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 ~~September 30, 2022~~March 31, 2023


			☐			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

Mondelēz International, Inc.

(Exact name of registrant as specified in its charter)


Virginia		52-2284372
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

905 West Fulton Market, Suite 200
Chicago,	Illinois	60607
(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:

~~Tile~~Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Class A Common Stock, no par value

MDLZ

The Nasdaq Global Select Market

1.625% Notes due 2027

MDLZ27

The Nasdaq Stock Market LLC

0.250% Notes due 2028

MDLZ28

The Nasdaq Stock Market LLC

0.750% Notes due 2033

MDLZ33

The Nasdaq Stock Market LLC

2.375% Notes due 2035

MDLZ35

The Nasdaq Stock Market LLC

4.500% Notes due 2035

MDLZ35A

The Nasdaq Stock Market LLC

1.375% Notes due 2041

MDLZ41

The Nasdaq Stock Market LLC

3.875% Notes due 2045

MDLZ45

The 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 ¨

Table of Contents

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

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 ~~October 28, 2022,~~April 24, 2023, there were ~~1,365,618,508~~1,361,853,497 shares of the registrant’s Class A Common Stock outstanding.

Table of Contents

Mondelēz International, Inc.

Table of Contents


		Page No.
PART I -	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)

	Condensed Consolidated Statements of Earnings for the Three ~~and~~ ~~Nine~~Months Ended ~~September~~ ~~30,~~March 31, 2023 and 2022 ~~and 2021~~	1

	Condensed Consolidated Statements of Comprehensive Earnings for the Three ~~and~~ ~~Nine~~Months Ended ~~September~~ ~~30,~~March 31, 2023 and 2022 ~~and 2021~~	2

	Condensed Consolidated Balance Sheets at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022	3

	Condensed Consolidated Statements of Equity for the Three ~~and~~ ~~Nine~~Months Ended ~~September~~ ~~30,~~March 31, 2023 and 2022 ~~and 2021~~	4

	Condensed Consolidated Statements of Cash Flows for the ~~Nine~~Three Months Ended ~~September~~ ~~30,~~March 31, 2023 and 2022 ~~and 2021~~	5

	Notes to Condensed Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3330

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	6650

Item 4.	Controls and Procedures	6750

PART II -	OTHER INFORMATION

Item 1.	Legal Proceedings	6852

Item 1A.	Risk Factors	6852

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	6852

Item 6.	Exhibits	6953

Signature		7054

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.

Table of Contents

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 September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
Net revenues	Net revenues	$	7,763	$	7,182	$	22,801	$	21,062	Net revenues	$	9,166	$	7,764
Cost of sales	Cost of sales	5,150		4,358		14,564		12,641		Cost of sales	5,720		4,781
Gross profit	Gross profit	2,613		2,824		8,237		8,421		Gross profit	3,446		2,983
Selling, general and administrative expenses	Selling, general and administrative expenses	1,884		1,436		5,253		4,593		Selling, general and administrative expenses	1,855		1,693
Asset impairment and exit costs	Asset impairment and exit costs	18		62		188		286		Asset impairment and exit costs	47		164
Gain on acquisition		—		—		—		(9)

Amortization of intangible assets	Amortization of intangible assets	32		32		96		102		Amortization of intangible assets	39		32
Operating income	Operating income	679		1,294		2,700		3,449		Operating income	1,505		1,094
Benefit plan non-service income	Benefit plan non-service income	(30)		(37)		(93)		(135)		Benefit plan non-service income	(19)		(33)
Interest and other expense, net	Interest and other expense, net	71		82		337		358		Interest and other expense, net	95		168
Gain on marketable securities										Gain on marketable securities	(796)		—
Earnings before income taxes	Earnings before income taxes	638		1,249		2,456		3,226		Earnings before income taxes	2,225		959
Income tax provision	Income tax provision	(184)		(342)		(595)		(952)		Income tax provision	(658)		(210)
(Loss)/gain on equity method investment transactions		(6)		250		(19)		745
Gain/(loss) on equity method investment transactions										Gain/(loss) on equity method investment transactions	487		(5)
Equity method investment net earnings	Equity method investment net earnings	85		105		300		290		Equity method investment net earnings	35		117
Net earnings	Net earnings	533		1,262		2,142		3,309		Net earnings	2,089		861
Noncontrolling interest earnings	Noncontrolling interest earnings	(1)		(4)		(8)		(12)		Noncontrolling interest earnings	(8)		(6)
Net earnings attributable to Mondelēz International	Net earnings attributable to Mondelēz International	$	532	$	1,258	$	2,134	$	3,297	Net earnings attributable to Mondelēz International	$	2,081	$	855
Per share data:	Per share data:									Per share data:
Basic earnings per share attributable to Mondelēz International	Basic earnings per share attributable to Mondelēz International	$	0.39	$	0.90	$	1.55	$	2.34	Basic earnings per share attributable to Mondelēz International	$	1.52	$	0.62
Diluted earnings per share attributable to Mondelēz International	Diluted earnings per share attributable to Mondelēz International	$	0.39	$	0.89	$	1.54	$	2.33	Diluted earnings per share attributable to Mondelēz International	$	1.52	$	0.61

See accompanying notes to the condensed consolidated financial statements.

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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 September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
Net earnings	Net earnings	$	533	$	1,262	$	2,142	$	3,309	Net earnings	$	2,089	$	861
Other comprehensive earnings/(losses), net of tax:	Other comprehensive earnings/(losses), net of tax:									Other comprehensive earnings/(losses), net of tax:
Currency translation adjustment	Currency translation adjustment	(667)		(397)		(1,016)		(376)		Currency translation adjustment	151		50
Pension and other benefit plans	Pension and other benefit plans	57		67		317		138		Pension and other benefit plans	(6)		93
Derivative cash flow hedges	Derivative cash flow hedges	5		(7)		65		12		Derivative cash flow hedges	(10)		52
Total other comprehensive earnings/(losses)	Total other comprehensive earnings/(losses)	(605)		(337)		(634)		(226)		Total other comprehensive earnings/(losses)	135		195
Comprehensive earnings/(losses)	Comprehensive earnings/(losses)	(72)		925		1,508		3,083		Comprehensive earnings/(losses)	2,224		1,056
less: Comprehensive earnings/(losses) attributable to noncontrolling interests	less: Comprehensive earnings/(losses) attributable to noncontrolling interests	(11)		(1)		(19)		—		less: Comprehensive earnings/(losses) attributable to noncontrolling interests	10		2
Comprehensive earnings/(losses) attributable to Mondelēz International	Comprehensive earnings/(losses) attributable to Mondelēz International	$	(61)	$	926	$	1,527	$	3,083	Comprehensive earnings/(losses) attributable to Mondelēz International	$	2,214	$	1,054

See accompanying notes to the condensed consolidated financial statements.

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Mondelēz International, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in millions of U.S. dollars, except share data)

(Unaudited)


		September 30, 2022		December 31, 2021			March 31, 2023		December 31, 2022
ASSETS	ASSETS					ASSETS
Cash and cash equivalents	Cash and cash equivalents	$	2,177	$	3,546	Cash and cash equivalents	$	1,917	$	1,923
Trade receivables (net of allowances of $42 at September 30, 2022 and $37 at December 31, 2021)		2,819		2,337
Other receivables (net of allowances of $49 at September 30, 2022 and $49 at December 31, 2021)		684		851
Trade receivables (net of allowances of $60 at March 31, 2023 and $45 at December 31, 2022)						Trade receivables (net of allowances of $60 at March 31, 2023 and $45 at December 31, 2022)	3,502		3,088
Other receivables (net of allowances of $65 at March 31, 2023 and $59 at December 31, 2022)						Other receivables (net of allowances of $65 at March 31, 2023 and $59 at December 31, 2022)	810		819
Inventories, net	Inventories, net	3,393		2,708		Inventories, net	3,627		3,381
Other current assets	Other current assets	837		900		Other current assets	2,815		880
Total current assets	Total current assets	9,910		10,342		Total current assets	12,671		10,091
Property, plant and equipment, net	Property, plant and equipment, net	8,632		8,658		Property, plant and equipment, net	9,131		9,020
Operating lease right of use assets	Operating lease right of use assets	668		613		Operating lease right of use assets	657		660
Goodwill	Goodwill	22,387		21,978		Goodwill	23,604		23,450
Intangible assets, net	Intangible assets, net	19,313		18,291		Intangible assets, net	19,810		19,710
Prepaid pension assets	Prepaid pension assets	1,078		1,009		Prepaid pension assets	1,065		1,016
Deferred income taxes	Deferred income taxes	482		541		Deferred income taxes	451		473
Equity method investments	Equity method investments	4,498		5,289		Equity method investments	3,397		4,879
Other assets	Other assets	1,068		371		Other assets	2,000		1,862
TOTAL ASSETS	TOTAL ASSETS	$	68,036	$	67,092	TOTAL ASSETS	$	72,786	$	71,161
LIABILITIES	LIABILITIES					LIABILITIES
Short-term borrowings	Short-term borrowings	$	1,753	$	216	Short-term borrowings	$	2,461	$	2,299
Current portion of long-term debt	Current portion of long-term debt	100		1,746		Current portion of long-term debt	1,185		383
Accounts payable	Accounts payable	6,726		6,730		Accounts payable	7,885		7,562
Accrued marketing	Accrued marketing	2,258		2,097		Accrued marketing	2,668		2,370
Accrued employment costs	Accrued employment costs	829		822		Accrued employment costs	785		949
Other current liabilities	Other current liabilities	2,655		2,397		Other current liabilities	3,547		3,168
Total current liabilities	Total current liabilities	14,321		14,008		Total current liabilities	18,531		16,731
Long-term debt	Long-term debt	19,811		17,550		Long-term debt	18,556		20,251
Long-term operating lease liabilities	Long-term operating lease liabilities	523		459		Long-term operating lease liabilities	508		514
Deferred income taxes	Deferred income taxes	3,401		3,444		Deferred income taxes	3,648		3,437
Accrued pension costs	Accrued pension costs	537		681		Accrued pension costs	387		403
Accrued postretirement health care costs	Accrued postretirement health care costs	291		301		Accrued postretirement health care costs	214		217
Other liabilities	Other liabilities	2,482		2,326		Other liabilities	2,668		2,688
TOTAL LIABILITIES	TOTAL LIABILITIES	41,366		38,769		TOTAL LIABILITIES	44,512		44,241
Commitments and Contingencies (Note 12)	Commitments and Contingencies (Note 12)					Commitments and Contingencies (Note 12)
EQUITY	EQUITY					EQUITY
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at September 30, 2022 and December 31, 2021)		—		—
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at March 31, 2023 and December 31, 2022)						Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at March 31, 2023 and December 31, 2022)	—		—
Additional paid-in capital	Additional paid-in capital	32,116		32,097		Additional paid-in capital	32,112		32,143
Retained earnings	Retained earnings	31,437		30,806		Retained earnings	33,040		31,481
Accumulated other comprehensive losses	Accumulated other comprehensive losses	(11,231)		(10,624)		Accumulated other comprehensive losses	(10,814)		(10,947)
Treasury stock, at cost (629,145,172 shares at September 30, 2022 and 604,907,239 shares at December 31, 2021)		(25,681)		(24,010)
Treasury stock, at cost (634,260,938 shares at March 31, 2023 and 630,646,687 shares at December 31, 2022)						Treasury stock, at cost (634,260,938 shares at March 31, 2023 and 630,646,687 shares at December 31, 2022)	(26,110)		(25,794)
Total Mondelēz International Shareholders’ Equity	Total Mondelēz International Shareholders’ Equity	26,641		28,269		Total Mondelēz International Shareholders’ Equity	28,228		26,883
Noncontrolling interest	Noncontrolling interest	29		54		Noncontrolling interest	46		37
TOTAL EQUITY	TOTAL EQUITY	26,670		28,323		TOTAL EQUITY	28,274		26,920
TOTAL LIABILITIES AND EQUITY	TOTAL LIABILITIES AND EQUITY	$	68,036	$	67,092	TOTAL LIABILITIES AND EQUITY	$	72,786	$	71,161

See accompanying notes to the condensed consolidated financial statements.

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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															Mondelēz International Shareholders’ Equity
		Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Earnings/ (Losses)		Treasury Stock		Non-controlling Interest		Total Equity			Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Earnings/ (Losses)		Treasury Stock		Non-controlling Interest		Total Equity
Three Months Ended September 30, 2022
Balances at July 1, 2022		$	—	$	32,086	$	31,431	$	(10,638)	$	(25,368)	$	42	$	27,553
Three Months Ended March 31, 2023																Three Months Ended March 31, 2023
Balances at January 1, 2023																Balances at January 1, 2023	$	—	$	32,143	$	31,481	$	(10,947)	$	(25,794)	$	37	$	26,920
Comprehensive earnings/(losses):	Comprehensive earnings/(losses):															Comprehensive earnings/(losses):
Net earnings	Net earnings	—		—		532		—		—		1		533		Net earnings	—		—		2,081		—		—		8		2,089
Other comprehensive earnings/(losses), net of income taxes	Other comprehensive earnings/(losses), net of income taxes	—		—		—		(593)		—		(12)		(605)		Other comprehensive earnings/(losses), net of income taxes	—		—		—		133				2		135
Exercise of stock options and issuance of other stock awards	Exercise of stock options and issuance of other stock awards	—		30		(2)		—		25		—		53		Exercise of stock options and issuance of other stock awards	—		(31)		(8)		—		93		—		54
Common Stock repurchased	Common Stock repurchased	—		—		—		—		(338)		—		(338)		Common Stock repurchased	—		—		—		—		(409)		—		(409)
Cash dividends declared ($0.390 per share)	Cash dividends declared ($0.390 per share)	—		—		(524)		—		—		—		(524)		Cash dividends declared ($0.390 per share)	—		—		(528)		—		—		—		(528)
Dividends paid on noncontrolling interest and other activities	Dividends paid on noncontrolling interest and other activities	—		—		—		—		—		(2)		(2)		Dividends paid on noncontrolling interest and other activities	—		—		14		—		—		(1)		13
Balances at September 30, 2022		$	—	$	32,116	$	31,437	$	(11,231)	$	(25,681)	$	29	$	26,670
Nine Months Ended September 30, 2022
Balances at March 31, 2023																Balances at March 31, 2023	$	—	$	32,112	$	33,040	$	(10,814)	$	(26,110)	$	46	$	28,274

Three Months Ended March 31, 2022																Three Months Ended March 31, 2022
Balances at January 1, 2022	Balances at January 1, 2022	$	—	$	32,097	$	30,806	$	(10,624)	$	(24,010)	$	54	$	28,323	Balances at January 1, 2022	$	—	$	32,097	$	30,806	$	(10,624)	$	(24,010)	$	54	$	28,323
Comprehensive earnings/(losses):
Net earnings		—		—		2,134		—		—		8		2,142
Other comprehensive earnings/(losses), net of income taxes		—		—		—		(607)		—		(27)		(634)
Exercise of stock options and issuance of other stock awards		—		19		(13)		—		172		—		178
Common Stock repurchased		—		—		—		—		(1,843)		—		(1,843)
Cash dividends declared ($1.090 per share)		—		—		(1,493)		—		—		—		(1,493)
Dividends paid on noncontrolling interest and other activities		—		—		3		—		—		(6)		(3)
Balances at September 30, 2022		$	—	$	32,116	$	31,437	$	(11,231)	$	(25,681)	$	29	$	26,670
Three Months Ended September 30, 2021
Balances at July 1, 2021		$	—	$	32,042	$	29,538	$	(10,572)	$	(23,465)	$	77	$	27,620
Comprehensive earnings/(losses):	Comprehensive earnings/(losses):															Comprehensive earnings/(losses):
Net earnings	Net earnings	—		—		1,258		—		—		4		1,262		Net earnings	—		—		855		—		—		6		861
Other comprehensive earnings/(losses), net of income taxes	Other comprehensive earnings/(losses), net of income taxes	—		—		—		(332)		—		(5)		(337)		Other comprehensive earnings/(losses), net of income taxes	—		—		—		199		—		(4)		195
Exercise of stock options and issuance of other stock awards	Exercise of stock options and issuance of other stock awards	—		24		(3)		—		22		—		43		Exercise of stock options and issuance of other stock awards	—		(44)		(11)		—		115		—		60
Common Stock repurchased	Common Stock repurchased	—		—		—		—		(326)		—		(326)		Common Stock repurchased	—		—		—		—		(735)		—		(735)
Cash dividends declared ($0.315 per share)	Cash dividends declared ($0.315 per share)	—		—		(489)		—		—		—		(489)		Cash dividends declared ($0.315 per share)	—		—		(487)		—		—		—		(487)
Dividends paid on noncontrolling interest and other activities	Dividends paid on noncontrolling interest and other activities	—		—		1		—		—		(20)		(19)		Dividends paid on noncontrolling interest and other activities	—		—		—		—		—		(1)		(1)
Balances at September 30, 2021		$	—	$	32,066	$	30,305	$	(10,904)	$	(23,769)	$	56	$	27,754
Nine Months Ended September 30, 2021
Balances at January 1, 2021		$	—	$	32,070	$	28,402	$	(10,690)	$	(22,204)	$	76	$	27,654
Comprehensive earnings/(losses):
Net earnings		—		—		3,297		—		—		12		3,309
Other comprehensive earnings/(losses), net of income taxes		—		—		—		(214)		—		(12)		(226)
Exercise of stock options and issuance of other stock awards		—		(4)		(21)		—		229		—		204
Common Stock repurchased		—		—		—		—		(1,794)		—		(1,794)
Cash dividends declared ($0.630 per share)		—		—		(1,378)		—		—		—		(1,378)
Dividends paid on noncontrolling interest and other activities		—		—		5		—		—		(20)		(15)
Balances at September 30, 2021		$	—	$	32,066	$	30,305	$	(10,904)	$	(23,769)	$	56	$	27,754
Balances at March 31, 2022																Balances at March 31, 2022	$	—	$	32,053	$	31,163	$	(10,425)	$	(24,630)	$	55	$	28,216

See accompanying notes to the condensed consolidated financial statements.

Table of Contents

Mondelēz International, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in millions of U.S. dollars)

(Unaudited)


		For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021			2023		2022
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES	CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES					CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES
Net earnings	Net earnings	$	2,142	$	3,309	Net earnings	$	2,089	$	861
Adjustments to reconcile net earnings to operating cash flows:	Adjustments to reconcile net earnings to operating cash flows:					Adjustments to reconcile net earnings to operating cash flows:
Depreciation and amortization	Depreciation and amortization	819		837		Depreciation and amortization	303		275
Stock-based compensation expense	Stock-based compensation expense	88		88		Stock-based compensation expense	38		24
Deferred income tax (benefit)/provision		41		159
Deferred income tax provision/(benefit)						Deferred income tax provision/(benefit)	199		(70)
Asset impairments and accelerated depreciation	Asset impairments and accelerated depreciation	178		203		Asset impairments and accelerated depreciation	18		155
Loss on early extinguishment of debt	Loss on early extinguishment of debt	38		110		Loss on early extinguishment of debt	—		38
Gain on acquisition		—		(9)
Loss/(gain) on equity method investment transactions		19		(745)

(Gain)/loss on equity method investment transactions						(Gain)/loss on equity method investment transactions	(487)		5
Equity method investment net earnings	Equity method investment net earnings	(300)		(290)		Equity method investment net earnings	(35)		(117)
Distributions from equity method investments	Distributions from equity method investments	169		158		Distributions from equity method investments	102		107

Other non-cash items, net		252		(52)
Unrealized gain on derivative contracts						Unrealized gain on derivative contracts	(67)		(13)
Unrealized gain on marketable securities						Unrealized gain on marketable securities	(787)		—
Non-cash items, net						Non-cash items, net	25		—
Change in assets and liabilities, net of acquisitions and divestitures:	Change in assets and liabilities, net of acquisitions and divestitures:					Change in assets and liabilities, net of acquisitions and divestitures:
Receivables, net	Receivables, net	(625)		(417)		Receivables, net	(590)		(517)
Inventories, net	Inventories, net	(745)		(342)		Inventories, net	(232)		(81)
Accounts payable	Accounts payable	332		420		Accounts payable	216		397
Other current assets	Other current assets	(143)		(259)		Other current assets	(137)		(104)
Other current liabilities	Other current liabilities	413		(231)		Other current liabilities	517		230
Change in pension and postretirement assets and liabilities, net	Change in pension and postretirement assets and liabilities, net	(162)		(219)		Change in pension and postretirement assets and liabilities, net	(49)		(59)
Net cash provided by operating activities	Net cash provided by operating activities	2,516		2,720		Net cash provided by operating activities	1,123		1,131
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES	CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES					CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES
Capital expenditures	Capital expenditures	(621)		(639)		Capital expenditures	(223)		(167)
Acquisitions, net of cash received	Acquisitions, net of cash received	(3,978)		(833)		Acquisitions, net of cash received	1		(1,418)
Proceeds from divestitures including equity method investments	Proceeds from divestitures including equity method investments	604		1,498		Proceeds from divestitures including equity method investments	1,034		66
Proceeds from derivative settlements and other		585		80
Net cash (used in)/provided by investing activities		(3,410)		106
(Payments)/proceeds from investments and derivative settlements						(Payments)/proceeds from investments and derivative settlements	(176)		78
Net cash provided by/(used in) investing activities						Net cash provided by/(used in) investing activities	636		(1,441)
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES	CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES					CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES

Net issuances/(repayments) of short-term borrowings	Net issuances/(repayments) of short-term borrowings	1,370		207		Net issuances/(repayments) of short-term borrowings	156		217
Long-term debt proceeds	Long-term debt proceeds	4,490		5,921		Long-term debt proceeds	—		1,991
Long-term debt repayments	Long-term debt repayments	(3,005)		(5,898)		Long-term debt repayments	(1,036)		(2,306)
Repurchases of Common Stock	Repurchases of Common Stock	(1,838)		(1,824)		Repurchases of Common Stock	(399)		(751)
Dividends paid	Dividends paid	(1,457)		(1,337)		Dividends paid	(529)		(491)
Other	Other	143		(40)		Other	51		60
Net cash used in financing activities	Net cash used in financing activities	(297)		(2,971)		Net cash used in financing activities	(1,757)		(1,280)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	Effect of exchange rate changes on cash, cash equivalents and restricted cash	(167)		(97)		Effect of exchange rate changes on cash, cash equivalents and restricted cash	(11)		(10)
Cash, cash equivalents and restricted cash:	Cash, cash equivalents and restricted cash:					Cash, cash equivalents and restricted cash:
(Decrease)/Increase	(Decrease)/Increase	(1,358)		(242)		(Decrease)/Increase	(9)		(1,600)
Balance at beginning of period	Balance at beginning of period	3,553		3,650		Balance at beginning of period	1,948		3,553
Balance at end of period	Balance at end of period	$	2,195	$	3,408	Balance at end of period	$	1,939	$	1,953

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, ~~2021.~~2022.

Principles of ~~Consolidation:~~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~~with readily determinable fair values for which we do not have the ability to exercise significant influence ~~or control~~ are ~~not material and as there are no readily determinable~~measured at fair ~~values for the equity interests, these investments are carried at cost with changes in the investment recognized to the extent cash is received.~~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. During the first quarter of 2022, we evaluated and impaired these and other related assets. We recorded $143 million of total expenses ($145 million after-tax) incurred as a direct result of the ~~war, including $75~~war. We reversed $22 million ~~recorded in asset impairment and exit costs~~, $44 million in cost of sales and $24 million in selling, general and administrative expenses. We recorded $75 million of property, plant and equipment impairments, $33 million of estimated inventory write-offs, $19 million of increased estimated allowances for trade receivables and $16 million in accrued expenses. Duringduring the ~~second and third quarters~~remainder of 2022 ~~we reversed approximately $15~~and $3 million ~~and $7 million, respectively,~~during the first quarter of 2023 of previously recorded charges primarily as a result of higher than expected collection of trade receivables and inventory recoveries. We continue to make targeted repairs on both our plants and have partially reopened and restarted limited 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 full 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. ~~In connection with these findings and impacts, we have made estimates and assumptions based on information available to us.~~ 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.

~~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 currency 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. Local currency monetary assets and liabilities are remeasured into U.S. dollars using exchange rates as of the latest balance sheet date, with remeasurement gains and losses recognized in net earnings.Inflationary Accounting

~~Türkiye.~~ During the first quarter of 2022, primarily based on data published by the Türkiye Statistical Institute that indicated that Türkiye's three-year cumulative inflation rate exceeded 100%, we concluded that Türkiye became a highly inflationary economy for accounting purposes. As of April 1, 2022, we began to apply highly inflationary accounting for our subsidiaries operating in Türkiye and changed their functional currency from the Turkish lira to the U.S. dollar. Our operations in Türkiye contributed $52 million or 0.7% of our condensed consolidated net revenues in the three months and $141 million or 0.6% of our condensed consolidated net revenues in the nine

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~~months ended September 30, 2022. As of September 30, 2022, our operations in Türkiye had $3 million of Turkish lira denominated net monetary liabilities.~~ Within selling, general and administrative expenses, we recorded a remeasurement gain of $1 million during the three months and nine months ended September 30, 2022 related to the revaluation of the Turkish lira denominated net monetary position over these periods.

~~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. Our operations in Argentina contributed $139 million or 1.8% of consolidated net revenues in the three months and $407 million or 1.8% of our condensed consolidated net revenues in the nine months ended September 30, 2022. As of September 30, 2022, our Argentinean operations had $12 million of Argentinean peso denominated net monetary assets. Within selling, general and administrative expenses, we recorded a remeasurement loss of $12 million during the three months and $27 million during the nine months ended September 30, 2022 as well as a remeasurement loss of $2 million during the three months and $10 million during the nine months ended September 30, 2021 related to the revaluation of the Argentinean peso denominated net monetary position over these periods.

~~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 developments in Ukraine and Russia and the COVID-19 global pandemic and related impacts to our business operations, currencies and net monetary exposures. Related to the war and pandemic, most countries in which we do business experienced periods of significant economic uncertainty, inflation and exchange rate volatility. At this time, within our consolidated entities, Argentina and Türkiye(Turkey) are accounted for as highly inflationary ~~economies as noted above,~~economies. Argentina and ~~we continue to monitor currency volatility~~Türkiye represent 1.5% and ~~associated risks, such as increased risk~~1.0% of ~~highly inflationary economies~~our consolidated net revenues with remeasurement losses of $11 million and ~~related accounting.~~$1 million for the period ended March 31, 2023, respectively.

Cash, Cash Equivalents and Restricted ~~Cash:~~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 ~~$18~~$22 million as of ~~September 30, 2022~~March 31, 2023 and $7$25 million as of December 31, ~~2021.~~2022. Total cash, cash equivalents and restricted cash was ~~$2,195~~$1,939 million as of ~~September 30, 2022~~March 31, 2023 and ~~$3,553~~$1,948 million as of December 31, ~~2021.~~2022.

~~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:~~

Allowance for Trade Receivables Allowance for Other Current Receivables Allowance for Long-Term Receivables
(in millions)
Balance at January 1, 2022 $ (37) $ (49) $ (10)
Current period provision for expected credit losses (9) (7) (3)
Write-offs charged against the allowance 1 3 —
Currency 3 4 —
Balance at September 30, 2022 $ (42) $ (49) $ (13)

~~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

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~~factoring arrangements~~Allowances for Credit Losses

Changes in ~~which we sell eligible trade receivables primarily to banks in exchange~~allowances for ~~cash. We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf~~credit losses consisted of:


	Allowance for Trade Receivables		Allowance for Other Current Receivables		Allowance for Long-Term Receivables
	(in millions)
Balance at January 1, 2023	$	(45)	$	(59)	$	(14)
Current period provision for expected credit losses	(16)		(5)		—
Write-offs charged against the allowance	2		—		—

Currency	(1)		(1)		—
Balance at March 31, 2023	$	(60)	$	(65)	$	(14)

Transfers of ~~the banks.~~ Financial Assets

The outstanding principal amount of receivables under ~~these~~our uncommitted revolving non-recourse accounts receivable factoring arrangements amounted to ~~$743~~$858 million as of ~~September 30, 2022~~March 31, 2023 and ~~$761~~$516 million as of December 31, ~~2021.~~2022. 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:~~Transactions

We recorded ~~$206~~$39 million in operating lease and ~~$135~~$27 million in finance lease right-of-use assets obtained in exchange for lease obligations during the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 and ~~$159~~$95 million in operating lease and ~~$59~~$56 million in finance lease right-of-use assets obtained in exchange for lease obligations during the ~~nine~~three months ended ~~September~~March 31, 2022.

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. Our current payment terms with a majority of our suppliers are from 30 ~~2021.~~to 180 days, which we deem to be commercially reasonable. We also facilitate voluntary supply chain financing (“SCF”) programs through several participating financial institutions. Under these programs, our suppliers, at their sole discretion, determine invoices that they want to sell to participating financial institutions. Our suppliers’ voluntary inclusion of invoices in SCF programs has no bearing on our payment terms or amounts due. Our responsibility is limited to making payments based upon the agreed-upon contractual terms. No guarantees are provided by the Company or any of our subsidiaries under the SCF programs and we have no economic interest in the suppliers’ decision to participate in the SCF programs. Amounts due to our suppliers that elected to participate in the SCF program are included in accounts payable in our consolidated balance sheet. We have been informed by the participating financial institutions that as of March 31, 2023 and December 31, 2022, $2.5 billion and $2.4 billion, respectively, of our outstanding accounts payable related to suppliers that participate in the SCF programs.

New Accounting ~~Pronouncements:~~Pronouncements

In October 2021, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) which requires companies to recognize and measure customer contract assets and contract liabilities acquired in a business combination as if the acquiring company originated the related revenue contracts. Prior to adopting this ASU, acquired contract assets and liabilities were measured at fair value. This ASU is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted. We ~~are evaluating the timing and effects of adopting this ASU and currently we do not expect this ASU to have a material impact on our consolidated financial statements.~~

In March 2020 and subsequently in January 2021, the FASB issued an ASU to provide optional accounting guidance for a limited period of time to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions to existing accounting requirements for contract modifications and hedge accounting related to transitioning from discontinued reference rates, such as LIBOR, to alternative reference rates, if certain criteria are met. The new accounting requirements can be applied as of the beginning of the interim period including March 12, 2020, or any date thereafter, through December 31, 2022. We expect to adoptadopted this standard in the ~~fourth~~first quarter of ~~2022. Based on our evaluation of our contracts to date, we do~~2023 and it did not ~~expect this ASU to~~ have ~~a material~~an impact on our consolidated financial statements.

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 ~~rollforward~~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 ~~rollforward~~roll-forward requirement, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. We ~~are currently assessing~~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.

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Note 2. Acquisitions and Divestitures

Acquisitions

Ricolino

On November 1, 2022, we acquired 100% of the equity of Grupo Bimbo's confectionery business, Ricolino, located primarily in Mexico. The acquisition of Ricolino builds on our continued prioritization of fast-growing snacking segments in key geographies. The cash consideration paid for Ricolino totaled ~~$1.3 billion. During~~$26 billion Mexican pesos ($1.3 billion), net of cash received.

We are working to complete the ~~nine months ended September 30, 2022,~~valuation of assets acquired and liabilities assumed and have recorded a preliminary purchase price allocation of:


	(in millions)
Cash	$	22
Receivables	86
Inventory	70
Other current assets	3
Property, plant and equipment	144
Operating leases right of use assets	17

Definite-life intangible assets	218
Indefinite-life intangible assets	339
Goodwill	714

Assets acquired	$	1,613
Current liabilities	177
Deferred tax liability	77
Operating lease liabilities	17
Other liabilities	12
Total purchase price	$	1,330
Less: cash received	(22)
Net Cash Paid	$	1,308

Within identifiable intangible assets, we ~~incurred $1~~allocated $339 million to trade names, which have an indefinite life. The fair value for the Ricolino, Dulces Vero, LaCorona and Coronado trade names were determined using the Relief from Royalty method, a form of ~~acquisition-related costs. We also incurred~~the income approach, at the acquisition date. The fair value measurement of indefinite-life 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 estimates of future sales, discount and royalty rates.

Goodwill was determined as the excess of the purchase price over the fair value of the net assets acquired and arises principally as a result of expansion opportunities and synergies across both new and legacy product categories in Mexico. None of the goodwill recognized is expected to be deductible for income tax purposes. All of the goodwill was assigned to the Latin American operating segment.

Ricolino added incremental net revenues of $171 million and operating income of $9 million during the three ~~and nine~~ months ended ~~September 30, 2022,~~March 31, 2023. We incurred acquisition integration costs of $7$6 million ~~in preparation for~~during the ~~acquisition.~~three months ended March 31, 2023.

Clif Bar

On August 1, 2022, we acquired 100% of the equity of Clif Bar & Company (“Clif Bar”), a leading U.S. maker of nutritious energy bars with organic ingredients. The acquisition expands our global snack bar business and complements our refrigerated snacking and performance nutrition bar portfolios. The total cash payment of $2.9 billion includes purchase price consideration of $2.6 billion, net of cash received, and one-time compensation expense of $0.3 billion related to the buyout of the non-vested employee stock ownership plan ("ESOP") shares. This compensation expense is considered an acquisition-related cost. The acquisition of Clif Bar includes a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain revenue and earnings targets in 2025 and 2026 that exceed our base financial projections for the business

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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 estimated fair value of the contingent consideration obligation at the acquisition date was $440 million 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 earnings before interest, tax, depreciation and amortization ("EBITDA"), as well as discount and volatility rates.

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We are working to complete the valuation of assets acquired and liabilities assumed and have recorded a preliminary purchase price allocation of:


	(in millions)
Cash	$	99
Receivables	76
Inventory	124
Other current assets	9
Property, plant and equipment	186
Operating leases right of use assets	22
Deferred tax assets	9392

~~Definite life~~Definite-life intangible assets	200
~~Indefinite life~~Indefinite-life intangible assets	1,450
Goodwill	~~1,016~~1,020
Other assets	1411
Assets acquired	$	3,289
Current liabilities	159

Contingent consideration	440
Other liabilities	15
Total purchase price	$	2,675
Less: cash received	(99)
Net Cash Paid	$	2,576

Within identifiable intangible assets, we allocated $1,450 million to trade names, which have an ~~indefinite-life.~~indefinite life. The fair value for the Clif and Luna trade names, were determined using the ~~relief-from-royalty~~Relief from Royalty method, a form of the income approach, at the acquisition date. The fair value measurement 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 forecasted future revenue, discount and royalty rates. We expect to generate a meaningful cash tax benefit over time from the amortization of acquisition-related intangibles.

Goodwill was determined as the excess of the purchase price over the fair value of the net assets acquired and arises principally as a result of expansion opportunities and synergies across the U.S. and other key markets. All of the goodwill was assigned to the North America operating segment. Tax deductible goodwill is expected to be $1.4 billion and will be amortized.

Clif Bar added incremental net revenues of ~~$157~~$218 million and operating ~~loss~~income of ~~$33~~$35 million during the three months ended ~~September 30, 2022. The operating loss includes~~March 31, 2023. We incurred acquisition integration costs of ~~$16~~$39 million ~~and an inventory step-up charge of $20 million incurred~~ during the three months ended ~~September 30, 2022. We also incurred acquisition-related~~March 31, 2023. These acquisition integration costs ~~of $292 million during the three months and $296 million during the nine months ended September 30, 2022. These acquisition-related costs are primarily related~~include an increase to the ~~buyout of the non-vested ESOP shares.~~contingent consideration liability due to changes to underlying assumptions. Refer to Note 9, Financial Instruments for additional information.

Chipita

On January 3, 2022, we acquired 100% of the equity of Chipita Global S.A. (“Chipita”), a leading croissants and baked snacks company in the Central and Eastern European markets. The acquisition of Chipita offers a strategic complement to our existing portfolio and advances our strategy to become the global leader in broader snacking. The cash consideration paid for Chipita totaled €1.2 billion ($1.4 billion), net of cash received, plus the assumption of Chipita’s debt of €0.5 billion ($0.4 billion) for a total purchase price of €1.7 billion ($1.8 billion).

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We ~~are working to complete the valuation and~~ have recorded a ~~preliminary~~ purchase price allocation ~~of:~~of net tangible and intangible assets acquired and liabilities assumed as follows:


	(in millions)
Cash	$	52
Receivables	102
Inventory	60
Other current assets	3
Property, plant and equipment	~~383~~379
Finance leases right of use assets	8
~~Definite life~~Definite-life intangible assets	48
~~Indefinite life~~Indefinite-life intangible assets	686
Goodwill	~~791~~795
Other assets	77
Assets acquired	$	2,210
Current liabilities	133
Deferred tax liability	158
Finance lease liabilities	8
Other liabilities	21
Total purchase price	$	1,890
Less: long-term debt	(436)
Less: cash received	(52)
Net Cash Paid	$	1,402

Within identifiable intangible assets, we allocated $686 million to trade names, which have an ~~indefinite-life.~~indefinite life. The fair value for the 7 Days trade name, which is the primary asset acquired, was determined using the multi-period excess earnings method under the income approach at the acquisition date. 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 forecasted future cash flows and discount rates.

Goodwill was determined as the excess of the purchase price over the fair value of the net assets acquired and 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. All of the goodwill was assigned to the Europe operating segment.

~~Chipita added incremental net revenues~~ We incurred acquisition integration costs of ~~$158~~$6 million during the three months ~~and $490 million during the nine months~~ ended ~~September 30, 2022, and operating income of $25 million during the three months and $39 million during the nine months ended September 30, 2022.~~March 31, 2023. We incurred acquisition-related costs of $21 million ~~during the nine months ended September 30, 2022~~ and ~~$6 million during the nine months ended September 30, 2021. We incurred~~ acquisition integration costs of $14 million during the three months and $85 million during the nine months ended September 30, 2022. We incurred acquisition integration costs of $6 million in the three and nine months ended September 30, 2021.

On November 1, 2021, we completed the sale of MaxFoods Pty Ltd, an Australian packaged seafood business that we had acquired as part of our acquisition of Gourmet Food Holdings Pty Ltd (“Gourmet Food”). The sales price was $57 million Australian dollars ($41 million), net of cash divested with the business, and we recorded an immaterial loss on the transaction.

On April 1, 2021, we acquired Gourmet Food, a leading Australian food company in the premium biscuit and cracker category, for closing cash consideration of approximately $450 million Australian dollars ($343 million), net of cash received. We have recorded a purchase price allocation of net tangible and intangible assets acquired and liabilities assumed of $41 million to indefinite-lived intangible assets, $80 million to definite-lived intangible assets, $164 million to goodwill, $19 million to property, plant and equipment, $18 million to inventory, $25 million to accounts receivable, $12 million to other assets, $5 million to operating right of use assets, $3 million to other current assets, $19 million to current liabilities and $5 million to long-term operating lease liabilities. Through the one-year anniversary of the acquisition, Gourmet Food added incremental net revenues of $14 million, and operating income of $1 million during the nine months ended September 30, 2022. We incurred acquisition integration costs of $1$35 million during the three months ended ~~September 30,~~March 31, 2022. ~~We incurred acquisition-related costs of $7 million during the nine months ended September 30, 2021.~~

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Divestitures

Developed Market Gum - Held for Sale

On ~~March 25, 2021,~~December 16, 2022, Mondelēz entered into an agreement to sell its developed market gum business in North America and Europe for $1.4 billion. It is expected to close in Q4 2023, subject to relevant antitrust approvals and closing conditions. In connection with these agreements, we ~~acquired a majority interest in Lion/Gemstone Topco Ltd ("Grenade"), a performance nutrition leader in~~concluded that the ~~United Kingdom,~~disposal group met the held for ~~closing cash consideration~~sale criteria as of ~~£188 million ($261 million), net of cash received.~~December 31, 2022. The acquisition of Grenade expands our position into the premium nutrition segment. We have recorded a purchase price allocation of net tangible and intangible assets acquired and liabilities assumed of $82 million to indefinite-lived intangible assets, $28 million to definite-lived intangible assets, $181 million to goodwill, $1 million to property, plant and equipment, $11 million to inventory, $18 million to accounts receivable, $25 million to current liabilities, $20 million to deferred tax liabilities and $15 million to long-term other liabilities. Through the one-year anniversarydisposal group is included as part of the ~~acquisition, Grenade added incremental net revenues~~North America and Europe operating segments.

We incurred divestiture-related costs of ~~$21 million, and operating income of $2~~$30 million during the ~~nine~~three months ended ~~September 30, 2022. We incurred acquisition-related costs of $2 million during the nine months ended September 30, 2021.~~March 31, 2023.

On January 4, 2021, we acquired the remaining 93% of equity of Hu Master Holdings ("Hu"), 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 chocolateTotal assets and other categories in the well-being category. The initial cash consideration paid was $229 million, net of cash received, and we may be required to pay additional contingent consideration. The estimated fair valueliabilities held for sale are comprised of the ~~contingent consideration obligation at~~following:


	As of March 31, 2023		As of December 31, 2022
	(in millions)
Inventories, net	$	90	$	79
Current assets held for sale (1)	$	90	$	79
Property, plant and equipment, net	161		159
Goodwill	292		292
Intangible assets, net	677		671
Noncurrent assets held for sale (2)	$	1,130	$	1,122

Accrued employment costs	6		4
Current liabilities held for sale (3)	$	6	$	4
Deferred income taxes	13		15
Noncurrent liabilities held for sale (4)	$	13	$	15

(1)Reported in Other current assets on the ~~acquisition date was $132 million and was determined using a Monte Carlo simulation based~~condensed consolidated balance sheets.

(2)Reported in Other assets on ~~forecasted future results. During~~ the ~~third quarter of 2021, we recorded a $70 million reduction to the liability due to changes~~condensed consolidated balance sheets.

(3)Reported in the expected pace of growth. During the third quarter of 2022, we recorded an additional $7 million reduction to the liability due to further changes to forecasted future results. 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 have recorded a purchase price allocation of net tangible and intangible assets acquired and liabilities assumed 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 toOther current liabilities ~~and $132 million to long-term other liabilities. We incurred acquisition-related costs of $9 million during~~on the ~~nine months ended September 30, 2021.~~condensed consolidated balance sheets.

(4)Reported in Other liabilities on the condensed consolidated balance sheets.

Note 3. Inventories

Inventories consisted of the following:


		As of September 30, 2022		As of December 31, 2021			As of March 31, 2023		As of December 31, 2022
		(in millions)					(in millions)
Raw materials	Raw materials	$	1,037	$	770	Raw materials	$	1,096	$	1,031
Finished product	Finished product	2,492		2,054		Finished product	2,680		2,501
		3,529		2,824			3,776		3,532
Inventory reserves	Inventory reserves	(136)		(116)		Inventory reserves	(149)		(151)
Inventories, net	Inventories, net	$	3,393	$	2,708	Inventories, net	$	3,627	$	3,381

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Note 4. Property, Plant and Equipment

Property, plant and equipment consisted of the following:


		As of September 30, 2022		As of December 31, 2021			As of March 31, 2023		As of December 31, 2022
		(in millions)					(in millions)
Land and land improvements	Land and land improvements	$	349	$	379	Land and land improvements	$	378	$	378
Buildings and building improvements	Buildings and building improvements	3,123		3,139		Buildings and building improvements	3,319		3,250
Machinery and equipment	Machinery and equipment	11,474		11,842		Machinery and equipment	12,050		11,724
Construction in progress	Construction in progress	783		732		Construction in progress	825		879
		15,729		16,092			16,572		16,231
Accumulated depreciation	Accumulated depreciation	(7,097)		(7,434)		Accumulated depreciation	(7,441)		(7,211)
Property, plant and equipment, net	Property, plant and equipment, net	$	8,632	$	8,658	Property, plant and equipment, net	$	9,131	$	9,020

For the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, capital expenditures of ~~$621~~$223 million excluded ~~$255~~$290 million of accrued capital expenditures remaining unpaid at ~~September 30, 2022~~March 31, 2023 and included payment for ~~$249 million~~a portion of

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~~capital expenditures that were accrued and unpaid at December 31, 2021. For~~ the ~~nine months ended September 30, 2021, capital expenditures of $639 million excluded $237 million of accrued capital expenditures remaining unpaid at September 30, 2021 and included payment for $275~~$324 million of capital expenditures that were accrued and unpaid at December 31, ~~2020.~~

~~In connection with our restructuring program, we recorded non-cash property, plant~~2022. For the three months ended March 31, 2022, capital expenditures of $167 million excluded $244 million of accrued capital expenditures remaining unpaid at March 31, 2022 and ~~equipment write-downs (including accelerated depreciation~~included payment for a portion of the $249 million of capital expenditures that were accrued 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~~).

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021
(in millions)
Latin America $ (2) $ — $ (3) $ —
AMEA 2 — 2 (16)
Europe 1 3 4 6
North America (11) 48 (7) 165
Total $ (10) $ 51 $ (4) $ 155
unpaid at December 31, 2021.

Note 5. Goodwill and Intangible Assets

Goodwill ~~by segment was:~~

As of September 30,
2022 As of December 31, 2021
(in millions)
Latin America $ 680 $ 674
AMEA 3,067 3,365
Europe 7,542 7,830
North America 11,098 10,109
Goodwill $ 22,387 $ 21,978
Changes in goodwill consisted of:


	Latin America		AMEA		Europe		North America		Total
January 1, 2022	$	674	$	3,365	$	7,830	$	10,109	$	21,978
Currency	41		(233)		(550)		(15)		(757)
Acquisitions (1)	714		—		795		1,020		2,529
Held for Sale (1)	—		—		(66)		(226)		(292)
Divestitures	(8)		—		—		—		(8)
Balance at December 31, 2022	$	1,421	$	3,132	$	8,009	$	10,888	$	23,450
Currency	95		(18)		73		4		154


Balance at March 31, 2023	$	1,516	$	3,114	$	8,082	$	10,892	$	23,604

(1)Refer to Note 2, Acquisitions and Divestitures for more information.

Intangible Assets

Intangible assets consisted of the following:

As of September 30,
2022 As of December 31, 2021
(in millions)
Indefinite-life intangible assets $ 18,223 $ 17,299
Definite-life intangible assets 3,051 2,991
21,274 20,290
Accumulated amortization (1,961) (1,999)
Intangible assets, net $ 19,313 $ 18,291


	As of March 31, 2023						As of December 31, 2022
	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Definite-life intangible assets	$	3,389	$	(2,110)	$	1,279	$	3,354	$	(2,057)	$	1,297
Indefinite-life intangible assets (1)	18,531		—		18,531		18,413		—		18,413
Total	$	21,920	$	(2,110)	$	19,810	$	21,767	$	(2,057)	$	19,710

(1)In 2022, we recorded $101 million of intangible asset impairment charges related to two biscuit brands in AMEA segment, of which $78 million was recorded in the first quarter and $23 million was recorded 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 ~~brands,~~trademarks, customer-related intangibles, process technology, licenses and non-compete agreements.

Amortization expense for intangible assets was $32 million for the three months and $96 million for the nine months ended September 30, 2022 and $32 million for the three months and $102 million for the nine months ended September 30, 2021. For the next five years, we currently estimate annual amortization expense of approximately $130 million in 2022-2024, approximately $110 million in 2025 and approximately $75 million in 2026 (reflecting September 30, 2022 exchange rates).

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~~Changes in goodwill and~~Amortization expense for intangible assets ~~consisted of:~~

Goodwill Intangible
Assets, at cost
(in millions)
Balance at January 1, 2022 $ 21,978 $ 20,290
Currency (1,391) (1,301)
Divestiture (8) —
Acquisitions 1,808 2,386
Asset impairments — (101)
Balance at September 30, 2022 $ 22,387 $ 21,274
was $39 million for the three months ended March 31, 2023 and $32 million for the three months ended March 31, 2022. For the next five years, we currently estimate annual amortization expense of approximately $150 million in 2023-2025, approximately $95 million in 2026 and approximately $90 million in 2027 (reflecting March 31, 2023 exchange rates).

~~Changes to goodwill~~Impairment Assessment

We test our reporting units and ~~intangibles were:~~

•~~Acquisitions~~ ~~- In connection with our 2022 acquisitions, we recorded preliminary purchase price allocations of~~ ~~$1 billion to goodwill and $1.7 billion~~ ~~to intangible assets~~brands for ~~Clif Bar and $791 million to goodwill and $734 million to intangible assets for Chipita. See Note 2,~~ ~~Acquisitions and Divestitures, for additional information.~~

•~~Asset impairment~~ ~~- As further described below, we recorded a $78 million and $23 million intangible asset~~ impairment during the first and third quarters of 2022, respectively, in Asia, Middle East and Africa ("AMEA") due to lower than expected growth and profitability of two local biscuit brands sold in select markets in AMEA and Europe.

~~During the third quarter of 2022, we performed our annual impairment assessment test for goodwill and indefinite-life intangible assets~~annually as of July 1, ~~2022.~~

Our 2022 annual testing of goodwill resulted in no impairments as each reporting unit had sufficient fair value in excess of its carrying value. As part of our goodwill quantitative annual impairment testing, we compare a reporting unit's estimated fair value with its carrying value. If the carrying value of a reporting unit's net assets exceeds its fair value, we would record an impairment based on the difference between the carrying value and fair value of the reporting unit. We estimate a reporting unit's fair value using a discounted cash flow methodor more frequently if events or circumstances indicate it is more likely than not that incorporates planned growth rates, market-based discount rates and estimates of residual value. This year, for our Europe and North America reporting units, we used a market based, weighted-average cost of capital of 6.8% to discount the projected cash flows of those operations. For our Latin America and AMEA reporting units, we used a risk-rated discount rate of 9.8%. Estimating the fair value of individual reporting units requires us to make assumptions and estimates regarding our future plans and industry and economic conditions based on available information. Given the uncertainty of the global economic environment, those estimates could be significantly different than future performance. While all reporting units passed our annual impairment testing, if planned business performance expectations are not met or specific valuation factors outside of our control, such as discount rates, change significantly, then the estimated fair values of a reporting unit or ~~reporting units might decline and lead to a~~brand is less than its carrying amount.During the first quarter of 2023, we evaluated our goodwill impairment and intangible asset impairment risk through an assessment of potential triggering events. We considered qualitative and quantitative information in ~~the future.~~our assessment. We concluded there were no impairment indicators.

During our 2022 annual ~~testing of~~ indefinite-life intangible assets, we recorded a $23 million impairment charge in the third quarter of 2022 related to one brand. The impairment arose due to lower than expected growth and profitability in a local biscuit brand in AMEA. The impairment charge was calculated as the excess of the carrying value over the estimated fair value of the intangible assets on a global basis and were recorded within asset ~~impairment and exit costs. During our annual~~ testing, we use several accepted valuation methods, including relief from royalty, excess earnings and excess margin, that utilize estimates of future sales, earnings growth rates, royalty rates and discount rates in determining a brand's global fair value. We identified eight brands ~~including the one brand impaired during the third quarter of 2022,~~ that each had a fair value in excess of book value of 10% or less. The aggregate book value of the eight brands was ~~$1.4~~$1.6 billion as of ~~September 30, 2022.~~March 31, 2023. We ~~continue~~believe our current plans for each of these brands will allow them to ~~monitor our~~not be impaired, but if the brand ~~performance, particularly in light of the significant global economic uncertainties and related impacts to our business. If a brand's~~ earnings expectations ~~including the timing of the expected recovery from the war and pandemic,~~ 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 interim periods,~~

Note 6. Investments

Marketable Securities

On March 2, 2023, we ~~evaluate~~sold approximately 30 million shares of Keurig Dr Pepper Inc. (Nasdaq: "KDP"), which reduced our ~~goodwill~~ownership interest by 2.1%, from 5.3% to 3.2% of the total outstanding shares. We received approximately $1.0 billion in proceeds and ~~intangible asset impairment risk through an assessment~~recorded a pre-tax gain of ~~potential triggering events. During~~$493 million (or $366 million after tax) on this sale during the first quarter of ~~2022,~~2023. This reduction in ownership, to below 5% of the outstanding shares of KDP, 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 ~~determined a local biscuit brand~~no longer have significant influence over KDP. These marketable securities are measured at fair value based on quoted prices in ~~AMEA was impaired.~~active markets for identical assets (Level 1). On March 2, 2023, the date we changed from equity method accounting to marketable securities accounting for this investment, we recorded unrealized gains for marketable securities of $755 million (or $562 million after tax). We recorded an additional unrealized gain of $32 million (or $24 million after tax) during the first quarter, for a ~~$78~~total unrealized gain of $787 million ~~impairment charge for~~(or $586 million after tax) during the ~~brand within asset impairment and exit costs based on~~first quarter of 2023. We reported marketable securities of $1.6 billion as of March 31, 2023 in other current assets in the ~~excess carrying value over its estimated fair value.~~Company's Condensed Consolidated Balance Sheet.

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~~Note 6.~~ Equity Method Investments

Equity method investments consist of our investments in entities in which we maintain an equity ownership interest and apply the equity method of accounting due to our ability to exert significant influence over decisions relating to their operating and financial affairs. Revenue and expenses of our equity method investees are not consolidated into our financial statements; rather, our proportionate share of the earnings of each investee is reflected as equity method investment net earnings. The carrying values of our equity method investments are also impacted by our proportionate share of items impacting the investee's accumulated other comprehensive income or losses and other items, such as our share of investee dividends.

Our equity method investments include, but are not limited to, our ownership interests in JDE Peet's (Euronext Amsterdam: "JDEP"~~), Keurig Dr Pepper Inc. (Nasdaq: "KDP"~~), 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 ~~September 30, 2022,~~March 31, 2023, we owned ~~19.8%, 5.3%~~19.7%, 50.0% and 49.0%, respectively, of these companies' outstanding shares. We continue to have board representation with two directors on the 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 ~~$4.5~~$3.4 billion as of ~~September 30, 2022~~March 31, 2023 and ~~$5.3~~$4.9 billion as of December 31, ~~2021.~~2022. The investment balance as of December 31, 2022 is inclusive of our investment in KDP. We recorded equity earnings of ~~$85~~$35 million and cash dividends of $102 million in the first quarter of 2023 and equity earnings of $117 million and cash dividends of $48 million in the third quarter of 2022 and equity earnings of $105 million and cash dividends of $64 million in the third quarter of 2021. We recorded equity earnings of $300 million and cash dividends of $169$107 million in the first ~~nine months~~quarter of ~~2022 and equity earnings of $290 million and cash dividends of $158 million in the first nine months of 2021.~~2022.

Based on the quoted closing prices as of ~~September 30, 2022,~~March 31, 2023, the ~~combined~~ fair value of our publicly-traded ~~investments~~investment in JDEP ~~and KDP~~ was ~~$5.5~~$2.8 billion, and ~~for each investment, its fair value exceeded its carrying value.~~there was no other than temporary impairment identified.

~~JDE Peet’s Transactions:~~

On May 8, 2022, we sold approximately 18.6 million of our JDE Peet’s shares back to JDE Peet’s, which reduced our ownership interest by approximately 3%. We received €500 million ($529 million) of proceeds and recorded a loss of €8 million ($8 million) on this sale during the second quarter of 2022. As we will continue to have significant influence, we will continue to account for our investment in JDE Peet's under the equity method, resulting in recognizing our share of their earnings within our earnings and our share of their dividends within our cash flows. We will continue to have board representation with two directors on the JDE Peet's Board of Directors and we retained certain additional governance rights.

~~On September 20,~~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 JDE Peet’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 JDE Peet's shares, this would represent approximately 8.5 million shares or approximately 9% of our equity interest in JDE Peet's as of ~~September 30, 2022.~~March 31, 2023. Refer to Note 9, Financial Instruments, for further details on this transaction.

~~Keurig Dr Pepper Transactions:~~

On August 2, 2021, we sold approximately 14.7 million shares of KDP, which reduced our ownership interest by 1% of the total outstanding shares. We received $500 million of proceeds and recorded a pre-tax gain of $248 million (or $189 million after-tax) during the third quarter of 2021. As we continue to have significant influence, we continue to account for our investment in KDP under the equity method, resulting in recognizing our share of their earnings within our earnings and our share of their dividends within our cash flows. We continue to have board representation with one director on the KDP Board of Directors and we retained certain additional governance rights.

On June 7, 2021, we participated in a secondary offering of KDP shares and sold approximately 28 million shares, which reduced our ownership interest by 2% of the total outstanding shares. We received $997 million of proceeds and recorded a pre-tax gain of $520 million (or $392 million after-tax) during the second quarter of 2021.

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On March 30, 2023, we issued options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares. These options are exercisable at their maturities which are between July 3, 2023 and September 29, 2023, with strike prices ranging from €26.10 to €28.71 per share. In addition, on April 3, 2023, we sold approximately 7.7 million shares of JDEP and received cash proceeds of €199 million. This reduced our ownership interest by 1.6%, from 19.7% to 18.1% of the total outstanding shares. If all options issued on March 30, 2023 are exercised, our ownership interest will be reduced by an additional 1.6%. As we continue to have significant influence, we will continue to account for our investment in JDEP under the equity method.

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. 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 ~~$5.1~~$5.2 billion related to the Simplify to Grow Program. We expect to incur the remainder of the program charges by year-end 2023.

Restructuring Costs:

The Simplify to Grow Program liability activity for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 was:


		Severance and related costs		Asset Write-downs (1)		Total			Severance and related costs		Asset Write-downs and Other (1)		Total
		(in millions)							(in millions)
Liability balance, January 1, 2022		$	211	$	—	$	211
Liability balance, January 1, 2023								Liability balance, January 1, 2023	$	164	$	—	$	164
Charges (2)	Charges (2)	11		(3)		8		Charges (2)	29		1		30
Cash spent (3)	Cash spent (3)	(45)				(45)		Cash spent (3)	(18)		—		(18)
Non-cash settlements/adjustments (4)	Non-cash settlements/adjustments (4)	(2)		3		1		Non-cash settlements/adjustments (4)	—		(1)		(1)
Currency	Currency	(18)		—		(18)		Currency	2		—		2
Liability balance, September 30, 2022 (5)		$	157	$	—	$	157
Liability balance, March 31, 2023 (5)								Liability balance, March 31, 2023 (5)	$	177	$	—	$	177

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

(2)We recorded ~~a $10 million gain in the third quarter of 2022 due to the sale of assets included in the restructuring program as well as~~ restructuring charges of ~~$3 million, and restructuring charges of $8~~$30 million in the first ~~nine months~~quarter of ~~2022. We recorded restructuring charges of $62 million in the third quarter~~2023 and ~~$250~~$11 million in the first ~~nine months~~quarter of ~~2021. This activity is recorded~~2022 within asset impairment and exit costs and benefit plan non-service income.

(3)We spent ~~$12 million in the third quarter of 2022 and $65 million in the third quarter of 2021 and $45~~$18 million in the first ~~nine months~~quarter of ~~2022~~2023 and ~~$129~~$17 million in the first ~~nine months~~quarter of ~~2021~~2022 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 ~~gain~~charge of ~~$10 million in the third quarter and~~ $1 million in the first ~~nine months~~quarter of ~~2022~~2023 and a charge of ~~$54 million in the third quarter and of $170~~$2 million in the first ~~nine months~~quarter of ~~2021.~~2022.

(5)At ~~September 30, 2022, $106~~March 31, 2023, $135 million of our net restructuring liability was recorded within other current liabilities and ~~$51~~$42 million was recorded within other long-term liabilities.

Implementation ~~Costs:~~

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 more 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 ~~$23~~$5 million in

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the ~~third~~first quarter of ~~2022~~2023 and ~~$65 million in the third quarter of 2021 and $62~~$20 million in the first ~~nine months~~quarter of ~~2022 and $132 million in the first nine months of 2021.~~2022. We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses.

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Restructuring and Implementation ~~Costs:~~Costs

During the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and March 31, 2022, ~~and September 30, 2021,~~ 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		AMEA		Europe		North America		Corporate		Total			Latin America		AMEA		Europe		North America		Corporate		Total
		(in millions)													(in millions)
For the Three Months Ended September 30, 2022
For the Three Months Ended March 31, 2023														For the Three Months Ended March 31, 2023
Restructuring Costs	Restructuring Costs	$	(2)	$	1	$	3	$	(8)	$	(1)	$	(7)	Restructuring Costs	$	—	$	1	$	30	$	(1)	$	—	$	30
Implementation Costs	Implementation Costs	1		—		5		8		9		23		Implementation Costs	—		—		—		—		5		5
Total	Total	$	(1)	$	1	$	8	$	—	$	8	$	16	Total	$	—	$	1	$	30	$	(1)	$	5	$	35
For the Three Months Ended September 30, 2021
Restructuring Costs		$	1	$	1	$	2	$	57	$	1	$	62
Implementation Costs		—		2		6		51		6		65
Total		$	1	$	3	$	8	$	108	$	7	$	127
For the Nine Months Ended September 30, 2022
Restructuring Costs		$	(5)	$	3	$	5	$	4	$	1	$	8
Implementation Costs		5		4		18		24		11		62
Total		$	—	$	7	$	23	$	28	$	12	$	70
For the Nine Months Ended September 30, 2021
For the Three Months Ended March 31, 2022														For the Three Months Ended March 31, 2022
Restructuring Costs	Restructuring Costs	$	4	$	(18)	$	7	$	250	$	7	$	250	Restructuring Costs	$	(1)	$	2	$	2	$	8	$	—	$	11
Implementation Costs	Implementation Costs	7		7		27		78		13		132		Implementation Costs	1		1		5		7		6		20
Total	Total	$	11	$	(11)	$	34	$	328	$	20	$	382	Total	$	—	$	3	$	7	$	15	$	6	$	31
Total Project (Inception to Date)	Total Project (Inception to Date)													Total Project (Inception to Date)
Restructuring Costs	Restructuring Costs	$	549	$	544	$	1,152	$	649	$	150	$	3,044	Restructuring Costs	$	548	$	555	$	1,193	$	656	$	150	$	3,102
Implementation Costs	Implementation Costs	301		243		562		577		367		2,050		Implementation Costs	303		245		569		590		373		2,080
Total	Total	$	850	$	787	$	1,714	$	1,226	$	517	$	5,094	Total	$	851	$	800	$	1,762	$	1,246	$	523	$	5,182

Note 8. Debt and Borrowing Arrangements

Short-Term ~~Borrowings:~~Borrowings

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


		As of September 30, 2022				As of December 31, 2021					As of March 31, 2023				As of December 31, 2022
		Amount Outstanding		Weighted- Average Rate		Amount Outstanding		Weighted- Average Rate			Amount Outstanding		Weighted- Average Rate		Amount Outstanding		Weighted- Average Rate
		(in millions, except percentages)									(in millions, except percentages)
Commercial paper	Commercial paper	$	1,696	3.3	%	$	192	0.2	%	Commercial paper	$	2,350	4.8	%	$	2,209	4.7	%
Bank loans	Bank loans	57		10.6	%	24		8.6	%	Bank loans	111		9.5	%	90		9.1	%
Total short-term borrowings	Total short-term borrowings	$	1,753			$	216			Total short-term borrowings	$	2,461			$	2,299

Our uncommitted credit lines and committed credit lines available as of March 31, 2023 and December 31, 2022 include:


	As of March 31, 2023				As of December 31, 2022
	Facility Amount		Borrowed Amount		Facility Amount		Borrowed Amount
	(in millions)
Uncommitted credit facilities	$	1,306	$	111	$	1,335	$	90
Credit facility expiry (1):
February 22, 2023	—		—		2,500		—
March 11, 2023	—		—		2,000		—
February 21, 2024	1,500		—		—		—
July 29, 2025 (2)	2,000		1,000		2,000		2,000
February 23, 2027	4,500		—		4,500		—

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~~Our uncommitted credit lines and committed credit lines available as of September 30, 2022 and December 31, 2021 include:~~

As of September 30, 2022 As of December 31, 2021
Facility Amount Borrowed Amount Facility Amount Borrowed Amount
(in millions)
Uncommitted credit facilities $ 1,276 $ 57 $ 1,367 $ 24
Credit facility expiry (1):
February 23, 2022 — — 2,500 —
February 22, 2023 2,500 — — —
March 11, 2023 (3)
2,000 — — —
February 27, 2024 — — 4,500 —
July 29, 2025 (2)
2,000 2,000 — —
February 23, 2027 4,500 — — —

(1)We maintain a multi-year senior unsecured revolving credit facility for general corporate purposes, including working capital needs, and to support our commercial paper program. The revolving credit agreement includes 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 ~~September 30, 2022,~~March 31, 2023, we complied with this covenant as our shareholders' equity, as defined by the covenant, was ~~$37.9~~$39.0 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.

(2)On March 31, 2022, we entered into a supplemental term loan credit facility that can be utilized for general corporate purposes, including acquisitions. Under this agreement, we may draw up to a total of $2.0 billion in term loans from the facility. On July 29, 2022, we drew down $2.0 billion in term loans, due July 29, 2025, bearing interest at a variable annual rate based on SOFR plus an applicable margin. On March 3, 2023, we repaid $1.0 billion in term loans. Subsequently on April 3, 2023, we repaid $0.3 billion.

~~(3)~~

On ~~July 11, 2022,~~April 6, 2023, we entered into ~~a supplemental term loan~~an additional revolving credit ~~facility~~agreement that can be utilized for general corporate purposes ~~including acquisitions.~~and to support our commercial paper program. Under this agreement, we may draw up to a total of $2.0 billion ~~in term loans~~ from the facility. ~~The maturity dates of any loans drawn under this facility~~This agreement will ~~be eighteen months after the funding date of the applicable loan(s).~~terminate on December 29, 2023.

Long-Term ~~Debt:~~Debt

~~Tender Offers:~~

OnAs of March ~~18, 2022, we completed a tender offer in cash and redeemed long term U.S. dollar denominated notes for~~31, 2023, the ~~following amounts (in millions):~~

Interest Rate Redemption Date Maturity Date Amount Redeemed USD Equivalent
3.625% March 2022 February 2026 $130 $130
4.125% March 2022 May 2028 $211 $211
2.750% March 2022 April 2030 $500 $500
6.500% March 2022 November 2031 $17 $17
7.000% March 2022 August 2037 $10 $10
6.875% March 2022 February 2038 $21 $21
6.875% March 2022 January 2039 $8 $8
6.500% March 2022 February 2040 $36 $36
4.625% March 2022 May 2048 $54 $54

~~We recorded a $129 million loss on debt extinguishment and related expenses within interest and other expense,~~Company reclassified the net ~~consisting of $38 million paid in excess of~~ carrying value of ~~the~~ debt ~~and~~of $800 million due within one year from ~~recognizing unamortized discounts and deferred financing costs in earnings and $91 million from recognizing unamortized forward starting swap losses in earnings at the time~~long-term debt to current portion of ~~the debt extinguishment. The cash payments related to the debt extinguishment were classified as cash outflows from financing activities in the consolidated statement of cash flows.~~

~~Redemptions:~~

~~On March 18, 2022, we completed a redemption of long term U.S. dollar denominated notes for the following amounts (in millions):~~

~~Table of Contents~~

Interest Rate Redemption Date Maturity Date Amount Redeemed USD Equivalent
0.625% March 2022 July 2022 $1,000 $1,000

~~Debt Repayments~~

~~During the nine months ended September 30, 2022, we repaid the following notes (in millions):~~

Interest Rate Maturity Date Amount USD Equivalent
Various
Various(1)
€381 $431
2.125%
September 2022(2)
$500 $500
0.650% July 2022 Fr.150 $156

(1) On January 3, 2022, we closed on our acquisition of Chipita and assumed and entirely paid down €0.4 billion ($0.4 billion) of Chipita's debt during the nine months ended September 30, 2022.

~~(2) Repaid by Mondelez International Holdings Netherlands B.V. ("MIHN"), a wholly owned Dutch subsidiary of Mondelez International, Inc.~~

~~Issuances:~~

~~During the nine months ended September 30, 2022, we issued the following notes (in millions):~~

Issuance Date Interest Rate Maturity Date
Gross Proceeds (1)
Gross Proceeds USD Equivalent
September 2022(2)
4.250% September 2025 $500 $500
March 2022 2.125% March 2024 $500 $500
March 2022 2.625% March 2027 $750 $750
March 2022 3.000% March 2032 $750 $750

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

~~(2) Issued by Mondelez International Holdings Netherlands B.V. ("MIHN"), a wholly owned Dutch subsidiary of Mondelez International, Inc.~~long-term debt.

Fair Value of Our ~~Debt:~~Debt

The fair value of our short-term borrowings ~~at September 30, 2022 and December 31, 2021~~ reflects current market interest rates and approximates the amounts we have recorded on our consolidated balance sheets. The fair value of our term loans was determined using quoted prices for similar instruments in markets that are not active (Level 2 valuation data) 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 September 30, 2022 As of December 31, 2021
(in millions)
Fair Value $ 18,824 $ 20,249
Carrying Value $ 21,664 $ 19,512


	As of March 31, 2023		As of December 31, 2022
	(in millions)
Fair Value	$	19,782	$	20,217
Carrying Value	$	22,202	$	22,933

Interest and Other Expense, ~~net:~~net

Interest and other expense, net consisted of:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
		(in millions)									(in millions)
Interest expense, debt	Interest expense, debt	$	114	$	87	$	294	$	275	Interest expense, debt	$	153	$	91
Loss on debt extinguishment and related expenses	Loss on debt extinguishment and related expenses	—		—		129		137		Loss on debt extinguishment and related expenses	—		129
Other expense/(income), net		(43)		(5)		(86)		(54)
Other (income), net										Other (income), net	(58)		(52)
Interest and other expense, net	Interest and other expense, net	$	71	$	82	$	337	$	358	Interest and other expense, net	$	95	$	168

Other ~~expense/(income)~~income, net includes amounts excluded from hedge effectiveness related to our net investment hedge derivative ~~contracts and early settlement of forecasted currency derivative transactions due to changes in related future cash flows.~~contracts. Refer to Note 9, Financial Instruments.

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Note 9. Financial Instruments

Fair Value of Derivative ~~Instruments:~~Instruments

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


		As of September 30, 2022				As of December 31, 2021					As of March 31, 2023				As of December 31, 2022
		Asset Derivatives		Liability Derivatives		Asset Derivatives		Liability Derivatives			Asset Derivatives		Liability Derivatives		Asset Derivatives		Liability Derivatives
		(in millions)									(in millions)
Derivatives designated as accounting hedges:	Derivatives designated as accounting hedges:									Derivatives designated as accounting hedges:
Currency exchange contracts		$	5	$	13	$	—	$	—
Interest rate contracts	Interest rate contracts	173		2		27		17		Interest rate contracts	$	123	39		$	132	35
Net investment hedge derivative contracts (1)	Net investment hedge derivative contracts (1)	581		14		117		45		Net investment hedge derivative contracts (1)	225		242		265		241
		$	759	$	29	$	144	$	62		$	348	$	281	$	397	$	276
Derivatives not designated as accounting hedges:	Derivatives not designated as accounting hedges:									Derivatives not designated as accounting hedges:
Currency exchange contracts	Currency exchange contracts	$	295	$	155	$	156	$	40	Currency exchange contracts	$	213	$	126	$	185	$	103
Commodity contracts	Commodity contracts	224		214		387		137		Commodity contracts	346		332		200		247
Interest rate contracts	Interest rate contracts	6		—		—		—		Interest rate contracts	6		2		8		—
Equity method investment contracts (2)	Equity method investment contracts (2)	—		6		—		3		Equity method investment contracts (2)	—		1		—		3
		$	525	$	375	$	543	$	180		$	565	$	461	$	393	$	353
Total fair value	Total fair value	$	1,284	$	404	$	687	$	242	Total fair value	$	913	$	742	$	790	$	629

(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 two types of derivatives: (a) options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares that are exercisable at maturity over the third quarter of 2023 with strike prices ranging between €26.10 and €28.71 per share and (b) the bifurcated embedded derivative option that was a component of the September 20, 2021 €300 million exchangeable bonds issuance. Refer to Note ~~6, Equity Method Investments~~8, Debt and Borrowing Arrangements.

Derivatives designated as accounting hedges include cash flow and net investment hedge derivative contracts. Our currency exchange, commodity derivative and equity method investment contracts are economic hedges that are not designated as accounting hedges. We record derivative assets and liabilities on a gross basis on our condensed consolidated balance sheets. The fair value of our asset derivatives is recorded within other current assets and other assets and the fair value of our liability derivatives is recorded within other current liabilities and other liabilities.

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


		As of September 30, 2022									As of March 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)			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)									(in millions)
Currency exchange contracts	Currency exchange contracts	$	132	$	—	$	132	$	—	Currency exchange contracts	$	87	$	—	$	87	$	—
Commodity contracts	Commodity contracts	10		(6)		16		—		Commodity contracts	14		(17)		31		—
Interest rate contracts	Interest rate contracts	177		—		177		—		Interest rate contracts	88		—		88		—
Net investment hedge contracts	Net investment hedge contracts	567		—		567		—		Net investment hedge contracts	(17)		—		(17)		—
Equity method investment contracts	Equity method investment contracts	(6)		—		(6)		—		Equity method investment contracts	(1)		—		(1)		—
Total derivatives	Total derivatives	$	880	$	(6)	$	886	$	—	Total derivatives	$	171	$	(17)	$	188	$	—

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		As of December 31, 2021									As of December 31, 2022
		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)			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)									(in millions)
Currency exchange contracts	Currency exchange contracts	$	116	$	—	$	116	$	—	Currency exchange contracts	$	82	$	—	$	82	$	—
Commodity contracts	Commodity contracts	251		161		90		—		Commodity contracts	(47)		(35)		(12)		—
Interest rate contracts	Interest rate contracts	10		—		10		—		Interest rate contracts	105		—		105		—
Net investment hedge contracts	Net investment hedge contracts	71		—		71		—		Net investment hedge contracts	24		—		24		—
Equity method investment contracts	Equity method investment contracts	(3)		—		(3)		—		Equity method investment contracts	(3)		—		(3)		—
Total derivatives	Total derivatives	$	445	$	161	$	284	$	—	Total derivatives	$	161	$	(35)	$	196	$	—

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 ratings, limiting the amount of exposure with each counterparty and monitoring the financial condition of our counterparties.

Derivative ~~Volume:~~Volume

The notional values of our hedging instruments were:


		Notional Amount					Notional Amount
		As of September 30, 2022		As of December 31, 2021			As of March 31, 2023		As of December 31, 2022
		(in millions)					(in millions)
Currency exchange contracts:	Currency exchange contracts:					Currency exchange contracts:
Intercompany loans and forecasted interest payments	Intercompany loans and forecasted interest payments	$	2,393	$	1,891	Intercompany loans and forecasted interest payments	$	2,504	$	2,085
Forecasted transactions	Forecasted transactions	6,141		4,831		Forecasted transactions	7,032		5,470
Commodity contracts	Commodity contracts	10,425		9,694		Commodity contracts	11,802		12,131
Interest rate contracts	Interest rate contracts	3,850		1,850		Interest rate contracts	4,304		4,147
Net investment hedges:	Net investment hedges:					Net investment hedges:
Net investment hedge derivative contracts	Net investment hedge derivative contracts	6,533		3,915		Net investment hedge derivative contracts	7,589		7,319
Non-U.S. dollar debt designated as net investment hedges	Non-U.S. dollar debt designated as net investment hedges					Non-U.S. dollar debt designated as net investment hedges
Euro notes	Euro notes	3,122		3,622		Euro notes	3,453		3,410
British pound sterling notes		294		356
Swiss franc notes	Swiss franc notes	598		811		Swiss franc notes	645		638
Canadian dollar notes	Canadian dollar notes	434		475		Canadian dollar notes	444		443

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Cash Flow ~~Hedges:~~Hedges

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

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021
(in millions)
Accumulated (loss)/gain at beginning of period $ (88) $ (142) $ (148) $ (161)
Transfer of realized losses/(gains) in fair value
to earnings (122) (52) (193) (139)
Unrealized (loss)/gain in fair value 127 45 258 151
Accumulated (loss)/gain at end of period $ (83) $ (149) $ (83) $ (149)

. Refer to Note 13,

~~After-tax gains/(losses) reclassified~~Reclassifications from ~~accumulated other comprehensive earnings/(losses) to net earnings were:~~

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021
(in millions)
Currency exchange contracts –
forecasted transactions $ (4) $ — $ (8) $ —
Interest rate contracts 126 52 201 139
Total $ 122 $ 52 $ 193 $ 139

Accumulated Other Comprehensive Income

~~After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were:~~

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021
(in millions)
Currency exchange contracts –
forecasted transactions $ 4 $ (6) $ 8 $ —
Interest rate contracts 123 51 250 151
Total $ 127 $ 45 $ 258 $ 151

~~Cash flow hedge ineffectiveness was not material~~ for ~~all periods presented.~~

~~We record pre-tax (i) gains or losses reclassified from accumulated other comprehensive earnings/(losses) into earnings, (ii) gains or losses~~further information on ~~ineffectiveness and (iii) gains or losses on amounts excluded from effectiveness testing in interest and other expense, net for interest rate contracts.~~current period activity.

Based on current market conditions, we would expect to transfer losses of ~~$13~~$8 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months.

Cash Flow Hedge ~~Coverage:~~Coverage

As of ~~September 30, 2022,~~March 31, 2023, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 3 years, 115 months.

Hedges of Net Investments in International ~~Operations:~~

Operations

Net investment hedge ("NIH") derivative ~~contracts:~~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 ~~September 30, 2022~~March 31, 2023 was ~~$6.5~~$7.6 billion.

~~Table of Contents~~

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

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021
(in millions)
After-tax gain/(loss) on NIH contracts(1)
$ 440 $ 50 $ 788 $ 73


	For the Three Months Ended March 31,
	2023		2022
	(in millions)
After-tax (loss)/gain on NIH contracts(1)	$	(5)	$	41

(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
September 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021
(in millions)
Amounts excluded from the assessment of
hedge effectiveness(1)
$ 32 $ 19 $ 84 $ 58


	For the Three Months Ended March 31,
	2023		2022
	(in millions)
Amounts excluded from the assessment of hedge effectiveness(1)	$	36	$	22

(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.

Non-U.S. dollar debt designated as net investment ~~hedges:~~hedges

After-tax gains/(losses) related to hedges of net investments in international operations ~~in the form of euro, British pound sterling, Swiss franc and Canadian dollar-denominated debt~~ were recorded within the cumulative translation adjustment section of other comprehensive income and were:


	For the Three Months Ended March 31,
	2023		2022
	(in millions)
Euro notes	$	(33)	$	74
British pound sterling notes	—		8
Swiss franc notes	(5)		6
Canadian notes	(1)		(4)

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021
(in millions)
Euro notes $ 165 $ 67 $ 381 $ 160
British pound sterling notes 20 7 47 4
Swiss franc notes 23 6 50 45
Canadian notes 24 9 31 (1)

Table of Contents

Economic ~~Hedges:~~Hedges

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


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,				Location of Gain/(Loss) Recognized in Earnings		For the Three Months Ended March 31,				Location of Gain/(Loss) Recognized in Earnings
		2022		2021		2022		2021				2023		2022
		(in millions)										(in millions)
Currency exchange contracts:	Currency exchange contracts:										Currency exchange contracts:
Intercompany loans and forecasted interest payments	Intercompany loans and forecasted interest payments	$	(1)	$	(5)	$	(5)	$	67	Interest and other expense, net	Intercompany loans and forecasted interest payments	$	22	$	(11)		Interest and other expense, net
Forecasted transactions	Forecasted transactions	(9)		29		98		41		Cost of sales	Forecasted transactions	2		(7)			Cost of sales
Forecasted transactions	Forecasted transactions	8		—		(23)		(2)		Interest and other expense, net	Forecasted transactions	5		21			Interest and other expense, net
Forecasted transactions	Forecasted transactions	(5)		(1)		(2)		—		Selling, general and administrative expenses	Forecasted transactions	(5)		2			Selling, general and administrative expenses
Commodity contracts	Commodity contracts	(31)		151		166		362		Cost of sales	Commodity contracts	(2)		237			Cost of sales
Equity method investment contracts	Equity method investment contracts	(3)		2		(3)		2		Gain on equity method investment transactions	Equity method investment contracts	2		—			Gain on equity method investment transactions
Total	Total	$	(41)	$	176	$	231	$	470		Total	$	24	$	242

In the first quarter of 2022, we had early settlements of forecasted currency exchange contracts comprised of $74 million in cost of sales, $5 million in selling, general and administrative expenses and $20 million in interest and other expense, net.

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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 September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
		(in millions)									(in millions)
Liability at beginning of period	Liability at beginning of period	$	173	$	221	$	159	$	56	Liability at beginning of period	$	642	$	159
Contingent consideration arising from acquisitions		440		—		440		145

Changes in fair value	Changes in fair value	—		(67)		16		(47)		Changes in fair value	17		6

Currency		—		—		(2)		—

Liability at end of period	Liability at end of period	$	613	$	154	$	613	$	154	Liability at end of period	$	659	$	165

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

As of September 30, 2022
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)
Clif Bar(1)
$ 455 $ — $ — 455
Other(2)
158 — — 158
Total contingent consideration $ 613 $ — $ — $ 613


	As of March 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)	$	465	$	—	$	—	$	465
Other (2)	194		—		—		194
Total contingent consideration	$	659	$	—	$	—	$	659


		As of December 31, 2021									As of December 31, 2022
		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)			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)									(in millions)
Clif Bar (1)										Clif Bar (1)	$	452	$	—	$	—	$	452
Other(2)	Other(2)	$	159	$	—	$	—	$	159	Other (2)	190		—		—		190
Total contingent consideration	Total contingent consideration	$	159	$	—	$	—	$	159	Total contingent consideration	$	642	$	—	$	—	$	642

(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. Refer to Note 2, Acquisitions and Divestitures for additional information.

(2)The other contingent consideration liabilities are recorded at fair value, with ~~$101~~$113 million and $102 million classified as other current liabilities ~~at September 30, 2022~~ and ~~$57~~$81 million and ~~$159~~$88 million classified as long term liabilities at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021.~~2022. 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. Refer to Note 2, Acquisitions and Divestitures for additional information.

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Note 10. Benefit Plans

Pension Plans

Components of Net Periodic Pension ~~Cost:~~Cost

Net periodic pension cost/(benefit) consisted of the following:


		U.S. Plans				Non-U.S. Plans					U.S. Plans				Non-U.S. Plans
		For the Three Months Ended September 30,				For the Three Months Ended September 30,					For the Three Months Ended March 31,				For the Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022		2023		2022
		(in millions)									(in millions)
Service cost	Service cost	$	1	$	1	$	22	$	29	Service cost	$	1	$	1	$	14	$	39
Interest cost	Interest cost	13		10		47		39		Interest cost	15		11		76		41
Expected return on plan assets	Expected return on plan assets	(21)		(18)		(92)		(106)		Expected return on plan assets	(25)		(18)		(102)		(93)
Amortization:	Amortization:									Amortization:
Net loss from experience differences	Net loss from experience differences	1		4		14		32		Net loss from experience differences	—		3		11		19
Prior service cost/(benefit)	Prior service cost/(benefit)	1		—		—		(2)		Prior service cost/(benefit)	1		—		—		(1)
Curtailment credit (1)		—		—		—		(3)

Settlement losses and other expenses	Settlement losses and other expenses	5		5		—		—		Settlement losses and other expenses	5		3		—		—
Net periodic pension cost/(benefit)		$	—	$	2	$	(9)	$	(11)
Net periodic pension (benefit)/cost										Net periodic pension (benefit)/cost	$	(3)	$	—	$	(1)	$	5

		U.S. Plans				Non-U.S. Plans
		For the Nine Months Ended September 30,				For the Nine Months Ended September 30,
		2022		2021		2022		2021
		(in millions)
Service cost		$	4	$	5	$	77	$	99
Interest cost		36		30		135		98
Expected return on plan assets		(57)		(54)		(279)		(319)
Amortization:
Net loss from experience differences		6		13		48		98
Prior service cost/(benefit)		1		—		(1)		(5)
Curtailment credit (1)		—		—		—		(17)
Settlement losses and other expenses		12		14		—		—
Net periodic pension cost/(benefit)		$	2	$	8	$	(20)	$	(46)

Employer Contributions

~~(1)~~During the third quarter of 2021, we terminated our Defined Benefit Pension Scheme in Nigeria. During the second quarter of 2021, we made a decision to freeze our Defined Benefit Pension Scheme in the United Kingdom. As a result, we recognized curtailment credits of $(3 million) for the three months ~~and $(17 million) for the nine months~~ ended September 30, 2021 recorded within benefit plan non-service income. In connection with the United Kingdom plan freeze, we also incurred incentive payment charges and other expenses of $2 million for the three months and $47 million for the nine months ended September 30, 2021 included in operating income.

~~Employer Contributions:~~

~~During the nine months ended September 30, 2022,~~March 31, 2023, we contributed $3$2 million to our U.S. pension plans and ~~$137~~$37 million to our non-U.S. pension plans. 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 ~~September 30, 2022,~~March 31, 2023, we plan to make further contributions of approximately ~~$46~~$4 million to our U.S. plans and $82 million to our non-U.S. plans for the remainder of ~~2022.~~2023. Our actual contributions may be different due to many factors, including changes in tax and other benefit laws, significant differences between expected and actual pension asset performance or interest rates.

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Multiemployer Pension ~~Plans:~~Plans

On July 11, 2019, we received an undiscounted withdrawal liability assessment ~~related to our complete withdrawal~~ from the Bakery and Confectionery Union and Industry International Pension Fund totaling $526 million requiring pro-rata monthly payments over 20 years. We began making monthly payments during the third quarter of 2019. In connection with the discounted long-term liability, we recorded accreted interest of $3 million ~~and $8 million~~ in the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and March 31, 2022, ~~and $2 million and $8 million in the three and nine months ended September 30, 2021~~ within interest and other expense, net. As of ~~September 30, 2022,~~March 31, 2023, the remaining discounted withdrawal liability was ~~$348~~$340 million, with $15 million recorded in other current liabilities and ~~$333~~$325 million recorded in long-term other liabilities.

Postretirement ~~Benefit Plans~~

~~Net periodic postretirement health care cost/(benefit) consisted of the following:~~

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021
(in millions)
Service cost $ 1 $ 1 $ 2 $ 3
Interest cost 2 2 6 6
Amortization:
Net loss from experience differences — 1 — 2
Prior service credit — — 1 —
Net periodic postretirement health care cost/(benefit) $ 3 $ 4 $ 9 $ 11

and Postemployment Benefit Plans

~~Net~~The net periodic postretirement cost was zero for the three months ended March 31, 2023 and $3 million for the three months ended March 31, 2022. The net periodic postemployment cost ~~consisted of~~was $1 million for the ~~following:~~three months ended March 31, 2023 and $1 million for the three months ended March 31, 2022.

For the Three Months Ended
September 30, For the Nine Months Ended
September 30,
2022 2021 2022 2021
(in millions)
Service cost $ 1 $ 2 $ 3 $ 5
Interest cost 1 1 2 2
Amortization of net gains (1) (2) (3) (3)
Net periodic postemployment cost $ 1 $ 1 $ 2 $ 4

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Note 11. Stock Plans

Stock ~~Options:~~Options

Stock option activity is reflected below:


		Shares Subject to Option	Weighted- Average Exercise or Grant Price Per Share	Average Remaining Contractual Term	Aggregate Intrinsic Value				Shares Subject to Option	Weighted- Average Exercise or Grant Price Per Share	Average Remaining Contractual Term	Aggregate Intrinsic Value
Balance at January 1, 2022		23,503,759	$42.65	5 years	$	556	million
Balance at January 1, 2023								Balance at January 1, 2023	20,490,250	$46.31	5 years	$	417	million
Annual grant to eligible employees	Annual grant to eligible employees	2,180,540	64.65					Annual grant to eligible employees	2,452,110	65.36
Additional options issued	Additional options issued	41,930	64.99					Additional options issued	3,310	66.25
Total options granted	Total options granted	2,222,470	64.66					Total options granted	2,455,420	65.36
Options exercised (1)	Options exercised (1)	(3,754,667)	36.04		$	111	million	Options exercised (1)	(1,453,616)	34.75		$	46	million
Options canceled	Options canceled	(435,613)	55.31					Options canceled	(109,897)	48.36
Balance at September 30, 2022		21,535,949	45.82	5 years	$	226	million
Balance at March 31, 2023								Balance at March 31, 2023	21,382,157	49.27	6 years	$	437	million

(1)Cash received from options exercised was ~~$22~~$49 million in the three months ~~and $123 million in the nine months~~ ended ~~September 30, 2022.~~March 31, 2023. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $3$8 million in the three months ~~and $17 million in the nine months~~ ended ~~September 30, 2022.~~March 31, 2023.

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Performance Share Units and Other Stock-Based ~~Awards:~~Awards

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


		Number of Shares	Grant Date	Weighted-Average Fair Value Per Share (3)	Weighted-Average Aggregate Fair Value (3)				Number of Shares	Grant Date	Weighted-Average Fair Value Per Share (4)	Weighted-Average Aggregate Fair Value (3)
Balance at January 1, 2022		4,668,046		$57.04
Balance at January 1, 2023								Balance at January 1, 2023	4,451,674		$60.12
Annual grant to eligible employees:	Annual grant to eligible employees:		Feb 24, 2022					Annual grant to eligible employees:		Mar 2, 2023
Performance share units	Performance share units	806,590		61.87				Performance share units	895,410		68.59
Deferred stock units	Deferred stock units	505,090		64.65				Deferred stock units	578,570		65.36
Additional shares granted (1)	Additional shares granted (1)	737,537	Various	60.42				Additional shares granted (1)	675,395	Various	65.13
Total shares granted	Total shares granted	2,049,217		62.03	$	127	million	Total shares granted	2,149,375		66.63	$	143	million
Vested (2)		(1,730,719)		55.36	$	96	million
Vested (2) (3)								Vested (2) (3)	(1,598,781)		63.07	$	101	million
Forfeited(2)	Forfeited(2)	(398,436)		60.66				Forfeited(2)	(91,430)		60.77
Balance at September 30, 2022		4,588,108		59.59
Balance at March 31, 2023								Balance at March 31, 2023	4,910,838		61.99

(1)Includes ~~performance share units~~PSUs and ~~deferred stock units.~~DSUs.

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

(3)The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled ~~less than $1~~$2 million in the three months ~~and $4 million in the nine months~~ ended ~~September 30, 2022.~~March 31, 2023.

~~(3)~~(4)The grant date fair value of ~~performance share units~~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. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided.

Share Repurchase ~~Program:~~Program

Between 2013 and 2020, our Board of Directors authorized the repurchase of a total of $23.7 billion of our Common Stock and extended the program through December 31, 2023. Prior to January 1, 2023, we had repurchased approximately $22.0 billion of Common Stock pursuant to this authorization. Our Board of Directors approved a new program authorizing the repurchase of up to $6.0 billion of our Common Stock through December 31, 2025. This authorization, effective January 1, 2023, replaces our current share repurchase program. Repurchases under the program are determined by management and are wholly discretionary. ~~Prior to January 1, 2022, we had repurchased approximately $20.0 billion of Common Stock pursuant to this authorization.~~

During the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, we repurchased approximately 296.2 million shares of Common Stock at an average cost of ~~$63.78~~$65.93 per share, or an aggregate cost of approximately ~~$1.8 billion,~~$407 million, all of which was paid during the period except for approximately ~~$20~~$8 million settled in ~~October 2022.~~April 2023. All share repurchases were funded

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through available cash and commercial paper issuances. As of ~~September 30, 2022,~~March 31, 2023, we have approximately ~~$1.8~~$5.6 billion in remaining share repurchase capacity.

Note 12. Commitments and Contingencies

Legal ~~Proceedings:~~Proceedings

We routinely are involved in various pending or threatened legal proceedings, claims, disputes, regulatory matters and governmental inquiries, inspections or investigations arising in the ordinary course of or incidental to our business, including those noted below in this section. We record provisions in the consolidated financial statements for pending legal matters when we determine that an unfavorable outcome is probable, and the amount of the loss can be reasonably estimated. For matters we have not provided for that are reasonably possible to result in an unfavorable outcome, management is unable to estimate the possible loss or range of loss or such amounts have been determined to be immaterial. At present we believe that the ultimate outcome of these legal proceedings and regulatory and governmental matters, individually and in the aggregate, will not materially harm our financial position, results of operations or cash flows. However, legal proceedings and regulatory and governmental matters are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial fines, civil or criminal penalties, and other expenditures. In addition, in matters for which conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways, precluding particular business practices or requiring other equitable remedies. An unfavorable outcome might result in a material adverse impact on our business, results of operations or financial position.

On April 1, 2015, the U.S. Commodity Futures Trading Commission ("CFTC") filed a complaint against Kraft Foods Group and Mondelēz Global LLC (“Mondelēz Global”) in the U.S. District Court for the Northern District of Illinois (the "District Court"), Eastern Division (the “CFTC action”) following its investigation of activities related to the trading of December 2011 wheat futures contracts that occurred prior to the spin-off of Kraft Foods Group. The

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complaint alleged that Kraft Foods Group and Mondelēz Global (1) manipulated or attempted to manipulate the wheat markets during the fall of 2011; (2) violated position limit levels for wheat futures; and (3) engaged in non-competitive trades by trading both sides of exchange-for-physical Chicago Board of Trade wheat contracts. The CFTC sought civil monetary penalties of either triple the monetary gain for each violation of the Commodity Exchange Act (the “Act”) or $1 million for each violation of Section 6(c)(1), 6(c)(3) or 9(a)(2) of the Act and $140,000 for each additional violation of the Act, plus post-judgment interest; an order of permanent injunction prohibiting Kraft Foods Group and Mondelēz Global from violating specified provisions of the Act; disgorgement of profits; and costs and fees. On May 13, 2022, the District Court approved a settlement agreement between the CFTC and Mondelēz Global. The terms of the settlement, which are available in the District Court’s docket, had an immaterial impact on our financial position, results of operations and cash flows and did not include an admission by Mondelēz Global. Several class action complaints also were filed against Kraft Foods Group and Mondelēz Global in the District Court by investors in wheat futures and options on behalf of themselves and others similarly situated. The complaints make similar allegations as those made in the CFTC action, and the plaintiffs are seeking monetary damages, interest and unjust enrichment; costs and fees; and injunctive, declaratory and other unspecified relief. In June 2015, these suits were consolidated in the United States District Court for the Northern District of Illinois as case number 15-cv-2937, Harry Ploss et al. v. Kraft Foods Group, Inc. and Mondelēz Global LLC. On January 3, 2020, the District Court granted plaintiffs' request to certify a class. It is not possible to predict the outcome of these matters; however, based on our Separation and Distribution Agreement with Kraft Foods Group dated as of September 27, 2012, we expect to bear any monetary penalties or other payments in connection with the class action. Although the CFTC action and the class action complaints involve the same alleged conduct, the resolution of the CFTC matter may not be dispositive as to the outcome of the class action.

InAs previously disclosed, in November 2019, the European Commission informed us that it initiated an investigation into our alleged infringement of European Union competition law through certain practices allegedly restricting cross-border trade within the European Economic Area. On January 28, 2021, the European Commission announced it ~~took~~had taken the next procedural step in its investigation and opened formal proceedings. We ~~are~~have been cooperating with the investigation and ~~are engaging~~discussions with the European Commission are progressing in an effort to reach a negotiated, proportionate resolution in this matter. As of March 31, 2023 and December 31, 2022, we have accrued (in accordance with U.S. GAAP) a liability of €300 million ($325 million as ~~its investigation proceeds.~~of March 31, 2023) within other current liabilities in the consolidated balance sheet as an estimate of the possible cost to resolve this matter. It is not possible to predict ~~how long the investigation~~if our ongoing discussions will ~~take~~result in a negotiated resolution, or result in a negotiated resolution in a higher amount, or when we will have clarity on the ultimate outcome of these discussions. If our discussions do not result in a negotiated resolution, we expect that the European Commission will pursue

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proceedings against the Company, including the imposition of a fine, and we would defend against any allegations made in such proceedings. There is a possibility that the final liability could be materially higher than the amount accrued. However, due to the inherent uncertainty of the discussions and possible outcomes, any possible loss or range of loss different from the amount accrued is not reasonably estimable at this ~~matter.~~time.

Third-Party ~~Guarantees:~~Guarantees

We enter into third-party guarantees primarily to cover long-term obligations of our vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures. At ~~September 30, 2022,~~March 31, 2023, we had no material third-party guarantees recorded on our condensed consolidated balance sheet.

Tax ~~Matters:~~Matters

We are a party to various tax matter proceedings incidental to our business. These proceedings are subject to inherent uncertainties, and unfavorable outcomes could subject us to additional tax liabilities and could materially adversely impact our business, results of operations or financial position.

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Note 13. 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 gains of ~~$103 million in the third quarter of 2022 and $26 million in the third quarter of 2021 and $143~~$30 million in the first ~~nine months~~quarter of ~~2022~~2023 and ~~$63~~$42 million in the first ~~nine months~~quarter of ~~2021.~~2022.


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
		(in millions)									(in millions)
Currency Translation Adjustments:	Currency Translation Adjustments:									Currency Translation Adjustments:
Balance at beginning of period	Balance at beginning of period	$	(9,431)	$	(8,627)	$	(9,097)	$	(8,655)	Balance at beginning of period	$	(9,808)	$	(9,097)
Currency translation adjustments	Currency translation adjustments	(607)		(407)		(940)		(376)		Currency translation adjustments	173		6

Tax (expense)/benefit	Tax (expense)/benefit	(60)		10		(76)		—		Tax (expense)/benefit	(22)		44
Other comprehensive earnings/(losses)	Other comprehensive earnings/(losses)	(667)		(397)		(1,016)		(376)		Other comprehensive earnings/(losses)	151		50
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests	Less: other comprehensive (earnings)/loss attributable to noncontrolling interests	12		5		27		12		Less: other comprehensive (earnings)/loss attributable to noncontrolling interests	(2)		4
Balance at end of period	Balance at end of period	(10,086)		(9,019)		(10,086)		(9,019)		Balance at end of period	(9,659)		(9,043)
Pension and Other Benefit Plans:	Pension and Other Benefit Plans:									Pension and Other Benefit Plans:
Balance at beginning of period	Balance at beginning of period	$	(1,119)	$	(1,803)	$	(1,379)	$	(1,874)	Balance at beginning of period	$	(1,105)	$	(1,379)
Net actuarial gain/(loss) arising during period	Net actuarial gain/(loss) arising during period	(36)		3		116		1		Net actuarial gain/(loss) arising during period	2		44
Tax (expense)/benefit on net actuarial gain/(loss)	Tax (expense)/benefit on net actuarial gain/(loss)	4		(1)		(23)		(1)		Tax (expense)/benefit on net actuarial gain/(loss)	—		—
Losses/(gains) reclassified into net earnings:	Losses/(gains) reclassified into net earnings:									Losses/(gains) reclassified into net earnings:
Amortization of experience losses and prior service costs ~~(2)~~(1)	Amortization of experience losses and prior service costs ~~(2)~~(1)	16		33		52		105		Amortization of experience losses and prior service costs ~~(2)~~(1)	8		20
Settlement losses and other expenses ~~(2)~~(1)	Settlement losses and other expenses ~~(2)~~(1)	5		5		12		14		Settlement losses and other expenses ~~(2)~~(1)	5		3
Curtailment credit (2)		—		(3)		—		(17)

Tax expense/(benefit) on reclassifications (3)	Tax expense/(benefit) on reclassifications (3)	(2)		(9)		(14)		(26)		Tax expense/(benefit) on reclassifications (3)	(3)		(6)
Currency impact	Currency impact	70		39		174		62		Currency impact	(18)		32
Other comprehensive earnings/(losses)	Other comprehensive earnings/(losses)	57		67		317		138		Other comprehensive earnings/(losses)	(6)		93
Balance at end of period	Balance at end of period	(1,062)		(1,736)		(1,062)		(1,736)		Balance at end of period	(1,111)		(1,286)
Derivative Cash Flow Hedges:	Derivative Cash Flow Hedges:									Derivative Cash Flow Hedges:
Balance at beginning of period	Balance at beginning of period	$	(88)	$	(142)	$	(148)	$	(161)	Balance at beginning of period	$	(34)	$	(148)
Net derivative gains/(losses)	Net derivative gains/(losses)	121		42		245		148		Net derivative gains/(losses)	(28)		26
Tax (expense)/benefit on net derivative gain/(loss)	Tax (expense)/benefit on net derivative gain/(loss)	—		1		—		—		Tax (expense)/benefit on net derivative gain/(loss)	(3)		(1)
Losses/(gains) reclassified into net earnings:	Losses/(gains) reclassified into net earnings:									Losses/(gains) reclassified into net earnings:
Currency exchange contracts(4)		1		—		6		—

Interest rate contracts ~~(4)~~(2)	Interest rate contracts ~~(4)~~(2)	(121)		(52)		(174)		(137)		Interest rate contracts ~~(4)~~(2)	18		48
Tax expense/(benefit) on reclassifications (3)	Tax expense/(benefit) on reclassifications (3)	(2)		—		(25)		(2)		Tax expense/(benefit) on reclassifications (3)	2		(23)
Currency impact	Currency impact	6		2		13		3		Currency impact	1		2
Other comprehensive earnings/(losses)	Other comprehensive earnings/(losses)	5		(7)		65		12		Other comprehensive earnings/(losses)	(10)		52
Balance at end of period	Balance at end of period	(83)		(149)		(83)		(149)		Balance at end of period	(44)		(96)
Accumulated other comprehensive income attributable to Mondelēz International:	Accumulated other comprehensive income attributable to Mondelēz International:									Accumulated other comprehensive income attributable to Mondelēz International:
Balance at beginning of period	Balance at beginning of period	$	(10,638)	$	(10,572)	$	(10,624)	$	(10,690)	Balance at beginning of period	$	(10,947)	$	(10,624)
Total other comprehensive earnings/(losses)	Total other comprehensive earnings/(losses)	(605)		(337)		(634)		(226)		Total other comprehensive earnings/(losses)	135		195
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests	Less: other comprehensive (earnings)/loss attributable to noncontrolling interests	12		5		27		12		Less: other comprehensive (earnings)/loss attributable to noncontrolling interests	(2)		4
Other comprehensive earnings/(losses) attributable to Mondelēz International	Other comprehensive earnings/(losses) attributable to Mondelēz International	(593)		(332)		(607)		(214)		Other comprehensive earnings/(losses) attributable to Mondelēz International	133		199
Balance at end of period	Balance at end of period	$	(11,231)	$	(10,904)	$	(11,231)	$	(10,904)	Balance at end of period	$	(10,814)	$	(10,425)

(1)These reclassified losses are included in net periodic benefit costs disclosed in Note 10, Benefit Plans.

(2)These ~~amounts include equity method investment transactions~~reclassified gains or losses are recorded within ~~gain on equity method investment transactions.~~interest and other expense, net.

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

~~(4)~~

~~These reclassified gains or losses are recorded within interest and other expense, net.~~

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Note 14. Income Taxes

As of the ~~third~~first quarter of ~~2022,~~2023, our estimated annual effective tax rate, which excludes discrete tax impacts, was ~~24.0%~~24.3%. This rate reflected the impact of unfavorable foreign provisions under U.S. tax laws partially offset by favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions. Our 2023 first quarter effective tax rate of 29.6% was high due to a $127 million net tax expense incurred in connection with the KDP share sale (the earnings are reported separately on our statement of earnings and thus not included in earnings before income taxes). Associated with the KDP share sale, we also recorded a $201 million net tax expense related to the change of accounting for our KDP investment from equity method investment accounting to accounting for equity interests with readily determinable fair values. Excluding these tax impacts as well as the associated pre-tax impacts, our effective tax rate for the three months ended March 31, 2023 of 23.0% was favorably impacted by discrete net tax benefits of $20 million, primarily driven by a $30 million net benefit from the release of liabilities for uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions.

As of the first quarter of 2022, our estimated annual effective tax rate, which excluded discrete tax impacts, was 24.8%. This rate reflected the impact of unfavorable foreign provisions under U.S. tax laws and our tax related to earnings from equity method investments (the earnings are reported separately on our statement of earnings and thus not included in earnings before income taxes), partially offset by favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions. The estimated annual effective tax rate also considers the impact of the establishment of a valuation allowance related to a deferred tax asset arising from the anticipated 2022 Ukraine loss as well as the expense related to the buyout of the Clif Bar ESOP that was recorded to third quarter earnings before income taxes with no associated income tax benefit, as any tax impacts are included in the tax purchase price.loss. Our ~~2022 third quarter~~ effective tax rate for the three months ended March 31, 2022 of ~~28.8% was high due to the Clif Bar ESOP expense. Excluding this impact, our third quarter effective tax rate of 19.9%~~21.9% was favorably impacted by discrete net tax benefits of $28 million. The discrete net tax benefit primarily consisted of a $43 million net benefit from the release of liabilities for uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions, partially offset by a $13 million expense from U.S. state tax law changes. Our effective tax rate for the nine months ended September 30, 2022 of 24.2% considers the unfavorable impacts of the Ukraine loss and the Clif Bar ESOP expense as well as favorable discrete net tax benefits of $92 million. The discrete net tax benefit primarily consisted of a $75 million net benefit from the release of liabilities for uncertain tax positions due to expirations of statutes of limitations and audit settlements in several jurisdictions and a $43 million net benefit from the Chipita acquisition, partially offset by $22 million expense from tax law changes in various jurisdictions.

As of the third quarter of 2021, our estimated annual effective tax rate, which excluded discrete tax impacts, was 23.0%. This rate reflected the impact of unfavorable foreign provisions under U.S. tax laws and our tax related to earnings from equity method investments (the earnings are reported separately on our statement of earnings and thus not included in earnings before income taxes), partially offset by favorable impacts from the mix of pre-tax income in various non-U.S. jurisdictions. Our 2021 third quarter effective tax rate of 27.4% was high due to a $59 million tax expense incurred in connection with the KDP share sale that occurred during the third quarter (the related gain is reported separately in our statement of earnings and thus not included in earnings before income taxes). Excluding this impact, our third quarter effective tax rate was 22.7%, including a discrete net tax expense of $11$62 million, primarily driven by the ~~change~~Chipita acquisition, which resulted in liabilities for uncertain tax positions in several jurisdictions. Our effective tax rate for the nine months ended September 30, 2021 of 29.5% was also high due to the $187 million net tax expense incurred in connection with the KDP share sales during the second and third quarters. Excluding this impact, our effective tax rate for the nine months ended September 30, 2021 was 23.7%, which was unfavorably impacted by discrete net tax expense of $26 million, primarily driven by $95 million net tax expense from the increase of our deferred tax liabilities resulting from enacted tax legislation (mainly in the United Kingdom), partially offset by a $45 million net benefit from the release of ~~liabilities~~a portion of the valuation allowance recorded against the deferred tax asset for ~~uncertain tax positions due to expirations~~the step-up of ~~statutes of limitations and audit settlements~~intangible assets in ~~several jurisdictions and a $27 million benefit from a U.S. amended tax return filed to reflect new guidance from the U.S. Treasury Department.~~Switzerland.

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Note 15. Earnings per Share

Basic and diluted earnings per share (“EPS”) were calculated as follows:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
		(in millions, except per share data)									(in millions, except per share data)
Net earnings	Net earnings	$	533	$	1,262	$	2,142	$	3,309	Net earnings	$	2,089	$	861
Noncontrolling interest earnings	Noncontrolling interest earnings	(1)		(4)		(8)		(12)		Noncontrolling interest earnings	(8)		(6)
Net earnings attributable to Mondelēz International	Net earnings attributable to Mondelēz International	$	532	$	1,258	$	2,134	$	3,297	Net earnings attributable to Mondelēz International	$	2,081	$	855
Weighted-average shares for basic EPS	Weighted-average shares for basic EPS	1,372		1,399		1,381		1,406		Weighted-average shares for basic EPS	1,366		1,389
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares	Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares	7		9		8		9		Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares	7		9
Weighted-average shares for diluted EPS	Weighted-average shares for diluted EPS	1,379		1,408		1,389		1,415		Weighted-average shares for diluted EPS	1,373		1,398
Basic earnings per share attributable to Mondelēz International	Basic earnings per share attributable to Mondelēz International	$	0.39	$	0.90	$	1.55	$	2.34	Basic earnings per share attributable to Mondelēz International	$	1.52	$	0.62
Diluted earnings per share attributable to Mondelēz International	Diluted earnings per share attributable to Mondelēz International	$	0.39	$	0.89	$	1.54	$	2.33	Diluted earnings per share attributable to Mondelēz International	$	1.52	$	0.61

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 3.3 million in the third quarter of 2022 and 2.7 million in the third quarter of 2021 and 2.9~~EPS, which are 2.2 million in the first ~~nine months~~quarter of ~~2022~~2023 and ~~3.0~~2.1 million in the first ~~nine months~~quarter of ~~2021.~~2022.

Note 16. Segment Reporting

We manufacture and market primarily snack food products, including chocolate, biscuits ~~chocolate,~~and baked snacks, as well as gum & candy, ~~and various~~ cheese & grocery ~~products, as well as~~and powdered ~~beverage products.~~beverages.

We manage our global business and report operating results through geographic units. We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise across our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions.

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Our operations and management structure are organized into four operating segments:

• Latin America

• AMEA

• Europe

• North America

We use segment operating income to evaluate segment performance and allocate resources. We believe it is appropriate to disclose this measure to help investors analyze segment performance and trends. Segment operating income excludes unrealized gains and losses on hedging activities (which are a component of cost of sales), general corporate expenses (which are a component of selling, general and administrative expenses), amortization of intangibles, gains and losses on divestitures and acquisition-related costs (which are a component of selling, general and administrative expenses) in all periods presented. We exclude these items from segment operating income in order to provide better transparency of our segment operating results. Furthermore, we centrally manage benefit plan non-service income and interest and other expense, net. Accordingly, we do not present these items by segment because they are excluded from the segment profitability measure that management reviews.

~~Table of Contents~~

Our segment net revenues and earnings were:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
		(in millions)									(in millions)
Net revenues:	Net revenues:									Net revenues:
Latin America	Latin America	$	913	$	751	$	2,615	$	2,089	Latin America	$	1,211	$	826
AMEA	AMEA	1,704		1,629		5,106		4,826		AMEA	1,939		1,867
Europe	Europe	2,649		2,714		8,210		8,035		Europe	3,307		2,935
North America	North America	2,497		2,088		6,870		6,112		North America	2,709		2,136
Net revenues	Net revenues	$	7,763	$	7,182	$	22,801	$	21,062	Net revenues	$	9,166	$	7,764
Earnings before income taxes:	Earnings before income taxes:									Earnings before income taxes:
Operating income:	Operating income:									Operating income:
Latin America	Latin America	$	112	$	91	$	305	$	221	Latin America	$	139	$	103
AMEA	AMEA	257		267		740		842		AMEA	360		272
Europe	Europe	413		508		1,170		1,478		Europe	507		377
North America	North America	465		363		1,337		932		North America	566		418
Unrealized (losses)/gains on hedging activities (mark-to-market impacts)		(186)		132		(268)		270
Unrealized gains/(losses) on hedging activities (mark-to-market impacts)										Unrealized gains/(losses) on hedging activities (mark-to-market impacts)	49		27
General corporate expenses	General corporate expenses	(58)		(35)		(170)		(177)		General corporate expenses	(77)		(50)
Amortization of intangible assets	Amortization of intangible assets	(32)		(32)		(96)		(102)		Amortization of intangible assets	(39)		(32)
Gain on acquisition		—		—		—		9

Acquisition-related costs	Acquisition-related costs	(292)		—		(318)		(24)		Acquisition-related costs	—		(21)
Operating income	Operating income	679		1,294		2,700		3,449		Operating income	1,505		1,094
Benefit plan non-service income	Benefit plan non-service income	30		37		93		135		Benefit plan non-service income	19		33
Interest and other expense, net	Interest and other expense, net	(71)		(82)		(337)		(358)		Interest and other expense, net	(95)		(168)
Gain on marketable securities										Gain on marketable securities	796		—
Earnings before income taxes	Earnings before income taxes	$	638	$	1,249	$	2,456	$	3,226	Earnings before income taxes	$	2,225	$	959

Items impacting our segment operating results are discussed in Note 1, Basis of Presentation, Note 2, Acquisitions and Divestitures, Note 3, Inventories, Note 4, Property, Plant and Equipment, Note 5, Goodwill and Intangible Assets, and Note 7, Restructuring Program. Also see Note 8, Debt and Borrowing Arrangements, and Note 9, Financial Instruments, for more information on our interest and other expense, net for each period.

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Net revenues by product category were:


		For the Three Months Ended September 30, 2022											For the Three Months Ended March 31, 2023
		Latin America		AMEA		Europe		North America		Total			Latin America		AMEA		Europe		North America		Total
		(in millions)											(in millions)
Biscuits		$	272	$	655	$	892	$	2,166	$	3,985
Biscuits & Baked Snacks												Biscuits & Baked Snacks	$	276	$	669	$	1,062	$	2,313	$	4,320
Chocolate	Chocolate	240		640		1,290		62		2,232		Chocolate	368		747		1,670		84		2,869
Gum & Candy	Gum & Candy	202		204		172		269		847		Gum & Candy	348		206		233		312		1,099
Beverages	Beverages	111		119		25		—		255		Beverages	111		208		33		—		352
Cheese & Grocery	Cheese & Grocery	88		86		270		—		444		Cheese & Grocery	108		109		309		—		526
Total net revenues	Total net revenues	$	913	$	1,704	$	2,649	$	2,497	$	7,763	Total net revenues	$	1,211	$	1,939	$	3,307	$	2,709	$	9,166

		For the Three Months Ended September 30, 2021 (1)											For the Three Months Ended March 31, 2022
		Latin America		AMEA		Europe		North America		Total			Latin America		AMEA		Europe		North America		Total
		(in millions)											(in millions)
Biscuits		$	218	$	585	$	859	$	1,785	$	3,447
Biscuits & Baked Snacks												Biscuits & Baked Snacks	$	224	$	657	$	951	$	1,799	$	3,631
Chocolate	Chocolate	208		623		1,371		68		2,270		Chocolate	248		706		1,512		77		2,543
Gum & Candy	Gum & Candy	157		205		157		235		754		Gum & Candy	172		203		152		260		787
Beverages	Beverages	89		112		27		—		228		Beverages	102		197		32		—		331
Cheese & Grocery	Cheese & Grocery	79		104		300		—		483		Cheese & Grocery	80		104		288		—		472
Total net revenues	Total net revenues	$	751	$	1,629	$	2,714	$	2,088	$	7,182	Total net revenues	$	826	$	1,867	$	2,935	$	2,136	$	7,764

		For the Nine Months Ended September 30, 2022
		Latin America		AMEA		Europe		North America		Total
		(in millions)
Biscuits		$	751	$	1,880	$	2,844	$	5,866	$	11,341
Chocolate		731		1,882		3,942		199		6,754
Gum & Candy		567		608		494		805		2,474
Beverages		305		460		81		—		846
Cheese & Grocery		261		276		849		—		1,386
Total net revenues		$	2,615	$	5,106	$	8,210	$	6,870	$	22,801

		For the Nine Months Ended September 30, 2021 (1)
		Latin America		AMEA		Europe		North America		Total
		(in millions)
Biscuits		$	592	$	1,677	$	2,518	$	5,299	$	10,086
Chocolate		581		1,768		4,052		185		6,586
Gum & Candy		417		614		459		628		2,118
Beverages		265		438		87		—		790
Cheese & Grocery		234		329		919		—		1,482
Total net revenues		$	2,089	$	4,826	$	8,035	$	6,112	$	21,062

(1) Our snack product categories include biscuits, chocolate and gum & candy. During the first quarter of 2022, we realigned some of our products between our biscuits and chocolate categories; as such, we reclassified the product category net revenues on a basis consistent with the 2022 presentation.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Description of the Company

~~We make~~Our core business is making and ~~sell primarily~~selling chocolate, biscuits and baked snacks, with additional businesses in adjacent, locally relevant categories including ~~biscuits, chocolate,~~ gum & candy, ~~as well as various~~ cheese & grocery and powdered ~~beverage products~~beverages around the world.

We aim to be the global leader in snacking. ~~In May 2022, we announced the evolution of our~~Our strategy is to drive long-term growth by focusing on four strategic ~~pillars and~~ priorities: accelerating consumer-centric growth, driving operational excellence, creating a winning growth culture and scaling sustainable snacking. We also announced our plans to reshape our portfolio, with a focus on extending our leadership positions in chocolate and biscuits as well as baked snacks. We seek to further enable our growth by investing in our strong and inclusive talent, brand portfolio and digital technologies and skills, as well as our sales and marketing capabilities. We believe the successful implementation of our strategic priorities and leveraging of our attractive global footprint, strong ~~foundation~~core of iconic global and local brands, ~~an attractive global footprint, our market leadership in developed~~marketing, sales, distribution and ~~emerging markets, our deep innovation, marketing and distribution~~cost excellence capabilities, and ~~our efficiency and sustainability efforts,~~top talent with a growth mindset, will drive consistent top- and bottom-line growth, enabling us to continue to create long-term value for our shareholders.

Recent Developments and Significant Items Affecting Comparability

Macroeconomic environment

We continue to observe significant market uncertainty, increasing inflationary pressures, supply constraints, exchange rate volatility as well as ongoing effects from the COVID-19 pandemic. Throughout the pandemic, we experienced an overall increase in demand and revenue growth as consumers increased their food purchases for in-home consumption in some markets, while parts of our business were negatively affected by related lockdowns and restrictions. Additionally, global supply chain, transportation and labor issues escalated and we experienced significantly higher operating costs, including higher overall raw material, transportation, labor and energy costs that have continued to rise.

Our overall outlook for future snacks revenue growth remains strong; however, we anticipate ongoing volatility in response to supply chain issues, including labor and transportation constraints, and COVID-related risks. We will continue to proactively manage our business in response to the evolving global economic environment and related uncertainty and business risks while also prioritizing and supporting our employees and customers. We continue to take steps to mitigate impacts to our supply chain, operations, technology and assets.

War in Ukraine

In February 2022, Russia began a military invasion of Ukraine. For the safety of our employees, we stopped production and closed our facilities in ~~Ukraine.~~Ukraine; since then we have been gradually restoring operations, continuing to take steps to protect the safety of our employees and partially re-opening our two plants. We are providing all of our employees with compensation and with help in securing shelter in neighboring ~~countries.~~countries, where required and needed. We have also made cash and in-kind donations to several humanitarian aid organizations in the region.

In March 2022, our two Ukrainian manufacturing facilities in Trostyanets and Vyshhorod were significantly damaged. In connection with the damage to these plants and impairment of other assets, primarily inventory, other plant, property and equipment, as well as increased allowances on our receivables, during the first quarter of 2022, we recorded $143 million of charges directly incurred as a result of the war in Ukraine, including an accrual for continued compensation for our employees in Ukraine (see Note 1, ~~Basis of Presentation,~~ ~~to the condensed consolidated financial statements, and refer to~~ ~~Items Affecting Comparability of Financial Results~~ for additional information). We have increased operations and continue to provide resources in other primarily European manufacturing and distribution facilities to seek to continue supplying our Ukraine business's customers and consumers across Europe.

During the ~~second and third quarters~~remainder of 2022, the war continued through parts of Ukraine. We continue to make targeted repairs on both our plants. We relaunched our systems and implemented additional safety and security measures. In late June, we partially reopened the Vyshhorod plant and restarted limited potato chip production and in late November, we reopened the Trostyanets plant and restarted limited chocolate production. ~~During~~We also continue to support our Ukraine employees, including paying salaries to those not yet able to return to work until full production returns. See Note 1, Basis of Presentation - War in Ukraine, to the ~~second~~condensed consolidated financial statements, and ~~third quarters~~refer to Items Affecting Comparability of 2022, we reversed approximately $15 million and $7 million, respectively, of previously recorded charges primarily as a result of higher than expected collection of trade receivables and inventory recoveries.Financial Results for additional information.

As a food company, we continue to work to support the continuity of food supply and provide packaged foods to consumers. We have ~~discontinued~~suspended new capital investments and ~~suspended~~ our advertising spending in Russia, but as a food company with more than 2,500 employees in ~~Russia,~~the country, we have not ceased operations given we believe we play a role in the continuity of the food supply. We are ~~required to~~complying and will comply with applicable international sanctions and other measures that have been or may be imposed on Russian entities. We continue to evaluate the situation in Ukraine and Russia and our ability to control our operating activities and businesses on an ongoing basis, and we continue to consolidate both our Ukrainian and Russian subsidiaries. ~~Prior to the onset of the war, Ukraine generated 0.5% and Russia generated 2.9% of 2021 consolidated net revenues.~~ During the ~~nine months ended September 30,~~first quarter of 2022, Ukraine generated 0.3% and Russia generated ~~3.6%~~2.4% of consolidated net revenue and during the first quarter of 2023, Ukraine generated 0.4% and Russia generated 2.8% of consolidated net revenue. Our Russian business has grown as a result of the recent strengthening of the Russian ruble versus the U.S. dollar and increased demand for packaged foods. The war has not had a material impact on our Russian business through the first nine months of 2022.

~~We provide more information on risks related to the war in Ukraine in our~~ ~~Financial Outlook~~ ~~and~~ ~~Commodity Trends~~ ~~section, Item 3,~~ ~~Quantitative and Qualitative Disclosures about Market Risk~~ ~~and under Item 1A,~~ ~~Risk Factors~~.

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~~COVID-19 and Inflationary Cost Environment~~

~~In the third year~~as a result of the ~~COVID-19 global pandemic, our main priority remains~~stronger Russian ruble versus the ~~safety~~U.S. dollar at the start of 2023 and increased price. The combination of pricing, suspension of advertising and ruble strength has resulted in a significant increase in the profitability of the Russian business and contributed to the growth of our ~~employees as well as continuing~~consolidated performance. Our decision to ~~help maintain~~suspend new capital investments in Russia has not had a material impact on our ability to meet demand within our Russian business during 2023. We believe the ~~global food supply. During~~war in Ukraine has had a negative impact on our business throughout the ~~pandemic, we experienced an overall increase in demand and revenue growth as consumers increased their food purchases for in-home consumption in many markets, while parts~~rest of our ~~business were negatively affected by related lockdowns and restrictions. In late 2021, global supply chain, transportation and labor issues escalated and we experienced significantly higher~~Europe operating ~~costs, including higher overall raw material, transportation, labor and energy costs that have continued~~segment, but the impact of this is difficult to ~~rise in 2022.~~

~~During~~quantify. We cannot predict if the first nine months of 2022, our net revenues continued to increase with growth of 8.3% and Organic Net Revenue growth of 11.2%, compared to the first nine months of 2021. Throughout 2022, we continued to see increased demand primarily for our snack category products and revenue growth in both our emerging and developed markets relative to the first nine months of 2021. We continued to also experience significantly higher operating costs. See additional details on our resultsrecent strength in our ~~Discussion and Analysis of Historical Results~~.

During the pandemic and the related inflationary environment, we continued to closely monitor our cash position and cash flows and worked to increase our access to financing. As of September 30, 2022, our liquidity remains strong. During the first nine months of 2022, we funded our acquisitions of Chipita and Clif Bar (see additional information below) and also issued $2.5 billion of new long-term debt in order to refinance approximately $2 billion of tendered and redeemed debt (refer to Note 8, ~~Debt and Borrowing Arrangements~~ for details) ahead of the rising interest rate environment. We generated $2.5 billion of cash from operations during the first nine months of 2022, ending the quarter with cash and cash equivalents of $2.2 billion as of September 30, 2022. We also had $9 billion of unused credit facilities available as of September 30, 2022 as well as ongoing access to financing markets as evidenced by the incremental term loan facility we entered into and announced on July 11, 2022. Our JDE Peet's and KDP equity method investments also give us additional financial flexibility.

WeRussian business will continue ~~to proactively manage our business~~ in ~~response to~~ the evolving global economic environment and related uncertainty and business risks while also prioritizing and supporting our employees and customers. We continue to take steps to mitigate impacts to our supply chain, operations, technology and assets. We intend to continue to execute on our new strategic and operating plans as the situation evolves. We seek to further our strategic priorities and position the Company to withstand the current uncertainties and emerge stronger.future.

Acquisitions and Divestitures

During 2022, we completed the ~~second quarter~~following acquisitions to strategically complement and expand our existing portfolio:

•Ricolino, a confectionery business with products sold primarily in Mexico

•Clif Bar & Company (“Clif Bar”), a leading U.S. maker of nutritious energy bars with organic ingredients

•Chipita Global S.A. ("Chipita"), a high-growth leader in the central and Eastern European croissant and baked snacks category

Additionally in 2022, we announced our intention to divest our developed market gum and global Halls candy ~~businesses. Refer to~~ ~~Financial Outlook~~ ~~below for additional details.~~

~~On November 1,~~businesses and in the fourth quarter of 2022, we ~~completed our acquisition~~announced an agreement to sell the developed market gum business with an anticipated closing in the fourth quarter of ~~Ricolino, a confectionery business located primarily in Mexico, for a purchase price of approximately $1.3 billion.~~

On August 1, 2022, we completed our acquisition of Clif Bar, a leading U.S. maker of nutritious energy bars with organic ingredients. We paid cash consideration of $2.9 billion, which includes purchase price consideration of $2.6 billion, net of cash received2023, subject to relevant antitrust approvals and ~~compensation expense of $0.3 billion related to the buyout of the non-vested ESOP shares.~~

closing conditions.

On January 3, 2022, we completed our acquisition of Chipita Global S.A. ("Chipita"), which is a strategic complement to our existing snacks portfolio and advances our strategy to become the global leader in broader snacking. We paid cash consideration of €1.2 billion ($1.4 billion), net of cash received, and we assumed and paid down €0.5 billion ($0.4 billion) of Chipita's debt in January for a total purchase price of approximately €1.7 billion ($1.8 billion).

Refer ~~to our~~ ~~Discussion and Analysis of Historical Results~~ ~~for more information on the impact of the Ricolino, Clif Bar and Chipita acquisitions on our results and refer~~ to Note 2, Acquisitions and Divestitures, for additional details.

Investment Transactions

Keurig Dr Pepper Transactions

In 2023, we sold approximately 30 million shares, which reduced our ownership interest by 2.1% to 3.2% of the total outstanding shares. We recorded a pre-tax gain of $493 million (or $366 million after tax). This reduction in ownership, to below 5%, resulted in a change of accounting for our investment, from equity method investment accounting to accounting for equity interests with readily determinable fair values ("marketable securities") as we no longer have significant influence. Due to the change of accounting, we reported unrealized gains for marketable securities of $787 million (or $586 million after tax).

JDE Peet’s Transactions

On March 30, 2023, we issued options to sell shares of JDEP in tranches equivalent to approximately 7.7 million shares. These options are exercisable at maturity during the third quarter of 2023 with a potential impact to our ownership if the options are exercised. On April 3, 2023, we sold approximately 7.7 million shares of JDEP, which reduced our ownership interest by 1.6% to 18.1%.

For additional information, refer to Note 6, Investments and Note 9, Financial Instruments.

Highly Inflationary Accounting

Türkiye

During the first quarter of 2022, we concluded that Türkiye became a highly inflationary economy for accounting purposes. As of April 1, 2022, we began to apply highly inflationary accounting for our subsidiaries operating in Türkiye.

See Note 1, Basis of Presentation– Currency Translation and Highly Inflationary Accounting for additional details.

U.K. advertising and promotion ban

In the United Kingdom, a ban on specific types of TV and online advertising of food containing levels of fat, sugar or salt above specified thresholds is expected to go into effect in October 2025, and new measures restricting certain promotions are expected to go into effect in October 2023. Restrictions on in-store placement of some of those products went into effect in October 2022. Although we are unable to estimate precisely the impact of the restrictions, they did not have a significant impact on our consolidated financial statements in the first quarter of 2023.

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~~JDE Peet's and KDP Equity Method Investment Transactions~~Taxes

~~JDE Peet's~~

We continue to monitor existing and potential future tax reform around the world. On ~~May 8,~~August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. Based on the guidance available thus far, we ~~sold approximately 18.6 million JDE Peet's shares directly back~~expect to ~~JDE Peet's, which reduced~~meet the criteria of a large corporation but we do not believe this legislation will have a material impact on our ~~ownership interest~~consolidated financial statements. We will continue to ~~19.8%.~~evaluate it as additional guidance and clarification becomes available. We ~~received €500 million ($529 million)~~also continue to monitor countries’ progress toward enactment of ~~proceeds~~the Organization of Economic Cooperation and ~~recorded~~Development’s model rules on a ~~loss of €8 million ($8 million)~~global minimum tax. While numerous countries have proposed new legislation in this area (and two countries have enacted it), any new law is only expected to be effective for taxable years beginning after December 31, 2023. If broadly enacted, these laws could have a material effect on ~~this sale during the second quarter of 2022.~~us.

~~KDP~~

On June 7, 2021, we participated in a secondary offering of KDP shares and sold approximately 28 million shares, which reduced our ownership interest to 6.4% of the total outstanding shares. We received $997 million of proceeds and recorded a pre-tax gain of $520 million (or $392 million after-tax) during the second quarter of 2021. On August 2, 2021, we sold approximately 14.7 million KDP shares, which reduced our ownership interest to 5.3%. We received $500 million of proceeds and recorded a pre-tax gain of $248 million (or $189 million after-tax) during the third quarter of 2021. The cash taxes associated with both KDP share sales were paid in 2021.

~~Table of Contents~~

~~Summary of Results~~

•Net revenues increased 8.1% to $7.8 billion in the third quarter of 2022 and increased 8.3% to $22.8 billion in the first nine months of 2022 as compared to the same period in the prior year. In the third quarter and first nine months of 2022, our net revenue growth continued to reflect increased demand for most of our snack category products in both our emerging and developed markets relative to 2021. Overall, our net revenue growth in the third quarter and first nine months of 2022 was driven by higher net pricing, incremental net revenues from acquisitions and favorable volume/mix, partially offset by unfavorable currency translation and the impact of divestitures.

•Organic Net Revenue, a non-GAAP financial measure, increased 12.1% to $8.0 billion in the third quarter of 2022 and increased 11.2% to $23.3 billion in the first nine months of 2022 as compared to same period in the prior year. During the third quarter and first nine months of 2022, Organic Net Revenue grew due to higher net pricing and favorable volume/mix. Refer to our ~~Discussion and Analysis of Historical Results~~ below for additional information. Organic Net Revenue is on a constant currency basis and excludes revenue from acquisitions and divestitures. We use Organic Net Revenue as it provides improved year-over-year comparability of our underlying operating results (see the definition of Organic Net Revenue and our reconciliation with net revenues within ~~Non-GAAP Financial Measures~~ ~~appearing later in this section).~~

•Diluted EPS attributable to Mondelēz International decreased 56.2% to $0.39 in the third quarter of 2022 and decreased 33.9% to $1.54 in the first nine months of 2022 as compared to the same period in the prior year.

–Diluted EPS decreased in the third quarter of 2022, primarily driven by acquisition-related costs incurred in 2022, an unfavorable year-over-year change in mark-to-market impacts from currency and commodity derivatives, lapping a prior-year net gain on equity method transactions, higher acquisition integration costs and contingent consideration adjustments, intangible asset impairment charges incurred in 2022 and inventory step-up charges incurred in 2022, partially offset by lower Simplify to Grow program costs and an increase in Adjusted EPS.

–Diluted EPS decreased during the first nine months of 2022, primarily driven by lapping prior-year net gains on equity method transactions, unfavorable year-over-year mark-to-market impacts from currency and commodity derivatives, higher acquisition-related costs, incremental costs incurred due to the war in Ukraine, higher acquisition integration costs and contingent consideration adjustments, higher intangible asset impairment charges, lower net earnings from divestitures and inventory step-up charges incurred in 2022, partially offset by lower Simplify to Grow program costs, an increase in Adjusted EPS, lower negative impacts from enacted tax law changes, lower equity method investee items and lapping the prior-year negative impact from pension participation changes.

•Adjusted EPS, a non-GAAP financial measure, increased 5.7% to $0.74 in the third quarter of 2022 and increased 3.7% to $2.22 in the first nine months of 2022 as compared to the same period in the prior year. On a constant currency basis, Adjusted EPS increased 15.7% to $0.81 in the third quarter of 2022 and up 12.6% to $2.41 in the first nine months of 2022 as compared to the same periods in the prior year.

–Adjusted EPS increased in the third quarter of 2022, primarily driven by operating gains, lower taxes primarily due to higher net benefits from non-recurring discrete tax items, fewer shares outstanding and higher equity method earnings, partially offset by unfavorable currency translation and higher interest expense.

–Adjusted EPS increased during the first nine months of 2022, primarily driven by operating gains, fewer shares outstanding and lower taxes, partially offset by unfavorable currency translation, lower benefit plan non-service income and higher interest expense.

Adjusted EPS and Adjusted EPS on a constant currency basis are non-GAAP financial measures. We use these measures as they provide improved year-over-year comparability of our underlying results (see the definition of Adjusted EPS and our reconciliation with diluted EPS within ~~Non-GAAP Financial Measures~~ ~~appearing later in this section).~~

~~Table of Contents~~

Financial Outlook

We seek to achieve profitable, long-term growth and manage our business to attain this goal using our key operating metrics: Organic Net Revenue, Adjusted Operating Income and Adjusted EPS. We use these non-GAAP financial metrics and related computations, particularly growth in profit dollars, to evaluate and manage our business and to plan and make near- and long-term operating and strategic decisions. As such, we believe these metrics are useful to investors as they provide supplemental information in addition to our U.S. Generally Accepted Accounting Principles ("U.S. GAAP") financial results. We believe it is useful to provide investors with the same financial information that we use internally to make comparisons of our historical operating results, identify trends in our underlying operating results and evaluate our business. We believe our non-GAAP financial measures should always be considered in relation to our U.S. GAAP results. We have provided reconciliations between our ~~U.S.~~ GAAP and non-GAAP financial measures in Non-GAAP Financial Measures, which appears later in this section.

In addition to monitoring our key operating metrics, we monitor developments and trends that could impact our revenue and profitability objectives, ~~similar to those we~~as highlighted in our most recently filed Annual Report on Form 10-K for the year ended December 31, ~~2021 and discussed in the footnotes to our financial statements.~~2022.

•~~Market conditions.~~ ~~Snack categories continued to grow in the first nine months of 2022. This is consistent with the latest findings in the third annual~~ ~~State of Snacking~~ report, commissioned by Mondelēz International and issued in January 2022. The research report was conducted in conjunction with consumer poll specialist The Harris Poll and summarizes the findings from interviews with thousands of consumers across 12 countries. The report underscores the growth of snacking worldwide and how behavior, sentiment and routines surrounding food are being reshaped by factors such as the COVID-19 pandemic. Snacking, which was already increasing among consumers, continues to grow as we noted in our latest Annual Report on Form 10-K. Our outlook for future snacks revenue growth remains strong, but we anticipate some volatility in revenues while current events and conditions continue. As the COVID-19 pandemic, inflationary cost environment, war in Ukraine and related impacts continue, we could see shifts in consumer demand and in our sales and product mix that could have a negative impact on our results. We continue to monitor volatility across markets, including global consumer, energy and other commodity, transportation, labor, currency and capital markets. We expect greater inflation, including input cost volatility and a higher aggregate cost environment to continue in 2022, as the war in Ukraine, the pandemic, supply chain disruptions (affecting the availability of raw materials, packaging, transportation and other costs), rising energy costs, labor shortages, adverse weather events and conditions and other factors are expected to continue. Although we hedge to mitigate exposures to commodity and other input cost increases, we cannot fully hedge against all cost increases and changes in costs, and our hedging strategies may not protect us from increases in specific raw materials or other costs. ~~Refer also to~~ ~~Commodity Trends~~ ~~and Item 3,~~ ~~Quantitative and Qualitative Disclosures about Market Risk.~~

•~~War in Ukraine~~. We expect to experience heightened volatility and higher costs in international supply chains and global markets (including energy and other commodities, currencies and capital markets) in connection with the war in Ukraine with related negative impacts to our operating results that we cannot fully predict with certainty. We also expect increased inflationary pressures that will adversely impact our operating costs, particularly as the war continues. Demand for our products may also be negatively impacted, particularly in those markets closest to Ukraine or other markets that are more vulnerable to consumer price increases. We have expanded operations in other European facilities and are adapting to continue supplying the majority of our Ukraine business's customers and consumers across Europe. We continue to take action and evaluate additional ways to mitigate risks, including executing business continuity plans to cover products produced in Ukraine and taking actions to adjust product offerings, package sizes and pricing to help address rising costs. In addition, while our business in Russia has continued to perform well in 2022, we may experience negative impacts to our business in the future due to the war in Ukraine, including challenges to supply products as a result of sanctions or other supply chain challenges, reductions in consumer demand or local government actions that negatively impact our business. Our continued operating presence in Russia may result in negative publicity or consumer actions against our brands, which may have negative impacts on our business. We may also experience increased cyber attacks from state sponsored threat actors with ransomware or other type of malware attacks due to a heightened level of malicious cyber activity as a result of the war in Ukraine. While we are working to mitigate negative effects on our business, we may not be able to fully predict or respond to all of the direct or indirect impacts on our business on a timely basis to prevent adverse impacts to our results. We also continue to monitor the situation in Russia and any risks to our employees, operations or assets. Any ongoing or new developments in the war could have a material negative effect on our business and results in the future.

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Summary of Results

•~~Clif Bar acquisition. On August 1, 2022, we completed~~Net revenues increased 18.1% to $9.2 billion in the first quarter of 2023 as compared to the same period in the prior year. In the first quarter of 2023, our ~~acquisition~~net revenue growth continued to reflect increased demand for most of our snack category products in both our emerging and developed markets relative to 2022. Overall, our net revenue growth in the first quarter of 2023 was driven by higher net pricing, incremental net revenues from our acquisitions of Clif Bar ~~for approximately $2.9 billion. The acquisition~~and Ricolino in 2022 and favorable volume/mix, partially offset by unfavorable currency translation and the impact of ~~Clif Bar includes a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain revenue and earnings targets~~divestitures 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. In connection with this acquisition, we expect to generate a meaningful cash tax benefit over time from the amortization of acquisition-related intangibles. Refer to Note 2, Acquisitions and Divestitures, and Liquidity and Capital Resources for additional details.2022.

•~~Ricolino acquisition.~~Organic Net Revenue, a non-GAAP financial measure, increased 19.4% to $9.3 billion in the first quarter of 2023 as compared to same period in the prior year. During the first quarter of 2023, Organic Net Revenue grew due to higher net pricing and favorable volume/mix. Organic Net Revenue is on a constant currency basis and excludes revenue from acquisitions and divestitures. We use Organic Net Revenue as it provides improved year-over-year comparability of our underlying operating results (see the definition of Organic Net Revenue and our reconciliation with net revenues within ~~On November 1, 2022, we completed our acquisition of Ricolino, a confectionery business located primarily in Mexico, for a purchase price of approximately $1.3 billion. Refer to Note 2,~~ Non-GAAP Financial Measures)~~Acquisitions and Divestitures~~.

~~, and~~ ~~Liquidity and Capital Resources~~ ~~for additional details.~~

•~~Planned Divestiture of our developed market gum and global Halls businesses.~~ ~~In May 2022, we announced our intention~~Diluted EPS attributable to ~~divest these businesses and~~Mondelēz International increased 149.2% to $1.52 in the ~~third~~first quarter of ~~2022, we began~~2023 as compared to ~~seek potential buyers for these businesses.~~

•~~Taxes. We continue~~the same period in the prior year. Diluted EPS increased in the first quarter of 2023, driven by a mark-to-market gain on marketable securities, gain on equity method investment transactions, lower incremental costs due to monitor existing and potential future tax reform around the world. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. Based on our initial analysis of the provisions, we expect to meet the criteria of a large corporation but we do not believe this legislation will have a material impact on our consolidated financial statements; we will continue to evaluate it as additional guidance and clarification becomes available. In addition, the Organization of Economic Cooperation and Development (OECD) continues to work toward agreement regarding model rules for a global minimum tax. This could have a material effect on us if enacted.

•~~Türkiye, Argentina and currency volatility. During 2022, currency exchange rate volatility increased, particularly in connection with~~ the war in Ukraine, an increase in Adjusted EPS, lapping prior-year loss on debt extinguishment, lapping prior-year intangible asset impairment charges, lower acquisition-related costs and ~~we continue~~favorable year-over-year change in mark-to-market impacts from currency and commodity derivatives. These favorable items were partially offset by higher acquisition integration costs and contingent consideration adjustments, higher equity investee items, higher divestiture-related costs, lower net earnings from divestitures and higher remeasurement loss of net monetary position.

•Adjusted EPS, a non-GAAP financial measure, increased 9.9% to ~~monitor Ukraine and Russia and inflationary economic impacts there and~~$0.89 in ~~other countries. We discuss historical currency impacts in our~~ ~~Discussion and Analysis of Historical Results. As further discussed in Note 1,~~ ~~Basis of Presentation– Currency Translation and Highly Inflationary Accounting,~~ ~~during~~ the first quarter of 2022, we concluded that Türkiye became a highly inflationary economy for accounting purposes. As of April 1, 2022, we began to apply highly inflationary accounting for our subsidiaries operating in Türkiye and changed their functional currency from the Turkish lira2023 as compared to the ~~U.S. dollar. Our operations~~same period in ~~Türkiye contributed $141 million or 0.6%~~the prior year. On a constant currency basis, Adjusted EPS increased 17.3% to $0.95 in the first quarter of 2023 as compared to the same periods in the prior year. Adjusted EPS increased in the first quarter of 2023, primarily driven by operating gains, fewer shares outstanding, lower taxes and dividend income from marketable securities, partially offset by unfavorable currency translation, higher interest expense, lower equity method investment earnings and lower benefit plan non-service income. Adjusted EPS and Adjusted EPS on a constant currency basis are non-GAAP financial measures. We use these measures as they provide improved year-over-year comparability of our ~~condensed consolidated net revenues in~~underlying results (see the ~~nine months ended September 30, 2022. Within selling, general~~definition of Adjusted EPS and administrative expenses, we recorded a remeasurement gain of $1 million during the three months and nine months ended September 30, 2022 related to the revaluation of the Turkish lira denominated net monetary position. We also continue to apply highly inflationary accounting for our ~~Argentinean subsidiaries. We recorded a remeasurement gain of $1 million during the three months and $1 million during the nine months ended September 30, 2022~~reconciliation with diluted EPS within selling, general and administrative expenses related to the revaluation of our Argentinean peso denominated net monetary position. The mix of monetary assets and liabilities and the exchange rate to convert Turkish lira and Argentinean pesos to U.S. dollars could change over time, so it is difficult to predict the overall impact of TürkiyeNon-GAAP Financial Measures~~andArgentina highly inflationary accounting on future net earnings.~~).

•~~U.K. advertising and promotion ban.~~ In the United Kingdom, a ban on specific types of TV, online advertising and certain promotions of food containing levels of fat, sugar or salt above specified thresholds is expected to go into effect in 2024, and new measures restricting in-store placement of some of those products went into effect in October 2022. Although we are unable to estimate precisely the impact of the restrictions, they could significantly negatively affect our U.K. results of operations in 2022 and thereafter. In the nine months ended September 30, 2022, we generated 7.9% of our consolidated net revenues in the U.K.

•~~Cybersecurity Risks.~~ Global cybersecurity risks continue to increase and we continue to be on heightened alert and dedicate focused resources to network security, backup and disaster recovery and to provide ongoing workforce training and employ security measures to protect our systems and data. We also continue to monitor threats in our environment, including but not limited to the manufacturing environment and operational technologies, as well as adjusting information security controls based on updated threats. While we have taken security measures to protect our systems and data, security measures cannot provide absolute certainty or guarantee that we will be successful in preventing or responding to every breach or disruption on a timely basis.

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Discussion and Analysis of Historical Results

Items Affecting Comparability of Financial Results

The following table includes significant income or (expense) items that affected the comparability of our results of operations and our effective tax rates. Please refer to the notes to the condensed consolidated financial statements indicated below for more information. Refer also to the Consolidated Results of Operations – Net Earnings and Earnings per Share Attributable to Mondelēz International table for the after-tax per share impacts of these items.


			For the Three Months Ended September 30,						For the Nine Months Ended September 30,								For the Three Months Ended March 31,
		See Note	2022			2021			2022			2021				See Note	2023			2022
			(in millions, except percentages)														(in millions, except percentages)
Simplify to Grow Program	Simplify to Grow Program	Note 7													Simplify to Grow Program	Note 7
Restructuring charges	Restructuring charges		$	7		$	(62)		$	(8)		$	(250)		Restructuring charges		$	(30)		$	(11)
Implementation charges	Implementation charges		(23)			(65)			(62)			(132)			Implementation charges		(5)			(20)
Intangible asset impairment charges	Intangible asset impairment charges	Note 5	(23)			—			(101)			(32)			Intangible asset impairment charges	Note 5	—			(78)
Mark-to-market (losses)/gains from derivatives (1)		Note 9	(120)			134			(220)			268
Mark-to-market gains from derivatives (1)															Mark-to-market gains from derivatives (1)	Note 9	48			28
Acquisition and divestiture-related costs:	Acquisition and divestiture-related costs:	Note 2													Acquisition and divestiture-related costs:	Note 2
Acquisition integration costs and contingent consideration adjustments (1)	Acquisition integration costs and contingent consideration adjustments (1)		(28)			57			(100)			54			Acquisition integration costs and contingent consideration adjustments (1)		(51)			(35)
Inventory step-up			(20)			—			(20)			—

Acquisition-related costs	Acquisition-related costs		(292)			—			(318)			(24)			Acquisition-related costs		—			(21)
Gain on acquisition			—			—			—			9

Divestiture-related costs	Divestiture-related costs		(6)			—			(12)			—			Divestiture-related costs		(30)			(1)
Incremental costs due to war in Ukraine (2)	Incremental costs due to war in Ukraine (2)	Note 1	7			—			(121)			—			Incremental costs due to war in Ukraine (2)	Note 1	3			(143)
Remeasurement of net monetary position	Remeasurement of net monetary position	Note 1	(11)			(2)			(26)			(10)			Remeasurement of net monetary position	Note 1	(12)			(5)
Impact from pension participation changes (1)	Impact from pension participation changes (1)	Note 10	(3)			(1)			(8)			(38)			Impact from pension participation changes (1)	Note 10	(3)			(3)
Impact from resolution of tax matters (1)		Note 12	—			—			—			7

Loss on debt extinguishment and related expenses	Loss on debt extinguishment and related expenses	Note 8	—			—			(129)			(137)			Loss on debt extinguishment and related expenses	Note 8	—			(129)
Initial impacts from enacted tax law changes		Note 14	(13)			4			(22)			(95)
(Loss)/gain on equity method investment transactions (3)			(3)			248			(16)			743

Gain on marketable securities															Gain on marketable securities	Note 6	787			—
Gain/(loss) on equity method investment transactions (3)															Gain/(loss) on equity method investment transactions (3)		485			(5)
Equity method investee items (4)	Equity method investee items (4)		(1)			4			13			(51)			Equity method investee items (4)		(48)			(10)
Effective tax rate	Effective tax rate	Note 14	28.8		%	27.4		%	24.2		%	29.5		%	Effective tax rate	Note 14	29.6		%	21.9		%

(1)Includes impacts recorded in operating income and interest expense and other, net. Mark-to-market gains/(losses) above also include our equity method investment-related derivative contract mark-to-market gains/(losses) (refer to Note 9, Financial Instruments) that are recorded in the gain on equity method investment transactions on our condensed consolidated statement of earnings.

(2)Incremental costs due to the war in Ukraine include direct charges such as asset impairments due to damaged facilities and inventory, higher expected allowances for uncollectible accounts receivable and committed compensation. Please see the Non-GAAP Financial Measures section at the end of this item and Note 1, Basis of Presentation – War in Ukraine, for additional information.

(3)~~(Loss)/gain~~Gain/(loss) on equity method investment transactions is recorded outside pre-tax operating results on the condensed consolidated statement of earnings. See footnote (1) as mark-to-market gains/(losses) on our equity method-investment-related derivative contracts are presented in the table above within mark-to-market gains/(losses) from derivatives.

(4)Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's ~~and KDP~~ equity method ~~investees,~~investee, including acquisition and divestiture-related costs and restructuring program costs.

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Consolidated Results of Operations

Three Months Ended ~~September 30:~~March 31


		For the Three Months Ended September 30,									For the Three Months Ended March 31,
		2022		2021		$ change		% change			2023		2022		$ change		% change
		(in millions, except per share data)									(in millions, except per share data)
Net revenues	Net revenues	$	7,763	$	7,182	$	581	8.1	%	Net revenues	$	9,166	$	7,764	$	1,402	18.1	%
Operating income	Operating income	679		1,294		(615)		(47.5)	%	Operating income	1,505		1,094		411		37.6	%
Net earnings attributable to Mondelēz International	Net earnings attributable to Mondelēz International	$	532	$	1,258	$	(726)	(57.7)	%	Net earnings attributable to Mondelēz International	$	2,081	$	855	$	1,226	143.4	%
Diluted earnings per share attributable to Mondelēz International	Diluted earnings per share attributable to Mondelēz International	$	0.39	$	0.89	$	(0.50)	(56.2)	%	Diluted earnings per share attributable to Mondelēz International	$	1.52	$	0.61	$	0.91	149.2	%

Net Revenues – Net revenues increased ~~$581~~$1,402 million ~~(8.1%~~(18.1%) to ~~$7,763~~$9,166 million in the ~~third~~first quarter of ~~2022,~~2023, and Organic Net Revenue (1) increased ~~$863~~$1,502 million ~~(12.1%~~(19.4%) to ~~$8,018~~$9,257 million. Developed markets net revenues increased ~~1.5%~~16.0% and developed markets Organic Net Revenue increased ~~5.2%~~15.8% (1). Emerging markets net revenues increased ~~19.7%~~21.4% and emerging markets Organic Net Revenue increased ~~24.4%~~25.2% (1). The underlying changes in net revenues and Organic Net Revenue are detailed below:


	~~2022~~2023
Change in net revenues (by percentage point)
Total change in net revenues	~~8.1~~18.1	%
Remove the following items affecting comparability:
Unfavorable currency	~~8.2~~6.0	pp
Impact of divestitures	~~0.4~~0.1	pp
Impact of acquisitions	~~(4.6)~~(4.8)	pp
Total change in Organic Net Revenue (1)	~~12.1~~19.4	%
Higher net pricing	~~11.4~~16.2	pp
Favorable volume/mix	~~0.7~~3.2	pp

(1)Please see the Non-GAAP Financial Measures section at the end of this item.

Net revenue increase of ~~8.1%~~18.1% was driven by our underlying Organic Net Revenue growth of ~~12.1%~~19.4% and the impact of acquisitions, partially offset by unfavorable currency translation and the impact of divestitures. Overall, we continued to see increased demand for our snack category products. Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix. Higher net pricing in all regions was due to the benefit of carryover pricing from ~~2021~~2022 as well as the effects of input cost-driven pricing actions taken during the first ~~nine months~~quarter of ~~2022.~~2023. Favorable volume/mix was ~~driven~~reflected across all regions, primarily bydue to strong volume gains ~~in Latin America~~across our snack category products. The November 1, 2022 acquisition of Ricolino added incremental net revenues of $156 million (constant currency basis) and ~~AMEA, partially offset by volume declines in Europe, due to disruptions caused by pricing negotiations, and North America. The~~the August 1, 2022 acquisition of Clif Bar added incremental net revenues of ~~$158 million (constant currency basis) and the January 3, 2022 acquisition of Chipita added incremental net revenues of $176 million (constant currency basis).~~$218 million. Unfavorable currency impacts decreased net revenues by ~~$590~~$465 million, primarily due ~~primarily~~ to the strength of the U.S. dollar relative to most currencies, including the ~~euro,~~Argentinean peso, British pound sterling, euro, Indian rupee, Egyptian pound, Turkish lira ~~Argentinean peso, Indian rupee,~~and Chinese yuan, ~~Australian dollar and Polish zloty,~~ partially offset by the strength of a few currencies relative to the U.S. dollar, primarily the Russian ~~ruble.~~ruble and Mexican peso. The impact of divestitures resulted in a year-over-year reduction in net revenues of ~~$26~~$9 million. Refer to Note 2, Acquisitions and Divestitures, for additional information.

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Operating Income – Operating income ~~decreased $615~~increased $411 million ~~(47.5%~~(37.6%) to ~~$679~~$1,505 million in the ~~third~~first quarter of ~~2022.~~2023. Adjusted Operating Income (1) increased ~~$23~~$204 million ~~(1.9%~~(14.8%) to ~~$1,253~~$1,581 million and Adjusted Operating Income on a constant currency basis (1) increased ~~$118~~$285 million ~~(9.6%~~(20.7%) to ~~$1,348~~$1,662 million due to the following:

Operating
Income % Change
(in millions)
Operating Income for the Three Months Ended September 30, 2021 $ 1,294
   Simplify to Grow Program (2)
127
   Mark-to-market gains from derivatives (3)
(132)
   Acquisition integration costs and contingent consideration adjustments (4)
(57)
   Operating income from divestitures (4)
(6)
Remeasurement of net monetary position (5)
2
   Impact from pension participation changes (6)
2
Adjusted Operating Income (1) for the
   Three Months Ended September 30, 2021
$ 1,230
   Higher net pricing 817
   Higher input costs (545)
Unfavorable volume/mix (28)
   Higher selling, general and administrative expenses (154)
   Lower amortization of intangible assets (1)
   Impact from acquisition (4)
30
   Other
(1)
Total change in Adjusted Operating Income (constant currency) (1)
118 9.6 %
Unfavorable currency translation (95)
Total change in Adjusted Operating Income (1)
23 1.9 %
Adjusted Operating Income (1) for the
   Three Months Ended September 30, 2022
$ 1,253
   Simplify to Grow Program (2)
(16)
   Intangible asset impairment charges (7)
(23)
   Mark-to-market losses from derivatives (4)
(186)
   Acquisition integration costs and contingent consideration adjustments (4)
(27)
   Inventory step-up (4)
(20)
   Acquisition-related costs (4)
(292)
   Divestiture-related costs (4) (8)
(6)
   Incremental costs due to war in Ukraine (5)
7
Remeasurement of net monetary position (5)
(11)
Operating Income for the Three Months Ended September 30, 2022 $ 679 (47.5) %


	Operating Income		% Change
	(in millions)
Operating Income for the Three Months Ended March 31, 2022	$	1,094
Simplify to Grow Program (2)	31
Intangible asset impairment charge (3)	78
Mark-to-market gains from derivatives (4)	(27)
Acquisition integration costs and contingent consideration adjustments (5)	32
Acquisition-related costs (5)	21

Divestiture-related costs (5)	1
Operating income from divestitures (5)	(1)
Remeasurement of net monetary position (6)	5


Incremental costs due to war in Ukraine (6)	143

Adjusted Operating Income (1) for the Three Months Ended March 31, 2022	$	1,377
Higher net pricing	1,254
Higher input costs	(930)
Favorable volume/mix	97
Higher selling, general and administrative expenses	(162)

Impact from acquisition (5)	43


Other	(17)
Total change in Adjusted Operating Income (constant currency) (1)	285		20.7	%
Unfavorable currency translation	(81)
Total change in Adjusted Operating Income (1)	204		14.8	%
Adjusted Operating Income (1) for the Three Months Ended March 31, 2023	$	1,581
Simplify to Grow Program (2)	(35)

Mark-to-market gains from derivatives (4)	49
Acquisition integration costs and contingent consideration adjustments (5)	(51)



Divestiture-related costs (5) (7)	(30)

Incremental costs due to war in Ukraine (6)	3
Remeasurement of net monetary position (6)	(12)



Operating Income for the Three Months Ended March 31, 2023	$	1,505	37.6	%

(1)Refer to the Non-GAAP Financial Measures ~~section at the end of this item.~~section.

(2)Refer to Note 7, Restructuring Program, for more information.

(3)Refer to Note 5, Goodwill and Intangible Assets, for more information.

(4)Refer to Note 9, Financial Instruments, and the Non-GAAP Financial Measures section at the end of this item for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.

~~(4)~~(5)Refer to Note 2, Acquisitions and Divestitures, for more information on the November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar and January 3, 2022 acquisition of Chipita, the November 1, 2021 sale of MaxFoods Pty Ltd, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.Chipita.

~~(5)~~(6)Refer to Note 1, Basis of Presentation, for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

~~(6)Refer to Note 10,~~ ~~Benefit Plans, for more information.~~

(7)~~Refer to Note 5,~~ ~~Goodwill and Intangible Assets, for more information.~~

~~(8)~~Divestiture-related costs includes costs incurred associated with our publicly-announced processes to divest our developed markets gum and global Halls businesses.

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During the ~~third~~first quarter of ~~2022,~~2023, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input ~~costs and unfavorable volume/mix.~~costs. Higher net pricing, which included the carryover impact of pricing actions taken in ~~the second half of 2021~~2022 as well as the effects of input cost-driven pricing actions taken during the first ~~nine months~~quarter of ~~2022,~~2023, was reflected across all regions. Favorable volume/mix was also reflected across all regions. Overall, volume/mix benefited from strong volume growth due to continued increased demand for our snack category products. The increase in input costs was driven by higher raw material costs as well as ~~increased~~higher manufacturing costs. Higher raw material costs were in part due to higher dairy, ~~packaging,~~energy, edible oils, sugar, grains, ~~energy, sugar,~~packaging, nuts, cocoa and other ingredients costs as well as unfavorable year-over-year currency exchange transaction costs on imported materials, partially offset by lower cocoa costs. Unfavorable volume/mix was driven by Europe, due to disruptions caused by pricing negotiations, and North America, partially offset by favorable volume/mix in AMEA and Latin America.materials.

Total selling, general and administrative expenses increased ~~$448~~$162 million from the ~~third~~first quarter of ~~2021,~~2022, due to a number of factors noted in the table above, including in part, ~~acquisition-related costs incurred in 2022,~~ the impact of acquisitions, higher divestiture-related costs, higher acquisition integration costs and contingent consideration adjustments and higher remeasurement loss of net monetary position, ~~divestiture-related costs incurred in 2022 and higher implementation costs incurred for the Simplify to Grow Program,~~ which were ~~partially~~ offset by a favorable currency impact related to expenses, ~~and a decrease of allowance and other cost reserves associated with~~lower incremental costs due to the war in ~~Ukraine.~~Ukraine, lapping prior-year acquisition-related costs and lower implementation costs incurred for the Simplify to Grow program. Excluding these factors, selling, general and administrative expenses also increased ~~$154~~$162 million from the ~~third~~first quarter of ~~2021.~~2022. The increase was driven primarily by higher advertising and consumer promotion costs and higher overhead costs in part due to increased investments in ~~route-to-market capabilities and higher advertising and consumer promotion costs.~~route to market capabilities.

Unfavorable currency changes decreased operating income by ~~$95~~$81 million due primarily to the strength of the U.S. dollar relative to most currencies, including the ~~euro,~~ British pound sterling, ~~Turkish lira,~~euro, Argentinean peso, Indian rupee, ~~Argentinean peso~~Egyptian pound, Chinese yuan and ~~Chinese yuan,~~Turkish lira, partially offset by the strength of a few currencies relative to the U.S. dollar, ~~primarily~~including the Russian ~~ruble.~~ruble, Mexican peso and Brazilian real.

Operating income margin ~~decreased~~increased from ~~18.0%~~14.1% in the ~~third~~first quarter of ~~2021~~2022 to ~~8.7%~~16.4% in the ~~third~~first quarter of ~~2022.~~2023. The ~~decrease~~increase was primarily driven ~~primarily~~ by ~~unfavorable~~lapping prior-year incremental costs due to the war in Ukraine, lapping prior-year intangible asset impairment charges, lapping prior-year acquisition-related costs and favorable year-over-year change in mark-to-market gains/(losses) from currency and commodity hedging activities, ~~acquisition-related costs incurred~~partially offset by a decrease in ~~2022, lower~~ Adjusted Operating Income margin, higher divestiture-related costs, higher acquisition integration costs and contingent consideration adjustments ~~intangible asset impairment charge incurred in 2022, inventory step-up charge incurred in 2022~~ and higher remeasurement loss of net monetary ~~position, partially offset by lower Simplify to Grow program costs.~~position. Adjusted Operating Income margin decreased from 17.8% for the first quarter of 2022 to 17.2% for the ~~third~~first quarter of ~~2021 to 16.1% for the third quarter of 2022.~~2023. The decrease was driven primarily by higher raw material costs, ~~and unfavorable product mix,~~ partially offset by higher net pricing and overhead cost leverage.

Table of Contents

Net Earnings and Earnings per Share Attributable to Mondelēz International – Net earnings attributable to Mondelēz International of ~~$532~~$2,081 million ~~decreased~~increased by ~~$726~~$1,226 million ~~(57.7%~~(143.4%) in the ~~third~~first quarter of ~~2022.~~2023. Diluted EPS attributable to Mondelēz International was ~~$0.39~~$1.52 in the ~~third~~first quarter of ~~2022, down $0.50 (56.2%~~2023, up $0.91 (149.2%) from the ~~third~~first quarter of ~~2021.~~2022. Adjusted EPS (1) was ~~$0.74~~$0.89 in the ~~third~~first quarter of ~~2022,~~2023, up ~~$0.04 (5.7%~~$0.08 (9.9%) from the ~~third~~first quarter of ~~2021.~~2022. Adjusted EPS on a constant currency basis (1) was ~~$0.81~~$0.95 in the ~~third~~first quarter of ~~2022,~~2023, up ~~$0.11 (15.7%~~$0.14 (17.3%) from the ~~third~~first quarter of ~~2021.~~2022.


	Diluted EPS

Diluted EPS Attributable to Mondelēz International for the Three Months Ended ~~September 30, 2021~~March 31, 2022	$	0.61
Simplify to Grow Program (2)	0.02
Intangible asset impairment charge (2)	0.04
Mark-to-market gains from derivatives (2)	(0.02)
Acquisition integration costs and contingent consideration adjustments (2)	(0.01)
Acquisition-related costs (2)	0.02

Net earnings from divestitures (2)	(0.03)





Loss on debt extinguishment and related expenses (3)	0.07




Incremental cost due to war in Ukraine (2)	0.11

Adjusted EPS (1) for the Three Months Ended March 31, 2022	$	0.81
Increase in operations	0.13
Decrease in equity method investment net earnings	(0.01)
Impact from acquisition (2)	0.02


Changes in benefit plan non-service income	(0.01)
Changes in interest and other expense, net (4)	(0.03)
Dividend income from marketable securities	0.01
Changes in income taxes (6)	0.01
Changes in shares outstanding (7)	0.02
Adjusted EPS (constant currency) (1) for the Three Months Ended March 31, 2023	$	0.95
Unfavorable currency translation	(0.06)
Adjusted EPS (1) for the Three Months Ended March 31, 2023	$	0.89
Simplify to Grow Program (2)	~~0.06~~ (0.02)

~~Mark-to-market gains~~Gain from derivatives (2)	~~(0.08)~~0.03
Acquisition integration costs and contingent consideration adjustments (2)	(0.03)


~~Net earnings from divestitures~~ ~~(2)~~	~~(0.01)~~







~~Gain on equity method investment transactions~~ ~~(3)~~	~~(0.13)~~


~~Adjusted EPS~~ ~~(1)~~Divestiture-related costs ~~for the Three Months Ended September 30, 2021~~	$	~~0.70~~
~~Increase in operations~~	~~0.05~~
~~Increase in equity method investment net earnings~~	~~0.01~~
~~Impact from acquisition~~ ~~(2)~~	~~0.02~~



~~Changes in interest and other expense, net~~ ~~(4)~~	~~(0.03)~~
~~Changes in income taxes~~ ~~(5)~~	~~0.04~~
~~Changes in shares outstanding~~ ~~(6)~~	~~0.02~~
~~Adjusted EPS (constant currency)~~ ~~(1)~~ ~~for the Three Months Ended September 30, 2022~~	$	~~0.81~~
~~Unfavorable currency translation~~	~~(0.07)~~
~~Adjusted EPS~~ ~~(1)~~ ~~for the Three Months Ended September 30, 2022~~	$	~~0.74~~
~~Simplify to Grow Program~~ ~~(2)~~	~~(0.01)~~
~~Intangible asset impairment charges~~ ~~(2)~~	~~(0.01)~~
~~Mark-to-market losses from derivatives~~ ~~(2)~~	~~(0.07)~~
~~Acquisition integration costs and contingent consideration adjustments~~ (2)	(0.02)
~~Acquisition-related costs~~Net earnings from divestitures (2)	~~(0.21)~~0.02
~~Inventory step-up~~ ~~(2)~~	~~(0.01)~~




Remeasurement of net monetary position (2)	(0.01)




~~Initial impacts from enacted tax law changes~~Gain on marketable securities (5)	~~(0.01)~~0.43


Gain on equity method investment transactions (5)	0.26
Equity method investee items (8)	(0.03)

Diluted EPS Attributable to Mondelēz International for the Three Months Ended ~~September 30, 2022~~March 31, 2023	$	~~0.39~~1.52

(1)Refer to the Non-GAAP Financial Measures section appearing later in this section.

(2)See the Operating Income table above and the related footnotes for more information.

(3)Refer to Note 6,8, ~~Equity Method Investments~~Debt and Borrowing Arrangements, for more information on ~~gain/~~the loss on ~~equity method investment transactions.~~debt extinguishment and related expenses.

(4)Excludes the currency impact on interest expense related to non-U.S. dollar-denominated debt, which is included in currency translation.

(5)Refer to Note 6, Investments, for more information on gains/losses on equity method investment transactions and marketable securities.

(6)Refer to Note 14, Income Taxes, for more information on the items affecting income taxes.

~~(6)~~(7)Refer to Note 11, Stock Plans, for more information on our equity compensation programs and share repurchase program and Note 15, Earnings per Share, for earnings per share weighted-average share information.

~~(7)~~(8)Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's ~~and KDP~~ equity method ~~investees,~~investee, such as acquisition and divestiture-related costs and restructuring program costs.

~~Table of Contents~~

~~Nine Months Ended September 30:~~

For the Nine Months Ended
September 30,
2022 2021 $ change % change
(in millions, except per share data)
Net revenues $ 22,801 $ 21,062 $ 1,739 8.3 %
Operating income 2,700 3,449 (749) (21.7) %
Net earnings attributable to
Mondelēz International
$ 2,134 $ 3,297 $ (1,163) (35.3) %
Diluted earnings per share attributable to
Mondelēz International
$ 1.54 $ 2.33 $ (0.79) (33.9) %

~~Net Revenues~~ ~~– Net revenues increased $1,739 million (8.3%) to $22,801 million in the first nine months of 2022, and Organic Net Revenue~~ ~~(1)~~ ~~increased $2,342 million (11.2%) to $23,346 million. Developed markets net revenues increased 2.3% and developed markets Organic Net Revenue increased 5.7%~~ ~~(1). Emerging markets net revenues increased 19.1% and emerging markets Organic Net Revenue increased 21.1%~~ ~~(1). The underlying changes in net revenues and Organic Net Revenue are detailed below:~~


	~~2022~~
~~Change in net revenues (by percentage point)~~
~~Total change in net revenues~~	~~8.3~~	%
~~Add back the following items affecting comparability:~~
~~Unfavorable currency~~	~~6.2~~	pp
~~Impact of divestitures~~	~~0.2~~	pp
~~Impact of acquisitions~~	~~(3.5)~~	pp
~~Total change in Organic Net Revenue~~ ~~(1)~~	~~11.2~~	%
~~Higher net pricing~~	~~8.1~~	pp
~~Favorable volume/mix~~	~~3.1~~	pp

~~(1)Please see the~~ ~~Non-GAAP Financial Measures~~ ~~section at the end of this item.~~

Net revenue increase of 8.3% was driven by our underlying Organic Net Revenue growth of 11.2% and the impact of acquisitions, partially offset by unfavorable currency translation and the impact of divestitures. Overall, we continued to see increased demand for our snack category products. Organic Net Revenue growth was driven by higher net pricing and favorable volume/mix. Higher net pricing in all regions was due to the benefit of carryover pricing from 2021 as well as the effects of input cost-driven pricing actions taken during the first nine months of 2022. Favorable volume/mix was driven by AMEA, Latin America and Europe, primarily by strong volume gains across our snack category products, partially offset by unfavorable volume/mix in North America. The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $158 million (constant currency basis), the January 3, 2022 acquisition of Chipita added incremental net revenues of $543 million (constant currency basis), the April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis). Unfavorable currency impacts decreased net revenues by $1,305 million, due primarily to the strength of the U.S. dollar relative to most currencies, including the euro, British pound sterling, Turkish lira, Argentinean peso, Australian dollar, Indian rupee, Polish zloty and Swedish krona, partially offset by the strength of a few currencies relative to the U.S. dollar, including the Russian ruble and Brazilian real. The impact of divestitures resulted in a year-over-year reduction in net revenues of $36 million. Refer to Note 2, ~~Acquisitions and Divestitures,~~ ~~for additional information.~~

~~Table of Contents~~

~~Operating Income~~ ~~– Operating income decreased $749 million (21.7%) to $2,700 million in the first nine months of 2022. Adjusted Operating Income~~ ~~(1)~~ ~~increased $133 million (3.7%) to $3,727 million and Adjusted Operating Income on a constant currency basis~~ ~~(1)~~ ~~increased $382 million (10.6%) to $3,976 million due to the following:~~

Operating
Income % Change
(in millions)
Operating Income for the Nine Months Ended September 30, 2021 $ 3,449
   Simplify to Grow Program (2)
381
   Intangible asset impairment charge (3)
32
   Mark-to-market gains from derivatives (4)
(270)
   Acquisition integration costs and contingent consideration adjustments (5)
(54)
   Acquisition-related costs (5)
24
   Gain from acquisition (5)
(9)
   Operating income from divestitures (5)
(11)
Remeasurement of net monetary position (6)
10
   Impact from pension participation changes (7)
47
   Impact from resolution of tax matters (8)
(5)
Adjusted Operating Income (1) for the
  Nine Months Ended September 30, 2021
3,594
   Higher net pricing 1,698
   Higher input costs (1,172)
   Favorable volume/mix 161
   Higher selling, general and administrative expenses (358)
   Lower amortization of intangible assets 7
   Impact from acquisitions (5)
46
Total change in Adjusted Operating Income (constant currency) (1)
382 10.6 %
   Unfavorable currency translation (249)
Total change in Adjusted Operating Income (1)
133 3.7 %
Adjusted Operating Income (1) for the
   Nine Months Ended September 30, 2022
$ 3,727
   Simplify to Grow Program (2)
(69)
   Intangible asset impairment charge (3)
(101)
   Mark-to-market losses from derivatives (4)
(268)
   Acquisition integration costs and contingent consideration adjustments (5)
(96)
   Inventory step-up (5)
(20)
   Acquisition-related costs (5)
(318)
   Divestiture-related costs (5) (9)
(12)
   Operating income from divestitures (6)
4
   Incremental costs due to war in Ukraine (6)
(121)
   Remeasurement of net monetary position (6)
(26)
Operating Income for the Nine Months Ended September 30, 2022 $ 2,700 (21.7) %

~~(1)Refer to the~~ ~~Non-GAAP Financial Measures~~ ~~section at the end of this item.~~

~~(2)Refer to Note 7,~~ ~~Restructuring Program,~~ ~~for more information.~~

~~(3)Refer to Note 5,~~ ~~Goodwill and Intangible Assets~~,~~for more information.~~

~~(4)Refer to Note 9,~~ ~~Financial Instruments, Note 16,Segment Reporting, and~~ ~~Non-GAAP Financial Measures~~ ~~section at the end of this item for more information on the unrealized gains/losses on commodity and forecasted currency transaction derivatives.~~

~~(5)Refer to Note 2,~~ ~~Acquisitions and Divestitures~~, for more information on the August 1, 2022 acquisition of Clif Bar, the January 3, 2022 acquisition of Chipita, the November 1, 2021 sale of MaxFoods Pty Ltd, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.

~~(6)Refer to Note 1,~~ ~~Basis of Presentation, for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.~~

~~(7)Refer to Note 10,~~ ~~Benefit Plans, for more information.~~

~~Table of Contents~~

~~(8)Refer to Note 12,~~ ~~Commitments and Contingencies, for more information.~~

~~(9)Divestiture-related costs includes costs incurred associated with our publicly-announced processes to divest our developed markets gum and global~~ ~~Halls~~ ~~businesses.~~

During the first nine months of 2022, we realized higher net pricing and favorable volume/mix, which was partially offset by increased input costs. Higher net pricing, which included the carryover impact of pricing actions taken in 2021 as well as the effects of input cost-driven pricing actions taken during the first nine months of 2022, was reflected in all regions. Favorable volume/mix was driven by AMEA, Latin America and Europe, which was partially offset by unfavorable volume/mix in North America. Overall volume/mix benefited from strong volume growth due to continued increased demand for our snack category products. The increase in input costs was driven by higher raw material costs as well as higher manufacturing costs. Higher raw material costs were in part due to higher packaging, dairy, edible oils, energy, grains, sugar, nuts and other ingredients costs, partially offset by lower cocoa costs and favorable year-over-year currency exchange transaction costs on imported materials.

Total selling, general and administrative expenses increased $660 million from the first nine months of 2021, due to a number of factors noted in the table above, including in part, higher acquisition-related costs, higher acquisition integration costs, the impact of acquisitions, incremental costs due to the war in Ukraine, higher remeasurement of net monetary position, divestiture-related costs incurred in 2022 and lapping the prior-year favorable impact from the resolution of a tax matter, which were partially offset by a favorable currency impact related to expenses, lapping the prior-year unfavorable impact from pension participation changes and lower implementation costs incurred for the Simplify to Grow Program. Excluding these factors, selling, general and administrative expenses increased $358 million from the first nine months of 2021. The increase was driven primarily by higher advertising and consumer promotion costs and higher overheads in part due to increased investments in route-to-market capabilities.

Unfavorable currency changes decreased operating income by $249 million due primarily to the strength of the U.S. dollar relative to most currencies, including the euro, British pound sterling, Turkish lira, Argentinian peso, Australian dollar, Indian rupee, Polish zloty and Swedish krona, partially offset by the strength of a few currencies relative to the U.S. dollar, including the Brazilian real.

Operating income margin decreased from 16.4% in the first nine months of 2021 to 11.8% in the first nine months of 2022. The decrease in operating income margin was driven primarily by the year-over-year unfavorable change in mark-to-market gains/(losses) from currency and commodity hedging activities, higher acquisition-related costs, higher acquisition integration costs, lower Adjusted Operating Income margin, incremental costs due to the war in Ukraine, higher intangible asset impairment charges, higher remeasurement of net monetary position, divestiture-related costs incurred in 2022 and inventory step-up charges incurred in 2022, partially offset by lower costs for the Simplify to Grow Program and lapping the prior-year unfavorable impact from pension participation changes. Adjusted Operating Income margin decreased from 17.1% for the first nine months of 2021 to 16.4% for the first nine months of 2022. The decrease was driven primarily by higher raw material costs and unfavorable product mix, partially offset by higher net pricing and overhead cost leverage.

~~Table of Contents~~

~~Net Earnings and Earnings per Share Attributable to Mondelēz International~~ – Net earnings attributable to Mondelēz International of $2,134 million decreased by $1,163 million (35.3%) in the first nine months of 2022. Diluted EPS attributable to Mondelēz International was $1.54 in the first nine months of 2022, down $0.79 (33.9%) from the first nine months of 2021. Adjusted EPS ~~(1)~~ ~~was $2.22 in the first nine months of 2022, up $0.08 (3.7%) from the first nine months of 2021. Adjusted EPS on a constant currency basis~~ ~~(1)~~ ~~was $2.41 in the first nine months of 2022, up $0.27 (12.6%) from the first nine months of 2021.~~


	~~Diluted EPS~~

~~Diluted EPS Attributable to Mondelēz International for the~~ ~~Nine Months Ended September 30, 2021~~	$	~~2.33~~
~~Simplify to Grow Program~~ ~~(2)~~	~~0.20~~
~~Intangible asset impairment charge~~ ~~(2)~~	~~0.02~~
~~Mark-to-market gains from derivatives~~ ~~(2)~~	~~(0.16)~~
~~Acquisition integration costs and contingent consideration adjustments~~ ~~(2)~~	~~(0.03)~~

~~Acquisition-related costs~~ ~~(2)~~	~~0.01~~

~~Net earnings from divestitures~~ ~~(2)~~	~~(0.03)~~

~~Remeasurement of net monetary position~~ ~~(2)~~	~~0.01~~
~~Impact from pension participation changes~~ ~~(2)~~	~~0.02~~


~~Loss on debt extinguishment and related expenses~~ ~~(3)~~	~~0.07~~
~~Initial impacts from enacted tax law changes~~ ~~(4)~~	~~0.07~~
~~Gain on equity method investment transaction~~ ~~(5)~~	~~(0.40)~~
~~Equity method investee items~~ ~~(6)~~	~~0.03~~

~~Adjusted EPS~~ ~~(1)~~ ~~for the Nine Months Ended September 30, 2021~~	$	~~2.14~~
~~Increase in operations~~	~~0.18~~

~~Impact from acquisition~~ ~~(2)~~	~~0.03~~


~~Changes in benefit plan non-service income~~	~~(0.01)~~
~~Changes in interest and other expense, net~~ ~~(7)~~	~~(0.01)~~
~~Changes in income taxes~~ ~~(4)~~	~~0.04~~
~~Changes in shares outstanding~~ ~~(8)~~	~~0.04~~
~~Adjusted EPS (constant currency)~~ ~~(1)~~ ~~for the Nine Months Ended September 30, 2022~~	$	~~2.41~~
~~Unfavorable currency translation~~	~~(0.19)~~
~~Adjusted EPS~~ ~~(1)~~ ~~for the Nine Months Ended September 30, 2022~~	$	~~2.22~~
~~Simplify to Grow Program~~ ~~(2)~~	~~(0.04)~~
~~Intangible asset impairment charges~~ ~~(2)~~	~~(0.05)~~
~~Mark-to-market losses from derivatives~~ ~~(2)~~	~~(0.13)~~
~~Acquisition integration costs and contingent consideration adjustments~~ ~~(2)~~	~~(0.03)~~
~~Inventory step-up~~ ~~(2)~~	~~(0.01)~~
~~Acquisition-related costs~~ ~~(2)~~	~~(0.23)~~
~~Divestiture-related costs~~ ~~(2)~~	~~(0.01)~~
~~Net earnings from divestitures~~ ~~(2)~~	~~0.01~~

~~Incremental costs due to war in Ukraine~~ ~~(2)~~	~~(0.09)~~
~~Remeasurement of net monetary position~~ ~~(2)~~	~~(0.02)~~



~~Loss on debt extinguishment and related expenses~~ ~~(3)~~	~~(0.07)~~
~~Initial impacts from enacted tax law changes~~ ~~(4)~~	~~(0.01)~~
~~Loss on equity method investment transactions~~ ~~(6)~~	~~(0.01)~~
~~Equity method investee items~~ ~~(6)~~	~~0.01~~

~~Diluted EPS Attributable to Mondelēz International for the~~ ~~Nine Months Ended September 30, 2022~~	$	~~1.54~~

~~(1)Refer to the~~ ~~Non-GAAP Financial Measures~~ ~~section appearing later in this section.~~

~~(2)See the~~ ~~Operating Income~~ ~~table above and the related footnotes for more information.~~

~~Table of Contents~~

~~(3)Refer to Note 8,~~ ~~Debt and Borrowing Arrangements, for more information on the loss on debt extinguishment and related expenses.~~

~~(4)Refer to Note 14,~~ ~~Income Taxes, on the items affecting income taxes.~~

~~(5)Refer to Note 6,~~ ~~Equity Method Investments, for more information on the gain/(loss) on equity method investment transactions.~~

~~(6)~~Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's and KDP equity method investees, such as acquisition and divestiture-related costs and restructuring program costs.

~~(7)Excludes the currency impact on interest expense related to our non-U.S. dollar-denominated debt, which is included in currency translation.~~

~~(8)Refer to Note 11,~~ ~~Stock Plans, for more information on our equity compensation programs and share repurchase program and Note 15,~~ ~~Earnings per Share, for earnings per share weighted-average share information.~~

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Table of Contents

Results of Operations by Reportable Segment

Our operations and management structure are organized into four operating segments:

•Latin America

•AMEA

•Europe

•North America

We manage our operations by region to leverage regional operating scale, manage different and changing business environments more effectively and pursue growth opportunities as they arise across our key markets. Our regional management teams have responsibility for the business, product categories and financial results in the regions.

We use segment operating income to evaluate segment performance and allocate resources. We believe it is appropriate to disclose this measure to help investors analyze segment performance and trends. See Note 16, Segment Reporting, for additional information on our segments and Items Affecting Comparability of Financial Results earlier in this section for items affecting our segment operating results.

Our segment net revenues and earnings were:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
		(in millions)									(in millions)
Net revenues:	Net revenues:									Net revenues:
Latin America	Latin America	$	913	$	751	$	2,615	$	2,089	Latin America	$	1,211	$	826
AMEA	AMEA	1,704		1,629		5,106		4,826		AMEA	1,939		1,867
Europe	Europe	2,649		2,714		8,210		8,035		Europe	3,307		2,935
North America	North America	2,497		2,088		6,870		6,112		North America	2,709		2,136
Net revenues	Net revenues	$	7,763	$	7,182	$	22,801	$	21,062	Net revenues	$	9,166	$	7,764
Earnings before income taxes:	Earnings before income taxes:									Earnings before income taxes:
Operating income:	Operating income:									Operating income:
Latin America	Latin America	$	112	$	91	$	305	$	221	Latin America	$	139	$	103
AMEA	AMEA	257		267		740		842		AMEA	360		272
Europe	Europe	413		508		1,170		1,478		Europe	507		377
North America	North America	465		363		1,337		932		North America	566		418
Unrealized (losses)/gains on hedging activities (mark-to-market impacts)		(186)		132		(268)		270
Unrealized gains/(losses) on hedging activities (mark-to-market impacts)										Unrealized gains/(losses) on hedging activities (mark-to-market impacts)	49		27
General corporate expenses	General corporate expenses	(58)		(35)		(170)		(177)		General corporate expenses	(77)		(50)
Amortization of intangible assets	Amortization of intangible assets	(32)		(32)		(96)		(102)		Amortization of intangible assets	(39)		(32)
Gain on acquisition		—		—		—		9

Acquisition-related costs	Acquisition-related costs	(292)		—		(318)		(24)		Acquisition-related costs	—		(21)
Operating income	Operating income	679		1,294		2,700		3,449		Operating income	1,505		1,094
Benefit plan non-service income	Benefit plan non-service income	30		37		93		135		Benefit plan non-service income	19		33
Interest and other expense, net	Interest and other expense, net	(71)		(82)		(337)		(358)		Interest and other expense, net	(95)		(168)
Gain on marketable securities										Gain on marketable securities	796		—
Earnings before income taxes	Earnings before income taxes	$	638	$	1,249	$	2,456	$	3,226	Earnings before income taxes	$	2,225	$	959

4939

Table of Contents

Latin America


		For the Three Months Ended September 30,									For the Three Months Ended March 31,
		2022		2021		$ change		% change			2023		2022		$ change		% change
		(in millions)									(in millions)
Net revenues	Net revenues	$	913	$	751	$	162	21.6	%	Net revenues	$	1,211	$	826	$	385	46.6	%
Segment operating income	Segment operating income	112		91		21		23.1	%	Segment operating income	139		103		36		35.0	%

		For the Nine Months Ended September 30,
		2022		2021		$ change		% change
		(in millions)
Net revenues		$	2,615	$	2,089	$	526	25.2	%
Segment operating income		305		221		84		38.0	%

Three Months Ended ~~September 30:~~March 31

Net revenues increased ~~$162~~$385 million ~~(21.6%~~(46.6%), due to higher net pricing ~~(25.8~~(31.6 pp), the impact of an acquisition (19.1 pp) and favorable volume/mix ~~(5.8~~(7.4 pp), partially offset by unfavorable currency ~~(8.4~~(9.9 pp) and the impact of divestitures (1.6 pp). Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories, ~~driven~~ primarily byin Argentina, Brazil and Mexico. Favorable volume/mix reflected strong volume growth as the region continued to see increased demand for our snack category products. Favorable volume/mix was driven by gains in candy, biscuits, gum and chocolate, partially offset by declines in refreshment beverages and cheese & grocery. Unfavorable currency impacts were due primarily to the strengthThe November 1, 2022 acquisition of the U.S. dollar relative to most currencies in the region, primarily the Argentinean peso, slightly offset by the strength of a few currencies relative to the U.S. dollar. The impact of divestitures resulted in a year-over-year reduction inRicolino added incremental net revenues of ~~$10 million.~~

~~Segment operating income increased $21~~$156 million (23.1%), primarily due to higher net pricing, favorable volume/mix and lower manufacturing costs due to productivity. These favorable items were partially offset by higher raw material costs, higher other selling, general and administrative expenses, higher advertising and consumer promotion costs, higher remeasurement loss(constant currency basis) in the first quarter of ~~net monetary position, acquisition integration costs incurred in 2022 and unfavorable currency.~~

~~Nine Months Ended September 30:~~

Net revenues increased $526 million (25.2%), due to higher net pricing (21.5 pp) and favorable volume/mix (8.6 pp), partially offset by unfavorable currency (4.3 pp) and the impact of divestitures (0.6 pp). Higher net pricing was reflected across all categories, driven primarily by Argentina, Brazil and Mexico.2023. Favorable volume/mix reflected strong volume growth as the region continued to see increased demand for our snack category products. Favorable volume/mix was driven by gains in gum, biscuits & baked snacks, chocolate, candy and ~~candy,~~cheese & grocery, partially offset by a decline in refreshment ~~beverages and cheese & grocery.~~beverages. Unfavorable currency impacts were primarily due ~~primarily~~ to the strength of the U.S. dollar relative to ~~most~~several currencies in the region, primarily the Argentinean peso and Colombian peso, partially offset by the strength of ~~a few~~several currencies relative to the U.S. dollar, primarily the ~~Brazilian real.~~Mexican peso. The impact of divestitures resulted in a year-over-year decline in net revenues of $6$9 million.

Segment operating income increased ~~$84~~$36 million ~~(38.0%~~(35.0%), primarily due to higher net pricing and favorable volume/~~mix, lower manufacturing costs due to productivity and lower costs incurred for the Simplify to Grow Program.~~mix. These favorable items were partially offset by higher raw material costs, higher ~~advertising and consumer promotion costs, higher~~ other selling, general and administrative expenses, higher advertising and consumer promotion costs, higher remeasurement loss on net monetary position and acquisition integration costs ~~and lapping a prior-year favorable impact from~~incurred in the ~~resolution~~first quarter of ~~a tax matter.~~2023.

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AMEA


		For the Three Months Ended September 30,									For the Three Months Ended March 31,
		2022		2021		$ change		% change			2023		2022		$ change		% change
		(in millions)									(in millions)
Net revenues	Net revenues	$	1,704	$	1,629	$	75	4.6	%	Net revenues	$	1,939	$	1,867	$	72	3.9	%
Segment operating income	Segment operating income	257		267		(10)		(3.7)	%	Segment operating income	360		272		88		32.4	%

		For the Nine Months Ended September 30,
		2022		2021		$ change		% change
		(in millions)
Net revenues		$	5,106	$	4,826	$	280	5.8	%
Segment operating income		740		842		(102)		(12.1)	%

Three Months Ended ~~September 30:~~March 31

Net revenues increased ~~$75~~$72 million ~~(4.6%~~(3.9%), due to ~~favorable volume/mix (8.5 pp) and~~ higher net pricing ~~(6.1~~(8.0 pp) and favorable volume/mix (5.8 pp), partially offset by unfavorable currency ~~(9.0~~(9.9 pp) ~~and the impact of a divestiture (1.0 pp)~~. Favorable volume/mix reflected overall volume gains from increased demand for our snack category products. Favorable volume/mix was driven by gains in biscuits, chocolate, candy and refreshment beverages, partially offset by declines in gum and cheese & grocery. Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories. Unfavorable currency impacts were due to the strength of the U.S. dollar relative to most currencies in the region, including the Indian rupee, Chinese yuan, Australian dollar, South African rand, Egyptian pound and Philippine peso. The impact of the November 1, 2021 divestiture of the packaged seafood business, which was part of our April 1, 2021 acquisition of Gourmet Food, resulted in a year-over-year reduction in net revenues of $16 million.

Segment operating income decreased $10 million (3.7%), primarily due to higher raw material costs, unfavorable currency, higher advertising and consumer promotion costs, an intangible asset impairment charge in 2022 and higher other selling, general and administrative expenses. These unfavorable items were partially offset by higher net pricing, favorable volume/mix and lower manufacturing costs driven by productivity.

~~Nine Months Ended September 30:~~

Net revenues increased $280 million (5.8%), due to favorable volume/mix (7.8 pp), higher net pricing (4.3 pp) and the impact of an acquisition (0.3 pp), partially offset by unfavorable currency (5.9 pp) and the impact of a divestiture (0.7 pp). Favorable volume/mix reflected overall volume gains from increased demand for our snack category products. Favorable volume/mix was driven by gains in chocolate, biscuits & baked snacks, refreshment beverages and candy, partially offset by declines in gum and cheese & grocery and gum. Higher net pricing was reflected across all categories. The April 1, 2021 acquisition of Gourmet Food added incremental net revenues of $15 million (constant currency basis) in the first quarter of 2022.grocery. Unfavorable currency impacts were due to the strength of the U.S. dollar relative to most currencies in the region, including the Indian rupee, Egyptian pound, Chinese yuan, Australian dollar, ~~Indian~~Pakistan rupee ~~Philippine peso,~~and South African Rand, Chinese yuan, Egyptian pound and Japanese yen. The impact of the November 1, 2021 divestiture of the packaged seafood business, which was part of our April 1, 2021 acquisition of Gourmet Food, resulted in a year-over-year reduction in net revenues of $30 million.Rand.

Segment operating income ~~decreased $102~~increased $88 million ~~(12.1%~~(32.4%), primarily due to higher ~~raw material costs,~~net pricing, lapping prior-year intangible asset impairment charges, ~~incurred in 2022, higher advertising and consumer promotion costs, unfavorable currency, higher~~favorable volume/mix, lower other selling, general and administrative expenses and ~~higher~~lower manufacturing costs ~~incurred for the Simplify to Grow Program.~~driven by productivity. These ~~unfavorable~~favorable items were partially offset by higher ~~net pricing, favorable volume/mix~~raw material costs, unfavorable currency, higher advertising and ~~lower manufacturing~~consumer promotion costs ~~driven by productivity.~~and higher fixed asset impairment charges.

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Europe


		For the Three Months Ended September 30,									For the Three Months Ended March 31,
		2022		2021		$ change		% change			2023		2022		$ change		% change
		(in millions)									(in millions)
Net revenues	Net revenues	$	2,649	$	2,714	$	(65)	(2.4)	%	Net revenues	$	3,307	$	2,935	$	372	12.7	%
Segment operating income	Segment operating income	413		508		(95)		(18.7)	%	Segment operating income	507		377		130		34.5	%


		For the Nine Months Ended September 30,
		2022		2021		$ change		% change
		(in millions)
Net revenues		$	8,210	$	8,035	$	175	2.2	%
Segment operating income		1,170		1,478		(308)		(20.8)	%

Three Months Ended ~~September 30:~~

Net revenues decreased $65 million (2.4%), due to unfavorable currency (13.8 pp) and unfavorable volume/mix (4.6 pp), partially offset by higher net pricing (9.8 pp) and the impact of an acquisition (6.2 pp). Unfavorable currency impact reflected the strength of the U.S. dollar relative to most currencies across the region, including the euro, British pound sterling, Turkish lira, Polish zloty and Swedish krona, partially offset by the strength of a few currencies relative to the U.S. dollar, primarily the Russian ruble. Unfavorable volume/mix reflected volume declines driven by disruptions due to pricing negotiations. Unfavorable volume/mix was driven by declines in biscuits, chocolate, cheese & grocery, gum and refreshment beverages, partially offset by a gain in candy. Higher net pricing was reflected across all categories. The January 3, 2022 acquisition of Chipita added incremental net revenues of $167 million (constant currency basis) in the third quarter of 2022.

Segment operating income decreased $95 million (18.7%), primarily due to higher raw material costs, unfavorable volume/mix, unfavorable currency, higher other selling, general and administrative expenses and acquisition integration costs incurred in the third quarter of 2022. These unfavorable items were partially offset by higher net pricing, the impact of an acquisition, a decrease in estimated allowances and reserves associated with incremental costs due to the war in Ukraine and lower manufacturing costs.

~~Nine Months Ended September 30:~~March 31

Net revenues increased ~~$175~~$372 million ~~(2.2%~~(12.7%), due to ~~the impact of acquisitions (6.7 pp),~~ higher net pricing ~~(5.3~~(17.9 pp) and favorable volume/mix ~~(1.5~~(1.0 pp), partially offset by unfavorable currency ~~(11.3~~(6.2 pp). The January 3, 2022 acquisition of Chipita added incremental net revenues of $518 million (constant currency basis) and the March 25, 2021 acquisition of Grenade added incremental net revenues of $22 million (constant currency basis) in the first nine months of 2022. Higher net pricing, driven by input cost-driven pricing actions, was reflected across all categories. Overall, favorable volume/mix was driven by strong volume growth, despite disruptions in the third quarter due to pricing negotiations, as we experienced increased demand for most of our snack category products and our world travel business grew as global travel continued to improve. Favorable volume/mix was driven by gains in chocolate, gum, candy and ~~gum,~~refreshment beverages, partially offset by declines in biscuits & baked snacks and cheese & ~~grocery, biscuits and refreshment beverages.~~grocery. Unfavorable currency impacts reflected the strength of the U.S. dollar relative to most currencies across the region, including the ~~euro,~~ British pound sterling, euro, Turkish lira, ~~Polish zloty,~~Norwegian krone, Ukrainian hryvnya, Swedish krona and ~~Romanian leu,~~Polish zloty, partially offset by the strength of a few currencies relative to the U.S. dollar, primarily the Russian ruble.

Segment operating income ~~decreased $308~~increased $130 million ~~(20.8%~~(34.5%), primarily due to higher ~~raw material costs, unfavorable currency,~~net pricing, lapping the prior-year incremental costs incurred due to the war in Ukraine, ~~higher acquisition integration costs, higher~~lower other selling, general and administrative expenses, lower acquisition integration costs and ~~higher advertising and consumer promotion costs.~~favorable volume/mix. These ~~unfavorable~~favorable items were partially offset by higher ~~net pricing, lapping~~raw material costs, unfavorable currency, higher manufacturing costs, divestiture-related costs incurred in the ~~prior-year unfavorable impact~~first quarter of ~~pension participation changes, the impact of acquisitions, favorable volume/mix, lower~~2023, higher costs incurred for the Simplify to Grow ~~Program~~program and ~~lower manufacturing~~higher advertising and consumer promotion costs.

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North America


		For the Three Months Ended September 30,									For the Three Months Ended March 31,
		2022		2021		$ change		% change			2023		2022		$ change		% change
		(in millions)									(in millions)
Net revenues	Net revenues	$	2,497	$	2,088	$	409	19.6	%	Net revenues	$	2,709	$	2,136	$	573	26.8	%
Segment operating income	Segment operating income	465		363		102		28.1	%	Segment operating income	566		418		148		35.4	%


		For the Nine Months Ended September 30,
		2022		2021		$ change		% change
		(in millions)
Net revenues		$	6,870	$	6,112	$	758	12.4	%
Segment operating income		1,337		932		405		43.5	%

Three Months Ended ~~September 30:~~March 31

Net revenues increased ~~$409~~$573 million ~~(19.6%~~(26.8%), due to higher net pricing ~~(12.6~~(15.0 pp) ~~and~~, the impact of acquisitions ~~(8.0~~(10.2 pp) and favorable volume/mix (2.3 pp), partially offset by unfavorable ~~volume/mix (0.6 pp) and unfavorable~~ currency ~~(0.4~~(0.7 pp). Higher net pricing, driven by input cost-driven pricing actions, was reflected across all ~~categories except gum, driven by pricing actions taken in the first nine months of 2022.~~categories. The August 1, 2022 acquisition of Clif Bar added incremental net revenues of ~~$158 million (at constant currency) and the January 3, 2022 acquisition of Chipita added incremental net revenues of $9~~$218 million in the ~~third~~first quarter of ~~2022. Unfavorable~~2023. Favorable volume/mix was driven by ~~a decline~~gains in biscuits ~~chocolate~~& baked snacks, gum and ~~gum, which primarily reflected the impact of supply chain constraints on volume,~~chocolate, partially offset by ~~gains~~a decline in candy. Unfavorable currency impact was due to the strength of the U.S. dollar relative to the Canadian dollar.

Segment operating income increased ~~$102~~$148 million ~~(28.1%~~(35.4%), primarily due to higher net pricing, the impact of an acquisition, lower costs incurred for the Simplify to Grow Program and ~~the impact of acquisitions. These~~ favorable items were partially offset by higher raw material costs, lapping the prior-year net benefit from acquisition integration costs and contingent consideration adjustments, higher manufacturing costs, inventory step-up charges incurred in 2022, higher advertising and consumer promotion costs, unfavorable volume/~~mix and higher other selling, general and administrative expenses.~~

~~Nine Months Ended September 30:~~

Net revenues increased $758 million (12.4%), due to higher net pricing (10.1 pp) and the impact of acquisitions (3.0 pp), partially offset by unfavorable volume/mix (0.4 pp) and unfavorable currency (0.3 pp). Higher net pricing was reflected across all categories driven by pricing actions taken in the first nine months of 2022. The August 1, 2022 acquisition of Clif Bar added incremental net revenues of $158 million (at constant currency) and the January 3, 2022 acquisition of Chipita added incremental net revenues of $25 million in the first nine months of 2022. Unfavorable volume/mix was driven by a decline in biscuits which primarily reflected the impact of supply chain constraints on volume, mostly offset by gains in candy, gum and chocolate. Unfavorable currency impact was due to the strength of the U.S. dollar relative to the Canadian dollar.

Segment operating income increased $405 million (43.5%), primarily due to higher net pricing, lower costs incurred for the Simplify to Grow Program, lapping a prior-year intangible asset impairment charge and the impact of acquisitions.mix. These favorable items were partially offset by higher raw material costs, higher ~~manufacturing costs, lapping the prior-year net benefit from~~ acquisition integration costs and contingent consideration adjustments, ~~unfavorable volume/mix,~~ higher advertising and consumer promotion costs, ~~inventory step-up charges incurred in 2022 and~~ higher other selling, general and administrative ~~expenses.~~expenses, higher manufacturing costs and higher fixed asset impairment charges.

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Liquidity and Capital Resources

We believe that cash from operations, our revolving credit ~~and term loan~~ facilities, short-term borrowings and our authorized long-term financing will continue to provide sufficient liquidity for our working capital needs, planned capital expenditures and future payments of our contractual, tax and benefit plan obligations and payments for acquisitions, share repurchases and quarterly dividends. We expect to continue to utilize our commercial paper program and ~~available~~ international credit lines as needed. We continually evaluate long-term debt issuances to meet our short- and longer-term funding requirements. We also use intercompany loans with our international subsidiaries to improve financial flexibility. Our investments in JDE Peet's and KDP also provide us additional flexibility. Overall, we do not expect negative effects to our funding sources that would have a material effect on our liquidity, and we continue to monitor our operations in Europe and related effects from the war in Ukraine. To date, we have been successful in generating cash and raising financing as needed. However, if a serious economic or credit market crisis ensues or other adverse developments arise, ~~in connection with the COVID-19 pandemic, war in Ukraine or other circumstances,~~ it could have a material adverse effect on our liquidity, results of operations and financial condition.

Our most significant ongoing short-term cash requirements relate primarily to funding operations (including expenditures for raw materials, labor, manufacturing and distribution, trade and promotions, advertising and marketing, tax liabilities, benefit plan obligations and lease expenses) as well as periodic expenditures for acquisitions, shareholder returns (such as dividend payments and share repurchases) ~~and~~, property, plant and ~~equipment.~~equipment and any significant one-time non-operating items.

Long-term cash requirements primarily relate to funding long-term debt repayments (refer to Note 8, Debt and Borrowing Arrangements), our U.S. tax reform transition tax liability ~~which is payable through 2026,~~ and deferred taxes (refer to Note 16, Income Taxes, in our Annual Report on Form 10-K), our long-term benefit plan obligations (refer to Note 10, Benefit Plans, and Note 11, Benefit Plans, in our Annual report on Form 10-K) and commodity-related purchase commitments and derivative contracts (refer to Note 9, Financial Instruments).

We generally fund short- and long-term cash requirements with cash from operating activities as well as cash proceeds from short- and long-term debt financing (refer to Debt below). We generally do not use equity to fund our ongoing obligations.

Cash ~~Flow:~~Flow

We believe our ability to generate substantial cash from operating activities and readily access capital markets and secure financing at competitive rates are key strengths and give us significant flexibility to meet our short- and long-term financial commitments. Our cash flow activity is noted below:


Nine months ended September 30,		2022		2021
Three months ended March 31,						Three months ended March 31,	2023		2022
Net cash provided by operating activities	Net cash provided by operating activities	$	2,516	$	2,720	Net cash provided by operating activities	$	1,123	$	1,131
Net cash (used in)/provided by investing activities		$	(3,410)	$	106
Net cash provided by/(used in) investing activities						Net cash provided by/(used in) investing activities	$	636	$	(1,441)
Net cash used in financing activities	Net cash used in financing activities	$	(297)	$	(2,971)	Net cash used in financing activities	$	(1,757)	$	(1,280)

Net Cash Provided by Operating ~~Activities:~~Activities

The ~~decrease~~change in net cash provided by operating activities was essentially flat primarily due ~~primarily~~ to ~~lower cash basis net earnings driven in part by the compensation expense charge related to the non-vested ESOP shares acquired in the Clif Bar acquisition, partially offset by lower~~increased year-over-year working capital requirements offset by an increase in cash-basis net earnings. This is largely a result of business growth and ~~lower payments to benefit plans than in the same prior-year period.~~acquisitions completed during 2022.

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Net Cash (Used in)/Provided by Investing ~~Activities:~~Activities

The ~~increase~~improvement in net cash provided by/used in investing activities was largely driven by ~~higher cash payments for acquisitions, including $1.4 billion~~current year proceeds from the KDP share sale (refer to Note 6, Investments) and lapping prior-year cash consideration paid for the Chipita acquisition ~~during January 2022 and $2.6 billion cash consideration paid for the Clif Bar acquisition during August 2022 relative to $833 million paid in the prior-year to acquire Gourmet Food, Grenade and Hu~~ (refer to Note 2, Acquisitions and Divestitures)~~, as well as lower proceeds from sales of equity method investments than in the prior-year period (refer to Note 6,~~ ~~Equity Method Investments), partially offset by proceeds from the settlement and replacement of net investment hedge derivative contracts.~~. We continue to make capital expenditures primarily to modernize manufacturing facilities, ~~support~~implement new product manufacturing and support productivity ~~initiatives and fund strategic priorities.~~initiatives. We expect ~~2022~~2023 capital expenditures to be ~~approximately $0.9~~up to $1.2 billion, including capital expenditures in connection with our Simplify to Grow Program and for funding our strategic priorities. We expect to continue to fund these expenditures with cash from operations.

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Net Cash Used in Financing ~~Activities:~~Activities

The ~~decrease~~increase in cash used in financing activities was primarily due to lower ~~net~~debt proceeds, partially offset by lower debt repayments ~~in 2022 to date as we refinanced debt during the first quarter of 2022 with~~and lower ~~interest rate debt and we lapped higher net long-term debt repayments in the prior-year, partially offset primarily by higher dividends paid~~share repurchases in the first ~~nine~~three months of ~~2022 than in~~2023 compared to the same prior-year period.

~~Supply Chain Financing~~Dividends

~~As part~~We paid dividends of $529 million in the first three months of 2023 and $491 million in the first three months of 2022. The first quarter 2023 dividend of $0.385 per share, declared on February 1, 2023 for shareholders of record as of March 31, 2023, was paid on April 14, 2023. The declaration of dividends is subject to the discretion of our ~~continued efforts~~Board of Directors and depends on various factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of Directors deems relevant to ~~improve our working capital efficiency, we have worked with our suppliers over the past several years to optimize our terms~~its analysis and conditions, which include the extension of payment terms. Our current payment terms with a majority of our suppliers are from 30 to 180 days, which we deem to be commercially reasonable. We also facilitate voluntary supply chain financing (“SCF”) programs through several participating financial institutions. Under these programs, our suppliers, at their sole discretion, determine invoices that they want to sell to participating financial institutions. Our suppliers’ voluntary inclusion of invoices in SCF programs has no bearing on our payment terms or amounts due. Our responsibility is limited to making payments based upon the agreed-upon contractual terms. No guarantees are provided by the Company or any of our subsidiaries under the SCF programs and we have no economic interest in the suppliers’ decision to participate in the SCF programs. Amounts due to our suppliers that elected to participate in the SCF program are included in accounts payable in our consolidated balance sheet. We have been informed by the participating financial institutions that as of September 30, 2022 and September 30, 2021, $2.1 billion and $2.4 billion, respectively, of our outstanding accounts payable relate to suppliers that participate in the SCF programs.making.

~~Guarantees:~~We anticipate that the 2023 distributions will be characterized as dividends under U.S. federal income tax rules. The final determination will be made on an IRS Form 1099–DIV issued in early 2024.

Guarantees

As discussed in Note 12, Commitments and Contingencies, we enter into third-party guarantees primarily to cover the long-term obligations of our vendors. As part of these transactions, we guarantee that third parties will make contractual payments or achieve performance measures. At ~~September 30, 2022,~~March 31, 2023, we had no material third-party guarantees recorded on our condensed consolidated balance sheet. Guarantees do not have, and we do not expect them to have, a material effect on our liquidity.

~~Debt:~~Debt

The nature and amount of our long-term and short-term debt and the proportionate amount of each varies as a result of current and expected business requirements, market conditions and other factors. Due to seasonality, in the first and second quarters of the year, our working capital requirements grow, increasing the need for short-term financing. The second half of the year typically generates higher cash flows. As such, we may issue commercial paper or secure other forms of financing throughout the year to meet short-term working capital or other financing needs.

~~Refer to Note 8,~~ ~~Debt and Borrowing Arrangements~~, for details of our debt activity during the first nine months of 2022. We fund ongoing debt maturities and other long-term obligations using cash on hand or we may refinance obligations with long-term debt or short-term financing (such as our commercial paper borrowings) depending on financing available, timing considerations, flexibility to raise funding and the cost of financing.

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At its July 2022 meeting, the Board of Directors approved a new $2 billion long-term financing authorization that replaced the prior long-term financing authorization of $7 billion. As of ~~September 30, 2022,~~March 31, 2023, $1.5 billion of the long-term financing authorization remained available. ~~Refer to Note 8,~~ ~~Debt and Borrowing Arrangements~~.

Our total debt was ~~$21.7~~$22.2 billion at ~~September 30, 2022~~March 31, 2023 and ~~$19.5~~$22.9 billion at December 31, ~~2021.~~2022. Our debt-to-capitalization ratio was ~~0.45~~0.44 at ~~September 30, 2022~~March 31, 2023 and ~~0.41~~0.46 at December 31, ~~2021.~~2022. At ~~September 30, 2022,~~March 31, 2023, the weighted-average term of our outstanding long-term debt was ~~8.4~~8.2 years. Our average daily commercial paper borrowings outstanding were ~~$1.4~~$2.8 billion in the first ~~nine~~three months of ~~2022~~2023 and ~~$0.5~~$1.2 billion in the first ~~nine~~three months of 2021. We had commercial paper outstanding totaling $1.7 billion as of September 30, 2022 and $0.2 billion as of December 31, 2021. We expect to continue to use cash or commercial paper to finance various short-term financing needs. Through September 30, 2022, we continue to comply with our debt covenants.2022.

One of our subsidiaries, Mondelez International Holdings Netherlands B.V. (“MIHN”), has outstanding debt. The operations held by MIHN generated approximately ~~72.4%~~72.8% (or ~~$16.5~~$6.7 billion) of the ~~$22.8~~$9.2 billion of consolidated net revenue in the ~~nine~~three months ended ~~September 30, 2022.~~March 31, 2023. The operations held by MIHN represented approximately ~~82.0%~~82.7% (or ~~$21.9 billion) of the $26.7 billion of net assets as of September 30, 2022 and 79.2% (or $22.4~~$23.4 billion) of the $28.3 billion of net assets as of ~~December~~March 31, ~~2021.~~2023.

Refer to Note 8, Debt and Borrowing Arrangements, for more information on our debt and debt covenants.

Commodity Trends

We regularly monitor worldwide supply, commodity cost and currency trends so we can cost-effectively secure ingredients, packaging and fuel required for production. During the first ~~nine~~three months of ~~2022,~~2023, the primary drivers of the increase in our aggregate commodity costs were higher ~~packaging,~~ dairy, energy, edible oils, ~~energy,~~sugar, grains, ~~sugar,~~packaging, nuts, cocoa and other ingredient costs, ~~partially offset by lower cocoa costs and favorable~~as well as unfavorable year-over-year currency exchange transaction costs on imported materials.

A number of external factors such as the ~~COVID-19~~current macroeconomic environment, including global ~~pandemic,~~inflation, effects of the war in Ukraine, climate and weather conditions, commodity, transportation and labor market conditions, currency fluctuations and the effects of governmental agricultural or other programs affect the cost and availability of raw materials and agricultural materials used in our products. We address higher commodity costs and currency impacts primarily through hedging, higher pricing and manufacturing and overhead cost control. We use hedging techniques to limit the impact of fluctuations in the cost of our principal raw materials; however, we may not be able to fully

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hedge against commodity cost changes, such as dairy, where there is a limited ability to hedge, and our hedging strategies may not protect us from increases in specific raw material costs. Due to competitive or market conditions, planned trade or promotional incentives, fluctuations in currency exchange rates or other factors, our pricing actions may also lag commodity cost changes temporarily.

As a result of international supply chain, transportation and labor market disruptions and generally higher commodity, transportation and labor costs in the first ~~nine~~three months of ~~2022,~~2023, we expect price volatility and a higher aggregate cost environment to ~~continue in the remainder of 2022.~~continue. While the costs of our principal raw materials fluctuate, we believe there will continue to be an adequate supply of the raw materials we use and that they will generally remain available.

~~Equity and Dividends~~

~~Stock Plans and Share Repurchases:~~

~~See Note 11,~~ ~~Stock Plans, to our condensed consolidated financial statements and Part II, Item 2,~~ ~~Unregistered Sales of Equity Securities and Use of Proceeds, for more information on our stock plans, grant activity and share repurchase program for the nine months ended September 30, 2022.~~

As of September 30, 2022, our Board of Directors has authorized share repurchases up to $23.7 billion through December 31, 2023. Under this program, we have repurchased approximately $21.9 billion of shares through September 30, 2022. Of which, we repurchased $1.8 billion in the first nine months of 2022, $2.1 billion in 2021, $1.4 billion in 2020 and a total of $16.5 billion in the years 2013 through 2019, at a weighted-average cost per share.

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The number of shares that we ultimately repurchase under our share repurchase program may vary depending on numerous factors, including share price and other market conditions, our ongoing capital allocation planning, levels of cash and debt balances, other demands for cash, such as acquisition activity, general economic or business conditions and Board of Directors and management discretion. Additionally, our share repurchase activity during any particular period may fluctuate. We may accelerate, suspend, delay or discontinue our share repurchase program at any time, without notice.

~~Dividends:~~

We paid dividends of $1,457 million in the first nine months of 2022 and $1,337 million in the first nine months of 2021. The third quarter 2022 dividend of $0.385 per share, declared on July 26, 2022 for shareholders of record as of September 30, 2022, was paid on October 14, 2022. The declaration of dividends is subject to the discretion of our Board of Directors and depends on various factors, including our net earnings, financial condition, cash requirements, future prospects and other factors that our Board of Directors deems relevant to its analysis and decision making.

~~We anticipate that the 2022 distributions will be characterized as dividends under U.S. federal income tax rules. The final determination will be made on an IRS Form 1099–DIV issued in early 2023.~~

Significant Accounting Estimates

We prepare our condensed consolidated financial statements in conformity with U.S. GAAP. The preparation of these financial statements requires the use of estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from those estimates and assumptions. Our significant accounting policies are described in Note 1 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022. Our significant accounting estimates are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022. See also Note 1, Basis of Presentation, in this report.

~~New Accounting Guidance:~~

~~See Note 1,~~ ~~Basis of Presentation, for a discussion of new accounting standards.~~

~~Contingencies:~~

~~See Note 12,~~ ~~Commitments and Contingencies, and Part II, Item 1.~~ ~~Legal Proceedings,~~ ~~for a discussion of contingencies.~~

Forward-Looking Statements

This report contains ~~a number~~“forward-looking statements” within the meaning of ~~forward-looking statements. Words,~~Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among others, the words, and variations of words, ~~such as~~ “will,” “may,” “expect,” “would,” “could,” “might,” “intend,” “plan,” “believe,” “likely,” “estimate,” “anticipate,” “objective,” “predict,” “project,” “drive,” “seek,” “aim,” ~~"target,"~~“target,” “potential,” ~~“outlook” and~~“commitment,” “outlook,” “continue” or any other similar expressions are intended to identify our forward-looking statements, including but not limited to statements about: the impact on our business of the war in Ukraine and current and future sanctions imposed by governments or other authorities, including the impact on matters such as costs, markets, the global economic environment, availability of commodities, demand, supplying our Ukraine business's customers and consumers, impairments, continuation of and our ability to control our operating activities and businesses in Russia and Ukraine, and our operating results; the impact of the COVID-19 pandemic and related disruptions on our business including consumer demand, costs, product mix, our strategic initiatives, our and our partners’ global supply chains, operations, technology and assets, and our financial performance; price volatility, inflation and pricing actions; our strategic priorities and growth strategy; our future performance, including our future revenue and earnings growth; plans to reshape our portfolio and extend our leadership positions in chocolate and biscuits as well as baked snacks; plans to divest our developed market gum and global ~~Halls~~ businesses; our strategic transactions and initiatives; our leadership position in snacking; political, business and economic conditions and volatility; volatility in global consumer, commodity, supply, transportation, labor and currency; the cost environment, including higher labor, customer service, commodity, operating, transportation and other costs; volatility in the natural gas and electricity markets in Europe; consumer behavior, consumption and demand trends and our business in developed and emerging markets, our channels, our brands and our categories; our tax rate, tax positions, tax proceedings, tax liabilities, valuation allowances and the impact on us of potential U.S. and global tax reform; advertising and promotion bans and restrictions in the U.K.; the costs of, timing of expenditures under and completion of our restructuring program; commodity prices, supply and availability; our investments and our

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ownership interests in those investments, including JDE Peet's and KDP; innovation; currency exchange rates, controls and restrictions, volatility in foreign currencies and the effect of currency translation on our results of operations; the application of highly inflationary accounting for our subsidiaries in Argentina and Türkiye and the potential for and impacts from currency devaluation in other countries; the outcome and effects on us of legal proceedings and government investigations; the estimated value of goodwill and intangible assets; amortization expense for intangible assets; impairment of goodwill and intangible assets and our projections of operating results and other factors that may affect our impairment testing; our accounting estimates and judgments and the impact of new accounting pronouncements; pension expenses, contributions and assumptions; our ability to prevent and respond to cybersecurity breaches and disruptions; our liquidity, funding sources and uses of funding, including debt issuances and our use of commercial paper and international credit lines; our capital structure, credit availability and our ability to raise capital, and the impact of market disruptions on us, our counterparties and our business partners; the planned phase out of London Interbank Offered Rates and transition to other interest rate benchmarks; our risk management program, including the use of financial instruments and the impacts and effectiveness of our hedging activities; working capital; capital expenditures and funding; funding of debt maturities, acquisitions and other obligations; share repurchases; dividends; long-term value for our shareholders; guarantees; the characterization of 2022 distributions as dividends; compliance with our debt covenants; and our contractual and other obligations.words.

~~These~~Although we believe that the expectations reflected in any of our forward-looking statements ~~involve~~are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our ~~control, and many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic, including the spread of new variants of COVID-19.~~control. Important factors that could cause our actual results or performance to differ materially from those ~~described~~contained in or implied by our forward-looking statements include, but are not limited to, the following:

•weakness in macroeconomic conditions in our markets, including as a result of inflation (and related monetary policy actions by governments in response to inflation), instability of certain financial institutions, volatility of commodity and other input costs and availability of commodities;

•geopolitical uncertainty, including the impact of ongoing or new developments in the war in Ukraine, related current and future sanctions imposed by governments and other authorities and related impacts, including on our business ~~growth,~~operations, employees, reputation, ~~prospects,~~brands, financial condition ~~operating~~and results ~~(including components~~ of ~~our financial results), cash flows and liquidity;~~ operations;

•global or regional health pandemics or epidemics, including COVID-19;

•competition and our response to channel shifts and pricing and other competitive pressures;

•pricing actions;

•promotion and protection of our reputation and brand image;

•weakness in consumer spending and/or changes in consumer preferences and demand and our ability to predict, identify, interpret and meet these changes;

•risks from operating globally, including in emerging markets, ~~including~~such as political, economic and regulatory risks; ~~changes in currency exchange rates, controls~~

•the outcome and ~~restrictions; volatility~~effects on us of ~~commodity~~legal and ~~other input costs~~tax proceedings and availability of commodities; weakness in economic conditions; weakness in consumer spending; inflation (and related monetary policy actions by governments in response to inflation); pricing actions; tax mattersgovernment investigations, including ~~changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes;~~ the European Commission legal matter;

•use of information technology and ~~third-party~~third party service providers;

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•unanticipated disruptions to our business, such as malware incidents, cyberattacks or other security breaches, and ~~our compliance with privacy~~supply, commodity, labor and data security laws; competition and our response to channel shifts and pricing and other competitive pressures; promotion and protection of our reputation and brand image; changes in consumer preferences and demand and our ability to innovate and differentiate our products; the restructuring program and our other transformation initiatives not yielding the anticipated benefits; changes in the assumptions on which the restructuring program is based; management of our workforce and shifts in labor availability; consolidation of retail customers and competition with retailer and other economy brands; changes in our relationships with customers, suppliers or distributors; compliance with legal, regulatory, tax and benefit laws and related changes, claims or actions; the impact of climate change on our supply chain and operations; transportation constraints;

•our ability to identify, complete, manage and realize the full extent of the benefits, cost savings or synergies presented by strategic transactions, including our recently completed acquisitions of Ricolino, Clif Bar, Chipita, Gourmet Food, Grenade ~~Clif Bar~~ and ~~Ricolino; significant~~ Hu, and the anticipated closing of our planned divestiture of our developed market gum business in North America and Europe;

•our investments and our ownership interests in those investments, including JDE Peet's and KDP;

•the restructuring program and our other transformation initiatives not yielding the anticipated benefits;

•changes in ~~valuation factors that may adversely affect~~the assumptions on which the restructuring program is based;

•the impact of climate change on our ~~impairment testing~~supply chain and operations;

•consolidation of ~~goodwill~~retail customers and ~~intangible assets;~~ competition with retailer and other economy brands;

•changes in our relationships with customers, suppliers or distributors;

•management of our workforce and shifts in labor availability or labor costs;

•compliance with legal, regulatory, tax and benefit laws and related changes, claims or actions;

•perceived or actual product quality issues or product recalls;

•failure to maintain effective internal control over financial reporting or disclosure controls and procedures;

•our ability to protect our intellectual property and intangible assets;

•tax matters including changes in tax laws and rates, disagreements with taxing authorities and imposition of new taxes;

•changes in currency exchange rates, controls and restrictions;

•volatility of and access to capital or other markets, the effectiveness of our cash management programs and our liquidity;

•pension costs; ~~the expected discontinuance~~

•significant changes in valuation factors that may adversely affect our impairment testing of ~~London Interbank Offered Rates and transition to any other interest rate benchmark; our ability to protect our intellectual property~~goodwill and intangible assets; and

•the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including our ~~most recently filed~~ Annual Report on Form 10-K for the year ended December 31, 2022 and subsequent Quarterly Reports on Form 10-Q.

There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report except as required by applicable law or regulation. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

Non-GAAP Financial Measures

We use non-GAAP financial information and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results and provide additional insight and transparency on how we evaluate our business. We use non-GAAP financial measures to budget, make operating and strategic decisions and evaluate our performance. We have detailed the non-GAAP

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adjustments that we make in our non-GAAP definitions below. The adjustments generally fall within the following categories: acquisition & divestiture activities, gains and losses on intangible asset sales and non-cash impairments, major program restructuring activities, constant currency and related adjustments, major program financing and hedging activities and other major items affecting comparability of operating results. We believe the non-GAAP measures should always be considered along with the related U.S. GAAP financial measures. We have provided the reconciliations between the U.S. GAAP and non-GAAP financial measures below, and we also discuss our underlying U.S. GAAP results throughout our Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.

Our primary non-GAAP financial measures are listed below and reflect how we evaluate our current and prior-year operating results. As new events or circumstances arise, these definitions could change. When our definitions change, we provide the updated definitions and present the related non-GAAP historical results on a comparable basis (1).

•“Organic Net Revenue” is defined as net revenues excluding the impacts of acquisitions, divestitures (2) and currency rate fluctuations (3). We also evaluate Organic Net Revenue growth from emerging markets and developed markets.

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•Our emerging markets include our Latin America region in its entirety; the AMEA region, excluding Australia, New Zealand and Japan; and the following countries from the Europe region: Russia, Ukraine, Türkiye, Kazakhstan, Georgia, Poland, Czech Republic, Slovak Republic, Hungary, Bulgaria, Romania, the Baltics and the East Adriatic countries.

•Our developed markets include the entire North America region, the Europe region excluding the countries included in the emerging markets definition, and Australia, New Zealand and Japan from the AMEA region.

•“Adjusted Operating Income” is defined as operating income excluding the impacts of the Simplify to Grow Program (4); gains or losses (including non-cash impairment charges) on goodwill and intangible assets; divestiture (2) or acquisition gains or losses, divestiture-related costs (5), acquisition-related costs (6), and acquisition integration costs and contingent consideration adjustments (7); inventory step-up charges (8); the operating results of divestitures (2); remeasurement of net monetary position (9); mark-to-market impacts from commodity, forecasted currency and equity method investment transaction derivative contracts (10); impact from resolution of tax matters (11); 2017 malware incident net recoveries; incremental costs due to the war in Ukraine (12); impact from the European Commission legal matter (13): impact from pension participation changes ~~(13)~~(14); and costs associated with the JDE Peet's transaction. We also present “Adjusted Operating Income margin,” which is subject to the same adjustments as Adjusted Operating Income. We also evaluate growth in our Adjusted Operating Income on a constant currency basis (3).

•“Adjusted EPS” is defined as diluted EPS attributable to Mondelēz International from continuing operations excluding the impacts of the items listed in the Adjusted Operating Income definition as well as losses on debt extinguishment and related expenses; gains or losses on interest rate swaps no longer designated as accounting cash flow hedges due to changed financing and hedging plans; net earnings from divestitures (2); mark-to-market unrealized gains or losses and realized gains or losses from marketable securities (15); initial impacts from enacted tax law changes ~~(14)~~(16); and gains or losses on equity method investment transactions. Similarly, within Adjusted EPS, our equity method investment net earnings exclude our proportionate share of our investees’ significant operating and non-operating items (15). We also evaluate growth in our Adjusted EPS on a constant currency basis (3).

(1)When items no longer impact our current or future presentation of non-GAAP operating results, we remove these items from our non-GAAP definitions. In the first quarter of ~~2022,~~2023, we added to the non-GAAP definition for divestitures the inclusion of changes from equity method investment accounting to accounting for equity interests with readily determinable fair values (“marketable securities”; refer to footnote (2) below). In addition, we added to the non-GAAP definitions the exclusion of ~~incremental costs due to the war in Ukraine (refer to footnote (12) below), in the second quarter of 2022, we added to the non-GAAP definitions the exclusion of costs incurred~~gains or losses associated with ~~our publicly-announced processes to sell businesses (refer to~~marketable securities (see footnote ~~(5) below) and in the third quarter of 2022, we added to the non-GAAP definitions the exclusion of inventory step-up charges associated with acquisitions (refer to footnote (8)~~(15) below).

(2)Divestitures include completed sales of businesses, exits of major product lines upon completion of a sale or licensing agreement, ~~and~~ the partial or full sale of an equity method investment ~~such as KDP or JDE Peet's.~~and changes from equity method investment accounting to accounting for marketable securities. As we record our share of ~~KDP and~~ JDE Peet’s ongoing earnings on a one-quarter lag basis, any ~~KDP or~~ JDE Peet’s ownership reductions are reflected as divestitures within our non-GAAP results the following quarter.

(3)Constant currency operating results are calculated by dividing or multiplying, as appropriate, the current-period local currency operating results by the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period.

(4)Non-GAAP adjustments related to the Simplify to Grow Program reflect costs incurred that relate to the objectives of our program to transform our supply chain network and organizational structure. Costs that do not meet the program objectives are not reflected in the non-GAAP adjustments.

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(5)Divestiture-related costs, which includes costs incurred in relation to the preparation and completion (including one-time costs such as severance related to elimination of stranded costs) of our divestitures as defined in footnote (2), also includes costs incurred associated with our publicly-announced processes to sell businesses. We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

(6)Acquisition-related costs, which includes transaction costs such as third party advisor, investment banking and legal fees, also includes one-time compensation expense related to the buyout of non-vested ESOP shares. We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

(7)Acquisition integration costs and contingent consideration adjustments include one-time costs related to the integration of acquisitions as well as any adjustments made to the fair market value of contingent compensation liabilities that have been previously booked for earn-outs related to acquisitions that do not relate to employee compensation expense. We exclude these items to better facilitate comparisons of our underlying operating performance across periods.

(8)In the third quarter of 2022, we began to exclude the one-time inventory step-up charges associated with acquired companies related to the fair market valuation of the acquired inventory. We exclude this item to better facilitate comparisons of our underlying operating performance across periods.

(9)In connection with our applying highly inflationary accounting (refer to Note 1, Basis of Presentation) for Argentina (beginning in the third quarter of 2018) and Türkiye (beginning in the second quarter of 2022), we exclude the related remeasurement gains or losses related to remeasuring net monetary assets or liabilities denominated in the local currency to the U.S. dollar during the

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periods presented to be consistent with our prior accounting for these remeasurement gains/losses for Venezuela when it was subject to highly inflationary accounting prior to deconsolidation in 2015.

(10)We exclude unrealized gains and losses (mark-to-market impacts) from outstanding commodity and forecasted currency and equity method investment transaction derivative contracts from our non-GAAP earnings measures. The mark-to-market impacts of commodity and forecasted currency transaction derivatives are excluded until such time that the related exposures impact our operating results. Since we purchase commodity and forecasted currency transaction contracts to mitigate price volatility primarily for inventory requirements in future periods, we make this adjustment to remove the volatility of these future inventory purchases on current operating results to facilitate comparisons of our underlying operating performance across periods. We exclude equity method investment transaction derivative contract settlements as they represent protection of value for future divestitures.

(11)Refer to Note 12, Commitments and Contingencies – Tax Matters, in this report, and Note 14, Commitments and Contingencies –Tax Matters, in our Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

(12)In February 2022, Russia began a military invasion of Ukraine and we stopped our production and closed our facilities in Ukraine. We began to incur incremental costs directly related to the war including asset impairments, such as property and inventory losses, higher expected allowances for uncollectible accounts receivable and committed compensation. We have isolated and exclude these costs and related impacts as well as subsequent recoveries from our operating results to facilitate evaluation and comparisons of our ongoing results. Incremental costs related to increasing operations in other primarily European facilities are not included with these costs.

(13)In the fourth quarter of 2022, we began to exclude the impact from the European Commission legal matter. In November 2019, the European Commission informed us that it initiated an investigation into our alleged infringement of European Union competition law through certain practices allegedly restricting cross-border trade within the European Economic Area. On January 28, 2021, the European Commission announced it had taken the next procedural step in its investigation and opened formal proceedings. We have been cooperating with the investigation and are currently engaged in discussions with the European Commission in an effort to reach a negotiated, proportionate resolution to this matter. As of December 31. 2022, we recorded an estimate of the possible cost to resolve this matter. Due to the unique nature of this matter, we believe it to be infrequent and unusual and therefore exclude it to better facilitate comparisons of our underlying operating performance across periods. Refer to Note 12, Commitments and Contingencies.

(14)The impact from pension participation changes represents the charges incurred when employee groups are withdrawn from multiemployer pension plans and other changes in employee group pension plan participation. We exclude these charges from our non-GAAP results because those amounts do not reflect our ongoing pension obligations. See Note 10, Benefit Plans, for more information on the multiemployer pension plan withdrawal.

~~(14)~~(15)In the first quarter of 2023, we began to exclude mark-to-market unrealized gains or losses, as well as realized gains or losses, associated with our marketable securities from our non-GAAP earnings measures. These marketable securities gains or losses are not indicative of underlying operations and are excluded to better facilitate comparisons of our underlying operating performance across periods.

(16)We have excluded the initial impacts from enacted tax law changes. Initial impacts include items such as the remeasurement of deferred tax balances and the transition tax from the 2017 U.S. tax reform. We exclude initial impacts from enacted tax law changes from our Adjusted EPS as they do not reflect our ongoing tax obligations under the enacted tax law changes. ~~Refer to our Annual Report on Form 10-K for the year ended December 31, 2021 for more information on the impact of Swiss and U.S. tax reform.~~

~~(15)~~(17)We have excluded our proportionate share of our equity method investees’ significant operating and non-operating items such as acquisition and ~~divestiture related~~divestiture-related costs, restructuring program costs and initial impacts from enacted tax law changes, in order to provide investors with a comparable view of our performance across periods. Although we have shareholder rights and board representation commensurate with our ownership interests in our equity method investees and review the underlying operating results and significant operating and non-operating items each reporting period, we do not have direct control over their operations or resulting revenue and expenses. Our use of equity method investment net earnings on an adjusted basis is not intended to imply that we have any such control. Our U.S. GAAP “diluted EPS attributable to Mondelēz International from continuing operations” includes all of the investees’ significant operating and non-operating items.

We believe that the presentation of these non-GAAP financial measures, when considered together with our U.S. GAAP financial measures and the reconciliations to the corresponding U.S. GAAP financial measures, provides you with a more complete understanding of the factors and trends affecting our business than could be obtained absent these disclosures. Because non-GAAP financial measures vary among companies, the non-GAAP financial measures presented in this report may not be comparable to similarly titled measures used by other companies. Our use of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for any U.S. GAAP financial measures. A limitation of these non-GAAP financial measures is they exclude items detailed below that have an impact on our U.S. GAAP reported results. The best way this limitation can be addressed is by evaluating our non-GAAP financial measures in combination with our U.S. GAAP reported results and carefully evaluating the following tables that reconcile U.S. GAAP reported figures to the non-GAAP financial measures in this Form 10-Q.

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Organic Net ~~Revenue:~~Revenue

Applying the definition of “Organic Net Revenue,” the adjustments made to “net revenues” (the most comparable U.S. GAAP financial measure) were to exclude the impact of currency, acquisitions and divestitures. We believe that Organic Net Revenue reflects the underlying growth from the ongoing activities of our business and provides improved comparability of results. We also evaluate our Organic Net Revenue growth from emerging markets and developed markets, and these underlying measures are also reconciled to U.S. GAAP below.


		For the Three Months Ended September 30, 2022						For the Three Months Ended September 30, 2021							For the Three Months Ended March 31, 2023						For the Three Months Ended March 31, 2022
		Emerging Markets		Developed Markets		Total		Emerging Markets		Developed Markets		Total			Emerging Markets		Developed Markets		Total		Emerging Markets		Developed Markets		Total
		(in millions)						(in millions)							(in millions)						(in millions)
Net Revenues	Net Revenues	$	3,094	$	4,669	$	7,763	$	2,584	$	4,598	$	7,182	Net Revenues	$	3,598	$	5,568	$	9,166	$	2,964	$	4,800	$	7,764
Impact of currency	Impact of currency	232		358		590		—		—		—		Impact of currency	258		207		465		—		—		—
Impact of acquisitions	Impact of acquisitions	(125)		(209)		(334)		—		—		—		Impact of acquisitions	(156)		(218)		(374)		—		—		—
Impact of divestitures	Impact of divestitures	(1)		—		(1)		(11)		(16)		(27)		Impact of divestitures	—		—		—		(9)		—		(9)
Organic Net Revenue	Organic Net Revenue	$	3,200	$	4,818	$	8,018	$	2,573	$	4,582	$	7,155	Organic Net Revenue	$	3,700	$	5,557	$	9,257	$	2,955	$	4,800	$	7,755

For the Nine Months Ended September 30, 2022 For the Nine Months Ended September 30, 2021
Emerging
Markets Developed
Markets Total Emerging
Markets Developed
Markets Total
(in millions) (in millions)
Net Revenues $ 8,864 $ 13,937 22,801 $ 7,440 $ 13,622 $ 21,062
Impact of currency 507 798 1,305 — — —
Impact of acquisitions (376) (362) (738) — — —
Impact of divestitures (22) — (22) (28) (30) (58)
Organic Net Revenue $ 8,973 $ 14,373 $ 23,346 $ 7,412 $ 13,592 $ 21,004

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Adjusted Operating ~~Income:~~Income

Applying the definition of “Adjusted Operating Income,” the adjustments made to “operating income” (the most comparable U.S. GAAP financial measure) were to exclude the impacts of the Simplify to Grow Program; intangible asset impairment charges; mark-to-market impacts from commodity, forecasted currency and equity method investment transaction derivative contracts; acquisition integration costs and contingent consideration adjustments; ~~inventory step-up charges:~~ acquisition-related costs; divestiture-related costs; operating income from ~~divestitures, gain on an acquisition;~~divestitures; incremental costs due to the war in Ukraine; and the remeasurement of net monetary ~~position; impact from pension participation changes; and impact from resolution of tax matters.~~position. We also evaluate Adjusted Operating Income on a constant currency basis. We believe these measures provide improved comparability of underlying operating results.


		For the Three Months Ended September 30,									For the Three Months Ended March 31,
		2022		2021		$ Change		% Change			2023		2022		$ Change		% Change
		(in millions)									(in millions)
Operating Income	Operating Income	$	679	$	1,294	$	(615)	(47.5)	%	Operating Income	$	1,505	$	1,094	$	411	37.6	%
Simplify to Grow Program (1)	Simplify to Grow Program (1)	16		127		(111)				Simplify to Grow Program (1)	35		31		4
Intangible asset impairment charge (2)	Intangible asset impairment charge (2)	23		—		23				Intangible asset impairment charge (2)	—		78		(78)
Mark-to-market losses/(gains) from derivatives (3)		186		(132)		318
Mark-to-market gains from derivatives (3)										Mark-to-market gains from derivatives (3)	(49)		(27)		(22)
Acquisition integration costs and contingent consideration adjustments (4)	Acquisition integration costs and contingent consideration adjustments (4)	27		(57)		84				Acquisition integration costs and contingent consideration adjustments (4)	51		32		19
Inventory step-up		20		—		20

Acquisition-related costs (4)	Acquisition-related costs (4)	292		—		292				Acquisition-related costs (4)	—		21		(21)

Divestiture-related costs (4)	Divestiture-related costs (4)	6		—		6				Divestiture-related costs (4)	30		1		29
Operating income from divestitures (4)	Operating income from divestitures (4)	—		(6)		6				Operating income from divestitures (4)	—		(1)		1
Incremental costs due to war in Ukraine (5)	Incremental costs due to war in Ukraine (5)	(7)		—		(7)				Incremental costs due to war in Ukraine (5)	(3)		143		(146)
Remeasurement of net monetary position (5)	Remeasurement of net monetary position (5)	11		2		9				Remeasurement of net monetary position (5)	12		5		7
Impact from pension participation changes (6)		—		2		(2)

Adjusted Operating Income	Adjusted Operating Income	$	1,253	$	1,230	$	23	1.9	%	Adjusted Operating Income	$	1,581	$	1,377	$	204	14.8	%
Unfavorable currency translation	Unfavorable currency translation	95		—		95				Unfavorable currency translation	81		—		81
Adjusted Operating Income (constant currency)	Adjusted Operating Income (constant currency)	$	1,348	$	1,230	$	118	9.6	%	Adjusted Operating Income (constant currency)	$	1,662	$	1,377	$	285	20.7	%

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For the Nine Months Ended
September 30,
2022 2021 $ Change % Change
(in millions)
Operating Income $ 2,700 $ 3,449 $ (749) (21.7) %
Simplify to Grow Program (1)
69 381 (312)
Intangible asset impairment charges (2)
101 32 69
Mark-to-market losses/(gains) from derivatives (3)
268 (270) 538
Acquisition integration costs and
contingent consideration adjustments (4)
96 (54) 150
Inventory step-up (4)
20 — 20
Acquisition-related costs (4)
318 24 294
Gain on acquisition (4)
— (9) 9
Divestiture-related costs (4)
12 — 12
Operating income from divestitures (4)
(4) (11) 7
Incremental costs due to war in Ukraine (5)
121 — 121
Remeasurement of net monetary position (5)
26 10 16
Impact from pension participation changes (6)
— 47 (47)
Impact from resolution of tax matters (7)
— (5) 5
Adjusted Operating Income $ 3,727 $ 3,594 $ 133 3.7 %
Unfavorable currency translation 249 — 249
Adjusted Operating Income (constant currency) $ 3,976 $ 3,594 $ 382 10.6 %

(1)Refer to Note 7, Restructuring Program, for more information.

(2)Refer to Note 5, Goodwill and Intangible Assets, for more information.

(3)Refer to Note 9, Financial Instruments, Note 16, Segment Reporting, and the Non-GAAP Financial Measures section for more information on the unrealized gains/losses on commodity, forecasted currency and equity method investment transaction derivatives.

(4)Refer to Note 2, Acquisitions and Divestitures, for more information on the November 1, 2022 acquisition of Ricolino, August 1, 2022 acquisition of Clif Bar and the January 3, 2022 acquisition of Chipita, the November 1, 2021 sale of MaxFoods Pty Ltd, the April 1, 2021 acquisition of Gourmet Food Holdings Pty Ltd, the March 25, 2021 acquisition of a majority interest in Grenade and the January 4, 2021 acquisition of the remaining 93% of equity in Hu Master Holdings.Chipita.

(5)Refer to Note 1, Basis of Presentation, for information on our accounting for the war in Ukraine and our application of highly inflationary accounting for Argentina and Türkiye.

~~(6)Refer to Note 10,~~ ~~Benefit Plans, for more information.~~

~~(7)Refer to Note 12,~~ ~~Commitments and Contingencies, for more information.~~

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Adjusted ~~EPS:~~EPS

Applying the definition of “Adjusted EPS,” (1) the adjustments made to “diluted EPS attributable to Mondelēz International” (the most comparable U.S. GAAP financial measure) were to exclude the impacts of the items listed in the Adjusted Operating Income tables above as well as net earnings from divestitures; losses on debt extinguishment and related expenses; ~~initial impacts from enacted tax law changes;~~gains or losses on marketable securities; gains or losses on equity method investment transactions; and our proportionate share of significant operating and non-operating items recorded by our JDE Peet's ~~and KDP~~ equity method ~~investees.~~investee. We also evaluate Adjusted EPS on a constant currency basis. We believe Adjusted EPS provides improved comparability of underlying operating results.

For the Three Months Ended
September 30,
2022 2021 $ Change % Change
Diluted EPS attributable to Mondelēz International $ 0.39 $ 0.89 $ (0.50) (56.2) %
Simplify to Grow Program (2)
0.01 0.06 (0.05)
Intangible asset impairment charge (2)
0.01 — 0.01
Mark-to-market losses/(gains) from derivatives (2)
0.07 (0.08) 0.15
Acquisition integration costs and
contingent consideration adjustments (2)
0.02 (0.03) 0.05
Inventory step-up 0.01 — 0.01
Acquisition-related costs (2)
0.21 — 0.21
Net earnings from divestitures (3)
— (0.01) 0.01
Remeasurement of net monetary position (2)
0.01 — 0.01
Initial impacts from enacted tax law changes (4)
0.01 — 0.01
Loss/(gain) on equity method investment transactions (5)
— (0.13) 0.13
Adjusted EPS $ 0.74 $ 0.70 $ 0.04 5.7 %
Unfavorable currency translation 0.07 — 0.07
Adjusted EPS (constant currency) $ 0.81 $ 0.70 $ 0.11 15.7 %

~~Table of Contents~~

For the Nine Months Ended
September 30,
2022 2021 $ Change % Change
Diluted EPS attributable to Mondelēz International $ 1.54 $ 2.33 $ (0.79) (33.9) %
Simplify to Grow Program (2)
0.04 0.20 (0.16)
Intangible asset impairment charges (2)
0.05 0.02 0.03
Mark-to-market losses/(gains) from derivatives (2)
0.13 (0.16) 0.29
Acquisition integration costs and
contingent consideration adjustments (2)
0.03 (0.03) 0.06
Inventory step-up (2)
0.01 — 0.01
Acquisition-related costs (2)
0.23 0.01 0.22
Divestiture-related costs (2)
0.01 — 0.01
Net earnings from divestitures (3)
(0.01) (0.03) 0.02
Incremental costs due to war in Ukraine (2)
0.09 — 0.09
Remeasurement of net monetary position (2)
0.02 0.01 0.01
Impact from pension participation changes (2)
— 0.02 (0.02)
Loss on debt extinguishment and related expenses (6)
0.07 0.07 —
Initial impacts from enacted tax law changes (4)
0.01 0.07 (0.06)
Loss/(gain) on equity method investment transactions (5)
0.01 (0.40) 0.41
Equity method investee items (7)
(0.01) 0.03 (0.04)
Adjusted EPS $ 2.22 $ 2.14 $ 0.08 3.7 %
Unfavorable currency translation 0.19 — 0.19
Adjusted EPS (constant currency) $ 2.41 $ 2.14 $ 0.27 12.6 %


	For the Three Months Ended March 31,
	2023		2022		$ Change		% Change
Diluted EPS attributable to Mondelēz International	$	1.52	$	0.61	$	0.91	149.2	%
Simplify to Grow Program (2)	0.02		0.02		—
Intangible asset impairment charge (2)	—		0.04		(0.04)
Mark-to-market gains from derivatives (2)	(0.03)		(0.02)		(0.01)
Acquisition integration costs and contingent consideration adjustments (2)	0.03		(0.01)		0.04

Acquisition-related costs (2)	—		0.02		(0.02)
Divestiture-related costs (2)	0.02		—		0.02
Net earnings from divestitures (2)	(0.02)		(0.03)		0.01

Incremental costs due to war in Ukraine (2)	—		0.11		(0.11)
Remeasurement of net monetary position (2)	0.01		—		0.01



Loss on debt extinguishment and related expenses (3)	—		0.07		(0.07)

Gain on marketable securities (4)	(0.43)		—		(0.43)
Gain on equity method investment transactions (4)	(0.26)		—		(0.26)
Equity method investee items (5)	0.03		—		0.03

Adjusted EPS	$	0.89	$	0.81	$	0.08	9.9	%
Unfavorable currency translation	0.06		—		0.06
Adjusted EPS (constant currency)	$	0.95	$	0.81	$	0.14	17.3	%

(1)The tax expense/(benefit) of each of the pre-tax items excluded from our U.S. GAAP results was computed based on the facts and tax assumptions associated with each item, and such impacts have also been excluded from Adjusted EPS.

•For the three months ended ~~September 30,~~March 31, 2023, taxes for the: Simplify to Grow Program were $(6) million, mark-to-market gains from derivatives were $8 million, acquisition integration costs and contingent consideration adjustments were $(13) million, divestiture-related costs were $(4) million, net earnings from divestitures were $4 million, remeasurement of net monetary position were zero, gain on marketable securities were $201 million and gain on equity method investment transactions were $125 million.

•For the three months ended March 31, 2022, taxes for the: Simplify to Grow Program were ~~$(3)~~$(7) million, intangible asset impairment charges were ~~$(6)~~$(19) million, mark-to-market ~~losses~~gains from derivatives were ~~$(22)~~$(5) million, acquisition integration costs and contingent consideration adjustments were ~~$(6) million, inventory step-up charges were $(5)~~$(50) million, acquisition-related costs were ~~zero, remeasurement of net monetary position were zero and initial impacts from enacted tax law changes were $13 million.~~

•For the three months ended September 30, 2021, taxes for the: Simplify to Grow Program were $(32) million, mark-to-market gains from derivatives were $24 million, acquisition integration costs and contingent consideration adjustments were $15$(1) million, net earnings from divestitures were $4$10 million, ~~and gain on equity method transactions were $59 million.~~

•For the nine months ended September 30, 2022, taxes for the: Simplify to Grow Program were $(16) million, intangible asset impairment charge was $(25) million, mark-to-market losses from derivatives were $(41) million, acquisition integration costs and contingent consideration adjustments were $(57) million, inventory step-up charges were $(5) million, acquisition-related costs were $(3) million, divestiture-related costs were $(3) million, remeasurement of net monetary position were zero, incremental costs due to the war in Ukraine were $4$2 million and loss on debt extinguishment and related expenses were $(31) ~~million, initial impacts from enacted tax law changes were $22 million, loss on equity method investment transactions were $1 million and equity method investee items were $1 million.~~

•For the nine months ended September 30, 2021, taxes for the: Simplify to Grow Program were $(98) million, intangible asset impairment charges were $(8) million, mark-to-market gains from derivatives were $42 million, acquisition-related costs were $(4) million, acquisition integration costs and contingent consideration adjustments were $14 million, net earnings from divestitures were $11 million, remeasurement of net monetary position were zero, impact from pension participation changes were $(8) million, loss on debt extinguishment were $(34) million, initial impacts from enacted tax law changes were $95 million, gain on equity method investment transactions were $184 million and equity method investee items were $(3) million.

(2)See the Adjusted Operating Income table above and the related footnotes for more information.

(3)Includes the impact from 2021 sales of a portion of our equity method investment in KDP and our second quarter 2022 sale of a portion of our equity method investment in JDE Peet's as if the sales occurred at the beginning of all periods presented.

~~(4)Refer to Note 14,~~ ~~Income Taxes, and the~~ ~~Non-GAAP Financial Measures~~ ~~section for more information on the impact.~~

~~(5)Refer to Note 6,~~ ~~Equity Method Investments,~~ ~~for more information on the gains and losses on equity method investment transactions.~~

~~(6)~~Refer to Note 8, Debt and Borrowing Arrangements, for more information on the loss on debt extinguishment and related ~~expenses.~~expenses

~~(7)~~(4)Refer to Note 6, Investments, for more information on the gains and losses on equity method investment transactions and marketable securities.

(5)Includes our proportionate share of significant operating and non-operating items recorded by our JDE Peet's ~~and KDP~~ equity method ~~investees,~~investee, such as acquisition and divestiture-related costs and restructuring program costs..

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Item 3. Quantitative and Qualitative Disclosures about Market Risk.

As we operate globally, we are primarily exposed to currency exchange rate, commodity price and interest rate market risks. We monitor and manage these exposures as part of our overall risk management program. Our risk management program focuses on the unpredictability of financial markets and seeks to reduce the potentially adverse effects that the volatility of these markets may have on our operating results.

The COVID-19 pandemic and related global response significantly impacted economic activity and markets around the world. National and local governments imposed preventative or protective restrictions on travel and business operations and advised or required citizens to remain at home. Temporary closures of businesses were ordered and numerous other businesses temporarily closed voluntarily. The impact of the global pandemic and response as well as the war in Ukraine has had a material unfavorable impact on global and local markets, including commodity, currency and capital markets. These markets are likely to continue to remain volatile while these situations continue. An economic or credit crisis could occur and impair credit availability and our ability to raise capital when needed. A disruption in the financial markets may have a negative effect on our derivative counterparties and could impair our banking or other business partners, on whom we rely for access to capital and as counterparties for a number of our derivative contracts. We work to mitigate these risks and we largely employ existing strategies that are described below to mitigate currency, commodity and interest rate market risks.

We principally utilize derivative instruments to reduce significant, unanticipated earnings fluctuations that may arise from volatility in currency exchange rates, commodity prices and interest rates. For additional information on our derivative activity and the types of derivative instruments we use to hedge our currency exchange, commodity price and interest rate exposures, see Note 9, Financial Instruments.

Many of our non-U.S. subsidiaries operate in functional currencies other than the U.S. dollar. Fluctuations in currency exchange rates create volatility in our reported results as we translate the balance sheets, operating results and cash flows of these subsidiaries into the U.S. dollar for consolidated reporting purposes. The translation of non-U.S. dollar denominated balance sheets and statements of earnings of our subsidiaries into the U.S. dollar for consolidated reporting generally results in a cumulative translation adjustment to other comprehensive income within equity. A stronger U.S. dollar relative to other functional currencies adversely affects our consolidated earnings and net assets while a weaker U.S. dollar benefits our consolidated earnings and net assets. While we hedge significant forecasted currency exchange transactions as well as certain net assets of non-U.S. operations and other currency impacts, we cannot fully predict or eliminate volatility arising from changes in currency exchange rates on our consolidated financial results. See Consolidated Results of Operations and Results of Operations by Reportable Segment under Discussion and Analysis of Historical Results for currency exchange effects on our financial results during the ~~nine~~three months ended ~~September 30, 2022.~~March 31, 2023. Throughout our discussion and analysis of results, we isolate currency impacts and supplementally provide net revenues, operating income and diluted earnings per share on a constant currency basis. ~~For additional information on the impact of currency policies, recent currency devaluations and highly inflationary accounting on our financial condition and results of operations, also see Note 1,~~ ~~Basis of Presentation – Currency Translation and Highly Inflationary Accounting,~~ ~~including our discussion of Türkiyebecoming a highly inflationary economy on April 1, 2022 and the related currency remeasurement impacts.~~

We also continually monitor the market for commodities that we use in our products. Input costs may fluctuate widely due to international demand, weather conditions, government policy and regulation and ~~unforeseen conditions such as~~ the ~~current COVID-19 global pandemic and war in Ukraine.~~macroeconomic environment. Refer to Recent Developments and Significant Items Affecting Comparability~~and~~ ~~Financial Outlook~~ above for updates on recent supply chain, transportation, labor and other disruptions that are increasing operating costs and impacting our results. To manage input cost volatility and inflation, we enter into forward purchase agreements and other derivative financial instruments. We also pursue productivity and cost saving measures and take pricing actions when necessary to mitigate the impact of higher input costs on earnings.

We regularly evaluate our variable and fixed-rate debt as well as current and expected interest rates in the markets in which we raise capital. Our primary exposures include movements in U.S. Treasury rates, corporate credit spreads and commercial paper rates. We periodically use interest rate swaps and forward interest rate contracts to achieve a desired proportion of variable versus fixed rate debt based on current and projected market conditions. For more information on our ~~2022~~ debt activity, see Note 8, Debt and Borrowing Arrangements.

~~See Note 9,~~ ~~Financial Instruments, for more information on our 2022 derivative activity.~~ For additional information on our currency, debt and hedging strategies, policies and practices on an ongoing basis, also refer to our Annual Report on Form 10-K for the year ended December 31, ~~2021.~~

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Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We have established disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and such information is accumulated and communicated to our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate to allow timely decisions regarding required disclosure. Management, together with our CEO and CFO, evaluated the effectiveness of the Company’s disclosure controls and procedures as of ~~September 30, 2022.~~March 31, 2023. Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were effective as of ~~September 30, 2022.~~March 31, 2023.

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Changes in Internal Control Over Financial Reporting

Management, together with our CEO and CFO, evaluated the changes in our internal control over financial reporting during the quarter ended ~~September 30, 2022.~~March 31, 2023. There were no material changes in our internal control over financial reporting during the quarter ended ~~September 30, 2022,~~March 31, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings.

Information regarding legal proceedings is available in Note 12, Commitments and Contingencies, to the condensed consolidated financial statements in this report.

Item 1A. Risk Factors.

There were no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2021 and our Quarterly Report on Form 10-Q for the quarterly period ended March 31,~~ 2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Our stock repurchase activity for each of the three months in the quarter ended ~~September 30, 2022~~March 31, 2023 was:

Issuer Purchases of Equity Securities
Period
Total
Number
of Shares
Purchased (1)
Average
Price Paid
per Share (1)
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs (2)
Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2)
July 1-31, 2022 2,108,944 $ 61.93 2,105,950 $ 2,019
August 1-31, 2022 1,053,061 64.03 1,049,976 1,952
September 1-30, 2022 2,361,113 59.36 2,356,985 1,812
For the Quarter Ended September 30, 2022 5,523,118 $ 61.23 5,512,911


	Issuer Purchases of Equity Securities
Period	Total Number of Shares Purchased (1)	Average Price Paid per Share (1)		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) (3)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2)
January 1-31, 2023	2,917,541	$	65.71	2,916,179	$	5,808
February 1-28, 2023	1,990,633	65.87		1,552,803	5,706
March 1-31, 2023	1,698,800	66.57		1,697,054	5,593
For the Quarter Ended March 31, 2023	6,606,974	$	65.98	6,166,036

(1)The total number of shares purchased (and the average price paid per share) reflects: (i) shares purchased pursuant to the repurchase program described in (2) below; and (ii) shares tendered to us by employees who used shares to exercise options and to pay the related taxes for grants of deferred stock that vested, totaling ~~2,994~~1,362 shares, ~~3,085~~437,830 shares and ~~4,128~~1,746 shares for the fiscal months of ~~July, August~~January, February and ~~September 2022,~~March 2023, respectively.

(2)Dollar values stated in millions. ~~As of September 30, 2022,~~Effective January 1, 2023, our Board of Directors ~~has~~ authorized a program for the repurchase of up to ~~$23.7~~$6.0 billion of our Common Stock through December 31, ~~2023.~~2025, excluding excise tax. Since the program inception on January 1, 2023 through March ~~12, 2013 through September 30, 2022,~~31, 2023, we have repurchased ~~$21.9 billion, and as~~$406.6 million. As of ~~September 30, 2202,~~March 31, 2023, we had approximately ~~$1.8~~$5.6 billion share repurchase authorization remaining. See related information in Note 11, Stock Plans.

(3)As of January 1, 2023, our share repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act. Any excise tax incurred on share repurchases is recognized as part of the cost basis of the shares acquired in the consolidated statements of equity.

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Item 6. Exhibits.


Exhibit Number						Description
~~3.1~~						Amended and Restated By-Laws of the Registrant, effective as of October 19, 2022 (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on October 24, 2022).
~~4.1~~						The Registrant agrees to furnish to the SEC upon request copies of any instruments defining the rights of holders of long-term debt of the Registrant and its consolidated subsidiaries that does not exceed 10 percent of the total assets of the Registrant and its consolidated subsidiaries.
~~4.2~~						Sixth Supplemental Indenture, dated as of September 15, 2022, by and among Mondelez International Holdings Netherlands B.V., as issuer, Mondelēz International, Inc., as guarantor, and Deutsche Bank Trust Company Americas, as trustee ~~(incorporated by reference to Exhibit 4.2~~ t o ~~the Registrant’s Current Report on Form 8-K filed with the SEC on September 16, 2022~~).
10.1						~~Term~~364-Day Revolving Credit Agreement, dated ~~July 11, 2022,~~February 22, 2023, by and among Mondelēz International, Inc., the lenders named therein and ~~Mizuho~~JPMorgan Chase Bank, ~~Ltd.~~N.A., as Administrative Agent (~~incorporated~~ (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on ~~July 12, 2022~~February 22, 2023)).
10.2						2023 Form of Amended and Restated 2005 Performance Incentive Plan Non-Qualified Global Stock Options Agreement.+
10.3						2023 Form of Amended and Restated 2005 Performance Incentive Plan Global Long-Term Incentive Grant Agreement.+
10.4						2023 Form of Amended and Restated 2005 Performance Incentive Plan Global Deferred Stock Unit Agreement.+
31.1						Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended.
31.2						Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended.
32.1						Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101						The following materials from Mondelēz International’s Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2022~~March 31, 2023 are formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Earnings, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Equity, (v) the Condensed Consolidated Statements of Cash Flows and (vi) Notes to Condensed Consolidated Financial Statements.
104						The cover page from Mondelēz International’s Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2022,~~March 31, 2023, formatted in Inline XBRL (included as Exhibit 101).
						'+Indicates a management contract or compensatory plan or arrangement.

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Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



MONDELĒZ INTERNATIONAL, INC.

By: /s/ LUCA ZARAMELLA
Luca Zaramella
Executive Vice President and
Chief Financial Officer
(Duly Authorized Officer)

~~November 1, 2022~~April 27, 2023

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EXHIBIT 31.1

Certifications

I, Dirk Van de Put, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Mondelēz International, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 27, 2023



/s/ DIRK VAN DE PUT
Dirk Van de Put Chairman and Chief Executive Officer

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EXHIBIT 31.2

Certifications

I, Luca Zaramella, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Mondelēz International, Inc.;

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 27, 2023



/s/ LUCA ZARAMELLA
Luca Zaramella Executive Vice President and Chief Financial Officer

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EXHIBIT 32.1

CERTIFICATIONS OF

CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Dirk Van de Put, Chairman and Chief Executive Officer of Mondelēz International, Inc. (“Mondelēz International”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that Mondelēz International’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, Mondelēz International’s financial condition and results of operations.



/s/ DIRK VAN DE PUT
Dirk Van de Put
Chairman and Chief Executive Officer
April 27, 2023

I, Luca Zaramella, Executive Vice President and Chief Financial Officer of Mondelēz International, Inc. (“Mondelēz International”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that Mondelēz International’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, Mondelēz International’s financial condition and results of operations.



/s/ LUCA ZARAMELLA
Luca Zaramella
Executive Vice President and
Chief Financial Officer
April 27, 2023

A signed original of these written statements required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Mondelēz International, Inc. and will be retained by Mondelēz International, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.


	Goodwill		Intangible Assets, at cost
	(in millions)
Balance at January 1, 2022	$	21,978	$	20,290
Currency	(1,391)		(1,301)
Divestiture	(8)		—
Acquisitions	1,808		2,386
Asset impairments	—		(101)
Balance at September 30, 2022	$	22,387	$	21,274


Interest Rate	Redemption Date	Maturity Date	Amount Redeemed	USD Equivalent
3.625%	March 2022	February 2026	$130	$130
4.125%	March 2022	May 2028	$211	$211
2.750%	March 2022	April 2030	$500	$500
6.500%	March 2022	November 2031	$17	$17
7.000%	March 2022	August 2037	$10	$10
6.875%	March 2022	February 2038	$21	$21
6.875%	March 2022	January 2039	$8	$8
6.500%	March 2022	February 2040	$36	$36
4.625%	March 2022	May 2048	$54	$54


Interest Rate	Maturity Date	Amount	USD Equivalent
Various	Various(1)	€381	$431
2.125%	September 2022(2)	$500	$500
0.650%	July 2022	Fr.150	$156


Issuance Date	Interest Rate	Maturity Date	Gross Proceeds (1)	Gross Proceeds USD Equivalent
September 2022(2)	4.250%	September 2025	$500	$500
March 2022	2.125%	March 2024	$500	$500
March 2022	2.625%	March 2027	$750	$750
March 2022	3.000%	March 2032	$750	$750