Quick10K

Mondelez

Price	55.39		EPS	3
Shares	1,459		P/E	20
MCap	80,814		P/FCF	43
Net Debt	19,520		EBIT	3,865
TEV	100,334		TEV/EBIT	26
TTM 2019-09-30, in MM, except price, ratios

10-Q	2021-03-31	Filed 2021-04-28 Print
10-K	2020-12-31	Filed 2021-02-05 Print
10-Q	2020-09-30	Filed 2020-11-03 Print
10-Q	2020-06-30	Filed 2020-07-29 Print
10-Q	2020-03-31	Filed 2020-04-29 Print
10-K	2019-12-31	Filed 2020-02-07 Print
10-Q	2019-09-30	Filed 2019-10-30 Print
10-Q	2019-06-30	Filed 2019-07-31 Print
10-Q	2019-03-31	Filed 2019-05-01 Print
10-K	2018-12-31	Filed 2019-02-08 Print
10-Q	2018-09-30	Filed 2018-10-30 Print
10-Q	2018-06-30	Filed 2018-07-26 Print
10-Q	2018-03-31	Filed 2018-05-02 Print
10-K	2017-12-31	Filed 2018-02-09 Print
10-Q	2017-09-30	Filed 2017-10-31 Print
10-Q	2017-06-30	Filed 2017-08-02 Print
10-Q	2017-03-31	Filed 2017-05-03 Print
10-K	2016-12-31	Filed 2017-02-24 Print
10-Q	2016-09-30	Filed 2016-10-26 Print
10-Q	2016-06-30	Filed 2016-07-27 Print
10-Q	2016-03-31	Filed 2016-04-28 Print
10-K	2015-12-31	Filed 2016-02-19 Print
10-Q	2015-09-30	Filed 2015-10-29 Print
10-Q	2015-06-30	Filed 2015-07-31 Print
10-Q	2015-03-31	Filed 2015-04-30 Print
10-K	2014-12-31	Filed 2015-02-20 Print
10-Q	2014-09-30	Filed 2014-11-06 Print
10-Q	2014-06-30	Filed 2014-08-08 Print
10-Q	2014-03-31	Filed 2014-05-08 Print
10-K	2013-12-31	Filed 2014-03-03 Print
10-Q	2013-09-30	Filed 2013-11-07 Print
10-Q	2013-06-30	Filed 2013-08-08 Print
10-Q	2013-03-31	Filed 2013-05-08 Print
10-K	2012-12-31	Filed 2013-02-25 Print
10-Q	2012-09-30	Filed 2012-11-08 Print
10-Q	2012-06-30	Filed 2012-08-03 Print
10-Q	2012-03-31	Filed 2012-05-04 Print
10-K	2011-12-31	Filed 2012-02-27 Print
10-Q	2011-09-30	Filed 2011-11-04 Print
10-Q	2011-06-30	Filed 2011-08-05 Print
10-Q	2011-03-31	Filed 2011-05-06 Print
10-K	2010-12-31	Filed 2011-02-28 Print
10-Q	2010-06-30	Filed 2010-08-06 Print
10-Q	2010-03-31	Filed 2010-05-07 Print
10-K	2009-12-31	Filed 2010-02-25 Print

8-K	2020-11-04
8-K	2020-11-02
8-K	2020-10-15
8-K	2020-10-08
8-K	2020-09-30
8-K	2020-09-22
8-K	2020-09-02
8-K	2020-07-28
8-K	2020-07-09
8-K	2020-06-30
8-K	2020-05-29
8-K	2020-05-13
8-K	2020-05-06
8-K	2020-04-30
8-K	2020-04-28
8-K	2020-04-07
8-K	2020-04-07
8-K	2020-03-24
8-K	2020-03-17
8-K	2020-03-06
8-K	2020-02-26
8-K	2020-02-18
8-K	2020-01-29
8-K	2019-10-29
8-K	2019-10-02
8-K	2019-09-19
8-K	2019-09-13
8-K	2019-08-26
8-K	2019-07-30
8-K	2019-07-16
8-K	2019-07-11
8-K	2019-05-15
8-K	2019-04-30
8-K	2019-02-27
8-K	2019-02-19
8-K	2019-02-11
8-K	2019-01-30
8-K	2018-10-23
8-K	2018-10-16
8-K	2018-09-06
8-K	2018-08-13
8-K	2018-08-01
8-K	2018-07-25
8-K	2018-07-09
8-K	2018-06-14
8-K	2018-05-16
8-K	2018-05-07
8-K	2018-05-03
8-K	2018-05-01
8-K	2018-04-30
8-K	2018-04-30
8-K	2018-04-16
8-K	2018-04-13
8-K	2018-04-02
8-K	2018-03-07
8-K	2018-03-05
8-K	2018-03-01
8-K	2018-02-28
8-K	2018-02-20
8-K	2018-02-08
8-K	2018-01-31
8-K	2018-01-29

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Balance Sheet	Income Statement	Cash Flow
CopyHistoryView Assets, Equity	CopyHistoryView Rev, G Profit, Net Income	CopyHistoryView Ops, Inv, Fin

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

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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, 2020.

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 over which we do not have significant influence or control are not material and as there are no readily determinable fair values for the equity interests, these investments are carried at cost with changes in the investment recognized to the extent cash is received.

Currency Translation and Highly Inflationary Accounting:

We translate the results of operations of our subsidiaries from multiple currencies using average exchange rates during each period and translate balance sheet accounts using exchange rates at the end of each period. We record currency translation adjustments as a component of equity (except for highly inflationary currencies) and realized exchange gains and losses on transactions in earnings.

Highly inflationary accounting is triggered when a country’s three-year cumulative inflation rate exceeds 100%. It requires the remeasurement of financial statements of subsidiaries in the country from the functional currency of the subsidiary to our U.S. dollar reporting currency, with currency remeasurement gains or losses recorded in earnings. As discussed below, beginning on July 1, 2018, we began to apply highly inflationary accounting for our operations in Argentina.

Argentina. During the second quarter of 2018, primarily based on published estimates that indicated that Argentina's three-year cumulative inflation rate exceeded 100%, we concluded that Argentina became a highly inflationary economy for accounting purposes. As of July 1, 2018, we began to apply highly inflationary accounting for our Argentinean subsidiaries and changed their functional currency from the Argentinean peso to the U.S. dollar. On July 1, 2018, both monetary and non-monetary assets and liabilities denominated in Argentinean pesos were remeasured into U.S. dollars using the exchange rate as of the balance sheet date, with remeasurement and other transaction gains and losses recorded in net earnings. As of March 31, 2021, our Argentinean operations had $5 million of Argentinean peso denominated net monetary assets. Our Argentinean operations contributed $89 million, or 1.2% of consolidated net revenues in the three months ended March 31, 2021. Within selling, general and administrative expenses, we recorded a remeasurement loss of $5 million during the three months ended March 31, 2021 as well as a remeasurement loss of $2 million during the three months ended March 31, 2020 related to the revaluation of the Argentinean peso denominated net monetary position over these periods.

Brexit. Following the separation of the United Kingdom from the European Union ("Brexit") in 2020, a new trade arrangement was reached between the U.K. and E.U. that began on January 1, 2021. The main trade provisions include the continuation of no tariffs or quotas on trade between the U.K. and E.U. subject to prescribed trade terms. We also need to meet product and labeling standards for both the U.K. and E.U. Cross-border trade between the U.K. and E.U. is now subject to new customs regulations, documentation and reviews. To comply with the new requirements, we increased resources in customer service and logistics, in our factories, and on our customs support teams. We adapted our processes and systems for the new and increased number of customs transactions. We continue to closely monitor and manage our inventory levels of imported raw materials, packaging and finished goods in the U.K. If the U.K.’s separation from, or new trade arrangements with, the E.U. negatively impact the U.K. economy or result in disagreements on trade terms, delays affecting our supply chain or distribution, or disruptions

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to sales or collections, the impact to our results of operations, financial condition and cash flows could be material. In the three months ended March 31, 2021, we generated 9.9% of our consolidated net revenues in the U.K.

Other Countries. Since we sell our products in over 150 countries and have operations in approximately 80 countries, we monitor economic and currency-related risks and seek to take protective measures in response to potential exposures. We continue to monitor the ongoing COVID-19 global pandemic and related impacts to our business operations, currencies and net monetary exposures. Since the global onset of COVID-19 in early 2020, most countries in which we do business experienced periods of significant economic uncertainty as well as exchange rate volatility. At this time, except for Argentina which is accounted for as a highly inflationary economy, we do not anticipate any other countries in which we operate to be at risk of becoming highly inflationary countries.

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. We also have restricted cash that is recorded within other current assets of $31 million as of March 31, 2021 and $31 million as of December 31, 2020. Total cash, cash equivalents and restricted cash was $2,059 million as of March 31, 2021 and $3,650 million as of December 31, 2020.

Allowances for Credit Losses:

The allowances for credit losses are recorded against our receivables. They are developed at a country and region level based on historical collection experiences, current economic condition of specific customers and the forecasted economic condition of countries using various factors such as bond default rates and consumption indexes. We write off receivables once it is determined that the receivables are no longer collectible and as allowed by local laws.

Changes in allowances for credit losses consisted of:

Copy History

			Allowance for Trade Receivables						Allowance for Other Current Receivables						Allowance for Long-Term Receivables
			(in millions)
Balance at January 1, 2021			$	(42)					$	(42)					$	(12)
Current period provision for expected credit losses			(2)						—						—
Write-offs charged against the allowance			1						1						—
Currency			3						—						1
Balance at March 31, 2021			$	(40)					$	(41)					$	(11)

Transfers of Financial Assets:

We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have non-recourse factoring arrangements in which we sell eligible trade receivables primarily to banks in exchange for cash. We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the banks. The outstanding principal amount of receivables under these arrangements amounted to $905 million as of March 31, 2021 and $760 million as of December 31, 2020. 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 $29 million in operating lease and $30 million in finance lease right-of-use assets obtained in exchange for lease obligations during the three months ended March 31, 2021 and $89 million in operating lease and $25 million in finance lease right-of-use assets obtained in exchange for lease obligations during the three months ended March 31, 2020.

New Accounting Pronouncements:

In December 2019, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") that removes certain exceptions in accounting for income taxes, improves consistency in application and

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clarifies existing guidance. This ASU is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. On January 1, 2021, we adopted this ASU and it did not have a material impact on our consolidated financial statements.

Reclassifications:

Note 2. Acquisitions and Divestitures

On April 1, 2021, we acquired Gourmet Food Holdings Pty Ltd, a leading Australian food company in the premium biscuit and cracker category, for closing cash consideration of approximately $458 million Australian dollars ($348 million). We incurred acquisition-related costs of $1 million during the three months ended March 31, 2021.

On March 25, 2021, we acquired a majority interest in Lion/Gemstone Topco Ltd ("Grenade"), a performance nutrition leader in the United Kingdom, for closing cash consideration of £188 million ($260 million), net of cash received. The acquisition of Grenade expands our position into the premium nutrition market. We are working to complete the valuation and have recorded a preliminary purchase price allocation of $81 million to indefinite-lived intangible assets, $24 million to definite-lived intangible assets, $180 million to goodwill, $1 million to property, plant and equipment, $11 million to inventory, $18 million to accounts receivable, $1 million to other current assets, $25 million to current liabilities, $20 million to deferred tax liabilities and $11 million to long-term other liabilities. We incurred acquisition-related costs of $2 million during the three months ended March 31, 2021.

On January 4, 2021, we acquired the remaining 93% of equity of Hu Master Holdings, a category leader in premium chocolate in the United States, which provides a strategic complement to our snacking portfolio in North America through growth opportunities in chocolate and other categories in the well-being category. The initial cash consideration paid was $229 million, net of cash received, and the Company may be required to pay additional cash consideration. The estimated fair value of the contingent consideration obligation at the acquisition date was $132 million and was determined using a Monte Carlo simulation based on forecasted future results. We are unable to provide a range of amounts that could be paid as contingent consideration as it is based primarily on revenue and gross margin of the business for the twelve months ended December 31, 2022 and there is not a minimum or maximum payout. As a result of acquiring the remaining equity interest, we consolidated the operations prospectively from the date of acquisition and recorded a pre-tax gain of $9 million ($7 million after-tax) related to stepping up our previously-held $8 million (7%) investment to fair value. We are working to complete the valuation and have recorded a preliminary purchase price allocation of $123 million to indefinite-lived intangible assets, $51 million to definite-lived intangible assets, $202 million to goodwill, $1 million to property, plant and equipment, $2 million to inventory, $4 million to accounts receivable, $5 million to current liabilities and $132 million to long-term other liabilities. During the three months ended March 31, 2021, the acquisition added incremental net revenues of $8 million and an operating loss of $6 million. We incurred acquisition-related costs of $4 million during the three months ended March 31, 2021.

On April 1, 2020, we acquired a majority interest in Give & Go, a North American leader in fully-finished sweet baked goods and owner of the famous two-bite® brand of brownies and the Create-A-Treat® brand, known for cookie and gingerbread house decorating kits. The acquisition of Give & Go provides access to the in-store bakery channel and expands our position in broader snacking. The purchase consideration for Give & Go totaled $1,136 million, net of cash received. We have recorded a preliminary purchase price allocation of net tangible and intangible assets acquired and liabilities assumed as follows:

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Copy History

			(in millions)
Receivables			$	29
Inventory			38
Other current assets			6
Property, plant and equipment			136
Operating right of use assets			61
Definite-life intangible assets			511
Indefinite-life intangible assets			42
Goodwill			531
Assets acquired			$	1,354
Current liabilities			42
Deferred tax liabilities			92
Long-term operating lease liabilities			56
Long-term debt			6
Long-term other liabilities			19
Total purchase price			$	1,139
Less: cash received			3
Net Cash Paid			$	1,136

Within definite-life intangible assets, we allocated $416 million to customer relationships which have an estimated useful life of 17 years. Goodwill arises principally as a result of expansion opportunities and synergies across both new and legacy product categories. None of the goodwill recognized is expected to be deductible for income tax purposes.

The fair value for customer relationships at the acquisition date was determined using the multi-period excess earnings method under the income approach. The fair value measurements of intangible assets are based on significant unobservable inputs, and thus represent Level 3 inputs. Significant assumptions used in assessing the fair values of intangible assets include discounted future cash flows, customer attrition rates and discount rates. The acquisition added incremental net revenues of $106 million and operating income of $6 million in the three months ended March 31, 2021. During the first quarter of 2020, we incurred $5 million of acquisition-related costs.

Note 3. Inventories

Inventories consisted of the following:

Copy History

			As of March 31, 2021						As of December 31, 2020
			(in millions)
Raw materials			$	766					$	718
Finished product			1,990						2,059
			2,756						2,777
Inventory reserves			(121)						(130)
Inventories, net			$	2,635					$	2,647

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Note 4. Property, Plant and Equipment

Property, plant and equipment consisted of the following:

Copy History

			As of March 31, 2021						As of December 31, 2020
			(in millions)
Land and land improvements			$	411					$	422
Buildings and building improvements			3,196						3,252
Machinery and equipment			11,889						12,053
Construction in progress			616						628
			16,112						16,355
Accumulated depreciation			(7,346)						(7,329)
Property, plant and equipment, net			$	8,766					$	9,026

For the three months ended March 31, 2021, capital expenditures of $216 million excluded $230 million of accrued capital expenditures remaining unpaid at March 31, 2021 and included payment for a portion of the $275 million of capital expenditures that were accrued and unpaid at December 31, 2020. For the three months ended March 31, 2020, capital expenditures of $214 million excluded $259 million of accrued capital expenditures remaining unpaid at March 31, 2020 and included payment for a portion of the $334 million of capital expenditures that were accrued and unpaid at December 31, 2019.

In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) and losses/(gains) on disposal in the condensed consolidated statements of earnings within asset impairment and exit costs and within the segment results as follows (refer to Note 7, Restructuring Program).

Copy History

			For the Three Months Ended March 31,
			2021						2020
			(in millions)
Latin America			$	—					$	—
AMEA			(16)						(1)
Europe			2						1
North America			54						1
Total			$	40					$	1

Note 5. Goodwill and Intangible Assets

Goodwill by segment was:

Copy History

			As of March 31, 2021						As of December 31, 2020
			(in millions)
Latin America			$	673					$	706
AMEA			3,229						3,250
Europe			7,929						8,038
North America			10,114						9,901
Goodwill			$	21,945					$	21,895

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