 ) 90 (523 ) Less: (earnings)/loss attributable to noncontrolling interests (2 ) 12 (1 ) (3 ) Other comprehensive earnings/(losses) attributable to Mondelēz International (43 ) (669 ) 89 (526 ) Balance at end of period $ (10,541 ) $ (10,523 ) $ (10,541 ) $ (10,523 ) (1) These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 11, Benefit Plans , and net loss on equity method investment transactions. (2) Taxes reclassified to earnings are recorded within the provision for income taxes. (3) These reclassified gains or losses are recorded within interest and other expense, net and net loss on equity method investment transactions. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions, except per share data) Net earnings $ 808 $ 320 $ 1,728 $ 1,372 Noncontrolling interest earnings (1 ) (2 ) (7 ) (8 ) Net earnings attributable to Mondelēz International $ 807 $ 318 $ 1,721 $ 1,364 Weighted-average shares for basic EPS 1,445 1,475 1,447 1,482 Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares 13 13 13 14 Weighted-average shares for diluted EPS 1,458 1,488 1,460 1,496 Basic earnings per share attributable to Mondelēz International $ 0.56 $ 0.22 $ 1.19 $ 0.92 Diluted earnings per share attributable to Mondelēz International $ 0.55 $ 0.21 $ 1.18 $ 0.91 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Net Revenues and Earnings | Our segment net revenues and earnings were: For the Three Months Ended For the Six Months Ended 2019 2018 2019 2018 (in millions) Net revenues: Latin America $ 737 $ 774 $ 1,537 $ 1,665 AMEA 1,352 1,360 2,893 2,902 Europe 2,247 2,303 4,798 5,009 North America 1,726 1,675 3,372 3,301 Net revenues $ 6,062 $ 6,112 $ 12,600 $ 12,877 Operating income: Latin America $ 68 $ 92 $ 166 $ 218 AMEA 191 177 447 405 Europe 408 367 908 864 North America 407 (95 ) 726 180 Unrealized gains on hedging activities 33 88 49 294 General corporate expenses (79 ) (91 ) (188 ) (155 ) Amortization of intangibles (43 ) (44 ) (87 ) (88 ) Net gain on divestitures 41 — 41 — Acquisition-related costs (1 ) (13 ) (1 ) (13 ) Operating income 1,025 481 2,061 1,705 Benefit plan non-service income 12 15 29 28 Interest and other expense, net (101 ) (248 ) (181 ) (328 ) Earnings before income taxes $ 936 $ 248 $ 1,909 $ 1,405 |
Schedule of Net Revenues by Product Category | Net revenues by product category were: For the Three Months Ended June 30, 2019 Latin America AMEA Europe North America Total (in millions) Biscuits $ 186 $ 405 $ 767 $ 1,451 $ 2,809 Chocolate 157 438 1,006 42 1,643 Gum & Candy 209 224 181 233 847 Beverages 108 169 20 — 297 Cheese & Grocery 77 116 273 — 466 Total net revenues $ 737 $ 1,352 $ 2,247 $ 1,726 $ 6,062 For the Three Months Ended June 30, 2018 Latin America AMEA Europe North America Total (in millions) Biscuits $ 192 $ 387 $ 810 $ 1,403 $ 2,792 Chocolate 161 440 1,003 46 1,650 Gum & Candy 224 236 200 226 886 Beverages 116 173 19 — 308 Cheese & Grocery 81 124 271 — 476 Total net revenues $ 774 $ 1,360 $ 2,303 $ 1,675 $ 6,112 For the Six Months Ended June 30, 2019 Latin America AMEA Europe North America Total (in millions) Biscuits $ 356 $ 866 $ 1,501 $ 2,823 $ 5,546 Chocolate 387 995 2,366 101 3,849 Gum & Candy 409 449 354 448 1,660 Beverages 231 341 46 — 618 Cheese & Grocery 154 242 531 — 927 Total net revenues $ 1,537 $ 2,893 $ 4,798 $ 3,372 $ 12,600 For the Six Months Ended June 30, 2018 Latin America AMEA Europe North America Total (in millions) Biscuits $ 375 $ 829 $ 1,605 $ 2,736 $ 5,545 Chocolate 404 1,013 2,426 103 3,946 Gum & Candy 448 471 386 462 1,767 Beverages 277 345 47 — 669 Cheese & Grocery 161 244 545 — 950 Total net revenues $ 1,665 $ 2,902 $ 5,009 $ 3,301 $ 12,877 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($)country | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)country | Jun. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Net revenues | $ 6,062 | $ 6,112 | $ 12,600 | $ 12,877 | ||
Number of countries in which products are sold (more than) | country | 150 | 150 | ||||
Number of countries in which entity operates (more than) | country | 80 | 80 | ||||
Outstanding principal amount of receivables sold under factoring arrangement | $ 712 | $ 712 | $ 819 | |||
ASU 2016-02 | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Lease related assets | $ 710 | |||||
Lease related liabilities | $ 730 | |||||
Argentina | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Net monetary liabilities position | 12 | 12 | ||||
Net revenues | $ 99 | $ 199 | ||||
Percentage of consolidated net revenues | 1.60% | 1.60% | ||||
Argentina | Selling, general and administrative expenses | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Remeasurement gain (loss) due to inflationary accounting | $ 1 | $ (1) | ||||
U.K. | Geographic Concentration Risk | Net Revenues | ||||||
Summary of Significant Accounting Policies [Line Items] | ||||||
Concentration risk percentage | 8.40% |
Divestitures and Acquisitions (
Divestitures and Acquisitions (Details) - USD ($) $ in Millions | May 28, 2019 | Jun. 07, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 07, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||||
Divestiture transaction costs | $ (41) | $ 0 | $ (41) | $ 0 | ||||
Payment to acquire business, net of cash received | 0 | $ 528 | ||||||
Goodwill | 20,701 | 20,701 | $ 20,725 | |||||
AMEA | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 3,169 | 3,169 | 3,210 | |||||
North America | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 9,200 | 9,200 | $ 9,173 | |||||
North America | Tate’s Bake Shop | ||||||||
Business Acquisition [Line Items] | ||||||||
Payment to acquire business, net of cash received | $ 527 | |||||||
Definite-lived intangibles assets acquired | 45 | 45 | ||||||
Indefinite-lived intangibles assets acquired | 205 | 205 | ||||||
Goodwill | 297 | 297 | ||||||
Property, plant, and equipment acquired | 16 | 16 | ||||||
Inventory acquired | 5 | 5 | ||||||
Accounts receivable acquired | 9 | 9 | ||||||
Current liabilities assumed | 7 | 7 | ||||||
Deferred tax liabilities assumed | 43 | 43 | ||||||
Incremental revenues from acquisition | $ 35 | |||||||
Incremental operating income from acquisition | $ 4 | |||||||
Cheese Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | AMEA | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture of businesses | $ 158 | |||||||
Current assets divested | 19 | |||||||
Non-current assets divested | 96 | |||||||
Divestiture transaction costs | 2 | |||||||
Gain on divestiture, net of transaction costs | $ 41 | |||||||
Divestiture-related costs | $ 11 | $ 10 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 722 | $ 726 |
Finished product | 2,129 | 1,987 |
Inventories, gross | 2,851 | 2,713 |
Inventory reserves | (120) | (121) |
Inventories, net | $ 2,731 | $ 2,592 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 15,211 | $ 15,245 |
Accumulated depreciation | (6,661) | (6,763) |
Property, plant and equipment, net | 8,550 | 8,482 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 422 | 424 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,017 | 2,984 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 10,918 | 10,943 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 854 | $ 894 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Capital expenditures | $ 465 | $ 532 |
Accrued capital expenditures unpaid | 217 | 268 |
Payments for capital expenditures accrued in the prior year | $ 331 | $ 357 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Asset Impairment and Exit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | $ 4 | $ 43 | ||
Simplify to Grow Program | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | $ (1) | $ 13 | 5 | 36 |
Simplify to Grow Program | Latin America | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | 0 | 6 | 1 | 14 |
Simplify to Grow Program | AMEA | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | (3) | 4 | (2) | 8 |
Simplify to Grow Program | Europe | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | 1 | 1 | 2 | 6 |
Simplify to Grow Program | North America | ||||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||||
Non-cash property, plant and equipment write-downs | $ 1 | $ 2 | $ 4 | $ 8 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Option to extend leases | 6 years |
Amount of operating lease contracts not yet commenced | $ 46 |
Term of operating lease contracts not yet commenced | 15 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining term of leases | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining term of leases | 9 years |
Leases - Operating Lease Costs
Leases - Operating Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 56 | $ 115 |
Amortization of right-of-use assets | 6 | 10 |
Interest on lease liabilities | 0 | 1 |
Short-term lease cost | 11 | 20 |
Variable lease cost | 105 | 205 |
Sublease income | (1) | (2) |
Total lease cost | $ 177 | $ 349 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ (135) |
Operating cash flows from finance leases | (1) |
Financing cash flows from finance leases | (9) |
Operating leases | 78 |
Finance leases | $ 17 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Total operating lease liabilities | $ 637 | $ 0 |
Other current liabilities | 197 | |
Operating lease liabilities | 447 | $ 0 |
Total operating lease liabilities | 644 | |
Finance leases, net of amortization (within property, plant & equipment) | 58 | |
Other current liabilities | 21 | |
Other long-term liabilities | 40 | |
Total finance lease liabilities | $ 61 | |
Operating leases, weighted average remaining lease term | 5 years | |
Finance leases, weighted average remaining lease term | 3 years 1 month 6 days | |
Operating leases, weighted average discount rate | 3.50% | |
Finance leases, weighted average discount rate | 4.80% |
Leases - Future Lease Payments
Leases - Future Lease Payments Under Non-cancelable Leases (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
ASC 842 Operating Leases | ||
2019 (excluding the six months ended June 30, 2019) | $ 113 | |
2020 | 193 | |
2021 | 137 | |
2022 | 96 | |
2023 | 63 | |
Thereafter | 120 | |
Total future undiscounted lease payments | 722 | |
Less imputed interest | (78) | |
Total operating lease liabilities | 644 | |
ASC 842 Finance Leases | ||
2019 (excluding the six months ended June 30, 2019) | 13 | |
2020 | 23 | |
2021 | 18 | |
2022 | 7 | |
2023 | 2 | |
Thereafter | 1 | |
Total future undiscounted lease payments | 64 | |
Less imputed interest | (3) | |
Total finance lease liabilities | $ 61 | |
ASC 840 Operating Leases | ||
2019 | $ 208 | |
2020 | 165 | |
2021 | 114 | |
2022 | 79 | |
2023 | 57 | |
Thereafter | 157 | |
Total future undiscounted lease payments | $ 780 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill by Segment (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 20,701 | $ 20,725 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 833 | 823 |
AMEA | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 3,169 | 3,210 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 7,499 | 7,519 |
North America | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 9,200 | $ 9,173 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Non-amortizable intangible assets | $ 17,229 | $ 17,201 |
Amortizable intangible assets | 2,331 | 2,328 |
Total intangible assets, gross | 19,560 | 19,529 |
Accumulated amortization | (1,617) | (1,527) |
Intangible assets, net | $ 17,943 | $ 18,002 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)brand | Sep. 30, 2018USD ($)brand | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)brand | Jun. 30, 2018USD ($) | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Amortization expense for intangible assets | $ 43 | $ 44 | $ 87 | $ 88 | |
Estimated amortization expense in year 1 | 170 | 170 | |||
Estimated amortization expense in year 2 | 170 | 170 | |||
Estimated amortization expense in year 3 | 85 | 85 | |||
Estimated amortization expense in year 4 | 85 | 85 | |||
Estimated amortization expense in year 5 | $ 85 | $ 85 | |||
Trademarks | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Asset impairments | $ 68 | ||||
Number of impaired trademarks | brand | 5 | 5 | 5 | ||
Number of trademarks with fair value in excess of book value, 10% or less | brand | 7 | 7 | |||
Book value of trademarks with fair value in excess of book value, 10% or less | $ 536 | $ 536 | |||
Europe | Trademarks | Gum, Chocolate, Biscuits and Candy | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Asset impairments | $ 45 | ||||
North America | Trademarks | Gum, Chocolate, Biscuits and Candy | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Asset impairments | 14 | ||||
AMEA | Trademarks | Gum, Chocolate, Biscuits and Candy | |||||
Goodwill and Intangible Assets Disclosure [Line Items] | |||||
Asset impairments | $ 9 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Goodwill and Intangible Assets (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill | |
Balance at January 1, 2019 | $ 20,725 |
Currency | 20 |
Divestitures | (43) |
Acquisition | (1) |
Balance at June 30, 2019 | 20,701 |
Intangible Assets, at cost | |
Balance at January 1, 2019 | 19,529 |
Currency | 31 |
Divestitures | 0 |
Acquisition | 0 |
Balance at June 30, 2018 | $ 19,560 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019USD ($)director | Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2019USD ($)director | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jul. 09, 2018 | Mar. 31, 2016USD ($) | Mar. 07, 2016 | Jul. 02, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investments | $ 7,095 | $ 7,095 | $ 7,123 | |||||||||
Equity method investment net earnings | 113 | $ 87 | 226 | $ 319 | ||||||||
Net gain (loss) equity method investment transaction | $ (25) | 0 | $ (2) | 0 | ||||||||
JDE | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment, voting interest percentage | 26.50% | 26.50% | ||||||||||
Equity method investment, ownership percentage | 26.40% | 26.40% | 26.50% | 43.50% | ||||||||
Equity method investment, profit and dividend sharing interest percentage | 26.20% | 26.20% | ||||||||||
Cash dividends received from equity method investments | $ 73 | $ 73 | ||||||||||
JDE | Equity Earnings | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment net earnings | $ 53 | 42 | $ 103 | 88 | ||||||||
Keurig | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment, ownership percentage | 24.20% | |||||||||||
Fair value of ownership of equity method investment | $ 2,000 | |||||||||||
Net gain (loss) equity method investment transaction | $ (29) | $ 43 | ||||||||||
Keurig | Keurig with Dr Pepper Snapple Group, Inc. | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment, ownership percentage | 24.20% | |||||||||||
Net gain (loss) equity method investment transaction | 778 | |||||||||||
Deferred tax expense related to gain on equity method investment transaction | 192 | |||||||||||
After-tax gain on equity method investment transaction | $ 586 | |||||||||||
Number of director positions | director | 2 | 2 | ||||||||||
KDP | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment, ownership percentage | 13.60% | 13.60% | 13.60% | 13.80% | ||||||||
Cash dividends received from equity method investments | $ 28 | 2 | $ 57 | 5 | ||||||||
Fair value of ownership of equity method investment | 5,500 | 5,500 | ||||||||||
Pre-tax gain related to the impact of a KDP acquisition that decreased the Company's ownership interest | $ 23 | |||||||||||
KDP | Equity Earnings | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment net earnings | $ 35 | 16 | $ 72 | 170 | ||||||||
KDP | Shareholder Loan Interest | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Equity method investment net earnings | $ 6 | $ 12 |
Equity Method Investments - Imp
Equity Method Investments - Impact of Change in Accounting Principle on Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statements of Earnings | ||||
Provision for income taxes | $ (216) | $ (15) | $ (405) | $ (352) |
Equity method investment net earnings | 113 | 87 | 226 | 319 |
Net earnings | 808 | 320 | 1,728 | 1,372 |
Net earnings attributable to Mondelēz International | $ 807 | $ 318 | $ 1,721 | $ 1,364 |
Earnings per share attributable to Mondelēz International: | ||||
Basic EPS (in dollars per share) | $ 0.56 | $ 0.22 | $ 1.19 | $ 0.92 |
Diluted EPS (in dollars per share) | $ 0.55 | $ 0.21 | $ 1.18 | $ 0.91 |
Statements of Other Comprehensive Earnings | ||||
Currency translation adjustment | $ (33) | $ (876) | $ 157 | $ (666) |
Total other comprehensive earnings/(losses) | (41) | (681) | 90 | (523) |
Comprehensive earnings/(losses) attributable to Mondelēz International | $ 764 | (351) | $ 1,810 | 838 |
Change in Accounting Method Accounted of Earnings in Equity Method Investments [Member] | As Reported | ||||
Statements of Earnings | ||||
Provision for income taxes | (14) | (321) | ||
Equity method investment net earnings | 91 | 185 | ||
Net earnings | 325 | 1,269 | ||
Net earnings attributable to Mondelēz International | $ 323 | $ 1,261 | ||
Earnings per share attributable to Mondelēz International: | ||||
Basic EPS (in dollars per share) | $ 0.22 | $ 0.85 | ||
Diluted EPS (in dollars per share) | $ 0.22 | $ 0.84 | ||
Statements of Other Comprehensive Earnings | ||||
Currency translation adjustment | $ (874) | $ (667) | ||
Total other comprehensive earnings/(losses) | (680) | (525) | ||
Comprehensive earnings/(losses) attributable to Mondelēz International | $ (345) | $ 733 |
Restructuring Program - Additio
Restructuring Program - Additional Information (Details) - USD ($) $ in Millions | Sep. 06, 2018 | Aug. 31, 2016 | May 06, 2014 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |||
2014-2018 Restructuring Program | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Approved restructuring program cost | $ 5,700 | $ 3,500 | |||||||||||
Reallocation of previously approved capital expenditures to be spent on restructuring program cash costs | 600 | ||||||||||||
2014-2018 Restructuring Program | Maximum | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Approved capital expenditures | 1,600 | $ 2,200 | |||||||||||
2014-2018 Restructuring Program | Restructuring Program Charges | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Approved restructuring program cost | 4,100 | ||||||||||||
2014-2018 Restructuring Program | Cash Costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Approved restructuring program cost | 3,100 | ||||||||||||
2014-2018 Restructuring Program | Non-cash Costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Approved restructuring program cost | $ 1,000 | ||||||||||||
Simplify to Grow Program | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Approved restructuring program cost | $ 7,700 | ||||||||||||
Restructuring and implementation charges | $ 88 | $ 182 | $ 158 | $ 296 | $ 4,100 | $ 4,050 | [1] | ||||||
Restructuring charges | 20 | 112 | 40 | [2] | 164 | 2,590 | [1] | ||||||
Cash spent in restructuring | 89 | ||||||||||||
Non-cash asset write-downs | 6 | 14 | 35 | [3] | 39 | ||||||||
Restructuring reserve | 288 | 288 | 288 | $ 373 | |||||||||
Implementation costs | 68 | 70 | 118 | 132 | 1,460 | [1] | |||||||
Simplify to Grow Program | Maximum | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Approved capital expenditures | 2,300 | ||||||||||||
Increase in approved restructuring program costs | 1,300 | ||||||||||||
Increase in approved capital expenditures | 700 | ||||||||||||
Simplify to Grow Program | Other current liabilities | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring reserve | 248 | 248 | 248 | ||||||||||
Simplify to Grow Program | Other liabilities | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring reserve | 40 | 40 | 40 | ||||||||||
Simplify to Grow Program | Restructuring Program Charges | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Approved restructuring program cost | 5,400 | ||||||||||||
Simplify to Grow Program | Cash Costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Approved restructuring program cost | 4,100 | ||||||||||||
Simplify to Grow Program | Non-cash Costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Approved restructuring program cost | $ 1,300 | ||||||||||||
Simplify to Grow Program | Severance and Related Costs | |||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||
Restructuring charges | [2] | 35 | |||||||||||
Cash spent in restructuring | 36 | $ 82 | 89 | $ 161 | |||||||||
Non-cash asset write-downs | [4] | 30 | |||||||||||
Restructuring reserve | $ 288 | $ 288 | $ 288 | $ 373 | |||||||||
[1] | Includes all charges recorded since program inception on May 6, 2014 through June 30, 2019 . | ||||||||||||
[2] | Includes settlement losses of $5 million | ||||||||||||
[3] | We adopted the new ASU on lease accounting as of January 1, 2019. The ASU requires recording onerous lease liabilities netted with right of use assets. Therefore, during the first quarter of 2019, we reclassified onerous lease liabilities that totaled $23 million as of March 31, 2019, from accrued liabilities and other accrued liabilities to operating lease right of use assets. | ||||||||||||
[4] | During 2019 and 2018 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. |
Restructuring Program - Restruc
Restructuring Program - Restructuring Liability Activity (Details) - Simplify to Grow Program - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 62 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | ||||
Restructuring Reserve [Roll Forward] | |||||||||
Liability balance, January 1, 2019 | $ 373 | $ 373 | |||||||
Charges (1) | $ 20 | $ 112 | 40 | [1] | $ 164 | $ 2,590 | [2] | ||
Cash spent | (89) | ||||||||
Non-cash settlements/adjustments | (6) | (14) | (35) | [3] | (39) | ||||
Currency | (1) | ||||||||
Liability balance, June 30, 2019 | 288 | 288 | 288 | ||||||
Pension Plans | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Settlement losses and other expenses within benefit plan non-service income | 5 | 3 | 5 | 3 | |||||
ASU 2016-02 | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Non-cash settlements/adjustments | [4] | 23 | |||||||
Severance and related costs | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Liability balance, January 1, 2019 | 373 | 373 | |||||||
Charges (1) | [1] | 35 | |||||||
Cash spent | (36) | $ (82) | (89) | $ (161) | |||||
Non-cash settlements/adjustments | [4] | (30) | |||||||
Currency | (1) | ||||||||
Liability balance, June 30, 2019 | 288 | 288 | 288 | ||||||
Asset Write-downs | |||||||||
Restructuring Reserve [Roll Forward] | |||||||||
Liability balance, January 1, 2019 | $ 0 | 0 | |||||||
Charges (1) | [1] | 5 | |||||||
Cash spent | 0 | ||||||||
Non-cash settlements/adjustments | [4] | (5) | |||||||
Currency | 0 | ||||||||
Liability balance, June 30, 2019 | $ 0 | $ 0 | $ 0 | ||||||
[1] | Includes settlement losses of $5 million | ||||||||
[2] | Includes all charges recorded since program inception on May 6, 2014 through June 30, 2019 . | ||||||||
[3] | We adopted the new ASU on lease accounting as of January 1, 2019. The ASU requires recording onerous lease liabilities netted with right of use assets. Therefore, during the first quarter of 2019, we reclassified onerous lease liabilities that totaled $23 million as of March 31, 2019, from accrued liabilities and other accrued liabilities to operating lease right of use assets. | ||||||||
[4] | During 2019 and 2018 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. |
Restructuring Program - Restr_2
Restructuring Program - Restructuring and Implementation Costs by Segments (Details) - Simplify to Grow Program - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 59 Months Ended | 62 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Jun. 30, 2019 | [2] | |||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | $ 20 | $ 112 | $ 40 | [1] | $ 164 | $ 2,590 | |||
Implementation Costs | 68 | 70 | 118 | 132 | 1,460 | ||||
Total | 88 | 182 | 158 | 296 | $ 4,100 | 4,050 | |||
Operating Segments | Latin America | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 7 | 12 | 7 | 36 | 500 | ||||
Implementation Costs | 13 | 15 | 28 | 30 | 247 | ||||
Total | 20 | 27 | 35 | 66 | 747 | ||||
Operating Segments | AMEA | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 3 | 17 | 9 | 23 | 526 | ||||
Implementation Costs | 6 | 8 | 13 | 20 | 181 | ||||
Total | 9 | 25 | 22 | 43 | 707 | ||||
Operating Segments | Europe | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | 11 | 63 | 11 | 70 | 982 | ||||
Implementation Costs | 17 | 13 | 28 | 29 | 373 | ||||
Total | 28 | 76 | 39 | 99 | 1,355 | ||||
Operating Segments | North America | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | [3] | 0 | 14 | 6 | 26 | 459 | |||
Implementation Costs | [3] | 9 | 21 | 13 | 38 | 345 | |||
Total | [3] | 9 | 35 | 19 | 64 | 804 | |||
Corporate | |||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||
Restructuring Costs | [4] | (1) | 6 | 7 | 9 | 123 | |||
Implementation Costs | [4] | 23 | 13 | 36 | 15 | 314 | |||
Total | [4] | $ 22 | $ 19 | $ 43 | $ 24 | $ 437 | |||
[1] | Includes settlement losses of $5 million | ||||||||
[2] | Includes all charges recorded since program inception on May 6, 2014 through June 30, 2019 . | ||||||||
[3] | During 2019 and 2018 , our North America region implementation costs included incremental costs that we incurred related to renegotiating collective bargaining agreements that expired in February 2016 for eight U.S. facilities and related to executing business continuity plans for the North America business. | ||||||||
[4] | The Corporate column includes minor adjustments for pension settlement losses and rounding. |
Debt and Borrowing Arrangemen_3
Debt and Borrowing Arrangements - Short-Term Borrowings and Related Weighted-Average Interest Rates (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 3,780 | $ 3,192 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 3,543 | $ 3,054 |
Weighted-Average Rate | 2.60% | 2.90% |
Bank loans | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 237 | $ 138 |
Weighted-Average Rate | 14.40% | 10.50% |
Debt and Borrowing Arrangemen_4
Debt and Borrowing Arrangements - Additional Information (Details) - USD ($) | Feb. 27, 2019 | Feb. 13, 2019 | Feb. 01, 2019 | Oct. 14, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||||
Short-term borrowings | $ 3,780,000,000 | $ 3,192,000,000 | ||||||
Long-term debt proceeds | 597,000,000 | $ 2,948,000,000 | ||||||
Long-term debt matured | $ 409,000,000 | $ 1,442,000,000 | ||||||
Weighted-average interest rate of total debt | 2.40% | 2.30% | 2.10% | |||||
Fair value of total debt | $ 20,009,000,000 | $ 18,650,000,000 | ||||||
Carrying value of total debt | 19,219,000,000 | 18,372,000,000 | ||||||
International Subsidiaries | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity | 1,700,000,000 | 1,700,000,000 | ||||||
Revolving Credit Facility October 2016 | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity | $ 4,500,000,000 | |||||||
Line of credit, expiration period | 5 years | |||||||
Line of Credit | Revolving Credit Facility | Multi-year Senior Unsecured Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity | $ 4,500,000,000 | |||||||
Total shareholders' equity, excluding accumulated other comprehensive earnings/(losses) | 24,600,000,000 | 36,600,000,000 | ||||||
Line of credit facility outstanding amount | 0 | |||||||
Notes Payable | 3.625% U.S. dollar-denominated Fixed-rate Notes Due May 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 600,000,000 | |||||||
Debt instrument, interest rate | 3.625% | |||||||
Long-term debt proceeds | $ 595,000,000 | |||||||
Discounts and deferred financing costs | $ 5,000,000 | |||||||
Notes Payable | 2.863% U.S. dollar-denominated Variable Rate Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt matured | $ 400,000,000 | |||||||
Commercial paper | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term borrowings | $ 3,543,000,000 | 3,054,000,000 | ||||||
Commercial paper | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper, maturity period | 1 day | |||||||
Commercial paper | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper, maturity period | 59 days | |||||||
Commercial paper | Revolving Credit Facility | 364-Day Senior Unsecured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity | $ 1,500,000,000 | |||||||
Line of credit, expiration period | 364 days | |||||||
Amounts drawn on the facility | $ 0 | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term borrowings | $ 237,000,000 | $ 138,000,000 |
Debt and Borrowing Arrangemen_5
Debt and Borrowing Arrangements - Interest and Other Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Disclosure [Abstract] | ||||
Interest expense, debt | $ 127 | $ 115 | $ 250 | $ 217 |
Loss on debt extinguishment | 0 | 140 | 0 | 140 |
Loss/(gain) related to interest rate swaps | 0 | 5 | 0 | (9) |
Other (income)/expense, net | (26) | (12) | (69) | (20) |
Interest and other expense, net | 101 | 248 | 181 | 328 |
Net investment hedge debt | Net investment hedge derivative contracts | ||||
Debt Instrument [Line Items] | ||||
Gains (losses) included in other income related to hedge ineffectiveness | $ 34 | $ 33 | $ 67 | $ 50 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | $ 713 | $ 617 | |
Liability Derivatives | 687 | 630 | |
Derivatives designated as accounting hedges | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 450 | 354 | |
Liability Derivatives | 463 | 383 | |
Derivatives designated as accounting hedges | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 16 | 17 | |
Liability Derivatives | 453 | 355 | |
Derivatives designated as accounting hedges | Net investment hedge derivative contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | [1] | 434 | 337 |
Liability Derivatives | [1] | 10 | 28 |
Derivatives not designated as accounting hedges | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 263 | 263 | |
Liability Derivatives | 224 | 247 | |
Derivatives not designated as accounting hedges | Currency exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 40 | 72 | |
Liability Derivatives | 54 | 37 | |
Derivatives not designated as accounting hedges | Commodity contracts | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives | 223 | 191 | |
Liability Derivatives | $ 170 | $ 210 | |
[1] | Net investment hedge contracts consist of cross-currency interest rate swaps and forward contracts. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 9, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote. |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Fair Value and Measurement Inputs (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Total derivatives | $ 26 | $ (13) |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | (14) | 35 |
Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 53 | (19) |
Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | (437) | (338) |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Total derivatives | 424 | 309 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Total derivatives | 37 | (1) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 37 | (1) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Total derivatives | (11) | (12) |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | (14) | 35 |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 16 | (18) |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | (437) | (338) |
Significant Other Observable Inputs (Level 2) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Total derivatives | 424 | 309 |
Significant Unobservable Inputs (Level 3) | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Net investment hedge contracts | ||
Derivative [Line Items] | ||
Total derivatives | $ 0 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net loss on equity method investment transactions | $ 25,000,000 | $ 0 | $ 2,000,000 | $ 0 | |
Loss/(gain) related to interest rate swaps | 0 | (5,000,000) | 0 | 9,000,000 | |
Cash flow hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net derivative gains/(losses) | (74,000,000) | 21,000,000 | (143,000,000) | (11,000,000) | |
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | (12,000,000) | (5,000,000) | (12,000,000) | 9,000,000 | |
Interest rate contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, aggregate notional value | 7,661,000,000 | 7,661,000,000 | $ 8,679,000,000 | ||
Interest rate contracts | Cash flow hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Expected transfers of unrealized losses to earnings, within next 12 months or less | $ 89,000,000 | ||||
Hedged forecasted transaction period | 4 years 4 months | ||||
Net derivative gains/(losses) | (77,000,000) | 21,000,000 | $ (146,000,000) | (11,000,000) | |
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | (12,000,000) | (5,000,000) | (12,000,000) | 9,000,000 | |
Net investment hedge contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, aggregate notional value | 6,931,000,000 | 6,931,000,000 | $ 6,678,000,000 | ||
Net derivative gains/(losses) | 60,000,000 | 276,000,000 | 74,000,000 | 265,000,000 | |
After-tax gains/(losses) on contracts settled recorded in cumulative translation adjustment of other comprehensive income | (7,000,000) | ||||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | 0 | 0 | 0 | 0 | |
Net investment hedge contracts | Net investment hedge debt | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses), net of taxes, recognized in income, excluded from effectiveness testing | 34,000,000 | $ 33,000,000 | 67,000,000 | $ 50,000,000 | |
Reclassification out of Accumulated Other Comprehensive Income | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net loss on equity method investment transactions | $ 12,000,000 | $ 12,000,000 |
Financial Instruments - Notiona
Financial Instruments - Notional Values of Hedging Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Net investment hedge debt | Euro notes | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,485 | $ 3,514 |
Net investment hedge debt | British pound sterling notes | ||
Derivative [Line Items] | ||
Notional Amount | 334 | 336 |
Net investment hedge debt | Swiss franc notes | ||
Derivative [Line Items] | ||
Notional Amount | 1,434 | 1,424 |
Net investment hedge debt | Canadian dollar notes | ||
Derivative [Line Items] | ||
Notional Amount | 458 | 440 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | ||
Derivative [Line Items] | ||
Notional Amount | 3,707 | 3,239 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 2,732 | 2,396 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 587 | 393 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 7,661 | 8,679 |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Notional Amount | $ 6,931 | $ 6,678 |
Financial Instruments - Cash Fl
Financial Instruments - Cash Flow Hedges Effect on Accumulated Other Comprehensive Earnings/(Losses), Net of Tax (Details) - Cash flow hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||||
Accumulated (loss)/gain at beginning of period | $ (236) | $ (159) | $ (167) | $ (113) |
Transfer of realized losses/(gains) in fair value to earnings | 12 | 5 | 12 | (9) |
Unrealized (loss)/gain in fair value | (74) | 21 | (143) | (11) |
Accumulated (loss)/gain at end of period | $ (298) | $ (133) | $ (298) | $ (133) |
Financial Instruments - Cash _2
Financial Instruments - Cash Flow Hedges After-tax Gains/(Losses) (Details) - Cash flow hedges - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | $ (12) | $ (5) | $ (12) | $ 9 |
Net derivative gains/(losses) | (74) | 21 | (143) | (11) |
Currency exchange contracts | Forecasted transactions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net derivative gains/(losses) | 3 | 0 | 3 | 0 |
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains/(losses), net of taxes, reclassified from accumulated other comprehensive income into earnings | (12) | (5) | (12) | 9 |
Net derivative gains/(losses) | $ (77) | $ 21 | $ (146) | $ (11) |
Financial Instruments - Hedges
Financial Instruments - Hedges of Net Investments in International Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Euro notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | $ (36) | $ 151 | $ 22 | $ 76 |
British pound sterling notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | 7 | 21 | 1 | 8 |
Swiss franc notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | (21) | 42 | (8) | 16 |
Canadian dollar notes | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
After-tax gains/(losses) related to hedges of net investments in international operations | $ (7) | $ 6 | $ (14) | $ 4 |
Financial Instruments - Economi
Financial Instruments - Economic Hedges (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | $ (29) | $ 30 | $ 51 | $ 171 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | Interest and other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (50) | 7 | 11 | 14 |
Currency exchange contracts | Forecasted transactions | Interest and other expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (1) | 0 | (1) | (5) |
Currency exchange contracts | Forecasted transactions | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (25) | 72 | (20) | 65 |
Currency exchange contracts | Forecasted transactions | Selling, general and administrative expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (5) | (1) | (5) | (4) |
Commodity contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | $ 52 | $ (48) | $ 66 | $ 101 |
Benefit Plans - Pension Costs (
Benefit Plans - Pension Costs (Details) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Simplify to Grow Program | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement losses and other expenses | $ 5 | $ 3 | $ 5 | $ 3 |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 9 | 10 | 18 | 22 |
Interest cost | 15 | 15 | 31 | 30 |
Expected return on plan assets | (22) | (22) | (44) | (44) |
Net loss from experience differences | 5 | 9 | 10 | 20 |
Prior service cost/(credit) | 1 | 0 | 1 | 1 |
Settlement losses and other expenses | 4 | 8 | 8 | 15 |
Net periodic benefit costs | 12 | 20 | 24 | 44 |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 30 | 37 | 61 | 75 |
Interest cost | 51 | 50 | 102 | 102 |
Expected return on plan assets | (101) | (114) | (204) | (231) |
Net loss from experience differences | 37 | 42 | 75 | 84 |
Prior service cost/(credit) | (1) | (1) | (3) | (1) |
Settlement losses and other expenses | 3 | 0 | 3 | 0 |
Net periodic benefit costs | $ 19 | $ 14 | $ 34 | $ 29 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) $ in Millions | Jul. 11, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)arrangement | Jun. 30, 2019USD ($) |
U.S. Plans | Multiemployer Plans, Pension | Fund | BCTGM | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer plan, number of expired collective-bargaining arrangements | arrangement | 8 | |||
U.S. Plans | Multiemployer Plans, Pension | Fund | BCTGM | North America | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer plan, withdrawal liability | $ 396 | $ 396 | ||
Pension Plans | U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution | 4 | |||
Estimated future employer contributions | 1 | 1 | ||
Pension Plans | Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution | 131 | |||
Estimated future employer contributions | 101 | 101 | ||
Pension Plans | Non-U.S. Plans | United Kingdom and Ireland | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contribution | 74 | |||
Subsequent Event | U.S. Plans | Multiemployer Plans, Pension | Fund | BCTGM | North America | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer plan, withdrawal liability | $ 526 | |||
Multiemployer plan, withdrawal obligation term | 20 years | |||
Other current liabilities | U.S. Plans | Multiemployer Plans, Pension | Fund | BCTGM | North America | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer plan, withdrawal liability | 22 | 22 | ||
Long-term other liabilities | U.S. Plans | Multiemployer Plans, Pension | Fund | BCTGM | North America | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer plan, withdrawal liability | 374 | $ 374 | ||
Selling, general and administrative expenses | U.S. Plans | Multiemployer Plans, Pension | Fund | BCTGM | North America | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer plan, period (credit) charge for withdrawal obligation | (35) | $ 408 | ||
Multiemployer plan, period (credit) charge for withdrawal obligation, net of tax | $ (26) | $ 305 |
Benefit Plans - Postretirement
Benefit Plans - Postretirement Benefit Plans (Details) - Postretirement Benefit Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2 | $ 1 | $ 3 | $ 3 |
Interest cost | 3 | 3 | 7 | 7 |
Net loss from experience differences | 1 | 3 | 3 | 7 |
Prior service credit | (9) | (9) | (19) | (19) |
Net periodic benefit costs | $ (3) | $ (2) | $ (6) | $ (2) |
Benefit Plans - Postemployment
Benefit Plans - Postemployment Benefit Costs (Details) - Postemployment Benefit Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2 | $ 1 | $ 3 | $ 3 |
Interest cost | 1 | 1 | 2 | 2 |
Amortization of net gains | 0 | 0 | (1) | (1) |
Net periodic benefit costs | $ 3 | $ 2 | $ 4 | $ 4 |
Stock Plans - Stock Option Acti
Stock Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | ||
Shares Subject to Option | |||||
Balance at January 1, 2019 (in shares) | 43,818,830 | ||||
Options granted (in shares) | 4,853,600 | ||||
Options exercised (in shares) | [1] | (10,842,077) | |||
Options canceled (in shares) | (697,437) | ||||
Balance at June 30, 2019 (in shares) | 37,132,916 | 37,132,916 | |||
Weighted- Average Exercise or Grant Price Per Share | |||||
Balance at January 1, 2019 (in dollars per share) | $ 32.36 | ||||
Options granted (in dollars per share) | 47.76 | ||||
Options exercised (in dollars per share) | [1] | 27.03 | |||
Options canceled (in dollars per share) | 40.51 | ||||
Balance at June 30, 2019 (in dollars per share) | $ 35.78 | $ 35.78 | |||
Average Remaining Contractual Term | |||||
Average remaining contractual term | 6 years | 5 years | |||
Aggregate Intrinsic Value | |||||
Aggregate intrinsic value | $ 673 | $ 673 | $ 371 | ||
Aggregate intrinsic value options exercised | [1] | 235 | |||
Cash received from options exercised | 118 | 293 | |||
Actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises | $ 13 | $ 29 | |||
Annual grant to eligible employees | |||||
Shares Subject to Option | |||||
Options granted (in shares) | 4,793,570 | ||||
Weighted- Average Exercise or Grant Price Per Share | |||||
Options granted (in dollars per share) | $ 47.72 | ||||
Additional options issued | |||||
Shares Subject to Option | |||||
Options granted (in shares) | 60,030 | ||||
Weighted- Average Exercise or Grant Price Per Share | |||||
Options granted (in dollars per share) | $ 51.25 | ||||
[1] | Cash received from options exercised was $118 million in the three months and $293 million in the six months ended June 30, 2019 . The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $13 million in the three months and $29 million in the six months ended June 30, 2019 . |
Stock Plans - Performance Share
Stock Plans - Performance Share Units and Other Stock-Based Awards Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | ||
Number of Shares | |||
Balance at January 1, 2019 (in shares) | 6,559,010 | ||
Shares granted (in shares) | 1,673,443 | ||
Vested (in shares) | [1] | (1,614,690) | |
Forfeited (in shares) | [1] | (356,333) | |
Balance at June 30, 2019 (in shares) | 6,261,430 | 6,261,430 | |
Weighted-average grant date fair value per share | |||
Balance at January 1, 2019 (in dollars per share) | [2] | $ 42.19 | |
Shares granted (in dollars per share) | [2] | 53.65 | |
Vested (in dollars per share) | [1],[2] | 36.61 | |
Forfeited (in dollars per share) | [1],[2] | 44.36 | |
Balance at June 30, 2019 (in dollars per share) | [2] | $ 46.56 | $ 46.56 |
Weighted-Average Aggregate Fair Value | |||
Weighted average grant date fair value of shares granted | [2] | $ 90 | |
Weighted average grant date fair value of shares vested | [1],[2] | 59 | |
Maximum | |||
Weighted-Average Aggregate Fair Value | |||
Actual tax benefit/(expense) realized for the tax deductions from the shares vested | $ 1 | $ 2 | |
Annual grant to eligible employees | |||
Grant Date | |||
Grant Date | Feb. 22, 2019 | ||
Performance share units | |||
Number of Shares | |||
Shares granted (in shares) | 891,210 | ||
Weighted-average grant date fair value per share | |||
Shares granted (in dollars per share) | [2] | $ 57.91 | |
Deferred stock units | |||
Number of Shares | |||
Shares granted (in shares) | 666,880 | ||
Weighted-average grant date fair value per share | |||
Shares granted (in dollars per share) | [2] | $ 47.72 | |
Additional shares granted | |||
Number of Shares | |||
Shares granted (in shares) | [3] | 115,353 | |
Weighted-average grant date fair value per share | |||
Shares granted (in dollars per share) | [2],[3] | $ 55.04 | |
[1] | Includes performance share units, deferred stock units and historically granted restricted stock. The actual tax benefit/(expense) realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled less than $1 million in the three months and $2 million in the six months ended June 30, 2019 . | ||
[2] | The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided. | ||
[3] | Includes performance share units and deferred stock units. |
Stock Plans - Share Repurchase
Stock Plans - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions | Jan. 31, 2018 | Jul. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2013 |
Class of Stock [Line Items] | ||||||||
Common shares repurchased | $ 276,000,000 | $ 650,000,000 | $ 941,000,000 | $ 1,150,000,000 | ||||
Repurchase of common stock | 940,000,000 | $ 1,177,000,000 | ||||||
Common Stock | Prior to January 1, 2018 | ||||||||
Class of Stock [Line Items] | ||||||||
Stock repurchase value | $ 13,700,000,000 | |||||||
Common shares repurchased | $ 15,000,000,000 | |||||||
Common Stock | Share Repurchase Program Amended January 1, 2018 | ||||||||
Class of Stock [Line Items] | ||||||||
Stock repurchase value | $ 19,700,000,000 | |||||||
Increase in share repurchase value | $ 6,000,000,000 | |||||||
Stock repurchase expiration date | Dec. 31, 2020 | |||||||
Common shares repurchased | $ 1,000,000,000 | |||||||
Number of shares repurchased (in shares) | 21 | |||||||
Average cost of shares repurchased (in dollars per share) | $ 45.84 | |||||||
Remaining share repurchase capacity | $ 3,700,000,000 | $ 3,700,000,000 | ||||||
Common Stock | Share Repurchase Program Amended January 1, 2018 | Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Repurchase of common stock | $ 1,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ₨ in Billions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)claim | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)claim | Jun. 30, 2018USD ($) | Jun. 30, 2019INR (₨)claim | |
Loss Contingencies [Line Items] | |||||
Income tax benefit | $ (216,000,000) | $ (15,000,000) | $ (405,000,000) | $ (352,000,000) | |
Selling, general and administrative expense to offset tax benefit | $ 1,427,000,000 | 1,904,000,000 | $ 2,920,000,000 | $ 3,431,000,000 | |
U.S. Commodity Futures Trading Commission ("CFTC") | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, filing date | Apr. 1, 2015 | ||||
Loss contingency, damages sought | $ 1,000,000 | ||||
U.S. Commodity Futures Trading Commission ("CFTC") | Each Additional Violation of the Commodity Exchange Act | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, damages sought | $ 140,000 | ||||
Cadbury | Indian Department of Central Excise Authority | Show Cause Notice | |||||
Loss Contingencies [Line Items] | |||||
Number of show cause notices | claim | 5 | 5 | 5 | ||
Cadbury | Indian Department of Central Excise Authority | Cause Note February 2013 and March 2014 | |||||
Loss Contingencies [Line Items] | |||||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | $ 54,000,000 | $ 54,000,000 | ₨ 3.7 | ||
Cadbury | Indian Department of Central Excise Authority | Cause Note March 2015 | |||||
Loss Contingencies [Line Items] | |||||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | 85,000,000 | 85,000,000 | 5.8 | ||
Cadbury | Indian Department of Central Excise Authority | Cause Notice February 2015, December 2015 and October 2017 | |||||
Loss Contingencies [Line Items] | |||||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | 70,000,000 | 70,000,000 | 4.9 | ||
Cadbury | Indian Department of Central Excise Authority | Cause Notice May 2019 | |||||
Loss Contingencies [Line Items] | |||||
Amount for formal claim of notice presented for unpaid excise tax, as of the balance sheet date | $ 135,000,000 | $ 135,000,000 | ₨ 9.3 | ||
LU Biscuit Business | |||||
Loss Contingencies [Line Items] | |||||
Income tax benefit | 15,000,000 | ||||
Selling, general and administrative expense to offset tax benefit | 11,000,000 | ||||
Interest expense to offset tax benefit | $ 4,000,000 |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive Income - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||||
Net losses reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) | $ 59 | $ 88 | $ 45 | $ 72 |
Reclassifications from Accumu_4
Reclassifications from Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Earnings/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Accumulated other comprehensive income attributable to Mondelēz International: | |||||
Balance at beginning of period | $ 25,909 | $ 26,544 | $ 25,713 | $ 26,074 | |
Total other comprehensive earnings/(losses) | (41) | (681) | 90 | (523) | |
Less: (earnings)/loss attributable to noncontrolling interests | (2) | 12 | (1) | (3) | |
Tax expense/(benefit) on reclassifications | (216) | (15) | (405) | (352) | |
Other comprehensive earnings/(losses) attributable to Mondelēz International | (43) | (669) | 89 | (526) | |
Balance at end of period | 26,174 | 25,275 | 26,174 | 25,275 | |
Currency Translation Adjustments | |||||
Accumulated other comprehensive income attributable to Mondelēz International: | |||||
Balance at beginning of period | (8,412) | (7,545) | (8,603) | (7,740) | |
Currency translation adjustments | (32) | (720) | 136 | (557) | |
Tax (expense)/benefit | (1) | (156) | 21 | (109) | |
Total other comprehensive earnings/(losses) | (33) | (876) | 157 | (666) | |
Less: (earnings)/loss attributable to noncontrolling interests | (2) | 12 | (1) | (3) | |
Balance at end of period | (8,447) | (8,409) | (8,447) | (8,409) | |
Pension and Other Benefits | |||||
Accumulated other comprehensive income attributable to Mondelēz International: | |||||
Balance at beginning of period | (1,850) | (2,150) | (1,860) | (2,144) | |
Total other comprehensive earnings/(losses) | 54 | 169 | 64 | 163 | |
Net actuarial gain/(loss) arising during period | 1 | 38 | (23) | 45 | |
Tax (expense)/benefit on net actuarial gain/(loss) | 1 | (9) | 7 | (9) | |
Currency impact, pension and other benefit plans | 5 | 100 | 4 | 46 | |
Balance at end of period | (1,796) | (1,981) | (1,796) | (1,981) | |
Pension and Other Benefits | Losses/(gains) reclassified into net earnings | |||||
Accumulated other comprehensive income attributable to Mondelēz International: | |||||
Amortization of experience losses and prior service costs | [1] | 34 | 44 | 66 | 91 |
Settlement losses and other expenses | [1] | 24 | 8 | 28 | 15 |
Tax expense/(benefit) on reclassifications | [2] | (11) | (12) | (18) | (25) |
Derivative Cash Flow Hedges | |||||
Accumulated other comprehensive income attributable to Mondelēz International: | |||||
Balance at beginning of period | (236) | (159) | (167) | (113) | |
Total other comprehensive earnings/(losses) | (62) | 26 | (131) | (20) | |
Net derivative gains/(losses) | (86) | 17 | (163) | (12) | |
Tax (expense)/benefit on net derivative gain/(loss) | 11 | (4) | 19 | (4) | |
Currency impact | 1 | 8 | 1 | 5 | |
Balance at end of period | (298) | (133) | (298) | (133) | |
Derivative Cash Flow Hedges | Losses/(gains) reclassified into net earnings | |||||
Accumulated other comprehensive income attributable to Mondelēz International: | |||||
Tax expense/(benefit) on reclassifications | [2] | 0 | (2) | 0 | 2 |
Derivative Cash Flow Hedges | Losses/(gains) reclassified into net earnings | Interest rate contracts | |||||
Accumulated other comprehensive income attributable to Mondelēz International: | |||||
Losses/(gains) reclassified into net earnings | [3] | 12 | 7 | 12 | (11) |
Accumulated Other Comprehensive Income (Loss) | |||||
Accumulated other comprehensive income attributable to Mondelēz International: | |||||
Balance at beginning of period | (10,498) | (9,854) | (10,630) | (9,997) | |
Total other comprehensive earnings/(losses) | (43) | (669) | 89 | (526) | |
Balance at end of period | $ (10,541) | $ (10,523) | $ (10,541) | $ (10,523) | |
[1] | These reclassified losses are included in the components of net periodic benefit costs disclosed in Note 11, Benefit Plans , and net loss on equity method investment transactions. | ||||
[2] | Taxes reclassified to earnings are recorded within the provision for income taxes. | ||||
[3] | These reclassified gains or losses are recorded within interest and other expense, net and net loss on equity method investment transactions. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Contingency [Line Items] | ||||
Estimated annual effective tax rate | 25.50% | 21.90% | ||
Effective tax rate | 23.10% | 6.00% | 21.20% | 25.10% |
Net tax discrete items (benefit) expense | $ (8) | $ (32) | $ (71) | $ 41 |
Net benefit from the release of uncertain tax positions due to the expirations of statutes of limitations and audit settlements | 24 | 27 | $ 84 | 43 |
Tax expense from U.S. state legislative changes | $ 15 | |||
Additional transition tax liability recognized as an adjustment to prior provisional estimate | 86 | |||
Argentina Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Benefit from pending tax refund claim | $ 22 | $ 22 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net earnings | $ 808 | $ 320 | $ 1,728 | $ 1,372 |
Noncontrolling interest earnings | (1) | (2) | (7) | (8) |
Net earnings attributable to Mondelēz International | $ 807 | $ 318 | $ 1,721 | $ 1,364 |
Weighted-average shares for basic EPS (in shares) | 1,445 | 1,475 | 1,447 | 1,482 |
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares (in shares) | 13 | 13 | 13 | 14 |
Weighted-average shares for diluted EPS (in shares) | 1,458 | 1,488 | 1,460 | 1,496 |
Basic earnings per share attributable to Mondeléz International (in dollars per share) | $ 0.56 | $ 0.22 | $ 1.19 | $ 0.92 |
Diluted earnings per share attributable to Mondélez International (in dollars per share) | $ 0.55 | $ 0.21 | $ 1.18 | $ 0.91 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Mondeléz International stock options excluded from the calculation of diluted EPS (in shares) | 4.2 | 12.7 | 7.3 | 11.2 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 6,062 | $ 6,112 | $ 12,600 | $ 12,877 |
Operating income | 1,025 | 481 | 2,061 | 1,705 |
Unrealized gains on hedging activities (mark-to-market impacts) | 33 | 88 | 49 | 294 |
General corporate expenses | (79) | (91) | (188) | (155) |
Amortization of intangibles | (43) | (44) | (87) | (88) |
Net gain on divestitures | 41 | 0 | 41 | 0 |
Acquisition-related costs | (1) | (13) | (1) | (13) |
Benefit plan non-service income | 12 | 15 | 29 | 28 |
Interest and other expense, net | (101) | (248) | (181) | (328) |
Earnings before income taxes | 936 | 248 | 1,909 | 1,405 |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 737 | 774 | 1,537 | 1,665 |
Operating income | 68 | 92 | 166 | 218 |
AMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,352 | 1,360 | 2,893 | 2,902 |
Operating income | 191 | 177 | 447 | 405 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,247 | 2,303 | 4,798 | 5,009 |
Operating income | 408 | 367 | 908 | 864 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,726 | 1,675 | 3,372 | 3,301 |
Operating income | $ 407 | $ (95) | $ 726 | $ 180 |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 6,062 | $ 6,112 | $ 12,600 | $ 12,877 |
Biscuits | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,809 | 2,792 | 5,546 | 5,545 |
Chocolate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,643 | 1,650 | 3,849 | 3,946 |
Gum & Candy | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 847 | 886 | 1,660 | 1,767 |
Beverages | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 297 | 308 | 618 | 669 |
Cheese & Grocery | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 466 | 476 | 927 | 950 |
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 737 | 774 | 1,537 | 1,665 |
Latin America | Biscuits | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 186 | 192 | 356 | 375 |
Latin America | Chocolate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 157 | 161 | 387 | 404 |
Latin America | Gum & Candy | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 209 | 224 | 409 | 448 |
Latin America | Beverages | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 108 | 116 | 231 | 277 |
Latin America | Cheese & Grocery | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 77 | 81 | 154 | 161 |
AMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,352 | 1,360 | 2,893 | 2,902 |
AMEA | Biscuits | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 405 | 387 | 866 | 829 |
AMEA | Chocolate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 438 | 440 | 995 | 1,013 |
AMEA | Gum & Candy | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 224 | 236 | 449 | 471 |
AMEA | Beverages | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 169 | 173 | 341 | 345 |
AMEA | Cheese & Grocery | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 116 | 124 | 242 | 244 |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 2,247 | 2,303 | 4,798 | 5,009 |
Europe | Biscuits | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 767 | 810 | 1,501 | 1,605 |
Europe | Chocolate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,006 | 1,003 | 2,366 | 2,426 |
Europe | Gum & Candy | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 181 | 200 | 354 | 386 |
Europe | Beverages | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 20 | 19 | 46 | 47 |
Europe | Cheese & Grocery | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 273 | 271 | 531 | 545 |
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,726 | 1,675 | 3,372 | 3,301 |
North America | Biscuits | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 1,451 | 1,403 | 2,823 | 2,736 |
North America | Chocolate | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 42 | 46 | 101 | 103 |
North America | Gum & Candy | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 233 | 226 | 448 | 462 |
North America | Beverages | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
North America | Cheese & Grocery | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 0 | $ 0 | $ 0 | $ 0 |