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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
OR
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                to                
Commission file number 1-16483
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Mondelēz International, Inc.
(Exact name of registrant as specified in its charter)
Virginia52-2284372
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
905 West Fulton Market, Suite 200
Chicago,
Illinois60607
(Address of principal executive offices)(Zip Code)
(Registrant’s telephone number, including area code) (847) 943-4000
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol(s)
Name of each exchange on which registered
Class A Common Stock, no par valueMDLZThe Nasdaq Global Select Market
1.625% Notes due 2027MDLZ27The Nasdaq Stock Market LLC
0.250% Notes due 2028MDLZ28The Nasdaq Stock Market LLC
0.750% Notes due 2033MDLZ33The Nasdaq Stock Market LLC
2.375% Notes due 2035MDLZ35The Nasdaq Stock Market LLC
4.500% Notes due 2035MDLZ35AThe Nasdaq Stock Market LLC
1.375% Notes due 2041MDLZ41The Nasdaq Stock Market LLC
3.875% Notes due 2045MDLZ45The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
 Accelerated filer  
Non-accelerated filer Smaller reporting company 
 Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   ☐  No  x

At April 25, 2024, there were 1,341,359,018 shares of the registrant’s Class A Common Stock outstanding.


Mondelēz International, Inc.
Table of Contents
 
  Page No.
FINANCIAL INFORMATION
Item 1.Financial Statements (Unaudited)
Item 2.
Item 3.
Item 4.
OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 5.
Item 6.
                    Signature

In this report, for all periods presented, “we,” “us,” “our,” “the Company” and “Mondelēz International” refer to Mondelēz International, Inc. and subsidiaries. References to “Common Stock” refer to our Class A Common Stock.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements
Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings
(in millions of U.S. dollars, except per share data)
(Unaudited)
 For the Three Months Ended
March 31,
 20242023
Net revenues$9,290 $9,166 
Cost of sales(4,540)(5,720)
Gross profit4,750 3,446 
Selling, general and administrative expenses(1,938)(1,855)
Asset impairment and exit costs(47)(47)
Amortization of intangible assets(38)(39)
Operating income2,727 1,505 
Benefit plan non-service income23 19 
Interest and other expense, net(68)(95)
Gain on marketable securities
 796 
Earnings before income taxes2,682 2,225 
Income tax provision(632)(658)
(Loss)/gain on equity method investment transactions including impairments
(665)487 
Equity method investment net earnings31 35 
Net earnings1,416 2,089 
less: Noncontrolling interest earnings(4)(8)
Net earnings attributable to
   Mondelēz International
$1,412 $2,081 
Per share data:
Basic earnings per share attributable to
   Mondelēz International
$1.05 $1.52 
Diluted earnings per share attributable to
   Mondelēz International
$1.04 $1.52 

See accompanying notes to the condensed consolidated financial statements.
1
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Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Comprehensive Earnings
(in millions of U.S. dollars)
(Unaudited)
 For the Three Months Ended
March 31,
 20242023
Net earnings$1,416 $2,089 
Other comprehensive earnings/(losses), net of tax:
Currency translation adjustment(222)151 
Pension and other benefit plans38 (6)
Derivative cash flow hedges(8)(10)
Total other comprehensive earnings/(losses)(192)135 
Comprehensive earnings/(losses)1,224 2,224 
less: Comprehensive earnings/(losses)
   attributable to noncontrolling interests
(2)10 
Comprehensive earnings/(losses) attributable to
   Mondelēz International
$1,226 $2,214 

See accompanying notes to the condensed consolidated financial statements.
2
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Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in millions of U.S. dollars, except share data)
(Unaudited)
March 31,
2024
December 31, 2023
ASSETS
Cash and cash equivalents$1,376 $1,810 
Trade receivables, less allowance ($48 and $66, respectively)
3,998 3,634 
Other receivables, less allowance ($40 and $50, respectively)
816 878 
Inventories, net3,562 3,615 
Other current assets9,674 1,766 
Total current assets19,426 11,703 
Property, plant and equipment, net9,574 9,694 
Operating lease right-of-use assets
640 683 
Goodwill23,539 23,896 
Intangible assets, net19,614 19,836 
Prepaid pension assets1,068 1,043 
Deferred income taxes240 408 
Equity method investments2,440 3,242 
Other assets1,083 886 
TOTAL ASSETS$77,624 $71,391 
LIABILITIES
Short-term borrowings$259 $420 
Current portion of long-term debt2,024 2,101 
Accounts payable8,618 8,321 
Accrued marketing2,791 2,683 
Accrued employment costs928 1,158 
Other current liabilities10,668 4,330 
Total current liabilities25,288 19,013 
Long-term debt16,781 16,887 
Long-term operating lease liabilities504 537 
Deferred income taxes3,408 3,292 
Accrued pension costs395 437 
Accrued postretirement health care costs125 124 
Other liabilities2,609 2,735 
TOTAL LIABILITIES49,110 43,025 
Commitments and Contingencies (Note 12)
EQUITY
Common Stock, no par value ( 5,000,000,000 shares authorized, 1,996,537,778 shares issued)
  
Additional paid-in capital32,163 32,216 
Retained earnings35,074 34,236 
Accumulated other comprehensive losses(11,132)(10,946)
Treasury stock, at cost (652,553,982 and 648,055,073 shares, respectively)
(27,623)(27,174)
Total Mondelēz International Shareholders’ Equity28,482 28,332 
Noncontrolling interest32 34 
TOTAL EQUITY28,514 28,366 
TOTAL LIABILITIES AND EQUITY$77,624 $71,391 
See accompanying notes to the condensed consolidated financial statements.
3
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Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Equity
(in millions of U.S. dollars, except per share data)
(Unaudited)
 Mondelēz International Shareholders’ Equity  
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Earnings/
(Losses)
Treasury
Stock
Non-controlling
Interest
Total
Equity
Three Months Ended March 31, 2024
Balances at January 1, 2024$ $32,216 $34,236 $(10,946)$(27,174)$34 $28,366 
Comprehensive earnings/(losses):
Net earnings— — 1,412 — — 4 1,416 
Other comprehensive earnings/(losses),
   net of income taxes
— — — (186)— (6)(192)
Exercise of stock options and issuance of
   other stock awards
— (53)1 — 117 — 65 
Common Stock repurchased— — (566)— (566)
Cash dividends declared ($0.425 per share)
— — (575)— — — (575)
Dividends paid on noncontrolling interest
   and other activities
— — — — — — 
Balances at March 31, 2024$ $32,163 $35,074 $(11,132)$(27,623)$32 $28,514 
Three Months Ended March 31, 2023
Balances at January 1, 2023$ $32,143 $31,481 $(10,947)$(25,794)$37 $26,920 
Comprehensive earnings/(losses):
Net earnings— — 2,081 — — 8 2,089 
Other comprehensive earnings/(losses),
   net of income taxes
— — — 133 — 2 135 
Exercise of stock options and issuance of
   other stock awards
— (31)(8)— 93 — 54 
Common Stock repurchased— — — — (409)— (409)
Cash dividends declared ($0.385 per share)
— — (528)— — — (528)
Dividends paid on noncontrolling interest
   and other activities
— — 14 — — (1)13 
Balances at March 31, 2023$ $32,112 $33,040 $(10,814)$(26,110)$46 $28,274 

See accompanying notes to the condensed consolidated financial statements.
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Mondelēz International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions of U.S. dollars)
(Unaudited)
For the Three Months Ended
March 31,
 20242023
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES
Net earnings$1,416 $2,089 
Adjustments to reconcile net earnings to operating cash flows:
Depreciation and amortization319 303 
Stock-based compensation expense31 38 
Deferred income tax provision270 199 
Asset impairments and accelerated depreciation6 18 
Loss/(gain) on equity method investment transactions including impairments
665 (487)
Equity method investment net earnings(31)(35)
Distributions from equity method investments81 102 
Unrealized gain on derivative contracts
(1,134)(67)
Gain on marketable securities (787)
Other non-cash items, net38 25 
Change in assets and liabilities,
   net of acquisitions and divestitures:
Receivables, net(395)(590)
Inventories, net(16)(232)
Accounts payable419 216 
Other current assets(330)(137)
Other current liabilities45 517 
Change in pension and postretirement assets and liabilities, net(60)(49)
Net cash provided by operating activities1,324 1,123 
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES
Capital expenditures(299)(223)
Acquisitions, net of cash received 1 
Proceeds from divestitures including equity method and marketable security investments4 1,034 
Proceeds from derivative settlements
71 61 
Payments for derivative settlements
(32)(5)
Contributions to investments
(192)(246)
Proceeds from sale of property, plant and equipment and other
2 14 
Net cash provided by/(used in) investing activities(446)636 
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES
Net (repayments)/issuances of short-term borrowings(166)156 
Long-term debt proceeds547  
Long-term debt repayments(534)(1,036)
Repurchases of Common Stock(568)(399)
Dividends paid(578)(529)
Other76 51 
Net cash used in financing activities(1,223)(1,757)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
(77)(11)
Cash, cash equivalents and restricted cash:
Decrease(422)(9)
Balance at beginning of period1,884 1,948 
Balance at end of period$1,462 $1,939 

See accompanying notes to the condensed consolidated financial statements.
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Mondelēz International, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. Basis of Presentation

Our interim condensed consolidated financial statements are unaudited. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of our results of operations, financial position and cash flows. Results of operations for any interim period are not necessarily indicative of future or annual results. For a complete set of consolidated financial statements and related notes, refer to our Annual Report on Form 10-K for the year ended December 31, 2023.

Principles of Consolidation
The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries that were deconsolidated in 2015. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors' interests in the results of subsidiaries that we control and consolidate. We account for investments over which we exercise significant influence under the equity method of accounting. Investments with readily determinable fair values for which we do not have the ability to exercise significant influence are measured at fair value.

War in Ukraine
In February 2022, Russia began a military invasion of Ukraine and we closed our operations and facilities in Ukraine. In March 2022, our two Ukrainian manufacturing facilities in Trostyanets and Vyshhorod were significantly damaged. We continue to make targeted repairs on both our plants and have partially reopened and restarted production in both plants. We also continue to support our Ukraine employees, including paying salaries to those not yet able to return to work until production returns. We continue to consolidate both our Ukrainian and Russian subsidiaries and continue to evaluate our ability to control our operating activities and businesses on an ongoing basis. We base our estimates on historical experience, expectations of future impacts and other assumptions that we believe are reasonable. Given the uncertainty of the ongoing effects of the war in Ukraine, and its impact on the global economic environment, our estimates could be significantly different than future performance.

Highly Inflationary Accounting
Within our consolidated entities, Argentina and Türkiye (Turkey) are accounted for as highly inflationary economies. Argentina and Türkiye represent 1.4% and 0.9% of our consolidated net revenues with remeasurement losses of $2 million and $6 million for the three months ended March 31, 2024, respectively. Given the continued volatility of these currencies, impacts to our financial statements in future periods could be significantly different from historical levels.

Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. 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 $86 million as of March 31, 2024 and $74 million as of December 31, 2023. Total cash, cash equivalents and restricted cash was $1,462 million as of March 31, 2024 and $1,884 million as of December 31, 2023.












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Allowances for Credit Losses
Changes in allowances for credit losses consisted of:
Allowance for Trade ReceivablesAllowance for Other Current ReceivablesAllowance for Long-Term Receivables
 (in millions)
Balance at January 1, 2024$(66)$(50)$(15)
Net recovery for expected credit losses
15 10  
Write-offs charged against the allowance2   
Currency1   
Balance at March 31, 2024$(48)$(40)$(15)

Transfers of Financial Assets
The outstanding principal amount of receivables under our uncommitted revolving non-recourse accounts receivable factoring arrangements amounted to $473 million as of March 31, 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. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows.

Non-Cash Lease Transactions
We recorded $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 and $39 million in operating lease and $27 million in finance lease right-of-use assets obtained in exchange for lease obligations during the three months ended March 31, 2023.

Supply Chain Financing
As part of our continued efforts to improve our working capital efficiency, we have worked with our suppliers over the past several years to optimize our terms and conditions, which include the extension of payment terms. 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 $2.5 billion and $2.4 billion, respectively, as of March 31, 2024 and December 31, 2023.

New Accounting Pronouncements
In September 2022, the FASB issued an ASU which enhances the transparency of supplier finance programs by requiring additional disclosure about the key terms of these programs and a roll-forward of the related obligations to understand the effects of these programs on working capital, liquidity and cash flows. The ASU is effective for fiscal years beginning after December 15, 2022, except for the roll-forward requirement, which is effective for fiscal years beginning after December 15, 2023. We adopted, with the exception of the roll-forward requirement, this standard in the first quarter of 2023 and it did not have a material impact on our consolidated financial statements and related disclosures.

In November 2023, the FASB issued an ASU which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU is effective for fiscal years beginning after December 15, 2023 and early adoption is permitted. We are currently assessing the impact on our consolidated financial statements and related segment disclosures.

In December 2023, the FASB issued an ASU which enhances the transparency of 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.






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Note 2. Divestitures

Developed Market Gum
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 $4 million in the three months ended March 31, 2024 and divestiture-related costs of $30 million in the three months ended March 31, 2023.

This disposition was not considered a strategic shift that would have a major effect on our operations or financial results; therefore, the results of the disposed business were not classified as discontinued operations.

Note 3. Inventories

Inventories consisted of the following:
As of March 31,
2024
As of December 31, 2023
 (in millions)
Raw materials$1,003 $973 
Finished product2,718 2,790 
3,721 3,763 
Inventory reserves(159)(148)
Inventories, net$3,562 $3,615 
Note 4. Property, Plant and Equipment

Property, plant and equipment consisted of the following:
 As of March 31,
2024
As of December 31, 2023
 (in millions)
Land and land improvements$376 $384 
Buildings and building improvements3,446 3,452 
Machinery and equipment12,693 12,736 
Construction in progress1,084 1,118 
17,599 17,690 
Accumulated depreciation(8,025)(7,996)
Property, plant and equipment, net$9,574 $9,694 

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 three months ended March 31, 2023, capital expenditures of $223 million excluded $290 million of accrued capital expenditures remaining unpaid at March 31, 2023 and included payment for a portion of the $324 million of capital expenditures that were accrued and unpaid at December 31, 2022.

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Note 5. Goodwill and Intangible Assets

Goodwill
Changes in goodwill consisted of:

Latin AmericaAMEAEuropeNorth AmericaTotal
(in millions)
January 1, 2023$1,421 $3,132 $8,009 $10,888 $23,450 
Currency180 (67)341 19 473 
Acquisitions (1)
6   (33)(27)
Balance at December 31, 2023$1,607 $3,065 $8,350 $10,874 $23,896 
Currency18 (80)(279)(16)(357)
Balance at March 31, 2024$1,625 $2,985 $8,071 $10,858 $23,539 
(1)Purchase price allocation adjustments for Ricolino and Clif Bar during 2023.

Intangible Assets
Intangible assets consisted of the following:

As of March 31, 2024As of December 31, 2023
Gross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
(in millions)
Definite-life intangible assets$3,304 $(2,174)$1,130 $3,322 $(2,155)$1,167 
Indefinite-life intangible assets (1)
18,484 — 18,484 18,669 — 18,669 
  Total
$21,788 $(2,174)$19,614 $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.

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 $38 million for the three months ended March 31, 2024 and $39 million for the three months ended March 31, 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 March 31, 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 first 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 $3.6 billion as of March 31, 2024, of which $1.9 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.



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Note 6. Investments

Marketable Securities
On March 2, 2023, we sold approximately 30 million shares of Keurig Dr Pepper Inc. (NASDAQ: "KDP"), which reduced our ownership interest by 2.1 percentage points, from 5.3% to 3.2% of the total outstanding shares. We received approximately $1.0 billion in proceeds and recorded a pre-tax gain on equity method transactions of $493 million ($368 million after-tax) on this sale during the first quarter of 2023. This reduction in ownership, to below 5% of the outstanding shares, resulted in a change of accounting for our KDP investment, from equity method investment accounting to accounting for equity interests with readily determinable fair values ("marketable securities") as we no longer had significant influence over KDP. Marketable securities are measured at fair value based on quoted prices in active markets for identical assets (Level 1). Subsequently in 2023, we sold the remainder of our shares of KDP and exited our investment in the company.

Pre-tax gains for marketable securities are summarized below:

Three Months Ended March 31, 2023
 (in millions)
Unrealized gain on marketable securities held as of the end of the period
$787 
Dividend income and other
9 
Total gain on marketable securities$796 

We reported no marketable securities as of March 31, 2024 and $1.6 billion as of March 31, 2023 in Other current assets in the condensed consolidated balance sheet.

Equity Method Investments
Our equity method investments include, but are not limited to, our ownership interests in JDE Peet's (Euronext Amsterdam: "JDEP"), Dong Suh Foods Corporation and Dong Suh Oil & Fats Co. Ltd. Our ownership interests may change over time due to investee stock-based compensation arrangements, share issuances or other equity-related transactions. As of March 31, 2024, we owned 17.7%, 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 $2.4 billion as of March 31, 2024 and $3.2 billion as of December 31, 2023. We recorded equity earnings of $31 million and cash dividends of $81 million in the three months ended March 31, 2024, and equity earnings of $35 million and cash dividends of $102 million in the three months ended March 31, 2023.

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 has 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)/gain on equity method investment transactions including impairments in the condensed consolidated statement of earnings. Any potential future impairments of JDEP will continue to be assessed based upon the other-than-temporary impairment criteria. There was no other than temporary impairment identified in 2023.

JDEP Transactions
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 March 31, 2023, we exercised options on 2.2 million of the 7.7 million shares.

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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 March 31, 2024. Refer to Note 9, Financial Instruments, for further details on this transaction.

Note 7. Restructuring Program

On May 6, 2014, our Board of Directors approved a $3.5 billion 2014-2018 restructuring program and up to $2.2 billion of capital expenditures. 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 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. The total $7.7 billion program now consists of $5.4 billion of program charges ($4.1 billion of cash costs and $1.3 billion of non-cash costs) and total capital expenditures of $2.3 billion to be incurred over the life of the program. The current restructuring program, as increased and extended by these actions, is now called the Simplify to Grow Program.

The primary objective of the Simplify to Grow Program is to reduce our operating cost structure in both our supply chain and overhead costs. The program covers severance as well as asset disposals and other manufacturing and procurement-related one-time costs. Since inception, we have incurred total restructuring and implementation charges of $5.3 billion related to the Simplify to Grow Program. We expect to incur the remainder of the program charges by year-end 2024.

Restructuring Costs
The Simplify to Grow Program liability activity for the three months ended March 31, 2024 was:
 Severance
and related
costs
Asset
Write-downs and Other (1)
Total
 (in millions)
Liability balance, January 1, 2024$191 $ $191 
Charges (2)
41 1 42 
Cash spent (3)
(13) (13)
Non-cash settlements/adjustments (4)
 (1)(1)
Currency(4) (4)
Liability balance, March 31, 2024 (5)
$215 $ $215 

(1)Includes gains as a result of assets sold which are included in the restructuring program.
(2)We recorded restructuring charges of $42 million in the three months ended March 31, 2024 and restructuring charges of $30 million in the three months ended March 31, 2023 within asset impairment and exit costs and benefit plan non-service income.
(3)We spent $13 million in the three months ended March 31, 2024 and $18 million in the three months ended March 31, 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 $1 million in the three months ended March 31, 2024 and a charge of $1 million in the three months ended March 31, 2023.
(5)At March 31, 2024, $119 million of our net restructuring liability was recorded within other current liabilities and $96 million was recorded within other long-term liabilities.

Implementation Costs
Implementation costs are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. We believe the disclosure of implementation costs provides readers of our financial statements with additional information on the total costs of our Simplify to Grow Program. Implementation costs primarily relate to reorganizing our operations and facilities in connection with our supply chain reinvention program and other identified productivity and cost saving initiatives. 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 $11 million in
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the three months ended March 31, 2024 and $5 million in the three months ended March 31, 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 months ended March 31, 2024 and March 31, 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:
Latin
America
AMEAEuropeNorth
America
CorporateTotal
 (in millions)
For the Three Months Ended March 31, 2024
Restructuring Costs$2 $1 $40 $ $(1)$42 
Implementation Costs  1 4 6 11 
Total$2 $1 $41 $4 $5 $53 
For the Three Months Ended March 31, 2023
Restructuring Costs$ $1 $30 $(1)$ $30 
Implementation Costs    5 5 
Total$ $1 $30 $(1)$5 $35 
Total Project
(Inception to Date)
Restructuring Costs$547 $562 $1,282 $676 $153 $3,220 
Implementation Costs304 245 582 602 378 2,111 
Total$851 $807 $1,864 $1,278 $531 $5,331 















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Note 8. Debt and Borrowing Arrangements

Short-Term Borrowings
Our short-term borrowings and related weighted-average interest rates consisted of:
 As of March 31, 2024As of December 31, 2023
Amount
Outstanding
Weighted-
Average Rate
Amount
Outstanding
Weighted-
Average Rate
(in millions, except percentages)
Commercial paper$204 5.5 %$346 5.5 %
Bank loans55 13.3 %74 17.2 %
Total short-term borrowings$259 $420 

Our uncommitted credit lines and committed credit lines available as of March 31, 2024 and December 31, 2023 include:
 As of March 31, 2024As of December 31, 2023
Facility AmountBorrowed AmountFacility AmountBorrowed Amount
(in millions)
Uncommitted credit facilities (1)
$923 $55 $906 $74 
Credit facilities:
February 19, 2025 (2)
1,500  1,500  
February 23, 2027 (2)
4,500  4,500  
Various (3)
277 277 277 277 

(1)Prior year facility amount has been revised.
(2)We maintain senior unsecured revolving credit facilities for general corporate purposes, including working capital needs, and to support our commercial paper program. 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 March 31, 2024, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $39.6 billion. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security.
(3)On April 18, 2023, and subsequently amended on October 3, 2023, 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.

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

Interest RateMaturity DateAmountUSD Equivalent
2.125%March 2024$500$500

During the three months ended March 31, 2023, we did not complete any debt repayments.

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

Issuance Date
Interest RateMaturity Date
Gross Proceeds (1)
Gross Proceeds USD Equivalent
February 20244.750%February 2029$550$550

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

During the three months ended March 31, 2023, we did not complete any debt issuances.


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Fair Value of Our Debt
The fair value of our short-term borrowings reflects current market interest rates and approximates the amounts we have recorded on our consolidated balance sheets. The fair value of our long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations.

 As of March 31, 2024As of December 31, 2023
(in millions)
Fair Value$16,940 $17,506 
Carrying Value$19,064 $19,408 

Interest and Other Expense, net
Interest and other expense, net consisted of:
For the Three Months Ended
March 31,
 20242023
 (in millions)
Interest expense, debt$122 $153 
Other income, net
(54)(58)
Interest and other expense, net$68 $95 

Other income, net includes amounts excluded from hedge effectiveness related to our net investment hedge derivative contracts. Refer to Note 9, Financial Instruments.

Note 9. Financial Instruments

Fair Value of Derivative Instruments
Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows:
 As of March 31, 2024As of December 31, 2023
Asset
Derivatives
Liability
Derivatives
Asset
Derivatives
Liability
Derivatives
 (in millions)
Derivatives designated as
accounting hedges:
Interest rate contracts$133 $55 $120 $57 
Currency exchange contracts
 1   
Net investment hedge derivative contracts (1)
194 195 163 382 
$327 $251 $283 $439 
Derivatives not designated as
   accounting hedges:
Currency exchange contracts$210 $114 $195 $134 
Commodity contracts8,722 7,486 1,119 984 
Interest rate contracts1 3  2 
Equity method investment contracts (2)
    
$8,933 $7,603 $1,314 $1,120 
Total fair value$9,260 $7,854 $1,597 $1,559 

(1)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. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, 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.
(2)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. Refer to Note 8, Debt and Borrowing Arrangements..


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

 As of March 31, 2024As of December 31, 2023
 (in millions)
Other current assets
$8,969 $1,347 
Other assets
291 250 
Other current liabilities
7,637 1,209 
Other liabilities
217 350 

The fair values (asset/(liability)) of our derivative instruments were determined using:
 As of March 31, 2024
 Total
Fair Value of Net
Asset/(Liability)
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 (in millions)
Currency exchange contracts$95 $ $95 $ 
Commodity contracts1,236 (101)1,337  
Interest rate contracts76  76  
Net investment hedge contracts(1) (1) 
Total derivatives$1,406 $(101)$1,507 $ 

 As of December 31, 2023
 Total
Fair Value of Net
Asset/(Liability)
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 (in millions)
Currency exchange contracts$61 $ $61 $ 
Commodity contracts135 28 107  
Interest rate contracts61  61  
Net investment hedge contracts(219) (219) 
Total derivatives$38 $28 $10 $ 

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; 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. 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. Our calculation of the fair value of financial instruments takes into consideration the risk of nonperformance, including counterparty credit risk. Our OTC derivative transactions are governed by International Swap Dealers Association agreements and other standard industry contracts. Under these agreements, we do not post nor require collateral from our counterparties. The majority of our derivative contracts do not have a legal right of set-off. We manage the credit risk in connection with these and all our derivatives by entering into transactions with counterparties with investment grade credit
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ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties.

Derivative Volume
The notional values of our hedging instruments were:
 Notional Amount
 As of March 31,
2024
As of December 31, 2023
 (in millions)
Currency exchange contracts:
Intercompany loans and forecasted interest payments
$7,133 $2,860 
Forecasted transactions
6,079 5,550 
Commodity contracts
18,833 16,631 
Interest rate contracts3,636 2,384 
Net investment hedges:
Net investment hedge derivative contracts8,034 7,456 
Non-U.S. dollar debt designated as net investment hedges:
Euro notes
3,437 3,516 
Swiss franc notes
361 386 
Canadian dollar notes
443 453 

Cash Flow Hedges
Cash flow hedge activity, net of taxes, is recorded within accumulated other comprehensive earnings/(losses). 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 $41 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, 2024, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 4 years, 9 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. operations against movements in exchange rates. The aggregate notional value as of March 31, 2024 was $8.0 billion.

Net investment hedge derivative contract impacts on other comprehensive earnings and net earnings were:
 For the Three Months Ended
March 31,
 20242023
 (in millions)
After-tax gain/(loss) on NIH contracts (1)
$169 $(5)

(1)Amounts recorded for unsettled and settled NIH derivative contracts are recorded in the cumulative translation adjustment within other comprehensive earnings. The cash flows from the settled contracts are reported within other investing activities in the condensed consolidated statement of cash flows.
 For the Three Months Ended
March 31,
 20242023
 (in millions)
Amounts excluded from the assessment of hedge effectiveness (1)
$41 $36 

(1)We elected to record changes in the fair value of amounts excluded from the assessment of effectiveness in net earnings within interest and other expense, net.
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Non-U.S. dollar debt designated as net investment hedges
After-tax gains/(losses) related to hedges of net investments in international operations were recorded within the cumulative translation adjustment section of other comprehensive income and were:

 For the Three Months Ended
March 31,
 20242023
 (in millions)
Euro notes$61 $(33)
Swiss franc notes20 (5)
Canadian notes8 (1)

Economic Hedges
Pre-tax gains/(losses) recorded in net earnings for economic hedges were:

 For the Three Months Ended
March 31,
Location of Gain/(Loss) Recognized in Earnings
 20242023
 (in millions) 
Currency exchange contracts:
Intercompany loans and forecasted interest payments$56 $22 Interest and other expense, net
Forecasted transactions
25 2 Cost of sales
Forecasted transactions
 5 Interest and other expense, net
Forecasted transactions
7 (5)Selling, general and administrative expenses
Commodity contracts1,184 (2)Cost of sales
Equity method investment contracts
 2 Gain on equity method investment transactions
Total$1,272 $24 


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Fair Value of Contingent Consideration
The following is a summary of our contingent consideration liability activity:

 For the Three Months Ended
March 31,
 20242023
 (in millions)
Liability at beginning of period$680 $642 
Changes in fair value23 17 
Liability at end of period$703 $659 

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

 As of March 31, 2024
 Total Fair Value of
Liability
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 (in millions)
Clif Bar (1)
$560 $ $ $560 
Other (2)
143   143 
Total contingent consideration$703 $ $ $703 

 As of December 31, 2023
 Total Fair Value of
Liability
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 (in millions)
Clif Bar (1)
$548 $ $ $548 
Other (2)
132   132 
Total contingent consideration$680 $ $ $680 

(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. 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 $143 million and $132 million classified as other current liabilities at March 31, 2024 and December 31, 2023, respectively. The fair value of this contingent consideration was determined using a Monte Carlo valuation model based on Level 3 inputs, including management's latest estimate of forecasted future results. Other key assumptions included discount rate and volatility. Fair value adjustments are recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings.
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Note 10. Benefit Plans

Pension Plans

Components of Net Periodic Pension Cost
Net periodic pension cost/(benefit) consisted of the following:
 U.S. PlansNon-U.S. Plans
 For the Three Months Ended
March 31,
For the Three Months Ended
March 31,
 2024202320242023
 (in millions)
Service cost$1 $1 $15 $14 
Interest cost15 15 71 76 
Expected return on plan assets(23)(25)(108)(102)
Amortization:
Net loss from experience differences  16 11 
Prior service cost
 1   
Settlement losses and other expenses6 5   
  Net periodic pension benefit
$(1)$(3)$(6)$(1)

Employer Contributions
During the three months ended March 31, 2024, we contributed $