Mondelēz International, Inc. (NASDAQ: MDLZ) today reported its
second quarter 2020 results.
"We remain focused on the safety and well-being of our
colleagues and communities at this time, while continuing to serve
our customers in the exceptional circumstances caused by COVID-19.
I am proud of how our teams have demonstrated their commitment to
our customers and consumers by safely and efficiently maintaining
business continuity. I am pleased with our second quarter
performance given the challenging environment, with top-line
performance driven by Developed Markets and strong share gains in
all key markets. Our Emerging Markets performance improved
throughout the quarter as store closures eased and consumers in
many markets were increasingly able to access our products. While
we expect continued volatility and uncertainty from COVID-19, I am
confident that our strategy, investments, category fundamentals and
execution will enable us to successfully navigate this crisis and
emerge stronger," said Dirk Van de Put, Chairman and Chief
Executive Officer.
Net Revenue
$ in
millions |
ReportedNet Revenues |
|
Organic Net Revenue Growth |
|
Q2 2020 |
|
% Chgvs PY |
|
Q2 2020 |
|
Vol/Mix |
|
Pricing |
Quarter
2 |
|
|
|
|
|
|
|
|
|
Latin America |
$ |
511 |
|
|
(30.7 |
)% |
|
(11.3 |
)% |
|
(18.8 |
)pp |
|
7.5 |
pp |
Asia, Middle East & Africa |
1,237 |
|
|
(8.5 |
) |
|
(3.1 |
) |
|
(4.6 |
) |
|
1.5 |
|
Europe |
2,138 |
|
|
(4.9 |
) |
|
(1.2 |
) |
|
(0.4 |
) |
|
(0.8 |
) |
North America |
2,025 |
|
|
17.3 |
|
|
11.0 |
|
|
7.4 |
|
|
3.6 |
|
Mondelēz International |
$ |
5,911 |
|
|
(2.5 |
)% |
|
0.7 |
% |
|
(1.3 |
)pp |
|
2.0 |
pp |
|
|
|
|
|
|
|
|
|
|
Emerging Markets |
$ |
1,917 |
|
|
(15.6 |
)% |
|
(5.1 |
)% |
|
(7.8 |
)pp |
|
2.7 |
pp |
Developed Markets |
$ |
3,994 |
|
|
5.4 |
% |
|
4.1 |
% |
|
2.5 |
pp |
|
1.6 |
pp |
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
|
|
|
|
|
|
|
|
Latin America |
$ |
1,237 |
|
|
(19.5 |
)% |
|
(1.8 |
)% |
|
(10.0 |
)pp |
|
8.2 |
pp |
Asia, Middle East & Africa |
2,739 |
|
|
(5.3 |
) |
|
(0.3 |
) |
|
(1.7 |
) |
|
1.4 |
|
Europe |
4,722 |
|
|
(1.6 |
) |
|
1.8 |
|
|
2.0 |
|
|
(0.2 |
) |
North America |
3,920 |
|
|
16.3 |
|
|
12.2 |
|
|
9.8 |
|
|
2.4 |
|
Mondelēz International |
$ |
12,618 |
|
|
0.1 |
% |
|
3.7 |
% |
|
1.8 |
pp |
|
1.9 |
pp |
|
|
|
|
|
|
|
|
|
|
Emerging Markets |
$ |
4,334 |
|
|
(9.2 |
)% |
|
(0.1 |
)% |
|
(3.5 |
)pp |
|
3.4 |
pp |
Developed Markets |
$ |
8,284 |
|
|
5.9 |
% |
|
5.9 |
% |
|
4.9 |
pp |
|
1.0 |
pp |
Operating Income and Diluted EPS
$ in millions, except
per share data |
Reported |
|
Adjusted |
|
Q2 2020 |
|
vs PY(Rpt Fx) |
|
Q2 2020 |
|
vs PY(Rpt Fx) |
|
vs PY(Cst Fx) |
Quarter
2 |
|
|
|
|
|
|
|
|
|
Gross Profit |
$ |
2,331 |
|
|
(5.6 |
)% |
|
$ |
2,347 |
|
|
(4.3 |
)% |
|
(0.4 |
)% |
Gross Profit Margin |
39.4 |
% |
|
(1.3 |
)pp |
|
39.7 |
% |
|
(0.9 |
)pp |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
$ |
713 |
|
|
(30.4 |
)% |
|
$ |
942 |
|
|
(6.5 |
)% |
|
(3.8 |
)% |
Operating Income Margin |
12.1 |
% |
|
(4.8 |
)pp |
|
15.9 |
% |
|
(0.8 |
)pp |
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings2 |
$ |
544 |
|
|
(32.3 |
)% |
|
$ |
904 |
|
|
10.0 |
% |
|
13.3 |
% |
Diluted EPS |
$ |
0.38 |
|
|
(30.9 |
)% |
|
$ |
0.63 |
|
|
12.5 |
% |
|
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
|
|
|
|
|
|
|
|
Gross Profit |
$ |
4,782 |
|
|
(5.5 |
)% |
|
$ |
5,003 |
|
|
(0.8 |
)% |
|
2.8 |
% |
Gross Profit Margin |
37.9 |
% |
|
(2.3 |
)pp |
|
39.6 |
% |
|
(0.6 |
)pp |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
$ |
1,569 |
|
|
(23.9 |
)% |
|
$ |
2,048 |
|
|
(2.4 |
)% |
|
1.1 |
% |
Operating Income Margin |
12.4 |
% |
|
(4.0 |
)pp |
|
16.2 |
% |
|
(0.5 |
)pp |
|
|
|
|
|
|
|
|
|
|
|
|
Net Earnings2 |
$ |
1,280 |
|
|
(27.7 |
)% |
|
$ |
1,875 |
|
|
2.9 |
% |
|
6.8 |
% |
Diluted EPS |
$ |
0.89 |
|
|
(26.4 |
)% |
|
$ |
1.30 |
|
|
4.0 |
% |
|
8.0 |
% |
Second Quarter Commentary
- Net revenues decreased 2.5 percent driven
by unfavorable currency and the impact of a prior-year divestiture,
with underlying Organic Net Revenue growth of 0.7 percent and the
positive impact of acquisitions. As a result of COVID-19, the
Developed Markets Organic Net Revenue growth rate was elevated
versus pre-COVID levels. Organic Net Revenue from Emerging Markets
declined but showed sequential improvement during the quarter and
returned to growth in June.
- Gross profit decreased $138 million and margin
declined 130 basis points to 39.4 percent. Both were due to
unfavorable currency, unfavorable year-over-year mark-to-market
impacts from currency and commodity derivatives, and marginally
lower Adjusted Gross Profit1. Adjusted Gross Profit decreased $9
million at constant currency while Adjusted Growth Profit margin
decreased 90 basis points to 39.7 percent primarily due to
incremental COVID-19 related costs, higher raw material costs in
part due to unfavorable currency movements and unfavorable
volume/mix, partially offset by higher net pricing and
productivity, as well as cost containment measures.
- Operating income decreased $312 million and
margin was 12.1 percent, down 480 basis points primarily due to
intangible asset impairment charges, costs associated with the JDE
Peet's transaction, lower Adjusted Operating Income1, lapping a
prior-year gain on a divestiture, lapping the benefit from
prior-year pension participation changes and the year-over-year
unfavorable change in mark-to-market gains/(losses) from currency
and commodity hedging activities. Adjusted Operating Income
decreased $38 million at constant currency, and margin decreased 80
basis points to 15.9 percent driven primarily by the decline in
Adjusted Gross Profit margin, the impact of acquisitions and
unfavorable volume/mix, partially offset by lower advertising and
promotion costs.
- Diluted EPS was $0.38, down 30.9%, primarily
due to costs associated with the JDE Peet's transaction, intangible
asset impairment charges, lapping a prior-year net gain on
divestiture, lapping a prior-year impact from pension participation
changes, unfavorable year-over-year mark-to-market impacts from
currency and commodity derivatives, a decline from operating
activities as a result of COVID-19 related disruption and
unfavorable currency translation, partially offset by a gain on
equity method investment transactions, lower taxes and an increase
in equity method investment earnings.
- Adjusted EPS was $0.63, up 16.1% on a
constant-currency basis driven by lower taxes, an increase in
equity method investment earnings, an increase in benefit plan
non-service income, lower interest and other expense, net, and
lower shares outstanding, partially offset by a decline from
operating activities.
- Capital Return: The company returned $410
million to shareholders in cash dividends. The company suspended
its share repurchase program in March, providing flexibility while
managing the COVID-19 situation and response. Today, the company’s
Board of Directors declared a quarterly cash dividend of $0.315 per
share of Class A common stock, an increase of 11 percent.
This dividend is payable on October 14, 2020, to shareholders
recorded as of September 30, 2020.
2020 OutlookAs previously disclosed, due to the
COVID-19 pandemic, visibility is limited at this time in a number
of markets. As a result, the company is not providing a full-year
financial outlook. The company strategy and long-term algorithm
remain unchanged.
The company estimates currency translation would decrease 2020
net revenue growth by approximately 3 percent3 with a negative
$0.05 impact to Adjusted EPS3.
Conference CallMondelēz International will host
a conference call for investors with accompanying slides to review
its results at 5 p.m. ET today. A listen-only webcast will be
provided at www.mondelezinternational.com. An archive of the
webcast will be available on the company’s web site. The company
will be live tweeting the event at www.twitter.com/MDLZ.
About Mondelēz InternationalMondelēz
International, Inc. (NASDAQ: MDLZ) empowers people to snack right
in over 150 countries around the world. With 2019 net revenues of
approximately $26 billion, MDLZ is leading the future of snacking
with iconic global and local brands such as Oreo, belVita and LU
biscuits; Cadbury Dairy Milk, Milka and Toblerone chocolate; Sour
Patch Kids candy and Trident gum. Mondelēz International is a proud
member of the Standard and Poor’s 500, Nasdaq 100 and Dow Jones
Sustainability Index. Visit www.mondelezinternational.com or follow
the company on Twitter at www.twitter.com/MDLZ.
End Notes
- Organic Net Revenue, Adjusted Gross Profit (and Adjusted Gross
Profit margin), Adjusted Operating Income (and Adjusted Operating
Income margin), Adjusted EPS, Free Cash Flow and presentation of
amounts in constant currency are non-GAAP financial measures.
Please see discussion of non-GAAP financial measures at the end of
this press release for more information.
- Earnings attributable to Mondelēz International.
- Currency estimate is based on published rates from XE.com on
July 22, 2020.
Additional DefinitionsEmerging markets consist
of the Latin America region in its entirety; the Asia, Middle East
and Africa region excluding Australia, New Zealand and Japan; and
the following countries from the Europe region: Russia, Ukraine,
Turkey, Kazakhstan, Georgia, Poland, Czech Republic, Slovak
Republic, Hungary, Bulgaria, Romania, the Baltics and the East
Adriatic countries.
Developed markets include the entire North America region, the
Europe region excluding the countries included in the emerging
markets definition, and Australia, New Zealand and Japan from the
Asia, Middle East and Africa region.
Forward-Looking StatementsThis press release
contains a number of forward-looking statements. Words, and
variations of words, such as “will,” “expect,” “may,” “would,”
“could,” “estimate,” “outlook” and similar expressions are intended
to identify the company’s forward-looking statements, including,
but not limited to, statements about: the impact of the outbreak of
COVID-19 on the company; confidence in the company's strategy and
ability to manage through the COVID-19 pandemic and emerge
stronger; currency and the effect of currency translation on the
company’s results of operations; and the company’s long-term
algorithm. These forward-looking statements are subject to a number
of risks and uncertainties, many of which are beyond the company’s
control, and many of these risks and uncertainties are currently
amplified by and may continue to be amplified by the COVID-19
outbreak. Important factors that could cause the company’s actual
results to differ materially from those indicated in the company’s
forward-looking statements include, but are not limited to,
uncertainty about the magnitude, duration, geographic reach, impact
on the global economy and related current and potential travel
restrictions of the COVID-19 outbreak; the current, and uncertain
future, impact of the COVID-19 outbreak on the company’s business,
growth, reputation, prospects, financial condition, operating
results (including components of the company’s financial results),
cash flows and liquidity; risks from operating globally including
in emerging markets; changes in currency exchange rates, controls
and restrictions; continued volatility of commodity and other input
costs; weakness in economic conditions; weakness in consumer
spending; pricing actions; tax matters including changes in tax
rates and laws, disagreements with taxing authorities and
imposition of new taxes; use of information technology and third
party service providers; unanticipated disruptions to the company’s
business, such as the malware incident, cyberattacks or other
security breaches; global or regional health pandemics or
epidemics, including COVID-19; competition; protection of the
company's reputation and brand image; the company's ability to
innovate and differentiate its products; the restructuring program
and the company’s other transformation initiatives not yielding the
anticipated benefits; changes in the assumptions on which the
restructuring program is based; management of the company’s
workforce; consolidation of retail customers and competition with
retailer and other economy brands; changes in the company’s
relationships with suppliers or customers; legal, regulatory, tax
or benefit law changes, claims or actions; the impact of climate
change on the company’s supply chain and operations; strategic
transactions; significant changes in valuation factors that may
adversely affect the company’s impairment testing of goodwill and
intangible assets; perceived or actual product quality issues or
product recalls; failure to maintain effective internal control
over financial reporting; volatility of and access to capital or
other markets; pension costs; the expected discontinuance of London
Interbank Offered Rates and transition to any other interest rate
benchmark; and the company’s ability to protect its intellectual
property and intangible assets. Please also see the company’s risk
factors, as they may be amended from time to time, set forth in its
filings with the SEC, including the company’s most recently filed
Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
Mondelēz International disclaims and does not undertake any
obligation to update or revise any forward-looking statement in
this press release, except as required by applicable law or
regulation.
|
|
|
|
|
|
|
|
|
Schedule 1 |
Mondelēz
International, Inc. and Subsidiaries |
Condensed
Consolidated Statements of Earnings |
(in millions
of U.S. dollars and shares, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
2020 |
|
|
|
2019 |
|
Net revenues |
$ |
5,911 |
|
|
$ |
6,062 |
|
|
|
$ |
12,618 |
|
|
$ |
12,600 |
|
Cost of sales |
|
3,580 |
|
|
|
3,593 |
|
|
|
|
7,836 |
|
|
|
7,538 |
|
|
Gross
profit |
|
2,331 |
|
|
|
2,469 |
|
|
|
|
4,782 |
|
|
|
5,062 |
|
|
Gross profit
margin |
|
39.4 |
% |
|
|
40.7 |
% |
|
|
|
37.9 |
% |
|
|
40.2 |
% |
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
1,453 |
|
|
|
1,427 |
|
|
|
|
2,990 |
|
|
|
2,920 |
|
Asset impairment and exit costs |
|
115 |
|
|
|
15 |
|
|
|
|
130 |
|
|
|
35 |
|
Net gain on divestiture |
|
- |
|
|
|
(41 |
) |
|
|
|
- |
|
|
|
(41 |
) |
Amortization of intangibles |
|
50 |
|
|
|
43 |
|
|
|
|
93 |
|
|
|
87 |
|
|
Operating
income |
|
713 |
|
|
|
1,025 |
|
|
|
|
1,569 |
|
|
|
2,061 |
|
|
Operating
income margin |
|
12.1 |
% |
|
|
16.9 |
% |
|
|
|
12.4 |
% |
|
|
16.4 |
% |
|
|
|
|
|
|
|
|
|
|
Benefit plan non-service income |
|
(31 |
) |
|
|
(12 |
) |
|
|
|
(64 |
) |
|
|
(29 |
) |
Interest and other expense, net |
|
85 |
|
|
|
101 |
|
|
|
|
275 |
|
|
|
181 |
|
|
Earnings
before income taxes |
|
659 |
|
|
|
936 |
|
|
|
|
1,358 |
|
|
|
1,909 |
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
(341 |
) |
|
|
(216 |
) |
|
|
|
(489 |
) |
|
|
(405 |
) |
|
Effective
tax rate |
|
51.7 |
% |
|
|
23.1 |
% |
|
|
|
36.0 |
% |
|
|
21.2 |
% |
Gain/(loss) on equity method investment transactions |
|
121 |
|
|
|
(25 |
) |
|
|
|
192 |
|
|
|
(2 |
) |
Equity method investment net earnings |
|
106 |
|
|
|
109 |
|
|
|
|
227 |
|
|
|
275 |
|
|
Net
earnings |
|
545 |
|
|
|
804 |
|
|
|
|
1,288 |
|
|
|
1,777 |
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interest earnings |
|
(1 |
) |
|
|
(1 |
) |
|
|
|
(8 |
) |
|
|
(7 |
) |
|
Net earnings
attributable to Mondelēz International |
$ |
544 |
|
|
$ |
803 |
|
|
|
$ |
1,280 |
|
|
$ |
1,770 |
|
|
|
|
|
|
|
|
|
|
|
Per share data: |
|
|
|
|
|
|
|
|
|
Basic
earnings per share attributable to Mondelēz International |
$ |
0.38 |
|
|
$ |
0.56 |
|
|
|
$ |
0.89 |
|
|
$ |
1.22 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share attributable to Mondelēz International |
$ |
0.38 |
|
|
$ |
0.55 |
|
|
|
$ |
0.89 |
|
|
$ |
1.21 |
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
1,431 |
|
|
|
1,445 |
|
|
|
|
1,432 |
|
|
|
1,447 |
|
|
Diluted |
|
1,439 |
|
|
|
1,458 |
|
|
|
|
1,442 |
|
|
|
1,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 2 |
Mondelēz
International, Inc. and Subsidiaries |
Condensed
Consolidated Balance Sheets |
(in millions
of U.S. dollars) |
(Unaudited) |
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
ASSETS |
|
|
|
|
|
Cash and cash equivalents |
$ |
1,602 |
|
|
$ |
1,291 |
|
|
|
Trade receivables |
|
1,979 |
|
|
|
2,212 |
|
|
|
Other receivables |
|
631 |
|
|
|
715 |
|
|
|
Inventories, net |
|
2,710 |
|
|
|
2,546 |
|
|
|
Other current assets |
|
1,073 |
|
|
|
866 |
|
|
|
Total current assets |
|
7,995 |
|
|
|
7,630 |
|
|
|
Property, plant and equipment, net |
|
8,365 |
|
|
|
8,733 |
|
|
|
Operating lease right of use assets |
|
645 |
|
|
|
568 |
|
|
|
Goodwill |
|
20,997 |
|
|
|
20,848 |
|
|
|
Intangible assets, net |
|
17,877 |
|
|
|
17,957 |
|
|
|
Prepaid pension assets |
|
586 |
|
|
|
516 |
|
|
|
Deferred income taxes |
|
785 |
|
|
|
726 |
|
|
|
Equity method investments |
|
6,659 |
|
|
|
7,178 |
|
|
|
Other assets |
|
285 |
|
|
|
359 |
|
|
|
TOTAL ASSETS |
$ |
64,194 |
|
|
$ |
64,515 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Short-term borrowings |
$ |
2,755 |
|
|
$ |
2,638 |
|
|
|
Current portion of long-term debt |
|
945 |
|
|
|
1,581 |
|
|
|
Accounts payable |
|
5,466 |
|
|
|
5,853 |
|
|
|
Accrued marketing |
|
1,804 |
|
|
|
1,836 |
|
|
|
Accrued employment costs |
|
639 |
|
|
|
769 |
|
|
|
Other current liabilities |
|
2,930 |
|
|
|
2,645 |
|
|
|
Total current liabilities |
|
14,539 |
|
|
|
15,322 |
|
|
|
Long-term debt |
|
16,004 |
|
|
|
14,207 |
|
|
|
Long-term operating lease liabilities |
|
479 |
|
|
|
403 |
|
|
|
Deferred income taxes |
|
3,383 |
|
|
|
3,338 |
|
|
|
Accrued pension costs |
|
1,108 |
|
|
|
1,190 |
|
|
|
Accrued postretirement health care costs |
|
371 |
|
|
|
387 |
|
|
|
Other liabilities |
|
2,213 |
|
|
|
2,351 |
|
|
|
TOTAL LIABILITIES |
|
38,097 |
|
|
|
37,198 |
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
Common Stock |
|
- |
|
|
|
- |
|
|
|
Additional paid-in capital |
|
32,022 |
|
|
|
32,019 |
|
|
|
Retained earnings |
|
27,040 |
|
|
|
26,615 |
|
|
|
Accumulated other comprehensive losses |
|
(11,419 |
) |
|
|
(10,254 |
) |
|
|
Treasury stock |
|
(21,625 |
) |
|
|
(21,139 |
) |
|
|
Total Mondelēz International Shareholders' Equity |
|
26,018 |
|
|
|
27,241 |
|
|
|
Noncontrolling interest |
|
79 |
|
|
|
76 |
|
|
|
TOTAL EQUITY |
|
26,097 |
|
|
|
27,317 |
|
|
|
TOTAL LIABILITIES AND EQUITY |
$ |
64,194 |
|
|
$ |
64,515 |
|
|
|
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
Incr/(Decr) |
|
|
|
|
|
|
Short-term borrowings |
$ |
2,755 |
|
|
$ |
2,638 |
|
|
$ |
117 |
|
Current
portion of long-term debt |
|
945 |
|
|
|
1,581 |
|
|
|
(636 |
) |
Long-term
debt |
|
16,004 |
|
|
|
14,207 |
|
|
|
1,797 |
|
Total
Debt |
|
19,704 |
|
|
|
18,426 |
|
|
|
1,278 |
|
Cash and
cash equivalents |
|
1,602 |
|
|
|
1,291 |
|
|
|
311 |
|
Net Debt
(1) |
$ |
18,102 |
|
|
$ |
17,135 |
|
|
$ |
967 |
|
|
|
|
|
|
|
(1) Net debt is
defined as total debt, which includes short-term borrowings,
current portion of long-term debt and long-term debt, less cash and
cash equivalents. |
|
|
|
Schedule 3 |
|
Mondelēz
International, Inc. and Subsidiaries |
|
Condensed
Consolidated Statements of Cash Flows |
|
(in millions
of U.S. dollars) |
|
(Unaudited) |
|
|
|
|
|
|
|
For the Six Months Ended June 30, |
|
|
|
2020 |
|
|
|
2019 |
|
|
CASH
PROVIDED BY/(USED IN) OPERATING ACTIVITIES |
|
|
|
|
Net earnings |
$ |
1,288 |
|
|
$ |
1,777 |
|
|
Adjustments to reconcile net earnings to operating cash flows: |
|
|
|
|
Depreciation and amortization |
|
528 |
|
|
|
517 |
|
|
Stock-based compensation expense |
|
63 |
|
|
|
71 |
|
|
U.S. tax reform transition tax |
|
- |
|
|
|
2 |
|
|
Deferred income tax (benefit)/provision |
|
(110 |
) |
|
|
36 |
|
|
Asset impairments and accelerated depreciation |
|
99 |
|
|
|
4 |
|
|
Net gain on divestiture |
|
- |
|
|
|
(41 |
) |
|
(Gain)/loss on equity method investment transactions |
|
(192 |
) |
|
|
2 |
|
|
Equity method investment net earnings |
|
(227 |
) |
|
|
(275 |
) |
|
Distributions from equity method investments |
|
193 |
|
|
|
188 |
|
|
Other non-cash items, net |
|
154 |
|
|
|
(46 |
) |
|
Change in assets and liabilities, net of acquisitions and
divestitures: |
|
|
|
|
Receivables, net |
|
328 |
|
|
|
135 |
|
|
Inventories, net |
|
(233 |
) |
|
|
(145 |
) |
|
Accounts payable |
|
75 |
|
|
|
(430 |
) |
|
Other current assets |
|
(62 |
) |
|
|
(20 |
) |
|
Other current liabilities |
|
(224 |
) |
|
|
(638 |
) |
|
Change in pension and postretirement assets and liabilities,
net |
|
(122 |
) |
|
|
(91 |
) |
|
Net cash provided by/(used in) operating activities |
|
1,558 |
|
|
|
1,046 |
|
|
|
|
|
|
|
CASH
PROVIDED BY/(USED IN) INVESTING ACTIVITIES |
|
|
|
|
Capital expenditures |
|
(445 |
) |
|
|
(465 |
) |
|
Acquisition, net of cash received |
|
(1,141 |
) |
|
|
- |
|
|
Proceeds from divestitures including equity method investments |
|
579 |
|
|
|
163 |
|
|
Other |
|
(30 |
) |
|
|
35 |
|
|
Net cash provided by/(used in) investing activities |
|
(1,037 |
) |
|
|
(267 |
) |
|
|
|
|
|
|
CASH
PROVIDED BY/(USED IN) FINANCING ACTIVITIES |
|
|
|
|
Issuances of commercial paper, maturities greater than 90 days |
|
677 |
|
|
|
809 |
|
|
Repayments of commercial paper, maturities greater than 90
days |
|
(654 |
) |
|
|
(2,169 |
) |
|
Net issuances/(repayments) of other short-term borrowings |
|
109 |
|
|
|
1,958 |
|
|
Long-term debt proceeds |
|
2,533 |
|
|
|
597 |
|
|
Long-term debt repayments |
|
(1,430 |
) |
|
|
(409 |
) |
|
Repurchases of Common Stock |
|
(720 |
) |
|
|
(940 |
) |
|
Dividends paid |
|
(819 |
) |
|
|
(756 |
) |
|
Other |
|
123 |
|
|
|
271 |
|
|
Net cash provided by/(used in) financing activities |
|
(181 |
) |
|
|
(639 |
) |
|
|
|
|
|
|
Effect of
exchange rate changes on cash, cash equivalents and restricted
cash |
|
(37 |
) |
|
|
8 |
|
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash |
|
|
|
|
Increase/(decrease) |
|
303 |
|
|
|
148 |
|
|
Balance at beginning of period |
|
1,328 |
|
|
|
1,100 |
|
|
Balance at end of period |
$ |
1,631 |
|
|
$ |
1,248 |
|
|
|
|
|
|
|
Mondelēz International, Inc. and
SubsidiariesReconciliation of GAAP and Non-GAAP
Financial Measures(Unaudited)
The company reports its financial results in accordance with
accounting principles generally accepted in the United States
(“GAAP”). However, management believes that also presenting certain
non-GAAP financial measures provides additional information to
facilitate the comparison of the company’s historical operating
results and trends in its underlying operating results, and
provides additional transparency on how the company evaluates its
business. Management uses these non-GAAP financial measures in
making financial, operating and planning decisions and in
evaluating the company’s performance. The company also believes
that presenting these measures allows investors to view its
performance using the same measures that the company uses in
evaluating its financial and business performance and trends.
The company considers quantitative and qualitative factors in
assessing whether to adjust for the impact of items that may be
significant or that could affect an understanding of its ongoing
financial and business performance and trends. The adjustments
generally fall within the following categories:
acquisition & divestiture activities, gains and losses on
intangible asset sales and non-cash impairments, major program
restructuring activities, constant currency and related
adjustments, major program financing and hedging activities and
other major items affecting comparability of operating results. See
below for a description of adjustments to the company’s U.S. GAAP
financial measures included herein.
Non-GAAP information should be considered as supplemental in
nature and is not meant to be considered in isolation or as a
substitute for the related financial information prepared in
accordance with U.S. GAAP. In addition, the company’s non-GAAP
financial measures may not be the same as or comparable to similar
non-GAAP measures presented by other companies.
DEFINITIONS OF THE COMPANY’S NON-GAAP FINANCIAL
MEASURES
The company’s non-GAAP financial measures and corresponding
metrics reflect how the company evaluates its operating results
currently and provide improved comparability of operating results.
As new events or circumstances arise, these definitions could
change. When these definitions change, the company provides the
updated definitions and presents the related non-GAAP historical
results on a comparable basis. When items no longer impact the
company’s current or future presentation of non-GAAP operating
results, the company removes these items from its non-GAAP
definitions. During the second quarter of 2020, we added to the
non-GAAP definitions the exclusion of costs associated with the JDE
Peet's transaction.
- “Organic Net Revenue” is defined as net
revenues excluding the impacts of acquisitions, divestitures and
currency rate fluctuations. The company also evaluates Organic Net
Revenue growth from emerging markets and developed markets.
- “Adjusted Gross Profit” is defined as gross
profit excluding the impacts of the Simplify to Grow Program;
acquisition integration costs; the operating results of
divestitures; and mark-to-market impacts from commodity and
forecasted currency transaction derivative contracts. The company
also presents “Adjusted Gross Profit margin,” which is subject to
the same adjustments as Adjusted Gross Profit. The company also
evaluates growth in the company’s Adjusted Gross Profit on a
constant currency basis.
- “Adjusted Operating Income” and
“Adjusted Segment Operating Income” are defined as
operating income (or segment operating income) excluding the
impacts of the items listed in the Adjusted Gross Profit definition
as well as gains or losses (including non-cash impairment charges)
on goodwill and intangible assets; divestiture or acquisition gains
or losses and related divestiture, acquisition and integration
costs; costs associated with the JDE Peet's transaction;
remeasurement of net monetary position; impacts from resolution of
tax matters; CEO transition remuneration; Swiss tax reform impacts;
and impact from pension participation changes. The company also
presents “Adjusted Operating Income margin” and “Adjusted Segment
Operating Income margin,” which are subject to the same adjustments
as Adjusted Operating Income and Adjusted Segment Operating Income.
The company also evaluates growth in the company’s Adjusted
Operating Income and Adjusted Segment Operating Income on a
constant currency basis.
- “Adjusted EPS” is defined as diluted EPS
attributable to Mondelēz International from continuing operations
excluding the impacts of the items listed in the Adjusted Operating
Income definition, as well as losses on debt extinguishment and
related expenses; gains or losses on equity method investment
transactions; net earnings from divestitures; gains or losses on
interest rate swaps no longer designated as accounting cash flow
hedges due to changed financing and hedging plans; and U.S. and
Swiss tax reform impacts. Similarly, within Adjusted EPS, the
company’s equity method investment net earnings exclude its
proportionate share of its investees’ unusual or infrequent items.
The tax impact of each of the items excluded from the company’s
GAAP results was computed based on the facts and tax assumptions
associated with each item, and such impacts have also been excluded
from Adjusted EPS. The company also evaluates growth in the
company’s Adjusted EPS on a constant currency basis.
- “Free Cash Flow” is defined as net cash
provided by operating activities less capital expenditures. Free
Cash Flow is the company’s primary measure used to monitor its cash
flow performance.
See the attached schedules for supplemental financial data and
corresponding reconciliations of the non-GAAP financial measures
referred to above to the most comparable GAAP financial measures
for the three and six months ended June 30, 2020 and June 30, 2019.
See Items Impacting Comparability of Operating Results below for
more information about the items referenced in these definitions
that specifically impacted the company’s results in the three and
six months ended June 30, 2020 and June 30, 2019.
SEGMENT OPERATING INCOMEThe company uses
segment operating income to evaluate segment performance and
allocate resources. The company believes 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), 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. The
company excludes these items from segment operating income in order
to provide better transparency of its segment operating results.
Furthermore, the company centrally manages benefit plan non-service
income and interest and other expense, net. Accordingly, the
company does not present these items by segment because they are
excluded from the segment profitability measure that management
reviews.
ITEMS IMPACTING COMPARABILITY OF OPERATING
RESULTSThe following information is provided to give
qualitative and quantitative information related to items impacting
comparability of operating results. The company identifies these
based on how management views the company’s business; makes
financial, operating and planning decisions; and evaluates the
company’s ongoing performance. In addition, the company discloses
the impact of changes in currency exchange rates on the company’s
financial results in order to reflect results on a constant
currency basis.
Divestitures, Divestiture-related costs and
Gains/(losses) on divestituresDivestitures include
completed sales of businesses (including the partial or full sale
of an equity method investment - discussed separately below) and
exits of major product lines upon completion of a sale or licensing
agreement.
- On May 28, 2019, the company completed the sale of most of its
cheese business in the Middle East and Africa to Arla Foods of
Denmark. The company also recorded a pre-tax gain of $44 million on
the sale, $41 million of which was recorded in the second quarter
of 2019. The divestiture resulted in a year-over-year decline in
net revenues of $22 million in the three months and $55 million in
the six months ended June 30, 2020, and a year-over-year decline in
operating income of $5 million in the three months and $9 million
in the six months ended June 30, 2020. During the three and six
months ended June 30, 2020, the company reversed $2 million of
divestiture-related cost accruals that were no longer required. The
company also incurred divestiture-related costs of $11 million in
the three months and $10 million in the six months ended June 30,
2019.
Acquisitions, Acquisition-related costs and Acquisition
integration costsOn April 1, 2020, the company acquired a
majority interest in Give & Go, a North American leader in
fully-finished sweet baked goods and owner of the famous two-bite®
brand of brownies and the Create-A-Treat® brand, known for cookie
and gingerbread house decorating kits. The acquisition of Give
& Go provides access to the in-store bakery channel and expands
the company's position in broader snacking. The acquisition added
incremental net revenues of $91 million and an operating loss
of $8 million in the three and six months ended June 30, 2020. The
company incurred acquisition-related costs of $10 million in the
three months and $15 million in the six months ended June 30,
2020.
On July 16, 2019, the company acquired a majority interest in a
U.S. refrigerated nutrition bar company, Perfect Snacks, within its
North America segment. The acquisition added incremental net
revenues of $23 million in the three months and $55 million in
the six months ended June 30, 2020 and an immaterial amount of
incremental operating income during the three and six months ended
June 30, 2020. The company also incurred acquisition-integration
costs of $1 million in the three and six months ended June 30,
2020.
On June 7, 2018, the company acquired a U.S. premium
biscuit company, Tate’s Bake Shop, within its North America segment
and extended its premium biscuit offerings. The company incurred
acquisition-integration costs of $1 million in the six months ended
June 30, 2020.
Simplify to Grow ProgramThe primary objective
of the Simplify to Grow Program is to reduce the company’s
operating cost structure in both its supply chain and overhead
costs. The program covers severance as well as asset disposals and
other manufacturing and procurement-related one-time costs.
Restructuring costsThe company recorded restructuring charges of
$28 million in the three months and $43 million in the six
months ended June 30, 2020 and $20 million in the three months
and $40 million in the six months ended June 30, 2019 within asset
impairment and exit costs and benefit plan non-service income.
These charges were for non-cash asset write-downs (including
accelerated depreciation and asset impairments), severance and
other related costs.
Implementation costsImplementation costs primarily relate to
reorganizing the company’s operations and facilities in connection
with its 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 the company’s
information systems. The company recorded implementation costs of
$52 million in the three months and $95 million in the six
months ended June 30, 2020 and $68 million in the three months
and $118 million in the six months ended June 30, 2019.
Intangible asset impairment chargesIn
connection with the ongoing COVID-19 global pandemic, during the
second quarter of 2020, the company identified a decline in demand
for certain of its brands, primarily in the gum category, that
prompted additional evaluation of its indefinite-life
(non-amortizable) intangible assets. The company concluded that
four gum brands, a small biscuit brand and a small candy brand were
impaired as a result of lower than expected product growth. The
company recorded $90 million of impairment charges: $50 million in
Europe, $36 million in North America and $5 million in AMEA.
Mark-to-market impacts from commodity and currency
derivative contractsThe company excludes unrealized gains
and losses (mark-to-market impacts) from outstanding commodity and
forecasted currency transaction derivatives from its non-GAAP
earnings measures until such time that the related exposures impact
its operating results. The company recorded net unrealized losses
on commodity and forecasted currency transaction derivatives of $2
million in the three months and $186 million in the six months
ended June 30, 2020 and recorded net unrealized gains of
$33 million in the three months and $49 million in the six
months ended June 30, 2019.
Remeasurement of net monetary positionDuring
the second quarter of 2018, primarily based on published estimates
which indicated that Argentina's three-year cumulative inflation
rate exceeded 100%, the company concluded that Argentina became a
highly inflationary economy for accounting purposes. As of July 1,
2018, the company began to apply highly inflationary accounting for
its 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. As of each
subsequent balance sheet date, Argentinian peso denominated
monetary assets and liabilities 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. Within selling, general and administrative expenses,
the company recorded a remeasurement loss of $3 million in the
three months and $5 million in the six months ended June 30, 2020,
as well as a remeasurement gain of $1 million and a remeasurement
loss of $1 million in the six months ended June 30, 2019 related to
the revaluation of the Argentinian peso denominated net monetary
position over these periods.
Impact from pension participation changesThe
impact from pension participation changes represent the charges
incurred when employee groups are withdrawn from multiemployer
pension plans and other changes in employee group pension plan
participation. The company excludes these charges from its non-GAAP
results because those amounts do not reflect the company’s ongoing
pension obligations.
On July 11, 2019, the company received an undiscounted
withdrawal liability assessment related to the company's complete
withdrawal from the Bakery and Confectionery Union and Industry
International Pension Fund totaling $526 million and requiring
pro-rata monthly payments over 20 years. The company began
making monthly payments during the third quarter of 2019. Within
selling, general and administrative expenses, the company recorded
a $35 million ($26 million net of tax) adjustment in the three
months ended June 30, 2019 related to the discounted withdrawal
liability. The company recorded $3 million of accreted interest in
the three months and $6 million in the six months ended June 30,
2020 and an immaterial amount for the three and six months ended
June 30, 2019 on the long-term liability within interest and other
expense, net. As of June 30, 2020, the remaining discounted
withdrawal liability was $383 million, with $14 million recorded in
other current liabilities and $369 million recorded in long-term
other liabilities.
CEO transition remunerationOn November 20,
2017, Dirk Van de Put succeeded Irene Rosenfeld as CEO of Mondelēz
International. In order to incent Mr. Van de Put to join the
company, the company provided him compensation to make him whole
for incentive awards he forfeited or grants that were not made to
him when he left his former employer. In connection with Irene
Rosenfeld’s retirement, the company made her outstanding grants of
performance share units for the 2016-2018 and 2017-2019 performance
cycles eligible for continued vesting and paid $0.5 million
salary for her service as Chairman from January through March 2018.
The company refers to these elements of Mr. Van de Put’s and
Ms. Rosenfeld’s compensation arrangements together as “CEO
transition remuneration.”
The company is excluding amounts it expenses as CEO transition
remuneration from its non-GAAP results because those amounts are
not part of the company’s regular compensation program and are
incremental to amounts the company would have incurred as ongoing
CEO compensation. As a result, in 2017, the company excluded
amounts expensed for the cash payment to Mr. Van de Put and
partial vesting of his equity grants. In 2018, the company excluded
amounts paid for Ms. Rosenfeld’s service as Chairman and
partial vesting of Mr. Van de Put’s and Ms. Rosenfeld’s
equity grants. In 2019, the company excluded amounts related to the
partial vesting of Mr. Van de Put’s equity grants. During the
first quarter of 2020, Mr. Van de Put's equity grants became fully
vested.
Gains/losses related to interest rate
swapsWithin interest and other expense, net, the company
recognized an after-tax loss of $79 million ($103 million pre-tax)
in the first quarter of 2020, related to certain
forward-starting interest rate swaps for which the planned tenor of
the timing of the related forecasted debt was changed.
Gains and losses on equity method investment
transactionsJDE / Keurig Exchange:On March 7, 2016, the
company exchanged a portion of its 43.5% JDE equity interest for a
new equity interest in Keurig Green Mountain, Inc. ("Keurig").
Following the transaction, the company's JDE equity interest became
26.5% and its new Keurig equity interest was 24.2%. During the
first quarter of 2016, the company recorded the difference between
the $2.0 billion fair value of Keurig and its basis in the
exchanged JDE shares as a gain of $43 million. In the second
quarter of 2019, the company determined an adjustment to
accumulated other comprehensive losses related to its JDE
investment was required, which reduced its previously reported gain
by $29 million. The company recorded the adjustment in the net loss
on equity method transactions in the second quarter of 2019.
Keurig Dr Pepper Transactions: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, the company’s
24.2% investment in Keurig together with its shareholder loan
receivable became a 13.8% investment in KDP. During 2018, the
company recorded a net pre-tax gain of $778 million (or $586
million after-tax gain).
In connection with this transaction, the company changed its
accounting principle during the third quarter of 2018 to reflect
its share of Keurig’s historical and KDP’s ongoing earnings on a
one-quarter lag basis while the company continues to record
dividends when cash is received. The company determined a lag was
preferable as it enables the company to continue to report its
quarterly and annual results on a timely basis and to record its
share of KDP’s ongoing results once KDP has publicly reported its
results. The change was retrospectively applied to all prior
periods presented.
During the first quarter of 2019, the company recognized a
pre-tax gain of $23 million (or $18 million after-tax) related to
the impact of a KDP acquisition that decreased the company’s
ownership interest from 13.8% to 13.6%.
On March 4, 2020, the company participated in a secondary
offering of KDP shares and sold approximately 6.8 million shares,
which reduced its ownership interest by 0.5% to 13.1% of the total
outstanding shares. The company received $185 million of proceeds
and recorded a pre-tax gain of $71 million (or $54 million
after-tax) during the three months ended March 31, 2020. The
company considers the 0.5% ownership reduction a partial
divestiture of its equity method investment in KDP. Therefore, the
company has removed the equity method investment net earnings
related to this divested portion from its non-GAAP financial
results for Adjusted EPS for all historical periods presented to
facilitate comparison of results. The company's U.S. GAAP results,
which include its equity method investment net earnings from KDP,
did not change from what was previously reported.
JDE Peet’s Transaction:On May 19, 2020, JDE Peet’s B.V.
(renamed JDE Peet’s N.V. immediately prior to Settlement (as
defined below), “JDE Peet’s”) announced its intention to launch an
offering of its ordinary shares (the “offering”) and to apply for
admission to listing and trading of all of its ordinary shares on
Euronext Amsterdam, a regulated market operated by Euronext
Amsterdam N.V. (the “admission”). On May 26, 2020, JDE Peet’s
published a prospectus in connection with the offering and the
admission. On May 29, 2020, JDE Peet’s announced the final
pricing terms of the offering, and JDE Peet’s and the selling
shareholders, including the company, agreed to sell at a price of
€31.50 per ordinary share a total of approximately 82.1 million
ordinary shares, including ordinary shares subject to an
over-allotment option. The ordinary shares were listed and first
traded on May 29, 2020, and payment for, and delivery of, the
ordinary shares sold in the offering (excluding ordinary shares
subject to the over-allotment option) took place on June 2,
2020 (“Settlement”).
Prior to Settlement, the company exchanged its 26.4% ownership
interest in JDE for a 26.5% equity interest in JDE Peet’s. The
company did not invest new capital in connection with the
transaction and the exchange was accounted for as a change in
interest transaction. Upon Settlement, the company sold
approximately 9.7 million of its ordinary shares in JDE Peet’s in
the offering for gross proceeds of €304 million ($343 million). The
company subsequently sold approximately 1.4 million additional
shares and received gross proceeds of €46 million ($51 million)
upon exercise of the over-allotment option. Following Settlement
and the exercise of the over-allotment option, the company holds a
22.9% equity interest in JDE Peet’s. As a result of the Settlement
and the subsequent sale of shares, the company recorded a
preliminary gain of $121 million (net of $33 million released from
accumulated other comprehensive losses) and $48 million of
transaction costs.
In connection with this transaction, the company changed its
accounting principle to reflect its share of JDE’s historical and
JDE Peet’s ongoing earnings on a one-quarter lag basis, although
the company continues to record dividends when cash is received.
The company determined a lag was preferable as it enables the
company to continue to report its quarterly and annual results on a
timely basis, while recording its share of JDE Peet’s ongoing
results after JDE Peet’s has publicly reported its results. This
change in accounting principle was applied retrospectively to all
periods.
Equity method investee acquisition-related or other
charges/benefits, netWithin Adjusted EPS, the company’s
equity method investment net earnings exclude its proportionate
share of its equity method investees’ unusual or infrequent items,
such as acquisition and divestiture-related costs and restructuring
program costs.
Constant currencyManagement evaluates the
operating performance of the company and its international
subsidiaries on a constant currency basis. The company determines
its constant currency operating results by dividing or multiplying,
as appropriate, the current period local currency operating results
by the currency exchange rates used to translate the company’s
financial statements in the comparable prior-year period to
determine what the current-period U.S. dollar operating results
would have been if the currency exchange rate had not changed from
the comparable prior-year period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 4a |
Mondelēz
International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Net
Revenues |
(in millions
of U.S. dollars) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
AMEA |
|
Europe |
|
North America |
|
Mondelēz International |
For
the Three Months Ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
511 |
|
|
$ |
1,237 |
|
|
$ |
2,138 |
|
|
$ |
2,025 |
|
|
$ |
5,911 |
|
Acquisitions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(114 |
) |
|
|
(114 |
) |
Currency |
|
143 |
|
|
|
52 |
|
|
|
83 |
|
|
|
5 |
|
|
|
283 |
|
Organic (Non-GAAP) |
$ |
654 |
|
|
$ |
1,289 |
|
|
$ |
2,221 |
|
|
$ |
1,916 |
|
|
$ |
6,080 |
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
737 |
|
|
$ |
1,352 |
|
|
$ |
2,247 |
|
|
$ |
1,726 |
|
|
$ |
6,062 |
|
Divestitures |
|
- |
|
|
|
(22 |
) |
|
|
- |
|
|
|
- |
|
|
|
(22 |
) |
Organic (Non-GAAP) |
$ |
737 |
|
|
$ |
1,330 |
|
|
$ |
2,247 |
|
|
$ |
1,726 |
|
|
$ |
6,040 |
|
|
|
|
|
|
|
|
|
|
|
%
Change |
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
|
(30.7 |
)% |
|
|
(8.5 |
)% |
|
|
(4.9 |
)% |
|
|
17.3% |
|
|
|
(2.5 |
)% |
Divestitures |
- pp |
|
1.5 pp |
|
- pp |
|
- pp |
|
0.4 pp |
Acquisitions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(6.6 |
) |
|
|
(1.8 |
) |
Currency |
|
19.4 |
|
|
|
3.9 |
|
|
|
3.7 |
|
|
|
0.3 |
|
|
|
4.6 |
|
Organic (Non-GAAP) |
|
(11.3 |
)% |
|
|
(3.1 |
)% |
|
|
(1.2 |
)% |
|
|
11.0 |
% |
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
Vol/Mix |
(18.8)pp |
|
(4.6)pp |
|
(0.4)pp |
|
7.4 pp |
|
(1.3)pp |
Pricing |
|
7.5 |
|
|
|
1.5 |
|
|
|
(0.8 |
) |
|
|
3.6 |
|
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
AMEA |
|
Europe |
|
North America |
|
Mondelēz International |
For
the Six Months Ended June 30, 2020 |
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
1,237 |
|
|
$ |
2,739 |
|
|
$ |
4,722 |
|
|
$ |
3,920 |
|
|
$ |
12,618 |
|
Acquisitions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(146 |
) |
|
|
(146 |
) |
Currency |
|
273 |
|
|
|
91 |
|
|
|
160 |
|
|
|
8 |
|
|
|
532 |
|
Organic (Non-GAAP) |
$ |
1,510 |
|
|
$ |
2,830 |
|
|
$ |
4,882 |
|
|
$ |
3,782 |
|
|
$ |
13,004 |
|
|
|
|
|
|
|
|
|
|
|
For
the Six Months Ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
1,537 |
|
|
$ |
2,893 |
|
|
$ |
4,798 |
|
|
$ |
3,372 |
|
|
$ |
12,600 |
|
Divestitures |
|
- |
|
|
|
(55 |
) |
|
|
- |
|
|
|
- |
|
|
|
(55 |
) |
Organic (Non-GAAP) |
$ |
1,537 |
|
|
$ |
2,838 |
|
|
$ |
4,798 |
|
|
$ |
3,372 |
|
|
$ |
12,545 |
|
|
|
|
|
|
|
|
|
|
|
%
Change |
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
|
(19.5 |
)% |
|
|
(5.3 |
)% |
|
|
(1.6 |
)% |
|
|
16.3 |
% |
|
|
0.1 |
% |
Divestitures |
- pp |
|
1.8 pp |
|
- pp |
|
- pp |
|
0.5 pp |
Acquisitions |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4.3 |
) |
|
|
(1.1 |
) |
Currency |
|
17.7 |
|
|
|
3.2 |
|
|
|
3.4 |
|
|
|
0.2 |
|
|
|
4.2 |
|
Organic (Non-GAAP) |
|
(1.8 |
)% |
|
|
(0.3 |
)% |
|
|
1.8 |
% |
|
|
12.2 |
% |
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
Vol/Mix |
(10.0)pp |
|
(1.7)pp |
|
2.0 pp |
|
9.8 pp |
|
1.8 pp |
Pricing |
|
8.2 |
|
|
|
1.4 |
|
|
|
(0.2 |
) |
|
|
2.4 |
|
|
|
1.9 |
|
|
|
|
|
|
Schedule 4b |
Mondelēz
International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Net Revenues
- Markets |
(in millions
of U.S. dollars) |
(Unaudited) |
|
|
|
|
|
|
|
Emerging Markets |
|
Developed Markets |
|
Mondelēz International |
For
the Three Months Ended June 30, 2020 |
|
|
|
|
|
Reported (GAAP) |
$ |
1,917 |
|
|
$ |
3,994 |
|
|
$ |
5,911 |
|
Acquisitions |
|
- |
|
|
|
(114 |
) |
|
|
(114 |
) |
Currency |
|
218 |
|
|
|
65 |
|
|
|
283 |
|
Organic (Non-GAAP) |
$ |
2,135 |
|
|
$ |
3,945 |
|
|
$ |
6,080 |
|
|
|
|
|
|
|
For
the Three Months Ended June 30, 2019 |
|
|
|
|
|
Reported (GAAP) |
$ |
2,272 |
|
|
$ |
3,790 |
|
|
$ |
6,062 |
|
Divestitures |
|
(22 |
) |
|
|
- |
|
|
|
(22 |
) |
Organic (Non-GAAP) |
$ |
2,250 |
|
|
$ |
3,790 |
|
|
$ |
6,040 |
|
|
|
|
|
|
|
%
Change |
|
|
|
|
|
Reported (GAAP) |
|
(15.6 |
)% |
|
|
5.4 |
% |
|
|
(2.5 |
)% |
Divestitures |
0.8 pp |
|
- pp |
|
0.4 pp |
Acquisitions |
|
- |
|
|
|
(3.0 |
) |
|
|
(1.8 |
) |
Currency |
|
9.7 |
|
|
|
1.7 |
|
|
|
4.6 |
|
Organic (Non-GAAP) |
|
(5.1 |
)% |
|
|
4.1 |
% |
|
|
0.7 |
% |
|
|
|
|
|
|
Vol/Mix |
(7.8)pp |
|
2.5 pp |
|
(1.3)pp |
Pricing |
|
2.7 |
|
|
|
1.6 |
|
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging Markets |
|
Developed Markets |
|
Mondelēz International |
For
the Six Months Ended June 30, 2020 |
|
|
|
|
|
Reported (GAAP) |
$ |
4,334 |
|
|
$ |
8,284 |
|
|
$ |
12,618 |
|
Acquisitions |
|
- |
|
|
|
(146 |
) |
|
|
(146 |
) |
Currency |
|
382 |
|
|
|
150 |
|
|
|
532 |
|
Organic (Non-GAAP) |
$ |
4,716 |
|
|
$ |
8,288 |
|
|
$ |
13,004 |
|
|
|
|
|
|
|
For
the Six Months Ended June 30, 2019 |
|
|
|
|
|
Reported (GAAP) |
$ |
4,774 |
|
|
$ |
7,826 |
|
|
$ |
12,600 |
|
Divestitures |
|
(55 |
) |
|
|
- |
|
|
|
(55 |
) |
Organic (Non-GAAP) |
$ |
4,719 |
|
|
$ |
7,826 |
|
|
$ |
12,545 |
|
|
|
|
|
|
|
%
Change |
|
|
|
|
|
Reported (GAAP) |
|
(9.2 |
)% |
|
|
5.9 |
% |
|
|
0.1 |
% |
Divestitures |
1.0 pp |
|
- pp |
|
0.5 pp |
Acquisitions |
|
- |
|
|
|
(1.9 |
) |
|
|
(1.1 |
) |
Currency |
|
8.1 |
|
|
|
1.9 |
|
|
|
4.2 |
|
Organic (Non-GAAP) |
|
(0.1 |
)% |
|
|
5.9 |
% |
|
|
3.7 |
% |
|
|
|
|
|
|
Vol/Mix |
(3.5)pp |
|
4.9 pp |
|
1.8 pp |
Pricing |
|
3.4 |
|
|
|
1.0 |
|
|
|
1.9 |
|
|
|
|
|
|
|
|
|
|
Schedule 5a |
Mondelēz
International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Gross Profit
/ Operating Income |
(in millions
of U.S. dollars) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2020 |
|
Net Revenues |
|
Gross Profit |
|
Gross Profit Margin |
|
Operating Income |
|
Operating Income Margin |
Reported (GAAP) |
$ |
5,911 |
|
|
$ |
2,331 |
|
|
39.4 |
% |
|
$ |
713 |
|
|
12.1 |
% |
Simplify to
Grow Program |
|
- |
|
|
|
15 |
|
|
|
|
|
76 |
|
|
|
Intangible
asset impairment charges |
|
- |
|
|
|
- |
|
|
|
|
|
90 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
1 |
|
|
|
|
|
2 |
|
|
|
Acquisition
integration costs |
|
- |
|
|
|
- |
|
|
|
|
|
2 |
|
|
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
|
|
10 |
|
|
|
Divestiture-related costs |
|
- |
|
|
|
(1 |
) |
|
|
|
|
(2 |
) |
|
|
Costs
associated with JDE Peet’s transaction |
|
- |
|
|
|
- |
|
|
|
|
|
48 |
|
|
|
Remeasurement of net monetary position |
|
- |
|
|
|
- |
|
|
|
|
|
3 |
|
|
|
Rounding |
|
- |
|
|
|
1 |
|
|
|
|
|
- |
|
|
|
Adjusted (Non-GAAP) |
$ |
5,911 |
|
|
$ |
2,347 |
|
|
39.7 |
% |
|
$ |
942 |
|
|
15.9 |
% |
Currency |
|
|
|
96 |
|
|
|
|
|
28 |
|
|
|
Adjusted @ Constant FX (Non-GAAP) |
|
|
$ |
2,443 |
|
|
|
|
$ |
970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2019 |
|
Net Revenues |
|
Gross Profit |
|
Gross Profit Margin |
|
Operating Income |
|
Operating Income Margin |
Reported (GAAP) |
$ |
6,062 |
|
|
$ |
2,469 |
|
|
40.7 |
% |
|
$ |
1,025 |
|
|
16.9 |
% |
Simplify to
Grow Program |
|
- |
|
|
|
24 |
|
|
|
|
|
83 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
(33 |
) |
|
|
|
|
(33 |
) |
|
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
|
|
1 |
|
|
|
Divestiture-related costs |
|
- |
|
|
|
- |
|
|
|
|
|
11 |
|
|
|
Operating
income from divestitures |
|
(22 |
) |
|
|
(8 |
) |
|
|
|
|
(5 |
) |
|
|
Net gain on
divestiture |
|
- |
|
|
|
- |
|
|
|
|
|
(41 |
) |
|
|
Remeasurement of net monetary position |
|
- |
|
|
|
- |
|
|
|
|
|
(1 |
) |
|
|
Impact from
pension participation changes |
|
- |
|
|
|
- |
|
|
|
|
|
(35 |
) |
|
|
CEO
transition remuneration |
|
- |
|
|
|
- |
|
|
|
|
|
3 |
|
|
|
Adjusted (Non-GAAP) |
$ |
6,040 |
|
|
$ |
2,452 |
|
|
40.6 |
% |
|
$ |
1,008 |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
Operating Income |
|
|
$
Change - Reported (GAAP) |
|
|
$ |
(138 |
) |
|
|
|
$ |
(312 |
) |
|
|
$
Change - Adjusted (Non-GAAP) |
|
|
|
(105 |
) |
|
|
|
|
(66 |
) |
|
|
$
Change - Adjusted @ Constant FX (Non-GAAP) |
|
|
|
(9 |
) |
|
|
|
|
(38 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
%
Change - Reported (GAAP) |
|
|
|
(5.6 |
)% |
|
|
|
|
(30.4 |
)% |
|
|
%
Change - Adjusted (Non-GAAP) |
|
|
|
(4.3 |
)% |
|
|
|
|
(6.5 |
)% |
|
|
%
Change - Adjusted @ Constant FX (Non-GAAP) |
|
|
|
(0.4 |
)% |
|
|
|
|
(3.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
Schedule 5b |
Mondelēz
International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Gross Profit
/ Operating Income |
(in millions
of U.S. dollars) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2020 |
|
Net Revenues |
|
Gross Profit |
|
Gross Profit Margin |
|
Operating Income |
|
Operating Income Margin |
Reported (GAAP) |
$ |
12,618 |
|
|
$ |
4,782 |
|
|
37.9 |
% |
|
$ |
1,569 |
|
|
12.4 |
% |
Simplify to
Grow Program |
|
- |
|
|
|
34 |
|
|
|
|
|
134 |
|
|
|
Intangible
asset impairment charges |
|
- |
|
|
|
- |
|
|
|
|
|
90 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
187 |
|
|
|
|
|
187 |
|
|
|
Acquisition
integration costs |
|
- |
|
|
|
- |
|
|
|
|
|
2 |
|
|
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
|
|
15 |
|
|
|
Divestiture-related costs |
|
- |
|
|
|
(1 |
) |
|
|
|
|
(2 |
) |
|
|
Costs
associated with JDE Peet’s transaction |
|
- |
|
|
|
- |
|
|
|
|
|
48 |
|
|
|
Remeasurement of net monetary position |
|
- |
|
|
|
- |
|
|
|
|
|
5 |
|
|
|
Rounding |
|
- |
|
|
|
1 |
|
|
|
|
|
- |
|
|
|
Adjusted (Non-GAAP) |
$ |
12,618 |
|
|
$ |
5,003 |
|
|
39.6 |
% |
|
$ |
2,048 |
|
|
16.2 |
% |
Currency |
|
|
|
182 |
|
|
|
|
|
74 |
|
|
|
Adjusted @ Constant FX (Non-GAAP) |
|
|
$ |
5,185 |
|
|
|
|
$ |
2,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2019 |
|
Net Revenues |
|
Gross Profit |
|
Gross Profit Margin |
|
Operating Income |
|
Operating Income Margin |
Reported (GAAP) |
$ |
12,600 |
|
|
$ |
5,062 |
|
|
40.2% |
|
|
$ |
2,061 |
|
|
16.4% |
|
Simplify to
Grow Program |
|
- |
|
|
|
45 |
|
|
|
|
|
153 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
(50 |
) |
|
|
|
|
(49 |
) |
|
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
|
|
1 |
|
|
|
Divestiture-related costs |
|
- |
|
|
|
- |
|
|
|
|
|
10 |
|
|
|
Operating
income from divestitures |
|
(55 |
) |
|
|
(14 |
) |
|
|
|
|
(9 |
) |
|
|
Net gain on
divestiture |
|
- |
|
|
|
- |
|
|
|
|
|
(41 |
) |
|
|
Remeasurement of net monetary position |
|
- |
|
|
|
- |
|
|
|
|
|
1 |
|
|
|
Impact from
pension participation changes |
|
- |
|
|
|
- |
|
|
|
|
|
(35 |
) |
|
|
CEO
transition remuneration |
|
- |
|
|
|
- |
|
|
|
|
|
6 |
|
|
|
Adjusted (Non-GAAP) |
$ |
12,545 |
|
|
$ |
5,043 |
|
|
40.2% |
|
|
$ |
2,098 |
|
|
16.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
Operating Income |
|
|
$
Change - Reported (GAAP) |
|
|
$ |
(280 |
) |
|
|
|
$ |
(492 |
) |
|
|
$
Change - Adjusted (Non-GAAP) |
|
|
|
(40 |
) |
|
|
|
|
(50 |
) |
|
|
$
Change - Adjusted @ Constant FX (Non-GAAP) |
|
|
|
142 |
|
|
|
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change - Reported (GAAP) |
|
|
|
(5.5 |
% |
|
|
|
|
(23.9 |
)% |
|
|
%
Change - Adjusted (Non-GAAP) |
|
|
|
(0.8 |
% |
|
|
|
|
(2.4 |
)% |
|
|
%
Change - Adjusted @ Constant FX (Non-GAAP) |
|
|
|
2.8 |
% |
|
|
|
|
1.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 6a |
Mondelēz
International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Net Earnings
and Tax Rate |
(in millions
of U.S. dollars and shares, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2020 |
|
Operating Income |
|
Benefit plan non-service expense / (income) |
|
Interest and other expense, net |
|
Earnings before income taxes |
|
Income taxes (1) |
|
Effective tax rate |
|
Gain on equity method investment transaction |
|
Equity method investment net losses /
(earnings) |
|
Non-controlling interest earnings |
|
Net Earnings attributable to Mondelēz
International |
|
Diluted EPS attributable to Mondelēz
International |
Reported (GAAP) |
$ |
713 |
|
|
$ |
(31 |
) |
|
$ |
85 |
|
|
$ |
659 |
|
|
$ |
341 |
|
|
51.7 |
% |
|
$ |
(121 |
) |
|
$ |
(106 |
) |
|
$ |
1 |
|
$ |
544 |
|
|
$ |
0.38 |
|
Simplify to
Grow Program |
|
76 |
|
|
|
(4 |
) |
|
|
- |
|
|
|
80 |
|
|
|
20 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
60 |
|
|
|
0.04 |
|
Intangible
asset impairment charges |
|
90 |
|
|
|
- |
|
|
|
- |
|
|
|
90 |
|
|
|
21 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
69 |
|
|
|
0.05 |
|
Mark-to-market (gains)/losses from derivatives |
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
2 |
|
|
|
- |
|
Acquisition
integration costs |
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
2 |
|
|
|
- |
|
Acquisition-related costs |
|
10 |
|
|
|
- |
|
|
|
- |
|
|
|
10 |
|
|
|
2 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
8 |
|
|
|
0.01 |
|
Divestiture-related costs |
|
(2 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(2 |
) |
|
|
- |
|
Costs
associated with JDE Peet’s transaction |
|
48 |
|
|
|
- |
|
|
|
- |
|
|
|
48 |
|
|
|
(261 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
309 |
|
|
|
0.21 |
|
Remeasurement of net monetary position |
|
3 |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
3 |
|
|
|
- |
|
Impact from
pension participation changes |
|
- |
|
|
|
- |
|
|
|
(3 |
) |
|
|
3 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
3 |
|
|
|
- |
|
Gain on
equity method investment transaction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
121 |
|
|
|
- |
|
|
|
- |
|
|
(121 |
) |
|
|
(0.08 |
) |
Equity
method investee acquisition-related and other adjustments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7 |
|
|
|
|
|
- |
|
|
|
(34 |
) |
|
|
- |
|
|
27 |
|
|
|
0.02 |
|
Adjusted (Non-GAAP) |
$ |
942 |
|
|
$ |
(35 |
) |
|
$ |
82 |
|
|
$ |
895 |
|
|
$ |
130 |
|
|
14.5 |
% |
|
$ |
- |
|
|
$ |
(140 |
) |
|
$ |
1 |
|
$ |
904 |
|
|
$ |
0.63 |
|
Currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 |
|
|
|
0.02 |
|
Adjusted @ Constant FX (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
931 |
|
|
$ |
0.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,439 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2019 |
|
Operating Income |
|
Benefit plan non-service expense / (income) |
|
Interest and other expense, net |
|
Earnings before income taxes |
|
Income taxes (1) |
|
Effective tax rate |
|
Loss on equity method investment transaction |
|
Equity method investment net losses /
(earnings) |
|
Non-controlling interest earnings |
|
Net Earnings attributable to Mondelēz
International |
|
Diluted EPS attributable to Mondelēz
International |
Reported (GAAP) |
$ |
1,025 |
|
|
$ |
(12 |
) |
|
$ |
101 |
|
|
$ |
936 |
|
|
$ |
216 |
|
|
23.1 |
% |
|
$ |
25 |
|
|
$ |
(109 |
) |
|
$ |
1 |
|
$ |
803 |
|
|
$ |
0.55 |
|
Simplify to
Grow Program |
|
83 |
|
|
|
(5 |
) |
|
|
- |
|
|
|
88 |
|
|
|
19 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
69 |
|
|
|
0.05 |
|
Mark-to-market (gains)/losses from derivatives |
|
(33 |
) |
|
|
- |
|
|
|
- |
|
|
|
(33 |
) |
|
|
(3 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(30 |
) |
|
|
(0.02 |
) |
Acquisition-related costs |
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
1 |
|
|
|
- |
|
Divestiture-related costs |
|
11 |
|
|
|
- |
|
|
|
- |
|
|
|
11 |
|
|
|
1 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
10 |
|
|
|
0.01 |
|
Net earnings
from divestitures |
|
(5 |
) |
|
|
- |
|
|
|
- |
|
|
|
(5 |
) |
|
|
(1 |
) |
|
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
(6 |
) |
|
|
(0.01 |
) |
Net gain on
divestiture |
|
(41 |
) |
|
|
- |
|
|
|
- |
|
|
|
(41 |
) |
|
|
(3 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(38 |
) |
|
|
(0.03 |
) |
Remeasurement of net monetary position |
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(1 |
) |
|
|
- |
|
Impact from
pension participation changes |
|
(35 |
) |
|
|
- |
|
|
|
- |
|
|
|
(35 |
) |
|
|
(9 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(26 |
) |
|
|
(0.02 |
) |
CEO
transition remuneration |
|
3 |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
3 |
|
|
|
- |
|
U.S. tax
reform discrete net tax expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
1 |
|
|
|
- |
|
Loss on
equity method investment transaction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
|
|
|
(25 |
) |
|
|
- |
|
|
|
- |
|
|
27 |
|
|
|
0.02 |
|
Equity
method investee acquisition-related and other adjustments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
|
|
|
- |
|
|
|
(12 |
) |
|
|
- |
|
|
9 |
|
|
|
0.01 |
|
Adjusted (Non-GAAP) |
$ |
1,008 |
|
|
$ |
(17 |
) |
|
$ |
101 |
|
|
$ |
924 |
|
|
$ |
220 |
|
|
23.8 |
% |
|
$ |
- |
|
|
$ |
(119 |
) |
|
$ |
1 |
|
$ |
822 |
|
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Taxes were
computed for each of the items excluded from the company’s GAAP
results based on the facts and tax assumptions associated with each
item. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 6b |
Mondelēz
International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Net Earnings
and Tax Rate |
(in millions
of U.S. dollars and shares, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2020 |
|
Operating Income |
|
Benefit plan non-service expense / (income) |
|
Interest and other expense, net |
|
Earnings before income taxes |
|
Income taxes (1) |
|
Effective tax rate |
|
Gain on equity method investment transaction |
|
Equity method investment net losses /
(earnings) |
|
Non-controlling interest earnings |
|
Net Earnings attributable to Mondelēz
International |
|
Diluted EPS attributable to Mondelēz
International |
Reported (GAAP) |
$ |
1,569 |
|
|
$ |
(64 |
) |
|
$ |
275 |
|
|
$ |
1,358 |
|
|
$ |
489 |
|
|
36.0 |
% |
|
$ |
(192 |
) |
|
$ |
(227 |
) |
|
$ |
8 |
|
$ |
1,280 |
|
|
$ |
0.89 |
|
Simplify to
Grow Program |
|
134 |
|
|
|
(4 |
) |
|
|
- |
|
|
|
138 |
|
|
|
33 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
105 |
|
|
|
0.07 |
|
Intangible
asset impairment charges |
|
90 |
|
|
|
- |
|
|
|
- |
|
|
|
90 |
|
|
|
21 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
69 |
|
|
|
0.05 |
|
Mark-to-market (gains)/losses from derivatives |
|
187 |
|
|
|
- |
|
|
|
1 |
|
|
|
186 |
|
|
|
32 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
154 |
|
|
|
0.11 |
|
Acquisition
integration costs |
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
2 |
|
|
|
- |
|
Acquisition-related costs |
|
15 |
|
|
|
- |
|
|
|
- |
|
|
|
15 |
|
|
|
3 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
12 |
|
|
|
0.01 |
|
Divestiture-related costs |
|
(2 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(2 |
) |
|
|
- |
|
Net earnings
from divestitures |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
(2 |
) |
|
|
- |
|
Costs
associated with JDE Peet’s transaction |
|
48 |
|
|
|
- |
|
|
|
- |
|
|
|
48 |
|
|
|
(261 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
309 |
|
|
|
0.21 |
|
Remeasurement of net monetary position |
|
5 |
|
|
|
- |
|
|
|
- |
|
|
|
5 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
5 |
|
|
|
- |
|
Impact from
pension participation changes |
|
- |
|
|
|
- |
|
|
|
(6 |
) |
|
|
6 |
|
|
|
1 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
5 |
|
|
|
- |
|
Loss related
to interest rate swaps |
|
- |
|
|
|
- |
|
|
|
(103 |
) |
|
|
103 |
|
|
|
24 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
79 |
|
|
|
0.06 |
|
Gain on
equity method investment transaction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(17 |
) |
|
|
|
|
192 |
|
|
|
- |
|
|
|
- |
|
|
(175 |
) |
|
|
(0.12 |
) |
Equity
method investee acquisition-related and other adjustments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8 |
|
|
|
|
|
- |
|
|
|
(42 |
) |
|
|
- |
|
|
34 |
|
|
|
0.02 |
|
Adjusted (Non-GAAP) |
$ |
2,048 |
|
|
$ |
(68 |
) |
|
$ |
167 |
|
|
$ |
1,949 |
|
|
$ |
333 |
|
|
17.1 |
% |
|
$ |
- |
|
|
$ |
(267 |
) |
|
$ |
8 |
|
$ |
1,875 |
|
|
$ |
1.30 |
|
Currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70 |
|
|
|
0.05 |
|
Adjusted @ Constant FX (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,945 |
|
|
$ |
1.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2019 |
|
Operating Income |
|
Benefit plan non-service expense / (income) |
|
Interest and other expense, net |
|
Earnings before income taxes |
|
Income taxes (1) |
|
Effective tax rate |
|
Loss on equity method investment transaction |
|
Equity method investment net losses /
(earnings) |
|
Non-controlling interest earnings |
|
Net Earnings attributable to Mondelēz
International |
|
Diluted EPS attributable to Mondelēz
International |
Reported (GAAP) |
$ |
2,061 |
|
|
$ |
(29 |
) |
|
$ |
181 |
|
|
$ |
1,909 |
|
|
$ |
405 |
|
|
21.2 |
% |
|
$ |
2 |
|
|
$ |
(275 |
) |
|
$ |
7 |
|
$ |
1,770 |
|
|
$ |
1.21 |
|
Simplify to
Grow Program |
|
153 |
|
|
|
(5 |
) |
|
|
- |
|
|
|
158 |
|
|
|
38 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
120 |
|
|
|
0.08 |
|
Mark-to-market (gains)/losses from derivatives |
|
(49 |
) |
|
|
- |
|
|
|
- |
|
|
|
(49 |
) |
|
|
(6 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(43 |
) |
|
|
(0.03 |
) |
Acquisition-related costs |
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
1 |
|
|
|
- |
|
Divestiture-related costs |
|
10 |
|
|
|
- |
|
|
|
- |
|
|
|
10 |
|
|
|
1 |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
9 |
|
|
|
0.01 |
|
Net earnings
from divestitures |
|
(9 |
) |
|
|
- |
|
|
|
- |
|
|
|
(9 |
) |
|
|
(1 |
) |
|
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
(11 |
) |
|
|
(0.01 |
) |
Net gain on
divestiture |
|
(41 |
) |
|
|
- |
|
|
|
- |
|
|
|
(41 |
) |
|
|
(3 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(38 |
) |
|
|
(0.03 |
) |
Remeasurement of net monetary position |
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
1 |
|
|
|
- |
|
Impact from
pension participation changes |
|
(35 |
) |
|
|
- |
|
|
|
- |
|
|
|
(35 |
) |
|
|
(9 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
(26 |
) |
|
|
(0.02 |
) |
CEO
transition remuneration |
|
6 |
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
6 |
|
|
|
0.01 |
|
U.S. tax
reform discrete net tax expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
2 |
|
|
|
- |
|
Loss on
equity method investment transaction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(7 |
) |
|
|
|
|
(2 |
) |
|
|
- |
|
|
|
- |
|
|
9 |
|
|
|
0.01 |
|
Equity
method investee acquisition-related and other adjustments |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7 |
|
|
|
|
|
- |
|
|
|
(29 |
) |
|
|
- |
|
|
22 |
|
|
|
0.02 |
|
Adjusted (Non-GAAP) |
$ |
2,098 |
|
|
$ |
(34 |
) |
|
$ |
181 |
|
|
$ |
1,951 |
|
|
$ |
423 |
|
|
21.7 |
% |
|
$ |
- |
|
|
$ |
(301 |
) |
|
$ |
7 |
|
$ |
1,822 |
|
|
$ |
1.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Taxes were
computed for each of the items excluded from the company’s GAAP
results based on the facts and tax assumptions associated with each
item. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 7a |
Mondelēz
International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Diluted
EPS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
$ Change |
|
% Change |
Diluted EPS attributable to Mondelēz International
(GAAP) |
$ |
0.38 |
|
|
$ |
0.55 |
|
|
$ |
(0.17 |
) |
|
(30.9 |
)% |
Simplify to
Grow Program |
|
0.04 |
|
|
|
0.05 |
|
|
|
(0.01 |
) |
|
|
Intangible
asset impairment charges |
|
0.05 |
|
|
|
- |
|
|
|
0.05 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
(0.02 |
) |
|
|
0.02 |
|
|
|
Acquisition-related costs |
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
|
|
Divestiture-related costs |
|
- |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
Net earnings
from divestitures |
|
- |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
Net gain on
divestiture |
|
- |
|
|
|
(0.03 |
) |
|
|
0.03 |
|
|
|
Costs
associated with JDE Peet’s transaction |
|
0.21 |
|
|
|
- |
|
|
|
0.21 |
|
|
|
Impact from
pension participation changes |
|
- |
|
|
|
(0.02 |
) |
|
|
0.02 |
|
|
|
(Gain)/loss
on equity method investment transactions |
|
(0.08 |
) |
|
|
0.02 |
|
|
|
(0.10 |
) |
|
|
Equity
method investee acquisition-related and other adjustments |
|
0.02 |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
Adjusted EPS (Non-GAAP) |
$ |
0.63 |
|
|
$ |
0.56 |
|
|
$ |
0.07 |
|
|
12.5 |
% |
Impact of
unfavorable currency |
|
0.02 |
|
|
|
- |
|
|
|
0.02 |
|
|
|
Adjusted EPS @ Constant FX (Non-GAAP) |
$ |
0.65 |
|
|
$ |
0.56 |
|
|
$ |
0.09 |
|
|
16.1 |
% |
|
|
|
|
|
|
|
|
Adjusted EPS @ Constant FX - Key Drivers |
|
|
|
|
|
|
|
Decrease in
operations |
|
|
|
|
$ |
(0.02 |
) |
|
|
Change in
benefit plan non-service income |
|
|
|
|
|
0.01 |
|
|
|
Change in
interest and other expense, net |
|
|
|
|
|
0.01 |
|
|
|
Increase in
equity method investment net earnings |
|
|
|
|
|
0.02 |
|
|
|
Change in
income taxes |
|
|
|
|
|
0.06 |
|
|
|
Change in
shares outstanding |
|
|
|
|
|
0.01 |
|
|
|
|
|
|
|
|
$ |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 7b |
Mondelēz
International, Inc. and Subsidiaries |
Reconciliation of GAAP to Non-GAAP Measures |
Diluted
EPS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, |
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
$ Change |
|
% Change |
Diluted EPS attributable to Mondelēz International
(GAAP) |
$ |
0.89 |
|
|
$ |
1.21 |
|
|
$ |
(0.32 |
) |
|
(26.4 |
)% |
Simplify to
Grow Program |
|
0.07 |
|
|
|
0.08 |
|
|
|
(0.01 |
) |
|
|
Intangible
asset impairment charges |
|
0.05 |
|
|
|
- |
|
|
|
0.05 |
|
|
|
Mark-to-market (gains)/losses from derivatives |
|
0.11 |
|
|
|
(0.03 |
) |
|
|
0.14 |
|
|
|
Acquisition-related costs |
|
0.01 |
|
|
|
- |
|
|
|
0.01 |
|
|
|
Divestiture-related costs |
|
- |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
Net earnings
from divestitures |
|
- |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
Net gain on
divestiture |
|
- |
|
|
|
(0.03 |
) |
|
|
0.03 |
|
|
|
Costs
associated with JDE Peet’s transaction |
|
0.21 |
|
|
|
- |
|
|
|
0.21 |
|
|
|
Impact from
pension participation changes |
|
- |
|
|
|
(0.02 |
) |
|
|
0.02 |
|
|
|
CEO
transition remuneration |
|
- |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
Loss related
to interest rate swaps |
|
0.06 |
|
|
|
- |
|
|
|
0.06 |
|
|
|
(Gain)/loss
on equity method investment transactions |
|
(0.12 |
) |
|
|
0.01 |
|
|
|
(0.13 |
) |
|
|
Equity
method investee acquisition-related and other adjustments |
|
0.02 |
|
|
|
0.02 |
|
|
|
- |
|
|
|
Adjusted EPS (Non-GAAP) |
$ |
1.30 |
|
|
$ |
1.25 |
|
|
$ |
0.05 |
|
|
4.0 |
% |
Impact of
unfavorable currency |
|
0.05 |
|
|
|
- |
|
|
|
0.05 |
|
|
|
Adjusted EPS @ Constant FX (Non-GAAP) |
$ |
1.35 |
|
|
$ |
1.25 |
|
|
$ |
0.10 |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
Adjusted EPS @ Constant FX - Key Drivers |
|
|
|
|
|
|
|
Increase in
operations |
|
|
|
|
$ |
0.01 |
|
|
|
Change in
benefit plan non-service income |
|
|
|
|
|
0.02 |
|
|
|
Change in
interest and other expense, net |
|
|
|
|
|
- |
|
|
|
Decrease in
equity method investment net earnings |
|
|
|
|
|
(0.02 |
) |
|
|
Change in
income taxes |
|
|
|
|
|
0.07 |
|
|
|
Change in
shares outstanding |
|
|
|
|
|
0.02 |
|
|
|
|
|
|
|
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 8a |
|
Mondelēz
International, Inc. and Subsidiaries |
|
Reconciliation of GAAP to Non-GAAP Measures |
|
Segment
Data |
|
(in millions
of U.S. dollars) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2020 |
|
|
Latin America |
|
AMEA |
|
Europe |
|
North America |
|
Unrealized G/(L) on Hedging Activities |
|
General Corporate Expenses |
|
Amortization of Intangibles |
|
Other Items |
|
Mondelēz International |
|
Net
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
511 |
|
|
$ |
1,237 |
|
|
$ |
2,138 |
|
|
$ |
2,025 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
5,911 |
|
|
Divestitures |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Adjusted (Non-GAAP) |
$ |
511 |
|
|
$ |
1,237 |
|
|
$ |
2,138 |
|
|
$ |
2,025 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
5,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
(6 |
) |
|
$ |
171 |
|
|
$ |
297 |
|
|
$ |
424 |
|
|
$ |
(2 |
) |
|
$ |
(111 |
) |
|
$ |
(50 |
) |
|
$ |
(10 |
) |
|
$ |
713 |
|
|
Simplify to
Grow Program |
|
15 |
|
|
|
8 |
|
|
|
20 |
|
|
|
9 |
|
|
|
- |
|
|
|
24 |
|
|
|
- |
|
|
|
- |
|
|
|
76 |
|
|
Intangible
asset impairment charges |
|
- |
|
|
|
5 |
|
|
|
50 |
|
|
|
36 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
90 |
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
Acquisition
integration costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
10 |
|
|
|
10 |
|
|
Divestiture-related costs |
|
- |
|
|
|
(2 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
Costs
associated with JDE Peet’s transaction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
48 |
|
|
|
- |
|
|
|
- |
|
|
|
48 |
|
|
Remeasurement of net monetary position |
|
3 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
Adjusted (Non-GAAP) |
$ |
12 |
|
|
$ |
182 |
|
|
$ |
367 |
|
|
$ |
470 |
|
|
$ |
- |
|
|
$ |
(39 |
) |
|
$ |
(50 |
) |
|
$ |
- |
|
|
$ |
942 |
|
|
Currency |
|
7 |
|
|
|
10 |
|
|
|
19 |
|
|
|
1 |
|
|
|
- |
|
|
|
(8 |
) |
|
|
(1 |
) |
|
|
- |
|
|
|
28 |
|
|
Adjusted @ Constant FX (Non-GAAP) |
$ |
19 |
|
|
$ |
192 |
|
|
$ |
386 |
|
|
$ |
471 |
|
|
$ |
- |
|
|
$ |
(47 |
) |
|
$ |
(51 |
) |
|
$ |
- |
|
|
$ |
970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change - Reported (GAAP) |
|
(108.8 |
)% |
|
|
(10.5 |
)% |
|
|
(27.2 |
)% |
|
|
4.2 |
% |
|
n/m |
|
|
(40.5 |
)% |
|
|
(16.3 |
)% |
|
n/m |
|
|
(30.4 |
)% |
|
%
Change - Adjusted (Non-GAAP) |
|
(86.2 |
)% |
|
|
(10.3 |
)% |
|
|
(15.8 |
)% |
|
|
23.4 |
% |
|
n/m |
|
|
30.4 |
% |
|
|
(16.3 |
)% |
|
n/m |
|
|
(6.5 |
)% |
|
%
Change - Adjusted @ Constant FX (Non-GAAP) |
|
(78.2 |
)% |
|
|
(5.4 |
)% |
|
|
(11.5 |
)% |
|
|
23.6 |
% |
|
n/m |
|
|
16.1 |
% |
|
|
(18.6 |
)% |
|
n/m |
|
|
(3.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported % |
|
(1.2 |
)% |
|
|
13.8 |
% |
|
|
13.9 |
% |
|
|
20.9 |
% |
|
|
|
|
|
|
|
|
|
|
12.1 |
% |
|
Reported pp change |
(10.4)pp |
|
(0.3)pp |
|
(4.3)pp |
|
(2.7)pp |
|
|
|
|
|
|
|
|
|
(4.8)pp |
|
Adjusted % |
|
2.3 |
% |
|
|
14.7 |
% |
|
|
17.2 |
% |
|
|
23.2 |
% |
|
|
|
|
|
|
|
|
|
|
15.9 |
% |
|
Adjusted pp change |
(9.5)pp |
|
(0.6)pp |
|
(2.2)pp |
|
1.1 pp |
|
|
|
|
|
|
|
|
|
(0.8)pp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, 2019 |
|
|
Latin America |
|
AMEA |
|
Europe |
|
North America |
|
Unrealized G/(L) on Hedging Activities |
|
General Corporate Expenses |
|
Amortization of Intangibles |
|
Other Items |
|
Mondelēz International |
|
Net
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
737 |
|
|
$ |
1,352 |
|
|
$ |
2,247 |
|
|
$ |
1,726 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
6,062 |
|
|
Divestitures |
|
- |
|
|
|
(22 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(22 |
) |
|
Adjusted (Non-GAAP) |
$ |
737 |
|
|
$ |
1,330 |
|
|
$ |
2,247 |
|
|
$ |
1,726 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
6,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
68 |
|
|
$ |
191 |
|
|
$ |
408 |
|
|
$ |
407 |
|
|
$ |
33 |
|
|
$ |
(79 |
) |
|
$ |
(43 |
) |
|
$ |
40 |
|
|
$ |
1,025 |
|
|
Simplify to
Grow Program |
|
20 |
|
|
|
9 |
|
|
|
28 |
|
|
|
9 |
|
|
|
- |
|
|
|
17 |
|
|
|
- |
|
|
|
- |
|
|
|
83 |
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(33 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(33 |
) |
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
1 |
|
|
Divestiture-related costs |
|
- |
|
|
|
8 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
|
- |
|
|
|
11 |
|
|
Operating
income from divestitures |
|
- |
|
|
|
(5 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(5 |
) |
|
Net gain on
divestiture |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(41 |
) |
|
|
(41 |
) |
|
Remeasurement of net monetary position |
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1 |
) |
|
Impact from
pension participation changes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(35 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(35 |
) |
|
CEO
transition remuneration |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
Adjusted (Non-GAAP) |
$ |
87 |
|
|
$ |
203 |
|
|
$ |
436 |
|
|
$ |
381 |
|
|
$ |
- |
|
|
$ |
(56 |
) |
|
$ |
(43 |
) |
|
$ |
- |
|
|
$ |
1,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported % |
|
9.2 |
% |
|
|
14.1 |
% |
|
|
18.2 |
% |
|
|
23.6 |
% |
|
|
|
|
|
|
|
|
|
|
16.9 |
% |
|
Adjusted % |
|
11.8 |
% |
|
|
15.3 |
% |
|
|
19.4 |
% |
|
|
22.1 |
% |
|
|
|
|
|
|
|
|
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 8b |
|
Mondelēz
International, Inc. and Subsidiaries |
|
Reconciliation of GAAP to Non-GAAP Measures |
|
Segment
Data |
|
(in millions
of U.S. dollars) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2020 |
|
|
Latin America |
|
AMEA |
|
Europe |
|
North America |
|
Unrealized G/(L) on Hedging Activities |
|
General Corporate Expenses |
|
Amortization of Intangibles |
|
Other Items |
|
Mondelēz International |
|
Net
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
1,237 |
|
|
$ |
2,739 |
|
|
$ |
4,722 |
|
|
$ |
3,920 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
12,618 |
|
|
Divestitures |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Adjusted (Non-GAAP) |
$ |
1,237 |
|
|
$ |
2,739 |
|
|
$ |
4,722 |
|
|
$ |
3,920 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
12,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
72 |
|
|
$ |
405 |
|
|
$ |
769 |
|
|
$ |
805 |
|
|
$ |
(187 |
) |
|
$ |
(187 |
) |
|
$ |
(93 |
) |
|
$ |
(15 |
) |
|
$ |
1,569 |
|
|
Simplify to
Grow Program |
|
26 |
|
|
|
10 |
|
|
|
37 |
|
|
|
21 |
|
|
|
- |
|
|
|
40 |
|
|
|
- |
|
|
|
- |
|
|
|
134 |
|
|
Intangible
asset impairment charges |
|
- |
|
|
|
5 |
|
|
|
50 |
|
|
|
36 |
|
|
|
- |
|
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
90 |
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
187 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
187 |
|
|
Acquisition
integration costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
15 |
|
|
|
15 |
|
|
Divestiture-related costs |
|
- |
|
|
|
(2 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
|
Costs
associated with JDE Peet’s transaction |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
48 |
|
|
|
- |
|
|
|
- |
|
|
|
48 |
|
|
Remeasurement of net monetary position |
|
5 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5 |
|
|
Adjusted (Non-GAAP) |
$ |
103 |
|
|
$ |
418 |
|
|
$ |
856 |
|
|
$ |
864 |
|
|
$ |
- |
|
|
$ |
(100 |
) |
|
$ |
(93 |
) |
|
$ |
- |
|
|
$ |
2,048 |
|
|
Currency |
|
27 |
|
|
|
16 |
|
|
|
36 |
|
|
|
2 |
|
|
|
- |
|
|
|
(4 |
) |
|
|
(3 |
) |
|
|
- |
|
|
|
74 |
|
|
Adjusted @ Constant FX (Non-GAAP) |
$ |
130 |
|
|
$ |
434 |
|
|
$ |
892 |
|
|
$ |
866 |
|
|
$ |
- |
|
|
$ |
(104 |
) |
|
$ |
(96 |
) |
|
$ |
- |
|
|
$ |
2,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change - Reported (GAAP) |
|
(56.6 |
)% |
|
|
(9.4 |
)% |
|
|
(15.3 |
)% |
|
|
10.9 |
% |
|
n/m |
|
|
0.5 |
% |
|
|
(6.9 |
)% |
|
n/m |
|
|
(23.9 |
)% |
|
%
Change - Adjusted (Non-GAAP) |
|
(49.0 |
)% |
|
|
(10.5 |
)% |
|
|
(9.6 |
)% |
|
|
21.7 |
% |
|
n/m |
|
|
29.1 |
% |
|
|
(6.9 |
)% |
|
n/m |
|
|
(2.4 |
)% |
|
%
Change - Adjusted @ Constant FX (Non-GAAP) |
|
(35.6 |
)% |
|
|
(7.1 |
)% |
|
|
(5.8 |
)% |
|
|
22.0 |
% |
|
n/m |
|
|
26.2 |
% |
|
|
(10.3 |
)% |
|
n/m |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported % |
|
5.8 |
% |
|
|
14.8 |
% |
|
|
16.3 |
% |
|
|
20.5 |
% |
|
|
|
|
|
|
|
|
|
|
12.4 |
% |
|
Reported pp change |
(5.0)pp |
|
(0.7)pp |
|
(2.6)pp |
|
(1.0)pp |
|
|
|
|
|
|
|
|
|
(4.0)pp |
|
Adjusted % |
|
8.3 |
% |
|
|
15.3 |
% |
|
|
18.1 |
% |
|
|
22.0 |
% |
|
|
|
|
|
|
|
|
|
|
16.2 |
% |
|
Adjusted pp change |
(4.8)pp |
|
(1.2)pp |
|
(1.6)pp |
|
0.9 pp |
|
|
|
|
|
|
|
|
|
(0.5)pp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, 2019 |
|
|
Latin America |
|
AMEA |
|
Europe |
|
North America |
|
Unrealized G/(L) on Hedging Activities |
|
General Corporate Expenses |
|
Amortization of Intangibles |
|
Other Items |
|
Mondelēz International |
|
Net
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
1,537 |
|
|
$ |
2,893 |
|
|
$ |
4,798 |
|
|
$ |
3,372 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
12,600 |
|
|
Divestitures |
|
- |
|
|
|
(55 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(55 |
) |
|
Adjusted (Non-GAAP) |
$ |
1,537 |
|
|
$ |
2,838 |
|
|
$ |
4,798 |
|
|
$ |
3,372 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
12,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP) |
$ |
166 |
|
|
$ |
447 |
|
|
$ |
908 |
|
|
$ |
726 |
|
|
$ |
49 |
|
|
$ |
(188 |
) |
|
$ |
(87 |
) |
|
$ |
40 |
|
|
$ |
2,061 |
|
|
Simplify to
Grow Program |
|
35 |
|
|
|
22 |
|
|
|
39 |
|
|
|
19 |
|
|
|
- |
|
|
|
38 |
|
|
|
- |
|
|
|
- |
|
|
|
153 |
|
|
Mark-to-market (gains)/losses from derivatives |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(49 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(49 |
) |
|
Acquisition-related costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
1 |
|
|
Divestiture-related costs |
|
- |
|
|
|
7 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
|
- |
|
|
|
- |
|
|
|
10 |
|
|
Operating
income from divestitures |
|
- |
|
|
|
(9 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(9 |
) |
|
Net gain on
divestiture |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(41 |
) |
|
|
(41 |
) |
|
Remeasurement of net monetary position |
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
Impact from
pension participation changes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(35 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(35 |
) |
|
CEO
transition remuneration |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
|
|
- |
|
|
|
- |
|
|
|
6 |
|
|
Adjusted (Non-GAAP) |
$ |
202 |
|
|
$ |
467 |
|
|
$ |
947 |
|
|
$ |
710 |
|
|
$ |
- |
|
|
$ |
(141 |
) |
|
$ |
(87 |
) |
|
$ |
- |
|
|
$ |
2,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported % |
|
10.8 |
% |
|
|
15.5 |
% |
|
|
18.9 |
% |
|
|
21.5 |
% |
|
|
|
|
|
|
|
|
|
|
16.4 |
% |
|
Adjusted % |
|
13.1 |
% |
|
|
16.5 |
% |
|
|
19.7 |
% |
|
|
21.1 |
% |
|
|
|
|
|
|
|
|
|
|
16.7 |
% |
|
|
|
|
|
|
Schedule 9 |
|
Mondelēz
International, Inc. and Subsidiaries |
|
Reconciliation of GAAP to Non-GAAP Measures |
|
Net Cash
Provided by Operating Activities to Free Cash Flow |
|
(in millions
of U.S. dollars) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
For the Six Months Ended June 30, |
|
|
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
$ Change |
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
(GAAP) |
$ |
1,558 |
|
|
$ |
1,046 |
|
|
$ |
512 |
|
Capital
Expenditures |
|
(445 |
) |
|
|
(465 |
) |
|
|
20 |
|
Free
Cash Flow (Non-GAAP) |
$ |
1,113 |
|
|
$ |
581 |
|
|
$ |
532 |
|
|
|
|
|
|
|
|
Contacts: |
Tom Armitage (Media) |
Shep Dunlap (Investors) |
|
1-847-943-5678 |
1-847-943-5454 |
|
news@mdlz.com |
ir@mdlz.com |
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