1 unchanged sentence
Description of the Company
−Removed: We make and sell primarily snacks, including biscuits, chocolate, gum & candy as well as various cheese & grocery and powdered beverage products around the world.
+Added: Our core business is making and selling chocolate, biscuits and baked snacks, with additional businesses in adjacent, locally relevant categories including gum & candy, cheese & grocery and powdered beverages around the world.
We aim to be the global leader in snacking.
−Removed: In May 2022, we announced the evolution of our strategy to drive long-term growth by focusing on four strategic pillars and priorities:
+Added: Our strategy is to drive long-term growth by focusing on four strategic priorities:
accelerating consumer-centric growth, driving operational excellence, creating a winning growth culture and scaling sustainable snacking.
−Removed: We also announced our plans to reshape our portfolio, with a focus on extending our leadership positions in chocolate and biscuits as well as baked snacks.
−Removed: We seek 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.
−Removed: We believe the successful implementation of our strategic priorities and leveraging of our strong foundation of iconic global and local brands, an attractive global footprint, our market leadership in developed and emerging markets, our deep innovation, marketing and distribution capabilities, and our efficiency and sustainability efforts, will drive top- and bottom-line growth, enabling us to continue to create long-term value for our shareholders.
+Added: We believe the successful implementation of our strategic priorities and leveraging of our attractive global footprint, strong core of iconic global and local brands, marketing, sales, distribution and cost excellence capabilities, and top talent with a growth mindset, will drive consistent top- and bottom-line growth, enabling us to continue to create long-term value for our shareholders.
Recent Developments and Significant Items Affecting Comparability
+Added: Macroeconomic environment
+Added: We continue to observe significant market uncertainty, increasing inflationary pressures, supply constraints, exchange rate volatility as well as ongoing effects from the COVID-19 pandemic.
+Added: Throughout the pandemic, we experienced an overall increase in demand and revenue growth as consumers increased their food purchases for in-home consumption in some markets, while parts of our business were negatively affected by related lockdowns and restrictions.
+Added: Additionally, 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.
+Added: Our overall outlook for future snacks revenue growth remains strong;
+Added: however, we anticipate ongoing volatility in response to supply chain issues, including labor and transportation constraints, and COVID-related risks.
+Added: 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.
+Added: We continue to take steps to mitigate impacts to our supply chain, operations, technology and assets.
War in Ukraine
1 unchanged sentence
For the safety of our employees, we stopped production and closed our facilities in Ukraine;
−Removed: We are providing all of our employees with compensation and with help in securing shelter in neighboring countries.
+Added: since then we have been gradually restoring operations, continuing to take steps to protect the safety of our employees and partially re-opening our two plants.
+Added: We are providing all of our employees with compensation and with help in securing shelter in neighboring countries, where required and needed.
We have also made cash and in-kind donations to several humanitarian aid organizations in the region.
In March 2022, our two Ukrainian manufacturing facilities in Trostyanets and Vyshhorod were significantly damaged.
−Removed: 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).
−Removed: 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.
−Removed: During the second and third quarters of 2022, the war continued through parts of Ukraine.
+Added: During the remainder 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.
−Removed: In late June, we partially reopened the Vyshhorod plant and restarted limited potato chip production.
−Removed: 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.
+Added: In late June, we partially reopened the Vyshhorod plant and restarted limited potato chip production and in late November, we reopened the Trostyanets plant and restarted limited chocolate production.
+Added: We also continue to support our Ukraine employees, including paying salaries to those not yet able to return to work until full production returns.
+Added: See Note 1, Basis of Presentation - War in Ukraine , to the condensed consolidated financial statements, and refer to Items Affecting Comparability of Financial Results for additional information.
As a food company, we continue to work to support the continuity of food supply and provide packaged foods to consumers.
−Removed: We have discontinued new capital investments and suspended our advertising spending in Russia, but as a food company with more than 2,500 employees in Russia, we have not ceased operations given we believe we play a role in the continuity of the food supply.
−Removed: We are required to comply with applicable international sanctions and other measures that have been or may be imposed on Russian entities.
+Added: We have suspended new capital investments and our advertising spending in Russia, but as a food company with more than 2,500 employees in the country, we have not ceased operations given we believe we play a role in the continuity of the food supply.
+Added: We are complying and will comply with applicable international sanctions and other measures that have been or may be imposed on Russian entities.
We continue to evaluate the situation in Ukraine and Russia and our ability to control our operating activities and businesses on an ongoing basis, and we continue to consolidate both our Ukrainian and Russian subsidiaries.
−Removed: Prior to the onset of the war, Ukraine generated 0.5% and Russia generated 2.9% of 2021 consolidated net revenues.
−Removed: During the nine months ended September 30, 2022, Ukraine generated 0.3% and Russia generated 3.6% of consolidated net revenue.
−Removed: Our Russian business has grown as a result of the recent strengthening of the Russian ruble versus the U.S.
−Removed: dollar and increased demand for packaged foods.
−Removed: The war has not had a material impact on our Russian business through the first nine months of 2022.
−Removed: 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 .
−Removed: COVID-19 and Inflationary Cost Environment
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: We continued to also experience significantly higher operating costs.
−Removed: See additional details on our results in our Discussion and Analysis of Historical Results .
−Removed: 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.
−Removed: As of September 30, 2022, our liquidity remains strong.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Our JDE Peet's and KDP equity method investments also give us additional financial flexibility.
−Removed: 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.
−Removed: We continue to take steps to mitigate impacts to our supply chain, operations, technology and assets.
−Removed: We intend to continue to execute on our new strategic and operating plans as the situation evolves.
−Removed: We seek to further our strategic priorities and position the Company to withstand the current uncertainties and emerge stronger.
+Added: During the first quarter of 2022, Ukraine generated 0.3% and Russia generated 2.4% of consolidated net revenue and during the first quarter of 2023, Ukraine generated 0.4% and Russia generated 2.8% of consolidated net revenue.
+Added: Our Russian business has grown
+Added: as a result of the stronger Russian ruble versus the U.S.
+Added: dollar at the start of 2023 and increased price.
+Added: The combination of pricing, suspension of advertising and ruble strength has resulted in a significant increase in the profitability of the Russian business and contributed to the growth of our consolidated performance.
+Added: Our decision to suspend new capital investments in Russia has not had a material impact on our ability to meet demand within our Russian business during 2023.
+Added: We believe the war in Ukraine has had a negative impact on our business throughout the rest of our Europe operating segment, but the impact of this is difficult to quantify.
+Added: We cannot predict if the recent strength in our Russian business will continue in the future.
Acquisitions and Divestitures
−Removed: During the second quarter of 2022, we announced our intention to divest our developed market gum and global Halls candy businesses.
−Removed: Refer to Financial Outlook below for additional details.
−Removed: 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.
−Removed: On August 1, 2022, we completed our acquisition of Clif Bar, a leading U.S.
+Added: During 2022, we completed the following acquisitions to strategically complement and expand our existing portfolio:
+Added: • Ricolino, a confectionery business with products sold primarily in Mexico
+Added: • Clif Bar & Company (“Clif Bar”), a leading U.S.
maker of nutritious energy bars with organic ingredients
−Removed: 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.
−Removed: On January 3, 2022, we completed our acquisition of Chipita Global S.A.
−Removed: ("Chipita"), which is a strategic complement to our existing snacks portfolio and advances our strategy to become the global leader in broader snacking.
−Removed: 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).
−Removed: 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.
−Removed: JDE Peet's and KDP Equity Method Investment Transactions
−Removed: On May 8, 2022, we sold approximately 18.6 million JDE Peet's shares directly back to JDE Peet's, which reduced our ownership interest to 19.8%.
−Removed: We received €500 million ($529 million) of proceeds and recorded a loss of €8 million ($8 million) on this sale during the second quarter of 2022.
−Removed: On June 7, 2021, we participated in a secondary offering of KDP shares and sold approximately 28 million shares, which reduced our ownership interest to 6.4% of the total outstanding shares.
−Removed: 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.
−Removed: On August 2, 2021, we sold approximately 14.7 million KDP shares, which reduced our ownership interest to 5.3%.
−Removed: 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.
−Removed: The cash taxes associated with both KDP share sales were paid in 2021.
−Removed: Summary of Results
−Removed: • 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.
−Removed: 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.
−Removed: 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.
−Removed: • 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.
−Removed: During the third quarter and first nine months of 2022, Organic Net Revenue grew due to higher net pricing and favorable volume/mix.
−Removed: Refer to our Discussion and Analysis of Historical Results below for additional information.
−Removed: Organic Net Revenue is on a constant currency basis and excludes revenue from acquisitions and divestitures.
−Removed: 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).
−Removed: • 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.
−Removed: – 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.
−Removed: – 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.
−Removed: • 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.
−Removed: 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.
−Removed: – 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.
−Removed: – 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.
−Removed: Adjusted EPS and Adjusted EPS on a constant currency basis are non-GAAP financial measures.
−Removed: We use these measures as they provide improved year-over-year comparability of our underlying results (see the definition of Adjusted EPS and our reconciliation with diluted EPS within Non-GAAP Financial Measures appearing later in this section).
+Added: • Chipita Global S.A.
+Added: ("Chipita"), a high-growth leader in the central and Eastern European croissant and baked snacks category
+Added: Additionally in 2022, we announced our intention to divest our developed market gum and global Halls candy businesses and in the fourth quarter of 2022, we announced an agreement to sell the developed market gum business with an anticipated closing in the fourth quarter of 2023, subject to relevant antitrust approvals and closing conditions.
+Added: Refer to Note 2, Acquisitions and Divestitures , for additional details.
+Added: Investment Transactions
+Added: Keurig Dr Pepper Transactions
+Added: In 2023, we sold approximately 30 million shares, which reduced our ownership interest by 2.1% to 3.2% of the total outstanding shares.
+Added: We recorded a pre-tax gain of $493 million (or $366 million after tax).
+Added: This reduction in ownership, to below 5%, resulted in a change of accounting for our investment, from equity method investment accounting to accounting for equity interests with readily determinable fair values ("marketable securities") as we no longer have significant influence.
+Added: Due to the change of accounting, we reported unrealized gains for marketable securities of $787 million (or $586 million after tax).
+Added: JDE Peet’s Transactions
+Added: On March 30, 2023, we issued options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares.
+Added: These options are exercisable at maturity during the third quarter of 2023 with a potential impact to our ownership if the options are exercised.
+Added: On April 3, 2023, we sold approximately 7.7 million shares of JDEP, which reduced our ownership interest by 1.6% to 18.1%.
+Added: For additional information, refer to Note 6, Investments and Note 9, Financial Instruments.
+Added: Highly Inflationary Accounting
+Added: During the first quarter of 2022, we concluded that Türkiye became a highly inflationary economy for accounting purposes.
+Added: As of April 1, 2022, we began to apply highly inflationary accounting for our subsidiaries operating in Türkiye.
+Added: See Note 1, Basis of Presentation – Currency Translation and Highly Inflationary Accounting for additional details.
+Added: advertising and promotion ban
+Added: 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 October 2025, and new measures restricting certain promotions are expected to go into effect in October 2023.
+Added: Restrictions on in-store placement of some of those products went into effect in October 2022.
+Added: Although we are unable to estimate precisely the impact of the restrictions, they did not have a significant impact on our consolidated financial statements in the first quarter of 2023.
+Added: We continue to monitor existing and potential future tax reform around the world.
+Added: On August 16, 2022, the U.S.
+Added: 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.
+Added: Based on the guidance available thus far, 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.
+Added: We will continue to evaluate it as additional guidance and clarification becomes available.
+Added: We also continue to monitor countries’ progress toward enactment of the Organization of Economic Cooperation and Development’s model rules on a global minimum tax.
+Added: While numerous countries have proposed new legislation in this area (and two countries have enacted it), any new law is only expected to be effective for taxable years beginning after December 31, 2023.
+Added: If broadly enacted, these laws could have a material effect on us.
Financial Outlook
8 unchanged sentences
GAAP results.
−Removed: We have provided reconciliations between our U.S.
−Removed: GAAP and non-GAAP financial measures in Non-GAAP Financial Measures , which appears later in this section.
−Removed: 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.
−Removed: • Market conditions.
−Removed: Snack categories continued to grow in the first nine months of 2022.
−Removed: This is consistent with the latest findings in the third annual State of Snacking report, commissioned by Mondelēz International and issued in January 2022.
−Removed: The research report was conducted in conjunction with consumer poll specialist The Harris Poll and summarizes the findings from interviews with thousands of consumers across 12 countries.
−Removed: The report underscores the growth of snacking worldwide and how behavior, sentiment and routines surrounding food are being reshaped by factors such as the COVID-19 pandemic.
−Removed: Snacking, which was already increasing among consumers, continues to grow as we noted in our latest Annual Report on Form 10-K.
−Removed: Our outlook for future snacks revenue growth remains strong, but we anticipate some volatility in revenues while current events and conditions continue.
−Removed: 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.
−Removed: We continue to monitor volatility across markets, including global consumer, energy and other commodity, transportation, labor, currency and capital markets.
−Removed: 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.
−Removed: 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 .
−Removed: Refer also to Commodity Trends and Item 3, Quantitative and Qualitative Disclosures about Market Risk.
−Removed: • War in Ukraine .
−Removed: We expect to experience heightened volatility and higher costs in international supply chains and global markets (including energy and other commodities, currencies and capital markets) in connection with the war in Ukraine with related negative impacts to our operating results that we cannot fully predict with certainty.
−Removed: We also expect increased inflationary pressures that will adversely impact our operating costs, particularly as the war continues.
−Removed: Demand for our products may also be negatively impacted, particularly in those markets closest to Ukraine or other markets that are more vulnerable to consumer price increases.
−Removed: We have expanded operations in other European facilities and are adapting to continue supplying the majority of our Ukraine business's customers and consumers across Europe.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: We may also experience increased cyber attacks from state sponsored threat actors with ransomware or other type of malware attacks due to a heightened level of malicious cyber activity as a result of the war in Ukraine.
−Removed: While we are working to mitigate negative effects on our business, we may not be able to fully predict or respond to all of the direct or indirect impacts on our business on a timely basis to prevent adverse impacts to our results.
−Removed: We also continue to monitor the situation in Russia and any risks to our employees, operations or assets.
−Removed: Any ongoing or new developments in the war could have a material negative effect on our business and results in the future.
−Removed: • Clif Bar acquisition .
−Removed: On August 1, 2022, we completed our acquisition of Clif Bar for approximately $2.9 billion.
−Removed: 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.
−Removed: 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.
−Removed: In connection with this acquisition, we expect to generate a meaningful cash tax benefit over time from the amortization of acquisition-related intangibles.
−Removed: Refer to Note 2, Acquisitions and Divestitures, and Liquidity and Capital Resources for additional details.
−Removed: • Ricolino acquisition.
−Removed: 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.
−Removed: Refer to Note 2, Acquisitions and Divestitures , and Liquidity and Capital Resources for additional details.
−Removed: • Planned Divestiture of our developed market gum and global Halls businesses.
−Removed: 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.
−Removed: We continue to monitor existing and potential future tax reform around the world.
−Removed: On August 16, 2022, the U.S.
−Removed: 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.
−Removed: 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;
−Removed: we will continue to evaluate it as additional guidance and clarification becomes available.
−Removed: In addition, the Organization of Economic Cooperation and Development (OECD) continues to work toward agreement regarding model rules for a global minimum tax.
−Removed: This could have a material effect on us if enacted.
−Removed: • Türkiye, Argentina and currency volatility .
−Removed: 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.
−Removed: We discuss historical currency impacts in our Discussion and Analysis of Historical Results .
−Removed: 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.
−Removed: 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.
−Removed: Our operations in Türkiye contributed $141 million or 0.6% of our condensed consolidated net revenues in the nine months ended September 30, 2022.
−Removed: 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.
−Removed: We also continue to apply highly inflationary accounting for our Argentinean subsidiaries.
−Removed: 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.
−Removed: The mix of monetary assets and liabilities and the exchange rate to convert Turkish lira and Argentinean pesos to U.S.
−Removed: dollars could change over time, so it is difficult to predict the overall impact of Türkiye and Argentina highly inflationary accounting on future net earnings.
−Removed: advertising and promotion ban.
−Removed: 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.
−Removed: Although we are unable to estimate precisely the impact of the restrictions, they could significantly negatively affect our U.K.
−Removed: results of operations in 2022 and thereafter.
−Removed: In the nine months ended September 30, 2022, we generated 7.9% of our consolidated net revenues in the U.K.
−Removed: • Cybersecurity Risks.
−Removed: Global cybersecurity risks continue to increase and we continue to be on heightened alert and dedicate focused resources to network security, backup and disaster recovery and to provide ongoing workforce training and employ security measures to protect our systems and data.
−Removed: We also continue to monitor threats in our environment, including but not limited to the manufacturing environment and operational technologies, as well as adjusting information security controls based on updated threats.
−Removed: While we have taken security measures to protect our systems and data, security measures cannot provide absolute certainty or guarantee that we will be successful in preventing or responding to every breach or disruption on a timely basis.
+Added: We have provided reconciliations between our GAAP and non-GAAP financial measures in Non-GAAP Financial Measures , which appears later in this section.
+Added: In addition to monitoring our key operating metrics, we monitor developments and trends that could impact our revenue and profitability objectives, as highlighted in our most recently filed Annual Report on Form 10-K for the year ended December 31, 2022.
+Added: Summary of Results
+Added: • Net revenues increased 18.1% to $9.2 billion in the first quarter of 2023 as compared to the same period in the prior year.
+Added: In the first quarter of 2023, 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 2022.
+Added: Overall, our net revenue growth in the first quarter of 2023 was driven by higher net pricing, incremental net revenues from our acquisitions of Clif Bar and Ricolino in 2022 and favorable volume/mix, partially offset by unfavorable currency translation and the impact of divestitures in 2022.
+Added: • Organic Net Revenue, a non-GAAP financial measure, increased 19.4% to $9.3 billion in the first quarter of 2023 as compared to same period in the prior year.
+Added: During the first quarter of 2023, Organic Net Revenue grew due to higher net pricing and favorable volume/mix.
+Added: Organic Net Revenue is on a constant currency basis and excludes revenue from acquisitions and divestitures.
+Added: 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) .
+Added: • Diluted EPS attributable to Mondelēz International increased 149.2% to $1.52 in the first quarter of 2023 as compared to the same period in the prior year.
+Added: Diluted EPS increased in the first quarter of 2023, driven by a mark-to-market gain on marketable securities, gain on equity method investment transactions, lower incremental costs due to the war in Ukraine, an increase in Adjusted EPS, lapping prior-year loss on debt extinguishment, lapping prior-year intangible asset impairment charges, lower acquisition-related costs and favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives.
+Added: These favorable items were partially offset by higher acquisition integration costs and contingent consideration adjustments, higher equity investee items, higher divestiture-related costs, lower net earnings from divestitures and higher remeasurement loss of net monetary position.
+Added: • Adjusted EPS, a non-GAAP financial measure, increased 9.9% to $0.89 in the first quarter of 2023 as compared to the same period in the prior year.
+Added: On a constant currency basis, Adjusted EPS increased 17.3% to $0.95 in the first quarter of 2023 as compared to the same periods in the prior year.
+Added: Adjusted EPS increased in the first quarter of 2023, primarily driven by operating gains, fewer shares outstanding, lower taxes and dividend income from marketable securities, partially offset by unfavorable currency translation, higher interest expense, lower equity method investment earnings and lower benefit plan non-service income.
+Added: Adjusted EPS and Adjusted EPS on a constant currency basis are non-GAAP financial measures.
+Added: We use these measures as they provide improved year-over-year comparability of our underlying results (see the definition of Adjusted EPS and our reconciliation with diluted EPS within Non-GAAP Financial Measures ).
Discussion and Analysis of Historical Results
4 unchanged sentences
For the Three Months Ended
−Removed: September 30, For the Nine Months Ended
−Removed: September 30,
See Note 2023 2022
4 unchanged sentences
Intangible asset impairment charges Note 5 — (78)
−Removed: Mark-to-market (losses)/gains from derivatives (1)
−Removed: Note 9 (120) 134 (220) 268
+Added: Mark-to-market gains from derivatives (1)
Acquisition and divestiture-related costs:
1 unchanged sentence
contingent consideration adjustments (1)
−Removed: (28) 57 (100) 54
−Removed: Inventory step-up (20) — (20) —
Acquisition-related costs — (21)
−Removed: Gain on acquisition — — — 9
Divestiture-related costs (30) (1)
4 unchanged sentences
Note 10 (3) (3)
−Removed: Impact from resolution of tax matters (1)
−Removed: Note 12 — — — 7
Loss on debt extinguishment and related expenses Note 8 — (129)
−Removed: Initial impacts from enacted tax law changes Note 14 (13) 4 (22) (95)
−Removed: (Loss)/gain on equity method investment
+Added: Gain on marketable securities Note 6 787 —
+Added: Gain/(loss) on equity method investment
transactions (3)
−Removed: (3) 248 (16) 743
Equity method investee items (4)
−Removed: (1) 4 13 (51)
Effective tax rate Note 14 29.6 % 21.9 %
3 unchanged sentences
Please see the Non-GAAP Financial Measures section at the end of this item and Note 1, Basis of Presentation – War in Ukraine , for additional information.
−Removed: (3) (Loss)/gain on equity method investment transactions is recorded outside pre-tax operating results on the condensed consolidated statement of earnings.
+Added: (3) Gain/(loss) on equity method investment transactions is recorded outside pre-tax operating results on the condensed consolidated statement of earnings.
See footnote (1) as mark-to-market gains/(losses) on our equity method-investment-related derivative contracts are presented in the table above within mark-to-market gains/(losses) from derivatives.
−Removed: (4) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees, including acquisition and divestiture-related costs and restructuring program costs.
+Added: (4) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's equity method investee, including acquisition and divestiture-related costs and restructuring program costs.
Consolidated Results of Operations
−Removed: Three Months Ended September 30:
+Added: Three Months Ended March 31
For the Three Months Ended
−Removed: September 30,
2023 2022 $ change % change
8 unchanged sentences
$ 1.52 $ 0.61 $ 0.91 149.2 %
−Removed: 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.
+Added: Net Revenues – Net revenues increased $1,402 million (18.1%) to $9,166 million in the first quarter of 2023, and Organic Net Revenue (1) increased $1,502 million (19.4%) to $9,257 million.
Developed markets net revenues increased 16.0% and developed markets Organic Net Revenue increased 15.8% (1) .
14 unchanged sentences
Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix.
−Removed: 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.
−Removed: 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.
−Removed: 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).
−Removed: Unfavorable currency impacts decreased net revenues by $590 million, due primarily to the strength of the U.S.
−Removed: 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.
−Removed: dollar, primarily the Russian ruble.
−Removed: The impact of divestitures resulted in a year-over-year reduction in net revenues of $26 million.
−Removed: Refer to Note 2, Acquisitions and Divestitures, for additional information.
−Removed: Operating Income – Operating income decreased $615 million (47.5%) to $679 million in the third quarter of 2022.
−Removed: 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:
−Removed: Income % Change
−Removed: (in millions)
−Removed: Operating Income for the Three Months Ended September 30, 2021
−Removed: Simplify to Grow Program (2)
−Removed: Mark-to-market gains from derivatives (3)
−Removed: Acquisition integration costs and contingent consideration adjustments (4)
−Removed: Operating income from divestitures (4)
−Removed: Remeasurement of net monetary position (5)
−Removed: Impact from pension participation changes (6)
−Removed: Adjusted Operating Income (1) for the
−Removed: Three Months Ended September 30, 2021
−Removed: Higher net pricing
−Removed: Higher input costs
−Removed: Unfavorable volume/mix (28)
−Removed: Higher selling, general and administrative expenses (154)
−Removed: Lower amortization of intangible assets (1)
−Removed: Impact from acquisition (4)
−Removed: Total change in Adjusted Operating Income (constant currency) (1)
−Removed: Unfavorable currency translation (95)
−Removed: Total change in Adjusted Operating Income (1)
−Removed: Adjusted Operating Income (1) for the
−Removed: Three Months Ended September 30, 2022
−Removed: Simplify to Grow Program (2)
−Removed: Intangible asset impairment charges (7)
−Removed: Mark-to-market losses from derivatives (4)
−Removed: Acquisition integration costs and contingent consideration adjustments (4)
−Removed: Inventory step-up (4)
−Removed: Acquisition-related costs (4)
−Removed: Divestiture-related costs (4) (8)
−Removed: Incremental costs due to war in Ukraine (5)
−Removed: Remeasurement of net monetary position (5)
−Removed: Operating Income for the Three Months Ended September 30, 2022
−Removed: $ 679 (47.5) %
−Removed: (1) Refer to the Non-GAAP Financial Measures section at the end of this item.
−Removed: (2) Refer to Note 7, Restructuring Program, for more information.
−Removed: (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.
−Removed: (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.
−Removed: (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.
−Removed: (6) Refer to Note 10, Benefit Plans , for more information.
−Removed: (7) Refer to Note 5, Goodwill and Intangible Assets , for more information.
−Removed: (8) Divestiture-related costs includes costs incurred associated with our publicly-announced processes to divest our developed markets gum and global Halls businesses.
−Removed: During the third quarter of 2022, we realized higher net pricing, which was partially offset by increased input costs and unfavorable volume/mix.
−Removed: 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.
−Removed: The increase in input costs was driven by higher raw material costs as well as increased manufacturing costs.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Excluding these factors, selling, general and administrative expenses increased $154 million from the third quarter of 2021.
−Removed: 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.
−Removed: Unfavorable currency changes decreased operating income by $95 million due primarily to the strength of the U.S.
−Removed: 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.
−Removed: dollar, primarily the Russian ruble.
−Removed: Operating income margin decreased from 18.0% in the third quarter of 2021 to 8.7% in the third quarter of 2022.
−Removed: 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.
−Removed: Adjusted Operating Income margin decreased from 17.2% for the third quarter of 2021 to 16.1% for the third quarter of 2022.
−Removed: The decrease was driven primarily by higher raw material costs and unfavorable product mix, partially offset by higher net pricing and overhead cost leverage.
−Removed: 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.
−Removed: 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.
−Removed: Adjusted EPS (1) was $0.74 in the third quarter of 2022, up $0.04 (5.7%) from the third quarter of 2021.
−Removed: 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.
−Removed: Diluted EPS Attributable to Mondelēz International for the
−Removed: Three Months Ended September 30, 2021
−Removed: Simplify to Grow Program (2)
−Removed: Mark-to-market gains from derivatives (2)
−Removed: Acquisition integration costs and contingent consideration adjustments (2)
−Removed: Net earnings from divestitures (2)
−Removed: Gain on equity method investment transactions (3)
−Removed: Adjusted EPS (1) for the Three Months Ended September 30, 2021
−Removed: Increase in operations 0.05
−Removed: Increase in equity method investment net earnings 0.01
−Removed: Impact from acquisition (2)
−Removed: Changes in interest and other expense, net (4)
−Removed: Changes in income taxes (5)
−Removed: Changes in shares outstanding (6)
−Removed: Adjusted EPS (constant currency) (1) for the Three Months Ended September 30, 2022
−Removed: Unfavorable currency translation (0.07)
−Removed: Adjusted EPS (1) for the Three Months Ended September 30, 2022
−Removed: Simplify to Grow Program (2)
−Removed: Intangible asset impairment charges (2)
−Removed: Mark-to-market losses from derivatives (2)
−Removed: Acquisition integration costs and contingent consideration adjustments (2)
−Removed: Acquisition-related costs (2)
−Removed: Inventory step-up (2)
−Removed: Remeasurement of net monetary position (2)
−Removed: Initial impacts from enacted tax law changes (5)
−Removed: Diluted EPS Attributable to Mondelēz International for the
−Removed: Three Months Ended September 30, 2022
−Removed: (1) Refer to the Non-GAAP Financial Measures section appearing later in this section.
−Removed: (2) See the Operating Income table above and the related footnotes for more information.
−Removed: (3) Refer to Note 6, Equity Method Investments , for more information on gain/loss on equity method investment transactions.
−Removed: (4) Excludes the currency impact on interest expense related to non-U.S.
−Removed: dollar-denominated debt, which is included in currency translation.
−Removed: (5) Refer to Note 14, Income Taxes , for more information on the items affecting income taxes.
−Removed: (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.
−Removed: (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.
−Removed: Nine Months Ended September 30:
−Removed: For the Nine Months Ended
−Removed: September 30,
−Removed: 2022 2021 $ change % change
−Removed: (in millions, except per share data)
−Removed: Net revenues $ 22,801 $ 21,062 $ 1,739 8.3 %
−Removed: Operating income 2,700 3,449 (749) (21.7) %
−Removed: Net earnings attributable to
−Removed: Mondelēz International
−Removed: $ 2,134 $ 3,297 $ (1,163) (35.3) %
−Removed: Diluted earnings per share attributable to
−Removed: Mondelēz International
−Removed: $ 1.54 $ 2.33 $ (0.79) (33.9) %
−Removed: 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.
−Removed: Developed markets net revenues increased 2.3% and developed markets Organic Net Revenue increased 5.7% (1) .
−Removed: Emerging markets net revenues increased 19.1% and emerging markets Organic Net Revenue increased 21.1% (1) .
−Removed: The underlying changes in net revenues and Organic Net Revenue are detailed below:
−Removed: Change in net revenues (by percentage point)
−Removed: Total change in net revenues 8.3 %
−Removed: Add back the following items affecting comparability:
−Removed: Unfavorable currency 6.2 pp
−Removed: Impact of divestitures 0.2 pp
−Removed: Impact of acquisitions (3.5) pp
−Removed: Total change in Organic Net Revenue (1)
−Removed: Higher net pricing 8.1 pp
−Removed: Favorable volume/mix 3.1 pp
−Removed: (1) Please see the Non-GAAP Financial Measures section at the end of this item.
−Removed: 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.
−Removed: Overall, we continued to see increased demand for our snack category products.
−Removed: Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix.
−Removed: 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.
−Removed: 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.
−Removed: 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).
−Removed: Unfavorable currency impacts decreased net revenues by $1,305 million, due primarily to the strength of the U.S.
−Removed: 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.
−Removed: dollar, including the Russian ruble and Brazilian real.
+Added: Higher net pricing in all regions was due to the benefit of carryover pricing from 2022 as well as the effects of input cost-driven pricing actions taken during the first quarter of 2023.
+Added: Favorable volume/mix was reflected across all regions, primarily due to strong volume gains across our snack category products.
+Added: The November 1, 2022 acquisition of Ricolino added incremental net revenues of $156 million (constant currency basis) and the August 1, 2022 acquisition of Clif Bar added incremental net revenues of $218 million.
+Added: Unfavorable currency impacts decreased net revenues by $465 million, primarily due to the strength of the U.S.
+Added: dollar relative to most currencies, including the Argentinean peso, British pound sterling, euro, Indian rupee, Egyptian pound, Turkish lira and Chinese yuan, partially offset by the strength of a few currencies relative to the U.S.
+Added: dollar, primarily the Russian ruble and Mexican peso.
The impact of divestitures resulted in a year-over-year reduction in net revenues of $9 million.
Refer to Note 2, Acquisitions and Divestitures, for additional information.
−Removed: Operating Income – Operating income decreased $749 million (21.7%) to $2,700 million in the first nine months of 2022.
+Added: Operating Income – Operating income increased $411 million (37.6%) to $1,505 million in the first quarter of 2023.
Adjusted Operating Income (1) increased $204 million (14.8%) to $1,581 million and Adjusted Operating Income on a constant currency basis (1) increased $285 million (20.7%) to $1,662 million due to the following:
1 unchanged sentence
(in millions)
−Removed: Operating Income for the Nine Months Ended September 30, 2021
+Added: Operating Income for the Three Months Ended March 31, 2022
Simplify to Grow Program (2)
3 unchanged sentences
Acquisition-related costs (5)
−Removed: Gain from acquisition (5)
+Added: Divestiture-related costs (5)
Operating income from divestitures (5)
Remeasurement of net monetary position (6)
−Removed: Impact from pension participation changes (7)
−Removed: Impact from resolution of tax matters (8)
+Added: Incremental costs due to war in Ukraine (6)
Adjusted Operating Income (1) for the
−Removed: Nine Months Ended September 30, 2021
+Added: Three Months Ended March 31, 2022
Higher net pricing
2 unchanged sentences
Higher selling, general and administrative expenses (162)
−Removed: Lower amortization of intangible assets 7
−Removed: Impact from acquisitions (5)
+Added: Impact from acquisition (5)
Total change in Adjusted Operating Income (constant currency) (1)
2 unchanged sentences
Adjusted Operating Income (1) for the
−Removed: Nine Months Ended September 30, 2022
+Added: Three Months Ended March 31, 2023
Simplify to Grow Program (2)
−Removed: Intangible asset impairment charge (3)
−Removed: Mark-to-market losses from derivatives (4)
+Added: Mark-to-market gains from derivatives (4)
Acquisition integration costs and contingent consideration adjustments (5)
−Removed: Inventory step-up (5)
−Removed: Acquisition-related costs (5)
Divestiture-related costs (5) (7)
−Removed: Operating income from divestitures (6)
Incremental costs due to war in Ukraine (6)
Remeasurement of net monetary position (6)
−Removed: Operating Income for the Nine Months Ended September 30, 2022
+Added: Operating Income for the Three Months Ended March 31, 2023
$ 1,505 37.6 %
−Removed: (1) Refer to the Non-GAAP Financial Measures section at the end of this item.
+Added: (1) Refer to the Non-GAAP Financial Measures section.
(2) Refer to Note 7, Restructuring Program, for more information.
(3) Refer to Note 5, Goodwill and Intangible Assets , for more information.
−Removed: (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.
−Removed: (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.
+Added: (4) 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.
+Added: (5) Refer to Note 2, Acquisitions and Divestitures , for more information on the November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar and January 3, 2022 acquisition of Chipita.
(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.
−Removed: (7) Refer to Note 10, Benefit Plans , for more information.
−Removed: (8) Refer to Note 12, Commitments and Contingencies , for more information.
(7) Divestiture-related costs includes costs incurred associated with our publicly-announced processes to divest our developed markets gum and global Halls businesses.
−Removed: During the first nine months of 2022, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.
−Removed: 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.
−Removed: Favorable volume/mix was driven by AMEA, Latin America and Europe, which was partially offset by unfavorable volume/mix in North America.
+Added: During the first quarter of 2023, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs.
+Added: Higher net pricing, which included the carryover impact of pricing actions taken in 2022 as well as the effects of input cost-driven pricing actions taken during the first quarter of 2023, was reflected across all regions.
+Added: Favorable volume/mix was also reflected across all regions.
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.
−Removed: 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.
−Removed: 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.
−Removed: Excluding these factors, selling, general and administrative expenses increased $358 million from the first nine months of 2021.
−Removed: 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.
+Added: Higher raw material costs were in part due to higher dairy, energy, edible oils, sugar, grains, packaging, nuts, cocoa and other ingredients costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials.
+Added: Total selling, general and administrative expenses increased $162 million from the first quarter of 2022, due to a number of factors noted in the table above, including in part, the impact of acquisitions, higher divestiture-related costs, higher acquisition integration costs and contingent consideration adjustments and higher remeasurement loss of net monetary position, which were offset by a favorable currency impact related to expenses, lower incremental costs due to the war in Ukraine, lapping prior-year acquisition-related costs and lower implementation costs incurred for the Simplify to Grow program.
+Added: Excluding these factors, selling, general and administrative expenses also increased $162 million from the first quarter of 2022.
+Added: 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.
Unfavorable currency changes decreased operating income by $81 million due primarily to the strength of the U.S.
−Removed: 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.
−Removed: dollar, including the Brazilian real.
−Removed: Operating income margin decreased from 16.4% in the first nine months of 2021 to 11.8% in the first nine months of 2022.
−Removed: 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.
−Removed: 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.
−Removed: The decrease was driven primarily by higher raw material costs and unfavorable product mix, partially offset by higher net pricing and overhead cost leverage.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: dollar relative to most currencies, including the British pound sterling, euro, Argentinean peso, Indian rupee, Egyptian pound, Chinese yuan and Turkish lira, partially offset by the strength of a few currencies relative to the U.S.
+Added: dollar, including the Russian ruble, Mexican peso and Brazilian real.
+Added: Operating income margin increased from 14.1% in the first quarter of 2022 to 16.4% in the first quarter of 2023.
+Added: The increase was primarily driven by lapping prior-year incremental costs due to the war in Ukraine, lapping prior-year intangible asset impairment charges, lapping prior-year acquisition-related costs and favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, partially offset by a decrease in Adjusted Operating Income margin, higher divestiture-related costs, higher acquisition integration costs and contingent consideration adjustments and higher remeasurement loss of net monetary position.
+Added: Adjusted Operating Income margin decreased from 17.8% for the first quarter of 2022 to 17.2% for the first quarter of 2023.
+Added: The decrease was driven primarily by higher raw material costs, partially offset by higher net pricing and overhead cost leverage.
+Added: Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of $2,081 million increased by $1,226 million (143.4%) in the first quarter of 2023.
+Added: Diluted EPS attributable to Mondelēz International was $1.52 in the first quarter of 2023, up $0.91 (149.2%) from the first quarter of 2022.
+Added: Adjusted EPS (1) was $0.89 in the first quarter of 2023, up $0.08 (9.9%) from the first quarter of 2022.
+Added: Adjusted EPS on a constant currency basis (1) was $0.95 in the first quarter of 2023, up $0.14 (17.3%) from the first quarter of 2022.
Diluted EPS Attributable to Mondelēz International for the
−Removed: Nine Months Ended September 30, 2021
+Added: Three Months Ended March 31, 2022
Simplify to Grow Program (2)
4 unchanged sentences
Net earnings from divestitures (2)
−Removed: Remeasurement of net monetary position (2)
−Removed: Impact from pension participation changes (2)
Loss on debt extinguishment and related expenses (3)
−Removed: Initial impacts from enacted tax law changes (4)
−Removed: Gain on equity method investment transaction (5)
−Removed: Equity method investee items (6)
−Removed: Adjusted EPS (1) for the Nine Months Ended September 30, 2021
+Added: Incremental cost due to war in Ukraine (2)
+Added: Adjusted EPS (1) for the Three Months Ended March 31, 2022
Increase in operations 0.13
+Added: Decrease in equity method investment net earnings (0.01)
Impact from acquisition (2)
1 unchanged sentence
Changes in interest and other expense, net (4)
+Added: Dividend income from marketable securities 0.01
Changes in income taxes (6)
Changes in shares outstanding (7)
−Removed: Adjusted EPS (constant currency) (1) for the Nine Months Ended September 30, 2022
+Added: Adjusted EPS (constant currency) (1) for the Three Months Ended March 31, 2023
Unfavorable currency translation (0.06)
−Removed: Adjusted EPS (1) for the Nine Months Ended September 30, 2022
+Added: Adjusted EPS (1) for the Three Months Ended March 31, 2023
Simplify to Grow Program (2)
−Removed: Intangible asset impairment charges (2)
−Removed: Mark-to-market losses from derivatives (2)
+Added: Gain from derivatives (2)
Acquisition integration costs and contingent consideration adjustments (2)
−Removed: Inventory step-up (2)
−Removed: Acquisition-related costs (2)
Divestiture-related costs (2)
Net earnings from divestitures (2)
−Removed: Incremental costs due to war in Ukraine (2)
Remeasurement of net monetary position (2)
−Removed: Loss on debt extinguishment and related expenses (3)
−Removed: Initial impacts from enacted tax law changes (4)
−Removed: Loss on equity method investment transactions (6)
+Added: Gain on marketable securities (5)
+Added: Gain on equity method investment transactions (5)
Equity method investee items (8)
Diluted EPS Attributable to Mondelēz International for the
−Removed: Nine Months Ended September 30, 2022
+Added: Three Months Ended March 31, 2023
(1) Refer to the Non-GAAP Financial Measures section appearing later in this section.
1 unchanged sentence
(3) Refer to Note 8, Debt and Borrowing Arrangements , for more information on the loss on debt extinguishment and related expenses.
−Removed: (4) Refer to Note 14, Income Taxes , on the items affecting income taxes.
−Removed: (5) Refer to Note 6, Equity Method Investments , for more information on the gain/(loss) on equity method investment transactions.
−Removed: (6) 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.
−Removed: (7) Excludes the currency impact on interest expense related to our non-U.S.
+Added: (4) Excludes the currency impact on interest expense related to non-U.S.
dollar-denominated debt, which is included in currency translation.
+Added: (5) Refer to Note 6, Investments , for more information on gains/losses on equity method investment transactions and marketable securities.
+Added: (6) Refer to Note 14, Income Taxes , for more information on the items affecting income taxes.
(7) 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.
+Added: (8) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's equity method investee, such as acquisition and divestiture-related costs and restructuring program costs.
Results of Operations by Reportable Segment
9 unchanged sentences
For the Three Months Ended
−Removed: September 30, For the Nine Months Ended
−Removed: September 30,
−Removed: 2022 2021 2022 2021
(in millions)
8 unchanged sentences
Latin America $ 139 $ 103
−Removed: AMEA 257 267 740 842
Europe 507 377
North America 566 418
−Removed: Unrealized (losses)/gains on hedging activities
+Added: Unrealized gains/(losses) on hedging activities
(mark-to-market impacts) 49 27
1 unchanged sentence
Amortization of intangible assets (39) (32)
−Removed: Gain on acquisition — — — 9
Acquisition-related costs — (21)
2 unchanged sentences
Interest and other expense, net (95) (168)
+Added: Gain on marketable securities 796 —
Earnings before income taxes $ 2,225 $ 959
1 unchanged sentence
For the Three Months Ended
−Removed: September 30,
2023 2022 $ change % change
2 unchanged sentences
Segment operating income 139 103 36 35.0 %
−Removed: For the Nine Months Ended
−Removed: September 30,
−Removed: 2022 2021 $ change % change
−Removed: (in millions)
−Removed: Net revenues $ 2,615 $ 2,089 $ 526 25.2 %
−Removed: Segment operating income 305 221 84 38.0 %
−Removed: Three Months Ended September 30:
−Removed: 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).
−Removed: Higher net pricing was reflected across all categories, driven primarily by Argentina, Brazil and Mexico.
−Removed: Favorable volume/mix reflected strong volume growth as the region continued to see increased demand for our snack category products.
−Removed: Favorable volume/mix was driven by gains in candy, biscuits, gum and chocolate, partially offset by declines in refreshment beverages and cheese & grocery.
−Removed: Unfavorable currency impacts were due primarily to the strength of the U.S.
−Removed: 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.
−Removed: The impact of divestitures resulted in a year-over-year reduction in net revenues of $10 million.
−Removed: Segment operating income increased $21 million (23.1%), primarily due to higher net pricing, favorable volume/mix and lower manufacturing costs due to productivity.
−Removed: 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.
−Removed: Nine Months Ended September 30:
−Removed: 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).
−Removed: Higher net pricing was reflected across all categories, driven primarily by Argentina, Brazil and Mexico.
+Added: Three Months Ended March 31
+Added: Net revenues increased $385 million (46.6%), due to higher net pricing (31.6 pp), the impact of an acquisition (19.1 pp) and favorable volume/mix (7.4 pp), partially offset by unfavorable currency (9.9 pp) and the impact of divestitures (1.6 pp).
+Added: Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories, primarily in Argentina, Brazil and Mexico.
+Added: The November 1, 2022 acquisition of Ricolino added incremental net revenues of $156 million (constant currency basis) in the first quarter of 2023.
Favorable volume/mix reflected strong volume growth as the region continued to see increased demand for our snack category products.
−Removed: Favorable volume/mix was driven by gains in gum, biscuits, chocolate and candy, partially offset by a decline in refreshment beverages and cheese & grocery.
−Removed: Unfavorable currency impacts were due primarily to the strength of the U.S.
−Removed: 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.
−Removed: dollar, primarily the Brazilian real.
+Added: Favorable volume/mix was driven by gains in gum, biscuits & baked snacks, chocolate, candy and cheese & grocery, partially offset by a decline in refreshment beverages.
+Added: Unfavorable currency impacts were primarily due to the strength of the U.S.
+Added: dollar relative to several currencies in the region, primarily the Argentinean peso and Colombian peso, partially offset by the strength of several currencies relative to the U.S.
+Added: dollar, primarily the Mexican peso.
The impact of divestitures resulted in a year-over-year decline in net revenues of $9 million.
−Removed: 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.
−Removed: 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.
+Added: Segment operating income increased $36 million (35.0%), primarily due to higher net pricing and favorable volume/mix.
+Added: 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 on net monetary position and acquisition integration costs incurred in the first quarter of 2023.
For the Three Months Ended
−Removed: September 30,
2023 2022 $ change % change
2 unchanged sentences
Segment operating income 360 272 88 32.4 %
−Removed: For the Nine Months Ended
−Removed: September 30,
−Removed: 2022 2021 $ change % change
−Removed: (in millions)
−Removed: Net revenues $ 5,106 $ 4,826 $ 280 5.8 %
−Removed: Segment operating income 740 842 (102) (12.1) %
−Removed: Three Months Ended September 30:
−Removed: 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).
−Removed: Favorable volume/mix reflected overall volume gains from increased demand for our snack category products.
−Removed: Favorable volume/mix was driven by gains in biscuits, chocolate, candy and refreshment beverages, partially offset by declines in gum and cheese & grocery.
−Removed: Higher net pricing was reflected across all categories.
−Removed: Unfavorable currency impacts were due to the strength of the U.S.
−Removed: dollar relative to most currencies in the region, including the Indian rupee, Chinese yuan, Australian dollar, South African rand, Egyptian pound and Philippine peso.
−Removed: 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.
−Removed: 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.
−Removed: These unfavorable items were partially offset by higher net pricing, favorable volume/mix and lower manufacturing costs driven by productivity.
−Removed: Nine Months Ended September 30:
−Removed: 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).
+Added: Three Months Ended March 31
+Added: Net revenues increased $72 million (3.9%), due to higher net pricing (8.0 pp) and favorable volume/mix (5.8 pp), partially offset by unfavorable currency (9.9 pp).
+Added: Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories.
Favorable volume/mix reflected overall volume gains from increased demand for our snack category products.
−Removed: Favorable volume/mix was driven by gains in chocolate, biscuits, refreshment beverages and candy, partially offset by declines in cheese & grocery and gum.
−Removed: Higher net pricing was reflected across all categories.
−Removed: The April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) in the first quarter of 2022.
+Added: Favorable volume/mix was driven by gains in chocolate, biscuits & baked snacks, refreshment beverages and candy, partially offset by declines in gum and cheese & grocery.
Unfavorable currency impacts were due to the strength of the U.S.
−Removed: 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.
−Removed: 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 $30 million.
−Removed: 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.
−Removed: These unfavorable items were partially offset by higher net pricing, favorable volume/mix and lower manufacturing costs driven by productivity.
+Added: dollar relative to most currencies in the region, including the Indian rupee, Egyptian pound, Chinese yuan, Australian dollar, Pakistan rupee and South African Rand.
+Added: Segment operating income increased $88 million (32.4%), primarily due to higher net pricing, lapping prior-year intangible asset impairment charges, favorable volume/mix, lower other selling, general and administrative expenses and lower manufacturing costs driven by productivity.
+Added: These favorable items were partially offset by higher raw material costs, unfavorable currency, higher advertising and consumer promotion costs and higher fixed asset impairment charges.
For the Three Months Ended
−Removed: September 30,
2023 2022 $ change % change
2 unchanged sentences
Segment operating income 507 377 130 34.5 %
−Removed: For the Nine Months Ended
−Removed: September 30,
−Removed: 2022 2021 $ change % change
−Removed: (in millions)
−Removed: Net revenues $ 8,210 $ 8,035 $ 175 2.2 %
−Removed: Segment operating income 1,170 1,478 (308) (20.8) %
−Removed: Three Months Ended September 30:
−Removed: 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).
−Removed: Unfavorable currency impact reflected the strength of the U.S.
−Removed: 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.
−Removed: dollar, primarily the Russian ruble.
−Removed: Unfavorable volume/mix reflected volume declines driven by disruptions due to pricing negotiations.
−Removed: Unfavorable volume/mix was driven by declines in biscuits, chocolate, cheese & grocery, gum and refreshment beverages, partially offset by a gain in candy.
−Removed: Higher net pricing was reflected across all categories.
−Removed: The January 3, 2022 acquisition of Chipita added incremental net revenues of $167 million (constant currency basis) in the third quarter of 2022.
−Removed: 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.
−Removed: 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.
−Removed: Nine Months Ended September 30:
−Removed: 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).
−Removed: 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.
−Removed: Higher net pricing was reflected across all categories.
−Removed: 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.
−Removed: Favorable volume/mix was driven by gains in chocolate, candy and gum, partially offset by declines in cheese & grocery, biscuits and refreshment beverages.
+Added: Three Months Ended March 31
+Added: Net revenues increased $372 million (12.7%), due to higher net pricing (17.9 pp) and favorable volume/mix (1.0 pp), partially offset by unfavorable currency (6.2 pp).
+Added: Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories.
+Added: Favorable volume/mix was driven by gains in chocolate, gum, candy and refreshment beverages, partially offset by declines in biscuits & baked snacks and cheese & grocery.
Unfavorable currency impacts reflected the strength of the U.S.
−Removed: 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.
+Added: dollar relative to most currencies across the region, including the British pound sterling, euro, Turkish lira, Norwegian krone, Ukrainian hryvnya, Swedish krona and Polish zloty, partially offset by the strength of a few currencies relative to the U.S.
dollar, primarily the Russian ruble.
−Removed: 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.
−Removed: 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.
+Added: Segment operating income increased $130 million (34.5%), primarily due to higher net pricing, lapping the prior-year incremental costs incurred due to the war in Ukraine, lower other selling, general and administrative expenses, lower acquisition integration costs and favorable volume/mix.
+Added: These favorable items were partially offset by higher raw material costs, unfavorable currency, higher manufacturing costs, divestiture-related costs incurred in the first quarter of 2023, higher costs incurred for the Simplify to Grow program and higher advertising and consumer promotion costs.
North America
For the Three Months Ended
−Removed: September 30,
2023 2022 $ change % change
2 unchanged sentences
Segment operating income 566 418 148 35.4 %
−Removed: For the Nine Months Ended
−Removed: September 30,
−Removed: 2022 2021 $ change % change
−Removed: (in millions)
−Removed: Net revenues $ 6,870 $ 6,112 $ 758 12.4 %
−Removed: Segment operating income 1,337 932 405 43.5 %
−Removed: Three Months Ended September 30:
−Removed: 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).
−Removed: Higher net pricing was reflected across all categories except gum, driven by pricing actions taken in the first nine months of 2022.
−Removed: 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.
−Removed: 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.
−Removed: Unfavorable currency impact was due to the strength of the U.S.
−Removed: dollar relative to the Canadian dollar.
−Removed: 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.
−Removed: 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.
−Removed: Nine Months Ended September 30:
−Removed: 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).
−Removed: Higher net pricing was reflected across all categories driven by pricing actions taken in the first nine months of 2022.
−Removed: 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 $25 million in the first nine months of 2022.
−Removed: 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.
+Added: Three Months Ended March 31
+Added: Net revenues increased $573 million (26.8%), due to higher net pricing (15.0 pp), the impact of acquisitions (10.2 pp) and favorable volume/mix (2.3 pp), partially offset by unfavorable currency (0.7 pp).
+Added: Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories.
+Added: The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $218 million in the first quarter of 2023.
+Added: Favorable volume/mix was driven by gains in biscuits & baked snacks, gum and chocolate, partially offset by a decline in candy.
Unfavorable currency impact was due to the strength of the U.S.
dollar relative to the Canadian dollar.
−Removed: 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.
−Removed: 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.
+Added: Segment operating income increased $148 million (35.4%), primarily due to higher net pricing, the impact of an acquisition, lower costs incurred for the Simplify to Grow Program and favorable volume/mix.
+Added: These favorable items were partially offset by higher raw material costs, higher acquisition integration costs and contingent consideration adjustments, higher advertising and consumer promotion costs, higher other selling, general and administrative expenses, higher manufacturing costs and higher fixed asset impairment charges.
Liquidity and Capital Resources
−Removed: We believe that cash from operations, our revolving credit and term loan facilities, short-term borrowings and our authorized long-term financing will continue to provide sufficient liquidity for our working capital needs, planned capital expenditures, future payments of our contractual, tax and benefit plan obligations and payments for acquisitions, share repurchases and quarterly dividends.
−Removed: We expect to continue to utilize our commercial paper program and available international credit lines as needed.
+Added: We believe that cash from operations, our revolving credit facilities, short-term borrowings and our authorized long-term financing will continue to provide sufficient liquidity for our working capital needs, planned capital expenditures and future payments of our contractual, tax and benefit plan obligations and payments for acquisitions, share repurchases and quarterly dividends.
+Added: We expect to continue to utilize our commercial paper program and international credit lines as needed.
We continually evaluate long-term debt issuances to meet our short- and longer-term funding requirements.
3 unchanged sentences
To date, we have been successful in generating cash and raising financing as needed.
−Removed: However, if a serious economic or credit market crisis ensues or other adverse developments arise in connection with the COVID-19 pandemic, war in Ukraine or other circumstances, it could have a material adverse effect on our liquidity, results of operations and financial condition.
−Removed: 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.
+Added: However, if a serious economic or credit market crisis ensues or other adverse developments arise, it could have a material adverse effect on our liquidity, results of operations and financial condition.
+Added: 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), property, plant and equipment and any significant one-time non-operating items.
Long-term cash requirements primarily relate to funding long-term debt repayments (refer to Note 8, Debt and Borrowing Arrangements ), our U.S.
−Removed: tax reform transition tax liability which is payable through 2026, and deferred taxes (refer to Note 16, Income Taxes, in our Annual Report on Form 10-K), our long-term benefit plan obligations (refer to Note 10, Benefit Plans, and Note 11 , Benefit Plans, in our Annual report on Form 10-K) and commodity-related purchase commitments and derivative contracts (refer to Note 9, Financial Instruments ).
+Added: tax reform transition tax liability and deferred taxes (refer to Note 16, Income Taxes, in our Annual Report on Form 10-K), our long-term benefit plan obligations (refer to Note 10, Benefit Plans, and Note 11 , Benefit Plans, in our Annual report on Form 10-K) and commodity-related purchase commitments and derivative contracts (refer to Note 9, Financial Instruments ).
We generally fund short- and long-term cash requirements with cash from operating activities as well as cash proceeds from short- and long-term debt financing (refer to Debt below).
2 unchanged sentences
Our cash flow activity is noted below:
−Removed: Nine months ended September 30, 2022
+Added: Three months ended March 31, 2023
Net cash provided by operating activities $ 1,123 $ 1,131
−Removed: Net cash (used in)/provided by investing activities $ (3,410) $ 106
+Added: Net cash provided by/(used in) investing activities $ 636 $ (1,441)
Net cash used in financing activities $ (1,757) $ (1,280)
Net Cash Provided by Operating Activities
−Removed: 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.
+Added: The change in net cash provided by operating activities was essentially flat primarily due to increased year-over-year working capital requirements offset by an increase in cash-basis net earnings.
+Added: This is largely a result of business growth and acquisitions completed during 2022.
Net Cash (Used in)/Provided by Investing Activities
−Removed: 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.
−Removed: We continue to make capital expenditures primarily to modernize manufacturing facilities, support new product and productivity initiatives and fund strategic priorities.
−Removed: We expect 2022 capital expenditures to be approximately $0.9 billion, including capital expenditures in connection with our Simplify to Grow Program and for funding our strategic priorities.
+Added: The improvement in net cash provided by/used in investing activities was largely driven by current year proceeds from the KDP share sale (refer to Note 6, Investments ) and lapping prior-year cash consideration paid for the Chipita acquisition (refer to Note 2, Acquisitions and Divestitures ).
+Added: We continue to make capital expenditures primarily to modernize manufacturing facilities, implement new product manufacturing and support productivity initiatives.
+Added: We expect 2023 capital expenditures to be up to $1.2 billion, including capital expenditures in connection with our Simplify to Grow Program and for funding our strategic priorities.
We expect to continue to fund these expenditures with cash from operations.
Net Cash Used in Financing Activities
−Removed: 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.
−Removed: Supply Chain Financing
−Removed: As part of our continued efforts to improve our working capital efficiency, we have worked with our suppliers over the past several years to optimize our terms and conditions, which include the extension of payment terms.
−Removed: Our current payment terms with a majority of our suppliers are from 30 to 180 days, which we deem to be commercially reasonable.
−Removed: We also facilitate voluntary supply chain financing (“SCF”) programs through several participating financial institutions.
−Removed: Under these programs, our suppliers, at their sole discretion, determine invoices that they want to sell to participating financial institutions.
−Removed: Our suppliers’ voluntary inclusion of invoices in SCF programs has no bearing on our payment terms or amounts due.
−Removed: Our responsibility is limited to making payments based upon the agreed-upon contractual terms.
−Removed: No guarantees are provided by the Company or any of our subsidiaries under the SCF programs and we have no economic interest in the suppliers’ decision to participate in the SCF programs.
−Removed: Amounts due to our suppliers that elected to participate in the SCF program are included in accounts payable in our consolidated balance sheet.
−Removed: 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.
+Added: The increase in cash used in financing activities was primarily due to lower debt proceeds, partially offset by lower debt repayments and lower share repurchases in the first three months of 2023 compared to the same prior-year period.
+Added: We paid dividends of $529 million in the first three months of 2023 and $491 million in the first three months of 2022.
+Added: The first quarter 2023 dividend of $0.385 per share, declared on February 1, 2023 for shareholders of record as of March 31, 2023, was paid on April 14, 2023.
+Added: 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.
+Added: We anticipate that the 2023 distributions will be characterized as dividends under U.S.
+Added: federal income tax rules.
+Added: The final determination will be made on an IRS Form 1099–DIV issued in early 2024.
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.
−Removed: At September 30, 2022, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.
+Added: At March 31, 2023, 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.
The nature and amount of our long-term and short-term debt and the proportionate amount of each varies as a result of current and expected business requirements, market conditions and other factors.
−Removed: Due to seasonality, in the first and second quarters of the year, our working capital requirements grow, increasing the need for short-term financing.
−Removed: The second half of the year typically generates higher cash flows.
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.
−Removed: Refer to Note 8, Debt and Borrowing Arrangements , for details of our debt activity during the first nine months of 2022.
−Removed: 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.
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.
−Removed: As of September 30, 2022, $1.5 billion of the long-term financing authorization remained available.
−Removed: Refer to Note 8, Debt and Borrowing Arrangements .
−Removed: Our total debt was $21.7 billion at September 30, 2022 and $19.5 billion at December 31, 2021.
−Removed: Our debt-to-capitalization ratio was 0.45 at September 30, 2022 and 0.41 at December 31, 2021.
−Removed: At September 30, 2022, the weighted-average term of our outstanding long-term debt was 8.4 years.
−Removed: 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.
−Removed: We had commercial paper outstanding totaling $1.7 billion as of September 30, 2022 and $0.2 billion as of December 31, 2021.
−Removed: We expect to continue to use cash or commercial paper to finance various short-term financing needs.
−Removed: Through September 30, 2022, we continue to comply with our debt covenants.
+Added: As of March 31, 2023, $1.5 billion of the long-term financing authorization remained available.
+Added: Our total debt was $22.2 billion at March 31, 2023 and $22.9 billion at December 31, 2022.
+Added: Our debt-to-capitalization ratio was 0.44 at March 31, 2023 and 0.46 at December 31, 2022.
+Added: At March 31, 2023, the weighted-average term of our outstanding long-term debt was 8.2 years.
+Added: Our average daily commercial paper borrowings outstanding were $2.8 billion in the first three months of 2023 and $1.2 billion in the first three months of 2022.
One of our subsidiaries, Mondelez International Holdings Netherlands B.V.
(“MIHN”), has outstanding debt.
−Removed: 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.
−Removed: 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.
+Added: The operations held by MIHN generated approximately 72.8% (or $6.7 billion) of the $9.2 billion of consolidated net revenue in the three months ended March 31, 2023.
+Added: The operations held by MIHN represented approximately 82.7% (or $23.4 billion) of the $28.3 billion of net assets as of March 31, 2023.
Refer to Note 8, Debt and Borrowing Arrangements, for more information on our debt and debt covenants.
1 unchanged sentence
We regularly monitor worldwide supply, commodity cost and currency trends so we can cost-effectively secure ingredients, packaging and fuel required for production.
−Removed: 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.
−Removed: 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.
+Added: During the first three months of 2023, the primary drivers of the increase in our aggregate commodity costs were higher dairy, energy, edible oils, sugar, grains, packaging, nuts, cocoa and other ingredient costs, as well as unfavorable year-over-year currency exchange transaction costs on imported materials.
+Added: A number of external factors such as the current macroeconomic environment, including global inflation, 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.
We address higher commodity costs and currency impacts primarily through hedging, higher pricing and manufacturing and overhead cost control.
We use hedging techniques to limit the impact of fluctuations in the cost of our principal raw materials;
−Removed: however, we may not be able to fully hedge against commodity cost changes, such as dairy, where there is a limited ability to hedge, and our hedging strategies may not protect us from increases in specific raw material costs.
+Added: however, we may not be able to fully
+Added: hedge against commodity cost changes, such as dairy, where there is a limited ability to hedge, and our hedging strategies may not protect us from increases in specific raw material costs.
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.
−Removed: 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.
+Added: As a result of international supply chain, transportation and labor market disruptions and generally higher commodity, transportation and labor costs in the first three months of 2023, we expect price volatility and a higher aggregate cost environment to continue.
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.
−Removed: Equity and Dividends
−Removed: Stock Plans and Share Repurchases:
−Removed: 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 nine months ended September 30, 2022.
−Removed: As of September 30, 2022, our Board of Directors has authorized share repurchases up to $23.7 billion through December 31, 2023.
−Removed: Under this program, we have repurchased approximately $21.9 billion of shares through September 30, 2022.
−Removed: 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.
−Removed: 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 of Directors and management discretion.
−Removed: Additionally, our share repurchase activity during any particular period may fluctuate.
−Removed: We may accelerate, suspend, delay or discontinue our share repurchase program at any time, without notice.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: We anticipate that the 2022 distributions will be characterized as dividends under U.S.
−Removed: federal income tax rules.
−Removed: The final determination will be made on an IRS Form 1099–DIV issued in early 2023.
Significant Accounting Estimates
5 unchanged sentences
See also Note 1, Basis of Presentation , in this report.
−Removed: New Accounting Guidance:
−Removed: See Note 1, Basis of Presentation , for a discussion of new accounting standards.
−Removed: Contingencies:
−Removed: See Note 12, Commitments and Contingencies , and Part II, Item 1.
−Removed: Legal Proceedings, for a discussion of contingencies.
Forward-Looking Statements
−Removed: This report contains a number of forward-looking statements.
−Removed: 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:
−Removed: 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;
−Removed: the impact of the COVID-19 pandemic and related disruptions on our business including consumer demand, costs, product mix, our strategic initiatives, our and our partners’ global supply chains, operations, technology and assets, and our financial performance;
−Removed: price volatility, inflation and pricing actions;
−Removed: our strategic priorities and growth strategy;
−Removed: our future performance, including our future revenue and earnings growth;
−Removed: plans to reshape our portfolio and extend our leadership positions in chocolate and biscuits as well as baked snacks;
−Removed: plans to divest our developed market gum and global Halls businesses;
−Removed: our strategic transactions and initiatives;
−Removed: our leadership position in snacking;
−Removed: political, business and economic conditions and volatility;
−Removed: volatility in global consumer, commodity, supply, transportation, labor and currency;
−Removed: the cost environment, including higher labor, customer service, commodity, operating, transportation and other costs;
−Removed: volatility in the natural gas and electricity markets in Europe;
−Removed: consumer behavior, consumption and demand trends and our business in developed and emerging markets, our channels, our brands and our categories;
−Removed: our tax rate, tax positions, tax proceedings, tax liabilities, valuation allowances and the impact on us of potential U.S.
−Removed: and global tax reform;
−Removed: advertising and promotion bans and restrictions in the U.K.;
−Removed: the costs of, timing of expenditures under and completion of our restructuring program;
−Removed: commodity prices, supply and availability;
−Removed: our investments and our
−Removed: ownership interests in those investments, including JDE Peet's and KDP;
−Removed: currency exchange rates, controls and restrictions, volatility in foreign currencies and the effect of currency translation on our results of operations;
−Removed: the application of highly inflationary accounting for our subsidiaries in Argentina and Türkiye and the potential for and impacts from currency devaluation in other countries;
−Removed: the outcome and effects on us of legal proceedings and government investigations;
−Removed: the estimated value of goodwill and intangible assets;
−Removed: amortization expense for intangible assets;
−Removed: impairment of goodwill and intangible assets and our projections of operating results and other factors that may affect our impairment testing;
−Removed: our accounting estimates and judgments and the impact of new accounting pronouncements;
−Removed: pension expenses, contributions and assumptions;
−Removed: our ability to prevent and respond to cybersecurity breaches and disruptions;
−Removed: our liquidity, funding sources and uses of funding, including debt issuances and our use of commercial paper and international credit lines;
−Removed: our capital structure, credit availability and our ability to raise capital, and the impact of market disruptions on us, our counterparties and our business partners;
−Removed: the planned phase out of London Interbank Offered Rates and transition to other interest rate benchmarks;
−Removed: our risk management program, including the use of financial instruments and the impacts and effectiveness of our hedging activities;
−Removed: working capital;
−Removed: capital expenditures and funding;
−Removed: funding of debt maturities, acquisitions and other obligations;
−Removed: share repurchases;
−Removed: long-term value for our shareholders;
−Removed: the characterization of 2022 distributions as dividends;
−Removed: compliance with our debt covenants;
−Removed: and our contractual and other obligations.
−Removed: These forward-looking statements involve risks and uncertainties, many of which are beyond our control, and many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic, including the spread of new variants of COVID-19.
−Removed: 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;
+Added: This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
+Added: All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items;
+Added: any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures or share repurchases;
+Added: any statements concerning proposed new products, services, or developments;
+Added: any statements regarding future economic conditions or performance;
+Added: any statements of belief or expectation;
+Added: and any statements of assumptions underlying any of the foregoing or other future events.
+Added: Forward-looking statements may include, among others, the words, and variations of words, “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “drive,” “seek,” “aim,” “target,” “potential,” “commitment,” “outlook,” “continue” or any other similar words.
+Added: Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements.
+Added: Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control.
+Added: Important factors that could cause our actual results or performance to differ materially from those contained in or implied by our forward-looking statements include, but are not limited to, the following:
+Added: • weakness in macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation), instability of certain financial institutions, volatility of commodity and other input costs and availability of commodities;
+Added: • geopolitical uncertainty, including 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, including on our business operations, employees, reputation, brands, financial condition and results of operations;
• global or regional health pandemics or epidemics, including COVID-19;
−Removed: risks from operating globally including in emerging markets, including political, economic and regulatory risks;
−Removed: changes in currency exchange rates, controls and restrictions;
−Removed: volatility of commodity and other input costs and availability of commodities;
−Removed: weakness in economic conditions;
−Removed: weakness in consumer spending;
−Removed: inflation (and related monetary policy actions by governments in response to inflation);
−Removed: pricing actions;
−Removed: tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes;
−Removed: use of information technology and third-party service providers;
−Removed: unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and our compliance with privacy and data security laws;
• competition and our response to channel shifts and pricing and other competitive pressures;
+Added: • pricing actions;
• promotion and protection of our reputation and brand image;
−Removed: changes in consumer preferences and demand and our ability to innovate and differentiate our products;
+Added: • weakness in consumer spending and/or changes in consumer preferences and demand and our ability to predict, identify, interpret and meet these changes;
+Added: • risks from operating globally, including in emerging markets, such as political, economic and regulatory risks;
+Added: • the outcome and effects on us of legal and tax proceedings and government investigations, including the European Commission legal matter;
+Added: • use of information technology and third party service providers;
+Added: • unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and supply, commodity, labor and transportation constraints;
+Added: • 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 Ricolino, Clif Bar, Chipita, Gourmet Food, Grenade and Hu, and the anticipated closing of our planned divestiture of our developed market gum business in North America and Europe;
+Added: • our investments and our ownership interests in those investments, including JDE Peet's and KDP;
• the restructuring program and our other transformation initiatives not yielding the anticipated benefits;
• changes in the assumptions on which the restructuring program is based;
−Removed: management of our workforce and shifts in labor availability;
+Added: • the impact of climate change on our supply chain and operations;
• consolidation of retail customers and competition with retailer and other economy brands;
• changes in our relationships with customers, suppliers or distributors;
+Added: • management of our workforce and shifts in labor availability or labor costs;
• compliance with legal, regulatory, tax and benefit laws and related changes, claims or actions;
−Removed: the impact of climate change on our supply chain and operations;
−Removed: 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;
−Removed: significant changes in valuation factors that may adversely affect our impairment testing of goodwill and intangible assets;
• perceived or actual product quality issues or product recalls;
• failure to maintain effective internal control over financial reporting or disclosure controls and procedures;
+Added: • our ability to protect our intellectual property and intangible assets;
+Added: • tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes;
+Added: • changes in currency exchange rates, controls and restrictions;
• volatility of and access to capital or other markets, the effectiveness of our cash management programs and our liquidity;
• pension costs;
−Removed: the expected discontinuance of London Interbank Offered Rates and transition to any other interest rate benchmark;
−Removed: our ability to protect our intellectual property and intangible assets;
−Removed: and the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S.
−Removed: Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
+Added: • significant changes in valuation factors that may adversely affect our impairment testing of goodwill and intangible assets;
+Added: • the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S.
+Added: Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2022 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.
We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report except as required by applicable law or regulation.
+Added: In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.
Non-GAAP Financial Measures
1 unchanged sentence
We use non-GAAP financial measures to budget, make operating and strategic decisions and evaluate our performance.
−Removed: We have detailed the non-GAAP
−Removed: adjustments that we make in our non-GAAP definitions below.
+Added: We have detailed the non-GAAP adjustments that we make in our non-GAAP definitions below.
The adjustments generally fall within the following categories:
23 unchanged sentences
impact from resolution of tax matters (11) ;
+Added: 2017 malware incident net recoveries;
incremental costs due to the war in Ukraine (12) ;
+Added: impact from the European Commission legal matter (13) :
impact from pension participation changes (14) ;
5 unchanged sentences
net earnings from divestitures (2) ;
+Added: mark-to-market unrealized gains or losses and realized gains or losses from marketable securities (15) ;
initial impacts from enacted tax law changes (16) ;
3 unchanged sentences
(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.
−Removed: 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).
−Removed: (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.
−Removed: As we record our share of KDP and JDE Peet’s ongoing earnings on a one-quarter lag basis, any KDP or JDE Peet’s ownership reductions are reflected as divestitures within our non-GAAP results the following quarter.
+Added: In the first quarter of 2023, we added to the non-GAAP definition for divestitures the inclusion of changes from equity method investment accounting to accounting for equity interests with readily determinable fair values (“marketable securities”;
+Added: refer to footnote (2) below).
+Added: In addition, we added to the non-GAAP definitions the exclusion of gains or losses associated with marketable securities (see footnote (15) below).
+Added: (2) Divestitures include completed sales of businesses, exits of major product lines upon completion of a sale or licensing agreement, the partial or full sale of an equity method investment and changes from equity method investment accounting to accounting for marketable securities.
+Added: As we record our share of JDE Peet’s ongoing earnings on a one-quarter lag basis, any JDE Peet’s ownership reductions are reflected as divestitures within our non-GAAP results the following quarter.
(3) Constant currency operating results are calculated by dividing or multiplying, as appropriate, the current-period local currency operating results by the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S.
2 unchanged sentences
Costs that do not meet the program objectives are not reflected in the non-GAAP adjustments.
−Removed: (5) Divestiture-related costs, which includes costs incurred in relation to the preparation and completion of our divestitures as defined in footnote (2), also includes costs incurred associated with our publicly-announced processes to sell businesses.
+Added: (5) Divestiture-related costs, which includes costs incurred in relation to the preparation and completion (including one-time costs such as severance related to elimination of stranded costs) of our divestitures as defined in footnote (2), also includes costs incurred associated with our publicly-announced processes to sell businesses.
We exclude these items to better facilitate comparisons of our underlying operating performance across periods.
6 unchanged sentences
(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.
−Removed: dollar during the periods presented to be consistent with our prior accounting for these remeasurement gains/losses for Venezuela when it was subject to highly inflationary accounting prior to deconsolidation in 2015.
+Added: dollar during the
+Added: periods presented to be consistent with our prior accounting for these remeasurement gains/losses for Venezuela when it was subject to highly inflationary accounting prior to deconsolidation in 2015.
(10) We exclude unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency and equity method investment transaction derivative contracts from our non-GAAP earnings measures.
5 unchanged sentences
We began to incur incremental costs directly related to the war including asset impairments, such as property and inventory losses, higher expected allowances for uncollectible accounts receivable and committed compensation.
−Removed: We have isolated and exclude these costs and related impacts from our operating results to facilitate evaluation and comparisons of our ongoing results.
+Added: We have isolated and exclude these costs and related impacts as well as subsequent recoveries from our operating results to facilitate evaluation and comparisons of our ongoing results.
Incremental costs related to increasing operations in other primarily European facilities are not included with these costs.
+Added: (13) In the fourth quarter of 2022, we began to exclude the impact from the European Commission legal matter.
+Added: In November 2019, the European Commission informed us that it initiated an investigation into our alleged infringement of European Union competition law through certain practices allegedly restricting cross-border trade within the European Economic Area.
+Added: On January 28, 2021, the European Commission announced it had taken the next procedural step in its investigation and opened formal proceedings.
+Added: We have been cooperating with the investigation and are currently engaged in discussions with the European Commission in an effort to reach a negotiated, proportionate resolution to this matter.
+Added: As of December 31.
+Added: 2022, we recorded an estimate of the possible cost to resolve this matter.
+Added: Due to the unique nature of this matter, we believe it to be infrequent and unusual and therefore exclude it to better facilitate comparisons of our underlying operating performance across periods.
+Added: Refer to Note 12, Commitments and Contingencies .
(14) The impact from pension participation changes represents the charges incurred when employee groups are withdrawn from multiemployer pension plans and other changes in employee group pension plan participation.
1 unchanged sentence
See Note 10, Benefit Plans , for more information on the multiemployer pension plan withdrawal.
+Added: (15) In the first quarter of 2023, we began to exclude mark-to-market unrealized gains or losses, as well as realized gains or losses, associated with our marketable securities from our non-GAAP earnings measures.
+Added: These marketable securities gains or losses are not indicative of underlying operations and are excluded to better facilitate comparisons of our underlying operating performance across periods.
(16) We have excluded the initial impacts from enacted tax law changes.
1 unchanged sentence
We exclude initial impacts from enacted tax law changes from our Adjusted EPS as they do not reflect our ongoing tax obligations under the enacted tax law changes.
−Removed: Refer to our Annual Report on Form 10-K for the year ended December 31, 2021 for more information on the impact of Swiss and U.S.
(17) We have excluded our proportionate share of our equity method investees’ significant operating and non-operating items such as acquisition and divestiture-related costs, restructuring program costs and initial impacts from enacted tax law changes, in order to provide investors with a comparable view of our performance across periods.
18 unchanged sentences
We also evaluate our Organic Net Revenue growth from emerging markets and developed markets, and these underlying measures are also reconciled to U.S.
−Removed: For the Three Months Ended September 30, 2022 For the Three Months Ended September 30, 2021
−Removed: Markets Developed
−Removed: Markets Total Emerging
−Removed: Markets Developed
−Removed: Markets Total
−Removed: (in millions) (in millions)
−Removed: Net Revenues $ 3,094 $ 4,669 $ 7,763 $ 2,584 $ 4,598 $ 7,182
−Removed: Impact of currency 232 358 590 — — —
−Removed: Impact of acquisitions (125) (209) (334) — — —
−Removed: Impact of divestitures (1) — (1) (11) (16) (27)
−Removed: Organic Net Revenue $ 3,200 $ 4,818 $ 8,018 $ 2,573 $ 4,582 $ 7,155
−Removed: For the Nine Months Ended September 30, 2022 For the Nine Months Ended September 30, 2021
+Added: For the Three Months Ended March 31, 2023 For the Three Months Ended March 31, 2022
Markets Developed
10 unchanged sentences
Applying the definition of “Adjusted Operating Income,” the adjustments made to “operating income” (the most comparable U.S.
−Removed: GAAP financial measure) were to exclude Simplify to Grow Program;
+Added: GAAP financial measure) were to exclude the impacts of the Simplify to Grow Program;
intangible asset impairment charges;
1 unchanged sentence
acquisition integration costs and contingent consideration adjustments;
−Removed: inventory step-up charges:
acquisition-related costs;
divestiture-related costs;
−Removed: operating income from divestitures, gain on an acquisition;
+Added: operating income from divestitures;
incremental costs due to the war in Ukraine;
−Removed: the remeasurement of net monetary position;
−Removed: impact from pension participation changes;
−Removed: and impact from resolution of tax matters.
+Added: and the remeasurement of net monetary position.
We also evaluate Adjusted Operating Income on a constant currency basis.
1 unchanged sentence
For the Three Months Ended
−Removed: September 30,
2023 2022 $ Change % Change
3 unchanged sentences
Intangible asset impairment charge (2)
−Removed: Mark-to-market losses/(gains) from derivatives (3)
+Added: Mark-to-market gains from derivatives (3)
(49) (27) (22)
1 unchanged sentence
contingent consideration adjustments (4)
−Removed: Inventory step-up 20 — 20
Acquisition-related costs (4)
2 unchanged sentences
Incremental costs due to war in Ukraine (5)
−Removed: Remeasurement of net monetary position (5)
−Removed: Impact from pension participation changes (6)
−Removed: Adjusted Operating Income $ 1,253 $ 1,230 $ 23 1.9 %
−Removed: Unfavorable currency translation 95 — 95
−Removed: Adjusted Operating Income (constant currency) $ 1,348 $ 1,230 $ 118 9.6 %
−Removed: For the Nine Months Ended
−Removed: September 30,
−Removed: 2022 2021 $ Change % Change
−Removed: (in millions)
−Removed: Operating Income $ 2,700 $ 3,449 $ (749) (21.7) %
−Removed: Simplify to Grow Program (1)
−Removed: Intangible asset impairment charges (2)
−Removed: Mark-to-market losses/(gains) from derivatives (3)
(3) 143 (146)
−Removed: Acquisition integration costs and
−Removed: contingent consideration adjustments (4)
−Removed: Inventory step-up (4)
−Removed: Acquisition-related costs (4)
−Removed: Gain on acquisition (4)
−Removed: Divestiture-related costs (4)
−Removed: Operating income from divestitures (4)
−Removed: Incremental costs due to war in Ukraine (5)
Remeasurement of net monetary position (5)
−Removed: Impact from pension participation changes (6)
−Removed: Impact from resolution of tax matters (7)
Adjusted Operating Income $ 1,581 $ 1,377 $ 204 14.8 %
4 unchanged sentences
(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.
−Removed: (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.
+Added: (4) Refer to Note 2, Acquisitions and Divestitures , for more information on the November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar and the January 3, 2022 acquisition of Chipita.
(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.
−Removed: (6) Refer to Note 10, Benefit Plans , for more information.
−Removed: (7) Refer to Note 12, Commitments and Contingencies , for more information.
−Removed: Adjusted EPS:
Applying the definition of “Adjusted EPS,” (1) the adjustments made to “diluted EPS attributable to Mondelēz International” (the most comparable U.S.
1 unchanged sentence
losses on debt extinguishment and related expenses;
−Removed: initial impacts from enacted tax law changes;
+Added: gains or losses on marketable securities;
gains or losses on equity method investment transactions;
−Removed: and our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees.
+Added: and our proportionate share of significant operating and non-operating items recorded by our JDE Peet's equity method investee.
We also evaluate Adjusted EPS on a constant currency basis.
1 unchanged sentence
For the Three Months Ended
−Removed: September 30,
2023 2022 $ Change % Change
1 unchanged sentence
Simplify to Grow Program (2)
−Removed: 0.01 0.06 (0.05)
Intangible asset impairment charge (2)
−Removed: Mark-to-market losses/(gains) from derivatives (2)
— 0.04 (0.04)
−Removed: Acquisition integration costs and
−Removed: contingent consideration adjustments (2)
−Removed: 0.02 (0.03) 0.05
−Removed: Inventory step-up 0.01 — 0.01
−Removed: Acquisition-related costs (2)
−Removed: Net earnings from divestitures (3)
−Removed: — (0.01) 0.01
−Removed: Remeasurement of net monetary position (2)
−Removed: Initial impacts from enacted tax law changes (4)
−Removed: Loss/(gain) on equity method investment transactions (5)
−Removed: — (0.13) 0.13
−Removed: Adjusted EPS $ 0.74 $ 0.70 $ 0.04 5.7 %
−Removed: Unfavorable currency translation 0.07 — 0.07
−Removed: Adjusted EPS (constant currency) $ 0.81 $ 0.70 $ 0.11 15.7 %
−Removed: For the Nine Months Ended
−Removed: September 30,
−Removed: 2022 2021 $ Change % Change
−Removed: Diluted EPS attributable to Mondelēz International $ 1.54 $ 2.33 $ (0.79) (33.9) %
−Removed: Simplify to Grow Program (2)
−Removed: 0.04 0.20 (0.16)
−Removed: Intangible asset impairment charges (2)
−Removed: 0.05 0.02 0.03
−Removed: Mark-to-market losses/(gains) from derivatives (2)
+Added: Mark-to-market gains from derivatives (2)
(0.03) (0.02) (0.01)
2 unchanged sentences
0.03 (0.01) 0.04
−Removed: Inventory step-up (2)
Acquisition-related costs (2)
4 unchanged sentences
Incremental costs due to war in Ukraine (2)
−Removed: Remeasurement of net monetary position (2)
— 0.11 (0.11)
−Removed: Impact from pension participation changes (2)
−Removed: — 0.02 (0.02)
+Added: Remeasurement of net monetary position (2)
Loss on debt extinguishment and related expenses (3)
−Removed: Initial impacts from enacted tax law changes (4)
— 0.07 (0.07)
−Removed: Loss/(gain) on equity method investment transactions (5)
+Added: Gain on marketable securities (4)
(0.43) — (0.43)
−Removed: Equity method investee items (7)
+Added: Gain on equity method investment transactions (4)
(0.26) — (0.26)
+Added: Equity method investee items (5)
Adjusted EPS $ 0.89 $ 0.81 $ 0.08 9.9 %
3 unchanged sentences
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.
−Removed: • For the three months ended September 30, 2022, taxes for the:
−Removed: 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.
−Removed: • For the three months ended September 30, 2021, taxes for the:
−Removed: 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.
−Removed: • For the nine months ended September 30, 2022, taxes for the:
−Removed: 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.
−Removed: • For the nine months ended September 30, 2021, taxes for the:
−Removed: 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.
+Added: • For the three months ended March 31, 2023, taxes for the:
+Added: Simplify to Grow Program were $(6) million, mark-to-market gains from derivatives were $8 million, acquisition integration costs and contingent consideration adjustments were $(13) million, divestiture-related costs were $(4) million, net earnings from divestitures were $4 million, remeasurement of net monetary position were zero, gain on marketable securities were $201 million and gain on equity method investment transactions were $125 million.
+Added: • For the three months ended March 31, 2022, taxes for the:
+Added: Simplify to Grow Program were $(7) million, intangible asset impairment charges were $(19) million, mark-to-market gains from derivatives were $(5) million, acquisition integration costs and contingent consideration adjustments were $(50) million, acquisition-related costs were $(1) million, net earnings from divestitures were $10 million, incremental costs due to the war in Ukraine were $2 million and loss on debt extinguishment and related expenses were $(31) million.
(2) See the Adjusted Operating Income table above and the related footnotes for more information.
−Removed: (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.
−Removed: (4) Refer to Note 14, Income Taxes , and the Non-GAAP Financial Measures section for more information on the impact.
−Removed: (5) Refer to Note 6, Equity Method Investments, for more information on the gains and losses on equity method investment transactions.
(3) Refer to Note 8, Debt and Borrowing Arrangements , for more information on the loss on debt extinguishment and related expenses
−Removed: (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..
+Added: (4) Refer to Note 6, Investments, for more information on the gains and losses on equity method investment transactions and marketable securities.
+Added: (5) Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's equity method investee, such as acquisition and divestiture-related costs and restructuring program costs..
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.