Summary
Mondelēz International, Inc. filed an 8-K on July 13, 2021, primarily to disclose a change in its methodology for reporting non-GAAP financial measures. The company is now including the initial impacts from *all* enacted tax law changes, rather than just material ones, in the items excluded from its non-GAAP financial measures. This change is intended to provide greater transparency and facilitate comparisons of historical operating results by excluding certain one-time tax-related impacts that do not reflect ongoing operational performance. This adjustment specifically affects how Adjusted Earnings Per Share (Adjusted EPS) is calculated. The company has recast historical non-GAAP financial results for Adjusted EPS to reflect this new definition. It's important to note that this change does not alter the company's U.S. GAAP reported results. The filing also provides recast financial data for the first quarter of 2021, all quarters of 2020 and 2019, and fiscal years 2020 and 2019 to illustrate the impact of this change.
Key Highlights
- 1Mondelēz is refining its non-GAAP financial reporting by expanding the exclusion of tax law impacts.
- 2The company will now exclude initial impacts from all enacted tax law changes from non-GAAP measures, not just material ones.
- 3This change primarily affects the calculation of Adjusted EPS and includes recasting historical data.
- 4U.S. GAAP reported financial results remain unchanged.
- 5The filing provides recast financial information for Adjusted EPS for 2019, 2020, and Q1 2021 to demonstrate the impact of the new methodology.
- 6The stated purpose is to improve comparability and transparency of underlying operational trends.