8-KRegulation FDExhibits & Filings

Mondelez International, Inc. 8-K Report, Regulation FD Disclosure (Jan 7, 2021)

Filed January 7, 2021For Securities:MDLZ

Summary

This 8-K filing from Mondelez International (MDLZ), filed on January 7, 2021, primarily serves to disclose the retrospective adjustment of its non-GAAP financial results. The adjustments are a consequence of the company's sales of Keurig Dr Pepper (KDP) ordinary shares in August and September 2020, which reduced its equity interest in KDP by 1.9%. This reduction is being treated as a divestiture in their non-GAAP reporting. Investors should note that these changes affect the company's historical non-GAAP financial results, specifically Adjusted Earnings Per Share (Adjusted EPS), for periods including all quarters of 2020, 2019, and 2018, as well as fiscal years 2019 and 2018. The company is recasting these figures to exclude the equity method investment net earnings related to the divested portion of its KDP stake. It is crucial to understand that these adjustments are confined to non-GAAP measures and do not alter the previously reported U.S. GAAP financial results, nor do they impact other non-GAAP metrics like Organic Net Revenue or Adjusted Operating Income.

Key Highlights

  • 1Mondelez International is retrospectively adjusting its historical non-GAAP financial results due to the partial sale of its equity interest in Keurig Dr Pepper (KDP).
  • 2The company's ownership in KDP decreased by 1.9% (from 13.1% to 11.2%) following share sales in August and September 2020.
  • 3This reduction in KDP ownership is being treated as a divestiture for non-GAAP reporting purposes.
  • 4The primary impact is on historical Adjusted Earnings Per Share (Adjusted EPS) for periods including all quarters of 2020, 2019, and 2018, as well as fiscal years 2019 and 2018.
  • 5The adjustments involve removing the equity method investment net earnings related to the divested KDP shares from non-GAAP figures.
  • 6Crucially, these changes only affect non-GAAP financial measures and do not alter the previously reported U.S. GAAP financial results.
  • 7Other non-GAAP measures such as Organic Net Revenue, Adjusted Gross Profit, and Adjusted Operating Income remain unaffected by these adjustments.

Frequently Asked Questions

This 8-K filing is to inform investors that Mondelez International is retroactively adjusting its historical non-GAAP financial results. This is due to the company's sales of Keurig Dr Pepper (KDP) shares, which reduced its equity stake and is being treated as a divestiture for non-GAAP reporting.

The primary non-GAAP metric affected is Adjusted Earnings Per Share (Adjusted EPS) for historical periods. Specifically, the company is recasting figures for all quarters of 2020, 2019, and 2018, as well as fiscal years 2019 and 2018, to exclude equity method investment net earnings from the divested KDP shares.

No, these adjustments are solely for non-GAAP financial reporting. The company explicitly states that its U.S. GAAP results will not change from what was previously reported.

No, the filing clarifies that these changes do not affect other non-GAAP financial results such as Organic Net Revenue, Adjusted Gross Profit, or Adjusted Operating Income for any period.