8-KRegulation FDExhibits & Filings

Mondelez International, Inc. 8-K Report, Regulation FD Disclosure (Jan 11, 2022)

Filed January 11, 2022For Securities:MDLZ

Summary

Mondelēz International, Inc. (MDLZ) filed an 8-K on January 11, 2022, to provide supplemental non-GAAP financial information. This filing details the retrospective impact of two significant events: the sale of Keurig Dr Pepper Inc. (KDP) shares on August 2, 2021, and the divestiture of its Australian packaged seafood business, MaxFoods, on November 1, 2021. The company is recasting its historical non-GAAP financial results, specifically Adjusted EPS, to exclude the impact of these transactions. This adjustment is intended to offer investors a clearer view of the underlying operational trends and facilitate more meaningful comparisons of historical performance. The recasting of non-GAAP results, particularly for Adjusted EPS, will commence from the fourth quarter of 2021 onwards for the KDP share sale due to KDP's one-quarter lag reporting. The MaxFoods divestiture's impact will be reflected for the second and third quarters of 2021. While GAAP results remain unchanged, these non-GAAP adjustments aim to enhance transparency and comparability of Mondelēz's ongoing business performance.

Key Highlights

  • 1Mondelēz International is providing updated non-GAAP financial information due to the sale of KDP shares and the divestiture of MaxFoods.
  • 2The company is recasting historical non-GAAP financial results, specifically Adjusted EPS, to exclude the impact of these transactions.
  • 3The sale of KDP shares (a partial divestiture of an equity method investment) will affect non-GAAP results from Q4 2021 onwards.
  • 4The sale of MaxFoods (an Australian packaged seafood business) impacts non-GAAP results for Q2 and Q3 2021.
  • 5These adjustments are intended to improve comparability of historical operating results and highlight underlying business trends.
  • 6U.S. GAAP financial results and reporting remain unchanged by these adjustments.
  • 7Detailed recast financial schedules and additional information on non-GAAP measures are available in Exhibits 99.1 and 99.2.

Frequently Asked Questions

Mondelēz is recasting its historical non-GAAP financial results, particularly Adjusted EPS, to reflect the retrospective impact of the sale of its Keurig Dr Pepper (KDP) shares and the divestiture of its MaxFoods business. This is done to provide investors with a clearer picture of the company's underlying operational performance and trends by removing the effects of these specific transactions, thereby enhancing comparability across historical periods.

The partial sale of KDP shares will be treated as a divestiture in Mondelēz's non-GAAP reporting. Due to KDP's one-quarter lag in reporting its results, the impact of this sale will be reflected in Mondelēz's non-GAAP financial results, including Adjusted EPS, starting from the fourth quarter ended December 31, 2021. The equity method investment net earnings related to the divested portion will be excluded from historical non-GAAP periods presented.

The sale of MaxFoods, an Australian packaged seafood business, occurred on November 1, 2021. Consistent with Mondelēz's non-GAAP definitions, the results of this operation will be removed from its non-GAAP financial results for Adjusted Gross Profit, Adjusted Operating Income, and Adjusted EPS for the second and third quarters of 2021 only, as these were the only periods impacted by this divestiture.

No, these changes specifically pertain to Mondelēz's non-GAAP financial measures. The company's U.S. GAAP (Generally Accepted Accounting Principles) financial results and reporting, including historical equity method investment earnings and results of divested operations up to their closing dates, will remain as previously reported and are not affected by these recasts.