Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-16483 | |
Entity Registrant Name | Mondelēz International, Inc. | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 52-2284372 | |
Entity Address, Address Line One | 905 West Fulton Market, Suite 200 | |
Entity Address, City or Town | Chicago, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60607 | |
City Area Code | 847 | |
Local Phone Number | 943-4000 | |
Entity Information [Line Items] | ||
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,383,923,632 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001103982 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock, no par value | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, no par value | |
Trading Symbol | MDLZ | |
Security Exchange Name | NASDAQ | |
1.625% Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes due 2027 | |
Trading Symbol | MDLZ27 | |
Security Exchange Name | NASDAQ | |
0.250% Notes due 2028 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.250% Notes due 2028 | |
Trading Symbol | MDLZ28 | |
Security Exchange Name | NASDAQ | |
0.750% Notes due 2033 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.750% Notes due 2033 | |
Trading Symbol | MDLZ33 | |
Security Exchange Name | NASDAQ | |
2.375% Notes due 2035 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 2.375% Notes due 2035 | |
Trading Symbol | MDLZ35 | |
Security Exchange Name | NASDAQ | |
4.500% Notes due 2035 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 4.500% Notes due 2035 | |
Trading Symbol | MDLZ35A | |
Security Exchange Name | NASDAQ | |
1.375% Notes due 2041 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 1.375% Notes due 2041 | |
Trading Symbol | MDLZ41 | |
Security Exchange Name | NASDAQ | |
3.875% Notes due 2045 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 3.875% Notes due 2045 | |
Trading Symbol | MDLZ45 | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Income Statement [Abstract] | |||
Net revenues | $ 7,764 | $ 7,238 | [1] |
Cost of sales | 4,781 | 4,272 | |
Gross profit | 2,983 | 2,966 | |
Selling, general and administrative expenses | 1,693 | 1,564 | |
Asset impairment and exit costs | 164 | 90 | |
Gain on acquisition | 0 | (9) | |
Amortization of intangible assets | 32 | 38 | |
Operating income | 1,094 | 1,283 | |
Benefit plan non-service income | (33) | (44) | |
Interest and other expense, net | 168 | 218 | |
Earnings before income taxes | 959 | 1,109 | |
Income tax provision | (210) | (212) | |
Loss on equity method investment transactions | (5) | (7) | |
Equity method investment net earnings | 117 | 78 | |
Net earnings | 861 | 968 | |
Noncontrolling interest earnings | (6) | (7) | |
Net earnings attributable to Mondelēz International | $ 855 | $ 961 | |
Per share data: | |||
Basic earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.62 | $ 0.68 | |
Diluted earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.61 | $ 0.68 | |
[1] | Our snack product categories include biscuits, chocolate and gum & candy. During 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. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Earnings - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 861 | $ 968 |
Other comprehensive earnings/(losses), net of tax: | ||
Currency translation adjustment | 50 | (136) |
Pension and other benefit plans | 93 | 69 |
Derivative cash flow hedges | 52 | 2 |
Total other comprehensive earnings/(losses) | 195 | (65) |
Comprehensive earnings/(losses) | 1,056 | 903 |
less: Comprehensive earnings/(losses) attributable to noncontrolling interests | 2 | (2) |
Comprehensive earnings/(losses) attributable to Mondelēz International | $ 1,054 | $ 905 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 1,946 | $ 3,546 |
Trade receivables (net of allowances of $55 at March 31, 2022 and $37 at December 31, 2021) | 2,943 | 2,337 |
Other receivables (net of allowances of $48 at March 31, 2022 and $49 at December 31, 2021) | 749 | 851 |
Inventories, net | 2,838 | 2,708 |
Other current assets | 1,143 | 900 |
Total current assets | 9,619 | 10,342 |
Property, plant and equipment, net | 9,015 | 8,658 |
Operating lease right of use assets | 653 | 613 |
Goodwill | 22,618 | 21,978 |
Intangible assets, net | 18,829 | 18,291 |
Prepaid pension assets | 1,046 | 1,009 |
Deferred income taxes | 561 | 541 |
Equity method investments | 5,255 | 5,289 |
Other assets | 398 | 371 |
TOTAL ASSETS | 67,994 | 67,092 |
LIABILITIES | ||
Short-term borrowings | 606 | 216 |
Current portion of long-term debt | 754 | 1,746 |
Accounts payable | 7,241 | 6,730 |
Accrued marketing | 2,272 | 2,097 |
Accrued employment costs | 721 | 822 |
Other current liabilities | 2,509 | 2,397 |
Total current liabilities | 14,103 | 14,008 |
Long-term debt | 18,344 | 17,550 |
Long-term operating lease liabilities | 508 | 459 |
Deferred income taxes | 3,521 | 3,444 |
Accrued pension costs | 645 | 681 |
Accrued postretirement health care costs | 304 | 301 |
Other liabilities | 2,353 | 2,326 |
TOTAL LIABILITIES | 39,778 | 38,769 |
Commitments and Contingencies (Note 12) | ||
EQUITY | ||
Common Stock, no par value (5,000,000,000 shares authorized and 1,996,537,778 shares issued at March 31, 2022 and December 31, 2021) | 0 | 0 |
Additional paid-in capital | 32,053 | 32,097 |
Retained earnings | 31,163 | 30,806 |
Accumulated other comprehensive losses | (10,425) | (10,624) |
Treasury stock, at cost (612,818,033 shares at March 31, 2022 and 604,907,239 shares at December 31, 2021) | (24,630) | (24,010) |
Total Mondelēz International Shareholders’ Equity | 28,161 | 28,269 |
Noncontrolling interest | 55 | 54 |
TOTAL EQUITY | 28,216 | 28,323 |
TOTAL LIABILITIES AND EQUITY | $ 67,994 | $ 67,092 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 55 | $ 37 |
Other receivables, allowances | $ 48 | $ 49 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued (in shares) | 1,996,537,778 | 1,996,537,778 |
Treasury stock, at cost (in shares) | 612,818,033 | 604,907,239 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Earnings/(Losses) | Treasury Stock | Non-controlling Interest |
Balance at beginning of period at Dec. 31, 2020 | $ 27,654 | $ 0 | $ 32,070 | $ 28,402 | $ (10,690) | $ (22,204) | $ 76 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 968 | 961 | 7 | ||||
Other comprehensive earnings/(losses), net of income taxes | (65) | (56) | (9) | ||||
Exercise of stock options and issuance of other stock awards | 54 | (61) | (15) | 130 | |||
Common Stock repurchased | (1,017) | (1,017) | |||||
Cash dividends declared | (445) | (445) | |||||
Dividends paid on noncontrolling interest and other activities | 0 | 0 | 0 | ||||
Balance at end of period at Mar. 31, 2021 | 27,149 | 0 | 32,009 | 28,903 | (10,746) | (23,091) | 74 |
Balance at beginning of period at Dec. 31, 2021 | 28,323 | 0 | 32,097 | 30,806 | (10,624) | (24,010) | 54 |
Comprehensive earnings/(losses): | |||||||
Net earnings | 861 | 855 | 6 | ||||
Other comprehensive earnings/(losses), net of income taxes | 195 | 199 | (4) | ||||
Exercise of stock options and issuance of other stock awards | 60 | (44) | (11) | 115 | |||
Common Stock repurchased | (735) | (735) | |||||
Cash dividends declared | (487) | (487) | |||||
Dividends paid on noncontrolling interest and other activities | (1) | 0 | (1) | ||||
Balance at end of period at Mar. 31, 2022 | $ 28,216 | $ 0 | $ 32,053 | $ 31,163 | $ (10,425) | $ (24,630) | $ 55 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Retained Earnings | ||
Cash dividends declared (in dollars per share) | $ 0.350 | $ 0.315 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES | ||
Net earnings | $ 861 | $ 968 |
Adjustments to reconcile net earnings to operating cash flows: | ||
Depreciation and amortization | 275 | 284 |
Stock-based compensation expense | 24 | 25 |
Deferred income tax (benefit)/provision | (70) | 34 |
Asset impairments and accelerated depreciation | 155 | 43 |
Loss on early extinguishment of debt | 38 | 110 |
Gain on acquisition | 0 | (9) |
Loss on equity method investment transactions | 5 | 7 |
Equity method investment net earnings | (117) | (78) |
Distributions from equity method investments | 107 | 74 |
Other non-cash items, net | (13) | (23) |
Change in assets and liabilities, net of acquisitions and divestitures: | ||
Receivables, net | (517) | (494) |
Inventories, net | (81) | (37) |
Accounts payable | 397 | 283 |
Other current assets | (104) | (140) |
Other current liabilities | 230 | (55) |
Change in pension and postretirement assets and liabilities, net | (59) | (77) |
Net cash provided by operating activities | 1,131 | 915 |
CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES | ||
Capital expenditures | (167) | (216) |
Acquisitions, net of cash received | (1,418) | (490) |
Proceeds from divestitures including equity method investments | 66 | 0 |
Proceeds from sale of property, plant and equipment and other | 78 | 16 |
Net cash used in investing activities | (1,441) | (690) |
CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES | ||
Issuances of commercial paper, maturities greater than 90 days | 0 | 0 |
Repayments of commercial paper, maturities greater than 90 days | 0 | 0 |
Net issuances/(repayments) of other short-term borrowings | 217 | 647 |
Long-term debt proceeds | 1,991 | 2,373 |
Long-term debt repayments | (2,306) | (3,353) |
Repurchase of Common Stock | (751) | (1,046) |
Dividends paid | (491) | (453) |
Other | 60 | 51 |
Net cash used in financing activities | (1,280) | (1,781) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (10) | (35) |
Cash, cash equivalents and restricted cash: | ||
(Decrease)/Increase | (1,600) | (1,591) |
Balance at beginning of period | 3,553 | 3,650 |
Balance at end of period | $ 1,953 | $ 2,059 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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. Principles of Consolidation: The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries that were deconsolidated in 2015. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors' interests in the results of subsidiaries that we control and consolidate. We account for investments over which we exercise significant influence under the equity method of accounting. Investments over which we do not have significant influence or control are not material and as there are no readily determinable fair values for the equity interests, these investments are carried at cost with changes in the investment recognized to the extent cash is received. 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 assets. We recorded $143 million of total expenses ($145 million after-tax) incurred as a direct result of the war, including $75 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 reserves and write-offs, $19 million of increased estimated allowances for trade receivables and $16 million in accrued expenses. 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. 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 expect to apply highly inflationary accounting for our subsidiaries operating in Türkiye and change their functional currency from the Turkish lira to the U.S. dollar. Our operations in Türkiye contributed $43 million, or 0.6% of our condensed consolidated net revenues in the three months ended March 31, 2022. Based on a review of our Turkish lira-denominated monetary assets and liabilities, our operations in Türkiye had an immaterial net monetary liability position as of March 31, 2022. 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 $129 million, or 1.7% of our condensed consolidated net revenues in the three months ended March 31, 2022. As of March 31, 2022, our Argentinean operations had $26 million of Argentinean peso denominated net monetary assets. Within selling, general and administrative expenses, we recorded a remeasurement loss of $5 million during the three months ended March 31, 2022 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 as well as in the ongoing COVID-19 global pandemic and related impacts to our business operations, currencies and net monetary exposures. Since the global onset of COVID-19 in early 2020, most countries in which we do business experienced periods of significant economic uncertainty as well as exchange rate volatility. At this time, within our consolidated entities, Argentina and Türkiye are or will be accounted for as highly inflationary economies as noted above, and we continue to monitor currency volatility and associated risks, including highly inflationary economies. Cash, Cash Equivalents and Restricted Cash: Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. We also have restricted cash that is recorded within other current assets of $7 million as of March 31, 2022 and $7 million as of December 31, 2021. Total cash, cash equivalents and restricted cash was $1,953 million as of March 31, 2022 and $3,553 million as of December 31, 2021. 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 (19) (2) (5) Write-offs charged against the allowance 3 — — Currency (2) 3 (2) Balance at March 31, 2022 $ (55) $ (48) $ (17) Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have non-recourse factoring arrangements in which we sell eligible trade receivables primarily to banks in exchange for cash. We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the banks. The outstanding principal amount of receivables under these arrangements amounted to $887 million as of March 31, 2022 and $761 million as of December 31, 2021. The incremental cost of factoring receivables under this arrangement was not material for all periods presented. The proceeds from the sales of receivables are included in cash from operating activities in the condensed consolidated statements of cash flows. Non-Cash Lease Transactions: We recorded $95 million in operating lease and $56 million in finance lease right-of-use assets obtained in exchange for lease obligations during the three months ended March 31, 2022 and $29 million in operating lease and $30 million in finance lease right-of-use assets obtained in exchange for lease obligations during the three months ended March 31, 2021. New Accounting 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 adopt this standard in the fourth quarter of 2022. Based on our evaluation of our contracts to date, we do not expect this ASU to have a material impact on our consolidated financial statements. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Note 2. Acquisitions and Divestitures On April 24, 2022, we entered into an agreement with Grupo Bimbo to acquire Ricolino, its confectionery business located primarily in Mexico for a purchase price of approximately $1.3 billion, subject to closing purchase price adjustments. The transaction, which will be funded through a combination of an issuance of debt and cash on hand, is subject to relevant antitrust approvals and closing conditions and is expected to close in late Q3 or early Q4 2022. On January 3, 2022, we acquired Chipita 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 €1.3 billion ($1.4 billion), net of cash received, plus the assumption of Chipita’s debt of €0.4 billion ($0.4 billion) for a total purchase price of €1.7 billion ($1.9 billion). We are working to complete the valuation and have recorded a preliminary purchase price allocation of: (in millions) Cash $ 52 Receivables 102 Inventory 62 Other current assets 4 Property, plant and equipment 406 Finance leases right of use assets 8 Definite life intangible assets 48 Indefinite life intangible assets 686 Goodwill 774 Other assets 79 Assets acquired $ 2,221 Current liabilities 131 Deferred tax liability 155 Finance lease liabilities 8 Other liabilities 21 Total purchase price $ 1,906 Less: long-term debt (436) Less: cash received (52) Net Cash Paid $ 1,418 Within identifiable intangible assets, we allocated $686 million to trade names which have an 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 Leve l 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 segment. Chipita added incremental net revenues of $152 million and operating income of $4 million in t he three months ended March 31, 2022. We incurred acquisition-related costs of $21 million and integration cost s of $35 million in t he three months ended March 31, 2022. 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. The acquisition added incremental net revenues of $14 million, and operating income of $1 million in the three months ended March 31, 2022. We incurred acquisition-related costs of $1 million in the three months ended March 31, 2021. On March 25, 2021, we acquired a majority interest in Lion/Gemstone Topco Ltd ("Grenade"), a performance nutrition leader in the United Kingdom, for closing cash consideration of £188 million ($261 million), net of cash received. 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 anniversary of the acquisition, Grenade added incremental net revenues of $21 million, and operating income of $2 million in the three months ended March 31, 2022. We incurred acquisition-related costs of $2 million in the three months ended March 31, 2021. 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 chocolate and other categories in the well-being category. The initial cash consideration paid was $229 million, net of cash received, and the Company may be required to pay additional contingent consideration. The estimated fair value of the contingent consideration obligation at the acquisition date was $132 million and was determined using a Monte Carlo simulation based on forecasted future results. 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 to current liabilities and $132 million to long-term other liabilities. We incurred acquisition-related costs of $4 million during the three months ended March 31, 2021. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories Inventories consisted of the following: As of March 31, 2022 As of December 31, 2021 (in millions) Raw materials $ 891 $ 770 Finished product 2,093 2,054 2,984 2,824 Inventory reserves (146) (116) Inventories, net $ 2,838 $ 2,708 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment Property, plant and equipment consisted of the following: As of March 31, 2022 As of December 31, 2021 (in millions) Land and land improvements $ 405 $ 379 Buildings and building improvements 3,322 3,139 Machinery and equipment 12,043 11,842 Construction in progress 669 732 16,439 16,092 Accumulated depreciation (7,424) (7,434) Property, plant and equipment, net $ 9,015 $ 8,658 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 included payment for a portion of the $249 million of capital expenditures that were accrued and unpaid at December 31, 2021. For the three months ended March 31, 2021, capital expenditures of $216 million excluded $230 million of accrued capital expenditures remaining unpaid at March 31, 2021 and included payment for a portion of the $275 million of capital expenditures that were accrued and unpaid at December 31, 2020. In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) and losses/(gains) on disposal in the condensed consolidated statements of earnings within asset impairment and exit costs and within the segment results as follows (refer to Note 7, Restructuring Program ). For the Three Months Ended 2022 2021 (in millions) Latin America $ — $ — AMEA — (16) Europe 1 2 North America 1 54 Total $ 2 $ 40 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets Goodwill by segment was: As of March 31, 2022 As of December 31, 2021 (in millions) Latin America $ 738 $ 674 AMEA 3,371 3,365 Europe 8,355 7,830 North America 10,154 10,109 Goodwill $ 22,618 $ 21,978 Intangible assets consisted of the following: As of March 31, 2022 As of December 31, 2021 (in millions) Indefinite-life intangible assets $ 17,827 $ 17,299 Definite-life intangible assets 3,025 2,991 20,852 20,290 Accumulated amortization (2,023) (1,999) Intangible assets, net $ 18,829 $ 18,291 Indefinite-life intangible assets consist principally of brand names purchased through our acquisitions of Nabisco Holdings Corp., the Spanish and Portuguese operations of United Biscuits, the global LU biscuit business of Groupe Danone S.A. and Cadbury Limited. Definite-life intangible assets consist primarily of brands, customer-related intangibles, process technology, licenses and non-compete agreements. Amortization expense for intangible assets was $32 million for the three months ended March 31, 2022 and $38 million for the three months ended March 31, 2021. For the next five years, we currently estimate annual amortization expense of approximately $130 million in 2022-2024, approximately $105 million in 2025 and approximately $65 million in 2026 (reflecting March 31, 2022 exchange rates). Changes in goodwill and intangible assets consisted of: Goodwill Intangible (in millions) Balance at January 1, 2022 $ 21,978 $ 20,290 Currency (134) (94) Acquisitions 774 734 Asset impairments — (78) Balance at March 31, 2022 $ 22,618 $ 20,852 Changes to goodwill and intangibles were: • Acquisitions - In connection with our acquisition of Chipita during the first three months of 2022, we recorded a preliminary purchase price allocation of $774 million to goodwill and $734 million to intangible assets. See Note 2, Acquisitions and Divestitures , for additional information. • Asset impairment - As further described below, during the first quarter of 2022, we recorded a $78 million intangible asset impairment in AMEA due to lower than expected growth and profitability of a local biscuit brand sold in select markets in AMEA and Europe. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | 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 March 31, 2022, we owned 22.7%, 5.3%, 50.0% and 49.0%, respectively, of these companies' outstanding shares. Our investments accounted for under the equity method of accounting totaled $5,255 million as of March 31, 2022 and $5,289 million as of December 31, 2021. We recorded equity earnings of $117 million and cash dividends of $107 million in the first quarter of 2022 and equity earnings of $78 million and cash dividends of $74 million in the first quarter of 2021. Based on the quoted closing prices as of March 31, 2022, the combined fair value of our publicly-traded investments in JDEP and KDP wa s $6.1 billion , and for each investment, its fair value exceeded its carrying value. On September 20, 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 7% of our equity interest in JDE Peet's. Refer to Note 9, Debt and Borrowing Arrangements , for further details on this transaction. |
Restructuring Program
Restructuring Program | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Program | 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 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 three months ended March 31, 2022 was: Severance Asset Total (in millions) Liability balance, January 1, 2022 $ 211 $ — $ 211 Charges 9 2 11 Cash spent (17) — (17) Non-cash settlements/adjustments — (2) (2) Currency (1) — (1) Liability balance, March 31, 2022 $ 202 $ — $ 202 • We recorded restructuring charges of $11 million in the first quarter of 2022 and $88 million in the first quarter of 2021 within asset impairment and exit costs and benefit plan non-service income. • We spent $17 million in the first quarter of 2022 and $34 million in the first quarter of 2021 in cash severance and related costs. • We recognized non-cash asset write-downs (including accelerated depreciation and asset impairments), and other adjustments, including any gains on sale of restructuring program assets, which totaled $2 million in the first quarter of 2022 and $40 million in the first quarter of 2021. • At March 31, 2022, $172 million of our net restructuring liability was recorded within other current liabilities and $30 million was recorded within other long-term liabilities. Implementation Costs: Implementation costs are directly attributable to restructuring activities; however, they do not qualify for special accounting treatment as exit or disposal activities. We believe the disclosure of implementation costs provides readers of our financial statements with 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 $20 million in the first quarter of 2022 and $34 million in the first quarter of 2021. We recorded these costs within cost of sales and general corporate expense within selling, general and administrative expenses. Restructuring and Implementation Costs: During the three months ended March 31, 2022 and March 31, 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 AMEA Europe North Corporate Total (in millions) For the Three Months Ended March 31, 2022 Restructuring Costs $ (1) $ 2 $ 2 $ 8 $ — $ 11 Implementation Costs 1 1 5 7 6 20 Total $ — $ 3 $ 7 $ 15 $ 6 $ 31 For the Three Months Ended March 31, 2021 Restructuring Costs $ 3 $ (21) $ 6 $ 101 $ (1) $ 88 Implementation Costs 3 2 10 10 9 34 Total $ 6 $ (19) $ 16 $ 111 $ 8 $ 122 Total Project (Inception to Date) Restructuring Costs $ 553 $ 543 $ 1,149 $ 653 $ 149 $ 3,047 Implementation Costs 297 240 549 560 362 2,008 Total $ 850 $ 783 $ 1,698 $ 1,213 $ 511 $ 5,055 |
Debt and Borrowing Arrangements
Debt and Borrowing Arrangements | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Borrowing Arrangements | Note 8. Debt and Borrowing Arrangements Short-Term Borrowings: Our short-term borrowings and related weighted-average interest rates consisted of: As of March 31, 2022 As of December 31, 2021 Amount Weighted- Amount Weighted- (in millions, except percentages) Commercial paper $ 463 0.9 % $ 192 0.2 % Bank loans 143 3.5 % 24 8.6 % Total short-term borrowings $ 606 $ 216 Our uncommitted credit lines and committed credit lines available as of March 31, 2022 and December 31, 2021 include: As of March 31, 2022 As of December 31, 2021 Facility Amount Borrowed Amount Facility Amount Borrowed Amount (in millions) Uncommitted credit facilities $ 1,435 $ 143 $ 1,367 $ 24 Credit facility expiry (1) : November 30, 2022 (2) 2,000 — — — February 23, 2022 — — 2,500 — February 22, 2023 2,500 — — — February 27, 2024 — — 4,500 — 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 March 31, 2022, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $38.6 billion. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. (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. The maturity dates of any loans drawn under this facility will be three years after the funding date of the applicable loan(s). Long-Term Debt: Tender Offers: On March 18, 2022, we completed a tender offer in cash and redeemed long term U.S. dollar denominated notes for 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, net, consisting of $38 million paid in excess of carrying value of the debt and 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 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): Interest Rate Redemption Date Maturity Date Amount Redeemed USD Equivalent 0.625% March 2022 July 2022 $1,000 $1,000 Debt Repayments 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 three months ended March 31, 2022. Issuances: During the three months ended March 31, 2022, we issued the following notes (in millions): Issuance Date Interest Rate Maturity Date Gross Proceeds (1) Gross Proceeds USD Equivalent 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. Fair Value of Our Debt: The fair value of our short-term borrowings at March 31, 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 long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations. As of March 31, 2022 As of December 31, 2021 (in millions) Fair Value $ 19,009 $ 20,249 Carrying Value $ 19,704 $ 19,512 Interest and Other Expense, net: Interest and other expense, net consisted of: For the Three Months Ended 2022 2021 (in millions) Interest expense, debt $ 91 $ 98 Loss on debt extinguishment and 129 137 Other (income)/expense, net (52) (17) Interest and other expense, net $ 168 $ 218 Other income includes amounts excluded from hedge effectiveness related to our net investment hedge derivative contracts that totaled $22 million in the three months ended March 31, 2022 and $20 million in the three months ended March 31, 2021. Early settlement of forecasted currency exchange contracts comprise $20 million in other (income)/expense, net due to changes in related forecasted future cash flows in the three months ended March 31, 2022. Refer to Note 9, Financial Instruments . |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Note 9. Financial Instruments Fair Value of Derivative Instruments: Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of March 31, 2022 As of December 31, 2021 Asset Liability Asset Liability (in millions) Derivatives designated as accounting hedges: Currency exchange contracts $ 1 $ 3 $ — $ — Interest rate contracts 27 3 27 17 Net investment hedge derivative contracts (1) 137 51 117 45 $ 165 $ 57 $ 144 $ 62 Derivatives not designated as Currency exchange contracts $ 135 $ 124 $ 156 $ 40 Commodity contracts 589 220 387 137 Equity method investment contracts (2) — 3 — 3 $ 724 $ 347 $ 543 $ 180 Total fair value $ 889 $ 404 $ 687 $ 242 (1) Net investment hedge derivative contracts consist of cross-currency interest rate swaps, forward contracts and options. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote. (2) Equity method investment contracts consist of the bifurcated embedded derivative option that was a component of the September 20, 2021 €300 million exchangeable bonds issuance. Refer to Note 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 March 31, 2022 Total Quoted Prices in Significant Significant (in millions) Currency exchange contracts $ 9 $ — $ 9 $ — Commodity contracts 369 213 156 — Interest rate contracts 24 — 24 — Net investment hedge contracts 86 — 86 — Equity method investment contracts (3) — (3) — Total derivatives $ 485 $ 213 $ 272 $ — As of December 31, 2021 Total Quoted Prices in Significant Significant (in millions) Currency exchange contracts $ 116 $ — $ 116 $ — Commodity contracts 251 161 90 — Interest rate contracts 10 — 10 — Net investment hedge contracts 71 — 71 — Equity method investment contracts (3) — (3) — Total derivatives $ 445 $ 161 $ 284 $ — 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: The notional values of our hedging instruments were: Notional Amount As of March 31, 2022 As of December 31, 2021 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,073 $ 1,891 Forecasted transactions 4,822 4,831 Commodity contracts 10,281 9,694 Interest rate contracts 1,850 1,850 Net investment hedges: Net investment hedge derivative contracts 7,306 3,915 Non-U.S. dollar debt designated as net investment hedges Euro notes 3,525 3,622 British pound sterling notes 346 356 Swiss franc notes 802 811 Canadian dollar notes 480 475 Cash Flow Hedges: Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included: For the Three Months Ended 2022 2021 (in millions) Accumulated (loss)/gain at beginning of period $ (148) $ (161) Transfer of realized losses/(gains) in fair value 25 5 Unrealized (loss)/gain in fair value 27 (3) Accumulated (loss)/gain at end of period $ (96) $ (159) After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) to net earnings were: For the Three Months Ended 2022 2021 (in millions) Currency exchange contracts – forecasted transactions $ (2) $ — Interest rate contracts (23) (5) Total $ (25) $ (5) After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Three Months Ended 2022 2021 (in millions) Currency exchange contracts – $ 2 $ (1) Interest rate contracts 25 (2) Total $ 27 $ (3) 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 on ineffectiveness and (iii) gains or losses on amounts excluded from effectiveness testing in interest and other expense, net for interest rate contracts. Based on current market conditions, we would expect to transfer losses of $9 million (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months. Cash Flow Hedge Coverage: As of March 31, 2022, our longest dated cash flow hedges were interest rate swaps that hedge forecasted interest rate payments over the next 4 years, 5 months. Hedges of Net Investments in International Operations: Net investment hedge ("NIH") derivative contracts: We enter into cross-currency interest rate swaps, forwards and options to hedge certain investments in our non-U.S. operations against movements in exchange rates. The aggregate notional value as of March 31, 2022 was $7.3 billion. The impacts of the net investment hedge derivative contracts on other comprehensive earnings and net earnings were as follows: For the Three Months Ended 2022 2021 (in millions) After-tax gain/(loss) on NIH contracts (1) $ 41 $ 59 (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 2022 2021 (in millions) Amounts excluded from the assessment of hedge effectiveness (1) $ 22 $ 20 (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: 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 2022 2021 (in millions) Euro notes $ 74 $ 124 British pound sterling notes 8 (2) Swiss franc notes 6 56 Canadian notes (4) (5) Economic Hedges: Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Three Months Ended Location of Gain/(Loss) Recognized in Earnings 2022 2021 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ (11) $ 70 Interest and other expense, net Forecasted transactions (7) 50 Cost of sales Forecasted transactions 21 (16) Interest and other expense, net Forecasted transactions 2 2 Selling, general and administrative expenses Commodity contracts 237 94 Cost of sales Equity method investment — — Gain on equity method investment transactions Total $ 242 $ 200 Early settlement of forecasted currency exchange contracts comprise $74 million in cost of sales, $5 million in selling, general and administrative expenses and $20 million in interest and other expense, net in the three months ended March 31, 2022. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 10. Benefit Plans Pension Plans Components of Net Periodic Pension Cost: Net periodic pension cost/(benefit) consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended 2022 2021 2022 2021 (in millions) Service cost $ 1 $ 2 $ 39 $ 35 Interest cost 11 10 41 29 Expected return on plan assets (18) (18) (93) (106) Amortization: Net loss from experience differences 3 4 19 33 Prior service cost/(benefit) — — (1) (2) Settlement losses and other expenses 3 3 — — Net periodic pension cost/(benefit) $ — $ 1 $ 5 $ (11) Employer Contributions: During the three months ended March 31, 2022, we contributed less than $1 million to our U.S. pension plans and $64 million to our non-U.S. pension plans, including $25 million to plans in the United Kingdom and Ireland. We make contributions to our pension plans in accordance with local funding arrangements and statutory minimum funding requirements. Discretionary contributions are made to the extent that they are tax deductible and do not generate an excise tax liability. As of March 31, 2022, over the remainder of 2022, we plan to make further contributions of approximately $3 million to our U.S. plans and approximately $121 million to our non-U.S. plans. 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. Multiemployer Pension 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 in the three months ended March 31, 2022 and $3 million in the three months ended March 31, 2021 within interest and other expense, net. As of March 31, 2022, the remaining discounted withdrawal liability was $356 million, with $15 million recorded in other current liabilities and $341 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 2022 2021 (in millions) Service cost $ 1 $ 1 Interest cost 2 2 Amortization: Net loss from experience differences — 1 Prior service credit — — Net periodic postretirement health care cost/(benefit) $ 3 $ 4 Postemployment Benefit Plans Net periodic postemployment cost consisted of the following: For the Three Months Ended 2022 2021 (in millions) Service cost $ 1 $ 1 Interest cost 1 1 Amortization of net gains (1) (1) Net periodic postemployment cost $ 1 $ 1 |
Stock Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plans | Note 11. Stock Plans Stock Options: Stock option activity is reflected below: Shares Subject Weighted- Average Aggregate Balance at January 1, 2022 23,503,759 $42.65 5 years $ 556 million Annual grant to eligible employees 2,180,540 64.65 Additional options issued 1,710 65.97 Total options granted 2,182,250 64.65 Options exercised (1) (2,329,139) 34.61 $ 74 million Options canceled (208,761) 53.50 Balance at March 31, 2022 23,148,109 45.43 6 years $ 406 million (1) Cash received from options exercised was $70 million in the three months ended March 31, 2022. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $10 million in the three months ended March 31, 2022. Performance Share Units and Other Stock-Based Awards: Our performance share unit, deferred stock unit and historically granted restricted stock activity is reflected below: Number Grant Date Weighted-Average Fair Value Per Share (3) Weighted-Average Aggregate Fair Value (3) Balance at January 1, 2022 4,668,046 $57.04 Annual grant to eligible employees: Feb 24, 2022 Performance share units 806,590 61.87 Deferred stock units 505,090 64.65 Additional shares granted (1) 653,365 Various 60.17 Total shares granted 1,965,045 62.02 $ 122 million Vested (2) (1,670,302) 55.34 $ 92 million Forfeited (187,367) 61.42 Balance at March 31, 2022 4,775,422 59.51 (1) Includes performance share units and deferred stock units. (2) The actual tax benefit/(expense) realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $5 million in the three months ended March 31, 2022. (3) The grant date fair value of performance share units 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: Between 2013 and 2017, our Board of Directors authorized the repurchase of a total of $13.7 billion of our Common Stock through December 31, 2018. On January 31, 2018, our Finance Committee, with authorization delegated from our Board of Directors, approved an increase of $6.0 billion in the share repurchase program, raising the authorization to $19.7 billion of Common Stock repurchases, and extended the program through December 31, 2020. On December 2, 2020, our Board of Directors approved an increase of $4.0 billion in the share repurchase program, raising the authorization to $23.7 billion of Common Stock repurchases, and extended the program through December 31, 2023. 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 three months ended March 31, 2022, we repurchased approximately 11 million shares of Common Stock at an average cost of $65.96 per share, or an aggregate cost of approximately $0.8 billion, all of which was paid during the period. All share repurchases were funded through available cash and commercial paper issuances. As of March 31, 2022, we have approximately $2.9 billion in remaining share repurchase capacity. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Legal Proceedings: We routinely are involved in legal proceedings, claims, disputes, regulatory matters and governmental 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 litigation 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 proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations or cash flows. However, legal proceedings and government investigations are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could involve substantial monetary damages. 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 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 complaint alleges 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 seeks 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 August 15, 2019, 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. On October 23, 2019, following a ruling by the United States Court of Appeals for the Seventh Circuit regarding Mondelēz Global's allegations that the CFTC and its Commissioners violated certain terms of the settlement agreement and the CFTC's argument that the Commissioners were not bound by the terms of the settlement agreement, the District Court vacated the settlement agreement and reinstated all pending motions that the District Court had previously mooted as a result of the settlement. The parties have reached a new agreement in principle to resolve the CFTC action and have submitted the settlement to the District Court for approval. The District Court cancelled a scheduled conference on June 4, 2020 to discuss the proposed settlement agreement but indicated that it would rule on pending motions in due course . Additionally, several class action complaints 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 District Court. 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 CFTC action and the class action. Although the CFTC action and the class action complaints involve the same alleged conduct, a resolution or decision with respect to one of the matters may not be dispositive as to the outcome of the other matter. In November 2019, the European Commission informed us that it has initiated an investigation into our alleged infringement of European Union competition law through certain practices restricting cross-border trade within the European Economic Area. On January 28, 2021, the European Commission announced it has taken the next procedural step in its investigation and opened formal proceedings. We are cooperating with the investigation and expect to continue to engage with the European Commission as its investigation proceeds. It is not possible to predict how long the investigation will take or the ultimate outcome of this matter. Third-Party 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 March 31, 2022, we had no material third-party guarantees recorded on our condensed consolidated balance sheet. Tax 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. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Reclassifications from Accumulated Other Comprehensive Income | 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 losses of $42 million in the first quarter of 2022 and $34 million in the first quarter of 2021. For the Three Months Ended 2022 2021 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (9,097) $ (8,655) Currency translation adjustments 6 (134) Tax (expense)/benefit 44 (2) Other comprehensive earnings/(losses) 50 (136) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 4 9 Balance at end of period (9,043) (8,782) Pension and Other Benefit Plans: Balance at beginning of period $ (1,379) $ (1,874) Net actuarial gain/(loss) arising during period 44 (1) Tax (expense)/benefit on net actuarial gain/(loss) — — Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (2) 20 35 Settlement losses and other expenses (2) 3 3 Tax expense/(benefit) on reclassifications (3) (6) (9) Currency impact 32 41 Other comprehensive earnings/(losses) 93 69 Balance at end of period (1,286) (1,805) Derivative Cash Flow Hedges: Balance at beginning of period $ (148) $ (161) Net derivative gains/(losses) 26 (7) Tax (expense)/benefit on net derivative gain/(loss) (1) 1 Losses/(gains) reclassified into net earnings: Interest rate contracts (2)(4) 48 6 Tax expense/(benefit) on reclassifications (3) (23) (1) Currency impact 2 3 Other comprehensive earnings/(losses) 52 2 Balance at end of period (96) (159) Accumulated other comprehensive income Balance at beginning of period $ (10,624) $ (10,690) Total other comprehensive earnings/(losses) 195 (65) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 4 9 Other comprehensive earnings/(losses) attributable to Mondelēz International 199 (56) Balance at end of period $ (10,425) $ (10,746) (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 recorded within gain on equity method investment transactions. (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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14. Income Taxes As of the first quarter of 2022, our estimated annual effective tax rate, which excludes 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. Our effective tax rate for the three months ended March 31, 2022 of 21.9% was favorably impacted by discrete net tax benefits of $62 million primarily driven by the Chipita acquisition, which resulted in the release of a portion of the valuation allowance recorded against the deferred tax asset for the step-up of intangible assets in Switzerland. As of the first quarter of 2021, our estimated annual effective tax rate, which excluded discrete tax impacts, was 25.2%. 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 effective tax rate for the three months ended March 31, 2021 of 19.1% was favorably impacted by discrete net tax benefits of $65 million, primarily driven by a $32 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 $27 million benefit from a U.S. amended tax return filed to reflect new guidance from the U.S. Treasury Department. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 15. Earnings per Share Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended 2022 2021 (in millions, except per share data) Net earnings $ 861 $ 968 Noncontrolling interest earnings (6) (7) Net earnings attributable to Mondelēz International $ 855 $ 961 Weighted-average shares for basic EPS 1,389 1,412 Plus incremental shares from assumed conversions 9 10 Weighted-average shares for diluted EPS 1,398 1,422 Basic earnings per share attributable to $ 0.62 $ 0.68 Diluted earnings per share attributable to $ 0.61 $ 0.68 We exclude antidilutive Mondelēz International stock options from our calculation of weighted-average shares for diluted EPS. We excluded antidilutive stock options and performance share units of 2.1 million in the first three months of 2022 and 3.6 million in the first three months of 2021. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 16. Segment Reporting We manufacture and market primarily snack food products, including biscuits, chocolate, gum & candy and various cheese & grocery products, as well as powdered beverage products. 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. 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. Our segment net revenues and earnings were: For the Three Months Ended 2022 2021 (in millions) Net revenues: Latin America $ 826 $ 669 AMEA 1,867 1,745 Europe 2,935 2,847 North America 2,136 1,977 Net revenues $ 7,764 $ 7,238 Earnings before income taxes: Operating income: Latin America $ 103 $ 76 AMEA 272 362 Europe 377 557 North America 418 270 Unrealized gains/(losses) on hedging activities 27 118 General corporate expenses (50) (64) Amortization of intangible assets (32) (38) Gain on acquisition — 9 Acquisition-related costs (21) (7) Operating income 1,094 1,283 Benefit plan non-service income 33 44 Interest and other expense, net (168) (218) Earnings before income taxes $ 959 $ 1,109 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. Net revenues by product category were: For the Three Months Ended March 31, 2022 Latin AMEA Europe North Total (in millions) Biscuits $ 224 $ 657 $ 951 $ 1,799 $ 3,631 Chocolate 248 706 1,512 77 2,543 Gum & Candy 172 203 152 260 787 Beverages 102 197 32 — 331 Cheese & Grocery 80 104 288 — 472 Total net revenues $ 826 $ 1,867 $ 2,935 $ 2,136 $ 7,764 Three Months Ended March 31, 2021 (1) Latin AMEA Europe North Total (in millions) Biscuits $ 177 $ 583 $ 810 $ 1,736 $ 3,306 Chocolate 192 670 1,544 63 2,469 Gum & Candy 131 194 148 178 651 Beverages 94 180 33 — 307 Cheese & Grocery 75 118 312 — 505 Total net revenues $ 669 $ 1,745 $ 2,847 $ 1,977 $ 7,238 (1) Our snack product categories include biscuits, chocolate and gum & candy. During 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
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. |
Principles of Consolidation | Principles of Consolidation: The condensed consolidated financial statements include Mondelēz International, Inc. as well as our wholly owned and majority owned subsidiaries, except our Venezuelan subsidiaries that were deconsolidated in 2015. All intercompany transactions are eliminated. The noncontrolling interest represents the noncontrolling investors' interests in the results of subsidiaries that we control and consolidate. We account for investments over which we exercise significant influence under the equity method of accounting. Investments over which we do not have significant influence or control are not material and as there are no readily determinable fair values for the equity interests, these investments are carried at cost with changes in the investment recognized to the extent cash is received. |
Currency Translation and Highly Inflationary Accounting | 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. 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 expect to apply highly inflationary accounting for our subsidiaries operating in Türkiye and change their functional currency from the Turkish lira to the U.S. dollar. Our operations in Türkiye contributed $43 million, or 0.6% of our condensed consolidated net revenues in the three months ended March 31, 2022. Based on a review of our Turkish lira-denominated monetary assets and liabilities, our operations in Türkiye had an immaterial net monetary liability position as of March 31, 2022. 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 $129 million, or 1.7% of our condensed consolidated net revenues in the three months ended March 31, 2022. As of March 31, 2022, our Argentinean operations had $26 million of Argentinean peso denominated net monetary assets. Within selling, general and administrative expenses, we recorded a remeasurement loss of $5 million during the three months ended March 31, 2022 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 as well as in the ongoing COVID-19 global pandemic and related impacts to our business operations, currencies and net monetary exposures. Since the global onset of COVID-19 in early 2020, most countries in which we do business experienced periods of significant economic uncertainty as well as exchange rate volatility. At this time, within our consolidated entities, Argentina and Türkiye are or will be accounted for as highly inflationary economies as noted above, and we continue to monitor currency volatility and associated risks, including highly inflationary economies. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash:Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. |
Allowances for Credit Losses | 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. |
Transfers of Financial Assets | Transfers of Financial Assets: We account for transfers of financial assets, such as uncommitted revolving non-recourse accounts receivable factoring arrangements, when we have surrendered control over the related assets. Determining whether control has transferred requires an evaluation of relevant legal considerations, an assessment of the nature and extent of our continuing involvement with the assets transferred and any other relevant considerations. We use receivable factoring arrangements periodically when circumstances are favorable to manage liquidity. We have non-recourse factoring arrangements in which we sell eligible trade receivables primarily to banks in exchange for cash. We may then continue to collect the receivables sold, acting solely as a collecting agent on behalf of the banks. The outstanding principal amount of receivables under these arrangements amounted to $887 million as of March 31, 2022 and $761 million as of December 31, 2021. 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. |
New Accounting Pronouncements | New Accounting 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 adopt this standard in the fourth quarter of 2022. Based on our evaluation of our contracts to date, we do not expect this ASU to have a material impact on our consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Changes in Allowances for Credit Losses | 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 (19) (2) (5) Write-offs charged against the allowance 3 — — Currency (2) 3 (2) Balance at March 31, 2022 $ (55) $ (48) $ (17) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Purchase Price Allocation of Net Tangible and Intangible Assets Acquired and Liabilities Assumed | We are working to complete the valuation and have recorded a preliminary purchase price allocation of: (in millions) Cash $ 52 Receivables 102 Inventory 62 Other current assets 4 Property, plant and equipment 406 Finance leases right of use assets 8 Definite life intangible assets 48 Indefinite life intangible assets 686 Goodwill 774 Other assets 79 Assets acquired $ 2,221 Current liabilities 131 Deferred tax liability 155 Finance lease liabilities 8 Other liabilities 21 Total purchase price $ 1,906 Less: long-term debt (436) Less: cash received (52) Net Cash Paid $ 1,418 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | Inventories consisted of the following: As of March 31, 2022 As of December 31, 2021 (in millions) Raw materials $ 891 $ 770 Finished product 2,093 2,054 2,984 2,824 Inventory reserves (146) (116) Inventories, net $ 2,838 $ 2,708 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Components of Property, Plant and Equipment | Property, plant and equipment consisted of the following: As of March 31, 2022 As of December 31, 2021 (in millions) Land and land improvements $ 405 $ 379 Buildings and building improvements 3,322 3,139 Machinery and equipment 12,043 11,842 Construction in progress 669 732 16,439 16,092 Accumulated depreciation (7,424) (7,434) Property, plant and equipment, net $ 9,015 $ 8,658 |
Schedule of Restructuring Charges Related to Property, Plant and Equipment | In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) and losses/(gains) on disposal in the condensed consolidated statements of earnings within asset impairment and exit costs and within the segment results as follows (refer to Note 7, Restructuring Program ). For the Three Months Ended 2022 2021 (in millions) Latin America $ — $ — AMEA — (16) Europe 1 2 North America 1 54 Total $ 2 $ 40 During the three months ended March 31, 2022 and March 31, 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 AMEA Europe North Corporate Total (in millions) For the Three Months Ended March 31, 2022 Restructuring Costs $ (1) $ 2 $ 2 $ 8 $ — $ 11 Implementation Costs 1 1 5 7 6 20 Total $ — $ 3 $ 7 $ 15 $ 6 $ 31 For the Three Months Ended March 31, 2021 Restructuring Costs $ 3 $ (21) $ 6 $ 101 $ (1) $ 88 Implementation Costs 3 2 10 10 9 34 Total $ 6 $ (19) $ 16 $ 111 $ 8 $ 122 Total Project (Inception to Date) Restructuring Costs $ 553 $ 543 $ 1,149 $ 653 $ 149 $ 3,047 Implementation Costs 297 240 549 560 362 2,008 Total $ 850 $ 783 $ 1,698 $ 1,213 $ 511 $ 5,055 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Segment | Goodwill by segment was: As of March 31, 2022 As of December 31, 2021 (in millions) Latin America $ 738 $ 674 AMEA 3,371 3,365 Europe 8,355 7,830 North America 10,154 10,109 Goodwill $ 22,618 $ 21,978 |
Schedule of Intangible Assets Disclosure | Intangible assets consisted of the following: As of March 31, 2022 As of December 31, 2021 (in millions) Indefinite-life intangible assets $ 17,827 $ 17,299 Definite-life intangible assets 3,025 2,991 20,852 20,290 Accumulated amortization (2,023) (1,999) Intangible assets, net $ 18,829 $ 18,291 |
Schedule of Changes in Goodwill and Intangible Assets | Changes in goodwill and intangible assets consisted of: Goodwill Intangible (in millions) Balance at January 1, 2022 $ 21,978 $ 20,290 Currency (134) (94) Acquisitions 774 734 Asset impairments — (78) Balance at March 31, 2022 $ 22,618 $ 20,852 |
Restructuring Program (Tables)
Restructuring Program (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Program Liability | The Simplify to Grow Program liability activity for the three months ended March 31, 2022 was: Severance Asset Total (in millions) Liability balance, January 1, 2022 $ 211 $ — $ 211 Charges 9 2 11 Cash spent (17) — (17) Non-cash settlements/adjustments — (2) (2) Currency (1) — (1) Liability balance, March 31, 2022 $ 202 $ — $ 202 |
Schedule of Restructuring and Implementation Costs by Segment | In connection with our restructuring program, we recorded non-cash property, plant and equipment write-downs (including accelerated depreciation and asset impairments) and losses/(gains) on disposal in the condensed consolidated statements of earnings within asset impairment and exit costs and within the segment results as follows (refer to Note 7, Restructuring Program ). For the Three Months Ended 2022 2021 (in millions) Latin America $ — $ — AMEA — (16) Europe 1 2 North America 1 54 Total $ 2 $ 40 During the three months ended March 31, 2022 and March 31, 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 AMEA Europe North Corporate Total (in millions) For the Three Months Ended March 31, 2022 Restructuring Costs $ (1) $ 2 $ 2 $ 8 $ — $ 11 Implementation Costs 1 1 5 7 6 20 Total $ — $ 3 $ 7 $ 15 $ 6 $ 31 For the Three Months Ended March 31, 2021 Restructuring Costs $ 3 $ (21) $ 6 $ 101 $ (1) $ 88 Implementation Costs 3 2 10 10 9 34 Total $ 6 $ (19) $ 16 $ 111 $ 8 $ 122 Total Project (Inception to Date) Restructuring Costs $ 553 $ 543 $ 1,149 $ 653 $ 149 $ 3,047 Implementation Costs 297 240 549 560 362 2,008 Total $ 850 $ 783 $ 1,698 $ 1,213 $ 511 $ 5,055 |
Debt and Borrowing Arrangemen_2
Debt and Borrowing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings and Related Weighted-Average Interest Rates | Our short-term borrowings and related weighted-average interest rates consisted of: As of March 31, 2022 As of December 31, 2021 Amount Weighted- Amount Weighted- (in millions, except percentages) Commercial paper $ 463 0.9 % $ 192 0.2 % Bank loans 143 3.5 % 24 8.6 % Total short-term borrowings $ 606 $ 216 |
Schedule of Uncommitted and Committed Credit Lines Available | Our uncommitted credit lines and committed credit lines available as of March 31, 2022 and December 31, 2021 include: As of March 31, 2022 As of December 31, 2021 Facility Amount Borrowed Amount Facility Amount Borrowed Amount (in millions) Uncommitted credit facilities $ 1,435 $ 143 $ 1,367 $ 24 Credit facility expiry (1) : November 30, 2022 (2) 2,000 — — — February 23, 2022 — — 2,500 — February 22, 2023 2,500 — — — February 27, 2024 — — 4,500 — 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 March 31, 2022, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $38.6 billion. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. (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. The maturity dates of any loans drawn under this facility will be three years after the funding date of the applicable loan(s). |
Schedule of Debt Redemptions | 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 |
Schedule of Debt Repayments | On March 18, 2022, we completed a redemption of long term U.S. dollar denominated notes for the following amounts (in millions): Interest Rate Redemption Date Maturity Date Amount Redeemed USD Equivalent 0.625% March 2022 July 2022 $1,000 $1,000 |
Schedule of Debt Issuances | During the three months ended March 31, 2022, we issued the following notes (in millions): Issuance Date Interest Rate Maturity Date Gross Proceeds (1) Gross Proceeds USD Equivalent March 2022 2.125% March 2024 $500 $500 March 2022 2.625% March 2027 $750 $750 March 2022 3.000% March 2032 $750 $750 |
Schedule of Fair Value of Debt | The fair value of our short-term borrowings at March 31, 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 long-term debt was determined using quoted prices in active markets (Level 1 valuation data) for the publicly traded debt obligations. As of March 31, 2022 As of December 31, 2021 (in millions) Fair Value $ 19,009 $ 20,249 Carrying Value $ 19,704 $ 19,512 |
Schedule of Interest and Other Expense | Interest and other expense, net consisted of: For the Three Months Ended 2022 2021 (in millions) Interest expense, debt $ 91 $ 98 Loss on debt extinguishment and 129 137 Other (income)/expense, net (52) (17) Interest and other expense, net $ 168 $ 218 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Effects of Derivative Instruments | Pre-tax gains/(losses) recorded in net earnings for economic hedges were: For the Three Months Ended Location of Gain/(Loss) Recognized in Earnings 2022 2021 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ (11) $ 70 Interest and other expense, net Forecasted transactions (7) 50 Cost of sales Forecasted transactions 21 (16) Interest and other expense, net Forecasted transactions 2 2 Selling, general and administrative expenses Commodity contracts 237 94 Cost of sales Equity method investment — — Gain on equity method investment transactions Total $ 242 $ 200 |
Cash flow hedges | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Cash Flow Hedges Effect on Accumulated Other Comprehensive Earnings/(Losses), Net of Taxes | Cash flow hedge activity, net of taxes, within accumulated other comprehensive earnings/(losses) included: For the Three Months Ended 2022 2021 (in millions) Accumulated (loss)/gain at beginning of period $ (148) $ (161) Transfer of realized losses/(gains) in fair value 25 5 Unrealized (loss)/gain in fair value 27 (3) Accumulated (loss)/gain at end of period $ (96) $ (159) |
Schedule of Effects of Derivative Instruments | After-tax gains/(losses) reclassified from accumulated other comprehensive earnings/(losses) to net earnings were: For the Three Months Ended 2022 2021 (in millions) Currency exchange contracts – forecasted transactions $ (2) $ — Interest rate contracts (23) (5) Total $ (25) $ (5) After-tax gains/(losses) recognized in other comprehensive earnings/(losses) were: For the Three Months Ended 2022 2021 (in millions) Currency exchange contracts – $ 2 $ (1) Interest rate contracts 25 (2) Total $ 27 $ (3) |
Net investment hedges | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Hedges of Net Investments in International Operations | The impacts of the net investment hedge derivative contracts on other comprehensive earnings and net earnings were as follows: For the Three Months Ended 2022 2021 (in millions) After-tax gain/(loss) on NIH contracts (1) $ 41 $ 59 (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 2022 2021 (in millions) Amounts excluded from the assessment of hedge effectiveness (1) $ 22 $ 20 (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. 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 2022 2021 (in millions) Euro notes $ 74 $ 124 British pound sterling notes 8 (2) Swiss franc notes 6 56 Canadian notes (4) (5) |
Derivative | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value of Derivatives Instruments | Derivative instruments were recorded at fair value in the condensed consolidated balance sheets as follows: As of March 31, 2022 As of December 31, 2021 Asset Liability Asset Liability (in millions) Derivatives designated as accounting hedges: Currency exchange contracts $ 1 $ 3 $ — $ — Interest rate contracts 27 3 27 17 Net investment hedge derivative contracts (1) 137 51 117 45 $ 165 $ 57 $ 144 $ 62 Derivatives not designated as Currency exchange contracts $ 135 $ 124 $ 156 $ 40 Commodity contracts 589 220 387 137 Equity method investment contracts (2) — 3 — 3 $ 724 $ 347 $ 543 $ 180 Total fair value $ 889 $ 404 $ 687 $ 242 (1) Net investment hedge derivative contracts consist of cross-currency interest rate swaps, forward contracts and options. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote. (2) Equity method investment contracts consist of the bifurcated embedded derivative option that was a component of the September 20, 2021 €300 million exchangeable bonds issuance. Refer to Note 8, Debt and Borrowing Arrangements. |
Schedule of Derivative Instruments Fair Value and Measurement Inputs | The fair values (asset/(liability)) of our derivative instruments were determined using: As of March 31, 2022 Total Quoted Prices in Significant Significant (in millions) Currency exchange contracts $ 9 $ — $ 9 $ — Commodity contracts 369 213 156 — Interest rate contracts 24 — 24 — Net investment hedge contracts 86 — 86 — Equity method investment contracts (3) — (3) — Total derivatives $ 485 $ 213 $ 272 $ — As of December 31, 2021 Total Quoted Prices in Significant Significant (in millions) Currency exchange contracts $ 116 $ — $ 116 $ — Commodity contracts 251 161 90 — Interest rate contracts 10 — 10 — Net investment hedge contracts 71 — 71 — Equity method investment contracts (3) — (3) — Total derivatives $ 445 $ 161 $ 284 $ — |
Schedule of Notional Values of Derivative Instruments | The notional values of our hedging instruments were: Notional Amount As of March 31, 2022 As of December 31, 2021 (in millions) Currency exchange contracts: Intercompany loans and forecasted interest payments $ 3,073 $ 1,891 Forecasted transactions 4,822 4,831 Commodity contracts 10,281 9,694 Interest rate contracts 1,850 1,850 Net investment hedges: Net investment hedge derivative contracts 7,306 3,915 Non-U.S. dollar debt designated as net investment hedges Euro notes 3,525 3,622 British pound sterling notes 346 356 Swiss franc notes 802 811 Canadian dollar notes 480 475 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Benefit Costs/(Credits) | Net periodic pension cost/(benefit) consisted of the following: U.S. Plans Non-U.S. Plans For the Three Months Ended For the Three Months Ended 2022 2021 2022 2021 (in millions) Service cost $ 1 $ 2 $ 39 $ 35 Interest cost 11 10 41 29 Expected return on plan assets (18) (18) (93) (106) Amortization: Net loss from experience differences 3 4 19 33 Prior service cost/(benefit) — — (1) (2) Settlement losses and other expenses 3 3 — — Net periodic pension cost/(benefit) $ — $ 1 $ 5 $ (11) |
Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Benefit Costs/(Credits) | Net periodic postretirement health care cost/(benefit) consisted of the following: For the Three Months Ended 2022 2021 (in millions) Service cost $ 1 $ 1 Interest cost 2 2 Amortization: Net loss from experience differences — 1 Prior service credit — — Net periodic postretirement health care cost/(benefit) $ 3 $ 4 |
Postemployment Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Components of Net Benefit Costs/(Credits) | Net periodic postemployment cost consisted of the following: For the Three Months Ended 2022 2021 (in millions) Service cost $ 1 $ 1 Interest cost 1 1 Amortization of net gains (1) (1) Net periodic postemployment cost $ 1 $ 1 |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock Options Activity | Stock option activity is reflected below: Shares Subject Weighted- Average Aggregate Balance at January 1, 2022 23,503,759 $42.65 5 years $ 556 million Annual grant to eligible employees 2,180,540 64.65 Additional options issued 1,710 65.97 Total options granted 2,182,250 64.65 Options exercised (1) (2,329,139) 34.61 $ 74 million Options canceled (208,761) 53.50 Balance at March 31, 2022 23,148,109 45.43 6 years $ 406 million (1) Cash received from options exercised was $70 million in the three months ended March 31, 2022. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $10 million in the three months ended March 31, 2022. |
Performance Share Units and Other Stock-Based Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Performance Share Units and Stock-Based Awards Activity | Our performance share unit, deferred stock unit and historically granted restricted stock activity is reflected below: Number Grant Date Weighted-Average Fair Value Per Share (3) Weighted-Average Aggregate Fair Value (3) Balance at January 1, 2022 4,668,046 $57.04 Annual grant to eligible employees: Feb 24, 2022 Performance share units 806,590 61.87 Deferred stock units 505,090 64.65 Additional shares granted (1) 653,365 Various 60.17 Total shares granted 1,965,045 62.02 $ 122 million Vested (2) (1,670,302) 55.34 $ 92 million Forfeited (187,367) 61.42 Balance at March 31, 2022 4,775,422 59.51 (1) Includes performance share units and deferred stock units. (2) The actual tax benefit/(expense) realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $5 million in the three months ended March 31, 2022. |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Earnings/(Losses) | The following table summarizes the changes in accumulated balances of each component of accumulated other comprehensive earnings/(losses) attributable to Mondelēz International. Amounts reclassified from accumulated other comprehensive earnings/(losses) to net earnings (net of tax) were net losses of $42 million in the first quarter of 2022 and $34 million in the first quarter of 2021. For the Three Months Ended 2022 2021 (in millions) Currency Translation Adjustments: Balance at beginning of period $ (9,097) $ (8,655) Currency translation adjustments 6 (134) Tax (expense)/benefit 44 (2) Other comprehensive earnings/(losses) 50 (136) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 4 9 Balance at end of period (9,043) (8,782) Pension and Other Benefit Plans: Balance at beginning of period $ (1,379) $ (1,874) Net actuarial gain/(loss) arising during period 44 (1) Tax (expense)/benefit on net actuarial gain/(loss) — — Losses/(gains) reclassified into net earnings: Amortization of experience losses and prior service costs (2) 20 35 Settlement losses and other expenses (2) 3 3 Tax expense/(benefit) on reclassifications (3) (6) (9) Currency impact 32 41 Other comprehensive earnings/(losses) 93 69 Balance at end of period (1,286) (1,805) Derivative Cash Flow Hedges: Balance at beginning of period $ (148) $ (161) Net derivative gains/(losses) 26 (7) Tax (expense)/benefit on net derivative gain/(loss) (1) 1 Losses/(gains) reclassified into net earnings: Interest rate contracts (2)(4) 48 6 Tax expense/(benefit) on reclassifications (3) (23) (1) Currency impact 2 3 Other comprehensive earnings/(losses) 52 2 Balance at end of period (96) (159) Accumulated other comprehensive income Balance at beginning of period $ (10,624) $ (10,690) Total other comprehensive earnings/(losses) 195 (65) Less: other comprehensive (earnings)/loss attributable to noncontrolling interests 4 9 Other comprehensive earnings/(losses) attributable to Mondelēz International 199 (56) Balance at end of period $ (10,425) $ (10,746) (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 recorded within gain on equity method investment transactions. (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. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share (“EPS”) were calculated as follows: For the Three Months Ended 2022 2021 (in millions, except per share data) Net earnings $ 861 $ 968 Noncontrolling interest earnings (6) (7) Net earnings attributable to Mondelēz International $ 855 $ 961 Weighted-average shares for basic EPS 1,389 1,412 Plus incremental shares from assumed conversions 9 10 Weighted-average shares for diluted EPS 1,398 1,422 Basic earnings per share attributable to $ 0.62 $ 0.68 Diluted earnings per share attributable to $ 0.61 $ 0.68 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Net Revenues and Earnings | Our segment net revenues and earnings were: For the Three Months Ended 2022 2021 (in millions) Net revenues: Latin America $ 826 $ 669 AMEA 1,867 1,745 Europe 2,935 2,847 North America 2,136 1,977 Net revenues $ 7,764 $ 7,238 Earnings before income taxes: Operating income: Latin America $ 103 $ 76 AMEA 272 362 Europe 377 557 North America 418 270 Unrealized gains/(losses) on hedging activities 27 118 General corporate expenses (50) (64) Amortization of intangible assets (32) (38) Gain on acquisition — 9 Acquisition-related costs (21) (7) Operating income 1,094 1,283 Benefit plan non-service income 33 44 Interest and other expense, net (168) (218) Earnings before income taxes $ 959 $ 1,109 |
Schedule of Net Revenues by Product Category | Net revenues by product category were: For the Three Months Ended March 31, 2022 Latin AMEA Europe North Total (in millions) Biscuits $ 224 $ 657 $ 951 $ 1,799 $ 3,631 Chocolate 248 706 1,512 77 2,543 Gum & Candy 172 203 152 260 787 Beverages 102 197 32 — 331 Cheese & Grocery 80 104 288 — 472 Total net revenues $ 826 $ 1,867 $ 2,935 $ 2,136 $ 7,764 Three Months Ended March 31, 2021 (1) Latin AMEA Europe North Total (in millions) Biscuits $ 177 $ 583 $ 810 $ 1,736 $ 3,306 Chocolate 192 670 1,544 63 2,469 Gum & Candy 131 194 148 178 651 Beverages 94 180 33 — 307 Cheese & Grocery 75 118 312 — 505 Total net revenues $ 669 $ 1,745 $ 2,847 $ 1,977 $ 7,238 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2022USD ($)countryfacility | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | ||
Summary of Significant Accounting Policies [Line Items] | |||||
Asset impairments and accelerated depreciation | $ 155 | $ 43 | |||
Inventory valuation reserves and write-offs | 146 | $ 116 | |||
Net revenues | $ 7,764 | 7,238 | [1] | ||
Number of countries in which products are sold (more than) | country | 150 | ||||
Number of countries in which entity operates (more than) | country | 80 | ||||
Restricted cash | $ 7 | 7 | |||
Cash, cash equivalents and restricted cash | 1,953 | 2,059 | 3,553 | $ 3,650 | |
Outstanding principal amount of receivables sold under factoring arrangement | 887 | $ 761 | |||
Operating lease right-of-use assets obtained in exchange for lease obligations | 95 | 29 | |||
Finance lease right-of-use assets in exchange for lease obligations | $ 56 | $ 30 | |||
Military Invasion of Ukraine | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of manufacturing facilities damaged | facility | 2 | ||||
Incremental costs due to war in Ukraine, before tax | $ 143 | ||||
Incremental costs due to war in Ukraine, after tax | 145 | ||||
Property, plant and equipment impairment charges | 75 | ||||
Inventory valuation reserves and write-offs | 33 | ||||
Trade receivable, allowance for credit loss, period increase | 19 | ||||
Accrued expense | 16 | ||||
Cost of sales | Military Invasion of Ukraine | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Incremental costs due to war in Ukraine, before tax | 44 | ||||
Restructuring, Settlement and Impairment Provisions | Military Invasion of Ukraine | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Incremental costs due to war in Ukraine, before tax | 75 | ||||
General and Administrative Expense | Military Invasion of Ukraine | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Incremental costs due to war in Ukraine, before tax | 24 | ||||
Turkey | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Net revenues | $ 43 | ||||
Percentage of consolidated net revenues | 0.60% | ||||
Argentina | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Net revenues | $ 129 | ||||
Percentage of consolidated net revenues | 1.70% | ||||
Net monetary liabilities | $ (26) | ||||
Argentina | Selling, general and administrative expenses | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Remeasurement loss due to inflationary accounting | $ 5 | ||||
[1] | Our snack product categories include biscuits, chocolate and gum & candy. During 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. |
Basis of Presentation - Changes
Basis of Presentation - Changes in Allowances for Credit Losses (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Allowance for Trade Receivables | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at January 1, 2022 | $ (37) |
Current period provision for expected credit losses | (19) |
Write-offs charged against the allowance | 3 |
Currency | (2) |
Balance at March 31, 2022 | (55) |
Allowance for Other Current Receivables | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at January 1, 2022 | (49) |
Current period provision for expected credit losses | (2) |
Write-offs charged against the allowance | 0 |
Currency | 3 |
Balance at March 31, 2022 | (48) |
Allowance for Long-Term Receivables | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at January 1, 2022 | (10) |
Current period provision for expected credit losses | (5) |
Write-offs charged against the allowance | 0 |
Currency | (2) |
Balance at March 31, 2022 | $ (17) |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) £ in Millions, $ in Millions, $ in Millions, € in Billions | Apr. 24, 2022USD ($) | Jan. 03, 2022USD ($) | Jan. 03, 2022EUR (€) | Nov. 01, 2021USD ($) | Nov. 01, 2021AUD ($) | Apr. 01, 2021USD ($) | Apr. 01, 2021AUD ($) | Mar. 25, 2021USD ($) | Mar. 25, 2021GBP (£) | Jan. 04, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) |
Business Acquisition [Line Items] | |||||||||||||
Acquisition-related costs | $ 21 | $ 7 | |||||||||||
Goodwill | 22,618 | $ 21,978 | |||||||||||
Net Cash Paid | 1,418 | 490 | |||||||||||
Pre-tax gain to step up investment to fair value and consolidate the company | 0 | 9 | |||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | MaxFoods Pty Ltd. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Proceeds from divestiture of businesses, net of cash divested | $ 41 | $ 57 | |||||||||||
Ricolino | Subsequent Event | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business combination price of acquisition expected | $ 1,300 | ||||||||||||
Chipita, S.A. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Closing cash consideration | $ 1,400 | € 1.3 | |||||||||||
Liabilities assumed | 436 | 0.4 | |||||||||||
Purchase price | 1,906 | € 1.7 | |||||||||||
Incremental net revenues from acquisition | 152 | ||||||||||||
Incremental operating income (loss) from acquisition | 4 | ||||||||||||
Acquisition-related costs | 21 | ||||||||||||
Acquisition integration costs | 35 | ||||||||||||
Definite life intangible assets | 48 | ||||||||||||
Goodwill | 774 | ||||||||||||
Property, plant and equipment | 406 | ||||||||||||
Inventory acquired | 62 | ||||||||||||
Accounts receivables | 102 | ||||||||||||
Other assets | 79 | ||||||||||||
Other current assets acquired | 4 | ||||||||||||
Current liabilities assumed | 131 | ||||||||||||
Net Cash Paid | 1,418 | ||||||||||||
Deferred tax liabilities assumed | 155 | ||||||||||||
Long-term other liabilities | 21 | ||||||||||||
Chipita, S.A. | Trade Names | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Indefinite life intangible assets | $ 686 | ||||||||||||
Gourmet Food | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Closing cash consideration | $ 343 | $ 450 | |||||||||||
Indefinite life intangible assets | 41 | ||||||||||||
Incremental net revenues from acquisition | 14 | ||||||||||||
Incremental operating income (loss) from acquisition | 1 | ||||||||||||
Acquisition-related costs | 1 | ||||||||||||
Definite life intangible assets | 80 | ||||||||||||
Goodwill | 164 | ||||||||||||
Property, plant and equipment | 19 | ||||||||||||
Inventory acquired | 18 | ||||||||||||
Accounts receivables | 25 | ||||||||||||
Other assets | 12 | ||||||||||||
Operating lease, right-of-use asset acquired | 5 | ||||||||||||
Other current assets acquired | 3 | ||||||||||||
Current liabilities assumed | 19 | ||||||||||||
Noncurrent operating lease liability assumed | $ 5 | ||||||||||||
Grenade | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Indefinite life intangible assets | $ 82 | ||||||||||||
Incremental net revenues from acquisition | 21 | ||||||||||||
Incremental operating income (loss) from acquisition | $ 2 | ||||||||||||
Acquisition-related costs | 2 | ||||||||||||
Definite life intangible assets | 28 | ||||||||||||
Goodwill | 181 | ||||||||||||
Property, plant and equipment | 1 | ||||||||||||
Inventory acquired | 11 | ||||||||||||
Accounts receivables | 18 | ||||||||||||
Current liabilities assumed | 25 | ||||||||||||
Net Cash Paid | 261 | £ 188 | |||||||||||
Deferred tax liabilities assumed | 20 | ||||||||||||
Long-term other liabilities | $ 15 | ||||||||||||
Hu | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Indefinite life intangible assets | $ 123 | ||||||||||||
Acquisition-related costs | $ 4 | ||||||||||||
Definite life intangible assets | 51 | ||||||||||||
Goodwill | 202 | ||||||||||||
Property, plant and equipment | 1 | ||||||||||||
Inventory acquired | 2 | ||||||||||||
Accounts receivables | 4 | ||||||||||||
Current liabilities assumed | 5 | ||||||||||||
Net Cash Paid | 229 | ||||||||||||
Long-term other liabilities | $ 132 | ||||||||||||
Percentage of interest acquired | 93.00% | ||||||||||||
Fair value of contingent consideration obligation | $ 132 | ||||||||||||
Pre-tax gain to step up investment to fair value and consolidate the company | 9 | ||||||||||||
After-tax gain to step up investment to fair value and consolidate the company | 7 | ||||||||||||
Amount of equity in the acquiree held by the acquirer immediately before the acquisition date in a business combination | $ 8 | ||||||||||||
Percentage of equity in the acquiree held by the acquirer immediately before the acquisition date in a business combination | 7.00% |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Purchase Price Allocation of Net Tangible and Intangible Assets Acquired and Liabilities Assumed (Details) $ in Millions, € in Billions | Jan. 03, 2022USD ($) | Jan. 03, 2022EUR (€) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 22,618 | $ 21,978 | |||
Net Cash Paid | $ 1,418 | $ 490 | |||
Chipita, S.A. | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 52 | ||||
Receivables | 102 | ||||
Inventory | 62 | ||||
Other current assets | 4 | ||||
Property, plant and equipment | 406 | ||||
Finance leases right of use assets | 8 | ||||
Definite life intangible assets | 48 | ||||
Goodwill | 774 | ||||
Other assets | 79 | ||||
Assets acquired | 2,221 | ||||
Current liabilities | 131 | ||||
Deferred tax liability | 155 | ||||
Finance lease liabilities | 8 | ||||
Other liabilities | 21 | ||||
Total purchase price | 1,906 | € 1.7 | |||
Less: long-term debt | (436) | € (0.4) | |||
Less: cash received | (52) | ||||
Net Cash Paid | 1,418 | ||||
Chipita, S.A. | Trade Names | |||||
Business Acquisition [Line Items] | |||||
Indefinite life intangible assets | $ 686 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 891 | $ 770 |
Finished product | 2,093 | 2,054 |
Inventories, gross | 2,984 | 2,824 |
Inventory reserves | (146) | (116) |
Inventories, net | $ 2,838 | $ 2,708 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 16,439 | $ 16,092 |
Accumulated depreciation | (7,424) | (7,434) |
Property, plant and equipment, net | 9,015 | 8,658 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 405 | 379 |
Buildings and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,322 | 3,139 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 12,043 | 11,842 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 669 | $ 732 |
Property, Plant and Equipment -
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Capital expenditures | $ 167 | $ 216 |
Accrued capital expenditures unpaid | 244 | 230 |
Payments for capital expenditures accrued in the prior year | $ 249 | $ 275 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Asset Impairment and Exit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Total | $ 155 | $ 43 |
Simplify to Grow Program | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Total | 2 | 40 |
Simplify to Grow Program | Latin America | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Total | 0 | 0 |
Simplify to Grow Program | AMEA | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Total | 0 | (16) |
Simplify to Grow Program | Europe | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Total | 1 | 2 |
Simplify to Grow Program | North America | ||
Impaired Assets to be Disposed of by Method Other than Sale [Line Items] | ||
Total | $ 1 | $ 54 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill by Segment (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 22,618 | $ 21,978 |
Latin America | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 738 | 674 |
AMEA | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 3,371 | 3,365 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 8,355 | 7,830 |
North America | ||
Segment Reporting Information [Line Items] | ||
Goodwill | $ 10,154 | $ 10,109 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Indefinite-life intangible assets | $ 17,827 | $ 17,299 |
Definite-life intangible assets | 3,025 | 2,991 |
Total intangible assets, gross | 20,852 | 20,290 |
Accumulated amortization | (2,023) | (1,999) |
Intangible assets, net | $ 18,829 | $ 18,291 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)brand | Mar. 31, 2021USD ($) | Jul. 01, 2021brand | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense for intangible assets | $ 32,000,000 | $ 38,000,000 | |
Estimated amortization expense of intangibles in 2022 | 130,000,000 | ||
Estimated amortization expense of intangibles in 2023 | 130,000,000 | ||
Estimated amortization expense of intangibles in 2024 | 130,000,000 | ||
Estimated amortization expense of intangibles in 2025 | 105,000,000 | ||
Estimated amortization expense of intangibles in 2026 | 65,000,000 | ||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill acquired | 774,000,000 | ||
Intangibles acquired | 734,000,000 | ||
Impairment of intangible assets | $ 78,000,000 | ||
Brands | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Impairment of intangible assets | $ 0 | ||
Number of brands with fair value in excess of book value of 10% or less | brand | 8 | 8 | |
Book value of brands with fair value in excess of book value of 10% or less | $ 1,045,000,000 | ||
Chipita, S.A. | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill acquired | 774,000,000 | ||
Intangibles acquired | $ 734,000,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Goodwill and Intangible Assets (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill | |
Balance at January 1, 2022 | $ 21,978 |
Currency | (134) |
Acquisitions | 774 |
Asset impairments | 0 |
Balance at March 31, 2022 | 22,618 |
Intangible Assets, at cost | |
Balance at January 1, 2022 | 20,290 |
Currency | (94) |
Acquisitions | 734 |
Asset impairments | (78) |
Balance at March 31, 2022 | $ 20,852 |
Equity Method Investments (Deta
Equity Method Investments (Details) € / shares in Units, shares in Millions, $ in Millions | Sep. 20, 2021EUR (€)€ / sharesshares | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022EUR (€) | Dec. 31, 2021USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investments | $ 5,255 | $ 5,289 | |||
Equity method investment net earnings | 117 | $ 78 | |||
Cash dividends received from equity method investments | $ 107 | $ 74 | |||
0.000% Notes Due September 2024 | Exchangeable Notes | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Debt issued | € | € 300,000,000 | € 300,000,000 | |||
Exchange price (in EUR per share) | € / shares | € 35.40 | ||||
Debt convertible into equity interest, shares issuable (in shares) | shares | 8.5 | ||||
Debt convertible into equity interest, percentage | 0.07 | ||||
JDEP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 22.70% | 22.70% | |||
KDP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 5.30% | 5.30% | |||
Dong Suh Foods Corporation | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 50.00% | 50.00% | |||
Dong Suh Oil & Fats Co. Ltd. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment, ownership percentage | 49.00% | 49.00% | |||
JDEP and KDP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Fair value of ownership of equity method investment | $ 6,100 |
Restructuring Program - Narrati
Restructuring Program - Narrative (Details) - USD ($) $ in Millions | Sep. 06, 2018 | Aug. 31, 2016 | May 06, 2014 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
2014-2018 Restructuring Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | $ 5,700 | $ 3,500 | |||||
Reallocation of previously approved capital expenditures to be spent on restructuring program cash costs | 600 | ||||||
2014-2018 Restructuring Program | Maximum | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved capital expenditures | 1,600 | $ 2,200 | |||||
2014-2018 Restructuring Program | Restructuring Program Charges | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | 4,100 | ||||||
2014-2018 Restructuring Program | Cash Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | 3,100 | ||||||
2014-2018 Restructuring Program | Non-cash Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | $ 1,000 | ||||||
Simplify to Grow Program | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | $ 7,700 | ||||||
Restructuring and implementation charges | $ 31 | $ 122 | $ 5,055 | ||||
Restructuring charges | 11 | 88 | 3,047 | ||||
Cash spent in restructuring | 17 | ||||||
Non-cash asset write-downs | 2 | ||||||
Gain on sale of property | 40 | ||||||
Restructuring reserve | 202 | 202 | $ 211 | ||||
Implementation costs | 20 | 34 | 2,008 | ||||
Simplify to Grow Program | Maximum | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved capital expenditures | 2,300 | ||||||
Increase in approved restructuring program costs | 1,300 | ||||||
Increase in approved capital expenditures | 700 | ||||||
Simplify to Grow Program | Other current liabilities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve | 172 | 172 | |||||
Simplify to Grow Program | Other liabilities | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring reserve | 30 | 30 | |||||
Simplify to Grow Program | Restructuring Program Charges | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | 5,400 | ||||||
Simplify to Grow Program | Cash Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | 4,100 | ||||||
Simplify to Grow Program | Non-cash Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Approved restructuring program cost | $ 1,300 | ||||||
Simplify to Grow Program | Severance and Related Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | 9 | ||||||
Cash spent in restructuring | 17 | $ 34 | |||||
Non-cash asset write-downs | 0 | ||||||
Restructuring reserve | $ 202 | $ 202 | $ 211 |
Restructuring Program - Restruc
Restructuring Program - Restructuring Liability Activity (Details) - Simplify to Grow Program - USD ($) $ in Millions | 3 Months Ended | 95 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | |
Restructuring Reserve [Roll Forward] | |||
Liability balance, January 1, 2022 | $ 211 | ||
Charges | 11 | $ 88 | $ 3,047 |
Cash spent | (17) | ||
Non-cash settlements/adjustments | (2) | ||
Currency | (1) | ||
Liability balance, March 31, 2022 | 202 | 202 | |
Severance and related costs | |||
Restructuring Reserve [Roll Forward] | |||
Liability balance, January 1, 2022 | 211 | ||
Charges | 9 | ||
Cash spent | (17) | $ (34) | |
Non-cash settlements/adjustments | 0 | ||
Currency | (1) | ||
Liability balance, March 31, 2022 | 202 | 202 | |
Asset Write-downs | |||
Restructuring Reserve [Roll Forward] | |||
Liability balance, January 1, 2022 | 0 | ||
Charges | 2 | ||
Cash spent | 0 | ||
Non-cash settlements/adjustments | (2) | ||
Currency | 0 | ||
Liability balance, March 31, 2022 | $ 0 | $ 0 |
Restructuring Program - Restr_2
Restructuring Program - Restructuring and Implementation Costs by Segments (Details) - Simplify to Grow Program - USD ($) $ in Millions | 3 Months Ended | 95 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Costs | $ 11 | $ 88 | $ 3,047 |
Implementation Costs | 20 | 34 | 2,008 |
Total | 31 | 122 | 5,055 |
Operating Segments | Latin America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Costs | (1) | 3 | 553 |
Implementation Costs | 1 | 3 | 297 |
Total | 0 | 6 | 850 |
Operating Segments | AMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Costs | 2 | (21) | 543 |
Implementation Costs | 1 | 2 | 240 |
Total | 3 | (19) | 783 |
Operating Segments | Europe | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Costs | 2 | 6 | 1,149 |
Implementation Costs | 5 | 10 | 549 |
Total | 7 | 16 | 1,698 |
Operating Segments | North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Costs | 8 | 101 | 653 |
Implementation Costs | 7 | 10 | 560 |
Total | 15 | 111 | 1,213 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Costs | 0 | (1) | 149 |
Implementation Costs | 6 | 9 | 362 |
Total | $ 6 | $ 8 | $ 511 |
Debt and Borrowing Arrangemen_3
Debt and Borrowing Arrangements - Short-Term Borrowings and Related Weighted-Average Interest Rates (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 606 | $ 216 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 463 | $ 192 |
Weighted-Average Rate | 0.90% | 0.20% |
Bank loans | ||
Short-term Debt [Line Items] | ||
Amount Outstanding | $ 143 | $ 24 |
Weighted-Average Rate | 3.50% | 8.60% |
Debt and Borrowing Arrangemen_4
Debt and Borrowing Arrangements - Uncommitted and Committed Credit Lines Available (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Amount Outstanding | $ 606,000,000 | $ 216,000,000 | |
Line of Credit | Credit Facility Expiring February 27, 2024 | |||
Debt Instrument [Line Items] | |||
Facility Amount | [1] | 0 | 4,500,000,000 |
Borrowed Amount | [1] | 0 | 0 |
Line of Credit | Credit Facility Expiring February 23, 2027 | |||
Debt Instrument [Line Items] | |||
Facility Amount | [1] | 4,500,000,000 | 0 |
Borrowed Amount | [1] | 0 | 0 |
Line of Credit | Multi-year Senior Unsecured Revolving Credit Facility Expiring February 27, 2024 | Revolving Credit Agreement | |||
Debt Instrument [Line Items] | |||
Total shareholders' equity, excluding accumulated other comprehensive earnings/(losses) | 38,600,000,000 | ||
Line of Credit | Multi-year Senior Unsecured Revolving Credit Facility Expiring February 27, 2024 | Revolving Credit Agreement | Minimum | |||
Debt Instrument [Line Items] | |||
Total shareholders' equity, excluding accumulated other comprehensive earnings/(losses) | 25,000,000,000 | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Amount Outstanding | 143,000,000 | 24,000,000 | |
Line of Credit | Uncommitted credit facilities | |||
Debt Instrument [Line Items] | |||
Facility Amount | 1,435,000,000 | 1,367,000,000 | |
Amount Outstanding | 143,000,000 | 24,000,000 | |
Line of Credit | Credit Facility Expiring November 30, 2022 | |||
Debt Instrument [Line Items] | |||
Facility Amount | [1],[2] | 2,000,000,000 | 0 |
Amount Outstanding | [1],[2] | 0 | 0 |
Line of Credit | Credit Facility Expiring February 23, 2022 | |||
Debt Instrument [Line Items] | |||
Facility Amount | [1] | 0 | 2,500,000,000 |
Amount Outstanding | [1] | 0 | 0 |
Line of Credit | Credit Facility Expiring February 22, 2023 | |||
Debt Instrument [Line Items] | |||
Facility Amount | [1] | 2,500,000,000 | 0 |
Amount Outstanding | [1] | $ 0 | $ 0 |
[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 March 31, 2022, we complied with this covenant as our shareholders' equity, as defined by the covenant, was $38.6 billion. The revolving credit facility also contains customary representations, covenants and events of default. There are no credit rating triggers, provisions or other financial covenants that could require us to post collateral as security. | ||
[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. The maturity dates of any loans drawn under this facility will be three years after the funding date of the applicable loan(s). |
Debt and Borrowing Arrangemen_5
Debt and Borrowing Arrangements - Narrative (Details) $ in Millions, € in Billions | 3 Months Ended | |||
Mar. 31, 2022USD ($) | Mar. 31, 2022EUR (€) | Mar. 31, 2021USD ($) | ||
Debt Instrument [Line Items] | ||||
Loss on debt extinguishment and related expenses | $ (129) | $ (137) | ||
Loss on extinguishment of debt | (38) | (110) | ||
Derivative, loss on derivative | (91) | |||
Interest and other expense, net | (168) | (218) | ||
Business Combination, Debt Assumed | Chipita, S.A. | ||||
Debt Instrument [Line Items] | ||||
Repayments of assumed debt | 400 | € 0.4 | ||
Net investment hedge derivative contracts | Net investment hedge debt | ||||
Debt Instrument [Line Items] | ||||
Net investment hedge derivative contracts excluded from hedge effectiveness | [1] | 22 | $ 20 | |
Currency exchange contracts | Early Settlement of Currency Exchange Contracts | ||||
Debt Instrument [Line Items] | ||||
Interest and other expense, net | $ 20 | |||
[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. |
Debt and Borrowing Arrangemen_6
Debt and Borrowing Arrangements - Debt Redemptions (Details) - Notes Payable $ in Millions | Mar. 31, 2022USD ($) |
3.625% Notes Due February 2026 | |
Debt Instrument [Line Items] | |
Interest Rate | 3.625% |
Amount Redeemed | $ 130 |
4.125% Notes Due May 2028 | |
Debt Instrument [Line Items] | |
Interest Rate | 4.125% |
Amount Redeemed | $ 211 |
2.750% Notes Due April 2030 | |
Debt Instrument [Line Items] | |
Interest Rate | 2.75% |
Amount Redeemed | $ 500 |
6.500% Notes Due November 2031 | |
Debt Instrument [Line Items] | |
Interest Rate | 6.50% |
Amount Redeemed | $ 17 |
7.000% Notes Due August 2037 | |
Debt Instrument [Line Items] | |
Interest Rate | 7.00% |
Amount Redeemed | $ 10 |
6.875% Notes Due February 2038 | |
Debt Instrument [Line Items] | |
Interest Rate | 6.875% |
Amount Redeemed | $ 21 |
6.875% Notes Due January 2039 | |
Debt Instrument [Line Items] | |
Interest Rate | 6.875% |
Amount Redeemed | $ 8 |
6.500% Notes Due February 2040 | |
Debt Instrument [Line Items] | |
Interest Rate | 6.50% |
Amount Redeemed | $ 36 |
4.625% Notes Due May 2048 | |
Debt Instrument [Line Items] | |
Interest Rate | 4.625% |
Amount Redeemed | $ 54 |
Debt and Borrowing Arrangemen_7
Debt and Borrowing Arrangements - Debt Repayments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Instrument [Line Items] | ||
Repayments of long-term debt | $ 2,306 | $ 3,353 |
Notes Payable | 0.625% Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 0.625% | |
Repayments of long-term debt | $ 1,000 |
Debt and Borrowing Arrangemen_8
Debt and Borrowing Arrangements - Debt Issuances (Details) - Notes Payable | Mar. 31, 2022USD ($) | |
2.125% Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.125% | |
Gross Proceeds | $ 500,000,000 | [1] |
2.625% Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.625% | |
Gross Proceeds | $ 750,000,000 | [1] |
3.000% Notes Due 2032 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.00% | |
Gross Proceeds | $ 750,000,000 | [1] |
[1] | Represents gross proceeds from the issuance of notes excluding debt issuance costs, discounts and premiums. |
Debt and Borrowing Arrangemen_9
Debt and Borrowing Arrangements - Fair Value of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 19,009 | $ 20,249 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt | $ 19,704 | $ 19,512 |
Debt and Borrowing Arrangeme_10
Debt and Borrowing Arrangements - Interest and Other Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Interest expense, debt | $ 91 | $ 98 |
Loss on debt extinguishment and related expenses | 129 | 137 |
Other (income)/expense, net | (52) | (17) |
Interest and other expense, net | $ 168 | $ 218 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Instruments (Details) $ in Millions | Mar. 31, 2022EUR (€) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Sep. 20, 2021EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | $ 889 | $ 687 | |||
Liability Derivatives | 404 | 242 | |||
0.000% Notes Due September 2024 | Exchangeable Notes | |||||
Derivatives, Fair Value [Line Items] | |||||
Debt issued | € | € 300,000,000 | € 300,000,000 | |||
Derivatives designated as accounting hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 165 | 144 | |||
Liability Derivatives | 57 | 62 | |||
Derivatives designated as accounting hedges | Currency exchange contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 1 | 0 | |||
Liability Derivatives | 3 | 0 | |||
Derivatives designated as accounting hedges | Interest rate contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 27 | 27 | |||
Liability Derivatives | 3 | 17 | |||
Derivatives designated as accounting hedges | Net investment hedge derivative contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | [1] | 137 | 117 | ||
Liability Derivatives | [1] | 51 | 45 | ||
Derivatives not designated as accounting hedges | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 724 | 543 | |||
Liability Derivatives | 347 | 180 | |||
Derivatives not designated as accounting hedges | Currency exchange contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 135 | 156 | |||
Liability Derivatives | 124 | 40 | |||
Derivatives not designated as accounting hedges | Commodity contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 589 | 387 | |||
Liability Derivatives | 220 | 137 | |||
Derivatives not designated as accounting hedges | Equity method investment contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | [2] | 0 | 0 | ||
Liability Derivatives | [2] | $ 3 | $ 3 | ||
[1] | Net investment hedge derivative contracts consist of cross-currency interest rate swaps, forward contracts and options. We also designate some of our non-U.S. dollar denominated debt to hedge a portion of our net investments in our non-U.S. operations. This debt is not reflected in the table above, but is included in long-term debt discussed in Note 8, Debt and Borrowing Arrangements . Both net investment hedge derivative contracts and non-U.S. dollar denominated debt acting as net investment hedges are also disclosed in the Derivative Volume table and the Hedges of Net Investments in International Operations section appearing later in this footnote. | ||||
[2] | Equity method investment contracts consist of the bifurcated embedded derivative option that was a component of the September 20, 2021 €300 million exchangeable bonds issuance. Refer to Note 8, Debt and Borrowing Arrangements |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments Fair Value and Measurement Inputs (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Total derivatives | $ 485 | $ 445 |
Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 9 | 116 |
Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 369 | 251 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 24 | 10 |
Net investment hedge derivative contracts | ||
Derivative [Line Items] | ||
Total derivatives | 86 | 71 |
Equity method investment contracts | ||
Derivative [Line Items] | ||
Total derivatives | (3) | (3) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Derivative [Line Items] | ||
Total derivatives | 213 | 161 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 213 | 161 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Net investment hedge derivative contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity method investment contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Derivative [Line Items] | ||
Total derivatives | 272 | 284 |
Significant Other Observable Inputs (Level 2) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 9 | 116 |
Significant Other Observable Inputs (Level 2) | Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 156 | 90 |
Significant Other Observable Inputs (Level 2) | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 24 | 10 |
Significant Other Observable Inputs (Level 2) | Net investment hedge derivative contracts | ||
Derivative [Line Items] | ||
Total derivatives | 86 | 71 |
Significant Other Observable Inputs (Level 2) | Equity method investment contracts | ||
Derivative [Line Items] | ||
Total derivatives | (3) | (3) |
Significant Unobservable Inputs (Level 3) | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Currency exchange contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commodity contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Net investment hedge derivative contracts | ||
Derivative [Line Items] | ||
Total derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Equity method investment contracts | ||
Derivative [Line Items] | ||
Total derivatives | $ 0 | $ 0 |
Financial Instruments - Notiona
Financial Instruments - Notional Values of Hedging Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Euro notes | Net investment hedge debt | ||
Derivative [Line Items] | ||
Notional Amount | $ 3,525 | $ 3,622 |
British pound sterling notes | Net investment hedge debt | ||
Derivative [Line Items] | ||
Notional Amount | 346 | 356 |
Swiss franc notes | Net investment hedge debt | ||
Derivative [Line Items] | ||
Notional Amount | 802 | 811 |
Canadian dollar notes | Net investment hedge debt | ||
Derivative [Line Items] | ||
Notional Amount | 480 | 475 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | ||
Derivative [Line Items] | ||
Notional Amount | 3,073 | 1,891 |
Currency exchange contracts | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amount | 4,822 | 4,831 |
Commodity contracts | ||
Derivative [Line Items] | ||
Notional Amount | 10,281 | 9,694 |
Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 1,850 | 1,850 |
Net investment hedge contracts | ||
Derivative [Line Items] | ||
Notional Amount | 7,306 | $ 3,915 |
Net investment hedge contracts | Net investment hedge debt | ||
Derivative [Line Items] | ||
Notional Amount | $ 7,300 |
Financial Instruments - Cash Fl
Financial Instruments - Cash Flow Hedges Effect on Accumulated Other Comprehensive Earnings/(Losses), Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||
Balance at beginning of period | $ 28,323 | $ 27,654 |
Transfer of realized losses/(gains) in fair value to earnings | 42 | 34 |
Balance at end of period | 28,216 | 27,149 |
Cash flow hedges | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||
Unrealized (loss)/gain in fair value | 27 | (3) |
Derivative Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||
Balance at beginning of period | (148) | (161) |
Balance at end of period | (96) | (159) |
Derivative Cash Flow Hedges | Cash flow hedges | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net [Abstract] | ||
Balance at beginning of period | (148) | (161) |
Transfer of realized losses/(gains) in fair value to earnings | 25 | 5 |
Unrealized (loss)/gain in fair value | 27 | (3) |
Balance at end of period | $ (96) | $ (159) |
Financial Instruments - Cash _2
Financial Instruments - Cash Flow Hedges After-tax Gains/(Losses) (Details) - Cash flow hedges - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) reclassified from accumulated other comprehensive income into earnings/(losses) | $ (25) | $ (5) |
After-tax gains/(losses) recognized in other comprehensive earnings/(losses) | 27 | (3) |
Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) reclassified from accumulated other comprehensive income into earnings/(losses) | (23) | (5) |
After-tax gains/(losses) recognized in other comprehensive earnings/(losses) | 25 | (2) |
Currency exchange contracts | Forecasted transactions | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) reclassified from accumulated other comprehensive income into earnings/(losses) | (2) | 0 |
After-tax gains/(losses) recognized in other comprehensive earnings/(losses) | $ 2 | $ (1) |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cost of sales | $ 4,781 | $ 4,272 | |
Selling, general and administrative expenses | 1,693 | 1,564 | |
Interest and other expense, net | (168) | $ (218) | |
Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, aggregate notional value | 1,850 | $ 1,850 | |
Early Settlement of Currency Exchange Contracts | Currency exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cost of sales | 74 | ||
Selling, general and administrative expenses | 5 | ||
Interest and other expense, net | 20 | ||
Cash flow hedges | Interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Expected transfer of unrealized losses (net of taxes) for interest rate cash flow hedges to earnings during the next 12 months | $ 9 | ||
Hedged forecasted transaction period | 4 years 5 months |
Financial Instruments - Net Inv
Financial Instruments - Net Investment Hedge Derivative Contracts (Details) - Net investment hedges - Net investment hedge derivative contracts - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Derivative Instruments, Gain (Loss) [Line Items] | |||
After-tax gain/(loss) on NIH contracts | [1] | $ 41 | $ 59 |
Amounts excluded from the assessment of hedge effectiveness | [2] | $ 22 | $ 20 |
[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. | ||
[2] | 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. |
Financial Instruments - Non-U.S
Financial Instruments - Non-U.S. Dollar Debt Designated as Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Euro notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) related to hedges of net investments in international operations | $ 74 | $ 124 |
British pound sterling notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) related to hedges of net investments in international operations | 8 | (2) |
Swiss franc notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) related to hedges of net investments in international operations | 6 | 56 |
Canadian notes | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
After-tax gains/(losses) related to hedges of net investments in international operations | $ (4) | $ (5) |
Financial Instruments - Economi
Financial Instruments - Economic Hedges (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | $ 242 | $ 200 |
Currency exchange contracts | Intercompany loans and forecasted interest payments | Interest and other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (11) | 70 |
Currency exchange contracts | Forecasted transactions | Interest and other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 21 | (16) |
Currency exchange contracts | Forecasted transactions | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | (7) | 50 |
Currency exchange contracts | Forecasted transactions | Selling, general and administrative expenses | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 2 | 2 |
Commodity contracts | Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | 237 | 94 |
Equity method investment contracts | Gain on equity method investment transactions | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives instruments, pre-tax gains/(losses) recognized in earnings | $ 0 | $ 0 |
Benefit Plans - Pension Plans (
Benefit Plans - Pension Plans (Details) - Pension Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1 | $ 2 |
Interest cost | 11 | 10 |
Expected return on plan assets | (18) | (18) |
Net loss from experience differences | 3 | 4 |
Prior service cost/(benefit) | 0 | 0 |
Settlement losses and other expenses | 3 | 3 |
Net periodic cost/(benefit) | 0 | 1 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 39 | 35 |
Interest cost | 41 | 29 |
Expected return on plan assets | (93) | (106) |
Net loss from experience differences | 19 | 33 |
Prior service cost/(benefit) | (1) | (2) |
Settlement losses and other expenses | 0 | 0 |
Net periodic cost/(benefit) | $ 5 | $ (11) |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Millions | Jul. 11, 2019 | Mar. 31, 2022 | Mar. 31, 2021 |
U.S. Plans | North America | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer plan, withdrawal liability | $ 526 | $ 356 | |
Multiemployer plan, withdrawal obligation term | 20 years | ||
Multiemployer plan, accreted interest on the long-term liability | 3 | $ 3 | |
Other current liabilities | U.S. Plans | North America | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer plan, withdrawal liability | 15 | ||
Long-term other liabilities | U.S. Plans | North America | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Multiemployer plan, withdrawal liability | 341 | ||
Pension Plans | U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | 1 | ||
Estimated future employer contributions over the remainder of 2022 | 3 | ||
Pension Plans | Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | 64 | ||
Estimated future employer contributions over the remainder of 2022 | 121 | ||
Pension Plans | United Kingdom and Ireland | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution | $ 25 |
Benefit Plans - Postretirement
Benefit Plans - Postretirement Benefit Plans (Details) - Postretirement Benefit Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1 | $ 1 |
Interest cost | 2 | 2 |
Net loss from experience differences | 0 | 1 |
Prior service credit | 0 | 0 |
Net periodic cost/(benefit) | $ 3 | $ 4 |
Benefit Plans - Postemployment
Benefit Plans - Postemployment Benefit Plans (Details) - Postemployment Benefit Plans - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1 | $ 1 |
Interest cost | 1 | 1 |
Amortization of net gains | (1) | (1) |
Net periodic cost/(benefit) | $ 1 | $ 1 |
Stock Plans - Stock Option Acti
Stock Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | ||
Shares Subject to Option | |||
Balance at January 1, 2022(in shares) | 23,503,759 | ||
Options granted (in shares) | 2,182,250 | ||
Options exercised (in shares) | [1] | (2,329,139) | |
Options canceled (in shares) | (208,761) | ||
Balance at March 31, 2022 (in shares) | 23,148,109 | 23,503,759 | |
Weighted- Average Exercise or Grant Price Per Share | |||
Balance at January 1, 2022 (in dollars per share) | $ 42.65 | ||
Options granted (in dollars per share) | 64.65 | ||
Options exercised (in dollars per share) | [1] | 34.61 | |
Options canceled (in dollars per share) | 53.50 | ||
Balance at March 31, 2022 (in dollars per share) | $ 45.43 | $ 42.65 | |
Average Remaining Contractual Term | |||
Average remaining contractual term | 6 years | 5 years | |
Aggregate Intrinsic Value | |||
Aggregate intrinsic value | $ 406 | $ 556 | |
Aggregate intrinsic value options exercised | [1] | 74 | |
Cash received from options exercised | 70 | ||
Actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises | $ 10 | ||
Annual grant to eligible employees | |||
Shares Subject to Option | |||
Options granted (in shares) | 2,180,540 | ||
Weighted- Average Exercise or Grant Price Per Share | |||
Options granted (in dollars per share) | $ 64.65 | ||
Additional options issued | |||
Shares Subject to Option | |||
Options granted (in shares) | 1,710 | ||
Weighted- Average Exercise or Grant Price Per Share | |||
Options granted (in dollars per share) | $ 65.97 | ||
[1] | Cash received from options exercised was $70 million in the three months ended March 31, 2022. The actual tax benefit realized and recorded in the provision for income taxes for the tax deductions from the option exercises totaled $10 million in the three months ended March 31, 2022. |
Stock Plans - Performance Share
Stock Plans - Performance Share Units and Other Stock-Based Awards Activity (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)$ / sharesshares | ||
Number of Shares | ||
Balance at January 1, 2022 (in shares) | shares | 4,668,046 | |
Shares granted (in shares) | shares | 1,965,045 | |
Vested (in shares) | shares | (1,670,302) | [1] |
Forfeited (in shares) | shares | (187,367) | |
Balance at March 31, 2022 (in shares) | shares | 4,775,422 | |
Weighted-average grant date fair value per share | ||
Balance at January 1, 2022 (in dollars per share) | $ / shares | $ 57.04 | [2] |
Shares granted (in dollars per share) | $ / shares | 62.02 | [2] |
Vested (in dollars per share) | $ / shares | 55.34 | [1],[2] |
Forfeited (in dollars per share) | $ / shares | 61.42 | [2] |
Balance at March 31, 2022 (in dollars per share) | $ / shares | $ 59.51 | [2] |
Weighted-Average Aggregate Fair Value | ||
Weighted average grant date fair value of shares granted | $ | $ 122 | [2] |
Weighted average grant date fair value of shares vested | $ | 92 | [1],[2] |
Maximum | ||
Weighted-Average Aggregate Fair Value | ||
Actual tax benefit/(expense) realized for the tax deductions from the shares vested | $ | $ 5 | |
Annual grant to eligible employees | ||
Grant Date | ||
Grant Date | Feb. 24, 2022 | |
Performance share units | ||
Number of Shares | ||
Shares granted (in shares) | shares | 806,590 | |
Weighted-average grant date fair value per share | ||
Shares granted (in dollars per share) | $ / shares | $ 61.87 | [2] |
Deferred stock units | ||
Number of Shares | ||
Shares granted (in shares) | shares | 505,090 | |
Weighted-average grant date fair value per share | ||
Shares granted (in dollars per share) | $ / shares | $ 64.65 | [2] |
Additional shares granted | ||
Number of Shares | ||
Shares granted (in shares) | shares | 653,365 | [3] |
Weighted-average grant date fair value per share | ||
Shares granted (in dollars per share) | $ / shares | $ 60.17 | [2],[3] |
[1] | The actual tax benefit/(expense) realized and recorded in the provision for income taxes for the tax deductions from the shares vested totaled $5 million in the three months ended March 31, 2022. | |
[2] | The grant date fair value of performance share units is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, so long as the requisite service has been provided. | |
[3] | Includes performance share units and deferred stock units. |
Stock Plans - Share Repurchase
Stock Plans - Share Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions | Dec. 02, 2020 | Jan. 31, 2018 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||
Common shares repurchased | $ 735,000,000 | $ 1,017,000,000 | ||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase value | $ 13,700,000,000 | |||||
Common shares repurchased | $ 800,000,000 | |||||
Number of shares repurchased (in shares) | 11 | |||||
Average cost of shares repurchased (in dollars per share) | $ 65.96 | |||||
Remaining share repurchase capacity | $ 2,900,000,000 | |||||
Common Stock | Share Repurchase Program Amended January 31, 2018 | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase value | $ 19,700,000,000 | |||||
Increase in share repurchase value | $ 6,000,000,000 | |||||
Common Stock | Share Repurchase Program Amended December 2, 2020 | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase value | $ 23,700,000,000 | |||||
Increase in share repurchase value | $ 4,000,000,000 | |||||
Common Stock | Prior to January 1, 2022 | ||||||
Class of Stock [Line Items] | ||||||
Common shares repurchased | $ 20,000,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - U.S. Commodity Futures Trading Commission (CFTC) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Loss Contingencies [Line Items] | |
Loss contingency, filing date | April 1, 2015 |
Loss contingency, damages sought | $ 1,000,000 |
Each Additional Violation of the Commodity Exchange Act | |
Loss Contingencies [Line Items] | |
Loss contingency, damages sought | $ 140,000 |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive Income - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Equity [Abstract] | ||
Losses reclassified from accumulated other comprehensive earnings/(losses) to net earnings | $ 42 | $ 34 |
Reclassifications from Accumu_4
Reclassifications from Accumulated Other Comprehensive Income - Changes in the Accumulated Balance of Components of Other Comprehensive Earnings/(Losses) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 28,323 | $ 27,654 | |
Total other comprehensive earnings/(losses) | 195 | (65) | |
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests | 4 | 9 | |
Other comprehensive earnings/(losses) attributable to Mondelēz International | 199 | (56) | |
Balance at end of period | 28,216 | 27,149 | |
Currency translation adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (9,097) | (8,655) | |
Currency impact | 6 | (134) | |
Tax (expense)/benefit | 44 | (2) | |
Total other comprehensive earnings/(losses) | 50 | (136) | |
Less: other comprehensive (earnings)/loss attributable to noncontrolling interests | 4 | 9 | |
Balance at end of period | (9,043) | (8,782) | |
Pension and Other Benefits Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (1,379) | (1,874) | |
Currency impact | 32 | 41 | |
Total other comprehensive earnings/(losses) | 93 | 69 | |
Net actuarial gain/(loss) arising during period | 44 | (1) | |
Tax (expense)/benefit before reclassifications | 0 | 0 | |
Tax expense/(benefit) on reclassifications | [1] | (6) | (9) |
Balance at end of period | (1,286) | (1,805) | |
Amortization of experience losses and prior service costs | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Losses/(gains) reclassified into net earnings | [2] | 20 | 35 |
Settlement losses and other expenses | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Losses/(gains) reclassified into net earnings | [2] | 3 | 3 |
Derivative Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (148) | (161) | |
Currency impact | 2 | 3 | |
Total other comprehensive earnings/(losses) | 52 | 2 | |
Net actuarial gain/(loss) arising during period | 26 | (7) | |
Losses/(gains) reclassified into net earnings | [2],[3] | 48 | 6 |
Tax (expense)/benefit before reclassifications | (1) | 1 | |
Tax expense/(benefit) on reclassifications | [1] | (23) | (1) |
Balance at end of period | (96) | (159) | |
Accumulated other comprehensive income attributable to Mondelēz International | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of period | (10,624) | (10,690) | |
Total other comprehensive earnings/(losses) | 199 | (56) | |
Balance at end of period | $ (10,425) | $ (10,746) | |
[1] | Taxes reclassified to earnings are recorded within the provision for income taxes. | ||
[2] | These amounts include equity method investment transactions recorded within gain on equity method investment transactions. | ||
[3] | These reclassified gains or losses are recorded within interest and other expense, net. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Contingency [Line Items] | ||
Estimated annual effective tax rate | 24.80% | 25.20% |
Effective tax rate | 21.90% | 19.10% |
Discrete net tax benefit | $ 62 | $ 65 |
Net benefit from the release of uncertain tax positions due to expiration of statutes of limitations, audit settlements | 32 | |
U.S. | ||
Income Tax Contingency [Line Items] | ||
Tax benefit due to new tax guidance | $ 27 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net earnings | $ 861 | $ 968 |
Noncontrolling interest earnings | (6) | (7) |
Net earnings attributable to Mondelēz International | $ 855 | $ 961 |
Weighted-average shares for basic EPS (in shares) | 1,389 | 1,412 |
Plus incremental shares from assumed conversions of stock options and long-term incentive plan shares (in shares) | 9 | 10 |
Weighted-average shares for diluted EPS (in shares) | 1,398 | 1,422 |
Basic earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.62 | $ 0.68 |
Diluted earnings per share attributable to Mondelēz International (in dollars per share) | $ 0.61 | $ 0.68 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stock Options and Performance Share Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Mondelēz International stock options excluded from the calculation of diluted EPS (in shares) | 2.1 | 3.6 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment Reporting - Net Revenue
Segment Reporting - Net Revenues and Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 7,764 | $ 7,238 | [1] |
Operating income | 1,094 | 1,283 | |
Unrealized gains/(losses) on hedging activities (mark-to-market impacts) | 27 | 118 | |
General corporate expenses | (50) | (64) | |
Amortization of intangible assets | (32) | (38) | |
Gain on acquisition | 0 | 9 | |
Acquisition-related costs | (21) | (7) | |
Benefit plan non-service income | 33 | 44 | |
Interest and other expense, net | (168) | (218) | |
Earnings before income taxes | 959 | 1,109 | |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 826 | 669 | [1] |
Operating income | 103 | 76 | |
AMEA | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,867 | 1,745 | [1] |
Operating income | 272 | 362 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,935 | 2,847 | [1] |
Operating income | 377 | 557 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,136 | 1,977 | [1] |
Operating income | $ 418 | $ 270 | |
[1] | Our snack product categories include biscuits, chocolate and gum & candy. During 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. |
Segment Reporting - Net Reven_2
Segment Reporting - Net Revenues by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | [1] | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 7,764 | $ 7,238 | |
Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,631 | 3,306 | |
Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,543 | 2,469 | |
Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 787 | 651 | |
Beverages | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 331 | 307 | |
Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 472 | 505 | |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 826 | 669 | |
Latin America | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 224 | 177 | |
Latin America | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 248 | 192 | |
Latin America | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 172 | 131 | |
Latin America | Beverages | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 102 | 94 | |
Latin America | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 80 | 75 | |
AMEA | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,867 | 1,745 | |
AMEA | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 657 | 583 | |
AMEA | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 706 | 670 | |
AMEA | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 203 | 194 | |
AMEA | Beverages | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 197 | 180 | |
AMEA | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 104 | 118 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,935 | 2,847 | |
Europe | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 951 | 810 | |
Europe | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,512 | 1,544 | |
Europe | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 152 | 148 | |
Europe | Beverages | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 32 | 33 | |
Europe | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 288 | 312 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,136 | 1,977 | |
North America | Biscuits | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 1,799 | 1,736 | |
North America | Chocolate | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 77 | 63 | |
North America | Gum & Candy | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 260 | 178 | |
North America | Beverages | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 0 | 0 | |
North America | Cheese & Grocery | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 0 | $ 0 | |
[1] | Our snack product categories include biscuits, chocolate and gum & candy. During 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. |