Summary
This Form 8-K filing from Mondelēz International, Inc. (MDLZ), filed on April 8, 2013, reports on a significant business reorganization following the spin-off of Kraft Foods Group, Inc. in October 2012. Effective January 1, 2013, the company restructured its operations into five new global segments: Latin America, Asia Pacific, EEMEA (Eastern Europe, Middle East & Africa), Europe, and North America. This change aims to better reflect a focus on high-growth developing markets, flatten the organizational structure, and improve decision-making and efficiencies. The filing also provides clarity on how the company will report segment operating income going forward, including a change to include all U.S. pension plan expenses in the North America region's segment operating income. Furthermore, it reiterates and defines key non-GAAP financial measures such as Organic Net Revenue, Adjusted Operating Income, and Operating EPS, which are used to provide investors with a more transparent view of the company's underlying operational performance and trends, excluding certain costs related to the spin-off, restructuring, and integration programs.
Key Highlights
- 1Mondelēz International implemented a significant reorganization of its business and reporting structure, effective January 1, 2013, following the Kraft Foods Group spin-off.
- 2The company has transitioned to a new operating structure comprising five global segments: Latin America, Asia Pacific, EEMEA, Europe, and North America.
- 3This restructuring aims to emphasize high-growth developing markets, streamline operations, and enhance decision-making and efficiency.
- 4Segment operating income reporting has been updated to include all U.S. pension plan expenses within the North America region.
- 5The filing reaffirms and defines key non-GAAP financial measures including Organic Net Revenue, Adjusted Operating Income, and Operating EPS.
- 6These non-GAAP measures are provided to offer investors insights into underlying operational performance, excluding specific costs related to the spin-off, restructuring, and integration.
- 7Financial Schedules detailing net revenue and segment operating income under both new and former structures, as well as non-GAAP measures for prior periods, are provided as Exhibit 99.1.