Summary
Mondelēz International, Inc. (MDLZ) filed an 8-K on July 24, 2017, to provide supplemental financial information concerning the impact of two recent business divestitures on its non-GAAP financial measures. The company completed the sale of several manufacturing facilities and local confectionery brands in France on April 28, 2017. Subsequently, on July 4, 2017, Mondelēz completed the sale of most of its grocery business in Australia and New Zealand to Bega Cheese Limited. These divestitures, while not affecting U.S. GAAP reported results, will lead to the removal of the divested operations' results from the company's non-GAAP financial reporting going forward, including historical periods presented for comparative purposes.
Key Highlights
- 1Mondelēz International is providing updated non-GAAP financial information due to recent business divestitures.
- 2Two key divestitures are highlighted: French manufacturing facilities/brands (April 28, 2017) and Australian/New Zealand grocery business (July 4, 2017).
- 3U.S. GAAP financial results will continue to include divested operations up to their respective sale dates.
- 4Non-GAAP financial measures (Organic Net Revenue, Adjusted Operating Income, Adjusted EPS, etc.) will exclude divested operations' results from future and historical presentations.
- 5The company aims to enhance comparability and transparency of its underlying business performance through these adjustments.
- 6Exhibit 99.1 provides detailed reconciliations of non-GAAP financial measures before and after these divestiture adjustments for various historical periods.
- 7Non-GAAP definitions are detailed, including adjustments for acquisitions, divestitures, restructuring, currency, and other items affecting comparability.