What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-07-29 compared with 2025-04-29 · 322 added, 178 removed, 664 unchanged (43% of the section changed)

6 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

Net revenues $ 8,984 $ 8,343 $ 18,297 $ 17,633

3 unchanged sentences

Asset impairments and exit costs

( 2 ) ( 15 ) ( 4 ) ( 62 )

Amortization of intangible assets ( 38 ) ( 37 ) ( 75 ) ( 75 )

Operating income 1,172 854 1,852 3,581

Benefit plan non-service income

Benefit plan non-service (expense)/income

( 264 ) 28 ( 246 ) 51

Interest and other expense, net ( 53 ) ( 32 ) ( 206 ) ( 100 )

2 unchanged sentences

Loss on equity method investment transactions

— — — ( 665 )

Equity method investment net earnings 19 48 35 79

14 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

Net earnings $ 644 $ 603 $ 1,051 $ 2,019

71 unchanged sentences

Interest Total

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Balances at April 1, 2025 $ — $ 32,233 $ 36,263 $ ( 11,979 ) $ ( 30,732 ) $ 38 $ 25,823

Comprehensive earnings/(losses):

Net earnings — — 641 — — 3 644

Other comprehensive earnings/(losses),

net of income taxes

— — — 418 — 17 435

Exercise of stock options and issuance of

other stock awards

— 47 — — 24 — 71

Common Stock repurchased — — — — ( 111 ) — ( 111 )

Cash dividends declared ($ 0.470 per share)

— — ( 611 ) — — — ( 611 )

Dividends paid on noncontrolling interest

and other activities

— — — — — ( 4 ) ( 4 )

Balances at June 30, 2025 $ — $ 32,280 $ 36,293 $ ( 11,561 ) $ ( 30,819 ) $ 54 $ 26,247

Six Months Ended June 30, 2025

Balances at January 1, 2025 $ — $ 32,276 $ 36,476 $ ( 12,471 ) $ ( 29,349 ) $ 26 $ 26,958

10 unchanged sentences

— — ( 1,222 ) — — — ( 1,222 )

Balances at March 31, 2025 $ — $ 32,233 $ 36,263 $ ( 11,979 ) $ ( 30,732 ) $ 38 $ 25,823

Three Months Ended March 31, 2024

Dividends paid on noncontrolling interest

and other activities

— — — — — ( 4 ) ( 4 )

Balances at June 30, 2025 $ — $ 32,280 $ 36,293 $ ( 11,561 ) $ ( 30,819 ) $ 54 $ 26,247

Three Months Ended June 30, 2024

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

Comprehensive earnings/(losses):

Net earnings — — 601 — — 2 603

Other comprehensive earnings/(losses),

net of income taxes

— — — ( 383 ) — ( 2 ) ( 385 )

Exercise of stock options and issuance of

other stock awards

— 37 2 — 20 — 59

Common Stock repurchased — — — — ( 501 ) — ( 501 )

Cash dividends declared ($ 0.425 per share)

— — ( 569 ) — — — ( 569 )

Dividends paid on noncontrolling interest

and other activities

— — — — — ( 3 ) ( 3 )

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

Six Months Ended June 30, 2024

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

10 unchanged sentences

— — ( 1,144 ) — — — ( 1,144 )

Balances at March 31, 2024 $ — $ 32,163 $ 35,074 $ ( 11,132 ) $ ( 27,623 ) $ 32 $ 28,514

Dividends paid on noncontrolling interest

and other activities

— — — — — ( 3 ) ( 3 )

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

See accompanying notes to the condensed consolidated financial statements.

3 unchanged sentences

(in millions of U.S.

For the Three Months Ended

For the Six Months Ended

CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES

9 unchanged sentences

Unrealized loss/(gain) on derivative contracts

689 ( 1,134 )

Contingent consideration adjustments

15 unchanged sentences

Payments for derivative settlements

( 55 ) ( 114 )

Proceeds from/(contributions to) investments

3 unchanged sentences

CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES

Net issuance/(repayment) of short-term borrowings

1,841 ( 166 )

Net issuance of short-term borrowings

Long-term debt proceeds 1,594 702

27 unchanged sentences

Within our consolidated entities, Argentina, Türkiye, Egypt and Nigeria are accounted for as highly inflationary countries.

Argentina, Türkiye, Egypt and Nigeria represent 1.5 %, 0.8 %, 0.4 % and 0.3 %, respectively, of our consolidated net revenues for the three months ended March 31, 2025.

The aggregate losses from remeasurements of monetary assets and liabilities into our reporting currency for the highly inflationary countries were $( 7 ) million and $( 8 ) million for the three months ended March 31, 2025 and 2024, respectively.

Argentina, Türkiye, Egypt and Nigeria represent 1.6 %, 0.6 %, 0.5 % and 0.3 %, respectively, of our consolidated net revenues for the three months ended June 30, 2025 and 1.6 %, 0.7 %, 0.5 % and 0.3 % of our consolidated net revenues for the six months ended June 30, 2025.

The aggregate losses from remeasurements of monetary assets and liabilities into our reporting currency for the highly inflationary countries were $ 8 million and $ 9 million for the three months ended June 30, 2025 and 2024, respectively, and $ 15 million and $ 17 million for the six months ended June 30, 2025 and 2024, respectively.

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 $ 64 million as of March 31, 2025 and $ 49 million as of December 31, 2024.

Total cash, cash equivalents and restricted cash was $ 1,625 million as of March 31, 2025 and $ 1,400 million as of December 31, 2024.

Restricted cash is recorded within other current assets and was $ 83 million as of June 30, 2025 and $ 49 million as of December 31, 2024.

Total cash, cash equivalents and restricted cash was $ 1,587 million as of June 30, 2025 and $ 1,400 million as of December 31, 2024.

Allowances for Credit Losses

3 unchanged sentences

Balance at January 1, 2025 $ ( 37 ) $ ( 37 ) $ ( 16 )

Net recovery for expected credit losses

Write-offs charged against the allowance 2 — —

Currency and other

( 3 ) ( 4 ) ( 1 )

Balance at March 31, 2025 $ ( 37 ) $ ( 38 ) $ ( 17 )

Balance at June 30, 2025 $ ( 38 ) $ ( 40 ) $ ( 17 )

Transfers of Financial Assets

The outstanding principal amount of receivables under our uncommitted revolving non-recourse accounts receivable factoring arrangements amounted to $ 576 million as of March 31, 2025 and $ 159 million as of December 31, 2024.

The outstanding principal amount of receivables under our uncommitted revolving non-recourse accounts receivable factoring arrangements amounted to $ 862 million as of June 30, 2025 and $ 159 million as of December 31, 2024.

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 $ 38 million in operating lease and $ 51 million in finance lease right-of-use assets obtained in exchange for lease obligations during the three months ended March 31, 2025 and $ 12 million in operating lease

and $ 22 million in finance lease right-of-use assets obtained in exchange for lease obligations during the three months ended March 31, 2024.

We recorded $ 71 million in operating lease and $ 94 million in finance lease right-of-use assets obtained in exchange for lease obligations during the six months ended June 30, 2025 and $ 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.

Supply Chain Financing

2 unchanged sentences

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

Our outstanding obligations confirmed as valid under our SCF program are $ 3.7 billion and $ 3.5 billion as of March 31, 2025 and December 31, 2024, respectively.

Our outstanding obligations confirmed as valid under our SCF program are $ 3.7 billion as of both June 30, 2025 and December 31, 2024, respectively.

New Accounting Pronouncements

In December 2023, the FASB issued an Accounting Standards Update ("ASU") which enhances the transparency of annual income tax disclosures, primarily related to the rate reconciliation and income taxes paid information.

The ASU is effective for fiscal years beginning after December 15, 2024 and early adoption is permitted.

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

In November 2024, the FASB issued an ASU that requires incremental disclosures in the notes to the financial statements to disaggregate certain income statement expense line items.

The ASU is effective for fiscal years beginning after December 15, 2026 and early adoption is permitted.

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

In December 2023, the FASB issued an Accounting Standards Update ("ASU") to enhance the transparency of annual income tax disclosures, primarily related to the rate reconciliation and income taxes paid.

The ASU is effective for fiscal years beginning after December 15, 2024 with early adoption permitted.

We will adopt the guidance when it becomes effective, for our annual reporting for the year ending December 31, 2025.

In November 2024, the FASB issued an ASU that will require incremental disclosures in the notes to the financial statements to disaggregate income statement expense line items into specified expense categories and to provide additional information about certain expenses.

The guidance is effective for the first annual reporting period beginning after December 15, 2026 and for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The guidance may be applied either on a prospective or retrospective basis.

We currently expect to adopt the guidance when it becomes effective, for our annual reporting for the year ending December 31, 2027 and for our interim reporting in the first quarter of 2028.

We are currently assessing whether we will adopt the guidance on a prospective or retrospective basis.

Acquisitions and Divestitures

13 unchanged sentences

Acquisition and Divestiture-Related Costs

We recorded a net gain of $ 8 million during the three months ended March 31, 2025 and incurred $ 43 million during the three months ended March 31, 2024 in total acquisition integration costs and contingent consideration adjustments.

We recorded a net gain of $ 4 million during the three months ended March 31, 2025 and incurred $ 4 million during the three months ended March 31, 2024 of total divestiture-related costs.

We recorded net gains of $ 21 million and $ 29 million in the three and six months ended June 30, 2025 and incurred $ 36 million and $ 79 million in the three and six months ended June 30, 2024 in total acquisition integration costs and contingent consideration adjustments.

We recorded net gains of $ 3 million and $ 7 million in the three and six months ended June 30, 2025 and incurred zero and $ 4 million in the three and six months ended June 30, 2024 in total divestiture-related costs.

Inventories consisted of the following:

As of March 31,

As of June 30,

2025 As of December 31, 2024

6 unchanged sentences

Property, plant and equipment consisted of the following:

As of March 31,

As of June 30,

2025 As of December 31, 2024

7 unchanged sentences

Property, plant and equipment, net $ 10,313 $ 9,481

For the three months ended March 31, 2025, capital expenditures of $ 277 million excluded $ 397 million of accrued capital expenditures remaining unpaid at March 31, 2025 and included payment for a portion of the $ 458 million of capital expenditures that were accrued and unpaid at December 31, 2024.

For the three months ended March 31, 2024, capital expenditures of $ 299 million excluded $ 418 million of accrued capital expenditures remaining unpaid at March 31, 2024 and included payment for a portion of the $ 471 million of capital expenditures that were accrued and unpaid at December 31, 2023.

For the six months ended June 30, 2025, capital expenditures of $ 582 million excluded $ 366 million of accrued capital expenditures remaining unpaid at June 30, 2025 and included payment for the $ 458 million of capital expenditures that were accrued and unpaid at December 31, 2024.

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.

Goodwill and Intangible Assets

2 unchanged sentences

(in millions)

January 1, 2024 $ 1,607 $ 3,065 $ 8,350 $ 10,874 $ 23,896

Currency ( 291 ) ( 147 ) ( 508 ) ( 55 ) ( 1,001 )

Acquisition (1)

— 122 — — 122

Balance at December 31, 2024 $ 1,316 $ 3,040 $ 7,842 $ 10,819 $ 23,017

Currency 143 71 1,073 37 1,324

Balance at March 31, 2025 $ 1,356 $ 3,057 $ 8,208 $ 10,818 $ 23,439

(1) Relates to purchase price allocation and subsequent adjustments for Evirth.

Balance at June 30, 2025 $ 1,459 $ 3,114 $ 8,915 $ 10,856 $ 24,344

(1) Relates to purchase price allocation adjustments for Evirth.

See Note 2, Acquisitions and Divestitures for additional information.

1 unchanged sentence

Intangible assets consisted of the following:

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

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

4 unchanged sentences

$ 22,164 $ ( 2,435 ) $ 19,729 $ 21,076 $ ( 2,228 ) $ 18,848

(1) We recorded intangible asset impairments of $ 153 million in 2024 within asset impairment and exit costs in the condensed consolidated statement of earnings.

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 ended March 31, 2025 and $ 38 million for the three months ended March 31, 2024.

For the next five years, we estimate annual amortization expense of approximately (reflecting March 31, 2025 exchange rates):

(in millions)

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

Amortization expense for intangible assets was $ 38 million and $ 37 million for the three months ended June 30, 2025 and 2024, respectively, and $ 75 million for both the six months ended June 30, 2025 and 2024, respectively.

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 first quarter of 2025, we evaluated our goodwill impairment and intangible asset impairment risk

through an assessment of potential triggering events.

We test our reporting units and indefinite-life intangible assets 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 2025, 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 and concluded there were no impairment indicators.

During our 2024 annual indefinite-life intangible assets testing, we recorded $ 153 million of intangible asset impairment charges 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.

Additionally, 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 March 31, 2025.

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 earnings, and expand margin are not met or specific valuation factors outside of our control, such as discount rates, change significantly then a brand or brands could become impaired in the future.

During our 2024 annual impairment testing, we recorded $ 153 million of asset impairment charges in the third quarter of 2024 related to two biscuit indefinite-life intangible assets in the Europe segment, one biscuit indefinite-life intangible asset in the AMEA segment and one candy and one biscuit indefinite-life intangible asset in the Latin America segment.

Additionally, we identified thirteen indefinite-life intangible assets that each had a fair value in excess of book value of 10% or less.

The aggregate book value of the thirteen indefinite-life intangible assets was $ 3.1 billion as of June 30, 2025.

While no triggering events were identified for those indefinite-life intangible assets during the six months ended June 30, 2025, we are continuing to closely monitor their performance.

If there are adverse changes to the related sales and earnings forecasts in the future, whether caused by business-specific or broader macroeconomic factors, one or more of those indefinite-life intangible assets could become impaired.

Equity Method Investments

Our current equity method investments primarily relate to our ownership interests in Dong Suh Foods Corporation and Dong Suh Oil & Fats Co.

As of March 31, 2025, we owned 50.0 % and 49.0 %, respectively, of these companies' outstanding shares.

As of June 30, 2025, we owned 50.0 % and 49.0 %, respectively, of these companies' outstanding shares.

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

Our investments accounted for under the equity method of accounting totaled $ 610 million as of March 31, 2025 and $ 635 million as of December 31, 2024.

We recorded equity earnings of $ 16 million and received cash dividends of $ 44 million in the three months ended March 31, 2025.

We recorded equity earnings of $ 31 million and received cash dividends of $ 81 million in the three months ended March 31, 2024, which included our prior investment in JDE Peet’s N.V.

Our investments accounted for under the equity method totaled $ 665 million as of June 30, 2025 and $ 635 million as of December 31, 2024.

We recorded equity earnings of $ 19 million and received no cash dividends in the three months ended June 30, 2025 and recorded equity earnings of $ 48 million and received cash dividends of $ 2 million in the three months ended June 30, 2024.

We recorded equity earnings of $ 35 million and received cash dividends of $ 44 million in the six months ended June 30, 2025 and recorded equity earnings of $ 79 million and received cash dividends of $ 82 million in the six months ended June 30, 2024.

The activity during 2024 included our prior investment in JDE Peet’s N.V.

During the fourth quarter of 2024, we sold our remaining 85.9 million shares in JDEP to JAB Holding Company and fully exited the investment.

During the three months ended March 31, 2024, we determined there was an other-than-temporary impairment of our investment in JDEP based on the period 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.

As a result, the investment was written down to its estimated fair value based on the closing price of the underlying equity security of € 19.46 per share on March 28, 2024, resulting in an impairment charge of € 612 million ($ 665 million).

This charge was included within Loss on equity method investment transactions in the condensed consolidated statement of earnings.

During the three months ended March 31, 2024, we recorded an impairment charge of € 612 million ($ 665 million) related to our JDEP investment.

This charge was included within Loss on equity method investment transactions in the condensed consolidated statements of earnings.

Debt and Borrowing Arrangements

1 unchanged sentence

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

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

Outstanding Weighted-

5 unchanged sentences

Total short-term borrowings $ 1,664 $ 71

Our uncommitted credit lines and committed credit lines available include:

As of March 31, 2025 As of December 31, 2024

Our uncommitted and committed credit facilities available include:

As of June 30, 2025 As of December 31, 2024

Facility Amount Borrowed Amount Facility Amount Borrowed Amount

11 unchanged sentences

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 any mark-to-market accounting for pensions and other retirement plans.

At March 31, 2025, we complied with this covenant.

At June 30, 2025, we complied with this covenant.

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

1 unchanged sentence

Debt Repayments

During the three months ended March 31, 2025, we repaid the following notes (in millions):

During the six months ended June 30, 2025, we repaid the following notes (in millions):

Interest Rate Maturity Date Amount USD Equivalent

3.250 % March 2025 C$ 600 $ 417

During the three months ended March 31, 2024, we repaid the following notes (in millions):

1.500 % May 2025 $ 750 $ 750

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

Interest Rate Maturity Date Amount USD Equivalent

1 unchanged sentence

Debt Issuances

During the three months ended March 31, 2025, we did not complete any debt issuances.

During the three months ended March 31, 2024, we issued the following notes (in millions):

During the six months ended June 30, 2025, we issued the following notes (in millions):

Issuance Date

2 unchanged sentences

USD Equivalent

May 2025 4.250 % May 2028 $ 700 $ 700

May 2025 4.500 % May 2030 $ 500 $ 500

May 2025 5.125 % May 2035 $ 400 $ 400

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

Issuance Date

Interest Rate Maturity Date Principal Amount

Principal Amount

USD Equivalent

February 2024 4.750 % February 2029 $ 550 $ 550

2 unchanged sentences

The fair value of substantially all of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data).

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

(in millions)

4 unchanged sentences

For the Three Months Ended

(in millions)

June 30, For the Six Months Ended

2025 2024 2025 2024

(in millions) (in millions)

Interest expense

Other expense/(income), net

$ 151 $ 130 $ 288 $ 252

Other income, net

( 98 ) ( 98 ) ( 82 ) ( 152 )

Interest and other expense, net $ 53 $ 32 $ 206 $ 100

Other expense/(income), net includes amortization of amounts excluded from our assessment of hedge effectiveness related to our net investment hedge derivative contracts, foreign currency transaction gains and losses on certain foreign currency denominated assets and liabilities, gains and losses on certain foreign currency derivative contracts, interest income and other non-operating items.

Other income, net includes amortization of amounts excluded from our assessment of hedge effectiveness related to our net investment hedge derivative contracts, foreign currency transaction gains and losses on certain foreign currency denominated assets and liabilities, gains and losses on certain foreign currency derivative contracts, interest income and other non-operating items.

Refer to Note 8, Financial Instruments for additional information about our hedging activities.

2 unchanged sentences

Fair Value of Derivative Instruments

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

As of March 31, 2025 As of December 31, 2024

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

As of June 30, 2025 As of December 31, 2024

Derivatives Liability

1 unchanged sentence

Derivatives Liability

Type of Hedge (1)

(in millions)

1 unchanged sentence

accounting hedges (2) :

Interest rate contracts (1)

Foreign currency contracts

$ — $ 344 $ 5 $ 5

Net investment hedge derivative contracts (2)

Interest rate contracts

Cross-currency swap contracts

212 554 382 69

2 unchanged sentences

accounting hedges:

Currency exchange contracts $ 176 $ 146 $ 302 $ 118

Foreign currency contracts

$ 190 $ 192 $ 302 $ 118

Commodity contracts 794 718 2,205 1,522

2 unchanged sentences

Total fair value $ 1,199 $ 1,811 $ 2,899 $ 1,725

(1) Interest rate contracts designated as cash flow hedging instruments.

(2) Net investment hedge derivative contracts consist of cross-currency interest rate swaps, forward contracts and options.

We also designate some of our non-U.S.

(1) Derivative contracts designated as either cash flow ("CF") or net investment hedging ("NIH") instruments.

(2) We designate some of our non-U.S.

dollar denominated debt to hedge a portion of our net investments in our non-U.S.

This debt is not reflected in the table above, but is included in long-term debt discussed in Note 7, Debt and Borrowing Arrangements .

Both net investment hedge derivative contracts and non-U.S.

dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote.

dollar denominated debt designated as net investment hedges is also disclosed in the Notional Amounts of Derivatives and Other Hedging Instruments table and the Hedges of Net Investments in International Operations section appearing later in this footnote.

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

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

(in millions)

4 unchanged sentences

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

As of March 31, 2025

As of June 30, 2025

Fair Value of Net

6 unchanged sentences

(in millions)

Currency exchange contracts $ 30 $ — $ 30 $ —

Foreign currency contracts

$ ( 346 ) $ — $ ( 346 ) $ —

Commodity contracts 76 28 48 —

Interest rate contracts — — — —

Net investment hedge contracts 43 — 43 —

Cross-currency swap contracts

( 342 ) — ( 342 ) —

Total derivatives $ ( 612 ) $ 28 $ ( 640 ) $ —

8 unchanged sentences

(in millions)

Currency exchange contracts $ 184 $ — $ 184 $ —

Foreign currency contracts

$ 184 $ — $ 184 $ —

Commodity contracts 683 ( 111 ) 794 —

Interest rate contracts ( 6 ) — ( 6 ) —

Net investment hedge contracts 255 — 255 —

Cross-currency swap contracts

Total derivatives $ 1,174 $ ( 111 ) $ 1,285 $ —

Level 1 fair value measurements use quoted prices in active markets for identical assets or liabilities.

Level 1 financial assets and liabilities consist of exchange-traded commodity futures and listed options.

The fair value of these instruments is determined based on quoted market prices on commodity exchanges.

Level 2 financial assets and liabilities consist primarily of over-the-counter (“OTC”) currency exchange forwards, options and swaps;

Level 2 fair value measurements use quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets with insufficient volume or infrequent transactions, or model-based valuations in which significant inputs are observable in the market.

Level 2 financial assets and liabilities consist primarily of over-the-counter (“OTC”) foreign currency forwards and options;

commodity forwards and options;

net investment hedge contracts;

and interest rate swaps.

Our currency exchange contracts are valued using an income approach based on observable market forward rates less the contract rate multiplied by the notional amount.

interest rate swaps;

and cross-currency swaps.

Our foreign currency contracts are valued using an income approach based on observable market forward rates less the contract rate multiplied by the notional amount.

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.

5 unchanged sentences

We manage the credit risk in connection with these and all our derivatives by entering into transactions with counterparties with investment grade credit ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties.

Derivative Volume

The gross notional values of our hedging instruments were:

Level 3 fair value measurements use unobservable inputs and include the use of judgment by management about the assumptions market participants use in pricing the asset or liability.

Level 3 financial liabilities consist of contingent consideration arrangements, which are presented in the Fair Value of Contingent Consideration section appearing later in this footnote.

Notional Amounts of Derivatives and Other Hedging Instruments

The gross notional values of our derivative instruments, as well as non-U.S.

dollar debt designated as net investment hedging instruments, were:

Notional Amount

As of March 31,

As of June 30,

2025 As of December 31, 2024

(in millions)

Currency exchange contracts

Foreign currency contracts

$ 20,667 $ 13,724

2 unchanged sentences

Interest rate contracts 2,089 4,189

Net investment hedges:

Net investment hedge derivative contracts 9,421 8,647

Cross-currency swap contracts

dollar debt designated as net investment hedges:

Euro notes 3,755 3,298

Swiss franc notes 252 220

1 unchanged sentence

Cash Flow Hedges

Our derivative instruments designated as cash flow hedges include interest rate swaps and cross-currency swaps.

As of June 30, 2025, the aggregate notional value of those derivatives was $ 1.6 billion.

Cash flow hedge activity, net of taxes, is recorded within accumulated other comprehensive earnings/(losses).

Refer to Note 12, Reclassifications from Accumulated Other Comprehensive Income for additional information on current period activity.

Based on current market conditions, we would expect to transfer losses of $ 24 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months.

Cash Flow Hedge Coverage

As of March 31, 2025, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 4 years.

Based on current market conditions, $ 57 million of losses, net of taxes, included in accumulated other comprehensive earnings/(losses) from cash flow hedges as of June 30, 2025 are expected to be recognized into earnings during the next 12 months.

As of June 30, 2025, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 3 years, 6 months .

Hedges of Net Investments in International Operations

Net investment hedge ("NIH") derivative contracts

We enter into cross-currency interest rate swaps, forwards and options to hedge certain investments in our non-U.S.

We enter into foreign currency contracts and cross-currency swaps to hedge certain investments in our non-U.S.

operations against movements in exchange rates.

As of March 31, 2025, the aggregate notional value was $ 9.4 billion.

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

As of June 30, 2025, the aggregate notional value of those derivatives was $ 9.3 billion.

Net investment hedge derivative contract pre-tax impacts on other comprehensive earnings/(losses) and net earnings were:

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

(in millions)

5 unchanged sentences

dollar debt designated as net investment hedges

G ains/(losses) related to non-U.S.

Pre-tax gains/(losses) related to non-U.S.

dollar debt designated as hedges of net investments in international operations, which are recorded within the cumulative translation adjustment section of other comprehensive earnings/(losses), were:

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

(in millions)

6 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

(in millions)

Currency exchange contracts:

Foreign currency contracts:

Cost of sales

1 unchanged sentence

Selling, general and administrative expenses

( 6 ) ( 6 ) ( 6 ) 1

Interest and other expense, net

( 63 ) 9 27 65

Commodity contracts - Cost of sales

19 ( 255 ) ( 390 ) 929

Interest rate contracts - Interest and other expense, net

Total $ ( 83 ) $ ( 253 ) $ ( 533 ) $ 1,019

Fair Value of Contingent Consideration

Contingent consideration liabilities, which reflect earn-out arrangements from business combinations, are recorded at fair value each period, with changes in fair value reported in earnings.

The fair values of our contingent consideration liabilities were $ 142 million and $ 179 million as of June 30, 2025 and December 31, 2024, respectively.

Contingent consideration liabilities are primarily recorded in O ther liabilities in the condensed consolidated balance sheets and changes in their fair values are primarily recorded in S elling, general and administrative expenses in the condensed consolidated statements of earnings.

The estimated fair values of our contingent consideration liabilities were primarily determined using Monte Carlo simulations.

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

Fair value measurements of contingent consideration liabilities are classified as Level 3 in the fair value hierarchy because they use unobservable inputs.

Contingent consideration liabilities include an earn-out arrangement related to the acquisition of Clif Bar & Company (“Clif Bar”) in 2022.

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

The following is a summary of our contingent consideration liability activity:

For the Three Months Ended

(in millions)

June 30, For the Six Months Ended

2025 2024 2025 2024

(in millions) (in millions)

Liability at beginning of period $ 167 $ 703 $ 179 $ 680

Changes in fair value

Liability at end of period $ 167 $ 703

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

As of March 31, 2025

Total Fair Value of

Liability Quoted Prices in

Active Markets

for Identical

(Level 1) Significant

Other Observable

(Level 2) Significant

(in millions)

( 26 ) 12 ( 38 ) 35

Total contingent consideration $ 167 $ — $ — $ 167

As of December 31, 2024

Total Fair Value of

Liability Quoted Prices in

Active Markets

for Identical

(Level 1) Significant

Other Observable

(Level 2) Significant

(in millions)

— ( 54 ) — ( 54 )

Total contingent consideration $ 179 $ — $ — $ 179

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

The contingent consideration liabilities are recorded at fair value and primarily recorded in other liabilities as of March 31, 2025 and December 31, 2024.

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 and recorded in other liabilities as of March 31, 2025 and December 31, 2024.

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

Liability at end of period $ 142 $ 661 $ 142 $ 661

Benefit Plans

4 unchanged sentences

For the Three Months Ended

March 31, For the Three Months Ended

June 30, For the Three Months Ended

2025 2024 2025 2024

7 unchanged sentences

$ 287 $ ( 7 ) $ ( 7 ) $ ( 6 )

Plans Non-U.S.

For the Six Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

(in millions)

Service cost $ 1 $ 2 $ 31 $ 30

Interest cost 26 30 135 142

Expected return on plan assets ( 33 ) ( 46 ) ( 211 ) ( 216 )

Amortization of net loss and prior service cost

Settlement losses

Net periodic pension cost/(benefit)

$ 288 $ ( 8 ) $ ( 10 ) $ ( 12 )

Employer Contributions

During the three months ended March 31, 2025, we contributed $ 29 million to our non-U.S.

pension plans.

During the six months ended June 30, 2025, we contributed $ 1 million and $ 45 million to our U.S.

pension plans, respectively.

We make contributions to our pension plans in accordance with local funding arrangements and statutory minimum funding requirements.

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

As of March 31, 2025, we plan to make further contributions of approximately $ 11 million to our U.S.

As of June 30, 2025, we plan to make further contributions of approximately $ 10 million to our U.S.

plans and $ 23 million to our non-U.S.

1 unchanged sentence

However, 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 changes in interest rates.

Mondelēz Global LLC Retirement Plan Update

During the third quarter of 2024, we entered into an agreement with two third party insurance companies for the Mondelēz Global LLC Retirement Plan (“MDLZ Global Plan”), the pension plan for US salaried employees.

The agreement featured a buy-in of the plan assets with an option to elect a future buy-out conversion.

As part of the buy-in, all of the MDLZ Global Plan assets were transferred to the insurance companies in exchange for an annuity contract during the third quarter of 2024 to further reduce the risk of plan asset value volatility.

As of January 1, 2025, the annuity contract is providing all future benefit payments to the MDLZ Global Plan participants.

However, we continue to retain the primary benefit obligation until the buy-out conversion is completed.

Upon election of the buy-out conversion, we will transfer full responsibility of the MDLZ Global Plan obligations to the insurance companies, at which time we will derecognize the assets and liabilities of the pension plan and recognize a settlement loss as a component of net periodic pension cost.

We currently intend to execute the buy-out conversion in the second quarter of 2025.

Mondelēz Global LLC Retirement Plan Settlement

During the third quarter of 2024, we entered into agreements with two third-party insurance companies to purchase buy-in annuity contracts to cover the liabilities associated with the Mondelēz Global LLC Retirement Plan (“MDLZ Global Plan”), the pension plan for U.S.

salaried employees.

The agreements provided us with the option to elect a buy-out conversion, at which time full responsibility of the MDLZ Global Plan obligations would transfer to the insurance companies.

On June 12, 2025 we elected the buy-out conversion and recognized a non-cash pre-tax settlement loss of $ 282 million as a component of our net periodic pension cost in the second quarter of 2025.

That settlement loss is recorded within Benefit plan non-service (expense)/income in the condensed consolidated statements of earnings.

Multiemployer Pension Plans

On July 11, 2019, we received a withdrawal liability assessment from the Bakery and Confectionery Union and the Industry International Pension Fund requiring pro-rata monthly payments over 20 years and we recorded a discounted liability of $ 491 million at that time.

In connection with the discounted long-term liability, we recorded accreted interest of $ 2 million for the three months ended March 31, 2025 and the three months ended March 31, 2024 within Interest and other expense, net in the condensed consolidated statement of earnings.

As of March 31, 2025, the remaining discounted withdrawal liability was $ 307 million, with $ 16 million recorded in Other current liabilities and $ 291 million recorded in Long-term other liabilities in the condensed consolidated balance sheets.

In connection with the discounted long-term liability, we recorded accreted interest of $ 3 million for both the three months ended June 30, 2025 and 2024 and $ 5 million for both the six months ended June 30, 2025 and 2024 within Interest and other expense, net in the condensed consolidated

statements of earnings.

As of June 30, 2025, the remaining discounted withdrawal liability was $ 302 million, with $ 16 million recorded in Other current liabilities and $ 286 million recorded in Other liabilities in the condensed consolidated balance sheets.

Postretirement and Postemployment Benefit Plans

The net periodic postretirement benefit was $( 3 ) million for the three months ended March 31, 2025 and the three months ended March 31, 2024.

The net periodic postemployment cost was $ 5 million for the three months ended March 31, 2025 and March 31, 2024.

The net periodic postretirement benefit was $ 3 million and $ 2 million for the three months ended June 30, 2025 and 2024, respectively, and $ 6 million and $ 5 million for the six months ended June 30, 2025 and 2024, respectively.

The net periodic postemployment cost was $ 6 million for both the three months ended June 30, 2025 and 2024 and $ 11 million for both the six months ended June 30, 2025 and 2024.

Commitments and Contingencies

34 unchanged sentences

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

As of March 31, 2025 and December 31, 2024, we had no material third-party guarantees recorded on our condensed consolidated balance sheets.

As of June 30, 2025 and December 31, 2024, we had no material third-party guarantees recorded on our condensed consolidated balance sheets.

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

8 unchanged sentences

Annual grant to eligible employees 1,989,760 65.09

Additional options issued 19,390 67.65

Total options granted 2,009,150 65.11

Options exercised (1)

1 unchanged sentence

Options canceled ( 259,913 ) 66.82

Balance at March 31, 2025 17,188,770 56.59 6 years $ 205 million

(1) Cash received from options exercised was $ 44 million in the three months ended March 31, 2025.

We recognized $ 4 million of excess income tax benefits from stock option exercises in the three months ended March 31, 2025.

Balance at June 30, 2025 16,538,672 56.87 6 years $ 186 million

(1) Cash received from options exercised was $ 27 million and $ 71 million in the three and six months ended June 30, 2025, respectively.

The excess income tax benefit from stock option exercises was $ 1 million and $ 5 million in the three and six months ended June 30, 2025.

Performance Share Units and Other Stock-Based Awards

Our performance share unit (PSU), deferred stock unit (DSU) and other stock-based activity is reflected below:

Our performance share unit ("PSU") and deferred stock unit ("DSU") activity is reflected below:

of Shares Weighted-Average

13 unchanged sentences

( 309,086 ) 69.65

Balance at March 31, 2025 5,764,569 67.74

Balance at June 30, 2025 5,622,107 67.64

(1) Includes primarily DSUs and incremental PSUs issued over target.

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

(3) We recognized $ 1 million of income tax shortfalls upon vesting of PSUs and DSUs in the three months ended March 31, 2025.

(3) The income tax shortfall upon vesting of PSUs and DSUs was zero and $ 1 million in the three and six months ended June 30, 2025, respectively.

(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.

4 unchanged sentences

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

During the three months ended March 31, 2025, we repurchased approximately 25 million shares of Common Stock at an average cost of $ 57.91 per share, or an aggregate cost of approximately $ 1.5 billion, all of which was paid during the period.

During the six months ended June 30, 2025, we repurchased approximately 27 million shares of Common Stock at an average cost of $ 58.33 per share, or an aggregate cost of approximately $ 1.6 billion, all of which was paid during the period.

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

As of March 31, 2025, we have approximately $ 7.5 billion in remaining share repurchase capacity.

As of June 30, 2025, we have approximately $ 7.4 billion in remaining share repurchase capacity.

Reclassifications from Accumulated Other Comprehensive Income

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 $( 47 ) million in the first quarter of 2025 and $ 23 million in the first quarter of 2024.

Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net (losses)/gains of $( 284 ) million and $( 2 ) million in the second quarter of 2025 and 2024, respectively, and $( 331 ) million and $ 21 million in the first six months of 2025 and 2024, respectively.

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

(in millions)

9 unchanged sentences

Net actuarial gain/(loss) arising during period ( 51 ) ( 1 ) ( 51 ) ( 6 )

Tax effect on net actuarial gain/(loss)

Losses/(gains) reclassified into net earnings:

2 unchanged sentences

Tax expense/(benefit) on reclassifications (3)

( 80 ) ( 4 ) ( 82 ) ( 8 )

Currency impact ( 100 ) ( 2 ) ( 144 ) 27

3 unchanged sentences

Balance at beginning of period $ ( 61 ) $ ( 57 ) $ ( 52 ) $ ( 49 )

Net derivative gains/(losses) ( 37 ) 25

Interest rate contracts gains/(losses)

3 ( 4 ) 1 ( 10 )

Cross-currency swap contracts gains/(losses)

( 47 ) 8 ( 86 ) 40

Other derivative gains/(losses)

( 16 ) ( 3 ) ( 12 ) ( 4 )

Tax effect on net derivative gain/(loss)

( 3 ) 3 ( 2 ) 6

Losses/(gains) reclassified into net earnings:

Interest rate contracts (2)

Cross-currency swap contracts (2)

52 ( 13 ) 79 ( 53 )

Other derivative contracts (2)

Tax expense/(benefit) on reclassifications (3)

5 ( 1 ) 8 ( 2 )

Currency impact ( 4 ) — ( 8 ) 1

13 unchanged sentences

Total restructuring and implementation charges of $ 5.4 billion were incurred throughout the Simplify to Grow Program, which ended in December 2024.

We recorded restructuring charges of $ 42 million and implementation costs of $ 11 million in the three months ended March 31, 2024.

The Simplify to Grow Program restructuring liability activity for the three months ended March 31, 2025 was:

We recorded restructuring charges of $ 3 million and $ 45 million in the three and six months ended June 30, 2024 and recorded implementation costs of $ 12 million and $ 23 million in the three and six months ended June 30, 2024.

The Simplify to Grow Program restructuring liability activity for the six months ended June 30, 2025 was:

(in millions)

Liability balance, January 1, 2025

Payments ( 37 )

Currency and other 14

Liability balance, March 31, 2025

Liability balance, June 30, 2025

The liability for restructuring charges is included within other current liabilities and other long-term liabilities.

As of the first quarter of 2025, our effective tax rate was 28.3 % as compared to 23.6 % in the first quarter of 2024.

The higher effective tax rate is driven by our jurisdictional mix of earnings (including the impact of mark-to-market losses on commodity and foreign currency derivatives) and the relative impact of permanent items on lower pre-tax earnings on a year-over-year basis.

Those items were partially offset by additional releases of liabilities for uncertain tax positions due to audit developments in the first quarter of 2025 as compared to the first quarter of 2024.

Our effective tax rate was 26.9 % for the second quarter of 2025 as compared to 34.7 % in the second quarter of 2024.

The decrease in our effective tax rate was driven by our jurisdictional mix of earnings, particularly the impact of lower mark-to-market losses on commodity and foreign currency derivatives in the current quarter, and higher costs from tax law changes in the second quarter of 2024.

Our effective tax rate for the six months ended June 30, 2025, was 27.4 % as compared to 26.2 % for the six months ended June 30, 2024.

The increase in our year-to-date effective tax rate was driven by our jurisdictional mix of earnings (including the impact of mark-to-market gains and losses on commodity and foreign currency derivatives) and the relative impact of permanent items on lower pre-tax earnings on a year-over-year basis.

Those items were partially offset by additional releases of liabilities for uncertain tax positions due to audit developments in the six months ended June 30, 2025, as compared to the six months ended June 30, 2024.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into U.S.

This legislation contains numerous tax provisions, including an increase to the tax rate applied to income earned by our foreign subsidiaries, favorable changes to foreign tax credit calculation methodologies, and changes to the timing of certain tax deductions for qualifying depreciable assets, costs of research and development performed in the U.S.

and interest expense.

While we are still evaluating the impacts of the OBBBA, we do not expect any material impacts to our financial statements for the year ending December 31, 2025.

Earnings per Share

1 unchanged sentence

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

(in millions, except per share data)

1 unchanged sentence

Noncontrolling interest earnings

( 3 ) ( 2 ) ( 8 ) ( 6 )

Net earnings attributable to Mondelēz International $ 641 $ 601 $ 1,043 $ 2,013

6 unchanged sentences

Mondelēz International $ 0.49 $ 0.45 $ 0.80 $ 1.49

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 6.4 million for the three months ended March 31, 2025 and 2.7 million for the three months ended March 31, 2024.

We exclude antidilutive Mondelēz International share-based payment awards from our calculation of weighted-average shares for diluted EPS.

We excluded antidilutive stock options and performance share units of 4.6 million and 4.2 million for the three months ended June 30, 2025 and 2024, respectively, and 3.8 million and 3.4 million for the six months ended June 30, 2025 and 2024, respectively.

Segment Reporting

16 unchanged sentences

Our segment net revenue, significant segment expenses and operating income, by reportable segment were as follows:

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

(in millions)

5 unchanged sentences

Segment operating income $ 133 $ 271 $ 514 $ 454 1,372

Mark-to-market losses on commodity

and foreign currency derivatives

Mark-to-market losses from derivatives

General corporate expenses ( 69 )

1 unchanged sentence

Operating income $ 1,172

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

(in millions)

5 unchanged sentences

Segment operating income $ 144 $ 290 $ 550 $ 545 1,529

Mark-to-market gains on commodity

and foreign currency derivatives

Mark-to-market losses from derivatives

General corporate expenses ( 67 )

1 unchanged sentence

Operating income $ 854

Six Months Ended June 30, 2025

(in millions)

Latin America AMEA Europe North America Total

$ 2,397 $ 3,837 $ 6,962 $ 5,101 $ 18,297

Segment cost of sales ( 1,622 ) ( 2,459 ) ( 4,884 ) ( 3,198 ) ( 12,163 )

Segment selling, general and administrative expenses (1)

( 503 ) ( 764 ) ( 1,102 ) ( 964 ) ( 3,333 )

Segment operating income $ 272 $ 614 $ 976 $ 939 2,801

Mark-to-market losses from derivatives

General corporate expenses ( 112 )

Amortization of intangible assets ( 75 )

Operating income $ 1,852

Six Months Ended June 30, 2024

(in millions)

Latin America AMEA Europe North America Total

$ 2,551 $ 3,537 $ 6,242 $ 5,303 $ 17,633

Segment cost of sales ( 1,666 ) ( 2,051 ) ( 3,866 ) ( 3,059 ) ( 10,642 )

Segment selling, general and administrative expenses (1)

( 584 ) ( 785 ) ( 1,235 ) ( 1,150 ) ( 3,754 )

Segment operating income $ 301 $ 701 $ 1,141 $ 1,094 3,237

Mark-to-market gains from derivatives

General corporate expenses ( 134 )

Amortization of intangible assets ( 75 )

Operating income $ 3,581

(1) SG&A for all reportable segments includes:

7 unchanged sentences

Total depreciation expense $ 212 $ 197

Six Months Ended

(in millions)

Depreciation expense (2) :

Latin America $ 69 $ 77

Europe 150 135

North America 88 80

Total depreciation expense $ 412 $ 393

(2) Includes depreciation expense related to owned property, plant and equipment.

Does not include amortization of intangible assets or leased assets.

Refer to the consolidated statement of cash flows for total depreciation and amortization expenses.

Three Months Ended

Refer to the consolidated statements of cash flows for total depreciation and amortization expenses.

Six Months Ended

(in millions)

5 unchanged sentences

Total capital expenditures $ ( 582 ) $ ( 666 )

Disaggregation of Net Revenue

Net revenues by product category, reflecting our current segment structure for all periods presented, were:

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

America AMEA Europe North

7 unchanged sentences

Total net revenues $ 1,194 $ 1,821 $ 3,412 $ 2,557 $ 8,984

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

America AMEA Europe North

2 unchanged sentences

Biscuits & Baked Snacks $ 310 $ 560 $ 1,093 $ 2,394 $ 4,357

Chocolate 304 579 1,293 57 2,233

Gum & Candy 381 237 140 199 957

Beverages 114 124 28 — 266

Cheese & Grocery 123 87 320 — 530

Total net revenues

$ 1,232 $ 1,587 $ 2,874 $ 2,650 $ 8,343

For the Six Months Ended June 30, 2025

America AMEA Europe North

America Total

(in millions)

Biscuits $ 582 $ 1,422 $ 2,377 $ 4,525 $ 8,906

Chocolate 714 1,430 3,529 170 5,843

3 unchanged sentences

Total net revenues

$ 2,397 $ 3,837 $ 6,962 $ 5,101 $ 18,297

For the Six Months Ended June 30, 2024

America AMEA Europe North

America Total

(in millions)

Biscuits & Baked Snacks

$ 596 $ 1,204 $ 2,123 $ 4,733 $ 8,656

Chocolate 686 1,350 3,063 148 5,247

Gum & Candy 774 471 346 422 2,013

Beverages 244 313 62 — 619

Cheese & Grocery 251 199 648 — 1,098

Total net revenues $ 2,551 $ 3,537 $ 6,242 $ 5,303 $ 17,633

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