What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-11-01 compared with 2022-07-26 · 336 added, 329 removed, 782 unchanged (46% of the section changed)

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In March 2022, our two Ukrainian manufacturing facilities in Trostyanets and Vyshhorod were significantly damaged.

In connection with the damage to these plants and impairment of other assets, primarily inventory, other plant, property and equipment, as well as increased allowances on our receivables, during the first quarter of 2022, we recorded $143 million of charges directly incurred as a result of the war in Ukraine, including an accrual for continued compensation for our employees in Ukraine (see Note 1, Basis of Presentation, to the condensed consolidated financial statements, and refer to Items Affecting Comparability of Financial Results for additional information.) We have increased operations and continue to provide resources in other primarily European manufacturing and distribution facilities to seek to continue supplying our Ukraine business's customers and consumers across Europe.

During the second quarter of 2022, the war continued through parts of Ukraine.

Our Trostyanets plant continues to be significantly damaged.

In our Vyshhorod plant, we made and continue to make targeted repairs.

We have increased operations and continue to provide resources in other primarily European manufacturing and distribution facilities to seek to continue supplying our Ukraine business's customers and consumers across Europe.

During the second and third quarters of 2022, the war continued through parts of Ukraine.

We continue to make targeted repairs on both our plants.

We relaunched our systems and implemented additional safety and security measures.

In late June, we decided to partially reopen the Vyshhorod plant and restart limited potato chip production.

During the second quarter of 2022, we reversed approximately $15 million of previously recorded charges as a result of higher than expected collection of trade receivables and inventory recoveries.

In late June, we partially reopened the Vyshhorod plant and restarted limited potato chip production.

During the second and third quarters of 2022, we reversed approximately $15 million and $7 million, respectively, of previously recorded charges primarily as a result of higher than expected collection of trade receivables and inventory recoveries.

As a food company, we continue to work to support the continuity of food supply and provide packaged foods to consumers.

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Prior to the onset of the war, Ukraine generated 0.5% and Russia generated 2.9% of 2021 consolidated net revenues.

The war has not had a material impact on our Russian entities during the first six months of 2022.

We provide more information on risks related to the war in Ukraine in our Financial Outlook and Commodity Trends section, Item 3.

Quantitative and Qualitative Disclosures about Market Risk and under Item 1A, Risk Factors .

During the nine months ended September 30, 2022, Ukraine generated 0.3% and Russia generated 3.6% of consolidated net revenue.

Our Russian business has grown as a result of the recent strengthening of the Russian ruble versus the U.S.

dollar and increased demand for packaged foods.

The war has not had a material impact on our Russian business through the first nine months of 2022.

We provide more information on risks related to the war in Ukraine in our Financial Outlook and Commodity Trends section, Item 3, Quantitative and Qualitative Disclosures about Market Risk and under Item 1A, Risk Factors .

COVID-19 and Inflationary Cost Environment

In the third year of the COVID-19 global pandemic, our main priority remains the safety of our employees as well as continuing to help maintain the global food supply.

During the pandemic, we experienced an overall increase in demand and revenue growth as consumers increased their food purchases for in-home consumption in many markets, while parts of our business were negatively affected by related lockdowns and restrictions.

In late 2021, global supply chain, transportation and labor issues escalated and we experienced significantly higher operating costs, including higher overall raw material, transportation, labor and energy costs that have continued to rise in 2022 as the pandemic continues to affect global markets and operations.

During the first six months of 2022, our net revenues continued to increase with growth of 8.3% and Organic Net Revenue growth of 10.7%, compared to the first six months of 2021.

In the first half of 2022, we continued to see increased demand primarily for our snack category products and revenue growth in both our emerging and developed markets relative to the first half of 2021.

During the first nine months of 2022, our net revenues continued to increase with growth of 8.3% and Organic Net Revenue growth of 11.2%, compared to the first nine months of 2021.

Throughout 2022, we continued to see increased demand primarily for our snack category products and revenue growth in both our emerging and developed markets relative to the first nine months of 2021.

We continued to also experience significantly higher operating costs.

See additional details on our results in our Discussion and Analysis of Historical Results .

During the pandemic, we continued to closely monitor our cash position and cash flows and worked to increase our access to financing.

As of June 30, 2022, our liquidity remains strong.

During the first quarter of 2022, we funded our acquisition of Chipita (see additional information below) and issued $2 billion of long-term debt, refinancing approximately $2 billion of tendered and redeemed debt (refer to Note 8, Debt and Borrowing Arrangements for details) ahead of a 2022 rising interest rate environment.

We generated $2.0 billion of cash from operations, ending the quarter with cash and cash equivalents of $1.9 billion as of June 30, 2022.

We also had $9 billion of unused credit facilities available as of June 30, 2022 as well as ongoing access to additional financing as evidenced by the incremental term loan facility we entered into and announced on July 11, 2022.

During the pandemic and the related inflationary environment, we continued to closely monitor our cash position and cash flows and worked to increase our access to financing.

As of September 30, 2022, our liquidity remains strong.

During the first nine months of 2022, we funded our acquisitions of Chipita and Clif Bar (see additional information below) and also issued $2.5 billion of new long-term debt in order to refinance approximately $2 billion of tendered and redeemed debt (refer to Note 8, Debt and Borrowing Arrangements for details) ahead of the rising interest rate environment.

We generated $2.5 billion of cash from operations during the first nine months of 2022, ending the quarter with cash and cash equivalents of $2.2 billion as of September 30, 2022.

We also had $9 billion of unused credit facilities available as of September 30, 2022 as well as ongoing access to financing markets as evidenced by the incremental term loan facility we entered into and announced on July 11, 2022.

Our JDE Peet's and KDP equity method investments also give us additional financial flexibility.

We will continue to proactively manage our business in response to the evolving global economic environment and related uncertainty and business risks as well as prioritize and support our employees and customers.

We will continue to proactively manage our business in response to the evolving global economic environment and related uncertainty and business risks while also prioritizing and supporting our employees and customers.

We continue to take steps to mitigate impacts to our supply chain, operations, technology and assets.

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Acquisitions and Divestitures

During the second quarter of 2022, we announced the planned acquisitions of Clif Bar & Company ("Clif Bar") and Ricolino.

Refer to Financial Outlook below and Note 2, Acquisitions and Divestitures , for additional details.

In the second quarter, we also announced our intention to divest our developed market gum and global Halls candy businesses.

On January 3, 2022, we closed on our acquisition of Chipita Global S.A.

During the second quarter of 2022, we announced our intention to divest our developed market gum and global Halls candy businesses.

Refer to Financial Outlook below for additional details.

On November 1, 2022, we completed our acquisition of Ricolino, a confectionery business located primarily in Mexico, for a purchase price of approximately $1.3 billion.

On August 1, 2022, we completed our acquisition of Clif Bar, a leading U.S.

maker of nutritious energy bars with organic ingredients.

We paid cash consideration of $2.9 billion, which includes purchase price consideration of $2.6 billion, net of cash received and compensation expense of $0.3 billion related to the buyout of the non-vested ESOP shares.

On January 3, 2022, we completed our acquisition of Chipita Global S.A.

("Chipita"), which is a strategic complement to our existing snacks portfolio and advances our strategy to become the global leader in broader snacking.

We paid cash consideration of €1.2 billion ($1.4 billion), net of cash received, and we assumed and paid down €0.5 billion ($0.4 billion) of Chipita's debt in January for a total purchase price of approximately €1.7 billion ($1.8 billion).

Refer to our Discussion and Analysis of Historical Results for more information on the impact of the acquisition on our results and refer to Note 2, Acquisitions and Divestitures , for additional details on the acquisition.

Refer to our Discussion and Analysis of Historical Results for more information on the impact of the Ricolino, Clif Bar and Chipita acquisitions on our results and refer to Note 2, Acquisitions and Divestitures , for additional details.

JDE Peet's and KDP Equity Method Investment Transactions

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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.

The cash taxes associated with the KDP share sales were paid in late 2021.

On August 2, 2021, we sold approximately 14.7 million KDP shares, which reduced our ownership interest to 5.3%.

We received $500 million of proceeds and recorded a pre-tax gain of $248 million (or $189 million after-tax) during the third quarter of 2021.

The cash taxes associated with both KDP share sales were paid in 2021.

Summary of Results

• Net revenues increased 9.5% to $7.3 billion in the second quarter of 2022 and increased 8.3% to $15.0 billion in the first six months of 2022 as compared to the same period in the prior year.

In the second quarter and first six months of 2022, our net revenue growth continued to reflect increased demand for most of our snack category products in both our emerging and developed markets relative to 2021.

Overall, our net revenue growth in the second quarter and first six months of 2022 was driven by higher net pricing, favorable volume/mix and incremental net revenues from acquisitions, partially offset by unfavorable currency translation and the impact of a prior-year divestiture.

• Organic Net Revenue, a non-GAAP financial measure, increased 13.1% to $7.5 billion in the second quarter of 2022 and increased 10.7% to $15.4 billion in the first six months of 2022 as compared to same period in the prior year.

During the second quarter and first six months of 2022, Organic Net Revenue grew due to higher net pricing and favorable volume/mix.

• Net revenues increased 8.1% to $7.8 billion in the third quarter of 2022 and increased 8.3% to $22.8 billion in the first nine months of 2022 as compared to the same period in the prior year.

In the third quarter and first nine months of 2022, our net revenue growth continued to reflect increased demand for most of our snack category products in both our emerging and developed markets relative to 2021.

Overall, our net revenue growth in the third quarter and first nine months of 2022 was driven by higher net pricing, incremental net revenues from acquisitions and favorable volume/mix, partially offset by unfavorable currency translation and the impact of divestitures.

• Organic Net Revenue, a non-GAAP financial measure, increased 12.1% to $8.0 billion in the third quarter of 2022 and increased 11.2% to $23.3 billion in the first nine months of 2022 as compared to same period in the prior year.

During the third quarter and first nine months of 2022, Organic Net Revenue grew due to higher net pricing and favorable volume/mix.

Refer to our Discussion and Analysis of Historical Results below for additional information.

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We use Organic Net Revenue as it provides improved year-over-year comparability of our underlying operating results (see the definition of Organic Net Revenue and our reconciliation with net revenues within Non-GAAP Financial Measures appearing later in this section).

• Diluted EPS attributable to Mondelēz International decreased 28.9% to $0.54 in the second quarter of 2022 and decreased 20.1% to $1.15 in the first six months of 2022 as compared to the same period in the prior year.

– Diluted EPS decreased in the second quarter of 2022, primarily driven by lapping a prior-year net gain on equity method transactions, an unfavorable year-over-year change in mark-to-market impacts from currency and commodity derivatives and higher acquisition integration costs, partially offset by lower Simplify to Grow program costs, lower negative impacts from enacted tax law changes, lapping a prior-year intangible asset impairment charge, lapping a prior-year unfavorable impact of pension participation changes and an increase in Adjusted EPS.

– Diluted EPS decreased during the first six months of 2022, primarily driven by lapping prior-year net gain on equity method transactions, unfavorable year-over-year mark-to-market impacts from currency and commodity derivatives, incremental costs incurred due to the war in Ukraine, higher intangible asset impairment charges, higher acquisition integration costs and contingent consideration adjustments and higher acquisition-related costs, partially offset by lower Simplify to Grow program costs, lower negative impacts from enacted tax law changes, lower equity method investee items and an increase in Adjusted EPS.

• Adjusted EPS, a non-GAAP financial measure, increased 1.5% to $0.67 in the second quarter of 2022 and increased 3.4% to $1.50 in the first six months of 2022 as compared to the same period in the prior year.

On a constant currency basis, Adjusted EPS increased 9.1% to $0.72 in the second quarter of 2022 and up 11.7% to $1.62 in the first six months of 2022 as compared to the same periods in the prior year.

– Adjusted EPS increased in the second quarter of 2022, primarily driven by operating gains, lower taxes and fewer shares outstanding, mostly offset by unfavorable currency translation, higher interest expense and lower equity method investment earnings.

– Adjusted EPS increased during the first six months of 2022, primarily driven by operating gains, fewer shares outstanding and lower interest expense, partially offset by unfavorable currency translation, lower benefit plan non-service income, higher taxes primarily due to lower net benefits from non-recurring discrete tax items and lower equity method investment earnings.

• Diluted EPS attributable to Mondelēz International decreased 56.2% to $0.39 in the third quarter of 2022 and decreased 33.9% to $1.54 in the first nine months of 2022 as compared to the same period in the prior year.

– Diluted EPS decreased in the third quarter of 2022, primarily driven by acquisition-related costs incurred in 2022, an unfavorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, lapping a prior-year net gain on equity method transactions, higher acquisition integration costs and contingent consideration adjustments, intangible asset impairment charges incurred in 2022 and inventory step-up charges incurred in 2022, partially offset by lower Simplify to Grow program costs and an increase in Adjusted EPS.

– Diluted EPS decreased during the first nine months of 2022, primarily driven by lapping prior-year net gains on equity method transactions, unfavorable year-over-year mark-to-market impacts from currency and commodity derivatives, higher acquisition-related costs, incremental costs incurred due to the war in Ukraine, higher acquisition integration costs and contingent consideration adjustments, higher intangible asset impairment charges, lower net earnings from divestitures and inventory step-up charges incurred in 2022, partially offset by lower Simplify to Grow program costs, an increase in Adjusted EPS, lower negative impacts from enacted tax law changes, lower equity method investee items and lapping the prior-year negative impact from pension participation changes.

• Adjusted EPS, a non-GAAP financial measure, increased 5.7% to $0.74 in the third quarter of 2022 and increased 3.7% to $2.22 in the first nine months of 2022 as compared to the same period in the prior year.

On a constant currency basis, Adjusted EPS increased 15.7% to $0.81 in the third quarter of 2022 and up 12.6% to $2.41 in the first nine months of 2022 as compared to the same periods in the prior year.

– Adjusted EPS increased in the third quarter of 2022, primarily driven by operating gains, lower taxes primarily due to higher net benefits from non-recurring discrete tax items, fewer shares outstanding and higher equity method earnings, partially offset by unfavorable currency translation and higher interest expense.

– Adjusted EPS increased during the first nine months of 2022, primarily driven by operating gains, fewer shares outstanding and lower taxes, partially offset by unfavorable currency translation, lower benefit plan non-service income and higher interest expense.

Adjusted EPS and Adjusted EPS on a constant currency basis are non-GAAP financial measures.

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We believe it is useful to provide investors with the same financial information that we use internally to make comparisons of our historical operating results, identify trends in our underlying operating results and evaluate our business.

We believe our non-GAAP financial measures should always be considered in relation to our GAAP results.

We have provided reconciliations between our GAAP and non-GAAP financial measures in Non-GAAP Financial Measures , which appears later in this section.

We believe our non-GAAP financial measures should always be considered in relation to our U.S.

GAAP results.

We have provided reconciliations between our U.S.

GAAP and non-GAAP financial measures in Non-GAAP Financial Measures , which appears later in this section.

In addition to monitoring our key operating metrics, we monitor developments and trends that could impact our revenue and profitability objectives, similar to those we highlighted in our most recently filed Annual Report on Form 10-K for the year ended December 31, 2021 and discussed in the footnotes to our financial statements.

• Market conditions.

Snack categories continued to grow in the first six months of 2022.

Snack categories continued to grow in the first nine months of 2022.

This is consistent with the latest findings in the third annual State of Snacking report, commissioned by Mondelēz International and issued in January 2022.

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Our outlook for future snacks revenue growth remains strong, but we anticipate some volatility in revenues while current events and conditions continue.

As the COVID-19 pandemic, war in Ukraine and related impacts continue, we could see shifts in consumer demand and in our sales and product mix that could have a negative impact on our results.

As the COVID-19 pandemic, inflationary cost environment, war in Ukraine and related impacts continue, we could see shifts in consumer demand and in our sales and product mix that could have a negative impact on our results.

We continue to monitor volatility across markets, including global consumer, energy and other commodity, transportation, labor, currency and capital markets.

We expect greater inflation, including input cost volatility and a higher aggregate cost environment to continue in 2022, as the war in Ukraine, the pandemic, supply chain disruptions (affecting the availability of raw materials, packaging, transportation and other costs), rising energy costs, labor shortages, adverse weather events and conditions and other factors are expected to continue.

Although we hedge to mitigate exposures to commodity and other input cost increases, we cannot fully hedge against all cost increases and changes in costs, and our hedging strategies may not protect us from increases in specific raw materials or other costs .

Refer also to Commodity Trends and Item 3, Quantitative and Qualitative Disclosures about Market Risk.

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We continue to take action and evaluate additional ways to mitigate risks, including executing business continuity plans to cover products produced in Ukraine and taking actions to adjust product offerings, package sizes and pricing to help address rising costs.

In addition, we may experience negative impacts to our business in Russia due to the war in Ukraine, including challenges to supply products as a result of sanctions or other supply chain challenges, reductions in consumer demand or local government actions that negatively impact our business.

In addition, while our business in Russia has continued to perform well in 2022, we may experience negative impacts to our business in the future due to the war in Ukraine, including challenges to supply products as a result of sanctions or other supply chain challenges, reductions in consumer demand or local government actions that negatively impact our business.

Our continued operating presence in Russia may result in negative publicity or consumer actions against our brands, which may have negative impacts on our business.

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Any ongoing or new developments in the war could have a material negative effect on our business and results in the future.

As described above, we continue to monitor and respond to the COVID-19 pandemic.

Since its inception, it has had a material negative effect on the global and local economies and could have a material negative effect on our business and results in the future, particularly if there are significant adverse changes

to consumer demand, product mix or operating costs;

significant disruptions to the supply, production or distribution of our products;

or deterioration of the credit or financial stability of our customers and other business partners.

Disruptions or our failure to effectively respond to them could further increase product or distribution costs and prices and negatively affect operations and results.

We also may not be able to adjust pricing timely or fully, and this may negatively affect our revenue, margins or earnings.

If a significant economic or credit deterioration occurs, it could impair credit availability and our ability to raise capital when needed.

A significant disruption in the financial markets may also have a negative effect on our derivative counterparties and could impair our banking or other business partners, on whom we rely for access to capital and as counterparties for a number of our derivative contracts.

As we continue to manage operations during the pandemic, we will continue to prioritize the safety of our employees and consumers and we may continue to incur increased labor, customer service, commodity, transportation and other costs.

We are working to mitigate negative impacts to our business from the COVID-19 pandemic, but we may not be able to fully predict or respond to all impacts on a timely basis to prevent adverse impacts to our results.

Any of these and other developments could materially harm our business, results of operations and financial condition.

• Clif Bar acquisition .

On June 20, 2022, we announced an agreement to acquire Clif Bar for approximately $2.9 billion.

On August 1, 2022, we completed our acquisition of Clif Bar for approximately $2.9 billion.

The acquisition of Clif Bar includes a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain revenue and earnings targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price.

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In connection with this acquisition, we expect to generate a meaningful cash tax benefit over time from the amortization of acquisition-related intangibles.

The acquisition is subject to customary closing conditions and regulatory reviews and is expected to close in the third quarter of 2022.

Refer to Note 2, Acquisitions and Divestitures, and Liquidity and Capital Resources for additional details.

• Ricolino acquisition.

On April 24, 2022, we entered into an agreement with Grupo Bimbo to acquire Ricolino, its confectionery business located primarily in Mexico for a purchase price of approximately $1.3 billion, subject to closing purchase price adjustments.

The transaction is subject to relevant antitrust approvals and closing conditions and is expected to close in the second half of 2022.

On November 1, 2022, we completed our acquisition of Ricolino, a confectionery business located primarily in Mexico, for a purchase price of approximately $1.3 billion.

Refer to Note 2, Acquisitions and Divestitures , and Liquidity and Capital Resources for additional details.

• Planned Divestiture of our developed market gum and global Halls candy businesses.

In May 2022, we announced our intention to divest these businesses.

In the third quarter of 2022, we will formally begin to seek potential buyers for these businesses.

• Planned Divestiture of our developed market gum and global Halls businesses.

In May 2022, we announced our intention to divest these businesses and in the third quarter of 2022, we began to seek potential buyers for these businesses.

We continue to monitor existing and potential future tax reform around the world.

In March 2022, President Biden sent a proposed 2023 budget to Congress and in November 2021, the U.S.

House of Representatives passed a bill that has not yet been acted on by the Senate;

both proposals contain significant changes to currently enacted U.S.

On August 16, 2022, the U.S.

enacted the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy.

Based on our initial analysis of the provisions, we expect to meet the criteria of a large corporation but we do not believe this legislation will have a material impact on our consolidated financial statements;

we will continue to evaluate it as additional guidance and clarification becomes available.

In addition, the Organization of Economic Cooperation and Development (OECD) continues to work toward agreement regarding model rules for a global minimum tax.

These proposed U.S.

and global legislative changes could have a material effect on us if enacted.

This could have a material effect on us if enacted.

• Türkiye, Argentina and currency volatility .

During the first quarter of 2022, currency exchange rate volatility increased.

We discuss currency impacts on our results in our Discussion and Analysis of Historical Results .

During 2022, currency exchange rate volatility increased, particularly in connection with the war in Ukraine, and we continue to monitor Ukraine and Russia and inflationary economic impacts there and in other countries.

We discuss historical currency impacts in our Discussion and Analysis of Historical Results .

As further discussed in Note 1, Basis of Presentation – Currency Translation and Highly Inflationary Accounting, during the first quarter of 2022, we concluded that Türkiye became a highly inflationary economy for accounting purposes.

As of April 1, 2022, we apply highly inflationary accounting for our subsidiaries operating in Türkiye and changed their functional currency from the Turkish lira to the U.S.

Our operations in Türkiye contributed $90 million or 0.6% of our condensed consolidated net revenues in the six months ended June 30, 2022.

Within selling, general and administrative expenses, we recorded a remeasurement loss of less than $1 million during the three months ended June 30, 2022 related to the revaluation of the Turkish lira denominated net monetary position during the quarter.

As of April 1, 2022, we began to apply highly inflationary accounting for our subsidiaries operating in Türkiye and changed their functional currency from the Turkish lira to the U.S.

Our operations in Türkiye contributed $141 million or 0.6% of our condensed consolidated net revenues in the nine months ended September 30, 2022.

Within selling, general and administrative expenses, we recorded a remeasurement gain of $1 million during the three months and nine months ended September 30, 2022 related to the revaluation of the Turkish lira denominated net monetary position.

We also continue to apply highly inflationary accounting for our Argentinean subsidiaries.

We recorded a remeasurement loss of $10 million during the three months and $15 million during the six months ended June 30, 2022 within selling, general and administrative expenses related to the revaluation of our Argentinean peso denominated net monetary position.

We recorded a remeasurement gain of $1 million during the three months and $1 million during the nine months ended September 30, 2022 within selling, general and administrative expenses related to the revaluation of our Argentinean peso denominated net monetary position.

The mix of monetary assets and liabilities and the exchange rate to convert Turkish lira and Argentinean pesos to U.S.

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advertising and promotion ban.

In the United Kingdom, a ban on specific types of TV and online advertising of food containing levels of fat, sugar or salt above specified thresholds is expected to go into effect in 2023, and new measures restricting certain promotions and in-store placement of some of those products are expected to go into effect in October 2022.

In the United Kingdom, a ban on specific types of TV, online advertising and certain promotions of food containing levels of fat, sugar or salt above specified thresholds is expected to go into effect in 2024, and new measures restricting in-store placement of some of those products went into effect in October 2022.

Although we are unable to estimate precisely the impact of the restrictions, they could significantly negatively affect our U.K.

results of operations in 2022 and thereafter.

In the six months ended June 30, 2022, we generated 8.1% of our consolidated net revenues in the U.K.

In the nine months ended September 30, 2022, we generated 7.9% of our consolidated net revenues in the U.K.

• Cybersecurity Risks.

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For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

See Note 2022 2021 2022 2021

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Note 9 (120) 134 (220) 268

Acquisitions and divestiture-related costs:

Acquisition and divestiture-related costs:

Acquisition integration costs and

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(28) 57 (100) 54

Inventory step-up (20) — (20) —

Acquisition-related costs (292) — (318) (24)

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Consolidated Results of Operations

Three Months Ended June 30:

Three Months Ended September 30:

For the Three Months Ended

September 30,

2022 2021 $ change % change

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$ 0.39 $ 0.89 $ (0.50) (56.2) %

Net Revenues – Net revenues increased $632 million (9.5%) to $7,274 million in the second quarter of 2022, and Organic Net Revenue (1) increased $866 million (13.1%) to $7,494 million.

Net Revenues – Net revenues increased $581 million (8.1%) to $7,763 million in the third quarter of 2022, and Organic Net Revenue (1) increased $863 million (12.1%) to $8,018 million.

Developed markets net revenues increased 1.5% and developed markets Organic Net Revenue increased 5.2% (1) .

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Unfavorable currency 8.2 pp

Impact of divestiture 0.2 pp

Impact of acquisition (3.0) pp

Impact of divestitures 0.4 pp

Impact of acquisitions (4.6) pp

Total change in Organic Net Revenue (1)

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(1) Please see the Non-GAAP Financial Measures section at the end of this item.

Net revenue increase of 9.5% was driven by our underlying Organic Net Revenue growth of 13.1% and the impact of an acquisition, partially offset by unfavorable currency translation and the impact of a prior-year divestiture.

Net revenue increase of 8.1% was driven by our underlying Organic Net Revenue growth of 12.1% and the impact of acquisitions, partially offset by unfavorable currency translation and the impact of divestitures.

Overall, we continued to see increased demand for our snack category products.

Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix.

Higher net pricing in all regions was due to the benefit of carryover pricing from 2021 as well as the effects of input cost-driven pricing actions taken during the first six months of 2022.

Favorable volume/mix was driven primarily by strong volume gains across our snack category products.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $198 million (constant currency basis).

Higher net pricing in all regions was due to the benefit of carryover pricing from 2021 as well as the effects of input cost-driven pricing actions taken during the first nine months of 2022.

Favorable volume/mix was driven primarily by volume gains in Latin America and AMEA, partially offset by volume declines in Europe, due to disruptions caused by pricing negotiations, and North America.

The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $158 million (constant currency basis) and the January 3, 2022 acquisition of Chipita added incremental net revenues of $176 million (constant currency basis).

Unfavorable currency impacts decreased net revenues by $590 million, due primarily to the strength of the U.S.

dollar relative to most currencies, including the euro, British pound sterling, Turkish lira, Argentinean peso, Australian dollar, Polish zloty, Indian rupee and Swedish krona, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Russian ruble and Brazilian real.

The impact of the November 1, 2021 divestiture of the packaged seafood business, which was part of our April 1, 2021 acquisition of Gourmet Food, resulted in a year-over-year decline in net revenues of $14 million.

dollar relative to most currencies, including the euro, British pound sterling, Turkish lira, Argentinean peso, Indian rupee, Chinese yuan, Australian dollar and Polish zloty, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Russian ruble.

The impact of divestitures resulted in a year-over-year reduction in net revenues of $26 million.

Refer to Note 2, Acquisitions and Divestitures, for additional information.

Operating Income – Operating income increased $55 million (6.3%) to $927 million in the second quarter of 2022.

Operating Income – Operating income decreased $615 million (47.5%) to $679 million in the third quarter of 2022.

Adjusted Operating Income (1) increased $23 million (1.9%) to $1,253 million and Adjusted Operating Income on a constant currency basis (1) increased $118 million (9.6%) to $1,348 million due to the following:

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(in millions)

Operating Income for the Three Months Ended June 30, 2021

Operating Income for the Three Months Ended September 30, 2021

Simplify to Grow Program (2)

Intangible asset impairment charge (3)

Mark-to-market gains from derivatives (3)

Acquisition integration costs and contingent consideration adjustments (4)

Acquisition-related costs (5)

Operating income from divestiture (5)

Operating income from divestitures (4)

Remeasurement of net monetary position (5)

Impact from pension participation changes (6)

Impact from resolution of a tax matter (8)

Adjusted Operating Income (1) for the

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Higher net pricing

Higher input costs

Favorable volume/mix 112

Unfavorable volume/mix (28)

Higher selling, general and administrative expenses (154)

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Adjusted Operating Income (1) for the

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Simplify to Grow Program (2)

Intangible asset impairment charges (7)

Mark-to-market losses from derivatives (4)

Acquisition integration costs and contingent consideration adjustments (4)

Inventory step-up (4)

Acquisition-related costs (4)

2 unchanged sentences

Remeasurement of net monetary position (5)

Operating Income for the Three Months Ended June 30, 2022

Operating Income for the Three Months Ended September 30, 2022

$ 679 (47.5) %

(1) Refer to the Non-GAAP Financial Measures section at the end of this item.

(2) Refer to Note 7, Restructuring Program, for more information.

(3) Refer to Note 5, Goodwill and Intangible Assets , for more information.

(3) Refer to Note 9, Financial Instruments , and the Non-GAAP Financial Measures section at the end of this item for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.

(5) Refer to Note 2, Acquisitions and Divestitures , for more information on the January 3, 2022 acquisition of Chipita, the November 1, 2021 sale of MaxFoods Pty Ltd, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.

(4) Refer to Note 2, Acquisitions and Divestitures , for more information on the August 1, 2022 acquisition of Clif Bar, January 3, 2022 acquisition of Chipita, the November 1, 2021 sale of MaxFoods Pty Ltd, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.

(5) Refer to Note 1, Basis of Presentation , for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

(6) Refer to Note 10, Benefit Plans , for more information.

(8) Refer to Note 12, Commitments and Contingencies , for more information.

(7) Refer to Note 5, Goodwill and Intangible Assets , for more information.

(8) Divestiture-related costs includes costs incurred associated with our publicly-announced processes to divest our developed markets gum and global Halls businesses.

During the second quarter of 2022, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.

Higher net pricing, which included the carryover impact of pricing actions taken in 2021 as well as the effects of input cost-driven pricing actions taken during the first six months of 2022, was reflected across all regions.

Favorable volume/mix was driven by Europe, AMEA and Latin America, partially offset by unfavorable volume/mix in North America.

Overall volume/mix benefited from strong volume growth due to continued increased demand for our snack category products.

During the third quarter of 2022, we realized higher net pricing, which was partially offset by increased input costs and unfavorable volume/mix.

Higher net pricing, which included the carryover impact of pricing actions taken in the second half of 2021 as well as the effects of input cost-driven pricing actions taken during the first nine months of 2022, was reflected across all regions.

The increase in input costs was driven by higher raw material costs as well as increased manufacturing costs.

Higher raw material costs were in part due to higher packaging, dairy, edible oils, energy, sugar, nuts and other ingredient costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower cocoa and grain costs.

Total selling, general and administrative expenses increased $83 million from the second quarter of 2021, due to a number of factors noted in the table above, including in part, the impact of acquisitions, higher acquisition integration costs, higher remeasurement of net monetary position, lapping the prior-year favorable impact from the resolution of a tax matter and divestiture-related costs incurred in 2022, which were offset by a favorable currency impact related to expenses, lapping the prior-year unfavorable impact from pension participation changes, lower acquisition-related costs, a decrease of allowance and inventory reserves associated with incremental costs due to the war in Ukraine and lower implementation costs incurred for the Simplify to Grow Program.

Excluding these factors, selling, general and administrative expenses increased $127 million from the second quarter of 2021.

The increase was driven primarily by higher advertising and consumer promotion costs and higher overhead costs in part due to increased investments in route-to-market capabilities.

Higher raw material costs were in part due to higher dairy, packaging, edible oils, grains, energy, sugar, nuts and other ingredients costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower cocoa costs.

Unfavorable volume/mix was driven by Europe, due to disruptions caused by pricing negotiations, and North America, partially offset by favorable volume/mix in AMEA and Latin America.

Total selling, general and administrative expenses increased $448 million from the third quarter of 2021, due to a number of factors noted in the table above, including in part, acquisition-related costs incurred in 2022, the impact of acquisitions, higher acquisition integration costs and contingent consideration adjustments, higher remeasurement of net monetary position, divestiture-related costs incurred in 2022 and higher implementation costs incurred for the Simplify to Grow Program, which were partially offset by a favorable currency impact related to expenses, and a decrease of allowance and other cost reserves associated with incremental costs due to the war in Ukraine.

Excluding these factors, selling, general and administrative expenses increased $154 million from the third quarter of 2021.

The increase was driven primarily by higher overhead costs in part due to increased investments in route-to-market capabilities and higher advertising and consumer promotion costs.

Unfavorable currency changes decreased operating income by $95 million due primarily to the strength of the U.S.

dollar relative to most currencies, including the euro, British pound sterling and Turkish lira, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Russian ruble and Brazilian real.

Operating income margin decreased from 13.1% in the second quarter of 2021 to 12.7% in the second quarter of 2022.

The decrease was driven primarily by unfavorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, lower Adjusted Operating Income margin, higher acquisition integration costs and higher remeasurement of net monetary position, partially offset by lower Simplify to Grow program costs, lapping of prior-year unfavorable impact of pension participation changes, lapping a prior-year intangible asset impairment charge and lower acquisition-related costs.

Adjusted Operating Income margin decreased from 16.2% for the second quarter of 2021 to 15.1% for the second quarter of 2022.

dollar relative to most currencies, including the euro, British pound sterling, Turkish lira, Indian rupee, Argentinean peso and Chinese yuan, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Russian ruble.

Operating income margin decreased from 18.0% in the third quarter of 2021 to 8.7% in the third quarter of 2022.

The decrease was driven primarily by unfavorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, acquisition-related costs incurred in 2022, lower Adjusted Operating Income margin, higher acquisition integration costs and contingent consideration adjustments, intangible asset impairment charge incurred in 2022, inventory step-up charge incurred in 2022 and higher remeasurement of net monetary position, partially offset by lower Simplify to Grow program costs.

Adjusted Operating Income margin decreased from 17.2% for the third quarter of 2021 to 16.1% for the third quarter of 2022.

The decrease was driven primarily by higher raw material costs and unfavorable product mix, partially offset by higher net pricing and overhead cost leverage.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $747 million decreased by $331 million (30.7%) in the second quarter of 2022.

Diluted EPS attributable to Mondelēz International was $0.54 in the second quarter of 2022, down $0.22 (28.9%) from the second quarter of 2021.

Adjusted EPS (1) was $0.67 in the second quarter of 2022, up $0.01 (1.5%) from the second quarter of 2021.

Adjusted EPS on a constant currency basis (1) was $0.72 in the second quarter of 2022, up $0.06 (9.1%) from the second quarter of 2021.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $532 million decreased by $726 million (57.7%) in the third quarter of 2022.

Diluted EPS attributable to Mondelēz International was $0.39 in the third quarter of 2022, down $0.50 (56.2%) from the third quarter of 2021.

Adjusted EPS (1) was $0.74 in the third quarter of 2022, up $0.04 (5.7%) from the third quarter of 2021.

Adjusted EPS on a constant currency basis (1) was $0.81 in the third quarter of 2022, up $0.11 (15.7%) from the third quarter of 2021.

Diluted EPS Attributable to Mondelēz International for the

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Simplify to Grow Program (2)

Intangible asset impairment charge (2)

Mark-to-market gains from derivatives (2)

Acquisition-related costs (2)

Impact from pension participation changes (2)

Initial impacts from enacted tax law changes (3)

Acquisition integration costs and contingent consideration adjustments (2)

Net earnings from divestitures (2)

Gain on equity method investment transactions (3)

Adjusted EPS (1) for the Three Months Ended June 30, 2021

Adjusted EPS (1) for the Three Months Ended September 30, 2021

Increase in operations 0.05

Decrease in equity method investment net earnings (0.01)

Increase in equity method investment net earnings 0.01

Impact from acquisition (2)

2 unchanged sentences

Changes in shares outstanding (6)

Adjusted EPS (constant currency) (1) for the Three Months Ended June 30, 2022

Adjusted EPS (constant currency) (1) for the Three Months Ended September 30, 2022

Unfavorable currency translation (0.07)

Adjusted EPS (1) for the Three Months Ended June 30, 2022

Adjusted EPS (1) for the Three Months Ended September 30, 2022

Simplify to Grow Program (2)

Intangible asset impairment charges (2)

Mark-to-market losses from derivatives (2)

Acquisition integration costs and contingent consideration adjustments (2)

Acquisition-related costs (2)

Inventory step-up (2)

Remeasurement of net monetary position (2)

Incremental costs due to war in Ukraine (2)

Initial impacts from enacted tax law changes (5)

Loss on equity method investment transactions (4)

Equity method investee items (7)

Diluted EPS Attributable to Mondelēz International for the

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

(1) Refer to the Non-GAAP Financial Measures section appearing later in this section.

(2) See the Operating Income table above and the related footnotes for more information.

(3) Refer to Note 14, Income Taxes , for more information on the items affecting income taxes.

(3) Refer to Note 6, Equity Method Investments , for more information on gain/loss on equity method investment transactions.

1 unchanged sentence

dollar-denominated debt, which is included in currency translation.

(5) Refer to Note 14, Income Taxes , for more information on the items affecting income taxes.

(6) Refer to Note 11, Stock Plans , for more information on our equity compensation programs and share repurchase program and Note 15, Earnings per Share , for earnings per share weighted-average share information.

(7) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees, such as acquisition and divestiture-related costs and restructuring program costs.

Six Months Ended June 30:

For the Six Months Ended

Nine Months Ended September 30:

For the Nine Months Ended

September 30,

2022 2021 $ change % change

8 unchanged sentences

$ 1.54 $ 2.33 $ (0.79) (33.9) %

Net Revenues – Net revenues increased $1,158 million (8.3%) to $15,038 million in the first six months of 2022, and Organic Net Revenue (1) increased $1,485 million (10.7%) to $15,351 million.

Net Revenues – Net revenues increased $1,739 million (8.3%) to $22,801 million in the first nine months of 2022, and Organic Net Revenue (1) increased $2,342 million (11.2%) to $23,346 million.

Developed markets net revenues increased 2.3% and developed markets Organic Net Revenue increased 5.7% (1) .

5 unchanged sentences

Unfavorable currency 6.2 pp

Impact of divestiture 0.2 pp

Impact of divestitures 0.2 pp

Impact of acquisitions (3.5) pp

3 unchanged sentences

(1) Please see the Non-GAAP Financial Measures section at the end of this item.

Net revenue increase of 8.3% was driven by our underlying Organic Net Revenue growth of 10.7% and the impact of acquisitions, partially offset by unfavorable currency translation and the impact of a prior-year divestiture.

Net revenue increase of 8.3% was driven by our underlying Organic Net Revenue growth of 11.2% and the impact of acquisitions, partially offset by unfavorable currency translation and the impact of divestitures.

Overall, we continued to see increased demand for our snack category products.

Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix.

Higher net pricing in all regions was due to the benefit of carryover pricing from 2021 as well as the effects of input cost-driven pricing actions taken during the first six months of 2022.

Favorable volume/mix was driven primarily by strong volume gains primarily across our snack category products.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $367 million (constant currency basis), the April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis).

Higher net pricing in all regions was due to the benefit of carryover pricing from 2021 as well as the effects of input cost-driven pricing actions taken during the first nine months of 2022.

Favorable volume/mix was driven by AMEA, Latin America and Europe, primarily by strong volume gains across our snack category products, partially offset by unfavorable volume/mix in North America.

The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $158 million (constant currency basis), the January 3, 2022 acquisition of Chipita added incremental net revenues of $543 million (constant currency basis), the April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis).

Unfavorable currency impacts decreased net revenues by $1,305 million, due primarily to the strength of the U.S.

dollar, including the Brazilian real.

dollar relative to most currencies, including the euro, British pound sterling, Turkish lira, Argentinean peso, Australian dollar, Indian rupee, Polish zloty and Swedish krona, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Russian ruble and Brazilian real.

The impact of divestitures resulted in a year-over-year reduction in net revenues of $36 million.

Refer to Note 2, Acquisitions and Divestitures, for additional information.

Operating Income – Operating income decreased $134 million (6.2%) to $2,021 million in the first six months of 2022.

Operating Income – Operating income decreased $749 million (21.7%) to $2,700 million in the first nine months of 2022.

Adjusted Operating Income (1) increased $133 million (3.7%) to $3,727 million and Adjusted Operating Income on a constant currency basis (1) increased $382 million (10.6%) to $3,976 million due to the following:

1 unchanged sentence

(in millions)

Operating Income for the Six Months Ended June 30, 2021

Operating Income for the Nine Months Ended September 30, 2021

Simplify to Grow Program (2)

4 unchanged sentences

Gain from acquisition (5)

Operating income from divestiture (5)

Operating income from divestitures (5)

Remeasurement of net monetary position (6)

2 unchanged sentences

Adjusted Operating Income (1) for the

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Higher net pricing

8 unchanged sentences

Adjusted Operating Income (1) for the

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Simplify to Grow Program (2)

2 unchanged sentences

Acquisition integration costs and contingent consideration adjustments (5)

Inventory step-up (5)

Acquisition-related costs (5)

Divestiture-related costs (5) (9)

Operating income from divestitures (6)

Incremental costs due to war in Ukraine (6)

Remeasurement of net monetary position (6)

Operating Income for the Six Months Ended June 30, 2022

Operating Income for the Nine Months Ended September 30, 2022

$ 2,700 (21.7) %

3 unchanged sentences

(4) Refer to Note 9, Financial Instruments , Note 16, Segment Reporting , and Non-GAAP Financial Measures section at the end of this item for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.

(5) Refer to Note 2, Acquisitions and Divestitures , for more information on the August 1, 2022 acquisition of Clif Bar, the January 3, 2022 acquisition of Chipita, the November 1, 2021 sale of MaxFoods Pty Ltd, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.

(6) Refer to Note 1, Basis of Presentation , for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

2 unchanged sentences

(9) Divestiture-related costs includes costs incurred associated with our publicly-announced processes to divest our developed markets gum and global Halls businesses.

During the first six months of 2022, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.

Favorable volume/mix was driven by Europe, AMEA and Latin America, which was partially offset by unfavorable volume/mix in North America.

During the first nine months of 2022, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.

Higher net pricing, which included the carryover impact of pricing actions taken in 2021 as well as the effects of input cost-driven pricing actions taken during the first nine months of 2022, was reflected in all regions.

Favorable volume/mix was driven by AMEA, Latin America and Europe, which was partially offset by unfavorable volume/mix in North America.

Overall volume/mix benefited from strong volume growth due to continued increased demand for our snack category products.

The increase in input costs was driven by higher raw material costs as well as higher manufacturing costs.

Higher raw material costs were in part due to higher packaging, dairy, edible oils, energy, grains, sugar, nuts and other ingredient costs, partially offset by favorable year-over-year currency exchange transaction costs on imported materials and lower cocoa costs.

Total selling, general and administrative expenses increased $212 million from the first six months of 2021, due to a number of factors noted in the table above, including in part, the impact of acquisitions, higher acquisition integration costs, incremental costs due to the war in Ukraine, higher remeasurement of net monetary position, lapping the prior-year favorable impact from the resolution of a tax matter, divestiture-related costs incurred in 2022, and higher acquisition-related costs, which were partially offset by a favorable currency impact related to expenses, lapping the prior-year unfavorable impact from pension participation changes and lower implementation costs incurred for the Simplify to Grow Program.

Excluding these factors, selling, general and administrative expenses increased $203 million from the first six months of 2021.

Higher raw material costs were in part due to higher packaging, dairy, edible oils, energy, grains, sugar, nuts and other ingredients costs, partially offset by lower cocoa costs and favorable year-over-year currency exchange transaction costs on imported materials.

Total selling, general and administrative expenses increased $660 million from the first nine months of 2021, due to a number of factors noted in the table above, including in part, higher acquisition-related costs, higher acquisition integration costs, the impact of acquisitions, incremental costs due to the war in Ukraine, higher remeasurement of net monetary position, divestiture-related costs incurred in 2022 and lapping the prior-year favorable impact from the resolution of a tax matter, which were partially offset by a favorable currency impact related to expenses, lapping the prior-year unfavorable impact from pension participation changes and lower implementation costs incurred for the Simplify to Grow Program.

Excluding these factors, selling, general and administrative expenses increased $358 million from the first nine months of 2021.

The increase was driven primarily by higher advertising and consumer promotion costs and higher overheads in part due to increased investments in route-to-market capabilities.

Unfavorable currency changes decreased operating income by $249 million due primarily to the strength of the U.S.

dollar relative to most currencies, including the euro, Russian ruble, British pound sterling, Turkish lira, Argentinian peso, Australian dollar, Indian rupee and Swedish krona, partially offset by the strength of a few currencies relative to the U.S.

dollar relative to most currencies, including the euro, British pound sterling, Turkish lira, Argentinian peso, Australian dollar, Indian rupee, Polish zloty and Swedish krona, partially offset by the strength of a few currencies relative to the U.S.

dollar, including the Brazilian real.

Operating income margin decreased from 15.5% in the first six months of 2021 to 13.4% in the first six months of 2022.

The decrease in operating income margin was driven primarily by the year-over-year unfavorable change in mark-to-market gains/(losses) from currency and commodity hedging activities, incremental costs due to the war in Ukraine, lower Adjusted Operating Income margin, higher intangible asset impairment charges, higher acquisition integration costs, divestiture-related costs incurred in 2022 and higher remeasurement of net monetary position, partially offset by lower costs for the Simplify to Grow Program and lapping the prior-year unfavorable impact from pension participation changes.

Adjusted Operating Income margin decreased from 17.1% for the first six months of 2021 to 16.5% for the first six months of 2022.

Operating income margin decreased from 16.4% in the first nine months of 2021 to 11.8% in the first nine months of 2022.

The decrease in operating income margin was driven primarily by the year-over-year unfavorable change in mark-to-market gains/(losses) from currency and commodity hedging activities, higher acquisition-related costs, higher acquisition integration costs, lower Adjusted Operating Income margin, incremental costs due to the war in Ukraine, higher intangible asset impairment charges, higher remeasurement of net monetary position, divestiture-related costs incurred in 2022 and inventory step-up charges incurred in 2022, partially offset by lower costs for the Simplify to Grow Program and lapping the prior-year unfavorable impact from pension participation changes.

Adjusted Operating Income margin decreased from 17.1% for the first nine months of 2021 to 16.4% for the first nine months of 2022.

The decrease was driven primarily by higher raw material costs and unfavorable product mix, partially offset by higher net pricing and overhead cost leverage.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $1,602 million decreased by $437 million (21.4%) in the first six months of 2022.

Diluted EPS attributable to Mondelēz International was $1.15 in the first six months of 2022, down $0.29 (20.1%) from the first six months of 2021.

Adjusted EPS (1) was $1.50 in the first six months of 2022, up $0.05 (3.4%) from the first six months of 2021.

Adjusted EPS on a constant currency basis (1) was $1.62 in the first six months of 2022, up $0.17 (11.7%) from the first six months of 2021.

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $2,134 million decreased by $1,163 million (35.3%) in the first nine months of 2022.

Diluted EPS attributable to Mondelēz International was $1.54 in the first nine months of 2022, down $0.79 (33.9%) from the first nine months of 2021.

Adjusted EPS (1) was $2.22 in the first nine months of 2022, up $0.08 (3.7%) from the first nine months of 2021.

Adjusted EPS on a constant currency basis (1) was $2.41 in the first nine months of 2022, up $0.27 (12.6%) from the first nine months of 2021.

Diluted EPS Attributable to Mondelēz International for the

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Simplify to Grow Program (2)

1 unchanged sentence

Mark-to-market gains from derivatives (2)

Acquisition integration costs and contingent consideration adjustments (2)

Acquisition-related costs (2)

Net earnings from divestitures (2)

Remeasurement of net monetary position (2)

Impact from pension participation changes (2)

3 unchanged sentences

Equity method investee items (6)

Adjusted EPS (1) for the Six Months Ended June 30, 2021

Adjusted EPS (1) for the Nine Months Ended September 30, 2021

Increase in operations

Decrease in equity method investment net earnings

Impact from acquisition (2)

3 unchanged sentences

Changes in shares outstanding (8)

Adjusted EPS (constant currency) (1) for the Six Months Ended June 30, 2022

Adjusted EPS (constant currency) (1) for the Nine Months Ended September 30, 2022

Unfavorable currency translation

Adjusted EPS (1) for the Six Months Ended June 30, 2022

Adjusted EPS (1) for the Nine Months Ended September 30, 2022

Simplify to Grow Program (2)

Intangible asset impairment charge (2)

Intangible asset impairment charges (2)

Mark-to-market losses from derivatives (2)

Acquisition integration costs and contingent consideration adjustments (2)

Inventory step-up (2)

Acquisition-related costs (2)

Divestiture-related costs (2)

Net earnings from divestitures (2)

Incremental costs due to war in Ukraine (2)

5 unchanged sentences

Diluted EPS Attributable to Mondelēz International for the

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

(1) Refer to the Non-GAAP Financial Measures section appearing later in this section.

18 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2022 2021 2022 2021

24 unchanged sentences

For the Three Months Ended

September 30,

2022 2021 $ change % change

2 unchanged sentences

Segment operating income 112 91 21 23.1 %

For the Six Months Ended

For the Nine Months Ended

September 30,

2022 2021 $ change % change

2 unchanged sentences

Segment operating income 305 221 84 38.0 %

Three Months Ended June 30:

Net revenues increased $207 million (30.9%), due to higher net pricing (20.6 pp) and favorable volume/mix (12.4 pp), partially offset by unfavorable currency (2.1 pp).

Three Months Ended September 30:

Net revenues increased $162 million (21.6%), due to higher net pricing (25.8 pp) and favorable volume/mix (5.8 pp), partially offset by unfavorable currency (8.4 pp) and the impact of divestitures (1.6 pp).

Higher net pricing was reflected across all categories, driven primarily by Argentina, Brazil and Mexico.

Favorable volume/mix reflected strong volume growth as the region continued to see increased demand for our snack category products.

Favorable volume/mix was driven by gains in gum, biscuits, chocolate, candy and cheese & grocery, partially offset by a decline in refreshment beverages.

Favorable volume/mix was driven by gains in candy, biscuits, gum and chocolate, partially offset by declines in refreshment beverages and cheese & grocery.

Unfavorable currency impacts were due primarily to the strength of the U.S.

dollar relative to most currencies in the region, primarily the Argentinean peso, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Brazilian real.

Segment operating income increased $36 million (66.7%), primarily due to higher net pricing, favorable volume/mix, lower manufacturing costs due to productivity and lower costs incurred for the Simplify to Grow Program.

These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses, higher remeasurement loss of net monetary position and lapping a prior-year favorable impact from the resolution of a tax matter.

Six Months Ended June 30:

Net revenues increased $364 million (27.2%), due to higher net pricing (18.8 pp) and favorable volume/mix (10.6 pp), partially offset by unfavorable currency (2.2 pp).

dollar relative to most currencies in the region, primarily the Argentinean peso, slightly offset by the strength of a few currencies relative to the U.S.

The impact of divestitures resulted in a year-over-year reduction in net revenues of $10 million.

Segment operating income increased $21 million (23.1%), primarily due to higher net pricing, favorable volume/mix and lower manufacturing costs due to productivity.

These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, higher remeasurement loss of net monetary position, acquisition integration costs incurred in 2022 and unfavorable currency.

Nine Months Ended September 30:

Net revenues increased $526 million (25.2%), due to higher net pricing (21.5 pp) and favorable volume/mix (8.6 pp), partially offset by unfavorable currency (4.3 pp) and the impact of divestitures (0.6 pp).

Higher net pricing was reflected across all categories, driven primarily by Argentina, Brazil and Mexico.

Favorable volume/mix reflected strong volume growth as the region continued to see increased demand for our snack category products.

Favorable volume/mix was driven by gains in gum, chocolate, biscuits, gum, candy and cheese & grocery, partially offset by a decline in refreshment beverages.

Favorable volume/mix was driven by gains in gum, biscuits, chocolate and candy, partially offset by a decline in refreshment beverages and cheese & grocery.

Unfavorable currency impacts were due primarily to the strength of the U.S.

1 unchanged sentence

dollar, primarily the Brazilian real.

The impact of divestitures resulted in a year-over-year decline in net revenues of $6 million.

Segment operating income increased $84 million (38.0%), primarily due to higher net pricing, favorable volume/mix, lower manufacturing costs due to productivity and lower costs incurred for the Simplify to Grow Program.

These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses, higher remeasurement loss on net monetary position and lapping a prior-year favorable impact from the resolution of a tax matter.

These favorable items were partially offset by higher raw material costs, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses, higher remeasurement loss on net monetary position, acquisition integration costs and lapping a prior-year favorable impact from the resolution of a tax matter.

For the Three Months Ended

September 30,

2022 2021 $ change % change

2 unchanged sentences

Segment operating income 257 267 (10) (3.7) %

For the Six Months Ended

For the Nine Months Ended

September 30,

2022 2021 $ change % change

2 unchanged sentences

Segment operating income 740 842 (102) (12.1) %

Three Months Ended June 30:

Three Months Ended September 30:

Net revenues increased $75 million (4.6%), due to favorable volume/mix (8.5 pp) and higher net pricing (6.1 pp), partially offset by unfavorable currency (9.0 pp) and the impact of a divestiture (1.0 pp).

Favorable volume/mix reflected overall volume gains from increased demand for our snack category products.

Favorable volume/mix was driven by gains in chocolate, biscuits and candy, partially offset by declines in gum, cheese & grocery and refreshment beverages.

Favorable volume/mix was driven by gains in biscuits, chocolate, candy and refreshment beverages, partially offset by declines in gum and cheese & grocery.

Higher net pricing was reflected across all categories.

Unfavorable currency impacts were due to the strength of the U.S.

dollar relative to most currencies in the region, including the Australian dollar, Indian rupee, South African rand, Philippine peso, Egyptian pound and Chinese yuan.

Segment operating income decreased $2 million (0.9%), primarily due to higher raw material costs, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses and unfavorable currency.

These unfavorable items were mostly offset by higher net pricing, favorable volume/mix and lower manufacturing costs driven by productivity.

Six Months Ended June 30:

dollar relative to most currencies in the region, including the Indian rupee, Chinese yuan, Australian dollar, South African rand, Egyptian pound and Philippine peso.

The impact of the November 1, 2021 divestiture of the packaged seafood business, which was part of our April 1, 2021 acquisition of Gourmet Food, resulted in a year-over-year reduction in net revenues of $16 million.

Segment operating income decreased $10 million (3.7%), primarily due to higher raw material costs, unfavorable currency, higher advertising and consumer promotion costs, an intangible asset impairment charge in 2022 and higher other selling, general and administrative expenses.

These unfavorable items were partially offset by higher net pricing, favorable volume/mix and lower manufacturing costs driven by productivity.

Nine Months Ended September 30:

Net revenues increased $280 million (5.8%), due to favorable volume/mix (7.8 pp), higher net pricing (4.3 pp) and the impact of an acquisition (0.3 pp), partially offset by unfavorable currency (5.9 pp) and the impact of a divestiture (0.7 pp).

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Unfavorable currency impacts were due to the strength of the U.S.

dollar relative to most currencies in the region, including the Australian dollar, Indian rupee, Philippine peso, South African Rand, Japanese yen and Egyptian pound.

Segment operating income decreased $92 million (16.0%), primarily due to higher raw material costs, an intangible asset impairment charge incurred in the first quarter of 2022, higher advertising and consumer promotion costs, unfavorable currency, higher other selling, general and administrative expenses and higher costs incurred for the Simplify to Grow Program.

dollar relative to most currencies in the region, including the Australian dollar, Indian rupee, Philippine peso, South African Rand, Chinese yuan, Egyptian pound and Japanese yen.

Segment operating income decreased $102 million (12.1%), primarily due to higher raw material costs, intangible asset impairment charges incurred in 2022, higher advertising and consumer promotion costs, unfavorable currency, higher other selling, general and administrative expenses and higher costs incurred for the Simplify to Grow Program.

These unfavorable items were partially offset by higher net pricing, favorable volume/mix and lower manufacturing costs driven by productivity.

For the Three Months Ended

September 30,

2022 2021 $ change % change

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Segment operating income 413 508 (95) (18.7) %

For the Six Months Ended

For the Nine Months Ended

September 30,

2022 2021 $ change % change

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Segment operating income 1,170 1,478 (308) (20.8) %

Three Months Ended June 30:

Net revenues increased $152 million (6.1%), due to the impact of an acquisition (7.6 pp), favorable volume/mix (5.9 pp) and higher net pricing (4.9 pp), partially offset by unfavorable currency (12.3 pp).

The January 3, 2022 acquisition of Chipita added incremental net revenues of $189 million (constant currency basis) in the second quarter of 2022.

Favorable volume/mix was driven by strong volume growth as we experienced increased demand for our snack category products and our world travel business grew as global travel continued to improve.

Favorable volume/mix was driven by gains in chocolate, biscuits, candy, cheese & grocery and gum, partially offset by a decline in refreshment beverages.

Higher net pricing was reflected across all categories.

Unfavorable currency impacts reflected the strength of the U.S.

Three Months Ended September 30:

Net revenues decreased $65 million (2.4%), due to unfavorable currency (13.8 pp) and unfavorable volume/mix (4.6 pp), partially offset by higher net pricing (9.8 pp) and the impact of an acquisition (6.2 pp).

Unfavorable currency impact reflected the strength of the U.S.

dollar relative to most currencies across the region, including the euro, British pound sterling, Turkish lira, Polish zloty and Swedish krona, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Russian ruble.

Segment operating income decreased $33 million (8.0%), primarily due to higher raw material costs, unfavorable currency, acquisition integration costs incurred in the second quarter of 2022, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs and higher manufacturing costs.

These unfavorable items were partially offset by higher net pricing, favorable volume/mix, lapping the prior-year unfavorable impact of pension participation changes, a decrease in estimated allowances and reserves associated with incremental costs due to the war in Ukraine and the impact of an acquisition.

Six Months Ended June 30:

Net revenues increased $240 million (4.5%), due to the impact of acquisitions (7.0 pp), favorable volume/mix (4.5 pp) and higher net pricing (3.1 pp), partially offset by unfavorable currency (10.1 pp).

The January 3, 2022 acquisition of Chipita added incremental net revenues of $351 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis) in the first six months of 2022.

Favorable volume/mix was driven by strong volume growth as we experienced increased demand for our snack category products and our world travel business grew as global travel continued to improve.

Favorable volume/mix was driven by gains in chocolate, biscuits, candy and gum, partially offset by declines in refreshment beverages and cheese & grocery.

Higher net pricing was reflected across all categories except refreshment beverages.

Unfavorable volume/mix reflected volume declines driven by disruptions due to pricing negotiations.

Unfavorable volume/mix was driven by declines in biscuits, chocolate, cheese & grocery, gum and refreshment beverages, partially offset by a gain in candy.

Higher net pricing was reflected across all categories.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $167 million (constant currency basis) in the third quarter of 2022.

Segment operating income decreased $95 million (18.7%), primarily due to higher raw material costs, unfavorable volume/mix, unfavorable currency, higher other selling, general and administrative expenses and acquisition integration costs incurred in the third quarter of 2022.

These unfavorable items were partially offset by higher net pricing, the impact of an acquisition, a decrease in estimated allowances and reserves associated with incremental costs due to the war in Ukraine and lower manufacturing costs.

Nine Months Ended September 30:

Net revenues increased $175 million (2.2%), due to the impact of acquisitions (6.7 pp), higher net pricing (5.3 pp) and favorable volume/mix (1.5 pp), partially offset by unfavorable currency (11.3 pp).

The January 3, 2022 acquisition of Chipita added incremental net revenues of $518 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis) in the first nine months of 2022.

Higher net pricing was reflected across all categories.

Overall, favorable volume/mix was driven by strong volume growth, despite disruptions in the third quarter due to pricing negotiations, as we experienced increased demand for most of our snack category products and our world travel business grew as global travel continued to improve.

Favorable volume/mix was driven by gains in chocolate, candy and gum, partially offset by declines in cheese & grocery, biscuits and refreshment beverages.

Unfavorable currency impacts reflected the strength of the U.S.

dollar relative to most currencies across the region, including the euro, British pound sterling, Turkish lira, Polish zloty, Swedish krona and Romanian leu.

Segment operating income decreased $213 million (22.0%), primarily due to higher raw material costs, unfavorable currency, incremental costs incurred due to the war in Ukraine, acquisition integration costs incurred in the first six months of 2022, higher other selling, general and administrative expenses and higher advertising and consumer promotion costs.

These unfavorable items were partially offset by higher net pricing, favorable volume/mix, lapping the prior-year unfavorable impact of pension participation changes, the impact of acquisitions and lower costs incurred for the Simplify to Grow Program.

dollar relative to most currencies across the region, including the euro, British pound sterling, Turkish lira, Polish zloty, Swedish krona and Romanian leu, partially offset by the strength of a few currencies relative to the U.S.

dollar, primarily the Russian ruble.

Segment operating income decreased $308 million (20.8%), primarily due to higher raw material costs, unfavorable currency, incremental costs incurred due to the war in Ukraine, higher acquisition integration costs, higher other selling, general and administrative expenses and higher advertising and consumer promotion costs.

These unfavorable items were partially offset by higher net pricing, lapping the prior-year unfavorable impact of pension participation changes, the impact of acquisitions, favorable volume/mix, lower costs incurred for the Simplify to Grow Program and lower manufacturing costs.

North America

For the Three Months Ended

September 30,

2022 2021 $ change % change

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Segment operating income 465 363 102 28.1 %

For the Six Months Ended

For the Nine Months Ended

September 30,

2022 2021 $ change % change

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Segment operating income 1,337 932 405 43.5 %

Three Months Ended June 30:

Net revenues increased $190 million (9.3%), due to higher net pricing (10.2 pp) and the impact of an acquisition (0.5 pp), partially offset by unfavorable volume/mix (1.0 pp) and unfavorable currency (0.4 pp).

Higher net pricing was reflected across all categories driven by pricing actions taken in the first six months of 2022.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $9 million in the second quarter of 2022.

Unfavorable volume/mix was driven by a decline in biscuits which primarily reflected the impact of supply chain constraints on volume, partially offset by gains in candy, gum and chocolate.

Three Months Ended September 30:

Net revenues increased $409 million (19.6%), due to higher net pricing (12.6 pp) and the impact of acquisitions (8.0 pp), partially offset by unfavorable volume/mix (0.6 pp) and unfavorable currency (0.4 pp).

Higher net pricing was reflected across all categories except gum, driven by pricing actions taken in the first nine months of 2022.

The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $158 million (at constant currency) and the January 3, 2022 acquisition of Chipita added incremental net revenues of $9 million in the third quarter of 2022.

Unfavorable volume/mix was driven by a decline in biscuits, chocolate and gum, which primarily reflected the impact of supply chain constraints on volume, partially offset by gains in candy.

Unfavorable currency impact was due to the strength of the U.S.

dollar relative to the Canadian dollar.

Segment operating income increased $155 million (51.8%), primarily due to higher net pricing, lower costs incurred for the Simplify to Grow Program and lapping prior-year intangible asset impairment charges.

These favorable items were partially offset by higher raw material costs, higher manufacturing costs, unfavorable volume/mix and higher advertising and consumer promotion costs.

Six Months Ended June 30:

Net revenues increased $349 million (8.7%), due to higher net pricing (8.9 pp) and the impact of an acquisition (0.4 pp), partially offset by unfavorable volume/mix (0.4 pp) and unfavorable currency (0.2 pp).

Higher net pricing was reflected across all categories driven by pricing actions taken in the first six months of 2022.

The January 3, 2022 acquisition of Chipita added incremental net revenues of $16 million in the first six months of 2022.

Unfavorable volume/mix was driven by by a decline in biscuits which primarily reflected the impact of supply chain constraints on volume, mostly offset by gains in candy, chocolate and gum.

Segment operating income increased $102 million (28.1%), primarily due to higher net pricing, lower costs incurred for the Simplify to Grow Program and the impact of acquisitions.

These favorable items were partially offset by higher raw material costs, lapping the prior-year net benefit from acquisition integration costs and contingent consideration adjustments, higher manufacturing costs, inventory step-up charges incurred in 2022, higher advertising and consumer promotion costs, unfavorable volume/mix and higher other selling, general and administrative expenses.

Nine Months Ended September 30:

Net revenues increased $758 million (12.4%), due to higher net pricing (10.1 pp) and the impact of acquisitions (3.0 pp), partially offset by unfavorable volume/mix (0.4 pp) and unfavorable currency (0.3 pp).

Higher net pricing was reflected across all categories driven by pricing actions taken in the first nine months of 2022.

Unfavorable volume/mix was driven by a decline in biscuits which primarily reflected the impact of supply chain constraints on volume, mostly offset by gains in candy, gum and chocolate.

Unfavorable currency impact was due to the strength of the U.S.

dollar relative to the Canadian dollar.

Segment operating income increased $303 million (53.3%), primarily due to higher net pricing, lower costs incurred for the Simplify to Grow Program and lapping a prior-year intangible asset impairment charge.

These favorable items were partially offset by higher raw material costs, higher manufacturing costs, unfavorable volume/mix and higher advertising and consumer promotion costs.

Segment operating income increased $405 million (43.5%), primarily due to higher net pricing, lower costs incurred for the Simplify to Grow Program, lapping a prior-year intangible asset impairment charge and the impact of acquisitions.

These favorable items were partially offset by higher raw material costs, higher manufacturing costs, lapping the prior-year net benefit from acquisition integration costs and contingent consideration adjustments, unfavorable volume/mix, higher advertising and consumer promotion costs, inventory step-up charges incurred in 2022 and higher other selling, general and administrative expenses.

Liquidity and Capital Resources

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Our most significant ongoing short-term cash requirements relate primarily to funding operations (including expenditures for raw materials, labor, manufacturing and distribution, trade and promotions, advertising and marketing, tax liabilities, benefit plan obligations and lease expenses) as well as periodic expenditures for acquisitions, shareholder returns (such as dividend payments and share repurchases) and property, plant and equipment.

Clif Bar and Ricolino Acquisitions

On June 20, 2022, we announced an agreement to acquire Clif Bar for approximately $2.9 billion.

The possible payments range from zero to a maximum total of $2.4 billion, with higher payouts requiring the achievement of targets that generate rates of returns in excess of the base financial projections.

The transaction is expected to close in the third quarter of 2022.

On April 24, 2022, we also announced our planned acquisition of Ricolino, which we expect to close in the second half of 2022 for an estimated purchase price of approximately $1.3 billion.

We expect to fund both acquisitions through a combination of cash on hand, debt issuances, commercial paper borrowings and bank term loans.

Refer to Note 2, Acquisitions and Divestitures , for additional details.

Long-term cash requirements primarily relate to funding long-term debt repayments (refer to Note 8, Debt and Borrowing Arrangements ), our U.S.

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Our cash flow activity is noted below:

Six months ended June 30, 2022

Nine months ended September 30, 2022

Net cash provided by operating activities $ 2,516 $ 2,720

Net cash used in investing activities $ (999) $ (220)

Net cash (used in)/provided by investing activities $ (3,410) $ 106

Net cash used in financing activities $ (297) $ (2,971)

Net Cash Provided by Operating Activities:

The increase in net cash provided by operating activities was due primarily to lower year-over-year working capital requirements, higher dividends received from our equity method investments and lower payments to benefit plans than in the same prior-year period.

Net Cash Used in Investing Activities:

The increase in net cash used in investing activities was largely driven by higher cash payments for acquisitions, including $1.4 billion cash consideration paid for the Chipita acquisition during January 2022 relative to $833 million paid in the prior-year to acquire Gourmet Food, Grenade and Hu (refer to Note 2, Acquisitions and Divestitures ), as well as lower proceeds from sales of equity method investments than in the prior-year period (refer to Note 6, Equity Method Investments ), partially offset by proceeds from the settlement and replacement of net investment hedge derivative contracts and lower capital expenditures.

The decrease in net cash provided by operating activities was due primarily to lower cash basis net earnings driven in part by the compensation expense charge related to the non-vested ESOP shares acquired in the Clif Bar acquisition, partially offset by lower year-over-year working capital requirements and lower payments to benefit plans than in the same prior-year period.

Net Cash (Used in)/Provided by Investing Activities:

The increase in net cash used in investing activities was largely driven by higher cash payments for acquisitions, including $1.4 billion cash consideration paid for the Chipita acquisition during January 2022 and $2.6 billion cash consideration paid for the Clif Bar acquisition during August 2022 relative to $833 million paid in the prior-year to acquire Gourmet Food, Grenade and Hu (refer to Note 2, Acquisitions and Divestitures ), as well as lower proceeds from sales of equity method investments than in the prior-year period (refer to Note 6, Equity Method Investments ), partially offset by proceeds from the settlement and replacement of net investment hedge derivative contracts.

We continue to make capital expenditures primarily to modernize manufacturing facilities, support new product and productivity initiatives and fund strategic priorities.

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Net Cash Used in Financing Activities:

The decrease in cash used in financing activities was primarily due to lower net debt repayments in 2022 to date as we largely refinanced debt during the first quarter of 2022 with lower interest rate debt and we lapped higher net long-term debt repayments in the prior-year, partially offset primarily by higher dividends paid in the first six months of 2022 than in the same prior-year period.

The decrease in cash used in financing activities was primarily due to lower net debt repayments in 2022 to date as we refinanced debt during the first quarter of 2022 with lower interest rate debt and we lapped higher net long-term debt repayments in the prior-year, partially offset primarily by higher dividends paid in the first nine months of 2022 than in the same prior-year period.

Supply Chain Financing

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Amounts due to our suppliers that elected to participate in the SCF program are included in accounts payable in our consolidated balance sheet.

We have been informed by the participating financial institutions that as of June 30, 2022 and June 30, 2021, $2.1 billion and $2.5 billion, respectively, of our accounts payable to suppliers that participate in the SCF programs are outstanding.

We have been informed by the participating financial institutions that as of September 30, 2022 and September 30, 2021, $2.1 billion and $2.4 billion, respectively, of our outstanding accounts payable relate to suppliers that participate in the SCF programs.

As discussed in Note 12, Commitments and Contingencies , we enter into third-party guarantees primarily to cover the long-term obligations of our vendors.

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

At June 30, 2022, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

At September 30, 2022, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

Guarantees do not have, and we do not expect them to have, a material effect on our liquidity.

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As such, we may issue commercial paper or secure other forms of financing throughout the year to meet short-term working capital or other financing needs.

Refer to Note 8, Debt and Borrowing Arrangements , for details of our debt activity during the first six months of 2022.

In the next 12 months, we expect to repay approximately $0.7 billion of maturing long-term debt including $0.2 billion in July 2022 and $0.5 billion in September 2022.

Refer to Note 8, Debt and Borrowing Arrangements , for details of our debt activity during the first nine months of 2022.

We fund ongoing debt maturities and other long-term obligations using cash on hand or we may refinance obligations with long-term debt or short-term financing (such as our commercial paper borrowings) depending on financing available, timing considerations, flexibility to raise funding and the cost of financing.

During December 2021, our Board of Directors approved a $7 billion long-term financing authority to replace the prior $6 billion authority.

As of June 30, 2022, $3 billion of the long-term financing authorization remained available.

On July 11, 2022 we entered into a new $2 billion term loan facility.

At its July 2022 meeting, the Board of Directors approved a new $2 billion long-term financing authorization that replaced the prior long-term financing authorization.

At its July 2022 meeting, the Board of Directors approved a new $2 billion long-term financing authorization that replaced the prior long-term financing authorization of $7 billion.

As of September 30, 2022, $1.5 billion of the long-term financing authorization remained available.

Refer to Note 8, Debt and Borrowing Arrangements .

Our total debt was $19.2 billion at June 30, 2022 and $19.5 billion at December 31, 2021.

Our debt-to-capitalization ratio was 0.41 at June 30, 2022 and 0.41 at December 31, 2021.

At June 30, 2022, the weighted-average term of our outstanding long-term debt was 9.1 years.

Our average daily commercial paper borrowings outstanding were $1.2 billion in the first six months of 2022 and $0.6 billion in the first six months of 2021.

We had commercial paper outstanding totaling $0.5 billion as of June 30, 2022 and $0.2 billion as of December 31, 2021.

Our total debt was $21.7 billion at September 30, 2022 and $19.5 billion at December 31, 2021.

Our debt-to-capitalization ratio was 0.45 at September 30, 2022 and 0.41 at December 31, 2021.

At September 30, 2022, the weighted-average term of our outstanding long-term debt was 8.4 years.

Our average daily commercial paper borrowings outstanding were $1.4 billion in the first nine months of 2022 and $0.5 billion in the first nine months of 2021.

We had commercial paper outstanding totaling $1.7 billion as of September 30, 2022 and $0.2 billion as of December 31, 2021.

We expect to continue to use cash or commercial paper to finance various short-term financing needs.

Through June 30, 2022, we continue to comply with our debt covenants.

Through September 30, 2022, we continue to comply with our debt covenants.

One of our subsidiaries, Mondelez International Holdings Netherlands B.V.

(“MIHN”), has outstanding debt.

The operations held by MIHN generated approximately 73.3% (or $11.0 billion) of the $15.0 billion of consolidated net revenue in the six months ended June 30, 2022.

The operations held by MIHN represented approximately 82.2% (or $22.7 billion) of the $27.6 billion of net assets as of June 30, 2022 and 79.2% (or $22.4 billion) of the $28.3 billion of net assets as of December 31, 2021.

The operations held by MIHN generated approximately 72.4% (or $16.5 billion) of the $22.8 billion of consolidated net revenue in the nine months ended September 30, 2022.

The operations held by MIHN represented approximately 82.0% (or $21.9 billion) of the $26.7 billion of net assets as of September 30, 2022 and 79.2% (or $22.4 billion) of the $28.3 billion of net assets as of December 31, 2021.

Refer to Note 8, Debt and Borrowing Arrangements, for more information on our debt and debt covenants.

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We regularly monitor worldwide supply, commodity cost and currency trends so we can cost-effectively secure ingredients, packaging and fuel required for production.

During the first six months of 2022, the primary drivers of the increase in our aggregate commodity costs were higher packaging, dairy, edible oils, energy, grains, sugar, nuts and other ingredient costs, partially offset by favorable year-over-year currency exchange transaction costs on imported materials and lower cocoa costs.

During the first nine months of 2022, the primary drivers of the increase in our aggregate commodity costs were higher packaging, dairy, edible oils, energy, grains, sugar, nuts and other ingredient costs, partially offset by lower cocoa costs and favorable year-over-year currency exchange transaction costs on imported materials.

A number of external factors such as the COVID-19 global pandemic, effects of the war in Ukraine, climate and weather conditions, commodity, transportation and labor market conditions, currency fluctuations and the effects of governmental agricultural or other programs affect the cost and availability of raw materials and agricultural materials used in our products.

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Due to competitive or market conditions, planned trade or promotional incentives, fluctuations in currency exchange rates or other factors, our pricing actions may also lag commodity cost changes temporarily.

As a result of international supply chain, transportation and labor market disruptions and generally higher commodity, transportation and labor costs in the first six months of 2022, we expect price volatility and a higher aggregate cost environment to continue in the remainder of 2022.

As a result of international supply chain, transportation and labor market disruptions and generally higher commodity, transportation and labor costs in the first nine months of 2022, we expect price volatility and a higher aggregate cost environment to continue in the remainder of 2022.

While the costs of our principal raw materials fluctuate, we believe there will continue to be an adequate supply of the raw materials we use and that they will generally remain available.

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Stock Plans and Share Repurchases:

See Note 11, Stock Plans , to our condensed consolidated financial statements and Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds , for more information on our stock plans, grant activity and share repurchase program for the six months ended June 30, 2022.

As of June 30, 2022, our Board of Directors has authorized share repurchases up to $23.7 billion through December 31, 2023.

Under this program, we have repurchased approximately $21.5 billion of shares through June 30, 2022 ($1.5 billion in the first six months of 2022, $2.1 billion in 2021, $1.4 billion in 2020, $1.5 billion in 2019, $2.0 billion in 2018, $2.2 billion in 2017, $2.6 billion in 2016, $3.6 billion in 2015, $1.9 billion in 2014 and $2.7 billion in 2013), at a weighted-average cost of $43.00 per share.

The number of shares that we ultimately repurchase under our share repurchase program may vary depending on numerous factors, including share price and other market conditions, our ongoing capital allocation planning, levels of cash and debt balances, other demands for cash, such as acquisition activity, general economic or business conditions and Board and management discretion.

As of September 30, 2022, our Board of Directors has authorized share repurchases up to $23.7 billion through December 31, 2023.

Under this program, we have repurchased approximately $21.9 billion of shares through September 30, 2022.

Of which, we repurchased $1.8 billion in the first nine months of 2022, $2.1 billion in 2021, $1.4 billion in 2020 and a total of $16.5 billion in the years 2013 through 2019, at a weighted-average cost per share.

Additionally, our share repurchase activity during any particular period may fluctuate.

We may accelerate, suspend, delay or discontinue our share repurchase program at any time, without notice.

We paid dividends of $977 million in the first six months of 2022 and $896 million in the first six months of 2021.

second quarter 2022 dividend of $0.35 per share, declared on May 18, 2022 for shareholders of record as of June

30, 2022, was paid on July 14, 2022.

On July 26, 2022, the Audit Committee, with authorization delegated from our Board of Directors, declared a quarterly cash dividend of $0.385 per share of Class A Common Stock, an increase of 10 percent.

This dividend is payable on October 14, 2022, to shareholders of record as of September 30, 2022.

We paid dividends of $1,457 million in the first nine months of 2022 and $1,337 million in the first nine months of 2021.

The third quarter 2022 dividend of $0.385 per share, declared on July 26, 2022 for shareholders of record as of September 30, 2022, was paid on October 14, 2022.

The declaration of dividends is subject to the discretion of our Board of Directors and depends on various factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of Directors deems relevant to its analysis and decision making.

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This report contains a number of forward-looking statements.

Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “seek,” “aim,” “potential,” “outlook” and similar expressions are intended to identify our forward-looking statements, including but not limited to statements about:

Words, and variations of words, such as “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “seek,” “aim,” "target," “potential,” “outlook” and similar expressions are intended to identify our forward-looking statements, including but not limited to statements about:

the impact on our business of the war in Ukraine and current and future sanctions imposed by governments or other authorities, including the impact on matters such as costs, markets, the global economic environment, availability of commodities, demand, supplying our Ukraine business's customers and consumers, impairments, continuation of and our ability to control our operating activities and businesses in Russia and Ukraine, and our operating results;

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price volatility, inflation and pricing actions;

our strategic priorities and growth strategy;

our future performance, including our future revenue and earnings growth;

our strategy to accelerate consumer-centric growth, drive operational excellence, create a winning growth culture and scale sustainable snacking;

plans to reshape our portfolio and extend our leadership positions in chocolate and biscuits as well as baked snacks;

plans to further enable our growth by investing in our strong and inclusive talent, brand portfolio and digital technologies and skills, as well as our sales and marketing capabilities;

plans to divest our developed market gum and global Halls candy businesses;

anticipated closing of planned acquisitions of Clif Bar and Ricolino;

plans to divest our developed market gum and global Halls businesses;

our strategic transactions and initiatives;

our leadership position in snacking;

volatility in global consumer, commodity, transportation, labor, currency and capital markets;

political, business and economic conditions and volatility;

volatility in global consumer, commodity, supply, transportation, labor and currency;

the cost environment, including higher labor, customer service, commodity, operating, transportation and other costs;

factors affecting costs and measures we are taking to address increased costs;

supply, transportation and labor disruptions and constraints;

volatility in the natural gas and electricity markets in Europe;

consumer behavior, consumption and demand trends and our business in developed and emerging markets, our channels, our brands and our categories;

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the costs of, timing of expenditures under and completion of our restructuring program;

consumer snacking behaviors;

commodity prices, supply and availability;

our investments and our ownership interests in those investments, including JDE Peet's and KDP;

political, business and economic conditions and volatility;

our investments and our

ownership interests in those investments, including JDE Peet's and KDP;

currency exchange rates, controls and restrictions, volatility in foreign currencies and the effect of currency translation on our results of operations;

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Important factors that could cause our actual results to differ materially from those described in our forward-looking statements include, but are not limited to, the impact of ongoing or new developments in the war in Ukraine, related current and future sanctions imposed by governments and other authorities, and related impacts on our business, growth, employees, reputation, prospects, financial condition, operating results (including components of our financial results), cash flows and liquidity;

uncertainty about the effectiveness of efforts by health officials and governments to control the spread of COVID-19 and inoculate and treat populations impacted by COVID-19;

uncertainty about the reimposition or lessening of restrictions imposed by governments intended to mitigate the spread of COVID-19 and the magnitude, duration, geographic reach and impact on the global economy of COVID-19;

the ongoing, and uncertain future, impact of the COVID-19 pandemic on our business, growth, employees, reputation, prospects, financial condition, operating results (including components of our financial results), cash flows and liquidity;

risks from operating globally including in emerging markets;

global or regional health pandemics or epidemics, including COVID-19;

risks from operating globally including in emerging markets, including political, economic and regulatory risks;

changes in currency exchange rates, controls and restrictions;

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weakness in consumer spending;

inflation (and related monetary policy actions by governments in response to inflation);

pricing actions;

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unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and our compliance with privacy and data security laws;

global or regional health pandemics or epidemics, including COVID-19;

competition and our response to channel shifts and pricing and other competitive pressures;

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the impact of climate change on our supply chain and operations;

our ability to complete, manage and realize the full extent of the benefits, cost savings or synergies presented by strategic transactions, including our planned acquisitions of Clif Bar and Ricolino and our recently completed acquisitions of Chipita, Gourmet Food and Grenade;

our ability to access the debt capital markets to fund a portion of the consideration for the pending acquisitions of Clif Bar and Ricolino;

our ability to identify, complete, manage and realize the full extent of the benefits, cost savings or synergies presented by strategic transactions, including our recently completed acquisitions of Chipita, Gourmet Food, Grenade, Clif Bar and Ricolino;

significant changes in valuation factors that may adversely affect our impairment testing of goodwill and intangible assets;

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our ability to protect our intellectual property and intangible assets;

and the risks and uncertainties, as they may be amended from time to

time, set forth in our filings with the U.S.

Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the period ended March 31, 2022.

and the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S.

Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.

There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make.

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We use non-GAAP financial measures to budget, make operating and strategic decisions and evaluate our performance.

We have detailed the non-GAAP adjustments that we make in our non-GAAP definitions below.

We have detailed the non-GAAP

adjustments that we make in our non-GAAP definitions below.

The adjustments generally fall within the following categories:

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GAAP financial measures.

We have provided the reconciliations between the GAAP and non-GAAP financial measures below, and we also discuss our underlying GAAP results throughout our Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.

We have provided the reconciliations between the U.S.

GAAP and non-GAAP financial measures below, and we also discuss our underlying U.S.

GAAP results throughout our Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.

Our primary non-GAAP financial measures are listed below and reflect how we evaluate our current and prior-year operating results.

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divestiture (2) or acquisition gains or losses, divestiture-related costs (5) , acquisition-related costs (6) , and acquisition integration costs and contingent consideration adjustments (7) ;

inventory step-up charges (8) ;

the operating results of divestitures (2) ;

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(1) When items no longer impact our current or future presentation of non-GAAP operating results, we remove these items from our non-GAAP definitions.

In the first quarter of 2022, we added to the non-GAAP definitions the exclusion of incremental costs due to the war in Ukraine (refer to footnote (10) below), and in the second quarter of 2022, we added to the non-GAAP definitions the exclusion of costs incurred associated with our publicly-announced processes to sell businesses (refer to footnote (5) below).

In the first quarter of 2022, we added to the non-GAAP definitions the exclusion of incremental costs due to the war in Ukraine (refer to footnote (12) below), in the second quarter of 2022, we added to the non-GAAP definitions the exclusion of costs incurred associated with our publicly-announced processes to sell businesses (refer to footnote (5) below) and in the third quarter of 2022, we added to the non-GAAP definitions the exclusion of inventory step-up charges associated with acquisitions (refer to footnote (8) below).

(2) Divestitures include completed sales of businesses, exits of major product lines upon completion of a sale or licensing agreement and the partial or full sale of an equity method investment such as KDP or JDE Peet's.

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We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

(6) Acquisition-related costs, which includes transaction costs such as third party advisor, investment banking and legal fees, also includes one-time compensation expense related to the buyout of non-vested ESOP shares.

We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

(7) Acquisition integration costs and contingent consideration adjustments include one-time costs related to the integration of acquisitions as well as any adjustments made to the fair market value of contingent compensation liabilities that have been previously booked for earn-outs related to acquisitions that do not relate to employee compensation expense.

We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

(8) In the third quarter of 2022, we began to exclude the one-time inventory step-up charges associated with acquired companies related to the fair market valuation of the acquired inventory.

We exclude this item to better facilitate comparisons of our underlying operating performance across periods.

(9) In connection with our applying highly inflationary accounting (refer to Note 1, Basis of Presentation ) for Argentina (beginning in the third quarter of 2018) and Türkiye (beginning in the second quarter of 2022), we exclude the related remeasurement gains or losses related to remeasuring net monetary assets or liabilities denominated in the local currency to the U.S.

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Our use of equity method investment net earnings on an adjusted basis is not intended to imply that we have any such control.

Our GAAP “diluted EPS attributable to Mondelēz International from continuing operations” includes all of the investees’ significant operating and non-operating items.

GAAP “diluted EPS attributable to Mondelēz International from continuing operations” includes all of the investees’ significant operating and non-operating items.

We believe that the presentation of these non-GAAP financial measures, when considered together with our U.S.

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We also evaluate our Organic Net Revenue growth from emerging markets and developed markets, and these underlying measures are also reconciled to U.S.

For the Three Months Ended June 30, 2022 For the Three Months Ended June 30, 2021

For the Three Months Ended September 30, 2022 For the Three Months Ended September 30, 2021

Markets Developed

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Impact of acquisitions (125) (209) (334) — — —

Impact of divestiture — — — — (14) (14)

Impact of divestitures (1) — (1) (11) (16) (27)

Organic Net Revenue $ 3,200 $ 4,818 $ 8,018 $ 2,573 $ 4,582 $ 7,155

Six Months Ended June 30, 2022

Six Months Ended June 30, 2021

For the Nine Months Ended September 30, 2022 For the Nine Months Ended September 30, 2021

Markets Developed

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Impact of acquisitions (376) (362) (738) — — —

Impact of divestiture — — — — (14) (14)

Impact of divestitures (22) — (22) (28) (30) (58)

Organic Net Revenue $ 8,973 $ 14,373 $ 23,346 $ 7,412 $ 13,592 $ 21,004

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acquisition integration costs and contingent consideration adjustments;

inventory step-up charges:

acquisition-related costs;

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For the Three Months Ended

September 30,

2022 2021 $ Change % Change

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Mark-to-market losses/(gains) from derivatives (3)

186 (132) 318

Acquisition integration costs and

contingent consideration adjustments (4)

Inventory step-up 20 — 20

Acquisition-related costs (4)

Divestiture-related costs (4)

Operating income from divestiture (4)

Operating income from divestitures (4)

Incremental costs due to war in Ukraine (5)

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Impact from pension participation changes (6)

Impact from resolution of tax matters (7)

Adjusted Operating Income $ 1,253 $ 1,230 $ 23 1.9 %

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Adjusted Operating Income (constant currency) $ 1,348 $ 1,230 $ 118 9.6 %

For the Six Months Ended

For the Nine Months Ended

September 30,

2022 2021 $ Change % Change

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Mark-to-market losses/(gains) from derivatives (3)

268 (270) 538

Acquisition integration costs and

contingent consideration adjustments (4)

Inventory step-up (4)

Acquisition-related costs (4)

Divestiture-related costs (4)

Operating income from divestiture (4)

Gain on acquisition (4)

Remeasurement of net monetary position (5)

Divestiture-related costs (4)

Operating income from divestitures (4)

Incremental costs due to war in Ukraine (5)

Remeasurement of net monetary position (5)

Impact from pension participation changes (6)

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(3) Refer to Note 9, Financial Instruments , Note 16, Segment Reporting , and the Non-GAAP Financial Measures section for more information on the unrealized gains/losses on commodity, forecasted currency and equity method investment transaction derivatives.

(4) Refer to Note 2, Acquisitions and Divestitures , for more information on the January 3, 2022 acquisition of Chipita, the November 1, 2021 sale of MaxFoods Pty Ltd, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.

(4) Refer to Note 2, Acquisitions and Divestitures , for more information on the August 1, 2022 acquisition of Clif Bar, the January 3, 2022 acquisition of Chipita, the November 1, 2021 sale of MaxFoods Pty Ltd, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.

(5) Refer to Note 1, Basis of Presentation, for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

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For the Three Months Ended

September 30,

2022 2021 $ Change % Change

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Intangible asset impairment charge (2)

— 0.02 (0.02)

Mark-to-market losses/(gains) from derivatives (2)

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contingent consideration adjustments (2)

0.02 (0.03) 0.05

Inventory step-up 0.01 — 0.01

Acquisition-related costs (2)

Net earnings from divestitures (3)

— (0.01) 0.01

Remeasurement of net monetary position (2)

Impact from pension participation changes (2)

— 0.02 (0.02)

Incremental costs due to war in Ukraine (2)

(0.01) — (0.01)

Initial impacts from enacted tax law changes (4)

0.01 0.07 (0.06)

Loss/(gain) on equity method investment transactions (5)

— (0.13) 0.13

Equity method investee items (5)

(0.01) — (0.01)

Adjusted EPS $ 0.74 $ 0.70 $ 0.04 5.7 %

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Adjusted EPS (constant currency) $ 0.81 $ 0.70 $ 0.11 15.7 %

For the Six Months Ended

For the Nine Months Ended

September 30,

2022 2021 $ Change % Change

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contingent consideration adjustments (2)

0.03 (0.03) 0.06

Inventory step-up (2)

Acquisition-related costs (2)

0.23 0.01 0.22

Net earnings from divestiture (6)

Divestiture-related costs (2)

Net earnings from divestitures (3)

(0.01) (0.03) 0.02

Remeasurement of net monetary position (2)

Incremental costs due to war in Ukraine (2)

Remeasurement of net monetary position (2)

0.02 0.01 0.01

Impact from pension participation changes (2)

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Adjusted EPS (constant currency) $ 2.41 $ 2.14 $ 0.27 12.6 %

(1) The tax expense/(benefit) of each of the pre-tax items excluded from our GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS.

• For the three months ended June 30, 2022, taxes for the:

Simplify to Grow Program were $(6) million, mark-to-market losses from derivatives were $(14) million, acquisition integration costs and contingent consideration adjustments were $(1) million, remeasurement of net monetary position were zero, incremental costs due to the war in Ukraine were zero, initial impacts from enacted tax law changes were $9 million, loss on equity method transactions were zero and equity method investee items were $2 million.

• For the three months ended June 30, 2021, taxes for the:

Simplify to Grow Program were $(35) million, intangible asset impairment charge was $(8) million, mark-to-market gains from derivatives were $(4) million, acquisition-related costs were $(3) million, impact from pension participation changes were $(7) million, initial impacts from enacted tax law changes were $95 million and gain on equity method investment transactions were $125 million.

• For the six months ended June 30, 2022, taxes for the:

Simplify to Grow Program were $(13) million, intangible asset impairment charge was $(19) million, mark-to-market losses from derivatives were $(19) million, acquisition integration costs and contingent consideration adjustments were $(51) million, acquisition-related costs were $(3) million, remeasurement of net monetary position were zero, incremental costs due to the war in Ukraine were $2 million, loss on debt extinguishment and related expenses were $(31) million, initial impacts from enacted tax law changes were $9 million, loss on equity method investment transactions were zero and equity method investee items were $5 million.

• For the six months ended June 30, 2021, taxes for the:

Simplify to Grow Program were $(66) million, intangible asset impairment charge was $(8) million, mark-to-market gains from derivatives were $18 million, acquisition-related costs were $(4) million, net earnings from divestitures were $6 million, impact from pension participation changes were $(8) million, loss on debt extinguishment and related expenses were $(34) million, initial impacts from enacted tax changes were $99 million, gain on equity method investment transactions were $125 million and equity method investee items were $(3) million.

(1) The tax expense/(benefit) of each of the pre-tax items excluded from our U.S.

GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS.

• For the three months ended September 30, 2022, taxes for the:

Simplify to Grow Program were $(3) million, intangible asset impairment charges were $(6) million, mark-to-market losses from derivatives were $(22) million, acquisition integration costs and contingent consideration adjustments were $(6) million, inventory step-up charges were $(5) million, acquisition-related costs were zero, remeasurement of net monetary position were zero and initial impacts from enacted tax law changes were $13 million.

• For the three months ended September 30, 2021, taxes for the:

Simplify to Grow Program were $(32) million, mark-to-market gains from derivatives were $24 million, acquisition integration costs and contingent consideration adjustments were $15 million, net earnings from divestitures were $4 million and gain on equity method transactions were $59 million.

• For the nine months ended September 30, 2022, taxes for the:

Simplify to Grow Program were $(16) million, intangible asset impairment charge was $(25) million, mark-to-market losses from derivatives were $(41) million, acquisition integration costs and contingent consideration adjustments were $(57) million, inventory step-up charges were $(5) million, acquisition-related costs were $(3) million, divestiture-related costs were $(3) million, remeasurement of net monetary position were zero, incremental costs due to the war in Ukraine were $4 million, loss on debt extinguishment and related expenses were $(31) million, initial impacts from enacted tax law changes were $22 million, loss on equity method investment transactions were $1 million and equity method investee items were $1 million.

• For the nine months ended September 30, 2021, taxes for the:

Simplify to Grow Program were $(98) million, intangible asset impairment charges were $(8) million, mark-to-market gains from derivatives were $42 million, acquisition-related costs were $(4) million, acquisition integration costs and contingent consideration adjustments were $14 million, net earnings from divestitures were $11 million, remeasurement of net monetary position were zero, impact from pension participation changes were $(8) million, loss on debt extinguishment were $(34) million, initial impacts from enacted tax law changes were $95 million, gain on equity method investment transactions were $184 million and equity method investee items were $(3) million.

(2) See the Adjusted Operating Income table above and the related footnotes for more information.

(3) Includes the impact from 2021 sales of a portion of our equity method investment in KDP and our second quarter 2022 sale of a portion of our equity method investment in JDE Peet's as if the sales occurred at the beginning of all periods presented.

(4) Refer to Note 14, Income Taxes , and the Non-GAAP Financial Measures section for more information on the impact.

(5) Refer to Note 6, Equity Method Investments, for more information on the gains and losses on equity method investment transactions.

(5) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees, such as acquisition and divestiture-related costs and restructuring program costs.

(6) Includes the impact from 2021 partial sales of our equity method investments in KDP as if the sales occurred at the beginning of all periods presented.

The second quarter 2022 sale of JDE Peet's shares will be reflected on a lag basis in the third quarter of 2022.

(6) Refer to Note 8, Debt and Borrowing Arrangements , for more information on the loss on debt extinguishment and related expenses.

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 2. Management’s Discussion and Analysis