What changed in this filing

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Item 1. Financial Statements

2024-10-29 compared with 2024-07-30 · 202 added, 156 removed, 888 unchanged (29% of the section changed)

6 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

30 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

17 unchanged sentences

dollars, except share data)

September 30,

2024 December 31, 2023

53 unchanged sentences

Interest Total

Three Months Ended June 30, 2024

Balances at April 1, 2024 $ — $ 32,163 $ 35,074 $ ( 11,132 ) $ ( 27,623 ) $ 32 $ 28,514

Three Months Ended September 30, 2024

Balances at July 1, 2024 $ — $ 32,200 $ 35,108 $ ( 11,515 ) $ ( 28,104 ) $ 29 $ 27,718

Comprehensive earnings/(losses):

12 unchanged sentences

— — — — — ( 5 ) ( 5 )

Balances at June 30, 2024 $ — $ 32,200 $ 35,108 $ ( 11,515 ) $ ( 28,104 ) $ 29 $ 27,718

Six Months Ended June 30, 2024

Balances at September 30, 2024 $ — $ 32,244 $ 35,331 $ ( 11,579 ) $ ( 28,142 ) $ 37 $ 27,891

Nine Months Ended September 30, 2024

Balances at January 1, 2024 $ — $ 32,216 $ 34,236 $ ( 10,946 ) $ ( 27,174 ) $ 34 $ 28,366

13 unchanged sentences

— — — — — ( 8 ) ( 8 )

Balances at June 30, 2024 $ — $ 32,200 $ 35,108 $ ( 11,515 ) $ ( 28,104 ) $ 29 $ 27,718

Three Months Ended June 30, 2023

Balances at April 1, 2023 $ — $ 32,112 $ 33,040 $ ( 10,814 ) $ ( 26,110 ) $ 46 $ 28,274

Balances at September 30, 2024 $ — $ 32,244 $ 35,331 $ ( 11,579 ) $ ( 28,142 ) $ 37 $ 27,891

Three Months Ended September 30, 2023

Balances at July 1, 2023 $ — $ 32,148 $ 33,458 $ ( 10,710 ) $ ( 26,249 ) $ 32 $ 28,679

Comprehensive earnings/(losses):

12 unchanged sentences

— — — — — ( 5 ) ( 5 )

Balances at June 30, 2023 $ — $ 32,148 $ 33,458 $ ( 10,710 ) $ ( 26,249 ) $ 32 $ 28,679

Six Months Ended June 30, 2023

Balances at September 30, 2023 $ — $ 32,181 $ 33,866 $ ( 11,232 ) $ ( 26,280 ) $ 25 $ 28,560

Nine Months Ended September 30, 2023

Balances at January 1, 2023 $ — $ 32,143 $ 31,481 $ ( 10,947 ) $ ( 25,794 ) $ 37 $ 26,920

13 unchanged sentences

— — 14 — — ( 9 ) 5

Balances at June 30, 2023 $ — $ 32,148 $ 33,458 $ ( 10,710 ) $ ( 26,249 ) $ 32 $ 28,679

Balances at September 30, 2023 $ — $ 32,181 $ 33,866 $ ( 11,232 ) $ ( 26,280 ) $ 25 $ 28,560

See accompanying notes to the condensed consolidated financial statements.

3 unchanged sentences

(in millions of U.S.

For the Six Months Ended

For the Nine Months Ended

September 30,

CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES

5 unchanged sentences

Asset impairments and accelerated depreciation 210 95

Loss on early extinguishment of debt — 1

Loss/(gain) on equity method investment transactions including impairments

1 unchanged sentence

Distributions from equity method investments 115 136

Unrealized gain on derivative contracts

( 605 ) ( 229 )

Unrealized loss/(gain) on derivative contracts

Gain on marketable securities — ( 593 )

Contingent consideration adjustments

Other non-cash items, net 93 4

22 unchanged sentences

Issuances of commercial paper, maturities greater than 90 days — 67

Repayments of commercial paper, maturities greater than 90 days — ( 67 )

Net issuances/(repayments) of short-term borrowings

1,065 ( 1,070 )

Long-term debt proceeds 1,671 189

2 unchanged sentences

Dividends paid ( 1,722 ) ( 1,581 )

Other 132 134

Net cash used in financing activities ( 2,558 ) ( 5,074 )

31 unchanged sentences

Within our consolidated entities, Argentina and Türkiye (Turkey) are accounted for as highly inflationary economies.

Argentina and Türkiye represent 1.6 % and 0.5 % of our consolidated net revenues with remeasurement losses of $ 8 million and $ 1 million for the three months ended June 30, 2024, respectively, and 1.5 % and 0.7 % of our consolidated net revenues with remeasurement losses of $ 10 million and $ 7 million for the six months ended June 30, 2024 .

Argentina and Türkiye represent 1.6 % and 0.6 % of our consolidated net revenues with remeasurement losses of $ 4 million and $ 5 million for the three months ended September 30, 2024, respectively, and 1.5 % and 0.7 % of our consolidated net revenues with remeasurement losses of $ 14 million and $ 12 million for the nine months ended September 30, 2024 .

Given the continued volatility of these currencies, impacts to our financial statements in future periods could be significantly different from historical levels.

2 unchanged sentences

Restricted cash primarily includes cash held on behalf of financial institutions in accordance with accounts receivable factoring arrangements and letters of credit arrangements with legally restricted cash collateral provisions.

Restricted cash is recorded within other current assets and was $ 72 million as of June 30, 2024 and $ 74 million as of December 31, 2023.

Total cash, cash equivalents and restricted cash was $ 1,471 million as of June 30, 2024 and $ 1,884 million as of December 31, 2023.

Restricted cash is recorded within other current assets and was $ 56 million as of September 30, 2024 and $ 74 million as of December 31, 2023.

Total cash, cash equivalents and restricted cash was $ 1,573 million as of September 30, 2024 and $ 1,884 million as of December 31, 2023.

Allowances for Credit Losses

6 unchanged sentences

Currency and other

Balance at June 30, 2024 $ ( 39 ) $ ( 40 ) $ ( 17 )

Balance at September 30, 2024 $ ( 38 ) $ ( 39 ) $ ( 21 )

Transfers of Financial Assets

The outstanding principal amount of receivables under our uncommitted revolving non-recourse accounts receivable factoring arrangements amounted to $ 739 million as of June 30, 2024 and $ 262 million as of December 31, 2023.

The outstanding principal amount of receivables under our uncommitted revolving non-recourse accounts receivable factoring arrangements amounted to $ 737 million as of September 30, 2024 and $ 262 million as of December 31, 2023.

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

1 unchanged sentence

Non-Cash Lease Transactions

We recorded $ 53 million in operating lease and $ 68 million in finance lease right-of-use assets obtained in exchange for lease obligations during the six months ended June 30, 2024 and $ 62 million in operating lease and $ 73 million in finance lease right-of-use assets obtained in exchange for lease obligations during the six months ended June 30, 2023.

We recorded $ 244 million in operating lease and $ 90 million in finance lease right-of-use assets obtained in exchange for lease obligations during the nine months ended September 30, 2024 and $ 86 million in operating lease and $ 101 million in finance lease right-of-use assets obtained in exchange for lease obligations during the nine months ended September 30, 2023.

Supply Chain Financing

1 unchanged sentence

We also facilitate voluntary supply chain financing (“SCF”) programs through several participating financial institutions.

We have been informed by the participating financial institutions that our outstanding accounts payable related to suppliers that participate in the SCF programs was $ 2.7 billion and $ 2.4 billion, respectively, as of June 30, 2024 and December 31, 2023.

We have been informed by the participating financial institutions that our outstanding accounts payable related to suppliers that participate in the SCF programs was $ 3.2 billion and $ 2.4 billion, respectively, as of September 30, 2024 and December 31, 2023.

New Accounting Pronouncements

8 unchanged sentences

We are currently assessing the impact on our consolidated financial statements and related disclosures.

Developed Market Gum

Acquisitions and Divestitures

On September 20, 2024 , we announced that we signed an agreement to acquire a majority stake of Evirth (Shanghai) Industrial Co., Ltd ("Evirth"), a leading manufacturer of cakes and pastries in China.

The transaction is subject to customary closing conditions, including regulatory approval, and is expected to clos e in the fourth quarter of 2024.

We recorded acquisition-related costs of $ 2 million in the three months ended September 30, 2024.

On October 1, 2023, we completed the sale of our developed market gum business in the United States, Canada and Europe to Perfetti Van Melle Group, excluding the Portugal business which we sold on October 23, 2023 after obtaining regulatory approval.

We recorded divestiture-related costs of zero in the three months ended June 30, 2024 and $ 22 million in the three months ended June 30, 2023 and recorded divestiture-related costs of $ 4 million in the six months ended June 30, 2024 and $ 52 million in the six months ended June 30, 2023.

We reversed $ 2 million of previously recorded divestiture-related costs no longer required in the three months ended September 30, 2024 and recorded divestiture-related costs of $ 14 million in the three months ended September 30, 2023 and recorded net divestiture-related costs of $ 2 million in the nine months ended September 30, 2024 and $ 66 million in the nine months ended September 30, 2023.

This disposition was not considered a strategic shift that would have a major effect on our operations or financial results;

1 unchanged sentence

Inventories consisted of the following:

As of June 30,

As of September 30,

2024 As of December 31, 2023

6 unchanged sentences

Property, plant and equipment consisted of the following:

As of June 30,

As of September 30,

2024 As of December 31, 2023

7 unchanged sentences

Property, plant and equipment, net $ 9,696 $ 9,694

For the six months ended June 30, 2024, capital expenditures of $ 666 million excluded $ 364 million of accrued capital expenditures remaining unpaid at June 30, 2024 and included payment for the $ 471 million of capital expenditures that were accrued and unpaid at December 31, 2023.

For the six months ended June 30, 2023, capital expenditures of $ 495 million excluded $ 305 million of accrued capital expenditures remaining unpaid at June 30, 2023 and included payment for the $ 324 million of capital expenditures that were accrued and unpaid at December 31, 2022.

For the nine months ended September 30, 2024, capital expenditures of $ 982 million excluded $ 387 million of accrued capital expenditures remaining unpaid at September 30, 2024 and included payment for the $ 471 million of capital expenditures that were accrued and unpaid at December 31, 2023.

For the nine months ended September 30, 2023, capital expenditures of $ 780 million excluded $ 321 million of accrued capital expenditures remaining unpaid at September 30, 2023 and included payment for the $ 324 million of capital expenditures that were accrued and unpaid at December 31, 2022.

Goodwill and Intangible Assets

8 unchanged sentences

Currency ( 199 ) 11 80 ( 15 ) ( 123 )

Balance at June 30, 2024 $ 1,475 $ 2,986 $ 8,074 $ 10,851 $ 23,386

Balance at September 30, 2024 $ 1,408 $ 3,076 $ 8,430 $ 10,859 $ 23,773

(1) Purchase price allocation adjustments for Ricolino and Clif Bar during 2023.

1 unchanged sentence

Intangible assets consisted of the following:

As of June 30, 2024 As of December 31, 2023

As of September 30, 2024 As of December 31, 2023

Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount

4 unchanged sentences

$ 21,736 $ ( 2,277 ) $ 19,459 $ 21,991 $ ( 2,155 ) $ 19,836

(1) In 2023, we recorded $ 26 million of intangible asset impairment charges related to a chocolate brand in the North America segment for $ 20 million and a biscuit brand in the Europe segment for $ 6 million in the third quarter.

(1) In the third quarter of 2023, we recorded $ 26 million of intangible asset impairment charges related to one chocolate brand in the North America segment for $ 20 million and one biscuit brand in the Europe segment for $ 6 million.

(2) In the third quarter of 2024, we recorded $ 153 million of intangible asset impairment charges related to two biscuit brands in the Europe segment for $ 143 million, one biscuit brand in the AMEA segment for $ 5 million and one candy and one biscuit brand in the Latin America segment for a total of $ 5 million.

Indefinite-life intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the global LU biscuit business of Groupe Danone S.A., Cadbury Limited and Clif Bar.

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

Amortization expense for intangible assets was $ 37 million for the three months and $ 75 million for the six months ended June 30, 2024 and $ 37 million for the three months and $ 76 million for the six months ended June 30, 2023.

For the next five years, we currently estimate annual amortization expense of approximately $ 125 million in 2024-2026 and approximately $ 90 million in 2027 and 2028 (reflecting June 30, 2024 exchange rates).

Amortization expense for intangible assets was $ 40 million for the three months and $ 115 million for the nine months ended September 30, 2024 and $ 38 million for the three months and $ 114 million for the nine months ended September 30, 2023.

For the next five years, we currently estimate annual amortization expense of approximately $ 130 million in 2024-2026 and approximately $ 90 million in 2027 and 2028 (reflecting September 30, 2024 exchange rates).

Impairment Assessment:

We test our reporting units and brands for impairment annually as of July 1, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit or brand is less than its carrying amount.

During the second quarter of 2024, we evaluated our goodwill impairment and intangible asset impairment risk through an assessment of potential triggering events.

We considered qualitative and quantitative information in our assessment.

We concluded there were no impairment indicators.

During our 2023 annual indefinite-life intangible asset testing, we identified thirteen brands that each had a fair value in excess of book value of 10% or less.

The aggregate book value of the thirteen brands was $ 3.5 billion as of June 30, 2024, of which $ 1.8 billion is related to five recently acquired brands.

We believe our current plans for each of these brands will support the current carrying values, but if plans to grow brand earnings and expand margin are not met or specific valuation factors outside of our control, such as discount rates, change then a brand or brands could become impaired in the future.

During the third quarter of 2024, we performed our annual impairment assessment test for goodwill and indefinite-life intangible assets as of July 1, 2024.

Our 2024 annual testing of goodwill resulted in no impairments as each reporting unit had fair value in excess of carrying value.

As part of our goodwill quantitative assessment, we compare a reporting unit's estimated fair value to its carrying value.

If the carrying value of the reporting unit exceeds the fair value, we would record an impairment for the difference.

We estimate a reporting unit's fair value using a discounted cash flow method that incorporates discount rates, planned growth rates, and estimates of residual value.

We used a market-based weighted average cost of capital of 6.8 % for our Europe and North America reporting units and a risk-rated weighted average cost of capital of 9.8 % for our Latin America and AMEA reporting units, to discount projected cash flows from those operations.

Estimating the fair value of individual reporting units requires us to make assumptions and estimates

regarding our future plans, industry conditions and economic conditions based on available information.

Given the uncertainty of the global macroeconomic environment, those estimates could be significantly different than future performance.

While all reporting units passed our annual impairment testing, if planned business performance expectations are not met or specific valuation factors outside our control, such as discount rates, change significantly, then the estimated fair values of a reporting unit might decline and lead to a goodwill impairment in the future.

Our 2024 annual testing of indefinite-life intangible assets resulted in an impairment of $ 153 million related to two biscuit brands in the Europe segment, one biscuit brand in the AMEA segment and one candy and one biscuit brand in the Latin America segment.

The impairments were driven by changes in projections, resulting primarily from the impact of customer price negotiation disruptions and continued commodity cost pressures in the third quarter of 2024, which are expected to result in a slower recovery than previously expected.

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

We use several accepted valuation methods, including Relief from Royalty, excess earnings and excess margin.

The valuation methods utilize estimates of future sales, earnings growth rates, royalty rates and discount rates to determine the fair value of each intangible asset.

We identified thirteen brands that each had a fair value in excess of book value of 10% or less.

The aggregate book value of the thirteen brands was $ 3.0 billion as of September 30, 2024.

We believe our current plans for each of these brands will allow them to not be impaired, but if plans to grow brand revenue and expand margin are not met or specific valuation factors outside of our control, such as discount rates, change then a brand or brands could become impaired in the future.

Marketable Securities

2 unchanged sentences

Marketable securities are measured at fair value based on quoted prices in active markets for identical assets (Level 1).

On July 13, 2023, we sold 23 million shares, the remainder of our shares of KDP.

We received proceeds of approximately $ 704 million.

On June 8, 2023, we sold 23 million shares of KDP, which reduced our ownership by 1.6 percentage points, from 3.2 % to 1.6 % of the total outstanding shares.

2 unchanged sentences

We received proceeds of approximately $ 1.0 billion and prior to the change of accounting for our KDP investment, recorded a pre-tax gain on equity method transactions of $ 493 million ($ 368 million after-tax) during the first quarter of 2023.

Subsequently in 2023, we sold the remainder of our shares of KDP and exited our investment in the company.

Pre-tax (losses)/gains for marketable securities are summarized below:

Three Months Ended June 30, 2023

Six Months Ended June 30, 2023

Three Months Ended September 30, 2023

Nine Months Ended September 30, 2023

(in millions)

(Loss)/gain on marketable securities sold during the period

$ ( 104 ) $ 293

Unrealized (loss)/gain on marketable securities held as of the end of the period

Gain on marketable securities sold during the period

Dividend income and other

1 unchanged sentence

$ ( 1 ) $ 606

In the table above, (loss)/gain on marketable securities sold during the period reflects the difference between the sale proceeds and the carrying value of the marketable securities at the beginning of the period or the date of the change of accounting for our investment in KDP, if later.

We reported no marketable securities as of June 30, 2024 and December 31, 2023, and $ 705 million as of June 30, 2023 in Other current assets in the condensed consolidated balance sheets.

In the table above, gain on marketable securities sold during the period reflects the difference between the sale proceeds and the carrying value of the marketable securities at the beginning of the period or the date of the change of accounting for our investment in KDP, if later.

Equity Method Investments

2 unchanged sentences

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

As of June 30, 2024, we owned 17.7 %, 50.0 % and 49.0 %, respectively, of these companies' outstanding shares.

As of September 30, 2024, we owned 17.6 %, 50.0 % and 49.0 %, respectively, of these companies' outstanding shares.

We continue to have board representation with two directors on JDEP's Board of Directors and have retained certain additional governance rights.

As we continue to have significant influence, we continue to account for our investment in JDEP under the equity method.

Our investments accounted for under the equity method of accounting totaled $ 2.5 billion as of June 30, 2024 and $ 3.2 billion as of December 31, 2023.

We recorded equity earnings of $ 48 million and cash dividends of $ 2 million in the three months ended June 30, 2024, and equity earnings of $ 71 million and cash dividends of zero in the three months ended June 30, 2023.

We recorded equity earnings of $ 79 million and cash dividends of $ 82 million in the six months ended June 30, 2024 and equity earnings of $ 106 million and cash dividends of $ 102 million in the six months ended June 30, 2023.

Based on the quoted closing prices as of June 30, 2024, the fair value of our publicly-traded investment in JDEP was $ 1.7 billion, and there was no other than temporary impairment identified during the three months ended June 30, 2024.

Our investments accounted for under the equity method of accounting totaled $ 2.6 billion as of September 30, 2024 and $ 3.2 billion as of December 31, 2023.

We recorded equity earnings of $ 54 million and cash dividends of $ 33 million in the three months ended September 30, 2024, and equity earnings of $ 10 million and cash dividends of $ 34 million in the three months ended September 30, 2023.

We recorded equity earnings of $ 133 million and cash dividends of $ 115 million in the nine months ended September 30, 2024 and equity earnings of $ 116 million and cash dividends of $ 136 million in the nine months ended September 30, 2023.

Based on the quoted closing prices as of September 30, 2024, the fair value of our publicly-traded investment in JDEP was $ 1.8 billion, and there was no other than temporary impairment identified during the three months ended September 30, 2024.

During the three months ended March 31, 2024, we determined there was an other-than-temporary impairment based on the period of time for which the quoted market price fair value had been less than the carrying value of the investment and the uncertainty surrounding JDEP's stock price recovering to the carrying value.

1 unchanged sentence

This charge was included within (Loss)/gain on equity method investment transactions including impairments in the condensed consolidated statement of earnings.

There was no other than temporary impairment identified in the three and six months ended June 30, 2023.

There was no other than temporary impairment identified in the three and nine months ended September 30, 2023.

JDEP Transactions

On April 3, 2023, we sold approximately 7.7 million shares of JDEP, which reduced our ownership by 1.6 percentage points, from 19.7 % to 18.1 % of the total outstanding shares.

We received cash proceeds of € 198 million ($ 217 million) and recorded a loss of € 18 million ($ 19 million) on this sale during the three months ended June 30, 2023.

On March 30, 2023, we issued options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares.

These options were exercisable at their maturities which were between July 3, 2023 and September 29, 2023, with strike prices ranging from € 26.10 to € 28.71 per share.

Subsequent to the three months ended June 30, 2023, we exercised options on 2.2 million of the 7.7 million shares.

In 2021, we issued € 300 million exchangeable bonds, which are redeemable at maturity in September 2024 at their principal amount in cash or, at our option, through the delivery of an equivalent number of JDEP’s ordinary shares based on an initial exchange price of € 35.40 and, as the case may be, an additional amount in cash.

If all bonds were redeemed in exchange for JDEP's shares, this would represent approximately 8.5 million shares or approximately 10 % of our equity interest in JDEP as of June 30, 2024.

During the three months ended September 30, 2023, options were exercised on 2.2 million shares, which reduced our ownership percentage by 0.4 percentage point, from 18.1 % to 17.7 % of the total outstanding shares.

We received cash proceeds of € 57 million ($ 62 million) and recorded a loss of € 3 million ($ 4 million) for these shares during the three months ended September 30, 2023.

On April 3, 2023, we sold approximately 7.7 million shares of JDEP, which reduced our ownership by 1.6 percentage points, from 19.7 % to 18.1 % of the total outstanding shares.

We received cash proceeds of € 198 million ($ 217 million) and recorded a loss of € 18 million ($ 19 million) on this sale during the during the second quarter of 2023.

In 2021, we issued € 300 million exchangeable bonds, which were redeemable at maturity during September 2024 at their principal amount in cash or, at our option, through the delivery of an equivalent number of JDEP’s ordinary shares based on an initial exchange price of € 35.40 and, as the case may be, an additional amount in cash.

At maturity, we repaid the exchangeable bonds in cash.

Refer to Note 8, Debt and Borrowing Arrangements for additional detail on this repayment.

On October 21, 2024, we announced the sale of our remaining 85.9 million shares in JDEP to JAB Holdings Company for approximately € 2.2 billion ($ 2.4 billion), at a price of € 25.10 per share.

The sale transaction is expected to be completed in the fourth quarter of 2024.

Restructuring Program

1 unchanged sentence

On August 31, 2016, our Board of Directors approved a $ 600 million reallocation between restructuring program cash costs and capital expenditures so the $ 5.7 billion program consisted of approximately $ 4.1 billion of restructuring program charges ($ 3.1 billion cash costs and $ 1.0 billion non-cash costs) and up to $ 1.6 billion of capital expenditures.

On September 6, 2018, our Board of Directors approved an extension of the restructuring program through 2022, an increase of $ 1.3 billion in the program charges and an increase of $ 700 million in capital expenditures.

On September 6, 2018, our Board of Directors approved an extension

of the restructuring program through 2022, an increase of $ 1.3 billion in the program charges and an increase of $ 700 million in capital expenditures.

On October 21, 2021, our Board of Directors approved an extension of the restructuring program through 2023, and on July 25, 2023, our Board of Directors approved a further extension of the restructuring program through December 31, 2024.

6 unchanged sentences

Restructuring Costs

The Simplify to Grow Program liability activity for the six months ended June 30, 2024 was:

The Simplify to Grow Program liability activity for the nine months ended September 30, 2024 was:

Write-downs and Other (1)

6 unchanged sentences

Currency 1 — 1

Liability balance, June 30, 2024 (5)

Liability balance, September 30, 2024 (5)

$ 185 $ — $ 185

(1) Includes gains as a result of assets sold which are included in the restructuring program.

(2) We recorded restructuring charges of $ 3 million in the three months ended June 30, 2024 and restructuring charges of $ 2 million in the three months ended June 30, 2023 and restructuring charges of $ 45 million in the six months ended June 30, 2024 and $ 32 million in the six months ended June 30, 2023 within asset impairment and exit costs and benefit plan non-service income.

(3) We spent $ 10 million in the three months ended June 30, 2024 and $ 17 million in the three months ended June 30, 2023 and spent $ 23 million in the six months ended June 30, 2024 and $ 35 million in the six months ended June 30, 2023 in cash severance and related costs.

(4) We recognized non-cash asset write-downs (including accelerated depreciation and asset impairments) and other non-cash adjustments, including any gains on sale of restructuring program assets, which totaled a charge of $ 5 million in the three months ended June 30, 2024 and a charge of $ 5 million in the three months ended June 30, 2023 and a charge of $ 6 million in the six months ended June 30, 2024 and $ 6 million in the six months ended June 30, 2023.

(5) At June 30, 2024, $ 114 million of our net restructuring liability was recorded within other current liabilities and $ 87 million was recorded within other long-term liabilities.

(2) We recorded net reversals of previously recorded restructuring charges of $ 5 million in the three months ended September 30, 2024 and restructuring charges of $ 16 million in the three months ended September 30, 2023 and net restructuring charges of $ 40 million in the nine months ended September 30, 2024 and $ 48 million in the nine months ended September 30, 2023 within asset impairment and exit costs and benefit plan non-service income.

(3) We spent $ 12 million in the three months ended September 30, 2024 and $ 12 million in the three months ended September 30, 2023 and spent $ 35 million in the nine months ended September 30, 2024 and $ 47 million in the nine months ended September 30, 2023 in cash severance and related costs.

(4) We recognized non-cash asset write-downs (including accelerated depreciation and asset impairments) and other non-cash adjustments, including any gains on sale of restructuring program assets, which totaled a charge of $ 6 million in the three months ended September 30, 2024 and a charge of $ 8 million in the three months ended September 30, 2023 and a charge of $ 12 million in the nine months ended September 30, 2024 and $ 14 million in the nine months ended September 30, 2023.

(5) At September 30, 2024, $ 102 million of our net restructuring liability was recorded within other current liabilities and $ 83 million was recorded within other long-term liabilities.

Implementation Costs

4 unchanged sentences

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

Within our continuing results of operations, we recorded implementation costs of $ 12 million in the three months ended June 30, 2024 and $ 4 million in the three months ended June 30, 2023, and we recorded implementation costs of $ 23 million in the six months ended June 30, 2024 and $ 9 million in the six months ended June 30, 2023.

Within our continuing results of operations, we recorded implementation costs of $ 17 million in the three months ended September 30, 2024 and $ 4 million in the three months ended September 30, 2023, and we recorded implementation costs of $ 40 million in the nine months ended September 30, 2024 and $ 13 million in the nine months ended September 30, 2023.

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

Restructuring and Implementation Costs

During the three and six months ended June 30, 2024 and June 30, 2023, and since inception of the Simplify to Grow Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes:

During the three and nine months ended September 30, 2024 and September 30, 2023, and since inception of the Simplify to Grow Program, we recorded the following restructuring and implementation costs within segment operating income and earnings before income taxes:

America AMEA Europe North

1 unchanged sentence

(in millions)

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

Restructuring Costs $ 1 $ 4 $ ( 11 ) $ 2 $ ( 1 ) $ ( 5 )

1 unchanged sentence

Total $ 1 $ 4 $ ( 6 ) $ 11 $ 2 $ 12

For the Three Months Ended June 30, 2023

For the Three Months Ended September 30, 2023

Restructuring Costs $ ( 1 ) $ 5 $ — $ 11 $ 1 $ 16

1 unchanged sentence

Total $ — $ 4 $ 1 $ 12 $ 3 $ 20

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

Restructuring Costs $ 4 $ 5 $ 31 $ 1 $ ( 1 ) $ 40

1 unchanged sentence

Total $ 4 $ 5 $ 41 $ 22 $ 8 $ 80

For the Six Months Ended June 30, 2023

For the Nine Months Ended September 30, 2023

Restructuring Costs $ ( 2 ) $ 7 $ 27 $ 16 $ — $ 48

8 unchanged sentences

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

As of June 30, 2024 As of December 31, 2023

As of September 30, 2024 As of December 31, 2023

Outstanding Weighted-

5 unchanged sentences

Total short-term borrowings $ 1,484 $ 420

Our uncommitted credit lines and committed credit lines available as of June 30, 2024 and December 31, 2023 include:

As of June 30, 2024 As of December 31, 2023

Our uncommitted credit lines and committed credit lines available as of September 30, 2024 and December 31, 2023 include:

As of September 30, 2024 As of December 31, 2023

Facility Amount Borrowed Amount Facility Amount Borrowed Amount

7 unchanged sentences

4,500 — 4,500 —

432 432 277 277

(1) Prior year facility amount has been revised.

1 unchanged sentence

The revolving credit agreements include a covenant that we maintain a minimum shareholders' equity of at least $ 25.0 billion, excluding accumulated other comprehensive earnings/(losses), the cumulative effects of any changes in accounting principles and earnings/(losses) recognized in connection with the ongoing application of any mark-to-market accounting for pensions and other retirement plans.

At June 30, 2024, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $ 39.2 billion.

At September 30, 2024, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $ 39.4 billion.

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

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(3) On April 18, 2023, and subsequently amended on October 3, 2023 and April 4, 2024, we entered into a credit facility secured by pledged deposits classified as long-term other assets.

Draw downs on the facility bear a variable rate based on SOFR plus applicable margin.

On April 5, 2024, we drew down $ 0.15 billion which is due on February 15, 2029.

Draw downs on the facility bore a variable rate based on SOFR plus applicable margin.

On August 13, 2024, we repaid all amounts borrowed and terminated this credit facility.

Debt Repayments

During the six months ended June 30, 2024, we repaid the following notes (in millions):

During the nine months ended September 30, 2024, we repaid the following notes (in millions):

Interest Rate Maturity Date Amount USD Equivalent

2.125 % March 2024 $ 500 $ 500

During the six months ended June 30, 2023, we did no t complete any debt repayments.

2.250 % September 2024 (1)

0.000 % September 2024 (1) (2)

0.750 % September 2024 (1)

0.617 % September 2024 Fr.

(1) Repaid by Mondelez International Holdings Netherlands B.V.

("MIHN"), a wholly owned Dutch subsidiary of Mondelēz International, Inc.

(2) Repayment of € 300 million exchangeable bonds.

Refer to Note 6, Investments for additional detail on these exchangeable bonds.

During the nine months ended September 30, 2023, we did no t complete any debt repayments.

Debt Issuances

During the six months ended June 30, 2024, we issued the following notes (in millions):

During the nine months ended September 30, 2024, we issued the following notes (in millions):

Issuance Date

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February 2024 4.750 % February 2029 $ 550 $ 550

July 2024 4.625 % July 2031 C$ 650 $ 473

August 2024 4.750 % August 2034 $ 500 $ 500

(1) Represents gross proceeds from the issuance of notes excluding debt issuance costs, discounts and premiums .

During the six months ended June 30, 2023, we did no t complete any debt issuances.

On July 3, 2024, we issued C$ 650 million ($ 473 million) of 4.625 % notes due July 2031.

During the nine months ended September 30, 2023, we did no t complete any debt issuances.

Fair Value of Our Debt

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

As of June 30, 2024 As of December 31, 2023

As of September 30, 2024 As of December 31, 2023

(in millions)

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For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

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

As of June 30, 2024 As of December 31, 2023

As of September 30, 2024 As of December 31, 2023

Derivatives Liability

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We recorded the fair value of our derivative instruments in the condensed consolidated balance sheet as follows:

As of June 30, 2024 As of December 31, 2023

As of September 30, 2024 As of December 31, 2023

(in millions)

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

As of June 30, 2024

As of September 30, 2024

Fair Value of Net

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Commodity derivatives are valued using an income approach based on the observable market commodity index prices less the contract rate multiplied by the notional amount or based on pricing models that rely on market observable inputs such as commodity prices.

Our bifurcated exchange options are valued, as derivative instrument liabilities, using the Black-Scholes option pricing model.

This model requires assumptions related to the market price of the underlying note and associated credit spread combined with the share of price, expected dividend yield, and expected volatility of the JDE Peet’s shares over the life of the option.

Our calculation of the fair value of interest rate swaps is derived from a discounted cash flow analysis based on the terms of the contract and the observable market interest rate curve.

7 unchanged sentences

Notional Amount

As of June 30,

As of September 30,

2024 As of December 31, 2023

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Refer to Note 13, Reclassifications from Accumulated Other Comprehensive Income for additional information on current period activity.

Based on current market conditions, we would expect to transfer gains of $ 48 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months.

Based on current market conditions, we would expect to transfer losses of $ 70 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months.

Cash Flow Hedge Coverage

As of June 30, 2024, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 4 years, 6 months .

As of September 30, 2024, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 4 years, 3 months .

Hedges of Net Investments in International Operations

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operations against movements in exchange rates.

The aggregate notional value as of June 30, 2024 was $ 8.0 billion.

The aggregate notional value as of September 30, 2024 was $ 8.9 billion.

Net investment hedge derivative contract impacts on other comprehensive earnings and net earnings were:

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

(in millions)

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

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

$ ( 250 ) $ 72 $ ( 65 ) $ 89

2 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

6 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

6 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

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

September 30, For the Nine Months Ended

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

2024 2023 2024 2023

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Total $ ( 66 ) $ 88 $ 953 $ 278

(1) Equity method investment contracts consist of the bifurcated embedded derivative option that was a component of the September 20, 2021 € 300 million exchangeable bonds issuance and terminates on September 20, 2024.

(1) Equity method investment contracts consisted of the bifurcated embedded derivative option that were a component of the September 20, 2021 € 300 million exchangeable bonds issuance and expired on September 20, 2024.

Refer to Note 6, Investments .

2 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

2 unchanged sentences

Changes in fair value (1)

( 350 ) 35 ( 315 ) 50

Payments ( 93 ) — ( 147 ) ( 90 )

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Contingent consideration was recorded at fair value in the condensed consolidated balance sheets as follows:

As of June 30, 2024

As of September 30, 2024

Total Fair Value of

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(1) In connection with the Clif Bar acquisition, we entered into a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain net revenue, gross profit and EBITDA targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price.

The other contingent consideration liabilities are recorded at fair value within long-term liabilities.

The estimated fair value of the contingent consideration obligation at the acquisition date was determined using a Monte Carlo simulation and recorded in other liabilities.

The contingent consideration liabilities are recorded at fair value within long-term liabilities.

The estimated fair value of the contingent consideration obligation is determined using a Monte Carlo simulation.

Significant assumptions used in assessing the fair value of the liability include financial projections for net revenue, gross profit, and EBITDA, as well as discount and volatility rates.

Fair value adjustments are primarily recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings.

(2) The other contingent consideration liabilities are recorded at fair value, with $ 93 million and $ 132 million classified as other current liabilities at June 30, 2024 and December 31, 2023, respectively.

Fair value adjustments are recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings.

Payment is expected to be made in the third quarter of 2024, and the majority will be classified within cash flows provided by operating activities in the consolidated statement of cash flows.

During the three months ended September 30, 2024, the expected forecast for 2025 and 2026 has been updated to reflect recent trends in business performance and market outlook which resulted in a reduction in the fair value of the contingent consideration.

(2) The other contingent consideration liabilities were recorded at fair value, with $ 132 million classified as other current liabilities at December 31, 2023.

Fair value adjustments were recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings through the second quarter of 2024.

Payments on outstanding amounts as of December 31, 2023 were made in the second and third quarter of 2024, and the majority was classified within cash flows provided by operating activities in the consolidated statement of cash flows.

Benefit Plans

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For the Three Months Ended

June 30, For the Three Months Ended

September 30, For the Three Months Ended

September 30,

2024 2023 2024 2023

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Net loss from experience differences — — 16 10

Prior service cost

Settlement losses and other expenses 3 5 — —

2 unchanged sentences

Plans Non-U.S.

For the Six Months Ended

June 30, For the Six Months Ended

For the Nine Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

10 unchanged sentences

Employer Contributions

During the six months ended June 30, 2024, we contributed $ 1 million to our U.S.

During the nine months ended September 30, 2024, we contributed $ 2 million to our U.S.

pension plans and $ 61 million to our non-U.S.

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

As of June 30, 2024, we plan to make further contributions of approximately $ 3 million to our U.S.

As of September 30, 2024, we plan to make further contributions of approximately $ 2 million to our U.S.

plans and $ 18 million to our non-U.S.

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Our actual contributions may be different due to many factors, including changes in tax and other benefit laws, significant differences between expected and actual pension asset performance or interest rates.

As of October 2024, we intend to terminate the Mondelēz Global LLC Retirement Plan (“MDLZ Global Plan”), pending completion of applicable regulatory approvals.

The MDLZ Global Plan is the pension plan for US salaried employees and the termination process is part of a pension buyout transaction which is expected to be completed in 2025.

The participants have been notified of the Company’s intent to terminate the MDLZ Global Plan.

Multiemployer Pension Plans

On July 11, 2019, we received an undiscounted withdrawal liability assessment from the Bakery and Confectionery Union and Industry International Pension Fund totaling $ 491 million requiring pro-rata monthly payments over 20 years.

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

In connection with the discounted long-term liability, we recorded accreted interest of $ 3 million for the three months ended June 30, 2024 and $ 2 million for the three months ended June 30, 2023 and $ 5 million for the six months ended June 30, 2024 and 2023, within Interest and other expense, net in the condensed consolidated statement of earnings.

As of June 30, 2024, the remaining discounted withdrawal liability was $ 320 million, with $ 16 million recorded in Other current liabilities and $ 304 million recorded in Long-term other liabilities in the condensed consolidated balance sheet.

In connection with the discounted long-term liability, we recorded accreted interest of $ 2 million for the three months ended September 30, 2024 and $ 3 million for the three months ended September 30, 2023 and $ 7 million for the nine months ended September 30, 2024 and $ 8 million for the

nine months ended September 30, 2023, within Interest and other expense, net in the condensed consolidated statement of earnings.

As of September 30, 2024, the remaining discounted withdrawal liability was $ 316 million, with $ 16 million recorded in Other current liabilities and $ 300 million recorded in Long-term other liabilities in the condensed consolidated balance sheet.

Postretirement and Postemployment Benefit Plans

The net periodic postretirement (benefit)/cost was $( 2 ) million for the three months ended June 30, 2024 and $( 5 )

million for the six months ended June 30, 2024 and $( 2 ) million for the three and six months ended June 30, 2023.

The net periodic postemployment cost was $ 6 million for the three months ended June 30, 2024 and $ 11 million for the six months ended June 30, 2024 and zero for the three months ended June 30, 2023 and $ 1 million for the six months ended June 30, 2023.

The net periodic postretirement (benefit)/cost was $( 3 ) million for the three months ended September 30, 2024 and $( 8 ) million for the nine months ended September 30, 2024 and $( 2 ) million for the three months ended September 30, 2023 and $( 4 ) million for the nine months ended September 30, 2023.

The net periodic postemployment cost was $ 5 million for the three months ended September 30, 2024 and $ 16 million for the nine months ended September 30, 2024 and $ 2 million for the three months ended September 30, 2023 and $ 3 million for the nine months ended September 30, 2023.

On May 22, 2024, our shareholders approved the 2024 Performance Incentive Plan (the “2024 PIP”), which replaces our Amended and Restated 2005 Performance Incentive Plan (the “2005 Plan”).

1 unchanged sentence

As of May 22, 2024, we may not make any grants under the 2005 Plan.

As of June 30, 2024, there were 50.7 million shares available to be granted under the 2024 PIP.

As of September 30, 2024, there were 50.7 million shares available to be granted under the 2024 PIP.

Stock Options

11 unchanged sentences

Options canceled ( 330,110 ) 62.48

Balance at June 30, 2024 18,492,908 53.50 5 years $ 238 million

(1) Cash received from options exercised was $ 17 million in the three months and $ 96 million in the six months ended June 30, 2024.

The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $ 1 million in the three months and $ 11 million in the six months ended June 30, 2024.

Balance at September 30, 2024 16,674,974 54.50 5 years $ 320 million

(1) Cash received from options exercised was $ 74 million in the three months and $ 170 million in the nine months ended September 30, 2024.

The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $ 8 million in the three months and $ 19 million in the nine months ended September 30, 2024.

Performance Share Units and Other Stock-Based Awards

15 unchanged sentences

( 306,770 ) 66.22

Balance at June 30, 2024 4,717,995 67.54

Balance at September 30, 2024 4,663,509 67.52

(1) Includes PSUs and DSUs.

(2) Includes PSUs, DSUs and other stock-based awards.

(3) The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested was zero in the three months and $ 7 million in the six months ended June 30, 2024.

(3) The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested was zero in the three months and $ 7 million in the nine months ended September 30, 2024.

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

5 unchanged sentences

Repurchases under the program are determined by management and are wholly discretionary.

During the six months ended June 30, 2024, we repurchased approximately 15 million shares of Common Stock at an average cost of $ 70.52 per share, or an aggregate cost of approximately $ 1.0 billion, all of which was paid during the period except for approximately $ 5 million settled in July 2024.

During the nine months ended September 30, 2024, we repurchased approximately 17 million shares of Common Stock at an average cost of $ 70.09 per share, or an aggregate cost of approximately $ 1.2 billion, all of which was paid during the period.

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

As of June 30, 2024, we have approximately $ 3.4 billion in remaining share repurchase capacity.

As of September 30, 2024, we have approximately $ 3.2 billion in remaining share repurchase capacity.

Commitments and Contingencies

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Commodity Futures Trading Commission ("CFTC") filed a complaint against Kraft Foods Group and Mondelēz Global LLC (“Mondelēz Global”) in the U.S.

District Court for the Northern District of Illinois (the "District Court") related to the trading of December 2011 wheat futures contracts that occurred prior to the spin-off of Kraft Foods Group.

District Court for the Northern District of Illinois

(the "District Court") related to the trading of December 2011 wheat futures contracts that occurred prior to the spin-off of Kraft Foods Group.

The complaint alleged that Mondelēz Global:

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

As previously disclosed, we have been cooperating with the investigation.

As previously disclosed, we have cooperated with the investigation.

In the fourth quarter of 2022, we had accrued (in accordance with U.S.

1 unchanged sentence

During the fourth quarter of 2023, we adjusted our accrual to a liability of € 340 million ($ 375 million).

In the second quarter of 2024, we reached a

negotiated resolution in this matter and adjusted our accrual from a liability of € 340 million to € 337.5 million ($ 362 million), on a pre-tax basis.

Pursuant to the agreed settlement, we plan to make payment in August 2024.

In the second quarter of 2024, we reached a negotiated resolution in this matter and adjusted our accrual from a liability of € 340 million to € 337.5 million ($ 376 million), on a pre-tax basis.

Pursuant to the terms of the agreed settlement, we fulfilled our payment obligation in August 2024.

We do not anticipate any modification of our business practices and agreements that would have a material impact on our ongoing business operations within the European Union.

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

As of June 30, 2024 and December 31, 2023, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

As of September 30, 2024 and December 31, 2023, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

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

2 unchanged sentences

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

Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net (losses)/gains of $( 2 ) million in the second quarter of 2024 and $ 11 million in the second quarter of 2023 and $ 21 million in the first six months of 2024 and $ 41 million in the first six months of 2023.

Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net (losses)/gains of $( 71 ) million in the third quarter of 2024 and $ 35 million in the third quarter of 2023 and $( 50 ) million in the first nine months of 2024 and $( 6 ) million in the first nine months of 2023.

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

24 unchanged sentences

Losses/(gains) reclassified into net earnings:

Currency exchange contracts (2)

Interest rate contracts (2)

1 unchanged sentence

Tax expense/(benefit) on reclassifications (3)

( 1 ) 1 ( 2 ) 3

Currency impact ( 1 ) ( 1 ) — —

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(3) Taxes reclassified to earnings are recorded within the provision for income taxes.

As of the second quarter of 2024, our estimated annual effective tax rate, which excludes discrete tax impacts, was 27.8 %.

As of the third quarter of 2024, our estimated annual effective tax rate, which excludes discrete tax impacts, was 27.3 %.

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

tax laws as well as the net unfavorable impact attributable to jurisdictional mix of pre-tax income and applicable tax rates.

Our 2024 second quarter effective tax rate was 34.7 % and includes discrete tax impacts in connection with unrealized gains and losses on hedging activities.

Excluding these impacts, our effective tax rate for the three months ended June 30, 2024 was 28.5 %.

Our 2024 third quarter effective tax rate was 28.8 % and includes discrete tax impacts in connection with unrealized gains and losses on hedging activities.

Excluding these impacts, our effective tax rate for the three months ended September 30, 2024 was 25.6 %.

The 25.6 % reflects the impact of unfavorable foreign provisions under U.S.

tax laws as well as the net unfavorable impact attributable to jurisdictional mix of pre-tax income and applicable tax rates.

Our effective tax rate for the six months ended June 30, 2024 of 26.2 % also includes discrete tax impacts in connection with unrealized gains and losses on hedging activities.

Excluding these impacts, our effective tax rate for the six months ended June 30, 2024 was 27.2 %.

Our effective tax rate for the nine months ended September 30, 2024 of 26.9 % also includes discrete tax impacts in connection with unrealized gains and losses on hedging activities.

Excluding these impacts, our effective tax rate for the nine months ended September 30, 2024 was 26.6 %.

The 26.6 % reflects the impact of unfavorable foreign provisions under U.S.

tax laws as well as the net unfavorable impact attributable to jurisdictional mix of pre-tax income and applicable tax rates.

As of the second quarter of 2023, our estimated annual effective tax rate, which excluded discrete tax impacts, was 24.6 %.

As of the third quarter of 2023, our estimated annual effective tax rate, which excluded discrete tax impacts, was 25.9 %.

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

1 unchanged sentence

jurisdictions.

Our 2023 second quarter effective tax rate of 23.1 % included a net tax benefit related to gains and losses on KDP marketable securities and a net tax expense incurred in connection with unrealized gains and losses on hedging activities as well as other discrete net tax expense.

Our effective tax rate for the six months ended June 30, 2023 of 27.3 % was higher due to a $ 127 million net tax expense incurred in connection with the KDP share sale during the first quarter (the earnings are reported separately on our statement of earnings and thus not included in earnings before income taxes).

Excluding this impact, our effective tax rate for the six months ended June 30, 2023 was 23.6 %.

Our 2023 third quarter effective tax rate of 26.6 % included a net tax expense incurred in connection with unrealized gains and losses on hedging activities as well as other discrete net tax benefits.

Our effective tax rate for the nine months ended September 30, 2023 of 27.1 % was higher due to a $ 127 million net tax expense incurred in connection with the KDP share sale during the first quarter (the earnings are reported separately on our statement of earnings and thus not included in earnings before income taxes).

Excluding this impact, our effective tax rate for the nine months ended September 30, 2023 was 24.4 %.

The 24.4 % rate also included net tax expense related to gains and losses on KDP marketable securities as well as the associated pre-tax impacts.

2 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

13 unchanged sentences

We exclude antidilutive Mondelēz International stock options and long-term incentive plan shares from our calculation of weighted-average shares for diluted EPS.

We excluded antidilutive stock options and performance share units of 4.2 million for the three months ended June 30, 2024 and 2.8 million for the three months ended June 30, 2023 and 3.4 million for the six months ended June 30, 2024 and 2.7 million for the six months ended June 30, 2023.

We excluded antidilutive stock options and performance share units of 3.7 million for the three months ended September 30, 2024 and 2.5 million for the three months ended September 30, 2023 and 3.3 million for the nine months ended September 30, 2024 and 2.8 million for the nine months ended September 30, 2023.

Segment Reporting

14 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2024 2023 2024 2023

16 unchanged sentences

Amortization of intangible assets ( 40 ) ( 38 ) ( 115 ) ( 114 )

Acquisition-related costs ( 2 ) — ( 2 ) —

Operating income 1,153 1,379 4,734 4,309

2 unchanged sentences

(Loss)/gain on marketable securities — ( 1 ) — 606

— ( 189 ) — 607

Earnings before income taxes $ 1,132 $ 1,331 $ 4,664 $ 4,717

Items impacting our segment operating results are discussed in Note 1, Basis of Presentation , Note 2, Divestitures, Note 3, Inventories , Note 4, Property, Plant and Equipment, Note 5, Goodwill and Intangible Assets, and Note 7, Restructuring Program .

Items impacting our segment operating results are discussed in Note 1, Basis of Presentation , Note 2, Acquisitions and Divestitures, Note 3, Inventories , Note 4, Property, Plant and Equipment, Note 5, Goodwill and Intangible Assets, and Note 7, Restructuring Program .

Also see Note 8, Debt and Borrowing Arrangements , and Note 9, Financial Instruments, for additional information on our interest and other expense, net for each period.

Net revenues by product category were:

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

America AMEA Europe North

7 unchanged sentences

Total net revenues $ 1,204 $ 1,851 $ 3,323 $ 2,826 $ 9,204

For the Three Months Ended June 30, 2023

For the Three Months Ended September 30, 2023

America AMEA Europe North

8 unchanged sentences

$ 1,305 $ 1,791 $ 3,086 $ 2,847 $ 9,029

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

America AMEA Europe North

8 unchanged sentences

$ 3,755 $ 5,388 $ 9,565 $ 8,129 $ 26,837

For the Six Months Ended June 30, 2023

For the Nine Months Ended September 30, 2023

America AMEA Europe North

8 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements