8-KRegulation FDExhibits & Filings

Mondelez International, Inc. 8-K Report, Regulation FD Disclosure (Jul 24, 2017)

Filed July 24, 2017For Securities:MDLZ

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.

Frequently Asked Questions

Mondelēz is filing this 8-K to disclose the impact of two recent business divestitures on its non-GAAP financial measures. This filing provides supplemental information to help investors understand how these transactions will affect future and historical non-GAAP reporting, aiming for greater comparability.

The divestitures will not alter Mondelēz's U.S. GAAP financial results. However, the company's non-GAAP financial measures, such as Organic Net Revenue, Adjusted Operating Income, and Adjusted EPS, will be adjusted to exclude the financial results of the divested businesses for all periods presented, including historical ones, to provide a clearer view of ongoing operations.

The divestitures include the sale of several manufacturing facilities and local confectionery brands in France (completed April 28, 2017) and the sale of most of the grocery business in Australia and New Zealand to Bega Cheese Limited (completed July 4, 2017).

Detailed financial schedules, including reconciliations of non-GAAP financial measures before and after the divestiture adjustments, are provided in Exhibit 99.1 to this Form 8-K. This exhibit covers periods from the first quarter of 2017 back to 2014.