What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-07-27 compared with 2021-04-28 · 303 added, 163 removed, 823 unchanged (36% of the section changed)

6 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

Net revenues $ 6,642 $ 5,911 $ 13,880 $ 12,618

4 unchanged sentences

Gain on acquisition — — ( 9 ) —

Amortization of intangibles 38 43

Amortization of intangible assets 32 50 70 93

Operating income 872 713 2,155 1,569

3 unchanged sentences

Income tax provision ( 398 ) ( 341 ) ( 610 ) ( 489 )

(Loss)/gain on equity method investment transactions ( 7 ) 71

Gain on equity method investment transactions 502 121 495 192

Equity method investment net earnings 107 106 185 227

1 unchanged sentence

Noncontrolling interest earnings ( 1 ) ( 1 ) ( 8 ) ( 8 )

Net earnings attributable to Mondelēz International $ 961 $ 736

Net earnings attributable to

Mondelēz International $ 1,078 $ 544 $ 2,039 $ 1,280

Per share data:

Basic earnings per share attributable to Mondelēz International $ 0.68 $ 0.51

Diluted earnings per share attributable to Mondelēz International $ 0.68 $ 0.51

Basic earnings per share attributable to

Mondelēz International $ 0.77 $ 0.38 $ 1.45 $ 0.89

Diluted earnings per share attributable to

Mondelēz International $ 0.76 $ 0.38 $ 1.44 $ 0.89

See accompanying notes to the condensed consolidated financial statements.

4 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

Net earnings $ 1,079 $ 545 $ 2,047 $ 1,288

5 unchanged sentences

Comprehensive earnings/(losses) 1,255 632 2,158 122

Comprehensive earnings/(losses)

attributable to noncontrolling interests 3 5 1 7

Comprehensive earnings/(losses) attributable to

noncontrolling interests ( 2 ) 2

Comprehensive earnings/(losses) attributable to Mondelēz International

Mondelēz International

$ 1,252 $ 627 $ 2,157 $ 115

5 unchanged sentences

dollars, except share data)

March 31, 2021 December 31, 2020

2021 December 31, 2020

Cash and cash equivalents $ 1,938 $ 3,619

Trade receivables (net of allowances of $ 40 at March 31, 2021

Trade receivables (net of allowances of $ 41 at June 30, 2021

and $ 42 at December 31, 2020)

Other receivables (net of allowances of $ 41 at March 31, 2021

Other receivables (net of allowances of $ 53 at June 30, 2021

and $ 42 at December 31, 2020)

27 unchanged sentences

Common Stock, no par value ( 5,000,000,000 shares authorized and

1,996,537,778 shares issued at March 31, 2021 and December 31, 2020)

1,996,537,778 shares issued at June 30, 2021 and December 31, 2020)

Additional paid-in capital 32,042 32,070

1 unchanged sentence

Accumulated other comprehensive losses ( 10,572 ) ( 10,690 )

Treasury stock, at cost ( 591,880,718 shares at March 31, 2021 and

Treasury stock, at cost ( 597,038,419 shares at June 30, 2021 and

577,363,557 shares at December 31, 2020)

18 unchanged sentences

Interest Total

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

Balances at April 1, 2021 $ — $ 32,009 $ 28,903 $ ( 10,746 ) $ ( 23,091 ) $ 74 $ 27,149

Comprehensive earnings/(losses):

Net earnings — — 1,078 — — 1 1,079

Other comprehensive earnings/(losses),

net of income taxes

— — — 174 — 2 176

Exercise of stock options and issuance of

other stock awards

— 33 ( 3 ) — 77 — 107

Common Stock repurchased — — — — ( 451 ) — ( 451 )

Cash dividends declared ($ 0.315 per share)

— — ( 444 ) — — — ( 444 )

Dividends paid on noncontrolling interest

and other activities

— — 4 — — — 4

Balances at June 30, 2021 $ — $ 32,042 $ 29,538 $ ( 10,572 ) $ ( 23,465 ) $ 77 $ 27,620

Six Months Ended June 30, 2021

Balances at January 1, 2021 $ — $ 32,070 $ 28,402 $ ( 10,690 ) $ ( 22,204 ) $ 76 $ 27,654

13 unchanged sentences

— — 4 — — — 4

Balances at March 31, 2021 $ — $ 32,009 $ 28,903 $ ( 10,746 ) $ ( 23,091 ) $ 74 $ 27,149

Three Months Ended March 31, 2020

Balances at June 30, 2021 $ — $ 32,042 $ 29,538 $ ( 10,572 ) $ ( 23,465 ) $ 77 $ 27,620

Three Months Ended June 30, 2020

Balances at April 1, 2020 $ — $ 31,990 $ 26,906 $ ( 11,502 ) $ ( 21,652 ) $ 78 $ 25,820

Comprehensive earnings/(losses):

Net earnings — — 544 — — 1 545

Other comprehensive earnings/(losses),

net of income taxes

— — — 83 — 4 87

Exercise of stock options and issuance of

other stock awards

— 32 ( 3 ) — 27 — 56

Cash dividends declared ($ 0.285 per share)

— — ( 409 ) — — — ( 409 )

Dividends paid on noncontrolling interest

and other activities

— — 2 — — ( 4 ) ( 2 )

Balances at June 30, 2020 $ — $ 32,022 $ 27,040 $ ( 11,419 ) $ ( 21,625 ) $ 79 $ 26,097

Six Months Ended June 30, 2020

Balances at January 1, 2020 $ — $ 32,019 $ 26,615 $ ( 10,254 ) $ ( 21,139 ) $ 76 $ 27,317

13 unchanged sentences

— — 3 — — ( 4 ) ( 1 )

Balances at March 31, 2020 $ — $ 31,990 $ 26,906 $ ( 11,502 ) $ ( 21,652 ) $ 78 $ 25,820

Balances at June 30, 2020 $ — $ 32,022 $ 27,040 $ ( 11,419 ) $ ( 21,625 ) $ 79 $ 26,097

See accompanying notes to the condensed consolidated financial statements.

3 unchanged sentences

(in millions of U.S.

For the Three Months Ended

For the Six Months Ended

CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES

7 unchanged sentences

Gain on acquisition ( 9 ) —

Loss/(gain) on equity method investment transactions 7 ( 71 )

Gain on equity method investment transactions ( 495 ) ( 192 )

Equity method investment net earnings ( 185 ) ( 227 )

23 unchanged sentences

Dividends paid ( 896 ) ( 819 )

Net cash (used in)/provided by financing activities ( 1,781 ) 455

Other 127 123

Net cash used in financing activities ( 3,228 ) ( 181 )

Effect of exchange rate changes on cash, cash equivalents and

33 unchanged sentences

dollars using the exchange rate as of the balance sheet date, with remeasurement and other transaction gains and losses recorded in net earnings.

As of March 31, 2021, our Argentinean operations had $ 5 million of Argentinean peso denominated net monetary assets.

Our Argentinean operations contributed $ 89 million, or 1.2 % of consolidated net revenues in the three months ended March 31, 2021.

Within selling, general and administrative expenses, we recorded a remeasurement loss of $ 5 million during the three months ended March 31, 2021 as well as a remeasurement loss of $ 2 million during the three months ended March 31, 2020 related to the revaluation of the Argentinean peso denominated net monetary position over these periods.

As of June 30, 2021, our Argentinean operations had less than $ 1 million of Argentinean peso denominated net monetary assets.

Our Argentinean operations contributed $ 96 million, or 1.4 % of consolidated net revenues in the three months and $ 185 million, or 1.3 % of consolidated net revenues in the six months ended June 30, 2021.

Within selling, general and administrative expenses, we recorded a remeasurement loss of $ 3 million during the three months and $ 8 million during the six months ended June 30, 2021 as well as a remeasurement loss of $ 3 million during the three months and $ 5 million during the six months ended June 30, 2020 related to the revaluation of the Argentinean peso denominated net monetary position over these periods.

Following the separation of the United Kingdom from the European Union ("Brexit") in 2020, a new trade arrangement was reached between the U.K.

1 unchanged sentence

The main trade provisions include the continuation of no tariffs or quotas on trade between the U.K.

subject to prescribed trade terms.

We also need to meet product and labeling standards for both the U.K.

subject to prescribed trade terms, including but not limited to meeting product and labeling standards for both the U.K.

Cross-border trade between the U.K.

is now subject to new customs regulations, documentation and reviews.

is also subject to new customs regulations, documentation and reviews.

To comply with the new requirements, we increased resources in customer service and logistics, in our factories, and on our customs support teams.

1 unchanged sentence

We continue to closely monitor and manage our inventory levels of imported raw materials, packaging and finished goods in the U.K.

We have made investments in resources, systems and processes to meet the new

ongoing requirements and we have not experienced material disruptions from the transition in 2021 to date.

If the U.K.’s separation from, or new trade arrangements with, the E.U.

negatively impact the U.K.

economy or result in disagreements on trade terms, delays affecting our supply chain or distribution, or disruptions

to sales or collections, the impact to our results of operations, financial condition and cash flows could be material.

In the three months ended March 31, 2021, we generated 9.9 % of our consolidated net revenues in the U.K.

economy or result in disagreements on trade terms, delays affecting our supply chain or distribution, or disruptions to sales or collections, the impact to our results of operations, financial condition and cash flows could be material.

In the six months ended June 30, 2021, we generated 9.1 % of our consolidated net revenues in the U.K.

Other Countries.

5 unchanged sentences

Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less.

We also have restricted cash that is recorded within other current assets of $ 31 million as of March 31, 2021 and $ 31 million as of December 31, 2020.

Total cash, cash equivalents and restricted cash was $ 2,059 million as of March 31, 2021 and $ 3,650 million as of December 31, 2020.

We also have restricted cash that is recorded within other current assets of $ 31 million as of June 30, 2021 and $ 31 million as of December 31, 2020.

Total cash, cash equivalents and restricted cash was $ 1,969 million as of June 30, 2021 and $ 3,650 million as of December 31, 2020.

Allowances for Credit Losses:

9 unchanged sentences

Currency 3 ( 1 ) —

Balance at March 31, 2021 $ ( 40 ) $ ( 41 ) $ ( 11 )

Balance at June 30, 2021 $ ( 41 ) $ ( 53 ) $ ( 12 )

Transfers of Financial Assets:

4 unchanged sentences

We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the banks.

The outstanding principal amount of receivables under these arrangements amounted to $ 905 million as of March 31, 2021 and $ 760 million as of December 31, 2020.

The outstanding principal amount of receivables under these arrangements amounted to $ 719 million as of June 30, 2021 and $ 760 million as of December 31, 2020.

The incremental cost of factoring receivables under this arrangement was not material for all periods presented.

1 unchanged sentence

Non-Cash Lease Transactions:

We recorded $ 29 million in operating lease and $ 30 million in finance lease right-of-use assets obtained in exchange for lease obligations during the three months ended March 31, 2021 and $ 89 million in operating lease and $ 25 million in finance lease right-of-use assets obtained in exchange for lease obligations during the three months ended March 31, 2020.

We recorded $ 115 million in operating lease and $ 44 million in finance lease right-of-use assets obtained in exchange for lease obligations during the six months ended June 30, 2021 and $ 122 million in operating lease and $ 68 million in finance lease right-of-use assets obtained in exchange for lease obligations during the six months ended June 30, 2020.

New Accounting Pronouncements:

In December 2019, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that removes certain exceptions in accounting for income taxes, improves consistency in application and

clarifies existing guidance.

This ASU is effective for fiscal years beginning after December 15, 2020, with early adoption permitted.

On January 1, 2021, we adopted this ASU and it did not have a material impact on our consolidated financial statements.

Reclassifications:

Certain amounts previously reported have been reclassified to conform to current-year presentation.

During the second quarter of 2020, in connection with the JDE Peet's (as defined below) transaction (refer to Note 6, Equity Method Investments ), we changed our accounting principle to reflect our share of Jacobs Douwe Egberts ("JDE") historical results and JDE Peet's ongoing results on a one-quarter lag basis while we continue to record dividends when cash is received.

This change was applied retrospectively to all periods presented.

In March 2020 and subsequently in January 2021, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") to provide optional accounting guidance for a limited period of time to ease the potential burden in accounting for reference rate reform.

The guidance provides optional expedients and exceptions to existing accounting requirements for contract modifications and hedge accounting related to transitioning from discontinued reference rates, such as LIBOR, to alternative reference rates, if certain criteria are met.

The new accounting requirements can be applied as of the beginning of the interim period including March 12, 2020, or any date thereafter, through December 31, 2022.

We are currently evaluating our contracts and the optional expedients provided by the new standard.

Acquisitions and Divestitures

On April 1, 2021, we acquired Gourmet Food Holdings Pty Ltd, a leading Australian food company in the premium biscuit and cracker category, for closing cash consideration of approximately $ 458 million Australian dollars ($ 348 million).

We incurred acquisition-related costs of $ 1 million during the three months ended March 31, 2021.

On May 26, 2021, we announced an agreement to acquire Chipita S.A., a leading croissants and baked snacks company in the Central and Eastern European markets.

We expect the acquisition to close in the next nine months after all regulatory and acquisition-related reviews are completed.

We expect purchase consideration of approximately € 1.7 billion ($ 2.0 billion).

During the second quarter of 2021, we incurred $ 6 million of acquisition-related costs.

On April 1, 2021, we acquired Gourmet Food Holdings Pty Ltd ("Gourmet Food"), a leading Australian food company in the premium biscuit and cracker category, for closing cash consideration of approximately $ 450 million Australian dollars ($ 343 million), net of cash received.

We are working to complete the valuation and have recorded a preliminary purchase price allocation of $ 41 million to indefinite-lived intangible assets, $ 80 million to definite-lived intangible assets, $ 176 million to goodwill, $ 19 million to property, plant and equipment, $ 18 million to inventory, $ 25 million to accounts receivable, $ 5 million to operating right of use assets, $ 3 million to other current assets, $ 19 million to current liabilities and $ 5 million to long-term operating lease liabilities.

During the three months ended June 30, 2021, the acquisition added incremental net revenues of $ 27 million and operating income of $ 3 million.

We incurred acquisition-related costs of $ 6 million during the three months and $ 7 million during the six months ended June 30, 2021.

On March 25, 2021, we acquired a majority interest in Lion/Gemstone Topco Ltd ("Grenade"), a performance nutrition leader in the United Kingdom, for closing cash consideration of £ 188 million ($ 261 million), net of cash received.

The acquisition of Grenade expands our position into the premium nutrition market.

We are working to complete the valuation and have recorded a preliminary purchase price allocation of $ 81 million to indefinite-lived intangible assets, $ 24 million to definite-lived intangible assets, $ 180 million to goodwill, $ 1 million to property, plant and equipment, $ 11 million to inventory, $ 18 million to accounts receivable, $ 1 million to other current assets, $ 25 million to current liabilities, $ 20 million to deferred tax liabilities and $ 11 million to long-term other liabilities.

We incurred acquisition-related costs of $ 2 million during the three months ended March 31, 2021.

On January 4, 2021, we acquired the remaining 93 % of equity of Hu Master Holdings, a category leader in premium chocolate in the United States, which provides a strategic complement to our snacking portfolio in North America through growth opportunities in chocolate and other categories in the well-being category.

We are working to complete the valuation and have recorded a preliminary purchase price allocation of $ 82 million to indefinite-lived intangible assets, $ 28 million to definite-lived intangible assets, $ 181 million to goodwill, $ 1 million to property, plant and equipment, $ 11 million to inventory, $ 18 million to accounts receivable, $ 25 million to current liabilities, $ 20 million to deferred tax liabilities and $ 15 million to long-term other liabilities.

During the three months ended June 30, 2021, the acquisition added incremental net revenues of $ 23 million and operating income of $ 2 million.

We incurred $ 2 million of acquisition-related costs during the six months ended June 30, 2021.

On January 4, 2021, we acquired the remaining 93 % of equity of Hu Master Holdings ("Hu"), a category leader in premium chocolate in the United States, which provides a strategic complement to our snacking portfolio in North America through growth opportunities in chocolate and other categories in the well-being category.

The initial cash consideration paid was $ 229 million, net of cash received, and the Company may be required to pay additional cash consideration.

3 unchanged sentences

We are working to complete the valuation and have recorded a preliminary purchase price allocation of $ 123 million to indefinite-lived intangible assets, $ 51 million to definite-lived intangible assets, $ 202 million to goodwill, $ 1 million to property, plant and equipment, $ 2 million to inventory, $ 4 million to accounts receivable, $ 5 million to current liabilities and $ 132 million to long-term other liabilities.

During the three months ended March 31, 2021, the acquisition added incremental net revenues of $ 8 million and an operating loss of $ 6 million.

We incurred acquisition-related costs of $ 4 million during the three months ended March 31, 2021.

The acquisition added incremental net revenues of $ 8 million in the three months and $ 16 million in the six months ended June 30, 2021, and an operating loss of $ 7 million in the three months and $ 13 million in the six months ended June 30, 2021.

We incurred acquisition-related costs of $ 5 million during the three months and $ 9 million during the six months ended June 30, 2021.

On April 1, 2020, we acquired a majority interest in Give & Go, a North American leader in fully-finished sweet baked goods and owner of the famous two-bite ® brand of brownies and the Create-A-Treat ® brand, known for cookie and gingerbread house decorating kits.

1 unchanged sentence

The purchase consideration for Give & Go totaled $ 1,136 million, net of cash received.

We have recorded a preliminary purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as follows:

We have recorded a purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as follows:

(in millions)

20 unchanged sentences

Significant assumptions used in assessing the fair values of intangible assets include discounted future cash flows, customer attrition rates and discount rates.

The acquisition added incremental net revenues of $ 106 million and operating income of $ 6 million in the three months ended March 31, 2021.

During the first quarter of 2020, we incurred $ 5 million of acquisition-related costs.

Through the one-year anniversary of the acquisition, Give & Go added incremental net revenues of $ 106 million and operating income of $ 6 million in 2021.

We incurred $ 10 million of acquisition-related costs during the three months and $ 15 million during the six months ended June 30, 2020.

Inventories consisted of the following:

As of March 31, 2021 As of December 31, 2020

As of June 30,

2021 As of December 31, 2020

(in millions)

5 unchanged sentences

Property, plant and equipment consisted of the following:

As of March 31, 2021 As of December 31, 2020

As of June 30,

2021 As of December 31, 2020

(in millions)

6 unchanged sentences

Property, plant and equipment, net $ 8,857 $ 9,026

For the three months ended March 31, 2021, capital expenditures of $ 216 million excluded $ 230 million of accrued capital expenditures remaining unpaid at March 31, 2021 and included payment for a portion of the $ 275 million of capital expenditures that were accrued and unpaid at December 31, 2020.

For the three months ended March 31, 2020, capital expenditures of $ 214 million excluded $ 259 million of accrued capital expenditures remaining unpaid at March 31, 2020 and included payment for a portion of the $ 334 million of capital expenditures that were accrued and unpaid at December 31, 2019.

For the six months ended June 30, 2021, capital expenditures of $ 410 million excluded $ 236 million of accrued capital expenditures remaining unpaid at June 30, 2021 and included payment for $ 275 million of capital expenditures that were accrued and unpaid at December 31, 2020.

For the six months ended June 30, 2020, capital expenditures of $ 445 million excluded $ 195 million of accrued capital expenditures remaining unpaid at June 30, 2020 and included payment for $ 334 million of capital expenditures that were accrued and unpaid at December 31, 2019.

In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) and losses/(gains) on disposal in the condensed consolidated statements of earnings within asset impairment and exit costs and within the segment results as follows (refer to Note 7, Restructuring Program ).

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

1 unchanged sentence

AMEA — 5 ( 16 ) 4

Europe 3 1 4 2

North America 62 1 117 2

2 unchanged sentences

Goodwill by segment was:

As of March 31, 2021 As of December 31, 2020

As of June 30,

2021 As of December 31, 2020

(in millions)

5 unchanged sentences

Intangible assets consisted of the following:

As of March 31, 2021 As of December 31, 2020

As of June 30,

2021 As of December 31, 2020

(in millions)

7 unchanged sentences

Definite-life intangible assets consist primarily of brands, customer-related intangibles, process technology, licenses and non-compete agreements.

Amortization expense for intangible assets was $ 38 million for the three months ended March 31, 2021 and $ 43 million for the three months ended March 31, 2020.

For the next five years, we currently estimate annual amortization expense of approximately $ 130 million in 2021, approximately $ 120 million in 2022-2024 and approximately $ 105 million in 2025 (reflecting March 31, 2021 exchange rates).

Amortization expense for intangible assets was $ 32 million for the three months and $ 70 million for the six months ended June 30, 2021 and $ 50 million for the three months and $ 93 million for the six months ended June 30, 2020.

For the next five years, we currently estimate annual amortization expense of approximately $ 135 million in 2021, approximately $ 130 million in 2022-2024 and approximately $ 105 million in 2025 (reflecting June 30, 2021 exchange rates).

Changes in goodwill and intangible assets consisted of:

5 unchanged sentences

Acquisitions 559 405

Balance at March 31, 2021 $ 21,945 $ 20,461

In connection with our acquisitions of Grenade and the remaining interest in Hu Master Holdings during the first quarter of 2021, we recorded a preliminary purchase price allocation of $ 382 million to goodwill and $ 279 million to intangible assets.

Asset impairments — ( 32 )

Balance at June 30, 2021 $ 22,270 $ 20,674

Changes to goodwill and intangibles were:

• Acquisitions - In connection with our acquisitions of Gourmet Food, Grenade and the remaining interest in Hu during the first six months of 2021, we recorded preliminary purchase price allocations totaling $ 559 million of goodwill and $ 405 million of intangible assets.

See Note 2, Acquisitions and Divestitures , for additional information.

During the first quarters of 2021 and 2020, we evaluated our goodwill and intangible asset impairment risk through an assessment of potential triggering events.

In light of the ongoing COVID-19 global pandemic, we considered qualitative and quantitative information in our assessment over indefinite-life intangible assets.

Based on the financial performance of our goodwill reporting units and intangible assets and review of other significant fair value assumptions, we concluded that no impairment indicators were present that would require a full impairment assessment.

• Asset impairments - As further described below, during the second quarter of 2021, we recorded $ 32 million of intangible asset impairments resulting primarily from lower than expected sales growth for one brand across our North America segment.

Each quarter, we evaluate our goodwill and intangible asset impairment risk through an assessment of potential triggering events.

In light of the ongoing COVID-19 global pandemic, we considered qualitative and quantitative information in our assessment over goodwill and indefinite-life intangible assets.

• During the first six months of 2021 and 2020, we concluded no goodwill impairment indicators were present that would require additional goodwill impairment evaluation and that our goodwill as of June 30, 2021 and June 30, 2020 were fairly stated.

• With the ongoing COVID-19 global pandemic, we continue to monitor intangible asset impairment risk.

During the second quarters of 2021 and 2020, we identified declines in demand for certain of our brands, that prompted additional evaluation of our indefinite-life intangible assets.

We estimated the fair value of the brands using several acceptable valuation methods, including relief of royalty, excess earnings and excess margin models.

Those models required us to make assumptions related to the future sales and earnings growth rates for the brands, as well as royalty rates and discount rates.

We made our best estimate of those assumptions using the information available;

however, given the uncertainty of the global economic environment and the impact of COVID-19, those estimates could be significantly different than future performance.

In certain instances, the estimated fair value of the brand was below the carrying value, which

resulted in impairment charges.

Primarily due to lower than original expected sales growth, during the second quarter of 2021, we recorded a $ 32 million impairment charge in North America related to a small biscuit brand, and during the second quarter of 2020, we recorded $ 90 million of impairment charges related to four gum brands, a small biscuit brand and a small candy brand, with $ 50 million recorded in Europe, $ 36 million in North America and $ 4 million in AMEA.

The impairment charges were calculated as the excess of the carrying value over the estimated fair value of the intangible assets on a global basis and were recorded within asset impairment and exit costs.

We will continue to monitor the potential for asset impairment risk over coming quarters.

In 2020, we recorded $ 144 million of intangible asset impairment charges related to eight brands.

The ongoing impact of the COVID-19 pandemic resulted in greater declines in the sales and earnings for certain brands, particularly our gum brands.

In 2020, we recorded a total of $ 144 million of intangible asset impairment charges related to eight brands.

The ongoing impact of the COVID-19 pandemic resulted in declines in the sales and earnings for certain brands, particularly our gum brands.

During our annual impairment testing as of July 1, 2020, we identified nine brands, including the eight impaired brands, that each had a fair value in excess of book value of 10% or less.

The aggregate book value of the nine brands was $ 738 million as of March 31, 2021.

The aggregate book value of the nine brands was $ 721 million as of June 30, 2021.

We continue to monitor our brand performance, particularly in light of the significant uncertainty due to the COVID-19 pandemic and related impacts to our business.

8 unchanged sentences

"KDP"), Dong Suh Foods Corporation and Dong Suh Oil & Fats Co.

As of March 31, 2021, we owned 22.8 %, 8.3 %, 50.0 % and 49.0 %, respectively, of these companies' outstanding shares.

Our investments accounted for under the equity method of accounting totaled $ 5,916 million as of March 31, 2021 and $ 6,036 million as of December 31, 2020.

We recorded equity earnings and cash dividends of $ 78 million and $ 74 million in the first quarter of 2021 and equity earnings and cash dividends of $ 121 million and $ 165 million in the first quarter of 2020.

Based on the quoted closing prices as of March 31, 2021, the combined fair value of our publicly-traded investments in JDEP and KDP was $ 8.3 billion, and for each investment, its fair value exceeded its carrying value.

Our ownership interests may change over time due to investee stock-based compensation arrangements, share issuances or other equity-related transactions.

As of June 30, 2021, we owned 22.8 %, 6.4 %, 50.0 % and 49.0 %, respectively, of these companies' outstanding shares.

Our investments accounted for under the equity method of accounting totaled $ 5,586 million as of June 30, 2021 and $ 6,036 million as of December 31, 2020.

We recorded equity earnings of $ 107 million and cash dividends of $ 20 million in the second quarter of 2021 and equity earnings of $ 106 million and cash dividends of $ 28 million in the second quarter of 2020.

We recorded equity earnings of $ 185 million and cash dividends of $ 94 million in the first six months of 2021 and equity earnings of $ 227 million and cash dividends of $ 193 million in the first six months of 2020 .

Based on the quoted closing prices as of June 30, 2021, the combined fair value of our publicly-traded investments in JDEP and KDP wa s $ 7.3 billion , and for each investment, its fair value exceeded its carrying value.

Keurig Dr Pepper Transactions:

On June 7, 2021, we participated in a secondary offering of KDP shares and sold approximately 28 million shares, which reduced our ownership interest by 2 % of the total outstanding shares.

We received $ 997 million of proceeds and recorded a pre-tax gain of $ 520 million (or $ 392 million after-tax) during the second quarter of 2021.

As we will continue to have significant influence, we will continue to account for our investment in KDP under the equity method, resulting in recognizing our share of their earnings within our earnings and our share of their dividends within our cash flows.

We will continue to have board representation with one director on the KDP Board of Directors and we retained certain additional governance rights.

On March 4, 2020, we participated in a secondary offering of KDP shares and sold approximately 6.8 million shares, which reduced our ownership interest by 0.5 % of the total outstanding shares.

We received $ 185 million of proceeds and recorded a pre-tax gain of $ 71 million (or $ 54 million after-tax) during the first quarter of 2020.

We hold two director positions on the KDP board as well as additional governance rights.

As we continue to have significant influence, we continue to account for our investment in KDP under the equity method, resulting in recognizing our share of their earnings within our earnings and our share of their dividends within our cash flows.

JDE Peet’s Transaction:

6 unchanged sentences

The ordinary shares were listed and first traded on May 29, 2020, and payment for, and delivery of, the ordinary shares sold in the offering (excluding ordinary shares subject to the over-allotment option) took place on June 2, 2020 (“Settlement”).

Prior to Settlement, we exchanged our 26.4 % ownership interest in JDE for a 26.5 % equity interest in JDE Peet’s.

Prior to Settlement, we exchanged our 26.4 % ownership interest in Jacobs Douwe Egberts ("JDE") for a 26.5 % equity interest in JDE Peet’s.

We did not invest new capital in connection with the transaction and the exchange was accounted for as a change in interest transaction.

2 unchanged sentences

Following Settlement and the exercise of the over-allotment option, we held a 22.9 % equity interest in JDE Peet’s.

During the second quarter of 2020, we recorded a preliminary gain of $ 121 million, net of $ 33 million released from accumulated other comprehensive losses, and $ 48 million of transaction costs.

As was the case in our ownership interest in JDE, we have significant influence with respect to JDE Peet’s, and we will continue to account for our investment in JDE Peet’s under the equity method, resulting in recognizing our share of JDE Peet’s earnings within our earnings and our share of JDE Peet’s dividends within our cash flows.

In the second quarter of 2020, in connection with this transaction, we changed our accounting principle to reflect our share of JDE’s historical and JDE Peet’s ongoing earnings on a one-quarter lag basis, although we continue to record dividends when cash is received.

We determined a lag was preferable as it enables us to continue to report our quarterly and annual results on a timely basis, while recording our share of JDE Peet’s ongoing results after JDE

Peet’s has publicly reported its results.

We determined a lag was preferable as it enables us to continue to report our quarterly and annual results on a timely basis, while recording our share of JDE Peet’s ongoing results after JDE Peet’s has publicly reported its results.

This change in accounting principle was applied retrospectively to all periods.

The following tables show the primary line items on the condensed consolidated statements of earnings and comprehensive earnings and the condensed consolidated balance sheet that changed as a result of the lag.

The condensed consolidated statements of cash flow and equity were also updated to reflect these changes.

For the Three Months Ended

March 31, 2020

As Reported As Recast

(in millions, except per share data)

Statements of Earnings

Equity method investment net earnings $ 138 $ 121

Net earnings 760 743

Net earnings attributable to

Mondelēz International 753 736

Earnings per share attributable to

Mondelēz International:

Basic EPS $ 0.53 $ 0.51

Diluted EPS $ 0.52 $ 0.51

Statements of Other Comprehensive Earnings

Currency translation adjustment $ ( 1,511 ) $ ( 1,371 )

Pension and other benefit plans 79 60

Derivative cash flow hedges 60 58

Total other comprehensive earnings/(losses) ( 1,372 ) ( 1,253 )

Comprehensive earnings/(losses) attributable to

Mondelēz International ( 614 ) ( 512 )

Restructuring Program

9 unchanged sentences

Restructuring Costs :

The Simplify to Grow Program liability activity for the three months ended March 31, 2021 was:

The Simplify to Grow Program liability activity for the six months ended June 30, 2021 was:

Write-downs Total

5 unchanged sentences

Currency ( 5 ) — ( 5 )

Liability balance, March 31, 2021 $ 308 $ — $ 308

• We recorded restructuring charges of $ 88 million in the first quarter of 2021 and $ 15 million in the first quarter of 2020 within asset impairment and exit costs and benefit plan non-service income.

• We spent $ 34 million in the first quarter of 2021 and $ 37 million in the first quarter of 2020 in cash severance and related costs.

• We recognized non-cash asset write-downs (including accelerated depreciation and asset impairments) and other adjustments, including any gains on sale of restructuring program assets, which totaled $ 40 million in the first quarter of 2021 and $ 3 million in the first quarter of 2020.

• At March 31, 2021, $ 261 million of our net restructuring liability was recorded within other current liabilities and $ 47 million was recorded within other long-term liabilities.

Liability balance, June 30, 2021 $ 307 $ — $ 307

• We recorded restructuring charges of $ 100 million in the second quarter of 2021 and $ 28 million in the second quarter of 2020 and $ 188 million in the first six months of 2021 and $ 43 million in the first six months of 2020 within asset impairment and exit costs and benefit plan non-service income.

• We spent $ 30 million in the second quarter of 2021 and $ 32 million in the second quarter of 2020 and $ 64 million in the first six months of 2021 and $ 69 million in the first six months of 2020 in cash severance and related costs.

• We also recognized non-cash asset write-downs (including accelerated depreciation and asset impairments).

including any gains on sale of restructuring program assets, non-cash pension settlement losses (refer to Note 10, Benefit Plans ) and other adjustments, which totaled $ 76 million in the second quarter of 2021 and $ 11 million in the second quarter of 2020 and $ 116 million in the first six months of 2021 and $ 14 million in the first six months of 2020.

• At June 30, 2021, $ 258 million of our net restructuring liability was recorded within other current liabilities and $ 49 million was recorded within other long-term liabilities.

Implementation Costs:

4 unchanged sentences

The costs include incremental expenses related to the closure of facilities, costs to terminate certain contracts and the simplification of our information systems.

Within our continuing results of operations, we recorded implementation costs of $ 34 million in the first quarter of 2021 and $ 43 million in the first quarter of 2020.

Within our continuing results of operations, we recorded implementation costs of $ 33 million in the second quarter of 2021 and $ 52 million in the second quarter of 2020 and $ 67 million in the first six months of 2021 and $ 95 million in the first six months of 2020.

We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses.

Restructuring and Implementation Costs:

During the three months ended March 31, 2021 and March 31, 2020, and since inception of the Simplify to Grow Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes:

During the three and six months ended June 30, 2021 and June 30, 2020, and since inception of the Simplify to Grow Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes:

America AMEA Europe North

1 unchanged sentence

(in millions)

For the Three Months Ended March 31, 2021

For the Three Months Ended June 30, 2021

Restructuring Costs $ — $ 2 $ ( 1 ) $ 92 $ 7 $ 100

1 unchanged sentence

Total $ 4 $ 5 $ 10 $ 109 $ 5 $ 133

For the Three Months Ended March 31, 2020

For the Three Months Ended June 30, 2020

Restructuring Costs $ 14 $ 5 $ 9 $ ( 2 ) $ 2 $ 28

1 unchanged sentence

Total $ 15 $ 8 $ 20 $ 9 $ 28 $ 80

For the Six Months Ended June 30, 2021

Restructuring Costs $ 3 $ ( 19 ) $ 5 $ 193 $ 6 $ 188

Implementation Costs 7 5 21 27 7 67

Total $ 10 $ ( 14 ) $ 26 $ 220 $ 13 $ 255

For the Six Months Ended June 30, 2020

Restructuring Costs $ 18 $ 4 $ 12 $ — $ 9 $ 43

Implementation Costs 8 6 25 21 35 95

Total $ 26 $ 10 $ 37 $ 21 $ 44 $ 138

Total Project (Inception to Date)

5 unchanged sentences

Our short-term borrowings and related weighted-average interest rates consisted of:

As of March 31, 2021 As of December 31, 2020

As of June 30, 2021 As of December 31, 2020

Outstanding Weighted-

5 unchanged sentences

Total short-term borrowings $ 64 $ 29

As of March 31, 2021, commercial paper issued and outstanding had between 6 and 15 days remaining to maturity.

Commercial paper borrowings since year end increased to help finance the debt redemption, share repurchases and dividend payments.

Our uncommitted credit lines and committed credit lines available as of March 31, 2021 and December 31, 2020 include:

As of March 31, 2021 As of December 31, 2020

Our uncommitted credit lines and committed credit lines available as of June 30, 2021 and December 31, 2020 include:

As of June 30, 2021 As of December 31, 2020

Facility Amount Borrowed Amount Facility Amount Borrowed Amount

6 unchanged sentences

(1) We maintain a multi-year senior unsecured revolving credit facility for general corporate purposes, including working capital needs, and to support our commercial paper program.

accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans.

At March 31, 2021, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $ 37.8 billion.

The revolving credit agreement includes a covenant that we maintain a minimum shareholders' equity of at least $ 24.6 billion, excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans.

At June 30, 2021, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $ 38.1 billion.

The revolving credit facility also contains customary representations, covenants and events of default.

10 unchanged sentences

The cash payments related to the redemption were classified as cash outflows from financing activities in the consolidated statement of cash flows.

During the three months ended March 31, 2021, we repaid the following notes or term loans (in millions):

During the six months ended June 30, 2021, we repaid the following notes or term loans (in millions):

Interest Rate Maturity Date Amount USD Equivalent

2.375 % January 2021 € 679 $ 827

During the three months ended March 31, 2021, we issued the following notes (in millions):

During the six months ended June 30, 2021, we issued the following notes (in millions):

Issuance Date Interest Rate Maturity Date Gross Proceeds (1)

5 unchanged sentences

Fair Value of Our Debt:

The fair value of our short-term borrowings at March 31, 2021 and December 31, 2020 reflects current market interest rates and approximates the amounts we have recorded on our consolidated balance sheets.

The fair value of our short-term borrowings at June 30, 2021 and December 31, 2020 reflects current market interest rates and approximates the amounts we have recorded on our consolidated balance sheets.

The fair value of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations.

As of March 31, 2021 As of December 31, 2020

As of June 30, 2021 As of December 31, 2020

(in millions)

4 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

Interest expense, debt $ 90 $ 108 $ 188 $ 218

Loss on debt extinguishment and related expenses 137 —

Loss on debt extinguishment and related

expenses — — 137

Loss related to interest rate swaps — — — 103

1 unchanged sentence

Interest and other expense, net $ 58 $ 85 $ 276 $ 275

Other income includes amounts excluded from hedge effectiveness related to our net investment hedge derivative contracts that totaled $ 20 million in the three months ended March 31, 2021 and $ 33 million in the three months ended March 31, 2020.

Other income includes amounts excluded from hedge effectiveness related to our net investment hedge derivative contracts that totaled $ 19 million and $ 40 million in the three and six months ended June 30, 2021 and $ 31 million and $ 64 million for the three and six months ended June 30, 2020.

Financial Instruments

1 unchanged sentence

Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows:

As of March 31, 2021 As of December 31, 2020

As of June 30, 2021 As of December 31, 2020

Derivatives Liability

25 unchanged sentences

The fair values (asset/(liability)) of our derivative instruments were determined using:

As of March 31, 2021

As of June 30, 2021

Fair Value of Net

41 unchanged sentences

Notional Amount

As of March 31, 2021 As of December 31, 2020

As of June 30,

2021 As of December 31, 2020

(in millions)

14 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

Accumulated (loss)/gain at beginning of period $ ( 159 ) $ ( 155 ) $ ( 161 ) $ ( 213 )

Transfer of realized losses/(gains) in fair value

to earnings 5 81

Transfer of realized losses/(gains) in fair value to earnings 4 7 9 88

Unrealized (loss)/gain in fair value 13 ( 6 ) 10 ( 29 )

2 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

Interest rate contracts $ ( 4 ) $ ( 7 ) $ ( 9 ) $ ( 88 )

Within interest and other expense, net, due to changes in forecasted debt, we recognized losses related to forward-starting interest rate swaps of $ 79 million ($ 103 million pre-tax) in the three months ended March 31, 2020.

After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were:

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

6 unchanged sentences

Cash Flow Hedge Coverage:

As of March 31, 2021, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 3 years and 6 months.

As of June 30, 2021, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 3 years and 3 months.

Hedges of Net Investments in International Operations:

2 unchanged sentences

operations against movements in exchange rates.

The aggregate notional value as of March 31, 2021 was $ 4.7 billion.

The aggregate notional value as of June 30, 2021 was $ 4.6 billion.

The impacts of the net investment hedge derivative contracts on other comprehensive earnings and net earnings were as follows:

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

After-tax gain/(loss) on NIH contracts (1)

$ ( 36 ) $ ( 115 ) $ 23 $ 217

(1) Amounts recorded for unsettled and settled NIH derivative contracts are recorded in the cumulative translation adjustment within other comprehensive earnings.

1 unchanged sentence

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

Amounts excluded from the assessment of hedge effectiveness (1)

Amounts excluded from the assessment of

hedge effectiveness (1)

$ 19 $ 31 $ 40 $ 64

(1) We elected to record changes in the fair value of amounts excluded from the assessment of effectiveness in net earnings within interest and other expense, net.

2 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

6 unchanged sentences

For the Three Months Ended

March 31, Location of Gain/(Loss) Recognized in Earnings

June 30, For the Six Months Ended

June 30, Location of Gain/(Loss) Recognized in Earnings

2021 2020 2021 2020

(in millions)

12 unchanged sentences

Components of Net Periodic Pension Cost:

Net periodic pension cost consisted of the following:

Net periodic pension cost/(benefit) consisted of the following:

Plans Non-U.S.

For the Three Months Ended

March 31, For the Three Months Ended

June 30, For the Three Months Ended

2021 2020 2021 2020

5 unchanged sentences

Net loss from experience differences 5 4 33 28

Prior service cost/(benefit) — — ( 2 ) ( 2 )

Prior service benefit — — ( 1 ) ( 1 )

Curtailment credit (1)

Settlement losses and other expenses (2)

Net periodic pension cost $ 1 $ 3 $ ( 11 ) $ ( 3 )

Net periodic pension cost/(benefit) $ 5 $ 7 $ ( 24 ) $ ( 4 )

Plans Non-U.S.

For the Six Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

Service cost $ 4 $ 3 $ 70 $ 59

Interest cost 20 26 59 73

Expected return on plan assets ( 36 ) ( 39 ) ( 213 ) ( 195 )

Amortization:

Net loss from experience differences 9 8 66 57

Prior service benefit — — ( 3 ) ( 3 )

Curtailment credit (1)

Settlement losses and other expenses (2)

Net periodic pension cost/(benefit) $ 6 $ 10 $ ( 35 ) $ ( 7 )

(1) During the second quarter of 2021, we made a decision to freeze our Defined Benefit Pension Scheme in the United Kingdom.

As a result, we recognized a curtailment credit of $( 14 million) for the three and six months ended June 30, 2021 recorded within benefit plan non-service income.

We also incurred incentive payment charges and other expenses related to this decision of $ 44 million for the three months ended June 30, 2021 and $ 45 million for the six months ended June 30, 2021 included in operating income.

(2) In connection with our Simplify to Grow Program, settlement losses and other expenses were $ 1 million for the three and six months ended June 30, 2021 and $ 4 million for the three and six months ended June 30, 2020.

These losses were recorded within benefit plan non-service income.

Employer Contributions:

During the three months ended March 31, 2021, we contributed $ 3 million to our U.S.

During the six months ended June 30, 2021, we contributed $ 4 million to our U.S.

pension plans and $ 117 million to our non-U.S.

2 unchanged sentences

Discretionary contributions are made to the extent that they are tax deductible and do not generate an excise tax liability.

As of March 31, 2021, over the remainder of 2021, we plan to make further contributions of approximately $ 5 million to our U.S.

As of June 30, 2021, over the remainder of 2021, we plan to make further contributions of approximately $ 4 million to our U.S.

plans and approximately $ 111 million to our non-U.S.

3 unchanged sentences

We began making monthly payments during the third quarter of 2019.

I n connection with the discounted long-term liability, we recorded accreted interest of $ 3 million in the three months ended March 31, 2021 and in the three months ended March 31, 2020 within interest and other expense, net.

As of March 31, 2021, the remaining discounted withdrawal liability was $ 372 million, with $ 14 million recorded in other current liabilities and $ 358 million recorded in long-term other liabilities.

In connection with the discounted long-term liability, we recorded accreted interest of $ 3 million and $ 6 million in the three and six months ended June 30, 2021 and $ 3 million and $ 6 million in the three and six months ended June 30, 2020 within interest and other expense, net.

As of June 30, 2021, the remaining discounted withdrawal liability was $ 368 million, with $ 14 million recorded in other current liabilities and $ 354 million recorded in long-term other liabilities.

Postretirement Benefit Plans

Net periodic postretirement health care benefit consisted of the following:

Net periodic postretirement health care cost/(benefit) consisted of the following:

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

4 unchanged sentences

Prior service credit — ( 7 ) — ( 15 )

Net periodic postretirement health care benefit $ 4 $ ( 1 )

Net periodic postretirement health care cost/(benefit) $ 3 $ ( 1 ) $ 7 $ ( 2 )

Postemployment Benefit Plans

1 unchanged sentence

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

16 unchanged sentences

Options canceled ( 347,906 ) 47.57

Balance at March 31, 2021 28,255,388 41.52 6 years $ 482 million

(1) Cash received from options exercised was $ 67 million in the three months ended March 31, 2021.

The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $ 7 million in the three months ended March 31, 2021.

Balance at June 30, 2021 25,623,172 41.98 5 years $ 524 million

(1) Cash received from options exercised was $ 73 million in the three months and $ 140 million in the six months ended June 30, 2021.

The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $ 7 million in the three months and $ 14 million in the six months ended June 30, 2021.

Performance Share Units and Other Stock-Based Awards:

13 unchanged sentences

Forfeited ( 198,602 ) 56.66

Balance at March 31, 2021 4,975,163 56.67

Balance at June 30, 2021 4,922,845 56.84

(1) Includes performance share units and deferred stock units.

(2) The actual tax benefit/(expense) realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $ 6 million in the three months ended March 31, 2021.

(2) The actual tax benefit/(expense) realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled less than $ 1 million in the three months and $ 6 million in the six months ended June 30, 2021.

(3) The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components.

7 unchanged sentences

Prior to January 1, 2021, we had repurchased approximately $ 18.0 billion of Common Stock pursuant to this authorization.

During the three months ended March 31, 2021, we repurchased approximately 18.2 million shares of Common Stock at an average cost of $ 55.97 per share, or an aggregate cost of approximately $ 1.0 billion, all of which was paid during the period.

During the six months ended June 30, 2021, we repurchased approximately 25.0 million shares of Common Stock at an average cost of $ 57.89 per share, or an aggregate cost of approximately $ 1.5 billion, all of which was paid during the period.

All share repurchases were funded through available cash and commercial paper issuances.

As of March 31, 2021, we have $ 4.7 billion in remaining share repurchase capacity.

As of June 30, 2021, we have approximately $ 4.3 billion in remaining share repurchase capacity.

Commitments and Contingencies

23 unchanged sentences

Additionally, several class action complaints were filed against Kraft Foods Group and Mondelēz Global in the District Court by investors in wheat futures and options on behalf of themselves and others similarly situated.

The complaints make similar allegations as those made in the CFTC action, and the plaintiffs are seeking class action certification;

monetary damages, interest and unjust enrichment;

The complaints make similar allegations as those made in the CFTC action, and the plaintiffs are seeking monetary damages, interest and unjust enrichment;

costs and fees;

1 unchanged sentence

In June 2015, these suits were consolidated in the District Court.

On January 3, 2020, the District Court granted plantiffs' request to certify a class.

On January 3, 2020, the District Court granted

plantiffs' request to certify a class.

It is not possible to predict the outcome of these matters;

3 unchanged sentences

On January 28, 2021, the European Commission announced it has taken the next procedural step in its investigation and opened formal proceedings.

We are cooperating with the investigation and expect to continue to engage with the European Commission as their investigation proceeds.

We are cooperating with the investigation and expect to continue to engage with the European Commission as its investigation proceeds.

It is not possible to predict how long the investigation will take or the ultimate outcome of this matter.

2 unchanged sentences

As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures.

At March 31, 2021, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

At June 30, 2021, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

We are a party to various tax matter proceedings incidental to our business.

2 unchanged sentences

The following table summarizes the changes in accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International.

Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net losses of $ 34 million in the first three months of 2021 and $ 104 million in the first three months of 2020.

Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net losses of $ 25 million in the second quarter of 2021 and $ 62 million in the second quarter of 2020 and $ 59 million in the first six months of 2021 and $ 166 million in the first six months of 2020.

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

2 unchanged sentences

Currency translation adjustments 165 26 31 ( 1,255 )

Reclassification to earnings related to:

Equity method investment transactions (1)

Tax (expense)/benefit ( 8 ) 26 ( 10 ) ( 64 )

5 unchanged sentences

Net actuarial gain/(loss) arising during period ( 1 ) ( 2 ) ( 2 ) ( 24 )

Tax (expense)/benefit on net actuarial gain/(loss) — ( 1 ) — ( 1 )

Losses/(gains) reclassified into net earnings:

1 unchanged sentence

Settlement losses and other expenses (1)

Curtailment credit (2)

( 14 ) — ( 14 ) —

Tax expense/(benefit) on reclassifications (3)

( 8 ) ( 7 ) ( 17 ) ( 15 )

Currency impact ( 18 ) ( 18 ) 23 41

8 unchanged sentences

Tax expense/(benefit) on reclassifications (3)

( 1 ) ( 1 ) ( 2 ) ( 25 )

Currency impact ( 1 ) ( 1 ) 2 1

8 unchanged sentences

Balance at end of period $ ( 10,572 ) $ ( 11,419 ) $ ( 10,572 ) $ ( 11,419 )

(1) These amounts include equity method investment transactions recorded within gain on equity method investment transactions.

(2) These reclassified losses are included in net periodic benefit costs disclosed in Note 10, Benefit Plans .

1 unchanged sentence

(4) These reclassified gains or losses are recorded within interest and other expense, net.

As of the first quarter of 2021, our estimated annual effective tax rate, which excludes discrete tax impacts, was 25.2 %.

As of the second quarter of 2021, our estimated annual effective tax rate, which excludes discrete tax impacts, was 23.7 %.

This rate reflected the impact of unfavorable foreign provisions under U.S.

1 unchanged sentence

jurisdictions.

Our effective tax rate for the three months ended March 31, 2021 of 19.1 % was favorably impacted by discrete net tax benefits of $ 65 million, primarily driven by a $ 32 million net benefit from the release of liabilities for uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions and a $ 27 million benefit from a U.S.

Our 2021 second quarter effective tax rate of 45.9 % was unusually high due to a $ 128 million tax expense incurred in connection with the KDP share sale that occurred during the second quarter (the related gain is reported separately in our statement of earnings and thus not included in earnings before income taxes).

Excluding this impact, our second quarter effective tax rate was 31.1 %, reflecting a discrete net tax expense of $ 81 million.

The discrete net tax expense primarily consisted of a $ 95 million net tax expense from the increase of our deferred tax liabilities resulting from tax legislation enacted during the second quarter (mainly in the United Kingdom), partially offset by a $ 11 million net benefit from the release of liabilities for uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions.

Our effective tax rate for the six months ended June 30, 2021 of 30.9 % was also unusually high due to the $ 128 million net tax expense incurred in connection with the KDP share sale.

Excluding this impact, our effective tax rate for the six months ended June 30, 2021 was 24.5 %, which was unfavorably impacted by discrete net tax expense of $ 15 million, primarily driven by $ 99 million net tax expense from the increase of our deferred tax liabilities resulting from enacted tax legislation (mainly in the United Kingdom) partially offset by a $ 43 million net benefit from the release of liabilities for uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions and a $ 27 million benefit from a U.S.

amended tax return filed to reflect new guidance from the U.S.

Treasury Department.

As of the first quarter of 2020, our estimated annual effective tax rate, which excluded discrete tax impacts, was 25.2 %.

As of the second quarter of 2020, our estimated annual effective tax rate, which excluded discrete tax impacts, was 27.5 %.

This rate reflected the impact of unfavorable foreign provisions under U.S.

1 unchanged sentence

jurisdictions.

Our effective tax rate for the three months ended March 31, 2020 of 21.2 % was favorably impacted by discrete net tax benefits of $ 28 million, primarily driven by a $ 22 million net benefit from the release of liabilities for uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions.

Our 2020 second quarter effective tax rate of 51.7 % was unusually high due to a $ 261 million tax expense incurred in connection with the JDE Peet's transaction (the related gains are reported separately in our statement of earnings and thus not included in earnings before income taxes).

Excluding this impact, our second quarter effective tax rate was 12.1 % reflecting a discrete net tax benefit of $ 72 million.

The discrete net tax benefit primarily consisted of a $ 70 million net benefit from the release of a valuation allowance in China as we now expect to utilize prior-year carryforward tax benefits to offset future taxable income.

Our effective tax rate for the six months ended June 30, 2020 of 36.0 % was also unusually high due to the $ 261 million net tax expense incurred in connection with the JDE Peet's transaction.

Excluding this impact, our effective tax rate for the six months ended June 30, 2020 was 16.8 %, which was favorably impacted by discrete net tax benefits of $ 100 million, primarily driven by the $ 70 million net benefit from the release of the China valuation allowance and a $ 24 million net benefit from the release of liabilities for uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions.

Earnings per Share

1 unchanged sentence

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions, except per share data)

12 unchanged sentences

We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS.

We excluded antidilutive stock options and performance share units of 3.6 million in the first three months of 2021 and 4.0 million in the first three months of 2020.

We excluded antidilutive stock options and performance share units of 3.4 million in the second quarter of 2021 and 5.6 million in the second quarter of 2020 and 3.6 million in the first six months of 2021 and 4.8 million in the first six months of 2020.

Segment Reporting

14 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2021 2020 2021 2020

(in millions)

8 unchanged sentences

Latin America $ 54 $ ( 6 ) $ 130 $ 72

AMEA 213 171 575 405

Europe 413 297 970 769

3 unchanged sentences

General corporate expenses ( 78 ) ( 111 ) ( 142 ) ( 187 )

Amortization of intangibles ( 38 ) ( 43 )

Amortization of intangible assets ( 32 ) ( 50 ) ( 70 ) ( 93 )

Gain on acquisition — — 9 —

7 unchanged sentences

Net revenues by product category were:

For the Three Months Ended March 31, 2021

For the Three Months Ended June 30, 2021

America AMEA Europe North

7 unchanged sentences

Total net revenues $ 669 $ 1,452 $ 2,474 $ 2,047 $ 6,642

For the Three Months Ended March 31, 2020

For the Three Months Ended June 30, 2020

America AMEA Europe North

7 unchanged sentences

Total net revenues $ 511 $ 1,237 $ 2,138 $ 2,025 $ 5,911

For the Six Months Ended June 30, 2021

America AMEA Europe North

America Total

(in millions)

Biscuits $ 374 $ 1,092 $ 1,645 $ 3,514 $ 6,625

Chocolate 373 1,145 2,695 117 4,330

Gum & Candy 260 409 302 393 1,364

Beverages 176 326 60 — 562

Cheese & Grocery 155 225 619 — 999

Total net revenues $ 1,338 $ 3,197 $ 5,321 $ 4,024 $ 13,880

For the Six Months Ended June 30, 2020

America AMEA Europe North

America Total

(in millions)

Biscuits $ 328 $ 966 $ 1,440 $ 3,402 $ 6,136

Chocolate 313 904 2,364 95 3,676

Gum & Candy 247 338 308 423 1,316

Beverages 192 328 45 — 565

Cheese & Grocery 157 203 565 — 925

Total net revenues $ 1,237 $ 2,739 $ 4,722 $ 3,920 $ 12,618

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements